From the Dispatch

Clean Energy Options: In the Wake of the Oil Spill, Energy Alternatives That Will Create Jobs

Fabiola Carrion — Mon, 19 Jul 2010 14:00:58 -0400

With less than 5 percent of the world’s population, the United States produces 25 percent of greenhouse gases, making it the second largest emitter in the world after China. The American public is well-aware of this issue; according to a Pew Research Center Poll, three-fourths of Americans described climate change as a serious problem. Since the oil spill in the Gulf of Mexico, support for off-shore drilling has waned substantially and more Americans want to look for clean energy policies that will avert more ecological disasters. Pew has also noted that the American public overwhelmingly supports (by 87 percent) renewable sources like wind and solar power.

Accompanying this environmental crisis is one of the worst economic periods in the nation's modern history. Overall unemployment rates are just below 10 percent and almost all states are dealing with budget shortfalls. Progressive state legislators, nevertheless, continue to take major steps to lessen our dependence on oil, create jobs that remain in this country, diversify our energy sources, and ensure that these sources are transmitted and distributed through a reliable electrical system.

States have taken an important – and often primary – role in setting the environmental and energy agenda in the United States. A review of state policies, federal policies based on state models, and federal policies where state leaders play a key role in implementation demonstrates that state actions will have reduced carbon dioxide emissions by approximately 536 million metric tons per year by 2020. As Progressive States Network has described in previous Stateside Dispatches, increasing the number of renewable energy systems reduces greenhouse gas emissions, relieves grid congestion, creates jobs, and provides their owners with surplus energy to sell back to the market.

In this Dispatch, PSN will examine clean energy options that contribute to a green economy, including evaluating the great strides that energy supply alternatives have created in the states that have enacted policies that promote them. We will explain how states have established Renewable Portfolio Standards and how these have created the demand for innovative investment, as well as how to promote new sources of renewable energy, including creative financial mechanisms, multi-state agreements, and the upgrade of an electrical grid that will better transmit energy from these intermittent sources. And for states looking for new job creation strategies, one key fact is that the production, installment and maintenance of renewable energy sources create sustainable jobs.

Federal Support for State Action: The 2009 American Recovery and Reinvestment Act (ARRA) assisted continued action by states with the inclusion of a wide array of provisions to spur clean energy generation and energy efficiency. A special package of $85 billion was allocated towards energy and transportation related spending, dedicating $21 billion toward incentives for wind, solar, and other renewable energy manufacturers. ARRA also provides more than $30 billion for direct spending on clean energy programs, including $11 billion to modernize the electricity grid, $2.5 billion for research into renewable energy, and $6 billion for state and local efforts to achieve energy efficiency. In addition to all of these national efforts, ARRA allocates $3.1 billion to the Department of Energy’s State Energy Program, which distributes funds to help state governments improve energy efficiency and expand the use of renewable energy in their states. According to Environment America, programs that have been funded by ARRA are expected to reduce emissions by approximately 10 million metric tons per year by 2020.

Resources
Environment America - America on the Move: State Leadership in the Fight Against Global Warming, and What it Means for the World
American Clean Energy and Security Act
Clean Energy Jobs and American Power Act

Table of Contents:

- Renewable Energy Sources in the States

- Renewable Portfolio Standards: One Key to Promoting Alternative Energy Production

- Putting a Price on Carbon: Regional Greenhouse Gas Emission Agreements

- Clean Energy Financing Options

- Networking the Green Economy: Creating Jobs and Improving the Transmission of Renewable Energy Sources

- Conclusion: A Greener Economy Drives Job Creation

Renewable Energy Sources in the States

Renewable energy sources (used interchangeably here as alternative energy sources) include solar, wind, geothermal, biofuels, geothermal, conventional hydroelectric, and biomass waste. The production of renewable energy largely depends on the geographic location of these resources, the availability and location of infrastructure, and demand for energy. As such, the two most common barriers for the development of alternative energy sources are (1) cost, and (2) lack of infrastructure.

Solar Energy: Pike Research forecasts that the United States will become the largest market for small solar installations by 2011, surpassing Germany, the best known solar energy producer in the world. Unlike fossil fuels, solar energy is clean, safe and everywhere. With higher demand, solar energy is costing less. Thanks to this rapid growth, it is believed that the US can reach the goal of obtaining 10 percent energy consumption from the sun by 2030. One of the drawbacks of solar energy, however, is that it is intermittent and consequently not always available to match demand. It is therefore imperative that we use technologies that can measure the various levels of power that solar energy can generate and transmit them according to on- and off-peak times.

Wind Energy: Wind energy has become the fastest growing source of electricity in the United States. In fact, in 2008, the US surpassed Germany to reclaim the world’s leadership in installed wind power capacity. And in 2009, the wind industry increased by 39 percent. Now, almost two percent of our electricity is coming from wind turbines. Further, about half of components used in wind farms are now made in the US, compared with 25 percent in 2004, meaning that jobs in this sector have increased rapidly.

Thanks to our transition into wind generation, the US Department of Energy attributes approximately 17 million metric tons of the decline in carbon dioxide emissions during 2009 to expanded production of zero-emission electricity compared to 2008 levels. Environment America also concludes that the increase in renewable energy production since 2004 could be assumed to have reduced emissions in 2009 by roughly 44 million metric tons. Texas is currently the nation’s top wind producer, with a total of 9,410 megawatts, about three times more than the second-largest producer, Iowa. They are followed by California, Washington, and Minnesota.

On their own, solar and wind power can significantly reduce the amount of greenhouse gases we normally emit, and together, they can complement each other. Under the right conditions, solar generated energy is at its highest output during the hours when wind resources are least likely to be available.

Resources
Center for Social Inclusion - Solar Energy Generation at the Community Level: Briefing Paper Five of Black, Brown and Green
The New York Times - Wind Power Grows 39% for the Year
US Department of Energy - Short‐Term Energy Outlook Supplement: Understanding the Decline in Carbon Dioxide Emissions in 2009

Renewable Portfolio Standards: One Key to Promoting Alternative Energy Production

A renewable electricity standard (also known as renewable portfolio standard) requires utilities to develop renewable energy resources as part of their energy portfolio. In other words, an RES (or RPS) requires utilities to obtain a certain share of electricity they deliver to consumers from renewable resources. Twenty-nine states and the District of Columbia have adopted minimum standards requiring that a percentage of their electricity come from renewable energy. Five additional states (Florida, North Dakota, South Dakota, Utah, and Virginia) have set voluntary renewable portfolio standards.

Thanks to these standards, about three percent of power generated in the United States originates from renewable energy sources. The Department of Energy attributes state laws as the force behind the use of renewable sources. In concurrence, research by the North American Electricity Reliability Council shows that over 50 percent of the increase in renewable energy capacity occurred in states with mandatory Renewable Portfolio Standards.

These efforts will reduce global warming pollution by 79 million metric tons nationwide. Environment America calculates that 119 million metric tons will be reduced by 2020 thanks to RES policies and the reductions in electricity consumption that will result from other related policies.

Renewable Energy Standards Vary from State to State: The mix of resources eligible for credit varies greatly from one state to the next: some include “carve outs” for particular technologies (most often solar power), and some allow out-of-state resources to count on an equal basis with in-state resources through credit trading. Each state has designed its RES to account for a range of state-specific conditions and policy priorities. These include available wind, solar and other renewable energy potential in a state, reducing greenhouse gas emissions, mitigating other environmental externalities associated with fossil fuels, and lowering electricity costs to consumers. Other goals include diversifying the energy mix to protect against potential fuel interruptions and attracting wind and solar farms, product manufacturers, and research and development facilities to promote economic development and job creation.

The first renewable energy standard was adopted in Iowa in 1983. Massachusetts, Nevada, Connecticut, Maine, New Jersey and Wisconsin followed suit in the late 1990s, all enacting standards in the space of a few years. RES spread even more widely in the 2000s, while many states that had been among the first to adopt the policy updated their legislation to enact more aggressive renewable energy goals and to ease implementation of the policy.

Even when states have already implemented renewable portfolio standards, they are still seeking to expand them. States have expanded compliance dates, raised compliance targets, or added carve-outs for specific technologies.

Oregon’s HB 3039, enacted into law in 2009 two years after the renewable portfolio standard was first signed, includes a solar photovoltaic standard within the state renewable portfolio standard. Oregon state legislators continue to seek to amend existing laws to increase RPS requirements over the years.
In 2002, Nevada enacted an aggressive renewable portfolio standard that required that 15 percent of all electricity generated be derived from renewable resources by 2013. In June 2005, Nevada raised the requirements of the RPS by 20 percent of sales by 2015.
Virginia also increased the state’s renewable portfolio standard to 15 percent during the 2009 legislative session.

We previously highlighted Colorado's leadership in clean energy legislation, including its recent law to expand its renewable energy standards. In one of the most far-reaching environmental initiatives in the country, HB 1001 requires 30 percent of large utilities' electricity to come from renewable energy sources by 2020. In detail, utilities must supply at least 12 percent of their retail electric sales from such sources from 2011 to 2014, 20 percent from 2015 to 2019, and 30 percent for 2020 and beyond. Three percent of this standard must be met by local solar power, leading to the construction and installation of 100,000 solar rooftops, panels, and turbines.

The Undeniable Success of a Renewable Energy Standard: Seventy percent of the fastest growing energy supply -- wind power -- was generated in the US thanks to a renewable energy standard. Between 2004 and 2009, state mandates for renewable energy have averted the release of approximately 44 million metric tons of carbon dioxide pollution in 2009. By requiring utilities to invest in renewable energy, states have established policies that have leveled the playing field for clean energy sources to compete with traditional fossil fuel.

Experts project that the manufacturing renewable sector has the potential to employ many more Americans in green jobs. Of the 18 states that have both renewable portfolio and energy efficiency standards in place, 11 states (61 percent) had more jobs in the clean energy economy than the national average. Similarly, in 12 of those 18 states, clean energy jobs made up a larger share of all jobs when compared to the US average.

Resources
Progressive States Network - Renewable Portfolio Standards (RPS) Advance in the States
Center on Wisconsin Strategy, the Workforce Alliance, the Apollo Alliance - Greener Pathways: Jobs and Workforce Development in the Clean Energy Economy
Stateline - The Rush to Renewables
Center for Social Inclusion - Solar Energy Generation at the Community Level: Briefing Paper Five of Black, Brown and Green
Environment America - America on the Move: State Leadership in the Fight Against Global Warming, and What it Means for the World
Progressive States Network - Colorado Leads Clean Energy Reform
Environment Maryland - Building a Solar Future: Repowering America's Homes, Businesses, and Industry with Solar Energy
Apollo Alliance - As Oil Spill Tragedy Continues, Clean Energy Progress in Missouri and Georgia Points to Hope for the Future
Renewable Energy World - Where the Wind Blows and Sun Shines: A comparative analysis of state renewable energy standards

Putting a Price on Carbon: Regional Greenhouse Gas Emission Agreements

In addition to complying with their own statewide portfolio, twenty-three states are participating in three major regional initiatives seeking to increase renewable energy generation and reduce carbon pollution from power plants that cause global warming. The most famous of these agreements is the Regional Greenhouse Gas Initiative or RGGI, composed of 10 Northeastern states: New York, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, and Rhode Island.

RGGI's 2002 Working Group proposed to keep emissions flat from 2009 to 2015, and then begin to cut the cap by 2.5 percent each following year. By 2018, emissions are expected to be reduced by 10 percent from the program's start date. RGGI holds an auction where the member states sell credits for carbon emissions. The buyers are electric utilities who purchase credits either to be able to emit carbon dioxide or to re-sell those credits to other utilities. Under this cap-and-trade regime, each auction raises on average $80.5 million and in total the auctions have raised $663 million. The money raised in these auctions is supposed to be directed towards projects that promote energy efficiency.

Although some states have used some of the RGGI funds to fill in the gaps of their state's budget, the RGGI still continues to create job opportunities for workers who conduct energy audits and install home weatherization measures. For example, the Center for Ecological Technology, a company that conducts RGGI-funded efficiency efficiency work on behalf of electric utilities has doubled its workforce - from 50 to 100 full-time employees. This increase has also spearheaded the creation of new positions in the IT and customer service departments. Furthermore, thanks to RGGI, carbon dioxide emissions from power plants are below the cap they set. Along with RGGI, the Western Climate Initiative (WCI) has been created to reduce emissions across the region by 15 percent below 2005 levels by 2020. Seven US states (Arizona, California, Montana, New Mexico, Oregon, Utah, and Washington) and four Canadian provinces are part of WCI; the program, to be fully implemented by 2015, will cover close to 90 percent of emissions from the states' and provinces' territories. Also in the Midwest, six US states (Iowa, Illinois, Kansas, Michigan, Minnesota, and Wisconsin) and a Canadian province have joined to form the Midwest Greenhouse Gas Accord in order to reduce their emissions. MGGA's Advisory Group recently published its final recommendations, setting an emissions reduction target of 20 percent below 2005 levels by 2020.

Altogether, 23 states, accounting for half of the US population, are involved in greenhouse gas reduction accords.

Other Ways to Put a Price on Carbon: The most straightforward, and many would argue transparent, method to curtail carbon emissions might be to pay precisely for producing them. A carbon tax is aimed at taxing the actual emissions of carbon dioxide from energy producers. Instituting a tax provides the certainty of compliance, and has been successfully implemented in several countries, including Norway, Sweden and Germany. Carbon tax legislation has been introduced in US cities like Portland, Oregon and Boulder and Aspen in Colorado. According to the Oregon plan, builders that do not construct an energy efficient home must pay a fee. By the same token, the plan gives developers cash rewards if they save at least 45 percent more energy than the Oregon building code would require. The Boulder plan charges on the number of kilo-watt hours used, directing the profits to renewable energy and energy efficiency programs. The idea of taxing for carbon emissions has received a lot of support from environmental and labor activists, and even from Exxon CEO Rex Tillerson.

Please click image above to view a full chart of state Mandatory Renewable Energy Standards for 2010 from RenewableEnergyWorld.com.

Resources
Stateline - The RGGI raid: how cap-and-trade revenues went to fix state budgets
Progressive States Network - Bold Plan for Carbon Tax Introduced in Portland, OR
Environmental Protection - First RGGI 2010 Auction Yields $87.9 M for Member States
Regional Greenhouse Gas Initiative
Western Climate Initiative
Midwestern Greenhouse Gas Reduction Accord

Renewable Energy Financing Options

Through public bonds, pension funds, state-managed investment pools, and leveraging federal dollars, states can direct investment dollars into alternative energy production. These financial incentives are being applied over a long period of time to establish consistent and efficient programs and create a stable market.

Federal and State Funding: Federal monies, principally through the ARRA, are being directed towards bonds that enable local and states to finance renewable energy projects. The US Department of Agriculture, for instance, operates a loan guarantee program for agricultural adoption of renewable energy. States are taking full advantage of the federal government's support. Thirty-two of them have combined federal and state funding to provide residential, commercial, and industrial loan financing for the purchase of renewable energy. The following examples paint a good picture on what states are doing with government funding:

In Colorado, SB 31 was enacted in 2009 to create the Clean Technology Discovery Evaluation grant program for the purpose of improving and expanding the development of new clean technology discoveries at higher education research institutions. The state will also allocate $2 million in grants towards renewable from 2009 ARRA funding through the Governor's Energy Office.
Montana also provides direct funding for renewable energy development through grant and loan programs that typically target generation at the scale of residential and commercial buildings. It offers a grant program to subsidize small-scale renewable installations via a state-mandated system benefits fund maintained by the state’s largest private utility. Montana’s revolving fund loans up to $40,000 per renewable project.

Municipal Financing and Property Assessed Clean Energy (PACE): A model called Property-Assessed Clean Energy (PACE) financing enables municipalities to use their ability to obtain financing at low interest rates to pay for the upfront cost of installing renewable energy parts in businesses and homes. The financing is recouped through a special assessment on the property owner’s taxes, or in certain cases, their utility bill. In most programs, property owners pay back the costs over a period of 20 years. The tax remains with the property; if a property owner sells the property during the period of financing, the responsibility to pay back is transferred to the new owner. Hence, PACE absolves the homeowner of the risk that they will move out before they receive the full benefits of the system. Two barriers to making energy upgrades are therefore eliminated: (1) the up-front costs, and (2) the question of who pays for ongoing costs for upgrades when properties are sold.

The White House has estimated that if only 15 percent of residential property owners in the US took advantage of PACE related programs, the resulting emissions reductions would contribute to four percent of the savings needed for the US to reach 1990 emissions by 2020. In addition to reducing greenhouse gas emissions, PACE programs promise to lower energy bills for consumers and create jobs in home weatherization and renewable energy installation. So far, PACE programs have been authorized in 23 states.

Source: Pew Center on Global Climate Change

California enacted AB 811 in 2008 to allow cities and counties to offer PACE financing. Under the California program, property owners seeking funding for energy efficiency improvements must have a clear property title and be current on property taxes and mortgages. Financing may originate from bonds, local government funds, and third-party lenders. Under Minnesota law, loan amounts may not exceed 10 percent of the assessed value of the property and may include costs related to the required energy audit or feasibility study, equipment and labor costs, and performance verification. A recently enacted New York law (AB 40004A) allows counties, towns, cities and villages to offer sustainable energy loan programs that can pay for energy audits, cost-effective, permanent energy efficiency improvements, renewable energy feasibility studies, and the installation of renewable energy systems. The local program determines the sectors eligible for financing, and qualification for the loan is contingent on energy audits or renewable energy feasibility studies that meet New York State Energy Research and Development Authority (NYSERDA) or equally stringent standards. Energy efficiency improvements must meet cost-effectiveness criteria as established by NYSERDA. Land-secured financing districts for PACE programs have been created in Florida, Georgia (HB 1388-2010), Hawaii, Louisiana (SB 224-2009), Nevada, Vermont (HB 446-2009), and New Mexico (SB 647-2009).

Also last year, Oregon established the Energy Efficiency and Sustainable Technology loan program to provide state loans for residential and commercial energy efficiency and renewable energy projects. The 100 percent upfront long term, low-interest loans can be paid back on the utility bill. The program is financed through state bonding and private loans.

This year, Maine enacted LD 1717 to implement a loan program through a local ordinance that provides financing for property owners who want to put clean energy improvements in their homes. This legislation is unique in two ways: (1) municipalities will be able to use federal grants or any other funds available for the purpose of funding PACE programs; and (2) PACE assessments will be considered subordinate liens, secondary to mortgages. Further more, Efficiency Maine Trust was directed to promulgate rules for Maine's PACE program, including eligible efficiency improvements and renewable energy installations, standards for underwriting requirements, and truth in lending provisions which are to guide the consumer disclosure that must be included in PACE agreements.

Another eight states have introduced PACE bills in 2010 in their legislatures, including Hawaii (SB 2865 and HB 2643), Missouri (HB 2178, HB 2298 and SB 1037), Michigan (HB 5640), New Jersey (AB 2500), Illinois (SB 2505).

Georgia also approved legislation this year (HB 1388) to help residential and commercial property owners make energy efficiency and renewable energy improvements to their properties through voluntary property assessments.

PACE Programs Under Challenge: Recently, Fannie Mae and Freddie Mac asserted that because PACE programs' liens take priority over existing mortgages, this poses a risk to lenders and secondary market entities, as well as alter valuations for mortgage-backed securities. Consequently, the Federal Housing Finance Agency (FHFA) and the US Treasury Department have instructed banks to place additional restrictions on home loans to borrowers in jurisdictions that have PACE programs. In response, cities and states have taken action to save PACE.

For instance, the state of California has filed a complaint against Fannie Mae and Freddie Mack for blocking PACE programs; California Attorney General Jerry Brown argues that PACE funding is an assessment, not a loan, and that Fannie and Freddie have long accepted local governments' use of assessments in California to finance improvements that serve a public purpose. The city of Babylon in New York will likely follow California's action; its leaders joined more than 50 local workers at a rally last Tuesday to announce the town's plans to sue the FHFA. As these leaders note, programs like those in California actually work to reduce the risk of default by requiring a clean record on property taxes and mortgages. In New York, stringent standards have to be met in order to obtain financing under PACE. And in Maine, the Efficiency Maine Trust is creating standards for underwriting requirements and truth in lending provisions to guide consumer disclosure. Further, more federal money is being allocated to fund and guarantee the success of PACE programs. Last year, the US Department of Energy announced funding for PACE projects and is apportioning $80 million as upfront capital for PACE-type programs. PACE programs can also apply for competitive grants under the Energy Efficiency Conservation Block Grant Program.

Feed-In-Tariffs: One other funding source for renewable energy is where a company that installs and maintains a renewable source device receives a Power Purchase Agreement or Feed-In-Tariff with a customer. Here, the customer pays no upfront costs while the energy provider pays for the entire project including installation, maintenance, and trouble shooting. Also, this relationship guarantees that the installation can take place quickly, the service is predictable, and the rate is at parity with other retail electricity rates. Feed-in tariffs have played a role in the development of Germany’s world-leading solar power industry. In the United States, feed-in-tariffs have been adopted in Vermont and Washington.

The Vermont feed-in-tariff law was designed to ensure that homeowners or businesses receive the same return on equity for their investment. Vermont's legislation bases the tariffs on the cost of generation plus a reasonable profit. Vermont's feed-in tariff program contains the key elements of the successful policies found in Europe: tariffs are differentiated by technology and size; tariffs are set on the cost of generation plus profit; and profit is set by a reasonable rate of return, loan contracts terms, and a regular program review.

Rebate Programs: By providing cash incentives, more homeowners and businesses will install renewable devices and technologies in their buildings. States have taken note of this efficient strategy. Twenty-three of them and the District of Columbia offer rebate programs to promote the installation of renewable energy systems and energy efficiency measures such as solar water heating and photovoltaic systems. We highlight a few of them:

California's Million Solar Roofs Initiative provides grants to homeowners who install solar systems, with the amount of the rebate declining over time to reflect the anticipated declining cost of solar power.

Thanks to ARRA funding, Minnesota offers rebates of $100 to $250 on refrigerators, dishwashers, and clothes washers, and New Jersey residents will be able to receive rebates worth $25 to $ 100 on the purchase of those same items. Similar rebate programs for home appliances exist in Louisiana, North Carolina, and South Carolina.

Net Metering: Net metering allows customers who generate electricity through renewable sources to receive credit for electricity they put on the grid. In other words, net metering customers buy electricity when they need it, use the electricity they produce, and sell any excess to the utility. This provides an incentive for consumers to invest in small renewable generation systems. More than 40 states and the District of Columbia have adopted net metering laws.

Last year, Nebraska's LB 436 was enacted to provide net metering for electricity. It includes one to one credit for energy generated up to the amount used, protection against additional utility charges and fees, protection against unnecessary safety or performance standards, and prohibition of additional liability insurance.
Newly enacted AB 510 in California raises the cap set on the number of homes and businesses that can take advantage of net energy metering. Current law caps the amount of electricity that can be generated under the net metering program to 2.5 percent of a utility’s peak demand. AB 510 raises the net metering cap to 5 percent and will help meet projected demands received under the California Solar Initiative program. The law further allows the rate-making authority to compensate net energy producers for the value of the electricity itself, and the value of the renewable attributes of the electricity. Moreover, net energy producers will receive a bonus if the renewable attributes of the energy production add indefinite or unforeseen benefits. Environmental advocates claim that the law, which was introduced last year but died in committee, finally balances the interests of utilities, customer-generators, and non-participating customers. This is a great win for the more than 50,000 customers, including schools, community colleges, cities and counties and homeowners in California who participate in net metering.
New Jersey has one of the most comprehensive net metering and interconnection laws in the United States. It includes a wide array of renewable sources: solar technologies, wind, fuel cells, geothermal technologies, wave or tidal action, and methane gas from landfills or biomass facilities. This program has been praised for standardizing the interconnection procedures for residential and small-commercial customers, who pay at the end of the each year for every excess Kwh they produce.

Protecting the Ability to Install Renewable Energy Sources: States are also enacting rules to protect access to renewable energy. Last year, Virginia enacted SB 320, which voids covenants that restrict installation of use of any solar energy collection device on private property.

Resources
Progressive States Network - Colorado Leads Clean Energy Reform
The Pew Charitable Trusts - The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America
The Apollo Alliance - As Oil Spill Tragedy Continues, Clean Energy Progress in Missouri and Georgia Points to Hope for the Future
The White House - Policy Framework for PACE Financing Programs
Environment America – America on the Move
Center for Social Inclusion - Solar Energy Generation at the Community Level: Briefing Paper Five of Black, Brown and Green
Progressive States Network - Green Buildings: Multi-State Agenda Campaign Update
Apollo Alliance - Efforts Underway to Save Property Assessed Clean Energy (PACE) Programs
The White House - Policy Framework for PACE Financing Programs
Center on Wisconsin Strategy, the Workforce Alliance, the Apollo Alliance - Greener Pathways: Jobs and Workforce Development in the Clean Energy Economy
Environment Maryland - Building a Solar Future: Repowering America's Homes, Businesses, and Industry with Solar Energy

Networking the Green Economy: Creating Jobs and Improving the Transmission of Renewable Energy Sources

Renewable sources present unique and serious transmission challenges due to their intermittency (solar and wind) and the remoteness of the site of generation. For renewable energy production to maintain its current rate of growth, it must overcome significant obstacles, including the lack of capacity and connectivity in the regional electrical infrastructure. The only way that we can fully maximize the use of renewable energy sources is by upgrading the current electrical system. With an upgraded, or smart, grid, renewable energy production overcomes significant obstacles including lack of capacity and connectivity. Improving the electric grid will expand the ability of renewable energy and energy conservation to meet the nation’s energy needs.

The smart grid is an aggregate term that refers to a distribution system that allows the flow of information to the consumer and to the utility company through thermostats, Web based programs, appliances, and other devices. Establishing smart grids at the transmission level will enable digital controls and high-voltage transmission lines to transport energy from renewable energy sources. A smart grid improves the management of the distribution and consumption of energy that results in the integration of various sources of renewable energy into our power system. In this manner, it facilitates more efficient energy use and reduces the amount of emissions from harmful greenhouse gases.

The American Recovery and Reinvestment Act apportioned $4.5 billion on smart grid demonstration projects. Beyond this, $11 billion will be invested in general improvements to the grid, another important step towards a grid that will allow for more flexible and efficient generation and use of power.

Last year, California enacted SB 17/AB 238 to declare that new and modified electric transmission facilities, including the employment of smart grid technologies, are necessary to facilitate the state's energy efficiency goals and renewable portfolio transmission facilities. This is the first smart grid state law in the country, as it promotes the installation of smart meters, data networks and other infrastructure for a cleaner, more efficient electrical grid by — by July 1, 2010. Under this law, the Public Utility Commission is required to report on a yearly basis, starting on Jan. 1, 2011, to the governor and legislature on the progress being made in improvements to the electrical grid.
Vermont and Maryland have each provided funding to study smart metering and/or smart grids, as a means of reducing energy use.
The Pacific Northwest National Laboratory (PNNL) has teamed with utilities in the states of Washington and Oregon to test new energy technologies designed to improve efficiency and reliability, while at the same time, increasing consumer choice and control.
In North Carolina, 100 Lafayetteville residents and businesses cut energy use an average of 20 percent during a six-month pilot last year. The customers were equipped with software that enabled them to check their energy use from the Internet.

By using applications and devices supported by digital infrastructure, such as broadband and information communication technology, we can build a green economy:continuing our economic growth and creating new jobs while decreasing our energy consumption and greenhouse gas emissions.

Resources
Progressive States Network - Networking the Green Economy: How Broadband and Related Technologies Can Build a Green Economic Future
Progressive States Network - Green Jobs Programs to Drive Economic Recovery
The Apollo Alliance - Make It in America: The Apollo Green Manufacturing Action Plan
Progressive States Network - Networking the Green Economy: How Broadband and Related Technologies Can Build a Green Economic Future

Conclusion: A Greener Economy Drives Job Creation

Nearly six out of ten jobs in the green economy fall specifically in the area of energy generation, which includes jobs responsible for producing clean forms of energy such as wind, solar and geothermal. Jobs responsible for solar power generation dominate this subgroup: 62.5 percent of all energy generation jobs in 2007 were in the solar industry. Jobs in wind power were second overall, making up 9.7 percent of energy generation jobs in 2007, but they grew more rapidly – by 23.5 percent between 1998 and 2007, compared to 19.1 percent growth for solar power jobs during the same period. Since the ARRA was enacted, an estimated 150,000 jobs were saved or created in the construction of solar panels and wind turbines.

Industry sector experts have cited state policies such as renewable portfolio standards as important factors in driving investments, attracting companies and growing new industries and jobs because they help create market demand for clean energy technologies, products, and services. However, without key policies such as renewable electricity standards, the market will be slow to grow. The Union of Concerned Scientists agree; they have estimated that a national RPS requiring 20% in renewable energy sources by 2020 could generate 355,000 jobs across the country. Also by this time, the domestic market for renewable energy supplies is likely to reach $226 billion annually.

Potential Federal Action: While states are still making progress on their own, a stronger federal partner would help. Last year, US Representatives introduced the American Clean Energy and Security Act, which requires that 20 percent of the country’s electricity be generated by renewable energy by 2020. This year, the Clean Energy Jobs and American Power Act (also known as the APA) was unveiled in the Senate. The APA includes: a cap and price on greenhouse gas emissions, similar to a cap-and-dividend already considered at the state-level, a target for reducing those emissions to 17 percent below 2005 levels by 2020 and 80 percent below 2005 levels by 2050, and a fee for “carbon leakage” of imports in order to level the playing field between American manufacturers and foreign competitors that emit carbon. Not included in the Senate bill is a national renewable portfolio standard. Although the APA offers support for renewable energy sources, a federal mandate is needed in order to push the remaining 20 states to seriously commit to the use of alternative sources of energy. In the absence of renewable energy standards in the American Power Act, states can and must continue to fill in gap by continuing to mandate the use of renewable energy.

State Policy Program: Whatever the feds ultimately do, states are taking action to ensure that the future is bright -- literally and metaphorically -- for alternative energy production in the United States. With more than half of states having enacted renewable portfolio standards we are well under way to achieving our environmental and economic goals, but much more needs to be done. States should continue to build on their track record of innovation in clean energy policy by continuing to enact and renew their renewable energy goals. Specifically, as this Dispatch has demonstrated, states should:

Enact RPS standards, and for those that have enacted them, to find ways to set higher goals that can be accomplished and are meaningful;
Provide financial support -- in the form of bonds, rebates, or other innovative financing mechanisms -- to accelerate the deployment of more renewable energy technologies;
Integrate renewable sources into an upgraded, “smart” grid, and;
Create good, sustainable green jobs that will enable those employees to develop, manufacture, deploy, and maintain the various elements of renewable sources and smart grid infrastructure.

The key is not only promoting renewable energy supplies, but also of creating actual incentives that spur their use. These incentives come in the form of mandating goals for renewable use, as was the case in Colorado, and placing financial incentives for clean energy investment. As more and more renewables are manufactured, installed and used, it is imperative that our electrical grid also undergoes a drastic reformation.

Resources
Environment America - America on the Move
Headwaters Economics - Clean Energy Leadership in the Rockies: Competitive Positioning in the Emerging Green Economy
Pew Research Center Publications - An Increase in GOP Doubt About Global Warming Deepens Partisan Divide
The Pew Charitable Trusts - The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America
Center for Social Inclusion - Solar Energy Generation at the Community Level: Briefing Paper Five of Black, Brown and Green

Green Economy Roundtable Law Enacted in Rhode Island

Fabiola Carrion — Thu, 08 Jul 2010 13:06:30 -0400

Rhode Island’s HB 7407, now Public Law No. 2010-203, creates the Green Economy Roundtable to advise and assist the Governor and General Assembly in advancing Rhode Island’s green energy economy by developing a statewide action plan.

The bill redefines the composition of Rhode Island’s Green Economy Roundtable in order to ensure a balanced representation of government efforts in advancing the green economy. Roundtable members will ensure that green economy decisions originate from the community as well as from business perspectives so that prosperity is shared by all residents of Rhode Island.

Similar to parts of Progressive States Network’s Green Building model legislation, such a roundtable ensures that community-based leaders, including union organizers, work in conjunction with representatives from the business sector in a task force that will promote, create and retain sustainable green jobs.

Resources
Progressive States Network - Green Building Model Legislation
Rhode Island - Green Economy Roundtable (HB 7407/Public Law No. 2010-203)

What States Gain and Lose Under Proposed US Senate Climate Change Bill

Fabiola Carrion — Mon, 17 May 2010 12:45:53 -0400

After years of states leading the fight to promote clean energy and reverse climate change and the House passing an energy bill last year, U.S. Senate leaders have finally introduced climate change legislation, the American Power Act (APA). The bill is lengthy and complex with compromises that many leading environmental groups object to (see Greenpeace and Friends of the Earth for examples of statements by major organizations and coalitions criticizing the bill), although other groups (see Center for American Progress, Apollo Alliance, Environment America, Blue Green Alliance and Natural Resources Defense Council) have more positive evaluations of the bill as a flawed, but important step forward.

The proposed Senate bill includes a wide range of provisions, including a cap and allowance on greenhouse gas emissions, a target for reducing those emissions to 17% below 2005 levels by 2020 (and 80% below by 2050), and a fee for "carbon leakage" on imports to level the playing field between American manufacturers and foreign competitors that emit climate change-inducing carbon. For more bill details, the NRDC has a comprehensive initial summary of provisions here.

The impact of the federal bill on state government efforts to promote clean energy policy could be profound, with at least three major effects:

State cap and trade programs would be eliminated, potentially replaced by weaker federal rules, albeit ones covering more states.
The federal government would provide additional funding for states’ efforts to develop renewable energy sources, including funding for the smart grid.
States would have greater financial incentives to engage in off-shore drilling while also gaining greater protections if they want to opt out of off-shore drilling.

State Cap and Trade Programs: Long before federal efforts, states created their own cap and trade initiatives, which will be shut down under the federal bill and replaced by a national system more favorable to polluting industries. The first cap-and-trade government program was the Regional Greenhouse Gas Initiative (RGGI), composed by 10 Northeastern and Mid-Atlantic states. To date, eight auctions have taken place under RGGI and the revenues have been reinvested in energy-efficiency initiatives and innovations. Other states in the West and Midwest have similar regional cap-and-trade programs.

Although a federal standard is necessary, an RGGI official stated, “you don’t want to preempt states who can go further and become a model for the country.’’ Preemption would be extremely damaging to states that depend on the clean energy economy to create more jobs and reduce the high levels of pollution. Thanks to the allowances operating in these states, hundreds of millions of dollars have already been raised to create jobs and help homes and businesses become more energy efficient. While there are promises in the Senate bill to compensate states for those losses, it is unclear how complete that compensation will go.

More positively, state authority to set vehicle standards is retained, as is authority to establish clean energy, energy efficiency, and other greenhouse gas control programs with higher standards than federal requirements.

Funding for Renewable Energy Programs: The Act supports state renewable energy programs by promising that a percentage of the revenues raised by allowances be distributed to the states. APA recommends the development of energy efficient buildings (see PSN’s Green Buildings Shared Agenda), as well as renewable electricity incentives, gas utility efficiency programs and smart appliances. The bill also defines the smart grid and promotes its development in the states, including the integration of renewable energy resources and distributed generation, demand response, demand-side management, and system analysis. For a detailed analysis on how the smart grid and other technologies build a green economy, click here.

Off-Shore Drilling and the States: In response to the catastrophe caused by the oil spill in the Gulf of Mexico, the bill now includes two restrictions to off-shore drilling. First, states can opt-out of drilling up to 75 miles offshore. Second, states can veto the drilling plans if they “suffer significant adverse impacts in the event of an accident.” On the other hand, the bill offers large financial rewards to states that allow offshore drilling, with 37.5 percent of royalties from new offshore rigs directed to states, and 12.5 percent of royalties would be deposited in the Land and Water Conservation Fund for federal and state parks and land acquisition. With hard-pressed state budgets, many environmental leaders see these provisions encouraging states to take reckless risks to allow drilling near their states.

A Preemption Dilemma for State Leaders: Many of the states that have pioneered green energy programs are left in a confusing position. On one hand, the bill offers general support for states to run renewable energy programs, but on the other, it will prevent those states who were first to adopt comprehensive energy solutions to fulfill their cap and trade programs and will preempt them from taking some additional steps in regulating destructive industry practices. Many federal environmental laws have long allowed states to adopt standards that are more stringent than federal policies, so any preemption of state initiatives that cap greenhouse gas emissions is a step backwards that should be reevaluated as debate on federal legislation moves forward.

Resources:
American Power Act
Center for American Progress - American Power Act Empowers Americans: An Examination of Benefits to Americans in the Clean Energy Bill
Natural Resources Defense Council - Offshore Drilling Provisions Are Insufficient to Protect Oceans and Coastal Communities
Natural Resources Defense Council - The American Power Act: “First Read” of the Kerry-Lieberman Climate and Energy Legislation
Blue-Green Alliance - Labor-Environmental Partnership Urges Senate to Pass Comprehensive Climate and Clean Energy Legislation to Create Jobs and Make America the Leader in the Global Clean Energy Economy
Environment America -New Draft Climate Bill Takes Critical Steps Forward, But Must Do More to Get America Off Oil
Greenpeace - Kerry-Lieberman Dirty Energy Bailout Bill Not the Solution America Needs
Friends of the Earth - American Power Act: Threatening to Stymie Fight against Global Warming
Apollo Alliance - Apollo Alliance Urges Passage of Comprehensive Federal Clean Energy, Good Jobs Plan as Sens. Kerry and Lieberman Introduce New Bill
Progressive States Network - Returning Cap-and-Trade Revenue to Consumers Recommended in California
Progressive States Network - Climate Justice: Promoting Equity in Dealing with Climate Change
Progressive States Network - Multi-State Shared Agenda: Green Buildings
Progressive States Network - Networking the Green Economy - How Broadband and Related Technologies Can Build a Green Economic Future

Bringing Integrity Back to Science: The US National Academy of Sciences Letter on Climate Change

Fabiola Carrion — Mon, 10 May 2010 12:12:24 -0400

Amidst a surge of questions on the veracity of climate change, 255 members of the US National Academy of Sciences, which since 1863 has advised the government on scientific and technological issues, have expressed their disturbance by these recent “political assaults” and have made it clear: “humans are changing the climate in ways that threaten our societies and the ecosystems on which we depend.”

In a letter published on May 7 in Science Magazine, these leading scientists denounced those who deny climate change as “driven by special interests or dogma, not by an honest effort to provide an alternative theory that credibly satisfies the evidence.” This unusually blunt letter was reportedly drafted in response to the remarks by Republican Senator James M. Inhofe (OK) who labeled climate change data as a "hoax" and to state-based groups like the Heartland Institute, which has promoted "climate denial" propaganda in statehouses around the country.

The letter outlines fundamental premises for which there is a scientific consensus:

The planet is warming due to increased concentrations of heat-trapping gases in our atmosphere. A snowy winter in Washington does not alter this fact.
Most of the increase in the concentration of these gases over the last century is due to human activities, especially the burning of fossil fuels and deforestation.
Natural causes always play a role in changing Earth's climate, but are now being overwhelmed by human-induced changes.
Warming the planet will cause many other climatic patterns to change at speeds unprecedented in modern times.
The combination of these complex climate changes threatens coastal communities and cities, our food and water supplies, marine and freshwater ecosystems, forests, high mountain environments, and far more.

It is now, the undersigners insist, that policy makers must move forward to address the causes of climate change. The letter comes as Senators Kerry and Lieberman are ready to introduce a comprehensive clean energy bill this week in the Senate and as states continue to promote their own versions of climate change legislation.

Resources:
The National Academy of Sciences
Science Magazine -Climate Change and the Integrity of Science
San Francisco Chronicle -Climate Scientists Decry 'Political Assaults'

Secretive Energy Industry Giant Funding State-Based Groups Denying Climate Change

Charles Monaco — Thu, 22 Apr 2010 12:32:20 -0400

The drumbeat of research papers, talking heads and issue briefs attacking the scientific consensus around climate change has been carefully bankrolled by the oil and gas industry. This includes Koch Industries, the energy industry giant and second-largest privately held corporation in the country, which is a key funder of a vast network of right-wing groups -- including many focused on state policy -- who have promoted climate change denial, according to a recent report released by Greenpeace. Foundations controlled by Koch Industries even outspent industry titans like ExxonMobil in giving millions to organizations and front groups that routinely deny climate change and work to obstruct the regulation of carbon emissions.

Charles and David Koch, brothers tied for the rank of 9th richest American, have for decades been major funders of the national right-wing movement. Koch Industries and its subsidiaries, the vast majority of whose assets are controlled by the Koch brothers, encompasses the operation of oil systems, pipelines and refineries, coal supply and trading, and oil and gas exploration efforts.

According to the Greenpeace report, which analyzed the finances of various Koch-related foundations, the Koch brothers funneled $24.9 million from the years 2005-2008 to research organizations involved in discrediting the findings of climate science. This includes the funding of many state-level pro-business nonprofit and policy organizations who have promoted climate denial:

$360,000 to the Pacific Research Institute for Public Policy, a San Francisco-based group active in state policy that funded a film attacking Al Gore's documentary "An Inconvenient Truth"
$283,125 to the Texas Public Policy Foundation, which has funded reports questioning the severity of climate change and warning of the damage that regulation might cause to Texas' state economy
$85,000 to the Independence Institute, a right-wing/libertarian Colorado organization which has hosted events mocking "environmental hysteria and the cult of climate change"
$70,000 to the Goldwater Institute, which has fought passage of renewable energy standards in the state of Arizona
$60,000 to the Mackinac Center for Public Policy, the large conservative policy outfit in Michigan which routinely spreads climate change myths
$30,000 to the State Policy Network, a corporate-funded organization which has participated in spreading the work of climate change deniers at the state level
$10,000 to the John Locke Foundation, a North Carolina-based conservative think tank focused on state and local issues that has published materials promoting climate change denial

And the American Legislative Exchange Council (ALEC) has received $75,000 in the last couple of years, part of over $400,000 it received from the Koch network of sources in the last decade. ALEC's work on behalf of the energy industry has included placing energy industry executives on its natural resources task force, writing model legislation that would obstruct attempts to limit carbon emissions, and approvingly citing the work of climate change deniers in its publications.

Other conservative foundations involved in denying climate change who received significant funding from the Koch foundations include the Heritage Foundation ($1.6 million from 2005-2008), the Cato Institute ($1.0 million), the Manhattan Institute ($800,000), the Washington Legal Foundation ($655,000), the Federalist Society ($542,000), and the Foundation for Research on Economics and the Environment ($365,000). In total, the report reveals that over the past 13 years, Koch-associated foundations have contributed an astonishing $48 million in grants to right-wing groups who have worked to discredit the science of climate change.

The worrying implications of this well-funded effort to promote scientific denialism are becoming clearer as recent polls have shown a significant drop in the percentage of Americans who are aware of the threat of global warming.

Koch Industries has responded to the Greenpeace report by claiming that they believe "the political response to climate issues should be based on sound science" and asserting that they've simply "strived to encourage an intellectually honest debate on the scientific basis for claims of harm from greenhouse gases." But by funding a multi-million dollar national network of groups with a common focus of discrediting the widely accepted scientific consensus on climate change (including many with a specific focus on the fight in the states), it is clear that Koch's real goal is to promote myths and misinformation in order to boost their own profits at the expense of both our nation's global economic competitiveness and our planet's environmental health.

Resources:
Greenpeace - Koch Industries: Secretly Funding the Climate Denial Machine
Greenpeace - American Legislative Exchange Council (ALEC) - Koch Industries Climate Denial Front Group
Green Living Ideas - Powerful Energy Lobbying Group ALEC Writing Anti-Climate Legislation in 16 States
Natural Resources Defense Council - Fight Clean Energy Smears: Who's Behind The Smears
Progressive States Network - 1,000+ Legislators Sign Historic Climate Change Letter
Progressive States Network - Eye on the Right: Businesses Split over Climate Change

Saving Jobs: More Federal Action Needed on State Fiscal Relief

Altaf Rahamatulla — Thu, 01 Apr 2010 13:56:44 -0400

Last month, President Barack Obama signed the $17.5 billion Hiring Incentives to Restore Employment (HIRE) Act into law to assist small businesses and spur job creation. This was definitely a start, but the gravity of the current crisis demands much bolder and quicker action. Congress needs to enact further state fiscal relief to support jobs and avoid the massive layoffs that threaten social and economic vitality in the states.

Federal action is still needed to provide support for state Medicaid programs by extending the increased medical assistance percentages (FMAP), boost funding for educational programs, invest in infrastructure projects and public transportation, support the long-term unemployed to sustain them until they reenter the workforce, and provide direct and comprehensive financial assistance to state and local governments to perform the vital services needed to maintain growth in local communities.

In the past few months, Congress has started to take action:

Jobs for Main Street Act (H.R. 2847): On December 16, 2009, the House passed this bill, which would redirect money from the Wall Street bailout to fund environmental and infrastructure projects, extend FMAP, support education jobs, and provide small business loans. The bill would additionally provide funding to public safety and law enforcement jobs, address public housing needs, and invest in clean and safe water projects.
American Workers, State, and Business Relief Act of 2010 (H.R.4213): On March 10, the Senate passed this piece of legislation to provide state fiscal relief through FMAP increases, provide support for the long-term unemployed though Unemployment Insurance and COBRA extensions through the end of December 2010, reverse a scheduled 21 percent payment cut for doctors who provide services through Medicare, and extend several tax breaks, such as the research and development tax credit. The bill also raises almost $40 billion in new revenue by reducing a biofuel tax break utilized by the paper industry and strengthening tax shelter rules.
The Local Jobs for America Act (H.R. 4812): Rep. George Miller (D-CA) introduced this bill last month to provide $75 billion to local communities to hire needed staff over two years, funding for 50,000 private-sector training jobs, $23 billion to support education and teaching positions, and $1.18 billion for law enforcement. Overall, the legislation would appropriate $100 billion to job creation efforts. Within a month of its introduction, the bill already has 105 co-sponsors.

Individuals and advocacy organizations should press their Congressional leaders on the need for action. If you are a state or local lawmaker, please sign onto this letter calling on the President and Congress to enact a comprehensive jobs plan, including relief to states and local governments to foster economic growth and create and maintain jobs.

Resources:
Campaign for America's Future - Major New Jobs Bill Gains 105 Co-Sponsoring
Center on Budget and Policy Priorities - Recession Continues to Batter State Budgets; State Responses Could Slow Recovery
Center on Budget and Policy Priorities - An Update on State Budget Cuts
Economic Policy Institute - Dire states--State and Local Budget Relief Needed
Economic Policy Institute - Jobs Crisis Fact Sheet
Progressive States Network - Take Action: Additional Federal Job Creation and State Fiscal Relief

Colorado Leads Clean Energy Reform

Fabiola Carrion — Thu, 01 Apr 2010 13:46:11 -0400

This session, Colorado continues its tradition of being a national leader in championing clean energy reform through legislative efforts that expand its renewable energy standards, reduce the amount of pollution from coal, and promote the funding of clean energy development.

Increasing Energy from Renewables: Last week, the state enacted one of the most far-reaching clean energy laws in the country, requiring 30 percent of large utilities’ electricity to come from renewable energy resources by 2020 and becoming the 31st state, in addition to the District of Columbia, to have renewable energy requirements.

Under HB 1001, utilities must supply at least 12 percent of their retail electric sales from such sources from 2011 to 2014, 20 percent from 2015 to 2019, and 30 percent for 2020 and beyond. Three percent of this standard must be met by local solar power, leading to the construction and installation of 100,000 solar rooftops, panels, and turbines. As we detailed in a previous Dispatch, the great advantages of solar investment include the high number of components that are involved in installing solar power systems. Manufacturing and installing these devices requires a large and diverse workforce that cannot be outsourced overseas, guaranteeing that these jobs will remain in the states. In fact, more than 200 solar companies already operate in Colorado, and with this boost, more companies will be moving there to create even more job opportunities. “This bill will boost the New Energy Economy and grow Colorado’s renewable energy markets,” said Mary Broderick, renewable energy and marketing agent with the International Brotherhood of Electrical Workers Local 68, which will help train a new generation of solar installers.” A wide coalition of stakeholders also backed the law, including environmental groups like Environment Colorado, and the largest utility in Colorado, Xcel Energy, which serves 70 percent of the state’s population.

The Colorado law will be one of the strongest in the nation, falling just short of California's standard which will require utilities to derive 33 percent of their electricity from renewable by 2020. But, with California already falling short of the 2010 goal, there is an emphasis on the need for ongoing work to ensure that these standards become reality. Still, the Colorado bill promises to create a diverse portfolio of energy resources to keep energy affordable in the long term, and similar renewable energy standards have been shown to be an efficient method for promoting renewable energy use in the states.

Cutting Emissions from Coal: Colorado also passed the Clean Air-Clean Jobs Act, obliging rate-regulated utilities that operate coal-fired electric generating units to reduce emissions or consider converting from coal generation to natural gas. Under HB 1365, utilities must submit to the public utilities commission an emission reduction plan for emissions covering the lesser of 900 megawatts or 50 percent of the utility’s coal-fired electric generating units in Colorado. Utilities such as Xcel Energy must prepare a comprehensive plan to reduce nitrogen-oxides pollution by up to 80 percent at its coal-burning plants, which could cut Xcel’s Colorado coal fleet by 30% and a cut of as much as 5 million tons a year in carbon pollution.

Xcel has entered negotiations with state officials and agreed to support this bill, announcing that some its coal plants could operate with retrofits and others could be replaced by natural gas. In exchange, the bill allows Xcel to lock in prices in deals lasting up to 20 years. Gov. Bill Ritter and environmental advocacy groups are also backing HB 1365, although not all are on board with this bill, including a number of labor unions who fear job loss in the mining and railroad industries. Some conservation groups are also worried that natural gas development may lead to a wide set of problems, ranging from reduced air and water quality to increased costs.

Investing in Clean Energy Development: Finally, the Colorado House has passed HB 1182, which seeks to expand loans and financing agreements to facilitate electric power interconnection projects, which is especially critical for rural areas that need to access energy from Colorado’s main power grid in an energy-efficient manner. As the Progressive States Network and its partner organizations highlighted in our report Networking the Green Economy, smart technologies are needed to transport energy from solar panels and wind farms to consumers.

Each of these bills is a step toward continuing Colorado's national leadership in fostering a greener future.

Resources:
Colorado HB 10-1001
Colorado HB 10-1365
Colorado HB 10-1182
Progressive States Network – Renewable Portfolio Standards Across the States
Progressive States Network - Solar Energy Continues to Make Its Case - Now as a Job Creator
Progressive States Network – Networking the Green Economy: How Broadband and Related Technologies Can Build a Green Economic Future
BusinessWeek – Colorado Gas-Coal Fight Could Preview National Battle
Center for American Progress – Xcel-erating Natural Gas in Colorado
In Denver Times - Ritter Signs Historic Renewable Energy Bill, Increasing Standard to 30% by 2020
New York Times – Colorado Increases Renewable Requirements

Reducing Military Spending to Spur Economic Growth at Home

Altaf Rahamatulla — Thu, 11 Mar 2010 13:02:00 -0500

The Senate struggled to approve a $15 billion jobs bill and has yet to enact additional fiscal relief for the states, but lawmakers continue to approve trillions of dollars for wars and defense appropriations. In fact, ignoring the almost $1 trillion spent on the Iraq and Afghanistan wars, military spending has grown 41 percent since 1998. If progressive leaders intend to reduce long-term deficits and ensure a robust economic recovery, cutting inefficient and costly areas of the defense budget should be a top priority.

For this reason, state legislators from across the country have signed on to the Women Legislators' Lobby's (WiLL) letter encouraging the federal government to trim the unnecessary spending in the Pentagon budget and redirect that money to areas in the economy that generate more jobs and address significant issues, such as climate change, education, and infrastructure maintenance.

If you are a female state legislator and interested in supporting the effort, please sign on by clicking here, calling (202) 544-5055, ext. 2602, or emailing will@wand.org.

FY2010 Budget Request: In February, President Obama remarked that one of his priorities would be reforming the defense budget so that the country is not spending scarce revenue on obsolete weapons. Nevertheless, the President's FY2010 budget request for the Department of Defense and the nuclear weapons portion of the Department of Energy is approximately $557 billion, which amounts to half of the entire federal discretionary budget. The Congressional Budget Office (CBO) finds that this level of spending will only increase in the future. "In CBO’s estimation, carrying out the Department of Defense's 2009 plans for 2010 and beyond—excluding overseas contingency operations—would require defense resources averaging at least $573 billion annually (in 2010 dollars) from 2011 to 2028." These astronomical figures do not include the costs of the wars in Iraq and Afghanistan, as they are funded through an emergency supplemental budgeting process. Since 2001, the country has allocated approximately $915 billion to the military operations in Iraq and Afghanistan.

In the State of the Union, President Obama proposed to freeze all non-security discretionary spending for three years, creating $250 billion in savings, yet exempted the defense budget from scrutiny. However, as Lawrence Korb, a senior fellow at the Center for American Progress and former Assistant Secretary of Defense under President Reagan indicates, "[i]f President Obama is serious about controlling spending, he can’t exempt the Pentagon... Because the budgets of [Defense] agencies, particularly that of the Pentagon, are responsible for a large and increasing share of the discretionary portion of the federal budget, the president’s spending freeze will have a marginal effect."

Source: Women's Action for New Directions - Making the military budget smarter, not bigger

US Military Spending: Even as the US is failing to invest in the basic infrastructure needed for global economic competitiveness, the nation's military budget dwarfs the amount other countries allocate for defense and accounts for almost half of all military spending in the world.

Additionally, 83 percent of US national security spending is specifically allocated to the military, while 11 percent is directed toward homeland security, and 6 percent to international affairs. As a result, US security spending is overwhelmingly skewed towards weaponry rather than basic protection and diplomatic efforts. As Women's Action for New Directions (WAND) notes, portions of the military's budget go to "weapons systems that were intended to fight the military might of the Soviet Union during the Cold War. They are now obsolete, unnecessary, and eating up federal dollars that could be better spent elsewhere." WAND and the Center for American Progress identify several defense spending cuts that would not threaten US efforts overseas or security within the nation's borders.

Jobs and Economic Recovery: According to a report by economists at the University of Massachusetts, reducing spending on obsolete weaponry and inefficient defense spending and shifting funding towards other critical sectors will create jobs and foster economic recovery. For example, investing in mass transit creates twice as many jobs as spending on the military. Specifically, investing $1 billion in the military only creates 8,500 jobs, while the same investment in:

home weatherization and infrastructure create 12,800 jobs;
health care, 12,900 jobs;
education, 17,700 jobs;
and mass transit, 19,800 jobs.

Other countries have recognized that these investments translate into economic growth. For instance, China's $585 economic stimulus program is predominantly focused on infrastructure spending on highways, railroads, and power grids.

Speaking in Florida in January, President Obama acknowledged that Asian and European countries are vastly ahead the United States in developing high-speed rail: “Other countries aren’t waiting. They want those jobs. China wants those jobs. Germany wants those jobs. They are going after them hard, making the investments required.”

Take Action: Sign on to WiLL's letter calling on the President to cut non-essential spending in the Pentagon budget and redirect that money to areas in the economy that generate more, and better, jobs for long-term security by clicking here, calling (202) 544-5055, ext. 2602, or emailing will@wand.org.

Resources:
Center for American Progress - Paying for the Troop Escalation in Afghanistan
Congressional Budget Office - Long-Term Implications of the Fiscal Year 2010 Defense Budget
Progressive States Network - Reforming Defense Spending and National Guard Overseas Deployment
Women's Action for New Directions - Finding New Ways to Create Jobs
Women's Action for New Directions - Making the military budget smarter, not bigger
Women Legislators' Lobby - Balanced Security Spending

Solar Energy Continues to Make Its Case - Now as a Job Creator

Fabiola Carrion — Thu, 18 Feb 2010 12:27:11 -0500

With more people worried about job security and the economy, state policy leaders and several corporations are making the case for renewable energy legislation as a job creator.

Solar energy creates and retains jobs, including those in the manufacturing industry. Texas business leaders noted in a recent report, Lone Star Power: How Texas Businesses Can Supply the World with Solar Energy, one of the great advantages of solar plants is the large number of components that are involved in installing solar power systems. Manufacturing and installing these devices requires significant job creation. In addition, jobs to maintain solar plants cannot be transferred overseas, therefore guaranteeing that jobs will remain in this country. In fact,the same Texas business leaders acknowledged the solar industry creates 50% more jobs than the coal industry. Additionally, an increasing number of American manufacturers are losing their edge in the international playing field. For instance, China is currently the world’s largest manufacturer of solar panels and the front runner in the green world economy, boasting 1.12 million renewable energy jobs at the end of 2008. There is a clear need for investment in solar energy in order to remain a competitor in the global market.

So what does it mean to be solar? One way to generate solar energy involves using mirrors to reflect and focus the sun’s rays, providing heat, which in turn results in power. Another increasingly popular way to create solar energy is through photovoltaic panels, where solar systems are installed on the rooftops of homes and office buildings. These solar roofs are also easily linked to the electrical grid, which manages electricity consumption, thus increasing efficiency.

In our Dispatch last March, we listed some state efforts to enact solar energy legislation. So, what are some states doing lately with solar energy?

In Maryland, one bill was introduced to require a quicker ramp-up of the solar portion of the state's renewable portfolio standard and another bill was introduced to require utilities to pay customers back any surplus energy they create with the solar panels on their roofs.
The Los Angeles Department of Water and Power (DWP) has also initiated a project to create what will be the world's largest solar farm in Owens Lake, California.
Corporations and environmental groups in Texas are advocating for incentives to build solar-integrated buildings in the state that enjoys the most solar solar radiation in the country. They also cite a Blue Green Alliance report, which finds that Texas could gain over 23,000 manufacturing jobs in solar energy if the US were to move to a 25% renewable energy standard.

If states continue to take action encouraging investment in solar power, manufacturers, workers, and consumers will benefit from the opportunity to create and retain jobs in building solar capacity.

Resources:
Environment Texas - Lone Star Power: How Texas Businesses Can Supply the World With Solar Energy
Tree Hugger - New Bill Could Create 10 Million Solar Roofs Across US
Progressive States Network - Promoting Municipal Financing for Solar Power Investments
The Baltimore Sun - Maryland Aims for 100,000 Solar Rooftops in 10 years
Reuters - Los Angeles Eyes Owens Lake for Huge Solar Project
Blue Green Alliance - Building the Clean Energy Assembly Line: How Renewable Energy can Revitalize U.S. Manufacturing and the American Middle Class

Job Creation and State Fiscal Relief Resolutions Moving in the States

Altaf Rahamatulla — Thu, 11 Feb 2010 12:12:03 -0500

In the State of the Union speech, President Barack Obama stated:

"The devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder... That is why jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill."

With the fiscal crisis forcing states to layoff hundreds of thousands of teachers, nurses and police officers, the need for more federal job creation and state fiscal relief support is clear. And there is substantial momentum building around this issue in the states.

New Mexico Rep. Eleanor Chavez introduced HJM39, a joint memorial calling on the federal government to pass a jobs creation plan. The memorial passed the House of Representatives last Saturday and will now be considered by the state Senate.
Similar resolutions are likely to be introduced in Illinois, Nevada and Vermont. Members of the Tax Fairness Organizing Collaborative (TFOC), including New Yorkers for Fiscal Fairness (NYFF) and the Progressive Leadership Alliance of Nevada (PLAN), are working with lawmakers in their states to highlight the acute need for increased federal support.
Along with Maine Senate President Libby Mitchell, House Speaker Hannah Pingree held a press conference this past Tuesday to garner awareness of Maine's economic and fiscal situation and highlight the need for another round of federal aid.

If you are a lawmaker interested in introducing a resolution requesting the federal government to move a jobs bill, PSN can assist you in that effort. Please contact us at jobcreation@progressivestates.org for support. General resolution language can be found here.

Additionally, over one hundred legislators from thirty-one states have signed on to Progressive States Network's letter calling on the President and Congress to move swiftly on job creation and state fiscal relief. State lawmakers can sign onto the letter here, while citizens and advocates can use this online tool to contact their state legislators and ask them to add their signature.

The Need and Public Support for Action: As we discussed in January, the passage of the American Recovery and Reinvestment Act (ARRA) in early 2009 was critical in preventing a full collapse of the national economy and helping states address huge budget gaps. The Congressional Budget Office (CBO) estimates that the ARRA created or maintained 600,000 to 1.6 million jobs as of September 2009 and found it decreased the unemployment rate by almost one percentage point. Unfortunately, millions of Americans are still out of work and states are struggling to find ways to deal with enormous deficits and plummeting revenue. Projected governors' budgets could lead to layoffs amounting to an additional 900,000 jobs lost in the economy.

There is extensive bipartisan support for federal funding for job creation and aid to states. Winthrop University conducted a poll in late 2009 and found that 71.6 percent of respondents favor funding for jobs (94.5 percent identify as Democrats, 53.4 percent Republican, 68.9 percent Independent) and 62.7 percent support "giving aid to states in serious financial trouble" (80.6 percent Democrat, 50.9 percent Republican, 63.6 percent Independent).

As the U.S. Senate moves on a jobs package within the next few weeks, timing is crucial. State lawmakers must send a strong message to Washington that the country needs jobs and states need relief.

Resources:
Center on Budget and Policy Priorities - Additional Federal Fiscal Relief Needed to Help States Address Recession's Impact
Center on Budget and Policy Priorities - Recession Continues to Batter State Budgets; State Responses Could Slow Recovery
Stateline.org - Economist Mark Zandi: On stimulus, jobs, state finances, inflation and the year ahead
Moody's Analytics - The Case for Another Round of Federal Aid to State & Local Govt
WhiteHouse.Gov - Remarks by the President of the United States in State of the Union Address
Winthrop University - Winthrop Poll Results - November 2009 Findings
Center on Budget and Policy Priorities - Governors’ New Budgets Indicate Loss of Many Jobs if Federal Aid Expires