Capitol Hill

U.S. energy policy—or lack thereof—has become a leading issue for the 2008 general election as more voters realize energy costs are inextricably linked not only to the U.S.'s economic performance but to their personal wealth, as well.

For most people, this awakening stems from higher gas prices, which affect all socioeconomic classes and have caused a shift in poll results that show Americans favor domestic drilling, even in the Arctic National Wildlife Refuge. This pro-exploration, pro-drilling shift is expected to solidify as consumers receive higher utility bills and continue to pay more for oil.

Dual roles

The roofing industry plays dual roles in the U.S. energy-policy equation.

On the demand side, roofing is an important part of the "green" building movement, which can save energy and reduce carbon emissions.

H.R. 4126, The Roofing Energy Efficiency Tax Act of 2007, would shorten the current 39-year tax depreciation schedule to 20 years for commercial roof systems that meet ASHRAE Standard 90.1, "Energy Efficient Design of New Buildings Except Low-Rise Residential Buildings," and it has 24 bipartisan House co-sponsors.

And in the Senate on July 8, Sens. Maria Cantwell (D-Wash.) and Gordon Smith (R-Ore.) introduced S. 3228, a bill to allow tax credits for installing "green" roof systems (defined as vegetative/landscaped roofs) on residential and commercial buildings; credits would be 30 percent of the installation cost for residential roof systems (capped at $2,000) and 10 percent of the installation cost for commercial roof systems (no cap).

However, the energy-use side of the equation involves increasing economic pressure being imposed on the roofing industry because of its extreme sensitivity to raw material price increases.

According to the Freedonia Group, domestic consumption of asphalt in roofing is projected to expand 1.4 percent annually to 6.7 million tons by 2011. Furthermore, steeper gas and diesel fuel prices make transporting materials more costly, and roofing contractors must spend more money on fuel to get their vehicles to job sites.

CAAE

The roofing industry's energy needs are an example of why the U.S. must use every domestic resource available to stabilize prices and put the country on a path toward energy independence. Renewable energy must be part of the formula, of course, but most experts believe substantially supplanting fossil fuels will take at least 30 years. And the transition will take place as we compete with China and India for oil and natural gas, which means expanding the U.S.'s domestic energy supply is crucial and must begin immediately.

According to the U.S. Chamber of Commerce, 80 percent of the undiscovered energy-producing resources beneath U.S. federal lands and coastal waters currently are off limits, requiring the U.S. to import more than half its energy from overseas. To prod Congress to act now to allow more domestic exploration in an environmentally safe manner, NRCA has joined the Coalition for Affordable American Energy (CAAE).

The coalition was formed in June when NRCA and 75 other national business associations signed a joint letter to members of the House and Senate urging Congress to "act now to increase domestic oil and natural gas production and to adopt policies which will reduce our Nation's dependence on foreign oil."

Imperative legislation

The roofing industry's dual roles in the energy-policy debate are such that though a quality roof system can save energy and help the environment, skyrocketing material prices are causing installation costs to soar and are hurting the industry overall. Therefore, it is imperative that Congress immediately pass legislation allowing more domestic energy exploration and drilling to be conducted. NRCA hopes its involvement with CAAE will help forward this goal.

Craig S. Brightup is NRCA's vice president of government relations.