Reply #14: Energy

[Tinoire]

Energy

Gasoline Prices
Deregulation of the Electric Industry
Letters of the 107th Congress, 1st Session
Letters
Bills Cosponsored in the 107th Congress, 1st Session
Bills Cosponsored

Gasoline Prices


Representative Kucinich believes that the recent rise of gas prices is a result of oil company profiteering and price gouging. The price of gasoline rose to $2 per gallon in Cleveland without a reasonable explanation and then decreased only after regulators began to question the high prices. To reduce fluctuations in price that harm consumers, Kucinich introduced the Gas Price Spike Act of 2000, which:

• institutes a windfall profit tax on industries who manage gasoline, diesel, crude oil, and home heating oil;

• acts as a disincentive for oil companies to take excessive profits, but would not raise gas prices for the consumers;

• provides tax credits to consumers who purchase highly efficient union-made cars, SUVs, and light trucks;

• provides local funding for reduced mass transit fares.

These benefits to consumers will help reduce our dependency on oil, while the windfall profits tax keeps gas prices in check.

Rep. Kucinich also introduced the “Lower Gasoline Prices through Technology Access Act of 2000” which addressed one of the reasons the oil industry has blamed for the high price of gasoline, especially reformulated gasoline (RFG) in the mid-west. Several recently issued patents for reformulated gasoline are deterring the industry from making RFG, and are making RFG more expensive for consumers. The legislation ensures that all oil companies have fair access to these patents by preventing monopolistic control of this important clean air technology. This will lead to lower gasoline prices because it will make the process for manufacturing RFG available to all oil companies.

Representative Kucinich also supported an amendment to the agriculture spending bill to increase the funding available for the Meals on Wheels program to offset higher gasoline prices. The Meals on Wheels program delivers food to our senior citizens, but when gas prices escalate, so do the costs of delivering these meals.

This serious issue was brought to the congressman’s attention by Joyce Able Scroth, the director for Department of Senior and Community Services of the City of Westlake. Her letter stated, "As you know, many of the volunteers for Meals on Wheels are, themselves, older adults on fixed incomes. One such couple travels almost 100 miles in a rural area to deliver meals; they are considering resigning because they cannot afford to volunteer."

To resolve this issue, Kucinich joined a bipartisan group of Members of Congress that successfully offered an amendment to increase funding for programs like Meals on Wheels by $20 million. This money will offset the increasingly high fuel costs by providing more food purchasing power and mileage reimbursement funds.

In the 107th Congress, Kucinich reintroduced the Gas Price Spike Act. The new bill, H.R. 1967, doubled the ultra-efficient vehicle tax credit to a maximum of $6000. This legislation benefits consumers by keeping a check on gas prices, bringing more efficient vehicles to the market, and lowering America’s dependence of foreign oil.

Deregulation of the Electric Industry


Congressman Dennis Kucinich has fought vigorously to place his constituents’ interests first every time they flip on a light. In Washington, D.C. and many states, including Ohio, policy makers are deregulating the electricity industry. The debate has focused on benefitting the electricity companies and large energy users, while residential consumers have been ignored.

More than half the states have deregulated, and they all lacked the consumer protections, fair markets and environmental protections necessary. This has led to a general failure of deregulated electricity markets. Wholesale electricity prices have increased nationwide. The extensive failure of deregulation in California has left many consumers with massive electricity bills while the power generation companies reaped record profits. The Progressive Caucus, chaired by Kucinich, released THE PROGRESSIVE PRO-CONSUMER SOLUTION TO TODAY'S ELECTRICITY CRISIS: Just and Reasonable Rates, a Tellus Institute report that detailed this failure and provided a pro-consumer solution.

Congressman Kucinich has also cosponsored an innovative new bill that provides incentives for expanding public power systems. This legislation, authored by Congressman Nadler (D-NY) and Congressman Hinchey (D-NY) provides for a Community Power Investment Revolving Loan Fund to provide for low-interest funds, blocks private power companies from interfering in the expansion of public power systems and reforms the tax system to ensure tax-exempt bonds can be used for public power systems.

Rep. Kucinich’s activities build upon past actions. Kucinich introduced H.R. 2645, the “Electricity Consumer, Worker and Environmental Protection Act of 1999.” The bill, which would significantly restructure the electric power industry, was introduced to protect the interests of consumers and the environment. Until this legislation was introduced, most legislative proposals for utility deregulation increase rates and increase the amount of pollution emitted into the environment, because they were written to benefit large industrial consumers and the utilities serving them.

HR 2645 will likely result in almost $500 billion in savings for residential consumers. The bill protects consumers and makes the electricity industry more worker friendly and more environmentally safe.

The bill:

• would set universal standards of service for residential customers;

• more of a choice among electricity providers;

• allows consumers to unite as townships and as buying clubs to save money;

• includes provisions for environmental protection of air quality;

• raises the bar on the pollution emission standards for global warming gases and heavy metals;

• creates affordable electric service for low- and moderate-income residential customers;

• supports renewable energy and energy efficiency;

• ensures consumer privacy is protected;

• protects consumer from market power abuses and

• anti-competitive mergers;

• and provides protection for workers in a deregulated industry.

Summary of H.R. 2645, The Electricity Consumer, Worker, and Environmental Protection Act of 1999


This bill impacts both states that have chosen to deregulate and those that haven't. Title I contains several consumer protections for all states. Title II contains important additional protections just for the states that have chosen to deregulate. It is important to note that this bill does not mandate that any state deregulate the electricity industry. Instead, this bill includes provisions to protect consumers, workers, and the environment regardless of whether a state chooses to deregulate or not.

The following are Title I changes that will impact everyone


Pollution standards.
This bill requires that all power plants should meet the same standards for pollution regardless of power plant age or fuel type. The following pollution standards are to be established starting in 2005:

• nitrogen oxides, a 79 percent decrease from 1990 emissions. This is intended to result in an emission rate of 0.15 pounds of nitrogen oxides per million BTUs;

• sulfur dioxide, a 77 percent decrease from 1990 emissions. This is intended to result in an emission rate of 0.30 pounds of sulfur dioxide per million BTUs;

• carbon dioxide, a 10 percent decrease from 1990 emissions by 2005, a 25 percent decrease by 2010, and a 80 percent decrease by 2030;

• mercury emissions are to be eliminated by 2010;

• high-level nuclear waste, a reduction of the production of radiation (in curies) by 5 percent by 2000, and 2 percent for each year after 2005;

• low-level nuclear waste, a reduction of the production of radiation (in curies) by 25 percent by 2000, and 5 percent for each year after 2005;

Public Benefit Funds
National electric public benefit board will oversee the collection and distribution of a 0.7 cents/kWh fund, which one third will be used to support affordable electric service for low- and moderate-income people. The remaining funds will used for protecting workers affected by electricity deregulation and to support renewable energy, and energy efficiency.

Renewable energy portfolio standards.
Total generation from renewable resources, including biomass, landfill gas, geothermal, solar, or wind resources, must equal 5% of all sales by 2005 and 10% by 2010, not including hydroelectric sources. Tradable renewable credits can be used by electricity suppliers to meet their RPS obligations.

Net-metering & interconnection standards.
Allows the owner of a renewable energy source of 2 megawatts or less to reduce their electricity bill by the amount of electricity produced.

Consumer privacy.
A distributor or supplier of electricity must obtain the written permission of a customer before it can release customer-specific information.

Payment plans.
All electricity distributors and suppliers must offer their customers deferred payment plans and equal-monthly-budget billing plans.

Electricity Bills.
All electricity distributors and suppliers must issue bills that disclose:

• understandable descriptions of all services and charges;

• a percentage breakdown of the sources of electricity (specifically biomass, coal, hydro, natural gas, nuclear, oil, solar, wind, power from municipal waste incinerators, other resources), a pie-chart showing these percentage breakdowns;

• a table showing actual pollutant emissions (specifically particulate matter, carbon dioxide, nitrogen oxides, sulfur dioxide, mercury, high-level nuclear waste, and low-level nuclear waste);

•
Office of consumer counsel.
The Federal Energy Regulatory Commission must create an office of consumer counsel to represent the interests of consumers in matters before FERC.

Prohibition of power plant bailouts.
It shall be unlawful for any federal or state authority to require consumers to subsidize, directly or indirectly, the costs of owning or operating any power plant owned by an investor-owned company.

Distribution service and supply service quality standards.
Distributors and suppliers of electricity will be benchmarked and ranked by a nation-wide, publicly-available index that measures consumer concerns in multiple areas.

Prohibition of affiliate abuses and cross-subsidies.
Investor-owned utilities or their holding companies cannot be involved in any non-regulated business and cannot provide any non-regulated services.

Mergers
The Federal Energy Regulatory Commission cannot approve a merger if the merger would violate antitrust law, if it would reduce the number of suppliers in any geographic market, or if probable efficiencies could be achieved by other means.

Worker Protections
Power plant owners must ensure that workers have the necessary skills to safely perform their jobs. This bill requires all power plants to comply with standards established by the Occupational Safety and Health Administration. This bill requires new owners of power plants to offer to rehire the current power plant workers at similar wage rates and benefits.

The following are Title II changes that will impact deregulated states


Aggregation of Consumers
Nonprofit public aggregation. States must permit consumers to establish options for nonprofit public aggregation in the form of new municipal electric systems; franchise contracts; community choice aggregation; or cooperative buying clubs in unincorporated areas. These nonprofit aggregators may control funds collected for energy efficiency and renewable energy programs.

Consumer Protections
Prohibition of cost-shifting. No class of consumers can be charged rates for transmission or distribution service in excess of the class' proportional responsibility for the costs of providing these services. State regulatory commissions must adjust access charges if the rate differential between residential and industrial customers exceeds three percent.

Basic service.
Distributors must arrange for the provision of basic electricity service for consumers who do not select a supplier, or when suppliers are not able to provide service. Basic service will be provided by suppliers chosen through competitive bids. Consumers have the right to receive basic electricity service at prices that do not vary by time of day or season.

Change of supplier.
A customer may change his electric supplier at any time.

Distribution service disconnections and supply terminations.
All customers must be protected from unreasonable service disconnections and unreasonable supply terminations. A seller may not disconnect or terminate the customer's electric service for failure to pay for products or services other than electricity, or without providing adequate notice to the customer, or when a tenant's landlord fails to pay for service, or when a physician declares a medical emergency in a household.

Credit and collection practices.
Distributors that bill for suppliers must allocate a customer's partial payment first to services regulated by the state regulatory authority, and then to the unregulated portion of the bill. A retail supplier may not refuse to grant credit to any applicant, as stipulated by the Equal Credit Opportunity Act. Deposits required by retail suppliers may not exceed the applicant's estimated bill for a two-month period.

Unfair trade practices.
The following practices must be prohibited: cramming; slamming; the provision by suppliers to consumers of gifts of more than $50 in value; and misleading advertising.

Prohibition of affiliate abuses and cross-subsidies. Investor-owned utilities must transfer transmission and distribution assets to a regulated transmission company and a regulated distribution company. These transmission and distribution companies:

• cannot have any affiliation whatsoever, or use the name, logo, or trademark, of any company that owns, operates, or leases generation facilities, or that sells electricity in wholesale or retail markets;

• cannot own any security of any other company; and must provide all goods and services on reasonable and nondiscriminatory terms.

•
Prohibition of excessive generation market power.
Investor-owned generation companies and their affiliates cannot own more than 20% of a state's baseload power plants, peaking power plants, and power plants that primarily provide ancillary services.

Worker protections.
Electric utilities can recover the costs of programs that provide for voluntary severance, job retraining, early retirement, continued health care, outplacement and related benefits. States should consider extended unemployment benefits to utility employees terminated due to electricity deregulation. Utilities must prepare plans through which the utility intends to mitigate the impacts of workforce reduction on employees.

Letters of the 107th Congress, 1st Session


October 5, 2001 - Congressman Dennis Kucinich cosigned a letter to Speaker Hastert and Democratic Leader Gephart requesting that language requiring a total of $3.4 billion in Low Income Home Energy Assistance Program (LIHEAP) funding for FY 2002 be included in any final economic stimulus package.

May 15, 2001 - Congressman Dennis Kucinich cosigned a letter to Chairman and Ranking Member of the subcommittee on Appropriations requesting an increase in funding to assist in the deployment of alternative fuel vehicles on America’s roads and highways.

May 5, 2001 - Congressman Dennis Kucinich cosigned a letter to the subcommittee on interior appropriations supporting the Department of Energy’s Clean Cities Program which promotes alternative fuel vehicles.

May 3, 2001 - Congressman Dennis Kucinich signed on to a letter to Chairman Sonny Callahan, Ranking Member Peter Visclosky of the Subcommittee on Energy & Water Development, and to Chairman Joe Skeen and Norman Dicks of the Subcommittee on the Interior. This letter requested sustained support for the energy efficiency and renewable energy research and development programs.

March 13, 2001 - Congressman Kucinich and the Progressive Caucus sent a letter to Minority Leader Richard Gephardt requesting a meeting to discuss an appropriate response to high energy prices around the country.

February 26, 2001 - Congressman Dennis Kucinich cosigned a letter to Secretary of Energy Spencer Abraham Congratulating him on his appointment and requesting the Secretary’s support concerning the Low Income Home Energy Assistance Program.

February 23, 2001 - Congressman Dennis Kucinich cosigned a letter to President George W. Bush requesting an increase in Budget Submittal for the Low-Income Home Energy Assistance Program with respect to Fiscal Year 2002.

February 12, 2001 - Congressman Dennis Kucinich signed on to a letter to Vice President Dick Cheney expressing his enthusiasm for working with the Vice President on the newly formed committee on Energy Policy.

February 9, 2001 - Congressman Dennis Kucinich cosigned a letter to President George W. Bush requesting an increase in appropriations for LIHEAP, and an emergency supplemental appropriation of $150 million for the Weatherizing Assistance Program.

January 24, 2001 - Congressman Dennis Kucinich cosigned a letter to President George W. Bush requesting the President’s support for LIHEAP.

January 24, 2001 - Congressman Dennis Kucinich signed on to a letter to President George W. Bush requesting funds for Low Income Home Energy Assistance Program.

January 23, 2001 - Congressman Dennis Kucinich cosigned a letter to Secretary of Energy Spencer Abraham acknowledging Ohio’s qualification for an Industry of the Future grant.

January 8, 2001. Congressman Dennis Kucinich cosigned a letter to President George W. Bush requesting $1.8 billion For LIHEAP in Fiscal Year 2002.

January 8, 2001 - Congressman Kucinich rejoined the Renewable Energy and Energy Efficiency Caucus.

Letters


November 2, 2000 - Congressman Kucinich co-signed a letter to the Secretary of Energy requesting that the Department of Energy take immediate steps to investigate the health and environmental legacy of more than one hundred and fifty former nuclear weapons related sites nationwide to protect the former workers and local communities that may have been harmed by these facilities.

October 12, 2000 - Congressman Kucinich co-signed a letter to the Chairman of the Federal Trade Commission requesting that the Federal Trade Commission investigate whether producers and utility companies deliberately lowered production of natural gas last year in order to drive up prices for the winter in the Greater Cleveland area.

April 14, 2000 - Congressman Kucinich co-signed a letter to the Chairman of the Interior and Related Agencies Appropriations Subcommittee requesting funding for the Low-Income Home Energy Assistance Program (LIHEAP), State Energy Programs, DOE efficiency Programs, Federal energy management, and better oil forecasting.

April 12, 2000 - Congressman Kucinich co-signed a letter to the Chairman of the Subcommittee on the Interior House Committee on Appropriations supporting money for increased grants of alternative fuel vehicles. Cleveland is a member of the Clean Cities Program which coordinates this program.

April 11, 2000 - Congressman Kucinich co-signed a letter to the Chairman and Ranking Member of the Appropriations Subcommittee on VA, HUD, and Independent Agencies requesting for the President’s request of the Energy Star Program.

March 30, 2000 - Congressman Kucinich co-signed a letter to the Chairman and Ranking Member of the Energy and Water Development Appropriations Subcommittee urging increases in funding for solar and renewable energy research and development in the FY2001 Energy and Water Appropriations bill.

March 30, 2000 - Congressman Kucinich co-signed a letter to Chairman Packard and Ranking Member Visclosky asking for support of increased funding for renewable energy- solar, wind, biomass, hydrogen, geothermal, hydropower- research and development programs.

March 14, 2000 - Congressman Kucinich co-signed a letter to President Clinton asking for a home heating oil reserve to protect low income people from high heating oil prices. Spikes in the price of heating oil disproportionately harm the poor. The use of a government-owned reserve would benefit consumers both in the Northeast and throughout the country.

February 8, 2000 - Congressman Kucinich co-signed a letter to President Clinton requesting the release of additional Low Income Home Energy Assistance Program (LIHEAP) funds, as well as the release of oil from strategic petroleum reserves. The letter also asks the President to pressure OPEC to increase production and lower prices of oil; to investigate potential price gouging by the oil industry; and to convene and emergency meeting with the oil industry to demand an increase in home heating oil supplies.

February 7, 2000 - Congressman Kucinich co-signed a letter to Vice President Gore and Administrator Carol Browner of the Environmental Protection Agency (EPA) requesting that the EPA create regulation for solid power plant wastes, which are high toxic and contaminate groundwater supplies.

January 26, 2000 - Congressman Kucinich co-signed a letter to President Clinton requesting the release of additional Low Income Home Energy Assistance Program (LIHEAP) funds due to rising heating costs and the bitterly cold winter.

October 14, 1999 - Congressman Kucinich co-signed a letter to Alan Schriber, Chairman of the Public Utilities Commission of Ohio to express his concern about the possible blocking of public participation in the transition plans of the Ohio electric utilities if proposed rules were adopted. By making modifications to the rules in extending the comment period, expanding original objections and other provisions, the public would have sufficient time to scrutinize the transition plans of all Ohio electric utilities.
September 29, 1999 - Congressman Kucinich co-signed a letter to President Clinton urging a veto on any legislation with anti-environmental oil royalty riders attached. The rider blocks a new regulation that forces accurate estimates on the value of oil from federal lands. The estimates are then used to calculate royalties paid to the federal government.

July 15, 1999 - Congressman Kucinich co-signed a letter to Chairman Packard and Ranking Member Visclosky urging their support of increases in funding for renewable energy research and development programs. Investment in these energy programs enhances field diversity, helps insulate the United States from future oil price fluctuations, create high-tech jobs and increase the U.S. market share for energy-supply products.

May 28, 1999 - Congressman Kucinich co-signed a letter to the Chairman of the Subcommittee on Labor, HHS and Education in the House Committee on Appropriations. In support of the Low Income Home Energy Assistance Bill, he requests secured funding to insure that millions of low-income families do not have to choose between heating their homes and putting food on the table.

Bills Cosponsored in the 107th Congress, 1st Session

H.R. 459 - Pipeline Safety Enhancement Act.
A bill to strengthen pipeline safety by enhancing training and evaluation of pipeline employees, creating pipeline inspection programs, improving state oversight, and enacting citizen participation and review.

H.R. 1275 - Fuel Cell Tax Credit Act.
A bill to provide a $1,000 per kilowatt tax credit for fuel cells to encourage their commercialization.

H. R. 2039 - Wholesale Motor Fuel Fairness and Competition Restoration Act.
A bill to require the oil companies to report wholesale gas prices, prohibit price discrimination at wholesale level, and require FTC study of gasoline service stations and pricing practices.

H.R. 876 - Wind Energy Production Tax Credit Act.
A bill to extend the current 1.5 cents/kilowatt-hour tax credit for electricity produced by wind.

H.R. 1459 - Electric Power Industry Tax Modernization Act.
A compromise bill to settle tax related issues between public power and private utilities.

H.R 954 - Home Energy Generation Act.
A bill to promote renewable energy generation in homes by requiring net metering and removing regulatory barriers.

H.R. 245 - Natural Gas Reserve Act.
A bill to create a natural gas reserve modeled after the Strategic Petroleum Reserve and the Northeast Home Heating Oil Reserve.

H.R. 660 - Ban Alaskan Oil Export Act.
A bill to ban Alaskan oil exports to ensure American oil goes to American consumers since current Alaskan oil sales to Asia reduce the supply of West Coast oil and keep prices high.

H.R. 268 - California Electricity Consumers Relief Act
A bill to establish cost based rates for wholesale electricity sales in the western United States now and retroactively last June and to order retroactive refunds for changes above the cost-based rate.

H.R. 4969 - KI Stockpile for Nuclear Accidents.
A bill to require FEMA and NRC to develop a plan to stockpile Potassium Iodine (KI) within a 50 mile radius of a nuclear power plant since taking KI during a radiation release helps prevent thyroid cancer since it blocks radioactive iodine.

H.R. 2174- The Robert S. Walker and George E. Brown Jr. Hydrogen Act of 2001
. A bill to reauthorize and amend the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990.

Bills Cosponsored


HR 5479 - Wholesale Motor Fuel Fairness and Competition Act:
A bill to deter oil companies from engaging in un-fair and anti-competitive practices such as price zoning, redlining, discriminatory wholesale fuel pricing, and a complex and complicated system of cost allocation the companies use that hide the factors on which wholesale costs are based and published.

HR 5345 - Energy Efficient Buildings Incentives Act:
A bill to provide tax deductions for new residential buildings for: efficient heating, cooling, and water heating systems; solar hot water and photovoltaic systems in homes; commercial building with 50% energy savings.

HR 5339 - Fuel Cell Tax Credits:
A bill to provide a $500/kilowatt tax credit for stationary fuel cells going to the purchaser of the fuel cell.

HR 5415 - Public Oversight of Wholesale Electric Rates:
A bill to provide a wind fall profits tax on wholesale electric rates in the Western System Power Grid.

HR 4792 - Comprehensive Pipeline Safety Improvement Act:
A bill to increase pipeline safety requirements via: standardized safety practices; public access to inspection reports; increasing fines for pipeline safety violation; requires certification procedures for increased safety.

HR 4969 - Potassium Iodine Stockpiling for Nuclear Power Plant Accident:
A bill requiring Potassium Iodine (KI) to be stockpiled by the Federal Emergency Management Agency (FEMA) in case of a nuclear power plant releases radiation.

HR 4977 - Resource Efficient Appliance Incentives Act:
A bill to provide a tax credit for energy efficient close washers and refrigerators that goes to the manufacturer.

HR 3608 - Home Heating Oil Prices Stability Act:
A bill to provide the Secretary of Energy with authority to create a Fuel Oil Product Reserve to be available for use when fuel oil prices in the United States rise sharply because of anti-competitive activity, during a fuel oil shortage, or during periods of extreme winter weather.

HR 1705 - A bill to amend the Clean Air Act to waive the oxygen content requirement for reformulated gasoline and to phase-out the use of MTBE, and for other purposes.

H.R. 3558 - Safe pipelines Act of 2000:
A bill to improve the safety of pipelines by requiring Federal certification, corrosion testing, notice of spills, hydrostatic testing, pipeline maps, studies on external leak detection, double walled pipelines, minimum burial depth and cost/benefit analysis by the National Transportation Safety Board.

HR 721 - Bond Fairness and Protection Act of 1999:
A bill which provides for tax-exempt bond financing of certain electric facilities.

HR 750 - A bill to provide a 5-year extension of the credit for producing electricity from wind.

HR 1358 - Energy Efficient Affordable Home Act of 1999:
A bill to provide tax credits for making energy efficiency improvements to existing homes and for constructing new energy efficient homes.

HR 2900 - Clean Smokestacks Act of 1999:
A bill to reduce emissions from electric powerplants.

HR 2980 - Clean Power Plant Act of 1999:
A bill to reduce emissions of mercury, carbon dioxide, nitrogen oxides, and sulfur dioxide from fossil fuel-fired electric utility generating units operating in the United States.

HR 2947 - Home Energy Generation Act:
A bill to providing for the use of net metering by certain small electric energy generation systems.

HR 2569 - Fair Energy Competition Act of 1999:
A bill to support State programs for renewable energy sources, universal electric service, affordable electric service, and energy conservation and efficiency.

HR 2380 - Energy Efficient Technology Tax Act:
A bill to provide incentives to reduce energy consumption.

http://www.house.gov/kucinich/issues/energy.htm