Congressman Jerry McNerney

By Caitilin McAdoo

February 28, 2008

Congressman Jerry McNerney, D-Pleasanton, played a major role in drafting legislation passed by the U.S. House of Representatives yesterday that would repeal $18 billion in tax subsidies to oil and gas companies, McNerney’s spokesman Andy Stone said.

The legislation, the Renewable Energy and Energy Conservation Tax Act of 2008, passed by a vote of 236 to 182, according to the office of the clerk.

The act, HR5351, eliminates current subsidies to oil and gas companies and uses the resulting funds to offset the extension and expansion of tax subsidies to renewable and clean energy sources, according to Stone.

Current subsidies for renewable energy sources are set to expire at the end of this year, Stone said.

The act also has some new provisions, such as tax credits for energy efficient buildings and plug-in hybrids, Stone said.

McNerney, who spent more than 20 years researching clean energy sources, has been a strong advocate for renewable energy sources since being elected to Congress, Stone said.

The U.S. Senate must now pass a similar piece of legislation before the act can go to President Bush for approval.

The vote today came shortly after the five largest oil companies reported record profits for 2007, including ExxonMobile, which posted profits of more than $40 billion, according to Stone.

“Congressman McNerney doesn’t have a problem with companies making profits; he just doesn’t think taxpayers should subsidize them,” Stone said.

According to a statement issued last week by Citizens Against Government Waste, a private non-partisan, non-profit watchdog group that opposes the legislation, the $18 billion tax increase for oil and gas companies could destabilize the markets and result in cost increases being passed onto consumers.