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January 19, 2011

Dear President Trumka

We cannot cut back spending, keep our standard of living and reduce our deficit. We have to grow our economy. The countries you mention have achieved that with some of the most progressive energy policies in the world.

China has doubled its energy capacity in 10 years. It has 13 operating nuclear reactors, 23 under construction and at least 30 more planned. It has very little oil reserves but imports only 23% of the oil it uses. 58% of its oil imports come from the Middle East. China is considering end or limit using corn to produce ethanol fuel because it has pushed up corn prices and turned China into a corn-importing country.

President Lula in Brazil did a marvelous job rebuilding his country. Brazil now has two operating nuclear reactors, a third under construction and four more large reactors planned to come on line by 2025. It has vast oil reserves and is drilling offshore. It is the world's second largest producer of ethanol fuel and the world's largest exporter. It produces ethanol from sugar cane, which unlike corn is cost effective.

The US on the other hand, is expecting to build only 4-6 nuclear reactors by 2018. It has restricted oil production, banning offshore drilling and is not allowing exploration and drilling in many areas where there are proven oil reserves. It is the largest ethanol producer in the world but is using corn. Corn is inefficient has to be subsidized and has driven up food prices.

We cannot recover with electric power that works when the sun shines and the wind blows. We cannot compete with developing countries without real energy.

We can and have to use our natural resources and experience to re-power the US. We can create millions of American jobs, stop sending money overseas and grow our economy.

On July 24, 2007, Robert C. Baugh, Executive Director AFL-CIO Industrial Council, testified before the Subcommittee on Energy and Air Quality of the House Energy and Commerce Committee:

"The task force also recognized that "reliable and affordable electrical energy is the lifeblood of the manufacturing, transportation, construction and service industries;" …and that we must "maintain diversity in the electric utility industry, by retaining all current generating options, including fossil fuels, nuclear, hydro and renewables, to ensure a stable, reliable and low-cost supply of electricity for the United States."

That statement is even more appropriate today.

Alex Majthenyi




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