An Assembly 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, 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 2003, the national average cost of gasoline has risen from $1.603 per gallon to $3.575 per gallon in 2013; 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 Great Recession; 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 caused at least two facilities to cease oil refining operations; and

Whereas, Reports indicate that such closures substantially reduce the volume of petroleum products supplied to the northeastern United States, and thereby exacerbate the problem of nearly record high gasoline prices; 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 25 percent of total oil imports; and

Whereas, The United States Energy Information Administration has reported that Canadian crude oil amounts to more than 173 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; and

Whereas, Studies have shown that approval of the Keystone XL Pipeline will directly create at least 16,000 jobs, especially amongst skilled trades people, and tens of thousands more indirect jobs, giving the United States economy a much-needed shot in the arm; and

Whereas, America's labor force has declined to its lowest point in years, and with more and more families struggling to make ends meet and energy prices continuously rising, construction of oil pipelines from the Midwest to the East Coast and the Keystone XL Pipeline makes sense for our economic future and to fulfill our energy needs; now, therefore,

Be It Resolved by the General Assembly 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. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly 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.