Energy Remains Critical
Our economic productivity relies on our access to energy. Since my time in Congress I have argued for a comprehensive national energy policy that will ensure American businesses and consumers have access to inexpensive and abundant sources of energy, protect our environment from damage, and promote the American economy. I believe Congress can take steps now to increase our domestic energy supply, encourage innovation of renewable energy sources and use conservation to lower our current demand.
As the world’s third largest producer of crude oil, largest producer of natural gas, and second largest producer of coal, our domestic production of traditional energy sources will continue to play an important role in our energy supply. Developing carbon capture and storage, clean coal, biofuels, and other clean fossil fuel technologies will help us utilize these critical fuel stocks and our fossil fuel based infrastructure in a more environmentally responsible manner, while providing critical increases in production capacity.
Abundant energy need not come at the expense of the environment. Renewable resources hold great promise to reduce the pollution generated by energy production and to diversify our energy supply, but are still years away from being a significant portion of our energy portfolio. Just as we have in Texas, our nation needs to continue to invest in renewable resources to make them more competitive, available, and affordable. Renewables are good for the environment and help to build a diverse energy portfolio which will reduce the demand for fossil fuels and contribute to price stability in the future.
Cap and Trade
On June 26, 2009, the House of Representatives passed the Democratic leadership’s vision for America’s energy future, H.R. 2454, the American Clean Energy and Security Act which was introduced by Representatives Henry Waxman [D-CA] and Edward Markey [D-MA]. Speaker Pelosi’s energy plan is to reduce carbon emissions through a cap-and-tax scheme, which is nothing more than a national tax on the energy from fossil fuels.
The Waxman-Markey bill is the most far-reaching energy legislation introduced since I have been in Congress and it will fundamentally upend the energy markets in our country. Democrats freely admit that their energy plan will dramatically increase costs of energy and will greatly expand the federal government influence on our economy. After a volatile and contentious debate, the Speaker forced this legislation through the House by the razor thin margin of 219-213. I opposed this legislation because I believe it will be disastrous for the American economy and ineffective in improving the environment.
Reducing carbon dioxide emissions with a cap-and-tax or carbon tax scheme only works by increasing the cost of utilizing fossil fuels so that more expensive renewables will be considered economically viable by comparison. That means that cap-and-tax schemes become equivalent to raising the prices on Toyotas so that people will buy more Chevrolets – in the end, the consumer is getting a car, it just costs more. That logic hurts both individuals and the economy at large. It makes us all collectively poorer and less productive.
Increased taxes and fees on crude oil and natural gas companies will have near-term and long term damaging effects for American consumers. Higher taxes for the industry means less money goes back into the ground, lowering production, increasing prices, and making America more dependent on foreign countries for energy. We should focus our efforts on reducing the price of renewable energy, not simply raising the price of fossil fuels.
The Republican Alternative
My Republican colleagues and I introduced legislation that would spur the advancement of renewable power sources that can compete with our existing power plants on an equal footing. The Republican plan would allow increased domestic production of traditional energy resources and then use the resulting royalties to encourage the infrastructure, and research and development investments needed to make the emerging renewable energy technologies competitive. Additionally, we have proposed to streamline and accelerate the permitting and regulatory process for new nuclear power plants. This will significantly reduce the time and costs spent waiting on government regulators to approve projects, a problem that has stifled the construction of nuclear plants for decades. In the long run, the Republican approach will encourage new investment in American resources, the creation of American jobs, and the expansion of a competitive renewable power industry.
Related
Documents:
Press Release
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Americans for Prosperity Applauds U.S. Representative Mike Conaway
6.29.2010
