(Colorado Springs, CO) While there is no single reason for the skyrocketing cost of energy in the United States, one thing is clear: federal government policy is making the problem worse.  And when it comes to the current food versus fuel tension, the federal government is more than just a bit player; it is the probably the largest contributor to the problem.

Some simple improvements in the federal government’s energy policy could substantially improve our prospects for affordable energy in the coming years.

1. Eliminate the biofuels mandate.  Congress passed and the President signed in late 2007 a requirement that biofuels account for 7.5 billion gallons by 2012 and 36 billion by 2022.  Why?  A mandate of this sort attempts to dictate supply by legislative fiat.  It makes no sense.  The biofuels mandate should be repealed.  Last year, 25% of America’s corn production was diverted to fuel in order to comply with current ethanol requirements and in anticipation of the future mandates.  This mandate is having a clear effect on the affordability of our food supply.  Texas Senator Kay Bailey Hutchison recently introduced legislation to freeze the biofuels mandate at current levels, instead of steadily increasing it year-after-year.  I endorse her bill as a good first step.

2. Eliminate ethanol subsidies.  Current federal law provides a significant subsidy for corn-based ethanol.  There is no good reason for this.  Like the biofuels mandate, subsidizing corn-based fuels reduces the supply of land and corn available for food production, thus increasing the cost of food. 

3. Lift the prohibitions on domestic drilling.  America’s energy policy is stuck in the 1970s.  For whatever reason, America’s lawmakers stopped the development of new energy supplies.  We are now reaping the consequences.  It’s time to open up ANWR (the Alaska National Wildlife Refuge) to environmentally sensitive drilling, to lift some of the prohibitions on offshore drilling along the outer-continental shelf, and enact regulatory reforms to unleash the construction of new domestic refineries.

4. Go nuclear!  It’s time to promote a new generation of nuclear reactors, to ensure a ready supply of electricity for our future.  Nuclear reactors are nearly emission free, and a single reactor can provide enough electricity for hundreds of thousands of households per year.  The U.S. has not built a new nuclear reactor in more than 30 years.  Energy companies are understandably reluctant to invest in expensive reactors, which can be subject to meritless lawsuits and are subject to the political whims of the next administration.  The federal government should provide common-sense legal protections and ensure certainty in the regulatory environment to attract private investment in nuclear energy.  We also need to revisit counterproductive policies regarding nuclear reprocessing and the disposal of nuclear waste.

5. Focus federal government research and development efforts on promising technologies.  Scientists in the public and private sector are developing a number of promising technologies: cellulosic ethanol, new and improved nuclear reactors, coal to liquid, carbon sequestration, wind and solar power, hydrogen fuels, and hybrid vehicles.  The government should focus its efforts on research and development.  Affordable, alternative energies will create their own market-based demand, and suppliers will react to meet that demand.

6. Enact a summer gas tax holiday.  Rising energy costs are in part the government’s blame.  Enacting a gas tax holiday is somewhat like handing out cold medicine after inflicting an influenza outbreak.  Still, it’s better than nothing.  A gas tax holiday provides some minor relief for consumers.  I favor the proposal. 

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