Obama, McCain have differing views on energy proposals

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By Charlotte Eby | Tuesday, October 7, 2008 8:17 PM CDT | () comments

As Americans struggle to keep up with the rising costs of energy, presidential candidates Barack Obama and John McCain are offering energy proposals they hope will attract budget-conscious

voters.

Both candidates are proposing plans they say could help reduce the country’s importation of oil and accelerate the move to renewable and alternative forms of energy.

But the candidates part ways on which forms of energy should be the focus.

McCain, a GOP senator from Arizona, has pushed for offshore domestic oil drilling and a bevy of new nuclear power plants.

“Elimination of our dependence on foreign oil is a fundamental key to us restoring our economy, creating millions of jobs and also ensuring that America is secure and not dependent on oil from people like (Venezuelan President) Hugo Chavez or other parts of the Middle East, which as we know, could be destabilized under certain sets of circumstances,” McCain said during a recent campaign stop in Iowa.

Obama, an Illinois senator, has offered a plan more geared toward developing biofuels. He also proposes a windfall tax on oil companies, using the proceeds to give a $500 rebate to individuals or $1,000 to families to help them cope with higher energy costs.

In an interview on Iowa Public Television last year in the weeks leading up to his Iowa caucus win, Obama called for ramping up investments in renewable energies such as solar and wind energy and biodiesel.

He used a new wind turbine manufacturer in Keokuk as an example of the kinds of well-paying jobs that could be created by investing in renewable energies.

“That’s the kind of potential future for America and rural America that’s available to us, but we’ve got to have leadership from the White House to do it,” Obama said.

McCain and Obama are both supporters of biofuels, but the candidates disagree when it comes to how much government should support them.

Even during campaign appearances in Iowa, McCain has been frank about his longtime opposition to ethanol subsidies. He also opposes a tariff on imported ethanol that protects America’s ethanol industry against foreign competition.

McCain argues that making more types of ethanol available can lower prices. He cited the embrace of biofuels and flex-fuel vehicles in Brazil, where cars are fueled by sugar-cane-based ethanol.

“We’ve got to give people a choice at the gas pump,” McCain said.

Chad Hart, an agricultural economist from Iowa State University, said the ethanol industry in Iowa could shrink if the ethanol subsidy were eliminated.

“There would still be plants producing ethanol, but maybe not all the plants that are producing ethanol today would be up and running,” Hart said

Besides plans for developing renewable energies, the candidates are looking for ways to improve traditional energy supplies. Reducing emissions from coal-powered power plants and other entities is one of the goals.

Obama and McCain favor a “cap and trade” system that allows firms to buy and sell the rights to emit greenhouse gases that contribute to global climate change.

Nathaniel Baer, energy program director for the Iowa Environmental Council, said the next four years are arguably the most critical in solving global warming, and the next president has a pivotal role to play.

Iowa, the country’s leading ethanol producer, and its growing wind industry stand to gain as the focus shifts to renewable energy, Baer said.

“Iowa has an enormous stake in the outcome of that debate because so many of the solutions to global warming create opportunities for Iowa,” Baer said.

Candidates’ views

on energy issues

Domestic oil drilling

McCain: Calls for lifting the ban on drilling on the outer continental shelf. Wants states to be able to decide if they want to allow drilling off their shores.

Obama: Has said allowing offshore oil drilling won’t help lower gas prices for years and wants any offshore drilling to be part of a comprehensive energy plan.

Fuel efficiency

McCain: Wants a $5,000 tax credit for each American who buys a zero emissions car and urges a quick move to flex-fuel vehicles. Wants to offer $300 million to the creator of a battery to power a car that is more advanced than plug-in hybrid or electric cars available now.

Obama: Has called for 1 million plug-in hybrid cars to be on the road by 2015. Wants to offer tax credits to auto manufacturers to retool their plants to produce fuel-efficient cars and tax credits of up to $7,000 to consumers who buy them. Wants a 4 percent annual increase in Corporate Average Fuel Economy, or CAFE, standards.

Nuclear energy

McCain: Has proposed building 45 nuclear plants by 2030 and ultimately, 100 new plants.

Obama: Has said the country should explore nuclear energy as part of the energy mix but has expressed concerns about the storage of nuclear waste.

Coal power

McCain: Wants to invest $2 billion per year to improve technology for so-called “clean” coal.

Obama: Wants the U.S. Department of Energy to enter into public/private partnerships to develop coal-fired power plants with carbon capture and sequestration capabilities to reduce greenhouse gas emissions.

Global warming

McCain: Favors a “cap and trade” system that sets limits on greenhouse gas emissions. Firms would be allowed to purchase and sell rights to emit, with a goal of reducing emissions to 1990 levels by 2020 and 60 percent below 1990 levels by 2050.

Obama: Wants to put in place a “cap and trade” system to reduce pollution and to reduce greenhouse gas emissions 80 percent by 2050. The $150 billion in proceeds over

10 years would go to fund other renewable energy efforts and incentives as well as giving consumers rebates to offset higher energy prices.

Ethanol and biofuels

McCain: Does not support subsidies for ethanol. He has said corn-based ethanol distorts food markets and deprives the country of better and cheaper alternative fuels.

Obama: Wants greater investment in biofuels and the infrastructure to deliver it.

Charlotte Eby can be contacted at (515) 243-0138 or chareby@aol.com. Comment on this story at qctimes.com.