Press Releases
December 10, 2008
Conrad: Energy Key to Rebuilding Economy
Letter to President-Elect Urges Investment in Renewable Fuels, Infrastructure
Washington – In a letter to President-elect Barack Obama, Senator Kent Conrad said that robust federal investment in new energy projects -- such as transmission lines to move energy from North Dakota -- present a vital opportunity to help stimulate the nation's ailing economy as well as help the nation become more energy independent.
“I believe a substantial effort to transform our energy policy and reduce our dependence on foreign oil is essential for our future economic and national security," Senator Conrad wrote. "I urge you to include provisions that will spur the development of renewable energy supplies and the infrastructure to bring that energy to customers."
Senator Conrad praised the President-elect for his commitment to developing and utilizing renewable and domestic energy sources, including clean coal technologies. Senator Conrad specifically cited the need to expand the nation’s electric transmission capacity to take full advantage of the nation’s significant wind, solar, and other energy opportunities. North Dakota has the potential to be one of the nation's top wind-energy producers.
Senator Conrad also stressed the importance of aiding and transforming the domestic automotive industry by investing in an Apollo Project-like effort to develop cars and trucks that will run primarily on fuels other than petroleum. That proposal is included in Senator Conrad's New Era energy bill, a sweeping proposal supported by a bipartisan coalition of 20 senators led by Senator Conrad.
Unveiled earlier this summer, the New Era energy bill seeks to reduce gas prices, lessen our nation’s dependence on foreign oil, and invigorate America’s economy with billions of dollars invested into new energy research, technology and jobs. The New Era plan includes more energy production, such as offshore drilling, as well as stronger incentives for conservation and green-energy generation.
December 8, 2008
President-elect Barack Obama
Presidential Transition
Dear President-elect Obama:
I am encouraged that you have indicated your economic stimulus proposal will include a significant focus on investments that will pay long term dividends for our economy as well as create jobs and provide economic lift in the short term. In particular, I believe a substantial effort to transform our energy policy and reduce our dependence on foreign oil is essential for our future economic and national security. Imagine what it would do for our economy if we were to invest right here at home the hundreds of billions of dollars we are currently sending to foreign nations for oil.
As you develop a specific stimulus proposal, I urge you to include provisions that will spur the development of renewable energy supplies and the infrastructure to bring that energy to customers, transform our auto industry to vehicles that run on non-petroleum base fuels, invest in clean coal technologies, and enhance energy efficiency. The New Energy Reform Act (or New Era) proposal the so-called Gang of 20 developed could provide a basis for initiatives in these areas that could garner strong, bipartisan support.
The automotive sector is among the most troubled parts of the economy. The federal government should invest in an Apollo Project-like effort to transform our cars and trucks to run primarily on fuels other than petroleum. We need to support loans to help U.S. automakers and parts makers re-tool and re-equip to become the world leader in making alternative fuel vehicles, and give consumers incentives to purchase these vehicles. To advance the transformation of the auto industry, the federal government should also provide at least $5 billion in support for development of alternative vehicle technologies, such as advanced batteries. In addition, tax credits to support the manufacture and purchase of highly fuel efficient vehicles would help consumers, spur recovery of the automotive industry, and cut our dependence on foreign oil.
Ensuring a diverse energy supply from clean, renewable sources – including those that are abundant in North Dakota, like wind and biomass – is one of the best investments that the U.S. can make. These homegrown alternative sources could play a critical role in powering future fleets of electric or hybrid electric vehicles. A permanent or long-term extension of tax incentives – rather than just a one-year extension -- for renewable energy such as wind, solar, and geothermal would provide greater certainty for potential investors and encourage expansion of these promising industries. These should be supplemented by research and development and other provisions to spur faster growth of these industries. According to a July 2008 study by the Department of Energy, building up wind-power so that it would provide 20 percent of our nation’s electricity would support 500,0000 jobs in coming years.
The same report identified a lack of electric transmission capacity as the biggest hurdle to realizing the benefits of greater use of wind energy. We should create incentives for building transmission infrastructure to move power from renewable sources to markets. Investment in transmission infrastructure will provide long-term savings to families and businesses. Rural development loans to electric cooperatives, expanding federal siting authority, and financing public transmission projects to be financed with tax-exempt bonds are effective ways to develop our nation’s electricity grid.
I am pleased that support for clean coal is a key part of your overall energy plan. Coal provides half of our country’s electricity. Even with the aggressive development of renewable sources of electricity, coal will continue to play a vital role in powering our homes and businesses -- and potentially cars and trucks -- as we move the nation toward energy independence. As a result, it is very important to develop the technologies to capture and store carbon dioxide produced from our nation’s vast coal resources. My bipartisan Carbon Reduction Technology Bridge Act (S. 3208) supports the first generation of high efficiency coal plants that capture carbon with investment tax credits and tax credit bonds.
Construction of a new generation of coal plants will create hundreds of jobs per project. As I know from the experience of North Dakota, mining and producing power from coal provides high-paying jobs that strengthen local economies.
Finally, enhanced energy conservation also serves as both a wise long-term investment and stimulus to the economy. Tax credits and conservation bonds to reward efficiency in new and existing homes and businesses will save both money and energy. Additional funding for weatherization projects for lower-income families will provide employment opportunities and more energy efficient homes for many of those who are struggling during the current economic downturn.
I look forward to working with you on developing an economic stimulus package that invests in a new energy infrastructure for our nation. These initiatives will provide a much-needed boost to our economy, create new American jobs, and reduce our dependence on foreign energy.
Sincerely,
KENT CONRAD
United States Senate
