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Hatch: Energy bill can lower gas prices, boost economy
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Until about two years ago, the worst part of my 40-mile round-trip commute was traffic. Even departing well before the sun rises, it can sometimes take over an hour to get to work in Washington.

But traffic is no longer the worst part of commuting - it's visiting the gas pump. Gas prices have been at all-time highs across the country and that has a real impact on the American economy, and on the monthly budget of every Utahn.

Whether I'm filling the tank or sitting in traffic burning fuel, I can't help but think that American energy policy has steadily been going the way of the dinosaur: plodding, behind the times and basically nothing but fossil fuel. Our country and our state deserve a forward-looking energy policy, one that will help our consumers travel and live in comfort, help our industry thrive, bring down gas prices and help wean us off our dangerous dependence on foreign oil.

Utah, with our largely untapped energy reserves, and our world-wide reputation for industriousness and wise land policy, will have a vital role to play in such a forward-looking policy.

There is a proposal that will help bring American energy development out of the last century and help usher in a new era in energy production in our state: The bill just approved by a Senate-House conference committee and expected to be voted on by Congress today.

This energy bill contains measures that would truly advance, by leaps and bounds, American energy development, fuel technology and overall efficiency. Imagine a day when Wasatch Front air is clean even during an inversion, or when the cost of filling up is once again a minor concern!

Make no mistake, there are no quick or easy solutions, but there are real steps we can take to strengthen the weakest links in our nation's energy system. I authored several bills that are now part of this bill and I hope they will make it to the president's desk. If so, Utah will have a significant role to play:

There is no escaping our need to produce more domestic oil - and Utah and neighboring states can lead the way. There is more recoverable oil in the tar sands and oil shale of Utah, Colorado, and Wyoming than in the entire Middle East. I added measures to the energy bill to lower regulatory burdens and provide strong incentives to encourage the development of domestic oil from these unconventional resources.

If this becomes law, Utah would be poised to become a world leader in energy production.

In addition, natural gas is a critical component of any forward-looking energy policy. It is vital for electricity production, transportation and for manufacturing. My Mineral Leasing Act Amendment will increase natural gas production in the Intermountain West by removing outdated regulatory hurdles to gas development in tar sands while keeping critical environmental protections. I also helped add tax incentives to the energy bill that would promote the gas pipelines that deliver this clean fuel.

While oil production is important, we must also look beyond traditional fuels. Utah has one of the largest geothermal resources in the nation which can be used to produce perfectly clean, renewable electricity. To encourage development of this terrific local resource - and more diversity in electricity production - I introduced a measure to promote geothermal energy with tax incentives for new geothermal electric generators placed in service before 2008. If fully developed, geothermal energy could provide electricity to more than 22 million American homes.

Further, we simply must diversify our transportation fuels and vehicle use. Two-thirds of our oil is consumed in the transportation sector, and transportation in the United States is 97 percent dependent on oil. With the support of major environmental groups and automakers, I have long worked to enact my Clear Act, which offers consumer tax credits to lower the cost of hybrid-electric and alternative fuel (such as hydrogen) vehicles, as well as lowering the cost of fuels and new infrastructure to support them.

Environmentalists have called the Clear Act the most important environmental bill of the last two Congresses. This is now a part of the energy bill and offers real hope for cleaner air and reduced oil dependency.

The economics of refining in this country are so tough that the United States has lost nearly 200 refineries since the last one was built in the 1970s.

We now import refined oil because of a lack of domestic capacity, so I added provisions to the energy bill to provide strong incentives to the refining industry to quickly increase capacity and help lower prices at American pumps.

While we can't expect the energy bill to bring down prices immediately, its provisions will make a big difference over time. Personally, I am looking forward to the worst part of my commute once again being the traffic and not filling up.

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