(Washington, DC) - Congressman Baron Hill looks forward to a possible vote on a bill to allow offshore drilling.  House leadership has indicated a willingness to allow the Members to debate and vote on a bill that would increase offshore drilling rights and ease consumer oil prices. 

“Throughout my travels in Southern Indiana this August, constituents have repeatedly expressed their concerns over unrelenting gas prices,” Hill said.  “It is time Congress responds with both short- and long-term strategies.”

Before Congress adjourned for the scheduled District Work Period, Congressman Hill cosponsored H.R. 6709, the National Conservation, Environment, and Energy Independence Act.  This bipartisan bill has already garnered 119 cosponsors.

First, H.R. 6709 would alter current standards on leasing and drilling activities.  The bill would repeal all federal prohibitions on using appropriated funds to conduct leasing activities on federal lands.  The 125 mile moratorium on oil and gas production in the Eastern Gulf of Mexico would be repealed, along with the appropriations prohibition on the development of oil shale.  The legislation would prohibit drill leases within 25 miles of the coastline.  Individual states would have the opportunity to opt-out of production within 25 to 50 miles of the coastline one year after enactment of the bill. 

An estimated $2.6 trillion would be raised from the leasing of offshore lands.  H.R. 6709 would designate the distribution of revenue as follows:

• 30% to the General Fund of the U.S. Treasury ($780 billion)
• 30% to Producing States ($780 billion)
• 8% for the Conservation Reserve ($208 billion)
• 10% to the Environment Restoration Reserve ($260 billion)
• 15% to the Renewable Energy Reserve ($390 billion)
• 5% to the Carbon Capture/Sequestration and Nuclear Waste Reserve ($130 billion)
• 2% to the Low Income Home Energy Assistance Program ($52 billion)

Secondly, the bill would provide for America’s future by supporting the development of renewable and alternative energy sources.  The bill would repeal the limitation on the number of hybrid and electric vehicles that would be eligible for the alternative vehicle tax credit.  H.R. 6709 would provide tax extensions and deductions for an additional five years or more for the production of renewable energy and conservation efforts, alternative fuel vehicles, energy efficient appliances, energy efficient commercial buildings, and development of biodiesel and renewable diesel. 

The final bill title would release 10% of the light crude oil from the Strategic Petroleum Reserve (SPR) in exchange for heavy crude oil currently in the market, which is more difficult and expensive to refine.  The revenue created through the exchange would be used for existing conservation, energy research and development, and energy assistance programs. 

“I hope this bipartisan bill will indeed be brought to the floor for a vote when we return to Washington in September,” Hill said.  “It would provide immediate relief, while also bolstering development of new energy sources in order to move this country closer to energy independence.”