Letter to the Speaker of the House of Representatives on Extension of the Energy Policy and Conservation Act

Dear Mr. Speaker:

While the U.S. economy is the strongest it has ever been and inflation and unemployment remain at historically low levels, high oil prices have caused concern for many Americans. As a short-term measure, my Administration urged oil-producing nations to take steps to narrow the gap between worldwide production and consumption of crude oil in order to preserve sustained worldwide economic growth. Our focused diplomatic efforts helped produce tangible commitments by oil-producing nations to increase production to more appropriate levels that reflect current demand in the global economy.

While my Administration has worked hard to increase the supply of oil on the market, the House has failed to take one of the most critical steps necessary to maintain America's energy security—an extension of the Energy Policy and Conservation Act (EPCA), which includes authority to operate the Strategic Petroleum Reserve (SPR), authority that expires today. The option to use the SPR is an essential line of defense against an interruption in oil supplies. Although the Senate passed a four-year straight reauthorization of EPCA, the House has failed to act. It is critical that the House reauthorize EPCA immediately to ensure that the United States maintains its ability to use all available tools to respond to the needs of the U.S. economy.

In addition, Congress should address other energy measures. Congress should pass my comprehensive tax package, which includes new tax incentives for domestic oil producers to reduce U.S. reliance on oil imports, as well as other incentives to promote energy efficiency and renewable sources of energy that Congress has failed to enact. Congress should also fully fund the more than $1.4 billion that I have requested in my fiscal year 2001 Budget and 2000 Supplemental to promote energy security through the use of domestic energy technologies, including more efficient homes and buildings, a new generation of more efficient vehicles, renewable energy sources, and natural gas.

Finally, I have proposed the establishment of a regional home heating oil reserve in the Northeast to reduce the likelihood of future heating oil shortages. Congress should authorize a reserve with an appropriate trigger to release heating oil to the market in the event of a supply shortage. I have directed the Department of Energy to begin the appropriate environmental reviews of the proposal to determine the correct approach to creating this reserve.

These critical steps will strengthen the sound, comprehensive energy strategy that has helped sustain the longest economic expansion in American history. They will enhance America's energy security, create jobs, protect the environment, and produce long-term savings for consumers. Congress should waste no more time in enacting these measures into law.

Sincerely,

WILLIAM J. CLINTON