The officials, who spoke on condition of anonymity, said the
president will outline his proposals in a speech Wednesday in which
he intends to emphasize how new technologies can be used to ease the
energy supply crunch.
The White House acknowledged that none of the initiatives was
expected to provide any short-term relief from soaring gasoline and
oil prices. It is Bush's second speech on energy within a week,
reflecting the growing concern within the White House over the
political fallout over high energy prices.
The officials said the president believes the country needs a
diverse supply of energy, including expansion of aggressive nuclear
power. There has not been a new commercial nuclear reactor ordered
in the United States since 1973.
Some utilities have indicated they may be interested in building
a new reactor, perhaps as early as 2010, but industry officials say
they need assurance of a smooth regulatory process to get financing.
Nuclear power accounts for about 20 percent of the country's
electricity.
Bush will call on the Energy Department to develop a proposal for
a federal "risk insurance" plan that would kick in if there were
lengthy delays in licensing of a new commercial power reactor. The
officials acknowledged that such a program would need congressional
action. They said they could not speculate on its cost.
The president also will outline a proposal to work with local
communities to build refineries on closed military sites, hoping
that will encourage construction of new refineries and ease the
shortage of U.S. oil refining capacity.
There has not been a new refinery built in the United States in
nearly three decades, although numerous refineries have been
expanded to increase capacity. A shortage of U.S. refining capacity
has been cited — including this week by Saudi Arabia's Crown Prince
Abdulla at a meeting with Bush at his Texas ranch — for high
gasoline prices.
The president also will call on Congress to provide a tax credit
for gas-electric hybrid automobiles and for use of clean diesel. The
hybrid tax break was included in Bush's budget earlier this year but
left out of the energy bill passed by the House last week.
Such a credit would provide $2.5 billion in tax incentives over
10 years, the White House officials said. Consumers would get a
credit, up to $4,000, depending on the level of a vehicle's fuel
efficiency, if they purchase a hybrid or clean-diesel vehicle.
The president's speech was described by White House officials as
a way to emphasize how technology can be applied to expand the
supply of energy. While the proposals include some new initiatives
such as the ones to spur the expansion of nuclear power and refinery
capacity, others have been proposed previously or already widely
debated in Congress.
Bush will announce his support for giving the federal government
clear authority in the siting of liquefied natural gas import
terminals. Such a provision is included in the energy bill passed by
the House last week. Some lawmakers strongly opposed the measure,
arguing it will deprive states and local community a say in LNG
facility siting at a time when a dozen or more such facilities may
be built along the U.S. coast.
The critics say they fear that federal control over locating LNG
import terminals will lead to facilities being put in populated
areas where communities fear they are unsafe and might become
terrorist targets.
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