Bill Text: NJ SR65 | 2012-2013 | Regular Session | Introduced
Bill Title: Memorializes Congress and President to facilitate construction of proposed Keystone XL oil pipeline and pipelines from Midwest to East Coast.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-06-04 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [SR65 Detail]
Download: New_Jersey-2012-SR65-Introduced.html
Sponsored by:
Senator SAMUEL D. THOMPSON
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Memorializes Congress and President to facilitate construction of proposed Keystone XL oil pipeline and pipelines from Midwest to East Coast.
CURRENT VERSION OF TEXT
As introduced.
A Senate Resolution memorializing the Congress and President of the United States to facilitate construction of oil pipelines from the Midwest to the East Coast and the proposed Keystone XL pipeline which would transport crude oil from Canada to the Midwest.
Whereas, The residents of New Jersey and the United States at large depend on a reliable and affordable supply of gasoline to travel, engage in commerce, and meet their general energy needs; and
Whereas, Since December 2011, the national average cost of gasoline has risen from $3.32 per gallon to $3.99 per gallon in April 2012; and
Whereas, The high cost of gasoline not only disrupts economic recovery by stifling industry and commerce, but also threatens the financial well-being of millions of American families who are already suffering as a result of the current economic downturn; and
Whereas, The most significant factor affecting the price of gasoline is the cost of crude oil from which it is refined; and
Whereas, The overall worldwide cost of crude oil has risen dramatically as a result of global economic growth and rising international tensions involving major oil producing nations in the Middle East; and
Whereas, The East Coast of the United States is particularly vulnerable to this price volatility because it must rely heavily on crude oil that is imported from overseas and is therefore more susceptible to the instability of global markets; and
Whereas, East Coast refineries cannot readily access existing supplies of cheaper, more stable crude oil from the midwestern United States because sufficient pipelines to transport this abundant domestic resource do not exist; and
Whereas, The high cost of refining gasoline on the East Coast that has resulted from its reliance on expensive crude oil imported from overseas has already led to the closure or idling of two refineries in the region and threatens to cause the closure of yet another refinery; and
Whereas, Reports indicate that these closures could potentially reduce refining capacity in the region by as much as 50 percent, and thereby only exacerbate the problem of nearly record high gasoline prices; and
Whereas, Recent estimates suggest that as a result of these circumstances, gasoline prices could rise as high as $5.00 per gallon in coming months; and
Whereas, The construction of new pipelines would provide the East Coast refinery operators with viable and efficient access to Midwest crude oil so as to increase overall supply and thereby alleviate the financial pressures currently responsible for the continuing rise of gasoline prices in the region; and
Whereas, Canada is currently the largest, most stable supplier of foreign crude oil to the United States, contributing approximately 22 percent of total oil imports; and
Whereas, The United States Energy Information Administration has reported that Canadian crude oil amounts to more than 175 billion barrels of proven reserves; and
Whereas, On May 4, 2012, the United States Department of State received a new application from the TransCanada Corporation seeking approval for the construction of the Keystone XL pipeline, which would transport crude oil from the Canadian border to existing pipelines in the Midwest; and
Whereas, The proposed Keystone XL pipeline would provide increased access to a stable supply of North American crude oil to the United States at large, thereby lessening overall dependence on volatile overseas markets and alleviating financial pressures that drive the price of gasoline on a national level; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. The Congress and President of the United States are respectfully memorialized to take all appropriate legislative and regulatory action necessary to facilitate the approval and construction of new pipelines that would transport crude oil from the Midwest to the East Coast of the United States and the proposed Keystone XL pipeline which would transport crude oil from Canada to the Midwest.
2. Duly authenticated copies of this resolution, signed by the President of the Senate and attested by the Secretary thereof, shall be transmitted to the President and Vice President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.
STATEMENT
This resolution would memorialize the Congress and President of the United States to take all appropriate legislative and regulatory action necessary to facilitate the approval and construction of: 1) new pipelines for the purpose of transporting crude oil from the Midwest to the East Coast of the United States; and 2) the proposed Keystone XL pipeline, which would transport Canadian crude oil to existing pipelines in the Midwest.
At present, gasoline refinement on the East Coast relies heavily on crude oil that is imported from overseas and thus particularly susceptible to the instability of global market prices. This lends to higher and more volatile gasoline prices in the region. Currently, East Coast refineries cannot efficiently access cheaper and more stable domestic crude oil from the Midwest because adequate pipelines do not exist. The construction of such pipelines would alleviate financial pressures that contribute to high gasoline prices in the region. Similarly, construction of the proposed Keystone XL pipeline would provide, for the United States at large, increased access to cheaper and more stable Canadian crude oil, thereby alleviating the broader financial pressures that drive gasoline prices at a national level.
Accordingly, this resolution would urge Congress and the President to facilitate the approval and construction of new pipelines that would transport crude oil from the Midwest to the East Coast and the proposed Keystone XL pipeline.
