[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.