Electricity

McCain has called for the building of 45 nuclear plants by 2030, providing subsidies to the nuclear industry to reach this goal. He suggests the use of Yucca Mountain in Nevada as a nuclear waste repository.

Obama, on the other hand, says we should do nothing about nuclear power until the safety of reactors can be studied and other waste storage areas can be identified.

Coal, which supplies about 50% of our electricity, is another area of disagreement between the candidates.

The two do agree that we need to develop new technology to capture and store the CO2 (carbon dioxide) that is emitted from coal plants. But while McCain believes we should continue building plants while new technology is created, Obama believes we should hold off on new plants until such time as we have the technology. That could take as long as 10 years.

Lowering Energy Prices for Consumers

To aid beleaguered consumers, Obama proposes tax credits of $500 per individual and $1000 for couples to help with the high prices of gas, electricity and heating. The credits would be available to those earning less than $150,000 a year. The funding for this would come from a windfall profits tax on oil companies.

McCain is against the windfall profits tax, fearing that it would be a disincentive for further investment on the part of oil companies.

Autos

Both candidates would issue tax credits to promote the use of cars with better fuel mileage. Obama would increase the fuel standards at a rate of 4% per year, bringing us to almost 50 miles per gallon by 2025; McCain would increase penalties on automakers who don't meet the CURRENT mileage standards. McCain would not push the miles per gallon standard higher.

McCain would also provide a $5,000 tax credit for zero carbon emission cars, such as ones that run on batteries.

The Bottom Line

Whether any of these proposals will get the "green light" remains to be seen. The current economic crisis has pushed almost all energy stories off the front pages of newspapers and has virtually eliminated them from the national news broadcasts. Even Main Street has shifted its attention.

An ongoing economic crisis could very well destroy hopes for U.S. energy independence for years to come. That would be most unfortunate for all of us.

It is our belief that the quicker we domestically produce our own energy in far greater amounts, the quicker we can divert hundreds of billions of dollars and thousands of jobs back home where they are most needed.

It will be a VERY interesting 2009 with some difficult challenges for all of us, and you can be sure we'll continue to watch everything very closely and help you get the most out of your money every step of the way.

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