A different version of this bill passed the Senate and was signed into law..
The Legislation:
The CLEAN Energy Act ends oil industry subsidies worth $14 billion over ten years by closing tax loopholes, reversing some tax breaks for the largest oil companies, and reinstating some royalty fees for oil and gas companies drilling in the Gulf of Mexico. The savings from these provisions would be used to fund a “strategic energy efficiency and renewables reserve” which would support research and development and promote energy-efficiency, renewable energy resources, and alternative fuels. The specifics of these energy investments would be determined by subsequent legislation. Note that this summary refers only the House version of the bill.
The Middle-Class Position:
The Middle Class Supports. This bill represents an important step in the right direction for an American middle class that is both squeezed by high energy bills and prices at the pump and also concerned about clean air and water and the threat of global warming. Fossil fuels are not a sustainable option for the nation’s growing energy needs, yet substantial public investment is needed to jump start the development and promotion of renewable energy sources and energy-efficient technologies. In the short term, this investment would create jobs producing renewable energy and technology. In the long term, new energy sources and more efficient technology promise environmental and public health benefits, as well as lower costs for the American middle class. The CLEAN Energy Act also funds the investments in an appropriate way: by repealing taxpayer subsidies to the oil industry, which is already making booming profits at the expense of middle-class consumers.
From the Experts:
"The days of our federal government giving free rides to big oil are over. Passage of the CLEAN Act is a signal of change and the sign of a Congress that is ready to meet the challenge to end our nation's dependence on foreign oil. But this is only the first step. Our nation needs to undertake a crash program that makes America the leader in clean energy technology, creates jobs of the future for the next generation of American workers, rebalances our nation's relationship with the global environment and prepares us to meet the challenges of climate change."–Jerome Ringo, President, The Apollo Alliance for Good Jobs and Clean Energy (January 19, 2007)
“I rise as a proud conservative and Republican, as well as a cosponsor, to urge support of H.R. 6… Oil and natural gas are not forever. When we burn them, they are gone. The U.S. has only 2 percent of known oil reserves. We use 25 percent of the world's oil and import two-thirds of what we are using. We pump our reserves four times faster than the rest of the world… there is an urgent need for the U.S. to pursue conservation, efficiency and alternative renewable sources of domestic energy.”-Rep. Roscoe Bartlett, R-MD (January 18, 2007)
“Royalty ‘relief’ for oil and gas production is outdated and unnecessary. At a time when oil prices are sky-high there is no need for the federal government to provide relief and further pad the pockets of big oil companies. As the President pointed out last year the oil and gas industry does not need taxpayer incentives with oil at $55/barrel. Oil prices now hover near and over $70/barrel. Clearly, it is time to end this multi-billion dollar giveaway.”–Jill Lancelot, Co-Founder, Taxpayers for Common Sense (May 16, 2006)
Beyond this Bill:
A study by the Apollo Alliance found that truly reorienting America’s energy economy would require a $300 billion investment over ten years, but would also stimulate $1.4 trillion in economic growth and generate 3.3 million jobs during this time while reducing the nation’s total energy consumption and shifting toward renewable energy sources. This ambitious agenda includes tax incentives to make American manufacturing more efficient, updating building standards to promote the construction of green buildings, and modernizing electrical infrastructure. One immediate next step could include adopting a national renewable electricity standard requiring utilities to increase their use of renewable energy sources. This would lower energy bills for middle-class households and businesses while also reducing greenhouse gases and air pollution.
Total profits of top five U.S. oil companies from 2001-2007: $457.7 billion
Minimum amount the average annual household expenditure for gasoline has increased over the last five years: $1,000
Total new subsidies for the oil and gas industries in the 2005 energy bill: $6 billion
Percentage of Americans who are concerned that the nation’s reliance on foreign oil could negatively affect future price of gas and heating oil: 93
Percentage of total U.S. electricity demand that could technically be met by renewable energy resources by 2020, according to the National Renewable Energy Laboratory: 100
“Clean Energy,” from the Union of Concerned Scientists
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