Schakowsky Introduces the Consumer Energy Relief Act

SCHAKOWSKY INTRODUCES THE CONSUMER ENERGY RELIEF ACT

Washington, D.C. – On the same day Exxon Mobil posted the largest quarterly profit in U.S. history, U.S. Representative Jan Schakowsky (D-IL) introduced H.R. 6653, the Consumer Energy Relief Act, to hold oil companies and speculators accountable for manipulating the price of oil and to provide Americans with immediate and long-term relief from high energy prices. H.R. 6653 would impose tighter regulations on excessive oil speculation, crackdown on price gouging and implement a windfall profits tax to be used to promote energy efficiency and the development of renewable energy.

"Today's announcement by Exxon Mobil proves that oil companies are earning the largest profits in history at the expense of hard-working Americans. As millions of Americans try to figure out how they will get to work or take their kids to school, oil company executives are lining their pockets with record profits and unscrupulous oil speculators are laughing all the way to the bank,... said U.S. Representative Jan Schakowsky (D-IL). "My bill targets the manipulative practices of oil companies and speculators that have made a fortune by unreasonably jacking up the price of gas. My bill also provides both short and long-term relief from rising energy costs by implementing a comprehensive strategy to reduce America's dependence on oil while also driving down the price of gasoline....

The Consumer Energy Relief Act of 2008 will help lower the price of gasoline and reduce our dependence on oil by:
• Imposing tighter regulations on excessive oil speculation;
• Instituting stricter penalties on price gouging by oil companies;
• Implementing a windfall profits tax.

The money collected from the windfall profits tax would be distributed to states to be used for energy assistance for low-income families, financial assistance for the purchase of hybrid and energy efficient vehicles, financial assistance for the purchase of energy efficient appliances. In addition, the bill funds research and development of renewable energy, which will reduce our dependence on oil and provide thousands of new "green... jobs.

Today, Exxon Mobil announced that its second quarter profit soared to $11.68 billion-the largest quarterly profit by a U.S. corporation in history. Exxon Mobil has already earned $22 billion in profits this year and it is projected to make a record high $52 billion by the end of the year-$12 billion more than last year. The five largest oil companies in the U.S. are projected to make an estimated $168 billion.