(Washington D.C.)- As oil and gas prices soar in Michigan and throughout the United States, U.S. Rep. Sander Levin advocated for the Energy Consumer Relief Act [H.R. 4479], which would roll back billions of dollars in tax breaks, royalty holidays and subsidies to oil and gas companies.  These subsidies were included in sweeping energy legislation approved by Congress last summer, which President Bush signed into law.  Addressing rising gas prices today, the plan President Bush outlined would save tax payers only $2 billion compared to the Democratic plan estimated to save Americans $9.3 billion dollars, both over ten years.

"At a time when energy companies are posting record profits and prices for oil, natural gas and gasoline are near all-time highs, the energy industry does not need additional taxpayers subsidies to go out and drill for oil and gas," said Rep. Levin. "Rather than give industry subsidies the energy companies themselves admit they don't need, we should use these funds to help consumers and businesses struggling to pay their energy bills."

H.R. 4479 would roll back federal subsidies to the oil and gas industries with an estimated value of $9.3 billion over ten years.  For example, the Energy Bill approved last year contained $500 million (over ten years) in royalty relief for oil and gas companies that drill in the deep waters of the Gulf of Mexico.  Critics of the royalty relief provision note that with oil prices up over $70 a barrel and natural gas prices hovering near an all-time high, energy companies don?t need additional incentives to drill in the Gulf. 

On a related note, U.S. Rep. Levin and more than 100 other Members of the House are working to force the House to take up the Democrats? anti-price gouging bill that would give the Federal Trade Commission the explicit authority to investigate price gouging and punish those who artificially inflate the price of energy.  The bill [H.R. 3936, the FREE Act, by Rep. Stupak of Michigan] would also provide for stricter criminal and civil penalties.  The lawmakers are attempting to force consideration of H.R. 3936 through discharge petition.  If half the Members of the House sign the petition, the bill would be discharged from Committee and sent to the Floor for a debate and an up-or-down vote.
The revenue saved by rolling back the unnecessary subsidies to the oil and gas industry would be used to help fund the Low-Income Home Energy Assistance Program (LIHEAP) and to provide relief from high energy costs for farmers and small businesses.

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