426 lines
17 KiB
Plaintext
426 lines
17 KiB
Plaintext
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June 10, 1992
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PRESIDENT BUSH'S NATIONAL ENERGY STRATEGY
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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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"When our administration developed our national energy
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strategy, three principles guided our policy: reducing our
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dependence on foreign oil, protecting our environment, and
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promoting economic growth."
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President George Bush
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October 25, 1991
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Summary
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o On February 20, 1991, President Bush released to the
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American people his National Energy Strategy (NES), a
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comprehensive strategy designed to increase America's energy
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security, enhance environmental quality, and fuel future
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economic growth.
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o In early March 1991, the President sent to Congress
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legislation to implement key aspects of his NES. The
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Congress is currently considering energy legislation that is
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substantially modeled upon the President's National Energy
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Strategy. Recently, energy bills have passed the Senate 94
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to 4 votes and the House 381 to 37 votes.
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o The President is pleased that the Senate and House of
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Representatives have made progress toward adopting a sound
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national energy policy. The Senate and House energy bills
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would implement several key elements of the President's NES.
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By following the President's NES, they would make the United
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States less vulnerable to the economic damage resulting from
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excessive dependence on insecure foreign suppliers, through
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initiatives designed to promote energy efficiency and
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increase domestic production. While there is much work to
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be done, the President believes the Senate and House bills
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form a welcome bipartisan basis for moving to final action
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in conference.
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o The President's National Energy Strategy builds upon a
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number of Bush Administration initiatives including the 1990
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revisions to the Clean Air Act, 1989 Natural Gas Wellhead
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Decontrol Legislation and incentives provided in the 1990
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budget agreement for domestic producers of renewable and
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fossil energy.
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The President's National Energy Strategy
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o President Bush released his NES on February 20, 1991. The
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NES is a comprehensive and balanced strategy for an energy
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future that is secure, efficient, and environmentally sound.
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The NES is designed to:
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-- Diversify U.S. sources of energy supplies;
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-- Increase efficiency and flexibility in energy
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consumption;
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-- Reduce the dependence of the U.S. economy on oil while
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increasing domestic oil production;
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-- Increase the use of natural gas, a domestically
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abundant source of clean energy;
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-- Increase the production and use of renewable energy
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resources;
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-- Increase the use of alternative transportation fuels;
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-- Encourage efficiency and competition in electricity
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generation and efficient use of electric power;
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-- Reduce U.S. emissions of greenhouse gases from
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projected levels;
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-- Improve air, land, and water quality by developing and
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using environmentally superior technology;
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-- Create jobs and promote economic growth; and
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-- Maintain U.S. preeminence in fundamental science and
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engineering research and accelerate commercialization
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of technologies developed through Federally funded
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research.
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Increasing Energy Conservation and Efficiency
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o President Bush is committed to achieving greater efficiency
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in every element of energy production and use. Greater
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energy efficiency can reduce energy costs to consumers,
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enhance environmental quality, maintain and enhance our
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standard of living, increase our freedom and energy
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security, and promote a strong economy.
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o The President has proposed over $330 million in the FY 93
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budget for energy conservation research and development,
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double the amount when he took office. The following are
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examples of specific proposals in the President's NES to
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increase our energy efficiency.
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Transportation:
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o Transportation efficiency is targeted by expanding efforts
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to develop advanced transportation technologies, such as
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more fuel efficient engines, electric vehicles, more
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intelligent-vehicle highway systems, and magnetic-levitation
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and other high speed transportation. These advanced
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technologies hold the promise of significant energy savings
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in the transportation sector.
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o The NES also promotes efforts to accelerate scrappage of
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older, gas guzzling cars and increase use of public
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transportation and ridesharing by raising the limit on tax-
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free commuter subsidies that employers can give employees.
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o These and other measures directed at transportation are
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projected to save the equivalent of 3.0 million barrels of
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oil per day by the year 2010 without the harmful effects of
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higher taxes, increased regulations or oil import fees. Even
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though the number of passenger miles driven is estimated to
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increase 60% by 2010, the volume of gasoline purchased by
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consumers is projected to fall by 10%.
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Electricity:
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o Analysts forecast that over 90 gigawatts (about 90 large
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power plants) will be needed over the next 10 years to meet
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increased electricity demand. The President's NES will meet
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this increased demand by both increasing efficiency and
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expanding the range of fuels and technologies for
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electricity generation.
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o The President's NES will increase electricity efficiency and
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competition among suppliers by amending the Public Utility
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Holding Company Act to remove restrictions on electric
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generators who wish to build, own, and operate power
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facilities in more than one area, and by reforming the
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Public Utility Regulatory Policies Act to modify size and
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fuel use restrictions for small power producers.
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o The NES also supports State and utility efforts to invest in
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energy efficiency as an alternative to power plant additions
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and provides tax-free treatment of utility discounts on
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consumers' electricity bills for efficiency investments. It
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will reduce Federal subsidies for the debt of Federal Power
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Marketing Administrations and expand access to electricity
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transmission for utility and non-utility wholesale buyers
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and sellers.
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o The electricity efficiency measures in the President's NES
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are projected to reduce electricity growth by over 10% in
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2010 and save consumers over $30 billion in electricity
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costs.
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Residential and Commercial Building Conservation:
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o The NES targets residential and commercial buildings'
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efficiency by increasing Federal funding for R&D in building
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technologies. This is to develop and encourage the use of
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cost-effective building efficiency standards.
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o The NES also encourages providers of home mortgages to
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consider energy efficiency ratings in their pending
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decisions with prospective home buyers and expands energy
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efficiency labeling programs to include certain other
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equipment, such as light bulbs.
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Industry:
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o The NES will increase industrial energy efficiency by
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increasing research and development for industrial waste
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reduction and recycling, supporting the use of industrial
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energy audits at the state and local level, and modifying
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regulations that inhibit the use of waste minimization
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technologies.
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o Industrial output is expected to grow almost 80% by the year
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2010, but the United States is projected to use only 25%
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more energy to power its industrial facilities.
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Federal Government:
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o President Bush has issued an Executive Order directing all
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Federal agencies to reduce overall energy consumption in
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Federal buildings 20% by the year 2000, and to reduce fuel
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consumption in Federal vehicles 10% by 1995.
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o President Bush has directed Federal agencies to maximize
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their purchases of alternative fuels vehicles. Over 3,000
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such vehicles have already been purchased and are in use.
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Securing Future Energy Supplies
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o The U.S. is part of an energy interdependent world, but U.S.
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vulnerability to supply disruptions must be reduced. One of
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the objectives of the NES is to increase the environmentally
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sound production of domestic energy resources. Initiatives
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in the NES will increase domestic oil production by up to
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3.8 million barrels per day in 2010, and increase
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economically recoverable resources by 25 to 70 billion
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barrels. The NES also includes a major commitment to
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advanced energy technology through research and development
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initiatives for energy security.
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Oil:
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o President Bush has led efforts to reform alternative minimum
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tax (AMT) as it applies to independent energy producers.
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President Bush has actively supported measures to remove
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serious disincentives to domestic production of oil and gas
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that exist in current tax law. The President believes that
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reform of AMT is absolutely necessary to help revitalize the
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domestic oil and gas industry.
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o The NES establishes a new program of joint Federal/private
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investment in advanced oil recovery technology. By 2010,
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advanced oil recovery technologies are projected to increase
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U.S. production by over 3 million barrels per day.
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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.
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o The President's NES encourages oil production in America by
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calling for the approval of access to the coastal plain of
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the Alaskan National Wildlife Refuge (ANWR) and some Outer
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Continental Shelf areas under strict environmental
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safeguards. The President will continue to press Congress
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to allow access to ANWR. The NES also supports an increase
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in the production of California heavy oil and access to
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export markets.
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o The NES supports the expansion of production capacity
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throughout the world and the Administration has initiated
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programs to achieve this end in the Western Hemisphere and
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in the former Soviet Union.
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o The President supports Federal royalty reductions for on-
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shore oil and gas producers. The Administration is
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examining royalty reductions on off-shore production.
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Natural Gas:
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o On March 6, 1992, President Bush announced steps to bring
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relief to the natural gas industry. The Administration will
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remove regulatory barriers that impede the use of natural
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gas by electric utilities. It will also encourage greater
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usage of natural gas vehicles by removing regulatory
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barriers to the sale of compressed natural gas for use in
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motor vehicles, and will issue proposed emission standards
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for natural gas vehicles that will allow them to compete on
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an equal basis with other vehicles.
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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. And, pursuant to the NES,
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the Federal Energy Regulatory Commission recently proposed
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regulatory reforms which will deregulate pipeline sales
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rates in competitive markets and reform gas pipeline rate
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designs.
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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 NES recommendations relating to alternative fuels and
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electricity regulatory reform (PUHCA) will also
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substantially increase utilization of natural gas.
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o Initiatives in the NES are expected to increase natural gas
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consumption by almost 1 trillion cubic feet by the year
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2000.
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Coal:
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o The President's NES promotes the use and exportation of
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clean coal by promoting clean coal technology and by
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creating favorable export markets for U.S. coal and coal-
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burning technologies. The NES will clarify the
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applicability of the Clean Air Act to refurbished power
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plants, and pursue research and development on environmental
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protection during mining.
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o Initiatives in the NES will help the U.S. coal industry
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capture a major share of the growing international coal and
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coal technology markets, while at the same time improving
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our ability to more cleanly and efficiently utilize the
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large U.S. supplies of low cost coal.
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o The President supports full funding of the Five-Round Clean
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Coal Technology R&D program. This Federal-industry $5
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billion cost-shared program is developing high efficiency,
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low-emission technology to meet the stringent air quality
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standards of the next decade.
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Nuclear Power:
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o The NES proposes legislation which will preserve the nuclear
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power option to meet electricity needs by reforming and
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streamlining the nuclear plant licensing process.
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o The NES supports the renewal of licenses for existing
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nuclear plants, where this can be done safely and
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economically. It also supports standardized designs for
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"next generation" power plants and accelerates research and
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development of "next generation" passively safe design
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nuclear reactors.
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o The NES contains initiatives to ensure progress on the
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management and disposal of nuclear waste.
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Renewable and Alternative Energy:
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o The President's renewable energy research and development
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budget for FY 93 was increased to nearly $250 million, a
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more than 65% increase over the amount when he took office.
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o The NES encourages the development and use of alternative
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fuels and technologies through research and development and
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by requiring centrally-fueled fleets to purchase vehicles
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capable of using alternative fuels. The Department of
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Energy has teamed with industry to establish a joint
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research venture to make possible a new generation of
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batteries for electric vehicles.
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o The President's NES encourages hydropower projects by
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proposing legislation which would eliminate unwarranted
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Federal regulation and streamlining hydropower licensing
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projects.
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o The Department of Energy has begun to test new ways to
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produce ethanol at cost-competitive prices. Increasing the
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use of ethanol in the transportation sector will make the
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United States less dependent on oil imports.
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o The Department of Energy completed construction of the Wind
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Energy Test Center in September 1991. Advances in
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technology of wind as an energy source will enhance its
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chances of becoming a competitive resource for electricity
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in many areas of the country. The President requested $22
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million for wind energy research and development in the FY
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93 Budget.
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o The Department of Energy has entered into a joint venture
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with private companies to develop a system that uses solar
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power to operate generators. President Bush has requested
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$27 million in his FY 93 Budget for the research and
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development of solar energy.
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o The NES supports converting municipal solid waste to energy
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as part of a comprehensive waste management strategy.
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o The NES proposes to intensify international collaboration in
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fusion research to develop a demonstration plant by 2025 and
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a commercial plant that could cost-effectively supply power
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by 2040.
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o Electricity generation from renewable energy sources is
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projected to increase 16% by 2010 under the NES.
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Energy and the Quality of Air, Land and Water
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o Coupled with the Clean Air Act Amendments that the President
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signed into law in 1990, the NES strives to enhance
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environmental quality by reducing sulphur dioxide emissions
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by 40%, nitrogen oxides by 30%, and volatile organic
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compounds emissions by 25% from projected levels in 2030.
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The NES will reduce the cost of achieving greater
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environmental benefits.
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o The NES, will reduce greenhouse gas emissions and
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demonstrate U.S. international leadership on this issue. At
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the same time, ongoing Federal research aimed at reducing
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scientific uncertainty on the potential for global climate
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change, will provide an improved basis for future policy.
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# # #
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