Bush unveils national energy plan
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President Bush unveils his long-term energy proposal Thursday in St. Paul, Minnesota
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May 17, 2001
Web posted at: 1:44 PM EDT (1744 GMT)
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ST. PAUL, Minnesota (CNN) -- Saying "if we fail to act, this country could face a darker future," President Bush unveiled a national energy strategy Thursday to battle what the White House calls "the most serious energy shortage since the oil embargoes of the 1970s."
The plan, which is likely to face a battle in Congress, calls on federal agencies to take dramatic steps to encourage more output from coal-fired plants, recommends the construction of more than 1,300 new power plants and calls for new oil and gas exploration -- including some on federal lands.
"My administration has developed a sane national plan to meet our energy needs this year and every year," the president said in what the White House billed as a major address on energy policy. He promised a plan "that faces up to our energy challenges and meets them."
The president said the plan consisted of more than 100 recommendations "that light the way to a brighter future" by addressing both demand and supply.
Bush called for more domestic oil production, warning that "over-dependence on any one source of energy, especially a foreign source, leaves us open to price shocks ... and blackmail."
The president said oil underneath the U.S. national wildlife refuge in northern Alaska known as ANWAR, should be tapped to offset petroleum imports.
"ANWAR can produce 600,000 barrels of oil a day for the next 40 years," Bush said. "That happens to be the exact amount of oil we import from Iraq."
Bush also made a strong plea for the construction of new nuclear power plants, saying that France depends on nuclear power for 80 percent of its total electricity needs.
The plan has outraged environmental groups, which say they were excluded from talks in its development phase, but Bush said environmental considerations were part of the plan.
A return to the '70s?
The 163-page administration energy report suggests the country faces the worst energy crisis since the 1970s. In addition to an array of incentives for the energy industry, it also includes a package of tax and other stimuli designed to promote conservation, energy efficiency and wider development and use of alternative and renewable fuels.
Former President Jimmy Carter, who held office during the late 1970s, offered an opposing view to the Bush administration's depiction of the nation's energy supply in Thursday's Washington Post.
"No energy crisis exists now that equates in any way with those we faced in 1973 and 1979," Carter wrote. "World supplies are adequate and reasonably stable, price fluctuations are cyclical, reserves are plentiful and automobiles aren't waiting in line at service stations. Exaggerated claims seem designed to promote some long-frustrated ambitions of the oil industry at the expense of environmental quality."
Plan highlights
Making the case for a new long-term energy strategy -- and for a dramatic emphasis on supply, the report says that over the next 20 years:
U.S. oil consumption will increase by 33 percent.
Natural gas consumption will increase by more than 50 percent.
Demand for electricity will increase by 45 percent.
Vice President Dick Cheney was on Capitol Hill Wednesday and gave House Republicans a peek at the proposal. House leaders said they would work to turn it into legislative language and move it as quickly as possible through the chamber.
Bush's energy plan is calling for:
Executive orders and agency reviews aimed at easing regulations the industry says slow the siting and licensing of power plants and gas refineries.
A review of the Clinton administration's interpretation of "new source review rules" that the coal industry and refiners say discourage them from making technological and other improvements because they run the risk of tougher environmental rules.
Opening parts of the Arctic National Wildlife Refuge to oil and gas exploration, and encouraging the Interior and other departments to look at opening other federal lands now off-limits to energy exploration.
38,000 miles of new natural gas pipelines.
New authority for the government to seize land for new electricity transmission lines.
"The plan is a reflection of what President Bush has always said were his priorities," White House spokesman Ari Fleischer said. "Our nation has not had a comprehensive energy policy in years, and that has contributed to the sky-high price of gasoline and energy."
Officials say the plan includes $10 billion over 10 years for tax incentives including:
$4 billion for the purchase of new energy-efficient vehicles.
$1 billion for developing methane gas from landfills, for generating electricity.
Tax credits of up to $2,000 for installing solar panels on residential homes.
Several other tax incentives to encourage development and use of alternative fuels like biomass.
There is also a $1.5 billion tax incentive to make it easier for utilities to sell nuclear plants; officials said those transactions are now double-taxed.
Bush will sign an executive order this week requiring all federal agencies to consider energy when drafting new rules and regulations. A second order will require agencies to expedite permits for energy-related projects.
| WHAT DOES IT MEAN?
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embargo:
| a legal or governmental order prohibiting products or commerce from leaving the country
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biomass:
| plant and animal materials that are used as a source of energy
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incentive:
| something that moves someone to a particular action
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stimuli:
| something that encourages an action from someone (similar to incentive)
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fluctuation:
| to shift back and forth
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expedite:
| speed up; hasten
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