New Democrats want to meet our energy challenge with a progressive energy policy, one that embraces and invests in the technologies of tomorrow, spurs our people and our businesses to innovate, empowers consumers to make smart energy use decisions, and modernizes our often-outdated systems of regulations and infrastructure to fit the realities of the 21st century. The choice is not between environmental protection and a strong economy.

The choice is between returning to the outdated policies of the past, or recognizing the new landscape of the future: that our country can and must invest in the energy technologies that can supply the world with sustainable energy and modernize our regulatory and infrastructure systems that govern the energy market. New Democrats believe the choice is clear, and we look forward to working with our colleagues to develop an energy policy for the 21st Century.

A comprehensive and balanced energy plan is critically important to the strength of our economy. The United States already consumes a disproportionate share of the world's energy, and demand is expected to continue increasing in this country and, undoubtedly, around the rest of the world as their economies grow. As long as we are dependent on oil, we will be dependent on foreign sources. Natural gas and coal are also finite fossil fuel resources. While these traditional fossil fuel sources will continue to be key in our energy policy, we believe that greater energy efficiency and new sources of energy must be aggressively pursued for the sake of our economy, our environment and health, and for future generations.

We believe this challenge can be an opportunity. For years, regions with vast oil fields - such as the Middle East or Mexico - have supplied the world with energy. The innovative spirit and creativity of Americans gives us an opportunity to supply the world with the clean, renewable, and sustainable energy that we need – if we pursue an energy policy for the future, instead of one from the past.

We must seek to expand and diversify our energy supply to ensure the continued economic growth of our country. We recognize that traditional fossil fuels and natural gas are a critical part of our energy supply – in fact, during the eight years of the Clinton Administration, the federal government operated oil, gas and coal leasing programs that exceeded production levels during the Reagan and Bush years – and will continue to be so well into the future; however, our proposal does not endorse opening the Arctic National Wildlife Refuge or the protected coastlines of Florida and California to oil drilling. We believe expanding deployment of wind, solar, and other renewable power sources will not only make for a cleaner energy supply, but it will also stabilize prices, increase energy independence, and ensure reliability. We must also aggressively invest in long-term research and development to ensure the success of our energy technologies of tomorrow. Some of our ideas include:

Fossil Fuels and Nuclear

• continued responsible drilling on federal lands and water, review royalty lease laws, and work to ensure oil and gas are as productive, efficient and clean as possible
• increase funding for research and development to ensure coal production is as clean and efficient as possible
• accelerate depreciation on capital investments to improve generation and for investments to increase efficiencies and improved pollution controls at refineries
• ensure nuclear re-licensing takes safety, cost-effectiveness, and energy needs into account
• continue full funding for nuclear waste and safety research

Renewable and Clean Energy Alternatives

• enact a renewable energy generation tax credit for the investment, installation, and generation of wind, solar, biomass (open and closed loop), incremental hydro, fuel cells, landfill, and geothermal for resident, business, and generators, allowing for credit trading
• double research and development funding for all renewable energy programs
• increase research and development funding and incentives for use and development of alternative fuels, including ethanol, methanol, and biodiesel
• create grant program for schools, hospitals, libraries, and other non-profit entities for installation and use of renewable energy sources
• require the federal government to purchase a certain percentage of its power from non-hydropower renewable sources
• creation of a Federal Energy Bank to provide loans to state and federal agencies for investment in installation and generation from renewable energy sources, modeled after the successful Texas program
• accelerate depreciation for large energy users to invest in the production of self sufficient renewable generation, and accelerate depreciation for certain capital expenses to increase the installation of renewable forms of energy

II. EFFICIENCY AND CONSERVATION: Lowering Prices for Consumers Now and Extending the Life of our Energy Supply:

We can increase our energy productivity by promoting energy efficiency and conservation. Increased energy efficiency has already significantly reduced our demand for imported oil and new power plants. For example, in 1974, we consumed 15 barrels of oil for each $10,000 of GDP; today, we only consume 8 barrels of oil per unit of GDP. Research and development, tax incentives, and high efficiency standards can all help us do more with less. What's more, we will simultaneously reduce costs for consumers and businesses and prolong the life of our energy supply. Some of our ideas include:

Power Plants

• tax credits and regulatory relief for the installation of co-generation on existing generation facilities
• tax credits for energy-efficient and environmental improvements for coal plants

Vehicles

• increased mandatory vehicle efficiency standards for all cars, light trucks, minivans, and sports utility vehicles
• continued full funding for the private-public partnerships to develop more efficient and low and zero emissions vehicles
• mandatory purchase and use of a federal fleet of energy-efficient and alternative fuel source vehicles
• consumer tax credit for energy-efficient, low and zero emission, and alternative fuel vehicles
• develop a more uniform fuel standard, including diesel, to reduce refinery bottlenecks and mitigate effects for small and independent refiners.

Efficiency Standards

• comprehensive review of all government facilities to increase energy efficiency and implement private energy-performance contracts to upgrade buildings
• mandate all new federal facilities meet highest building efficiency standard and aim to be self-sufficient with renewable energy
• enactment of proposed new air conditioner standards

Residential and Commercial Incentives

• creation of a low interest loan program for high level energy users to make capital investments to improve energy efficiency, repaid through cost savings
• tax incentives for businesses and individuals who purchase energy-efficient buildings, homes, equipment, and appliances
• competitive grant program for efficiency education, technical assistance, outreach, and pilot programs
• tradable tax credit for energy providers that implement real-time pricing and smart meters that allow energy users to make informed energy use decisions

Research and Development

• double funding for research and development for energy efficiency and conservation

III. MODERNIZING OUR ENERGY INFRASTRUCTURE AND REGULATIONS: Encouraging Newer, Cleaner, and More Efficient Energy Production

Even with improved energy efficiency and conservation, we will need to expand and improve our power plants, refineries, transmission lines, and pipelines to produce energy and deliver it to consumers. Furthermore, we should update our regulatory framework so that it encourages newer, cleaner, and more efficient generation – including renewable energy sources – and spurs technological advances in all energy industries. Some of our ideas include:

Transmission and Pipelines

• rural infrastructure transmission investment credits
• national and regional rights-of-way review and policy coordination
• develop national interconnection and net metering standard to ensure self-sufficient energy users can effectively "plug in" to the transmission system
• grants and loans for co-ops, Public Utility Districts, and municipal utilities to invest in transmission infrastructure and energy efficient infrastructure improvements
• accelerated depreciation on investments in transmission
• allow for the creation of an Energy Reliability Organization to help facilitate the possible role of Regional Transmission Organizations
• strengthen oversight and maintenance of pipelines to ensure safety and reliability, and review current siting process and incentives for certain safety and structure improvements of natural gas and hazardous liquid pipelines

Carbon Dioxide and Emissions

• regulatory reform that modernizes our nation's energy infrastructure by encouraging cleaner, more efficient energy generation by developing a multipollutant, including carbon dioxide, tradable emissions system with a declining cap. Credits would be allocated based on energy generation and would include renewable sources and energy savings

IV. PREPARING CONSUMERS AND BUSINESSES FOR MARKET FLUCTUATIONS

Energy is a unique commodity, one that is critical to our standard of living, controlled by both the private sector and the public sector, and subject to dramatic supply interruptions and price spikes. Consumers, businesses and the economy should have tools to get through short-term market imbalances. Some of our ideas include:

Energy Assistance

• increased authorization for LIHEAP, SEP, and WAP and immediate supplemental assistance for LIHEAP
• create program for emergency assistance to Housing Authorities, school districts, and qualified non-profits
• create Small Business Energy Emergency Disaster Loan Program, Rural Economic Energy Emergency Disaster Loan Program, and strengthen energy assistance for Native Americans and other communities at risk

Fuel Reserves

• increase the size of the nation's Strategic Petroleum Reserve, expand the Northeast Home Heating Oil Reserve, and create a Natural Gas Reserve

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