    [Weekly Compilation of Presidential Documents Volume 36, Number 25 (Monday, June 26, 2000)]
    [Pages 1447-1448]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Letter to Congressional Leaders on National Long-Term Energy Needs

    June 22, 2000

    Dear Mr. Speaker:   (Dear Mr. Leader:)

        With so much attention focused on the recent spike in gasoline
    prices and OPEC's decision to increase production quotas, it is critical
    that we not lose sight of our nation's long-term energy needs. For seven
    years, my Administration has pursued a sound, comprehensive policy to
    address those needs. Regrettably, several key elements of this
    Administration's strategy have languished in Congress. In recent days,
    in fact, budget initiatives to strengthen our energy supply have
    suffered significant cuts, while some Members have advanced proposals
    that would seriously harm our environment in the name of energy
    security. I urge you to work closely with me to enact these critical
    energy proposals without further delay.
        I remain very concerned about high gasoline prices and find the
    situation in the Chicago/Milwaukee region particularly troubling. Last
    week, the Department of Energy (DOE) and the Environmental Protection
    Agency sent analysts to the region to explore the reasons for this price
    differential. While a number of factors appear to have contributed to
    the unusually high prices in the region, it is possible that they may
    not account for the entire increase in gas prices. The Federal Trade
    Commission has initiated an investigation of pricing practices in the
    region to determine if there is any unfair or illegal activity there. We
    look forward to the results of these investigations.
        Our concern about high gasoline prices in the short-term, however,
    cannot be allowed to distract us from addressing the long-term energy
    needs of our nation. My Administration has pursued an energy policy that
    provides a comprehensive and balanced approach to addressing the
    nation's energy needs. Unfortunately, Congress is considering proposals
    that are unnecessary and would do irrevocable harm to the environment,
    such as opening the Arctic refuge to drilling. Instead, Congress should
    act on the following key pieces of my energy policy.
        First, I have proposed a $4 billion package of tax incentives to
    encourage consumers to purchase more efficient cars, homes, and consumer
    products. Congress has failed to enact this package for over two years,
    even though these tax credits would save consumers money, protect our
    environment, and reduce our dependence on foreign oil. I also have
    proposed tax incentives to support renewable energy and the domestic oil
    industry, including the expensing of geological and geophysical expenses
    and delay rental payments.
        Second, over the past seven years I have repeatedly proposed
    significant increases in Federal investments in responsible domestic
    sources of energy, including most recently $1.4 billion in FY 2001 for
    high-priority items

    [[Page 1448]]

    at DOE for energy efficiency, renewable energy, natural gas, and
    distributed power generation systems. Specific examples of these
    investments include more efficient technologies for our factories and
    homes, weatherization of low income households, technologies to produce
    biofuels and power from biomass, and the Partnership for a New
    Generation of Vehicles (PNGV)--a collaborative effort with automakers to
    deliver affordable cars that are three times more fuel efficient. Yet,
    Congress has failed to support these critical goals, approving only 12
    percent of our proposed increases for energy efficiency and renewables
    over the past seven years. This year, the House has already cut DOE's FY
    2001 budget for energy efficiency programs below last year's enacted
    level and has cut virtually all DOE funding for the PNGV program.
        Third, two years ago I submitted the Comprehensive Electricity
    Restructuring Act to Congress, to improve the operation and efficiency
    of the electricity sector. Congress to date has not enacted a
    comprehensive restructuring bill. Such legislation would improve the
    reliability of our electric power system, provide American consumers an
    estimated annual savings of $20 billion as a result of competition in
    electricity markets, and significantly reduce greenhouse gas emissions.
        Fourth, to address energy supply emergencies, I have called for
    reauthorization of the Strategic Petroleum Reserve (SPR), the
    establishment of a regional home heating oil reserve in the Northeast,
    and replenishment of the Low Income Home Energy Assistance Program
    emergency funds. Authorization for the SPR expired on March 31, 2000. It
    is critical that the SPR be reauthorized so that I have available all
    means to respond to any possible energy supply emergency. Further, the
    Department of Energy cannot establish a regional home heating oil
    reserve in the Northeast to respond to shortages of home heating oil
    until Congress either reauthorizes the SPR or separately passes
    legislation authorizing the creation of such a reserve with a
    responsible trigger. Because Congress has failed to act thus far, it
    will be virtually impossible to establish a home heating oil reserve in
    time for next winter.
        America needs a balanced, forward-looking energy policy based on the
    proposals that my Administration has put before Congress. We are
    committed to a responsible approach that will infuse our energy sector
    with both efficiency and competition; that values clean air, clean
    water, and healthy lands; and that seeks to cushion America against
    emergencies in the energy market. Congress should act on my proposals
    without further hesitation.
         Sincerely,
                                                William J. Clinton

     Note:  Letters were sent to J. Dennis Hastert, Speaker of the House of
    Representatives; Richard A. Gephardt, House minority leader; Trent Lott,
    Senate majority leader; and Tom Daschle, Senate minority leader. An
    original was not available for verification of the content of this
    letter.