Gulf Oil Message Clear: Pass Serious Energy Policy Now

Thomas Friedman's message about the political significance of BP's Gulf of Mexico oil disaster is simple: Congress, quit dinking around; pass an energy policy!

This oil spill is to the environment what the subprime mortgage mess was to the markets — both a wake-up call and an opportunity to galvanize a constituency for radical change that overcomes the powerful lobbies and vested interests that want to keep us addicted to oil.

If President Obama wants to seize this moment, it is there for the taking. We have one of the worst environmental disasters in American history on our hands. We have a public deeply troubled by what they’ve seen already — and they’ve probably seen only the first reel of this gulf horror show. And we have a bipartisan climate/energy/jobs bill ready to be introduced in the Senate — produced by Senators John Kerry, Joe Lieberman and Lindsey Graham — that would set a price on carbon and begin to shift us to a system of cleaner fuels, greater energy efficiency and unlock an avalanche of private capital to the clean energy market.

American industry is ready to act and is basically saying to Washington: “Every major country in the world, starting with China, is putting in clear, long-term market rules to stimulate clean energy — except America. Just give us some clear rules, and we’ll do the rest” [Thomas Friedman, "No Fooling Mother Nature," New York Times, 2010.05.04].

The U.S. House got this done last summer. Senators Thune and Johnson, it's time to pick up the slack. China, Germany, and everyone else are putting on the grown-up pants on energy policy. America is the leading energy consumer; we should also be the leading energy innovator. Let's get with it!

Anecdotal: China Beating U.S. on Alternative Energy Innovation

A little note for my Policy friends debating the alternative-energy resolution: Thomas Friedman's latest NYTimes column provides an illuminating anecdote on international competitiveness in putting alternative energy to work. While attending the Energy and Resources Institute's climate conference in New Dehli, Friedman is propositioned by two American women half his age (tell me you wouldn't want to be Thomas Friedman) who offer to drive him around New Dehli in their plug-in/solar car:

We head off down Panchsheel Marg, one of New Delhi’s main streets. The ladies want to show me something. The U.S. Embassy and the Chinese Embassy are both located on Panchsheel, directly across from each other. They asked me to check out the rooftops of each embassy. What do I notice? Let’s see ... The U.S. Embassy’s roof is loaded with antennae and listening gear. The Chinese Embassy’s roof is loaded with ... new Chinese-made solar hot-water heaters.

You couldn’t make this up.

I wonder if the Chinese have a translation for "Drill, baby, drill!" They probably don't need one.

Tax Our Gas, Buck a Gallon, Now!

I like saving a billion dollars a day on gas as much as the next guy, but if just two months of cheaper gas have us Americans dropping hybrids and buying more SUVs, we need a kick in the pants... or the pocketbook. It's time to bring gas back to $3 a gallon. The South Dakota Legislature could do it, but it would be better coming from Barack Obama. How? Say the magic words:

Gas tax.

I could tell you why, but Thomas Friedman can tell you better. This is no hippie cry to destroy Detroit and put everyone on bicycles; Friedman offers a hardnosed geopolitical argument that would make Kissinger and Brzezinski proud:

A gas tax reduces gasoline demand and keeps dollars in America, dries up funding for terrorists and reduces the clout of Iran and Russia at a time when Obama will be looking for greater leverage against petro-dictatorships. It reduces our current account deficit, which strengthens the dollar. It reduces U.S. carbon emissions driving climate change, which means more global respect for America. And it increases the incentives for U.S. innovation on clean cars and clean-tech [Thomas Friedman, "Win, Win, Win, Win, Win," New York Times, 2008.12.28].

Of course, if you think driving your Hummer with pride is more important than standing up to Iran and Russia... well, that's the sort of vanity that destroys empires.

Man up, America: gas tax and Smart cars are the path to a second American century.