What to expect for the State of the Union. More biofuels, but not much more.
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January 23, 2007

What to expect for the State of the Union. More biofuels, but not much more.

From today's St Petersburg Times:

By DAVID ADAMS, Times Latin America Correspondent
Published January 23, 2007


Ethanol_7_1White House aides say President Bush will make a major announcement on America's energy policy in his State of the Union address tonight.

But it's unlikely to satisfy growing public concern over global climate change or rising corporate calls for federal action on carbon dioxide and other "greenhouse gas" emissions, experts say.

Instead of announcing new energy initiatives, Bush is expected to renew the warning he made last year about America's "addiction to foreign oil."

Focusing on the need to address "energy independence," aides say, Bush will call for increased production of domestic biofuels for blending with gasoline and diesel. He is also likely to highlight the need for more research on electric-hybrid vehicles, as well as "clean coal" technology and nuclear energy.

Energy policy thrust itself into the political forefront after America's coastline was battered by severe weather in 2005, followed by a sharp increase in fuel costs.

While the price of oil has dropped back to around $50 a barrel in recent weeks, energy experts, industry executives and even some Republican leaders say the government needs to take more drastic action to prepare the country for a radical crunch over future energy demand and supply.

On the eve of the president's speech, the chief executives of 20 major corporations urged Bush on Monday to support major mandatory reductions in climate-changing pollution.

"We can and must take prompt action to establish a coordinated, economy-wide market-driven approach to climate protection," the executives wrote in a letter to the president. Calling themselves the U.S Climate Action Partnership, the group includes the heads of B.P. America Inc, Dupont Co. and General Electric Co., as well as four power utilities.

"This is hugely significant," said Carol Werner, director of the Environmental and Energy Study Institute in Washington, D.C.. "These are big utilities. That should really send a big signal."

Bush has in the past rejected mandatory controls on carbon dioxide and other "greenhouse gas" emissions, preferring voluntary private sector efforts.

"It must be mandatory," said Jim Rogers, chairman of Duke Energy. "The science of global warming is clear. We know enough to act now. We must act now."

The president's defenders say the Bush administration has done more to promote energy solutions than meets the eye, but has done a poor job explaining it.

"There really has been significant progress," said Jerry Paul, an energy consultant in Tallahassee and former Department of Energy official in the Bush administration. "More resources have been put into renewable energy than any previous president."

But critics say Bush administration funding for alternative energy often comes at the expense of other renewable programs.

Lately, the White House and Republican leaders appear divided over how to address energy policy. The newly elected Republican party chairman, Florida Sen. Mel Martinez, has opposed offshore oil drilling and is also a strong supporter of ethanol, as is former Gov. Jeb Bush.

Story6e52f85f45dfdaca5e1867437f270c64_16_1At his own State of the State speech this month, California Gov. Arnold Schwarzenegger announced a plan to reduce the carbon content in the state's fuel.

"One area where we definitely need the climate to change is the national government's attitude toward global warming," he added.

Alternative energy advocates welcome the likely boost to biofuels. Florida sees itself as a big potential biofuels winner due to its agriculture and climate.

In 2005, Congress set a biofuels production goal, known as the Renewable Fuel Standard, of 7.5-million gallons by 2012. Ethanol and biodiesel producers are expected to meet the target, but experts say support is still required if biofuels are to make significant inroads into gasoline.

Aides says the president will extend the goal to 60-million gallons by 2030.

"That's nice," said Reid Detchon, director of the Energy Future Coalition in Washington. "But if that's all there is then there's nothing there." Information from the Associated Press was used in this report.

[Last modified January 23, 2007, 01:31:55]

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