With gas prices at near record levels, we need a comprehensive energy plan that shifts our economy away from heavy dependence on oil imported from unstable regions to domestic energy sources that create jobs in America. That is why Rosa supports initiatives to immediately reduce oil and gas prices, the responsible development of American natural gas, investing in the next generation of clean and renewable energy sources, and reducing our energy waste through efficiency improvements.
Reduce Energy Prices and Eliminate Subsidies for Oil Companies
In recent years, gas prices have steadily risen well above where supply and demand suggests they should be. Wall Street speculators are unfairly driving up the cost of oil and gas by betting that costs will continue to rise, despite the absence of a true supply problem. Additionally, the major oil companies are continuing to receive billions in federal tax subsidies while they are making record profits on the artificially inflated oil prices.
Wall Street speculation in the energy markets is an indisputable cause of high and unstable gas and oil prices. Congress recently gave the Commodity Futures Trading Commission (CFTC) new powers to address this problem with the passage of the Dodd-Frank Wall Street Reform Act, but it has yet to provide the necessary funding to implement these reforms. Rosa’s Wall Street Accountability through Sustainable Funding Act would create a new sustainable funding stream for the CFTC that would enable better oversight to curb speculation.
Another tool at our disposal to reduce speculation and provide immediate relief for high gas prices is the release of oil from the Strategic Petroleum Reserve (SPR). Right now, the SPR is filled to more than 95 percent of its capacity and even a small release of oil would curb speculation and immediately reduce oil prices. Similar releases have worked in the past, including an immediate 33 percent reduction in oil prices that followed the 1991 SPR release during Desert Storm. And just last year, at Rosa’s urging with many Members of Congress, the Administration’s most recent release of oil from the SPR resulted in an 8 percent drop in oil prices.
Throughout this record rise in gas prices, the major oil company profits have also reached record levels, while they continue to receive $4 billion of federal subsidies. The Taxpayer and Gas Price Relief Act would put an end to the unnecessary tax preferences and subsidies for oil companies and protect consumers at the pump. During these difficult budget times, the funding for these subsidies could be used to pay down the deficit, invest in energy alternatives, fund home heating assistance or make other investments that create jobs.
Responsible Development of American Natural Gas Reserves
America has some of the most plentiful natural gas reserves in the world, and it is important for our economy that we develop them, while at the same time, making sure we protect the environment and water quality. In the last decade, American natural gas reserves have increased by over 50 percent due to a new drilling technique known as hydraulic fracturing. This technique uses large quantities of water and chemicals to fracture underground shale formations containing natural gas. To protect our drinking water supplies and maintain our nation’s environmental laws—we need to develop natural gas responsibly and safely. The Fracturing Responsibility and Awareness of Chemicals Act will require all companies that drill for natural gas on public lands to disclose the chemicals they use in the hydraulic fracturing process thus allow for the development of American natural gas, while protecting the public’s health and safety.
We also need to make sure that the natural gas recovered in America stays in America to reduce our energy prices and create a new fuel for the next generation of alternatively fueled transportation vehicles. The Keep American Natural Gas Here Act would do just that by prohibiting the export of natural gas recovered from new leases on public lands.
Natural gas could also be used as a transportation fuel if we build the vehicles and infrastructure to support natural gas vehicles. Rosa is a co-sponsor of the New Alternative Transportation to Give Americans Solutions Act, which would provide tax credits to individuals and businesses to encourage more natural gas vehicles purchases and the installation of additional natural gas refueling infrastructure. This bill also encourages automakers to manufacture natural gas vehicles and develop the next generation natural gas engines.
Clean and Renewable American Energy
Currently, 83 percent of the energy used in the United States comes from fossil fuels—leaving our economy very dependent upon foreign energy imports. For economic, national security, and environmental reasons, we need to shift away from fossil fuels and diversify with investments in the next generation of clean and renewable energy technologies.
Shifting toward domestically produced energy, will also create good jobs in America and increase our nation’s energy security. We need to extend tax incentive programs that are proven to encourage new renewable energy projects and the expansion of manufacturing facilities producing the equipment and products used in energy efficiency and renewable energy projects. The 1603 Grant Program for Renewable Energy helped finance 47 renewable energy projects in Connecticut, including the solar panels at the North Haven Health & Racquet Club and the combined heat and power system at the US Surgical Corporation. Additionally the Advanced Energy Manufacturing Tax Credit helped re-equip a manufacturing facility for fuel efficient jet engines and open new manufacturing plants for fuel-cells. It is also important to expand research programs funded through the Department of Energy to advance and further develop hydrogen fuel cells, a growing business in Connecticut.
One common barrier faced by many renewable energy companies is financing, which is why Rosa introduced the National Infrastructure Development Bank Act. This bill would provide a financing mechanism for a wide range of energy projects, including energy transmission, energy efficiency enhancements for existing building, renewable energy, and energy storage. In Connecticut, the Clean Energy Finance and Investment Authority is already using a similar model to finance clean and renewable energy projects in Connecticut.
We also need to make encourage a transition to clean and renewable transportation fuels, which is why Rosa supports creating and expanding the Renewable Fuel Standard (RFS). The RFS reduces our dependence on foreign oil by requiring a minimum volume of bio-fuels to be used or blended into the transportation fuel supply. Additionally, we need to incentivize fuels that not only reduce our dependence on foreign oil, but also reduce emissions, as would be done by Extending the Biodiesel Tax Credit. Biodiesel also has the added benefit of being cleaner than petroleum diesel and is produced domestically. Last year, Connecticut biodiesel manufacturers produced over 5 million gallons of biodiesel and employed nearly 200 people. Extending the biodiesel tax credit will help them stay competitive as the industry continues to mature.
Incentives to Eliminate Energy Waste
Improving energy efficiency and eliminating energy waste will reduce demand for future production and help reduce our dependence on foreign energy imports. Improving efficiency can come in many places and does not have to come from shutting off lights or turning down the thermostat. On average, cars built today are 50 percent more efficient than the cars built in 1980. Automakers have already taken another step forward by agreeing to produce cars that are 80 percent more efficient by 2025.
According to the Department of Energy, buildings in the United States account for about 41 percent of total U.S. energy consumption. Consequently, we also need to encourage businesses and local governments to renovate their existing buildings to eliminate energy waste. Rosa’s Job Creation and Energy Efficiency Act would create a low interest federal loan program to help businesses and local governments finance energy efficiency retrofits projects—such as efficient lighting, windows, building insulation, and efficient heating and cooling systems. Improving the energy efficiency of existing buildings through efficiency retrofit projects will reduce energy costs, protect the environment and create jobs through the retrofit projects. And this can all be paid for with the energy savings achieved through the retrofits.
The residential sector is also critical for reducing energy waste, since private homes account for approximately 54 percent of the total energy use, creating vast potential energy savings from efficiency improvements to private residences. As a result, we also need to encourage homeowners to make energy efficiency investments in their homes. The HOMES Act would do that by creating a rebate program to provide incentives to homeowners for completing energy efficiency retrofits. Under the program homeowners could receive rebates of up to $8,000 if they are able to retrofit their homes to reduce their energy consumption by 50 percent. Additionally, we should provide tax incentives for homeowners who choose to install energy efficient roofs with the Roofing Efficiency Jobs Act.
