Fact sheet: John Kerry: 3 Big New Ideas To Achieve Energy Independence...

I propose establishing an aggressive economy wide cap and trade program to reverse emissions growth starting in 2010. After that, we will progress to more rapid reductions and end at 65 percent below 2000 emissions by the year 2050.

http://www.johnkerry.com/pressroom/speeches/spc_2006_06_26.html

John Kerry: 3 Big New Ideas To Achieve Energy Independence And Combat Global Climate Change

America's oil dependence and contributions to global climate change are endangering our national security, our economy, and our environment. America consumes one-quarter of the world's total oil, but has less than 3 percent of its known reserves. Currently, we import about 60 percent of our oil, making us dangerously dependent on a precarious energy source which is vital to our economy and way of life. According to the Energy Information Administration, U.S. oil consumption is projected to grow significantly over the next two decades, forcing us to rely on imports for nearly 70 percent of our oil by 2025, and increasing our dependence on some of the most unstable regions in the world. America also contributes about 30 percent of the world’s greenhouse gas emissions but comprises only 5 percent of the world’s population.

Senator Kerry knows we cannot win the war on terror and get serious about global climate change and energy security, if we do not take bold steps to actually break our oil addiction. Talk is not enough. A safer, more secure energy future is well within our reach. The imperative has never been greater to reshape the future of our energy supply and energy use. First, Kerry will establish an oil savings goal and implement an aggressive set of policies to reach it. Second, he believes we must immediately expand the availability of renewable fuels to run our cars. And third, he believes we need to get serious about climate change and take measures to freeze and reverse our greenhouse gas emissions.

(1) Reverse and Stop Emissions that Cause Global Warming

Climate change is caused by carbon dioxide and other greenhouse gases in the atmosphere that trap the sun’s heat and cause the planet to heat up. Climate change poses a growing threat to our national and economic security – and to the planet our children and grandchildren will inherit. Last week, the National Academy of Science concluded that the Northern Hemisphere was the warmest it has been in 2,000 years and that "human activities are responsible for much of the recent warming."

Kerry Plan: Science tells us that we face a grave risk of potentially devastating impacts if global temperatures increase by even more than a few degrees. Senator Kerry will introduce the most comprehensive legislation yet put before Congress to slow, stop and reverse greenhouse gas emissions. His plan sets greenhouse gas emissions targets that science suggests will keep temperatures below the danger point. The level of emissions is frozen in 2010 and then gradually declines each year to 65 percent below 2000 emissions levels by 2050. The bill achieves these targets through a flexible, economy-wide cap-and-trade program for greenhouse gas emissions. It includes measures to advance technology and reduce emissions through clean, renewable energy and energy efficiency in the transportation, industrial and residential sectors.

The U.S. is the world’s single largest emitter of greenhouse gases, but the U.S. alone cannot solve the challenge of global climate change. It is going to take action from other countries - - both developed and developing. The Kerry proposal includes a resolution expressing the urgent need for President Bush to re-engage in international climate negotiations.

(2) Mandates for Reducing Oil Consumption

The United States is saddled with rising prices for gasoline, escalating uncertainty in energy markets, and increasing oil imports in the foreseeable future. These stubborn facts will not change without an aggressive policy response that promotes both radically increased energy efficiency in our vehicle fleet and a rapid shift to greater use of alternative renewable fuels. The imperative – and the opportunity -- has never been greater to reshape the future of our energy supply .

SETTING OIL SAVINGS AS AN URGENT PRIORITY

The biggest flaw with the energy bill the president signed into law last summer, the Energy Policy Act of 2005, is that it does virtually nothing to reduce U.S. oil use, despite the fact that about 60 percent of oil is now imported and the percentage is projected to steadily rise.

• Senator Kerry’s plan will set mandatory targets for reducing U.S. oil use by 2.5 million barrels of oil a day by 2015.

A. Transportation: Transitioning from Oil Dependence to Renewable Fuels
The transportation sector consumes more than two-thirds of the oil we use, accounting for 13 million barrels of oil per day, and roughly a third of our greenhouse gas emissions. We can reduce our oil dependence by transforming our transportation sector: improving the efficiency of our vehicles, making more clean and super-efficient vehicles that are affordable, and that can run on renewable fuels.

PROMOTING THE DEVELOPMENT OF SUPER-EFFICIENT VEHICLES

Over the past 20 years, automakers have used advancements in technology to add more than 800 pounds to the average vehicle and to nearly double horsepower, while fuel economy has slipped. Today we have the technology to preserve or improve the current size, utility, performance, and safety characteristics of our vehicles, while at the same time increasing fuel economy. And over the next 20 years, hybrid technology -- including hybrids that run on clean, alternative fuels -- and plug-in hybrids, can deliver even greater gains in fuel economy. In the short-term, we need to take steps to ensure that there are more of all of these types of vehicles on the road.

• Strengthen CAFÉ. We must raise our federal fuel economy standards. America has already proven that such strides are possible. Fuel economy for new passenger cars nearly doubled between 1975 -- when standards were first adopted -- and their peak in 1988, while fuel economy for new light trucks increased by 50 percent. But the rules for passenger cars haven't changed since 1985, and the average mileage of our new cars and trucks today is at its lowest level in 20 years. Increased fuel economy standards would also bring significant reductions in global warming pollution.

• Accelerate the Conversion of American Vehicles to Flexible Fuel Technology. Flexible fuel vehicles can run on higher blends of ethanol, which helps displace petroleum. The Kerry plan mandates that by 2020, 100% of cars can run on flex fuels.

• Tax Credits to Convert Factories to Build the Cars of the Future. A recent study by the University of Michigan found that unless U.S. automakers move faster to build hybrids, thousands of jobs could be lost. Producing fuel-efficient, advanced-technology vehicles will require automakers and their suppliers to retool their factories. Hybrid vehicles rely on advanced equipment such as battery packs, electric motors and generators, and electronic power controllers -- components that currently come from factories in Japan and Europe. Tax credits will help manufacturers make capital investments necessary to retool their factories, increase the cost-effectiveness of advanced technologies, and stimulate job growth in the production of cleaner, more efficient vehicles. Senator Kerry’s plan will provide a total of $3 billion over the next five years in consumer and manufacturer tax credits to spur these changes.

• Close the SUV Loophole. Under current tax policy, the government grants massive tax breaks to purchasers of SUVs. The original intent of the provision was to increase capital investments by farmers and other small business owners who rely on light-trucks or vans. When this provision was added to the tax code, luxury passenger SUVs were not the market force they have become, and it appeared a good way to help small businesses. Over time, however, this provision has developed into a loophole big enough to drive a 6,000-pound SUV through. The Kerry proposal will eliminate the loophole that allows the law to be misused by more accurately defining "passenger vehicles" and "work vehicles."

PROMOTING BIOFUELS AND INFRASTRUCTURE

To reduce our dependence on foreign oil, we must ensure an adequate supply of advanced technology vehicles and an adequate supply of fuel to power them. Recently-passed energy legislation included a number of provisions that should be rapidly implemented and fully funded to expand investment in alternative fuels. There are more vehicles on the road that can run on biofuels. Now we must remove the barriers to ethanol and other biofuels at fueling stations across the country. And, we need to build facilities to make ethanol from switchgrass and other waste products, in addition to corn, so we can ensure that 30 percent of our fuels are biofuels by 2020.

• Mandate Ethanol Pumps at Gas Stations. Today, there are 6 million flex fuel vehicles on the road, but less than one percent of the nation’s fueling stations have E85 pumps. Kerry will ensure that 18,000 gas stations owned or branded by a major oil company offer at least one ethanol pump by 2010. And he plans to offer an amendment to the energy spending bill later this year to help us move towards that goal. The Kerry plan will also provide incentives to independent and retail chain owners to install clean alternative fueling pumps.

• Keep Ethanol Competitive with Oil. Kerry believes that we should take steps to ensure that there is a market for ethanol, even if the price of oil falls dramatically. The Kerry plan would make the Volumetric Ethanol Excise Tax credit (VEETC) variable with the price of oil to ensure that if oil prices drop, investment in ethanol does not. Kerry’s proposal would vary the credit from $0.40 at current prices up to $0.80, instead of the current $0.51 credit as oil prices fluctuate from $70 to $30 per gallon.

• Invest in Cellulosic Ethanol. Cellulosic ethanol has the potential to substantially reduce our consumption of gasoline. Unlike traditional ethanol, which is made from grains such as corn, wheat or soybeans, cellulosic ethanol can be produced from a great diversity of biomass, and a technological breakthrough could lead to widespread use of cellulosic ethanol to fuel our vehicles. The Kerry plan will increase the cellulosic ethanol production incentives to $2 billion over 10 years.

B. Enhancing domestic energy supply

PROMOTING RENEWABLE ENERGY
Twenty-one states and the District of Columbia have implemented market-based Renewable Energy Portfolio programs that require utilities to gradually increase the portion of electricity produced from renewable resources such as wind, biomass, geothermal, and solar energy. A study by the Union of Concerned Scientists found that under the Energy Information Administration’s 2004 gas price forecast, a renewable standard of 20 percent by 2020 would save $26.6 billion and that commercial and industrial customers would be the biggest winners.

• National Renewable Energy Portfolio Standard. Kerry’s proposal will direct the Department of Energy to seek an aggressive federal renewable energy purchase requirement and to establish a national Renewable Energy Portfolio Standard of 20 percent by 2020.

C. Increasing Energy Efficiency

In addition to developing new sources of energy, we must make better use of available energy. New technological advances in appliances, energy grid systems, and buildings can boost productivity, create jobs, improve the reliability and safety of the energy infrastructure, and make dramatic inroads in reducing air pollution. Energy efficiency investments are crucial for meeting both our near-term and long-term energy needs.

SETTING STRONGER EFFICIENCY STANDARDS FOR BUILDINGS AND APPLIANCES
• Increase Federal Government Energy Efficiency. The Kerry plan will mandate that the government decrease energy usage through efficiency and conservation measures to achieve a reduction in federal energy consumption of 25% by 2025.

• New ‘Model’ Efficiency Standards. The Kerry plan will require the Department of Energy to develop national “model standards” to make new buildings at least 30 percent more energy efficient and update appliance efficiency standards and standards for manufactured homes, which account for almost one-third of new housing construction. The Kerry plan will also require that updated standards be reevaluated every five years for most appliances to determine whether the standards need to be strengthened.

• National Standards for Utilities. The Kerry plan will direct the Department of Energy to establish national standards requiring utilities to obtain, each year, one percent of their energy supplies through energy efficiency improvements at customer facilities. These savings would accumulate each year through 2025.

(3) Developing Energy Technologies for the Future
• Senator Kerry will double federal government funding for energy research and development; increase incentives for private sector energy research, development, demonstration, and early deployment (ERD); expand investment in cooperative international ERD initiatives and facilitate greater coordination among relevant federal agencies.

• Establish a new Energy Security and Conservation Trust Fund Reducing our dependence on oil and building a future of clean and abundant energy are urgent national priorities. Our political system, however, does not treat them that way. To assure that the nation is on a track to reduce oil dependence, Kerry is once again calling for the creation of an Energy Security and Conservation Trust Fund capitalized by rolling back tax breaks for big oil. The revenues will be dedicated to accelerating the commercialization of technologies that will reduce America’s dangerous dependence on oil. The Trust Fund will allocate $20 billion over the next decade to reduce oil dependence and create a cleaner and more reliable energy future.

http://www.johnkerry.com/features/energy/facts.html

Keep Our Environment Clean to Promote Urban Growth. Too many low income and minority communities have borne a disproportionate burden of air pollution, water pollution and other environmental hazards. John Kerry will create Environmental Empowerment Zones to ensure that the federal government considers environmental justice in decisions that affect communities. Kerry also supports the Brownfields Program that empowers states, communities and other stakeholders in economic redevelopment to work together to prevent, assess, safely clean up and reuse Brownfields.

Invest in Transportation While Strengthening Homeland Security Infrastructure. Within John Kerry's State and Local Tax Relief and Education Fund, billions will be available to states and localities to improve infrastructure without forcing them to raise taxes. Having transportation choices means having the flexibility to use transportation dollars to best fit local needs such as funding light rail and streetcar systems, expanding bus service or redesigning neighborhood streets and sidewalks to be more pedestrian friendly. Mass transit projects trigger capital investment, sound planning, environmental awareness, energy efficiency, and decent union wages to thousands of workers. Kerry will also invest in homeland security and port security, freeing up more money for states and localities to invest in upgrading infrastructure - while enhancing our security.

http://releases.usnewswire.com/GetRelease.asp?id=33665