If common ground exists between the Obama and
Romney campaigns, it is in the area of energy
efficiency. But even such a non-contentious issue
must still get parsed out and removed from the back
burner where it has long been sitting.
Both candidates, in fact, have a record of providing
support to those programs that induce citizens to
consume less energy. The central difference between
their two agendas is that President Obama has put
billions into technologies that are doing everything
from weatherizing homes to making cars more fuel
efficient to funding the rollout of smart grid
tools. Romney, meanwhile, is saying that government
has a role in such developments but he has not been
specific beyond that.
“I’m told that we use almost twice as much energy
per person as does Europe and more like three times
as much as does a Japanese citizen,”
Romney has said. “I’d like to see our vehicles,
and our homes, and our systems of insulation become
more efficient. I believe that we have a role in
trying to encourage that to happen.”
That statement is consistent with the positions he
took when he was governor of Massachusetts. There,
he said via a
press release in 2006 that his administration
would create new electricity energy efficiency
programs for homes and businesses as well as well as
for current and future state buildings. He
furthermore tried to implement electricity rates to
encourage energy efficiency during peak times and he
supported state tax incentives for the purchase of
fuel efficient vehicles.
If elected, Romney would need to scale back that
vision. That’s because he is running on a platform
of fiscal austerity and such programs will probably
require an increasing level of federal dollars to
advance.
Despite his public support for energy efficiency
measures, the GOP-hopeful comes across as downright
disdainful of green energy -- odd, because as
governor that too was part of his overall energy
agenda. In Massachusetts, he backed diversifying and
increasing the energy supply through the use of more
hydro and wind power, as well as with biofuels for
state vehicles and buildings.
During the first debate, Romney derided Obama for
spending $90 billion on “breaks” for green energy --
an amount greater than what the oil and gas industry
receive. He said the money went to “losers” like
Solyndra.
Capital Avoidance
For the record,
Politifact rates that claim a “false.” It notes
that 60 percent of the money went to state and local
governments so that they could implement energy
efficiency measures, as well as build out the
transportation and electricity-related
infrastructure. Much smaller amounts went to wind
and solar.
For its part, the utility world has benefited
greatly from the 2009 stimulus. Nearly $90 billion
in tax incentives, loan guarantees and government
grants have been made available to them. Those are
for weatherizing 600,000 homes and expanding
renewable energy programs. The money -- $4.5 billion
-- is also being used to build out the smart grid,
which is allows utilities and customers to work
together to save energy and increase reliability.
Obama ran in 2008 on revitalizing the national
economy through public investments in transformative
technologies. Those national programs would not only
take the country to the next level in terms of how
it produces and consumes energy but they would also
serve to keep commerce flowing at a time when
consumers were uneasy about continuing their
spending.
“Our homes, businesses and factories account for
more than 70 percent of the energy we consume, and
we need to invest in energy efficiency in the
residential, commercial, and industrial sectors to
improve U.S. competitiveness, lower electricity
bills, and protect our environment,”
President Obama has said.
Indeed, a new study called “The $20 Billion Bonanza”
concludes that every dollar invested in energy
efficiency programs results in $2 in savings for
business and residential utility consumers. The
report cites other benefits such as the avoidance of
major capital expenditures associated with new power
plants and even the retirements of some older and
less efficient generators.
The investment would be split between utilities and
their customers. The savings would occur on energy
purchases as well as on public health benefits to
the tune of $37 billion. That would equate to a $20
billion net savings, says the
Southwest Energy Efficiency Project that
authored the report.
While both presidential contenders agree that those
tools have a place on the American landscape, their
conciliation may end there. Expect a vigorous debate
over the amount of funding, the kinds of
technologies and the style of regulations. After the
election, energy efficiency may still get short
shrift.
EnergyBiz Insider has been awarded the Gold for
Original Web Commentary presented by the American
Society of Business Press Editors. The column is
also the Winner of the 2011 Online Column category
awarded by Media Industry News, MIN. Ken Silverstein
has been named one of the Top Economics Journalists
by Wall Street Economists.
Twitter: @Ken_Silverstein
energybizinsider@energycentral.com
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