While Donald Trump spent part of last week by taking American Energy progress backwards with his announcement of reducing national fuel standards, Arizona Senator Ruben Gallego released his “Fostering American Energy Innovation and Affordability” plan which, if enacted would “take an all-of-the-above approach with an eye to ensuring future investments are focused on the most affordable, reliable, and efficient forms of energy.”
Please click here to review the plan.
The plan has five “pillars.”
The first one is emphasizing affordability.
In this component, the Senator calls for helping the American consumer meet the demands of paying “skyrocketing energy prices.” In this area, Gallego recommended:
- “Reinstating and extending energy efficiency tax credits that bring down prices for consumers.
- Recognizing and investing in solar and wind as highly affordable energy sources.
- Ensuring affordable gasoline by encouraging consistent supply chains and providing funding for pipeline fortification.
- Creating economic and investor certainty through consistent permitting timelines and clear federal agency guidance.
- Tailoring energy use to the amplest supplies in a given state or region to minimize energy transportation costs. Examples include hydropower in the Pacific Northwest, solar energy in the Southwest, or wind energy in the Great Plains.”
The second pillar is investing in emerging technologies, including types of clean energy.
Among the suggestions in this area, the Senator advocated for:
- “Funding the research and development of Small Modular Reactors and Advanced Nuclear projects.
- Ensure that the Nuclear Regulatory Commission has clear standards and communications with nuclear developers while maintaining its independence and reputation.
- Reinstating and extend tax credits that foster the innovation and scaling of new energy technologies. That would undoubtedly include restoration of solar panel and electric vehicle tax credits.
- Maintaining federal government support for nuclear fusion projects in addition to fission.
- Supporting investments through DOE’s Loan Programs Office and Advanced Research Projects Agency-Energy.
- Fostering geothermal development by streamlining permitting for exploration.”
The third pillar is prioritizing reliability to meet increasing energy demands.
Among the measures Gallego supported in this section are:
- “Investing in greater baseload power and battery storage for wind, solar, and existing hydroelectric power.
- Rather than emphasizing speed over reliability in renewable and sustainable energy, transition deliberately to avoid the risk of blackouts or brownouts during hot summers, storms, or other power surges.
- Focusing on meeting increasing demand from AI and data centers.
- Onshore production of energy components for all types of energy, including batteries, solar components, SMRs, and more.
- Prioritizing and funding energy cybersecurity initiatives to decrease the risk of disruptions to energy systems from bad actors.
- Ensuring reliable oil and gas supplies through greater communication around supply disruptions and supply consistency, as referenced in Pillar One.”
The fourth pillar is Leave Nobody Behind, and to make sure everyone has access to affordable energy that meets their needs.
Ideas the Senator offered to help ensure no one is denied the energy they need are:
- “Prioritizing energy affordability for all by investing in programs like the Low Income Home Energy Assistance Program (LIHEAP).
- Establishing federal and state job training and transition programs for energy communities transitioning from oil and gas industries as markets shift.
- Focusing on constant community engagement, education, and buy-in for new energy projects, especially around nuclear siting and waste concerns.
- Upholding federal obligations to American Indians and Alaska Natives through proactive and thorough tribal consultation where relevant.
- Funding and expanding targeted federal support for workforce development programs, including registered apprenticeships, labor-management training programs, community college programs, and university partnerships, to train the next generation of energy workers.
- Ensuring equal or better quality pay, benefits, and protections in new industries as legacy energy industries.”
The fifth pillar is Get Power Where It Needs to Go to ensure energy is transmitted to its needed destination in a timely manner.
The policies Gallego endorsed in this section included:
- “Improving transmission timelines and increasing certainty for connections.
- Deploying grid-enhancing technologies to maximize the efficiency of existing transmission infrastructure, adjust capacity, and optimize routing.
- Increasing interoperability and communication between regional transmission entities, including increasing data accessibility and model compatibility.
- Expand categorical exclusions for the development of electric transmission or distribution facilities that are within recently approved rights-of-way corridors; Modifications or upgrades to existing transmission, distribution, and grid infrastructure within existing rights-of-way. This could also apply to previously developed land, which could be retrofitted to include grid-enhancing technologies or more efficient wires, and the deployment of batteries or other energy storage technologies on previously disturbed or developed land (for example, those collocated with an existing power plant.”
In a social media post introducing and explaining his plan, Senator Gallego said:
“Like much of everything in America right now, energy bills are just too damn high, and it’s going to get worse. Prices are going higher and higher every day. In fact, right now, energy prices are rising at double the rate of inflation.
But, I’ve got a plan.
It’s simple.
Produce more. Move it to where it has to go, and, while we’re at it, let’s create some good-paying union jobs.
With energy demands rising as fast as they are, we have to get as much energy online as fast as possible.
The best way to do that is with solar and wind. But this administration has ripped away all the investments in solar and wind just to make sure they can have enough money to pay their rich buddies.
America used to be the leader in innovation when it comes to energy production. We need to support research into cutting-edge nuclear power, such as small modular reactors. We’re falling behind China and Russia right now. These technologies produce electricity. Cheap electricity, even when wind and solar can not meet demand.
Plus, all the fossil fuel workers that have really driven the economy for generations can transfer their skill sets, their jobs, their pensions, their livelihoods into these types of plants.
Finally, we have to make sure we can get our energy where it needs to go and when it needs to go. Our grid system is very vulnerable. Vulnerable to cyber attacks. Vulnerable to weather conditions that could cause massive blackouts. We need to make sure that we are upgrading that and doing it as fast as possible.
Once again, we need to do what the United States does best. Innovate. Invest in new technologies such as battery storage or a smart grid so we can move energy from place to place…”
In an accompanying post published on his Substack Page, Senator Gallego wrote:
“I grew up poor. I know what it’s like to play ‘utility roulette’ – which bill will have to get skipped this month; what will we have to go without. In Arizona, thousands of families are still doing that, debating whether they can afford to turn on the A/C even when it’s 110 degrees outside. Across the country, 1 in 3 Americans can’t afford their electricity bills, and 1 in 4 low-income families spend more than 15% of their paycheck just keeping the lights on.
Energy is one of the most volatile costs many families face, and it’s only going to get worse if we don’t act. Energy costs are rising at twice the rate of inflation. A big part of that cost increase is due to an increase in demand.
Thanks to population growth, the AI boom and data centers, and record-breaking extreme weather, the U.S. is projected to see a 25% increase in electricity demand by 2030, and a 78% increase by 2050.
When demand increases and supply doesn’t keep up, prices soar.
We need real medium- and long-term plans to create a sustainable and affordable energy system in the United States…
…Many of the ideas included in my plan have been supported by energy leaders, scientific experts, and facets of the energy industry in the past. What is missing is not the science to prove that these are good ideas, but rather the political will to see them through.
The United States can have an energy system that is safe, clean, and affordable for working families. Anyone who says you have to choose just one is selling America short.
If our federal government doesn’t rise to this moment, we’ll miss out on good-paying jobs and innovations that will simply go elsewhere. Whether you care most about the AI race, competing with China, protecting the environment, or just lowering your utility bills, we all have a shared interest when it comes to energy.
So, let’s get to work. Together we can build a cleaner, safer, and literally brighter future.”
In a press release by Senator Gallego’s team, Arizona Governor Katie Hobbs signaled her support for his plan, commenting:
“Arizona is uniquely positioned to deliver abundant and affordable energy that powers our homes and businesses, lowers costs for families, and creates quality jobs that build the future of energy. It’s why I signed an Executive Order earlier this year establishing the Arizona Energy Promise Taskforce, bringing Arizonans together to build the necessary frameworks that will expand our energy economy and reduce energy costs. I appreciate and share Senator Gallego’s focus on making government work to secure an energy system that is affordable for working Arizonans and look forward to finding solutions that deliver on the Arizona energy promise.”
Third Way’s Senior Vice President for Climate and Energy, Josh Freed wrote:
“Senator Gallego’s plan tackles the energy affordability crisis head-on. American families are struggling mightily to keep up with major increases in their electricity bills. If we don’t build more power plants, renewables, and transmission lines, these costs will continue to climb. This plan meets the moment, with an all-of-the-above approach that puts affordability and reliability first. It’s exactly the path Democrats should follow.”
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It is great that Ruben Gallego wants to fund energy efficiency. However, I wonder where Ruben Gallego got the idea that nuclear energy is even an option. And that line he reiterates is so old: “It outlines out an all-of-the-above approach…” Why would you do all of the above when there are options that cost 11¢ to deliver energy (solar wind and storage combos/SWS), and when there are options that cost 33-50¢ to deliver (carbon capture & sequestration aka “clean” coal and nuclear)? Anyone with any financial sense can see that if you spend half your money on the first less expensive and ecologically impactful set of options and half your money on the second more expensive and ecologically impactful set of options, you will only get a much smaller portion of the energy had you put it all into the cheaper and cleaner first set of options. In fact the second set of options radically sets back the first by dominating the capital markets, other industry dollars, and tax dollars.
It would be like a family in poverty going to a boutique grocery store half the time along with the much cheaper grocery store the other half of the time, saying that the way out of poverty is to buy groceries from all of the above.