Consumer First Energy Act of 2008

The Consumer First Energy Act of 2008^[1] is a set of initiatives laid out by the US Democratic Party on Wednesday May 7, 2008. The plan was first mentioned by House Speaker Nancy Pelosi on April 27, 2006. The initiative has been roundly criticized as economic nonsense and an effort to scapegoat energy companies rather than make meaningful efforts to address the stagnant supply of oil in a world of skyrocketing demand.

The few details that have been released include:

• A 25% windfall profit tax on any energy company that didn't invest in new energy sources. This would increase the cost of energy by a significant margin as energy companies would pass the cost on to consumers, driving down demand and in theory eventually leading to lower costs.

• End $17 billion in tax breaks to energy companies. This would increase the cost to consumers by roughly $17 billion, as energy companies would recoup the loss through price increases.

• Prevent the Dept of Energy from adding to the Strategic Petroleum Reserve until the price of crude oil averaged under $75 for 90 days. This is largely a cosmetic move, as this amounts to 70,000 barrels (11,000 m³) of oil each day compared to the 90,000,000-barrel (14,000,000 m³) per day demand worldwide.

• Require the CFTC to boost Margin requirements for Oil futures.

The bill was debated on 5 June 2008 ^[2], and filibustered in the Senate on 10 June 2008^[3]

References

1. ^ "Consumer First Energy Act of 2008 - US Senate"
2. ^ "Senate website - see the floor schedule section (may be relocated at a future date)"
3. ^ Tax Hike on Oil Profits Blocked, Washington Post, 11 June 2008.