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WASHINGTON, D.C. – Congressman David Wu today voted in support of the CLEAN Energy Act (H.R. 6), legislation that would repeal approximately $13 billion in subsidies and tax breaks for big oil companies in order to invest in renewable and alternative fuels and energy efficiency. The bill passed the U.S. House by a vote of 264-123.
“We've done our homework and have found a fiscally responsible way to invest in a smarter, cleaner future and to create a more diverse energy portfolio that will contribute to our national security," said Congressman Wu. "We can and we should be sending our dollars to the Midwest rather than to the Middle East."
Under the measure, oil companies awarded drilling leases in 1998 and 1999 would have to pay their fair share in royalties, correcting an error made when the leases were drafted. When drafted, the leases failed to include price thresholds which trigger a requirement for companies to pay royalties to the Federal government when the price of oil and gas exceeds a certain level.
It also rolls back tax breaks given in the 2005 energy bill to the five largest integrated oil companies for geological studies done for oil exploration and closes a loophole that inadvertently allowed oil companies to qualify for a tax provision intended to encourage domestic manufacturing.
The revenue generated by these provisions would be redirected to a Strategic Energy Efficiency and Renewables Reserve, and later, through new legislation, invested to:
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accelerate the use of clean domestic renewable energy resources and alternative fuels;
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promote conservation and the use of energy-efficient products and practices; and
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increase research, development and deployment of clean, renewable energy and energy efficient technologies.
Work on that legislation will soon get underway by the U.S. House Committee on Science and Technology, of which Congressman Wu is a member.
“We have the technology to produce and use cleaner, renewable energy,” said Congressman Wu. “We only need to put that technology in play.”
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