Common Sense Evaluation

Well the Democrats continue to screw the American people. As usual, under the cover of darkness, they passed their “Hoax” Energy Bill (H.R. 6899). The bill passed 236-189 despite the objections of Republicans who said it would do little to boost offshore oil and gas production.

These corrupt a$$holes want to open up the strategic reserve, stating that it will cause speculators to drive down prices, but refuse to allow drilling for the exact same reason. Obviously Nancy Pelosi and the Democrats are banking on the idea that the American electorate is stupid. This can only lower their 9 percent approval rating and I think they are in for a big surprise in November. At least I hope so!

This may well die in the Senate. If that is not the case, President Bush, who recently lifted the executive order ban on drilling, may well veto it or refuse to sign it. Lets hope to God that is the case.

Here is the roll call vote.

Another Sham “No-Energy” Energy Bill

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Highlights of the Democrat Energy Bill (H.R.6899):

· Implements vast restrictions on energy drilling on the Outer Continental Shelf (OCS) compared to what would otherwise be allowed if the current moratorium on OCS energy development were allowed to expire on October 1, 2008.

· Provides states no incentive to allow for the expanded OCS drilling. That is, states would not get revenue shares in any of the newly leased areas.

· Repeals the moratorium on oil shale on federal lands, but prohibits any actual oil shale leasing unless a state allows it via state law. Allowing the current moratorium to simply expire in two weeks would allow for oil shale leasing on federal lands without state approvals.

· Releases 70 million barrels from the Strategic Petroleum Reserve (SPR) and provides for a subsequent replenishment with a less desirable grade of oil.

· Authorizes $1.7 billion taxpayer dollars to subsidize public transportation ridership already at record levels.

· Includes a requirement, commonly known as the Renewable Portfolio Standard or the Renewable Electricity Standard, that electric suppliers, other than governmental entities and rural electric cooperatives, provide 2.75% of their electricity using renewable energy resources by the year 2010—and increasing incrementally to 15% by the year 2020.

· Directs Fannie Mae and Freddie Mac to develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy-efficient and location-efficient mortgages on housing for low and moderate income families—and for second and junior mortgages made for the purposes of energy efficiency or renewable energy improvements.

· Mandates gas stations owned by larger oil and gas companies to install at least one alternative fuel pump (natural gas, E-85, biodiesel, or hydrogen) by 2018.

· Includes the Charlie Rangel transportation earmark for New York by terminating the remaining portions of the New York Liberty Zone tax incentives program (implemented to encourage business investment in lower Manhattan).

· Includes several tax increases—primarily the special carve-out of large (and foreign-government-owned) oil and gas producers from the domestic manufacturing tax deduction, the freeze of this tax deduction for all other oil and gas companies, and a restriction of how foreign oil and gas extraction income is determined for purposes of the foreign income tax credit. The bill also includes a PAYGO gimmick that will force energy companies to remit $3 billion in estimated taxes in FY2013 sooner than they otherwise would have to.

What isn’t in the bill:

· Litigation reform, so that American energy exploration and development, including that authorized by this legislation, is not further halted by environmentalist lawsuits.

· Allowing energy exploration and development in the Arctic National Wildlife Refuge (ANWR).

· Expedited petroleum refinery permitting.

· Expedited nuclear reactor permitting.

· There is also no language regarding futures markets speculation.

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