Congress Budget for the United States Government for Fiscal Year 2009--Continued

Floor Speech

CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT FOR FISCAL YEAR 2009--Continued -- (Senate - March 13, 2008)

BREAK IN TRANSCRIPT

Ms. COLLINS. Mr. President, the Collins-Levin energy independence amendment will help set us on a path toward energy independence and provide a more sensible energy tax policy. The Collins-Levin energy independence amendment to the budget resolution specifies that legislation under the reserve fund for investing in clean energy, preserving the environment, and providing for certain settlements may also include tax credits for the following:

Our amendment expands energy tax credits to encourage replacement of old wood stoves with clean burning, more efficient stoves. Unfortunately, many of the wood stoves purchased decades ago are outdated, inefficient, and are contributing to both indoor and outdoor air pollution. The emissions from these old wood burning stoves present a serious health concern, contributing to such respiratory ailments as asthma and bronchitis. New, EPA-certified wood and wood pellet stoves can cut emissions by more than 70 percent and use as much as a third less firewood for the same amount of heat.

The production of ethanol from cellulosic sources and production of biodiesel fuels. These technologies each offer tremendous potential for reductions in our gasoline consumption and in greenhouse gas emissions and will help move our petroleum-based economy toward a renewable, sustainable forest bio-economy.

The purchase of plug-in hybrid electric drive vehicles. The combination of advanced battery technology and advanced hybrid systems offer tremendous potential for reduction of oil consumption, but tax incentives will be necessary to offset the increased cost to consumers and to achieve widespread acceptance by consumers. It is estimated that a plug-in hybrid could get the equivalent of 100 MPG, having a large impact on reducing our use of oil.

We would pay for these by scaling back a tax preference for large oil companies which their executives have testified they do not need. The amendment also specifies that legislation under this reserve fund may include adjustments to the amortization of geological and geophysical expenditures by integrated oil companies to help pay for the tax incentives.

In 2005, the major oil companies have conceded that they do not need this tax break. Adjustments to this tax break could provide billions over 5 years. There is no reason to provide reduced tax rates for one of the world's most profitable industries at a time when so many families and small businesses are struggling and when we need to address the long-term challenge of reducing our reliance on imported oil.

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