WASHINGTON, D.C. – Rep. Lois Capps on Friday detailed a key legislative initiative that foregoes some of the current subsidies to oil and gas companies and channels money to companies investing in renewable energy and creating "green" jobs.

In an address to members of the Goleta Valley Chamber of Commerce, Mrs. Capps contended that promoting policies to protect the environment would help reduce U.S. dependence on foreign oil, ease pollution and create hundreds of thousands of jobs across the country, including the South and Central Coasts.

"It's high time we stopped trying to drill our way to energy independence and instead make a serious commitment to investing in renewable energy sources," said Mrs. Capps, a Democrat who represents California's 23rd District. She said the Renewable Energy and Energy Conservation Tax Act, which was approved by a vote of 236 to 182 in the House of Representatives, awaits further work on the funding end.

Mrs. Capps, who serves on the powerful Committee on Energy and Commerce, said several committees will be addressing this key issue during the next few months before Congress adjourns for the summer. "If it passes, it will be the most significant energy bill in a generation," said Mrs. Capps before a cordial audience. "It's not a 'jobs' program per se, but a way to being more energy efficient. The jobs will follow."

Many of the taxpayer-funded subsidies addressed in the bill are opposed by President Bush, who noted that the government shouldn't need to subsidize oil production when the price of oil is so high. Oil was then $50 per barrel; it is now over $100 per barrel.

The landmark legislation also contains incentives for plug-in hybrid cars and energy-efficient homes, buildings and appliances, segments of the economy where companies will need skilled engineers and technicians, and require additional funding for workforce training.

The House must also address the issue of extending the current alternative energy tax credits, which are slated to end this year. "We don't want companies to scale back current critical research and development," said Mrs. Capps, referring to firms that are working in the areas of wind and solar power and biofuel development. "This (uncertainty) affects their business decisions."

While she couldn't provide an exact number of what these future tax subsidies would amount to, Mrs. Capps said diverting "these considerable funds would be a very welcome jump-start" for companies needing to invest in growth. Two local companies standing to benefit from the extension and future tax incentives are alternative energy players Clipper Windpower in Carpinteria and REC Solar, a firm based in San Luis Obispo.

"I hope the president works with us in these lame duck months to help the American people," Mrs. Capps said.

Another area of the economy that she addressed is the 2008 Economic Stimulus Package, the bipartisan legislation that will put hundreds of dollars into the hands of 130 million American families, promote small business investment and expand financing opportunities for people in danger of losing their homes. "It's a hot topic because of all the bad news in the economy," said Mrs. Capps.

"Not taking away from the war in Iraq, but the economy is the No. 1 issue," said Mrs. Capps, talking about other proposed legislation to ease the pain of Americans struggling with mortgage debt, credit difficulties, job losses and higher food and fuel bills.

For example, she said legislators from both sides of the aisle are working to get the president to increase food stamp assistance to working families and extend unemployment benefits.

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