Issue Position: Energy

Issue Position

By: Tim Walz
By: Tim Walz
Date: Jan. 1, 2014

America needs to transition to a clean energy economy and southern Minnesota is uniquely positioned to lead the way in this transition. I firmly believe that American ingenuity will allow us to meet our energy needs, create jobs, and end our dependence on foreign oil. By working towards a sustainable and renewable energy economy we can ensure a brighter future for all Americans.

I believe we need a comprehensive strategy to meet our energy needs. That's why I have been proud to participate in the Bipartisan Energy Working Group in the House of Representatives and work on legislation that would allow us to take control of our energy future. And we discovered that when the bickering ended and the tired old slogans were put on the shelf, we were actually able to put together a balanced, reasonable approach to solving our nation's energy crisis.

In May 2011, we introduced a bipartisan energy bill, H.R. 1861, the Infrastructure Jobs and Energy Independence Act. The basic premise of the bill is simple: take the royalties from expanding access to our domestic oil supply and invest them back into America.

Our bipartisan energy bill:

Invests in clean American energy
Rebuilds America's aging locks, dams, bridges and roads
Creates U.S. jobs -- both in the short and long term
Cleans up the environment
To read the text of this legislation, please click here.

To read a section-by-section summary, please click here.

Energy Independence

As our population and communities expand, demand for energy production in the United States continues to increase rapidly. As demand increases, so do energy costs, forcing utility bills through the roof.

I have heard from many constituents who are concerned about the rising cost of energy and the need to become energy independent, so the United States is not reliant on other countries, including some of our enemies, to supply our energy. Many also want the United States to speed up our research on alternative, clean sources of energy, from solar and wind power to clean coal technology.

I strongly believe that we must invest in alternative sources of energy and develop new, innovative technology that will reduce our dependence on foreign oil and put us at the forefront of the clean energy economy worldwide. By doing this research and development, we will create new clean energy jobs. These jobs will be in all sectors, from engineering and science to marketing and business administration, and will help support the next generation of energy and power. And, we will reduce our dependence on foreign countries for our energy, which is a critical goal of our national security strategy.

Last Congress I worked with a group of bipartisan legislators and introduced H.R. 1861, the Infrastructure Jobs and Energy Independence Act. The basic premise of the Act is simple: take the royalties from expanding access to our domestic oil supply and invest them back into America. We need to eliminate our dependency on these foreign oil companies and keep the prices at the pump down to a minimum for all citizens. The bill would extend important tax credits, such as the production tax credit (PTC). The bill would also establish the "Energy Independence and Security Fund", which will fund advanced research projects, wind energy, solar energy and advanced vehicle research.

We must continue to encourage the growth of these industries and the investment in rural Minnesota that comes with it. These investments mean more than just clean renewable energy; they also mean the creation of high-paying jobs in our rural communities and a more prosperous future.

Ethanol: Made in Minnesota Energy

As you know, Minnesota is a national leader in the push to develop renewable fuels such as ethanol. Since 1997, every gallon of gasoline sold in Minnesota has included 10 percent ethanol and in 2005, the Minnesota State Legislature passed a law requiring this "E-10" standard to increase to 20 percent in 2013.

Ethanol has helped reduce our reliance on foreign oil imports and the U.S. Department of Agriculture has consistently found that ethanol production is energy efficient and yields more energy than it uses. Our use of ethanol has helped Minnesota's farm families increase and diversify their income, while the construction of ethanol plants in rural Minnesota has played an important role in reinvigorating rural economies and brought jobs into those communities. In fact, about 40 percent of the total ethanol production capacity in the U.S. is owned and controlled by farmers and other local investors.

I have heard from some southern Minnesotans who are concerned that ethanol production has a harmful impact on the environment, feed prices, or land that has been enrolled in conservation programs. I understand these concerns and I take them seriously.

I do not believe that corn-based ethanol will be able to displace all of America's oil imports. However, I think it can play an important role in helping our country reduce our reliance on foreign oil while we transition to new technologies. To that end, I support efforts to increase our research into ethanol and other technologies that hold great promise.

Gas Prices

Sharp spikes in fuel prices have immediate and painful consequences for us all. In rural areas like southern Minnesota, people rely on their vehicles to get around. The prices of goods in our stores are impacted by the extra costs associated with shipping when gas is too expensive. If we wish to put our economy back on a path to prosperity, we must find a way to stop our markets from being held hostage by the price of oil.

The reasons behind fluctuating fuel costs are numerous and complex, but one thing remains clear: our nation's reliance on the resources of other countries leaves us susceptible to price hikes caused by international turmoil or speculation in the markets. Specifically, our dependence on oil as an energy source means that high prices can paralyze our economy.

As noted above, my bipartisan, All-American Energy bill--the American Energy Opportunity Act--would go a long ways in reducing our dependence on foreign oil. While this bill is important, it is not the only measure I'm taking I'm advocating for. Another problem we must solve, and which contributes significantly to rising gas prices in our area of the country, is the simultaneous closure of area refineries. Just this May, a number of refineries closed temporarily for maintenance. This affected the supply of oil sending prices through the roof. This makes no sense. Consumers should not be made to suffer because refineries can't better coordinate their closures.

To this end, I led a coalition of MN legislators, including Representatives Peterson, McCollum, Ellison and Nolan in introducing the Gas Price and Refinery Capacity Relief Act of 2013. This Act would require refineries to report to the Department of Energy, one year in advance, any planned outage. The Department of Energy would then be required to analyze this data in an effort to identify any simultaneous outages which may cause the type of disruptions experienced by Minnesotans this past May when they faced gas prices above $4.Senators Klobuchar and Franken have introduced companion legislation in the Senate.

This is a common sense fix which can help provide relief to consumers.


Source
arrow_upward