Castle Statement On Passage Of American Clean Energy And Security Act

Statement

Castle Statement On Passage Of American Clean Energy And Security Act

"My priorities, as I represent Delaware in the U.S. House of Representatives today, begin with the economic opportunities and security for all who live here. We are facing serious challenges in both areas. With state budget shortfalls, rising unemployment and stagnant growth in many of the industries on which we typically rely-- new ideas and bold strategies for the future are required. Simultaneously, our nation's military is spread thin across the world in an effort to confront those who seek to do us harm. One major threat to our security and theirs is the current reliance we have on foreign energy sources.

"Nations around the world are surging ahead with emission reductions and developing new energy technologies. The United States should be on equal footing, if not leading this effort to remain competitive.

"The recent vote in the U.S. House on the American Clean Energy and Security Act was on whether to pursue these new strategies, or hold on to the status quo. I supported the legislation because it is my belief that we cannot turn away from the opportunity to create new jobs and reduce our dependence on foreign sources of energy. With offshore wind, fuel cells, and solar energy initiatives, Delaware is poised to lead such innovation and create new jobs in these important areas while protecting the tourism industry and our very own coastline. We must live in the present but look to the future, and focus on strengthening the economy by driving advancements in industry and new business growth in Delaware. Such a market-driven solution, according to the Center for American Progress, is estimated to bring a net increase of about $460 million in investment revenue and 6,000 jobs to our state.

"The real struggle I faced in whether to support this legislation is the cost of implementing new energy policies and addressing greenhouse gas pollution. I worry about the estimates that utility costs for all of us may increase, but I also agonize about the cost of doing nothing. One estimate, done by M.J. Bradley & Associates, using the Energy Information Agency, and EPA analysis, reflects that the average monthly bill in Delaware would increase by $3.00. To prevent increases in energy costs, a portion of the allowances will flow directly back to low- and moderate-income families through tax credits, direct payments, and electronic benefit payments.

"Clearly, any rate hike is going to hurt and I continue to work to ensure that we have measures in place to mitigate the impact on all income levels. Several colleagues and I worked to include an amendment to expand the financial tax credit relief for middle-income families, but such an amendment was blocked from consideration. I plan to pursue this change in negotiations with the Senate. I also believe that so many new energy efficiency measures will simultaneously reduce our energy usage and lower the cost of our utility bills. Under this legislation, revenues will be reinvested from the market back to consumers, energy research and development, and job-creation measures.

"The legislation establishes a system where greenhouse gas emissions are limited, and where emissions allowances are auctioned by the EPA and bought or sold among polluters. Delaware is already participating in a regional cap-and-trade program called the Regional Greenhouse Gas Initiative (RGGI). This bill will return revenue to all states, and in fact, will bring more to the state than RGGI, in order to promote the same types of energy efficiency and renewable energy programs.

"The legislation also requires that 20% of energy produced by electric utilities come from renewable resources and energy savings by 2020, still below Delaware's own standard. A robust renewable electricity standard is the most important policy tool we have to make sure new energy projects utilize American-made components manufactured by American workers, and I believe we should strive to strengthen the national standard.

"The coal resource of the U.S. is abundant and the bill creates new programs designed to promote carbon capture and sequestration, and sets new emissions standards for coal-fired power plants. This bill also supports modernizing of electricity infrastructure, including smart grid technologies. And, to aid the US auto manufacturers, the bill aims to assist in the development of improved battery technology and plug-in electric vehicles.

"Major technological advancements and tax incentives are already positively influencing the advancement of the wind, solar, fuel cell, and biomass industries right here in Delaware. Green jobs, which could be those involved with electricity generated by wind, those that produce energy-efficient goods and services like mass transit, or those that install energy-conserving products like retrofitting buildings with thermal-pane windows, fuel cells, and solar -- are key to the success of a new energy economy. Much work has been done voluntarily over the last several years to reduce greenhouse gas emissions and I was glad to see that the bill takes steps to recognize these early, voluntary actions by industry leaders.

"In speaking with Governor Markell, we agree that this legislation will strengthen our domestic economy through innovative and sustainable job creation. I have also heard from leading Delaware businesses who believe in the opportunity of transforming to a clean energy economy. Ion Power said: this bill "will make a real difference for America, and my business." Eclipse Solar has said: "...we also know that clean energy is a great way to make money; supporting solar energy and other renewables will boost our economy and help create more jobs." Delaware Technical and Community College offered: "...the College is developing an Applied Energy Education Center that will connect Delawareans to new "green" jobs by developing Delaware's green workforce and enabling citizens and businesses to reduce their energy costs through increased energy efficiency, conservation, integration, and management." Bluewater Wind wrote: "By taking bold, concrete steps to address climate change and creating a new national Renewable Electricity Standard (RES), passage of the Waxman-Markey bill will spur hundreds of thousands of new jobs in America's growing renewable energy industry."

"The agriculture sector plays a vital role in Delaware's economy. I was pleased to support U.S. House Agriculture Chairman Peterson's work to ensure that the interests of the agriculture community were represented in the legislation, including that the U.S. Department of Agriculture will be in charge of working with farmers on the portion of the offset program that involves generating offset credits from US farms and forests.

"Complex and detailed proposals must always be weighed thoughtfully and carefully. Ultimately, challenging economic times demand that we look to the future, not cling to the past. Leading experts differ on the economic impact that this legislation will have on each of us and I will remain closely engaged in efforts to reduce any cost increase passed through utility bills. This may not be a silver bullet for turning our economy around over night. However, I am confident that we must drive innovation, research and market-based strategies to strengthen our immediate economic outlook and instill optimism for tomorrow."

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