SPI POSITION ON A U.S. NATIONAL ENERGY POLICY

In recognition of the unique energy requirements of the U.S. plastics industry and the need to act in an environmentally responsible manner, The Society of the Plastics Industry, Inc. (SPI) advocates the following measures to create, deliver and conserve energy resources.

• The lowering and stabilization of the costs of natural gas through measures that include increased exploration and delivery of U.S. sources, improved safety and reliability of natural gas pipelines, and significant increases in the use of imported liquefied natural gas.
• Measures to expand development of domestic supplies of oil in an environmentally responsible manner while continuing to pursue energy conservation. This includes the means to improve the safety and reliability of oil pipelines and to ease impediments to oil exploration.
• An electrical generation system that is economically fair, efficient and reliable for all users. In particular, SPI urges that electricity rates be based upon real costs there be no discrimination against industrial users. IT also encourages development of more authority for local, state, and national government rights-of-way for electricity transmission lines and removal of constraints on the interstate transmission grid.
• A robust national energy policy that uses all of today's sources in a more efficient and effective way, including the use of industrial co-generation as a practical way of expanding the nation's electrical capacity.
• The continued use of coal-our most abundant energy resource, currently providing more than half the nation's electricity-for utility and industrial applications. SPI also supports development of clean-coal technologies that will balance energy and environmental needs and continued research and development of economically feasible and environmentally responsible synthetic fuels derived from coal.
• The safe use of nuclear energy and government encouragement, through technology development and efficiency measures, of nuclear facilities' expansion in a safe and environmentally conscious manner.
• The continuation of active development and commercialization of renewable and alternative sources of energy, such as fuel cells, biomass, solar, geothermal and wind. This includes more efficient licensing for additional hydroelectric power. However, the commercialization of such alternatives must be done through competition with traditional fuels in the free market process.
• Energy efficiency and conservation measures such as public and private-sector energy conservation programs, government R&D to create more energy-efficient manufacturing processes and consumer end-products, and federal government programs to encourage energy conservation (e.g., weatherization assistance for low-income families).
• Increased use of lightweight materials in the transportation sector to promote energy efficiency without compromising safety or integrity.
• Use of government tax credits for alternative fuel technologies, especially fuel-cell.
• Capital investment incentives, such as Investment Tax Credits and Enhanced Depreciation/Amortization Tax Schedules, for equipment that uses a designated smaller amount of electricity from whatever source generated.
• Opposition to the taxation of energy in any form that penalizes or benefits specific industries or narrow interest areas of the economy. Unilateral concepts such as an oil import fee or a tax based on the carbon or BTU content of materials would make the U.S. plastics industry uncompetitive in world markets and have a negative effect on the nation's economy as a whole.

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