An Amendment to Reduce Demand for Oil in the US

May 1st, 2003 - by admin

by Representative Henry A. Waxman – US Congress

Before the House Energy and Air Quality Subcommittee during the Markup of the Energy Policy Act of 2003

(March 19, 2003) – Mr. Chairman, I’d like to offer the “Keeping Faith with Our American Soldiers” Amendment, which is at the desk.

In the next few days, more than 200,000 young American men and women are stepping forward to defend freedom. They stand ready, if they have to, to put their lives on the line and make the ultimate sacrifice for our country.

None of us in this room or in Washington are standing in their shoes. We don’t face a fraction of the risks they do. So it is our responsibility — in fact, our obligation — to make sure we are standing behind them in every way possible.

Of course, our most basic duty is making sure we do all we can to keep them out of harm’s way. They are ready to sacrifice everything; our job is to do everything we can to make that sacrifice unnecessary.

That’s why I’m offering this amendment today. A few weeks ago [Louisiana Republican] Rep. Tauzin noted that it was “insane” that we were sending $20 million a day to Iraq even as the United States prepares to attack.

Well, it is obscene that we’ve been sending over five billion dollars per year to Iraq, and it’s dangerous that so many people in our country believe this war is about oil.

My amendment helps make sure that war in the Middle East will not be about oil. It says to our young men and women that they will not have to risk their lives for oil. And it makes sure that American dollars aren’t financing repressive, anti-democratic regimes in the Middle East.

Our nation produces three percent of the world’s oil but we consume 25 percent of the world’s oil. That dependence on foreign oil is bad for us and also stifling to political and economic progress in the oil-exporting nations. The oil nations in the Mideast are the richest countries in the world, with the poorest, most disenfranchised people.

Today, more than 70 percent of all exports and investment in the Arab world are tied to the oil industry. Those governments have had no incentive to invest in other industrial sectors, in education, or to diversify their workforce with women. Their unwillingness to modernize is a driving force behind the unemployment, unrest and resentment feeding Islamic extremism.

My amendment is a small but important step in changing that reality. It requires the federal government to propose, finalize and implement a plan to reduce U.S. demand for oil by 600,000 barrels a day. This is the average amount of oil we have imported every day from Iraq over the past five years.

The amendment focuses on oil consumption by all sectors of the economy. This allows the administration to seek the oil reductions in the smartest ways possible. Improving CAFE standards is one option, but vehicles subject to CAFE only represent 40 percent of our oil consumption. This amendment will allow the agencies to focus on all sources and come up with the best plan possible to increase efficiencies and reduce demand.

And if the agencies’ existing authorities are inadequate, it expressly allows the agencies to request new authorities from Congress.

A couple of years ago Vice President Cheney told California that we couldn’t conserve our way out of the energy crisis. But here’s what happened in California: Energy companies manipulated supply and prices went through the roof. Governor Davis challenged Californians to reduce demand by 10 percent. And with no lead time to make and execute plans, Californians reduced demand by more than 10 percent. Despite widespread criminal conduct by energy executives, we were able to conserve our way out of that crisis.

It was a remarkable effort that for reasons I don’t understand, almost no one in Washington wants to acknowledge.

My amendment requires far less of all Americans. It translates to a 2.5 percent reduction in oil demand, and we allow for a year to finalize a plan and six years to implement it.

In absolute terms, this is a modest amendment. It asks almost nothing from those of us who remain safe at home while our troops risk their lives. But in symbolic terms for the young men and women preparing to fight in Iraq, the significance of this amendment is incalculable.

If this subcommittee isn’t ready for this small step, I don’t know how we can look our brave men and women in the eye when they come home.

I urge my colleagues to support this amendment.


Waxman’s Resolution

Amendment to House Resolution by Rep. Henry Waxman (D-Calif.)

Plan to Reduce Oil Demand (Amendment to the Energy Policy Act of 2003)

(a) Proposed Actions: No later than six months after the date of enactment of this Act, the Secretary of Energy, the Secretary of Transportation, and other appropriate federal agencies identified by the President shall jointly propose regulatory and other actions sufficient to reduce demand for oil in the United States by at least 0.6 million barrels per day from projected demand for oil in 2010.

(b) Request To Congress: If the Secretaries and agencies referred to in subsection (a) determine that they lack authority or funding to implement the actions proposed under subsection (a), they shall request the necessary authority or funding from Congress no later than nine months after the date of enactment of this Act.

(c) Final Actions: No later than 12 months after the date of enactment of this Act, the Secretaries and agencies shall finalize the actions proposed pursuant to subsection (a) for which they have authority and funding.