Standing under a gas station canopy, DFL Senate candidate Al Franken on Monday outlined a three-point plan to address America’s energy crisis. The plan is designed to dissuade speculators, increase petroleum supply and help low-income homeowners save on energy costs.


Republican Sen. Norm Coleman’s campaign immediately responded, highlighting the incumbent’s own efforts to control speculators, increase petroleum supply and provide energy assistance to low-income homeowners.


While both candidates appear to be addressing the same issues with indistinguishable legislation and various acronyms, there are real differences between the two candidates when it comes to short-term energy relief.


Speculators: Franken calls for a dissuasive tax; Coleman wants oversight 


Franken’s plan begins with establishing a "Speculator Tax." The small tax on broad-based commodity and stock trades is intended to dissuade speculators, and also increases federal revenues. Similar ideas have been supported by Harvard economist Lawrence Summers, Warren Buffett and Nobel laureate James Tobin. Even though the "Speculator Tax" has recently found favor in Washington, it has a historical precedent, having been established several times and last repealed in 1966.


Coleman’s campaign also takes a tough line on speculators, citing Coleman’s co-sponsorship of the “Over-The-Counter Speculation Act.” The bill would amend the Commodity Exchange Act to provide for the oversight of large trades of over-the-counter energy and agricultural contracts.



Supply: Franken wants to tap nation’s reserves; Coleman supports off-shore drilling


To increase supply Franken would "demand" the president tap into the Strategic Petroleum Reserve, which has grown under a directive from President Bush from 545 billion barrels in 2001 to a current level of 706.8 billion barrels. The last time the oil from the reserve was tapped for sale was in the aftermath of Hurricane Katrina when 11 million barrels were released. Franken is advocating for a much larger release of 50 million barrels to be put onto the market. After a presidential decision to open the reserve, petroleum takes approximately 13 days to enter the market.


Coleman is also seeking to increase supply by opening up the Outer Continental Shelf to domestic exploration and drilling. There is great potential for billions of barrels of crude to be recovered from under the sea floor, but it may be decades before that petroleum enters the market.


Additionally, both candidates support local production of biofuels as a means of reducing dependence on foreign oil.



Home heating: Franken wants weatherization; Coleman backs energy assistance


Franken advocates for a $500 million expansion of the Weatherization Assistance Program, which enables low-income families to permanently reduce their energy bills by making their homes more energy efficient.


The Coleman campaign highlights the senator’s support for the Low Income Home Energy Assistance Program (LIHEAP), which assists low-income households that pay a high proportion of household income for home energy. In 2007, Coleman introduced the Keep Americans Warm Act (S.2405) to provide an additional $1 billion in emergency funding for LIHEAP.


While both programs provide vital assistance to low-income households, weatherization is a lasting solution that also increases energy conservation.

Photo: Will Weaver, Flickr