A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)

September 12, 2008

Dear Friends,

Yesterday, Americans from all walks of life and every political party put aside their differences to come together as a nation and remember the terrorist attacks that occurred seven years ago.  We dedicated a memorial in Washington, D.C. to the victims at the Pentagon, and cities and towns across Georgia and the nation held special services to remember the lives lost in New York, Washington, and Pennsylvania, as well as to honor our first responders who dedicate their very lives to keep our communities safe each day.  The attacks on September 11, 2001, changed our nation and struck at the heart and soul of our country, but they did not diminish it.  They only made our dedication to freedom stronger than ever.

There is no doubt that September 11 was a wake-up call. I’m so proud of our country and especially our men and women in the armed forces. It is imperative now more than ever that we remain diligent and continue our efforts against terrorism to protect our homeland and fight for freedom around the world.

Gas Prices and Energy
I have great concerns with the significant increase in gas and oil prices and its effects on the American economy and on the family budget. Georgia families and businesses are suffering because of the escalating high cost of energy, and I believe that doing nothing is not an option. For months now, I have been calling for Republicans and Democrats to put aside their differences on energy and come together with a solution.

On August 1, before the Congressional recess, I joined a bipartisan coalition of Senators led by Saxby Chambliss, R-Ga., and Kent Conrad, D-N.D., with a starting point: a proposal to reduce gas prices, lesson our nation’s dependence on foreign oil and strengthen America’s economy.  This proposal is exactly the kind of productive result I have been seeking and exactly the kind of action thousands of Georgians have told me they want to see from Congress on the energy issue.

The comprehensive New Energy Reform Act of 2008 — better known as the “New Era” — calls for increased domestic production through off-shore drilling, a commitment to nuclear energy, a focused effort to transition the nation’s motor vehicle fleets to fuels other than gasoline and diesel, and conservation provisions. The New ERA proposal contains three main components, including urgently needed, timely domestic production of energy resources, including drilling off-shore for oil and natural gas and utilizing nuclear energy; an intensive effort to transition vehicles to non-petroleum based fuels; and a robust federal commitment to conservation and energy efficiency. 

This proposal would open additional acreage in the Gulf of Mexico off the coast of Florida, Alabama, Mississippi and Louisiana for leasing. It would also allow the states of Virginia, North Carolina, South Carolina and Georgia to opt in to leasing off their shores. The proposal focuses on these areas because they are the areas that would allow us to get oil and gas out of the ground and to American consumers the fastest.

The proposal includes support for nuclear energy by increasing staff at the Nuclear Regulatory Commission, providing workforce training, accelerating depreciation for nuclear plants, and supporting research and development on spent fuel recycling to reduce nuclear waste.

To ease gas prices and protect our environment in the long term, the proposal includes a significant federal commitment to promoting conservation and efficiency, including $2.5 billion in research and development on next generation biofuels and infrastructure. Georgia is a leader in the emerging cellulosic ethanol industry and would directly benefit from this new federal commitment.

The proposal would also fund a $20 billion “Apollo Project”-like effort to support the goal of transitioning 85 percent of America’s new motor vehicles to non- petroleum-based fuels within 20 years.

The $84 billion in investments in conservation and efficiency in the New ERA proposal will be fully offset with loophole closers and other revenues. Approximately $30 billion will come from new revenues from the oil and gas industry through such measures as modifying the Section 199 manufacturing deduction for oil and natural gas production and other appropriate measures to ensure that the federal government receives its fair share of revenue from Gulf of Mexico leases. Plans to modify the Section 199 manufacturing deduction are not a windfall profit tax. It is the elimination of a domestic production tax credit.  

Since announcing our proposal, our coalition has doubled from ten members to twenty, evenly divided between Democrats and Republicans who agree that immediate action is needed, because this issue is affecting the daily lives of all Americans.  In addition to Senators Chambliss, Conrad and me, the members now include Senators John Warner, R-Va., Tim Johnson, D-S.D., Lindsey Graham, R-S.C., Mary Landrieu, D-La., John Sununu, R-N.H., Blanche Lincoln, D-Ark., Norm Coleman, R-Minn., Tom Carper, D-Del., John Thune, R-S.D., Ben Nelson, D-Neb., Mark Pryor, D-Ark., Bob Corker, R-Tenn., and Ken Salazar, D-Colo., Susan Collins, R-Maine, Evan Bayh, D-Ind., Elizabeth Dole, R-N.C, and Amy Klobuchar, D-Minn.

Due to efforts that began in June with members of our bipartisan group, Majority Leader Harry Reid, D-N.V., today convened an energy summit we requested to bring together experts on energy policy to present proposals on how America can reduce gas prices, lessen America’s dependence on foreign oil, and strengthen the nation’s economy. 

I am pleased to see the efforts from my colleagues in the Senate and the U.S. House of Representatives during the break are already paying off.  I hope that these efforts will bring about the opportunity for meaningful steps to become energy independent.  We have yet to see what actual legislation will be brought for a vote, but I look forward to having the opportunity to vote for steps such as lifting the moratorium on offshore drilling when it expires at the end of September.  To view my full position on energy, please click here.

Mileage Deduction Increase for Volunteers
This week, I signed on as a co-sponsor for legislation that would help volunteers deal with rising gas prices by increasing the mileage deduction rate allowed for charity work.  Specifically, the Giving Incentives to Volunteers Everywhere Act of 2008 would amend the Internal Revenue Code to permanently increase the standard mileage rate for use of a passenger automobile for charitable purposes to 70 percent of the current rate for business usage.

In June, the IRS increased the mileage rate for business use from 50 cents per mile to 58.5 cents. Under this legislation, the IRS would have to increase the charitable deduction from its current level of 14 cents per mile to about 40 cents per mile. In the future, when the IRS makes new adjustments to the business rate, the charity rate would also get a proportional increase. The legislation also amends the Internal Revenue Code to exclude from the gross income of charitable volunteers reimbursements paid to them for the use of a passenger automobile for the benefit of a charitable organization.

No matter where you look today, you can see the effects of out-of-control gas prices. It's not just the painful price of filling up the family car. It’s the trickle-down effect these unprecedented prices are having on organizations that rely on volunteers to drive seniors to doctor’s appointments or deliver meals to homebound individuals. Congress hasn’t adjusted the mileage deduction for volunteers since 1997 when gas was $1.25 a gallon. Updating the tax code to reflect today’s costs not only makes sense, but will encourage volunteers to continue providing these essential services in their communities.

August Recess
During the August recess, I enjoyed visiting much of the state and hearing directly from Georgians the issues that were foremost on your minds.  I specifically appreciated hearing from old and new friends in Albany, Atlanta, Butler, Cartersville, Columbus, Gray, Jeffersonville, Johns Creek, Leary, Macon, Marietta, McDonough, Newnan, Perry, Talbotton and Thomaston.  Thank you to all of you who came out to meet with me and share your ideas for how best to improve the nation we all love.

If you have comments or feelings you wish to share from this newsletter, please click here so that we may read and respond to your comments as speedily and effectively as possible.

What’s on Tap?

Next week, the Senate will continue debate on S.3001, the fiscal 2009 defense authorization bill and begin debate on energy legislation.

Sincerely,
Johnny Isakson