Mr. Chairman, thank you for the opportunity to testify before the Subcommittee on two energy issues that are important to my constituents in Illinois, as well as consumers across the country. As you may be aware, the Chicago region is currently faced with some of the highest energy costs in the nation. This is costing real people real money.

Did you know that the average household in America spends nearly $1,300 per year on home energy costs? This is an average of more than $100 per month. Again, this is real money for real people.

I would like to address two issues today 1) the need to address the tax treatment of nuclear decommissioning funds, and 2) a bill I am introducing later today to allow for a tax credit for making energy efficient home improvements to a newly constructed or existing home.

As you may know, I have more nuclear power plants in my district than any other Congressional district in the United States. This industry is important to my constituents because it provides electric power and jobs for thousands of people. For the past two years, I have been the lead sponsor of legislation to make ensure that, in a competitive electricity market, funds continue to be available to pay for safe and timely decommissioning of nuclear power plants. I believe that this is a public policy we want to encourage.

The tax rules governing these funds are out of date because of electric utility restructuring. Adjustments to the tax code need to be made to ensure that policies are kept in place which ensure that nuclear power plants are decommissioned as they should be. To this end, during the 106^th Congress and again this year, Congressman Cardin and I have introduced legislation to modernize the tax provisions related to decommissioning nuclear power plants. Last Congress, portions of this legislation were included in a large tax bill which passed the House and Senate and was sent to President Clinton and ultimately vetoed. I am pleased that this year, President Bush has included provisions related to decommissioning nuclear power plants into his budget. Our legislation adapts the tax code to reflect the competitive utility market that exists today. It helps facilitate the transfer and sale of nuclear power plants. I believe that ensuring that nuclear power plants are decommissioned safely is a policy we should all support. I encourage my colleagues to join me in doing so.

While I strongly believe that enacting this legislation to encourage proper decommissioning of nuclear power plants is the right thing to do, I also believe that given the skyrocketing energy costs consumers are facing, we should also look for ways to conserve energy and slow the rising demand which is driving up costs. To this end, I will be introducing legislation later today which will provide a 20% tax credit, up to $2,000, to individuals and homebuilders for making at least 30% in improvements to the energy efficiency of new and existing homes. This includes installing new windows, insulation, energy efficient air conditioners, water heaters and home heating appliances.

This tax credit will significantly reduce the demand on the nation's power grid and lower costs for consumers. In 1998, there were an estimated 74 million single family homes, 6 million multi-family homes and 6 million manufactured housing units in the United States which accounted for nearly 92% of total household energy consumption. Additionally, in 1998, homes accounted for nearly 20% of all of the energy consumed in the United States.

By simply making changes in energy efficiency to their homes, consumers can save real money. Consumers can save 10% or more on energy bills by simply reducing the number of air leaks in their home. Double pane windows with low emissivity coating can reduce heating bills by 34% in cold climates like Chicago.

If all households upgraded their insulation to meet the International Energy Conservation Code level, which is a private sector energy code used in the United States, the nation would experience a permanent reduction of annual electric consumption totaling 7% of the total consumed. This is a real savings.

This proposal doesn't only benefit individuals, but it benefits the environment and the entire economy. Reduced energy consumption reduces our reliance on imported oil. By increasing energy efficiency in homes, the emission of greenhouse gasses is significantly reduced. At the same time, construction and improvements made to homes will create new jobs.

Mr. Chairman, I encourage my colleagues to join me in supporting this common-sense, long-term energy efficiency measure. I believe that it is in the best interests of our country to reduce our reliance on foreign energy sources by supporting and encouraging proper use and decommissioning of nuclear power plants, as well as conservation of enehrgy by encouraging consumers to make energy efficient home improvements.

I appreciate the opportunity to testify before the Subcommittee regarding these important issues and I would be pleased to answer any questions.