GOP Disagrees on Energy, Gas Solutions

Bush Administration Refuses to Act Despite Calls From Own Party

As news of possible nationwide summer energy shortages and rising gas prices become more common, many Republican advisers and elected officials are pushing for immediate action. Nevada's Republican governor has introduced a conservation plan, western Republicans have repeatedly supported temporarily capping wholesale electricity prices in the market and reports indicate that many Republicans see the need for immediate action on gas prices. Yet, the Bush administration has failed to follow the advice of its own party, often in a dismissive fashion.

BUSH ADMINISTRATION IS SPLIT ON GAS PRICES

Alan Greenspan, Lawrence Lindsey Think President Should Pressure OPEC. One part of the Bush Administration, including, "Lawrence Lindsey, the President's chief economic adviser, and Alan Greenspan, the Federal Reserve chairman, is said to think that the administration should pressure the Organization of the Petroleum Exporting Countries to raise production. OPEC has reduced its daily output about 9 percent since the start of the year, which has helped keep crude oil prices $25 to $29 a barrel, and in turn, kept gasoline prices high." according to the New York Times. [New York Times, 5/16/01]

Cheney Faction Believes Gas Prices Are Due to Limited Refining Capacity. One part of the Bush Administration, led by Vice President Dick Cheney, believes gasoline prices are high because of limited refining capacity. "A big part of our difficulty today with respect to gasoline prices doesn't have anything to do with the price of crude," Cheney said. [New York Times, 5/16/01]

SENATE GOP IS PREPARED TO OFFER SHORT-TERM ENERGY PLAN IF BUSH DOESN'T ACT

Senate Republicans Are Prepared to Offer Their Own Short-Term Energy Plan If Bush Doesn't Address Problems. "Senate Republicans concerned about a voter backlash over rising gasoline prices and electricity shortages in California said yesterday they were prepared to address the problems if President Bush declines to offer solutions of his own," according to the Washington Post. [Washington Post, 5/16/01]

WESTERN REPUBLICANS, LAND RIGHTS ACTIVISTS ARE CONCERNED ABOUT EMINENT DOMAIN FOR POWER LINES

Western Republicans, Property Rights Groups, Are Concerned About Eminent Domain Proposals for Power Lines. "Western Republicans and property-rights groups, after years of fighting environmentalists over restrictions on land use, are gearing up to oppose the Bush administration on an issue at the heart of regional fears about overreaching federal power. President Bush's energy plan, set to be released on Thursday, is widely expected to include recommendations to allow the federal government to seize private property, using eminent-domain authority to place new electric transmission lines, administration officials say," according to the New York Times. [New York Times, 3/15/01]

• Western Governors Have Warned Bush Administration About Eminent Domain. "Several Western governors, among them Michael O. Leavitt of Utah and Dirk Kempthorne of Idaho - both Republicans - have already cautioned the Bush administration against any new federal eminent- domain authority," according to the New York Times. [New York Times, 3/15/01]

• Spokeswoman for Sen. Craig Said "Private Property is Sacred Property." "Private property is sacred property," said Sarah Berk, a spokeswoman for Senator Larry E. Craig (R-ID). "Senator Craig definitely feels this issue is best left up to the states." [New York Times, 3/15/01]

• American Land Rights Said Eminent Domain Was "Dangerous Business." "If it's going to be anything like the trouble we've had siting natural gas pipelines, I'm worried - based on all the complaints we've received," said Chuck Cushman, executive director of American Land Rights. "It's a dangerous business giving power of condemnation to any federal agency." [New York Times, 3/15/01]

NEVADA'S GOP GOVERNOR ANNOUNCED CONSERVATION PLAN, CHENEY, BUSH DISMISSED CONSERVATION

Nevada's Republican Governor Announced Conservation Plan to Avoid California's Problems, Said "Conservation Can Make a Huge Difference." On May 9th, Nevada's Republican Governor Kenny Guinn announced a statewide conservation program to deal with possible electric shortages. "Guinn said with proper conservation, he is confident Nevada can avoid many of the problems California is experiencing because Nevada utilities have contracts that will supply all but peak-power demands," according to the Nevada Appeal. "Conservation can make a huge difference of some 15 to 25 percent on their monthly bills," Guinn said. Guinn said one incentive would be "tiered" electric rates that charge households and small businesses using more electric power a higher rate. Guinn's plan recommends keeping heat controls at 68 or below - 70 degrees for seniors - and reducing it at night or when unoccupied to as low as 60 degrees. The plan recommends cooling controls set no lower than 78 degrees. The plan also recommends turning off computer monitors when not in use turning off televisions at night. The plan includes efforts to switch to fluorescent lights and change office schedules to reduce the electric demand. [Nevada Appeal, 5/10/01]

• Cheney Said Only Energy Solution Was Government Backed Exploration and Power Plant Building, Dismissed Conservation. "The only solution, [Cheney] said, is a government-backed push to find new domestic sources of oil and gas, including in protected areas of the Arctic National Wildlife Refuge, and an all-out drive to build power plants - a need that he says will require one new electricity-generating plant a week for 20 years," according to the New York Times. "Cheney dismissed as 1970's-era thinking the notion that 'we could simply conserve or ration our way out' of what he called an energy crisis," according to the New York Times. "The aim here is efficiency, not austerity," Cheney said. "To speak exclusively of conservation is to duck the tough issues. Conservation may be a sign of personal virtue, but it is not a sufficient basis for a sound, comprehensive energy policy." [New York Times, 5/1/01; Washington Post, 5/1/01]

• Bush Said it Was "Naive" to Think That Reducing Demand Could Solve the Energy Problem. On May 3, 2001, President Bush said conservation would be "an integral part" of his national energy policy, but said it was "naive" to think that reducing demand could solve the problem. "What people need to hear loud and clear is that we're running out of energy in America," Bush said. "And it is so important for this nation to improve its infrastructure so we can not only deliver supplies, but we need to find new supply. And I strongly believe we can do so in an environmentally friendly way." [www.cnn.com, 5/3/01]

• Report by National Labs Say Conservation Could Cut Demand by 20 to 40 Percent, Contradicts Bush Administration Which Hasn't Promoted The Report. A report based on three years of work by five national laboratories said that a government-led efficiency program emphasizing research and incentives for new technologies could reduce the growth in electricity demand by 20 percent to 47 percent. This would be the equivalent of between 265 and 610 big 300-megawatt power plants, a steep reduction from the 1,300 new plants that the Bush administration has predicted will be needed. The Bush administration has not promoted these findings, relying instead primarily on advice from economists at the Energy Department's Energy Information Agency, who often take a skeptical view of projected efficiency gains and predict a much greater need for fossil fuel supplies. [New York Times, 5/7/01]

GOP CONGRESS MEMBERS, GOVERNORS, SUPPORT WHOLESALE PRICE CAPS, WHICH ADMINISTRATION OPPOSES

Eight Out of 11 Western Governors, Including 5 Republicans, Supported Wholesale Price Caps on Electricity; Abraham Rejected Proposal. On February 2, 2001, at a meeting of the Western Governors' Association, eight out of 11 Western governors, including 5 Republicans and Democrat Gray Davis from California, said they wanted wholesale prices for electricity capped throughout the region. Attendees said they supported a cap that would reimburse suppliers for operating costs and permit profits of 15% to 25% above that amount, according to the Wall Street Journal. The cap would be lifted when enough power was available to create a truly competitive market among the 11 Western states that are electrically interconnected. In the meeting, Energy Secretary Spencer Abraham rejected their requests for caps on wholesale energy prices. [Wall St. Journal, 2/5/01; Associated Press, 2/3/01]

California's Republican Congress Members Have Pushed for Price Controls, Republican Congressman Said "We're in a Crisis Situation." On May 5, 2001, Rep. Elton Gallegly (R-CA), said, in a letter to Vice President Cheney, Energy Secretary Spencer Abraham and FERC Chair Curt Hebert Jr., "with anything less than these measures [capping wholesale energy price], the state of California cannot meet the short-term energy needs of its citizens." Gallegly later added, "We're in a crisis situation, which is only going to get worse if we don't act very aggressively." Rep. Duncan Hunter (R-CA), added, "there is an anti-free market mechanism in play here," and noted that natural gas costs one-third in New Mexico what it costs in California. [AP, 4/20/01; Sacramento Bee, 5/5/01; Los Angeles Times, 5/10/01]

Bipartisan Senate Bill Would Impose Price Caps on the Western Market. Sen. Smith (R-OR), Sen. Feinstein (D-CA) have sponsored a bill to impose price caps on the western market. "'This bill holds the promise of bringing an end to the electricity roller coaster ride of the past several months,' said Smith. 'As the bill is written, California will need to keep its retail rates in line with market demands, encourage energy conservation, and pay its overdue bills, including those to BPA, in order to take advantage of short-term wholesale price caps. Most importantly, Oregonians will benefit from stable, more predictable prices that will help to mitigate some of the economic fallout from this crisis.' If passed, the price caps will remain in effect until March 1, 2003. The states affected by the price caps include Oregon, California, Washington, Idaho, Arizona, New Mexico, Colorado, Utah, Montana, Nevada, and Wyoming. The bill also gives flexibility to state utility commissions in setting prices and protects utilities, such as BPA, from being ordered to sell electricity without a guarantee of payment," according to a press release by Sen. Smith's office. [Sen. Smith Press Release, 4/24/01]

• White House is Worried About Political Impact of Bush's Ignorance of California Crisis, is Seeking "Attention Getting Measures," But is Still Opposed to Price Caps. "The White House, which has steadfastly resisted California's pleas to impose firm caps on runaway electricity prices, is also worried about the political impact if the administration is seen as ignoring the state's crisis, [White House] advisers said. As part of a general push to show that the Bush team cares about California, Vice President Dick Cheney and Spencer Abraham, the secretary of energy, have briefed industry executives and California politicians on what the federal government can and cannot do to help resolve the situation. The administration is also exploring some potentially attention- getting measures to address the crisis. Under one proposal, Mr. Bush would order a nuclear-powered submarine to help provide peak power supplies for the state's grid. Administration officials have also considered turning on the generators on mothballed Navy ships in San Francisco Bay. Imposing tough price caps, the most pressing concern for most California Democrats, is off the table, said people who have participated in the discussions. Federal regulators imposed some caps last week, but California has pushed for broader and stricter limits. The administration has said it is opposed to caps of any kind," according to the New York Times. [New York Times, 5/3/01]

GOP IS CONCERNED ABOUT EFFECTS OF GAS PRICES, WHILE ADMINISTRATION REFUSES TO ACT

Gas Prices Increased by Almost 9 Cents in Last Two Weeks. "The nation's average price of gas, including all grades and taxes, increased 8.58 cents to $1.76 over the last two weeks -- with the Midwest and West experiencing the biggest jumps at the pump. USA Today reported Monday that Shell and Chevron dealers in California and Chicago say they have been told to prepare for the possibility of $3-a-gallon gasoline this summer," according to the Associated Press. [AP, 5/7/01]

• Cheney Said "There's Little We Can Do in the Short Term," on Gas Prices, Power Blackouts. On May 10, 2001, Vice President Cheney said his report offers "little quick relief to Californians living with power blackouts or motorists facing higher gasoline prices. 'There's not much we can do in the short term,'" according to USA Today. [USA Today, 5/11/01]

GOP is Worried That Bush Could Wind Up With Carter-Like Energy Problems. "Many Republicans say they are worried that, fairly or unfairly, Mr. Bush could find himself in the same predicament as President Jimmy Carter. Even after Mr. Carter declared that his energy policy was 'the moral equivalent of war,' energy problems were widely viewed as contributing to his defeat in 1980. Republican Party polls show that energy is intensifying as a major issue, and that it could easily escalate around Memorial Day weekend, when millions of Americans will start their vacations by filling up their tanks with gasoline that already costs $2 a gallon or more in some places," according to the New York Times. [New York Times, 5/10/01]

GOP Aides Said Bush's Energy Task Force Does Nothing to Address Short Term Energy Problems. After a briefing by Bush's energy task-force, several Republican aides said the Administration plan "appears only to provide long-term national solutions and does nothing substantive to address summer blackouts and skyrocketing gasoline prices in different regions of the country in the short run," according to Roll Call. [Roll Call, 5/7/01]

• Fleischer Said Bush Won't Seek Short-Term Fix for Gas Prices. "If any politician has a magic wand that they can wave over gas prices to lower them, the president... would like to listen to them…[President Bush] has never sought a quick fix because quick fixes don't work," White House Spokesman Ari Fleischer said. "He will resist the siren song of moving from one short-term solution to another." [AP, 5/7/01]

• Bush Advisers Say Bush Energy Plan Will Do Little to Address Gas Prices. Bush "advisers caution that the [Bush energy] plan would do little to address the escalating gasoline prices," according to the New York Times. [New York Times, 5/10/01]

• Sen. McCain Offered Suggestions for Temporary Gas Price Relief. Sen. John McCain (R-AZ) said to ease gas prices he would, "call up our friends in Kuwait and Saudi Arabia and others and ask them for some at least temporary help. And I would also emphasize alternate energy sources." [Meet the Press, NBC, 5/13/01]

-- Cherri (jessam5@home.com), May 18, 2001