Rep. Roscoe Bartlett Introduces Bipartisan Bill to Provide Relief Now With Drilling, Conservation and Efficiency While Meeting Future Energy Needs With Renewable Sources of American Supplies of Energy
Bipartisan Energy Working Group Shut Out Party Leadership and Lobbyists
Washington,
Jul 31, 2008 -
"Band-aid fixes would not be fair to our children and grandchildren,” said Congressman Bartlett. “That is why I’m proud to be part of a Bipartisan Energy Working Group in the House of Representatives that today introduced truly bipartisan solutions to our energy problems that will provide immediate relief and meet future needs. There are no silver bullet solutions. The approval of this bill would demonstrate a commitment to promote conservation and efficiency now while expanding domestic oil and natural gas as well as renewable energy production from many sources in the future. That should have the immediate effect of reducing prices now caused by financial speculators. We are hopeful that Americans will rally around this bill and encourage Congressional leaders to schedule a vote on it in September.” The Bipartisan Energy Working Group is led by Congressmen John Peterson (R-PA) and Neil Abercrombie (D-HI). A summary of the bill’s provisions is attached.
Congressman Bartlett said, “Energy is the biggest challenge facing our country in the 21st Century. My constituents and most Americans are discouraged by the blame game between the Administration and party leaders in the Congress. Energy has never been a partisan issue for me. Energy shouldn’t be and it does not have to be a partisan issue in the Congress. For more than a month now, a group of about two dozen of us have worked to develop this bill. We allowed no leadership or lobbyists or special interest advocacy groups to be involved. This is legislation created by legislators to break the partisan gridlock that has prevented any significant energy legislation from being approved. This bill does not have everything each of us would want, but there is significant bipartisan support for all of these individual measures. We have combined them into a comprehensive package that addresses urgent needs and demands of the American people while preparing for a future when we must transition from finite fossil fuels to cleaner, domestic, alternative and renewable sources of energy.”
Congressman Neil Abercrombie said the bipartisan legislation crafted by the House Energy Working Group “represents the security interests of the United States.” Abercrombie said, “The people of the United States are going to be served by an energy policy that establishes our energy independence that makes certain we have investments in our country for our people.” The legislation, he says, is “member-driven” without special interests imposing their political agendas on the pursuit of U.S. energy independence.
Congressman Bartlett singled out a number of provisions that he specifically worked on or would have significant positive impacts for Marylanders:
Tax Credits for Renewable Energy and Energy Efficiency
Congressman Bartlett said, “Most people who follow Congress and energy know that I have been working for months to find a bipartisan solution to extend tax credits for renewable energy and energy efficiency. This bill offers perhaps the last chance to end the political stalemate that has strangled every previous effort during this Congress to extend these tax credits that are scheduled to expire at the end of this year. Unfortunately, uncertain and short-term tax policies in the United States since 2000 are driving investments, jobs and cleaner, renewable energy projects overseas. Republicans and Democrats agree that these tax credits are absolutely vital to expand American renewable sources of energy. This new bill meets an urgent request to Congress in a July 23 letter by all 50 Governors to extend these tax credits for five years. The language in this bill comes from H.R. 6049 already approved by the House. Most important, it addresses the continuing political disagreement and meets the demands of conservative House Democrats with offsets Senate Republicans should support by paying for the cost of extending the tax credits with new revenues from expanding U.S. domestic oil and natural gas supplies and modernizing our Strategic Petroleum Reserve (SPR).”
Promoting Conservation and Efficiency
Congressman Bartlett said, “The cheapest energy is energy that we choose not to use. That is why I am very glad the bill creates a new Conservation Reserve fund to provide support for initiatives such as weatherization and conservation tax credits, deductions for energy efficiency for residential and commercial buildings, telework, and carpooling.”
Protecting Coastal Areas and State’s Rights
Congressman Bartlett said, “Our coasts and state’s rights are protected under this bill by maintaining existing prohibitions against drilling within 25 miles off-shore. Between 25 and 50 miles, states retain the authority to opt out of drilling. Beyond 50 miles, current federal prohibitions against drilling in the Outer Continental Shelf (OCS) are lifted. The Chesapeake Bay is one of several fragile coastal areas specifically designated to receive new funding for environmental protection and restoration.”
New Federal Revenues Dedicated to Conservation, Efficiency, the Environment and Alternative and Renewable Sources of Energy
New federal revenues from royalties, leasing and other activities from drilling are conservatively estimated at $2.6 trillion. The bill dedicates:
- 30% to the General Fund of the U.S. Treasury ($780 billion)
- 30% to Producing States ($780 billion)
- 8% for the Conservation Reserve ($208 billion)
- 10% to the Environment Restoration Reserve ($206 billion)
- 15% to the Renewable Energy Reserve ($390 billion)
- 5% to the Carbon Capture/Sequestration and Nuclear Waste Reserve ($130 billion)
- 2% to the Low Income Home Energy Assistance (LIHEAP) Program ($52 Billion)
Shifting Transportation off Imported Oil to Electricity from Domestic and Renewable Sources
Congressman Bartlett said, “Transportation in America is more than 95% dependent upon oil. We import more than 70% of the oil we use – virtually the same proportion that is dedicated to transportation. Last year, Americans spent $700 billion, more than we spent on defense, to pay for imported oil. Our dependence upon oil threatens our national security, economic security, business and personal finances. We simply have to shift transportation from oil to renewable sources of electricity as soon as possible. This bill will lift the restrictions on manufacturers for tax credits for hybrids and plug-in hybrids and provide $170 million for energy storage for transportation and electric power; $15 million for wind research; $30 million for solar research; $40 million for advanced research vehicles development and $30 million for SMART grid development.”
Funding Assured for ARPA-E, Advanced Research Projects Agency – Energy
Congressman Bartlett said, “I worked with Science and Technology Committee Chairman Bart Gordon (D-TN) to create this new agency modeled after the highly successful DARPA agency, but unfortunately it hasn’t been funded yet by the Administration. Like DARPA, ARPA-E will hire talented program managers for only a short time and give them flexibility and authority to provide cost-sharing so that entrepreneurs and scientists can move new inventions that work from their labs into the marketplace to meet urgent needs of government and other customers. What DARPA did with the Internet and other break-throughs, I believe that ARPA-E can do for disruptive technological innovations in energy.”
$100,000,000 is dedicated to the account ‘‘Energy Transformation Acceleration Fund’’, established under 24 section 5012(m) of the America COMPETES Act (42 U.S.C. 16538(m)), to remain available until expended. $50,000,000 shall be available for university-based research projects and $10,000,000 shall be available for program direction expenses.
Clean Coal
Congressman Bartlett said, “Western Maryland is a coal-producing region and coal is the source for most of Marylanders electricity now and for the next decades. This bill creates a secure and predictable source of revenues to advance technologies for cleaner coal as well as carbon capture and sequestration to reduce greenhouse gas emissions that are contributing to global warming.”
Expanding Nuclear Power
Congressman Bartlett said, “America’s nuclear power industry has an unmatched record of safety compared to other conventional sources of energy. That is one reason why I have been a strong advocate of expanding nuclear power as an important component of a comprehensive national energy strategy for a more secure energy future.”
Protecting the Poor from the Crushing Burden of High Energy Costs
Congressman Bartlett said, “The blow of higher heating prices during the winter will be cushioned by up to $52 billion to help our poor pay for heat under the Low Income Home Energy Assistance (LIHEAP) program."
NATIONAL CONSERVATION, ENVIRONMENT AND ENERGY INDEPENDENCE ACT
Summary
Title I- Offshore and Onshore Leasing and Other Energy Provisions.
Repeals all federal prohibitions (moratoria) and Presidential withdrawals against the expenditure of appropriated funds to conduct leasing activities on federal lands.
Repeals the 125 mile moratorium on gas and oil production in the Eastern Gulf of Mexico.
Repeals the Appropriations’ prohibitions on the development of oil shale.
Allows the use of woody biomass from federal lands for the production of renewable energy.
Repeals prohibitions preventing federal agencies from entering into contracts for procurement of an alternative or synthetic fuel.
Repeals the limitation on the number of new qualified hybrid and advanced lean burn technology vehicles eligible for the alternative vehicle tax credit.
Moratoria and State Approval: Prohibits leasing and leasing activities within 25 miles of the coastline of a State and allows coastal states to opt-out of production from 25 to 50 miles offshore within one year of passage of the act.
Military Operations: Requires the Secretary of the Interior to coordinate leasing activities with the Secretary of Defense and requires any unresolved issues to be referred in a timely manner to the President for immediate resolution.
Revenue Distribution of Royalties and Other Revenues Received (estimated value $2.6 Trillion) from Leasing of Offshore Lands Opened by the Act:
- 30% to the General Fund of the U.S. Treasury ($780 billion)
- 30% to Producing States ($780 billion)
- 8% for the Conservation Reserve ($208 billion)
- 10% to the Environment Restoration Reserve ($206 billion)
- 15% to the Renewable Energy Reserve ($390 billion)
- 5% to the Carbon Capture/Sequestration and Nuclear Waste Reserve ($130 billion)
- 2% to the Low Income Home Energy Assistance (LIHEAP) Program ($52 Billion)
The Conservation Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Energy Independence Act for conservation programs, such as weatherization, and conservation tax credits and deductions for energy efficiency in the residential, commercial, industrial and public sectors to include Conservation Districts.
The Environment Restoration Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Energy Independence Act to conduct restoration activities to improve the overall health of the ecosystems primarily or entirely within our wildlife refuges, national parks, lakes, bays , rivers and streams with emphases on the Great Lakes, the Chesapeake, Delaware and San Francisco Bay/Sacramento San-Joaquin Bay Delta, the Florida Everglades, New York Harbor, Colorado River Basin and Intracoastal Waterways and adjoining inlets.
The Renewable Energy Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Independence Act to accelerate the use of cleaner domestic energy resources and alternative fuels; to promote the utilization of energy-efficient products and practices; and to increase research, development, job training programs and deployment of clean renewable energy and efficiency technologies.
The Carbon Capture and Sequestration Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Energy Independence Act to promote research and development projects associated with carbon capture and storage in the production of liquid transportation fuels, electricity, synthetic natural gas and chemical feedstock and for the disposition and recycling/reprocessing of nuclear waste from nuclear power plants.
Buying and Building American- Expresses the intent of Congress that the Act will result in a healthy and growing American industrial, manufacturing, transportation and service sector employing American workers. Includes language to ensure that American workers are given first consideration for jobs arising from new offshore production.
Title II- Cleaner Energy Production and energy Conservation Incentives. Amends the Internal Revenue Code of 1986 to provide tax extensions and tax deductions of 5 years or greater for:
- Production of renewable energy and energy conservation, including facilities,
- Alternative fuel vehicles
- Vehicle refueling property
- Energy efficient appliances
- Nonbusiness energy property
- Residential energy efficient property
- New energy efficient home credit
- Energy efficient commercial buildings
- Solar energy/fuel cell and microturbine properties
- Clean renewable energy bonds
- Biodiesel and renewable diesel
- Plug in hybrid cars.
Title III- Strategic Petroleum Reserve (SPR) Modification and Dedication of Revenues to existing Conservation and Energy Research Programs. Modifies the Strategic Petroleum Reserve to today’s refining capabilities by exchanging 10% (70 million barrels) of the reserve’s content and dedicates funds received from the exchange of supply and existing SPR funds ($1.4 billion estimated) to existing conservation, energy research/development and energy assistance programs. Specifically ($1.28 billion):
Advanced Research Projects- $100 million.
Wind Energy research- $15 million.
Solar Energy Research- $30 million.
Low Income Weatherization- $100 million.
Low Income Home Energy Assistance Program (LIHEAP)- $100 million.
Marine and Hydrokinetic Renewable Energy- $30 million.
Advanced Research Vehicles Development- $40 million.
Industrial Energy Efficiency R&D- $110 million.
Building/Lighting Energy Efficiency R&D- $70 million.
Geothermal Energy Development- $30 million.
Smart Grid Technology Development- $30 million.
Carbon Capture and Storage- $385 million.
Nonconventional Natural Gas Production and Environmental Research- $65 million.
Hydrogen Research and Development- $5 million.
Energy Storage for Transportation and Electric Power- $170 million.
