[Congressional Record Volume 154, Number 126 (Monday, July 28, 2008)]
[Senate]
[Pages S7575-S7576]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 3349. A bill to increase energy assistance for low-income persons, 
to extend energy tax incentives, and for other purpose; to the 
Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today to introduce the Energy 
Assistance Act of 2008, legislation which would assist people who want 
to invest in energy conservation and alternative energy technologies 
and help set us on a path toward energy independence.
  As I visit communities around the State of Maine, I hear time and 
again that the high cost of energy is causing a crisis for many of our 
citizens. Rapidly increasing prices for home heating oil, gasoline and 
diesel fuel are a huge burden for many families, truckers, and small 
businesses. High oil prices affect virtually every corner of the 
economy, in Maine and throughout the country, and are a significant 
cause of the current economic downturn.
  Mr. President, I am concerned that in this difficult economy, 
investments in energy conservation and alternative energy improvements 
are simply too costly for many American families and small businesses. 
For example, under the present code, taxpayers who install energy 
efficient windows receive a 10 percent tax credit, up to $200, and 
taxpayers who install solar water heating systems receive a credit of 
30 percent, up to a total of $2000. In both instances, the investment 
which must be made by the taxpayer far exceeds the credit amount.
  With oil prices as high as they are, most families and small 
businesses are already scrimping and saving to make ends meet, and they 
do not have the money to finance the gap between the tax credit we 
provide and the cost of the investment. Ironically, the higher oil 
prices climb, the harder it will be for taxpayers to bridge this gap.
  The legislation I am introducing today calls for additional loan 
authority to support current Federal programs that help families and 
small businesses finance energy efficiency improvements. It also would 
provide much-needed grants for low-income individuals who cannot 
benefit from either tax credits or low-interest loans. These proposals, 
taken together, would go a long way toward achieving greater energy 
efficiency and reducing our Nation's dependence on foreign oil.
  The loan authority I am proposing would expand existing Federal 
programs that make low-interest loans to individuals and small 
businesses for energy efficiency improvements. This new loan authority 
would be made available through a new energy assistance revolving loan 
fund within the Treasury Department. Individuals who make less than 115 
percent of the median area income would be able to apply for low-
interest loans to cover the difference between the tax credits 
available for energy efficiency improvements and up to 90 percent of 
the cost of those improvements. The Federal agencies can make these 
loans directly, or through their lender networks.
  USDA, HUD, and other Federal agencies already have programs that can 
make loans of this kind to individuals. Small businesses can seek low-
interest loans for energy efficiency improvements under existing loan 
programs such as the SBA's 7(a) program. The revolving loan fund called 
for by my bill will enable these agencies to offer more loans to the 
individuals and small businesses.
  It is also important that we provide assistance to low-income 
individuals who do not have the income to benefit from tax credits, or 
who cannot afford to finance energy improvements even with low-interest 
loans. These individuals, especially, are still reeling from last 
winter's high energy prices, and it is critically important that they 
receive assistance before cold weather sets in again. To help those who 
are most in need, my bill would provide an additional $500 million in 
funding this year for grants for energy efficiency, weatherization, and 
renewable energy technology, and would double funding for the 
Weatherization Assistance Program. These grants will finance 
investments that will decrease energy prices for these citizens for 
years to come and are a wise investment.
  My legislation also includes several proposals I have long advocated. 
I have included these proposals so that this bill captures an overall 
picture of the energy challenges that our Nation faces. For example, 
this bill extends important tax incentives for renewable energy and 
energy efficiency that have expired, or are about to expire. These 
provisions include the renewable energy production tax credit, Clean 
Renewable Energy Bonds, tax benefits for energy efficient buildings, 
products and power plants, the tax credit for Plug-In Hybrid vehicles, 
the exemption from the heavy vehicles excise tax for idling reduction 
units and advanced insulation, and energy efficiency tax credits for 
homes.
  My bill would also provide a $500 tax credit to help consumers 
purchase and install new clean burning stoves, as well as efficient, 
clean wood pellet stoves, similar to a bill I introduced

[[Page S7576]]

with Senator Crapo earlier this year. This new tax credit reflects the 
reality that with oil prices soaring, wood is again the fuel of choice 
for many families throughout the country, just as it was during the 
height of the oil crisis in the 1970's.
  I urge my colleagues to work together in a bipartisan way so that we 
can help Americans overcome the challenge of high oil prices and 
restore and strengthen our Nation's economy.
                                 ______