At gas stations throughout Minnesota, the danger of our addiction to foreign oil is becoming painfully clear. The rising cost of oil is driving up the price of everything from food to heating bills – and family budgets are being strained under the weight of skyrocketing prices at the pump.
It troubles all of us that crude oil prices have doubled in the past year and more than quadrupled since 2003. As Chairman and now Ranking Member of the Permanent Subcommittee on Investigations, I have worked with Senator Carl Levin, to investigate price spikes and other irregularities in the oil and natural gas markets and held hearings, including a 2005 field hearing in St. Paul exposing the impact of high natural gas prices on American consumers.
Our oversight efforts have also focused on how speculative trading on unregulated commodities markets could lead to rising oil and gasoline prices. We examined problems, like the “Enron Loophole,” and fought for solutions to fix those issues. From my seat on the Senate Agriculture Committee, I coauthored bipartisan legislation to close the Enron Loophole and secure the inclusion of this legislation in the Farm Bill that was recently passed into law. This reform will help prevent market manipulation that could drive prices up. In short, our bipartisan efforts have exposed wrong-doing, improved market transparency, and pressured the Commodity Futures Trading Commission to more aggressively police the markets.
While there is no single solution that will immediately lower gas prices, we must take bold action to pursue America’s domestic resources and to diversify our energy portfolio in order to address our energy security crisis in the near term. To put us on this path, I have introduced a comprehensive energy bill to authorize production of oil and gas in certain federal waters, expand nuclear energy capacity, fund renewable fuels, and accelerate the production of coal-to-liquid technology. There are experts that estimate the Outer Continental Shelf (OCS) could produce about 18 billion barrels of crude oil and 12 trillion cubic feet of natural gas, and it is already proven that we can responsibly tap into this resource in a way that protects the environment.
Another big part of the solution is offering short-term relief to families being pummeled at the gas pump. This is why I would support temporarily suspending the 18.4-cents-per-gallon federal gas tax for the summer driving season. While this is by no means a perfect measure, it would put valuable dollars back into the pockets of hardworking Minnesotans during these difficult times, leaving more money for food and other expenses.
I am also pleased to report that I asked the IRS Commissioner to consider increasing the 2008 standard mileage deduction rates to help folks cope with soaring gas prices – and the IRS agreed. As of July 1, the business deduction will jump to 58.5 cents from 50.5 cents.
Much more importantly, we need real, long-term solutions to put America on the path to energy independence. Since arriving in the Senate, I’ve made that effort a top priority, and while it may be difficult to look to tomorrow when prices are high today, we have taken – and are continuing to take – some very important steps for the future.
At the end of last year, I worked to pass an energy bill that will dramatically increase our use of renewable fuels by increasing the current requirement of 7.5 billion gallons per year to 36 billion gallons by 2022. Additionally, we’ve increased fuel economy standards for the first time in decades, which will lower the amount of oil used by our vehicles.
Additionally, the recently passed farm bill includes over $1 billion for a number of critical investments in renewable energy technology, including incentives for the next phase of our renewable energy revolution: cellulosic ethanol. Cellulosic ethanol is made from sources such as grasses, plant stalks and woodchips, which will drastically expand the amount of renewable energy we can produce at home while also eliminating the balancing act that can exist between food and fuel.
With the budgets of working families being squeezed by $4 per gallon gas, the American people expect Congress to enact real long-term solutions to end our nation's dependence on foreign oil. I remain committed to working in a bipartisan way to put political grandstanding aside and ensure the viability of our energy future.
COLEMAN ENERGY ACCOMPLISHMENTS
•Co-Author of first U.S. Renewable Fuels Standard to vastly expand ethanol production and use
•Expanded small ethanol producer tax credit to cover Minnesota plants
•Biodiesel Tax Credit extension through 2008
•Leading advocate for sugar ethanol program
•Eliminated highway tax penalty on ethanol-producing states
•Wind energy tax credit extensions through 2008
•Cut through red tape to enable 3 wind energy projects to proceed in Greater MN in 2006
•Secured loan guarantees and tax incentives for clean coal power
COLEMAN PROVISIONS IN 2007 SENATE ENERGY BILL
•Oil Savings: Reduces U.S. oil consumption by 2.5 million barrels per day by 2016 (the amount currently imported from the Middle East) and reduce our dependence on foreign oil by 35% by 2030.
•CAFÉ Standards: Raises average fuel economy standards for cars and SUVs and light trucks about 40% from 25 to 35 mpg.
•Biofuels Standard: Increases Renewable Fuels Standard passed in 2005 to 15 billion gallons in 2015 and 36 billion gallons of biofuels by 2022.
•Technology & Environment: Provides incentives to reduce oil consumption and the threat of climate change through new technology through more efficient vehicles, conservation, nuclear, wind, hydroelectric, biosequestration, fuel cells and other innovations.
•Additional Provisions: Establishes E-85 infrastructure grant program to expand availability of renewable fuels nationwide and increase flex fuel vehicles to 80% of fleet manufactured in 2015.
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