Sen. Lugar Offers New Energy Legislation without Cap-and-Trade

Date: March 30, 2010

Source: U.S. Sen. Richard Lugar

Sen. Richard Lugar (R-IN) announced that he is developing an energy plan intended to meet climate improving goals, notably without cap-and-trade, by conserving energy and saving money. Instead, Lugar said his plan focuses on energy conservation, which would help Americans save money, maintain global technological competitiveness and reduce US dependence on foreign oil, at no cost to GDP growth and with no net job losses. Lugar said his plan would establish a national building performance standard; create incentive programs, such as low-interest loans, for retrofitting homes and commercial buildings; establish a national mandate for the use of cleaner energy sources that sets guidelines but gives states flexibility; and enhance fiscally-responsible federal supports, such as loan guarantees.

PRESS RELEASE:

Lugar releases practical energy plan

Tuesday, March 30, 2010

In a letter to fellow Members of Congress, U.S. Sen. Dick Lugar has released a draft outline of his practical energy and climate plan. Lugar also wrote to President Obama and Secretary of Energy Steven Chu.

The Lugar plan would:

  • save consumers and businesses money

  • cut foreign oil needs by two-thirds

  • reduce carbon emissions by 25 percent

  • not pick winners and losers while encouraging U.S. energy to be diverse and clean

  • not have a bidding contest among special interests over allowances and allocations

A full copy of the draft outline is available at: lugar.senate.gov/energy/legislation/pdf/PracticalEnergyPlan.pdf.

Below is the text of Lugar's letter that was sent Friday, March 26 to 32 Senators:

Dear Colleague:

As you know, I have long been concerned about America's energy security, in particular our over-reliance on foreign oil.

Without aggressive action to decrease our long-term energy dependence on foreign sources, we are risking economic and security disasters, as well as even more severe trade imbalances and costs for consumers.

When I talk with constituents about the economic opportunities of new energy technologies, they become truly excited about the prospects of the future. Yet they also are concerned about the costs involved.

In recent months, I have examined policy approaches to the energy and climate issue that will be clearer, more practical and focused on results: helping Americans save money while cutting our foreign oil need and boosting energy security. I have assembled a draft legislative outline, many provisions of which build off the important work of individual Members of Congress and Committees.

I write to share my findings with you and other colleagues who have expressed particular interest in these issues. By focusing on policies that reduce foreign oil need, target achievable energy efficiency, and boost diversity in domestic cleaner power generation, the enclosed plan would generate the following savings by 2030, according to preliminary analysis:

  • Foreign oil dependence would be cut by two-thirds;

  • National energy consumption would fall by 14%;

  • Average household electric bills would be reduced by 10%; and

  • Greenhouse gas emissions would be cut by 25%, or about two billion metric tons.

There will be some budgetary costs to this proposal, but the plan is deliberately constructed to minimize fiscal impact as we pursue future savings by focusing on the national security and economic imperative of reducing our energy vulnerability, and create jobs and economic growth.

Several colleagues have diligently worked on proposals centering on cap and trade. No matter your position on such proposals, I believe that we can have broad bipartisan agreement on the stream-lined plan I share with you today. In fact, initial analysis of my plan indicates its implementation would accomplish half of the President's 2020 greenhouse gas emissions goal, thus reducing the carbon-reduction burden of future climate proposals.

I am hopeful that the proposal will be a useful contribution to forthcoming energy and climate debates, and I value your feedback.

Sincerely,
Richard G. Lugar
United States Senator

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