U.S. REP. JIM MCGOVERN URGES PRESIDENT BUSH TO CHANGE COURSE ON ENERGY POLICYRecommendations include short-term, long-term solutions Contact: Michael Mershon October 19, 2005 U.S. Representative Jim McGovern (D-MA) today urged President Bush to change course on the nation's energy policy. In a letter to the President, Rep. McGovern proposed both short-term and long-term potential solutions that would address the skyrocketing prices of gasoline and home-heating fuels, target assistance to the consumers who need it most, and reduce our dependence on foreign oil. "Mr. President, our nation's energy crisis did not develop overnight, and it is not rooted in one simple cause," Rep. McGovern said in the letter. "Rather, the foundation was laid years ago, and tragically, we have continued along this dangerous course for some time. As a result, we need to address this issue from multiple angles, working together across party lines to protect the interests of our communities and working families."
Congressman McGovern's Letter to President Bush: October 19, 2005 President George W. Bush Dear Mr. President: I am writing to express my grave and growing concerns regarding your Administration's energy policy. For years, there have been clear signs that a national energy crisis was looming. As the country's demand for energy continued to grow at alarming rates, we remained far too dependent upon a limited supply of oil. This has left our country at the mercy of an unstable global market. The recent hurricanes, Katrina and Rita, have further exacerbated an already strained system and have exposed the problems created by the Administrations failure to formulate a comprehensive national energy policy. Predictably, the energy bill you signed into law in August does nothing to lower energy prices for consumers, and it fails to decrease our dependency on foreign oil. Instead, it provides tax breaks and subsidies to oil and gas companies that are already enjoying record profits. Months have passed since you signed the energy bill, and we still find ourselves facing escalating oil and gas prices. The cost of filing a tank of gas ranges between $40 and $100, placing dramatic demands on the wallets of our working families. As the winter months near, this problem will only expand, and Americans will be left facing increasing heating costs, with no end in sight. Yet, the Administration's response remains the same - more proposed tax breaks for the industry, included in yet another Republican-crafted energy bill, at the expense of hard-working Americans. I recognize that there is no simple solution to this energy crisis. However, it is critical that we move toward a more comprehensive and strategic approach with both short-term and long term solutions - an approach that fully embraces renewable sources of energy. In the short-term, we must address the impact the recent disasters will have on heating and air conditioning prices across the country in the coming winter and following summer. Since 2001, home heating oil costs have nearly tripled, and natural gas costs have more than doubled, nearing crisis levels for many homeowners. It is widely expected that this problem will only get worse, leaving many Americans facing increasing heating costs. It is for these reasons that I support the repeal of existing tax breaks for the oil and gas industry contained in the recently passed energy bill, which are expected to reach $10.7 billion by 2009. At a time when profit earnings for the oil industry are expected to jump 73% next quarter, those incentives could instead provide immediate relief to those hardest hit by recent price spikes. Such funding could be used to expand the subsidy for public transit and ride sharing programs while also doubling the tax credit available to consumers purchasing more fuel efficient cars. There is also an overwhelming need for investments in safety net programs. This includes providing additional funding for the Low Income Home Energy Assistance Program (LIHEAP), which helps low-income households meet their home energy needs. Shifting just $2 billion of industry tax breaks toward this program could help 4 million additional families this winter. In light of the success of LIHEAP, I also support the development of a similar gasoline assistance program. We also need to ensure that energy is accessible and affordable. Years ago, Congress established a system, the Strategic Petroleum Reserve (SPR), for that specific purpose, and during previous times of severe oil and gasoline shortages, the SPR helped to reduce economic hardship. Research has shown that if additional oil from the SPR was released into the market today, we would likely see a similar drop in prices. In the long term, the United States must discontinue its reliance on foreign oil. Essential to this is the diversification of our energy sources and an investment in renewable energy. On the state and local levels, there has been a move toward exploring the potential of renewable energy, and Massachusetts, in particular, has been among those states taking the critical first steps in this direction. In my congressional district alone, there are companies leading the way in the areas of wind, solar and fuel cell technologies. These developments are certainly promising, but without a significant federal investment in renewable energy, we will never recognize its full potential. Raising the corporate average fuel economy (CAFE) standard would be another effective tool to provide significant savings to American drivers. The technology exists today to make all vehicles average 40 miles/gallon fleet-wide within ten years. By providing such increases in the CAFE standard, the average driver would save $2,200 at the pump over the lifetime of their vehicle, and the United States would save more oil than we currently import. Finally, we must establish a system to protect Americans from future spikes in gasoline and oil prices. This includes developing a protocol for capping prices during times of high costs and crisis such as this. We also need the Department of Justice to begin the process of investigating price gouging and provide the Federal Trade Commission with the necessary authority to prevent any future manipulation of the American consumer. Mr. President, our nation's energy crisis did not develop overnight, and it is not rooted in one simple cause. Rather, the foundation was laid years ago, and tragically, we have continued along this dangerous course for some time. As a result, we need to address this issue from multiple angles, working together across party lines to protect the interests of our communities and working families. This matter is of great importance to me, and I look forward to working with
you in this regard. Please let me extend to you my appreciation for your
immediate attention to this matter. James P. McGovern
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United States House of Representatives. |