Democrats Unveil Energy Plan

By Freddie Mooche

Washington - Democratic members of the Senate introduced the Clean EDGE Act of 2006 Wednesday saying that it would make Americans independent of foreign oil by 2020.

Dems said in a statement released this afternoon that the Clean EDGE Act calls for a major investment in the research, development, and production of the alternative energy vehicles, fuels and technologies. "The Clean EDGE Act is a major step forward on America's path to energy independence," said Senate Democratic Leader Harry Reid. "Our nation's energy problem is not new. It has taken years of failed policies to get us to the present crisis. Fortunately, Democrats have a comprehensive solution. With this bill, and under our leadership, America will be energy independent by 2020."

Senator Chuck Schumer said, "Last year President Bush and the Republicans in Congress passed an Energy Bill that was nothing more than a grab bag of goodies for energy companies. What it left us with was $3.00 a gallon gasoline and more dependence on foreign oil. Under the GOP's plan, the big oil companies fill their pockets every time Americans fill their gas tanks. Today Democrats are putting forward a plan that offers new consumer protections, new sources of clean energy, and new opportunities for innovation that will succeed where their old ideas have failed."

Under the Democrats energy bill, 25 percent of the vehicles sold in the U.S. by 2010 must be flex-fuel capable, rising to 50 percent by 2020. Yesterday in New York Governor Pataki announced legislation that would expand the number of fuel stations that sell ethanol fuel. Currently there are only a handful in the state because of control of the fuels sold by suppliers. Currently, there are 200,000 flexible fuel vehicles registered in New York. New York has six E85 fueling locations in the state, all of which are only accessible by governmental fleets.

A major barrier to using flex fuel vehicles to reduce petroleum consumption is the lack of refueling stations that provide biofuels. The Clean EDGE Act sets a national goal of installing alternative fuels at 10 percent of American gas stations by 2015. The Democrats bill will also accelerate and extend incentives to purchase and manufacture vehicles that rely on advanced fuel efficiency technologies. Under the Dems energy bill gas price-gouging will become a Federal crime and it also enhances Federal authority to prevent and prosecute manipulation of fuel supplies and anti-competitive behavior, and increases the transparency of petroleum markets. Though Democrats offered no details as to how this would be regulated and enforced, an issue that is sure to be a sticking point with GOP members of the House.

The energy bill also provides for small business administration loan guarantees for farmers in order to cope with rising fuel costs. Dems took a hard-line approach to big oil, with plans to wipe out Federal subsidies altogether and check royalties paid for oil drilling on public lands. Rather than subsidizing the mature petroleum industry, the Clean EDGE Act will use these savings to provide greater certainty for clean energy development, by extending incentives for renewable energy and efficiency technologies.

The Clean EDGE Act requires the Federal government reduce its petroleum consumption by 20 percent in five years and 40 percent by 2020,increase its renewable electricity use to 10 percent of total consumption by 2013, and employ advanced, efficient, and renewable technology to help drive innovation and jumpstart markets. One aspect of the Democrats energy bill that Republicans will probably agree with is it provides enhanced bond issuing authority to states and local governments, for projects to reduce oil consumption and greenhouse gas emissions, to develop non-petroleum fuels, invest in efficient vehicles, alternative infrastructure and transit.

To help reduce America's reliance on fossil fuels and reduce greenhouse gas emissions, the Clean EDGE Act sets a national renewable portfolio standard requiring that 10 percent of all electricity produced in the country come from renewable sources by 2020.

The energy legislation will create an Advanced Research Projects Agency for Energy (ARPA-E) to develop cutting-edge technologies that will reduce oil consumption, improve electricity efficiency and reliability, and reduce greenhouse gas emissions.