Statement of The Honorable Jerry Weller, a Representative in Congress from the State of Illinois

Testimony Before the Subcommittee on Select Revenue Measures
of the House Committee on Ways and Means

April 24, 2007

Thank you Mr. Chairman for allowing me to testify on what I feel is one of the most important issues facing our Nation.

As we look for ways to become a more energy independent nation, I believe we should continue down the path that we laid in the Energy Policy Act of 2005.  With the Energy Policy Act of 2005, we took steps forward in reducing our dependence on foreign oil by creating policy that increased the use of renewable energy in tandem with increasing our domestic production and increasing energy efficiency and conservation.

Mr. Chairman, as I mentioned last week at the hearing many of the tax incentives included in the energy bill have produced real results in my district back home. 

Due to the Energy Bill, we have seen over $100 million invested in wind energy and 4 to 5 new ethanol and biodiesel plants in my district.  Stepan Company, a biodiesel producer located in Joliet, Illinois, doubled its production of biodiesel fuel because of the changes made in the energy bill.  Transco Products Inc., a small manufacturing facility that provides services for many of our energy providers, has tripled the number of people they employ since passage of the Energy Bill. Even last week, I was at the ground breaking of a new biodiesel facility in Seneca, Illinois that will produce roughly 30 new permanent jobs and approximately 60 million gallons of biodiesel. 

In total, we saw investment in renewable energy double in the United States to $68 billion dollars.  It is this investment we need to continue to fuel.  The tax incentives we passed are spurring investment and in turn aiding us towards the goal of energy independence.  

As Congressman McDermott mentioned in his testimony, together we introduced H.R. 1385, the EXTEND the Energy Efficiency Incentives Act of 2007.  With the support of a broad business coalition, from the utilities to builders and manufacturers, this measure continues on what we started in the energy bill with tax incentives for residential and commercial energy efficiency.

Among its provisions the bill extends both the tax credit for energy efficient residential new home and equipment and the tax deduction for energy efficient buildings to 2010 and 2011.  Often overlooked, energy efficiency is a great tool that we can use to achieve energy independence.  By increasing efficiency, we can reduce energy demand and also reduce carbon emissions.

Mr. Chairman, in closing, I want to also touch upon another bill I introduced earlier this year. 

H.R. 765 establishes a new tax credit for consumers who purchase a new concept vehicle, which a U.S. auto manufacturer has introduced, that combines hybrid and flexible fuel technologies that will be available to consumers in the near future.  With a maximum credit amount of $3,500 dollars, it is this marriage of these technologies that will create a vehicle that will be better steward to our environment and will further reduce our dependence on foreign sources of oil. 

If just 5 percent of the U.S. vehicle fleet were powered by hybrids operating on E85 ethanol, oil imports could be reduced by about 140 million barrels a year.  In addition, these vehicles will produce about 25% less carbon dioxide.  In providing this tax credit, we can promote a greater sense of innovation for the future of automobiles.

Mr. Chairman, I want to thank you again for letting me testify he today and I look forward to working with everyone on the Committee as we look for solutions to the energy crisis we as a Nation are facing.