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 12, 2008)

BREAK IN TRANSCRIPT

AMENDMENT NO. 4209

Ms. COLLINS. Mr. President, this is the only time I am happy that a Democratic Senator is in the chair. It actually worked out well tonight. I thank Senator Gregg for his courtesy as well and also for his tremendous leadership on budget issues.

Senator Levin and I have filed an amendment, No. 4209, that will help set us on a path toward energy independence, as well as provide a more sensible and balanced energy tax policy.

This has been a very long, hard, cold, and snowy winter in the State of Maine. As I have visited communities across the State, I hear time and again that the high cost of energy is imposing such a burden on our citizens.

My hometown of Caribou, ME, saw 17 days of at or below zero temperatures in February. Caribou is only inches short of setting a record for snowfall in the winter. The previous record was 181 inches of snow. It is clear that record is going to be broken. In fact, more snow and cold weather is forecast for this weekend. It takes a great deal of energy to heat a home under such conditions.

Rapidly increasing prices for home heating oil, gasoline, diesel fuel, and other products refined from fuel are a huge burden for most Maine families, for our truckdrivers, for our small businesses, for so many people. High oil prices affect virtually every corner of our economy in Maine and throughout the Nation, and they are a significant cause of the current economic downturn.

With net profits of a single oil company reaching almost $10 billion in a single quarter, I believe we should not expect taxpayers struggling to pay their bills to continue to subsidize the oil industry through tax incentives.

Last year, I introduced a bill that would take away needless tax breaks for the oil industry, and along with my colleague, Senator Levin, I am proposing much the same approach today with the Collins-Levin energy independence amendment. These are the very tax breaks that at a hearing in November of 2005 executives of the big oil companies themselves conceded are not necessary. I simply see no justification to continue 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 due to the high cost of oil.

Mr. President, does it not make sense for us to take a look at these tax subsidies which the oil companies themselves have admitted they do not need as incentives? In fact, obviously, with oil over $100 a barrel, it is difficult to think that price alone is not a sufficient incentive for exploration and drilling to find additional supplies.

We also must embrace the goal of energy independence. I think we should establish the year 2020 as the date by which we want to be energy independent. We need to pursue this goal of energy independence with just as much fervor and commitment as we pursued the goal of landing a man on the Moon in the 1960s.

I am pleased that the Budget Committee included provisions to extend the renewable energy production credit, the clean renewable energy bonds, and provisions for energy-efficient buildings, products, and powerplants in section 304 of the budget resolution. But we need to do more. We need to develop policies that are all aimed toward the goal of freeing us from our dependence on imported oil.

I know it must trouble you, Mr. President, as much as it does me when I hear the dictator in Venezuela threatening to shut off oil to this country. The fact is, with 12 percent of our oil coming from Venezuela, that would hurt our economy. I don't think we should be dependent on Middle East oil given the instability of that region as well.

So we can embrace the goal of energy independence by the year 2020. We have taken a step toward that goal by increasing the fuel-efficiency standards for our cars, light trucks, and SUVs. That will help save a million barrels of oil a day. But there is more we can do.

In addition to the energy tax credits that I have mentioned that are in the budget resolution, the Collins-Levin amendment would provide for a tax credit for replacing old, inefficient wood stoves with clean-burning, more efficient wood stoves and pellet stoves that can provide much more heat for far less fuel than was once the case.

In addition, we should provide a production tax credit for cellulosic ethanol and a vehicle tax credit for plug-in hybrid electric drive vehicles. I know that has been a goal of the Senator from Utah for many years as well.

Unlike the current language in the budget resolution, the Collins-Levin amendment also proposes offsetting some of the costs of these renewable energy credits and other kinds of conservation credits by pulling back some of the tax breaks for the large oil companies. Estimates of savings from this proposal range up to $6.4 billion over 5 years. I think that is reasonable, and that will help shift our tax policy toward credits and other incentives that will help us reach the goal of energy independence.

Let me describe a little bit more the provisions having to do with a tax credit for clean-burning wood stoves or for wood pellet stoves.

During the height of the oil crisis in the 1970s, many families throughout the country turned to wood as an affordable way to heat their homes. With oil prices soaring once again, wood is the fuel of choice for an increasing number of households, particularly in a heavily forested State such as the State of Maine. But, 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-style wood-burning stoves present a serious health concern, contributing to respiratory ailments such as asthma.

There have been great, exciting advances in wood stove technology. I saw them personally at a Jotul plant in Gorham, ME. They now have a second burn of the emissions, which makes them far more efficient and also far cleaner burning. 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.

But it is expensive to make that transition from the old, dirty, inefficient wood stove to the clean-burning stove. That is why our amendment includes a $500 tax credit to help consumers purchase and install these new clean-burning stoves as well as the efficient, clean wood pellet stoves.

We also provide a tax credit for the production of cellulosic ethanol. While there has been a great deal of focus on corn-based ethanol in order to decrease our reliance on foreign oil, there are other renewable plant-based energy sources.

Mr. President, I ask unanimous consent to have 1 additional minute.

The PRESIDING OFFICER. Without objection, it is so ordered.

Ms. COLLINS. Mr. President, the University of Maine is doing exciting work in this area.

In addition and finally, our proposal would provide a tax credit for plug-in hybrid vehicles. That, too, would help reduce our reliance on foreign oil.

This amendment takes a balanced approach toward our tax policy, and it will help advance us toward the goal of energy independence.

The Collins-Levin amendment would provide for a tax credit for production of cellulosic ethanol. While there has been a great deal of focus on using corn-based ethanol in order to decrease our reliance upon foreign oil, there are other renewable, plant-based energy sources that are more environmentally friendly and have greater potential to reduce greenhouse gas emissions. These technologies will help move our petroleum-based economy toward a renewable, sustainable forest bio-economy. In fact, researchers at the University of Maine recently teamed up with a local pulp mill to demonstrate cellulosic ethanol production at a commercial scale. It is an exciting time for this new technology.

Finally, the Collins-Levin amendment would provide for a tax credit for plug-in hybrid vehicles. If all new vehicles added to the U.S. fleet for 10 years were plug-in hybrids, an additional 80 billion gallons of gasoline could be saved each year. Obviously, we won't be replacing all new vehicles with plug-in hybrids, but that statistic illustrates the large impact plug-in hybrids can have on reducing our use of oil.

The provisions in our amendment are in addition to renewable energy production and energy efficiency provisions already in section 304.

Section 304 would allow for extension of the renewable electricity production tax credit. I believe it is important to give companies certainty now to plan investments in renewable electricity generation for the near future. These efforts represent a large up-front capital investment. Thus, companies will not continue to expand renewable energy production in the absence of this credit, which makes such projects cost competitive with traditional energy sources.

Section 304 also would allow for legislation to encourage energy efficient buildings, products, and powerplants. Making buildings more energy efficient can dramatically reduce our use of oil and save money for consumers at the same time. For example, on average, weatherizing a home reduces heating bills by 31 percent and overall energy bills by $358 per year.

Mr. President, as I mentioned at the beginning of my remarks, this amendment provides for the rescission of tax breaks that the oil companies themselves testified they do not need. It uses that revenue for additional renewable energy and energy efficiency initiatives. I urge my colleagues to support the Collins-Levin energy independence amendment.

Mr. President, I urge my colleagues to support the Collins-Levin amendment when it is voted on.

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