ACEEE NEWS RELEASE
BUSH
CLEAN ENERGY GOALS MUST BE MATCHED BY NEW FUNDING AND POLICY ACTION
FOR IMMEDIATE
RELEASE
February 1, 2006
Washington, D.C.-- The American Council for an Energy-Efficient
Economy (ACEEE)'s review of the President's State of the Union address
applauded the Administration's recognition of our oil-dependence
problem and the need for new clean energy research. However, ACEEE
also observed that while the speech contained promising words on
new clean energy policy initiatives, it contrasts sharply with the
administration's funding record on energy efficiency technology
and its policy inaction on clean energy solutions.
"The President's call for reduced oil dependence and new energy
technologies is laudable, but to be credible, the Administration
must reverse its record of cutting overall funding for energy efficiency
and other clean energy technologies," said ACEEE Executive Director
Steven Nadel. "Next week's budget must show major increases in total
funding for clean energy, not just more of the program reshufflings
we've seen for the last five years."
Two of the leading examples of the administration's shrinking
commitment to energy efficiency are:
- A 14%
inflation-adjusted decline in energy efficiency RD&D funding since
FY 2002. This funding decline includes the president's Freedom
Car hydrogen vehicle program. What this means is that the Freedom
Car and other administration priorities are being funded at the
expense of other clean energy programs. So while the administration
talks glowingly about these priority initiatives, the overall
funding picture for equally important technologies has remained
negative.
- A $3
billion, 60% drop in clean energy tax incentives in the final
Energy Policy Act of 2005. While the Senate bill would have spent
$5.5 billion on efficiency and other clean energy technology incentives,
the White House insisted during conference that these tax incentives
be cut. The final bill spends $2.1 billion, largely due to administration
pressure. This loss of funding will require the building of the
equivalent of 27 additional 300-Megawatt power plants by 2020.
The President also talked about developing alternative motor fuels
to combat America's addiction to oil. While alternative fuels are
an important element of our energy future, the President is ignoring
near-term solutions—especially vehicle fuel efficiency—that can
give consumers relief at the pump while building a bridge to hydrogen
and biofuels. The President could, for example, issue a strong new
fuel economy standard this spring for SUVs, pickups, and other light
trucks, which would cut consumer fuel bills while buying time for
his longer-term solutions. Congress passed 16 new appliance efficiency
standards in 2005, which will begin saving energy in the next few
years; the Administration should follow suit by issuing strong new
fuel economy standards for light trucks.
"Energy efficiency is the cornerstone of any clean energy future.
Without it, we won't be able to grow enough biofuels, or build enough
solar, wind, or coal gasification to keep up with the runaway demand,"
said ACEEE Deputy Director Bill Prindle. "The administration needs
a more balanced energy research and policy portfolio, with more
funding and real policy action on efficiency while it is still in
office, so that its vision of a clean energy future will have a
chance."
ACEEE's fact sheet on the benefits of energy efficiency research
and development programs can be downloaded at http://www.aceee.org/energy/rdd.pdf.
Our comparison of the impacts of the Senate, House, and Conference
versions of the Energy Policy Act of 2005 can be downloaded at http://www.aceee.org/energy/0508legsvg.pdf.
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About ACEEE: The American Council for an Energy-Efficient Economy is an independent, nonprofit organization dedicated to advancing energy efficiency as a means of promoting economic prosperity, energy security, and environmental protection. For information about ACEEE and its programs, publications, and conferences, contact ACEEE, 529 14th Street N.W., Suite 600, Washington, D.C. 20045 or visit www.aceee.org.
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