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Senate Democrats Making America
Energy Independent by 2020
Make America more secure
Improve energy and national security. Independence from foreign oil sources would save money and protect America. According to analysts, up to $50 billion in taxpayer money is being spent each year to protect the flow of oil from the Persian Gulf. Better management of our strategic reserves of crude oil (and gasoline, jet fuel, diesel and heating oil) would reduce the impact of oil supply disruptions.Send less money out of the country. Just in 2005, America will have sent more than $200 billion overseas to oil-producing nations to pay for petroleum products, including crude oil. Over the last five years, an average of $137 billion per year went to those countries. Investing that money here at home would have a huge impact on our balance of trade, the economy, and job creation.
Create new jobs and economic growth
Create a new energy industry, exports and jobs. An Apollo Project-like initiative to invest federal research and development dollars in advanced energy technology would create millions of new highly skilled, well-paid jobs. Improving energy science and technology education and training would make America the leader in energy efficient product manufacturing and exporting. Aggressive federal leadership in procuring very efficient and advanced alternative fuel vehicles and green buildings and products would help American companies innovate.Develop a vibrant domestic biofuels and alternative fuels industry. A vibrant domestic biofuels and alternative fuels industry would create thousands of new jobs and stimulate investment in homegrown technologies. Greatly enhanced ethanol, biodiesel, and other biofuels production would help power vehicles, improve the economy in agricultural states, reduce the amount of solid waste, and decrease federal farm program costs. The small renewable fuel standard in law now will generate more than 200,000 jobs and displace more than $10 billion worth of crude oil. Improvements in infrastructure and electricity options and standards would encourage much greater use of alternative fuel and hybrid vehicles.
Make energy more affordable for residential and manufacturing use. A national commitment to efficiency, renewably-generated electricity, and a massive investment in advanced energy technology would reduce consumers' electricity and fuel bills by more than $60 billion per year in 2020. Extending energy efficiency and renewable incentives would lower the demand for natural gas and free up natural gas for other uses. Increasing weatherization assistance would save consumers more than one-fifth of their heating costs and save thousands of barrels of oil per day. Fuel-efficiency standards for tires would save nearly half a million barrels of oil per day in less than ten years. Smarter, more efficient and flexible electricity infrastructure would increase reliability and consumers' options and ability to save or generate their own electricity.
Protect American families
Better protect consumers. More than seven million Americans would have better access to home heating and weatherization assistance in times of economic trouble. Strong and well-enforced federal price gouging laws would prevent oil companies from taking advantage of consumers. Accurate and accessible information on vehicle and appliance energy efficiency would help consumers save on energy billsCreate healthier communities and a cleaner environment. Significantly increased incentives for energy efficiency and renewables, and a national energy policy focused on rapidly developing and deploying climate-friendly domestic energy would reduce millions of tons of air pollution and greenhouse gases annually. Smart growth policies would make communities more livable, affordable, and safer.
The Cost of Inaction: The Impact of Skyrocketing Energy Prices on American Families and Businesses
Increased energy costs are taking a toll on the American economy, businesses, consumers, and families. The bottom lines of businesses across the country, particularly the airline, trucking, agriculture, and manufacturing sectors, have been hit hard. Unfortunately, rather than taking action to improve conservation and lower prices, the Bush Administration has stood by and allowed energy prices and oil company profits to reach unprecedented levels.Home heating costs are rising
Heating costs have risen by $438, or 79 percent, since President Bush's first full winter in the White House. The cost of heating fuels has skyrocketed, leaving American families unprepared to deal with unprecedented increases in heating bills. The cost of heating a home for the winter has increased by $438, or 79 percent, since the winter of 2001-2002.
Homes that heat with natural gas will see bills increase by 38 percent this year. Households that heat with natural gas are expected to pay an average of $282, or 38 percent, more this winter than last. Households that heat with heating oil can expect to pay an average of $255, or 21 percent, more this winter.
Transportation fuel costs are rising
Gasoline prices have risen by $.81 a gallon, or 56 percent, since President Bush took office. When Bush began his presidency in January 2001, a gallon of regular gasoline cost $1.44. Even before Hurricanes Katrina and Rita hit the gulf coast, gasoline prices were steadily rising, averaging $2.48 in August 2005, an increase of 72 percent from January 2001.
Households with children are on track to spend $1,322 more on transportation fuels this year than when President Bush took office in 2001. The average household with children will spend about $3,225 on transportation fuel costs this year, an increase of 69 percent over 2001 costs.
Energy insecurity
Hurricanes Katrina and Rita exposed serious flaws in our energy policy. As gasoline prices spiked above $6 a gallon in parts of the South, Americans who needed to drive lined up at gas stations to buy what little gasoline was available.Consumers and businesses suffer while Big Oil profits
Consumers have spent $3.5 billion on increased gas prices since 2001 while the top five oil companies made $32.8 billion in profits in the last three months. Oil industry profits have nearly tripled over the last three years to roughly $87 billion last year. In the first nine months of 2005, the five largest oil companies made $84 billion in profits, compared to a record $60 billion in the first nine months of 2004.Farmers spending more on energy. In 2002, farmers spent $18.36 billion on energy for crop production. Increasing prices of natural gas, diesel, and gasoline raised those costs to approximately $46.4 billion in 2004.
Trucking industry's operating expenses are skyrocketing. Diesel fuel accounts for one quarter of the trucking industry's operating expense, or $85 billion in 2005. Each penny increase in diesel costs the trucking industry $350 million over a full year.
The future of the airline industry is in jeopardy. Airlines are expected to spend $30 billion on fuel alone this year, twice what they spent for fuel in 2003 and $9 billion more than 2004. Increased fuel costs have led two airlines to file for bankrupcy and others to increase ticket prices and cancel routes.
High energy prices hurt our economy
Causing inflation. Energy prices contributed to a dramatic increase in the Consumer Price Index in September. The 1.2 percent rise in consumer prices was the fastest rise in consumer prices in 25 years. Inflation in consumer prices is predicted to hit 3.9 percent this year, the highest rate since 1990.Increasing our trade deficit. In August 2005, the U.S. trade deficit reached $59 billion, which is 1.4 percent higher than the previous month. According to the Department of Commerce, larger and more expensive imports of energy commodities are largely responsible for the increase in the trade deficit.
Losing jobs. On average, every time oil prices go up 10 percent, 150,000 Americans lose their jobs.
Energy prices are impacting key economic indicators. Leading economists noted after the release of monthly economic reports in September that energy prices are rising much faster than wages and becoming "increasingly difficult for consumers to absorb," which has resulted in lower consumer spending.
