Obama picks highlight energy policy; Schapiro to SEC

By Caren Bohan

CHICAGO (Reuters) - U.S. President-elect Barack Obama on Wednesday named former Iowa Gov. Tom Vilsack to head the Agriculture Department and Colorado Sen. Ken Salazar to become interior secretary, saying they would help further his goal of energy independence for the country.

Calling the two "guardians of the American landscape," Obama told a news conference they would help spearhead efforts to use less imported oil while expanding use of renewable energy such as biofuels.

The selections moved Obama closer to his goal of completing most of his Cabinet selections before he leaves on Saturday for a vacation in Hawaii, where he grew up.

Obama has also chosen Financial Industry Regulatory Authority executive Mary Schapiro to become chairwoman of the Securities and Exchange Commission, a Democratic official said. The SEC is under fire for failing to detect the massive fraud perpetrated by investment manager Bernard Madoff.

Schapiro served as an SEC commissioner for six years, then became chairwoman of the U.S. Commodity Futures Trading Commission in 1994 during the Clinton administration.

At the Financial Industry Regulatory Authority, Schapiro leads the largest non-governmental regulator for all securities firms doing business with the U.S. public.

Also on Wednesday, a senior Democrat told Reuters Rep. Ray LaHood, an Illinois Republican, had been offered the job of transportation secretary and would likely accept the job.

The pick would help Obama, a Democrat, fulfill a pledge to include members of the opposing party in the top tier of his incoming administration. Obama has already announced that he plans to keep Defense Secretary Robert Gates, who has served under several Republican presidents, in his current job.

LaHood, who hails from Obama's home state of Illinois and is said to have a rapport with the president-elect, is expected to accept the Cabinet position, the Democratic Party official said.

Salazar is a first-term senator from Colorado and Vilsack was a popular two-term governor of Iowa, a leading farm and ethanol-producing state.

REDUCING RELIANCE ON FOREIGN OIL

"I will do all I can to reduce America's reliance on foreign oil," said Salazar, who will take over an agency that handles leases of federal land for oil drilling along with other issues including national parks.

Vilsack said he would try to improve farm income in the face of the U.S. recession and to put healthier food into public nutrition programs.

Obama supports a $250,000 a year "hard cap" on farm subsidies with no exemption, a tightening of rules that could save $100 million to $200 million a year. He says he would encourage continued rural leadership in renewable energy.

A backer of renewable fuels, Vilsack ran for the Democratic presidential nomination for three months before withdrawing in February 2007 and supporting Hillary Clinton.

http://www.reuters.com/article/politicsNews/idUSTRE4BF0QZ20081218