Mr. Speaker, there is no denying that America is suffering from an energy crisis. My constituents are paying record prices at the pump, they are paying higher prices for food and commodities. This problem is only going to get worse this…
Mr. Speaker, there is no denying that America is suffering from an energy crisis. My constituents are paying record prices at the pump, they are paying higher prices for food and commodities. This problem is only going to get worse this winter when they will be paying 15 percent more to heat their homes than last year. With family budgets already being stretched to the breaking point, Congress needs to act and to act quickly to address this problem. This will require both long term solutions that decrease our reliance on fossil fuels and imported fuels and short term solutions which will help bring down the price of energy now.
I have heard from a number of my constituents that a proven way to address both our short term and long term energy costs is to renew the renewable energy tax credit and the production tax credit that are due to expire at the end of this year. We already know how effective these tax credits are. For example, wind energy is not only a significant component of the global warming solution, but also a powerful engine in our economy. Since January 2007, more than 40 wind industry manufacturing facilities have been announced, brought online, or expanded in the U.S., creating over 9,000 jobs and one billion in new manufacturing investment. When the production tax credit lapsed in 2000, 2002 and 2004, wind capacity installation dropped 93 percent, 73 percent and 77 percent, respectively, from the previous year. It is unwise to allow the wind production tax credit to expire and allow this bright spot in our economy to grind to a halt.
The solar energy production tax credit and the solar residential tax credit have been instrumental in helping my home state of New Jersey become a leader in the production of solar energy technology. New Jersey is also one of the nation's fastest growing solar energy markets. The extension of the solar energy tax credit will spur job growth in communities and would help New Jersey reach its goal of having 20 percent of its electricity derived from renewable sources by the year 2020. I have heard from companies in my district that if we don't extend the production tax credit they will have to shut down new solar projects or charge more for energy.
The tax credit for consumers has been equally effective in saving our constituents
thousands of dollars on their energy bills. For example, I was recently contacted by Phyllis who lives in Marlboro, New Jersey. By utilizing the residential energy investment tax credit, Phyllis was able to install 55 solar panels on the roof of her home. Phyllis also used the investment tax credit to purchase a high efficiency heating and cooling system. Together these investments have decreased her energy costs to one fourth the cost she was paying the year before. Phyllis is also selling the excess energy her solar panels gather back into the grid and has made over $2,000 this summer. We need to encourage more Phyllises--that is how we will break our dependence on 19th century technology.
The renewal of these tax credits will also help to increase our economy by creating hundreds of thousands of jobs. According to a recent study, if the renewable energy tax breaks expire at the end of this year, over 116,000 jobs in wind and solar industries would be lost in one year. Today, when the predicted economic growth forecast is an anemic pace of 1.6 to 2 percent and unemployment is likely to continue to climb, we in Congress should do everything we can to ensure job growth and preserve jobs.
Renewable energy tax credits are instrumental to ensuring growth in the renewable energy sector, bolstering our national economy, providing us with home growth energy and have the potential to save our constituents thousands on their energy costs. It would be a disservice to our constituents if we do not act prior to Congress adjourning to extend and expand renewable energy tax incentives. Therefore, I have introduced legislation today that will extend the renewable energy tax credit, production tax credit, and the hybrid vehicle tax credit for ten years. This legislation would help to grow our economy and provide for a secure energy future.
Mr. Speaker, I rise today in opposition to H.R. 6899, The Comprehensive American Energy Security and Consumer Protection Act.
Today's energy crisis is based on a generation of failed policies which have made us excessively dependent on foreign fuels. We must learn from the mistakes of the past and find a new direction that will decrease our reliance on gas and oil and move our energy policy forward. Today my constituents in New Jersey are paying more than $3.50 at the pump. The steep increase in gas prices is stretching family budgets to the breaking point, and I am deeply concerned about the impact that prices are having on American consumers. Congress needs to pass comprehensive legislation that will help families struggling with rising gas and fuel oil prices in the short-term, while developing a long-term strategy that decreases our dependence on foreign oil and reduces our greenhouse gas emissions.
The legislation that we are considering today, the Comprehensive American Energy Security and Consumer Protection Act, has some good provisions, provisions that could help to move our country's energy policy in the right direction. I consistently have supported many of these provisions in the past. I have voted in favor of renewing the renewable energy tax credits three times this Congress. I have voted to repeal the billions of dollars in tax breaks that have been given to oil companies at the expense of the American taxpayer and to invest this money in clean, renewable energy. I have voted to provide relief to our public transit agencies which are struggling to meet the skyrocketing demand for public transportation. Twice I have voted to encourage oil companies to drill on the 68 million acres of the lands open for drilling both onshore and offshore that currently are leased by oil companies for production, yet remain unused. I have supported legislation which would help to increase supply for oil and decrease demand for oil including releasing oil from the Strategic Petroleum Reserve, instituting a national Renewable Portfolio Standard, and increasing the efficiency of buildings
and appliances. I have consistently supported comprehensive reform of our nation's energy policy. Last year I supported H.R. 6, the Energy Independence and Security Act, a law that will make a real difference in moving our energy policy forward by raising the Corporate Average Fuel Economy Standard. However, unlike H.R. 6, the legislation before us today is not the comprehensive policy that we need to move our country forward and I cannot support it.
I believe that drilling in environmentally sensitive areas, such as our coastline, is unwise. Some in America claim that drilling--here, now, and everywhere--will bring instantaneous relief to families paying painful gas prices. The facts do not support this claim. ``Drill baby drill'' is not an energy policy, it is a slogan to hide behind to avoid corning up with a real policy which will help America move towards sustainable, affordable energy. There is no easy solution to this crisis, and the evidence shows that drilling in OCS would save pennies per gallon years from now. We can begin now, not years from now, to move to sustainable, affordable energy. Fortunately, the environmental and financial requirements for an oil or gas company to drill are strong enough that few if any wells will be drilled under this legislation, and I expect smarter, more comprehensive legislation will follow next year.
We will never be able to drill our way to energy independence. The United States consumes 25 percent of the world's oil but only possesses 3 percent of the world's oil reserves. Even if we drilled on every single square inch of land where oil is assumed to exist we will never be able to meet our national demand. Moreover, drilling 50 or 100 miles off our shores, as H.R. 6899 proposes, could be detrimental to the preservation of our environment for future generations. In New Jersey, tourism along our shore brings $35 billion to the state's economy. A possible oil spill from drilling of the coast of New Jersey, Virginia, or Delaware would be devastating to my state's 120 miles of shoreline. I am unwilling to sacrifice our nation's environment for drilling which will do nothing to decrease prices at the pump.
Since I was elected 10 years ago I have consistently opposed drilling in environmentally sensitive areas including the Outer Continental Shelf. I have a strong record for voting in favor of preserving our environment and developing new energy sources that are clean, safe, and sustainable. This is really the only way that we can lower our gas prices in the long term. I will not support legislation which will continue the failed policies of reliance on fossil fuels, and I oppose