Bush says New Energy Bill Vital to US Economy
- Bush says New Energy Bill Vital to US Economy
USA: August 9, 2005
ALBUQUERQUE, New Mexico - As oil and gasoline prices hit new records,
President George W. Bush on Monday signed an energy bill he called vital
to the US economy but conceded that it offered consumers no short-term
relief at the pump.
The $14.5 billion legislation, passed by Congress after a four-year
battle, boosts oil, natural gas and electricity supplies and promotes
alternative energy sources. Bush said it was "a critical first step."
"We're not going to solve our energy challenges overnight," he said.
"Most of the serious problems, such as high gasoline costs and rising
dependence on foreign oil, have developed over decades. It's going to
take years of focused effort to alleviate those problems."
The price of a barrel of crude oil reached a high of more than $63 on
Monday and the national average price of a gallon of gasoline rose to a
record $2.37. The United States relies on foreign oil to meet 60 percent
of its daily demand of almost 21 million barrels. Gasoline use accounts
for 2 out of every 5 barrels consumed.
"This economy of ours has been through a lot and that's why it's
important to get this energy bill done to help us continue to grow," Bush
said. "What this energy bill is going to do, it's going to help keep
momentum in the right direction."
Before his speech, Bush emphasized the environmentally friendly aspects
of the legislation by touring Sandia National Laboratory's National Solar
Thermal Test Facility.
Wearing stylish sunglasses in the bright sunshine, he and Republican Sen.
Pete Domenici of New Mexico were led through an array of giant solar
dishes with computer controlled mirrors that reflect and concentrate
Each parabolic dish can produce 25 kilowatts of electrical power, enough
to power about 10 homes.
Supporters of the energy bill say it will revive America's nuclear power
industry, boost oil drilling, convert coal into a cleaner-burning fuel
and use home-grown, corn-based ethanol to stretch gasoline supplies.
But environmental groups and some Democrats criticize its extensive tax
breaks, subsidies and loan guarantees as a lavish gift to energy
companies already enjoying near-record profits.
"Big energy lobbyists may be cheering the bill's enactment, but ordinary
Americans had better hold fast to their wallets," said Anna Aurilio,
legislative director of US Public Interest Research Group. "As gasoline
prices careen out of control, the bill keeps America speeding down the
wrong road toward more oil consumption, more drilling and more
Most Americans will feel the impact of new law in 2007 when
daylight-saving time is extended by one month to save energy.
Consumers will also be able to claim tax credits for installing more
energy-efficient windows and solar panels on their homes and purchasing
hybrid fueled vehicles.
The new law will not curb oil imports with stricter fuel mileage
requirements for gas-guzzling SUVs and other vehicles.
When Congress returns from its summer break in September, lawmakers will
turn to implementing the next -- and most controversial -- phase of
Bush's national energy plan -- allowing oil drilling in Alaska's Arctic
National Wildlife Refuge.
Bush's Republican allies in Congress plan to add ANWR drilling language
to legislation that funds the day-to-day working of the federal
If Congress approves drilling in the Arctic refuge this year, the first
oil would not begin flowing until 2015 and reach a peak output of almost
1 million barrels a day, assuming the government leased the first
exploration tracts in 2007, according to the Energy Department.
(Additional reporting by Steve Holland and Tom Doggett)
Story by Patricia Wilson
REUTERS NEWS SERVICE