October 21, 2005

FOR IMMEDIATE RELEASE

Contact: Tom Weirich, American Council On Renewable Energy (ACORE)
Ph: +1-202-393-0001, x7582
E-mail: weirich@acore.org

Bush Administration Supports ACORE's Call for Renewable Energy Policy
Secretaries of Agriculture and Interior Speak for Phase II Plan

Washington, D.C. - With over 350 policy professionals in attendance, the U.S. Secretaries of Agriculture and the Interior spoke in support of new policy for renewable energy at the "Renewable Energy in America: Policies for Phase II" forum that took place October 17-18, 2005 on Capitol Hill in Washington, D.C.

The forum charted a new course of renewable energy policy in the U.S. called "Phase II", identifying the policies that will increase the utilization of renewable energy in the United States, supplying domestic energy, enhancing national security, creating jobs and wealth, improving the environment and human health, and reducing the risks of climate change facing the United States.

Agriculture Secretary Mike Johanns, previously Governor of Nebraska, said, "USDA has moved to Phase II, building on many of the technologies that have come out of Phase I." He asked the attendees to "look to the corn fields, barns and soybean fields of America, not the oilfields of the Mid-East, for America's energy future." Secretary Johanns went on to say, "The Bush Administration and the U.S. Department of Agriculture are now very supportive of renewable energy."

Interior Secretary Gale Norton opened a session entitled "Charting the Next 30 Years" by saying, "The Department of the Interior is steward to one out of every five acres of land in the United States, so it has a significant role to play in the development of domestic renewable energy. We are pleased to join ACORE in a discussion of how we can work together to meet the objectives of the recently passed Energy Policy Act to diversify and add to our nation's energy supply by producing clean, affordable renewable energy."

Senate and House Renewable Energy and Energy Efficiency Caucus Co-Chairs, Senator Wayne Allard (R-CO), Senator Byron Dorgan (D-ND), and Representative Mark Udall (D-CO), spoke in support of Phase II, confirming their dedication to accelerating the use of renewable energy as one of several key solutions to the nation's energy problems. This year's forum was marked with an unprecedented increase in participation from members of Congress.

Representative Mark Udall (D-CO) stated that, "Setting our country straight on energy policy is one of the most important challenges we face. I don't believe we can respond effectively to increasing fossil fuel prices and energy supply disruptions without a commitment to renewable energy as a key part of our energy future. ACORE's "Phase II" can help us take what we've learned over the past thirty years about the potential of renewable energy and put it into practice in the 21st century."

Representative Jim Saxton (R-NJ) also spoke at the main forum remarking, "If Ronald Reagan were here today, he'd say that importing oil must become a vestige of the past."

East and Mid-America roundtable sessions included Chris Van Hollen (D-MD), Lee Terry (R-NE), Representative Charlie Bass (R-NH) and Representative Eliot Engel (D-NY). Several additional members of Congress offered remarks at the forum's receptions, including Representative Roscoe Bartlett (R-MD), Representative Earl Blumenauer (D-OR), Representative Henry Brown (R-SC), Representative Sam Graves (R-MO), Representative John Holt (D-NJ), Representative Mike Honda (D-CA), Representative Jay Inslee (D-WA), Representative Tim Murphy (R-PA), Representative John Peterson (R-PA), and Representative Allyson Schwartz (D-PA).

Representative Roscoe Bartlett added, "You and I need to inform the public of the peaking of oil and the energy crisis that is coming in the future - renewable energy is our way out."

Representative Jay Inslee advocated the New Apollo Energy Act, a plan to develop clean and secure sources of energy that was named after President John F. Kennedy's initiative to get humans to the moon and back. "In order to spur innovation, we need to focus our nation's investment priorities -- like we did in the 1960s to become the world leader in manned space exploration."

Support for Phase II came from the states as well, led by keynote speaker Governor Jim Doyle. "In Wisconsin we are working to promote economic growth and energy security in our rural and urban areas by using biobased products and bioenergy in environmentally sound ways," Governor Doyle said. "And we are here today at ACORE's Renewable Energy in America: Policies for Phase II forum to identify ways that we can increase our use of renewable energy sources across the nation, and reduce our dependence on foreign oil. When it comes to our energy future, we should be relying on the Midwest, not the Mideast."

Support for renewable fuels and ethanol came from Dub Taylor, Director of the Texas State Energy Conservation Office and Hans Detweiler Deputy Director, Illinois Department of Commerce & Economic Opportunity, Bureau of Energy and Recycling.

"Oil production peaked in 1972 leading to Texas becoming a net energy importer in 1993," said Taylor. "Ethanol is moving up the value added ladder and needs to be included in Phase II."

"Some people say that this country hasn't built a refinery since 1976. But, it's not true. Come to the Midwest and I can show you 80 new refineries. They're called ethanol plants," added Detweiler.

Dan Desmond, Deputy Secretary of the Pennsylvania Department of Environmental Protection, represented Secretary Kathleen A. McGinty, and gave Pennsylvania's support of Phase II. He reiterated her message that, "As traditional fuel prices continue to reach new highs, alternative sources become more competitive and investments in new technology become imperative to ensure a long-term supply of clean, secure, affordable energy. One thing is clear: The market is ripe for major energy deployment projects that stabilize prices, promote domestic employment and economic development, and improve the environment --- all while reducing our dependence of foreign energy imports."

Key elements of a Phase II policy framework will be a commitment to longer-term, more stable and predictable government policy, and greater support from across the political spectrum. Policy options for the electricity sector emerged at the forum, dealing in fundamental economics included:

  · Developing a backbone transmission system as a national priority to link renewable energy in rural areas with load centers;
  · Looking at fundamentally new ways of setting utility rates based on the hedging value of renewable energy;
  · Monetizing the environmental benefits of renewable energy through national and regional trading of RECs so that Wall Street can create a futures market;
  · Looking at the RPS mechanism as well as other means of encouraging utility acceptance of renewable energy, both mandatory and voluntary;
  · Encouraging voluntary consumer demand for renewable energy through Green Tags;
  · Shifting economic incentives from cost-based subsidies that were useful for early adopters in Phase I, to revenue-side (or so-called performance based) incentives that attract
     private investment from Wall Street;
  · Accelerating the adoption of distributed generation and smart grid technology; and
  · Amending DOE's charter to focus on technology transfer rather than demonstrations.

Speakers at Phase II also called for a "comprehensive transportation energy policy" that encompasses mileage incentives, flex-fuel vehicles, hybrid engines, and biofuels.

"We need to get focused on near-term solutions in Phase II," remarked R. James Woolsey, Former Director of Central Intelligence. "Government should be included in Phase II in guiding us toward the direction of renewable energy, and implementation of better hybrid technology is crucial."

The audience was attentive to a speech by Vinod Khosla, venture capitalist, co-founder of Daisy Systems and founding Chief Executive Officer of Sun Microsystems who said, "The old proposals are far too conservative. We have to decide that there is no future with oil and commit to something better which is biofuels and very efficient vehicles."

Nancy Floyd, Managing Director of Nth Power highlighted the need for near term results of Phase II. "At current growth rates in the renewable energy industry, we can expect 15,000 high-quality, high paying jobs to be created in the next 5 years," stated Floyd. She went on to state, "The status quo has severe consequences. We need consistent and reliable policy that will spur development. We need to act now."

The "Phase II" conference was organized by the American Council On Renewable Energy (ACORE) in conjunction with the U.S. Senate and House Renewable Energy and Energy Efficiency Caucus and with the support of 35 noted nonprofit groups and trade associations.

Supporting organizations for Phase II included the Alliance to Save Energy, American Council for an Energy Efficient Economy, American Planning Association, American Public Power Association, American Wind Energy Association, California Clean Energy Fund, Center for American Progress, Center for Resource Solutions, Clean Energy Group, Clean Fuels Development Coalition, Community Environmental Council, Consumer Energy Council of America, Electric Power Research Institute, Environmental and Energy Study Institute, Environmental Law & Policy Center, Geothermal Energy Association, Global Energy Network Institute, Global Green, Interfaith Environmental Council, Interstate Renewable Energy Council, National Association of State Energy Officials, National Corn Growers Association, National Hydrogen Association, National Hydropower Association, National Rural Electric Co-op Association, Natural Resources Defense Council, New Uses Council/Biomass Coordinating Council, Renewable Energy & Energy Efficiency Partnership, Solar Electric Power Association, Solar Electric Industries Association, Texas Renewable Energy Industries Association, The Coalition on the Environment and Jewish Life of Southern California, U.S. Conference of Mayors, Union of Concerned Scientists, World Resources Institute, and Worldwatch Institute.

For more information about the national forum and to view the new policy challenges and strategies presented, please visit: www.acore.org.

About The American Council On Renewable Energy (ACORE)

ACORE, a 501(c)(3) membership nonprofit organization headquartered in Washington, D.C., is dedicated to bringing renewable energy into the mainstream of the US economy and lifestyle through information and communications programs. ACORE provides a common platform for the wide range of interests in the renewable energy community including industries, associations, utilities, end users, professional service firms, financial institutions and government agencies. ACORE serves as a forum through which the parties work together on common interests. Membership information is available at: www.acore.org.