Walsh and House Republicans Successfully Defend Energy Bill from Tax Hike

Press Release

WALSH AND HOUSE REPUBLICANS SUCCESSFULLY DEFEND ENERGY BILL FROM TAX HIKE

House Passes Comprehensive Energy Bill with Increased Mileage Standards for Cars

This week, Congressman Jim Walsh voted for and the House of Representatives passed a comprehensive Energy Bill, which includes a 35-miles-per-gallon increase to corporate average fuel efficiency (CAFE) standards for automobiles, an increase to energy efficiency standards, and a renewable fuels mandate. Passage of the bill ends a drawn-out process that was repeatedly delayed by the majority Democrats who attempted unsuccessfully to ram through a $21 billion tax hike -- a $16 billion increase from the original bill.

"After much effort, we were able to give Americans an Energy Bill that leads us away from dependency on foreign oil, increases our reliance on renewable resources made right here at home, and protects jobs," said Walsh.

The CAFE increase is the first for American automobiles since the 1970s. Walsh is a strong supporter of increasing CAFE standards, originally co-sponsoring stand alone legislation (H.R. 656 and H.R. 1506). A renewable fuels mandate included in the legislation requires refiners to produce 36 billion gallons of renewable fuels annually by 2022. The annual requirement would produce 15 billion gallons of corn-based ethanol by 2015 and 21 billion gallons of advanced biofuels, including 16 billion gallons of cellulosic ethanol.

The National Commission on Energy Policy estimates that the rise in fuel efficiency standards and the renewable fuels mandate will reduce domestic oil use by 5 million barrels per day by 2030, save consumers $161 billion annually by 2030 in fuel costs based on $90 per barrel oil and $3 per gallon gasoline, and reduce U.S. carbon dioxide emissions by 320 million metric tons in 2020.

Not included in the bill were the Renewable Portfolio Standard (RPS) and a $21 billion tax hike, both stripped out by the Senate. Walsh had drafted a letter to Senate Leadership calling for the tax provisions to be taken out of the bill, while keeping the RPS provision. The RPS mandate called for utility companies to generate 15% of their electricity from renewable resources. Walsh is a supporter of the RPS provision and has co-sponsored stand alone legislation calling for this mandate (H.R. 969).

"It was foolish to think that we would somehow lower gas prices and lessen our dependence on foreign energy by raising taxes on our own domestic energy industry," said Walsh. "This clean bill, which was passed without the punitive tax increase, is a step in the right direction. There is still much work to be done promoting energy independence and renewable energy sources and I will continue to push for it."

The legislation is expected to be signed into law by President Bush later this week.

Walsh also announced this week his co-sponsorship of H.R. 4226: The Climate Stewardship and Economic Security Act, which offers a cap-and-trade program aimed at cutting greenhouse gas emissions 70% below 1990 levels by 2050. In an effort to protect the economy as well as the environment, the program also allows flexibility to business and industry by providing financial incentives for the development of new energy technologies.

"This legislation begins to responsibly address global warming in a way that is both environmentally friendly and economically sound," said Walsh. "The financial incentives promote environmental concerns while allowing the free-market the ability to respond to economic concerns."

The Climate Stewardship and Economic Act improves upon H.R. 620: The Climate Stewardship Act by setting strong environmental targets, allowing business and industry to grow, and positioning the country to curb global warming. Congressman Walsh also cosponsored H.R. 620.

The bill serves as a companion to S.2191: America's Climate Security Act which was introduced by Senator Lieberman and Senator Warner.

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