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On the Issues:

Energy

During the energy crisis of the 1970s, America imported about 40% of the petroleum it needs to meet it energy demands.  That figure has now reached nearly 70%, presenting dangerous energy and foreign policy challenges for our country.
 
The status quo of relying on foreign sources of oil is unacceptable.  That’s why Rep. Frelinghuysen is aggressively supporting efforts to reduce our dependence on foreign oil through extensive research and development of renewable energy and energy alternatives.  Wind, solar power, hydrogen power, and other energy sources hold great promise for reliable and cleaner energy sources to fuel our cars, run our businesses, and heat our homes.

To speed the transition to new energy sources, we need to accelerate the use and development of technologies and fuel alternatives Congress has already put in place. The Congress has made historic investments in developing fuels made from diverse energy sources. To prevent more pain at the pump, we must do more to develop smart, reliable, and long-term alternative energy solutions.
 
In the short term, Rep. Frelinghuysen is also fighting for our nation to build its first new oil refineries in 30 years. A few years back, our nation learned an uncomfortable lesson when Hurricane Katrina shut down refineries on our Gulf Coast. Storms and other disruptions may not have such a volatile impact on the price of gasoline if more refineries existed to guarantee production.

Twenty-nine percent of our oil production and 20 percent of the natural gas is in the Gulf of Mexico. The northeast U.S. relies on millions of miles of pipeline from the Gulf Coast region for 60 percent of its total oil supply. Further, 50 percent of the nation's heating oil is refined in the Gulf of Mexico, of which 82 percent is consumed in the Northeast U.S.
 
Last year, the House passed H.R. 6, the Energy Policy Act which included many provisions aimed at greater energy efficiency. These include tax incentives for alternative fuel vehicles and requirements for lower emissions from fossil fuels.

Rep. Frelinghuysen has also consistently supported higher Corporate Average Fuel Efficiency (CAFE) standards since coming to Congress. More information on CAFE standards can be found at the National Highway Transportation and Safety Administration's website at http://www.nhtsa.dot.gov/cars/rules/cafe/overview.htm.

Since 2000, the federal government has invested over $3 billion in renewable energy. For fiscal year 2006, Congress has continued this investment with $343 million overall for renewable energy programs -- geothermal technology, hydrogen technology, and wind technology systems. Additionally, the Energy Policy Act provided significant new funding for a clean coal power initiative.

The Congressman also remains a steadfast supporter of fusion energy research, much of which is conducted in New Jersey at Princeton University. (http://www.pppl.gov/)  Fusion energy has the potential to become an unlimited, safe, environmentally friendly and affordable energy source.

Nuclear energy research and development should receive more attention and funding for programs that include nuclear hydrogen and the Advance Fuel Cycle Initiative. The initiatives will provide alternative fuel sources as we look to decrease our dependency on fossil fuels. However, nuclear power development can only proceed with the licensing of new reactors, and a comprehensive nuclear waste management program that includes new technologies to process waste so that its energy can be harnessed and the remains stored more efficiently.

Rep. Frelinghuysen is also a supporter of the President's "Hydrogen Fuel Initiative" which seeks to make fuel cell technology commercially available by 2015.  More information can be found at: http://www.whitehouse.gov/stateoftheunion/2006/energy/index.html.

New Jersey's Energy Profile

The Energy Information Administration (EIA) provides energy profiles of all fifty states.  Below are some quick facts from New Jersey's profile.  For additional information, please visit the EIA's website at http://tonto.eia.doe.gov/state/state_energy_profiles.cfm?sid=NJ#map.

  • The New York Harbor area between New York and New Jersey has over 40 million barrels of refined product storage capacity (much of which is in New Jersey), making it the largest petroleum product hub in the United States.  
  • The largest of the four U.S. Northeast Heating Oil Reserve sites is located in Woodbridge, New Jersey.
  • The Salem nuclear power plant is one of the highest-capacity power plants in the Nation.
  • New Jersey’s Oyster Creek nuclear reactor, which first came online in 1969, is the oldest operating nuclear plant in United States.
  • The transportation sector dominates energy consumption in New Jersey, where the average commute time is among the longest in the Nation. 

What Affects Gas Prices?

The United States consumes more than 20 million barrels (840 million gallons) of petroleum products each day, almost half of it in the form of gasoline used in more than 200 million motor vehicles with combined travel of more than 7 billion miles per day.

In 2006, about 60% of the petroleum consumed in the U.S. was imported from foreign countries.  The top five source countries and their percent share of U.S. total net petroleum imports were:

  • Canada 17.5%
  • Saudi Arabia 11.9%
  • Mexico 11.8%
  • Venezuela 11.2%
  • Nigeria 9.1%

Several factors affect oil and gas prices in New Jersey and across the nation, including:

•        Stagnant U.S. refining capacity and damage to refining capacity from 2005 hurricanes. The U.S. has constructed no new refineries in more than 30 years, a lack of capacity that was highlighted when Hurricane Katrina struck the Gulf Coast and shut down three refineries.
•        High demand from rapidly developing nations such as China and India. Oil prices are set by the world market, so even if U.S. consumption slows, the price of gas in the U.S. will stay the same as long as foreign demand remains high.
•        Political instability in Iran, Nigeria, and Venezuela. Iran is the number two exporting country of oil and supplies 40% of U.S. oil. Venezuela is the fourth leading exporter of oil to the U.S. Hugo Chavez’s recent move to further nationalize oil production makes depending on supplies from that nation even more risky.
•        Seasonal changes. Switching from winter to summer season blends traditionally causes price spike. Adding to that is the transition from the additive MTBE to ethanol.

For additional information about the trends and conditions that drive gasoline prices, the Energy Information Administration publishes "A Primer on Gasoline Prices," available at the following web address: http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/eia1_2005primerM.html

How Can You Save Money on Gas?

•        Slow down! Each 5 miles per hour you drive over 60 mph is like paying an additional $0.15 per gallon for gas. Aggressive driving (speeding, rapid acceleration and braking) wastes gas.
•        Keep your car maintained and running smoothly! Schedule tune ups, clean air filters, make sure tires are properly inflated, and ensure you are using the proper grade of motor oil.
•        Use your engine wisely! Avoid excessive idling and use cruise control and overdrive gears.
•        Be smart about driving! Plan errands to do them together, rather than in separate trips. Carpool or use mass transit when possible. Keep your car light – don’t store unnecessary items in your car.
 
For tips on saving gasoline, visit http://www.fueleconomy.gov/feg/driveHabits.shtml.  To compare gas prices in your area, visit www.fueleconomy.gov, a website maintained by the Department of Energy and the Environmental Protection Agency.

What Affects Home Heating Costs?

According to the Energy Information Administration, prices for heating fuels are expected to be higher this winter than last. 
• Residential natural gas prices are expected to average $13.14 per thousand cubic feet (mcf) this winter, compared with $12.36 per mcf last winter.
• Heating oil prices are expected to average $2.88 per gallon, compared with $2.48 per gallon last winter.
• Propane prices are expected to average $2.28 per gallon compared with $2.02 per gallon last winter.
• Residential electricity prices are expected to average 10.3 cents per kilowatthour (kwh), compared with 10.1 cents per kwh last winter.

Contunued low surplus production capacity, weak petroleum inventories, and strong demand worldwide have all contributed to recent high crude oil prices.  Crude oil prices are project to remain above $70 per barrel throughout the winter.

Of the 8.1 million households in the U.S. that use heating oil to heat their homes, 6.3 million households (or roughly 78%) are located in the northeastern U.S.  The northeast region remains the area with an appreciable share of oil-heated single family homes.  In other regions, older homes have been converted from oil heat to gas heat, and oil no longer has a noticeable share of the new home construction market.  Thus, the season increase in inventories and demand is largely confined to the northeast.  In 2005, 5.1 billion gallons of heating oil were sold to residential customers in the northeast; this is 83% of total residential fuel oil sales.

For additional information on residential heating oil prices, the Energy Information Administration publishes "Residential Heating Oil Prices: What Consumers Should Know," available at the following web address: http://www.eia.doe.gov/neic/brochure/heatingoil2006/index.html.

How You Can Keep Your Energy Bills Lower

There are numerous ways to reduce your energy costs by being energy-conscious in your home or apartment.  For a comprehensive list of tips, please visit the Department of Energy’s website at www.doe.gov/yourhome.htm.  Additional information is available at the Department of Energy’s Energy Efficiency and Renewable Energy website, located at www.eere.energy.gov/consumer/

How You Can Secure Assistance with Heating Costs

LIHEAP.  The Low Income Home Energy Assistance Program (LIHEAP) is a federally-funded program that helps low-income households with their home energy bills.  LIHEAP operates in all 50 states, the District of Columbia, Indian tribes or tribal organizations, and the U.S. territories.  The local LIHEAP program determines is households qualify for the program and can provide bill payment assistance, energy crisis assistance, or weatherization and energy-related home repairs.

Contact information for New Jersey’s LIHEAP program is below:

Office of Low-Income Energy Conservation
Division of Community Resources, Department of Community Affairs
P.O. Box 811
Trenton, New Jersey 08625
Telephone: (609) 984-3301
Fax: (609) 292-9798
Public Inquiries: (800) 510-3102
Website: http://www.state.nj.us/dca/dcr/  

First Call for Help: 1-800-435-7555

NJ Lifeline: 1-800-792-9745

NJ SHARES: 1-866-NJSHARES (657-4273)

New Jersey Comfort Partners: 1-888-773-8326

Somerset and Sussex Counties:

NORWESCAP, Northwest New Jersey Community Action Program, Inc.: 1-888-454-4778

All four counties can contact the NORWESCAP number as it is one of the only 1-800 number in the state for the LIHEAP program.  They can direct your call accordingly. 

Morris County:

Morris County Organization for Hispanic Affairs, Inc. Rosa Soto (973) 366-1131

Essex County:

La Casa De Don Pedro: Cecelia Aiken (973) 485-0795 & 0796

Weatherization Assistance Program.  The Department of Energy’s Weatherization Assistance Program enables low-income families to permanently reduce their energy bills by making their homes more energy efficient.  On average, weatherization reduces heating bills by 31% and overall energy bills by $358 per year at current prices.

The Weatherization Assistance Program is federally-funded and operated by individual states.  For information about weatherization assistance, please contact New Jersey’s office of Low-Income Energy Conservation (contact information above).