Obama's New Energy Initiative

Campaigning deep in Republican territory, Barack Obama called for a national energy independence initiative similar to the 1960s Apollo mission to the moon.

Obama and McCain have split on the issue of offshore oil drilling with McCain supporting George W. Bush's call for new exploration. Obama notes that it will take at least 10 years to bring oil to the market with new drilling by which time it will only account for a minuscule percent of American consumption.

The Illinois senator instead suggests investing $15 billion a year for 10 years in new spending on clean energy technologies.

Practically this 10 year plan will provide a more lasting and effective solution than a resumption of offshore drilling with the latter plan likely generating intense opposition.

The money for Obama's green energy spending will come from ending tax breaks and loopholes that currently exist for energy companies, and by taxing companies that emit large quantities of climate-changing carbon into the atmosphere.

Barack also wants to initiate a plan that will increase overall energy efficiency by 50 percent by the year 2030.

For More Information about Barack's Plan

Read the Energy Plan
Read the Environment Plan

Barack tours Solar Energy Facility

Barack Obama toured the Springs Preserve in Nevada, which was designed to meet Platinum Leadership in Energy Design (LEED) standards for environmentally sustainable construction. Solar panels here can deliver up to kW of electricity.

Barack's energy plan proposes doubling clean energy research funding and requiring 25% clean renewable energy sourcing by 2025.

Here is the text from Barack's energy policy speech today in Las Vegas.

Remarks of Senator Barack Obama – as prepared for delivery

A Serious Energy Policy for Our Future

as prepared for delivery

Tuesday, June 24th, 2008

Las Vegas, Nevada

I want to start by thanking the folks here at Springs Preserve for the wonderful tour we just had. What we are seeing here – from the solar panels that power this facility to the Bombard workers who built it – is that a green, renewable energy economy isn't some pie-in-the-sky, far-off future, it is now. It is creating jobs, now. It is providing cheap alternatives to $140-a-barrel oil, now. And it can create millions of additional jobs and entire new industries if we act now.

All across the country, local leaders and entrepreneurs and small business owners are providing the innovation and initiative needed to make this transformation possible. In Pennsylvania, an old steel mill has become the home of a new wind turbine factory because of the state's push for renewable portfolio standards that require the production of more alternative energy. Wisconsin is poised to gain more than 14,000 jobs at existing manufacturing facilities because of its investment in wind power. Where we're standing in Southern Nevada happens to be one of the best sources for the generation of solar power in the world. Next week, our friend and Senate Majority Leader Harry Reid will come here to cut the ribbon on a new thermal solar technology plant. And between solar, wind, and geothermal energy, this state could create upwards of 80,000 new jobs by 2025.

The possibilities of renewable energy are limitless. But to truly harness its potential, we urgently need real leadership from Washington – leadership that has been missing for decades. We have been talking about energy independence since Americans were waiting in gas lines during the 1970s. We've heard promises about it in every State of the Union for the last three decades. But each and every year, we become more, not less, addicted to oil – a 19th century fossil fuel that is dirty, dwindling, and dangerously expensive. Why?

It isn't because the resources and technology aren't there. We know this because countries like Spain, Germany, and Japan have already leapt ahead of us when it comes to renewable energy technology. Germany, a country as cloudy as the Pacific Northwest, is now a world leader in the solar power industry and the quarter million new jobs it has created. In less than eight years, before we'd ever see a drop of oil from offshore drilling, they have doubled their renewable energy output. And they did it by using technology that, in some cases, was paid for by the American people through our own Research and Development tax credits. The difference is, their government harnessed that technology by providing the necessary investments and incentives to jumpstart a renewable energy industry. Washington hasn't done that.

What Washington has done is what Washington always does – it's peddled false promises, irresponsible policy, and cheap gimmicks that might get politicians through the next election, but won't lead America toward the next generation of renewable energy. And now we're paying the price. Now we've fallen behind the rest of the world. Now we're forced to beg Saudi Arabia for more oil. Now we're facing gas prices over $4 a gallon – gas prices that are decimating the savings of families who are already struggling in this economy. Like the man I met in Pennsylvania who lost his job and couldn't even afford the gas to drive around and look for a new one. That's how badly folks are hurting. That's how badly Washington has failed.

For decades, John McCain has been a part of this failure in Washington. Yes, he has gone further than some in his party in speaking out on climate change. And that is commendable. But time and time again, he has opposed investing in the alternative sources of energy that have helped fuel some of the very same projects and businesses he's highlighting in this campaign. He's voted against biofuels. Against solar power. Against wind power. Against a 2005 energy bill that represented the largest ever investment in renewable sources of energy – a bill that Senator McCain's own campaign co-chair, called "the biggest legislative breakthrough we've had" since he's been in the Senate. That bill certainly wasn't perfect – it contained irresponsible tax breaks for oil companies that I consistently opposed, and that I will repeal as President. But the tax credits in that bill contributed to wind power growing 45% last year, the sharpest rise in decades. If John McCain had his way, those tax credits wouldn't exist. And if we don't renew key tax incentives for alternative energy production – tax incentives that John McCain opposed continuing – we could lose up to 116,000 green jobs and $19 billion in investment just next year. And now he's talking about a tax credit for more efficient cars even though he helped George Bush block these credits twice in the last year.

After all those years in Washington, John McCain still doesn't get it. I commend him for his desire to accelerate the search for a battery that can power the cars of the future. I've been talking about this myself for the last few years. But I don't think a $300 million prize is enough. When John F. Kennedy decided that we were going to put a man on the moon, he didn't put a bounty out for some rocket scientist to win – he put the full resources of the United States government behind the project and called on the ingenuity and innovation of the American people. That's the kind of effort we need to achieve energy independence in this country, and nothing less will do. But in this campaign, John McCain offering the same old gimmicks that will provide almost no short-term relief to folks who are struggling with high gas prices; gimmicks that will only increase our oil addiction for another four years.

Senator McCain wants a gas tax holiday that will save you – at most – thirty cents a day for three months. And that's only if the oil companies don't just jack up the price and pocket the savings themselves, which is exactly what they did when we tried to do the same thing in Illinois. He's willing to spend nearly $4 billion on more tax breaks for big oil companies – including $1.2 billion for Exxon alone. He wants to open our coastlines to drilling – a proposal that his own top economic advisor admitted won't provide any short-term relief at the pump. It's a proposal that George Bush's Administration says will not provide a drop of oil – not a single drop – for at least ten years. And by the time the drilling is fully underway in twenty years, our own Department of Energy says that the effect on gas prices will be "insignificant." Insignificant.

Just yesterday, Senator McCain actually admitted this. In a town hall he said, and I quote, "I don't see an immediate relief" but "the fact that we are exploiting those reserves would have psychological impact that I think is beneficial." Psychological impact. In case you were wondering, that's Washington-speak for, "It polls well." It's an example of how Washington politicians try to convince you that they did something to make your life better when they really didn't. Well the American people don't need psychological relief or meaningless gimmicks to get politicians through the next election, they need real relief that will help them fill up their tanks and put food on their table. They need a long-term energy strategy that will reduce our dependence on foreign oil by investing in the renewable sources of energy that represent the future. That's what they need.

Meanwhile, the oil companies already own drilling rights to 68 million acres of federal lands, onshore and offshore, that they haven't touched. 68 million acres that have the potential to nearly double America's total oil production, and John McCain wants to give them more. Well that might make sense in Washington, but it doesn't make sense for America. In fact, it makes about as much sense as his proposal to build 45 new nuclear reactors without a plan to store the waste some place other than right here at Yucca Mountain. Folks, these are not serious energy policies. They are not new energy policies. And they are certainly not the kind of energy policies that will give families the relief they need or our country the oil independence we must have.

I realize that gimmicks like the gas tax holiday and offshore drilling might poll well these days. But I'm not running for President to do what polls well, I'm running to do what's right for America. I wish I could wave a magic wand and make gas prices go down, but I can't. What I can do – and what I will do – is push for a second stimulus package that will send out another round of rebate checks to the American people. What I will do as President is tax the record profits of oil companies and use the money to help struggling families pay their energy bills. I will provide a $1,000 tax cut that will go to 95% of all workers and their families in this country. And I will close the loophole that allows corporations like Enron to engage in unregulated speculation that ends up artificially driving up the price of oil. That's how we'll provide real relief to the American people. That's the change we need.

I have a very different vision of what this country can and should achieve on energy in the next four years – in the next ten years. I have a plan to raise the fuel standards in our cars and trucks with technology we have on the shelf today – technology that will make sure we get more miles to the gallon. And we will provide financial help to our automakers and autoworkers to help them make this transition. I will invest $150 billion over the next ten years in alternative sources of energy like wind power, and solar power, and advanced biofuels – investments that will create up to five million new jobs that pay well and can't be outsourced; that will create billions of dollars in new business like you're already doing here in Nevada. And before we hand over more of our land and our coastline to oil companies, I will charge those companies a fee for every acre that they currently lease but don't drill on. If that compels them to drill, we'll get more oil. If it doesn't, the fees will go toward more investment in renewable sources of energy.

When all is said and done, my plan to increase our fuel standards will save American consumers from purchasing half a trillion gallons of gas over the next eighteen years. My entire energy plan will produce three times the oil savings that John McCain's ever could – and what's more, it will actually decrease our dependence on oil while his will only grow our addiction further.

And that's the choice that you face in this election. When you're facing $4 a gallon gas, do you want a gas tax gimmick that will save you at most thirty cents a day for three months and a drilling proposal that won't provide a drop of oil for ten years, or a second rebate check and $1,000 tax cut to help your family pay the bills? When you look down the road five years from now or ten years from now, do you want to see an America that's begging dictators for more oil that we can't afford? An America that's fallen further behind the rest of the world when it comes to the jobs and industries of the future? Or do you want to see more places like Springs Preserve and Bombard Electric? More green jobs and green businesses? More innovation and ingenuity that helps this nation lead the way on affordable, renewable energy?

That's the future I know we can have. That's the America I believe in. And that's where I will lead us if I have the chance to serve as your President. It will not be easy. It will not happen overnight. It will not come without cost or sacrifice. But it is possible. It is necessary. And places like this, and people like you, prove that we have the resources, and the skills, and the will to begin today. I look forward to joining you in that effort. Thank you.

Video: Barack Obama in Oregon

Sen. Barack Obama, in Bend, Oregon, discusses the importance of investing in renewable energy.



Barack during Friday night's rally in Eugene, Oregon.



Check out the Flickr slide show of Barack's visit to PV Powered company in Bend, Oregon. Founded in 2003, PV Powered produces DC to AC solar power inverters encourages adoption of solar power by producing reliable, easy to install inverters. Photovoltaic energy is one of the areas Obama promotes in his green energy plan.

Indianapolis: Barack on Energy Policy

Barack Obama delivered remarks today on his energy policy in Indianapolis. Here is the text as prepared for delivery.

Remarks of Senator Barack Obama
Press Avail on Energy Plan
Indianapolis, Indiana
Friday, April 25, 2008

Everywhere I go in Indiana, and across this country, I’m talking to folks who are working harder and harder just to get by. At a time when our economy is in turmoil and wages are stagnant, hardworking families are struggling to pay rising costs, and few costs are rising more than the one folks pay at the pump. For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans, they’re a huge problem, bordering on a crisis.

Here in Indiana, gas costs about $3.60 a gallon – and across the country, gas costs more than at any time in almost thirty years. Over the last year alone, the price of oil has shot up more than 80%, reaching a record high of more than $110 a barrel – all of which helps explain why the top oil companies made $123 billion last year.

Now, there’s nothing wrong with a company being rewarded for its success. Our economy has always been powered by innovation and ingenuity. But the reason Americans keep going to the pump isn’t because oil companies are being particularly innovative. It’s because Washington politicians didn’t deal with the challenge of alternative energy when they had the chance.

When George Bush asked Dick Cheney to come up with our energy policy a few years ago, he met with the environmental groups once, and he met with the renewable energy folks once, and he met with the oil and gas companies 40 times. And yet, we also know this problem goes deeper than the Bush administration. Because we’ve been talking about high gas prices in this country since Americans were sitting in gas lines in the 1970s. And we’ve heard promises about energy independence from every President – Democratic and Republican – since Richard Nixon. And yet the only thing that’s different now is that we are even more dependent on foreign oil, our planet is in even greater peril, and the price of gas keeps going up and up and up.

So unless we’re willing to challenge the broken system in Washington, and stop letting lobbyists use their clout to get their way, nothing else is going to change. And the reason I’m running for President is to challenge that system. I’m the only candidate in this race who’s worked to rein in the power of lobbyists by passing historic ethics reforms in Illinois and in the Senate, and I’m the only one who isn’t taking a dime from Washington lobbyists.

We need a President who’s looking out for families in Indiana, not just doing what’s good for multinational corporations, and that’s the kind of President I’ll be. It isn’t right that oil companies are making record profits at a time when ordinary Americans are going into debt trying to pay rising energy costs. In the paper today, there was an article about how millions of Americans are falling behind on their energy bills, and a record number of Americans could face energy shut-offs over the next two months. That’s why we’ll put a windfall profits tax on oil companies and use it to help Indiana families pay their heating and cooling bills and reduce energy costs. We’ll also take steps to reduce the price of oil and increase transparency in how prices are set so we can ensure that energy companies aren’t bending the rules. And to help Indiana families meet the rising cost of gas, we’ll put a middle class tax cut in their pockets that will save them $1,000 a year, and we’ll eliminate income taxes altogether for seniors making less than $50,000.

So these are a few short-term steps we can take to ease the burden that Indiana families are bearing as a result of our failed energy policy. But the truth is, there is no easy answer to our energy crisis – and we need a President who’s going to be straight with us about that; a president who’s going to tell the American people not just what they want to hear, but what they need to know. And what they need to know is that any real solution isn’t going to come about overnight. It’s going to take time.

To bring about real change, we’re going to have to make long-term investments in clean energy and energy efficiency. That’s why I reached across the aisle in the Senate to come up with a plan to double our fuel efficiency standards that won support of lawmakers who had never supported raising those standards before. And that’s why I voted for an energy bill that was far from perfect because it was the largest investment in renewable energy in history, and I fought to eliminate the tax giveaways to oil companies that were slipped into that bill.

And as President, I’ll work to solve this energy crisis once and for all. We’ll invest $150 billion over the next ten years in establishing a green energy sector that will create up to 5 million new jobs – and those are jobs that pay well and can’t be outsourced. We’ll invest in clean energies like solar, wind, and biodiesel. And we’ll help make sure that the fuel we’re using is more efficient.

The candidates with the Washington experience – my opponents – are good people. They mean well. But they’ve been in Washington for a long time, and even with all that experience they talk about, nothing has happened. This country didn’t raise fuel efficiency standards for over thirty years. So what have we got for all that experience? Gas that’s approaching $4 a gallon – because you can fight all you want inside Washington, but until you change the way it works, you won’t be able to make the changes Americans need.

In the end, we’ll only ease the burden of gas prices on our families when Hoosiers and people all across America say “enough.” It’s time to free ourselves from the tyranny of oil, and stop funding both sides in the war on terror. It’s time to save this planet for our children. The time is now – not after the next election or the one after that. You shouldn’t accept any more excuses for why it can’t be done. It won’t happen tomorrow. But if we can come together in this election, we can and will begin, and the first step is changing the way business is done in Washington. If we can do that, then the energy crisis is one I’m confident we can solve.

Obama on the Environment

Check out Barack's plan on energy and the environment from barackobama.com .

Plan for a Clean Energy Future

“Well, I don't believe that climate change is just an issue that's convenient to bring up during a campaign. I believe it's one of the greatest moral challenges of our generation. That's why I've fought successfully in the Senate to increase our investment in renewable fuels. That's why I reached across the aisle to come up with a plan to raise our fuel standards… And I didn't just give a speech about it in front of some environmental audience in California. I went to Detroit, I stood in front of a group of automakers, and I told them that when I am president, there will be no more excuses — we will help them retool their factories, but they will have to make cars that use less oil.”

— Barack Obama, Speech in Des Moines, IA, October 14, 2007

At a Glance

• Reduce Carbon Emissions 80 Percent by 2050
• Invest in a Clean Energy Future
• Support Next Generation Biofuels
• Set America on Path to Oil Independence
• Improve Energy Efficiency 50 Percent by 2030
• Restore U.S. Leadership on Climate Change

Speak your mind and help set the policies that will guide this campaign and change the country.

• Present your ideas

The Problem

Foreign Oil: America's 20-million-barrel-a-day oil habit costs our economy $1.4 billion a day, and $500 billion in 2006 alone. Every single hour, we spend $41 million on foreign oil.

Climate Change: As a result of climate change, glaciers are melting faster; the polar ice caps are shrinking; trees are blooming earlier; more people are dying in heat waves; species are migrating, and eventually many will become extinct.

Barack Obama's Plan

Reduce Carbon Emissions 80 Percent by 2050

• Cap and Trade: Obama supports implementation of a market-based cap-and-trade system to reduce carbon emissions by the amount scientists say is necessary: 80 percent below 1990 levels by 2050. Obama's cap-and-trade system will require all pollution credits to be auctioned. A 100 percent auction ensures that all polluters pay for every ton of emissions they release, rather than giving these emission rights away to coal and oil companies. Some of the revenue generated by auctioning allowances will be used to support the development of clean energy, to invest in energy efficiency improvements, and to address transition costs, including helping American workers affected by this economic transition.
• Confront Deforestation and Promote Carbon Sequestration: Obama will develop domestic incentives that reward forest owners, farmers, and ranchers when they plant trees, restore grasslands, or undertake farming practices that capture carbon dioxide from the atmosphere.

Invest in a Clean Energy Future

• Invest $150 Billion over 10 Years in Clean Energy: Obama will invest $150 billion over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial-scale renewable energy, invest in low-emissions coal plants, and begin the transition to a new digital electricity grid. A principal focus of this fund will be devoted to ensuring that technologies that are developed in the U.S. are rapidly commercialized in the U.S. and deployed around the globe.
• Double Energy Research and Development Funding: Obama will double science and research funding for clean energy projects including those that make use of our biomass, solar and wind resources.
• Invest in a Skilled Clean Technologies Workforce: Obama will use proceeds from the cap-and-trade auction program to invest in job training and transition programs to help workers and industries adapt to clean technology development and production. Obama will also create an energy-focused Green Jobs Corps to connect disconnected and disadvantaged youth with job skills for a high-growth industry.
• Convert our Manufacturing Centers into Clean Technology Leaders: Obama will establish a federal investment program to help manufacturing centers modernize and Americans learn the new skills they need to produce green products.
• Clean Technologies Deployment Venture Capital Fund: Obama will create a Clean Technologies Venture Capital Fund to fill a critical gap in U.S. technology development. Obama will invest $10 billion per year into this fund for five years. The fund will partner with existing investment funds and our National Laboratories to ensure that promising technologies move beyond the lab and are commercialized in the U.S
• Require 25 Percent of Renewable Electricity by 2025: Obama will establish a 25 percent federal Renewable Portfolio Standard (RPS) to require that 25 percent of electricity consumed in the U.S. is derived from clean, sustainable energy sources, like solar, wind and geothermal by 2025.
• Develop and Deploy Clean Coal Technology: Obama will significantly increase the resources devoted to the commercialization and deployment of low-carbon coal technologies. Obama will consider whatever policy tools are necessary, including standards that ban new traditional coal facilities, to ensure that we move quickly to commercialize and deploy low carbon coal technology.

Support Next Generation Biofuels

• Deploy Cellulosic Ethanol: Obama will invest federal resources, including tax incentives, cash prizes and government contracts into developing the most promising technologies with the goal of getting the first two billion gallons of cellulosic ethanol into the system by 2013.
• Expand Locally-Owned Biofuel Refineries: Less than 10 percent of new ethanol production today is from farmer-owned refineries. New ethanol refineries help jumpstart rural economies. Obama will create a number of incentives for local communities to invest in their biofuels refineries.
• Establish a National Low Carbon Fuel Standard: Barack Obama will establish a National Low Carbon Fuel Standard to speed the introduction of low-carbon non-petroleum fuels. The standard requires fuels suppliers to reduce the carbon their fuel emits by ten percent by 2020.
• Increase Renewable Fuel Standard: Obama will require 36 billion gallons of renewable fuels to be included in the fuel supply by 2022 and will increase that to at least 60 billion gallons of advanced biofuels like cellulosic ethanol by 2030.

Set America on Path to Oil Independence

Obama's plan will reduce oil consumption by at least 35 percent, or 10 million barrels per day, by 2030. This will more than offset the equivalent of the oil we would import from OPEC nations in 2030.

• Increase Fuel Economy Standards: Obama will double fuel economy standards within 18 years. His plan will provide retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers, so that they can build new fuel-efficient cars rather than overseas companies. Obama will also invest in advanced vehicle technology such as advanced lightweight materials and new engines.

Improve Energy Efficiency 50 Percent by 2030

• Set National Building Efficiency Goals: Barack Obama will establish a goal of making all new buildings carbon neutral, or produce zero emissions, by 2030. He'll also establish a national goal of improving new building efficiency by 50 percent and existing building efficiency by 25 percent over the next decade to help us meet the 2030 goal.
• Establish a Grant Program for Early Adopters: Obama will create a competitive grant program to award those states and localities that take the first steps to implement new building codes that prioritize energy efficiency.
• Invest in a Digital Smart Grid: Obama will pursue a major investment in our utility grid to enable a tremendous increase in renewable generation and accommodate modern energy requirements, such as reliability, smart metering, and distributed storage

Restore U.S. Leadership on Climate Change

• Create New Forum of Largest Greenhouse Gas Emitters: Obama will create a Global Energy Forum — that includes all G-8 members plus Brazil, China, India, Mexico and South Africa –the largest energy consuming nations from both the developed and developing world. The forum would focus exclusively on global energy and environmental issues.
• Re-Engage with the U.N. Framework Convention on Climate Change: The UNFCCC process is the main international forum dedicated to addressing the climate problem and an Obama administration will work constructively within it.

Barack Obama's Record

• Renewable Fuels: Obama has worked on numerous efforts in the Senate to increase access to and use of renewable fuels. Obama passed legislation with Senator Jim Talent (R-MO) to give gas stations a tax credit for installing E85 ethanol refueling pumps. The tax credit covers 30 percent of the costs of switching one or more traditional petroleum pumps to E85, which is an 85 percent ethanol/15 percent gasoline blend. Obama also sponsored an amendment that became law providing $40 million for commercialization of a combined flexible fuel vehicle/hybrid car within five years.
• CAFE: Obama introduced a bold new plan that brought Republicans and Democrats, CAFE supporters and long-time opponents together in support of legislation that will gradually increase fuel economy standards and offer what the New York Times editorial page called "real as opposed to hypothetical results."

For More Information about Barack's Plan

Read the Energy Plan
Read the Speech