John Garamendi on Energy & Oil

Authored solar, wind and energy conservation tax credit law

• Transportation: I sponsored Prop.111 that provided $18 billion for mass transportation and highways.
• Energy Conservation: I authored California's first solar, wind and energy conservation tax credit laws, rewarding the commitment and creativit of energy pioneers throughout the state.
• Toxic Clean Up: I authored California's first toxic clean up laws, giving communities the resources they need to return polluted land to productive use.

Principle negotiator for the Kyoto Protocol

Voted NO on opening Outer Continental Shelf to oil drilling.

Congressional Summary:
• Makes available for leasing, in the 2012-2017 five-year oil and gas leasing program, outer Continental Shelf areas that are estimated to contain more than 2.5 billion barrels of oil; or are estimated to contain more than 7.5 trillion cubic feet of natural gas.
• Makes the production goal for the 2012-2017 five-year oil and gas leasing program an increase by 2027 in daily production of at least 3 million barrels of oil, and 10 billion cubic feet of natural gas.

Proponent's Argument for voting Yes:
[Rep. Young, R-AK]: The Americans suffering from $4 a gallon gas today must feel like they're experiencing a sense of deja vu. In 2008, when gasoline prices reached a record high of $4.11 per gallon, the public outcry forced Congress to act. That fall, Congress lifted the offshore drilling ban that had been in place for decades. Three years later, most Americans would likely be shocked to learn that no energy development has happened in these new areas.

Opponent's Argument for voting No:
[Rep. Markey, D-MA]. In the first 3 months of this year, Exxon-Mobil made $10 billion off of the American consumer; Shell made $8 billion; BP made $7 billion. So what are these companies asking for? These companies are now asking that we open up the beaches of California, Florida & New England to drill for oil. People who live near those beaches don't want oil coming in the way it did in the Gulf of Mexico. Right now, those oil companies are centered down in the Gulf of Mexico. People are concerned because those companies have blocked any new safety reforms that would protect against another catastrophic spill. We have to oppose this bill because, first of all, they already have 60 million acres of American land that they haven't drilled on yet, which has about 11 billion barrels of oil underneath it and an equivalent amount of natural gas. This bill is just a giveaway to Exxon-Mobil and Shell.

Voted NO on barring EPA from regulating greenhouse gases.

Congressional Summary:Amends the Clean Air Act to prohibit the Environmental Protection Agency (EPA) from promulgating any regulation the emission of a greenhouse gas (GHG) to address climate change.
• Excludes GHGs from the definition of "air pollutant" for purposes of addressing climate change.
• Exempts from such prohibition existing regulations on fuel efficiency, research, or CO2 monitoring.
• Repeals and makes ineffective other rules and actions concerning GHGs.

Opponent's Argument for voting No:
[Rep. Waxman, D-CA]: This bill is a direct assault on the Clean Air Act. Its premise is that climate change is a hoax and carbon pollution does not endanger health and welfare. But climate change is real. It is caused by pollution, and it is a serious threat to our health and welfare. We need to confront these realities. American families count on the EPA to keep our air and water clean. But this bill has politicians overruling the experts at EPA, and it exempts our biggest polluters from regulation. If this bill is enacted, the EPA's ability to control dangerous carbon pollution will be gutted.

Extend through 2016 the renewable energy tax credit.

Congressional Summary:Amends the Internal Revenue Code to extend through 2016 the tax credit for electricity produced from wind, biomass, geothermal or solar energy, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities.

Proponent's Comments (Governor's Wind Energy Coalition letter of Nov. 15, 2011 signed by 23 governors):Although the tax credit for wind energy has long enjoyed bipartisan support, it is scheduled to expire on Dec. 31, 2012. Wind-related manufacturing is beginning to slow in our states because the credit has not yet been extended. If Congress pursues a last minute approach to the extension, the anticipated interruption of the credit's benefits will result in a significant loss of high-paying jobs in a growing sector of the economy. We strongly urge Congress to adopt a more consistent and longer-term federal tax policy to support wind energy development, such as H.R. 3307.

The leading wind project developers and manufacturers are slowing their plans for 2013 and beyond due to the current uncertainty. The ripple effect of this slow down means reduced orders for turbines and decreased business for the hundreds of manufacturers who have entered the wind industry in our states. When Congress allowed the tax credit to expire in 1999, 2001, and 2003, the development of new wind installations dropped significantly, between 73% and 93%, and thousands of jobs were lost. Providing renewable energy tax credits in order to provide consistency with conventional energy tax credits is the right policy to move the nation forward in an energy sector that offers global export opportunities and the ability to modernize a segment of our electric production infrastructure.

$5 billion in tax credits for alternative energy projects.

Security in Energy and Manufacturing Act of 2011 or the SEAM Act of 2011 - Amends the Internal Revenue Code to expand the qualifying advanced energy project credit by allocating in 2011 $5 billion of grants or tax credit amounts to manufacturers of goods and components (other than for assembly of components) in the US that are used in alternative energy projects.

[Explanatory note from americanprogress.org]:

The SEAM Act provides financial assistance to US manufacturing companies that want to retool their factories for the clean energy economy. By promoting growth of the manufacturing sector, this legislation has the potential to create badly needed jobs that can put Americans back to work.

The SEAM Act goes a step beyond just providing more funding. It amends the existing terms of the funding to increase its effectiveness. The new Manufacturing Tax Credit would prioritize funding for companies that provide supplies over those that assemble goods. Drawing this distinction helps target support for companies that need it most. There's another benefit to supporting supply companies over assembly companies. Both types of companies promote economic development, but workers in the supply chain, such as tool and die workers, welders, and machinists, are generally paid more than workers in the assembly chain.

In addition to being an effective tool for economic recovery, the SEAM Act provides an example of a well-designed tax expenditure. More than 60% of federal support for the energy industry is now delivered via "tax expenditures"--government spending programs that deliver subsidies through the tax code via special tax credits, deductions, exclusions, exemptions, and preferential rates--and a recent hearing in Congress indicates that this trend is likely to continue. Problem is, many of these tax expenditures are questionable at best.

Voted YES on banning offshore oil drilling in Gulf of Mexico.

Congressional Summary: House amendment to H.R. 5538, the Interior & Environment Agencies Appropriations bill for FY 2017. This amendment would prohibit funds to be used to research, investigate, or study offshore drilling in the Eastern Gulf of Mexico Planning Area of the Outer Continental Shelf (OCS).

Heritage Foundation recommends voting NO: (7/13/2016): The Gulf of Mexico continues to be a very important asset for our energy future and it continues to produce significant amounts of oil and natural gas. Yet the Eastern Gulf of Mexico has not participated to this point despite its significant potential. A 2014 Heritage Foundation report said: "Excessive regulations and bureaucratic inefficiencies have stymied oil production and prevented the full effects of the energy boom." This amendment would block any potential progress that could take place by preventing the necessary work that would need to be prepared in the East Gulf for potential lease sales and eventual production.

Sierra Club recommends voting YES: (1/12/1974): The Sierra Club believes that no offshore petroleum exploration should occur unless and until the following conditions are met:

• Strengthen the Coastal Zone Management System.
• Lease sales should be prohibited in areas that possess:
  • High seismic activity
  • Fragile or unstable geological structures
  • Proximity to particularly diverse or productive marine ecosystems, or marine sanctuaries
  • Where visual impact of offshore structures would significantly reduce aesthetic values
  • Where the risks are unusually high.
• Petroleum exploration and production must be subject to automatic, heavy fines for all oil spills regardless of cause.
• The Sierra Club opposes leasing of lands beyond 200 meters depth until international agreements [define] ownership of sea floor resources.

Legislative outcome: Failed House 185 to 243 (no Senate vote).

Federal collaboration for advanced nuclear technologies.

Press Release from 5 Senators: The Senate today approved, 87-4, legislation that would facilitate advanced nuclear technologies, as part of the Nuclear Energy Innovation Capabilities Act (NEICA), S. 2461, which prioritizes partnering with private innovators on new reactor technologies and the testing and demonstration of reactor concepts.

Supporters arguments:

• "Nuclear energy has an important role to play as we transition to a carbon-free energy future. This amendment will help drive investment, remove bureaucratic barriers, and allow our entrepreneurs and businesses to unleash the promise of advanced nuclear technologies," said Sen. Cory Booker (D-NJ).
• "Including clean nuclear energy as part of our nation's 'all-of-the-above' energy strategy is a no-brainer," said Sen. Jim Risch (R-ID).

Opposing environmental argument: (Sierra Club FactSheet, "Why Nuclear Power Doesn't Make Sense"): As the disasters at Chernobyl, Three Mile Island and Fukushima have shown, nuclear power can cause catastrophic damage to land & human health. We should pursue our cleanest, quickest, safest, and cheapest energy options first: Nuclear power comes out last in every one of those categories.

Opposing economic argument: (Cato Institute Commentary, "Risky Business"): Many free-market advocates support nuclear because it costs less to generate nuclear power than it does to generate electricity from any other source. However, someone has to first pay for--and build--these plants and the rub is that nuclear has very high, upfront construction costs ranging from $6-9 billion. By contrast, gas plants cost only a few hundred million dollars to build and coal a couple of billion. But the final nail in the coffin for the industry would be if the federal cap on the liability that nuclear power plant owners face in case of accidents (the Price-Anderson Act) were to be lifted.

Green New Deal: 10-year national mobilization.

This resolution calls for the creation of a Green New Deal with the goals of:

• achieving net-zero greenhouse gas emissions;
• establishing millions of high-wage jobs and ensuring economic security for all;
• investing in infrastructure and industry;
• securing clean air and water, climate and community resiliency, healthy food, access to nature, and a sustainable environment for all; and
• promoting justice and equality.