[Congressional Record Volume 153, Number 20 (Thursday, February 1, 2007)]
[Extensions of Remarks]
[Page E238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INTRODUCTION OF RENEWABLE ENERGY LEGISLATION

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                           HON. JERRY WELLER

                              of illinois

                    in the house of representatives

                      Wednesday, January 31, 2007

  Mr. WELLER of Illinois. Madam Speaker, I rise today to introduce a 
package of legislation that achieves a comprehensive approach to the 
future of renewable energy. As we move forward with national energy 
policy, I strongly believe we need to start taking steps in a direction 
that will provide consumers with other options other than just oil 
based fuels. With crude oil hovering around $60 a barrel and natural 
gas around $8.00 per btu, renewable energy like wind, solar, biomass, 
ethanol and biodiesel have started to become economically competitive 
sources of energy for our nation's consumers and businesses. By 
advancing the use and knowledge of renewable energy, we can lower 
demand for imported oil and lead our nation towards energy 
independence.
  One of the components I introduced today will push forward an 
aggressive schedule for renewable fuels by mandating the renewable 
content of gasoline to be 25 billion gallons by 2025. Under the energy 
bill, we are mandating that the renewable content of gasoline be at 4 
billion gallons by 2006 which is 2% of total gasoline. Once 
implemented, the ``25 by 25'' initiative would raise that percentage up 
to 12.5%.
  For farmers, the 25 billion gallon requirement means better commodity 
prices for corn and soy and more importantly it means jobs. According 
to the Renewable Fuels Association, a new ethanol plant will: expand 
the economic base of the local economy by $110.2 million, generate an 
additional $19.6 million of household income, support the creation of 
as many as 694 permanent new jobs throughout the entire economy of the 
United States and generate at least $1.2 million in new tax revenue for 
the state and local governments.
  One problem we face in the advancement of renewable fuels is the sub 
par infrastructure we currently have in place. With ethanol and 
biodiesel plants mostly focused within the midwest and with only around 
1,000 fuel stations that carry E-85 transportation fuels, it is 
essential that we provide tax incentives for the construction and 
development of ethanol and biodiesel plants. Another bill that I will 
be introducing, the Renewable Fuels Infrastructure Improvement Act of 
2007, builds upon the relationship between renewable fuels and industry 
that started in the last energy bill. The legislation achieves this by 
providing multiple tax incentives for the construction and development 
of an infrastructure that will be more able to expand past the Midwest.

  The legislation will provide an aggressive 7-year depreciation 
schedule for all ethanol and biodiesel refining equipment. Also 
included within this section is a provision that will expand and extend 
the installation of alternative fuel refueling property that we in 
Congress passed earlier this year. The provision will allow taxpayers 
to claim a more effective percentage tax credit for the cost of 
installing clean-fuel vehicle refueling property to be used in a trade 
or business of the taxpayer or installed at the principal residence of 
the taxpayer. This ramped up percentage schedule would help accelerate 
the construction of the E-85 infrastructure.
  Another piece of legislation I introduced today ensures that 
government agencies will expand their use of renewable fuels. Under 
this bill, departments and agencies will have to purchase ethanol and 
biodiesel where it is competitively priced to gasoline and diesel. In 
the mentality of ``practice what you preach'' it is time for our own 
Federal government to increase their use of ethanol and biodiesel where 
these fuels are reasonably available. In attempting to reduce our 
dependence on foreign oil, it should start right here in our Nation's 
capitol.
  I believe the most innovative legislation that I am introducing is a 
new tax credit that will provide for consumers who purchase a new 
concept vehicle which combines hybrid and flexible fuel technologies 
that will be available to consumers in the near future. It is this 
marriage of these technologies that will create a vehicle that will be 
better steward to our environment and will further reduce our 
dependence on foreign sources of oil. In providing this tax credit, we 
promote a greater sense of innovation for the future of automobiles.
  In addition to renewable fuels, I believe we also need to make a 
serious investment in renewable sources of energy like wind, solar and 
biomass. It is for this reason I have introduced three different bills 
that will make current tax incentives permanent. The residential energy 
efficient tax credit, wind energy production tax credit and the 
renewable energy production tax credit all have been effective 
in promoting the investment and production of renewable energy. With 
energy sources like wind, solar and biomass, the up front costs for 
investment by producers and consumers are high. By giving individuals 
and businesses small incentives, like the $2,000 solar credit, we can 
make it easier for these technologies to be taken advantage of.

  In closing, Madam Speaker, I believe we need to take many different 
approaches in making America energy independent. With the Energy Policy 
Act of 2005, we took steps forward in reducing our dependence on 
foreign oil by creating policy that increased the use of renewable 
energy in tandem with increasing our domestic production of energy 
sources. Due to the energy bill, we have seen over $100 million 
invested in wind energy and four to five new ethanol and biodiesel 
plants in my district. In total, we saw investment in renewable energy 
double in the United States to $68 billion dollars.
  We need this investment in renewable energy to continue. These bills 
are good for farmers, the automobile industry, businesses, consumers, 
the environment and most importantly, the goal of reducing our 
dependence on foreign oil. I believe the legislation that I have 
introduced today, achieves the goals in renewable energy we need to 
achieve. I ask my colleagues to join me in moving forward with this 
innovative approach.

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