| Remarks by Governor Ted Kulongoski |
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| May 4, 2006 |
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Gas Pricing Website Launch
Thank you for joining us today to talk about an issue on everyone’s minds: gas prices. This issue is dominating the news and impacting all of our lives – particularly those of many working families who are being forced to pay over $3 per gallon at the pump in order to get their kids to school, themselves to work and meet their families’ needs.
While the state has no direct control over gas prices, Oregon is very fortunate to have an Attorney General like Hardy Myers who has a long record of protecting Oregonians against predatory business practices. In a few minutes, he will share with you a new tool that his office has created so that Oregonians can take an active part in making sure oil companies aren’t profiting unlawfully from working Oregonians.
But first, I want to recognize a few people here today who have been leaders at the state, local, and private sector levels to educate the public about smart fuel-use. They have worked tirelessly to educate the public, expand opportunities and incentives for Oregonians to exercise conservation into their businesses and their daily routines, which benefits both our environment and their wallets.
Mike Grainey is here today from the Department of Energy, which is the most important agency in moving Oregon forward toward energy independence and which has been a leader in providing innovative tax credits to residents and businesses interested in carpooling, investing in alternative fuel vehicles or developing renewable energy projects.
Tri-Met has also been a great partner along with Mike Jordan from Metro and Matt Garrett and Jason Tell from ODOT. All three agencies have been key to the ‘Drive Less. Save More.’ campaign, which I will discuss later. I would also like to thank AAA and Elliot Eki for their partnership to help us all learn how we can make the most out of the trips or errands we make in our cars.
It is not lost on anyone that over the last several weeks, our nation has experienced extreme spikes in gas prices. I have been as frustrated as anyone by this sudden jump without any logical explanation/justification. I find this particularly frustrating when I know that we do have some control over the kind of energy we rely upon, and that we could have an abundance of alternative options that are clean-burning, energy-efficient and cost-effective fuels.
Just this last week, 15 Governors and I joined together, again, to urge the Administration to get serious about investigating price gouging, promoting alternative energy, rolling back oil and gas subsidies, and halting deposits into the strategic oil reserve.
As I said, it is very frustrating when the federal government refuses to hold the oil and auto industries accountable, and then also tries to challenge state authority to take action and implement strong, but reasonable, vehicle emission standards.
That’s why the Attorney General and I joined nine other states in a lawsuit against the federal government for not being more aggressive in setting fuel economy standards and for trying to halt our ability to set our own emissions standards.
As I said earlier, the states have few options as far as setting gas prices, which is all the more reason why individual states need to be able to exercise their right to enact policies that protect and reflect the will of their citizens. In Oregon, the Attorney General and I know that means providing more clean-burning and fuel-efficient vehicles.
As I said, we are fortunate to have Hardy Myers as our Attorney general. The same is true for Oregon’s Senior Senator, Ron Wyden, who also fights this battle on our behalf in Washington, D.C. I appreciate his relentless pursuit for what is not only right, but for what is very reasonable.
Now, I’d like to ask the Attorney General to make some comments and show us the website and share his efforts through the National Association of Attorneys General to protect citizens across the nation from unlawful business practices.
Thank you, Hardy. Oregonians will be well-served by this new resource and I certainly agree that we must have the tools in place to stop price gouging should it ever enter our borders, particularly following a catastrophic event.
As Governor, I encounter people from all walks of life every day, and one of the most common questions I get is, “What can I do to reduce my gas bill?” There isn’t a short-term fix to the prices we’re experiencing, but there are ways that we can adapt our daily routines and make smarter choices, which will deliver greater savings.
One public-private partnership – the ‘Drive Less. Save More.’ campaign – has been up and running for a few months now, but is particularly useful and practical given the price of gas. This public information campaign outlines ways we can be smarter about how we use our cars to meet our everyday needs. It points out the benefit of planning, not only outings, but routes, so as to make the most of the fuel you use to get to your destinations.
There are information packets here today and the website is easy to remember: www.drivelesssavemore.com. What’s great about this site is that the tips aren’t an inconvenience. They are practical and easy to incorporate without interrupting your daily lives.
In addition to being smarter with our fuel, there are also many opportunities for businesses in Oregon to be smarter about their bottom lines by taking advantage of the many different tax credits available for investing in energy and fuel-saving programs. For example, the Business Energy Tax Credit reimburses companies for their investments in transit passes, carpooling, vanpooling and telecommuting. More than 300 businesses in Oregon have invested nearly $18 million in these efforts, reducing more than 316 million vehicle miles.
New car shoppers should also take notice that if they buy a hybrid vehicle, the state offers a tax credit of $1,500 for hybrid vehicles purchased for personal use. The federal government also has a tax credit for hybrid vehicles ranging from $650 to $3,150.
The Oregon Department of Energy has more information on business and residential energy tax credits, which is available here today and can be linked to from the website we’re launching today.
I also believe that the state should lead by example, which is why we have been taking the investment in alternative fuels seriously. As of May 1 – this last Monday – 23 percent of the state fleet is either a hybrid or runs on alternative fuels, like ethanol or biodiesel. And last fall, the state use of these vehicles has delivered nearly $40,000 in fuel-cost savings for Oregon taxpayers. That adds up to approximately $160,000 directed toward other critical programs instead of gasoline for state cars.
All of the programs we’ve highlighted are important, and when coupled, do make a significant difference to our environment and our economy.
But we must look longer-term and set our sights higher. We must continue taking aggressive steps to make Oregon truly energy independent, that is independent from our addiction to fossil fuels and foreign oil. Doing so is good for the environment, and over time, good for our wallets. It is with that in mind that I have committed to sponsoring and fighting for an ambitious bio fuels legislative package next session.
It is why I am committed to setting Oregon on a path to derive 25% of our energy from renewable energy by 2025. It is why I am going to continue to advocate for stricter vehicle emissions standards, and why I am not going to back down from my goal of state government leading by example again and using 100% renewable energy by 2010.
If we put my Energy Independence Plan into place, and my vision becomes a reality, Oregon will be a national leader in renewable energy use and production. Oregon will not be dependent upon foreign oil. And none of us will be beholden to the prices set by the oil industry ever again.
So now it’s up to all of us to adopt short-term strategies to minimize the impact of the high price of oil while advancing long-term strategies so our children and grandchildren won’t be facing the same challenges we’re talking about today.
With that, I can open to questions.
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