    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [June 15, 2005]
    [Pages 993-999]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks to the 16th Annual Energy Efficiency Forum
    June 15, 2005

        Thank you all. Thanks for the warm welcome. John, thanks for the introduction. Thanks for the invitation to
    be here for the 16th annual Energy Efficiency Forum.

    [[Page 994]]

    It's an important forum. By advancing the national dialog on the future
    of energy, you're helping us support the cause of energy efficiency. And
    that's critical for our economy, and it's critical for the future of
    this Nation.
        You see, increasing energy efficiency will help consumers save
    money. Increasing energy efficiency will leave American businesses with
    more capital, will make American businesses more competitive. Increasing
    energy efficiency will help reduce our energy consumption and to help us
    achieve a vital national goal, and that is making America less dependent
    on foreign sources of energy. And that's what I want to talk to you all
    about today, a strategy to make us less dependent on foreign sources of
    energy.
        I want to thank John. I want to thank Bob
    Catell, who is the event host. He's the
    chairman of the United States Energy Association. I want to thank Betty
    Arndt. I want to thank Barry
    Worthington. Thank you both for setting
    this event up. I want to thank the Assistant Secretary, David
    Garman, of the Department of Energy, for
    being here. I appreciate Pat Wood, the FERC
    Chairman. Where are you, Pat? There he is, my fellow Texan. How many
    children you got now? [Laughter] Three, one on the way? [Laughter]
        I want to thank your fellow commissioners--Commissioner
    Brownell, Commissioner
    Kelliher, Commissioner Kelly--for joining you all. Thank you all for coming.
    Thanks for serving. Appreciate what you do.
        I'm optimistic about this country's future, and Americans have a
    reason to be optimistic as well. Over the last 2 years, we have added
    more than 3.5 million new jobs. More Americans are working today than
    ever before in our Nation's history. Homeownership in America is at an
    alltime high, and that's good. We want more people owning something in
    America. We want more small-business owners. We want more homeowners. I,
    personally, think it would be good for the country if people had more
    control over their retirement accounts.
        Small businesses are flourishing. Factory output is growing. Exports
    are at their highest level ever. Families are taking home more of what
    they earn. Because of our policies, our economy is growing and creating
    more opportunity and increased prosperity for millions of citizens, and
    that's good news.
        And to build on this success and to keep this economy growing. We
    need an affordable, reliable supply of energy, and that starts with
    pursuing policies to make prices reasonable at the pump. Today, millions
    of American families and small businesses are hurting because of high
    gasoline prices. If you're trying to meet a payroll or trying to meet a
    family budget, even small increases at the pump have a big impact on
    your bottom line. For the sake of American families and American
    workers, this country must take action now to deal with the causes of
    rising gasoline prices.
        The primary cause of rising gasoline prices is that the global
    demand for oil is growing faster than global supply. Here in America, we
    have become too dependent--too dependent--on the increasingly limited
    supply of foreign oil for our own energy needs. For many years, most of
    the crude oil refined in American--into gasoline in America came from
    domestic oil fields. In 1985, 75 percent of the crude oil used in U.S.
    refineries came from American sources, only about 25 percent came from
    abroad. Today, that equation is nearly reversed. In a relatively quick
    period of time, only about 35 percent of the crude oil used in U.S.
    refineries is produced here at home--think about that--while about 65
    percent comes from foreign countries like Saudi Arabia, Mexico,
    Venezuela, and Canada. To compound the problem, countries with rapidly
    growing economies like India and China are competing for more of the
    world oil supply, and that drives up the global price of oil, and that
    makes prices of gasoline here at home even higher for

    [[Page 995]]

    our families and small businesses and farmers.
        Our dependence on foreign oil is like a foreign tax on the American
    Dream, and that tax is growing every year. My administration is doing
    all we can to help ease the problem. We're encouraging oil-producing
    countries to maximize their production, so more crude oil is on the
    market to meet the demands of the world. And we're going to make sure
    that consumers here at home are treated fairly. There's not going to be
    any price gouging here in America.
        But people got to understand our dependence on foreign oil didn't
    develop overnight, and it's not going to be fixed overnight. To solve
    the problem, our Nation needs a comprehensive energy policy. That's why
    one of the first things I did when I came to office 4 years ago was to
    develop a new energy strategy for America. And in my first months in
    office, I sent Congress a plan to put our Nation on the path to greater
    energy independence. For 4 years, the United States Congress has
    discussed and debated the plan with no result. So earlier this year, I
    sent a clear message to Congress: Get a good energy bill on my desk
    before the August recess. Now is the time for them to act.
        The House has acted, and I want to thank the leadership in the
    House. And the Senate's turn is now up. It's now their time to get
    something done. And they're beginning the debate on the energy bill this
    week. And my advice is they ought to keep this in mind: Summer is here;
    temperatures are rising; and tempers will really rise if Congress
    doesn't pass an energy bill.
        The American people know that an energy bill will not change the
    price of gas immediately, but they're not going to tolerate inaction in
    Washington as they watch the underlying problems grow worse. We have a
    responsibility to confront problems. The American people expect us to
    act in good faith here in Washington. To address the root causes of high
    gas prices, we need to take four important steps toward one vital goal,
    and that is making America less dependent on foreign sources of oil.
        The first step toward making America less dependent on foreign oil
    is to improve conservation and efficiency. That's why this conference is
    an important conference, and I want to thank you for holding it. Hybrid
    vehicles are one of the most promising technologies immediately
    available to consumers. There are some interesting things taking place
    in the market place that will help achieve this part, this step of less
    dependency on foreign sources of oil. Hybrid automobiles are powered by
    a combination of gasoline and electricity. Some can travel twice as far
    on a gallon of fuel as gasoline-only vehicles. Hybrids produce lower
    emissions. To help consumers conserve gas and protect the environment, I
    proposed that every American who purchases a hybrid vehicle receive a
    tax credit of up to $4,000. We're trying to encourage people to make
    right choices in the market place that will make us less dependent on
    foreign sources of oil and to help improve our environment.
        We are also encouraging automakers to produce a new generation of
    modern, clean diesel cars and trucks. My administration has issued new
    rules that will remove more than 90 percent of the sulfur in diesel fuel
    by 2010. Clean diesel technology will allow consumers to travel much
    farther on each gallon of fuel without the smoke and pollution of past
    diesel engines. To encourage this promising technology, Congress should
    extend the tax incentives for the purchase of hybrid vehicles to clean
    diesel cars and trucks. You see, America leads the world in technology,
    and we need to use that technology to lead the world in fuel efficiency.
        The second step toward making America less dependent on foreign oil
    is to produce and refine more crude oil here at home in environmentally
    sensitive ways. By far the most promising site for oil in America is the
    Arctic National Wildlife Refuge in

    [[Page 996]]

    Alaska. Technology now makes it possible to reach the oil reserves in
    ANWR by drilling on just 2,000 of the 19 million acres. Developing this
    tiny area could eventually yield up to a million barrels of oil a day,
    and that million barrels of oil a day would be--would make us less
    dependent on foreign sources of energy. Thanks to technology, we can
    reach ANWR's oil with almost no impact on land or local wildlife. To
    make America less dependent, Congress needs to pass a progrowth,
    projobs, proenvironment development of ANWR. It makes sense. It is an
    important part of a comprehensive strategy.
        We also need to improve our ability to refine crude oil into
    gasoline and other products. Do you realize this? There hasn't been a
    single new refinery built in America since 1976. To meet our growing
    demand for gasoline, America now imports about a million barrels of
    refined gasoline every day. That means about one out of every nine
    gallons of gas you get at the pump is refined in a foreign country. Not
    only are we dependent on foreign sources of oil, we're becoming more
    dependent on foreign sources of gasoline.
        To help secure our gasoline supply and lower prices at the pump, we
    need to encourage existing refineries to expand their capacity. So the
    Environmental Protection Agency is working to simplify rules and
    regulations for refinery expansion, and I'm confident we can do so and
    maintain strict environmental safeguards. We also need to build new
    refineries. So I've directed Federal agencies to work with States to
    encourage the construction of new refineries on closed military
    facilities and to simplify the permitting process for these new
    refineries. By promoting reasonable regulations, by being wise with
    policy, we can refine more gasoline at home, and that will make us less
    reliant on foreign sources of gasoline.
        The third step toward making America less dependent on foreign oil
    is to develop new alternatives to gasoline and diesel. Two years ago, my
    administration launched an ambitious program called the Hydrogen Fuel
    Initiative. We've already dedicated $1.2 billion over 5 years to this
    effort to develop hydrogen-powered fuel cell vehicles. Last month, I
    visited a hydrogen fueling station right here in Washington. I saw cars
    and vans that run on hydrogen fuel cells instead of gasoline. And these
    cars and vans emit pure water instead of exhaust fumes. The energy bill
    will authorize additional funds for this vital initiative. With bold
    investments now, we can begin to replace a hydrocarbon economy with a
    hydrogen economy and make it possible for our children, today's children
    to take the driver's test in a completely pollution-free vehicle.
        We've got to be aggressive about finding alternative sources of
    fuel. And one such source is ethanol. Ethanol comes from corn, and we're
    pretty good about growing corn here in America. We've got a lot of good
    corn growers. Therefore, it makes sense to promote ethanol as an
    alternative to foreign sources of oil. Ethanol can be mixed with
    gasoline to produce a clean, efficient fuel. In low concentrations,
    ethanol can be used in any vehicle. And with minor modifications,
    vehicles can run on a fuel blend that includes about 85 percent ethanol
    and 15 percent gasoline. Ethanol helps our farmers find new markets and
    helps us replace foreign crude oil. I mean, I like the idea of spending
    money on research to make ethanol more feasible, so that some day an
    American President says, ``Show me the crop report.'' [Laughter] As
    opposed to, ``How many barrels of crude oil are we importing?''
        By the way, we can get the same type of alternative fuel from
    soybeans. It's called biodiesel, and that's a promising source of
    energy. I went to a biodiesel refinery in Virginia that is making fuel
    from soybean oil. Other producers are making biodiesel, by the way, from
    waste products like recycled cooking grease. Biodiesel can be used in
    any vehicle that runs on regular diesel. So as you get more clean diesel
    engines

    [[Page 997]]

    in America, biodiesel becomes an alternative fuel for them. It burns
    more completely and produces less air pollution than gasoline or regular
    diesel.
        It makes sense for the energy bill to encourage renewable sources of
    energy that are becoming much more practical and much more economic in
    today's world. To encourage greater use of ethanol and biodiesel, my
    administration supports a flexible, cost-effective renewable fuel
    standard as a part of the energy bill. This proposal would require fuel
    producers to include a certain percentage of ethanol and biodiesel in
    their fuel. I proposed $84 million in the 2006 budget for ongoing
    research into advanced technologies that can produce ethanol from farms,
    forests, or even municipal waste dumps. We've got a chance here as we go
    forward to do something smart, and that is figure out ways to use that
    which we grow or that which we dispose of to replace foreign sources of
    oil.
        The fourth step toward making America less dependent on foreign oil
    is to help other nations use technology to reduce their own demand for
    crude oil and gasoline. Much of the current projected rise in gasoline
    prices is due to rising oil consumption in Asia. These are emerging
    economies that are consuming more natural resources, one of which is
    oil. As Asian economies grow, their demand for oil is growing much
    faster than global supply is growing. And that drives up price. It's in
    our interest to help countries like India and China become more
    efficient users of hydrocarbons. That will help take the pressure off
    global supply, take the pressure off gasoline prices here at home.
        At the G-8 meeting next month, I'll ask other world leaders to join
    America in helping developing countries find practical ways to use
    cleaner, more efficient energy technologies. When we lower the global
    demand for oil, Americans will be better off at the gas pump and future
    generations will breathe cleaner air too.
        As we make America less dependent on foreign oil, we are pursuing a
    comprehensive strategy to address other energy challenges facing our
    country. Along with high gas prices, many families and small businesses
    are confronting rising electricity bills. Summer air conditioning costs
    are going to make it even more expensive to power homes and office
    buildings.
        To help our consumers save on their power bills, we must continue
    expanding our efforts to improve conservation and efficiency. The energy
    bill would extend the Energy Star program. This program encourages the
    sale and production of energy-efficient products, like superefficient
    refrigerators that use less energy than a 75-watt light bulb. Advances
    in efficiency are saving American consumers more money. In 2001, the
    average American family spent about half as much to heat its home as it
    did in 1978. One day, technologies like solar panels and high-efficiency
    appliances and advanced insulation could even allow us to build zero-
    energy homes that produce as much energy as they consume.
        We must also harness the power of technology to help us deliver
    electricity more efficiently. For example, the Department of Energy is
    funding research and development of superconducting power lines. It's
    important research because it will enable us to more efficiently move
    electricity. Really what we need to do is bring our electricity grid
    into the 21st century. Congress should make reliability standards for
    electric utilities mandatory, not optional. We have modern interstate
    grids for our phone lines and highways; it's time for this country to
    build a modern electricity grid so we can protect American families and
    businesses from damaging power outages.
        To power our growing economy, we also need to generate more
    electricity. Electricity comes from three principal sources, coal,
    natural gas, and nuclear power. To ensure that electricity is affordable
    and reliable, America must improve our use of all three.

    [[Page 998]]

        Coal is our Nation's most abundant energy source, and America is
    blessed with enough coal to last for the next 250 years. Yet coal
    presents an environmental challenge. So when I ran for President in
    2000, I pledged to invest $2 billion over 10 years for research into
    clean coal technologies to remove virtually all pollutants from coal-
    fired powerplants. My budget for 2006 brings clean coal funding to 1.6
    billion over 5 years--puts us on pace to exceed my pledge. And there's
    no doubt in my mind we can succeed. There's no doubt in my mind this
    great country can use technology to be able to burn coal in
    environmentally friendly ways.
        Congress needs to pass the Clear Skies Initiative, which is a
    reasonable--it's a good piece of legislation. It's sound policy. They
    need to pass it. And by passing it, not only will we clean the
    environment, but it will result in tens of billions of dollars in clean
    coal investments by private companies. America must invest in clean coal
    technology and continue to do so, to harness the power of an abundant
    resource.
        Improving our electricity supply also means making better use of
    natural gas. The United States has the sixth largest proven reserves of
    natural gas in the world. We need to increase environmentally
    responsible production of natural gas from our Federal lands. And to
    further increase our natural gas supply, Congress needs to make clear
    Federal authority to choose sites for new receiving terminals for
    liquefied natural gas.
        We need to expand our Nation's use of nuclear power. America has not
    ordered a nuclear powerplant since the 1970s. France, by contrast, has
    built 58 plants in the same period of time, and today, France gets more
    than 78 percent of its electricity from safe, low-cost nuclear power.
    It's time for America to start building again. So I've directed the
    Department of Energy to work with Congress to help pass legislation that
    will reduce uncertainty in the nuclear plant licensing process. We're
    also working with Congress to provide other incentives, such as Federal
    insurance to protect the builders of the first four new plants against
    lawsuits, bureaucratic obstacles, and other delays beyond their control.
    To build a secure energy future for America, we need to expand
    production of safe, clean nuclear power.
        So I appreciate you letting me come by today to talk about a
    comprehensive strategy, a comprehensive way forward to achieve one
    overriding goal, and it's an important goal to achieve. And the goal is
    to address the root causes of higher energy costs by diversifying our
    energy supply and reducing our dependence of foreign sources of energy.
        For the past 4 years, Americans have been paying the price for
    delaying a national energy policy. They've been watching their power
    bills go up. They've seen blackouts. And they're watching the price of
    gasoline rise at the pump. The energy bill will help us make better use
    of the energy supplies we now have and will make our supply of energy
    more affordable and more secure for the future. To make this promise
    real tomorrow, we've got to act today. Now is the time. Now is the time
    to stop the debate and the partisan bickering and pass an energy bill.
        I look forward to working with Members of the Congress to come up
    with reasonable comprises on outstanding issues such as MTBE. But for
    the sake of national security and for the sake of economic security, the
    Congress needs to pass an energy bill now.
        Now is the time to act. Now is the time to put a strategy--we should
    have done this 10 to 15 years ago. Now is the time to move. And history
    shows that American innovation is never in short supply. That's the good
    news. We're going to harness our innovative spirit in this new century,
    and by doing so, we will leave our children and grandchildren a cleaner,
    a healthier, and a more secure America.
        May God bless you all.

    [[Page 999]]

    Note: The President spoke at 11:05 a.m. at the Ronald Reagan Building
    and International Trade Center. In his remarks, he referred to John M.
    Barth, chairman and chief executive officer, and Betty L. Arndt, vice
    president of communications, Johnson Controls, Inc.; Robert B. Catell,
    chairman and chief executive officer, KeySpan Corp.; and Barry K.
    Worthington, executive director, United States Energy Association. The
    Office of the Press Secretary also released a Spanish language
    transcript of these remarks.