House Passes Comprehensive Energy Plan - Part 2

House Passes Comprehensive Energy Plan - Part 2
May 6, 2005

In last week's column I began discussing key aspects of The Energy Policy Act of 2005 (H.R. 6), which passed with the support of a bipartisan majority of my House colleagues. To briefly review the range of benefits of this bill, it simultaneously: increases production of domestic energy sources; creates incentives to develop more energy from renewable sources and requires more conservation efforts. The legislation will also make our energy distribution system more secure and creates jobs for American families. If passed by the Senate and signed by the President, the bill would reduce our dependence on Middle-Eastern and other foreign sources of oil and therefore is a matter of national security.

Last week, I discussed the effects the legislation will have on crude oil production and gas prices. This week the column will discuss some of the remaining key provisions of the bill including: tax provisions, natural gas, the nation's electric grid, and how this bill will create jobs while improving national security.

Electric Grid

A massive blackout along the East Coast in 2003 made it apparent that, as a matter of national security, we must improve the nation's electricity transmission capacity and reliability. The Energy Bill has enforceable mandatory reliability standards and incentives for transmission grid improvements to ensure reliability of our nation's electricity grid in order to stop future blackouts.

Natural Gas

Natural gas is a major source of fuel in the United States. It is encouraged by the federal government for its clean-burning, environmentally-friendly qualities. North America's non-park lands contain enough natural gas to supply energy to 100 million homes for 157 years. However, Americans are denied access to that supply and are forced to pay higher home heating costs because of bureaucratic red tape that leaves natural gas in the ground.

The energy bill will allow for more natural gas exploration, transportation and development to help ensure a reliable and affordable flow of energy into our homes and businesses. The bill cuts through bureaucratic red tape by streamlining natural gas projects on federal lands and ensuring timely decisions on lease applications for natural gas production. Increasing the natural gas supply will help American families spend less to heat their homes.

Creating Jobs for American Families

The energy bill will create jobs in all sectors, including manufacturing, construction, agriculture and technology. There are realistic estimates of 500,000 new jobs as a result of this bill. For example: the Renewable Fuel Association estimates 214,000 new jobs; the Solar Energy Institute Association estimates incentives for solar energy will assist in creating 20,000 new jobs in the solar energy industry; and the Coal Utilization Research Council estimates 62,000 new jobs in coal related industries.

Tax Relief for Energy Smart American Families

Key provisions from prior energy bills were included in the Working Families Tax Relief Act and the American Jobs Creation Act, which were passed last year. If the House version of the energy bill becomes law, it will contain new tax provisions that will benefit some Third District families and businesses:

- 15% tax credit for residential solar and water heating equipment
- 15% tax credit for residential use of fuel cells
- 15% tax credit for business use of fuel cells
- 20% tax credit (up to $2,000) for energy efficiency improvements to existing homes

National Security

Energy policy is a matter of national security. The bill expands the Strategic Petroleum Reserve. The Strategic Petroleum Reserve was created after the 1973-74 Arab oil embargo to provide the president with an option should a disruption to oil supplies threaten the U.S. economy. It also provides a national defense fuel reserve. The Energy Policy Act passed by the House authorizes increasing the reserve from 727 million barrels to 1 billion barrels.

The Energy Policy Act of 2005 is the fourth time that I have voted for a comprehensive national energy policy. Had the Senate also agreed to one of those prior bills, perhaps today's high energy prices could have been avoided. Until we have a comprehensive national energy policy that increases responsible domestic production, while encouraging conservation and rewarding renewable and alternative sources of energy, prices are likely to remain high. Further, the United States remains vulnerable because too much of our oil comes from Middle Eastern and other foreign sources. It is time for the Senate to pass a similar comprehensive energy bill.

http://www.house.gov/miketurner/news/columns/5.06.05.shtml