Washington, D.C. -- The U.S. House of Representatives voted tonight to establish a national energy policy that allows offshore drilling to reduce the amount of foreign oil America buys, and repeal Bush Administration tax subsidies for big oil companies, redirecting the funding to develop alternative and renewable energies for the country’s future.  The Comprehensive American Energy Security & Consumer Protection Act, which passed on a 236-189 vote, drew heavily from legislation drafted by a group of Republican and Democratic lawmakers assembled by Reps. Neil Abercrombie (D-HI) and John Peterson (R-PA).

“This moves us toward energy independence.  That means surrendering less control over our economic future and our national security to other countries,” said Abercrombie, a member of the House Natural Resources Committee.  “Richard Nixon first called for energy independence thirty-five years ago and since then, there has been a lot of talk, but no action.  This bill takes action.”

As gasoline prices passed $4.00 a gallon last summer and Congress continued to argue about the proper approach, Abercrombie and Peterson quietly convened a group of Republican and Democratic lawmakers to try to work out bipartisan energy legislation.  The result of that process, a bill introduced in the House in July, quickly gathered momentum, attracting nearly 150 legislative cosponsors and, ultimately, becoming the foundation for the legislation passed tonight.  

The Comprehensive American Energy Security & Consumer Protection Act:

1. Provides More Domestic Energy by:

• Lifting the 30-year moratorium on offshore oil and gas production;
• Accelerating the leasing in Alaska’s National Petroleum Reserve;
• Lifting the moratorium on mining  oil shale in the Western U.S., and
• Releasing 10% of the Strategic Petroleum Reserve to increase market supply.

2. Pays for Advancing Renewable Energy by repealing tax subsidies for big oil companies and  extending tax incentives for renewable energy set to expire, including:

• The investment tax credit for solar energy and fuel cells;
• Production tax credit for energy derived from biomass, geothermal, hydropower, landfill gas and solid waste;
• Production tax credit for energy derived from wind;
• Clean renewable energy bonds for electric cooperatives and public power;
• Incentives for the production of homegrown renewable fuels and tax credits for the purchase of fuel-efficient, plug-in hybrid vehicles; and
• Incentives for energy conservation for individual businesses and state and local governments.

3. Creates and funds a “Strategic Energy Efficiency and Renewable Reserve” to accelerate renewable energy, promote energy efficiency/conservation, increase R&D for clean energy and carbon capture and sequestration technologies, necessary for clean coal and coal-to-liquid.

4. Conserves Energy by:

• Encouraging the use of new natural gas powered vehicles;
• Doubling a tax credit for homeowners to install natural gas refueling equipment;
• Expanding financing mechanisms for service stations to install natural gas pumps;
• Pushing the Energy Department and states to require new residential and commercial buildings to improve energy efficiency by 30% by 2010, and 50 percent by 2020;
• Providing incentives to lenders and financial institutions, including the Federal Housing Administration, to provide lower interest loans and other benefits to consumers who build, buy or remodel their homes to improve their energy efficiency;
• Establishing a residential energy efficiency block grant program to improve the energy efficiency of housing;
  • Reducing transit fares for commuter rail and buses and expanding service through grants to transit agencies. 

Hawaii will be benefit through:

• Continuing tax credits to allow our residents and businesses to keep switching to solar and wind energy;
• Creating tax incentives for purchasing plug-in and natural gas cars to transform the way Hawaii uses energy, and grants for improving public transportation systems and reducing fares; and
• Providing incentives to lenders and financial institutions, including the Federal Housing Administration and the Department of Hawaiian Home Lands, to lower interest rates to consumers who build, buy or remodel their homes to improve energy efficiency.

“This legislation required compromise, so it isn’t everything I wanted, but it’s a measure I can accept,” Abercrombie said.  “This bill gives us something solid to build on.”

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