U.S. President George W. Bush on February 28th formally asked Congress to begin the process of opening the Arctic National Wildlife Refuge (ANWR) to oil and natural gas drilling as part of the fiscal year 2002 budget plan.
The proposal, along with the nearly $2-trillion budget plan, will be debated in Congress over the coming months. Bush said that: “We have a serious energy problem that demands a national energy policy.”
He added that: “Our energy demand outstrips our supply. America must become more energy independent. We can produce more energy at home while protecting our environment, and we must.”
The Bush administration’s proposed energy budget for 2002 will be $19 billion, a 3 percent cut from 2001 spending.
Although a more detailed budget proposal will be submitted in April, the White House indicated that the reduced spending would be realized through tightening management at the Department of Energy and reevaluating “major” projects already under way.
The 2002 energy budget also estimates that the government will earn $1.2 billion in 2004 from companies approved to drill in ANWR, with the funds diverted to help fund research into alternative energy technologies.
The Bush team is also proposing a suspension or review of federal subsidies given to large companies conducting energy research and development projects.
Other aspects of the energy plan include a $120 million increase in funding to help low-income families improve the energy efficiency of their homes, tax credits for solar and other renewable energy sources, $800 million in funding to maintain a northeast heating oil reserve and $2 billion over the next 10 years for developing cleaner-burning fuels.
© 2001 Mena Report (www.menareport.com)
