(Washington D.C.)- U.S. Rep. Sander Levin (D-Royal Oak) made the following statement in support of the CLEAN Energy Act:

I rise in strong support of the legislation before the House, the CLEAN Energy Act of 2007. 

It's time for Congress to face the facts and begin to break our nation's dangerous addiction to oil.  The industry tax breaks and royalty holidays that we seek to eliminate today no doubt serve the interests of the big oil companies, but they do not serve the interests of our nation's long-term energy security, or, for that matter, the interests of taxpayers, consumers and the environment. 

We import more than 60 percent of the oil we consume every day in this country.  We are increasingly dependent on oil imports from volatile regions of the world and from countries that are not necessarily our friends.  If we do nothing, our dependence on imported oil will only grow.  Some will say that the answer is to provide more subsidies and tax breaks to encourage oil drilling in the United States.  Well, we've tried that, and it hasn't worked.  We're more dependent on foreign oil than ever.  All the industry subsidies in the world won't change the fact that the U.S. has just 3 percent of the global oil reserves.  We can't drill our way out of this problem.

Rather than continue business as usual, today we are beginning to chart a new course to energy security.  The legislation before the House repeals $13 billion in egregious tax subsidies and royalty holidays that have been given to the oil companies in recent years.  Instead, we will invest these funds in clean, renewable energy that is made here in the United States, including solar, wind, biomass, and biofuels.  We will also invest in new energy technologies and develop policies to stimulate investment and deployment of energy efficient products and services.  Investing in alternative fuels and new energy technologies is also an investment in jobs here in America.

I want to make it clear that this legislation eliminates only the most egregious energy industry subsidies.  First of all, we target the flawed deepwater oil and gas leases that were awarded in 1998 and 1999.  Contrary to longstanding practice, these leases did not provide for royalty payments -  no matter how high oil prices rise.  In this legislation, we require that these leases be renegotiated.  The American people deserve a fair royalty for publicly-owned resources. 

I also want to respond to some of the statements made today by opponents of this legislation.  Some have suggested that our legislation unfairly singles out the oil and gas industry by repealing their ability to take advantage of a tax provision intended to encourage domestic manufacturing.  This is not the case.  Many of my colleagues will recall that several years ago our trading partners in the European Union successfully challenged a tax benefit that the federal government provided to U.S. exporters.  Let's be clear that the oil and gas industry did not qualify for the old FSC-ETI tax benefit, and neither did any number of other U.S. industries, including financial services, hospitals, and real estate, to name only a few.  When Congress repealed the FSC-ETI in 2004, we provided a replacement benefit to U.S. exporters in the form of tax benefit for domestic manufacturers.  But for some reason, this manufacturing tax break was extended to include the oil and gas industry, even though they were never eligible for the old FSC-ETI benefit.  If there is a problem with unfairly singling out an industry, it is not in the bill before the House today.  The problem lies in the loophole in the 2004 bill that singled out the oil and gas industry to receive a domestic manufacturing benefit that was not justified. 

I hope this clears up this matter and that all my colleagues will join me in voting for this important legislation.

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