WHAT NEW ENERGY WANTS FROM WASHINGTON

Clean-Energy Wish List: Six Federal Policy Actions to Ensure U.S. Leadership
Ron Pernick, November 2, 2009 (Clean Edge)

"…In a recent Clean Edge/Green America report, we highlighted five financing models [see HOW NEW ENERGY GROWS] that could serve the U.S. on the capital investment side of the equation. But to remain competitive on the global clean-energy playing field, and to ensure our status as the world's preeminent innovation nation, the U.S. must implement [six] aggressive federal policy and regulatory actions…

"1) Enact a Federal Renewable Energy Standard (RES)…[A] federal RES would go a long way in providing guidance and guaranteeing that more states join the movement. We believe that a minimum federal RES of 20-25 percent by 2020 or 2025, designed with enforcement mechanisms -- real incentives for succeeding and penalties for failing -- is doable and desirable. And renewables must be clearly defined. There's a reason why 26 states out of 29 with [RES], like California and Illinois, don't include nuclear power and "clean coal" in their standards…"

Potent new Energy Efficiency standards will make a huge difference. (click to enlarge)

"2) Ensure Government Procurement of Clean Energy, Green Buildings, and Energy Efficiency… It has happened with aerospace, transistors, and other technologies in the past. As one of the largest single purchasing entities in the world, its purchasing decisions can have a significant impact on success vs. failure for an industry. Recently, the federal government has made some significant strides in aligning its purchasing with sustainable practices, like Obama's recent energy efficiency, resource conservation, and sustainability directive for federal agencies. But now government agencies must not only create their own plans, but meet targets, offer transparent information, and influence suppliers…

"3) Overhaul energy subsidies to shift from imported fossil fuels to domestic clean energy…The U.S. still provides hundreds of millions of dollars in subsidies to oil and gas industries that are controlled by some of the wealthiest companies on the planet… [T]he federal government should reassess this…and shift these subsidies to the industries of the future: solar, wind, geothermal, energy efficiency, and the like… 4) Improve Energy Efficiency Standards Across the Board…Energy efficiency…[is] the least expensive option for reducing energy demand. The federal government can go a long way in reducing energy use, greenhouse gas emissions, and U.S. reliance on foreign fossil fuel supplies by setting aggressive efficiency standards for vehicles, buildings, appliances, HVAC, industrial motors, and more…"

Fossil fuels and emissions-intensive energies get the bulk of subsidies. Level the playing field for the New Energies and watch them play to win. (click to enlarge)

"5) Put a Price on Carbon…[T]he most contentious policy recommendation. But...a combination of the following could go a long way in putting a price on carbon and setting an enforceable cap…a. Implement a transparent cap-and-trade system that has checks and balances…b. Deploy a carbon tax along with a clear and enforceable cap -- and make sure the tax is near revenue-neutral…c. Retain the right for the EPA to move forward with regulating carbon dioxide and other greenhouse gas emissions under the Clean Air Act…6) Support the Build Out of New, Reliable Electric Grids…The electric grids in the U.S. are outdated and deteriorating. By making the build out of new electric transmission lines and smart grids a national priority, the U.S. would be investing in our collective future. Policies would need to streamline and speed the process…and the federal government could play a supportive role in setting open standards for smart-grid devices and networks…

"…This is not some far flung pipe dream, but an achievable reality being pursued by smart, technologically savvy global stakeholders. But shifts in policy, like those highlighted above, will be required to meet these ambitious and critical national clean-tech goals. If the U.S. wishes to lead and innovate, the Federal government must act now."