U.S. Representative Henry Cuellar voted today in favor of the Comprehensive American Energy Security and Consumer Protection Act, a sweeping measure to increase American energy independence through the growth of renewable energy, increased energy efficiency, conservation of current resources, and environmentally-sensitive domestic drilling. If made law, the bill would also create more than 100,000 American jobs and provide tax incentives to create other new jobs in green energy production. The bill passed the House by vote of XXX to XX.

“This bill addresses the energy concerns of Americans across the country,” Congressman Cuellar said, “And I support a comprehensive energy plan that includes domestic drilling in an environmentally sound way. With a broad and inclusive plan that utilizes domestic resources and invests in alternative energy, we can begin to alleviate today’s oil prices and prepare for efficiency, conservation and energy independence in the future.”

Expands Domestic Energy Supply, Environmentally-Sensitive Domestic Drilling

In a multilateral approach, H.R. 6899 would permit domestic drilling between 50 and 100 miles offshore and increase domestic oil production across America and in Alaska. As an environmental precaution, national marine monuments and sanctuaries would be permanently withdrawn from oil and gas leasing. In order to proceed with drilling between 50 and 100 miles offshore, states would have to “opt-in” by enacting laws to authorize drilling off their coastlines. Drilling in federal waters more than 100 miles offshore would be permitted without a state choosing to opt-in.

Inland, the bill would require the U.S. Department of the Interior to conduct annual lease sales in the National Petroleum Reserve in Alaska (NPR-A) to speed development and production and would ban exports of Alaskan oil outside the United States. Additionally, the measure calls for the completion of the oil pipeline infrastructure into the NPR-A and the completion of the Alaska Natural Gas Pipeline, efforts that could create up to 100,000 jobs.

Congressman Cuellar’s Provisions Ensure Environmental Responsibility in Offshore Drilling

Congressman Cuellar added provisions to the bill to ensure that drilling would be carried out in a manner that provides for protection of the coastal, marine and human environments of state coastal zones and Outer Continental Shelf. All federal regulations applicable to offshore drilling would be reviewed to ensure environmentally sound oil and gas operations.

Invests in Renewable Energy, Creates American Jobs

The legislation would also establish a market-based national renewable electricity standard by requiring electric utilities to use renewable energy or to purchase renewable utility credits for 15 percent of the electricity they distribute. The measure is expected to save American consumers between $13 - $18 billion cumulatively by the time utilities will be required to meet the standard in 2020. Currently, more than half of the 50 states have enacted a renewable energy standard.

Additionally, the bill incorporates $18 billion in tax cuts and credits to create green jobs and support American energy independence. It includes incentives for plug-in hybrid vehicles, solar and wind production, energy efficient homes, buildings, and appliances. Moreover, the bill creates a Strategic Renewable Energy Reserve to invest in clean, renewable energy resources and alternative fuels, promote new energy technologies, develop greater efficiency and improve energy conservation. 

The legislation also promotes natural gas and E85 infrastructure with incentives for installing natural gas and alternative fuel pumps in service stations and in homes. E85 is composed of 85 percent ethyl alcohol (ethanol) and just 15 percent petroleum and is designed for use in flexible fuel vehicles. More than 6.8 million light-duty flexible fuel vehicles are currently operated in the United States by private citizens, businesses and government.

Increases Conservation and Energy Efficiency

In an effort to increase conservation of current resources, H.R. 6899 strengthens national energy efficiency codes for buildings by calling upon the U.S. Department of Energy and states to update standards for new commercial and residential buildings. The measure mandates a 30 percent improvement in minimum building energy standards by 2010 and a 50 percent improvement by 2020. The building sector alone accounts for approximately 48% of all energy consumed in the United States, and increased building standards could save consumers more than $210 billion by 2030.

Furthermore, the bill provides incentives to lenders and financial institutions, including the Federal Housing Administration, to provide lower interest loans to consumers who build, buy or remodel their homes to improve their energy efficiency. The average American consumer spends 9.7% of their annual income on energy, and low-income households spend more than 16%.

The bill also reduces transit fares for commuter rail and buses and expands service through $1.7 billion in grants to transit agencies for the next two years. These funds would be available to ease the operating costs of public transportation in both rural and urban areas.

Fiscal Responsibility

H.R. 6899 is fully compliant with PAYGO, a pay-as-you-go budgetary restriction enacted by Congress that requires all increases in direct spending or decreases in revenue to be offset by other spending decreases or revenue increases. This legislation will not affect the national deficit.