329 lines
15 KiB
Plaintext
329 lines
15 KiB
Plaintext
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August 6, 1992
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PRESIDENT BUSH ON ENERGY:
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ACCOMPLISHMENTS AND INITIATIVES
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"The driving force behind [our National Energy Strategy] is
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straightforward. It relies on the power of the marketplace,
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the common sense of the American people and the responsible
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leadership of industry and government."
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President George Bush
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February 20, 1991
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Summary
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o The President introduced his National Energy Strategy (NES)
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a year and a half ago. The NES is a comprehensive and
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balanced approach toward energy production and efficiency
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and will improve our Nation's energy security, enhance
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environmental quality, and spur economic growth.
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o The NES builds on the President's record on energy and
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includes incentives to increase domestic production of oil
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and gas, promotes energy efficiency and conservation,
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encourages development and use of renewable and alternate
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sources of energy, and supports the clean use of our
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Nation's abundant coal resources and the safe use of nuclear
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power.
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o The President's NES includes measures to increase domestic
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energy production and efficiency. It does not impose new
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taxes or harsh command and control regulations on American
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industry and consumers. Instead, the NES removes regulatory
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barriers, relies on competition, and invests in research and
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development to achieve our energy goals. For example, it
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removes many of the current tax penalties on domestic
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extraction investments and at the same time relieves many of
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the regulatory burdens that prevent cleaner burning natural
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gas from reaching the marketplace.
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Oil and Gas
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o From his business experience as an oilman in Texas,
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President Bush understands how important the oil and gas
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industry is to the United States. He is committed to
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restoring jobs to this vital and valuable sector of our
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economy by encouraging domestic production and reducing the
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need for imports.
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Energy -- page 2
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o President Bush has proposed that Congress reform the
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Alternative Minimum Tax (AMT) as it applies to domestic oil
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and gas industries in order to remove serious disincentives
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to production. He has also fought Congressional efforts to
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restrict state prorationing and to expand the moratorium on
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leasing in certain areas of the outer continental shelf.
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o President Bush opposes an amendment recently passed by the
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House of Representatives which would prohibit certain forms
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of state regulation of natural gas production. This
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restriction on gas prorationing provides unnecessary Federal
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regulation and would hinder states from conserving
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resources, preventing waste, and protecting the correlative
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rights of gas producers and land and royalty owners.
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o President Bush pushed for and signed the Natural Gas
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Wellhead Decontrol Act of 1989, which will completely
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eliminate natural gas wellhead price controls by January 1,
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1993.
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o The Bush Administration has proposed reducing royalties paid
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by stripper wells on Federal lands. The revised regulation
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will create a sliding royalty scale that will provide an
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incentive to continue operating marginal wells that are in
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danger of shutting down.
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o The President pushed through Congress $2.25 billion in oil
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and gas tax incentives in 1990, about $1.9 billion of which
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will accrue to the benefit of independents.
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o The Administration has proposed increased funding for
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natural gas research and development, particularly for
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technologies to increase utilization of natural gas for
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environmental compliance. The Department of Energy has also
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restructured its natural gas program to shift research and
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development activities to meet nearer-term objectives and
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cost-sharing investment with industry.
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o In order to free oil producers from unnecessary governmental
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burdens, the President's NES includes measures to reduce
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regulatory barriers and to enhance domestic energy
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production which could increase U.S. oil production by 3.8
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million barrels per day over the next twenty years. The NES
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as a whole will reduce projected oil imports by one-third.
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o The President strongly supports efforts to develop new oil
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recovery technology as a means of keeping our oil industry
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healthy in the long-term. A central component of the NES is
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a new program of joint Federal/private investment to advance
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oil recovery technology. The initial 14 projects were Energy -- page 3
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approved in 1992 with a value of $97 million. The NES oil
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research program includes an aggressive technology transfer
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component specifically designed to assist independent
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producers.
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o The President supports the expansion of worldwide strategic
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petroleum stocks available to offset future oil supply
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disruptions and has resumed fill of our Nation's Strategic
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Petroleum Reserve.
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o As a part of his National Energy Strategy, the President has
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announced measures which will allow the gas business to
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operate with more flexibility and to seize market
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opportunities by removing regulatory barriers which impede
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natural gas use.
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-- Initiatives in President Bush's NES are expected to
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increase consumption of clean burning natural gas by
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20% or about 3.8 trillion cubic feet by the year 2000.
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-- Revenue for domestic producers of natural gas is
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projected to increase by over $50 billion during the
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period 1992-2000.
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o President Bush knows that access is vital to the U.S. oil
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and gas industry. His NES calls for access to the
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previously restricted coastal plain of the Arctic National
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Wildlife Refuge (ANWR) and some Outer Continental Shelf
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areas under strict environmental safeguards. At the same
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time, the President has safeguarded the integrity of these
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areas by signing the Oil Spill Pollution Act, which requires
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double hull tankers, a $1 billion cleanup trust fund, and
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increases polluter liability and enforcement tools. The NES
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also supports an increase in the production of California
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heavy oil and access to export markets.
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o To promote domestic gas production, the President's NES
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proposes legislation which will streamline gas pipeline
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construction regulations and develop more efficient
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environmental review procedures. In addition, the Federal
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Energy Regulatory Commission issued the most sweeping
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reforms of natural gas transportation in fifty years (the
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"restructuring" rule) and removed regulatory barriers to the
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use of natural gas vehicles.
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o NES recommendations on alternative fuels and electricity
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regulatory reform through amending the Public Utility and
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Holding Company Act and issuance of the "WEPCo" rule will
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also substantially increase utilization of natural gas.
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Energy -- page 4
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Nuclear Energy and Coal
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o The President's National Energy Strategy proposes
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legislation to reform the nuclear licensing process and the
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removal of other barriers to permit nuclear power to
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contribute cleanly, economically, and safely to our future
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electricity needs. In addition, the Administration
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supported issuance by the Nuclear Regulatory Commission of a
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final rule for the renewal of existing nuclear powerplants'
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licenses where safety can be assured.
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o The NES supports research on next generation and advanced
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reactors. In February 1992, the Department of Energy signed
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a cooperative agreement with industry to jointly fund a $200
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million effort to develop advanced light water designs to
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the point of commercial standardization.
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o The NES also contains initiatives to ensure progress on the
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management and disposal of nuclear waste, and the Department
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of Energy has resumed investigative work at the Yucca
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Mountain candidate site after successful conclusion of years
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of legal dispute.
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o The President has supported full funding, including $500
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million in the fiscal year 1993 budget, for the Clean Coal
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Technology Demonstration Program, a $5 billion industry
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cost-shared demonstration program aimed at introducing
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innovative methods of using our Nation's abundant coal
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resources more cleanly, efficiently, and economically.
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o The Administration has expanded efforts to promote the
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export of U.S. coals and clean coal technologies to enhance
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the U.S. balance of trade, create American jobs, and aid
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both economic growth and environmental protection in
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countries facing rapid increases in electricity demand.
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o The Administration issued regulations (the "WEPCo" rule) to
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facilitate compliance by the electric utility industry with
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new Clean Air Act requirements and remove uncertainty about
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power plant modifications under the new source review
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requirements.
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Renewable Energy and Alternative Fuels
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o The Bush Administration has encouraged development and use
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of renewable energy sources such as solar, wind, and
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hydroelectric power and other energy sources like ethanol.
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The President's FY93 budget increases renewable energy
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research and development to $250 million, over 65% more than
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when he took office.
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Energy -- page 5
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-- In addition, the President established the National
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Renewable Energy Laboratory in September 1991,
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indicating the importance attached by the
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Administration to renewable energy research.
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o The President signed legislation extending tax incentives
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for domestically produced ethanol through the year 2000.
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These incentives, totalling more than $220 million over five
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years, will help the farm economy and ensure the widespread
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availability of this clean, secure fuel. The Administration
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also supports legislation to remove an artificial barrier to
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greater use of ethanol by expanding tax exemptions and
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credits for ethanol blends.
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-- In addition, the Bush Administration has launched an
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accelerated research effort to develop cost-
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competitive, clean-burning domestic fuels from a wide
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variety of agricultural products. The President
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proposed spending more than $50 million on this
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initiative in fiscal year 1993.
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o The President has supported legislation extending renewable
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energy investment tax credits for solar and geothermal
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facilities.
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o The President signed legislation amending the Public Utility
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Regulatory Policy Act (PURPA) to allow large facilities
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using renewable energy projects to qualify for the benefits
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PURPA provides. As part of the National Energy Strategy,
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the Bush Administration proposes to further amend PURPA to
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remove project size limits in PURPA and reduce fuel use
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restrictions for such facilities.
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o The Administration issued new regulations to simplify the
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process for improving efficiency at privately-owned but
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Federally licensed hydroelectric projects and launched
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Hydropower 2002 an initiative to improve efficiency and
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increase production at Federal hydropower facilities. As
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part of the National Energy Strategy, the Administration has
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proposed substantial regulatory reform to enable us to take
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advantage of our ample hydroelectric power resources,
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especially those at existing dams, while protecting
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environmental quality.
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o The NES further encourages the development and use of
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alternative fuels and technologies through research and
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development and by requiring centrally-fueled fleets to
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purchase vehicles capable of using alternative fuels. The
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President has directed all Federal agencies to maximize
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their purchases of alternative fuel vehicles. The
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government has already purchased over 3,000 such vehicles
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and plans to acquire 5,000 more in FY93.
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Energy -- page 6
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o In October 1991, the President announced the creation of the
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U.S. Advanced Battery Consortium, a four-year, $260 million
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joint research venture with the Nation's three largest
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automobile manufactures, the electric utility industry and
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others to develop a new generation of batteries to make
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electric vehicles attractive and available by the year 2000.
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Increasing Energy and Economic Efficiency
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o Along with increasing energy production, President Bush is
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committed to achieving greater efficiency in every element
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of energy production and use. The President's FY93 budget
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proposes over $330 million for conservation energy research
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and development, double the amount when he took office.
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o The President, leading through example, issued an Executive
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Order on Federal Energy Management, directing all Federal
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agencies to reduce overall energy consumption in Federal
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buildings by 20% by the year 2000 and to reduce fuel
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consumption in Federal vehicles by 10% by 1995. These
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conservation measures will save American taxpayers an
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estimated $800 million in annual energy costs and cut
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Federal energy consumption by about 100,000 barrels per day
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of oil equivalent.
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o To increase efficient use of energy, the Department of
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Energy has strengthened efficiency standards for many
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energy-consuming household appliances.
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o The Administration also initiated a number of voluntary
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programs to increase private investment in more efficient
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lighting, building, computer and related technologies in
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support of the energy, economic and environmental objectives
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of the National Energy Strategy.
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o The President signed the National Affordable Housing Act,
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which includes provisions for energy efficiency standards
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for new construction of publicly-assisted housing and for
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mortgage financing incentives for energy efficiency.
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o The Bush Administration has expanded efforts to support
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development by States and utilities of integrated resource
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planning, a process in which new supply resources and
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investments in energy efficiency compete to satisfy
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electricity needs. The Administration also provided tax
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free treatment of utility discounts on consumers'
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electricity bills for efficiency investments.
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o The Bush Administration has supported legislative and
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regulatory changes to reduce electricity prices to consumers
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through increased competition in wholesale power markets and
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expanded access to electricity transmission services.
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Energy -- page 7
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o The President proposed, negotiated, and signed into law
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major new transportation legislation, the Intermodal Surface
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Transportation Efficiency Act of 1991, which will reduce oil
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use in the transportation sector by increasing Federal
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funding of mass transit and by giving State and local
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governments flexibility to fund other energy conserving
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transportation projects.
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