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Our current economic situation is unique. In 1977, we inherited a severe recession from the Republicans. The Democratic Administration and the Democratic Congress acted quickly to reduce the unacceptably high levels of unemployment and to stimulate the economy. And we succeeded. We recovered from that deep recession and our economy was strengthened and revitalized. As that fight was won, the enormous increases in foreign oil prices—120 percent last year—and declining productivity fueled an inflationary spiral that also had to be fought. The Democrats did that, and inflation has begun
Energy—Our dependence on foreign off has decreased—in 1977 we imported 8.8 million barrels of oil per day, and our nation is now importing approximately 6.5 million per day, a decline of 26 percent.
Our citizens see their family budgets stretched to the breaking point by an explosion of energy costs, while the profits of oil companies multiply to record levels. Last year’s 120 percent increase in energy prices by OPEC led to a drastic decrease in the ability of needy families to pay for other necessities of life. The recently enacted low income energy assistance legislation is helping, but it is providing only $1 of help for every $4 in increased costs that have been imposed upon the poor.
Incentives for energy conservation by residents, business and industry in urban areas including incentives to convert oil facilities to coal and the construction of new coal-fired replacement plants;
For the past four years, the Democratic Party’s highest legislative priority has been the development of our nation’s first comprehensive energy policy. Our actions were necessitated by the Republican Administration’s policy that fostered dependence on foreign oil. This Republican legacy led to America’s petroleum paralysis, which weakened our security, undermined our strength abroad, threatened our environment and endangered our economic health.
In perhaps no other domestic area did we inherit such a dangerous situation:
—Domestic production of oil and natural gas was steadily declining, with price controls discouraging exploration and production;
—Natural gas shortages were regularly plaguing parts of our country;
—Our dependence on foreign oil was increasing every year;
—Wasteful energy practices existed in our industries, homes and transportation;
—Solar and other renewable energy resources were being almost completely ignored;
—Synthetic fuel production had been stalled;
—The federal government was not promoting energy conservation;
—Our allies were unwilling to make adequate efforts to reduce their energy consumption; and
—Our energy policy was being made by nearly a dozen different agencies and bureaus throughout the federal government.
The struggle to develop an energy policy was difficult and time-consuming. Tough decisions, especially in the area of oil price decontrol, were necessary to reduce our dependence of foreign oil.
Not all of our energy problems have been solved. Yet the achievements of the past four years leave little doubt that we are finally serious about the problems caused by our excessive reliance on foreign oil. As a result of our national energy policy, oil imports will be cut in half by the end of this decade, saving our nation hundreds of billions of dollars. A framework is now in place that will permit further progress in the 1980s. Our economic security demands that we drastically reduce the massive flow of dollars into the OPEC treasuries and oil company bank accounts at the expense of American consumers and business.
Our progress on energy has been realized because we have achieved four principal goals:
—Incentives have been provided for the production of new energy sources;
—Incentives for new oil production have been added, together with a windfall profits tax, which will fund low income energy assistance and energy research and development;
—Incentives have been provided to encourage conservation of our existing energy resources; and
—Improved international energy cooperation has reduced our dependence on OPEC.
These actions have produced enormous energy benefits to our nation:
—We are importing one million barrels of oil a day less than last year;
—Domestic natural gas exploration and production are at record-high levels;
Domestic oil exploration is at a 20-year high, and the decline in domestic production has been averted;
—Per capita energy consumption is decreasing;
—Use of solar energy has increased considerably, and gasohol production has increased by 600 percent;
—Coal production has increased, and foreign markets for our coal have been developed;
—Gasoline consumption is 8 percent less than last year.
In the 1980s, this program can be improved, as the framework laid in the last four years is used to ensure our energy security for all time.
America’s energy future requires a continued strong national policy based on two fundamental principles: efficient use of energy that will conserve our resources, preserve our economy and create jobs for Americans; and development of secure, environmentally safe and reasonably priced energy sources.
It is—and must be—the goal of the Democratic Party to mobilize this nation to use energy efficiently without asking Americans to suffer the loss of our strong economy and hard-earned standard of living. Energy efficiency, especially in buildings, transportation, and industrial production, must be made this nation’s top priority.
The following specific actions must be taken.
We must make energy conservation our highest priority, not only to reduce our dependence on foreign oil, but also to guarantee that our children and grandchildren have an adequate supply of energy. If we can convince one of every four drivers exceeding the 55 mile per hour speed limit to reduce their speed, we can save 100,000 barrels a day. Conservation is the cheapest form of energy production.
We must establish a massive residential energy conservation grant program. We must provide subsidized loans, direct financial assistance, and other substantial incentives to make all residences in the United States energy efficient, through upgraded insulation, heating, cooling and waterheating. Special incentives should he afforded for the use of renewable energy resources such as passive and active solar energy systems. Our goal should be to ensure that all economically justified energy efficiency investments are made by 1990.
We should use our energy programs to aid in rebuilding the industrial heartland. Industry must be given financial incentives to improve the energy efficiency of industrial processes and to build substantial amounts of generating capacity through co-generation.
We must implement mandatory Building Energy Performance Standards (BEPS) to encourage the design and construction of energy efficient buildings. Energy efficiency standards should apply to all new construction. Implementation of energy efficiency standards should begin with federal government buildings. In addition, the federal government should lead the way in implementing solar and energy efficiency improvements programs through its loan and insurance agencies by requiring energy conservation standards for federally assisted properties.
In recognition of the potential for substantial energy savings if our most efficient methods of transportation are utilized, we must provide direct economic assistance where private capital is unavailable to improve those means of transport.
Major new efforts must be launched to develop synthetic and alternative renewable energy sources. In pursuing a strong program of synthetic fuel plants we must also be sensitive to environmental and water concerns. The federal government must help eliminate red tape involved in the construction of vital energy facilities. The Energy Mobilization Board, an essential mechanism to speed the construction of vital energy facilities, should be able to override state and local substantive law only with the consent of Congress and the President.
The Democratic Party regards coal as our nation’s greatest energy resource. It must play a decisive role in America’s energy future. We must increase our use of coal. To accomplish this, we must see that shippers are not overburdened with excessive rates for transportation. Severance taxes levied for depletion of natural resources should be equitable. We must make clean coal conversion a reality. To this end, we will assist utilities that are large enough to permit coal conversion while maintaining or improving air quality. We must also provide incentives for industrial boiler coal conversion. Goal conversion can and must be accomplished in a manner that protects public health, nationally, regionally and locally. It can and must increase the use of coal, reduce the demand for oil, and provide employment where jobs are needed the most.
The federal government should accept its responsibility as trustee for the American Indian and Alaska Native tribes to ensure that tribal resources develop at a pace that preserves the existing life-style and that the tribes participate in the contracting process for resource development with full knowledge of the environmental tradeoffs. The federal government must continue to cooperate with tribal governments in such matters as changes in the use of sacred and religious areas. The Democratic Party believes that American Indian and Alaska Native reservations should remain the permanent homeland for these peoples.
We recognize that Hawaii, U.S. territories and Trust territories in the Pacific Basin are particularly vulnerable because of their total dependence on imported oil for meeting their energy needs. These insular areas do not have access to the alternative sources of energy that are available elsewhere. Consequently, the Democratic Party recommends that these areas, where feasible, be chosen as sites for demonstrationand/or pilot alternative energy projects, especially ocean thermal energy conversion, solar and wind.
We must lead the Western World in developing a program for increased use of coal in Europe, Japan, and the developing nations.
Oil exploration on federal lands must be accelerated, consistent with environmental protections.
Offshore energy leasing and development should be conditioned on full protection of the environment and marine resources. Lease sales should proceed only after appropriate safeguards necessary to preserve and protect vital natural resources are put in place. The determination of what safeguards are needed must be based on a complete assessment of the effects of offshore activity on the marine and coastal environment, and must be made in conjunction with the Environmental Protection Agency and the National Oceanic and Atmospheric Agency, the federal agencies charged with protecting our nation’s fisheries and other environmental resources.
Solar energy use must be increased, and strong efforts, including continued financial support, must be undertaken to make certain that we achieve the goal of having solar energy account for 20 percent of our total energy by the year 2000.
To ensure that we reach the 20 percent goal, the Democratic Party commits itself to a federal program for solar or other renewable resources that exceeds the federal commitment to synthetic fuels. A greater share of federal funds should be committed to basic research and must be devoted to the development of renewable energy resources and fusion research and development. Moreover, we support the commercialization of solar, wind, low-head hydro, biomass and other renewable resources as quickly as possible through direct assistance, investment and loan guarantees in addition to monies available from the solar bank. The Democratic Party vigorously supports substantial funding for the construction of an engineering test facility for fusion technology. Fusion energy is a safe, clean alternative source of energy which can be used to generate electricity efficiently.
We must encourage research and development of hydrogen or electric powered vehicles. We must fully commit ourselves to an alcohol fuel program. The federal government should expand its use of alcohol fuels in government and military vehicles. This will help reduce surplus feed grain and help to stabilize prices. The Democratic Party pledges that production of fuel-grade alcohol will be increased until at least a target of 500 million barrels of ethanol by 1981 is achieved.
A stand-by gasoline rationing plan must be adopted for use in the event of a serious energy supply interruption. In times of supply interruption, rationing is essential for equitable and prompt distribution of gas to the public. The Strategic Petroleum Reserve should be filled as market conditions permit, consistent with the requirements of existing law.
We must impose a moratorium on the acquisition of competing coal companies and solar energy companies by major oil companies.
Legislation must be enacted to prohibit purchases by oil companies of energy or non-energy companies unless the purchase would enhance competition.
The major oil companies must be responsible and accountable in their production, importation and distribution of fossil fuels. Oil is as basic to our economy, defense, and general welfare as electric power and money. Consequently, the oil companies must be invested with public purpose. To accomplish this objective, we support strengthened leasing regulations, reporting requirements and monitoring by the departments of Energy and Justice.
Thorough investigations of the compliance of the off companies with energy price laws and regulations must be continued, and tough penalties imposed in the event of non-compliance. The Department of Energy, consistent with the law, should share its energy data with the Department of Justice and the Federal Trade Commission.
We must make conservation and renewable energy our nation’s energy priorities for the future. Through the federal government’s commitment to renewable energy sources and energy efficiency, and as alternative fuels become available in the future, we will retire nuclear power plants in an orderly manner.
We must give the highest priority to dealing with the nuclear waste disposal problem. Current efforts to develop a safe, environmentally sound nuclear waste disposal plan must be continued and intensified.
The NRC shall issue no licenses or permits for new nuclear plants until the Kemeny Commission recommendations are fully implemented.
Existing plants must be required to meet the safer recommendations of the Kemeny Commission. The Democratic Party supports prompt implementation of their recommendations. No plant unable to meet these standards can be allowed to operate.
Safe permanent disposal of all high-level radioactive waste and transuranic waste should be the primary responsibility of the federal government, in consultation and concurrence with state, local, tribal, and territorial governments throughout the entire decision-making process, including the actual siting and operation of repositories. Neither the federal government nor the state or tribal or territorial governments should be permitted to act in a manner that forces an unsafe resolution of this problem or prevents a safe resolution from being accomplished. It is, therefore, essential that state and tribal governments, acting according to their constitutional processes, have the power to reject unsafe sites within their borders. Clear standards should be developed so that the courts may determine whether the federal government or a state or tribe is acting in an arbitrary manner. Every state should be responsible for the management and disposal of all low-level waste generated by non-defense sources within its boundaries. Where appropriate, this responsibility should be exercised through state regional compacts. There should be more federal funding for research and development of safer, more efficient methods of radioactive waste disposal.
Funds generated by the Windfall Profits Tax must be used to expand mass transit. Federal assistance should be provided for construction and operation costs.
