Last Wednesday, the House Committee on Ways and Means, on which I serve, held a hearing on tax incentives for energy production. Over the last several years, I have supported numerous tax incentives aimed at improving our nation’s energy security by boosting domestic production of all forms of energy, including fossil fuels, nuclear power, and renewable resources such as biomass and solar power. I am concerned, however, that the Obama administration is proposing to finance additional investments in renewable energy by imposing short-sighted, detrimental tax increases on American oil and gas production that would only increase prices at the pump. In addition, the House passed legislation last year that would impose an $872 billion national energy tax in the guise of a new “cap and trade” program. In an environment of rising gas prices, increasing dependence on oil and gas imports from unfriendly nations, and high unemployment, I believe we must promote increased domestic production and job creation across all energy production sectors. Doing so will aid in our economic recovery and efforts toward energy independence.

At last week’s hearing, I questioned a representative from the Treasury Department about the Obama administration’s support for a national energy tax. While the proposed energy tax would be very damaging to our economy, studies have shown that it will have little impact on global emissions levels if China and other major polluters do not take similar action. I expressed my concern that this proposal could result in more U.S. manufacturers moving their operations overseas. I also asked the Treasury Department to comment on legislation I have sponsored (H.R. 2626) that would allow renewable biomass and hydropower facilities in Northern California and elsewhere to receive the same tax credit as wind farms in other regions of the country. Later in the hearing, I discussed the importance of nuclear power with Karen Harbert, president of the Institute for 21st Century Energy at the U.S. Chamber of Commerce, and Dr. Jeffrey Sachs, an economist and director of the Earth Institute at Columbia University. Like Ms. Harbert and Dr. Sachs, I believe expanded production of nuclear energy, with appropriate safety and waste disposal measures, must be part of any sustainable plan for America’s energy future. I will continue to support and work for proposals that follow these principles and will lead to more domestic energy production and a stronger America.