BACKGROUND:

The dramatic increase in gasoline prices in 2007-2008 once again focused attention on energy. The last comprehensive energy bill was signed into law in August 2005.

Although the new law was considered a positive step forward, both proponents and opponents of the bill were disappointed at the issues left unresolved by the bill. Chief among them being its failure to significantly reduce foreign oil imports which account for 60 percent of the nation’s oil consumption of 20 million barrels a day. The bill also failed to deal with opening the Alaska National Wildlife Refuge (ANWR) to oil and gas development, or creating a more ambitious renewable energy program for the transportation sector and for electric generation.

Under tremendous pressure to take action on the high gas prices, in the spring of 2008 the presumptive GOP presidential candidate proposed a “gas tax holiday” or a suspension of gas user fees from Memorial Day to Labor Day. The proposal would deny the Highway Trust Fund (HTF) approximately $9 billion in projected highway and transit funds. The idea was quickly debunked as sounding good but not likely to deliver anything but minor relief to consumers while costing the highway program dearly.

In 2008, Republicans sensing increased public support for offshore development, pushed hard for consideration of such proposals in both the House and Senate. The House Appropriations Committee came to a screeching halt when GOP members pushed for amendments to FY ’09 spending bills to expand domestic oil and gas drilling. When the Democratic leadership in both the House and Senate resisted scheduling consideration of proposals for lifting the moratorium on oil and gas drilling off the Atlantic and Pacific coasts and opening ANWR to oil and gas exploration, Republican members called for the 110th Congress to stay in session until it addressed the high gas prices and took action on energy legislation.

Bipartisan groups of rank and file members in both chambers developed legislation designed to break the energy logjam. Both proposals included expanding offshore drilling, in addition to significant provisions for energy conservation and funding for renewable power.

High energy prices affect all businesses heavily reliant on energy to produce their products. NSSGA worked proactively to head off attempts in Congress to suspend or repeal the user fee on gasoline which history shows do not guarantee price relief to consumers.

With both major political parties putting energy and reducing America’s dependence on foreign oil at the top of their policy agendas, the 111th Congress is certain to consider additional energy legislation that includes proposals to increase alternative fuel development, expand offshore petroleum drilling, rein in energy speculation and replace some of the sweet crude oil in the petroleum reserve with less desirable and cheaper heavy crude oil.

NSSGA will work with its coalition partners to ensure that any energy legislation does not adversely impact the aggregates industry and seize opportunities to benefit the transportation sector.

TALKING POINTS:

• Stone, sand and gravel are essential materials in the construction of roads and highways, homes and schools, public works, airport runways and many consumer products including paint, paper and plastic. A stable and growing aggregates industry depends on a reliable and affordable energy supply to process aggregates.
• Relieving increasing urban gridlock, which will save fuel, time and money, must be a part of a comprehensive energy policy.
• NSSGA opposes any efforts to suspend or repeal the federal gasoline excise tax as temporary cost alleviators. Consumers won’t see the price break and Congress would have great difficulty reimposing the taxes after a suspension or repeal. Thus, at a time when our nation should increase spending just to maintain roads and increase investment even more to relieve costly and energy-wasteful congestion, a suspension or repeal of the gas tax would decimate the economic lifeblood of our transportation system.
• Since the 1970s, U.S. energy use has increased at twice the rate (30 percent) of U.S. energy production (14 percent). Over the next 20 years, U.S. oil consumption is projected to rise by 33 percent, natural gas consumption will grow by more than 60 percent and demand for electricity will rise by 45 percent. Investment in energy infrastructure, including transmission lines and natural gas pipelines, has not kept pace with demand.
• A national energy policy must balance economic concerns and environmental concerns.
• Outdated and burdensome regulations have made maintaining, updating and making current facilities more energy efficient problematic.
• NSSGA supports reducing and/or eliminating redundant and unnecessary permitting hurdles that delay needed transportation infrastructure projects that will help to reduce congestion that increases pollution and threatens safety.
• Energy efficiency since the mid-70s has increased by 30 percent and there is more that can be done, but efficiency and conservation alone are not sufficient to support the energy needs of the nation’s economy.
• High-energy costs destroy jobs. The surge in energy prices has resulted in a loss of well-paying, long-term manufacturing jobs.
• NSSGA urges Congress to focus on the real energy crisis, which is inadequate energy supplies that threaten long-term economic growth.

Updated: November 2008