Mr. Speaker, I thank the gentleman from Michigan (Mr. Ehlers) for yielding to me. Let me say how encouraged I am that five senior Republicans would come together tonight to share different perspectives on the need to secure our energy…
Mr. Speaker, I thank the gentleman from Michigan (Mr. Ehlers) for yielding to me.
Let me say how encouraged I am that five senior Republicans would come together tonight to share different perspectives on the need to secure our energy sources in this country and to help bring the American people along to some of the reforms that are necessary, I think, to secure our future in the world and to create more opportunity. I believe that we have done a lot of good things on this side of the aisle, but I think that we have a whole lot left to be done. And before this energy bill gets back from conference, I think we all need to advocate for quite a few changes.
Let me say that energy and economic development are hand in hand. The gentleman from South Carolina invoked the name of Bill Gates. I would submit that the reason that we balanced the budget a few years ago for a few years in a row was not because we cut spending. We did hold the line on spending for like 3 consecutive years and kept the growth of spending below inflation. But it was because we actually led the world in a particular area of our export economy and information technology and we created such a robust U.S. economy that revenues surpassed expenses, and we balanced the budget. And I would challenge the country that the one great area that we can do that again, as we look over the next 10 to 15 years, is in what I call ``entech,'' energy technologies. Because there are so many energy needs around the world as the population explodes, as third-world countries become industrialized, as people are more mobile, and this global economy that we all live and operate in is increasing the demand for energy, the whole world is looking to us for leadership. And it is an export potential in manufacturing that could lead to the most robust U.S. economy that could actually increase revenues so greatly, because we are so productive, and we are solving the world problems. We could balance the budget again. I do not believe, given today's needs, we can cut spending enough to balance the budget because of homeland security, because of entitlement spending. As a matter of fact, if we eliminate all of the nondefense discretionary funding, we still would have a deficit in this current fiscal year. So we have got to grow this economy, and energy technologies are the way to do it.
Energy, as we have heard already, is a source of many of our problems. But I have get got to tell my colleagues, energy is also the source of the solutions to a lot of our problems, and I am looking forward to the development of technologies. And when we look at this continuum, I love the combination of history and knowledge on energy, but think about the next 100 years and think back on the last 100 years. Man has only been flying a little more than 100 years. That ought to blow people's minds that, in less than 100 years, we can go from Kitty Hawk to people routinely being catapulted into space with a hydrogen system, catapult them into space. They stay out there for a period of time. They reenter the earth's atmosphere in a big ball of fire, and then they safely land and walk away. And except for two great tragedies with Challenger and Columbia, this became routine in less than 100 years. Where are we going to be with technology in the next 100 years? Children ought to look forward to their future. The Jetsons, which was a cartoon we watched, could very well be a reality within the next few decades.
Transportation, though, has to be at the forefront of the energy revolution in this country because two-thirds of the petroleum is used in the transportation sector, and as the gentleman
from South Carolina so well articulated, we have got to look for solutions. I am encouraged by the development of hybrid vehicles. It is the bridge to the hydrogen economy as it develops, and right now, there are more and more automotive systems, cars and light trucks, that are moving to hybrid technologies, both foreign and domestic. And next year, the American consumer will have a host of options.
One of the things that I regretted about the energy bill, and I think several of our colleagues here on our side did not vote for the House version, and I believe we will be able to vote for the conference report when it comes back soon, because the House version did not include the tax incentives to stimulate renewables, alternative fuels, did not extend the tax credit for these hybrid vehicles. And, frankly, we have got people waiting in line, and we need to incentivize more of that so that the manufacturers will be encouraged to make them and consumers will be encouraged to buy them, and we did not do enough in that bill. As a matter of fact, here is what folks need to know, because I have met with President Bush recently and listened to him on this issue: When he sent his proposal over here, 72 percent of the tax incentives in his energy plan were for renewables and energy alternatives, and he really wanted to rachet this up. But, by the time the House got through with it, they had lowered that 72 percent to 6 percent and replaced a lot of the renewables and alternative energy sources with oil and gas. And when they asked the President what he thought about that he said, You do not need to incentivize oil and gas; $2.35 a gallon will incentivize oil and gas. They have got incentives. It is called the marketplace. We need to incentivize the alternatives to oil and gas.
And that is really what we are excited about here, and I believe, when the Senate finishes its work, brings this back, the Republicans in Congress and quite a few good Democrats will come together and pass an energy bill that really moves us towards these alternatives.
Let me tell my colleagues that I look to the private sector to see what they are doing because there is some division at DOE as to whether or not hydrogen is safe and if hydrogen is the solution, and there are still some question marks behind it. But GM and Shell, they do not just throw their money away. They are interested in the bottom line. And they now have 40 hydrogen fuel cell vehicles on the road, a permanent hydrogen station in New York City, a permanent hydrogen station here in Washington, D.C., to demonstrate what can be done.
The challenge, we have heard some of the challenges; another challenge is cost. These units cost $400,000 each. We have got to find ways to bring that cost down to a $40,000 or $50,000 each so that it is cost-effective for the American consumers to jump across this bridge to the hydrogen economy.
I have said that I believe our tax code is the best way to encourage and incentivize manufacturers and consumers to move towards these new sources of energy. Our energy independence, though, is a homeland security issue. I co-chair the Renewable Energy Caucus here in the House, and in the last Congress, we got over half the Members. It is very bipartisan; about 60 percent Democrats, 40 percent Republicans. Many of my colleagues here, I think all of them are members of it. It is so important that we do these things, but I also serve on the Homeland Security Subcommittee of the Committee on Appropriations. Our energy security is a top homeland security issue. As a matter of fact, former national security advisers all came together last month and signed a letter to the President of the United States saying that energy security is a crisis and that it is a national security issue and that we need to address it with the highest level of priority. And there are several crises floating around. We are spending a lot of time talking about them. In my view, this energy issue is right at the end of our nose in terms of a crisis. We have got to mobilize quickly so that we can secure our independence. I do not want to be reliant on the Middle East for petroleum for two-thirds of our transportation needs. And the sooner we act, the sooner we are going to be stable and secure. It is a very important national security and homeland security issue.
We talk about natural gas. The prices have spiked so quickly that now we look at photovoltaics. We look at solar panels for home construction, and because of the rise in natural gas prices, they become cost-effective to put them on their house early. They make solar energy panels in Memphis, Tennessee. Sharp Solar does. And in a lot of places that are cold in the winter, now where natural gas has gone to $7, I think, we can actually put in our building materials these energy-efficient technologies. Go to the National Renewable Energy Lab in Colorado and see the breakthroughs. One will be stunned as to how quickly, as the gentleman from Michigan (Mr. Ehlers) has said, these things are advancing. A host of things. Wind power, we are building more and more windmills in the Tennessee Valley. TVA has the green power switch option. More and more consumers are signing up for that. Pay a little more but know that they have got totally renewable energy coming into their home. It is a popular thing. And, frankly, Republicans leading with a national energy policy for the first time since the late 1970s are doing the right thing for the environment.
But that brings me to a problem we have, and that is in the electricity sector, the cleanest, most efficient electricity in this country is nuclear. In France, these people are very environmentally sensitive. They actually get it, and over 70 percent of the electricity in France is provided by nuclear, but they do prototype their design. They eliminate the margin of error, and they do the same thing over and over again. We need to do that here, and we need to go back into the nuclear business. We have the waste stream problems worked out with Yucca Mountain. We need to be bold enough to say, if we are going to secure our energy sources, and the main thing is there is absolutely no emissions with nuclear. We have clean air. We could actually participate in Kyoto if we would replace fossil with nuclear, and we are smart enough to do it. Dadgum, if the French are smart enough to do it, then we are smart enough to do it.
The House Republicans have a strong energy plan. By the time we finish, we are going to do extremely well. We have got several deliverables from renewable energy and energy efficiency, moving to the hydrogen economy, making sure that our electricity grid is reliable, expanding nuclear power and cleaning up the coal technologies in this country. I am proud to serve with these men and advocate for energy security. I believe we are going to actually send that bill to the President and do the right thing, grow the economy and hopefully ultimately have revenues pass expenses again.