August is here, traditionally a month of summertime fun, family vacations and back-to-school preparations. This year, however, for far too many families and businesses throughout our nation and our state, August is a month of anxiety as a winter of record-high energy prices approaches.
August also is the traditional time for Congress to take a month-long recess. I am profoundly disappointed that Congress will take this break without acting on the comprehensive energy legislation that helps those struggling with high costs and puts us on the road to energy independence. I voted against adjourning for recess until we passed legislation to spur the energy production, conservation, and innovation that will combat high energy prices and reduce our reliance on foreign oil. Unfortunately, the House of Representatives approved an adjournment resolution by just one vote.
I am committed to the passage of legislation based on the principle that America’s long-term energy security requires us to produce more, use less, and develop alternative, renewable sources of energy.
At the same time, I am keenly aware of the need to address the immediate crisis. As I visit communities throughout Maine, I hear time and again that the high cost of energy is imposing a crushing burden for many of our citizens.
Rapidly increasing prices for home heating oil, gasoline and diesel fuel are a huge burden for many families, truckers, farmers, fishermen, 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.
In a difficult economy, investments in energy conservation and alternative energy improvements are simply too costly for many families and small businesses, especially those that are still reeling from last winter’s high energy costs. For that reason, on July 30th, I introduced the Energy Assistance Act of 2008 to make available additional funding to low-income families for weatherization programs, grant dollars for low-income families who do not qualify for energy efficiency tax credits, low interest loans for middle-income consumers, and an extension of tax incentives for the production of renewable energy, like wind. My legislation also includes a provision from a bill I introduced previously to provide a $500 tax credit to help consumers purchase clean-burning wood or wood pellet stoves.
As the law now stands, taxpayers who install energy efficient windows, for example, 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 that 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 struggling to make ends meet, and they do not have the money to finance the gap between the tax credit now offered and the cost of the investment. Ironically, the higher oil prices climb, the harder it will be for taxpayers to bridge this gap.
My legislation would help to close that gap by expanding loan authority in 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 individuals were especially hard-hit by 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 would finance investments that would decrease energy prices for these citizens for years to come and would be a wise investment.
It is important that we provide grants 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.
This bill also includes several proposals I have long advocated so that it addresses overall energy challenges that our nation faces.
For example, it extends important tax incentives for renewable energy and energy efficiency that have expired, or are about to expire, such as 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 energy efficiency tax credits for homes.
In addition, I recently signed on as a co-sponsor of the WARM Act (Weatherization, Assistance, and Relief for Middle-Income Households) offered by Senators Judd Gregg and John Sununu of New Hampshire, which takes a three-pronged approach to help low and middle-income households deal with the skyrocketing price of energy. This legislation would double funding for the LIHEAP program (Low-income Home Energy Assistance Program), and it would make available an additional $523 million for the Department of Energy’s Weatherization Assistance Program. In addition, the bill would establish a Middle Income Home Heating Oil Tax Credit of as much as $1,000 for individuals and $2,000 for married couples for home heating oil purchases this winter.
When Congress reconvenes in September, I will continue to advocate for legislation to secure America’s energy future. At the same time, it is imperative that we address the immediate crisis faced by businesses and individuals throughout our nation as another winter nears.