Walz Votes for House Energy Plan

Press Release

WALZ VOTES FOR HOUSE ENERGY PLAN

Yesterday, Congressman Tim Walz joined 235 of his colleagues in passing H.R. 6899, the Comprehensive American Energy Security and Consumer Protection Act.

"The Bush-Cheney energy plan has been a success, but for the Big Oil companies, not the American people. It's time for a new direction in our energy policy," said Walz. "I was proud to work with a bipartisan group to craft new energy legislation, and many of our ideas were incorporated into this plan: it invests in renewable sources of energy, responsibly increases domestic supply by opening up the Outer Continental Shelf for drilling, releases oil from the Strategic Petroleum Reserve, eliminates unnecessary tax breaks for Big Oil and requires Big Oil to pay the billions of dollars they owe in royalties to invest in clean energy resources."

Walz continued, "This legislation will help create millions of good-paying American jobs in the renewable energy industry and it will begin to break the stranglehold that foreign oil has over America."

The Comprehensive American Energy Security & Consumer Protection Act is a compromise that combines expanded drilling with an American-owned 21st century comprehensive, clean renewable energy and efficiency approach.

H.R. 6899 passed by a vote of 236 to 189. Details on H.R. 6899 follow:

Lowers Costs to Consumers & Protects Taxpayers

* Royalty Reform: Making Oil Companies Pay Their Fair Share for Drilling on Public Lands. Ensures that oil companies pay their fair share of royalties on flawed leases granted in 1998 and 1999. Oil companies holding 70 percent of these leases issued in the Gulf of Mexico from 1998 and 1999 pay no royalties on this oil, costing American taxpayers about $15 billion.

* Repeal of Tax Subsidies. Repeals a giveaway in the 2004 international tax bill (H.R. 4520) for the Big Five oil companies. (Small, independent oil and gas companies would continue to benefit from the deduction at the current rate.) It also closes a foreign tax loophole for large oil companies.

* Releasing Oil from the Strategic Petroleum Reserve. Temporarily releases nearly 10 percent of the oil from the government's stockpile (known as the Strategic Petroleum Reserve (SPR)), and replaces it later with heavier, cheaper crude oil. Past releases have brought down prices by up to 33 percent.

* Mineral Management Service Ethics Reform. Takes aggressive steps to crack down on the extreme misconduct at the Mineral Management Service - the agency charged with collecting royalties from oil and gas companies.

Renewable Energy Future, Creating American Jobs

* Renewable Energy and Efficiency Tax Incentives. It expands and extends tax incentives for renewable electricity, energy (such solar and wind) and fuel from America's heartland, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. Investments in renewable energy create three to five times as many jobs as investments in fossil-fuel energy.

* Investing in Renewable Energy, Energy Efficiency and Home Heating Assistance (LIHEAP), Paid for by Making Oil Companies Pay their Fair Share for Drilling on Public Lands (98/99 leases). Creates a Renewable Energy Reserve to invest in clean, renewable energy resources and alternative fuels, promote new energy technologies, develop greater efficiency and improve conservation. It will also fund home heating assistance (LIHEAP), weatherization, the Land and Water Conservation Fund, and carbon capture and sequestration. Revenues from new areas opened offshore will also be deposited in this fund.

* Electricity from Clean Renewable Sources. Requires utility companies to generate 15 percent of electricity from renewable sources -- such as wind power, biomass, wave, tidal, geothermal and solar -- by 2020. A 15 percent Renewable Electricity Standard will reduce global warming emissions and lower energy prices, saving consumers $13-18 billion cumulatively by 2020. It permits utilities to meet up to 4 percent of their target through energy efficiency. This levels the playing field for Minnesota companies who already have to meet a similar state-mandated RES.

* Renewable Biomass. Expresses the sense of Congress that the Renewable Fuel Standard should ensure that every region of the country can be a potential producer by calling for cellulosic biofuels to be produced from a highly diverse array of feedstocks.

Expanding Domestic Energy Supply

* Responsible Compromise on Drilling on the Outer Continental Shelf.

o The compromise would permit leasing between 50 and 100 miles offshore if a State ‘opts-in' to allow leasing off its coastline by enacting a state law.

o Environmental Protections: marine National monuments and national marine sanctuaries are permanently withdrawn from oil and gas leasing. All leasing activities must protect the coastal, marine and human environment of the State coastal zones and OCS.

o DOD authority to designate national defense areas remains in force and leasing must also take place in accordance with a Memorandum of Agreement between DOD and Interior Departments.

o Adhere to the 2006 law protecting some of the Eastern Gulf of Mexico until 2022 and exempts Georges Bank (in New England), which supports the most valuable fishery in America.

o The remaining Outer Continental Shelf beyond 100 miles would be open to oil and gas leasing.

* Require Oil Companies to Drill on the 68 Million Acres of Federal Lands They Already Control. Strengthens requirements that oil companies produce oil on federal lands leased for drilling during the initial term of their lease.

o Increase Domestic Oil Production in Alaska. Mandates annual lease sales in the National Petroleum Reserve in Alaska, which has more oil than the Arctic Wildlife Refuge. Also requires the Bush Administration to facilitate completion of the oil pipeline infrastructure into the Reserve and the construction of the Alaska Natural Gas Pipeline, which could create up to 100,000 jobs, while banning export of Alaskan oil outside the U.S.

* Promote Natural Gas, E-85 Infrastructure. Includes incentives and financing mechanisms for installing natural gas pumps in service stations and homes and requires service stations owned by Big Oil to install at least one "alternative fuel pump"—such as natural gas or E-85. Natural gas costs 40 percent less than gasoline, is 33 percent cleaner and is produced in North America.

* Carbon Capture & Sequestration. Advances the development and deployment of carbon capture and storage (CCS) technologies to come up with a cleaner way to use coal.

* Oil Shale. Allows Utah, Wyoming, and Colorado to opt in to exploration, development, or production of federal oil shale reserves, if the State enacts a law approving that.

Greater Energy Efficiency and Conservation

* Strengthen Energy Efficiency in Buildings to Bring Down Costs. Could save consumers at least $210 billion in energy costs through 2030 by updating energy codes for new buildings. New residential and commercial buildings will have to realize a 30 percent improvement in minimum building standards by 2010, and 50 percent by 2020. The building sector alone accounts for approximately 48% of all energy consumed in the United States and of all U.S. greenhouse gas emissions.

* Incentives for Energy Efficient Homes. Provides incentives to lenders and financial institutions, including the Federal Housing Administration, to provide lower interest loans to consumers who build, buy or remodel their homes to improve their energy efficiency. The average American spends 9.7% of their income on energy, while low-income households spend more than 16%.

* Saving Energy Through Public Transportation Act. Reduces transit fares for commuter rail and buses and expands service. The average commuter can save up to $8,000 a year riding public transit, based on today's gas prices.

Source