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Jackson's Ex-Wife on the Stand; Tackling Steroid Abuse; Bush Lays Out Energy Proposals

Aired April 27, 2005 - 13:59   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.


MILES O'BRIEN, CNN ANCHOR: Drive all you want. We'll make more fuel. The president lays out his energy proposals live this hour. Our guest calls it a bait-and-switch tactic. See what you think.
KYRA PHILLIPS, CNN ANCHOR: "High Noon" in the Sunshine State. A new law says you can shoot if you're scared and not pay the consequences.

O'BRIEN: Forget Florida, avoid Arizona. We've got some tips on choosing the retirement location less traveled.

PHILLIPS: It's true that money doesn't grow on trees. But a bunch of vintage bills turned up under one. How it happened straight ahead.

O'BRIEN: From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

O'BRIEN: And we begin this hour with President Bush's attempt to light a fire under energy legislation that's been stuck in the congressional pipeline, so to speak. And we do mean stuck, with an up-front admission that nothing that happens in Washington will save you money at the pump anytime soon.

And with a long-term promise of more oil from Saudi Arabia in his back pocket, Mr. Bush is building on his energy platform in three major ways. He'll propose making nuclear power plants safer, investments for developers and owners. He'll propose building oil refineries on military bases that have been shut town, and he'll advocate procedures aimed at increasing U.S. supplies of natural gas, thereby driving down prices.

That's all in a speech due to start any second now at the Washington Hilton. A speech you'll see live here on LIVE FROM momentarily.

PHILLIPS: Earlier today, the president was hustled into a fortified bunker when it appeared an aircraft had entered White House airspace. Secret Service scrambled, the White House grounds were cleared.

Some helicopters went up to take a look around. And then came word that all was well, the alarm was false. The White House press secretary cites a radar anomaly and says that he thinks this was Mr. Bush's first trip to the bunker.

Don't forget, CNN provides the most reliable coverage of news that affects your security. Stay tuned to CNN day and night.

O'BRIEN: Well, it could be a make-or-break day for prosecutors in the Michael Jackson trial. Jackson's former wife, Debbie Rowe, expected on the stand to collaborate accusations made by Jackson's accuser and the boy's family.

We'll get an update on the case ahead. But first CNN's Sibila Vargas takes a closer look at Rowe and her little known past.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): She's the mother of Michael Jackson's two oldest children, and for three years was the megastar's wife. But for the most part, Debbie Rowe is still a mystery.

JIM MORET, JACKSON POOL LEGAL ANALYST: And that's really by design. She was a simple person before, and she still leads a simple life.

VARGAS: Born in Spokane, Washington, in 1958, Rowe's parents divorced when she was 15. Rowe then moved to California, finished high school, and began working for Dr. Arnold Klein.

MORET: They met when she was working as a receptionist at Michael Jackson's dermatologist office. They formed a friendship that was on another level. And it was primarily due to Michael Jackson's skin condition that they formed this friendship.

VARGAS: In November of 1996, after 15 years of friendship, Jackson and Rowe were married in a private civil ceremony in Sydney, Australia. But it was a passionless marriage, a Jackson biographer says. The two did not even live together.

J. RANDY TARABORRELLI, JACKSON BIOGRAPHER: I think their marriage was really for the purposes of public relations and image- making, but not for the purposes of, you know, love and romance.

MORET: Debbie Rowe was married so that she could produce children for Michael Jackson. I don't even know that marriage would have come into the picture had Michael Jackson's mother, Katherine, not interceded and felt that they should be married.

VARGAS: Ultimately, Rowe signed away her parental rights to both Prince Michael Jr. and Paris Michael Katherine.

MORET: She basically said, I have no visitation rights, I have no rights whatsoever . They're your children. Michael Jackson, you're the father, they're your children.

VARGAS: But by October of '99, the former doctor's assistant had filed for divorce. And now six years later, amid Jackson's child molestation trial, Rowe's parental rights have been reinstated. MORET: She has something at stake. She has continued support and she has the visitation and custody of her children at stake.

VARGAS: Sibila Vargas, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Athletes abusing steroids, it's under the spotlight once again. Congress has opened fresh hearings, this time focusing on football players.

Kimberly Osias following events on Capitol Hill -- Kimberly.

KIMBERLY OSIAS, CNN CORRESPONDENT: That's exactly right, Kyra. Well, this time, the Committee on Government Reform is drilling down on the NFL.

Former Pittsburgh Steeler Steve Courson, who admitted to using steroids decades ago, spoke out about how the tests can be beat. Courson says some of the new designer drugs are so sophisticated that they don't even leave a fingerprint and are virtually undetected.

Unlike baseball, the NFL has randomly tested players, even on the off-season, for the past 15 years. But that's not enough, says Courson. As a result, he says it's the next generation of athletes that are at risk.

(BEGIN VIDEO CLIP)

STEVE COURSON, FMR. NFL PLAYER: I have given hundreds of lectures and seminars in schools. And the most asked question I get from kids at the end of my seminars is -- far and away what they ask me the most, they ask me do they think I could have made it in the NFL without drugs. And I think that should tell us a lot.

(END VIDEO CLIP)

OSIAS: It is these very young people that are of concern to the committee. Committee members cite 500,000 young girls and boys that have admitted to using steroids at least once.

Connecticut Representative Christopher Shays wants to see standards like the International Olympic Committee has in place. High school coach Willie Stewart sees pressure every day. He says young athletes aiming at scholarships think they need to cheat to get there.

(BEGIN VIDEO CLIP)

WILLIE STEWART, HIGH SCHOOL FOOTBALL COACH: Some of the student athletes want a quick fix. Unfortunately, there are no quick fixes. Meaning, down the road, the student athletes who use performance- enhancing drugs are at risk for premature heart attacks, strokes, liver tumors, kidney failure and other health complications.

(END VIDEO CLIP) OSIAS: So far, the NFL has been cooperating in supplying information about how the testing is done and the number of positive results. But committee members are expected to continue peppering the organization with tough questions of just how players can get around it -- Kyra.

PHILLIPS: Kimberly, just a question about the timing. Why is this happening now?

We understand why baseball players had to go before Congress and give testimony, because of all of the ongoing court cases and accusations and the question about the records that had been broken and if indeed steroids were being used. But it seems like just now out of the blue football players are testifying.

OSIAS: Well, I think that's a very good question, Kyra. It's sort of a multi-pronged approach. And obviously the naysayers would claim that this is political grandstanding.

But when I spoke to the committee spokesperson, he said, look, we are certainly seeing a tightening up and some changes taking place. And this is such a pervasive problem, it has to be done in stages. And at least progress is being made.

PHILLIPS: Kimberly Osias live from Washington. Thanks.

O'BRIEN: News "Across America" now.

Rescuers call off the search for a pilot who crashed into lake Michigan. The 20-year-old pilot made a frantic call to 911 after his plane ran out of gas and went down in the lake on Monday. The Coast Guard believes he could have survived in the 44-degree water for about four hours.

More outrage after another child is handcuffed at school. This time, it happened to a 7-year-old boy in West Virginia.

The police chief was called to the school because the child was reportedly running from teachers. When he arrived, he said the boy started kicking him, prompting him to handcuff him. The boy's parents have filed a complaint. Last month, a similar controversy erupted after a 5-year-old Florida girl was handcuffed at school.

Conservative commenter Laura Ingraham is fighting a new battle. Breast cancer this time. Ingraham was diagnosed last week during a routing visit to her doctor. On her Web site, the 40-year-old commentator said the diagnosis came as a total shock.

PHILLIPS: Well, it was supposed to happen about two minutes ago, running a little late. But as soon as the president steps up to the podium we will take the event live. He'll be touting his energy policy. We'll listen to the president once it begins.

Also, live from "Security Watch" up next, chemical sites are obvious targets for terrorists. Well, today experts offer up their ideas to keep you safer. O'BRIEN: And another break in the Michael Jackson trial is expected this hour. Find out what's going on in court as his ex-wife takes the stand.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

O'BRIEN: All right. Live pictures. This is the Washington Hilton. And there is the president of the United States.

The Small Business Administration holding a special conference for small business owners today. It is that particular venue at which the president will lay out specifics of his energy policy and push hard on Congress to try to get it rolling.

We, of course, are going to take that speech as it happens in its entirety. We suspect there's going to be some introductions. And so what we'll do is step away from it for a moment. But we'll be keeping an eye on those introductions, bring you the president as soon as he begins his address -- Kyra.

PHILLIPS: So while we wait for the president's address, we're also continuing our weeklong series, "Never to Late to Save for Retirement." And today, some things to keep in mind when selecting an area to live out your golden years. More from personal finance editor Gerri Willis.

(BEGIN VIDEO TAPE)

ROBBIE RISNER, SAN ANTONIO RETIREE: I don't think immediately of anything we dislike about San Antonio.

GERRI WILLIS, CNN FINANCE EDITOR (voice-over): San Antonio, Texas, is a place that Robbie and Dot Risner already knew and loved. As a city, it wasn't the kind of place where they ever thought they'd retire. But the more they thought about it, the better it sounded.

DOT RISNER, RETIREE: There are lots of good places to eat here. And we do that a lot. We go out for dinner a lot.

And the river walk is such a big attraction. When people come to visit us, the first thing they want to do is go to the river walk. The children like Six Flags. So they have things to offer for all ages.

WILLIS: Today, more people are deciding that traditional retirement communities aren't right for them. Many baby boomers want to live in a more active environment.

PROFESSOR WARREN BLAND, CALIFORNIA STATE UNIVERSITY: Now there's a greater interest in recreational opportunities beyond the, you know, playing golf and things like that. People are living longer and they're going to probably be in their retirement spot for 20 or 30 years.

WILLIS: Robbie and Dot's first concern when choosing a place to retire was access to good medical care.

D. RISNER: It's hard to beat BAMC, which is Brooks Army Medical Center. And it's huge. And they have such good care there for all of us.

WILLIS: San Antonio is one of many American cities, including Portland, Oregon and Boulder, Colorado, that offer retirees a high quality of life with a low cost of living, and top notch health care, unlike some better established Sun Belt destinations.

BLAND: Well, let's say you pick a retirement area in southern Florida. You might find it's become expensive, crowded, perhaps less desirable after only a few years of living there.

D. RISNER: We were a little apprehensive about living in a big community of people all the time. We thought it would be so bustly and busy and all. But the people are what make this so desirable.

R. RISNER: They have a 24-hour heated swimming pool, a woodworking shop, all kinds of things, party rooms, dance floors. There's so many things help you live your retirement years and enjoy them.

WILLIS: So far, retirement in San Antonio has exceeded all of the Risners' expectations.

R. RISNER: Without knowing it early on, it is.

D. RISNER: That's right. We couldn't have designed it any better, but we wouldn't have known to have asked for it.

(END VIDEO TAPE)

PHILLIPS: Well, that was Gerri Willis reporting. And tomorrow, Gerri looks at whiz kids. Meet some young adults who prove it's never too late to get an early start on retirement planning.

And once again, we want to remind you, we are waiting for the president of the United States to step up to the podium and give the energy speech that we have been telling you about. We're going to carry it live as soon as that happens, and I think we are getting closer.

We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: And this just in. He's the man that planned to bomb LAX airport on Y2K. We're talking about the Algerian-borne suspected al Qaeda operative, today convicted on a terrorism charge.

Rusty Dornin live from Seattle with more on what's taken place -- Rusty. RUSTY DORNIN, CNN CORRESPONDENT: Well, big surprise in the courtroom today, Kyra. Ahmed Ressam, also known as the millennium bomber, he's the one that tried to smuggle explosive, 125 pounds worth of explosives, into Seattle before the millennium, December 14, 199.

He was busted. Apparently, he was on his way to LAX airport to -- planning to blow up and kill as many people as possible.

Now, after he was convicted, he apparently helped the government locate and identify more than 100 other terrorists. He gave backgrounds on cells. He gave a lot of information and cooperation in hopes of gaining a more lenient sentence.

Now, his sentence could have been 65 years or more. The government started to make a deal with him, and it's unclear -- they were arguing today about what that was, 25, 27 years. But the government was angry because they said he went back on his agreement and he wasn't giving them anymore information.

But the bottom line is this judge has continued the sentencing for Ahmed Ressam, saying that Ressam perhaps should think about cooperating with the government again and should be more forthcoming on two terrorists cases that are coming up, and that that would be a big factor in what this judge gives him as a sentence.

So at the last minute, the judge gave the defense the opportunity to think about this. They had a little conversation. So they're going put this off until July 28 -- Kyra.

PHILLIPS: All right. We'll continue to follow it. Rusty Dornin live out of Seattle. Thank you so much.

Now to the president of the United States and his energy speech that we have been talking to you about.

Let's listen in.

(INTERRUPTED BY LIVE EVENT)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... at the same discounts that big businesses can. As small-business owners, you know that a dollar should be spent wisely or not at all. That same standard ought to apply to the federal government when it comes time to spending your money.

(APPLAUSE)

I've submitted a disciplined budget to the Congress that meets our priorities, that restrains federal spending and keeps us on track to cut the deficit in half by 2009.

I appreciate the fact that the Senate has passed a version of the budget, and the House has passed a version of the budget.

Now it's time for them to come together and pass a budget resolution this week. By restraining federal spending, by keeping taxes low, we'll keep this economy growing and keep the innovative spirit strong.

But in order to make sure our economy grows, in order to make sure people are still able to find an opportunity, in order to encourage small-business sector growth and vitality, we need to address a major problem facing our country, and that is our nation's growing dependence on foreign sources of energy.

(APPLAUSE)

Technology is allowing us to better use our existing energy resources. And in the years ahead, technology will allow us to create entirely new sources of energy in ways earlier generations could never dream.

Technology is the ticket, is this nation's ticket to greater energy independence, and that's what I want to talk about today.

I fully understand that many folks around this country are concerned about the high price of gasoline. I know small-business owners are.

I went to Fort Hood the other day -- it's right around the corner from Crawford -- and sat down with some of our troops and we had dinner -- lunch.

In Texas, they call dinner...

(LAUGHTER)

... the noon meal and supper the evening meal.

(LAUGHTER)

(APPLAUSE)

I'm trying to standardize the language.

(APPLAUSE)

We sat down for lunch. And I was asking the soldiers, what was on your mind, what was on their mind, and a fellow said, "Why don't you lower gas prices -- gasoline prices, Mr. President?" Obviously, gasoline prices were on his mind.

I said, "I wish I could. If I could, I would."

I explained to him that the higher cost of gasoline is a problem that has been years in the making.

To help in the near term, we'll continue to encourage oil- producing countries to maximize their production, to say to countries that have got some excess capacity, "Get it on the market, so you do not destroy the consumers that you rely upon to buy your energy."

We're doing everything we can to make sure our consumers are treated fairly, that there is no price gouging.

Yet the most important thing we can do today is to address the fundamental problem of our energy situation. That's the most important thing we can do.

And the fundamental problem is this: Our supply of energy is not growing fast enough to meet the demands of our growing economy.

Over the past decade our energy consumption has increased by more than 12 percent. While our domestic production has increased by less than one-half of 1 percent.

The growing economy causes to us consume more energy, and yet we're not producing energy here at home, which means we're reliant upon foreign nations. And at the same time we've become more reliant upon foreign nations, the global demand for energy is growing faster than the global supply. Other people are using more energy as well, and that's contributed to the rise in prices.

Because of our foreign energy dependence, our ability to take actions at home, that will lower prices for American families is diminishing.

Our dependence on foreign energy is like a foreign tax on the American people. It's a tax our citizens pay every day in higher gasoline pleases and higher costs to heat and cool their homes. It's a tax on jobs, and it's a tax that's increasing every year.

The problem is clear. This problem did not develop overnight, and it's not going to be fixed overnight.

But it's now time to fix it. See, we got a fundamental question we got to face here in America: Do we want to continue to grow more dependent on other nations to meet our energy needs, or do we want to do what is necessary to achieve greater control of our economic destiny?

I made my decision. I know what is important for this country to become less dependent on foreign sources of energy, and that requires a national strategy.

Now, when I first got elected I came to Washington and I said we need a national strategy. And I submitted a national strategy to the United States Congress. And it's been stuck. And now it's time for the Congress to pass the legislation necessary for this country to become less dependent on foreign sources of energy.

(APPLAUSE)

And the most important component of our strategy is to recognize the transformational power of technology. Over the last quarter century, technology has radically changed the way we and work.

Think about this: Just 25 years ago -- for a guy 58 years old it doesn't seem all that long ago. If you're 24 years old, it's a heck of a long time ago. (LAUGHTER)

In the 1980s, most Americans used typewriters instead of computers. We used pay phones instead of cell phones.

We used carbon paper instead of laser printers. We had bank tellers instead of ATMs. We had Rolodexes instead of PDAs. For long family trips, we played the license plate game...

(LAUGHTER)

(APPLAUSE)

... instead of in-car DVDs.

(LAUGHTER)

We've seen a lot of change in a quick period of time, haven't we? I believe the next 25 years the changes are going to be even more dramatic.

Our country is on the doorstep of incredible technological advances that will make energy more abundant and more affordable for our citizens.

By harnessing the power of technology, we're going to be able to grow our economy, protect our environment and achieve greater energy independence. That's why I'm so optimistic about our future here in America.

The first essential step toward greater energy independence is to apply technology to increase domestic production from existing energy resources. And one of the most promising sources of energy is nuclear power.

(APPLAUSE)

Today's technology has made nuclear power safer, cleaner and more efficient than ever before. Nuclear power is now providing about 20 percent of America's electricity with no air pollution or greenhouse gas emissions.

Nuclear power is one of the safest, cleanest sources of power in the world, and we need more of it here in America.

Unfortunately, America has not ordered a new nuclear power plant since the 1970s. France, by contrast, has built 58 plants in the same period, and today France gets more than 78 percent of its electricity from safe, clean nuclear power.

It's time for America to start building again. That's why three years ago my administration launched the Nuclear Power 2010 initiative. This is a seven-year, $1.1 billion effort by government and industry to start building new nuclear power plants by the end of the decade. One of the greatest obstacles we face to building new plants is regulatory uncertainty, which discourages new plant construction. Since the 1970s, more than 35 plants were stopped at various stages of planning and construction because of bureaucratic obstacles.

No wonder -- no wonder the industry is hesitant to start building again.

We must provide greater certainty to those who risk capital if we want to expand a safe, clean source of energy that will make us less dependent on foreign sources of energy.

To do so, I've asked the Department of Energy to work on changes to existing law that will reduce uncertainty in the nuclear plant licensing process. It could also provide federal risk insurance that will protect those building the first four new nuclear plants against delays that are beyond their control.

A secure energy future for America must include more nuclear power.

(APPLAUSE)

A secure energy future for America also means building and expanding American oil refineries.

Technology has allowed us to better control emissions and improve the efficiency and environmental performance of our existing refineries, yet there have been no new oil refineries built in the United States since 1976. And existing refineries are running at nearly full capacity.

Our demand for gasoline grows, which means we're relying more on foreign imports of refined product. To encourage the expansion of the existing facilities, the EPA is simplifying rules and regulations.

I will direct federal agencies to work with states to encourage the building of new refineries on closed military facilities, for example, and to simplify the permitting process for such construction.

By easing the regulatory burden, we can refine more gasoline for our citizens here at home. That will help assure supply and reduce dependence on foreign sources of energy.

(APPLAUSE)

Advances in technology will also allow us to open up new areas to environmentally responsible exploration for oil and natural gas, including the Arctic National Wildlife Refuge.

(APPLAUSE)

Technology now makes it possible to reach ANWR's hydrocarbons by drilling on just 2,000 acres of the 19 million acres of land. That's just one-tenth of 1 percent of ANWR's total area.

Because of the advances in technology, we can reach the oil deposits with almost no impact on land or local wildlife.

Developing this tiny section of ANWR can eventually yield up to a million barrels of oil per day. That's a million barrels less that we're dependent from foreign sources of energy.

Listen, the more oil we can produce in environmentally sensitive ways here at home, the less dependent our economy is, the less reliant we are on other parts of the world.

Technology is allowing us to make better use of natural gas. Natural gas is an important source of energy for industries like agriculture or manufacturing our power production.

The United States has the sixth largest proven reserves of natural gas in the world, and we'll do more to develop this vital resource. That's why I signed into law a tax credit to encourage a new pipeline to bring Alaskan natural gas to the rest of the United States.

(APPLAUSE)

Technology is also helping us to get at reserves of natural gas that cannot be easily reached by pipelines. Today, we're able to supercool natural gas into liquid form so it can be transport on tankers and stored more easily.

Thanks to this technology, our imports of liquefied natural gas nearly doubled in 2003. Last year, imports rose another 29 percent.

But our ability to expand our use of liquefied natural gas is limited because today we have just five receiving terminals and storage facilities around the United States.

To take advantage of this new technology, federal agencies must expedite the review of the 32 proposed new projects that will either expand or build new liquefied natural gas terminals.

In other words, there's projects on the books and we're going to get after the review process.

Congress should make it clear to the Federal Energy Regulatory Commission its authority to choose sites for new terminals, so we can expand our use of liquefied natural gas.

Technology also allows us to use our most abundant energy source in a smart way.

America has enough coal to last for 250 years, but coal presents an environmental challenge.

To make cleaner use of this resource, I have asked Congress for more than $2 billion over 10 years for my coal research initiative. It's a program that will encourage new technologies that remove virtually all pollutants from coal-fired power plants.

My Clear Skies initiative will result in more than $52 billion in investment and clean coal technologies by the private sector.

To achieve greater energy dependence, we must put technology to work so we can harness the power of clean coal.

The second essential step toward greater energy independence is to harness technology to create new sources of energy.

Hydrogen is one of the most promising of these new sources of energy.

Two years ago, my administration launched a crash program called the Hydrogen Fuel Initiative. We've already dedicated $1.2 billion over five years to this effort to develop hydrogen-powered fuel cells.

We know that when hydrogen is used in a fuel cell, it has the power to -- potential to power anything from a cell phone, to a computer, to an automobile that emits pure water instead of exhaust fumes.

I've asked Congress for an additional $500 million over five years to help move advanced technology vehicles from the research lab to the dealership lot.

See, I want the children here in America -- you two that are sitting there -- to be able to take your driver's test in a completely pollution-free car that will make us less dependent on foreign sources of energy.

(APPLAUSE)

To help produce fuel for these cars, my administration has also launched a nuclear hydrogen initiative in an effort to develop advanced nuclear technologies that can produce hydrogen fuels for cars and trucks.

My budgets have dedicated $35 million over the past three years and will continue this effort.

In other words, we're developing new technologies that will change the way we drive.

In other words, we're developing new technologies that will change the way we drive. See, I know what we're going to need to do for a generation to come. We need to get on a path away from the fossil fuel economy. If we want to be less dependent on foreign sources of energy, we must develop new ways to power automobiles. My administration is committed to finding those news ways, and we're working with industry to do so.

Ethanol is another promising source of energy. I like the idea of people growing corn that gets converted into fuel for cars and trucks. Our farmers can help us become less dependent on foreign oil.

(APPLAUSE)

Technology is now under development that may one day allow us to get ethanol from agricultural and industrial waste.

We can produce another renewable fuel, bodies, from leftover fats and vegetable oils. I mean, we're exploring a lot of alternatives. Ethanol and biodiesel have got great potential. And that's why I've supported a flexible, cost-effective renewable fuel standard as part of the energy bill. This proposal would require fuel producers to include a certain percentage of ethanol and biodiesel in their fuel and would increase the amount of these renewables in our nation's fuel supply. Listen, more corn means more ethanol, which means less imported oil.

Technology can also help us tap into a vital source that flows around us all the time and that is wind. That's why I've asked Congress to provide $1.9 billion over 10 years for tax incentives for renewable energy technologies like wind, as well as residential solar heating systems and energy produced from landfill gas and biomass.

(APPLAUSE)

An energy strategy must be comprehensive, all aimed at making us less dependent. A third essential step toward greater energy independence is to harness the power of technology so we can continue to become better conservers of energy. Already, technology is helping us grow our economy while using less energy. For example, in 1997, the U.S. steel industry used 45 percent less energy to produce a ton of steel than it did in 1975. The forest and paper industry used 21 percent less energy to produce a ton of paper. In other words, we're making advances in conservation. And in the years ahead, if we're smart about what we do, we can become even more productive while conserving even more energy.

Technological advances are helping develop new products that give our consumers the same and even better performance at lower cost by using less energy. Think about this, you can buy a refrigerator that uses the same amount of power as a 75-watt light bulb. It's a remarkable advance when it comes to helping consumers save money on energy. Advances in energy-efficient windows keep hot and cold air in and prevent your dollars from flowing out.

(LAUGHTER)

High efficiency light bulbs last longer than traditional ones, while requiring less electricity.

These and other technological advances are saving our consumers a lot of money, and there's more to be done. Let me tell you this, in 2001, the average American family spent about half as much to heat his home as it did in 1978. Think about what's possible over the next 25 years. We can imagine a day when technologies like solar panels, high-efficiency appliances, and advanced installation will allow us to build zero-energy homes that produce as much energy as they consume. That's the promise that technology holds for us all.

And as we make our homes more energy efficient, we're doing the same for our automobiles. Hybrid vehicles are one of the most promising technologies immediately available to consumers. These cars are powered by a combination of gasoline and electricity. They provide better fuel efficiency, ultra-low emissions and exceptional performance. And their electronic systems are paving the way for tomorrow's hydrogen-powered vehicles.

We're encouraging automakers to produce a new generation of modern, clean diesel cars and trucks. My administration has issued new rules that will remove more than 90 percent of the sulfur in diesel fuel by 2010. Clean diesel technology will allow consumers to travel much farther on each gallon of fuel, without the smoke and pollution of past diesel engines. We've proposed $2.5 billion over 10 years in tax credits that will encourage consumers to buy energy- efficient hybrid cars and trucks, and we need to expand these incentives to include clean diesel vehicles, as well.

(APPLAUSE)

As we conserve energy at home and on the road, technology will help us deliver it more efficiently. New technologies such as superconducting power lines can help us bring our electrical grid into the 21st century, and protect American families and businesses from damaging power outages. Some of you who live in the Midwest and on the East Coast know what I'm talking about -- damaging power outages. We have modern interstate grids for our phone lines and our highways. It's time for America to build a modern electricity grid.

(APPLAUSE) The electricity title is an important part of the energy bill. As a matter of fact, a lot of which I've discussed so far is an important part of the energy bill that needs to get passed by the United States Congress before August of this year.

(APPLAUSE)

The House acted, and I appreciate the leadership in the House. Now it's time for the United States Senate to act. And then it's time for them to get together and iron out their differences and get me a bill so I can sign.

The fourth essential step toward greater energy independence is to make sure other nations can take advantage in advances -- take advantage of the advances in technology to reduce their own demand. Listen, we need to remember that the market for energy is a global one, and we're not the only large consumer. Much of the current projected rise in energy prices is due to rising energy consumption in Asia. As Asian economies grow, their demand for energy is growing. And the demand for energy is growing faster than the supply of energy is increasing. And as small business people, you understand what happens when demand is larger than supply -- you hope that's the case for the products you produce.

(LAUGHTER)

Our costs -- our prices are going up. It is in our interest to help these countries become more energy self-sufficient; that will help reduce demand, which will help take pressure off price, and at the same time help protect the environment. I'm looking forward to going to a G-8 meeting in July in Great Britain. And there I'm going to work with developed nations, our friends and allies to help developing nations, countries like China and India to develop and deploy clean energy technology. Like us, some of these countries have got substantial coal reserves. We need to find practical ways to help these countries take advantage of clean coal technology.

As well, we will explore ways we can work with like-minded countries to develop advance nuclear technologies that are safe, clean and protect against proliferation. With these technologies, with the expansion of nuclear power, we can relieve stress on the environment and reduce global demand for fossil fuels. That would be good for the world, and that would be good for American consumers, as well.

(APPLAUSE)

This strategy will work for our children and our grandchildren. We should have put this in place several decades ago. We haven't had a national energy strategy in this country for a long period of time. I tried to get the Congress to pass it four years ago. Now is the time for them to act. For the sake of this country, for the sake of a growing economy, and for the sake of national security, we've got to do what it takes to expand our independence. We must become less dependent. And there's no doubt in my mind that technology is going to help us achieve that objective.

One reason why I believe this so strongly is because free societies are able to adjust to the times. And we're the freest of free societies. We're a society where it doesn't matter where you were raised or where you're from; if you've got a dream, you can pursue it and realize your dream.

(APPLAUSE)

Our country has always responded to challenges...

O'BRIEN: All right, we've apparently lost the president's signal. We'll try to get that back. In the meantime, just to wrap it up, the president saying the technology is the ticket to greater energy independence.

And I'll tell you what. Let's go back to the president. We have our signal and then we'll wrap that up in just a moment.

BUSH: I like my hydrogen-powered automobile. And I produced a little extra energy this year from my home. Our farmers are going to be saying, you know, the crops up and we're less dependent. Now's the time to put that strategy in place. Now's the time to do the right thing for America. Now's the time to set aside political differences and focus on what is good for the United States of America and with your help, we'll achieve that.

God bless you all. Thanks for coming. O'BRIEN: That was the president of the United States, speaking before small business owners at the Washington Hilton, laying out what is familiar really to us all, since we've been talking about his energy proposals for quite some time, bottled up in Congress, as the president repeatedly referred to.

The president talking about a full range of possibilities for coming up with some solutions to the nation's energy problems. Nuclear power. Increased building of refineries, he says, perhaps on some abandoned military bases. Drilling in the Alaska National Wildlife preserve. Clean coal technology. Hydrogen. Ethanol. A few words about conservation. Pretty much a broad range of policy initiatives out there.

We have an expert who's been listening to it all, sort of sitting on the other side of the aisle, if you will. Joining us now is Joseph Romm. He was a Department of Energy official during the Clinton administration. Mr. Romm, good to have you with us.

JOSEPH ROMM, FMR. DEPT. OF ENERGY OFFICIAL: Howdy.

O'BRIEN: You know, what was missing from this speech, it seems to me, is when the president talks about conservation, and he didn't talk much about, but he when he talks about conservation, it sounds painless. It just means buying refrigerators that only use the amount of energy of a 75 watt light bulb or a new doo-dad that uses less power. He doesn't really call upon Americans to tighten their belt, as far as their consumption of energy. Why not?

ROMM: Well, you know, most of this talk is very nice rhetoric, but it's is a bait-and-switch. Americans are concerned about high gasoline prices and oil imports and this proposal doesn't do anything. As you say, the president has within his power to make vehicles more efficient today and that's what we need, fuel economy standards for vehicles. It worked in the 1970's and 1980's and it can work today. And the president talks a lot about technology, but by and large, he's cutting the technology for most clean energy technologies.

O'BRIEN: All right. Mr. Romm, we're going to have -- I'm sorry. The timing is such that we need to take a quick break right now. We're not done. If I could ask to you stand by, and viewers to stand by, we'll continue our discussion with Joseph Romm about the president's energy initiative after a short break.

(COMMERCIAL BREAK)

O'BRIEN: The president addressing us just a little while ago, talking about his energy policy, trying to light a fire under Congress to get that legislation passed.

We are talking with Jospeh Romm, who was a Department of Energy official during the Clinton administration, who was listening to the speech. The president says, Mr. Romm, that technology is the ticket to greater energy independence. True or false?

ROMM: It's half true. We've spent a lot of money on technology; now we need to pass regulations which the president has fully in his control to have us use start using those technologies. So you need technologies and then you need fuel efficiency standards. You know, the president has talked a lot about nuclear power. Nuclear power won't reduce our dependence on imported oil. The president's talked about liquefied natural gas. That's so that we can import more natural gas. So you can't get more energy independent through liquefied natural gas.

So you see a lot of jargon and rhetoric in what the president says, but it's very simple. If you want to reduce dependence on imported oil, you make United States cars more fuel efficient. The president of the United States has the authority to do that today. If the president cared about oil prices and dependence on Persian Gulf oil, he would enact higher fuel efficiency standards.

O'BRIEN: All right, let's talk about renewables a little bit. The president talked a little about about, you know, hydrogen economy, which would go to ultimately to the goal of reducing our dependence on foreign oil and the price that we pay at the pump.

So far, the United States has done very little in this regard. As a matter of fact, we pulled some numbers out. About six percent of all our energy combined -- and this is really, once again, talking about things that are outside of our vehicles -- comes from renewable sources, where you look at other countries, Germany and Japan, where they are really leading the world in renewable use of solar power or wind power, really have made great strides.

Are we missing the boat? Is the United States missing the boat and perhaps a technological revolution that could lead to really an economic bonanza?

ROMM: Absolutely. The United States is really giving up leadership in wind power and solar energy to other countries that are much more aggressive in pushing renewables. This country, the president, this Congress, refuses to adopt a renewable standard to encourage the use of renewable power. So -- and the president himself, he keeps talking about technology, technology, technology. His budget cuts the budget for renewable energy, for energy efficiency.

He boosts the budget for hydrogen power, but I wrote a whole book, "The Hype About Hydrogen," which explains why hydrogen is decades away from being realistic as a car. And, you know, the president talks about getting off of fossil fuels. Hydrogen is not an energy source. 95 percent of hydrogen today comes from natural gas, comes from fossil fuel, so...

O'BRIEN: Well, he did -- to his credit, he did mention that there could be a way of using nuclear power to make that hydrogen fuel, which would, of course, take the fossil fuels out of the link there. Let's button up on one final thought here.

ROMM: Sure.

O'BRIEN: This whole notion of building more refineries. Refineries haven't been built since 1976 or something in the United States. Is -- and perhaps using military property, abandoned bases. Is this a proposal that really speaks to a demand out there? I mean, if the oil companies wanted to build refineries, wouldn't they?

ROMM: Yes, I think it's kind of just a placebo. How can building a refinery reduce our dependence on imported oil? Refineries just refine the oil we import. If you want to reduce dependency on imported oil, use less oil, then you don't have to refine as much. You don't have to build more refineries. So I tend to think that that proposal is kind of a placebo or a smokescreen.

O'BRIEN: All right. Joseph Romm, joining us in Washington.

Also in Washington, I want to pick up this discussion -- I'll have you stand by -- is Barbara Starr, our senior Pentagon correspondent.

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


Aired April 27, 2005 - 13:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Drive all you want. We'll make more fuel. The president lays out his energy proposals live this hour. Our guest calls it a bait-and-switch tactic. See what you think.
KYRA PHILLIPS, CNN ANCHOR: "High Noon" in the Sunshine State. A new law says you can shoot if you're scared and not pay the consequences.

O'BRIEN: Forget Florida, avoid Arizona. We've got some tips on choosing the retirement location less traveled.

PHILLIPS: It's true that money doesn't grow on trees. But a bunch of vintage bills turned up under one. How it happened straight ahead.

O'BRIEN: From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

O'BRIEN: And we begin this hour with President Bush's attempt to light a fire under energy legislation that's been stuck in the congressional pipeline, so to speak. And we do mean stuck, with an up-front admission that nothing that happens in Washington will save you money at the pump anytime soon.

And with a long-term promise of more oil from Saudi Arabia in his back pocket, Mr. Bush is building on his energy platform in three major ways. He'll propose making nuclear power plants safer, investments for developers and owners. He'll propose building oil refineries on military bases that have been shut town, and he'll advocate procedures aimed at increasing U.S. supplies of natural gas, thereby driving down prices.

That's all in a speech due to start any second now at the Washington Hilton. A speech you'll see live here on LIVE FROM momentarily.

PHILLIPS: Earlier today, the president was hustled into a fortified bunker when it appeared an aircraft had entered White House airspace. Secret Service scrambled, the White House grounds were cleared.

Some helicopters went up to take a look around. And then came word that all was well, the alarm was false. The White House press secretary cites a radar anomaly and says that he thinks this was Mr. Bush's first trip to the bunker.

Don't forget, CNN provides the most reliable coverage of news that affects your security. Stay tuned to CNN day and night.

O'BRIEN: Well, it could be a make-or-break day for prosecutors in the Michael Jackson trial. Jackson's former wife, Debbie Rowe, expected on the stand to collaborate accusations made by Jackson's accuser and the boy's family.

We'll get an update on the case ahead. But first CNN's Sibila Vargas takes a closer look at Rowe and her little known past.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): She's the mother of Michael Jackson's two oldest children, and for three years was the megastar's wife. But for the most part, Debbie Rowe is still a mystery.

JIM MORET, JACKSON POOL LEGAL ANALYST: And that's really by design. She was a simple person before, and she still leads a simple life.

VARGAS: Born in Spokane, Washington, in 1958, Rowe's parents divorced when she was 15. Rowe then moved to California, finished high school, and began working for Dr. Arnold Klein.

MORET: They met when she was working as a receptionist at Michael Jackson's dermatologist office. They formed a friendship that was on another level. And it was primarily due to Michael Jackson's skin condition that they formed this friendship.

VARGAS: In November of 1996, after 15 years of friendship, Jackson and Rowe were married in a private civil ceremony in Sydney, Australia. But it was a passionless marriage, a Jackson biographer says. The two did not even live together.

J. RANDY TARABORRELLI, JACKSON BIOGRAPHER: I think their marriage was really for the purposes of public relations and image- making, but not for the purposes of, you know, love and romance.

MORET: Debbie Rowe was married so that she could produce children for Michael Jackson. I don't even know that marriage would have come into the picture had Michael Jackson's mother, Katherine, not interceded and felt that they should be married.

VARGAS: Ultimately, Rowe signed away her parental rights to both Prince Michael Jr. and Paris Michael Katherine.

MORET: She basically said, I have no visitation rights, I have no rights whatsoever . They're your children. Michael Jackson, you're the father, they're your children.

VARGAS: But by October of '99, the former doctor's assistant had filed for divorce. And now six years later, amid Jackson's child molestation trial, Rowe's parental rights have been reinstated. MORET: She has something at stake. She has continued support and she has the visitation and custody of her children at stake.

VARGAS: Sibila Vargas, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Athletes abusing steroids, it's under the spotlight once again. Congress has opened fresh hearings, this time focusing on football players.

Kimberly Osias following events on Capitol Hill -- Kimberly.

KIMBERLY OSIAS, CNN CORRESPONDENT: That's exactly right, Kyra. Well, this time, the Committee on Government Reform is drilling down on the NFL.

Former Pittsburgh Steeler Steve Courson, who admitted to using steroids decades ago, spoke out about how the tests can be beat. Courson says some of the new designer drugs are so sophisticated that they don't even leave a fingerprint and are virtually undetected.

Unlike baseball, the NFL has randomly tested players, even on the off-season, for the past 15 years. But that's not enough, says Courson. As a result, he says it's the next generation of athletes that are at risk.

(BEGIN VIDEO CLIP)

STEVE COURSON, FMR. NFL PLAYER: I have given hundreds of lectures and seminars in schools. And the most asked question I get from kids at the end of my seminars is -- far and away what they ask me the most, they ask me do they think I could have made it in the NFL without drugs. And I think that should tell us a lot.

(END VIDEO CLIP)

OSIAS: It is these very young people that are of concern to the committee. Committee members cite 500,000 young girls and boys that have admitted to using steroids at least once.

Connecticut Representative Christopher Shays wants to see standards like the International Olympic Committee has in place. High school coach Willie Stewart sees pressure every day. He says young athletes aiming at scholarships think they need to cheat to get there.

(BEGIN VIDEO CLIP)

WILLIE STEWART, HIGH SCHOOL FOOTBALL COACH: Some of the student athletes want a quick fix. Unfortunately, there are no quick fixes. Meaning, down the road, the student athletes who use performance- enhancing drugs are at risk for premature heart attacks, strokes, liver tumors, kidney failure and other health complications.

(END VIDEO CLIP) OSIAS: So far, the NFL has been cooperating in supplying information about how the testing is done and the number of positive results. But committee members are expected to continue peppering the organization with tough questions of just how players can get around it -- Kyra.

PHILLIPS: Kimberly, just a question about the timing. Why is this happening now?

We understand why baseball players had to go before Congress and give testimony, because of all of the ongoing court cases and accusations and the question about the records that had been broken and if indeed steroids were being used. But it seems like just now out of the blue football players are testifying.

OSIAS: Well, I think that's a very good question, Kyra. It's sort of a multi-pronged approach. And obviously the naysayers would claim that this is political grandstanding.

But when I spoke to the committee spokesperson, he said, look, we are certainly seeing a tightening up and some changes taking place. And this is such a pervasive problem, it has to be done in stages. And at least progress is being made.

PHILLIPS: Kimberly Osias live from Washington. Thanks.

O'BRIEN: News "Across America" now.

Rescuers call off the search for a pilot who crashed into lake Michigan. The 20-year-old pilot made a frantic call to 911 after his plane ran out of gas and went down in the lake on Monday. The Coast Guard believes he could have survived in the 44-degree water for about four hours.

More outrage after another child is handcuffed at school. This time, it happened to a 7-year-old boy in West Virginia.

The police chief was called to the school because the child was reportedly running from teachers. When he arrived, he said the boy started kicking him, prompting him to handcuff him. The boy's parents have filed a complaint. Last month, a similar controversy erupted after a 5-year-old Florida girl was handcuffed at school.

Conservative commenter Laura Ingraham is fighting a new battle. Breast cancer this time. Ingraham was diagnosed last week during a routing visit to her doctor. On her Web site, the 40-year-old commentator said the diagnosis came as a total shock.

PHILLIPS: Well, it was supposed to happen about two minutes ago, running a little late. But as soon as the president steps up to the podium we will take the event live. He'll be touting his energy policy. We'll listen to the president once it begins.

Also, live from "Security Watch" up next, chemical sites are obvious targets for terrorists. Well, today experts offer up their ideas to keep you safer. O'BRIEN: And another break in the Michael Jackson trial is expected this hour. Find out what's going on in court as his ex-wife takes the stand.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

O'BRIEN: All right. Live pictures. This is the Washington Hilton. And there is the president of the United States.

The Small Business Administration holding a special conference for small business owners today. It is that particular venue at which the president will lay out specifics of his energy policy and push hard on Congress to try to get it rolling.

We, of course, are going to take that speech as it happens in its entirety. We suspect there's going to be some introductions. And so what we'll do is step away from it for a moment. But we'll be keeping an eye on those introductions, bring you the president as soon as he begins his address -- Kyra.

PHILLIPS: So while we wait for the president's address, we're also continuing our weeklong series, "Never to Late to Save for Retirement." And today, some things to keep in mind when selecting an area to live out your golden years. More from personal finance editor Gerri Willis.

(BEGIN VIDEO TAPE)

ROBBIE RISNER, SAN ANTONIO RETIREE: I don't think immediately of anything we dislike about San Antonio.

GERRI WILLIS, CNN FINANCE EDITOR (voice-over): San Antonio, Texas, is a place that Robbie and Dot Risner already knew and loved. As a city, it wasn't the kind of place where they ever thought they'd retire. But the more they thought about it, the better it sounded.

DOT RISNER, RETIREE: There are lots of good places to eat here. And we do that a lot. We go out for dinner a lot.

And the river walk is such a big attraction. When people come to visit us, the first thing they want to do is go to the river walk. The children like Six Flags. So they have things to offer for all ages.

WILLIS: Today, more people are deciding that traditional retirement communities aren't right for them. Many baby boomers want to live in a more active environment.

PROFESSOR WARREN BLAND, CALIFORNIA STATE UNIVERSITY: Now there's a greater interest in recreational opportunities beyond the, you know, playing golf and things like that. People are living longer and they're going to probably be in their retirement spot for 20 or 30 years.

WILLIS: Robbie and Dot's first concern when choosing a place to retire was access to good medical care.

D. RISNER: It's hard to beat BAMC, which is Brooks Army Medical Center. And it's huge. And they have such good care there for all of us.

WILLIS: San Antonio is one of many American cities, including Portland, Oregon and Boulder, Colorado, that offer retirees a high quality of life with a low cost of living, and top notch health care, unlike some better established Sun Belt destinations.

BLAND: Well, let's say you pick a retirement area in southern Florida. You might find it's become expensive, crowded, perhaps less desirable after only a few years of living there.

D. RISNER: We were a little apprehensive about living in a big community of people all the time. We thought it would be so bustly and busy and all. But the people are what make this so desirable.

R. RISNER: They have a 24-hour heated swimming pool, a woodworking shop, all kinds of things, party rooms, dance floors. There's so many things help you live your retirement years and enjoy them.

WILLIS: So far, retirement in San Antonio has exceeded all of the Risners' expectations.

R. RISNER: Without knowing it early on, it is.

D. RISNER: That's right. We couldn't have designed it any better, but we wouldn't have known to have asked for it.

(END VIDEO TAPE)

PHILLIPS: Well, that was Gerri Willis reporting. And tomorrow, Gerri looks at whiz kids. Meet some young adults who prove it's never too late to get an early start on retirement planning.

And once again, we want to remind you, we are waiting for the president of the United States to step up to the podium and give the energy speech that we have been telling you about. We're going to carry it live as soon as that happens, and I think we are getting closer.

We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: And this just in. He's the man that planned to bomb LAX airport on Y2K. We're talking about the Algerian-borne suspected al Qaeda operative, today convicted on a terrorism charge.

Rusty Dornin live from Seattle with more on what's taken place -- Rusty. RUSTY DORNIN, CNN CORRESPONDENT: Well, big surprise in the courtroom today, Kyra. Ahmed Ressam, also known as the millennium bomber, he's the one that tried to smuggle explosive, 125 pounds worth of explosives, into Seattle before the millennium, December 14, 199.

He was busted. Apparently, he was on his way to LAX airport to -- planning to blow up and kill as many people as possible.

Now, after he was convicted, he apparently helped the government locate and identify more than 100 other terrorists. He gave backgrounds on cells. He gave a lot of information and cooperation in hopes of gaining a more lenient sentence.

Now, his sentence could have been 65 years or more. The government started to make a deal with him, and it's unclear -- they were arguing today about what that was, 25, 27 years. But the government was angry because they said he went back on his agreement and he wasn't giving them anymore information.

But the bottom line is this judge has continued the sentencing for Ahmed Ressam, saying that Ressam perhaps should think about cooperating with the government again and should be more forthcoming on two terrorists cases that are coming up, and that that would be a big factor in what this judge gives him as a sentence.

So at the last minute, the judge gave the defense the opportunity to think about this. They had a little conversation. So they're going put this off until July 28 -- Kyra.

PHILLIPS: All right. We'll continue to follow it. Rusty Dornin live out of Seattle. Thank you so much.

Now to the president of the United States and his energy speech that we have been talking to you about.

Let's listen in.

(INTERRUPTED BY LIVE EVENT)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... at the same discounts that big businesses can. As small-business owners, you know that a dollar should be spent wisely or not at all. That same standard ought to apply to the federal government when it comes time to spending your money.

(APPLAUSE)

I've submitted a disciplined budget to the Congress that meets our priorities, that restrains federal spending and keeps us on track to cut the deficit in half by 2009.

I appreciate the fact that the Senate has passed a version of the budget, and the House has passed a version of the budget.

Now it's time for them to come together and pass a budget resolution this week. By restraining federal spending, by keeping taxes low, we'll keep this economy growing and keep the innovative spirit strong.

But in order to make sure our economy grows, in order to make sure people are still able to find an opportunity, in order to encourage small-business sector growth and vitality, we need to address a major problem facing our country, and that is our nation's growing dependence on foreign sources of energy.

(APPLAUSE)

Technology is allowing us to better use our existing energy resources. And in the years ahead, technology will allow us to create entirely new sources of energy in ways earlier generations could never dream.

Technology is the ticket, is this nation's ticket to greater energy independence, and that's what I want to talk about today.

I fully understand that many folks around this country are concerned about the high price of gasoline. I know small-business owners are.

I went to Fort Hood the other day -- it's right around the corner from Crawford -- and sat down with some of our troops and we had dinner -- lunch.

In Texas, they call dinner...

(LAUGHTER)

... the noon meal and supper the evening meal.

(LAUGHTER)

(APPLAUSE)

I'm trying to standardize the language.

(APPLAUSE)

We sat down for lunch. And I was asking the soldiers, what was on your mind, what was on their mind, and a fellow said, "Why don't you lower gas prices -- gasoline prices, Mr. President?" Obviously, gasoline prices were on his mind.

I said, "I wish I could. If I could, I would."

I explained to him that the higher cost of gasoline is a problem that has been years in the making.

To help in the near term, we'll continue to encourage oil- producing countries to maximize their production, to say to countries that have got some excess capacity, "Get it on the market, so you do not destroy the consumers that you rely upon to buy your energy."

We're doing everything we can to make sure our consumers are treated fairly, that there is no price gouging.

Yet the most important thing we can do today is to address the fundamental problem of our energy situation. That's the most important thing we can do.

And the fundamental problem is this: Our supply of energy is not growing fast enough to meet the demands of our growing economy.

Over the past decade our energy consumption has increased by more than 12 percent. While our domestic production has increased by less than one-half of 1 percent.

The growing economy causes to us consume more energy, and yet we're not producing energy here at home, which means we're reliant upon foreign nations. And at the same time we've become more reliant upon foreign nations, the global demand for energy is growing faster than the global supply. Other people are using more energy as well, and that's contributed to the rise in prices.

Because of our foreign energy dependence, our ability to take actions at home, that will lower prices for American families is diminishing.

Our dependence on foreign energy is like a foreign tax on the American people. It's a tax our citizens pay every day in higher gasoline pleases and higher costs to heat and cool their homes. It's a tax on jobs, and it's a tax that's increasing every year.

The problem is clear. This problem did not develop overnight, and it's not going to be fixed overnight.

But it's now time to fix it. See, we got a fundamental question we got to face here in America: Do we want to continue to grow more dependent on other nations to meet our energy needs, or do we want to do what is necessary to achieve greater control of our economic destiny?

I made my decision. I know what is important for this country to become less dependent on foreign sources of energy, and that requires a national strategy.

Now, when I first got elected I came to Washington and I said we need a national strategy. And I submitted a national strategy to the United States Congress. And it's been stuck. And now it's time for the Congress to pass the legislation necessary for this country to become less dependent on foreign sources of energy.

(APPLAUSE)

And the most important component of our strategy is to recognize the transformational power of technology. Over the last quarter century, technology has radically changed the way we and work.

Think about this: Just 25 years ago -- for a guy 58 years old it doesn't seem all that long ago. If you're 24 years old, it's a heck of a long time ago. (LAUGHTER)

In the 1980s, most Americans used typewriters instead of computers. We used pay phones instead of cell phones.

We used carbon paper instead of laser printers. We had bank tellers instead of ATMs. We had Rolodexes instead of PDAs. For long family trips, we played the license plate game...

(LAUGHTER)

(APPLAUSE)

... instead of in-car DVDs.

(LAUGHTER)

We've seen a lot of change in a quick period of time, haven't we? I believe the next 25 years the changes are going to be even more dramatic.

Our country is on the doorstep of incredible technological advances that will make energy more abundant and more affordable for our citizens.

By harnessing the power of technology, we're going to be able to grow our economy, protect our environment and achieve greater energy independence. That's why I'm so optimistic about our future here in America.

The first essential step toward greater energy independence is to apply technology to increase domestic production from existing energy resources. And one of the most promising sources of energy is nuclear power.

(APPLAUSE)

Today's technology has made nuclear power safer, cleaner and more efficient than ever before. Nuclear power is now providing about 20 percent of America's electricity with no air pollution or greenhouse gas emissions.

Nuclear power is one of the safest, cleanest sources of power in the world, and we need more of it here in America.

Unfortunately, America has not ordered a new nuclear power plant since the 1970s. France, by contrast, has built 58 plants in the same period, and today France gets more than 78 percent of its electricity from safe, clean nuclear power.

It's time for America to start building again. That's why three years ago my administration launched the Nuclear Power 2010 initiative. This is a seven-year, $1.1 billion effort by government and industry to start building new nuclear power plants by the end of the decade. One of the greatest obstacles we face to building new plants is regulatory uncertainty, which discourages new plant construction. Since the 1970s, more than 35 plants were stopped at various stages of planning and construction because of bureaucratic obstacles.

No wonder -- no wonder the industry is hesitant to start building again.

We must provide greater certainty to those who risk capital if we want to expand a safe, clean source of energy that will make us less dependent on foreign sources of energy.

To do so, I've asked the Department of Energy to work on changes to existing law that will reduce uncertainty in the nuclear plant licensing process. It could also provide federal risk insurance that will protect those building the first four new nuclear plants against delays that are beyond their control.

A secure energy future for America must include more nuclear power.

(APPLAUSE)

A secure energy future for America also means building and expanding American oil refineries.

Technology has allowed us to better control emissions and improve the efficiency and environmental performance of our existing refineries, yet there have been no new oil refineries built in the United States since 1976. And existing refineries are running at nearly full capacity.

Our demand for gasoline grows, which means we're relying more on foreign imports of refined product. To encourage the expansion of the existing facilities, the EPA is simplifying rules and regulations.

I will direct federal agencies to work with states to encourage the building of new refineries on closed military facilities, for example, and to simplify the permitting process for such construction.

By easing the regulatory burden, we can refine more gasoline for our citizens here at home. That will help assure supply and reduce dependence on foreign sources of energy.

(APPLAUSE)

Advances in technology will also allow us to open up new areas to environmentally responsible exploration for oil and natural gas, including the Arctic National Wildlife Refuge.

(APPLAUSE)

Technology now makes it possible to reach ANWR's hydrocarbons by drilling on just 2,000 acres of the 19 million acres of land. That's just one-tenth of 1 percent of ANWR's total area.

Because of the advances in technology, we can reach the oil deposits with almost no impact on land or local wildlife.

Developing this tiny section of ANWR can eventually yield up to a million barrels of oil per day. That's a million barrels less that we're dependent from foreign sources of energy.

Listen, the more oil we can produce in environmentally sensitive ways here at home, the less dependent our economy is, the less reliant we are on other parts of the world.

Technology is allowing us to make better use of natural gas. Natural gas is an important source of energy for industries like agriculture or manufacturing our power production.

The United States has the sixth largest proven reserves of natural gas in the world, and we'll do more to develop this vital resource. That's why I signed into law a tax credit to encourage a new pipeline to bring Alaskan natural gas to the rest of the United States.

(APPLAUSE)

Technology is also helping us to get at reserves of natural gas that cannot be easily reached by pipelines. Today, we're able to supercool natural gas into liquid form so it can be transport on tankers and stored more easily.

Thanks to this technology, our imports of liquefied natural gas nearly doubled in 2003. Last year, imports rose another 29 percent.

But our ability to expand our use of liquefied natural gas is limited because today we have just five receiving terminals and storage facilities around the United States.

To take advantage of this new technology, federal agencies must expedite the review of the 32 proposed new projects that will either expand or build new liquefied natural gas terminals.

In other words, there's projects on the books and we're going to get after the review process.

Congress should make it clear to the Federal Energy Regulatory Commission its authority to choose sites for new terminals, so we can expand our use of liquefied natural gas.

Technology also allows us to use our most abundant energy source in a smart way.

America has enough coal to last for 250 years, but coal presents an environmental challenge.

To make cleaner use of this resource, I have asked Congress for more than $2 billion over 10 years for my coal research initiative. It's a program that will encourage new technologies that remove virtually all pollutants from coal-fired power plants.

My Clear Skies initiative will result in more than $52 billion in investment and clean coal technologies by the private sector.

To achieve greater energy dependence, we must put technology to work so we can harness the power of clean coal.

The second essential step toward greater energy independence is to harness technology to create new sources of energy.

Hydrogen is one of the most promising of these new sources of energy.

Two years ago, my administration launched a crash program called the Hydrogen Fuel Initiative. We've already dedicated $1.2 billion over five years to this effort to develop hydrogen-powered fuel cells.

We know that when hydrogen is used in a fuel cell, it has the power to -- potential to power anything from a cell phone, to a computer, to an automobile that emits pure water instead of exhaust fumes.

I've asked Congress for an additional $500 million over five years to help move advanced technology vehicles from the research lab to the dealership lot.

See, I want the children here in America -- you two that are sitting there -- to be able to take your driver's test in a completely pollution-free car that will make us less dependent on foreign sources of energy.

(APPLAUSE)

To help produce fuel for these cars, my administration has also launched a nuclear hydrogen initiative in an effort to develop advanced nuclear technologies that can produce hydrogen fuels for cars and trucks.

My budgets have dedicated $35 million over the past three years and will continue this effort.

In other words, we're developing new technologies that will change the way we drive.

In other words, we're developing new technologies that will change the way we drive. See, I know what we're going to need to do for a generation to come. We need to get on a path away from the fossil fuel economy. If we want to be less dependent on foreign sources of energy, we must develop new ways to power automobiles. My administration is committed to finding those news ways, and we're working with industry to do so.

Ethanol is another promising source of energy. I like the idea of people growing corn that gets converted into fuel for cars and trucks. Our farmers can help us become less dependent on foreign oil.

(APPLAUSE)

Technology is now under development that may one day allow us to get ethanol from agricultural and industrial waste.

We can produce another renewable fuel, bodies, from leftover fats and vegetable oils. I mean, we're exploring a lot of alternatives. Ethanol and biodiesel have got great potential. And that's why I've supported a flexible, cost-effective renewable fuel standard as part of the energy bill. This proposal would require fuel producers to include a certain percentage of ethanol and biodiesel in their fuel and would increase the amount of these renewables in our nation's fuel supply. Listen, more corn means more ethanol, which means less imported oil.

Technology can also help us tap into a vital source that flows around us all the time and that is wind. That's why I've asked Congress to provide $1.9 billion over 10 years for tax incentives for renewable energy technologies like wind, as well as residential solar heating systems and energy produced from landfill gas and biomass.

(APPLAUSE)

An energy strategy must be comprehensive, all aimed at making us less dependent. A third essential step toward greater energy independence is to harness the power of technology so we can continue to become better conservers of energy. Already, technology is helping us grow our economy while using less energy. For example, in 1997, the U.S. steel industry used 45 percent less energy to produce a ton of steel than it did in 1975. The forest and paper industry used 21 percent less energy to produce a ton of paper. In other words, we're making advances in conservation. And in the years ahead, if we're smart about what we do, we can become even more productive while conserving even more energy.

Technological advances are helping develop new products that give our consumers the same and even better performance at lower cost by using less energy. Think about this, you can buy a refrigerator that uses the same amount of power as a 75-watt light bulb. It's a remarkable advance when it comes to helping consumers save money on energy. Advances in energy-efficient windows keep hot and cold air in and prevent your dollars from flowing out.

(LAUGHTER)

High efficiency light bulbs last longer than traditional ones, while requiring less electricity.

These and other technological advances are saving our consumers a lot of money, and there's more to be done. Let me tell you this, in 2001, the average American family spent about half as much to heat his home as it did in 1978. Think about what's possible over the next 25 years. We can imagine a day when technologies like solar panels, high-efficiency appliances, and advanced installation will allow us to build zero-energy homes that produce as much energy as they consume. That's the promise that technology holds for us all.

And as we make our homes more energy efficient, we're doing the same for our automobiles. Hybrid vehicles are one of the most promising technologies immediately available to consumers. These cars are powered by a combination of gasoline and electricity. They provide better fuel efficiency, ultra-low emissions and exceptional performance. And their electronic systems are paving the way for tomorrow's hydrogen-powered vehicles.

We're encouraging automakers to produce a new generation of modern, clean diesel cars and trucks. My administration has issued new rules that will remove more than 90 percent of the sulfur in diesel fuel by 2010. Clean diesel technology will allow consumers to travel much farther on each gallon of fuel, without the smoke and pollution of past diesel engines. We've proposed $2.5 billion over 10 years in tax credits that will encourage consumers to buy energy- efficient hybrid cars and trucks, and we need to expand these incentives to include clean diesel vehicles, as well.

(APPLAUSE)

As we conserve energy at home and on the road, technology will help us deliver it more efficiently. New technologies such as superconducting power lines can help us bring our electrical grid into the 21st century, and protect American families and businesses from damaging power outages. Some of you who live in the Midwest and on the East Coast know what I'm talking about -- damaging power outages. We have modern interstate grids for our phone lines and our highways. It's time for America to build a modern electricity grid.

(APPLAUSE) The electricity title is an important part of the energy bill. As a matter of fact, a lot of which I've discussed so far is an important part of the energy bill that needs to get passed by the United States Congress before August of this year.

(APPLAUSE)

The House acted, and I appreciate the leadership in the House. Now it's time for the United States Senate to act. And then it's time for them to get together and iron out their differences and get me a bill so I can sign.

The fourth essential step toward greater energy independence is to make sure other nations can take advantage in advances -- take advantage of the advances in technology to reduce their own demand. Listen, we need to remember that the market for energy is a global one, and we're not the only large consumer. Much of the current projected rise in energy prices is due to rising energy consumption in Asia. As Asian economies grow, their demand for energy is growing. And the demand for energy is growing faster than the supply of energy is increasing. And as small business people, you understand what happens when demand is larger than supply -- you hope that's the case for the products you produce.

(LAUGHTER)

Our costs -- our prices are going up. It is in our interest to help these countries become more energy self-sufficient; that will help reduce demand, which will help take pressure off price, and at the same time help protect the environment. I'm looking forward to going to a G-8 meeting in July in Great Britain. And there I'm going to work with developed nations, our friends and allies to help developing nations, countries like China and India to develop and deploy clean energy technology. Like us, some of these countries have got substantial coal reserves. We need to find practical ways to help these countries take advantage of clean coal technology.

As well, we will explore ways we can work with like-minded countries to develop advance nuclear technologies that are safe, clean and protect against proliferation. With these technologies, with the expansion of nuclear power, we can relieve stress on the environment and reduce global demand for fossil fuels. That would be good for the world, and that would be good for American consumers, as well.

(APPLAUSE)

This strategy will work for our children and our grandchildren. We should have put this in place several decades ago. We haven't had a national energy strategy in this country for a long period of time. I tried to get the Congress to pass it four years ago. Now is the time for them to act. For the sake of this country, for the sake of a growing economy, and for the sake of national security, we've got to do what it takes to expand our independence. We must become less dependent. And there's no doubt in my mind that technology is going to help us achieve that objective.

One reason why I believe this so strongly is because free societies are able to adjust to the times. And we're the freest of free societies. We're a society where it doesn't matter where you were raised or where you're from; if you've got a dream, you can pursue it and realize your dream.

(APPLAUSE)

Our country has always responded to challenges...

O'BRIEN: All right, we've apparently lost the president's signal. We'll try to get that back. In the meantime, just to wrap it up, the president saying the technology is the ticket to greater energy independence.

And I'll tell you what. Let's go back to the president. We have our signal and then we'll wrap that up in just a moment.

BUSH: I like my hydrogen-powered automobile. And I produced a little extra energy this year from my home. Our farmers are going to be saying, you know, the crops up and we're less dependent. Now's the time to put that strategy in place. Now's the time to do the right thing for America. Now's the time to set aside political differences and focus on what is good for the United States of America and with your help, we'll achieve that.

God bless you all. Thanks for coming. O'BRIEN: That was the president of the United States, speaking before small business owners at the Washington Hilton, laying out what is familiar really to us all, since we've been talking about his energy proposals for quite some time, bottled up in Congress, as the president repeatedly referred to.

The president talking about a full range of possibilities for coming up with some solutions to the nation's energy problems. Nuclear power. Increased building of refineries, he says, perhaps on some abandoned military bases. Drilling in the Alaska National Wildlife preserve. Clean coal technology. Hydrogen. Ethanol. A few words about conservation. Pretty much a broad range of policy initiatives out there.

We have an expert who's been listening to it all, sort of sitting on the other side of the aisle, if you will. Joining us now is Joseph Romm. He was a Department of Energy official during the Clinton administration. Mr. Romm, good to have you with us.

JOSEPH ROMM, FMR. DEPT. OF ENERGY OFFICIAL: Howdy.

O'BRIEN: You know, what was missing from this speech, it seems to me, is when the president talks about conservation, and he didn't talk much about, but he when he talks about conservation, it sounds painless. It just means buying refrigerators that only use the amount of energy of a 75 watt light bulb or a new doo-dad that uses less power. He doesn't really call upon Americans to tighten their belt, as far as their consumption of energy. Why not?

ROMM: Well, you know, most of this talk is very nice rhetoric, but it's is a bait-and-switch. Americans are concerned about high gasoline prices and oil imports and this proposal doesn't do anything. As you say, the president has within his power to make vehicles more efficient today and that's what we need, fuel economy standards for vehicles. It worked in the 1970's and 1980's and it can work today. And the president talks a lot about technology, but by and large, he's cutting the technology for most clean energy technologies.

O'BRIEN: All right. Mr. Romm, we're going to have -- I'm sorry. The timing is such that we need to take a quick break right now. We're not done. If I could ask to you stand by, and viewers to stand by, we'll continue our discussion with Joseph Romm about the president's energy initiative after a short break.

(COMMERCIAL BREAK)

O'BRIEN: The president addressing us just a little while ago, talking about his energy policy, trying to light a fire under Congress to get that legislation passed.

We are talking with Jospeh Romm, who was a Department of Energy official during the Clinton administration, who was listening to the speech. The president says, Mr. Romm, that technology is the ticket to greater energy independence. True or false?

ROMM: It's half true. We've spent a lot of money on technology; now we need to pass regulations which the president has fully in his control to have us use start using those technologies. So you need technologies and then you need fuel efficiency standards. You know, the president has talked a lot about nuclear power. Nuclear power won't reduce our dependence on imported oil. The president's talked about liquefied natural gas. That's so that we can import more natural gas. So you can't get more energy independent through liquefied natural gas.

So you see a lot of jargon and rhetoric in what the president says, but it's very simple. If you want to reduce dependence on imported oil, you make United States cars more fuel efficient. The president of the United States has the authority to do that today. If the president cared about oil prices and dependence on Persian Gulf oil, he would enact higher fuel efficiency standards.

O'BRIEN: All right, let's talk about renewables a little bit. The president talked a little about about, you know, hydrogen economy, which would go to ultimately to the goal of reducing our dependence on foreign oil and the price that we pay at the pump.

So far, the United States has done very little in this regard. As a matter of fact, we pulled some numbers out. About six percent of all our energy combined -- and this is really, once again, talking about things that are outside of our vehicles -- comes from renewable sources, where you look at other countries, Germany and Japan, where they are really leading the world in renewable use of solar power or wind power, really have made great strides.

Are we missing the boat? Is the United States missing the boat and perhaps a technological revolution that could lead to really an economic bonanza?

ROMM: Absolutely. The United States is really giving up leadership in wind power and solar energy to other countries that are much more aggressive in pushing renewables. This country, the president, this Congress, refuses to adopt a renewable standard to encourage the use of renewable power. So -- and the president himself, he keeps talking about technology, technology, technology. His budget cuts the budget for renewable energy, for energy efficiency.

He boosts the budget for hydrogen power, but I wrote a whole book, "The Hype About Hydrogen," which explains why hydrogen is decades away from being realistic as a car. And, you know, the president talks about getting off of fossil fuels. Hydrogen is not an energy source. 95 percent of hydrogen today comes from natural gas, comes from fossil fuel, so...

O'BRIEN: Well, he did -- to his credit, he did mention that there could be a way of using nuclear power to make that hydrogen fuel, which would, of course, take the fossil fuels out of the link there. Let's button up on one final thought here.

ROMM: Sure.

O'BRIEN: This whole notion of building more refineries. Refineries haven't been built since 1976 or something in the United States. Is -- and perhaps using military property, abandoned bases. Is this a proposal that really speaks to a demand out there? I mean, if the oil companies wanted to build refineries, wouldn't they?

ROMM: Yes, I think it's kind of just a placebo. How can building a refinery reduce our dependence on imported oil? Refineries just refine the oil we import. If you want to reduce dependency on imported oil, use less oil, then you don't have to refine as much. You don't have to build more refineries. So I tend to think that that proposal is kind of a placebo or a smokescreen.

O'BRIEN: All right. Joseph Romm, joining us in Washington.

Also in Washington, I want to pick up this discussion -- I'll have you stand by -- is Barbara Starr, our senior Pentagon correspondent.

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