Washington, D.C. - Today, U.S. Representatives Max Sandlin (D-TX) testified at a hearing on energy tax policy held by the House Committee on Ways and Means. Sandlin, a member of the Democratic Caucus Energy Task Force and co-chairman of the Blue Dog Energy Task Force, testified in support of tax incentives to encourage the production and development of energy resources.

"I have long been concerned that our country lacks a comprehensive energy plan that links the balances between supply and demand to federal environmental, regulatory and tax policies," said Sandlin. "A patchwork of local and national rules and laws sends mixed cues to the energy industry, stifling expansions in capacity and advances in technology. The federal tax code, in particular, plays a crucial role shaping industry behavior."

"The exploration and production of energy resources are capital intensive. Modifying the federal tax code will allow producers to retain the necessary capital crucial to expanding capacity and spurring production. Providing access to capital is linked to market stability, which benefits both consumers and energy producers. Easing the feast or famine swings of the oil and gas markets must be a key priority to a comprehensive energy policy."

During his testimony, Sandlin endorsed two pieces of legislation that will encourage the production and development of energy resources: the Independent Energy Production Act of 2001 and the Wind Energy Production Tax Credit.

"The Independent Production Act of 2001 is designed to preserve the marginal properties and capital of independent oil and gas producers and to protect this important yet high-risk sector of our economy from volatile world price fluctuations. Many of the provisions contained in this legislation encourage independent oil and gas producers to reinvest capital in capacity and production, which will smooth out the supply and demand chain."

"The U.S. wind industry has successfully financed and built wind plants capable of generating 1700 megawatts of power. These plants now produce more than 3.1 billion kilowatts per hour. Based on this performance, the industry is developing a corporate structure that has increasing access to some of the same capital markets as electric utilities. To promote the continued development of wind energy production in the United States, it is imperative that Congress act to extend the wind energy production tax credit."

"I am hopeful that Congress will take up these pro-growth tax reform proposals in the 107th Congress. Targeted tax incentives can help maintain and increase domestic production, deterring wild price swings that hurt American families and produce uncertainty within the industry."

"Democrats recognize the importance of promoting a wide range of energy supplies. The Democratic Caucus energy plan utilizes the tax code to encourage domestic energy production and development. Additionally, the Blue Dog Democrats are working to outline a comprehensive, forward-looking, market-based, and balanced national energy strategy."