Bush Backs Broad Energy Agenda

Planning for the future, President Bush is pushing a broad set of measures to grow energy supplies and constrain demand:

Officials said Mr Bush would set out his vision for tackling the “root causes of today’s high price environment” through increased domestic energy production and processing, and use of technology to develop renewable energy sources and promote energy efficiency.

In the most novel proposal contained in Mr Bush’s speech, officials said he would call for the construction of new oil refineries on former military bases, creating new jobs in communities hit by base closures while also easing the country’s acute shortage of refining capacity.

No new oil refineries have been built in the US since 1976 and existing facilities are struggling to cope with demand.

Officials said Mr Bush would also call on Congress to remove barriers to new liquefied natural gas terminals by giving federal authorities the power to override opposition to the facilities from states. The US needs more than the existing four terminals to handle surging imports of LNG.

Mr Bush was also expected to call for Congress to extend tax benefits for fuel-efficient cars to include “clean diesel” vehicles, in addition to the hybrid and fuel-cell vehicles which are already included. The incentive would be worth $2.5bn over 10 years, according to White House officials.

The combination of tax breaks for “green” cars with expansion of nuclear power and traditional fossil fuel supplies shows how Mr Bush is seeking to strike a balance between competing calls for increased energy capacity and energy conservation.