Rep. Courtney, House Focus Efforts on Providing Short-term Price Relief and Long-term Solutions to Energy Woes

Press Release

Rep. Courtney, House Focus Efforts on Providing Short-term Price Relief and Long-term Solutions to Energy Woes

Congressman Joe Courtney joined his colleagues in Congress to take important steps in addressing our nation's energy crisis. The House took action today to crack down on the out of control energy futures markets, increase federal funding opportunities for mass public transportation projects, and to force oil and gas exploration companies currently squatting on drilling permits and federal land leases to begin using the permits and lands or lose them to other companies that will use them.

Today, Congressman Courtney voted in favor of H.R. 6377, the Energy Markets Emergency Act. The bill would take crucial steps to curb excessive speculation in the energy futures markets by directing the U.S. Commodity Futures Trading Commission to:

- Use all its authority, including its emergency powers, immediately to curb the role of
excessive speculation in any contract market trading energy futures or swaps, and

- Use its most potent emergency tools -- including the immediate powers to set new position
limits (size of the stake that each speculative investor can hold in a given market), increase
margin requirements (the money needed to trade), and impose other corrective actions as
necessary -- to eliminate excessive speculation, price distortion, sudden or unreasonable
fluctuations, or unwarranted changes in the price of energy commodities or other unlawful
activity causing major market disturbances that prevent the market from accurately
reflecting the forces of supply and demand for energy commodities.

Congressman Courtney also voted to support, H.R. 6251, The "Responsible Federal Oil and Gas Lease Act of 2008, which would bar companies from obtaining any more federal leases for drilling onshore or on the Outer Continental Shelf, unless they can demonstrate that they are producing oil and gas from the leases they already hold or are in the process of diligently developing the leases they already hold. The bill directs the Interior Secretary to define "diligent development."

- This bill gives companies an incentive to relinquishing their non-producing leases, creating an
opportunity for another company to explore for and perhaps produce oil or gas from them.
Under the bill, the terms of leases which are in production, or which can demonstrate diligent
development, are extended.

- For nearly 30 years, companies that leased federal coal resources have been required by law
to diligently develop their leases. This requirement has discouraged the rampant speculation
that once existed in the federal coal leasing program.

Unfortunately, House Republicans united against the bill, which needed two-thirds of Members voting to pass.

Congressman Courtney also voted in favor of H.R. 6052, the Saving Energy Through Public Transportation Act of 2008, introduced by House Transportation Committee Chairman James Oberstar, who visited eastern Connecticut earlier this year.

The Saving Energy Through Public Transportation Act of 2008 contains the following critical provisions:

- Authorizes $1.7 Billion of Capital and Operating Funds for Transit Agencies to Reduce Fares
and Expand Transit Services.

- Increases the Federal Share for Clean Fuel and Alternative Fuel Transit Bus, Ferry, or
Locomotive-related Equipment and Facilities from 90 percent to 100 percent.

- Establishes a Vanpool Pilot Program. The bill establishes a two-year pilot program to allow the
amount expended by private providers of public transportation by vanpool for the acquisition
of vans to be used as the non-Federal share for matching Federal transit funds in five
communities.

- Increases the Federal Share for Additional Parking Facilities at End-Of-Line Fixed Guideway
Stations.

Early in the day, Representative Courtney joined Connecticut colleague Representative John Larson for a press conference today to highlight H.R. 6264, The Consumer Oil Price Protection Act, which would reduce speculation in the markets by cracking down on unscrupulous traders who artificially drive up the price of fuel. The bill would require that anyone who is trading energy futures in over-the-counter markets be able to take receipt of the purchase before reselling the product.

"Congress must rein in unscrupulous market speculators who artificially drive up the price of oil through fear. If no action is taken, what we are seeing now will pale in comparison to the overwhelming burden homeowners will feel this fall and winter when they purchase home heating fuel. Americans deserve immediate short-term price relief and want long-term solutions to our nation's energy policies. I applaud my Connecticut colleague, Vice-Chairman John Larson, for his leadership on this issue," said Congressman Joe Courtney.

In 2000, $9 billion were invested in oil futures. In less than a decade, more than $250 billion is invested in energy futures. Other estimates suggest that speculation contributes as much as 40 percent of the cost of a barrel of oil. And, reducing speculation would have a huge impact on the price at the pump. The Democratic-led majority will hold hearings in coming weeks on this issue and will consider legislative action in July.

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