Finally Moving Towards Energy Independence

For far too long, the nation has simply talked about energy independence without actually doing something proactive to achieve it. The 1970s was marked by the rationing of gas and a greater reliance on foreign oil; the 1990s saw stagnant fuel efficiency standards in our domestic auto fleet which allowed foreign competitors to significantly grow their business in the U.S market with advanced miles-per-gallon technology. The harsh reality is we consciously and consistently put off the hard decisions, thus making the nation more energy dependent on foreign sources and our businesses less competitive in the global marketplace.
Recognizing that last summer’s $5 per gallon gas could quickly return and outraged that taxpayers continue to subsidize the oil industry despite record profits, I strongly felt a national energy policy was not something we could further kick down the road for future generations to wrestle with. Furthermore, why would we continue to send billions of dollars each day to countries such as Venezuela, Iran and those who do not support America, using our money to potentially fund terrorism against our citizens and our troops, rather than investing in U.S. companies and jobs that are in the domestic production and renewable energy fields? The “American Clean Energy and Security Act” is the opportunity to break the cycle of inaction and finally move our nation towards real energy independence.
To achieve our shared goal, this legislation will further diversify our domestic energy by creating a market for renewable sources such as wind, solar, hydropower and nuclear. For New Jersey, these new standards will be anything but new. Rather, it is just the federal government catching up to the existing forward-looking policies of our state, such as increasing energy efficiency standards for future residential and commercial buildings. Thus, while national cost estimates to businesses and families have varied greatly, New Jersey consumers will likely not result in much of any increase in electrical rates over the next 10 years. In fact, while the non-partisan Congressional Budget Office (CBO) estimates that each U.S. household may see a $175 increase in their annual energy costs by the year 2020, the federal Energy Information Administration suggests that in 10 years New Jersey households may see less than a $50 increase.
Another key component of the legislation is the “cap and trade” provisions that seek to reduce harmful carbon emissions into our atmosphere. Some individuals question how successful these efforts can be; others simply deny the need to act at all. I disagree with those who do not believe it is our obligation to leave the environment in a clean, safe and livable condition for future generations. In the early 1990s, the federal government successfully implemented a cap and trade system to reduce acid rain, which threatened the environment and public health. Similar action on a national level must be taken now to reduce carbon emissions, much like the ongoing efforts of New Jersey and nine other states in the Northeast who years ago partnered together under a regional cap and trade system. And, interestingly, both efforts have the strong support of the CEO of the nation’s largest energy company and, in terms of reducing acid rain, cost one-fourth of its original estimates all the while spurring technological advances in clean energy.
Likewise, the real potential for advancing research and development while creating new business and job creation opportunities is one of the reasons many U.S. corporations support this legislation. From national brands such as Starbucks, GE, Hewlett-Packard, Duke Energy, the John Deere Company, eBay and PepsiCo to New Jersey’s own PSE&G, DuPont and Johnson & Johnson, these American companies see what the future holds and the benefit of reducing their energy costs as a practical, successful business model. I strongly believe the U.S. can and should be leading the innovation, research and development race in traditional and renewable energy production.
The economic opportunities, however, are not limited to major U.S. companies in other states. New Jersey and, more specifically South Jersey, must capitalize on new “green businesses” that will create new jobs and strengthen our local economy. There is no reason why South Jersey businesses cannot research, develop, manufacture, distribute and install solar panels or wind turbines or energy efficient products or environmentally-friendly home building materials and so on. Locally, we have solar farms being established in Vineland and Buena among other areas, and a wind farm project moving forward off the coast of Atlantic and Cape May Counties.
The bill is far from perfect. While I am pleased the agriculture community will now be protected from unfair emissions mandates and continue to be regulated under the USDA and not the EPA as originally proposed, I am deeply disappointed in the lack of a domestic production component that focuses drilling on the federally-leased 70 million acres of lands – onshore and offshore – across the country. We must continue domestic oil and natural gas drilling as part of our all of the above solution to achieving energy independence. However, I remain opposed to exploration off New Jersey’s coast due to the potential impact to the state’s $38 billion tourism industry and estimated 500,000 jobs.
In the end, the “American Clean Energy and Security Act” seeks to break the cycle of our past, give us the opportunities to promote domestic energy production free from foreign sources, create new economic and job opportunities here at home, and finally move our nation towards real energy independence in an environmentally-conscious manner.