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(Washington, D.C.) Citing the rising cost of gasoline and the growing
volatility for increasing domestic energy production, Fourth District Rep.
Mike Ross stressed the need to Commerce Secretary Bodman to increase domestic
energy production during Wednesday’s House Energy and Commerce Committee
hearing. Secretary Bodman attended the hearing to relay the Bush Administration’s
energy policy for the upcoming fiscal year.
Below is the transcript of Ross’s remarks that he submitted for the
record to the Committee:
“Thank you Chairman Barton and Ranking Member Dingell for having this
important hearing today to discuss the Administration’s Fiscal Year 2006
Budget Proposal for the Department of Energy. I appreciate Secretary Bodman
taking time to be here with us to discuss the priorities of the Administration
and to answer questions related to energy policy.
“With the increasing costs of natural gas, volatility in the energy
markets, and rising gas prices, I believe it is imperative that we discuss
methods to increase domestic production and to make it more affordable.
One of the ways to do this is to increase the production and use of cleaner,
renewable agriculture-based energy. I believe that the incentives
that have been provided at both the federal and state levels to encourage
this form of production should be expanded. While the production
of ethanol, the primary bio-fuel produced by the agricultural sector, has
risen from about 175 million gallons in 1980 to 3.3 billion gallons in
2004, it only accounted for about 0.8% of U.S. petroleum consumption and
0.3% of total U.S. energy consumption in 2003. I am looking forward
to the Secretary’s thoughts on how we can increase the use of farm-based
production.
“Another concern I have in reference to the Administration’s budget
is the reduction of funding for Power Marketing Administrations (PMAs)
and proposed rate increases. The budget request for FY06 is $57 million,
a decrease of $152 million, or a reduction of 72.6%. The Southwestern Power
Administration that serves over 200,000 constituents in my district would
be adversely impacted by this proposal. It is my understanding that
the cost of the electricity sold from federal dams would increase at 20%
per year until the rates are at an undetermined market level. The
power that is received from the Southwestern Power Administration is peaking
power, which means my constituents receive it when it is most needed, to
heat or cool their homes when temperatures increase or decrease substantially.
As a result of this proposal, the power rates in many areas in Arkansas
that have not benefited from the economic recovery would increase.
I am deeply concerned about this and would like to discuss it in more detail
at the appropriate time.
“Again, thank you for convening this hearing and I look forward to the
testimony from Secretary Bodman.” |
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