HOUSE Republican Leader John Boehner

Oil Price Volatility Makes the Case for GOP’s All of the Above Energy Strategy

Today’s New York Times ran a front page story, “Volatile Swings in Price of Oil Stir Fears on Recovery,” which noted that “oil has risen 55 percent since the beginning of the year, to $70 a barrel, pushing gas prices up again to $2.60 a gallon.”  The Times story also stated that:

The instability of oil and gas prices is puzzling government officials and policy analysts, who fear it could jeopardize a global recovery.  It is also hobbling businesses and consumers, who are already facing the effects of a stinging recession, as they try in vain to guess where prices will be a year from now - or even next month.

Speaker Pelosi and her allies in Congress apparently believe that the answer to rising gas prices is to impose a new national energy tax that would punish Americans who dare to flip on a light switch or drive a car.  The Democrats’ energy tax would not only restrict the use of environmentally-safe offshore drilling, but would “permanently close some domestic refineries, which could permanently raise the price of gasoline,” as the New Hampshire Union-Leader noted in an editorial published today.

During the debate over Speaker Pelosi’s national energy tax in the House, House Republican Leader John Boehner (R-OH) asked: “Do we need to have a national energy tax on every person in America who would drive a car, who would flip on a light switch or who would buy an American-made product?”  Leader Boehner continued: “if our goals are to clean up the air, to build an alternative energy business in the United States, a thriving one, and to create jobs, there’s a better way to do this, and it’s the all of the above strategy that we’ve been talking about in this Chamber for nearly a year.”

The House Republicans’ all of the above energy strategy includes four main goals:

• Increase production of American-made energy in an environmentally-sound manner.
• Promote new, clean and renewable sources of energy such as nuclear, clean-coal-technology, wind and solar energy.
• Encourage greater efficiency and conservation by extending tax incentives for energy efficiency and rewarding development of greater conservation techniques and new energy sources.
• Cut red-tape and reduce frivolous litigation.

The House Republicans’ all of the above strategy would put America on the path towards real energy independence, create good paying jobs at home instead of shipping them overseas, and would leave our children and grandchildren with a cleaner environment.  The American people don’t want a national energy tax - they want energy independence.  The House Republican plan is the comprehensive energy solution that this country desperately needs.

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Speaker Pelosi Will Bring Job-Killing National Energy Tax to the Floor this Week

Speaker Pelosi is barreling ahead with her national energy tax by bringing the bill to the floor of the House of Representatives by the end of the week, The Hill reported this morning.  The Democrats’ energy tax will strike a blow to American families and small businesses, costing jobs and raising taxes in the midst of a deep economic recession.  House Republican Leader John Boehner (R-OH) wrote in an op-ed in today’s Washington Examiner that: “under the guise of reducing carbon emissions, Democrats are poised to force anyone who drives a car, buys an American-made product, or flips on a light switch to pay a national energy tax.”

Even President Obama has admitted that the Democrats’ energy tax will cost the middle class jobs, when he stated in an interview with the San Francisco Chronicle during the campaign that: “Under my plan of a cap and trade system electricity rates would necessarily skyrocket.”  The Heritage Foundation’s Center for Data Analysis found that under the Democrats’ national energy tax: “by 2035 gasoline prices would increase 58 percent, natural gas prices would increase 55 percent, home heating oil would increase 56 percent, and worst of all, electricity prices would jump 90 percent.”

Speaker Pelosi is trying to sell her new energy tax on the grounds that it will reduce carbon emissions - but the only thing it will reduce is the amount of jobs created here in America.

Americans need to look no further than to Europe to see the effects that implementing a national energy tax has on job creation: “According to GAO, observers have said that the first ETS [Emissions Trading Scheme] phase, which ended in 2007, did not decrease emissions, imposed high costs on both consumers and industry, and may have decreased the international competitiveness of European industries.” (Source: Republican Staff, Oversight and Government Reform Committee)  Even with their energy tax, European carbon emissions still grew by 4.9 percent from 2000 to 2006.

Liberals seem fine with promoting policies that result in an inverse relationship between job creation and protecting the environment.  Certainly, their disastrous “cap and trade” proposal would result in millions of Americans losing their jobs.  One estimate, by Heritage Foundation scholar David Kreutzer, puts the number at three million jobs lost in the manufacturing sector alone by 2029. 

House Republicans don’t buy the notion that we cannot protect the environment and create jobs here in America at the same time.  The House Republicans have introduced the American Energy Act, which will increase production of American-made energy in an environmentally-sound manner; promote new, clean and renewable sources of energy such as nuclear, clean-coal-technology, wind and solar energy; encourage greater efficiency and conservation by extending tax incentives for energy efficiency and rewarding development of greater conservation techniques and new energy sources; and, cut red-tape and reduce frivolous litigation.

If Democrats believe that the American people will support imposing a new tax on the middle class, they are sorely mistaken.  House Republicans are opposed to new taxes on job creation, and will continue to propose better solutions to the Democrats “tax, spend, and borrow” agenda.

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House Republicans Introduce the American Energy Act

Today, House Republicans introduced the American Energy Act, legislation designed to clean up the environment, lower energy costs, and create more American jobs.  It was developed by the American Energy Solutions Group, chaired by House Republican Conference Chairman Mike Pence (R-IN) and has four main objectives:

• Increase production of American-made energy in an environmentally-sound manner.
• Promote new, clean and renewable sources of energy such as nuclear, clean-coal-technology, wind and solar energy.
• Encourage greater efficiency and conservation by extending tax incentives for energy efficiency and rewarding development of greater conservation techniques and new energy sources.
• Cut red-tape and reduce frivolous litigation.

The American Energy Act would directly address a growing concern for American families: rising gas prices.  The New York Times reported on Monday that: “Gas prices have risen 41 days in a row, to a national average of almost $2.62 a gallon. That is a sharp increase from the low of $1.62 a gallon that prevailed at the end of last year.”  In fact, the Times notes that: “the price of gasoline is actually lagging behind the increase in the price of oil.”  Today, the price of crude oil hit nearly $72 barrel, and is likely to only increase in the coming months with the traditional spike in summer travel.

The following chart from the Wall Street Journal shows just how rapidly the price of oil has increased in the last three months:

While Democrats in Washington propose a new national energy tax that would punish Americans for flipping on a light switch or driving a car, the House Republicans’ American Energy Act is an “all of the above” energy solution that increases domestic supply of energy by lifting restrictions on ANWR, the Outer Continental Shelf, and oil shale in the Mountain West; creates a Renewable and Alternative Energy Trust Fund; and establishes a national goal to bring 100 new nuclear reactors online over the next 20 years to strengthen America’s commitment to clean, reliable energy.

In short, it’s a job creator that helps to achieve true energy independence without raising taxes or burdening American families with ever higher gas and electric bills.  To read more about House Republicans’ American Energy Act, go to GOP.gov/energy.

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New Auto Mandates Will Increase Cost of New Cars to Consumers and Manufacturers, Ship More American Jobs Overseas

The President will announce this morning a “a single new national standard that will create a car and light truck fleet in the United States that is almost 40 percent cleaner and more fuel-efficient by 2016 than it is today,” as The New York Times reports.  But economists have long said that “there’s no such thing as a free lunch” - and by speeding up the implementation of new fuel-economy standards, his plan will hit consumers and automakers when both can least afford it. 

While increasing fuel economy standards is an admirable goal, there are notable side effects of the President’s decision, including burdening new car buyers with additional costs and hampering car companies with more regulations that could cost more American jobs.

The Washington Post reported that the President’s plan will increase the cost of an average car by $1,300; and The Wall Street Journal noted that: “The Transportation Department last year estimated that requiring auto makers to achieve 31.6 mpg by 2015 would cost the industry $46.7 billion, among the most expensive rule makings in U.S. history.”

The Journal story also quoted Dave McCurdy, president of the Alliance of Automobile Manufacturers, who said: “‘Unless there’s a huge spike in the price of gasoline…there will have to be incentives from the government’ to encourage consumers to buy advanced-technology vehicles at prices that will return a profit to manufacturers.”

Moreover, President Obama is merely speeding up hikes in fuel-economy standards - by four years - that were already passed by Congress in 2007, as Bloomberg News noted.  The urgency of the President’s decision may have more to do with political considerations than sound science, as The New York Times reported this morning: 

One ranking industry official said that the administration wanted to get the new mileage rules in place before General Motors made a decision on a bankruptcy filing, which could happen by the end of this month. The new rules also provide some certainty for Chrysler, which is already under bankruptcy protection, so that it can plan its future models.

Myron Ebell, an energy expert with the Competitive Enterprise Institute, said of the President’s proposal: “We think these new mandatory fuel standards are most unfortunate…They will price people out of larger vehicles and force them into smaller vehicles.”

That’s exactly right.  The President’s plan will increase costs for American consumers who want to buy a new car and impose additional burdens to an already struggling auto industry that could result in more jobs being shipped overseas.  The result?  Consumers get less choice, higher prices and fewer Americans jobs.

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There’s a lot to Celebrate this Earth Day

Today is Earth Day.  Perhaps then, it’s fitting to take stock of how we, as a nation, have protected our environment since the first Earth Day was celebrated nearly forty years ago.  Contrary to what many on the left would have you believe, the last forty years has seen a remarkable decline in nearly all forms of pollution in the United States.  The Manhattan Institute recently released a report, “Energy & the Environment: Myths & Facts” which highlighted the progress we’ve seen in air quality since 1970:

According to the Environmental Protection Agency, the six most common air pollutants have decreased by more than 50%; air toxins from large industrial sources have fallen nearly 70%; new cars are more than 90% cleaner, in terms of their emissions; and production of most ozone-depleting chemicals has ceased.  These reductions have occurred despite the fact that during the same period, gross domestic product tripled, energy consumption increased 50%, and motor vehicle use increased almost 200%.

Americans are recycling more than ever before.  In fact, according to a Rasmussen Reports poll published yesterday, “Seventy percent (70%) of Americans say their families participate in recycling.”

These are real improvements that all Americans can take pride in.  They also demonstrate that protecting the environment and promoting economic growth do not have to be mutually exclusive goals.  On the contrary, the last forty years have seen an explosion of economic growth and prosperity unparalleled in American history, as the following chart from the “Index of Leading Environmental Indicators 2009” shows:

House Republicans stand for a cleaner, healthier environment, as House Republican Leader John Boehner (R-OH) stated today:

Republicans are committed to working with the Administration and congressional Democrats to advance policies that promote clean air, clean water, and a healthy environment.  Led by Rep. Mike Pence and his American Energy Solutions Group, House Republicans support an ‘all of the above’ strategy that will promote clean alternative technologies, encourage conservation, and increase environmentally-safe production of American energy.  This strategy not only will lower energy costs and create good-paying jobs, it also will pave the way for a cleaner, healthier environment for our children and grandchildren.

To that end, House Republicans have included in their budget alternative an “all of the above” energy strategy designed to increase production of American energy in an environmentally safe manner, promote more conservation and efficiency, and encourage the use of more alternative and renewable fuels.  The Republican strategy utilizes all of our natural resources - wind, solar, natural gas, and environmentally responsible American energy production to create American jobs and help spur economic growth. 

This Earth Day, Americans can take pride in the gains we’ve made in securing a more pristine environment for our kids and grandkids.

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White House Policy Reversal on Auto Standards Will Cost Jobs

On a day the Big Three automakers acknowledged the closure of nearly 1,000 car dealerships last year and that GM will cut 2,000 jobs in Michigan and Ohio, President Obama pushed forward with a plan which will allow California to exceed already strict Federal automobile emissions regulations and will certainly pave the way for other states to follow suit.  The result can only place additional burdens on the struggling American auto industry, which may now be forced to comply with a patchwork of conflicting and costly environmental standards that have less to do with protecting the environment than in securing the accolades of radical environmentalists.

Republican Leader John Boehner (R-OH) issued a statement:

The President’s action today is disappointing.  The effect of this policy will be to destroy American jobs at the very time government leaders should be working together to protect and create them.  Millions of American jobs will be placed in further jeopardy if automakers are forced to spend billions to comply with potentially dozens of different emissions standards in dozens of different states.

Rather than saving the American automobile industry, as the President claims, his policies will hamper the recovery of the Big Three.  Henry Payne at National Review Online notes that:

Detroit automakers estimate that meeting California’s edict would cost them $30.5 billion alone. With Detroit now on the federal dole, this expense will likely form the basis of further federal subsidies. For even though GM can only return to profitability (and repay its federal loans) by selling high-volume, gas-fueled vehicles like the Chevy Malibu and Chevy Tahoe, it will have to make more money-losing, electric plug-ins like the Chevy Volt (anticipated EPA rating of 100 mpg when it comes to market in 2010) to meet Golden State rules.

President Obama has vowed to govern from the center and put the interests of the country above the interests of narrow special-interest groups.  It’s still early in his presidency, obviously.  And as Leader Boehner has noted, Washington is a difficult town, and it won’t always be easy for the President to do this.  But it’s disappointing that in his first week in office, the President has taken at least two significant actions (the other being his reversal Friday of the Mexico City Policy, forcing taxpayers to pay for overseas abortions) that are out of step with the priorities of most Americans.

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