(WASHINGTON, D.C.) - Members of the New Democrat Coalition - a group of 72 pro-growth Democrats in the House of Representatives -- today released principles and proposals for a long-term energy agenda, focusing on embracing energy technologies for the future and new regulatory frameworks.
"We need a national effort to develop the energy technologies of the future to rival our national effort to put a man on the moon in the 1960's," said Rep. Adam Smith (WA-9). "Renewable and sustainable sources of energy are cornerstones to our country's economy, health, and environment, both today and in the future. We need an energy policy that is visionary, innovative, and forward-thinking. Our New Democrat principles and ideas will bring some fresh ideas into the debate, and we are looking forward to working with all interested parties to develop a policy."
The plan proposes to double funding for renewable energy and efficiency programs and encourages adoption and use of these technologies through a combination of grants, loans, and tax incentives. It also addresses energy infrastructure and regulations.
"Our nation needs a 21st century energy plan for a 21st century economy," said Rep. Rick Larsen (WA-2). "The New Democrats have worked to thoughtfully craft a national energy agenda that is balanced, comprehensive and visionary. We must encourage new, clean generation; increase investment in energy efficiency; improve our transmission infrastructure; and promote a diverse energy supply."
The New Democrat proposal prioritizes four areas:
HARNESS THE POWER OF TECHNOLOGY - PROMOTING EFFICIENCY, CONSERVATION,
AND CLEANER ENERGY
$ make existing fossil fuels cleaner and more efficient
$ significantly increase the use of wind and solar
$ provide incentives for research, development and use of technologies
such as fuel cells, biomass, and geothermal energy
EMPOWER CONSUMERS AND BUSINESSES - PROMOTING SMART CHOICES
AND SMART PURCHASES
$ provide incentives to encourage energy-efficient purchases and
construction of energy-efficient homes and businesses
$ provide consumers with the information necessary to make smart
energy use decisions
IMPROVE ENERGY INFRASTRUCTURE - CLEANER AND MORE EFFICIENT
GENERATION AND TRANSMISSION
$ promote new, clean, and efficient generation with a regulatory
system that rewards clean technology and renewable energy sources
$ encourage investment in transmission and pipelines to promote
safe, reliable and efficient energy movement
INVEST IN RESEARCH AND DEVELOPMENT - A NATIONAL COMMITMENT
TO DEVELOPING THE ENERGY SOURCES AND EFFICIENCIES OF THE FUTURE
$ dramatically increase research and investment in renewable energy
sources and efficiency and conservation measures
The Bush Administration proposal relies too heavily on fossil fuels and not enough on alternative energy sources and efficiency, say the New Democrats. "Bush and Cheney have adjusted their rhetoric and embraced a few of our proposals, but there is still a fundamental focus on fossil fuel extraction and not enough of a focus on the energy technologies of the future and modernizing our infrastructure and regulations for the 21st century," said Smith.
"I'm very disappointed by the administration's long-term vision reflected in their energy plan released today," added Rep. Ron Kind (D-WI). "Vice President Cheney's report places a disproportionate emphasis on the exploration and production of domestic sources of fossil fuels from our pristine national wildlife areas. I believe our nation would be better served by developing alternative and renewable energy sources, such as; wind, solar, biomass and geothermal, that are far more environmentally friendly and reduce our dependence on foreign and domestic sources of oil and gas."
New Democrats hope that their plan can be embraced by a broad coalition, including Republicans, of people who are interested in charting a course for the future of energy.
"While President Bush's plan looks backwards to the energy sources of the past, our New Democrat plan promotes the next generation of energy technology," NDC Co-Chair Rep. Cal Dooley (CA-20) said. "Like our New Democrat plans for education reform and trade, our energy plan charts a centrist course that represents a vehicle for bipartisan consensus."
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A 21st Century Energy Agenda
May 17, 2001
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.
I. Energy Supply
Improving Fossil Fuels and Developing Sustainable, Reliable and Diverse Energy Sources:
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 -
1) 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
2) increase funding for research and development to ensure coal
production is as clean and efficient as possible
3) accelerate depreciation on capital investments to improve generation
and for investments to increase efficiencies and improved pollution
controls at refineries
4) ensure nuclear re-licensing takes safety, cost-effectiveness,
and energy needs into account
5) continue full funding for nuclear waste and safety research
Renewable and Clean Energy Alternatives -
1) 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
2) double research and development funding for all renewable energy
programs
3) increase research and development funding and incentives for
use and development of alternative fuels, including ethanol, methanol,
and biodiesel
4) create grant program for schools, hospitals, libraries, and
other non-profit entities for installation and use of renewable
energy sources
5) require the federal government to purchase a certain percentage
of its power from non-hydropower renewable sources
6) 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
7) 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 -
1) tax credits and regulatory relief for the installation of co-generation
on existing generation facilities
2) tax credits for energy-efficient and environmental improvements
for coal plants
Vehicles -
1) increased mandatory vehicle efficiency standards for all cars,
light trucks, minivans, and sports utility vehicles
2) continued full funding for the private-public partnerships
to develop more efficient and low and zero emissions vehicles
3) mandatory purchase and use of a federal fleet of energy-efficient
and alternative fuel source vehicles
4) consumer tax credit for energy-efficient, low and zero emission,
and alternative fuel vehicles
5) develop a more uniform fuel standard, including diesel, to
reduce refinery bottlenecks and mitigate effects for small and
independent refiners.
Efficiency Standards -
1) comprehensive review of all government facilities to increase
energy efficiency and implement private energy-performance contracts
to upgrade buildings
2) mandate all new federal facilities meet highest building efficiency
standard and aim to be self-sufficient with renewable energy
3) enactment of proposed new air conditioner standards
Residential and Commercial Incentives -
1) creation of a low interest loan program for high level energy
users to make capital investments to improve energy efficiency,
repaid through cost savings
2) tax incentives for businesses and individuals who purchase
energy-efficient buildings, homes, equipment, and appliances
3) competitive grant program for efficiency education, technical
assistance, outreach, and pilot programs
4) 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 -
1) 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 -
1) rural infrastructure transmission investment credits
2) national and regional rights-of-way review and policy coordination
3) develop national interconnection and net metering standard
to ensure self-sufficient energy users can effectively "plug
in" to the transmission system
4) grants and loans for co-ops, Public Utility Districts, and
municipal utilities to invest in transmission infrastructure and
energy efficient infrastructure improvements
5) accelerated depreciation on investments in transmission
6) allow for the creation of an Energy Reliability Organization
to help facilitate the possible role of Regional Transmission
Organizations
6) 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 -
1) 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 -
1) increased authorization for LIHEAP, SEP, and WAP and immediate
supplemental assistance for LIHEAP
2) create program for emergency assistance to Housing Authorities,
school districts, and qualified non-profits
3) 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 -
1) increase the size of the nation's Strategic Petroleum Reserve,
expand the Northeast Home Heating Oil Reserve, and create a Natural
Gas Reserve