Nussle is traveling throughout eastern and north central Iowa this week to talk with Iowans about their energy concerns and to highlight efforts by Iowans to reduce our nation’s dangerous dependence on foreign oil.

“Today’s energy crunch in America has taken nearly ten years of neglect to create.  It will certainly take more than ten days or even ten months to solve this problem.,” Nussle said.  “But we must begin today.”
 
On May 17, the Bush Administration released a comprehensive plan containing 105 specific recommendations to address the current energy situation.  With respect to renewable energy, the plan increases support for the research and development of renewable energy.  The plan also extends the ethanol excise tax exemption and expands tax credits for electricity produced using wind and biomass.  

“Those are steps in the right direction,” Nussle said.  “But the President’s plan can, and must, do more.”

Nearly 60% of U.S. oil now comes from foreign countries.  During the “energy crisis” of the 1970's only 35% of U.S. oil was imported.

“I believe the United States is too dependent on both foreign sources of energy and on non-renewable sources of energy,” Nussle said.  “My agenda focuses on promoting the study and use of renewable energy sources, particularly those that also consume agriculture commodities such as corn or soybeans and represent a new market for our farmers.” 

Current efforts to develop a long-term energy policy come at a crucial time.  Over the next 20 years, U.S. oil consumption will increase by 33% and demand for electricity will rise by 45%.  Future energy demand will vastly outstrip our supply if no action is taken.

“Congress and the President must work together now to develop a long-term energy policy that increases use of renewable energy, boosts conservation, ensures safe exploration, protects our environment, and reduces our nation’s dependence on foreign oil,” Nussle said.

Nussle’s energy agenda for the 107th Congress is based on input he has received in meetings with Iowans.  His agenda includes the following legislation.

Ethanol Energy Promotion Act of 2001 (H.R. 1999)
• Legislation introduced by Congressman Nussle.  The most comprehensive ethanol legislation in Congress.
• Promotes the development of small ethanol cooperatives with a tax credit that will help the growing number of Iowa farmers starting their own cooperatives.
• Protects the environment by totally and immediately banning the use of methyl tertiary butyl ether (MTBE) as a fuel additive.
• Requires the federal government to exclusively use ethanol blended fuels in its vehicles.

Renewable Energy from Agricultural Products (REAP) Act (H.R. 2000)
• Legislation introduced by Congressman Nussle.
• Promotes value-added agriculture by creating incentives to produce energy from products once thought to have no use; methane, manure, and other forms of animal waste products.
• Creates demand for another farm product while promoting conservation by allowing switch grass grown on CRP enrolled land to be used as an energy additive without affecting the program’s payment schedule.
• Requires the federal government to exclusively use biodiesel blended fuels in its vehicles with diesel powered engines.
 
President’s Plan
• On May 16, 2001, the Bush Administration published a report outlining its plans for developing a long-term national energy policy.
• The President is taking a fresh look at the raw materials used to generate power.  The United States cannot continue to depend on foreign oil and natural gas.
• Currently only 2 percent of our country’s power supply comes from renewable resources.  President Bush recognizes that it is important to expand the use of these virtually untapped resources.  Although the President’s plan is a good start, Congressman Nussle believes we can and should do more to promote wind, ethanol, and other biobased fuels.
• The House Energy & Commerce Committee has announced that it is prepared to follow the President’s leadership and begin enacting his energy goals.

Resource Efficient Appliance Incentives Act  (H.R. 1316)
• Legislation introduced by Congressman Nussle.  
• The bill creates an incentive for appliance manufacturers to development energy efficient household appliances.

Clean Air and Water Preservation Act of 2001 (H.R. 608) 
• Cosponsor of legislation to ban MTBE as a fuel additive over the course of 5 years.

Wind Energy Production Tax Credit (H.R. 876)
• Cosponsor of legislation which promotes wind energy as a clean and efficient energy source by extending the current wind energy tax credit for an additional 5 years.  

Energy Facts: 
• Iraq is the fastest growing source of United States oil imports.

• Since 1992, U.S. oil production is down 17%; consumption is up 14%.

• In 1990, there were 657 working U.S. oilrigs.  In 2000, there were 153.

• 36 U.S. refineries have closed since 1992.  No new refineries have been built since 1976.

• In 1990, there were 405,000 U.S. jobs exploring and producing oil and gas.  In 1999, there were only 293,000 jobs, a 27% decline.
 
• Americans spend $300 million a day on foreign oil.