Achieving energy independence is one of the greatest challenges of our generation. The cost of our oil dependence and our current energy policy is being borne by families who are spending over three thousand dollars more on gasoline this year, farmers who are paying 70 percent more combined for fuel and fertilizer than they were in 2005, and by businesses that are being forced to cut jobs and pass on their extra expenses to consumers. The cost to national security is growing is too as America sends hundreds of billions of dollars overseas to pay sometimes unfriendly regimes for oil and natural gas.

It's time to get serious about our energy security. I support providing Nevadans and all Americans with some kind of temporary relief from rising energy, gas and electricity prices while we try to install a much better national energy policy. But we also must end our dependence on foreign oil, enact sustainable energy legislation, and work much harder to make our country energy independent by 2020.

The Clean EDGE Act of 2006

To help meet the energy and national security needs of our country I helped develop the Clean EDGE Act of 2006. This legislation would transform our energy policy and provide the leadership our country needs to break its addiction to foreign oil and achieve greater energy independence by 2020. America’s history demonstrates that when our country comes together with shared sense of commitment we can accomplish tremendous goals. Like the Manhattan and Apollo projects that have come before, the Clean EDGE Act of 2006 is a bold initiative that moves America toward a 21st century energy policy and energy independence.

The Clean EDGE Act has five central components that will establish a new energy policy for our country. The first piece of the Clean EDGE Act aims to transform America’s vehicles and infrastructure so that 50 percent of new vehicles sold in the United States are capable of using alternative fuels by 2020. The legislation would set a national goal of installing alternative fuel pumps at 10 percent of American gas stations by 2015 by offering additional tools to retailers and work with local governments that partner with private industry to establish alternative fuel corridors throughout America. This part of the Clean EDGE Act is important because the largest segment of our demand for foreign oil comes from the transportation sector and by reducing the amount of oil required by transportation our country can help to break its addiction to foreign oil.

The second part of the Clean EDGE Act seeks to protect American consumers and businesses from price gouging and market manipulation and provide energy price relief to consumers and businesses. The Clean EDGE Act makes gas price gouging a Federal crime, enhances Federal authority to prevent and prosecute manipulation of fuel supplies along with anti-competitive behavior. In addition, the bill would provide additional assistance to farmers, businesses, and low-income families that are struggling to cope with energy costs that have risen dramatically across the country over the last few years. This portion of the bill is essential because the Federal Trade Commission does not currently have the tools necessary to protect the American people from gas price gouging

The Clean EDGE Act also takes important steps that would level the playing field for clean energy technologies.  This legislation would revoke subsidies for profit-rich, major oil companies, and make sure they pay their fair share in royalties owed to American taxpayers for drilling on public lands and in federal water. The bill would then take these revoked subsidies from the mature petroleum companies and use the savings to instead provide incentives for greater market penetration and use of renewable energy and efficiency technologies. This is also important because our current energy policy provides far too many tax breaks and subsidies for oil and gas companies that are simply not necessary.

The role that the Federal government plays in our energy policy is also addressed in the Clean Edge Act. The Federal government is the single largest energy consumer in America.  The Clean EDGE Act requires the Federal government reduce its petroleum consumption by 20 percent in five years and 40 percent by 2020, increase its renewable electricity use to 10 percent of total consumption by 2013, and employ advanced, efficient, and renewable technology to help drive innovation and jumpstart markets. This part of the Clean EDGE Act is critical because I believe that Federal government needs to show real leadership on this issue.

The final piece of the Clean EDGE Act seeks to diversify America’s energy sources and invest in American jobs and industry. The Clean EDGE Act sets a national goal of producing 10 percent of all electricity produced in the country comes from renewable energy sources by 2020. The bill would also create an Advanced Research Projects Agency for Energy (ARPA-E) to develop cutting-edge technologies that will reduce oil consumption, improve electricity efficiency and reliability, and reduce greenhouse gas emissions. This segment of the Clean EDGE Act is vital because America only has 3 percent of the world’s oil reserves, but we use 25 percent of the world’s supply, which means that we must commit ourselves to increasing the production of clean, domestically-produced renewable energy.

Supporting Renewable Energy in Nevada and Across America

I am proud that Nevada has one of the most aggressive Renewable Portfolio Standards (RPS) in the country, with a goal to bring its use of renewable energies up to 20 percent by 2015. Nevada has many features that make it an ideal location to develop renewable energy sources. The development of renewable energy will make Nevada’s future, its health, and its economy more secure.

I have consistently supported efforts on the Federal level that have helped to raise Nevada’s profile as a national leader on renewable energy and economic development.  My position as the ranking member on the Senate Energy and Water Appropriations Subcommittee has allowed to me secure more than $100 million for renewable energy and energy efficiency research and projects in Nevada. I also introduced the Renewable Energy Incentives Act and was able to include major portions of it in the last energy bill that have helped to spur the development and growth of renewable energy throughout Nevada and across the United States. I will continue to pursue these policies because they help to protect Nevadans from wild price swings by providing a steady, reliable source of power and promote economic development in every corner of Nevada.

It is also important though that our government provide sensible and stable tax policies and funding levels that will help to provide for long-term growth in the renewable energy sector.  To help advance those efforts, I have both offered and cosponsored amendments onto various bills that if successfully implemented would have gone a long way towards ending our dependence on foreign oil and provided sensible tax policies for the renewable energy to further expand and develop renewable energy in Nevada and across America.

Lowering Gas Prices

Nevada has some of the highest gas prices in America. I have been especially concerned lately that Nevadans have been forced to pay record gas prices while oil companies and refineries are reaping record profits. As part of a larger strategy to make America Energy Independent by 2020, I have been working with my Senate colleagues on a plan to reduce gas prices in the near and longer-term future.

Last year, ExxonMobil reported a 43 percent increase in annual profits from the year before to $36.13 billion; ConocoPhillips reported a 66 percent increase in profits to $13.53 billion; and Shell had a 37 percent increase in profits to $25.3 billion. While the oil companies have been raking in record profits, they failed to build any new refineries for 30 years and to significantly expand in order to ensure Americans with adequate supplies. The truth is that the oil companies do not want to expand refinery capacity because it would cut into their record-setting profits.

I wrote to the President and the Vice President on April 6, 2006, and again on April 25, 2006, to ask them to join me in quickly convening an emergency bipartisan energy summit. The summit would have representation from all facets of American life, including oil companies, automakers, alternative fuel producers, consumers, scientists, environmentalists, transportation experts, state and local leaders, and be open and transparent to the public in a free-flowing format. Although the Administration has not yet taken up the offer, I remain hopeful that it will agree to co-host the summit because we need swift action and leadership on this important issue.

In the meantime, I have supported legislation in the Senate that would provide both short and long term solutions to the rise in gasoline prices that would give Americans immediate relief from gas prices right at the pump by removing the $0.184 per gallon federal tax on gasoline and the $0.244 per gallon federal tax on diesel for 60 days. It is important to note though this legislation would not take any money away from the Highway Trust Fund because funds will be transferred back into the Highway Trust Fund in an amount equal to the revenues lost by reducing tax breaks and subsidies enjoyed by the mature petroleum industry.

I have also supported legislation that would protect Nevadans from price gouging and market manipulation. I chose to cosponsor the Energy Emergency Consumer Protection Act of 2005. This bill would enact measures to ensure that the President take the appropriate steps to prevent market manipulation and price gouging. The bill would also ensure greater transparency in the oil and gas markets.

I am also supporting legislation to create strategic reserves of gasoline and jet fuel to protect consumers from prices and supply volatility. Finally, I am a cosponsor of the Windfall Profits Rebate Act of 2005. This legislation would tax oil companies' excessive profits, unless they invested in expanding refining capacity or alternative fuel supplies and infrastructure in the United States

Western Energy Markets

In 2000 and 2001, the Enron Corporation gouged families and businesses across Nevada and other Western states for billions of dollars by manipulating the electricity market. Enron followed up those actions by suing the Nevada Power Company for more than $300 million dollars in order to seek payment for power it could not even deliver.

In response, I joined with several of my Western colleagues to include an amendment into the energy bill that gave the Federal Energy Regulatory Commission exclusive authority over the disputed contracts. I am hopeful that this grant of authority will protect Nevadans with an equitable settlement and protection from future supply manipulation.

Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission is one of the most important federal agencies that help to protect consumers from companies that attempt to manipulate the electricity market and gouge consumers. One of the many benefits of my position in the Senate leadership is the ability to nominate qualified representatives to the Federal Energy Regulatory Commission that will work hard to make sure that Nevadans and all Americans are protected from market abuses and help to advance the use and production of renewable energy. On March 7, 2006, I nominated Jon Wellinghoff because he knows Nevada well and because he served as the state consumer advocate for several years and helped draft Nevada’s Renewable Portfolio Standard. I am confident that he will be an tremendous asset at the Federal Regulatory Commission.

Increasing Transmission Line Access

One of the largest impediments towards increasing the use and construction of renewable energy systems is accessibility to transmission lines. I am currently studying various legislative options that would help to promote increased transmission access, encourage greater cooperation between parties, and break down the obstacles that hamper intrastate and interstate transmission. I am also continuing to work with interested parties throughout Nevada to ensure that  all Nevadans have modern  and adequate transmission access throughout every corner of the state.

Investing in Alternative Fuels

In order to solve our country's long term energy problems, I believe that the Congress and the Administration must commit to developing a balanced, comprehensive national energy strategy that reduces our nation's dependence on foreign oil, diversifies our energy supply, safeguards consumers, and protects our environment.
By relying more on energy made here in America, we have an opportunity to make America energy independent by 2020 and to strengthen our rural economies. I chose not to support the final version of the 2005 energy bill because a number of progressive energy provisions were either eliminated or significantly weakened from the original energy bill that passed the Senate. However I was pleased that the bill did include tax incentives for biofuel programs and a renewable fuel standard that requires the annual use of 7.5 billion gallons of ethanol and biodiesel in the nation's fuel supply by 2012.

Conservation and Efficiency

Any plan to provide national energy security must include better efficiency and conservation. Conserving energy will reduce our dependence on foreign oil, protect our environment, and strengthen our economy.
One of the best ways that our country can begin conserving energy and start to break our dependence on foreign oil is through the inaction of a national oil savings goal.  I believe that the Federal government can reduce its petroleum consumption by 20 percent in five years and 40 percent by 2020. This enactment of this goal would be show real leadership by the Federal government and would take an important first step towards energy independence. I was disappointed though that the Senate rejected this plan by a vote 47 to 53 but I remain hopeful that the Senate will revisit this issue shortly.

There are no substantial technical, safety, or other issues that preclude auto manufacturers from offering a wider variety of fuel efficient and non-petroleum vehicles.  Higher fuel economy standards would help spur their development and delivery to consumers. Raising fuel efficiency standards will result in substantial savings at the pump for consumers and move our country closer to energy independence by 2020. If all cars, trucks, and sport utility vehicles had a fuel efficiency standard of 27.5 miles per gallon, the nation would save more oil in three years than could possibly be recovered from the sixth months of oil that might be available in the Arctic National Wildlife Refuge.

Conservation and energy efficiency programs can also help to lower the price of natural gas for Nevada ratepayers. I have consistently supported energy efficiency and conservation plans and I will continue to pursue those cost-effective strategies.

Electricity Grid

The blackout in the Northeast in 2003 reminded Congress that it needed to take aggressive steps to improve the reliability of our nation's electricity grid. The Congress needed to establish federal reliability standards for our electricity grid and to research and develop new technologies that will make energy production and consumption more efficient.

I was pleased that the leaders in the House and Senate were able to provide the needed control and enforcement of our electrical grid that will help to ensure that blackouts in America will become a thing of the past.
Links

Nevada State Office of Energy
Nevada Renewable Energy and Conservation Task Force
Energy Information Administration: Nevada Profile
Nevada Test Site
Nevada Energy Connection

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