Obama and energy: How the economic crisis could affect campaign promises

The economy is still in turmoil and the environment is still in shambles, but we have a new president-elect: Sen. Barack Obama, D-Ill.

Although this blog tends to focus on Bowling Green, Ohio, a presidential election only comes around every four years, and arguably this last one was the most important of a generation. For these reasons we’ll go national this week, keeping in mind that national policy always has local implications.

Throughout the campaign Obama and Sen. John McCain, R-Ariz., fought to distinguish themselves on the campaign trail by offering the best set of plans for our country’s future. In the end, Obama won.

Now that he has, let’s take a look at what he’s promised to do. Then we’ll take a look at promised changes he, and we, might have to give up thanks to Wall Street and its $700 billion bailout.
Welcome to this week’s topic.

In the first year and a half of this campaign spirits were high and so were promises. Obama said he would work on tax restructuring, education, health care, the War in Iraq and clean energy and global climate change: A heavy plate for anyone — even in the best of economic situations.

As you may have noticed we are not in the best of economic situations — quite the opposite, in fact.

Regardless, here’s what Obama had promised to do in terms of new energy and global climate change:

• Provide short-term relief to American families facing pain at the pump (Arguably, this is no longer necessary in light of recent gas prices — $1.81 this week at USA Gas!)

• Help create five million new jobs by strategically investing $150 billion over the next 10 years to catalyze private efforts to build a clean energy future.

• Within ten years save more oil than we currently import from the Middle East and Venezuela combined.

• Put 1 million Plug-In Hybrid cars — cars that can get up to 150 miles per gallon —on the road by 2015; cars that we will work to make sure are built here in America.

• Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.

• Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.

*Barack Obama’s Web site has slightly more a detailed outline of these plans, specifically more information on how they are to be accomplished.

$700 billion later …

As Obama spent the end of the week choosing top aids and appointing cabinet positions, he has repeatedly acknowledged that some of his plans will be put on the backburner, in light of the financial crisis strangling the nation. Some of them may not even be able to be accomplished at all. However in an interview on CNN, Obama ranked his top priorities:

1.) An economic recovery package that would include middle-class tax relief

2.) Energy

3.) Health care

4.) Tax restructuring

5.) Education

Seeing energy sitting pretty at No. 2 is definitely a good sign because it openly acknowledges how central it is to the future health, economy, safety and security of the U.S.

Another positive factor for those who are green at heart is that a large part of Obama’s new energy plan involves the creation of a “green collar” industry in the U.S. — including about 5 million new jobs over the next 20 years. Here might be a silver lining of the economic crisis. Our country needs more jobs and if we can get them through environmentally responsibly means, all the better.

The New York Times, among others, reported Friday that the economy shed 240,000 jobs during the month of October and another 280,000 during September, brining our current unemployment rate to 6.5 percent. This is the highest it’s been in 14 years.

(Interestingly, 14 years ago was right in year two of president Bill Clinton’s first term. Meaning the last time the economy was this bad was right after George Bush Sr. left office).

Anyway, because of these factors, I think it would be unlikely Obama would put the still fledgling green industry on the political back burner. It’s much more likely that some of his new economic policy will hinge on job creation in that sector. The local impact here is two-fold because of the auto-industries in Toledo and Detroit.

However, as many top news organizations including the New York Times, are reporting, this doesn’t negate the fact that Obama’s plans are likely to be slimmed down to some extent. As John Tuck, a former aid to President Ronald Reagan, put it: “The poor man has his hands tied by the economic and financial mess we have right now. … I don’t know what his options are. They’re very, very limited.”

But Obama has said many of the things he promised, “can’t afford to wait.”

“We can’t afford to wait on moving forward on the key priorities that I identified during the campaign, including clean energy, health care, education and tax relief for middle class families,” he said.

Also in the New York Times this weekend was official speculation on what just form Obama’s revised plans might take:

“On energy and climate change, Mr. Obama’s focus has shifted markedly over the course of the year as the economy has weakened.

An earlier proposal put an economy-wide cap on greenhouse gases, requiring industry and utilities to buy credits from the government to emit carbon dioxide. That plan would produce hundreds of billions of dollars in government revenue and drive up the cost of energy for everyone.

Mr. Obama is now emphasizing a program to spend $150 billion over 10 years to develop renewable sources of energy, like wind, solar and biofuels, and to encourage energy conservation in homes, offices and public buildings. He would also provide substantial financial help to the auto industry to develop high-mileage and electric cars.”

One key part in there is the $150 billion over 10 years for the development of renewable resources. That is where Obama has said the 5 million new “green collar” jobs will come from.

To look locally, that could bode well for companies like Calderon Energy. Based in Bowling Green the company researches and develops clean coal technology, which Obama has said could be a priority.

Coal is America’s most abundant energy resource, but it’s also a top contributor to greenhouse gas emissions. Obama has said he wants to create five, first of a kind, demonstration clean coal-fired power plants. The plants would use carbon capture and sequestration techniques so they wouldn’t add any greenhouse gasses, he said.

In terms of combating global climate change, there’s good news and bad news. Obama has said he will “re-engage” in the U.N. Framework Convention on Climate Change in order to help make the U.S. a leader in that struggle.

Obama has also said he would renegotiate or possible pull out of NAFTA, which has been a source of both environmental and human rights violations and problems since President Clinton signed it into law.

However, speculators consider this unlikely because of the political and economic costs that would come with it. During the campaign, this had been something I was particularly interested in, and I know Latin America had been paying attention as well. Unfortunately, in light of the economic crisis, this issue might not, and in fact probably won’t, get tackled. According to the New York Times:

“No legal hurdle would prevent President-elect Obama from pulling out of the North American Free Trade Agreement, a distinction from other trade deals. … [But] with little political upside and so much potential downside, this may be one issue Mr. Obama prefers not to touch.”

For now it’s a kind of waiting game to see which campaign promises get scrapped and which get funding. This election year had some of the highest voter turnout in the history of the U.S. In Wood County, turnout was above 60 percent — in nearby Henry County turnout was a record-breaking 98 percent.

The same level interest showed on Nov. 4, needs to be carried over the next four years. If the last eight years has taught us anything it should be that only be paying attention and critiquing our leaders decisions can any real positive change come about.

As Obama said once: “I’m asking you to believe, not just in my ability to bring change to Washington, but to yours.”

Be sure to check back for more of what’s going green in BG.

Until then,

Laura

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In his own words: A video of Obama’s “blueprint for change” in energy policy.

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