When Congress returns after Labor Day the Republican Whip,
Representative Roy Blunt (R-MO), will introduce the American Energy Act.
He means it to be the definitive program his party should pursue as it
faces the general election in a couple of months. The measure has three
distinctive parts. First, there is American-made energy. The bill would
open deep-water resources. He projects that this will add three million
barrels of oil per day as well as 76 trillion cubic feet of natural gas.
The bill would open the Arctic coastal plain, which would add one
million barrels of oil per day. And it would allow development of the
nation's oil shale resources, which could provide an additional 2.5
million barrels of oil per day. And it would cut the red tape so that
more refineries could be built. We have not built a new refinery in 30
years.
Secondly, the bill has several provisions providing for conservation and
efficiency. It would provide tax incentives for businesses and families
which purchase more fuel-efficient vehicles. It would provide a monetary
prize for being the first to develop an economically feasible,
super-fuel efficient vehicle reaching 100 miles per gallon and provides
tax incentives for both homeowners and businesses which improve energy
efficiency.
The final section of the bill deals with new and expanding technologies.
It would spur the development of alternative fuels through government
contracting and the repeal of the Section 526 prohibition against
government purchasing of alternative fuels. It would promote
coal-to-liquid technologically alternative fuels and would establish a
renewable energy trust fund using revenues generated by exploration in
the deep ocean and on the Arctic coastal plain. It would permanently
extend the tax credit for alternative energy production, including wind,
solar and hydrogen. This bill would eliminate barriers to the expansion
of emission-free nuclear power production.
For the past couple of years voters have paid little attention to
anything the Republicans have said. The view has been that the GOP had
its chance for a dozen years and Republicans blew it. Voters pointed to
a major Democratic victory this fall. Then along came the energy issue.
The Democrats are on the wrong side of energy issues and voters are
listening to the Republicans again. Blunt wants the contrast between the
parties to be clear.
While the price at the pump has declined somewhat and may decline a bit
further it is unlikely that the price of gas will dip far enough so that
it is no longer a political issue. In this case some House Republicans
consistently have voted for oil and gas development and nuclear power
while the House Democratic leadership has been against development. If
Blunt has his way everyone in the country will hear about this. And if
they do hear about the contrast the huge Democratic gains projected for
this fall may not materialize.
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