Deficit Reduction Through Domestic Energy Supply

Resources Approves Ocean State Options and ANWR in Budget Reconciliation Plan

Washington, DC - The House Committee on Resources approved a budget reconciliation package today (24-16) which would help cut the national deficit by increasing domestic energy supplies from the coastal plain of the Arctic National Wildlife Refuge (ANWR) and by giving states control of energy production in the federal waters adjacent to their states.

"Americans want Congress to cut the deficit," said Committee Chairman Richard W. Pombo (R-CA). "They also want more domestic energy production to help lower home heating bills and prices at the pump. This package is going to give them both. By requiring more American-made energy, we can also create new jobs and grow our economy." In today's global energy market, with skyrocketing prices, it would be irresponsible to continue restricting domestic energy production."

Highlights of the bill include, but are not limited to:

-Raising $2.4 billion by allowing lease sales to produce the 10.4 billion barrels of oil in the northern coastal plain of the Arctic National Wildlife Refuge.

-Netting more than $800 million over five years for the federal Treasury, according to preliminary Congressional Budget Office estimates, by granting states the ability to control and/or to prevent energy production in the 125 miles of federal waters bordering their lands. Total revenue over five years would be more than $1.5 billion, with about half going to states who allow energy production.

-Raising $155 million over five years by updating antiquated mining laws, which permitted the sale of federal mining lands for a mere $2.50 per acre.

-Generating $122 million over five years through federal land sales and conveyances to the District of Columbia that support the city's ongoing efforts to increase its tax base and strengthen commercial redevelopment.

-Developing a revenue sharing program with local governments and a leasing program that will attract huge investment for the U.S. oil shale industry.
Statements from Resources Committee Members:

Congressman Jim Gibbons (R-NV), Chairman Energy and Mineral Resources Subcommittee:

"Simply stated, we need to encourage more domestic energy production to reduce gas prices and we need to cut the deficit-today, we took the necessary steps to accomplish both goals."

Congresswoman Cathy McMorris (R-WA):

"This deficit reduction package is an all around win for the American people. This package not only answers the call to reduce our federal deficit at a time when we must begin showing some fiscal responsibility, but also provides relief to everyone who continues to be hurt by high energy costs. We have shown that resolving our federal deficit is not simply about making cuts, but about enacting commonsense policy that will raise revenues and help ease the economic burden of the average American."

Congressman George Radanovich (R-CA):

"Through this bold plan, the Resources Committee has stepped up to the plate to do its part in an aggressive overall effort to cut the deficit and get our fiscal house in order. The Committee's plan rightfully places an emphasis on increasing domestic energy supplies to raise revenues, while at the same time giving coastal states like California more control of its offshore energy production."

Congressman Ken Calvert (R-CA):

"The Federal budget deficit is often difficult to decrease. Today, however, the Resources Committee passed legislation that decreases the deficit and increases the U.S. energy supply." The bill develops America's energy resources, which will decrease our reliance on foreign oil and increase America's energy security. In addition to the fiscal benefits, the provisions passed today will provide a number of economic benefits and generate growth. "This is a true win-win for America, which is why I proudly supported the bill."