Energy prices have been hitting record highs this year, making the formulation of a national energy policy a high-profile item in Congress this summer. Montana’s congressional delegation are also high-profile, stepping up to the plate in the debate on how that policy should be written. Sen. Jon Tester, D-Mont., said during a press conference Thursday that he hopes a multi-faceted solution can be found once Congress reconvenes in September following its August recess. “There’s been a lot of hay being made right now about how to handle this energy problem,” Tester said. “There is no silver bullet. If you have one I want to hear it.” Congress adjourned contentiously for the recess, with Rep. Denny Rehberg, R-Mont., in the middle of the mix. He joined three other Republican representatives facing off against four Democratic representatives in a debate on energy held at Tulane in New Orleans on July 28. This week he joined Republican colleagues in returning to Washington to protest the House adjourning before energy legislation was passed The group called on House Speaker Nancy Pelosi, D-Calif., to call the House back into session to pass comprehensive energy legislation. “America needs a Congress that will act now to reduce our dependence on foreign oil and work to lower gas prices,” Rehberg said Wednesday. The Republicans are pushing for Pelosi to allow a vote on a bill, cosponsored by Rehberg, which includes lifting the ban on drilling in the Arctic National Wildlife Refuge in Alaska and would allow offshore drilling in areas now restricted, as well as proposals for development of increased energy conservation, development of alternative energy and new energy technology. Sen. Max Baucus, D-Mont., also has been working on the energy policy on the Senate side, including adding provisions to a bill to extend tax credits for the development of alternative energy. “The energy challenges facing our state and the country are very real they need to be addressed,” Baucus said Thursday. “We need to work together on the short-term and long-term solutions that will help boost domestic energy production, which will help create more goodpaying jobs and will help make our country more energy independent.” Calling Congress back? The House Republicans have blamed the Democratic leadership for blocking the comprehensive energy bill. They say a special session should be held to pass the legislation, rather than waiting for September or later. Tester said Thursday that, while he does not know what has happened in the House, there have been severa Senate which have been blocked by allies of the Bush administration. But the real issue is $4-a-gallon gasoline and diesel at $4.60 a gallon, he said. “It isn’t time for gamesmanship,” Tester said. “It gets a little frustrating. “There were several options to vote on (increased) drilling,” he added. Proposals to limit oil speculation, to extend tax credits for developing alternative energy, even a proposal to double the low energy assistance program to help with higher heating bills, were blocked in the Senate, Tester said. “We’re in the election season and so you could feel it past the first of the year,” he said. “Things were being done for political instead of policy reasons,” adding that Democrats were not innocent of that either. Tester said he is not sure calling Congress back to work early is essential to solving the problem. “My question is, why didn’t we get it done when we could?” Tester asked. “This whole energy thing didn’t start today, it’s been going on a long time. “If I could solve the problem I would go back tomorrow, but a simple message of drill more’ won't get us to where we need to be. We are drilling now,” he added. Where to drill and where to sell A major bone of contention is increased domestic drilling, including in banned areas of ANWR in Alaska and coastal drilling. Rehberg and his colleagues in the July 28 debate made that a major issue of the debate. Their Democratic opponents said additional drilling can be done on existing leases without lifting those bans. Tester said Thursday that he and his Democratic colleagues are not opposed to new drilling, but it is at best a bridge to a longterm solution. Opening up new areas to drilling may not be the key, he added. That is especially true when the United States not only uses 25 percent of the world’s energy while having only 3 percent of its oil supply, it is exporting 1. 4 million barrels of oil a day of what it does drill. And drilling is happening now, he added. “The point is, we are drilling like crazy,” Tester said. “We only have 3 percent of the oil, and we are drilling like banshees You go to Richland County, head toward Wolf Point, it’s amazing. In Hill County, Blaine County, there is a bunch of drilling going on.” But, he said, one key to new drilling helping the situation is making sure the petroleum stays in the United States, instead of the oil companies seeking higher profits selling it overseas. “We have been drilling and we need to continue,” he said, including increasing the work in Montana such as in the Bakken formation in eastern Montana and the Dakotas estimated to hold 4 billion barrels of oil. “But we need to make sure, especially in the case of Alaska, that the oil stays in Alaska or the lower 48, not going to Asia or somewhere else where big oil can make bigger profits. “It doesn’t help us to open up the continental shelf if that oil is going to China, it just doesn’t,” he added. “We have to make sure we get the first crack at it.” He said the result of current business is that the United States is exporting 1.4 million gallons a day of the oil it produces, while importing 13 million barrels a day from other countries. “A lot of stuff is going on out there that just doesn’t make sense to me,” Tester said. Another issue he said could reduce oil prices would be restricting oil speculation. Traders are dealing in oil simply trying to make a profit, driving up the prices. He added that the impact could be major at the gas pumps. “I can tell you that people tell me it’s as much as 50 cents-a-gallon,” Tester said A multi-faceted approach All three of Montana’s delegation advocate pursuing many different actions to improve the nation’s energy supply. On Rehberg’s Web site, he lists 10 bills he supports, ranging from the American Energy Act of 2008 which the Republicans want to pass by calling the House back into session, to other bills dealing with offshore drilling and drilling in Alaska and bills that would use closed military bases to locate oil refineries, encourage developing coalto- liquid fuel projects, and investment in alternative energy like wind power and nuclear power. Provisions supported by Baucus include extending tax credits to develop renewable energy a release from his office cites studies showing loss of the credits could cost more than 100,000 jobs in those industries and hurt development of the resources and credits for increasing the use of energy-efficient property, investing in clean coal power, offering bonds to finance renewable energy facilities and a consumer tax credit for plug-in electric vehicles. Tester said Thursday he believes it will take a combination of those kinds of policies to help reduce prices in the short term and provide a sustainable energy source for the United States in the long term. He said while increasing domestic production may help in the short term, the long-term approach needs to include developing new sources including clean coal power plants, coal-to-liquid fuel technology and investing in the development of renewable supplies including wind and solar power and biofuels like ethanol and biodiesel. Montana can play a major role in those new developments, including coal. “Montana is the Saudi Arabia of coal,” Tester added. Tester said a comprehensive plan unveiled by a bipartisan group of senators five Republicans and five Democrats known as “The Gang of 10” shows promise, although he had not reviewed the proposal in detail yet. He cited parts of the plan including upgrading the U.S. power grid and improving automobile efficiency as ideas that caught his attention. “At first glance it looks very good ,” Tester said. “A lot of elements are meritorious and I applaud the efforts.” Finding a solution Tester said he is hopeful that when Congress reconvenes, the opposing sides can come together to pass some comprehensive plan. “I hope both sides aren’t digging in their heels,” he said. “Both sides coming together is very, very important.” The solution would probably include bringing back some items that are already on the table, like limiting oil speculation Baucus’ extension of tax credits, and new proposals possibly including the work of The Gang of 10. “I think it’s going to be a little bit of both” Tester said. “I’m going to be optimistic about this,” he added. “Hopefully, when we get back in September people will get pounded enough, myself included, to get something done.”
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