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Eye on Energy: September 2005for a PDF version of this document, click here The Ever Rising Price of Gas Gasoline prices are up 40 percent over the last year, with the average driver now paying over $2.60/gallon. Americans’ huge appetite for oil - we’re the largest consumer on the planet, using 25 percent of the world's total use everyday - plays a key role in keeping prices high. But the energy bill does little to help consumers make better choices. For example, there are only small tax credits for consumers to buy hybrid vehicles, and there is no funding for mass transit or other alternatives. Moreover, the energy bill signed into law by Bush last month and supported by 74 senators includes $6 billion in tax breaks and new government spending programs that directly benefit large oil companies. With oil hovering at $65/barrel, oil companies don't need consumers’ help. There is a direct correlation between record oil and gas prices paid by consumers and record profits by oil companies. Since Bush became president, the largest five oil companies operating in the U.S. - ExxonMobil, ChevronTexaco, ConocoPhillips, BP and Shell - have enjoyed profits of $254 billion; ExxonMobil leads the way with profits of $89 billion. These oil companies are structured like monopolies: They are involved in oil production in the U.S. and around the globe, they refine oil into gasoline, and even sell their products at their franchised gas stations. But rather than hold these price-gougers responsible, the energy bill signed by Bush gives $6 billion in tax breaks and subsidies to oil companies. It’s clear that the $52 million in campaign contributions to federal politicians by the oil industry (80 percent of that total going to Republicans) since 2001 has not only purchased the oil industry immunity from scrutiny, but has placed America on a path of continued dependence on fossil fuels, guaranteeing that consumers will continue paying record prices while oil companies profit. TOO LITTLE, TOO LATE: The Senate Energy and Natural Resources Committee will hold a hearing on gasoline prices during the week of Sept. 5th, with testimony from the Bush administration, oil industry, and consumer groups. Lax Radiation Standards Proposed for Yucca Mountain The Environmental Protection Agency’s new proposal to allow two different radiation standards for the high-level radioactive waste dump at Yucca Mountain in Nevada will fail to protect the long-term health and safety of the people living in the region. The setting of two standards - 15 millirems per year for the first 10,000 years and 350 millirems per year thereafter - is an arbitrary decision designed to facilitate the licensing of the project rather than make it safe for those who live near the site. If a 15 mrem/yr standard has been determined necessary to protect health in today's environment, such a standard should continue at least through the time of predicted peak dose from the dump site, as the National Academy of Sciences has recommended. Several studies have determined that the peak radiation dose will occur several hundred thousand years from now. Just three years ago, the EPA said it did not approve of a two-tier radiation standard. The EPA has also dismissed the use of even a 25 mrem/yr standard in the past because of the increased cancer incidence that would result. But now, the second standard EPA has proposed for Yucca Mountain is 14 times this unacceptable value. “One strict standard should be set for radiation at Yucca Mountain, not a temporary strict standard for one time period, followed by a weak standard for the rest of time,” said Wenonah Hauter, director of Public Citizen’s energy program. On Aug. 29, Public Citizen along with 17 other organizations, wrote to the EPA to encourage the agency to extend the time period for public comment on the new rule by 180 days and to increase the number of locations where public meetings will be held. Currently, the 60-day comment period will only include two meetings in Nevada and one meeting in Washington, D.C., despite the fact that Yucca Mountain will affect millions of people in nearly every state as the waste is transported from nuclear reactors throughout the country. QUICK QUOTE “If we see $100 a barrel, Congress will reappraise everything it's doing, and very likely you will see it reevaluating its opposition to CAFE (gas mileage) standards.” ~ Rep. Christopher Shays (R-Conn) Westar Energy Fined for Illegal Contributions to Congress On Aug. 19, the Federal Election Commission (FEC) fined Westar Energy, two of its executives and its Washington, D.C., lobbyist a total of $40,500 for violating political campaign contribution rules. Public Citizen applauds this decision, but the agency should not close the book on this case yet. Fining the company responsible on one side of this scheme is only half the equation. The other half remains unsolved: What role, exactly, did lawmakers play? To date, Westar has not released an internal report detailing exactly what happened behind closed doors in 2002 when the company attempted to “get a seat at the table” during energy bill negotiations by giving money to key lawmakers involved in crafting the energy bill, including U.S. Reps. Tom DeLay (R-Texas) and Joe Barton (R-Texas). Westar memos indicate that lawmakers asked the company to make contributions to political allies in exchange for a perk for the company in the energy bill. Did lawmakers initiate and approve this contribution plan, as the memos indicate? The public deserves to know. “We urge Westar to release the internal report and the FEC to investigate the role lawmakers played in this sordid scandal, which smacks of bribery, so that the public has all the facts,” said Tyson Slocum, research director for the energy program at Public Citizen. New Nuke for North Carolina? Activists in Western North Carolina are sounding the alarm over what they claim are moves by Duke Energy to expand property holdings in preparation for constructing a new nuclear plant. A spot on the Yadkin River in Davie County, known as the Perkins site, was pursued by Duke back in the early 1980s as a potential site for nuclear plant construction, but was abandoned before construction ever began. Duke has publicly announced its intention to pursue a combined construction and operating license, which would make it one of the first to do so, but has not yet named a site. That’s expected to happen by the end of the year or possibly sooner. Choosing the Perkins site would be unique in that no other company is yet seeking permission to license a reactor at a site that does not have at least one reactor already. For more information, keep your eye on www.CitizensAgainstPerkins.org. New Power Plants Could Pollute Bush's Crawford Ranch Public Citizen accompanied residents of nearby Riesel to travel to Crawford, Texas, on Aug. 24 to warn President Bush that his health, and the health of other Texans, will be affected by six new coal-fired power plants proposed for Central Texas. One of the proposed new plants would be located in Riesel, only 30 miles from the Bush ranch. Three other units are planned in nearby Robertson County, one in San Antonio and two near Port Comfort, south of Victoria. The plants would add more than 14,000 tons of ozone-forming pollution to the air of Texas and more than 70,000 tons of global warming gases annually. A better alternative would be for Texas to encourage the development of clean, renewable energy such as wind power, and alternative fuels such as biodiesel. CORPORATE CORNER $254 billion What the 5 largest oil companies have earned in profits between 2001 and June 2005. Gas, anyone? more resources
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