KEEPING THE FAITH ACTION ALERT
August 18, 2008

Please forward.

Dear Friends,

The following was sent to me by Chris Carr, Chief of Staff for Sen. Johnny Isakson, on behalf of Senator’s Isakson and Chambliss regarding the deal the “Gang of Ten” made regarding how we go about solving our energy problems.   

God blessed this country with all the natural resources we need to remain independent from foreign countries to meet our energy needs.  It makes absolutely no sense to me that both parties have turned this into a political football at the expense of folks like you and me.  But, then a lot that our elected officials do makes no sense to me. 

Out of respect for our GA Senators, I am sending this along to you.  You be the judge.

I have been told by Chris Carr (202-224-3521) and Chambliss’ Chief of Staff Charlie Harmon (202-224-3643) they will be happy to respond to your questions/concerns.  If you would like a local number for either, go to www.gachristianalliance.org

Message to you from Senator’s Isakson and Chambliss:

For months, thousands of Georgians have called, emailed, faxed, and written our offices with one message, “Please, Senators Isakson and Chambliss, do something about the high cost of energy. Don’t just talk about it – do something!”  Of those thousands of letters, not one said, “Please, senators, don’t do anything at all.” That is why we came together to heed the call and in the process have developed the most realistic and immediate plan to tap into our natural resources and lower the cost of energy across the board.

Over the past several days, much has been discussed about our proposal, some positive and some negative, but here are the facts: we are pro-drilling and pro-nuclear senators; this is a pro-drilling and pro-nuclear proposal; this proposal meets our requirements of all options being on the table from domestic drilling for oil and gas to development of nuclear energy to incentives to develop alternative fuels to an emphasis on conservation; and it is the right thing to do to solve a problem that is hurting our families, our neighbors and our economy.

The bipartisan coalition that we formed is led by Senator Kent Conrad (D-N.D.) and Senator Chambliss.  Other senators in the coalition include John Thune (R-S.D.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Bob Corker (R-Tenn.), Lindsey Graham (R-S.C.), Mark Pryor (D-Ark.), and Ben Nelson (D-Neb.). Many have asked why we would join this group. The answer is simple. We cannot continue to import 68 percent of our oil, much of which comes from countries who are not our friends. We identified eight other senators who agreed with us that we must drill now for oil and gas in the United States, we should provide incentives for conservation and alternative fuels and nuclear energy must be a part of the mix because leaving out one of the safest and most efficient fuel sources just doesn’t make sense.

So why did we agree to the particular provisions? Because there was much that Republicans and Democrats can agree on to help this nation move forward to tap into our resources without getting bogged down with certain controversial issues. And where we can find common ground, we owe it to the American people to stop talking and start acting.

Our proposal - the comprehensive New Energy Reform Act of 2008 —contains three main components:

  • Urgently needed, timely domestic production of energy resources, including drilling offshore for oil and natural gas and utilizing nuclear energy;
  • An intensive effort to transition vehicles to non-petroleum based fuels; and
  • A robust federal commitment to conservation and energy efficiency.

Offshore Drilling
Three points must be made clear at the outset of this discussion. We fully support offshore drilling, we fully support the repeal of the moratorium on drilling in the Outer Continental Shelf and we staunchly support the full utilization of all of our domestic resources. And we have consistently voted to support these positions in the Senate.  Unfortunately, the moratorium on drilling is likely to be extended yet again, as it has every year since 1982 when President Reagan signed the first Interior Appropriations bill that contained it. As a result, this proposal is the best and quickest way to tap into the oil and gas reserves off the coast of the United States. It would open additional acreage in the Eastern half of the Gulf of Mexico for leasing. It would also allow the states of Virginia, North Carolina, South Carolina and Georgia to opt in to leasing off their shores. In total, 200 million new acres would be available for drilling.  

We have been asked why we initially “limited” this proposal to the Gulf of Mexico and south Atlantic and did not include the Pacific Coast or ANWR. We did so because of the volatile political nature surrounding those areas. If we tried to include them at the outset, it would have been a non-starter for the Democrats and any hope of opening any areas for new drilling would have died immediately. Instead, we agreed to find common-ground based on facts and science, which led us to the over 200 million acres that would be open and available under our plan. The facts and science tell us that this is where the oil and gas are located and completed U.S. Geological Surveys can confirm this. From a practical standpoint, this is where all of the equipment is to get the job done because there is already drilling currently occurring in the Gulf of Mexico.  We also create a process whereby recommendations can be made to Congress on future areas that should be considered for leasing, such as ANWR.   Make no mistake though, we support drilling in ANWR and our many votes on this issue show this unequivocally, but we need to do something to get the ball rolling and live to fight another day.  This is a sentiment shared by Senate Republican Leader Senator Mitch McConnell in his Gas Price Reduction Act of 2008, which had 43 Republican co-sponsors and also did not include provisions relating to ANWR. 

Many have also asked us why we believe in empowering these four states to make the decision on offshore drilling, and the answer is quite simple. First, we believe that there is no more conservative principle than a government closest to the people is the best, and we believe that states should have the option of allowing drilling off of their coasts. We have voted for this before and were praised for these votes. The principle behind what we are proposing now is no different. Second, we know that the decision-makers in these four states – and particularly our state - are supportive of drilling off their coasts. Allowing these state legislatures to have a say is not a subversive way of killing this bill. To the contrary it ensures the quickest way to get the oil and gas out of the ground.

In addition, we have also been asked about the provision that would only allow drilling to occur 50 miles off of the coast. While U.S. territorial waters extend only twelve nautical miles offshore, our territorial rights to the seabed extend to the 200 nautical mile mark. As we mentioned above, this is where the vast majority of the oil and gas reserves are found, and we now have the technology to safely, efficiently and economically tap the resources for miles surrounding where the drilling will occur. From a practical standpoint, if we had agreed to put an oil rig off of the coast of St. Simons Island or Sea Island, Republicans and Democrats, liberals and conservatives would have been up in arms. We don’t have to put the rigs that close because the technology allows us to put them farther out and still reap the benefits.

Nuclear Energy

An often overlooked provision of this proposal will encourage the development of nuclear power in the United States for the first time in decades. We cannot have a discussion of alternative fuels or an “all of the above” energy proposal without the inclusion of nuclear energy. It is critical that it be included. This proposal encourages the development of nuclear energy by increasing staff at the Nuclear Regulatory Commission, providing workforce training, accelerating depreciation for nuclear plants and supporting research and development on spent fuel recycling to reduce nuclear waste. We are proud that our Democratic colleagues have agreed with us that these critically important pieces - nuclear energy and offshore drilling - must be a part of a comprehensive solution to our nation’s energy problems.

Conservation and Alternative Fuels

To ease gas prices and protect our environment in the long term, the proposal includes a significant federal commitment to promoting conservation and efficiency, including $2.5 billion in research and development on next generation biofuels and infrastructure. Georgia is a leader in the emerging cellulosic ethanol industry and would directly benefit from this new federal commitment. 

The proposal would also fund a $20 billion “Apollo Project”-like effort to support the goal of transitioning 85 percent of America’s new motor vehicles to non- petroleum-based fuels within 20 years. 

As we worked with our Democratic colleagues, they made it clear that any proposal must be paid for. To us, a windfall profit tax was a deal-breaker, an absolute non-starter. Instead, we identified an alternative solution to how the $84 billion in investments in conservation and efficiency in the proposal could be funded. While not perfect or even preferable, loophole closers and other revenues were identified as funding options. Approximately $30 billion will come from new revenues from the oil and gas industry through such measures as modifying the Section 199 manufacturing deduction for oil and natural gas production and other revenue from Gulf of Mexico leases. Again, let us be clear, plans to modify the Section 199 manufacturing deduction are not a windfall profit tax. It is the elimination of a domestic production tax credit. And from all indications we’ve received, the oil companies are willing to close the loopholes in exchange for the ability to utilize the reserves from these new 200 million drillable acres. 

We believe that doing nothing is not an option – politically or substantively. Georgia families and businesses are suffering because of the escalating high cost of energy. We have been calling for weeks for Republicans and Democrats to put aside their differences on energy and come together with a solution. This proposal is exactly the kind of productive result we have been seeking and exactly the kind of action thousands of Georgians have told us they want to see from Congress on the energy issue.

Thank you for Keeping The Faith,
Sadie Fields

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