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Thune Co-sponsors Major Energy Legislation

- Historic legislation would reduce gas prices by finding more energy while using less -

June 26, 2008

Washington, D.C. —  Senator John Thune today joined 43 of his Senate colleagues by introducing major energy legislation aimed at reducing the price of gas by tapping oil and oil shale reserves here in the United States, increasing research and development for electric cars and trucks, and strengthening the U. S. futures markets.

"The rising price of oil and gas is costing the American people too much. Congress must put politics aside and address this growing problem. It is time for Congress to put policies in place that can have an impact on these out of control fuel prices," said Thune. "America has 14 billion barrels of oil off our coasts and hundreds of billions more in western states that can and should be safely explored and brought to market. By increasing supply and lowering consumption, America can regain energy independence."

THE GAS PRICE REDUCTION ACT OF 2008
Summary of Provisions

TITLE I - DEEP SEA EXPLORATION IN THE OUTER CONTINENTAL SHELF (OCS)
    14 Billion Barrels On Atlantic and Pacific OCS - More Than All US Imports From Persian Gulf Countries Over The Last 15 Years
  • Allows coastal states the right to opt out of the moratorium on OCS exploration and development

  • Governor petitions to allow exploration, with concurrence of state legislature
  • Exploration must be at least 50 miles from coast

  • 50% of revenues to Federal Treasury, 37.5% to States, 12.5% to Land & Water Conservation Fund

  • According to the Department of Interior, an estimated 86 billion of undiscovered reserves exist in the OCS

TITLE II: WESTERN STATE OIL SHALE EXPLORATION
    More Than 3 Times The Oil Reserves Of Saudi Arabia
  • 800 billion - 2 trillion potentially recoverable barrels in Colorado, Utah, Wyoming

  • Democrat Congress put moratorium on final regulations for development of this resource

  • Republican proposal would repeal the moratorium and allow research, development, and responsible exploration to move forward

TITLE III: PLUG-IN ELECTRIC CARS AND TRUCKS
    Plug-in electric hybrid cars hold tremendous potential to increase fuel efficiency
  • Increased R&D for advanced battery technology

  • Direct Loans for advanced battery manufacturing facilities

  • Sense of Senate that the Federal Government should increase its purchases of these vehicles

TITLE IV: STRENGTHENING U.S. FUTURES MARKETS
    Excessive speculation is putting a premium on the price of oil, which is driving up oil prices.
  • Authorize increased funding/staff for Commodities Futures Trading Commission (CFTC)

  • Directs the President's Working Group on Financial Markets to study the international regulation of commodities markets

  • Codifies CFTC action on Position Limits and Transparency for Foreign Boards of Trade

  • Requires the CFTC to Gather Information on Index Traders and Swap Dealers

"This bill will lower prices at the pump by increasing production, decreasing consumption, and ending excessive energy market speculation. It is past time for Congress to act on this issue, and I am hopeful we will get a vote on the Senate floor in the near future." Thune said.