Morgan Goodspeed
Avi Mayer
Mark Hall

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$14.5 billion new and extended tax breaks
Nuclear: greater federal backing and insurance for construction of new plants
Low-carbon: wind, biomass, landfill, geothermal tax incentives
Coal: $1.8 billion clean-coal and gasification technologies
Oil: SPR expanded from 700 mil to 1 bil

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Transportation: fuel additives increase according to Renewable Fuel Standards, tax credits for hybrids, clean-diesel, hydrogen
Efficiency: federal buildings 20% reduction
Uranium: 100 pounds weapons-grade may be exported annually
Renewable: 7.5% increase by 2013 is the objective

Daylight-Saving Time (DST)
A policy, first instituted in 1918, aimed at better-utilizing daylight hours and conserving energy by setting-ahead have the
-s in order to rise and set later in the day.

DST
Background
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Concept first suggested by
Adopted by a number of European countries during World War I.
1918 – First DST law enacted in the
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Established standard time zones.
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Set DST to commence March 31.
Repealed in 1919 due to
Reinstituted during
WWII.
Repealed following the war.

DST
Background
I am not a crook!
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1973 – OPEC oil embargo!
Emergency Daylight Saving Time
Energy Conservation Act signed by
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Instituted year-round DST for 2 years.
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1975 - Congress refused to renew the Act, again due to
1986 – Public Law
99-359 signed by
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Instituted DST from first Sunday in April through last Sunday in October.
Win one for the Gipper!

DST
Advantages
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DoT and DoE studies suggest 10,000 barrels were saved daily during the 1974 and 1975 trial years.
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Current daily use: 20 million barrels (savings would equal 0.05% of current daily use)
BUT serious problems with making current determinations based on that data
To be continued…

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Federal government final say on LNG terminal siting authority through FERC
FERC request for eminent domain for onshore sites
Kelo v. City of New London
(public purpose over public use interesting applications for the energy industry)

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October House bill gave the President authority to site refineries in old military bases
Greater number of projects exempted from traditional environmental testing under the Energy
Act

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The Environmental Protection Agency
(EPA) is concerned with the country’s energy usage.
Fuel Economy
Energy Star Program

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Test created in 1972
Calculates fuel consumption by using formulas and equations
Test does not directly measure fuel consumption

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Created in 1992
Focuses on getting products to be more energy efficient
Saved 10 billion dollars in 1994

National Security
The territorial integrity, sovereignty, and international freedom of action of the

National Security
Background



Oct. 6, 1973 – Yom Kippur War
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Soviets ship billions of $ worth of arms to the
Arab states
Oct. 8 – OPEC members demand 100% increase on posted oil prices
Oct. 17 - OPEC announces it will halt exportation of oil to countries that support Israel

National Security
Background



Oct. 19 – Nixon requests funding for airlift to Israel
Same day – King Faisal of Saudi Arabia announces embargo of oil shipments to the U.S.
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Embargo extended to the Netherlands, Portugal,
Rhodesia and South Africa
Nov. 5 – OPEC members announce 25% output cut and threaten further cuts

National Security
Background



Price of oil quadruples overnight to $12 a barrel ($52.98 today)

Price of 1 gallon of gasoline rises from national average of 38.5 cents to 55.1 cents ($2.43 today)
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NYSE shares lose $97 billion ($428.3 billion
today) in value in six weeks
Nov. 27 - Nixon signs Emer. Petroleum
Allocation Act
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National speed limit of 55 MPH imposed
Recession

National Security
Quotations
”Now we have a choice. But if we wait, we will live in fear of embargoes. We could endanger our freedom as a sovereign nation to act in foreign affairs.”
(April 18, 1977)
”Declining domestic oil production, rising oil imports, and growing Free World dependence on potentially insecure sources of supply raise a number of concerns, including vulnerability to a major supply disruption.”
(January 3, 1989)

National Security
Stats
The United States currently imports some
58% of the oil it consumes, most of it from Canada, Saudi Arabia,
Mexico and Venezuela.

National Security
Quotations
37:30
”We value an America that controls its own destiny because it’s finally and forever independent of
Mideast oil. What does it mean for our economy and our national security when we have only 3 percent of the world's oil reserves, yet we rely on foreign countries for 53 percent of what we consume? I want an America that relies on its ingenuity and innovation, not the Saudi royal family.
And our energy plan for a stronger America will invest in new technologies and alternative fuels and the cars of the future so that no young American in uniform will ever be held hostage to our dependence on oil from the Middle East.”
(July 29, 2004)

National Security
Quotations
12:20
”To keep our economy growing, we also need reliable supplies of affordable, environmentally responsible energy. Nearly four years ago, I submitted a comprehensive energy strategy that encourages conservation, alternative sources, a modernized electricity grid, and more production here at home, including safe, clean nuclear energy…
Four years of debate is enough! I urge Congress to pass legislation that makes America more secure and less dependent on foreign energy .”
(February 2, 2005)

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Oil: total refining capacity lower than 1981 levels due in part to oil companies’ business tactics
Nuclear: no new plants have been ordered since
1978, and none since 1973 have been completed, mostly for perceived safety risk

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LNG: landlocked states outvote the coastal states that will be most affected
Electric grid: local opposition to state and federal projects often because unsightly, perceived as lowering neighborhood value

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Climate-change issues notoriously absent from most pieces of legislation, environmentalists unhappy about the disregard for greenhouse gases
Requirements or recommendations? Lacking teeth behind reduction suggestions and putting resources into production, exacerbating the problem

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BIGGEST: Where are the increased CAFÉ standards?
Would do the most to decrease reliance on foreign energy
CAFÉ given only $6 million over 5 years
Politicians claim job loss and safety as their primary concerns

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Test is outdated
Requirements are too easy
Greenhouse gases aren’t taken into enough consideration

DST
Proposals
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Reps. Markey (D-Mass.) and Upton (R-Mich.) introduce amendment to Energy Policy Act
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Would extend DST by two months.
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Claim that measure would save 100,000 barrels per day
”The beauty of daylight saving time is that it just makes everyone feel sunnier. In addition to the benefits of energy saving, less crime, fewer traffic fatalities, more recreation time and increased economic activity, day light saving just brings a smile to everybody’s faces.”

DST
Eh… nope
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Estimates based on thirty-year-old data
”I want to note that these studies are over 25 years old and were limited in scope. Congress captured many of the benefits identified in our studies in the legislative changes to daylight saving time enacted in 1986. There have been dramatic changes in lifestyle and commerce since we completed our studies that raise serious questions about extrapolating conclusions from our studies into today’s world.”
- Linda Lawson, DoT

DST
Eh… nope
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2001 – California energy crisis
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State studies potential benefits of DST
”Our report indicated that if we [extended] daylight saving time through all of March, there would be a decline of electricity use at peak hours of about 3.5 percent. However, overall electricity use would only decline about one half of a percent. You're basically shifting noncritical energy use to later in the day.”
- Claudia Chandler, Calif. Energy Commission

DST
Eh… nope
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Objections to the Markey/Upton proposal…
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National PTA
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United States Conference of Bishops
Jewish groups
Air Transport Association
Private utilities
Groups representing Oracle and Yahoo!
Dairy farmers
NASA
Others…

DST
Outcome
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Markey/Upton amendment reduced by one month and passed
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Implementation contingent upon DoE study
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Set to kick in no earlier than March 2007
Benefits still murky

DST
Our Verdict
We are
any further extension of DST, unless it is proven that such an extension would provide substantial energy savings and determined that those benefits would outweigh any costs.

National Security
Proposals
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Key Points
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Use technology to improve conservation and efficiency
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Energy Star
Increase domestic energy production in environmentally responsible ways
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ANWR drilling
Clean Coal Program
Expanding nuclear power

National Security
Proposals
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Diversify the nation’s energy supply
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Stimulate development of renewable fuels via tax credits
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Hydrogen, ethanol, biodiesel
Modernize the domestic energy infrastructure
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Repeal hindrances to investment
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Encouraging development of new infrastructure, incl. superconducting power lines

National Security
Proposals

Key Points
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Short-Term
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Release of oil from strategic reserves
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Work with OPEC to increase supply
FTC investigation of market manipulation
Long-Term
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Development of alternative energies
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Improve fuel economy standards
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27.5 mpg across the board
Increase conservation efforts

National Security
Proposals
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H.R. 2730
The United States-Israel Energy Cooperation Act
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Establishment of an international grant fund for R&D of reliable energy sources
‘Findings’ include
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The United States’ dependency on “nations that do not share the interests and values of the
United States”
DoE projections that see dependence increasing by 33% over next twenty years
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45 cosponsors

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The big 5--Exxon Mobil, BP Amoco, Royal
Dutch Shell, Chevron, and ConocoPhillips--
$33 BILLION third quarter profits: price gouging?
Windfall Profits Rebate Act: 3-year, 50% tax on profits on oil sold at above $40 a barrel, with exemption for development/exploration
Revenue to be returned to consumers in a rebate check for taxpayers

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YES, implement a tax—be it on profits or a gasoline tax at the pumps (forcing oil companies to lower prices and thus reduce profits that way)
Higher prices will curtail demand and reduce shortage
BUT, do not return the revenue and increase consumption: invest in alternative fuels

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Created in 1997
156 member nations
The protocol is an agreement to bring greenhouse gas emission levels down to levels relative to those in 1990

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Encourages the world to work towards a goal that will benefit us all
Has goals that would significantly affect the environment in a positive manner

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Lack of power to make nations comply
Weak on developing nations
Goals may not be attainable

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Similar to the proposal made by the
National Commission on Energy Policy
Puts a price on polluting

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Companies are rewarded for using energy more efficiently
Companies are encouraged to do more research of alternate energies
If successful, will have a positive impact on the environment
Helps bring about the goals of Kyoto

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Too many allowances are being issued
EU-ETS system only covers 40% of carbon dioxide emissions
Some companies feel that they are at a competitive disadvantage

International Cooperation

Int’l Cooperation
Background

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Cold War

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Solidifying relationships with allied countries
Presenting opportunities for stability and cooperation with “adversaries”
Post Cold-War

Developing the United States’ economic competitiveness by granting U.S. scientists access to foreign research

Vital for the solution of such large-scale contemporary problems as AIDS, global climate change and the proliferation of nuclear materials.

Int’l Cooperation
Background
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Augments shrinking public research budgets by leveraging publicly funded research through information sharing and technology cooperation

Int’l Cooperation
Support
“The United States will pursue international cooperation to affect a more rapid, coordinated advance for this technology that could lead to the elimination of air pollutants and a significant reduction of greenhouse gas emissions in the transportation sector worldwide.”
(2003 State of the Union Address)

Int’l Cooperation
Support
“Despite [large-scale domestic efforts and initiatives], our administration knows that such steps, though important, are not enough. It is critical that we collaborate with you on an international basis to address challenges that face all of us in the 21st century.”
(IAEA Conference, April 2003)