Thank you, Tom.

 

Thank you all for being here today, as we unveil a transition plan that addresses one of the most important issues of our time: our nation’s energy future.

 

Over the past year, there has been much debate and discussion about energy – both here in Washington and out on the campaign trail. But there’s an old saying that “when all is said and done; a lot gets said, and not a lot gets done.” Our nation can no longer afford for that to be true on the energy front—1973, our first “wake-up call” was a longtime ago.  

 

We are in a race against the clock to change our energy future and complacency is not our friend. Here at the Institute, we’re working hard and fast to provide a new path for our country. We intend to propose new and comprehensive solutions to the President-elect, and the 111^th Congress, and, more importantly, to the public.

 

I am, by nature, an optimist. And the good news is the American public understands the complex energy challenges facing our country. Simply put, they demand a new energy future. But even the optimists among us must concede that we are, at present, poorly positioned to meet our energy challenges. There are several reasons for this: 

 

First, our energy demand is growing – both here and abroad. Global demand for energy will increase by more than 50 percent between now and 2030, and by as much as 30 percent here in the United States. Developing nations must be helped to solve their energy needs as well.

 

Second, over the past 40 years, our energy marketplace has been marked by boom-and-bust cycles that show no sign of stabilizing. Consider that over the past year, oil prices have increased from $70 per barrel, to nearly $150 per barrel, before retreating again to less than $70 per barrel. And we can be certain that these oil prices will rise again.

 

Finally, we must admit that, nationally, we have had short-sighted energy policies that have left us ill-prepared for the 21^st century. 

 

We have placed off-limits up to 85 percent of our nation’s oil and gas reserves. 

 

We have failed to invest enough in groundbreaking technologies like biofuels, clean coal, solar and wind. 

 

We have become too dependent on foreign sources of energy. The enormous transfer of wealth as a result of our dependency has become a national security issue. 

 

Finally, we have failed to modernize and replace key parts of our energy infrastructure, leaving our entire system vulnerable and ill prepared to meet the demands of our certain future.

 

Our present situation may be dire, but it is not too late to secure America’s energy future. There are reasons for optimism. 

 

At the Institute, we have committed ourselves to not only shine a spotlight on the urgency for energy reform, but to light a path that shows us how to get there.

 

Consistent with that goal, this past July, we released an Open Letter to the next President and Congress, signed by 27 influential national leaders. The letter contained 13 fundamental energy pillars upon which any new energy strategy should be based.

 

In September, we unveiled our Blueprint for Securing America’s Energy Future. This Blueprint expanded on the 13 pillars, and built specific recommendations around each one. 

 

Today, we unveil our Transition Plan, a detailed document that lays out the goals, policies, and timetables that the next Administration, Congressional leaders, governors, as well as the private sector, could—and we believe should, follow to give our nation the energy reforms that are absolutely essential.

 

So that’s what our Transition Plan is, but now let me also tell you what it is not. It is not a plan that assumes the government has all the answers or solutions. Certainly, the government has a significant role to play in addressing our energy challenges, but this plan recognizes that the government cannot ... and should not ….. try to do it all in isolation. After all, we haven’t done much since 1973.

 

For our nation to implement a successful long-term energy strategy, government, at all levels, should do what it does best, and the private sector should be left to do what it does best. But the two will need to act in true partnership if we are to succeed.

 

The government will succeed if it works toward ensuring the development of as many energy options as possible for American consumers and businesses. For example, the federal government has an important role in supporting and incentivizing research into new and experimental technologies that might not otherwise draw interest from the private sector. The market will determine which sources of energy will best meet our needs.

 

The government will fail if it pursues short-term approaches that set things back, rather than move things forward. For example, punitive taxes or new overly burdensome regulations on distinct industries could serve to reduce domestic exploration, decrease research and development, and ultimately increase energy prices. We should avoid the negative impact of unintended consequences.   

 

Our Transition Plan identifies the areas where government can do the most good, and lays out the ‘what’, the ‘how’ and the ‘when’ of such policies.   This plan is constructive, actionable, achievable and measurable. I’ll briefly walk you through some of our key recommendations.

 

First, our plan wastes no time. We begin with proposals for the transition of government period, starting with recommendations for government organization to best address our energy challenges.

 

Under our government’s current structure, responsibility and oversight for energy policy spans at least 13 different federal agencies and regulatory commissions. As a result, our nation’s big picture energy goals often get lost in a tangle of interagency disputes. Process has supplanted results.

 

So during the transition, we suggest the creation of a new office within the Executive Office of the President. The leader of this office would be responsible for coordinating the implementation of all aspects of Federal energy policy, and would be represented on the National Economic Council and National Security Council. Energy must henceforth be considered a vital component of BOTH our economic and national security. There would be great value in streamlining the number of agencies who currently oversee our energy policies. 

 

Within the first 100 days of the next administration, we recommend that Congress and the President move quickly to repeal existing laws and move to permanently end the remaining moratoria on domestic energy production and exploration. Further, we suggest the expansion of leasing for oil and gas, providing states with a greater share of royalty revenue for onshore and offshore production. Furthermore, we recommend Congress immediately increase research and development spending on non-emitting energy sources, such as renewables and clean coal, putting their funding levels on a path to double within five years. Currently, the United States government is spending 50% less on energy R&D than during the 1970’s oil embargo. We spend less than 4 billion dollars a year on clean energy R&D, as compared to between 400 and 700 billion dollars on imported oil in 2008. 

 

We also propose reforming the biofuels tax credit to make it variable by linking it to the price of gasoline or diesel fuel as appropriate and to increase investments in alternative transportation fuels.

 

During the first six months of 2009, we propose that our newly elected leaders begin taking steps that will create a “renaissance” in nuclear power in the United States. This should include expanding the loan guarantee program so that it includes building a greater number of nuclear reactors, ensuring adequate funding for the Nuclear Regulatory Commission, and reaching a long-term solution for disposal of our nuclear waste, which should include domestic recycling. The current funding authorized by Congress will support, at best, two or three new projects, which is much too small to adequately accelerate a nuclear “renaissance”.

 

The plan also recommends establishing a fund managed by fossil-based utilities to support research and demonstration of carbon capture and storage technologies at private, academic, and government entities and creating a long-term R&D tax credit so that companies can plan their R&D activities with greater certainty.

 

By the end of next year, our plan calls for the enactment of a comprehensive energy bill. That legislation – at minimum – should address four basic energy principles: 

 

 

Our Transition Plan also makes many key recommendations for the long-term.

 

Within two years our government, as a matter of national policy, should foster the construction of smart-grid technology by implementing the relevant sections of the Energy Independence and Security Act. In that same time period, we should create a strategic reserve of low-enriched uranium to guard against possible supply disruptions.

 

Over the next four years, we recommend that our government work with our global partners to establish an International Clean Energy Fund at the World Bank.

 

These are just some examples of the specific proposals and detailed timelines that we have laid out in this plan.

 

Central to our entire plan is the belief that the United States doesn’t just need more government action, we need smart government action. So, as policymakers in Congress and in the Administration get to work on energy policy, we are asking them to keep a number of key questions in mind.

 

Questions about our goals – Such as how will we measure success of energy reform? Is it decreasing our dependence on foreign sources of energy? Is it lowering costs for consumers? Is it ensuring reliable sources of adequate, clean, and diverse energy supplies for the future?

 

Questions about costs – How much will these actions cost our nation, both the government and our people? Will they lower the costs of fuel and consumer goods? Will higher taxes generate adverse consequences in R&D, energy costs, and our economy?

 

Questions about the environment – How will our actions impact climate change and the environment? Are we investing in other sources, such as nuclear power and technologies for clean coal that will reduce our emissions of greenhouse gases?

 

These questions are but a point of departure in a debate, but they underscore the need for our political leaders to think carefully about the decisions they make on energy reform. It is important that our leadership move quickly. It is equally important that they move comprehensively. We need a long-term vision; short term “feel good” policies no longer are adequate.

 

With new leadership comes the opportunity and expectation that we will arrive at real and lasting change. Rightly, our political leaders will be held accountable for what gets done – and what doesn’t get done – from here on out where energy solutions are concerned.

 

Now that the work of campaigning is over, the work of governing must begin. Our plan and our Institute are committed to putting the best ideas forward for the good of our country and our economy. If adopted, we believe that the Institute’s comprehensive and long-term plan can put the United States on a path to a secure, prosperous, diverse, and clean energy future. It will create new jobs, new industries, new American technology, and new American energy. We stand ready to support and assist the new Administration, Congress, state governments, and the private sector to provide the American people with the energy policies they need and deserve.

 

We are planning a number of activities in 2009 to not only highlight the urgency and magnitude of the energy problems we face, but to also encourage other similar efforts and studies to join together to identify the critical path we all agree the nation must follow in order to achieve our goals. 

 

We propose a series of public and private sector events, to include the international community, with special outreach to our Canadian friends with whom our energy future is so closely linked. The purpose of such events will be to better inform and educate with regard to the work and potential within each sector of our energy spectrum. 

 

Such a dialogue will not only “show” what we must do to fix our energy problems, but will also “tell” the story of how we will provide for the energy requirements of future generations.

 

Thank you very much.