From our houses and cars to our factories and airlines, America needs energy – lots of it. But recent events are a searing reminder that by importing 60 percent of our oil, we are entirely too dependent on foreign fossil fuels. Every American feels the sting of soaring home energy costs and $3-a-gallon gas – prices that go soaring even higher every time there is a political ripple in the highly unstable Middle East. Congressman Weller is also concerned about climate change, and believes cleaner energy must be a part of our strategy for the future.
Our economy, environment, and national security all demand that we begin to replace imported oil with homegrown biofuels such as ethanol made from corn and biodiesel made from soybeans, and look for other innovative ways to power our homes and businesses.
That is why Congressman Weller supported the president’s call for technological advancement and a greater move toward domestic energy production in the January 2007 State of the Union speech. The Congressman is also working on legislation to greatly increase our energy independence. It's the right answer for America, and is particularly good for Illinois – the nation’s #2 producer of ethanol. Among the key provisions of Weller’s bills:
- Requiring the federal government to use ethanol and biodiesel in its vehicle fleet; and creates a tax credit for purchasing a hybrid/flexible-fuels vehicle
- Increasing the renewable fuel content of U.S. gasoline from the current 4 billion gallons to 25 billion gallons by 2025.
- Creating a 20 percent tax credit for the purchase price of a hybrid/flexible-fuels vehicle.
- Adjusting the depreciation schedule for the installation of ethanol/biodiesel refining equipment, bringing it in line with that of refining components for other fuels.
- Expanding and extending the tax credit for the installation of ethanol/biodiesel refueling pumps (only about 1,000 fuel stations in the U.S. are now appropriately equipped).
- Calling for a Renewable Portfolio Standard of 25 percent of our energy to come from non-fossil sources by the year 2025 (Rep. Weller recently voted for a similar measure in the 2007 energy bill).
Congressman Weller is also a co-sponsor of the EXTEND Act of 2007. The bill would expand and extend the energy efficiency tax incentives found in the 2005 Energy Policy Act, including Congressman Weller's tax credit for home retrofits that save energy. The
credit starts at $800 for homes that are certified as saving 20 percent and
increases on a sliding scale, depending on the amount of savings, up to $2,000
for homes that save 50 percent. Owners or renters can qualify for the credit. A
new deduction for retrofits of rental homes makes a comparable amount of
incentive available to landlords.
Among the bill's other provisions and potential impacts:
- Extension through 2011 of the tax deduction for energy efficient
commercial buildings. The EXTEND Act extends the tax deduction
for energy efficient property installed in commercial buildings, such as
heating and cooling systems, interior lighting systems, and insulation. The
EXTEND Act allows property that is certified by 2011, but not placed in service
until 2013, to also receive the deduction. The bill increases the amount of the
deduction from $1.25 per square foot to $2.25 per square foot.
- Natural gas savings. The
market change resulting from the bill would save 55 trillion cubic feet (tcf)
of natural gas over 20 years, enough to heat approximately 76 million homes –
more than 70 percent of U.S.
homes.
- Global warming pollution reductions.
The market transformation would reduce annual carbon
emissions by 130.8 million metric tons of carbon-equivalent after 10 years, or
roughly 6.6 percent of projected U.S. emissions in 2016. This reduction would be equivalent to taking
about 69 million cars off the road (there are about 136 million cars in the United States).
- Consumers and businesses saving money. Consumers and businesses would save
more than $35 billion annually in utility bills by 2016 just from energy
savings achieved in 2016 alone.
The 2005 Energy Bill provided a strong gridwork of incentives and initiatives to begin moving our nation toward energy independence. Rep. Weller was one of the architects of the bill, which included his proposal to provide a tax credit to encourage energy efficient home and business construction.
To read more about the Energy Policy Act of 2005 and its benefit to Illinois, click here and here.
