Return to Transcripts main page

CNN Live Saturday

President Bush's Energy Proposals

Aired May 19, 2001 - 13:10   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DONNA KELLEY, CNN ANCHOR: In a nutshell, President Bush's energy plan attempts to create a supply that will meet demand now and in the future. Some of the proposed highlights include: easing of government regulations, construction of more power plants, more exploration of oil, gas and coal.

But getting there is a lot harder than it sounds. Peter Viles of CNN Financial News exposes some serious weakness in the nation's energy infrastructure.

(BEGIN VIDEOTAPE)

PETER VILES, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): The nation's electrical grid: in theory, a huge system that moves power from one region to another. In truth, it does not exist. Four separate regional grids are barely linked and near capacity. The Bush energy report warns of price pressures and reliability problems this summer in California, Long Island, the Great Lakes, the Southeast and New England.

CRAIG GOODMAN, PRESIDENT, NATIONAL ENERGY MARKETERS ASSOCIATION: Right now, we have very, very localized grids. We are forming regional grids which will be a big step forward, but we need to have a national grid, no question about it.

VILES: The president's recommendation: new government power to take land for new transmission lines and study the idea of creating a true national grid.

Another bottleneck: oil and gas pipelines.

(on camera): The pipeline problem is the proliferation of so- called boutique gasolines. This complex in northern New Jersey is served by a single pipeline that starts in Houston, and that one pipeline has to carry up to 30 different kinds of gasoline and up to 60 different petroleum products.

(voice-over): And that pipeline supplies 20 percent of the East Coast's petroleum products.

TOM GUZIKOWSKI, G.M. OPERATIONS, COLONIAL PIPELINE: The heating oil season in the winter is a concern for us. Aviation kerosene to airports along the East Coast has been a focus for Colonial to increase our capacity, and then the gasoline during the driving season in the summertime.

VILES: The Bush policy: speed up the permiting process and push for natural gas pipelines from Canada and Alaska.

A third bottleneck: at the nation's refineries. No new refinery has been built in 25 years. Capacity lags peak summer demand. The Bush policy: streamline permiting and environmental regulations.

The president today ordered federal agencies to expedite reviews of energy projects. Now the fight against all these proposals boils down to the same four words: not in my backyard.

Peter Viles, CNN Financial News, Linden, New Jersey.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com