The Clinton/Gore Administration: Taking Action to Strengthen America's Energy Security

THE CLINTON/GORE ADMINISTRATION:
TAKING ACTION TO STRENGTHEN AMERICA'S ENERGY SECURITY

MARCH 18, 2000

 

President Clinton today proposed new steps to strengthen the sound, comprehensive energy strategy that has helped keep the U.S. economy robust. The President called for the creation of a regional home heating oil reserve and reauthorization of the Strategic Petroleum Reserve. He also called for enactment of a tax package that will help ensure the productive capacity of the domestic oil industry and that must include measures to promote greater energy efficiency and renewable energy -- measures which Congress has failed to act on twice before. These steps will enhance America's energy security, create jobs, protect the environment, and produce long-term savings for consumers.

PRESIDENT CLINTON AND VICE PRESIDENT GORE'S PLAN TO STRENGTHEN AMERICA'S ENERGY SECURITY INCLUDES:

· Establishing A Regional Home Heating Oil Reserve: In order to reduce the likelihood that future heating oil shortages will harm consumers, the President is proposing the creation of a home heating oil reserve in the Northeast with an appropriate trigger that could supply additional heating oil to the market in the event of a supply shortage. The President today directed the Department of Energy to commence the appropriate environmental reviews to create this home heating oil reserve and will work with Congress to pass authorizing legislation this year.

· Reauthorizing the Strategic Petroleum Reserve: Current authorization to operate the Strategic Petroleum Reserve expires on March 31st, even as OPEC oil ministers are meeting in Vienna to discuss production quotas. To ensure the ability to use all available tools to respond to the needs of the U. S. economy, the President called on Congress to immediately reauthorize the Energy Policy and Conservation Act, which authorizes the Strategic Petroleum Reserve and the International Energy Program at DOE.

· Enacting A Comprehensive Tax Package To Promote Energy Security: The President today proposed a comprehensive package of tax incentives, including new tax credits for domestic oil producers to reduce U.S. reliance on oil imports and essential incentives to promote renewable and efficient sources of energy for U.S. economy. This tax package:

· Will Help Preserve Productive Capacity of the Domestic Oil Industry: President Clinton will propose adjusting the tax treatment for certain exploration activities and to lower the business costs to producers when oil prices are low. The Administration will also continue examining opportunities to preserve marginal well production, which accounts for over 20 percent of on-shore oil production in the lower-48 states.

· Must Include Measures To Improve the Energy Efficiency of the Economy and to Promote the Use of Alternative Energy Sources: To improve the energy security of our economy, President called on Congress to pass the energy efficiency and renewable energy tax components proposed in his current budget. These include tax credits for electric, fuel cell, and qualified hybrid vehicles, tax credits for efficient homes and buildings, and tax credits for non-petroleum based energy sources including wind, biomass, and methane.

· Investing In Energy Efficiency and Alternative Energy Technologies. President Clinton and Vice President Gore are calling on Congress to enact more than $1.4 billion in budget requests that will promote energy security and the use of alternative and more efficient energy technologies, including:

      · $275 Million To Make America's Homes and Buildings More Efficient

      · $173 Million To Weatherize Low Income Households

      · $255 Million To A Partnership For A New Generation Of More Efficient Vehicles

      · $410 Million To Develop Sources Of Domestic Renewable Energy

 

 

DETAILS OF THE CLINTON/GORE

ACTIONS TO ENHANCE AMERICA'S ENERGY SECURITY

Energy-Efficiency Enhances Energy Security And Strengthens The Economy: The strong performance of our economy over the past year, despite oil price rises, underscores the dramatic improvements in energy efficiency and reliability over the past quarter century. While past oil shortages have taken a significant toll on the U.S. economy, the recent increases in oil prices have yet to have a major impact on the U.S. economy. Increased energy efficiency – in cars, homes, and manufacturing – has helped insulate the economy from these short-term market fluctuations. In 1974, we consumed 15 barrels of oil for every $10,000 of gross domestic product. Today we consume only 8 barrels of oil for the same amount of economic output.

But we can do even better.

President Clinton And Vice-President Gore Today Announced Important Steps To Promote Energy Security & Efficiency In America. These Steps Include:

I. Establishing A Regional Home Heating Oil Reserve: The President remains concerned about the effect that future shortages of home heating oil may have on consumers of home heating oil, particularly in the Northeast and New England. In order to reduce the likelihood that future shortages will harm consumers, the President will:

· Support The Establishment of a Regional Reserve: The President supports the creation of a home heating oil reserve with an appropriate trigger in the Northeast to combat future product shortages. In the event of home heating oil shortages, heating oil can be sold from the reserve in order to increase the supply on the market.

· Direct DOE To Undertake Necessary Environmental Reviews: The President has directed the Department of Energy to begin the appropriate environmental reviews for the creation of a home heating oil reserve in the Northeast.

· Call on Congress to Establish Reserve Through Legislation: The President calls on Congress to pass legislation that authorize the creation of a regional product reserve, and includes an appropriate trigger. The President reserves his right to establish a reserve under his existing authority, subject to the outcome of the environmental reviews, in the event that Congress fails to act.

II. Reauthorizing the Strategic Petroleum Reserve: Current authorization to operate the Strategic Petroleum Reserve expires on March 31st, even as OPEC oil ministers will be meeting in Vienna to discuss production quotas. In order to ensure that the President maintains the ability to use all available tools to respond to the needs of the United States economy, he will call on Congress to immediately reauthorize Titles I and II of the Energy Policy and Conservation Act, which authorize the Strategic Petroleum Reserve and the International Energy Program at the Department of Energy.

 

III. Enacting A Comprehensive Tax Incentive Package: In order to insulate the economy from the effects of future energy price increases, the United States needs comprehensive and balanced package of tax incentives. This comprehensive approach includes support for domestic oil producers to reduce our reliance on oil imports and must include incentives to continue expanding renewable energy and increasing the energy efficiency of our economy. These tax proposals are either paid for in the President's budget or will be paid for with offsets.

IV. Making Common Sense Investments In Promoting Energy Efficiency And Alternative Energy Technologies. In addition to providing tax credits to promote domestic oil production and energy efficiency, the President and Vice President have already presented budget requests for appropriations that will further promote energy security. They have proposed a budget that includes over $1.4 billion next year to accelerate the research, development, and deployment of alternative and more efficient energy technologies.

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