Tackling the Energy Challenge — Act on Renewables and Efficiency Now
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Tags: clean energy economy, energy efficiency, green jobs, renewable electricity standard, RES
Tags: clean energy economy, energy efficiency, green jobs, renewable electricity standard, RES
Guest Post by Carlos Perea and Bennett Freeman
Neither the global climate change crisis nor our nation's reliance on foreign oil are new problems. But in the last two years, escalating energy prices and continuing conflicts in the Middle East, along with greater public awareness and political focus on climate change, have come together to present new opportunities to transform our energy policy and supply. But even as we demonstrate a new willingness to invest in a new generation of alternative energy technologies that diminish our dependence on fossil fuels, incentives are needed if we are going to be competitive.
As businesspeople interested in economic development and smart investment, we believe that by putting the two core principles of renewable energy and energy cost savings into action, policy-makers can pave the way for a new energy economy.
Renewable Electricity Standard
First, there must be a commitment to renewable energy standards at the federal level that commit us to energy alternatives. A Renewable Electricity Standard (RES) would require U.S. investor-owned utilities to generate a percentage of their total electricity output from renewable sources and thereby boost production of wind, biomass, geothermal and solar energy. Renewable energy can help to create jobs for Americans in clean technologies, improve our collective environmental health, and diversify our energy away from fossil fuels.
With one stroke, a RES would create a regulatory framework for renewable energy and attract urgently needed investment in renewable energy in the U.S., at a time when the climate change crisis and our national security both compel us to diminish our reliance on fossil fuels.
The southwest, and especially New Mexico, could be well positioned to be incubators of businesses dedicated to delivering renewable sources of energy. Growth in the areas of wind and solar power are already providing jobs for hundreds of New Mexicans. The current state requirement that utilities in New Mexico produce 20% of their electricity output from renewable sources by 2020 is starting to create possibilities for companies to promote competitiveness and economic growth.
Can you imagine if a similar standard were enacted for the entire country?
Not only would it go a long way to wean the United States off what President Bush called our "addiction" to foreign sources of oil, but it would turn hundreds of clean technology jobs into many thousands of jobs. Just think of the possibilities at a global level.
Japan, Brazil and several European countries continue to have an unprecedented advantage in the global renewable energy market - a multibillion-dollar industry - because of the lack of federal incentives in the United States. Comprehensive tax credits for research and development and a stable, forward-thinking regulatory framework that values investment in renewable energy would put our country on a level playing field with the rest of the world.
Cut energy costs through greater efficiency
The second core principle policy-makers must embrace is the need to cut energy costs for ordinary Americans. One way to produce cost savings is the promotion of energy efficiency. According to the American Council for an Energy Efficient Economy (ACEEE), just developing standards for lighting alone could save consumers billions of dollars by 2030.
In New Mexico, homeowners should be encouraged (via tax credits) to install more insulation and better windows. Landlords and housing providers should be induced to weatherize and improve the units they rent to low-income tenants. State weatherization programs that help low-income households access safer and more energy efficient housing should also be emphasized.
Efficiency does not end with homes and buildings. Utilities have a responsibility to save their customers money by being efficient. Moving utilities towards a decentralized model that emphasizes efficiency and conservation is not just a plan that saves on costs, but also a strategy that promotes innovation and site-specific technologies. Legislative support of energy efficiency will enable businesses and consumers to plan and manage their energy needs while giving investors incentives at the same time.
Tackling the twin challenges of diminishing the climate change crisis and our reliance on foreign oil are as formidable as any that our nation has faced in decades. We are confident that Americans can reach a consensus for historic action. But if policy makers fail to let us develop a federal Renewable Electricity Standard and promote energy efficiency, the American people will be left playing catch-up with competitors in other countries.
Carlos Perea is president of Miox Corporation, a water technology company in Albuquerque and recognized as a GoingGreen Top 100 company. Bennett Freeman is Senior Vice President for Social Research and Policy at Calvert Asset Management Company, Inc. in Bethesda, Maryland.
Neither the global climate change crisis nor our nation's reliance on foreign oil are new problems. But in the last two years, escalating energy prices and continuing conflicts in the Middle East, along with greater public awareness and political focus on climate change, have come together to present new opportunities to transform our energy policy and supply. But even as we demonstrate a new willingness to invest in a new generation of alternative energy technologies that diminish our dependence on fossil fuels, incentives are needed if we are going to be competitive.
As businesspeople interested in economic development and smart investment, we believe that by putting the two core principles of renewable energy and energy cost savings into action, policy-makers can pave the way for a new energy economy.
Renewable Electricity Standard
First, there must be a commitment to renewable energy standards at the federal level that commit us to energy alternatives. A Renewable Electricity Standard (RES) would require U.S. investor-owned utilities to generate a percentage of their total electricity output from renewable sources and thereby boost production of wind, biomass, geothermal and solar energy. Renewable energy can help to create jobs for Americans in clean technologies, improve our collective environmental health, and diversify our energy away from fossil fuels.
With one stroke, a RES would create a regulatory framework for renewable energy and attract urgently needed investment in renewable energy in the U.S., at a time when the climate change crisis and our national security both compel us to diminish our reliance on fossil fuels.
The southwest, and especially New Mexico, could be well positioned to be incubators of businesses dedicated to delivering renewable sources of energy. Growth in the areas of wind and solar power are already providing jobs for hundreds of New Mexicans. The current state requirement that utilities in New Mexico produce 20% of their electricity output from renewable sources by 2020 is starting to create possibilities for companies to promote competitiveness and economic growth.
Can you imagine if a similar standard were enacted for the entire country?
Not only would it go a long way to wean the United States off what President Bush called our "addiction" to foreign sources of oil, but it would turn hundreds of clean technology jobs into many thousands of jobs. Just think of the possibilities at a global level.
Japan, Brazil and several European countries continue to have an unprecedented advantage in the global renewable energy market - a multibillion-dollar industry - because of the lack of federal incentives in the United States. Comprehensive tax credits for research and development and a stable, forward-thinking regulatory framework that values investment in renewable energy would put our country on a level playing field with the rest of the world.
Cut energy costs through greater efficiency
The second core principle policy-makers must embrace is the need to cut energy costs for ordinary Americans. One way to produce cost savings is the promotion of energy efficiency. According to the American Council for an Energy Efficient Economy (ACEEE), just developing standards for lighting alone could save consumers billions of dollars by 2030.
In New Mexico, homeowners should be encouraged (via tax credits) to install more insulation and better windows. Landlords and housing providers should be induced to weatherize and improve the units they rent to low-income tenants. State weatherization programs that help low-income households access safer and more energy efficient housing should also be emphasized.
Efficiency does not end with homes and buildings. Utilities have a responsibility to save their customers money by being efficient. Moving utilities towards a decentralized model that emphasizes efficiency and conservation is not just a plan that saves on costs, but also a strategy that promotes innovation and site-specific technologies. Legislative support of energy efficiency will enable businesses and consumers to plan and manage their energy needs while giving investors incentives at the same time.
Tackling the twin challenges of diminishing the climate change crisis and our reliance on foreign oil are as formidable as any that our nation has faced in decades. We are confident that Americans can reach a consensus for historic action. But if policy makers fail to let us develop a federal Renewable Electricity Standard and promote energy efficiency, the American people will be left playing catch-up with competitors in other countries.
Carlos Perea is president of Miox Corporation, a water technology company in Albuquerque and recognized as a GoingGreen Top 100 company. Bennett Freeman is Senior Vice President for Social Research and Policy at Calvert Asset Management Company, Inc. in Bethesda, Maryland.
