[Congressional Record Volume 146, Number 32 (Tuesday, March 21, 2000)]
[Extensions of Remarks]
[Page E364]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


   INTRODUCTION OF THE FUEL ENERGY AFFORDABILITY AND CONSERVATION ACT

                                 ______
                                 

                        HON. JOHN ELIAS BALDACCI

                                of maine

                    in the house of representatives

                        Tuesday, March 21, 2000

  Mr. BALDACCI. Mr. Speaker, I rise today to introduce the Fuel Energy 
Affordability Act. I am pleased to have nearly two dozen of my 
colleagues joining me as original co-sponsors of this important 
legislation. The bill takes a two-pronged approach to address issues 
that have arisen as our constituents cope with dramatically increasing 
costs of diesel fuel, heating oil and gasoline.
  In recent testimony before the House Subcommittee on Energy and 
Power, the Director of the Petroleum Division at the Energy Information 
Administration indicated that U.S. crude oil and gasoline inventories 
are at alarmingly low levels not seen in decades. In addition, we have 
seen the prices of these products rise over the last year from about 
$12 per barrel to nearly $34 per barrel in early March.
  While there has been some slight moderation in this area, the 
combination of very high prices and very low inventories has had a 
severe impact on consumers in the State of Maine and across the nation. 
You may recall the sharp surge in home heating oil and diesel prices 
the Northeast experienced in January. Today, gasoline prices still 
hover near the $2.00 per gallon mark in many areas.
  When you live in a state where temperatures in January frequently dip 
below zero, dramatic increases in heating oil prices are a very serious 
matter. For people on fixed incomes, it presented a life-threatening 
choice between paying for delivery of heating oil or buying medicine, 
between heating the house and buying groceries.
  Maine's potato farmers have also seen their livelihoods threatened 
because trucks could not afford to make the trip to northern Maine to 
get the crop to market. This high price of diesel caused many truckers 
to stay off the roads, dramatically affecting delivery of goods 
throughout the country.
  Finally, the high cost of gasoline presents a threat to Maine's 
tourism industry. Maine's natural beauty and scenic attractions bring 
in more than $3 Billion of revenues to my state each year. As gas 
prices creep higher some families are being forced to postpone 
vacations or stay closer to home. This could have a devastating impact 
on Maine's economy, and on the more than 12,000 jobs that depend on 
tourism.
  Since the beginning of the year, there have been a number of 
different options under discussion for dealing with increased fuel 
prices and low inventories. The Fuel Energy Affordability and 
Conservation Act which I am offering today seeks to get a the problem 
from two different angles.
  First, my bill will address the problem of major spikes in fuel 
prices by giving the Secretary of Energy the clear authority to draw 
down the Strategic Petroleum Reserve when oil and gas prices rise 
sharply due to anti-competitive activity. This action provide the means 
by which the Administration can act to lower and stabilize prices, 
particularly during times of acute need.
  Second, my bill will address the issue of consumption by encouraging 
conservation. It will provide a non-refundable income tax credit of 20% 
for expenses of up to $10,000 incurred by the taxpayer for qualified 
energy efficient improvements to a principal place of residence.
  This credit will also apply to small businesses with average gross 
receipts of up to $10 million for the term of the credit. The credit 
would be available for expenditures made between January 1, 2000 and 
December 31, 2004.
  The covered improvements either alone or in combination must improve 
annual energy performance by at least 30 percent and would include 
energy efficient building envelope components such as windows, walls, 
and roofs, and any energy efficient heating, cooling or water heating 
appliance. Certification of improved energy efficiency could be made by 
the contractor who made or installed the improvements, a local building 
regulatory authority, or a qualified energy consultant.
  With continued price volatility expected through the summer, and 
possibly into the fall, we must take steps now to mitigate the impact 
this could have on the economy, commerce, tourism, and the states we 
represent. While this legislation does not have all the answers, I 
believe that it takes a good step forward. I urge my colleagues to join 
me in supporting this legislation.

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