Specter Responds … Now I’m MORE Worried

J.J. Jackson* | April 30, 2006

The original letter I sent to Mr. Specter can be witnessed here.

Here is his (rather long winded response):

Dear Mr. Jackson :

Thank you for contacting my office regarding gasoline prices. I appreciate hearing from you on this matter.

Rising energy costs and increasing gasoline price volatility have had significant effects on our economy and are a major concern to America ’s businesses, consumers, and Congress. Analyses show that the components that make up the price of gasoline are the market cost of crude oil (46%), federal and state taxes (24%), refinery costs (19%) and marketing and distribution costs (11%). Among the numerous factors that affect gasoline prices, only federal taxes and regulations for clean air standards and reformulated gasoline are within the direct control of the federal government. It is important to note that federal gas taxes are deposited into the federal highway trust fund, which is the federal government’s main source of highway construction funding.

However, in light of the continuation of high gas prices and reporting of record profits by oil and gas companies, I believe the time has come for the Federal government to look past its limited controls on the energy market. Therefore, as Chairman of the Senate Judiciary Committee, I held two hearings in February and March of 2006 to consider the effects of consolidation in the energy industry and whether concentration had resulted in increased prices for gasoline, other petroleum-based fuels and natural gas. As a result of those hearings, I recently introduced S. 2557, the Oil and Gas Industry Antitrust Act of 2006. The purpose of this legislation is to require the appropriate antitrust agencies to further consider whether mergers within the oil and gas industry have violated antitrust laws and whether such mergers and information sharing among companies should receive closer scrutiny. Additionally, this legislation would address record industry profits and high gasoline prices by prohibiting oil and gas companies from diverting, exporting or refusing to sell existing supplies with the specific intention of raising prices or creating a shortage. S. 2557 also incorporates provisions similar to those of S. 555, the No Oil Producing and Exporting Cartels (NOPEC) Act, of which I am cosponsor, which would enable OPEC members to be sued for violating United States antitrust laws by conspiring to fix the price of crude oil.

Furthermore, I have consistently been a supporter of increasing the domestic oil supply and energy efficiency to balance market discrepancies between supply and demand. I have been the lead Republican sponsor of an amendment to the energy bills of the 106 th and 107 th Congresses that would require the federal government to enact policies to reduce United States consumption of oil by one million barrels per day from projections by 2015 and supported a similar amendment to the Energy Policy Act of 2005, which was signed into law on August 8, 2005, that would have required a reduction of domestic oil consumption by 1 million barrels per day from projections by 2013. This modest goal was not included in the final bill, but I believe it could help to focus the federal government’s attention on reducing oil imports in support of national security and lower trade deficits and I will continue to support such measures.

Additionally, I have supported the improvement of automobile fuel economy and reduction of vehicle emissions, which would also alleviate domestic oil consumption. The conference report of the Energy Policy Act of 2005 authorizes $3.5 million per year for fiscal years 2006 through 2010 for the National Highway Traffic Safety Administration to carry out fuel economy rulemakings. I also supported the incentives included for innovative clean coal technologies which hold the promise of replacing foreign imports of oil. For example, I have worked to secure a U.S. Department of Energy loan guarantee for a Pennsylvania plant, the first in the nation, which utilizes coal and coal waste to produce clean-burning diesel fuel.

Thank you for taking the time to bring your concerns about rising gasoline prices to my attention. This is an important issue deserving Congress’ consideration to best serve the interests of consumers and our nation. If you have any further thoughts on this or any other matter, please do not hesitate to contact me or visit my website at: http://specter.senate.gov.

Sincerely,

Arlen Specter

The pertinent passage is highlighted. Mr. Specter confirms that he is looking to expand the role of the federal government. First he admits “Among the numerous factors that affect gasoline prices, only federal taxes and regulations for clean air standards and reformulated gasoline are within the direct control of the federal government.”

Then he turns around after admitting that this is the role Congress has to say “However, in light of the continuation of high gas prices and reporting of record profits by oil and gas companies, I believe the time has come for the Federal government to look past its limited controls on the energy market.”

Excuse me? He wants to expand Congress’ role? How? By law?

Gee Mr. Specter, the last time I read the Constitution it said that the only way to amend it (and thus expand your power) is through the amendment process in Article V!

Then he goes on to talk about all the “good” he has tried to do. Some of this “good” is, again, government mandating to private companies how they should spend their money by mandating from on high a reduction the amount of oil we consume. Again, I was unaware that Congress was granted this power under Article I, Section 8.

In fact his only real attempt to justify the government’s greater profit per barrel of oil than the oil companies was “It is important to note that federal gas taxes are deposited into the federal highway trust fund, which is the federal government’s main source of highway construction funding.” As though that makes it right? Gee, maybe if we cut out all the pork and unconstitutional spending (which most of the “highway construction funding” is anyway) we wouldn’t have to worry about this!

I guess the scare that he got in the primary from Pat Toomey where he almost lost to a bonafide conservative wasn’t enough. But then again what does he care? This is probably his last term before he retires anyway. So he is free to ?expand? government?s roll all he wants without consequences.

Wanted: 1 conservative Senator to run in the next election…

Do-Gooders: How Liberals Hurt Those They Claim to Help (and the Rest of Us)

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Authors:Mona Charen
Manufacturer:Sentinel HC
Released:29 December, 2004

The Constitution in Exile : How the Federal Government Has Seized Power by Rewriting the Supreme Law of the Land

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Authors:Andrew P. Napolitano
Manufacturer:Nelson Current
Released:18 April, 2006

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