Lugar Drafting Practical Energy Plan

Press Release

Lugar Drafting Practical Energy Plan

U.S. Sen. Dick Lugar said today that he is drafting a practical energy plan that would meet many climate improving goals, without cap and trade, by conserving energy and saving people, businesses and government money. Lugar is among the senators meeting with President Obama on energy and climate this afternoon at the White House.

"I am proposing practical steps that save money and that everybody can support. Threats to our economy and security are of paramount importance. We can best face these threats by reducing our dangerous dependence on foreign oil and creating U.S. jobs in new energy and conservation efforts," Lugar said.

"We should develop a consensus with fiscal prudence in mind. Currently, rhetoric and legislation are focused primarily at climate change while most Americans are more interested in oil reductions and economic impacts. We should concentrate this year on those policies that will save energy and money. Such a bill can bring large and measurable carbon reductions by reducing energy usage and foreign oil dependency," Lugar said.

"I would also urge the administration to move more quickly on programs already authorized by Congress. For example, Indiana electric car companies have been waiting more than a year to hear about their loan guarantee applications."

Lugar's practical Energy and Climate Plan would address the diversity of threats (national security, economic, and environmental) posed by our current energy situation, rather than focusing primarily on climate.

The plan focuses on the cheapest energy savings first -- those that will save Americans money and will have minimal fiscal government impact -- and it does not attempt to solve everything in a single comprehensive piece of legislation.

Goals:

* Reduce foreign oil dependence
* Save Americans money on their energy bills
* Improve competitiveness
* Diversify and clean-up power sources

Policy outline:

1. Capturing Energy Efficiency

o National building performance standard -- long-term building codes with continuing improvement guidelines for new residential and commercial construction
o Incentive programs, such as low-interest loans, for retrofits of homes and commercial buildings
o Strong energy standards for appliances and lighting

2. Diverse and cleaner electricity sector

o Clean Energy Standard -- a national mandate for the use of cleaner energy sources that sets guidelines but gives states flexibility, allowing diverse cleaner sources: renewable, nuclear and clean coal with carbon capture & storage
o Enhanced fiscally-responsible federal supports, such as loan guarantees
o Early retirement program for the dirtiest coal plants

3. Reducing foreign oil dependence
1. Long-term, automatically strengthening CAFE standards for cars and trucks (similar to Obama-Lugar legislation from 2006: http://lugar.senate.gov/press/record.cfm?id=313166)
2. Full implementation of current 36 billion gallon renewable fuels standard
3. Enhanced domestic oil production (including outer continental shelf) as transition

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