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Skriven 2006-02-20 23:33:24 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (060220) for Mon, 2006 Feb 20
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Press Gaggle by Scott McClellan
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For Immediate Release
Office of the Press Secretary
February 20, 2006

Press Gaggle by Scott McClellan
Aboard Air Force One
En Route Milwaukee, Wisconsin




10:41 A.M. EST

MR. McCLELLAN: Happy President's Day. I've got a special guest with me
today, our National Economic Advisor Al Hubbard. I'll turn it over to him
in a minute, but first let me just kind of touch on the day, and also I've
got two world leader calls that I want to read out to you.

The President called President Arroyo this morning. The President offered
our sincerest condolences over the loss of life in the town of St. Bernard
that was destroyed by the massive mudslides. The President also reiterated
our commitment to continue helping in the rescue and relief efforts. As you
all are aware, we've got a number of Marines from an expeditionary unit
that are there in the town of St. Bernard that are helping with the relief
efforts. Our USAID also authorized our embassy in Manilla to provide tens
of millions of dollars in disaster relief assistance funds, as well.

And then following that, the President spoke with President Fox of Mexico.
This was an opportunity to talk about border issues. Primarily, they talked
about the increased border violence, and the two leaders talked about the
importance of working together to improve our border security and stop the
violence. They also talked about designating a high-level contact within
each government to work together on these issues. The President designates
Secretary Chertoff, who he spoke with this morning, as well, to work with
his counterpart in Mexico on these issues.

The President also gave President Fox an update on congressional efforts to
pass comprehensive immigration reform. The President reiterated his
commitment to comprehensive immigration reform, including a temporary guest
worker program. And then they also talked about the security and prosperity
partnership that was developed by Canada, Mexico and the United States, and
talked about the possibility of meeting soon on that initiative. And that's
really the readout for that call.

Today, when we get to Wisconsin, the President will be touring the Johnson
Controls Battery Technology Center. This is a hybrid battery laboratory.
The main focus of this facility is improving lithium -- lithium ion
batteries, and they're really working on developing the next generation of
hybrid batteries here at this facility. And so you all will get an
opportunity to see this. These are batteries that will be able to charge
faster, and the batteries will also last longer in hybrid cars. And Johnson
Controls has really been a leader in developing advanced lithium battery
technology.

And then following that, the President will be making remarks on his
Advanced Energy Initiative. As you all know -- the President will be
expanding on what he talked about in the State of the Union. As you all
know, the President believes we ought to really be investing in new
technologies to put us on a path to a more affordable, reliable and secure
energy future. And that's what he'll be talking about in his remarks. And
he'll expand on his Advanced Energy Initiative, which really has two main
objectives: one, to transform the way we power our cars and trucks, and
two, to transform the way we power our homes and offices. And he'll be
talking about the various initiatives within this plan that he has
outlined, as well.

And then following that, we will be going to Auburn Hills, Michigan where
the President will tour United Solar Ovonics. And this is a company that
develops solar cells and manufactures solar panels. So the President will
highlight the importance of expanding the use of solar energy, as well. And
that's something he'll touch on in his remarks prior to that, as well. I
expect after the tour, he'll make some brief remarks to the pool about the
visit there.

And then we go to Colorado for the evening, and that's really what -- all I
have to begin with. I don't know if Al has anything to add to what I said.

Oh, and one last thing, too. Another aspect of this is something I've
touched on, and the President has touched on. This Advanced Energy
Initiative is really something that he believes we can work on in a
bipartisan way to get something done for the American people. This is a
shared goal of Republicans and Democrats, and he believes it's an
opportunity that we can really move forward on for advancing technology and
helping to secure our energy future.

And with that -- I don't know if Al has anything to add or if you just want
to go straight to questions.

DIRECOR HUBBARD: Not really, other than, you know -- the President is very
committed to basically severing our addiction to crude oil. And the good
news is, we've invested over $10 billion in energy research since the
President has been in office. And it's had a significant impact, and we're
going to see a payoff in the next few years, and start the process towards
more energy independence.

As he said a number of times, it took us a long time to get it in the
situation we're in, and it's going to take us a long time to get out of it.
But the important thing is to start making the kind of investments, and
make the commitment to become energy independent. And we're going to start
realizing the benefits of that. Really, we've already started with the
hybrid cars, and those hybrid cars are going to become more sophisticated,
then ethanol, and finally, hydrogen.

So we feel good about where we are, but it's going to take awhile to get to
where we want to go.

Q Does the President use any solar energy at the ranch? Or does he or any
member of his family use a hybrid or flex-fuel car?

MR. McCLELLAN: Let me get you an update on that. There is some stuff they
do to improve energy efficiency, I believe. But let me check on that.

Q Are there going to be any new little details today about the initiative
at all?

MR. HUBBARD: I didn't hear your question.

Q Are any new details coming out today about the initiative, or --

MR. HUBBARD: Well, the -- it's hard for me to remember what's out there,
and what's not out. (Laughter.)

Q That's okay. Don't worry about that. (Laughter.)

MR. HUBBARD: But obviously, the book -- the little briefing book -- it
gives a lot more details. You know, the President is going to be talking
about exactly how the -- you know, we're going tour a cellulosic laboratory
where they're doing all the research. I'm sure you'll learn -- we'll all
learn a lot about where we are in that process. And our goal is, by 2012,
to be able to produce ethanol from other plant waste at a competitive
price. And then we're going to see an incredible facility in Michigan,
making the solar panels.

And by the way, those are used -- it's my understanding, we'll learn more
about it. -- they're actually used in Iraq right now to assist with the
soldiers and some of their needs -- the products that are actually produced
in Michigan.

So I don't know about what more details are coming out. There's a lot more.
I mean, in the State of the Union, he only -- what was it -- two paragraphs
on energy. And obviously, he's going to give a whole speech on energy. So
there will be a lot more details.

MR. McCLELLAN: He'll be expanding in greater detail on what he outlined in
the State of the Union Address. And I think many Americans have not heard
about the cutting-edge technology that we're pursuing and that we're on the
edge of some real breakthroughs when it comes to energy efficiency.

Q Why not go even more ambitious with this, you know, like a Manhattan-type
project, with tighter deadlines, more money, faster timetable?

MR. HUBBARD: He's been very clear about what his goals are. And by the way,
when -- originally we were talking about cellulosic ethanol being
competitive by 2020. But in talking to the research folks at the Department
of Energy, they indicated if they could get additional funds, they felt
like they could -- that there was a very good chance that we could produce
competitive cellulosic ethanol by 2012.

And so the President responded to that, and dramatically increased the
funding from $90 million to $150 million this year, and intends to sustain
that. So we will meet that goal. 2012 is a very good -- you know, is not
that far away.

And then with lithium ion, again, the research folks at the Department of
Energy made it clear that we were close in terms of developing the lithium
ion battery, but additional resources would be helpful. So again, the
President agreed to -- for additional investment in the lithium ion battery
technology, to accelerate that process.

And in the solar area, again, significant -- and the details are in the
book -- but there's a significant increase in investment, again, responding
-- you know, the President went to the Department of Energy, went to Sam
Bodman, and said, how do we speed this up? They came back and said, this is
what you need to do in solar, this is what we need to do in ethanol, this
is what we need to do in battery technology, and we need this increased
commitment financially. And so the President has made that commitment. And
by 2015, we believe that we will be able to produce competitive solar
energy without a subsidy.

And by the way, we're doing it in coal technology, too, I should point out.
The President -- we also believe by 2015, that we will be able to produce
coal -- non-subsidized electric-producing coal plants that emit zero
pollution.

So again, I think those are very ambitious goals. And it's going to have a
huge impact on the country.

Q Let me argue the flip side. Why should the federal government be
investing in hybrids when they're flying off the dealer's lots? And how do
you respond to your Republican critics who say this is really industrial
policy coming out of the White House?

MR. HUBBARD: If you talk to anyone in the technology industry, they will
tell you that one of the many reasons America is the leading technology
country in the world is because of our -- one, it's our culture, because
we're entrepreneurial, number two, it's because we have very smart people,
but number three is because of basic research by the federal government.
That has a huge spinoff impact on technology in America. And that's why --
I'm getting a little bit off the subject, but this is important. That's why
the President is committed to double the National Science Foundation
research over the next 10 years, because that's so important to technology.

And basic research will -- you know, the market doesn't -- the marketplace
-- the free marketplace doesn't work for basic research, because you don't
get the returns on basic research like you do in applied research. And so
companies won't put the money into basic research. And that's why it's
imperative that the federal government do it with taxpayer money.

Q Some of the critics say, though, that what you're proposing is all
incentives, and that maybe you need to do some things like tighten up
regulations and change the CAFE standards, and things like that. Why not
pursue that approach, as well?

MR. HUBBARD: Well, as you know, we've recommended -- and there's going to
be a CAFE increase for light trucks and -- and SUVs, right. That begins in
2007, and we proposed increasing it further after 2007. We don't control
the -- we don't control the CAFE standards for automobiles. But we believe
what's most important is -- well, number one is the high cost of fuel is
encouraging people to buy more fuel efficient vehicles. And secondly,
what's most important is that we invest in technology so that the American
people can continue with the lifestyles they currently have, purchasing
fuel that is non-polluting and that comes from sources that are independent
from unreliable foreign countries.

Q Can I ask you about the crude oil market?

MR. HUBBARD: Yes, sure.

Q Talking about unreliable markets, there's a -- there's a situation in
Nigeria right now that's pushing crude oil prices higher. How concerned --
how close are you monitoring that situation? And how concerned are you that
this is going to create longer-term problems for prices?

MR. HUBBARD: Well, that's somewhat out of my lane in terms of the foreign
policy aspects. But obviously, we're -- from the economy's perspective, the
price of oil is very, very important. And that's why it's so critical that
we make the investments today so we have more energy independence in the
future.

The current situation where we're importing I think 58 percent of our crude
from overseas, and a significant portion of that from areas that are not
dependable, is not a good situation. Again, it took us awhile to get into
this situation, it's going to take us awhile to get out. But what's most
important is that we make the commitment to make the investment to achieve
energy independence as soon as possible.

Q Is there anything the U.S. is doing to alleviate --

Q -- percent of our crude approximately from overseas. By 2015, when you
see these technologies up to speed, you say they won't need incentives,
they won't need subsidies. What percentage will -- of crude will we get
from overseas at that point?

MR. HUBBARD: You know, I don't have that in my head right now, so I can't
tell you. But we do have -- you will recall, in the State of the Union, the
President set out a goal to reduce our dependence on Middle Eastern oil by
over 75 percent.

Q What I'm asking is, you have a -- you said that you'd use aggressive
timetables, 2015 being one of them. And since the goal is to reduce the
reliance on foreign sources of oil, it would seem you would also have an
estimate of by how much we would be reducing that dependence. So is there a
correlation you see between this advanced technology and our use of foreign
oil?

MR. HUBBARD: There definitely is, and there will start to be substitution.
But just to give you an example, we believe by 2012 we'll be producing
competitive ethanol from switch grass and other plant -- biomass, and other
plant waste like wood chips and corn stalks, et cetera. But it's not going
to have -- you know, the plants will begin in 2012, but it's going to build
up over time. It's just like right now, we produce about 4 billion gallons
of -- last year, around 4 billion gallons of ethanol. You know, we expect
that to probably grow a couple of billion gallons this year.

But again, we use 140 billion gallons of gasoline a year. So it's not going
to happen overnight. It's a gradual process.

Q Do you have any estimates of what's -- how it will happen?

MR. HUBBARD: Well, we -- I mean, obviously, internally, we show
projections, and that's how we come up with by 2025 that we will be able to
reduce the amount of petroleum that we important that will be equivalent to
over 75 percent of what's expected to be imported from the Middle East.

Q Are those projections public also?

MR. HUBBARD: Pardon me?

Q The internal projections, the time line, is that public?

MR. HUBBARD: I don't think it is. We did put out the -- and I can get that
for you -- the numbers that we used for 2025.

Q But the time line between now and then, that's not public?

MR. HUBBARD: We have not put that out, right. And you know, there's a lot
of uncertainty, and so much depends on what the price of oil is at that
point in time, and how aggressively the private sector invests. I happen to
believe that once this -- the technology breakthroughs occur, it's going to
happen much more quickly than the analysts think. Just like the -- did any
of us think 10 years ago that our teenage kids would have cell phones? I
don't think so. But it's remarkable what happens when you have
technological breakthroughs, and I see that in the energy area. But it's
obviously -- we rely on the economists and the energy analysts who provide
us with their projections.

Q There was a report on television last night about the -- about global
warming and demands contribution to the atmosphere, and so on, was -- is
the U.S. government -- does the U.S. care that the polar ice caps are
melting? And this whole sort of energy reform that you're putting forth,
does the environment play any part in it?

MR. HUBBARD: I'll let Scott take that one.

MR. McCLELLAN: What was your question.

Q It was a story on "60 Minutes" last night about global warming and --
what's the administration's position on any of this energy reform, or
whether it's --

MR. McCLELLAN: The United States is leading the way in investing in the
kind of technologies to help us address greenhouse gas emissions. That's
something we -- remember, we're on track to meet the President's goal of
reducing greenhouse gas intensity that he outlined. And we also have joined
in partnerships around the world to invest in research and development when
it comes to climate change. It's an issue that the President takes
seriously, and we announced the Asia Pacific Partnership, remember, and
that is an initiative to help lead the way to address some of these issues
associated with climate change.

Q Do you take Michael Crichton on the issue seriously?

MR. McCLELLAN: What's your question?

Q There's a story --

MR. McCLELLAN: I think what I can point to -- I'm not going to get into
talking about private meetings he's had, but look at the initiatives we've
outlined, look at the leadership the President is providing to address the
challenges of climate change. It is an issue that we take seriously, and
that's why we've been investing billions in research and development to
better understand the science of climate change. That's why we've initiated
partnerships, like the Asia Pacific Partnership, to address these issues,
as well.

Q But Michael Crichton as an expert or a novelist the President enjoys
reading?

MR. McCLELLAN: The President read his book, and he was glad to have the
opportunity to visit with him.

Q -- believes as expert opinion?

MR. McCLELLAN: I think you should look at what we outlined, Jessica. If you
want to ask the President about it, you are -- you're welcome to do that at
some point. But I'm not going to get into talking about private meetings
that he has.

Thanks.

Q Scott, I've got a question on -- Hamas --

MR. McCLELLAN: Well, I think that -- let me go back to what we said, that
the choices were for Hamas to make. Hamas has a choice before it. And the
international community has spelled out what that choice is, and the
Quartet laid it out in a statement. You cannot be a partner for peace if
your policy is the destruction of Israel, and if your policy is based on
the use of terror and violence. That's why the Quartet called on Hamas to
renounce violence, to disarm, and to acknowledge Israel's right to exist.
So this is really a choice for Hamas to make if they want to be a partner
in peace. There has been a policy in the Palestinian government in place
for years now, and as I pointed out last week, if that policy were to
change, then, obviously, the approach of the international community would
change, as well. And these are issues we stay in touch with the Europeans
on, and other governments, and we'll stay in touch with Israel on these
issues.

Q The timing of Israel cutting off the tax revenue different from what the
Quartet has recommended. So is there a concern about that?

MR. McCLELLAN: Well, we'll stay in touch with Israel on these issues. I
think that our view has been spelled out very clearly, not only from our
government, but in the statement of the Quartet, of which we are a member.
And this is really about Hamas, and the choice that Hamas has before it.
That's the issue. And Hamas needs to make the decision if they want to be a
partner in peace. And that's what we want. We want a partner in peace. And
you can't get to the two-state vision that the President outlined if both
parties aren't going to be a partner in peace.

Q Can I ask one more on -- legislation on NSA. Are you guys continue to
discuss with members of Congress moving forward on joint legislation that
would make White House happy?

MR. McCLELLAN: We do. As I indicated last week, we're open to ideas from
members of Congress, so long as they don't compromise this vital tool. This
is a -- the terrorist surveillance program helps us to connect the dots and
save lives and prevent attacks. And that's why it is a vital tool in our
war on terrorism. And I think most leaders understand that this is not only
a necessary tool, but a vital tool in our efforts to disrupt plots and
prevent attacks here at home. We will continue to listen to ideas from
members of Congress and we will continue to work with them on legislation
that would protect this vital program and address some of the issues that
have been raised.

Q Scott, is the President comfortable with this port ownership issue?

MR. McCLELLAN: Well, I actually talked about that last week. There is a
process that's in place to address these issues, when it comes to foreign
investment and national security issues. It's the CFIUS process. And the
CFIUS process -- during the CFIUS process transactions like this go through
a rigorous review process. And that's important. Secretary Chertoff talked
a little bit about it yesterday. But that's the process that is set up for
these types of matters. And they work to get assurances through that
process before proceeding forward.

Q He's not going to intervene in the process, then, despite calls from
members of Congress --

MR. McCLELLAN: I'm going the leave it where I did.

Thank you.

END 11:06 A.M. EST
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