Fuels

Dems Offer Energy Plan

Would require altfuel pumps at 10% of U.S. gas stations by 2015

WASHINGTON -- U.S. Senate Democrats on Wednesday offered a plan to cut U.S. oil import dependence 40% by 2020 by requiring more use of alternative motor vehicle fuels like ethanol, said Reuters.

About a dozen Democrats touted their new "Clean EDGE Act of 2006" at a Capitol Hill news conference, less than a month after U.S. Senate Republicans withdrew their plan to counteract high gasoline prices by giving $100 checks to U.S. taxpayers.

Lawmakers, including the Democratic leader Harry Reid (D-Nev.) and No. 2 Democrat Dick Durbin ([image-nocss] D-Ill.), later posed in front of hybrid vehicles in a nearby park to tout the need for a new breed of flex-fuel vehicles (FFVs) that can burn gasoline blended with ethanol.

Democrats want to cut U.S. petroleum use by six million barrels per day (bpd) by 2020an amount equal to about 40% of projected imports. That would be a faster cut than envisioned by the Bush administration, which has said it wants to slash U.S. oil use by five million bpd by 2025, also through the use of gasoline blended with ethanol.

Democratic legislation would require 25% of cars sold in the United States be capable of burning alternate fuels like ethanol-blended gasoline by 2010, rising to 50% by 2020.

The bill avoided the controversial issue of boosting the mileage fuel requirements of the U.S. vehicle fleet. That idea is divisive for Republicans and Democrats alike, drawing opposition from lawmakers with vehicle-making plants in their districts.

The plan also would require alternate fuel pumps to be installed at 10% of U.S. gas stations by 2015, and mandate that major oil companies install the pump at stations they own.

With high pump prices a prominent theme ahead of November's midterm elections, both parties are positioning themselves as crusaders for cheaper gasoline for U.S. consumers. Democrats are looking to lay the blame squarely on Republicans and vice versa.

"It has taken years of failed policies to get us to the present crisis," said Reid. "Fortunately, Democrats have a comprehensive solution."

Republicans say Democrats have blocked many energy expansion projects that might have translated to more domestic oil supplies, including drilling in the Arctic National Wildlife Refuge in Alaska. "It's disingenuous for Senate Democrats...to tout the need for alternative domestic sources of energy, only for these same Democrats to race home this weekend to their respective states and protest many of these very projects," said Sen. James Inhofe (R-Okla.).

The Natural Resources Defense Council, an environmental group, applauded the plan because it "recognizes that a clean path is the best way to end America's oil addiction." However, the NRDC said it was concerned about a provision of the bill that encourages more production of fuel from coal, saying other alternatives would emit less heat-trapping emissions linked to global warming.

The American Petroleum Institute (API) issued the following statement regarding the Senate Democrats' energy initiative: The proposals offered today reflect a fundamental lack of understanding of the markets, would hinder the oil and natural gas industry's ability to do its job, and would increasenot decreaseconsumers' energy costs and price volatility. The underlying cause of our nation's energy situation is the imbalance brought on by supply being outpaced by the rapid increase in worldwide demand. Congress can best address this imbalance by removing impediments to bringing more supply to market. At a minimum, Congress should avoid actions that erect roadblocks to increased supplies.

Click here to view the Democrats' letter to President Bush and fact sheet on their new energy legislation.

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