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ACC: Speaker Pelosi's 2008 Energy Plan Leaves out Critically-Needed Domestic Energy Supply

Energy Efficiency, Renewable Energy Are Important Elements, But Domestic Energy Supply Must Be Included

ARLINGTON, Va., April 23 /PRNewswire-USNewswire/ -- Yesterday House Speaker Nancy Pelosi sent a letter to President Bush concerning high energy prices and energy legislation for 2008. The full text of the letter is available at http://speaker.house.gov/newsroom/pressreleases?id=0620. U.S. natural gas prices were $2.38 per million BTUs (MMBtu) in 1999 and stand at $10.78 per MMBtu today - an increase of 450 percent.

American Chemistry Council (ACC) President & CEO Jack N. Gerard issued the following statement:

"We share Speaker Pelosi's concern about the high energy prices being faced by all Americans. Households, manufacturers, farmers, small businesses, schools and hospitals are feeling significant pain. The risk of recession is growing, U.S. competitiveness is deteriorating, and Americans are looking to Congress to enact policies to help. In the case of natural gas, Congress holds significant power to improve the situation: domestic natural gas supply legislation could help resolve the acute supply-demand imbalance that's at the heart of rising prices. Unfortunately, this key element of U.S. energy policy - domestic energy supply - is absent from the Speaker's plan.

"We strongly support some of the policy objectives Speaker Pelosi encouraged in her letter, such as improving energy efficiency and expanding renewable energy production. Indeed, we have long advocated for a balanced portfolio of energy policies that include efficiency, diversity and supply. And the products of chemistry go into energy-saving materials that help the entire nation be more energy-efficient. Regrettably, given its failure to address the critical need for domestic energy supply, the Speaker's plan for the remainder of 2008 is woefully incomplete.

"In addition, we oppose energy policies that would increase the tax burden on the oil and gas industry. Rising energy demand has pushed our industry's power and energy raw material costs sharply higher, hindered our global competitiveness and cost more than 118,000 American chemistry jobs. Our energy costs have nearly tripled from $25 billion in 1999 to $72 billion in 2007. Policies that would impose additional taxes on the companies supplying feedstocks would exacerbate these damaging effects.

"We look forward to working with Congress to develop a comprehensive energy policy that includes efficiency, diversity and supply. Action to expand domestic energy supply is long overdue and is one of the most helpful steps Congress could take to assist the American public. We strongly urge Speaker Pelosi and the Congress to include it on its agenda this year."

www.americanchemistry.com/newsroom

The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care(R), common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $635 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, accounting for ten cents out of every dollar in U.S. exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.

SOURCE American Chemistry Council