House Passes Legislation Aimed at Investing in Alternative Energy, Lowering Gas Prices

Alternative Energy Tax Credits Renewed and Expanded; Individual Tax Relief Extended for Millions

May 21, 2008 -- WASHINGTON, DC - This week, as the price of oil soared past $130 per barrel, Congressman Steny H. Hoyer (D-MD) joined a majority in the U.S. House to approve two measures aimed at addressing America's immediate energy needs and investing in the nation's long-term energy future.

Wind farm, Texas: Photo by fieldsbh (CC)

On Tuesday, the House approved the Gas Price Relief for Consumers Act (H.R. 6074) to hold the OPEC monopoly accountable for price fixing that flouts the free market and artificially drives up the cost of crude oil.

And today, the House passed the Renewable Energy and Job Creation Act of 2008 (H.R. 6049), which extends and expands vital tax credits for energy efficient products and clean renewable energy production, including the growing wind and solar energy industry in the State of Maryland.

"The explosion of gasoline prices is squeezing Maryland families who are already struggling with climbing costs for food, health care and other necessities," stated Rep. Hoyer. "The Democratic-led Congress is working to do everything reasonably possible to address these costs in the short-term. At the same time, we must continue to encourage the production of alternatives, such as wind and solar, and to improve energy efficiency. While not a panacea to today's high gas costs, these measures are an important step forward and represent one of many actions this Congress has taken to address rising gas prices and make American energy independent."

With the U.S. importing nearly 6 million barrels of crude oil per day from Saudi Arabia and other OPEC countries, American consumers remain at the mercy of OPEC nations in how much they pay to fill up their tanks. The Gas Price Relief for Consumers Act authorizes the Justice Department to take legal action against OPEC state-controlled entities that participate in conspiracies to limit the supply or fix the price of oil.

To reduce the nation's dependence on foreign oil and to protect the environment, the second measure - the Renewable Energy and Job Creation Act - would increase the production of renewable fuels and electricity, and encourage greater energy efficiency. Namely, it extends and expands tax incentives for renewable electricity, energy and fuel, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances.

The investment in alternatives is already paying off. A May 20, 2008 Financial Times article reports that, "The US is starting to break its ‘addiction' to foreign oil as high prices, more efficient cars, and the use of ethanol significantly cut the share of its oil imports for the first time since 1977." In addition, experts estimate that biofuel blends are keeping gas prices about 15 percent lower than they otherwise would be now.

Also part of the Renewable Energy and Job Creation Act is legislation to extend vital tax relief to millions of families, including deductions for: State and local sales tax, tuition and other education expenses, out-of-pocket expenses by teachers, and property taxes for non-itemizers; as well as relief for more than 12 million children through an expansion of the refundable child tax credit to taxpayers earning $8,500 a year.

The legislation passed this week builds on several Democratic-led efforts to address the rising price of gas and invest in America's long-term energy future. Click here for a one-page summary (pdf file).

Source: Rep. Steny Hoyer

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