Increased world demand for crude oil, limited U.S. refinery capacity and other factors have combined to put pressure on gasoline prices, pushing the cost of fuel to historic highs.
We need a comprehensive strategy to solve our energy problem. I believe that this strategy must include: conservation and promotion of energy-efficiency technologies; continued development of clean renewable energy sources; and expansion of current energy capacity.
Energy conservation and energy-efficiency are an important first step. Using less energy, while maintaining high performance, will save consumers money, lessen the environmental impact and reduce pressure on supplies.
The ENERGY STAR program is a joint effort by the Department of Energy and the Environmental Protection Agency to promote energy-efficient products. In 2007, ENERGY STAR products saved consumers $16 billion on their utility bills. To further promote and expand upon this success, on May 21, 2008, the U.S. House of Representatives, with my support, passed the Renewable Energy and Job Creation Act of 2008 (HR 6049). The bill promotes conservation by extending tax credits for consumers when they purchase certain ENERGY STAR-certified appliances and products.
To further advance energy-efficiency, the Energy Independence and Security Act of 2007, which passed with my support and was signed into law by President George W. Bush on December 19th, 2007, increased the fuel efficiency standards by 40 percent for automobiles so that the fleet-wide average in 2020 will be 35 miles per gallon.
From 2001-2006, Congress invested nearly $12 billion to develop cleaner, cheaper and more reliable domestic energy sources. Thanks to this investment, great advances are being made in the development of renewable energy resources such as cellulosic ethanol, hybrid electric vehicle technologies, hydrogen fuel cell technologies, wind and solar energy, clean coal, advanced nuclear and other technologies.
To add to our investments in clean energy sources, I have strongly supported the Production Tax Credit (PTC) which provides a tax credit for electricity produced from renewable energy facilities. Sources such as wind, solar and biomass are included under the tax credit. Since its enactment in 1992, the credit has encouraged the development of thousands of megawatts of clean, renewable electric generation facilities.
In 2007, over 118 million barrels of oil were burned for the generation of electricity in the United States. If PTC sources were used for electric production instead, those 118 million barrels could have been used to address transportation demands and it would help mitigate rising costs.
Currently, about 20% of American electricity is produced by nuclear power. By contrast, France produces approximately 80% of its electricity from nuclear power. Nuclear power produces no greenhouse emissions. Plants in the U.S. are strictly regulated by the Nuclear Regulatory Commission to ensure the safest practices are followed. I have supported production tax credits, loan guarantees, and insurance against regulatory delays to encourage the construction of more nuclear power plants. We must move aggressively to produce more of our electricity from nuclear power and less from oil and other non-renewable sources.
We urgently need to reduce our dependence on oil. Congress must continue to make investments in alternative energy to promote its further development and implementation. We must have a diverse energy portfolio to sustain our economic growth. We must nurture the development of vehicles that run on natural gas, hydrogen, electricity and other alternative fuels. With innovations such as these, I believe we can move away from our dependence on foreign oil. Doing this is in our national security interest.
But we must keep in mind that alternative fuels currently cannot eliminate the need for traditional energy sources in the short run. Without additional supplies, the tight market conditions that have put pressure on prices are going to persist. Conservation and renewable resources are still long term solutions. To address our current situation, we need to increase capacity and explore for new domestic sources of oil and natural gas.
Under current law, no exploration is allowed within 125 miles of the Gulf coast of Florida. Furthermore, no exploration is allowed for 234 miles west of Tampa because of military training operations. This ban expires in 2022. I believe the people of each state should have the right to decide whether or not to permit energy exploration and production within their borders and off their coasts in an environmentally friendly way. In 2006, I supported compromise legislation that would have provided Florida with 50 miles of permanent protection from energy exploration and allowed the state the option for an additional 50 miles of protection. I will continue to support the current moratorium unless and until these conditions are written into law.
In Alaska, however, the governor, legislature and Congressional delegation all support exploration and development on 2,000 acres of the 19 million acre Arctic National Wildlife Refuge (ANWR). The U.S. Geological Survey has estimated that there are between 5.7 and 16 billion barrels of oil in these 2,000 acres of ANWR. This is the largest on-shore source of petroleum we have in the United States. This, along with oil shale from Utah and other areas currently off-limits to exploration, would significantly help reduce our dependence on foreign oil and reduce costs until alternative and renewable energy technologies mature and become economically viable.
To increase oil supplies and provide some near term relief to consumers struggling with high gasoline prices, Congress, with my support, has suspended the purchase of the 70,000 barrels/per day that were being pumped into the Strategic Petroleum Reserve. Furthermore, I have also cosponsored the Commuter Aid and Relief for Suburbs (CARS) Act of 2008 (HR 5905). The legislation would create a tax deduction for all commuters for their fuel expenses to and from work.
Rest assured that I will continue to work with my colleagues to develop a more comprehensive energy policy. I will be sure to keep your views very much in mind as Congress considers this critically important issue.
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