U.S. governor urges federal action to promote renewables

WASHINGTON, DC, US, December 14, 2005 (Refocus Weekly)

The governor of the state of Pennsylvania wants the U.S. government to address the energy needs of the country by increasing the role of renewable energies.

The federal government can take “simple steps” to “change the course that our economy and our nation will take in the next decade,” says Edward Rendell in a letter to president George Bush. It can use its regulatory power to require greater reliance on alternative fuels by utilities and energy companies, and use its purchasing power to stimulate private investment in alternative fuel production and fuel saving technologies.

It can also re-direct subsidies enacted before the energy companies began making “extraordinary profits,” and allocate those funds to production of alternative fuels, he explains. He has asked Bush to provide federal leadership, authority and purchasing power and resources “to turn our energy challenge into an economic and political win for our nation.”

“To reduce imports of petroleum, we need to aggressively invest in plants that produce transportation fuels from our coal reserves and coal waste piles and from crops grown on American soil including corn and sugar cane,” says Rendell. If the federal government follows the leadership of the states, including Pennsylvania's ‘American Energy Harvest’ model, there would be many significant benefits, including less reliance on the Middle East and more on 'Middle America.'

“Instead of imports growing from 59% of consumption to 66% in ten years, they would fall from 59% to 53%,” he said. “Clearly we won't be done, but we will have taken a huge step in the right direction.”

“By changing how and where we spend energy dollars, we can create more jobs, increase domestic investment and make our nation safer,” he explained. By 2015, his plan would mean 1 million barrels from biofuels required by a federal alternative energy portfolio standard, 10,000 MW of electricity from solar energy required by a federal alternative energy portfolio standard, and 100,000 MW from wind power required by a federal alternative energy portfolio standard.

Pennsylvania is developing the country’s first waste coal-to-diesel fuel plant, and is providing US$2.3 billion in government capital, including $15.6 million to support Gamesa of Spain in setting up the first manufacturing plant for turbine blades in the U.S.

“In the 1970s, America was abuzz with optimism about the potential for clean renewable energy,” says Rendell. “Solar, wind and synthetic fuels captured the imagination of environmentalists and scientists alike but these alternative fuels did not capture the marketplace because they simply cost too much for each kilowatt and each gallon they produced.”

“Times certainly have changed,” he continues. “A kilowatt of wind power now costs the same as a kilowatt of electricity generated from traditional sources” and no longer is investing in alternatives a fringe idea.

“Ireland’s economic renaissance has literally been fuelled by wind power” and “if anyone suggests to you that these ideas aren’t ready for prime time and cost too much, they are living in the past,” he adds. “It’s clear that the largest energy companies in the world realize that the only way they can offer a reasonable return to their shareholders in the future is by diversifying their fuel sources but it is unrealistic to expect that these companies, whose profits depend on fossil fuels, will move fast enough without federal leadership.”

The energy bill passed in August by the federal Congress increased tax incentives for alternative fuel development but “at its core, that bill relies on old-fashioned thinking and old-fashioned technologies to do more of the same” with only $36 million to promote ethanol but $1.8 billion for fossil fuels. “It continues a very troublesome pattern of providing twice as much funding for oil, gas and nuclear research as we provide for research on clean coal and renewables combined, and the tax credits for renewables are set to expire in just a year or two, which causes widespread uncertainty in the market and discourages investors from making long-term commitments.”

“When it comes to wind, geothermal or solar energy, the resource is basically free, so the economic opportunity lies in the production of the materials or equipment needed to harness the free energy,” he explains. “Wind and solar energy production is now growing 30% a year but most of that growth is happening outside the U.S. borders and that has to change.”

“Like the Apollo mission and the Manhattan Project, we need to unite these efforts if we are serious about accelerating our access to the fuels we all know show great promise,” he says. “The stakes are huge but the benefits of getting it right are even larger.:

“Deploying 10,000 MW of solar power by 2015 - enough to power five million homes across the country - would generate tens of thousands of jobs and add valuable peak power capacity to the electric grid,” said Rhone Resch of the Solar Energy Industries Association. “Establishing this kind of visionary national goal is critical because we face a national energy crisis. Commercial solar power can contribute immediately to the nation’s peak power needs, and many states are already moving ahead to develop their solar power resources.”

Pennsylvania is emerging as a premier market for solar power and jobs, and Rendell has passed a law to require 860 MW of solar power in the state by 2020. The state developing streamlined regulations for interconnection of solar PV systems and net metering,


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