DeStefano Announces Energy Independence Plan for Connecticut

July 03, 2006

Veterans and State Legislative Chairman of VFW join DeStefano at state capitol on eve of July 4th - propose plan to lessen reliance on foreign oil, create energy institute at UConn.

New Haven - As America celebrates Independence Day tomorrow, John DeStefano - Democratic candidate for Governor - today announced a series of steps to reduce Connecticut's reliance on foreign oil and reduce the cost of energy for working families. Highlights of the proposal include the creation of an Institute of Energy at the University of Connecticut, the use of state pension money to develop clean and renewable energy, and incentives for the use of hybrid and flex-fuel vehicles. DeStefano also called for strict price-gouging standards in Connecticut to protect consumers from price-gouging from big oil companies. He was joined at the news conference by Scott Slifka - Democratic candidate for Lt. Gov., Michael J. Fox, State Legislative Chairman for the VFW, and numerous veterans.

"On this July 4th holiday, as we celebrate our nation's independence, it is becoming increasingly clear that working families are far from independent when it comes to their energy needs," said John DeStefano. "Families are getting squeezed, while Big Oil executives make record profits and hostile foreign governments keep cashing in."

"Connecticut must systematically increase energy source diversity to keep costs stable in an environment in which oil and gas prices will continue to be volatile and sky-high," said DeStefano. "State resources must be directed in a targeted fashion to developing alternative energy sources - something Governors Rowland and Rell have failed to do. Even worse, they have followed the failed policies of President George W. Bush by slashing funding for the development of clean, renewable energy technologies and for energy conservation."

As governor, DeStefano would implement the following plan to promote energy independence:

- Establish strict price-gouging standards in Connecticut and urge the attorney general to use the force of law to protect consumers and sue oil companies making excessive profits.

- Encourage the use of E85 vehicles, also known as "flex-fuel" vehicles, which use a combination of 85 percent ethanol and 15 percent gasoline. More than 6 million vehicles in the U.S. can use E85 fuel but Connecticut has only one E85 station. Connecticut should leverage the 30 percent federal tax credit (up to $30,000 per year) provided for installation of E85 fueling stations with an additional 15 percent state tax credit (up to $15,000 per year).

- Allow motorists who drive hybrid vehicles and "flex-fuel" vehicles that get at least 40 miles per gallon to use High Occupancy Vehicles lanes and encourage municipalities to provide free or discounted parking to such vehicles.

- Urge Congress to enact HR 3936 which would impose tough anti-gouging policies on oil and gas companies, all of whom have benefited enormously from Bush administration policies (and who gave Bush $120 million in campaign contributions).

- Urge Congress to reverse the Bush administration's senseless energy plan that rewards gas guzzlers such as Hummers with $25,000 tax credits, compared to $2,000 credits for hybrids.

- Invest $200 million in a new Energy Institute at the University of Connecticut to spearhead and coordinate alternative energy research, create endowed chairs and help create thousands of jobs. The institute would partner with the Connecticut Center for Advanced Technology and the Institute for Sustainable Energy at Eastern Connecticut State University.

- Devote $50 million of Connecticut's $22 billion state pension fund to the development of clean, renewable energy.

- Use $25 million to match federal grants that support research, development and implementation of Class I and II renewable energy projects.

- Create a $3 million clean energy revolving fund that would help businesses, schools, hospitals and other major energy users to upgrade their equipment.

In 2005, the United States spent more than $300,000 a minute on foreign oil and petroleum imports comprised almost 30 percent of the nation's trade deficit. At the same time, energy prices have soared - helping oil companies realize record profits while making it harder for working families to make ends meet.

Working families are drastically affected by the rising costs of oil: an analysis by the Center for American Progress determined that from March 2001 to May 2006, the costs of traveling to work for people earning minimum wage increased by almost 105 percent. In addition, 23.2 million families who earned less than $24,102 in 2004 spent almost 8 percent of their annual income on gasoline (Bureau of Labor Statistics).

While working families are facing exorbitant energy costs, oil and gas companies are making unbelievable profits. According to the Washington Post, the 2004 profits for ExxonMobil, Chevron, and Conocophillips broke records across all industries; in 2005, Exxon made a record-breaking $36 billion in profits, the highest profit ever recorded by a corporation. Between 2002 and 2005, the median compensation for energy industry CEOs increased by 215 percent, the largest increase in compensation for CEOs in every industry.

At the same time, our reliance on foreign countries which supply our oil increases - threatening our national security. In 2005, the Persian Gulf countries received $41.5 billion for oil and oil-related products from the United States.

Working towards energy independence will not only help Connecticut's working families make ends meet and grow jobs, it will benefit our environment. The reduction of toxic emissions, for example, could help to reduce Connecticut's asthma rates - which are among the highest in the nation.

"It makes sense that on the 4th of July, as we celebrate our nation's independence, that we take a stand against the increasing control foreign countries have over our ability to make ends meet," said DeStefano. "Reducing our reliance on foreign oil will mean lower energy costs and an improved environment, but it could also spare us from sending more of our children to the Middle East for another misguided war."

Michael J. Fox, State Legislative Chairman of the VFW, said, "I speak for veterans who are tired of paying high fuel prices. John DeStefano's policy would help create independence and stop the price-gouging."

Lee Cruz, a former U.S. Marine and current New Haven resident, said "Our energy dependence is funneling billion of dollars from our families to oil executives and hostile governments. If we don't do something about this, who will? Connecticut can be a leader and John DeStefano is leading the way."