On Energy

I recently went to Golden Colorado to visit the headquarters of the National Renewable Energy Laboratory. Most of the people who work for my organization are not policy people or economists. They’re engineers. They wear lab coats and hard hats. They have beards and an array of flannel shirts. These are some of the smartest people in America working on cutting edge science to (hopefully) bring us out of the dark ages of the coal-fired plant and internal combustion engine, into a brighter, greener future. In my opinion, these are the people who will save the planet. So, as you might imagine, I was really psyched to get a personal tour or their labs. Given our limited time, we focused on the biofuels test facility and the photovoltaic labs. Imagine this – a waste treatment facility harvest algae that is transformed into jet fuel. Imagine the ability to focus the light power of 50,000 suns into a single beam of energy. Imagine inexpensive roof tiles that make every house in America a solar energy collector. All of these things are possible and they’re all being done at NREL. These guys are just the coolest!

So, with all the changes here in Washington, I have been getting a lot of questions about how all this will affect energy issues. Well, there are several things conspiring to make energy an even bigger deal in the next couple of years. Here’s a quick breakdown of factors I see affecting U.S. energy policy in the near term:

1) Global Warming – It’s HEEEERE. Whether it’s the hottest year on record (2006), the now alarming (and visible) melting of the ice caps and Greenland, or just the increase of freakish weather due to El Nino on steroids – those long threatened consequences of global warming have gone from computer model to cable news fodder. Better yet, many people are actually making the connection here.

2) George W. Bush – Whether he has seen the light or whether he just saw the polls, President Bush has done a major 180 on climate change during his time in office. When Bush was first elected, EPA was forced to yank the words “climate change” and “global warming” from their web site. Today, Bush’s rhetoric includes these phrases and a call to meet them head on. Now, his ideas about how to do that are not my own, but the fact that the President has publicly stated his intention to tackle this issue leaves room for negotiation. Now there’s someone to negotiate with:

3) The New Democratic Congress – Ah, those exciting first 100 hours. How thrilling! To be honest, a good deal of this was showboating, but I like where they’re going. Let’s face it though – they can’t overturn a veto unless they rope in a bunch of Republicans. So, any way you slice it, the Dems are only going to make headway on important issues if they pony up the with bi-partisanship. That’s NEVER gonna happen on social security or Medicare. It MIGHT happen on energy issues though. Now is the perfect time for this country to formulate and enact a long-term energy policy. I could go into what should be included, but I don’t have time for that right now. I’ll just refer anyone who’s interested to a very interesting GAO report delivered to Congress in December entitled “Key Challenges Remain for Developing and Deploying Advanced Energy Technologies to Meet Future Needs.” http://www.gao.gov/new.items/d07106.pdf

4) Technology - While most renewable energy technologies are still in their infancy, we finally have a suite of technologies that are field tested, market ready, and economically competitive in certain situations. This, if coupled with a reduction of under-the-table subsidies to fossil fuels, will make renewables competitive on their own in markets across the country. Also, the rate at which renewable technologies are advancing (as happened with computers) is increasing. Soon, new technological approaches to harnessing renewable energy will come faster and faster. The key here is to provide NREL will a consistent level of funding so multi-year research efforts can be sustained.

5) Business - They're starting to get it people. The auto manufacturers have seen that they need to find a cleaner car and not abandon the project just because oil falls below $50 a barrel. Insurance companies are lobbying the government to fight global warming. Appliance manufacturers are partnering with government to reduce power consumption in their units. The powerful lobbies that have stymied effective environmental legislation in the past are starting to realize that they simply have no choice. Now, utilities across the country are demanding that Congress pass comprehensive energy legislation - including renewable standards and carbon policies. Why? Because without a national standard, these utilities be faced with an array of more complex and often more stringent state standards.

In conclusion, sound energy policy is one of the few areas that both parties can play in right now that can win them brownie points. Bush doesn’t want to talk about Iraqand the Dems used up most of their brilliant ideas in the first 100 hours. With energy security concerns, dependence on foreign oil, price fluctuations, and an acceptance of climate change, and everyone trying to look good for the next election, now is the perfect time for our government to construct a serious and well though-out energy policy. Most importantly, so many of the lobbyists and excuses that have held energy policy back in the past are falling by the way side. A policy window is opening. If we utilize this opportunity we may yet save our earth from irreversible consequences of global climate change.