Houston Democrats

Asked by the reporter, Pombo said, "It's not a short-term solution because we just don't have the technology to produce it." He added the promised hydrogen-powered vehicles are "multimillion-dollar prototypes that nobody's going to buy. They're just not done economically that the average person can afford them. Hopefully, if this stuff all works, ten years from now they'll be able to produce them."

Doolittle is promoting the plan on the basis that it will "turbocharge" the development of pollution-free hydrogen vehicles in the United States. He would like to see hydrogen vehicles on the market by 2020. He added that we have the technology, and hydrogen fuel cells already exist but require more research to make them more affordable.

However, in an apparent about face after the conference, Pombo said that despite his remarks, it's important to provide funding for hydrogen technology in the current energy bill. He says, "Long term it’s good energy policy, but this is something that's out 10 years from now." Pombo’s chance to speak during the conference happened to immediately follow Doolittle. He opened his statement with an anecdote about having driven a hydrogen-powered vehicle on his ranch, and that "It was a lot of fun."

This is the third time an energy bill has passed the House (249 to 183) but appears likely to receive substantial resistance in the Senate, where all previous attempts have stalled. In each of the previous instances, senators could not agree about drilling in ANWR and legislation favoring producers of methyl-tertiary-butyl-ether (MTBE), a water-polluting additive in gasoline.

The White House is under mounting pressure to pass a new energy bill as the expensive imports of oil increasingly affect consumer spending, the US trade balance, and manufacturer’s prices. Public opinion polls confirm the sentiment that voters are growing more and more anxious about high fuel prices. This past week the average price of gasoline in the United States hit a record high at $2.28 per gallon. Bush has asked Congress to send him a comprehensive energy plan by August. However, Bush acknowledged the bill would do nothing to ease gas prices. (He seems to be saying that a lot lately, as with the Social Security plan that will do nothing to fix the solvency of Social Security.)

Democrats and environmental groups clearly, and quite reasonably, had plenty of criticism about the $8 billion bill that favors big oil companies. The bill provides lavish tax breaks for energy companies while failing to reduce US demand for foreign oil by imposing stricter mileage standards on new vehicles. Here's a dismal statistic: the last time fuel mileage standards were raised was in 1975 as a response to the Arab oil embargoes (Source). As an example, my 1991 Honda Accord gets 24 mpg in the city and 29 mpg on the highway, which is still competitive or better mileage than a large portion of cars produced today. It's appalling so little improvement, with the exception of hybrids, has been achieved in 14 years.

Republicans may not have provided any short term relief to average Americans, but they did not forget their humble billionaires. The bill would immediately protect oil companies from lawsuits over MTBE, which pollutes water and contaminate drinking water sources. The bill ensures producers of MTBE will be shielded from product liability lawsuits alleging MTBE is a defective product, and that companies knew all along it would cause water contamination problems that could pose severe drinking water concerns. Oil companies and refineries claim they need protection because there is an expected jump in the number of lawsuits resulting from the contamination of drinking water supplies. There are at least 80 lawsuits filed involving MTBE and the number is expected to rise significantly. In addition, the bill calls for phasing out MTBE by 2014, much longer than scientists say is necessary.

Democrats denied any opportunity to amend the bill to remove the provision that will protect big oil companies from certain lawsuits. Representative Lois Capps of (D-CA) attempted to strip the MTBE assistance from the energy bill but was defeated by a vote of 219 to 213. She stated that MTBE has contaminated groundwater affecting over 1,800 community water systems in 29 states with a potential cleanup cost of $29 billion. However, there is no saying how much it costs in health related problems resulting from the pollutant.

The current bill contains an additional $8 billion in energy tax breaks and incentives over 10 years. That funding is primarily targeted at increasing the production of fossil fuel sources such as oil, natural gas, and coal as well as nuclear power. In addition, the bill provides $2 billion over eight years to aid manufacturers to shift away from producing MTBE and to research deep water oil and gas development in the Gulf of Mexico. Furthermore, the energy bill allows drilling in ANWR, another provision Democrats attempted to remove but was blocked by Republicans.

By the way, Texas is the chief producer of MTBE in the United States, and guess who are the two most zealous supporters of MTBE assistance for corporations? Yes, that's right, our two first-class business-indulging Texas friends, House Majority Leader Tom DeLay and the House Energy and Commerce Committee Chairman Joe Barton from Ennis. The liability waiver, which Tom DeLay also backed in the previous 2003 energy plan, ended up killing it in the Senate where senators refused to accept the provision. The chairman of the Senate Energy Committee said the House must develop a compromise on MTBE before the Senate will approve the final energy bill. Barton responded, "We are working with our friends in the Senate and folks in the House to come up with that compromise. We have an agreement to have an agreement." Sorry Representative Capps, but that's code for you're not a 'friend', but Exxon Mobil Corporation and ConnocoPhillips are and they both have large operations in Texas.

Bush has stated with the price of oil consistently exceeding $50 per barrel, energy companies could do without tax incentives for oil and gas exploration. The White House did express some hesitation over the $2 billion for research into deep water oil and gas development. However, it is highly doubtful he would veto a bill that favors industry. Bush commended the passage of the energy bill as an "important step" for the United States that it secures America's "energy future" by reducing the nation's dependence on foreign energy sources.

House Minority Leader Nancy Pelosi condemned the bill calling it a "disgraceful... giveaway" that was "clearly designed to help energy companies make more money, not help the American people save money." She further described the bill as "anti-consumer, anti-taxpayer and anti-environment," a handout to oil companies who sought sanctuary with their champion Tom DeLay.

Here are a few excerpts from her speech before the US House of Representatives:

Today, communities across America are suffering the effects of MTBE. MTBE contamination of groundwater and surface water is a major problem in my state of California, and many drinking water wells have had to be shut down because of this contaminant. MTBE contamination has been detected in all 50 states, and a recent study indicates that it could cost between $12 and $63 billion to clean up. That's $12 to $63 billion to clean up something the industry knew was dirty to begin with, and withheld information about that from Congress.

[...]

"Not surprisingly, the MTBE producers and the big oil companies want to be protected from liability for contaminating our drinking water supplies. And not surprisingly, Tom DeLay and House Republicans are happy to oblige. Mr. DeLay insisted on the MTBE provision in the last Congress, even at the cost of killing the energy bill. He insisted on it again this year. In fact, this is the Majority Leader's bill we are debating today.

[...]

"But in their attempt to shield MTBE producers and big oil companies from accountability, Republicans have created a huge unfunded mandate for states and localities, and it is taxpayers who are stuck with the bill. Remember unfunded mandates? Wasn't that principle number one of the Contract with America? No unfunded mandates.

Read Pelosi's complete speech before the House about the serious health risks posed by MTBE at The Stakeholder.

A poll conducted by Ipsos-Public Affairs for the Associated Press and AOL News found in a survey of 1,000 people, 51% said they face financial difficulties if gas prices remain high for the next six months and 30% classified the impact would be serious. Many people are facing deciding among gas, groceries, and medicine, especially those who live on limited incomes. Gas prices have caused 58% to reduce their driving, 57% to cut back on other expenses, and 41% to change their summer vacation plans to stay closer to home.

Bush should take note of this statistic: 62% disapprove of the president's handling of the nation's energy problems.

Many of the nation's car manufacturers are taking enormous hits to their budgets as sales of big trucks and SUVs have plummeted. I certainly have noticed an increase in the number of them parked in used car lots along the road. Sales of Ford's largest SUVs – the Excursion, Explorer, and Expedition – all fell by well over 24% from January to March this year.

Prices of gas are expected to remain above $2 at least through the summer. If you are considering buying a hybrid you might want to do that before 2006. Right now you receive a one-time tax break of $2,000, but beginning in 2006 it drops to $500 (Source).

Why not celebrate Earth Day on Friday by contacting your representatives and telling them what you think of this massive exploitation of Americans – YOU?

Senator John Cornyn
517 Hart Senate Office Building
Washington, DC 20510
Tel: 202-224-2934
Fax: 202-228-2856
Web Form: cornyn.senate.gov/contact/index.html

Southeast Texas Office:
5300 Memorial Drive
Suite 980
Houston, Texas 77007
Tel: 713-572-3337
Fax: 713-572-3777

Senator Kay Hutchison
284 Russell Senate Office Building
Washington, DC 20510-4304
Tel: 202-224-5922
Fax: 202-224-0776
Web Form: hutchison.senate.gov/e-mail.htm

Houston Office:
1919 Smith Street
Suite 800
Houston, Texas 77002
Tel: 713-653-3456
Fax: 713-209-3459