Transcripts

President Bush Taps on Congress For Alternative Energy Ideas

PAUL KANGAS: President Bush turned his attention again today to the issue of energy security. The president called on Congress to pass a comprehensive energy bill to wean the nation from its addiction to foreign oil. But as Stephanie Dhue reports, energy analysts are skeptical that will happen.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: President Bush spoke today with business leaders who support increasing fuel economy standards and increasing domestic oil production.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This administration is committed as well to diversifying away from our reliance upon oil and I believe, like they believe, that we've got some fantastic opportunities to use new technologies to secure the American people and at the same time be better stewards of the environment.

DHUE: But critics say while the president has talked a lot about a comprehensive energy strategy, his policies have been mostly symbolic gestures. Bill Prindle of the Council for an Energy Efficient Economy says the president's advanced energy initiative unveiled last year is a case in point.

BILL PRINDLE, EXECUTIVE DIRECTOR, AMERICAN COUNCIL FOR AN ENERGY EFFICIENT ECONOMY: The money was taken from existing programs on energy efficiency, so while some more money went into bio mass and solar and wind, the money came out of some other accounts and so there really wasn't a net new commitment to clean energy.

DHUE: Clean energy producers rely on tax credits to support their business models, but those tax breaks have been on and off in the last six years. For example, the wind industry wants its tax credit extended to 10 years, but as it stands those tax breaks expire after two years. Energy consultant Peter Fox Penner says the gap between political rhetoric and policy makes for a difficult investment climate.

PETER FOX PENNER, ENERGY CONSULTANT, THE BRATTLE GROUP: One of the reasons why we need a strong and stable energy strategy is so that investors can make investments over the long term and have confidence that they are going to pay off.

DHUE: With energy security high on the agenda of both the president and Congress, proposals to extend renewable energy tax credits and boost bio fuels may have enough support to pass. But analysts say comprehensive energy legislation will be mostly talk until after the 2008 presidential election. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.