Energy bill will not reduce U.S. dependence on foreign oil
In stark contrast to the Bush administration’s claims that the energy bill will reduce America’s dependence on foreign oil, the Department of Energy itself found that by 2025 the energy bill would actually increase oil imports by 82.9 percent, only slightly lower than the 84.8 percent expected under current energy policy. [1] Today the U.S. currently imports approximately 56 percent of its oil.

While the bill offers billions of dollars in tax breaks and subsidies for the oil and gas industry to expand domestic energy production, it will have virtually no impact on our dependence on foreign oil (these estimates are based on a D.O.E. study of the 2003 energy bill, which closely parallels the current bill—the same conclusions apply). Meanwhile, with Exxon reporting $7.8 billion worth of profits last quarter alone, the oil and gas industry has made record profits this past year.

Of the $8 billion the bill allocates to the development of oil and gas technology, only $500 million in tax incentives are directed toward renewable energy and efficiency programs. The bill avoids improving automobile fuel economy, which experts say is the fastest way to reduce our dependency. [2]

Does not reduce gas prices
Rising gas prices have become a prominent public concern. But the proposed bill would not make a dent in prices. While the Bush administration has acknowledged this, the Department of Energy concluded that the energy bill would not only fail to reduce gas prices, it will likely increase them. [3]

By 2015, the energy bill would result in an 8.7 percent increase in gas prices, whereas current policies would result in a 6.45 percent increase. In the longer term, by 2025, the energy bill would increase gas prices by 10.3 percent-- while current policies would result in an 8.2 percent increase.

Exempts industry from water contamination clean-up
A provision that halted the energy bill in the Senate last year has again spurred controversy. Aggressively supported by Rep. Tom DeLay (R-Tex), the provision exempts the oil and gas industry from lawsuits over liability for water contamination caused by the gasoline additive, methyl-tertiary butyl ether (MTBE).
The bill includes a liability waiver that protects producers, distributors, and users of MTBE from cleaning up their own contamination. Instead the burden is shifted onto the American taxpayer.

MTBE has been found in groundwater in 35 states; thousands of families across the U.S. have been affected by MTBE pollution. [4]

The oil and gas industries claim it is unfair that they be penalized for using the additive because the government mandated that companies use it to comply with the Clean Air Act. But oil companies knew that MTBE was a threat to water supplies years before the government found out. [5]

The energy bill also exempts the oil and gas industries from liability for water contamination caused by an extraction technique called hydraulic fracturing. The procedure, invented by Halliburton Co., eases natural gas extraction by injecting highly pressurized chemical fluids beneath the ground, often contaminating ground water in the process. Outraged by the effect on their water, communities across the nation have sued oil companies. The proposed energy bill however, will bar communities from being able to sue. [6]

Invokes detrimental changes to the Clean Air Act
Another provision allows certain states to delay cleaning up their air when air pollution drifts in from other states. The provision would allow “downwind” states a time-extension in meeting clean air standards until “upwind” states contributing to the problem met their standards. [7] Opponents of the provision claim it would undermine the Clean Air Interstate Rule, leaving millions of Americans who live “downwind” to breathe unsafe amounts of smog, and causing 10-year delays in emission cleanups across the country. [8]

A distraction from the Tom DeLay scandal
According to The Hill, Congressional leaders developed a conference-wide communications strategy to shift attention away from ethical questions surrounding Tom DeLay and win headlines with gas prices at all-time highs. [9]

The strategy will focus on specific regions-- using high gas prices to gain support for the energy bill, even though most Republicans, including the President, have conceded that the bill will not reduce prices.

Industry overwhelmed with drilling permits, but energy bill offers more
The Bush administration claims that lack of access to federal land poses a major barrier to increasing domestic gas production. But the oil and gas industries cannot keep up with the permits they already have, particularly in Western States. [10]

Even though many oil companies are straining to make use of existing permits-- and the communities surrounding drill sites complain of the environmental impact of drilling-- the energy bill contains a slew of provisions designed to ease access to federal and public land. [11]

Johanna Wald, an attorney for the Natural Resources Defense Council, told Grist Magazine that “in 2004, 6,130 drilling permits were issued, but only 2,702 [were] drilled due in part to a shortage of rigs.” [12]

To take action on this issue please contact your Senator. You can send an e-mail to your Senator’s office through New Energy Future.

SOURCES:
[1] Summary Impacts of Modeled Provisions of the 2003 Conference Energy Bill, Energy Information Administration, US Department of Energy, Feb. 2003. The 2005 energy bill closely parallels the bill analyzed in this study so the same conclusions apply.
[2] "House Set to Pass Cheaper Energy Bill," Business Week, Apr. 21, 2005.
[3] "Bush Concedes Energy Bill Offers No Help on Gas Prices," New York Times, Apr. 21, 2005.
[4] BushGreenwatch, Feb. 8, 2005.
[5] "MTBE: What the Oil Companies Knew and When They Knew It," Environmental Working Group.
[6] BushGreenwatch, Apr. 28, 2005.
[7] "Clean Air Change is Built Into Bill," New York Times, Apr. 16, 2005.
[8] "EPA Backs Energy Bill's Ozone Provision," Greenwire, Apr. 20, 2005.
[9] "Energy Bill Campaign Set to Roll Out Today," The Hill, Apr. 22, 2005.
[10] "Gas-Drilling Permits in Rockies Outstrip Ability to Tap Resource," Washington Post, Apr. 28, 2005.
[11] "Energy Bill Packed with Provisions Aimed at Expediting Leasing, Permitting," Land Letter, Apr. 28, 2005.
[12] "Jagged Little Drill," Grist, May 5, 2005.