• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Bush focuses on energy bill's economic impact

Posted on: Monday, 8 August 2005, 03:08 CDT

By Patricia Wilson

CRAWFORD, Texas (Reuters) - With polls showing Americans are anxious about the economy despite positive trends, President Bush signs a $14.5 billion energy bill on Monday that he says will keep U.S. growth on track.

The legislation, passed by Congress after a four-year battle, boosts oil, natural gas and electricity supplies and promotes alternative energy sources, but offers consumers no short-term relief from high gasoline prices.

Bush, on a 33-day vacation at his Texas ranch, makes a trip to the Energy Department's Sandia National Laboratories in Albuquerque, New Mexico, to sign it.

"To keep our economy growing, we need affordable, reliable supplies of energy," he said.

Although job numbers and average hourly earnings are both on the rise, a new Newsweek poll found that 52 percent of respondents disapproved of Bush's handling of the economy, while 40 percent approved.

Those results mirrored a CBS News survey last week which showed that just 20 percent thought the economy was improving, while 32 percent said it was getting worse.

White House spokesman Trent Duffy said the polling data ran counter to evidence of strong consumer confidence and spending on big ticket items like cars and houses.

"American consumers are putting their money where their mouth is," Duffy said. "What the president's focused on is keeping the economy growing."

NUCLEAR POWER

Bush's White House economic team will gather at his ranch in Crawford on Tuesday and, on Wednesday, the president will sign a $286 billion transport and highway bill that he said would help "create good jobs."

Supporters of the energy bill say it will revive America's nuclear power industry, boost oil drilling, convert coal into a cleaner-burning fuel and use home-grown, corn-based ethanol to stretch gasoline supplies.

But environmental groups and some Democrats criticize its extensive tax breaks, subsidies and loan guarantees as a lavish gift to energy companies already enjoying near-record profits.

Most Americans will feel the impact of new law in 2007 when daylight-saving time is extended by one month to save energy.

Consumers will also be able to claim tax credits for installing more energy-efficient windows and solar panels on their homes and purchasing hybrid fueled vehicles.

The new law will not curb oil imports with stricter fuel mileage requirements for gas-guzzling SUVs and other vehicles.

The United States relies on foreign oil to meet 60 percent of its daily petroleum demand of almost 21 million barrels. Gasoline use accounts for 2 out of every 5 barrels consumed.

When Congress returns from its summer break in September, lawmakers will turn to implementing the next -- and most controversial -- phase of the Bush administration's national energy plan -- allowing oil drilling in Alaska's Arctic National Wildlife Refuge.

Bush's Republican allies in Congress plan to add ANWR drilling language to legislation that funds the day-to-day working of the federal government.

If Congress approves drilling in the Arctic refuge this year, the first oil would not begin flowing until 2015 and reach a peak output of almost 1 million barrels a day, assuming the government leased the first exploration tracts in 2007, according to the Energy Department. (Additional reporting by Tom Doggett)

Source: REUTERS

More News in this Category