Congressman McCaul, House Republicans Unveil American Energy Act

AUSTIN – With gas prices still hovering above four dollars per gallon and no relief in sight, Congressman Michael McCaul (R-TX 10) took an economically responsible step toward giving Texas families relief by sponsoring the American Energy Act. The bill will increase the supply of American-made energy, improve conservation and efficiency, and promote renewable and alternative energy technologies. It is consistent with Rep. McCaul’s "all of the above" approach to becoming energy independent and bringing down gas prices.

"People in my district and across the country are suffering from an energy crisis that we can clearly get out of," said Congressman McCaul. "This is the way out. This is the only comprehensive solution that will increase our domestic oil and gas supply so that we are no longer at the mercy of buying more expensive oil from other countries. And just as important, it encourages both individuals and companies to use and develop alternative fuels so we can eventually wean ourselves off fossil fuels."

Congressman McCaul joined fellow House Republicans on the steps of the Capitol unveiling the American Energy Act, and demanding that the Democratic leadership grant a vote on the package of bills. The Act would increase the supply of American-made energy in environmentally sound ways. The legislation would:

Open our deep water ocean resources, which could provide an additional 3 million barrels of oil per day, as well as 76 trillion cubic feet of natural gas;

Open the Arctic coastal plain, which could provide an additional 1 million barrels of oil per day;

Allow development of our nation’s shale oil resources, which could provide an additional 2.5 million barrels of oil per day; and

Increase the supply of gas at the pump by cutting bureaucratic red tape that hinders the construction of new refineries.

To improve energy conservation and efficiency, the legislation will:

Provide tax incentives for businesses and families that purchase more fuel efficient vehicles;

Provide a monetary prize for being the first to develop an economically feasible, super-fuel-efficient vehicle (reaching 100 miles-per-gallon); and

Provide tax incentives for businesses and homeowners who improve their energy efficiency.

To promote alternative and renewable energy technologies, the legislation will:

Spur the development of alternative fuels through government contracting, the repeal of the "Section 526" prohibition on government purchasing of alternative energy and promotion of coal-to-liquids technology

Establish a renewable energy trust fund using revenues generated by exploration in the deep ocean and on the Arctic coastal plain

Permanently extend the tax credit for alternative energy production, including wind, solar and hydrogen

Eliminate barriers to the expansion of emission-free nuclear power production

Polls have indicated that a vast majority of the American people favor a comprehensive energy plan that includes drilling in the Outer Continental Shelf, in mountain shale, and in the Alaskan Arctic region, which are currently off limits. Yet Democrats who control congress have denied a vote that would unlock billions of barrels of oil and trillions of cubic feet of natural gas that would put our country well on the road to energy independence and lower gas prices.

The price of gas has increased 75% since Democrats took control of Congress 18 months ago. Gas sold for $2.33 per gallon in January 2007. According to the U.S. Bureau of Labor Statistics, gas is significantly eating into Americans’ bank accounts. In 2005, when gas sold for $2.27 per gallon, Americans spent 4.3% of their income on gasoline and motor oil. Using today’s prices, all else equal, Americans are now spending 7.78% of their income to drive.