President Bush to Propose Building Oil Refineries at Closed Military Bases

President Bush will propose new initiatives to increase domestic energy production, including building oil refineries on abandoned military bases.

According to USA Today, the President's proposals were outlined in a conference call with reporters Tuesday night by three administration officials with direct knowledge of a speech Bush will deliver today to a Small Business Administration conference. The proposals include:

•Asking Congress to allow the Energy Department to provide federal risk insurance to companies that build nuclear-power plants. The insurance would compensate companies for delays resulting from problems meeting federal licensing regulations. It has been nearly a decade since a new nuclear plant opened in the USA.

•Instruct federal agencies to work with state and local governments to encourage construction of new oil refineries on former military sites. No refineries have been built in the USA in nearly 30 years.

•Ask Congress to clarify existing laws to ensure that the federal government has the final say in the locations of new liquefied natural gas terminals. Local governments and residents often object to having such facilities in their communities.

•Expand eligibility for a $2.5 billion, 10-year tax credit now available to producers of hybrid and hydrogen fuel-cell cars to vehicles that run on energy-efficient clean diesel fuel.

•Encourage more international cooperation in the development of more efficient energy technology and greater use of so-called clean coal and nuclear power.

A shortage of U.S. refining capacity is cited for high gasoline prices. Following Monday's meeting between President Bush and Saudi Crown Prince Abdullah, Saudi foreign policy adviser Adel al-Jubeir said high gas prices were partly the result of a lack of refining capacity in oil importing nations. The fact that the last refinery built in the U.S. was completed in 1976 and our continued dependence on foreign oil is evidence that for the last 30 years we haven't had the leadership necessary to adequately provide for our energy needs.

We are beginning to pay a price for that lack of leadership. This Bloomberg reports that the increasing cost of energy is slowing U.S. consumer spending. Gasoline is 23 percent higher than a year ago. Consumer confidence fell to a five-month low in April, the third straight month of decline, according to the Conference Board's index.

It's good to see President Bush willing to take on another seemingly unsolvable. Finally someone is willing to fill the leadership gap on energy issues. Without such leadership the nation's energy situation will not improve as the last 30 years have demonstrated

I hope the President's proposals make it through the Congress. Let's also include incentives for solar, wind, and other so-called "alternative" energy sources. The broader our approach the better the odds we will eventually improve our energy supply.

Comments

[Marc]

BTW, you've given me an idea for a post related to this and the closed bases. It may take a few hours of playing the Google game.

When I get it posted I'll send you a trackback.

[Marc]

I'm afraid the enviroweenies will be all over any of these purposals.

They are the ONLY reason new nuc plants or refineries haven't been built.

I find it odd his solution for using closed military bases for a couple reasons.

As part of the base closure/realaignment act it was agreed to give closed bases back to the local authorities. San Deigo's former Navy "boot camp" is an example. It this is passed in some form expect local authorities to scream right along with the enviros.

Secondly look were the majority of refineries are located. Very few are far from ocean ports for obvious crude supply reasons.

Off the top of my head that leaves few choices for bases to be converted to refineries. San Deigo, and I think the former Navy base/shipyard in Long Beach isn't viable.

On the East coast their are one or two spots but I'm not sure of their availability.

Something else to be considered on location is most former bases, in addition to not being on the ocean, are located outside industrial areas. They were/are closer to residential/commercial areas.

While I agree with most of what Bush has purposed, the base/refinery issue may not be workable even without enviroweenie interference.