Corker touts ‘Gang of 10’ energy initiative

Sen. Bob Corker

U.S. Sen. Bob Corker was at Lipsomb University Tuesday touting his involvement with the “Gang of 10,” a bipartisan group of United States senators that has banded together and proposed new energy legislation.

The group is a bipartisan coalition led by Kent Conrad (D-N.D.) and Saxby Chambliss (R-Ga.). In addition to Corker, it also includes John Thune (R-S.D.), Lindsey Graham (R-S.C.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Johnny Isakson (R-Ga.), Mark Pryor (D-Ark.), and Ben Nelson (D-Neb.).

They have introduced legislation that they feel will "reduce gas prices, lessen our nation's dependence on foreign oil, and strengthen America's economy."

Called the "Comprehensive New Energy Reform Act of 2008," the legislation has three main components: An "intensive effort to transition vehicles to non-petroleum based fuels, a robust federal commitment to conservation and energy efficiency, and targeted responsible domestic production of energy resources."

Corker expanded on those points Tuesday, saying the reason he thinks the plan will succeed is because it has bipartisan support. He noted that, hours after the first draft of the plan was unveiled last week, Democratic presidential candidate and Senate colleague Barack Obama changed his energy position on offshore drilling.

Obama said that he would consider offshore drilling as long as it was part of a larger, more comprehensive plan that would decrease our nation's dependence on foreign energy.

In the plan co-authored by Corker, offshore drilling would be concentrated in areas like the Gulf Coast and the Atlantic seaboard where there is already infrastructure in place. It also would establish a 50-mile coastal buffer zone where new oil production is not allowed.

In a nod to Democrats in the "Gang of 10" who support offshore drilling, Corker and his Republican colleagues have called for the closing of a tax loophole. That loophole, called Section 199, has been a significant benefit to oil companies. According to Corker, when the section was placed in the federal code, it was not meant to do so and by closing the loop it would pay for other aspects of the bipartisan energy proposal.

Other components of the plan include extending the renewable energy and energy efficiency tax incentives through 2012, introducing consumer tax credits up to $2,500 to purchase "highly efficient vehicles," and launching significant investments for research and development into next-generation biofuels and infrastructure.

Corker added that finding new energy solutions is vital by pointing out that the United States has 4 percent of the world's population and 3 percent of its oil, but uses 25 percent of world oil production.

When asked if the "Gang of 10" plan would affect prices at the pump, Corker said if adopted, this initiative would "immediately affect households." He said that the price of oil is largely based upon speculative and political factors.

"If the president of Iran got up to today and said nice things, the price of oil would drop. If he wakes up and does some saber rattling, it will increase."