Energy
If we plan to effectively combat rising gas prices and provide relief to American families across the nation, we must develop a comprehensive energy strategy. In the short term, we must make responsible use of our domestic resources. Next, we must turn our focus on alternative fuels and incentives for increased efficiency and conservation. In the long run, we must make strategic investments in energy research so that the fuels of the future are safe, clean and affordable for all Americans.
In September 2008, I was proud to join more than one hundred of my colleagues in supporting a resolution demanding that Congress stay in session until comprehensive energy legislation is enacted. You can view H.Con.Res 417 in its entirety HERE.
Recent Developments
On October 1st, a longstanding ban that prevented energy exploration in most of the Outer Continental Shelf and oil shale development in the Western United States finally expired. Many nicknamed this day “American Energy Freedom Day.” Unfortunately, some House Democrats have openly stated that reinstating the 27-year-old ban will be their top priority in the 111th Congress. If we truly plan to become energy independent, we must allow the American people access to the country’s abundant domestic energy resources.
Recently, Congress extended the energy tax credits for renewable (Wind, Solar, Biomass) energy. These tax credits will encourage conservation and the development of renewable energy technology.
These energy tax credits and the expiration of the ban on offshore drilling and oil shale development are both great steps forward as Americans strive for energy independence. However, these developments alone are not enough to definitively reduce our energy costs, increase our domestic fuel supplies and improve our energy future.
Congress must create and implement a new comprehensive and strategic “all of the above” plan to address our energy needs, protect our environment, stimulate our economy and create jobs. The price of oil has recently declined, dropping as low as $88/ barrel on October 6, 2008. As a result, it might be tempting to think that our energy crisis is nearing an end. Unfortunately, these trends will not last. If we abandon our goal of greater energy independence, we can be certain that an even more painful and widespread energy crisis lies ahead.
As global demand for oil continues to grow dramatically, current supply cannot keep pace. We must take action to use our American energy resources in a responsible and efficient manner.
Supply and Demand
Our nation’s energy crisis has resulted primarily from one fundamental economic concept: supply and demand. Over the past three decades, we have ignored repeated warnings that our energy supply would not always be reliable and affordable. Instead, we have allowed partisan paralysis to hinder efforts to increase and diversify our domestic supply of energy.
According to the International Energy Agency (IEA), global demand for oil in 2007 was 86 million barrels a day, while the global supply of oil was 85.5 million barrels. The IEA also estimates that the world’s primary energy needs will more than double by 2030. We must implement a comprehensive strategy that will promote responsible development of our domestic energy resources while actively exploring alternative fuels and investing in research for future fuel technologies.
Congressman Davis’ Energy Strategy
I support a comprehensive energy strategy that will encompass the following three steps:
1. Responsible Use of America’s Resources. In order to effectively reduce our dependence on foreign oil, I support environmentally responsible exploration of our oil resources in the Arctic National Wildlife Refuge (ANWR), the Gulf Coast, the Outer Continental Shelf (OCS) and the Mountain West.
Did you know?
o That the section of ANWR that Congress debates about oil exploration is 2000 acres, less than 1/3 the size of the Greater Cincinnati/Northern Kentucky International Airport.
2. Explore Alternative Fuels while Encouraging Efficiency and Conservation. We must use new, cutting-edge technology to diversify our energy resources, keep costs down and alleviate our dependence on foreign countries. I support increasing incentives for efficiency and conservation, developing our alternative resources like Cellulosic Ethanol and Coal-to-Liquids technologies, increasing the number of nuclear, coal-fired and natural gas power plants, and exploring the potential of solar and wind power plants.
Did you know?
o The 103 U.S. nuclear units supply about 20 percent of the electricity produced in the United States – second only to coal as a fuel source.
o U.S. wind energy installations produce enough electricity on a typical day to power the equivalent of more than 2.5 million homes.
3. Invest in Future Fuels. We must implement safeguards and make necessary changes now so that we are not faced with another energy crisis in the future. America needs to invest strategically in energy research so that the fuels of the future, like hydrogen, are safe, clean and affordable.
The “All of the Above” American Energy Act (H.R. 6566)
In July, I joined 118 of my colleagues and introduced the American Energy Act. The bill would increase the supply of American-made energy, improve conservation and efficiency, and promote renewable and alternative energy technology. The legislation takes an “all of the above” approach.
To increase the supply of American-made energy in environmentally sound ways, the legislation would:
- Open our deep water ocean resources, which could provide an additional 3 million barrels of oil per day, as well as 76 trillion cubic feet of natural gas;
- Open the Arctic coastal plain, which could provide an additional 1 million barrels of oil per day;
- Allow development of our nation’s shale oil resources, which could provide an additional 2.5 million barrels of oil per day; and
- Increase the supply of gas at the pump by cutting bureaucratic red tape that hinders the construction of new refineries.
To improve energy conservation and efficiency, the legislation would:
- Provide tax incentives for businesses and families that purchase more fuel efficient vehicles;
- Provide a monetary prize for being the first to develop an economically feasible, super-fuel-efficient vehicle (reaching 100 miles-per-gallon); and
- Provide tax incentives for businesses and homeowners who improve their energy efficiency.
To promote alternative and renewable energy technologies, the legislation would:
- Permanently extend the tax credit for alternative energy production, including wind, solar and hydrogen;
- Establish a renewable energy trust fund using revenues generated by exploration in the deep ocean and on the Arctic coastal plain;
- Spur the development of alternative fuels through government contracting, the repeal of the "Section 526" prohibition on government purchasing of alternative energy and promotion of coal-to-liquids technology; and
- Eliminate barriers to the expansion of emission-free nuclear power production.
The No More Excuses Energy Act (H.R. 3089)
The No More Excuses Energy Act would:
· Encourage new refinery construction by allowing tax exempt bonds to be used for construction of certain refineries and allowing the use of certain federal lands as potential sites for new construction;
· Lift the moratoria on drilling in the Outer-Continental Shelf (OCS) opening access to as much as 17 billion barrels of oil;
· Open the Arctic National Wildlife Refuge to responsible oil exploration, with the potential to produce almost a million barrels of oil per day; and
· Encourage construction of new nuclear power plants through tax incentives.
The Coal-to-Liquids Fuel Promotion Act of 2007 (H.R. 370)
Congressman Nick Rahall [D-WV] and I introduced H.R. 370, the Coal-to-Liquids Fuel Promotion Act of 2007. The legislation would promote construction of coal-to-liquids plants.
Coal-to-liquids fuel presents an exciting opportunity for American energy independence and economic development in Kentucky. Using the Fischer-Tropsch process, coal can be converted into an ultra-clean, high-grade liquid fuel. Today, the Fischer-Tropsch method is used to supply South Africa with 30% of its transportation fuels.
The Coal-to-Liquids Fuel Promotion Act of 2007 is a three-part, comprehensive bill that will promote construction of coal-to-liquids plants. The bill offers tax incentives for investment and production and would strengthen our domestic energy security by providing for the use of coal-to-liquids fuels in the military and as a component of the Strategic Petroleum Reserve.
House Floor Energy Protest and Press Conference
Throughout August, Republicans converged on the House floor to protest Speaker Pelosi’s refusal to allow debate or a vote on energy solutions. On August 13th, a press conference was held to urge Speaker Pelosi to return to Washington and help Republicans solve our energy crisis.
House Republicans believe that Americans deserve this debate and they deserve a vote on a new energy strategy that will provide relief to families, businesses and our economy. My colleagues and I held that debate throughout August and repeatedly demanded that vote. Unfortunately, the Democratic Majority ultimately decided to force passage of a sham energy bill that fails to effectively address America’s energy needs. I plan to continue fighting for our strategic energy future until Congress develops a comprehensive plan that will embrace all our energy needs and reduce our dependence on foreign oil, once and for all.
See the video of the press conference HERE.