Washington (Platts)--8Jan2009

President-elect Barack Obama said Thursday that advancing clean energy
within his nearly trillion-dollar economic recovery package proposal would be
one part of a plan that would ensure the US economy does not sink deeper into
a recession that could "linger for years."

In his speech, he laid out his bleakest economic forecast to date, saying
that his government spending program was the only way to lay a foundation for
sustained long-term economic growth. Otherwise, he said, a dire situation will
continue to get worse.

"Our nation will sink deeper into a crisis that, at some point, we may
not be able to reverse," he said. "Our nation could lose the competitive edge
that has served as a foundation for our strength and standing in the world."

Obama delivered the remarks Thursday during a speech at George Mason
University near Washington. His speech was the first major moment in a
campaign he is mounting to convince the public that the plan is needed.

He offered few specifics to the plan, calling for immediate action
instead. Obama and many of his advisers over the past several weeks have
argued for a stimulus package that is estimated to cost $775 billion or more.

The energy provisions he discussed revolved entirely around renewable
energy, building efficiency and new infrastructure, such as a smart grid for
electricity.

"To finally spark the creation of a clean energy economy, we will double
the production of alternative energy in the next three years," he said.

"We'll also do more to retrofit America for a global economy," he added.
"That means updating the way we get our electricity by starting to build a new
smart grid that will save us money, protect our power sources from blackout or
attack and deliver clean, alternative forms of energy to every corner of our
nation," Obama said.

Efficiency likely will be a huge initiative for Obama's administration
and he said he would start with government buildings and private homes. "We
will modernize more than 75% of federal buildings and improve the energy
efficiency of two million American homes, saving consumers and taxpayers
billions on our energy bills," he said.

He also highlighted the ability of renewable power production to create
new jobs, help revitalize the economy and deal with the environment.

"In the process, we will put Americans to work in new jobs that pay well
and can't be outsourced," he said. "Jobs building solar panels and wind
turbines; constructing fuel-efficient cars and buildings and developing the
new energy technologies that will lead to even more jobs, more savings and a
cleaner, safer planet in the bargain."

He warned against double-digit employment and said he wants the two-year
plan to create or keep 3 million jobs. Most of the jobs created will be in the
private sector, while the saved jobs will be in the public sector, he said.

Obama added that the focus must be on long-term priorities like energy,
education, health care and new infrastructure.

"We could lose a generation of potential and promise," he said. "It's a
plan that recognizes both the paradox and the promise of this moment--the fact
that there are millions of Americans trying to find work, even as, all around
the country, there is so much work to be done."

Government is the lone actor that can create such massive change, but
that change will come at a price that will lead to greater short-term
deficits, he said.

"Only government can break the vicious cycles that are crippling our
economy... where a lack of spending leads to lost jobs which leads to even
less spending; where an inability to lend and borrow stops growth and leads to
even less credit."

Getting credit flowing again and addressing the foreclosure crisis will
be significant challenges Obama said he intends to address. Obama said any
federal funds to financial institutions must have "maximum protection for
taxpayers" and updating the regulatory system has to be another major goal.

"We should have an open and honest discussion about this recovery plan in
the days ahead, but I urge Congress to move as quickly as possible on behalf
of the American people," he said. "For every day we wait or point fingers or
drag our feet, more Americans will lose their jobs."

The US Chamber of Commerce on Wednesday warned against a permanent
expansion of government spending.

"The nation must avoid a big and permanent expansion of government
payrolls and powers," CEO Tom Donahue said. "We don't need and can't afford
another New Deal," he added.

"The 2008 election was all about change," Donahue said. "It's not change
if you go backwards to the policies and approaches of the 1930s."

--Alexander Duncan, alexander_duncan@platts.com