Every U.S. President and U.S. Congress for over 40 years has talked about the desire to establish an energy policy that decreases our dependence on foreign oil. Yet today, we import over 60% of our oil from foreign nations, whose interests and objectives are not in line with our own. Last year we spent approximately $475 billion on imported oil.¹ This transfer of wealth is draining our economy and providing possible adversaries with money and resources. It is obvious that we need a sound energy policy that drastically reduces our dependence on foreign oil. However, this policy must not do more harm than good. For example, it should not significantly increase the total cost of energy which would have a negative impact on our economy.

As your representative I will work towards shaping an energy policy and legislation that promotes development, economic growth and personal freedom. More specifically, I will support legislation that provides incentives to:

• Filling station owners to provide compressed natural gas as an alternative to gasoline and diesel.
• Automobile, commercial bus and commercial truck manufacturers to produce vehicles that run on compressed natural gas.
• Homeowners who invest in onsite energy production (windmills, solar panels) and conservation (high efficiency appliances, insulation upgrades).
• Electric companies that invest in electrical grid upgrades and the production of energy through alternative sources.
• Pipeline companies to develop the infrastructure needed to transport natural gas.

I will also work to remove legislative barriers on:

• Refineries to enable them to make improvements to increase capacity, efficiency and reducing overall emissions.
• Oil and gas companies that drill and produce domestic sources of oil and gas.

Current Proposed Cap and Trade Legislation

Recently, the U.S. House of Representatives passed H.R. 2454: American Clean Energy and Security Act of 2009. On the surface this bill attempts to define an energy policy as well as climate change / global warming policy in the United States. Beneath the surface it imposes hard regulatory mandates and increases government control over energy markets.² One of the key components to this legislation is the idea of cap and trade. The premise being that if we cap the total allowable emissions in the U.S. it will force businesses to either produce fewer emissions, or to purchase additional carbon credits. Once the allowable credits have been exhausted, businesses will likely face fines and penalties for exceeding emission limits. No matter who you listen to on this issue everyone recognizes that this will have an adverse economic impact. This proposed legislation will directly regulate electric utilities, oil refiners, and natural gas producers.³ It will also have a direct impact on all industrial businesses, farms and individuals that purchase energy. The only argument is on exactly how big the impact will actually be, and how much it will actually cost. One estimate from the Heritage Foundation indicates that when the legislation takes effect in 2012 energy costs will go up by $436 for a household of four. From there the costs will continue to rise eventually reaching an increase of $1,241 by 2035.³

If there is one thing I have learned as a father, a boss and, perhaps most importantly, as a husband it is that making demands and issuing mandates will not inspire people to strive for continual improvement. Mandates may work to set a baseline of minimal performance, but if you want real improvement over the long term, the statement that you catch more flies with honey remains as true as ever. Somehow, our U.S. Representatives and U.S. Senators have not acquired this knowledge and understanding. I believe that when it comes to issues like energy and environmental protection we need an alternative approach. Instead of rigid laws and regulations, I think we need to provide incentives for improvement and development.

When John F. Kennedy said that we would put a man on the moon in ten years he did not turn around and ask Congress to write a law mandating that U.S. companies develop the technology that would enable this accomplishment. Instead, with real leadership, the U.S. established a direction and a goal. Then the federal government provided the resources and incentives necessary to achieve the objective. This method is more appropriate than what occurs today in Congress where they continue to impose absolute requirements, which burden individuals and businesses.

Most people agree that we cannot continue on the same path of importing oil and sending money to unfriendly nations. However, the current proposed legislation does not allow for innovation with its strict regulatory requirements. It punishes small business and rewards a select few large corporations.

Business decisions are made by considering the return on a given investment. If the proposed investment will help the company save or earn enough money within a specific period of time in the future the project will be approved. Therefore, if we want to encourage investment by private industry to develop the infrastructure needed to transform our motor vehicle fuel source and our electrical grid, the federal government should provide the leadership, direction and incentives necessary to promote development. Therefore, in lieu of a carbon credit trading industry, which will only benefit institutional investors and investment banks, I will work to provide legislation that establishes performance based objectives that encourage incremental and continuous improvement towards reducing emissions.

1. Pickens Plan, America is Addicted to Foreign Oil. Retrieved June 10, 2009, from http://www.pickensplan.com/theplan/
2. 111th Congress 2009-2010, H.R. 2454: American Clean Energy and Security Act of 2009. Retrieved July 8, 2009, from http://www.govtrack.us/
3. Lieberman, Ben., The Economic Impact of the Waxman-Markey Cap-and-Trade Bill. Testimony before the Senate Republican Conference, June 22, 2009, Retrieved July 7, 2009 from http://www.heritage.org
4. American Clean Skies Foundation, Natural Gas: Myth vs. Fact. Retrieved July 9, 2009, from http://www.cleanskies.org