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FOR IMMEDIATE RELEASE

SPI Plays Key Role in Passage of Senate Energy Bill
Lawmakers specifically cite plastics industry during hearing

WASHINGTON (May 20, 2005) - The Senate Energy and Natural Resources Committee today passed a historic, bi-partisan energy bill that will serve to significantly reduce natural gas, electricity and other energy costs negatively impacting U.S. plastics manufacturers. The bill, approved by a 21-1 vote, now moves to the full Senate, where debate is expected to begin soon after the Memorial Day holiday.

During today's hearing, energy committee Chairman Sen. Pete Domenici (D-NM), specifically cited plastics as an industry that is suffering under the burden of soaring natural gas prices. Sens. Mary Landrieu (D-LA) and George Allen (R-VA) echoed Domenici's comments regarding the hardship high energy costs have placed on U.S. plastics manufacturers.

The comments come as SPI wraps up the first phase of its sweeping grassroots campaign to reach out to Senators serving on the Energy and Natural Resources Committee. Through its regional offices, SPI worked in recent weeks to rally plastics companies across the nation, urging them to blanket their Senator's offices with letters, faxes and e-mails. The communications were intended to educate the lawmakers about the size and scope of the U.S. plastics industry, and to implore their support of legislation that would provide for a comprehensive energy policy and affordable, reliable sources of natural gas.

"Today's vote is evidence of the power of the people," said SPI President Bill Carteaux. "Through SPI's extensive grassroots network, we were able to successfully unify the voice of the U.S. plastics industry, and now that voice is being heard on Capitol Hill," he said.

In addition to the grassroots efforts, SPI called on key Senators serving on the energy committee and from states with notable plastics industry presence. During face-to-face meetings last week and early this week with representatives from the offices of Sens. Feinstein (D-CA), Johnson (D-SD), Alexander (R-TN), Boxer (D-CA), Levin (D-MI), Stabenow (D-MI) and Landrieu, SPI reinforced the message of the grassroots campaign. The association further made its case by participating in multi-industry groups such as the Consumer's Alliance for Affordable Natural Gas (CAANG) and the Industrial Energy Consumers of America (IECA).

Included in the new Senate energy bill are a number of conservation and efficiency measures, as well as options for increased use of alternative fuels. Also built-in is a Coastal Impact Assistance amendment, which offers drilling companies monetary incentives to access natural gas reserves in different ways, by allowing them to drill deeper, further out and so forth.

The Committee also approved an amendment introduced by Sen. Landrieu calling for a government study to determine the exact availability of natural gas resources in the Outer Continental Shelf (OCS) region. Another provision in the bill gave the Federal Energy Regulatory Commission (FERC) exclusive jurisdiction over the siting of liquefied natural gas facilities.

"By establishing FERC as the sole deciding voice of the site selection process, plastics companies should see improved access to LNG imports," said Gene Steadman, Chair of SPI's Energy Taskforce.

After intense debate, a contentious provision that would lift the current OCS drilling moratoria was deferred by Chairman Domenici to a full senate vote. With committee approval of the energy bill now wrapped up, the next step will be a full Senate vote expected in early to mid June. In the weeks leading up to this debate, SPI plans to step up its grassroots efforts, launching another letter-writing campaign and continuing Hill visits with Senators from key plastics states.

Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.4 million workers and provides nearly $310 billion in annual shipments. For more information, visit SPI on the Web at www.plasticsindustry.org.

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