Walz Organizes Freshmen House Democrats To Support Landmark Energy Legislation

Press Release

Walz Organizes Freshmen House Democrats To Support Landmark Energy Legislation

Today, Congressman Tim Walz said that Congress is poised to pass an ambitious Energy Bill that will put the United States on a path toward energy independence, strengthening our national security, lowering energy costs, growing our economy, creating new "green collar" jobs, and reducing the harmful gases that drive global climate change.

"This bill is critically important to Minnesota's agricultural producers and to our economy," said Congressman Tim Walz. Walz, who as Freshman Class President continues to work to ensure his fellow first-term Representatives support the bill when it comes to a vote later today, went on to say, "The ground breaking Energy Independence and Security Act will increase the efficiency of our vehicles, make an historic commitment to American-grown biofuels, and improve energy efficiency standards for a wide range of products, appliances, lighting and buildings."

Walz noted that the energy bill repeals tax breaks for profit-rich oil companies, and invests that money in clean renewable energy and new American technologies. Not only would this reduce our dependence on foreign oil, he said, but the measure will also save consumers billions of dollars.

Yesterday, Congressman Walz organized a letter signed by twenty-seven of the members of the freshman class, urging passage of this historic energy independence package and to send a comprehensive energy bill to the President before the end of the year.

Overview of the Energy Independence and Security Act

Historic Fuel Economy Standards for Cars and Trucks, Supported by Environmentalists, Unions and the Automobile Industry: The price at the pump demands groundbreaking and historic provisions to increase fuel economy standard to 35 miles per gallon by 2020 for new cars and trucks. These provisions will save American families $700 to $1000 per year at the pump, with $22 billion in net consumer savings in 2020 alone. This is the first increase by Congress since 1975, marking a significant advancement in our efforts to address our energy security and laying the groundwork for climate legislation next year. The bill ensures that the fuel economy standard will be reached, while offering flexibility to automakers and ensuring that we keep American manufacturing jobs and continue domestic production of smaller vehicles. It will reduce oil consumption by 1.1 million gallons per day in 2020 (one-half of what we currently import from the Persian Gulf), and reduce greenhouse gases equal to taking 28 million of today's average cars and trucks off the road.

Renewable Fuels Standard/Historic Commitment to Homegrown Biofuels: The initiative includes a historic commitment to American biofuels that will fuel our cars and trucks with a robust increase in the Renewable Fuels Standard. This will diversify our energy crops from coast to coast. Whether it is sweet sorghum in Texas, rice straw in California, or switchgrass in Minnesota, we will create American jobs and protect the environment. The measure ensures that biodiesel and cellulosic sources, such as switchgrass, are a key part of the increase. It includes critical environmental safeguards to ensure that the growth of homegrown fuels helps to reduce carbon emissions and does not degrade water or air quality or harm our lands and public health. The plan includes incentives to boost the production of biofuels and the number of Flex Fuel and other alternative fuel vehicles.

Incentives for Hybrids Cars: It establishes a plug-in hybrid/electric vehicle tax credit for individuals and encourages the domestic development and production of advanced technology vehicles and plug-in hybrid vehicles.

Repealing Big Oil and Gas Giveaways to Invest in Renewable Energy: The measure includes tax provisions totaling approximately $21 billion which includes the repeal of about $13 billion in tax subsidies for Big Oil from the House energy bill. The bill closes a loophole written into the international tax bill (H.R. 4520) and rolls back the 2005 Energy Bill tax break for geological and geophysical expenditures. Other revenue raisers in the bill come from the President's budget and from bipartisan negotiations with the Senate.

Electricity from Clean Renewable Sources: This provision, which was contained in the House-passed bill, requires utility companies to generate 15 percent of electricity from renewable sources -- such as wind power, biomass, wave, tidal, geothermal and solar -- by 2020. It permits utilities to meet up to 4 percent of their target through energy efficiency. A 15 percent Renewable Electricity Standard will reduce global warming emissions and lower energy prices and fossil fuel and natural gas consumption and is endorsed by a broad range of businesses, manufacturers, electric utilities, environmental, labor, farm, and faith-based organizations.

Landmark Energy Efficiency to Bring Down Costs: It includes landmark energy efficiency provisions that would save consumers and businesses hundreds of billions of dollars through 2030. It would require more energy efficient appliances, such as dishwashers, clothes washers, refrigerators and freezers, and would speed up Energy Department action on new efficiency standards after six years of delay. It would require improved commercial and federal building energy efficiency and assist consumers in improving the efficiency of their homes.

Incentives for the Renewable Energy Economy: It strengthens and extends existing renewable energy tax credits, including solar, wind, biomass, geothermal, hydro, landfill gas and trash combustion, while creating new incentives for the use and production of renewable energy. It bolsters research on solar, geothermal, and marine renewable energy. The bill provides new clean renewable energy bonds for electric cooperatives and public power providers to install facilities that generate electricity from renewable resources.

Create New Jobs and Reduce Global Warming: A Skilled Green Workforce. This package creates an Energy Efficiency and Renewable Energy Worker Training Program to train a quality workforce for "green collar" jobs -- such as solar panel manufacturer and green building construction worker -- created by federal renewable energy and energy efficiency initiatives. Major investments in renewable energy could create 3 million green jobs over 10 years.

Small Businesses Leading in Renewable Energy: The bill increases loan limits to help small businesses develop energy efficient technologies and purchases; provides information to small businesses to reduce energy costs; and increases investment in small firms developing renewable energy solutions, recognizing the leadership of entrepreneurs in the alternative energy sector.

Energy Efficiency Reduces Carbon Dioxide: The landmark fuel efficiency standard, renewable electricity standard and energy efficiency provisions will not only save consumers and businesses money, but will also significantly reduce carbon dioxide emissions.

Making Coal Part of the Solution: This initiative takes aggressive steps on carbon capture and sequestration to come up with a cleaner way to use coal, authorizing a nationwide assessment of geological formations capable of sequestering carbon dioxide underground and expansive research and development, including large-volume sequestration tests in a variety of different geological formations. It includes incentives for clean coal, which for the first time ever include a requirement for carbon sequestration.

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