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House Democrats ready to battle Bush on energy



By Ian Christopher McCaleb
CNN Washington Bureau

WASHINGTON (CNN) -- A group of House Democrats unveiled an energy policy Tuesday to rival that of the Bush administration -- a policy they said would boost production and drive down prices as it addresses objections they have to Bush's expected proposals.

With the summer travel season approaching and gas prices spiking, a multi-pronged crisis is looming, Democrats said.

"In order to address this problem we need a balanced program," said House Minority Leader Richard Gephardt, D-Missouri. "The program we are announcing today, we feel, is that balanced program. We have worked hard to roll out a set of policies that will address our short and long-term energy needs."

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Gathering at a filling station near Capitol Hill, members of the House minority described Bush's plan -- which will not be detailed until Thursday -- as short-sighted and geared toward appeasing the oil industry.

Their plan, they insisted, would accomplish much of what Bush wants to do without compromising the environment or hurting consumers.

"Our plan will help families and businesses cut energy costs now," Gephardt said. "It will make America a world leader in energy efficiency, through our bottomless capacity in innovation and new technology to improve people's lives. We will create traditional and renewable sources of energy without sacrificing the environment and our children's future."

The Democratic plan calls for increasing oil production in areas that have already been roped off to exploration and drilling by the federal government -- lands that already account for 89 percent of the nation's untapped reserves, according to Martin Frost, D-Texas.

In addition, the Democrats propose building more pipelines to move natural gas into the lower 48 from Alaska's North Slope, and they would move to hold down price increases by electricity providers.

The Democrats also propose a series of tax incentives to help consumers build energy efficient homes and buy "hybrid" gas and electric automobiles. Those incentives could net individuals as much as $4,000 in annual tax savings. Small business owners would also stand to benefit.

Bush's plan, being assembled by a task force headed by Vice President Dick Cheney, likely will suggest boosting domestic oil production capacity perhaps by building as many as 40 oil refineries over the next 20 years.

"Long-term, our economic prosperity depends on having adequate supplies of affordable energy. That's been one of the cornerstones of our economy for a long time," Cheney told "Lou Dobbs' Moneyline." "We need to address that, because it's quite clear that over the past several years nobody really has."

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Cheney: "Long-term, our economic prosperity depends on having adequate supplies of affordable energy"  

Unlike a speech earlier this month in which he dismissed the importance of conservation, Cheney said efforts to promote energy efficiency were "an important part" of the administration's proposal. "But at the same time, it's not enough to close the gap. You've still got to produce additional supplies."

Cheney said the administration's proposal would include calls to generate more electricity through nuclear power. But he acknowledged that the long-dormant nuclear power industry faces not only technical but political hurdles -- particularly over how to dispose of nuclear waste.

"We clearly understand that in terms of what government can do addressing the waste question is key," Cheney said. "If we can address the waste question and deal with that, I think that will give people -- potential investors and utilities who have to decide what form of power to use in the future -- confidence that nuclear power is a viable option."

The White House has argued that crude oil, despite its high price, is plentiful and that prices for gasoline and other petroleum products are high because refinery capacity is low.

The administration also wants to encourage exploration for new stores of oil and gas -- most notably in the off-limits Arctic National Wildlife refuge. Democrats have vowed to fight that move.

In the meantime, Bush wants the House and Senate to pass the $1.35 trillion tax relief plan they are now considering as quickly as possible so consumers can apply some of that extra money to their energy expenses.

"Last week, the president suggested his tax cut will solve energy crisis," said Rep. Rosa DeLauro, D-Connecticut. "That is a bizarre and disconnected idea."

The Democrats Tuesday assailed Bush for not living up to some of his presidential campaign rhetoric. Through much of the 2000 campaign for the White House, particularly in the early primary season when home heating oil prices were rising steadily in the Northeast, Bush blasted the Clinton administration for not "jawboning" members of the Organization of Petroleum Exporting Countries to increase production.

"We have since heard nothing on this from Mr. Bush," said Rep. John Dingell, D-Michigan.

Dingell, ranking Democrat on the House Energy and Commerce Committee, blasted Bush for ignoring Federal Trade Commission data accumulated in the last days of the Clinton administration that indicated some oil companies "held oil off the market to benefit themselves," ostensibly causing prices hikes.

"He has not made even the slightest inquiry," Dingell said of Bush.

DeLauro also hinted that the administration might consider releasing product from the 571-million barrel Strategic Petroleum Reserve, a suggestion the White House is certain to refuse outright.

White House press secretary Ari Fleischer reacted earlier in the day to some of the Democratic proposals, saying he thought some common ground could be found.

"The energy plan offered by the Democrats on the Hill has some areas of overlapping commonality with the plan that the president is about to propose and the president looks forward to working with Congress on those areas," Fleischer said.

But Democratic proposals such as caps on electricity prices, he said, are probably non-starters with the administration.







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