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Posts Tagged ‘Smart Grid’

MendoCoastCurrent, June 25, 2010

The Federal Energy Regulatory Commission (FERC) today proposed to build on its Order No. 890 open access transmission reforms by establishing a closer link between regional electric transmission planning and cost allocation to help ensure that needed transmission facilities actually are built.

The Notice of Proposed Rulemaking (NOPR) is based on an extensive record: three years of monitoring implementation of Order No. 890, three regional technical conferences and examination of more than 150 sets of comments filed in response to an October 2009 request for comment on transmission planning and cost allocation. It proposes and seeks comment on requiring:

  • Transmission providers to establish a closer link between cost allocation and regional transmission planning by identifying and establishing cost allocation methods for beneficiaries of new transmission facilities;
  • Transmission planning to take into account needs driven by public policy requirements established by state or federal laws or regulations;
  • Neighboring transmission planning regions to improve their coordination with respect to facilities that are proposed to be constructed in two adjacent regions and could address transmission needs more efficiently than separate intraregional facilities; and
  • The removal from Commission-approved tariffs or agreements provisions that provide an undue advantage to an incumbent developer so that sponsors of transmission projects have the right, consistent with state or local laws or regulations, to build and own facilities selected for inclusion in regional transmission plans.

“Our nation needs a transmission grid that can accommodate rising consumer demand for a more diverse mix of power generators and the sophisticated technology of the smart grid,” FERC Chairman Jon Wellinghoff said. “To do that, we must make sure FERC transmission policies are open and fair to all.”

A significant aspect of the proposal is the requirement that transmission planning take into account public policy requirements, such as state-mandated renewable portfolio standards. Doing so during the transmission planning process will help ensure these legal requirements are met in a way that is fair and efficient to transmission customers.

The proposal also ties cost allocation to the regional transmission planning processes to facilitate the transition from planning to implementation. This ensures that only those consumers benefiting from transmission facilities are charged for associated costs, and gives each region the first opportunity to develop cost allocation mechanisms and identify how the benefits of transmission facilities will be determined. Comments are due 60 days after publication in the Federal Register.

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JEFF ST.  JOHN, Earth2Tech, March 1, 2010

Federal Energy Regulatory Commission Chairman Jon Wellinghoff wants his agency to have a lot more authority over planning cross-state transmission lines, as well as getting states and utilities to share the costs of building them. But on Monday, the utility industry pushed back. The Coalition for Fair Transmission Policy — an industry group made up of 10 big utilities including Southern Co., Consolidated Edison, Alliant, DTE Energy, PPL, Progress Energy and PSEG — says it will lobby to change proposed Senate legislation that it says could unfairly spread the costs of building big new transmission lines across multiple states. Or, to put it another way, “states and regions that get the benefits of new transmission should be the ones to pay for them,” Bruce Edelston, the coalition’s executive director, said Monday.

The coalition has a specific target —Senate Bill 1462, otherwise known as the American Clean Leadership Act. It wants to take out language from the bill that would give FERC more authority over transmission lines, and replace it with language that “precludes the allocation of transmission expansion costs to electric consumers unless there are measurable economic or reliability benefits for those consumers.”

Wellinghoff has said his agency needs more power to force states to agree on new ways to share the costs of massive new transmission lines to carry clean power from the places it’s most cheaply produced to where it’s most needed. Without it, he told a Senate panel in March, “it is unlikely that the Nation will be able to achieve energy security and economic stability.”

But FERC having more power could involve, for example, a transmission line from a North Dakota wind farm to Illinois’ Chicago suburbs, which might cross three states along its route. How should those “middle mile” states, which have to give up land and cover some costs of maintaining those lines, but may not receive power, be given a piece of the action? In Edelston’s view, the costs and benefits of such undertakings should be shared equally among all regions that have to give something up to let them happen. If a project can’t pay for itself while providing some financial benefit to utility customers in each of those states, it shouldn’t get built, he said.

President Barack Obama has called for 3,000 miles of new transmission lines to be built to help the country double its renewable energy use by 2012. Estimates on the costs of this new interstate energy highway system range from $100 billion to $200 billion, Edelston said — and those costs may be underestimated. A consortium of Eastern power grid operators said last year that transmission to carry wind power from the Midwest to the East could cost $80 billion over the next 15 years or so.

Wellinghoff has said that with such scale of the transmission lines needed, it might be hard to move quickly through the complicated, state-by-state siting and permitting mechanisms now in place — and that’s not to mention the universal opposition to having high-voltage power lines running through your backyard or environmentally sensitive region. For a sampling of the barriers to new transmission lines even within one state’s boundaries, look to California, where one big transmission line in the Central Valley was canceled in the face of local landowner and environmental opposition, and another in San Diego and Imperial counties is being challenged in court.

But Edelston pointed out that transmission projects are still moving forward under business-as-usual conditions, and several projects are underway by “Green Power Express” developer ITC for example. Other private efforts are underway, such as the Tres Amigas project that would connect the nation’s three mega-grid systems in the East, West and in Texas. Transmission projects take years to plan, permit and build, however, making long-range financing a challenge.

Not all utilities are against FERC’s sought-after expanded authority. American Electric Power, which serves 11 states, urged a Senate panel in March to expand federal authority over new transmission lines, including more broad cost-sharing, saying the economic benefits will outweigh the costs. FERC has already signed a MOU with EPA and the departments of Agriculture, Commerce, Defense, Energy and the Interior to work together on siting and permitting new transmission lines on federal lands, but that doesn’t necessarily solve the problem of states and their utilities arguing over costs and benefits.

For companies making next-generation transmission equipment such as HVDC and superconducting wire and cable — not to mention developers of utility-scale renewable power projects in hard-to-reach areas — it’s an important controversy to keep an eye on.

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DAVID TOW, Future Planet, January 16, 2010

By 2015 India and China will both have outstripped the US in energy consumption by a large margin. Cap and Trade carbon markets will have been established by major developed economies, including India and China, as the most effective way to limit carbon emissions and encourage investment in renewable energy, reforestation projects etc.

There will have been a significant shift by consumers and industry to renewable energy technologies- around 25%, powered primarily by the new generation adaptive wind and solar energy mega-plants, combined with the rapid depletion of the most easily accessible oil fields. Coal and gas will continue to play a major role at around 60% useage, with clean coal and gas technologies still very expensive. Nuclear technology will remain static at 10% and hydro at 5%.

Most new vehicles and local transport systems will utilise advanced battery or hydrogen electric power technology, which will continue to improve energy density outputs.

Efficiency and recycling savings of the order of 30% on today’s levels will be available from the application of smart adaptive technologies in power grids, communication, distribution and transport networks, manufacturing plants and consumer households. This will be particularly critical for the sustainability of cities across the planet. Cities will also play a critical role in not only supporting the energy needs of at least 60% of the planet’s population through solar, wind, water and waste energy capture but will feed excess capacity to the major power grids, providing a constant re-balancing of energy supply across the world.

By 2025 a global Cap and Trade regime will be mandatory and operational worldwide. Current oil sources will be largely exhausted but the remaining new fields will be exploited in the Arctic, Antarctic and deep ocean locations.  Renewable energy will account for 40% of useage, including baseload power generation. Solar and wind power will dominate in the form of huge desert solar and coastal and inland wind farms; but all alternate forms- wave, geothermal, secondary biomass, algael etc will begin to play a significant role.

Safer helium-cooled and fast breeder fourth generation modular nuclear power reactors will replace many of the older water-cooled and risk-prone plants, eventually  accounting for around 15% of energy production; with significant advances in the storage of existing waste in stable ceramic materials.

By 2035 global warming will reach a critical threshold with energy useage tripling from levels in 2015, despite conservation and efficiency advances. Renewables will account for 60% of the world’s power supply, nuclear 15% and fossils 25%. Technologies to convert CO2 to hydocarbon fuel together with more efficient recycling and sequestration, will allow coal and gas to continue to play a significant role.

By 2045-50 renewables will be at 75-80% levels, nuclear 12% and clean fossil fuels 10-15%. The first Hydrogen and Helium3 pilot fusion energy plants will be commissioned, with large-scale generators expected to come on stream in the latter part of the century, eventually reducing carbon emissions to close to zero.

However the above advances will still be insufficient to prevent the runaway effects of global warming. These long-term impacts will raise temperatures well beyond the additional two-three degrees centigrade critical limit.

Despite reduction in emissions by up to 85%, irreversible and chaotic feedback impacts on the global biosphere will be apparent. These will be triggered by massive releases of methane from permafrost and ocean deposits, fresh water flows from melting ice causing disruptions to ocean currents and weather patterns.

These will affect populations beyond the levels of ferocity of the recent Arctic freeze, causing chaos in the northern hemisphere and reaching into India and China and the droughts and heat waves of Africa, the Middle East and Australia.

The cycle of extreme weather events and rising oceans that threaten to destroy many major coastal cities will continue to increase, compounded by major loss of ecosystems, biodiversity and food capacity. This will force a major rethink of the management of energy and climate change as global catastrophe threatens.

Increasingly desperate measures will be canvassed and tested, including the design of major geo-engineering projects aimed at reducing the amount of sunlight reaching earth and reversal of the acidity of the oceans. These massive infrastructure projects would have potentially enormous ripple-on effects on all social, industrial and economic systems. They are eventually assessed to be largely ineffective, unpredictable and unsustainable.

As forecasts confirm that carbon levels in the atmosphere will remain high for the next 1,000 years, regardless of mitigating measures, priorities shift urgently to the need to minimise risk to life on a global scale, while protecting civilisation’s core infrastructure, social, knowledge and cultural assets.

Preserving the surviving natural ecosystem environment and the critical infrastructure of the built environment, particularly the Internet and Web, will now be vital. The sustainability of human life on planet Earth, in the face of overwhelming catastrophe, will be dependent to a critical degree on the power of the intelligent Web 4.0, combining human and artificial intelligence to manage food, water, energy and human resources.

Only the enormous problem-solving capacity of this human-engineered entity, will be capable of ensuring the continuing survival of civilisation as we know it.

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RenewableEnergyFocus.com, November 25, 2009

The U.S. Department of Energy (DOE) will fund $18 million to support small business innovation research, development and deployment of clean and renewable energy technologies, including projects to advance wave and current energy technologies, ocean thermal energy conversion systems, and concentrating solar power (CSP) for distributed applications.

The funding will come from the American Recovery & Reinvestment Act and, in this first phase of funding, 125 grants of $150,000 each will be awarded to 107 small advanced technology firms across the United States for clean and renewable energy. The companies were selected from a pool of 950 applicants through a special fast-track process with an emphasis on near-term commercialization and job creation.

Companies which demonstrate successful results with their new clean and renewable technologies and show potential to meet market needs, will be eligible for $60m in a second round of grants in the summer of 2010.

“Small businesses are drivers of innovation and are crucial to the development of a competitive clean energy US economy,” says Energy Secretary Steven Chu. “These investments will help ensure small businesses are able to compete in the clean energy economy, creating jobs and developing new technologies to help decrease carbon pollution and increase energy efficiency.”

Grants were awarded in 10 clean and renewable energy topic areas, including $2.8m for 12 projects in Advanced Solar Technologies where projects will focus on achieving significant cost and performance improvements over current technologies, solar-powered systems that produce fuels, and concentrated solar power systems for distributed applications.

Another $1.7m will go to 12 clean and renewable energy projects in Advanced Water Power Technology Development where projects will focus on new approaches to wave and current energy technologies and ocean thermal energy conversion systems.

Other key areas are:

  • Water Usage in Electric Power Production (decreasing the water used in thermoelectric power generation and developing innovative approaches to desalination using Combined Heat and Power projects);
  • Advanced Building Air Conditioning and Cool Roofs (improve efficiency of air conditioning and refrigeration while reducing GHG emissions);
  • Power Plant Cooling (advanced heat exchange technology for power plant cooling);
    Smart Controllers for Smart Grid Applications (develop technologies to support electric vehicles and support of distributed energy generation systems);
  • Advanced Industrial Technologies Development (improve efficiency and environmental performance in the cement industry);
  • Advanced Manufacturing Processes (improving heat and energy losses in energy intensive manufacturing processes);
  • Advanced Gas Turbines and Materials (high performance materials for nuclear applications and novel designs for high-efficiency and low-cost distributed power systems); and
  • Sensors, Controls, and Wireless Networks (building applications to minimise power use and power line sensor systems for the smart grid).

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Globe.Net, October 27, 2009

President Barack Obama has announced the largest single energy grid modernization investment in U.S. history, funding a broad range of technologies that will create tens of thousands of jobs, save energy and allow consumers to cut their electric bills.

Speaking at Florida Power and Light’s (FPL) DeSoto Next Generation Solar Energy Center, President Barack Obama today announced the largest single energy grid modernization investment in U.S. history, funding a broad range of technologies that will spur the nation’s transition to a smarter, stronger, more efficient and reliable electric system.

The $3.4 billion in grant awards – part of the American Reinvestment and Recovery Act – will be matched by industry funding for a total public-private investment worth over $8 billion. Full listings of the grant awards by category and state are available here and a map of the awards is available here.

An analysis by the Electric Power Research Institute (EPRI) estimates that the implementation of smart grid technologies could reduce electricity use by more than 4% by 2030.  That would mean a savings of $20.4 billion for businesses and consumers around the country. One-hundred private companies, utilities, manufacturers, cities and other partners received Smart Grid Investment Grant awards today, including FPL, which will use its $200 million in funding to install over 2.5 million smart meters and other technologies that will cut energy costs for its customers.

The awards announced represent the largest group of Recovery Act awards ever made in a single day and the largest batch of Recovery Act clean energy grant awards to-date. The announcements include:

  • Empowering Consumers to Save Energy and Cut Utility Bills — $1 billion. These investments will create the infrastructure and expand access to smart meters and customer systems so that consumers will be able to access dynamic pricing information and have the ability to save money by programming smart appliances and equipment to run when rates are lowest.
  • Making Electricity Distribution and Transmission More Efficient — $400 million. The Administration is funding several grid modernization projects across the country that will significantly reduce the amount of power that is wasted from the time it is produced at a power plant to the time it gets to your house.  By deploying digital monitoring devices and increasing grid automation, these awards will increase the efficiency, reliability and security of the system, and will help link up renewable energy resources with the electric grid.
  • Integrating and Crosscutting Across Different “Smart” Components of a Smart Grid — $2 billion. Much like electronic banking, the Smart Grid is not the sum total of its components but how those components work together.  The range of projects funded will incorporate various components into one system – including smart meters, smart thermostats and appliances, syncrophasors, automated substations, plug in hybrid electric vehicles, renewable energy sources, etc.
  • Building a Smart Grid Manufacturing Industry — $25 million. These investments will help expand our manufacturing base of companies that can produce the smart meters, smart appliances, synchrophasors, smart transformers, and other components for smart grid systems in the United States and around the world – representing a significant and growing export opportunity for our country and new jobs for American workers.

More details on the proposed projects are available here. Click here for the full test of remarks by President Obama on Recovery Act Funding for Smart Grid Technology.

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PODESTA, GORDON, HENDRICKS & GOLDSTEIN, Center for American Progress, September 21, 2009

ctr-4-american-progressWith unemployment at 9.5%, and oil and energy price volatility driving businesses into the ground, we cannot afford to wait any longer. It is time for a legislative debate over a comprehensive clean energy investment plan. We need far more than cap and trade alone.

The United States is having the wrong public debate about global warming. We are asking important questions about pollution caps and timetables, carbon markets and allocations, but we have lost sight of our principal objective: building a robust and prosperous clean energy economy. This is a fundamentally affirmative agenda, rather than a restrictive one. Moving beyond pollution from fossil fuels will involve exciting work, new opportunities, new products and innovation, and stronger communities. Our current national discussion about constraints, limits, and the costs of transition misses the real excitement in this proposition. It is as if, on the cusp of an Internet and telecommunications revolution, debate centered only on the cost of fiber optic cable. We are missing the big picture here.

Let’s be clear: Solving global warming means investment. Retooling the energy systems that fuel our economy will involve rebuilding our nation’s infrastructure. We will create millions of middle-class jobs along the way, revitalize our manufacturing sector, increase American competitiveness, reduce our dependence on oil, and boost technological innovation. These investments in the foundation of our economy can also provide an opportunity for more broadly shared prosperity through better training, stronger local economies, and new career ladders into the middle class. Reducing greenhouse gas pollution is critical to solving global warming, but it is only one part of the work ahead. Building a robust economy that grows more vibrant as we move beyond the Carbon Age is the greater and more inspiring challenge.

Reducing greenhouse gas emissions to avert dangerous global warming is a moral challenge, but it is also an economic, national security, social, and environmental imperative. The “cap and trade” provisions, which will set limits on pollution and create a market for emissions reductions that will ultimately drive down the cost of renewable energy and fuel, represent a very important first step and a major component in the mix of policies that will help build the coming low-carbon economy. But limiting emissions and establishing a price on pollution is not the goal in itself, and we will fall short if that is all we set out to do. Rather, cap and trade is one key step to reach the broader goal of catalyzing the transformation to an efficient and sustainable low-carbon economy. With unemployment at 9.5%, and oil and energy price volatility driving businesses into the ground, we cannot afford to wait any longer. It is time for a legislative debate over a comprehensive clean energy investment plan. We need far more than cap and trade alone.

This is not just an exercise in rhetoric. Articulating and elevating a comprehensive plan to invest in clean energy systems and more efficient energy use will affect policy development and the politics surrounding legislation now moving through the Senate, as well as international negotiations underway around the globe. The current debate, which splits the issue into the two buckets of “cap and trade” and “complementary policies,” has missed the comprehensive nature of the challenge and its solutions. It also emphasizes the challenge of pollution control instead of organizing policy for increased development, market growth, reinvestment in infrastructure, and job creation through the transition to a more prosperous, clean energy economy.

This paper lays out the framework for just such an investment-driven energy policy, the pieces of which work together to level the playing field for clean energy and drive a transformation of the economy. Importantly, many elements of this positive clean-energy investment framework are already codified within existing legislation such as the American Clean Energy and Security Act, passed by House of Representatives earlier this year. But with all the attention given to limiting carbon, too little attention has been placed on what will replace it. These critical pieces of America’s clean energy strategy should be elevated in the policy agenda and political debate as we move forward into the Senate, and used to help move legislation forward that advances a proactive investment and economic revitalization strategy for the nation.

Read the full report here.

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MendoCoastCurrent, September 21, 2009

wave-ocean-blue-sea-water-white-foam-photoThe U.S. Department of Energy recently announced that it is providing $14.6 million in funding for 22 water power projects to move forward in the commercial viability, market acceptance and environmental performance of new marine and hydrokinetic technologies as well as conventional hydropower plants.

The selected projects will further the nation’s supply of domestic clean hydroelectricity through technological innovation to capitalize on new sources of energy, and will advance markets and research to maximize the nation’s largest renewable energy source.

“Hydropower provides our nation with emissions-free, sustainable energy.  By improving hydropower technology, we can maximize what is already our biggest source of renewable energy in an environmentally responsible way.  These projects will provide critical support for the development of innovative renewable water power technologies and help ensure a vibrant hydropower industry for years to come,” said Secretary Chu.

Recipients include the Electric Power Research Institute (EPRI) in Palo Alto, California, receiving $1.5 million, $500,000 and $600,000 for three projects with the Hydro Research Foundation in Washington, DC, receiving to $1 million.

According to the Dept. of Energy, selected projects address five topic areas:

  • Hydropower Grid Services – Selection has been made for a project that develops new methods to quantify and maximize the benefits that conventional hydropower and pumped storage hydropower provide to transmission grids.
  • University Hydropower Research Program – Selected projects will be for organizations to establish and manage a competitive fellowship program to support graduate students and faculty members engaged in work directly relevant to conventional hydropower or pumped storage hydropower.
  • Marine & Hydrokinetic Energy Conversion Device or Component Design and Development – Selections are for industry-led partnerships to design, model, develop, refine, or test a marine and hydrokinetic energy conversion device, at full or subscale, or a component of such a device.
  • Marine and Hydrokinetic Site-specific Environmental Studies – Selected projects are for industry-led teams to perform environmental studies related to the installation, testing, or operation of a marine and hydrokinetic energy conversion device at an open water project site.
  • Advanced Ocean Energy Market Acceleration Analysis and Assessments – Selections are for a number of energy resource assessments across a number of marine and hydrokinetic resources, as well as life-cycle cost analyses for wave, current and ocean thermal energy conversion technologies.

For a complete list of the the funded projects, go here.

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MendoCoastCurrent, July 19, 2009

SmartGrid-graphicThe Federal Energy Regulatory Commission (FERC) moved to accelerate the development of a smart electric transmission system that could improve the efficiency and operation of the grid. The Smart Grid Policy Statement sets priorities for work on development of standards for the developement of a reliable and smart grid.

Smart grid advancements are digital, enabling two-way communications and real-time coordination of information from both generating plants and demand-side resources. Thus improving the efficiency of the bulk-power system with the goal of achieving long-term savings for consumers. Also providing tools for consumers to control their electricity costs.

The policy issued today tracks the proposed policy issued March 19, 2009 and sets priorities for development of smart grid standards to achieve interoperability and functionality of smart grid systems and devices. It also sets FERC policy for recovery of costs by utilities that act early to adopt smart grid technologies.

“Changes in how we produce, deliver and consume electricity will require ‘smarter’ bulk power systems with secure, reliable communications capabilities to deliver long-term savings for consumers,” FERC Chairman Jon Wellinghoff said. “Our new smart grid policy looks at the big picture by establishing priorities for development of smart grid standards, while giving utilities that take the crucial early steps to invest in smart grid technologies needed assurance about cost recovery.”

“The new policy adopts as a Commission priority the early development by industry of smart grid standards to:

  • Ensure the cybersecurity of the grid;
  • Provide two-way communications among regional market operators, utilities, service providers and consumers;
  • Ensure that power system operators have equipment that allows them to operate reliably by monitoring their own systems as well as neighboring systems that affect them;
  • Coordinate the integration into the power system of emerging technologies such as renewable resources, demand response resources, electricity storage facilities and electric transportation systems.

So early adopters of smart grid technologies will recover smart grid costs if they demonstrate that those costs serve to protect cybersecurity and reliability of the electric system, and have the ability to be upgraded, among other requirements.

And explains that by adopting these standards for smart grid technologies, FERC will not interfere with any state’s ability to adopt whatever advanced metering or demand response program it chooses.

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Joseph Romm, ClimateProgress, June 22, 2009

cathy-zoiOn June 19th, the United States Senate, by voice vote, confirmed Cathy Zoi to be the Assistant Secretary for Energy Efficiency and Renewable Energy.

Cathy Zoi, CEO of Al Gore’s Alliance for Climate Protection, will now serve as Assistant Secretary for Energy Efficiency & Renewable Energy (EERE) under Energy Secretary Steven Chu.

Zoi has a unique combination of expertise in clean energy and high level federal government experience — she was Chief of Staff in the Clinton White House Office on Environmental Policy, managing the staff working on environmental and energy issues (recent writing below). Since I have known Zoi for nearly 2 decades and since in 1997 I held the job she is now nominated for, I can personally attest she will be able to hit the ground running in the crucial job of overseeing the vast majority of the development and deployment of plausible climate solutions technology.

What does EERE do? You could spend hours on their website, here, exploring everything they are into. Of the 12 to 14 most plausible wedges the world needs to stabilize at 350 to 450 ppm — the full global warming solution — EERE is the principal federal agency for working with businesses to develop and deploy the technology for 11 of them!

The stimulus and the 2009 budget dramatically increases — more than doubles — EERE funding for technology development and deployment. Zoi’s most important job is deployment, deployment, deployment. And again she is a uniquely qualified to get clean energy into the marketplace. Zoi was a manager at the US Environmental Protection Agency where “she pioneered the Energy Star Program,” which was the pioneering energy efficiency deployment program launched in the early 1990s.

So we know Zoi gets energy efficiency. Here’s what she wrote last year about “Embracing the Challenge to Repower America“:

Many Americans have a hard time thinking about our energy future, largely because their energy present is so challenging. With gasoline prices hovering near $4 per gallon and rising energy bills at home and at work, our economy is struggling with the burden of imported oil and reliance on fossil fuels. The need to satisfy the nation’s oil appetite has shaped our foreign and defense postures, and is a primary reason for our current entanglements overseas. Extreme weather here in the U.S. has us feeling uneasy. And the scientists remind us more urgently every week about the mounting manifestations of the climate crisis.

To solve these problems, we must repower our economy. Fast.

Vice President Gore has issued a challenge for us to do just that: Generate 100% of America’s electricity from truly clean sources that do not contribute to global warming — and do so within 10 years. It is an ambitious but attainable goal. American workers, businesses and families are up to it.

Meeting the challenge to repower America will deliver the affordability, stability and confidence our economy needs, as well as a healthy environment. And it will generate millions of good American jobs that can’t be outsourced.

It will involve simultaneous work on three fronts. First, get the most out of the energy we currently produce. Second, quickly deploy the clean energy technologies that we already know can work. Third, create a new integrated electricity grid to deliver power from where it is generated to where people live.

The first front involves energy efficiency. The potential here is vast and largely untapped. Now is the time to begin a comprehensive national energy upgrade that will reduce the energy bills of homeowners and businesses — even as costs of energy supplies may be on the rise.

The second front requires expanding the use of existing generation technologies. This will include accelerated growth in our wind energy industry. We have a strong running start — the U.S. was the leading installer of wind technology last year. Texas oilman T. Boone Pickens says we can get at least 20 percent of America’s electricity from wind power. We think he’s right.

Solar thermal power is also booming and poised for rapid acceleration. The resource potential is so vast that a series of collectors in the American southwest totaling just 92 miles on a side could power our entire electricity system. Utilities in Arizona, Nevada, and California have already begun to tap this potential, with plans for powering nearly one million homes underway.

Advances in thermal storage technologies, along with investments in our grid, mean that solar thermal power will be able to provide electricity at night, like coal power does today.

Nuclear and hydroelectric power facilities currently combine to contribute roughly 25% of America’s electricity. That will continue. Coal and natural gas can also play a significant role by capturing and storing their carbon emissions safely. Our hope is that this CCS emissions technology can be developed and commercialized quickly. Without it, coal isn’t “clean.” There are reportedly a few CCS plants now proposed in the U.S., although another roughly 70 proposed coal plants have no such plans to capture their carbon pollution.

The third front is the creation of a unified national electricity grid. A “super smart grid” will form the backbone and the entire skeleton of our modern power system. Efficient high voltage lines will move power from remote, resource-rich areas to places where power is consumed.

It will also allow households to make money by automatically using energy at the cheapest times and selling electricity back to the grid when a surplus is available can. A smart meter spins both ways.

Meeting this 100% clean power challenge will require a one-time capital investment in new infrastructure, with the bulk of funding coming from private finance. If policies reward reducing global warming pollution, private capital will flow towards clean energy solutions.

But the most important cost figures to consider may be the ones we’ll avoid. American utilities will spend roughly $100 billion this year on coal and natural gas to fuel power plants. And more next year and the year after that — until we make the switch to renewable fuels that are free and limitless.

The 10-year time frame is key.

The science, the economic pressures and our national security concerns demand swift, concerted action. The best climate scientists tell us we must make rapid progress to turn the corner on global carbon emissions or the ecological consequences will be irreversible.

The solutions are available now — there are no technology or material impediments. Failing to move swiftly will deprive the U.S. economy of earnings from one of the fastest growing technology sectors in the world.

We’ve done this before. We mobilized the auto industry in 12 months to service the hardware needs of WWII. The Marshall Plan to reconstruct Europe was executed in four years. And as Vice President Gore pointed out, we reached the moon in eight years, not ten.

We can do this. With support from the American people and leadership from elected officials, America can accept the challenge of building a safe, secure and sustainable energy future.”

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MendoCoastCurrent, June 17, 2009

300_127728The West has been at the forefront of the country’s development and implementation of renewable energy technologies, leading the way in passing effective Renewable Portfolio Standards and harnessing the region’s significant renewable energy resources. The initiatives announced at the recent annual western governors’ meeting offered a collaboration of federal and state efforts to help western states continue to lead in energy and climate issues, while driving U.S. economic recovery and protecting the environment.

Secretaries Chu, Salazar and Vilsack and Chairs Sutley and Wellinghoff offered the western state governors next steps to tap renewable energy potential and create green jobs, focusing on energy strategies and initiatives to support their states and constituents.

Included in these initiatives are the development of a smarter electric grid and more reliable transmission system, protection of critical wildlife corridors and habitats, promoting the development of renewable energy sources and laying the groundwork for integrating these energy sources onto the national electricity grid.

“These steps send an unmistakable message: the Obama Administration will be a strong partner with the West on clean energy” Energy Secretary Steven Chu said. “We will create jobs, promote our energy independence and cut our carbon emissions by unlocking the enormous potential for renewable energy in the Western United States”

“Our collective presence here demonstrates the Obama Administration’s commitment to working with the Western governors as we begin to meet the challenge of connecting the sun of the deserts and the wind of the plains with the places where people live” said Ken Salazar, Secretary of the Interior.

“President Obama has been very clear about his intent to address our country’s long-term energy challenges and this multi-department approach will help increase production of energy from renewable sources and generate new, green jobs in the process” said Agriculture Secretary Tom Vilsack. “When we produce more energy from clean sources, we help protect our farmland and our forests for future generations”

“With their focus on clean energy, electricity transmission and Western water supply, the Governors have shown a commitment to addressing the critical issue of climate change and the challenges it presents to state and local governments” said Nancy Sutley, Chair of the White House Council on Environmental Quality. “The areas covered during this meeting, from water supplies and renewable energy, to fostering international cooperation on energy and the environment, are issues we are also focused on at the White House under the leadership of President Obama. We look forward to working together to meet these challenges”

“FERC looks forward to coordinating with DOE and working with the states and local planning entities and other interested parties in the course of facilitating the resource assessments and transmission plans” FERC Chairman Jon Wellinghoff said.

The actions announced include:

$80 Million for Regional and Interconnection Transmission Analysis and Planning:

The Department of Energy announced $80 million in new funding under the American Reinvestment and Recovery Act to support long-term, coordinated interconnection transmission planning across the country. Under the program, state and local governments, utilities and other stakeholders will collaborate on the development and implementation of the next generation of high-voltage transmission networks.

The continental United States is currently served by three separate networks or “interconnections” – the Western, Eastern and Texas interconnections. Within each network, output and consumption by the generation and transmission facilities must be carefully coordinated. As additional energy sources are joined to the country’s electrical grid, increased planning and analysis will be essential to maintain electricity reliability.

Secretary Chu announced the release of a $60 million solicitation seeking proposals to develop long-term interconnection plans in each of the regions, which will include dialogue and collaboration among states within an interconnection on how best to meet the area’s long-term electricity supply needs. The remaining $20 million in funding will pay for supporting additional transmission and demand analysis to be performed by DOE’s national laboratories and the North American Electric Reliability Corporation (NERC).

$50 Million for Assistance to State Electricity Regulators:

Secretary Chu announced $50 million in funding from the American Recovery and Reinvestment Act to support state public utility commissions and their key role in regulating and overseeing new electricity projects, which can include smart grid developments, renewable energy and energy efficiency programs, carbon capture and storage projects, etc. The funds will be used by states and public utility commissions to hire new staff and retrain existing employees to accelerate reviews of the large number of electric utility requests expected under the Recovery Act. Public utility commissions in each state and the District of Columbia are eligible for grants.

Nearly $40 Million to Support Energy Assurance Capabilities for States:

The Department of Energy also announced that $39.5 million in Recovery Act funding will be available for state governments to improve emergency preparedness plans and ensure the resiliency of the country’s electrical grid. Funds will be used by the cities and states to hire or retrain staff to prepare them for issues such as integrating smart grid technology into the transmission network, critical infrastructure interdependencies and cybersecurity. Throughout this process, the emphasis will be on building regional capacity to ensure energy reliability, where states can help and learn from one another. Funds will be available to all states to increase management, monitoring and assessment capacity of their electrical systems.

$57 Million for Wood-to-Energy Grants and Biomass Utilization Projects:

The Department of Agriculture announced $57 million in funding for 30 biomass projects. The projects – $49 million for wood-to-energy grants and $8 million for biomass utilization – are located in 14 states, including Arizona, California, Colorado, Idaho, North Dakota, New Mexico, Nevada, Oregon and Washington.

In keeping with the Obama Administration’s interest in innovative sources for energy, these Recovery Act funds may help to create markets for small diameter wood and low value trees removed during forest restoration activities. This work will result in increased value of biomass generated during forest restoration projects, the removal of economic barriers to using small diameter trees and woody biomass and generation of renewable energy from woody biomass. These funds may also help communities and entrepreneurs turn residues from forest restoration activities into marketable energy products. Projects were nominated by Forest Service regional offices and selected nationally through objective criteria on a competitive basis.

Biomass utilization also provides additional opportunities for removal of hazardous fuels on federal forests and grasslands and on lands owned by state, local governments, private organizations and individual landowners.

Memorandum of Understanding to Improve State Wildlife Data Systems, Protect Wildlife Corridors and Key Habitats across the West:

During today’s Annual Meeting in Park City, Utah, Secretaries Salazar, Vilsack and Chu agreed to partner with the Western Governors’ Association to enhance state wildlife data systems that will help minimize the impact to wildlife corridors and key habitats. Improved mapping and data on wildlife migration corridors and habitats will significantly improve the decision-making process across state and federal government as new renewable and fossil energy resources and transmission systems are planned. Because the development of this data often involves crossing state lines and includes information from both private and public lands, increased cooperation and coordination, like this Memorandum of Understanding (MOU), are important to developing a comprehensive view on the impact of specific energy development options.

Western Renewable Energy Zones Report Identifies Target Areas for Renewable Energy Development:

The Department of Energy and the Western Governors’ Association released a joint report by the Western Renewable Energy Zones initiative that takes first steps toward identifying areas in the Western transmission network that have the potential for large-scale development of renewable resources with low environmental impacts. Participants in the project included renewable energy developers, tribal interests, utility planners, environmental groups and government policymakers. Together, they developed new modeling tools and data to facilitate interstate collaboration in permitting new multistate transmission lines.

In May 2008, the Western Governors’ Association and DOE launched the Western Renewable Energy Zones initiative to identify those areas in the West with vast renewable resources to expedite the development and delivery of renewable energy to where it is needed. Under the Initiative, renewable energy resources are being analyzed within 11 states, two Canadian provinces and areas in Mexico that are part of the Western Interconnection.

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Electric Light & Power, June 11, 2009

menu01onAs the Obama administration shapes its policy on transmission planning, siting and cost allocation, the Large Public Power Council (LPPC) has sent a joint letter voicing its transmission policy views and concerns to Energy Secretary Chu, Interior Secretary Salazar, Agriculture Secretary Vilsack, FERC Chairman Wellinghoff, White House Council on Environmental Quality Chair Sutley and Presidential Energy Advisor Carol Browner.

The letter was sent to the Obama policy makers by Bob Johnston, Chair of the 23 member not-for-profit utility organization. Members of the LPPC own and operate nearly 90% of the transmission investment owned by non-federal public power entities in the United States.

The LPPC told the Obama Administration that it is “most supportive of a framework for interconnection-wide planning that addresses the growing need to interconnect renewable resources to the grid.”

“Many of our members are leaders in renewable deployment and energy efficiency. We are committed to these policy goals and closely tied to the values of our local communities,” the LPPC emphasized. “But we also believe that creating a new planning bureaucracy could be costly and counterproductive in achieving needed infrastructure development.”

The LPPC voiced strong support for the region-wide planning process recently mandated by FERC Order 890 that directed implementation of new region-wide planning processes that the LPPC claims “require an unprecedented level of regional coordination, transparency and federal oversight.”

“It seems quite clear that federal climate legislation and a national renewable portfolio standard will further focus these planning processes, the LPPC asserted. “LPPC fully expects that the regional processes to which parties have recently committed will take on new urgency and purpose. Adding a planning bureaucracy to that mix will be time consuming and will likely delay rather than expedite transmission development.”

The LPPC also told the Obama policy makers that, “it would be unnecessary, inequitable and counterproductive to allocate the cost of a new transmission superhighway to all load serving entities without regard to their ability to use the facilities or their ability to rely on more economical alternatives to meet environmental goals.”

The LPPC contended, “that certain proposals it has reviewed to allocate the cost of new transmission on an interconnection-wide basis would provide an enormous and unnecessary subsidy to large scale renewable generation located far from load centers, at the expense of other, potentially more economical alternatives. Utilities, state regulators, and regional transmission organizations should determine how to meet the environmental goals established by Congress most effectively by making economic choices among the array of available options, without subsidy of one technology or market segment over others.”

The LPPC letter further claimed that the cost of a massive transmission build-out will be substantial and that cost estimates they had reviewed “appear to be meaningfully understated.” The LPPC estimates that nationwide costs for such a build-out “may range between $135 billion and $325 billion, equating to a monthly per customer cost between $14 and $35.  This is a critical matter for LPPC members, as advocates for the consumers we serve.”

The Large Public Power Council letter concluded by offering its support for additional federal siting authority for multi-state transmission facilities “in order to overcome the limited ability of individual states to address multi-state transmission projects to meet regional needs. LPPC is confident that such new authority can be undertaken in consultation with existing state siting authorities in a manner that capitalizes on existing expertise and ensures that state and local concerns are addressed in the siting process.”

The LPPC’s membership includes 23 of the nation’s largest publicly owned, not-for-profit energy systems. Members are located in 10 states and provide reliable, electricity to some of the largest cities in the U.S. including Los Angeles, Seattle, Omaha, Phoenix, Sacramento, San Antonio, Jacksonville, Orlando and Austin.

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MARK CLAYTON, The Christian Science Monitor, June 8, 2009

article_photo1_smWhen giving his slide presentation on America’s new energy direction, Jon Wellinghoff sometimes sneaks in a picture of himself seated in a midnight blue, all-electric Tesla sports car.

It often wins a laugh, but makes a key point: The United States is accelerating in a new energy direction under President Obama’s newly appointed chairman of the Federal Energy Regulatory Commission (FERC). At the same time, FERC’s key role in the nation’s energy future is becoming more apparent.

Energy and climate legislation now pending in Congress would put in FERC’s hands a sweeping market-based cap-and-trade system intended to lower industrial greenhouse-gas emissions.

Besides its role granting permits for new offshore wind power, the agency is also overseeing planning for transmission lines that could one day link Dakota wind farms to East Coast cities, and solar power in the Southwest to the West Coast.

“FERC has always been important to power development,” says Ralph Cavanagh, energy program codirector for the Natural Resources Defense Council, a New York-based environmental group. “It’s just that people haven’t known about it. They will pretty soon.”

That’s because Mr. Wellinghoff and three fellow commissioners share an affinity for efficiency and renewable energy that’s not just skin-deep, Mr. Cavanagh and others say.

Wellinghoff started his energy career as a consumer advocate for utility customers in Nevada before being appointed by President Bush in 2005 as a FERC commissioner. He was a key author of “renewable portfolio standards” that require Nevada’s utilities to incorporate more renewable power in their energy mix. Now he’s the nation’s top energy regulator.

It’s clear that FERC has a mandate to speed change to the nation’s power infrastructure, Wellinghoff says.

When it comes to the extra work and complexity FERC will encounter if Congress appoints FERC to administer a mammoth carbon-emissions cap-and-trade program, Wellinghoff is eager, yet circumspect.

“We believe we are fully capable of fulfilling that role with respect to physical trading [of carbon allowances],” he says during an interview in Washington. “We’ve demonstrated our ability to respond efficiently and effectively to undertake those duties Congress has given to us. Unfortunately, the result of that is they give you more to do.”

While the US Department of Energy controls long-term energy investment decisions, FERC’s four commissioners (a fifth seat is vacant) appear determined to ensure that wind, solar, geothermal, and ocean power get equal access to the grid.

The commissioners are also biased against coal and nuclear power on at least one key factor: cost.

Many in the power industry believe that renewable energy still costs too much. Not Wellinghoff, who says: “I see these distributed resources [solar, wind, natural-gas microturbines, and others] coming on right now as being generally less expensive.”

That might sound surprising. Yet, with coal and nuclear power plants costing billions of dollars – and raising environmental issues such as climate change and radioactive waste – others also see renewable power as the low-cost option.

Wellinghoff’s outspoken views have irritated some since his March selection as chairman.

Last month, for instance, he drew fire from nuclear-energy boosters in Congress after he characterized as “an anachronism” the idea of meeting future US power demand by building large new coal-fired and nuclear power plants.

“You don’t need fossil fuel or nuclear [plants] that run all the time,” Wellinghoff told reporters at a US Energy Association Forum last month. Then he added: “We may not need any, ever.”

That set off a salvo from Sen. Lind sey Graham (R) of South Carolina, a staunch nuclear-power advocate. “The public is ill-served when someone in such a prominent position suggests alternative-energy programs are developed and in such a state that we should abandon our plans to build more plants,” he said in a statement.

But to others, Wellinghoff is the epitome of what the US needs: a public servant zeroed in on energy security, the environment, efficiency, and keeping energy costs down.

“Wellinghoff has been a longtime supporter of efficiency and consumer interests,” says Steven Nadel, executive director of the American Council for an Energy Efficient Economy, an energy advocacy group. “I would call him a visionary. He’s not just content with the status quo.”

In Wellinghoff’s vision of the future, where the cost of carbon dioxide emissions is added to the price of coal-fired power plants and natural-gas turbines, it may be less expensive for consumers to set their appliances to avoid buying power at peak times. Or they may choose to buy power from a collection of microturbines, fuel cell, wind, solar, biomass, and ocean power systems.

“We’re going to see more distributed generation – and we’re already starting to see that happen,” Wellinghoff says. “Not only renewable generation like photovoltaic [panels] that people put on their homes and businesses, but also fossil-fuel systems like combined heat and power,” called cogeneration units.

To coordinate and harmonize this fluctuating phalanx of power sources, customers will need to know and be able to respond to the price of power, Wellinghoff says. They will also need a new generation of appliances that switch off automatically to balance power supply and demand peaks.

But there are huge challenges with a power grid that provides energy from a mix of wind, solar, and other renewable power.

“You’re going to have to upgrade this whole grid [along the East Coast], he says. “You can’t just move [wind and wave power] from offshore to load centers onshore without looking at the effect on reliability – Florida to Maine.”

As the percentage of renewable power rises toward 20 to 25% of grid power from around 3% today, there must be a backup to fill gaps when intermittent winds stop blowing or the sun doesn’t shine.

In a decade or more from now, Wellinghoff, says millions of all-electric or plug-in electric-gas hybrid vehicles could plug into the grid and supply spurts of power to fill in for dipping wind and solar output.

“There are new technologies,” he says, “that in the next three to five years will advance the grid to a new level.”

Gesturing to a drawing board on the wall, he hops up from his chair, his hands flicking across a sketch of the eastern half of the US with power lines fanning out from the Plains states to the East Coast.

“This is another grid option that would take a lot of power that’s now constrained in the Midwest, that can be developed – wind energy there – and move it to all the load centers [cities] on the East Coast,” he says.

Similarly, lines could be built across the Rockies to connect wind power in Montana and Wyoming to the West Coast. Instead of building power lines from the Midwest to the East Coast, “a lot of people would say, ‘No, no, let’s look first look at the wind offshore,’ ” he says.

Whether it’s wind from the Plains or the ocean, the resulting variability will have an impact on grid reliability if action isn’t taken, Wellinghoff says.

“You’re going to have to upgrade this whole grid here,” he says, gesturing to the East Coast. “You can’t just move [power] from offshore to load centers onshore without looking at the effect on reliability.”

Reliability of the grid remains paramount – Job No. 1 for the Federal Energy Regulatory Commission. But if boosting renewable power to 25% by 2025 – the Obama administration’s goal – means spreading Internet-connected controllers across substations and transmission networks, then cybersecurity to protect them from increasing Internet-based threats is critical.

Yet a recent review by the North American Electric Reliability Corporation overseen by FERC found more than two-thirds of power generating companies denied they had any “critical assets” potentially vulnerable to cyberattack. Those denials concern Wellinghoff.

“We are asking the responding utilities to go back and reveal what are the number of critical assets and redetermine that for us,” he says. “We want to be sure that we have fully identify all the critical assets that need to be protected.”

It would be especially troubling if, as was recently reported by The Wall Street Journal, Russian and Chinese entities have hacked into the US power grid and left behind malware that could be activated at a later time to disable the grid.

But Wellinghoff says he has checked on the type of intrusion referred to in the article and denies successful grid hacks by foreign nations that have left dangerous malware behind.

While acknowledging that individuals overseas have tried to hack the grid frequently, he says, “I’m not aware of any successful hacks that have implanted into the grid any kinds of malware or other code that could later be activated.”

But others say there is a problem. In remarks at the University of Texas at Austin in April, Joel Brenner, the national counterintelligence executive, the nation’s most senior counterintelligence coordinator, indicated there are threats to the grid.

“We have seen Chinese network operations inside certain of our electricity grids,” he said in prepared remarks. “Do I worry about those grids, and about air traffic control systems, water supply systems, and so on? You bet I do.”

In an e-mailed statement, Wellinghoff’s press secretary, Mary O’Driscoll, says the chairman defers to senior intelligence officials on some questions concerning grid vulnerability to cyberattack: “The Commission isn’t in the intelligence gathering business and therefore can’t comment on that type of information.”

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MendoCoastCurrent, March 20, 2009

ferc_seal1Yesterday the Federal Energy Regulatory Commission (FERC), led by Chairman Jon Wellinghoff, filed this FERC Smart Grid Policy Statement introducing a proposed Smart Grid, interoperability standards with an interim period rate plan.  FERC has invited comments by May 1, 2009. 

FERC offered this summary:

This proposed policy statement and action plan provides guidance to inform the development of a smarter grid for the nation’s electric transmission system focusing on the development of key standards to achieve interoperability of smart grid devices and systems. The Commission also proposes a rate policy for the interim period until interoperability standards are adopted. Smart grid investments that demonstrate system security and compliance with Commission-approved reliability standards, the ability to be upgraded, and other specified criteria will be eligible for timely rate recovery and other rate treatments. This rate policy will encourage development of smart grid systems.

This FERC policy statement explores aspects of the proposed smart grid and electricity transmission especially as it relates FERC’s assumed areas of jurisdiction.  Push back may come from overlapping agencies, states and local municipalities, suggesting FERC benefiting in creating fair, inclusive, environmentally-safe, smart grid energy policies based on a transparent rulemaking period to obtain best direction as well as understand ensuing issues, overlaps and disputes.  

As renewable energy policy is nascent, and as generated electricity comes from remote lands, FERC’s Smart Grid energy policies has relevance to every technologist, environmentalist, stakeholder and supporters of the renewable energy world.

You may also access the entire archived meeting FERC Webcast which includes the Smart Grid policy statement, or download the Smart Grid Preso & Q/A portion.

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TOM DOGGETT, Reuters, March 12, 2009

WASHINGTON – Congress should give the federal government more authority to approve extra powerful transmission lines to move electricity generated by renewable sources, overriding state objections when necessary, a top energy regulator said on Thursday.

Broader federal authority would help meet President Barack Obama’s goal of doubling U.S. production of renewable energy like solar and wind power in the next three years, said Jon Wellinghoff, acting chairman of the Federal Energy Regulatory Committee.

This could help cut greenhouse gas emissions spewed by coal-fired power plants that contribute to global warming, he said.

The timely siting of electric transmission facilities will be essential to meeting our nation’s goal of reducing reliance on carbon-emitting sources of electric energy and bringing new sources of renewable energy to market,” Wellinghoff said at a Senate Energy Committee hearing on new transmission lines.

At the end of the day if there is a state who blocks a line that’s in the national public interest I think, unfortunately, there needs to be a federal override,” he said.

Congress gave FERC authority to site and permit electric transmission lines crossing state borders within important corridors with grid congestion. But a federal court ruled FERC cannot use this authority if a state denies a transmission project in a timely manner.

Without broader federal siting authority … it is unlikely that the nation will be able to achieve energy security and economic stability,” Wellinghoff said. 

Sen. Jeff Bingaman, Democrat of New Mexico, chairman of the energy committee, agreed FERC’s current siting authority is insufficient.

It does not apply to most of the country and does not take into account future need,” he said.

Senate Majority Leader Harry Reid, Democrat of Nevada, has introduced legislation to give the government broader siting authority for new power lines for renewable energy.

Reid, who also testified at Thursday’s hearing, later told reporters he wanted to roll that bill along with a new national renewable electricity standard into climate change legislation.

The bill he envisions would cap U.S. greenhouse gas emissions and require power plants, oil refineries and other industrial facilities to buy permits to emit carbon polluting emissions.

House Speaker Nancy Pelosi wants to take a similar approach, Reid said:

The House has decided to take them all up together. That’s probably where we’re headed.”

Reid said he hoped the combined bill would clear the Senate this summer. He said he would consider tacking the bill on to budget reconciliation legislation the Senate could pass with a simple majority, without needing 60 votes to stop a filibuster.

Oh I love 51 (votes) compared to 60,” Reid said. “We know that’s an alternative.”

Senator Lisa Murkowski of Alaska, the top Republican on the energy panel, said she opposed combining the energy and climate change bill and folding it into budget legislation.

I also strongly disagree with attempts to do an end run around Congress and mandate what would be the biggest change in our energy policy in the nation’s history through the budget reconciliation process,” she said.

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PETER BROWN, EnergyCurrent.com, February 16, 2009

stromnessOn a Monday morning in May last year, the Atlantic tide set a turbine in motion on the seabed off Orkney, and the energy captured was connected to the national grid. It was, said Jim Mather, Scotland’s Minister for Enterprise, Energy and Tourism, a “massive step forward”.

The amount of electricity generated may have been tiny, but for marine engineers the significance was huge. Their industry had stopped paddling and started to swim.

For small companies trying to get wave or tide devices off the drawing board and into the sea, many problems lie in wait. All turbines, whether they sit on the seabed or float, must withstand that once-in-a-century wave that could be a thousand times more powerful than the average. Conditions vary with the seasons and the seabed. A device that works in a fjord might not function in a firth. Rigorous, long-term testing is therefore vital.

“There are parallels with wind,” says Alan Mortimer, head of renewables policy at Scottish Power. “Many different types of turbine were proposed in the early Eighties. They boiled down to a small number of successful concepts. The same needs to happen with marine devices, but the difference is that they need to be full- size just to be tested.

“To get a reasonable number of prototypes into the water costs millions. What these small companies need is capital support.”

That, however, is hard to find. The Wave and Tidal Energy Support Scheme (Wates), which put GBP13.5 million into promising technologies, is now closed. Last year the Scottish Government offered the 10m Saltire Prize for a commercially viable scheme, but the Institution of Mechanical Engineers (IMechE), in its recent report Marine Energy: More Than Just a Drop in the Ocean?, called on the Government to provide another 40m.

This would go towards schemes to be tested at EMEC, the European Marine Energy Centre, which has two supported sites, with grid access, at Orkney. It was there that an Irish company, OpenHydro, made the grid breakthrough last year. “It’s desperately important that we grasp the nettle now,” says William Banks, IMechE’s president. “We have the micro-systems in place and I’d like to see them developed to the macro stage. However, unless we do that step by step, we’ll be in trouble.”

An estimated 50 teams are working around the world on marine energy. The danger is that Britain, and Scotland in particular, could lose the race, even though, as Alex Salmond, Scotland’s First Minister, says, “Scotland has a marine energy resource which is unrivalled in Europe.”

Scotland has a quarter of Europe’s tidal resources and a tenth of its wave potential.

Around 1,000 people work in Scottish marine energy, but that figure could billow. “You’re talking about an exercise that could transform the marine industry into something equivalent to oil and gas,” says Martin McAdam, whose company, Aquamarine Power, is growing fast.

Among his rivals in Scotland are AWS Ocean Energy, based near Inverness, with Archimedes, a submerged wave machine; Hammerfest UK, which wants to develop three 60MW tidal sites and is working with Scottish Power; Pelamis Wave Power, who are based in Edinburgh; and Scotrenewables, based in Orkney, who are currently developing a floating tidal turbine.

Politicians need to be educated about marine energy’s potential, says Banks. Indeed, IMechE has highlighted the need for sustained political leadership if what many see as the biggest problem – that of the grid – is to be solved. Why bring energy onshore if it can’t then reach homes?

“Grids were built to connect large power stations to cities. Now you’re going to have electricity generated all over the countryside. It’s a huge challenge,” says McAdam.

“We have had meetings with Ofgen and the national grid companies and we’re outlining the need to have grids to support at least 3,000MW of energy by 2020. That is definitely possible.” McAdam adds: “A European undersea grid is also being promoted and we’re very supportive of that.”

Such a system would help to overcome a frequent objection to renewables – their fickleness. If waves were strong in Scotland, Finland or France could benefit, and vice versa.

Another challenge is the cost of installation. “At the moment we’re competing with oil and gas for boats,” says McAdam. “We need to move away from using heavy-lift, jack-up vessels.” The answer might be devices that can be floated into position and then weighted down.

The race between suppliers is speeding up. Permission for a 4MW station at Siadar, off Lewis in the Western Isles, has just been granted to Wavegen, based in Inverness, and Npower Renewables. It could power about 1,500 homes, creating 70 jobs.

Among the success stories are the three 140-metre, red tubes developed by Pelamis (named after a sea serpent) which already float off the northern Portuguese coast at Aguadoura. More Pelamis turbines are to be installed at EMEC, along with Aquamarine’s wave device Oyster.

Oyster is basically a giant flap which feeds wave energy onshore to be converted to electricity. It has already been made, at a former oil and gas plant at Nigg, north of Inverness. A high- pressure pipeline was completed in December and a hydro-electric station will be installed this spring. In the summer, Oyster will finally be bolted to piles hammered into the seabed.

Unlike wave energy, tidal power needs a channel between two land masses – and in the roaring Pentland Firth, between Caithness and Orkney, Scotland has what has been called “the Saudi Arabia of marine power”, Europe’s largest tidal resource. To exploit it, a GBP2 million contract to build Aquamarine’s tidal power device, Neptune, was awarded last month. It will be tested at EMEC.

Elsewhere, SeaGen, an “underwater windmill” developed by a Bristol company, has just generated 1.2MW near the mouth of Strangford Lough, Northern Ireland.
But the most controversial of Britain’s tidal energy schemes is, of course, in the Severn Estuary, where a barrage could provide around 5% of Britain’s energy. Environmentalists fear irreparable damage to marshes and mudflats, but the Government is known to prefer the barrage to other, smaller options. The decision it takes next year is sure to be eagerly watched in Scotland.

Somewhat overshadowed by the Severn plan is Wave Hub, a project to build a wave-power station 10 miles off St Ives, on Cornwall’s north coast, using both Pelamis and a sea-bed device developed by ORECon of Plymouth. An application to create a safety area around it has just been submitted, part of the meticulous planning that precedes any marine trial.

“We have to have environmentalists looking at the impact on fisheries, flora and fauna,” says McAdam. “And we have to be completely open with the communities we’re going into. But most people realise that climate change and energy security are real things. We want to minimalise our environmental impact and give the country a means of isolating itself from the volatility of oil and gas.”

In theory, marine energy could generate a fifth of the UK’s electricity needs, but that would require a multitude of stations. Bill Banks believes nuclear power will be needed. “But we also need a variety of renewables,” he says. “Marine will take its place along with bio, hydro and wind energy. It’s available, it’s there at the moment, and if we get our act together I think we can lead Europe. We need a synergy of activity.”

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MendoCoastCurrent from Platts Energy Podium, February 12, 2009

The recently approved Economic Stimulus Plan includes expanding the US electric transmission grid and this may be the just the start of what will be a costly effort to improve reliability and deliver renewable energy to consumers from remote locations, Federal Energy Regulatory Commission (FERC) Acting Chairman Jon Wellinghoff told the Platts Energy Podium on February 12, 2009.

Wellinghoff defines the Stimulus energy funds as “seed money. But it really isn’t [enough] money to make huge advances in the overall backbone grid that we’re talking about to integrate substantial amounts of wind.”

While details of the plan compromises are unclear, the measure could provide $10 billion or more to transmission upgrades. Wellinghoff said backbone transmission projects could cost more than $200 billion. “And I think we’ll see that money coming from the private sector,” based on proposals already submitted to FERC.

Wellinghoff’s focused on Congress strengthening federal authority to site interstate high-voltage electric transmission lines to carry wind power to metropolitan areas and expects FERC to be heavily involved in formulation of either a comprehensive energy bill or a series of bills meant to address obstacles to increasing renewable wind, solar and geothermal energy, and other matters that fall within FERC’s purview. 

FERC plays a critical role “given the authorities we’ve been given in the 2005 and 2007 acts and our capabilities with respect to policy and implementation of energy infrastructure.”

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MendoCoastCurrent, January 29, 2009

images2At his first White House press conference, President Obama declared “the days of Washington dragging its heels are over” and ordered an immediate review of the Bush administration’s refusal to give California authority to enforce tougher emission and fuel efficiency standards on gas and diesel automobiles.

For more than two years California Governor Schwarzenegger has sought to impose stricter standards on automobile manufacturers in an effort to spur adoption of plug-in electric cars.

President Obama’s order may signal his interest in granting California’s request in a matter of weeks. Eighteen other States, representing nearly half the nation’s population, have indicated they wish to follow California’s lead, calling for the establishment of a national electric car-charging network.

President Obama’s push for electric cars is closely linked to his $11 billion high voltage “superhighway” that was passed last night by the House included in the $819 billion economic stimulus.

The newly-chosen, Acting Chairman of the Federal Energy Regulatory Commission (FERC), Jon Wellinghoff, is calling for regulators and automobile manufacturers to plan integration in the car-charging networks for electric vehicles into the national power grid. “If you’re an automobile company, you’d better get on the bandwagon…because there is definitely going to be a move toward electrification,” said Wellinghoff.  Chip manufacturers and power companies may also wish to jump in.

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SCOTT DUKE HARRIS and MATT NAUMAN, San Jose Mercury News, January 27, 2009

obama-hope2As President Barack Obama and Congress hammer out an economic stimulus package expected to be in the $825 billion range, Silicon Valley clean tech leaders are heartened by an energy agenda that starts with an emphasis on “smart grid” technologies that encourage energy conservation.That agenda will add jobs and bring dollars to several Silicon Valley companies, they say, especially those making smart grid components, solar panels, electric cars and green building materials.

It’s “a good start,” said venture capitalist Pascal Levensohn, whose portfolio includes clean tech investments. “There is a lot of optimism.”

Details of the new stimulus package are still being worked out, but talks suggest that about $60 billion will be applied toward promoting clean, efficient “energy independence” and creating jobs in the process.

Billions of dollars are expected to be applied to weatherizing government buildings, schools and homes. Billions more would go to loans and grants to promote renewable energy such as solar and wind. And still more billions would be spent upgrading the infrastructure of America’s power grids.

Bringing the power grid into the Internet age is a priority. The bill presented by House Democrats includes $11 billion to boost the IQ of electrical grids by employing sensors to maximize efficiency and minimize waste. An alternative bill introduced in the Senate would raise that sum to $16 billion.

“We’ve been swimming upstream,” said Peter Sharer, chief executive of Agilewaves, a Menlo Park maker of a product that monitors electricity, gas and water use in homes and businesses. “We’re finally swimming with the current. That’s what federal support means to us.” 

While initiatives like solar power have cosmic cachet, upgrading the power infrastructure is the logical place to start, some clean tech investors say. “We know that efficiency is the low-hanging fruit,” explained Levensohn, of Levensohn Venture Partners in San Francisco. 

America’s aging power grids now waste 10 to 30 percent of electricity from the generator to the plug, industry experts say. Foundation Capital partner Steve Vassallo likened the grid to a leaky bucket. Instead of simply putting more energy into the system, “the first thing you should do is fix the bucket,” he said.

The weaknesses in California’s energy grid and marketplace were starkly exposed in 2000 and 2001. Then, as Californians were hit by brownouts and ballooning electricity bills, President George W. Bush refused to support temporary price caps and blamed the energy crisis on environmental rules and a shortage of power plants. Only later was it discovered that energy dealers including Enron, a major supporter of Bush and adviser on Vice President Dick Cheney’s energy task force, were gaming California’s dysfunctional energy market, profiteering with schemes nicknamed “Death Star” and “Get Shorty.” Enron would later implode from its own culture of corruption.

The energy crisis inspired Silicon Valley entrepreneurs to seek solutions. Menlo Park’s Foundation started investing in clean tech in 2002, including smart grid companies Silver Spring Networks, based in Redwood City; eMeter, based in San Mateo; and EnerNOC, based in Boston.

The “smart grid” approach employs real-time monitoring and sensors to minimize waste and help identify parts of the grid that are leaking energy and need repairs. In an age of Internet connectivity, utilities typically remain unaware of outages until consumers call with problems, Vassallo said, and still rely on human meter readers walking door-to-door to check energy use “30 days in arrears.”

Pacific Gas & Electric plans to spend more than $2 billion to install 10.3 million smart electric and gas meters. Installations started in Bakersfield in late 2006, and are scheduled to reach the Bay Area by the end of this year.

This digital, wireless device will allow PG&E to get quicker notification of power outages, and also allow it to cut or reduce power during periods of high demand, if a customer agrees. Eventually, PG&E says, smart meters will allow it to better tap into energy that is put into the grid from solar panels installed on homes and businesses.

While California’s grid is “getting smarter,” Vassallo said, most states are served by power grids without the benefit of any information technology and, unlike California, have pricing structures that do not encourage conservation.

Valley companies are keenly scrutinizing the potentially devilish details. SunPower, the San Jose maker of solar modules, is pleased with the “wide, broad, deep effort” to promote cleaner energy as part of the stimulus, said Julie Blunden, a vice president. But she doesn’t think the effort will generate jobs until the second half of 2009.

SunPower, Blunden said, is ready to ramp up work in areas where it has expertise, such as putting solar systems on government buildings, as well as “beefing up areas where we don’t have strong, established channels.”

Weatherizing buildings and promoting new “green” development might benefit companies such as Serious Materials, a Sunnyvale maker of energy-saving building materials, such as heavily insulated windows and greener drywall.

Kevin Surace, the company’s chief executive, sees a lucrative market — 1 million to 2 million homes a year plus tens of thousands of government buildings. His company just bought two window factories, and Surace expects to grow his head count from 150 to 250 or 300 by year’s end.

Project Frog, a San Francisco company that builds green school buildings, is also encouraged. “We’re ready to help schools make use of these funds,” said Adam Tibbs, the company’s president.

Government support may help stimulate more private-sector investments in energy, says Agilewaves’ Sharer and other clean tech executives. But Lyndon Rive, chief executive of Solar City, which was expanding rapidly until the credit crunch hit, said the most important thing for clean tech is for financing to flow again.

“We want to get banks back into buying solar, wind and other renewable” energy assets, Rive said.

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PRESTON GRALLA, GreenerComputing.com, January 22, 2009

In a briefing to the Obama transition team in December, IBM CEO Samuel J. Palmisano recommended that Obama require that all federal data centers go green in three years.

According to the Wall Street Journal, Obama advisers had asked IBM shortly after the election to give a briefing about what impact investing in IT could have on job creation. In response, Palmisano made his presentation in a conference call. 

Most of the call was devoted to how an investment in technology could create jobs. IBM had worked with the think tank the Information Technology and Innovation Foundation to look at three areas: broadband, IT related to health care, and smart grid technologies to make electric power more efficient. 

IBM told the Obama tteam that spending $10 billion for broadband networks to give high-speed Internet access to locations that now don’t have it would create 498,000 jobs in a year. Investing $10 billion in health-related IT would create 212,000 jobs. And investing $10 billion in a smart grid would create 239,000 jobs. 

Doing all that, of course, takes legislation. But according to the Journal article, Palmisano was also asked what steps the Obama administration could take that didn’t require Congressional action. The article says:

Mr. Palmisano suggested an executive order mandating that the government convert all its data center to be “green” data centers, optimized for energy efficiency, within three years.

Here’s hoping that Obama follows the advice. Not only would it directly help the environment and save the federal government money, but it would spur private enterprise to follow suit as well.

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LORRAINE WOELLERT, Bloomberg, December 2, 2008

President-elect Barack Obama is considering a stimulus package that will include a heavy dose of spending on environmentally friendly projects aimed at creating “green-collar jobs” and saving energy.

While the package will focus on short-term outlays for traditional infrastructure projects to jumpstart an economy now officially declared to be in recession, it will also include longer-term measures to safeguard the environment.

“Clean energy is going to be a foundation for rebuilding the American economy,” said Bracken Hendricks, an analyst at the Democratic-leaning Center for American Progress and an adviser to the presidential-transition team. Generating jobs in concert with cutting pollution will be “a major component” of any economic-recovery plan, Hendricks said.

Obama wants to enact a recovery plan soon after his inauguration. Senate Majority Leader Harry Reid told reporters today that any proposal would have to be “robust” and include at least $400 billion in spending, though he wouldn’t rule out a bigger package. Senators Dick Durbin of Illinois, Obama’s closest Senate ally, and Charles Schumer of New York argue that an infusion of as much as $700 billion is warranted.

Reid said a green jobs component could be worth as much as $100 billion. He has endorsed investment in improved electricity transmission infrastructure and other ideas being put forth by Obama advisers.

‘Green Path’ Infrastructure

Obama adviser Jared Bernstein and other economists say that money would help fund environmentally sound infrastructure projects that could be up and running within a few months. Among the steps along the “green path,” Bernstein said, might be a requirement that repairs made to public buildings be environmentally friendly.

“Almost any major infrastructure project is going to be done in the greenest way possible,” said Alice Rivlin, a former vice chairman of the Federal Reserve who has spoken with members of the transition team about the package. “There will be spending for quick-starting infrastructure as well as for larger, better-thought-out programs over several years.”

A critical mass of support for clean-energy spending and green-collar-job creation is building among environmentalists, labor groups, local governments and companies such as Google Inc. and American Electric Power Co., the biggest U.S. producer of electricity from coal.

Creating Jobs

The loosely knit coalition is advocating for what Hendricks calls a “green recovery” stimulus that would create jobs with an eye toward conserving resources and reducing reliance on fossil fuels such as coal and oil.

School repairs, for example, could be required to meet green building standards, including low-energy boilers and weatherization. Transportation spending could emphasize public transit, and support for new power sources such as wind and energy could go hand in hand with spending on an efficient electricity superhighway.

Ideas include $2 billion in spending on public transit to reduce fares and expand service, $5 billion in renewable-energy bonds for consumer-owned utilities, $2.5 billion to buy and scrap old polluting cars, and $900 million to help weatherize one million homes.

‘Smart Grid’

Google is among the companies lobbying for long-term tax rebates for renewable energy as well as federal investment in electric “smart grid” technology that promises to lower energy use by creating two-way communication between energy providers and consumers.

Both provisions would create high-technology jobs, said Harry Wingo, energy policy counsel for Google, which has been meeting with Obama advisers and Capitol Hill lawmakers.

Green-jobs provisions “are going to lead to more job creation here and put us in a better spot to compete for the global market in clean energy,” Wingo said.

Other ideas include regulatory changes that could lead to less energy use and electricity-infrastructure improvements, said Susan Tomasky, president of AEP Transmission in Toledo.

The idea is to build new and better transmission lines to link the sunniest and windiest regions to the national grid.

AEP is among companies pushing for stimulus language that would make it easier to finance and site electricity infrastructure. It also wants Obama to formalize his campaign’s embrace of “an interstate highway system for transmission.”

Delivery Systems

“Obama gets that you can’t just build windmills and wish for the power to get where it needs to go,” Tomasky said. “It is all about infrastructure.”

Some groups are sounding a cautionary note. The U.S. Chamber of Commerce’s Institute for 21st Century Energy embraced the notion of creating jobs in renewable energy industries while warning against government overreaching.

“Whenever government tries to pick winners and losers, whether through burdensome regulations, central planning, or open-ended subsidies, it fails and taxpayers and consumers pay the price,” the institute said in a Nov. 17 report.

The conservative Heritage Foundation has criticized the green-jobs concept as big-government spending that would do little to stimulate growth.

‘Crisis du Jour’

“The people who have wanted these green initiatives are wrapping them up in the crisis du jour, the stimulus,” said David Kreutzer, a senior policy analyst at Heritage in Washington. “You have to pull resources out of some other part of the economy for government to spend it on green jobs. You don’t get a net job increase.”

Nonetheless, businesses are lining up behind the idea. In addition to big power consumers such as Google and utilities such as AEP, venture capitalists such as Kleiner Perkins Caufield & Byers support the green jobs concept and are lobbying for green provisions to be included in the stimulus.

“There’s a clear majority who want to do this,” said Michael Eckhart, president of the American Council On Renewable Energy, a Washington-based group of business leaders, academics and venture capitalists.

Even the simplest ideas could save energy and create jobs, said Jason Saragian, a spokesman for Owens Corning Inc., a Toledo, Ohio-based maker of insulation as well as material used in wind turbine blades. The company is pushing for tax breaks to encourage retrofitting of older buildings.

‘Huge Opportunity’

“There are 80 million underinsulated homes in the United States,” Saragian said. Buildings emit 42% of the nation’s greenhouse gasses. Weatherization “is a huge opportunity” to cut energy use, Saragian said.

State and city leaders are also making a pitch. Pennsylvania Governor Edward Rendell, chairman of the National Governors Association, said a stimulus should consist of increased spending on programs such as unemployment compensation, federal aid to states, and infrastructure for renewable energy. “There are upwards of $136 billion worth of projects ready to go,” Rendell told reporters.

The U.S. Conference of Mayors has its own list of some $25 billion worth of infrastructure projects that could be completed in 2009.

“The challenge is to make a green stimulus actually green,” said Dan Becker, a consultant with the Safe Climate Campaign, a Washington-based clean-air advocacy group. “The more road building you have the blacker it gets.”

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MendoCoastCurrent, John Podesta, September 9, 2008

ctr-4-american-progressOn September 9, 2008, the Center for American Progress, a Washington think tank headed by John Podesta, former Chief of Staff to U.S. President Bill Clinton, published a report by entitled “Green Recovery: A New Program to Create Good Jobs and Start Building a Low-Carbon Economy.” This report may serve as a road map for the new President, Barack Obama. Podesta now heads President-Elect Obama’s transition team. As such, it may be instructive to review its contents as a guide to the Obama Administration’s energy policy.

The signs are clear: Our economy is in trouble. Falling home prices, foreclosures, bank failures, a weaker dollar, rising prices for gas, food, and steel, and layoffs in banking, construction, and manufacturing sectors are all indicators of serious economic strain-following a long period in which the middle class went nowhere even while the economy grew as a whole. What’s more, evidence suggests the current downturn will continue for at least another year.

At the same time, we face a growing climate crisis that will require us to rapidly invest in new energy infrastructure, cleaner sources of power, and more efficient use of electricity and fuels in order to cut global warming pollution. There is much work to be done in building smart solutions at a scale and speed that is bold enough to meet this gathering challenge.

It is time for a new vision for the economic revitalization of the nation and a restoration of American leadership in the world. We must seize this precious opportunity to mobilize the country and the international community toward a brighter, more prosperous future. At the heart of this opportunity is clean energy, remaking the vast energy systems that power the nation and the world. We must fundamentally change the way we produce and consume energy and dramatically reduce our dependence on oil. The economic opportunities provided by such a transformation are vast, not to mention the national security benefits of reducing oil dependence and the pressing need to fight global warming. The time for action is now.

Today, the Center for American Progress releases a new report by Dr. Robert Pollin and University of Massachusetts Political Economy Research Institute economists. This report demonstrates how a new Green Recovery program that spends $100 billion over two years would create 2 million new jobs, with a significant proportion in the struggling construction and manufacturing sectors. It is clear from this research that a strategy to invest in the greening of our economy will create more jobs, and better jobs, compared to continuing to pursue a path of inaction marked by rising dependence on energy imports alongside billowing pollution.

The $100 billion fiscal expansion that we examined in this study provides the infrastructure to jumpstart a comprehensive clean energy transformation for our nation, such as the strategy described in CAP’s 2007 report, “Capturing the Energy Opportunity: Creating a Low-Carbon Economy.” This paper shows the impact of a swift initial investment in climate solutions that would direct funding toward six energy efficiency and renewable energy strategies:

  • Retrofitting buildings to increase energy efficiency
  • Expanding mass transit and freight rail
  • Constructing “smart” electrical grid transmission systems
  • Wind power
  • Solar power
  • Advanced biofuels

This green recovery and infrastructure investment program would:

  • Create 2 million new jobs nationwide over two years
  • Create nearly four times more jobs than spending the same amount of money within the oil industry and 300,000 more jobs than a similar amount of spending directed toward household consumption.
  • Create roughly triple the number of good jobs-paying at least $16 dollars an hour-as spending the same amount of money within the oil industry.
  • Reduce the unemployment rate to 4.4% from 5.7%(calculated within the framework of U.S. labor market conditions in July 2008).
  • Bolster employment especially in construction and manufacturing. Construction employment has fallen from 8 million to 7.2 million over the past two years due to the housing bubble collapse. The Green Recovery program can, at the least, bring back these lost 800,000 construction jobs.
  • Provide opportunities to rebuild career ladders through training and workforce development that if properly implemented can provide pathways out of poverty to those who need jobs most. (Because green investment not only creates more good jobs with higher wages, but more jobs overall, distributed broadly across the economy, this program can bring more people into good jobs over time.)
  • Help lower oil prices. Moderating domestic energy demand will have greater price effects than modest new domestic supply increases.
  • Begin the reconstruction of local communities and public infrastructure all across America, setting us on a course for a long-term transition to a low-carbon economy that increases our energy independence and helps fight global warming. Currently, about 22% of total household expenditures go to imports. With a green infrastructure investment program, only about 9% of purchases flow to imports since so much of the investment is rooted in communities and the built environment, keeping more of the resources within the domestic economy.

Our report looked at investments that were funded through an increase in near-term government spending, which could ultimately be repaid by future carbon cap-and-trade revenues. These sources of new investment included the following funding mechanisms:

  • $50 billion for tax credits. This would assist private businesses and homeowners to finance both commercial and residential building retrofits, as well as investments in renewable energy systems.
  • $46 billion in direct government spending. This would support public building retrofits, the expansion of mass transit, freight rail, smart electrical grid systems, and new investments in renewable energy
  • $4 billion for federal loan guarantees. This would underwrite private credit that would be extended to finance building retrofits and investments in renewable energy.

A comprehensive clean energy agenda is essential to the future of our country. The green recovery and infrastructure investment described here is doable in the early days of a new administration. It would enable our country to take significant steps, through energy efficiency and renewable energy development, to move toward a low-carbon economy, while Congress and the next administration move toward the swiftest possible implementation of an economy-wide greenhouse gas cap-and-trade program.

The next president and lawmakers can pledge to repay the Treasury the cost of the green infrastructure recovery program from cap-and-trade auction revenue. The plan increases public spending in the short term when a near-recession economy needs greater impetus to growth; but it remains consistent with fiscally responsible long-term plan to reduce the debt as a share of GDP, after the economy recovers.

CAP looks forward to continuing to work on the shared mission to reap all of the benefits provided by the transition to a low-carbon economy and discussing this work in greater detail.

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