Opening Remarks by the Honorable Bobby L. Rush, Ranking Member Subcommittee on Energy and Power Hearing on the "Discussion Draft of H.R. ___, The North American Made Energy Security Act of 2011"
CONTACT: Renee Ferguson
(773) 224-6500 ofc.; (202) 674-0891 mobile
Renee.Ferguson@mail.house.gov
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Sharon Jenkins
(202) 225-4372 ofc.; (202) 431-8191 mobile
Sharon.Jenkins@mail.house.gov
WASHINGTON –– "Thank you, Mr. Chairman, and thank you to all of our guests for being here today.
"Mr. Chairman, today we are holding a hearing on the "North American Made Energy Security Act of 2011," which would require the Secretary of Energy to coordinate all of the federal agencies in charge of issuing a final decision on the Keystone XL pipeline, in an expeditious manner.
"On the surface this proposal seems reasonable enough, as it requires the Obama Administration to quickly come to a decision on whether it will grant approval for the Keystone XL Pipeline, which would bring additional Canadian crude into U.S. markets, and help replace the supply of oil that we import from the Middle East and other overseas countries.
"Alas, if this issue was really that simple then it wouldn’t take an act of Congress to make it happen and we wouldn’t be here, today, holding a hearing on it in this subcommittee.
"Mr. Chairman, today, I’ll withhold judgment on whether or not I can support this bill because there are some important issues that deserve greater examination, and I’m pleased that we are holding this hearing to bring these issues to light.
"This bill would force the Administration to issue the presidential permit for the pipeline within 30 days of the final environmental impact statement and no later than November 1, 2011.
"This arbitrary timeline would reduce the allotted time that federal agencies would have to determine the national interest in deciding this proposal by almost two-thirds, while also reducing, or eliminating, the 30-day public comment period, and I have serious concerns about this.
"I believe public input is a vital and necessary part of the determination process, especially for the local communities that will be most affected by a decision to move forward.
"I also look forward to learning more about the environmental impact of importing crude from the western Canadian oil sands, and how this would affect greenhouse gas emissions.
"However, the biggest concern I have today is what type of impact this pipeline would have on oil prices for my constituents in Chicago, in Illinois, and in the Midwest in general.
"Mr. Chairman, according to AAA’s Fuel Gauge Report, in Chicago, we are already paying the highest average gas prices in the nation at $4.37 a gallon, which is well above the national average.
"I have, here, an AP article, dated January 25th, where TransCanada Corp, the sponsor of the Keystone pipeline, stated that it expected oil prices in the Midwest to rise if this pipeline is approved.
"In fact, I also have part of the TransCanada Assessment, as well as the transcript before the Canadian National Energy Board (NEB), in which TransCanada testified that the Keystone pipeline would drive up the price of crude for many Midwest states including Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, the Dakotas, Ohio, Oklahoma, Tennessee and Wisconsin.
"TransCanada representatives are on record saying that Keystone XL would address what they term an "oversupplied" Midwest market, which they believe has resulted in "price discounting" for Canadian-heavy crude oil.
"Building this pipeline would divert supply from the Midwest to the Gulf Coast and I quote:
"The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013, of U.S. $2 billion to U.S. $3.9 billion."
"Now, as fond as I am of our friends to the North, I would much rather keep that $2 to $3.9 billion in the pockets of our constituents in the Midwest than giving it to our friends in Canada.
"So, I look forward to hearing from our witnesses and experts on this important issue.
"And with that I yield back my time."
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NOTE: Here’s a link to the discussion draft text:
Click to read the draft.
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