Issue Position: Energy and Environmental Security

Issue Position

Energy and a Sustainable Environment are one of the most important issues facing our nation.

In my first term in Congress, I have worked hard to support measures to protect our nation's environment and to make us more energy independent. I am proud to have been the only Pennsylvania Congressman to have received a 100% rating from both the League of Conservation Voters and Penn Environment (as well as the endorsement of the Sierra Club).

In addition to defense, health, education, and the economy, I have made energy and environment one of my five key pillars of national security, and as such I will continue to do everything I can to ensure a prosperous and clean energy future in our community and country.

Toward this goal, on April 10, 2008, I held the first Environment and Energy Roundtable with fifteen representatives from area small businesses involved in clean energy efforts - and representatives from businesses in Washington, DC with similar goals -- to listen to their issues and ideas for how Congress can best assist them in their ongoing work to increase our energy and environmental security. There, I outlined major areas of concern for us to address:

* Reducing our dependence on foreign oil and fossil fuels;
* Approaching the climate and energy crisis so that we see not just the problems it poses but the opportunities, especially for small business; and,
* Effectively curbing greenhouse gas emissions, in order to stave off the worst effects of global warming and to prepare for a changing future.

We know that under the Bush Administration, the price of gasoline has more than doubled in the past few years, creating substantial economic hardship. The problem has been a long time in the making, and there will be no easy, short-term, silver-bullet solutions. We need to lay the framework for a comprehensive overhaul of our national energy policy. We must begin with an honest understanding of what has brought us to this point, and start to take action now to see progress in the near, middle, and long-term.

Over the last 30 years, global demand for energy has skyrocketed, most recently with the emergence of China and India. Crude oil production has increased, but there is little spare capacity left in the market, and every global threat or natural disaster can impact the market price. The United States is the world's largest oil consumer, using 20.5 million barrels a day, but only the third largest producer, pumping 8 million barrels a day. As a result, we have increased our net oil imports 67%, exacerbating our dependence on foreign oil at grave risk to our national security.

Let me be clear: I am for more drilling. And that means drilling now on land already leased to oil and gas companies. These companies have stockpiled nearly 10,000 permits and leases to 68 million acres of Federal territory on which they are not producing oil or gas. Oil companies are drilling at an all-time high success rate; in the last 5 years, 53% of exploratory wells have been successful, meaning 1 in 2 wells now hits black gold, from 1 in 5 hits 35 years ago.

The resources in these open acres could double total U.S. oil production and yield over six times the peak production from the Arctic National Wildlife Refuge (ANWR) in much less time. According to President Bush's own Energy Information Administration, drilling in ANWR would not yield any oil for 10 years, and would only save the consumer 1.8 cents per gallon in 2030.

I am also for drilling on the Outer Continental Shelf (OCS), but first, we need to encourage better use of land already leased. Right now, oil and gas companies can drill on 33.5 million open acres on the OCS, which contain 79% of its known oil reserves (68 billion barrels) and 82% of its known natural gas reserves (350 trillion cubic feet). This would add greater supply faster to help meet our energy demands than the areas that are closed to drilling. Even the Department of Energy has said drilling in the remaining OCS areas would only produce a maximum of 200,000 barrels a day by 2022, with no impact on gasoline prices.

I also support development of the National Petroleum Reserve in Alaska (NPRA), where oil companies have leased only 3 million out of 22.6 million available acres. And we must expedite completion of the Alaskan oil pipeline and the natural gas pipeline for which Congress authorized $18 billion in loan guarantees in 2004, but hasn't advanced one foot since.

Realistically, though, we can't just drill our way to energy independence - not in the short-term, and certainly not over the long-term. Consequently, we need a comprehensive national energy strategy that begins now to take actions that will make strides in energy conservation and efficiency and furthers our transition toward alternative energy sources.

In the near term, we need to avoid excess speculation in our energy markets, which may be responsible for between 2%-10% of today's price of oil. That is why I voted for strong measures to provide proper oversight.

And without doubt, a key factor in high gas prices has been the weakening of the dollar. As policies of the past few years have turned a large surplus into $9 trillion in debt, we have seen an alarming devaluation of our currency. We must work under a pay-as-you-go government to bring down our debt and rebuild confidence in the dollar. If we raise the value of the dollar 10%, we could also reduce the price of oil at least proportionally, perhaps even more.

Now is also the time to draw down a small portion of the Strategic Petroleum Reserve. In 2000, this action helped to significantly bring down the price of oil in one week, and it is the right course of action now.

No single alternative source of energy will solve this crisis but, taken together, we must pursue the range of viable alternatives to reduce our reliance on fossil fuels and create thousands of new jobs here at home.

We should develop carbon capture and sequestration to reduce emissions from coal power. We should support nuclear power once we have established greater standardization measures and resolved the disposal issue at Yucca Mountain. We must move to cellulosic ethanol, provide a level playing field for renewable sources such as wind and solar, and implement an economy-wide cap-and-trade program to spur clean technology development and raise billions for alternatives.

To move us forward as a nation - both as to energy independence and an environmentally secure future -- I worked on and voted for two bills that were a step in the right direction..

H.R. 2776, the Renewable Energy and Energy Conservation Tax Act of 2007, does the following:

* Increases the CAFÉ standard - miles per gallon - that automakers are required to get to 35 mpg by 2020;
* Provides incentives for plug-in hybrids;
* Requires new conservation requirements for federal vehicle fleets;
* Provides funding for increased production of biofuels;
* Requires approximately 25 percent greater efficiency for light bulbs, phased in from 2012 through 2014;
* Requires approximately 200 percent greater efficiency for light bulbs, or similar energy savings, by 2020;
* Provides new standards and grants for promoting efficiency in government and public institutions. New and renovated federal buildings must reduce fossil fuel use by 55% (from 2003 levels) by 2010, and 80% by 2020. All new federal buildings must be "carbob-neutral" by 2030;
* Authorizes $2.4 billion in residential energy-efficiency tax-credit bonds, the proceeds of which would be used to make grants or low-interest loans to support the installation of energy-efficient property in residences, reducing revenue by $273 million through FY 2012 and $903 million through FY 2017;
* Authorizes $3.6 billion in energy conservation bonds, which could be issued by state and local governments to fund conservation projects and would provide holders with a tax credit, reducing revenue by $481 million through FY 2012 and $1.46 billion through FY 201;
* Authorizes $2.4 billion in residential energy-efficiency tax-credit bonds, the proceeds of which would be used to make grants or low-interest loans to support the installation of energy-efficient property in residences, reducing revenue by $273 million through FY 2012 and $903 million through FY 2017;
* Authorizes $2 billion in new clean renewable energy bonds for power providers and electricity cooperatives to finance renewable energy facilities, which would reduce revenue by an estimated $139 million through FY 2012 and FY $550 million through FY 2017;
* Extends for four years a credit for producing electricity from certain renewable sources, reducing revenue by $1.4 billion through FY 2012 and $6.6 billion through FY 2017;
* Extends for eight years a credit for investment in solar energy and fuel cell properties, reducing revenue by an estimated $286 million through FY 2012 and $563 million through FY 2017;
* Creates a tax credit for plug-in hybrid vehicles, reducing revenue by $189 million through FY 2012 and by $1.2 billion through FY 2017;
* Extends for five years, through 2013, the deduction for energy-efficient properties at commercial buildings, reducing revenue by $687 million through FY 2012 and $901 million through FY 2017;
* Extends through 2010, and increases the amount of, a credit for the installation of alternative fuel pumps, such as E-85 pumps; reducing revenue by an estimated $184 million through FY 2017;
* Extends through 2010 the credit for the production of certain energy-efficient appliances, reducing revenue by $351 million through FY 2017;
* Provides a five-year recovery period for smart energy meters, reducing revenue by $371 million through FY 2012 and by $1.3 billion through FY 2017; and

I also voted for HR 3221, the New Direction for Energy Independence, National Security and Consumer Protection Act, which does the following:

* Requires utility companies to produce at least 15% of their electricity through the use of renewable energy resources, such as wind or solar power, by 2020;
* Sets new efficiency standards for appliances, lighting and buildings;
* Authorizes billions for research into sustainable energy sources and alternative fuels; and sets a goal of eliminating greenhouse gas emissions by federal agencies by 2050;
* Authorizes programs to assist small businesses in the energy sector, establishing a new Renewable Fuel Capital Investment Pilot Program, to be run by the Small Business Administration (SBA), to provide loan guarantees and grants to newly-formed "renewable fuel investment companies";
* Authorizes $850 million annually in FY 2008 and FY 2009 for grants to public transportation agencies to reduce fares or increase services in order to promote ridership;
* Creates a new grant program to promote "Smart Grid" technologies, which refers to modernizing electricity infrastructure to increase reliability and efficiency, and requires utility companies to provide more information to customers about electricity prices during peak- and non-peak times.
* Sets new energy-efficiency standards for appliances, lighting, residential buildings, and commercial and federal buildings and sets a goal of eliminating greenhouse gas emissions produced by federal agencies by 2050.
* Authorizes three new programs into sustainable energy sources - geothermal, solar, and ocean energy.
* Creates new programs to research infrastructure and delivery of alternative fuels, and expands an existing federal program to promote the capture and storage of carbon dioxide..

I also sponsored a provision included in H.R. 3221that authorizing grants to small business development centers to provide assistance for developing, marketing, or investing in energy-efficiency technology. The bill included $150,000 to $350,000 grants for SBDCs to provide support to smaller and medium-sized businesses to evaluate energy efficiency and "green" building opportunities, to secure financing to achieve energy efficiency or to construct green buildings, and to help these businesses improve overall environmental performance.

Consistent with the goals of H.R. 2776 and H.R. 3221, I also supported legislation to prevent OPEC Price fixing. H.R. 2264, the No Oil Producing and Exporting Cartels Act (NOPEC), authorizes the Justice Department to take action against OPEC state-controlled entities that participate in conspiracies to limit the supply, or fix the price, of oil. It is for that same reason that I voted for legislation to stop gasoline price gouging. Specifically, the Price Gouging Prevention Act, sets criminal penalties for price gouging of gasoline, and permits states to bring lawsuits against wholesalers or retailers who engage in such practices.

While H.R. 2776 and H.R. 3221 represented significant steps towards energy Independence, I believe more can and should be done to promote conservation, to address global warming and other environmental concerns, and to spur greater investment in alternative clean energy.

To begin to achieve these goals, I signed on as original cosponsor of two major pieces of global warming legislation-the Climate Stewardship Act (H.R. 620) and the Safe Climate Act.
America requires a comprehensive and sustainable national energy plan that will help reverse the effects of global warming, promote conservation, and will foster greater utilization of alternative and renewable energy. My ideas include:

* Supporting the signing of the Kyoto Treaty to reduce carbon dioxide emissions;
* Raising fuel economy standards on automobiles;
* Setting a 10 percent target for renewable energy and an ultimate target of 20 percent;
* Investing in alternative technologies such as fuel cells and bio-diesel;
* Strengthening "tailpipe emissions" standards;
* Encouraging energy conservation by restoring tax incentives for energy efficient vehicles and equipment;
* Creating an advanced research agency to produce new technologies that will reduce oil consumption, improve energy efficiency, and reduce greenhouse gas emissions;
* Offering tax incentives to businesses that utilize alternative fuels and other clean energy technologies rather than offering tax breaks to big oil companies;
* Investing in infrastructure for E85 - a fuel blend that's 85 percent ethanol and 15 percent gasoline and scarcely offered at service stations due to the high costs to mom and pop station owners to install the equipment; and,
* Ensuring that our government has the ability to enforce responsible clean air and water regulations.

My colleagues and I also passed H.R. 5351, which contains incentives to build and maintain an infrastructure of energy efficiency - similar to provisions that were passed by the House in August 2007 but were blocked by the Senate. In addition, we passed HR 6049, the Renewable Energy and Job Creation Act of 2008.

Among its other provisions, this bill provides $27 billion- over 10 years- in extensions of several expired or expiring tax provisions for individuals, families and businesses.

The measure extends $8.8 billion of research credit for businesses; $5.4 billion to accelerate 15-year straight-line cost recovery periods for restaurant property and leasehold improvements; the personal deduction for tuition and education expenses, providing $2.6 billion indirect aid to students and their families; and, extends the option to deduct state and local sales taxes, instead of state and local income taxes, at a cost of $1.7 billion.
Supporting alternative sources of energy is a long term approach to supporting American families and businesses that depend on reasonably priced energy costs and builds an energy infrastructure for the future.

That is why, I was pleased to be able to vote for the Renewable Energy and Energy Conservation Act, which, as I have noted, provides substantial tax incentives to invest in clean, renewable energy.

Specifically, the new bill includes a production tax credit for wind, geothermal, and other renewable energy sources and extends the investment tax credit for individual home owners and businesses to maintain the incentive for solar energy through the end of 2016. This supports the goal of 45 states to develop 42,000 megawatts of planned renewable energy sources and support the approximately 116,000 jobs that are involved in this initiative nationwide.

In addition the bill supports alternative infrastructures by providing a $4,000 tax credit for the purchase of plug-in hybrids- cars that rely on electricity for the first 20-40 miles before they begin to consume gasoline.

Buildings are a significant source of energy consumption and greenhouse gas emissions. Among the other reasons I have noted, I supported HR 5351 because it extends tax deductions for energy efficient commercial buildings through 2013 and established incentives for the construction of energy efficient-buildings and the retrofitting of existing homes, which would significantly reduce energy use and pollution.

I believe that as energy costs continue to rise, we can both create jobs and increase our energy efficiency standards by constructing and retrofitting buildings that comply with at least the LEED rating system.

Finally, we must create private-public academic and business partnerships to drive R&D in efficiency and production of alternative fuels. In the 7th District, we are blessed with many schools and talented students, a wealth of opportunity to drive innovation and draw new high-tech jobs to the area. This marriage of university research, private investment, and clean technology development is good for business, good for jobs, and good for the environment.

We need a strategy with a vision for the long-term transition to clean energy. I am confident in our ingenuity and ability to achieve real and lasting energy and environmental security.

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