Washington -- In a nod to the energy crisis, President Bush's budget provides more than $1 billion for research into solar, wind and other alternative energy sources.
But the allocation comes with a twist. It counts on revenue from exploratory oil drilling in an Alaska wildlife refuge, which Democrats insist they will never let happen.
The projections of oil drilling revenue appear with no fanfare in Bush's 207-page budget document and are merely mentioned in passing under the subhead "Solar and Renewable Energy."
Yet the inclusion marks Bush's first step toward following through on his controversial pledge to enhance the nation's energy independence by opening up the pristine Arctic National Wildlife Refuge for oil exploration.
"People need to know that when they flip on a light switch the light will turn on," reads the budget's introduction to its energy section, which makes no specific reference to California's power crisis.
The battle over the 19 million acres, the last remaining section of Alaska's North Slope that has not yet been opened for oil exploration and development, is shaping up as Washington's top environmental fight.
Earlier this week, Republicans introduced an energy bill that would permit oil exploration, something Bush is counting on to finance portions of the Energy Department budget.
The budget states that opening a "small part" of the wildlife refuge to oil and gas leasing and production in an "environmentally responsible manner" would generate $1.2 billion in "bidding bonuses" in 2004 that should be spent on alternative energy sources. No further details are provided.
Bidding bonuses are the amount oil companies would pay the government for the right to lease the land, home to tens of thousands of porcupine caribou. The government would reap many tens of billions more in royalties if oil were actually extracted.
Though Bush's spending plan released yesterday acknowledges the need for a reliable source of energy, it cuts the Energy Department's budget by 3 percent,
to $19 billion. The budget does call for increases in some programs, such as $1.4 billion in subsidies over the next 10 years for weather-proofing low- income homes.
Environmentalists cheered the inclusion of funds for alternative power sources such as solar but said tying it to oil drilling in Alaska is a cynical ploy. The $5.6 trillion surplus allows for such programs to stand on their own,
they said.
"This is like saying to Bill Gates, 'Bill, you know, if you want to plant rose bushes in your yard, you have to cut down the trees, sell them for firewood and then use the money to buy rose bushes," said Carl Pope, executive director of the Sierra Club. "Bill Gates doesn't have to do that. We don't have to do that."
Even as Bush was delivering his budget document to Congress, Democrats were introducing legislation to permanently protect the refuge from drilling. The bill by Sen. Joe Lieberman, D-Conn., would designate the 1.5 million-acre coastal plain a wilderness area, outlawing any future development. A similar House bill is sponsored by Rep. Nancy Johnson, R-Conn., and Rep. Ed Markey, D- Mass.
'It's clear that we can never hope to drill our way out of our energy needs, " Lieberman said. "This bill will eliminate this distraction from the energy debate and allow us to focus on real energy solutions."
Created by President Dwight Eisenhower in 1960, the refuge is believed to hold between 5.6 billion and 16 billion barrels of oil, and can only be developed with congressional approval. Opponents say the oil amounts to only six months of the U.S. supply, and would do little to ease the country's dependence on foreign oil.
Sen. Barbara Boxer, D-Calif., said the revenue from the bidding bonuses will never materialize because the Senate will block any effort to open the refuge to drilling.
"That is not going to happen," Boxer said. "It is a false revenue item in the budget. There's not enough votes to drill in (the refuge) on a bipartisan basis. There's going to be a major filibuster. It's never going to happen."
Boxer said Bush's tactic showed he is not committed to weaning the United States from its dependence on oil by researching alternative energy sources.
"I think it shows what a low priority, or I would say a nonpriority, renewable and solar energy are to him," Boxer said. "It shows that he really doesn't care about this. He is beholden to the oil people."
The president has assembled a task force, headed by Vice President Dick Cheney, to develop a comprehensive energy policy. While the group is not scheduled to release its plan until April, environmentalists said the administration has clearly tipped its priorities.
"If you're including assumptions in your budget about revenues from oil and gas leases in your budget, you're obviously favoring drilling in the Arctic National Wildlife Refuge," Adam Kolton, the arctic campaign director for the Alaska Wilderness League, an environmental group.
"I don't think the task force needs to have any more meetings," Kolton said.
"Clearly they have made their decision."
E-mail Marc Sandalow at msandalow@sfchronicle.com and Zachary Coile at zcoile@sfchronicle.com
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