From D.C. to Maine | As energy prices heat up and the election season approaches, Mainebiz asked Rep. Tom Allen and Sen. Susan Collins to weigh in on federal and state energy policies
Rep. Tom Allen
Democratic challenger for the U.S. Senate
Whether I’m in Bangor or Sanford, Port Clyde or Van Buren, the first question most people ask is: What are you doing about fuel prices? Record high gasoline and heating oil costs have stretched the budgets of Maine families and small businesses. This coming winter will be worse, as heating oil alone has nearly doubled in price.
No issue is of greater concern to Mainers than fuel costs. In 2008, they have a choice between two candidates whose records clearly demonstrate different priorities and values. In 2005, Susan Collins voted for the energy bill written in secret by Vice President Cheney and lobbyists for Big Oil. I voted against it.
Senator Collins voted to provide billions in tax breaks and subsidies for the oil and gas industries — the most profitable companies in the nation. I voted to roll back these benefits for Big Oil and use the funds to bring relief to families and small businesses and invest in new fuels and technologies.
My comprehensive energy plan has two fundamental objectives. First, we must act now to bring relief from soaring fuel prices. Second, we must put America on a clear path to energy independence.
To make sure that the poor, the disabled and the elderly on fixed incomes survive the winter, Congress must fully fund the LIHEAP and Weatherization programs. The Bush Administration proposed to cut both.
But it is not just the disadvantaged who fuel costs hit hard. We must provide relief for middle class families fighting to make ends meet as fuel prices cripple their budgets.
I introduced The Home Heating Fuels Cost Relief Act to provide a $2,000 refundable tax credit toward the price of home heating oil and provide up to $10,000 in low-interest loans for families to weatherize their homes.
Maine’s farmers, fishermen, truckers and other small businesses are the backbone of our state’s economy, but soaring gasoline and heating oil prices mean oceans of red ink on their balance sheets.
I introduced The Small Business Fuel Cost Relief Act for eligible businesses to claim a tax credit for the cost of gasoline, diesel , natural gas, and heating oil over the price on Labor Day 2004, adjusted for inflation, and to raise the IRS Standard Mileage Rate for business owners who use their vehicles for business.
To drive down fuel prices now, I have called for release of 100 million barrels of oil from the nation’s strategic petroleum reserve. I have co-sponsored the Federal Price Gouging Prevention Act authorizing the FTC to punish those who artificially inflate the price of energy. The House has passed the bill, but Big Oil’s friends have stalled it in the Senate. I also support the Close the Enron Loophole Act to go after energy speculators whose clandestine, high-rolling practices drive up the cost of oil by as much as $1 per gallon.
Any long-term plan for energy independence must greatly increase domestic oil and natural gas production. Big Oil drills on less than one-third of the 90 million acres it already leases. We need a responsible drilling strategy that forces Big Oil to start drilling its other 68 million acres to increase the supply of American oil in the marketplace and bring prices down.
We also know that we cannot drill our way to the sustainable, affordable energy future we need for economic growth and prosperity.
My plan will increase vehicle fuel economy standards to 55 miles per gallon by 2030, modernize our electric grid and invest in new technologies to free us from dependence on polluting fuels. With our abundant wind, tidal, biomass and other energy resources like ethanol made from cellulose, Maine can be at the forefront of the new energy economy, creating new, good-paying jobs for Maine workers.
For nearly eight years, the Bush-Cheney Administration, helped by supporters in Congress like Susan Collins, wasted time and money in the service of Big Oil. It’s time for leadership to provide Maine families and small businesses with the relief they need now from soaring fuel prices. It’s time for change that will put Maine and America on the path to a reliable, affordable and independent energy future.
Sen. Susan Collins
Republican incumbent for the U.S. Senate
Our nation is experiencing an energy crisis. As I visit communities throughout Maine, I hear time and again that the high cost of energy is imposing a tremendous burden on so many families. Energy prices are a major reason for our economic downturn.
But rather than deal with this crisis in a meaningful way, Congress voted to adjourn and take the month of August off. This is unacceptable.
I voted against this motion to adjourn, which passed the House by one vote. Prior to adjourning, a bipartisan group of Senators introduced a consensus energy plan that would increase domestic production to help achieve energy independence and combat high prices. I support this plan and believe it is a promising step forward in addressing the energy crisis.
Oil is not our nation’s future, but it is our present. We must immediately produce more, but our step forward must also include conservation and pursuing alternative energy sources.
This consensus bill provides for increased production in the Gulf of Mexico and off the coasts of Virginia to Georgia, while prohibiting any drilling in the Gulf of Maine. It also leaves in place the current moratorium on drilling anywhere off New England’s coasts — moratoria I strongly support.
Expanded production from the Gulf of Mexico could quickly yield results because the infrastructure of pipelines and refineries already exists.
This plan includes environmental safeguards and protections for states that decide against drilling. It also includes my proposal to double funding for the Weatherization Assistance Program. WAP has proven to be an effective resource to help families weatherize their homes and decrease energy costs by 32%.
Similar to my comprehensive “Energy Assistance Act,” the bipartisan plan would eliminate needless tax breaks for big oil companies, which are reporting multi-billion dollar profits. This is an action that I have long advocated, most recently with a bipartisan amendment to the FY09 Budget. The billions of dollars from these big oil subsidies would be better spent on tax credits for consumers who invest in energy conservation and for increasing production of renewable energy.
The plan also includes tax incentives for the purchase of hybrid vehicles and other energy-saving measures.
In looking ahead to our future, there are many great ideas to help us achieve energy independence, a goal that I believe America should aim to reach by 2020. For example, T. Boone Pickens testified before the Homeland Security Committee, of which I am ranking member, about the potential of wind energy. His plan, which deserves careful consideration, would reduce the country’s dependence on foreign oil by an estimated 38% by using wind energy to generate electricity. He proposes increasing the use of natural gas for transportation while our nation continues to pursue alternatives.
There is also promising wind energy development right here in Maine. University of Maine Professor Habib Dagher, an expert on off-shore wind and geothermal energy, testified that Maine is well positioned to help lead us into this future. He called the Gulf of Maine the “Saudi Arabia of Wind,” an advantage that could enable Maine to diversify its electricity supply and decrease reliance on heating oil. Deep-water wind production, out-of-sight from land, could provide an abundant source of renewable energy while creating thousands of new jobs.
This hearing addressed one of the “Three W’s” of alternative energy: wind, water and wood. There is also potential in generating energy through the power of our tides and ocean currents. I am continuing to press for my tax credit proposal for the purchase of clean-burning wood and wood pellet stoves, which would help reduce home heating costs.
Congress should also look at the compelling evidence that excessive speculation of futures markets is one factor, among many, causing high energy prices. Unlike commercial traders such as heating oil dealers and farmers, speculators are noncommercial traders who invest solely for financial gain. They do not produce or take delivery of oil or agricultural products. Sen. Joe Lieberman and I held hearings on this matter and introduced legislation that would take strong steps toward countering excessive speculation.
Our nation does not need a Republican or a Democratic energy plan. We need an American energy plan. Congress must consider plans such as the bipartisan consensus energy plan. And it must do so immediately.
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