Pawlenty says clean energy is focus, not 2nd stimulus plan

Governors were concerned about an economic plan that would directly benefit states, but Bush said it's too soon to talk about that.

By CONRAD WILSON, Star Tribune

February 26, 2008 at 3:23AM

WASHINGTON - Minnesota's Tim Pawlenty and dozens of other governors met with President Bush on Monday to take up national and world issues, including the clean-energy initiative that has been high on the agenda of the National Governors Association winter meeting.

Monday's talks at the White House included several Cabinet members, as well as members of the Joint Chiefs of Staff, trade representatives and others. The governors received updates on the housing crisis; the situations in Iraq, Afghanistan and Pakistan, along with transportation funding.

Speaking to reporters after the meeting, Pawlenty said: "States, as you know, have been a hotbed of activity trying to move toward a cleaner, more secure energy future, trying to reduce reliance on foreign oil. So the president kind of outlined the progress that has been made and his vision for a better, brighter future for America."

A concern for many governors was a second economic stimulus package that more directly benefits states. Bush has signed into law a stimulus plan that relies primarily on tax rebates to individuals.

"[The president] simply said it's too soon whether [additional stimulus] would be needed or whether he would support one, much less what the details of the package would be," Pawlenty said.

Gov. Edward Rendell of Pennsylvania, vice chairman of the governors' group but speaking on his own, said that if a package that improved transportation infrastructure was approved, more jobs could be created that could not be sent overseas and that could benefit U.S. companies.

"We think it is the best type of stimulus, even better than what was in the first package," Rendell said. "The first package was a step in the right direction and we are very pleased with Congress and the president acting in a bipartisan way. But we hope there will be a second round of stimulus."

Regarding federal transportation funding, Pawlenty said that the Bush administration continued to express its opposition to higher gas taxes.

"[Transportation] Secretary [Mary] Peters and the president talked about the importance of moving away from the gas tax as the source of funding roads and bridges and looking at other things," Pawlenty said.

"As we get more plug-in hybrid electric cars, as we get potentially hydrogen fuel-cell cars ... higher mileage cars, gas tax revenues are going to ... decline, and we're starting to see that already. Really, the challenge and opportunity is what are the new ways, what are the innovative ways, that governors and others can fund these needs across the country."

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CONRAD WILSON, Star Tribune