Showing posts with label energy. Show all posts
Showing posts with label energy. Show all posts

AMERICAN FORUM


By Pam Solo

America is facing a crisis of leadership. We need and deserve a vision and strategy to meet the energy and economic challenges facing the United States.

The latest budget proposal for 2013 illustrates this over and over again. The President summarizes it best as “all of the above” and is a vote for a lot of business as usual and a little clean technology.  The problem of course, is that this one size fits all approach to powering the nation is a recipe for disaster.  By throwing money at “clean coal” technology, nuclear power and fracked natural gas, we waste time, money and risk losing a share in the global market for clean energy technologies.

As an example, even after the recent Japanese nuclear tragedy the conventional wisdom in Washington is that we should invest 770 million dollars researching “advanced small nuclear reactors.”

Each of these reactors will require perfect attention to detail, perfect mechanical functionality, perfect maintenance, and optimal operating conditions, 100% of the time, for decades. At the same time budgets pressures dictate less and less people to run these plants. What could go wrong with that plan? Why proliferate the dangers and the security risks if there are alternatives?

The prevailing sentiment in Washington is that in addition to nuclear power we need natural gas. Natural gas solution is a fossil fuel that requires injecting toxic chemicals and millions of gallons of water into rock formations near water supplies.  Injection wells for waste water have been proven to contribute to earthquake dangers.  This process called “fracking” has a host of negative side-effects, and if Washington gets its way, communities throughout numerous states will host drilling rigs and spend their water budget on fracking natural gas.

Residents in Colorado, Texas, Wyoming, and Pennsylvania are reporting negative health effects from the fracking operations already underway in those states. 

The situation is so bad in one Pennsylvania town that a special pipeline had to be built to bring in drinking water after fracking ruined the local water supply.  The 2013 budget has 12 million dollars assigned to try and research a way to do the fracking process without poisoning Americans in the process, inherently acknowledging the problems with the process.

Unfortunately, energy companies will have unprecedented new access, as the president proposed in his last State of the Union address:  “Over the last three years, we’ve opened millions of new acres for oil and gas exploration. And tonight, I’m directing my administration to open more than 75% of our potential offshore oil and gas resources.” Pennsylvania is in the midst of passing legislation to preempt the authority of towns and municipalities to control or deny drilling in their communities.

The health and safety of these communities is offered as potential sacrifice zones to the same industry that caused the BP oil disaster in the gulf and allowed the oil spill in Yellowstone national park, with over 1,500 barrels spilled and only 1% of the spill ever recovered. The same industry that projects 11 major spills along the proposed Keystone XL pipeline route has already had 14 spills during the first year of operation for the original pipeline.

To try to mitigate this risk the proposed federal budget includes spending 386 million dollars to expand the Department of Interior to help oversee this hugely expanded offshore oil and natural gas development process. Remember, oversight did nothing to prevent the gulf oil disaster as BP just ignored existing regulations anyway. 

Even worse, after the accident BP was put in charge of the clean up. They had the power to control media access to the area, to control the message on the damage caused, and to control our discourse on the safety for deep water drilling. So how effective is spending a third of a billion dollars to monitor an industry that we know will break the rules anyway and then won’t be held to account after it catastrophically fails?

When it comes to safety and new ideas on our energy future both Congress and the Administration are dead wrong.  Instead they should be massively investing in efficiency and renewable sources. The current federal budget allocates only 8% of the entire Department of Energy submission to work on energy efficiency and renewable energy projects. By comparison almost 28% of the Energy budget goes to weapons activities, even though the President’s plan already gives 613 billion dollars to the Department of Defense.

We have other options. For example a recent report by Synapse Energy Economics Inc. shows that moving to renewable and clean energy sources would not only power our society safely but is a job creator for the United States and will result in net savings for consumers over the life of the study period.

They calculated that transitioning to renewable techs would create 42,700 construction jobs. The initial 42k jobs are just the tip of the iceberg, as the construction efforts would stimulate building suppliers, manufacturers, and related areas to create even more jobs. The report estimated 352k jobs would be created in total.

Plus this is power without the threat of oil spills or toxic chemicals in our water supply. Power that doesn’t require an additional third of a billion dollars just to monitor compliance with existing safety laws.

Washington’s “all of the above” consensus is a failed strategy and a continuation of a status quo that just doesn’t work anymore.  Leadership at the state and local level outpaces Washington.  Communities around the country will continue to call on the President and Congress to articulate a vision of the future that looks more like 2050 instead of 1950.

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Solo is president and founder of the nonprofit and nonpartisan Civil Society Institute.
Copyright (C) 2012 by the American Forum. 3/12

OHIO FORUM

By Wendy Patton

The American Recovery and Reinvestment Act of 2009 cut taxes for businesses and households, boosted safety net services for the eight million who lost their jobs, and jump-started job creation.

Midway through the three years of Recovery Act programming, a little more than half of the money has been awarded. Policy Matters Ohio took a look at how the state is faring in getting and spending the money in the categories of energy and the environment. So far, the news is good.

The Recovery Act allocated over $100 billion to jumpstart job creation in energy and the environment. Companies, schools, agencies, universities and individuals across Ohio jumped on the opportunity. A billion dollars have already been awarded here and Ohio ranks seventh in getting the money out on the streets, with more awards coming every week.

Funded projects have created jobs in construction as workers have been hired to upgrade housing and buildings for energy efficiency. Close to 19,000 homes have been weatherized, creating over 2,000 jobs. A water treatment plant in Wilmington will be powered by solar panels, cutting water bills for residents. A jail in Wood County will get new and more efficient boilers, lowering costs. Homes will receive smart meters, allowing customers to monitor their own energy use. Clean water and sewer projects have been built throughout the state, employing construction workers in repairing or expanding infrastructure. Nuclear sites are being cleaned up. Factories have received tax credits to start new lines and to develop new clean energy products. Demand for manufactured goods for these projects -- from insulation, windows and solar panels to industrial sensors and controls -- has pulsed through Ohio’s industrial base, boosting orders and creating factory jobs.

We found these projects in all counties and in towns and cities of all sizes. Funding has reached the places hardest hit by the recession, as mandated in the legislation. Using a formula that adds poverty and unemployment rates in each county to measure economic distress, we divided the 88 counties into four equal groups (quartiles) based on economic conditions. The 22 counties with the weakest economies received the highest per-
capita funding of $172 per resident in the categories of clean energy and the environment, almost double the state average.

The second largest per-capita funding of $79 went to counties with moderately lagging economies. The third quartile, made up of counties with moderately strong economies, received a per-capita average of $73. The fourth quartile of counties, with relatively strong economies, received $60 per resident. Distribution of Recovery Act funds in clean energy and the environment reached all counties in a way that provided most to the neediest places.

The short-term mission of the Recovery Act of providing relief to workers, families and communities struggling with the recession, is being fulfilled, while the long-term national economic strategy is being addressed at the same time.

The international market for clean energy investment is immense. By 2020, clean energy will be one of the world’s biggest industries, totaling as much as $2.3 trillion. Our international competitors have integrated national policies to build their own domestic clean energy companies and capture market share in global markets. Spain and Germany, major contenders in green markets, invest heavily in companies that make products for clean energy generation, but also mandate a transformation to renewable sources. China, the world’s largest supplier for these markets, provides incentives for firms from around the globe to come and manufacture clean energy products there, and also has national goals to shift domestic energy supply to renewable energy sources. The only policy employed by our federal government here is the funding under the Recovery Act, and Ohio is doing well in grabbing that opportunity.

In the short run, Ohio has benefitted from Recovery Act support of clean energy and the environment. Funding has reached all counties and has helped those places most hurt by the recession. In the long run, a foundation is being laid for a competitive manufacturing base that can compete in global clean energy markets. It’s a good deal for Ohioans.
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Patton is a senior associate at Policy Matters Ohio.
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Copyright (C) 2010 by Ohio Forum. 10/10

AMERICAN FORUM

By John Decock

According to current nuclear industry proposals, over two dozen new nuclear reactors would be constructed in the United States, the vast majority in the Southeast and Texas. President Obama recently offered $8.3 billion worth of taxpayer-backed loan guarantees to two of them in Georgia, which could be the first to be built in the U.S. in nearly four decades.

Wall Street isn’t interested in investing in these expensive and risky projects, so these guarantees promise that taxpayers will pay back the nuclear industry’s loans if the project fails.

In addition to the high cost and risks, new reactors create another problem, one that is rarely mentioned: they put enormous pressure on water resources. Nuclear reactors require huge amounts of cooling water to operate; without adequate water, they cannot produce electricity. (According to the industry’s Electric Power Research Institute, nuclear reactors can consume between 400 and 720 gallons per megawatt hour; while coal consumes about 300 gallons and natural gas, less than 250 gallons.)

So, the U.S. is pinning its energy future on a power source that is the most vulnerable to weather extremes and that stresses the water resources on which we rely for healthy people and strong economies. As we all have seen in recent years, weather patterns can be wildly erratic, producing floods as well as droughts.

Does anybody remember the drought that hit the Southeastern U.S. in 2007? During that summer and fall, one of the worst dry spells in over a century triggered water wars, forced power stations – including reactors – to reduce operations, and saw rivers and lakes reach their lowest levels in memory. Water had to be trucked into communities and rationing was widespread. In many areas, daily life was heavily disrupted.

Scientists say that warmer temperatures from climate change will mean a less dependable supply of water. This should be of special concern to residents of the southeastern United States, which is seeing its energy demand grow – and its water resources become increasingly stressed. In the Southeast, electric power production accounts for nearly two-thirds of all freshwater withdrawals, or nearly 40 billion gallons daily. (That’s as much as all public-water supply customers in the U.S. use each day.)

During a 2006 heat wave, reactors in Michigan, Pennsylvania, Illinois and Minnesota were either forced to cut output or shut down entirely because there was not enough cooling water. During a 2003 heat wave in France, air temperatures at nuclear reactors came within two degrees of requiring an emergency shutdown. Employees were forced to use garden hoses to spray cold water on the exterior walls of the reactors to keep them from overheating.

Concerns about adequate cooling water have been raised in the context of Exelon Corporation’s plans to build two reactors in Victoria County, Texas. Those reactors would use water from the Guadalupe River, which during a 2009 drought dropped so low it could no longer supply drinking water to the community. On March 25, Exelon withdrew its application for a construction and operating license for the site, and has applied for an “early site permit” that must examine the water issue.

The water supply question isn’t an arcane one to be thrashed out quietly among engineers working for utility companies. Taxpayers have a multi-billion-dollar stake in this question. They are guaranteeing the loans to build these reactors. If they aren’t economical and reliable, then the utility could default, leaving US taxpayers to bail them out.

The Obama administration has proposed tripling loan guarantees for additional reactors. Some in Congress even support a “permanent financing platform” in the form of risky loan guarantees to underwrite all new reactors.

So, as investors in these projects, taxpayers have every right to ask: Will these multi-billion-dollar reactors be rendered useless each summer as rivers and lakes dry up and the region scrambles to meet basic water needs? Will this expensive and risky power source be able to help us curb our global warming pollution?

We need to make smart choices for our energy future – choices that are economical and protective of public health and natural resources. Nuclear power falls short in both categories.
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Decock is the President of Clean Water Action
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Copyright (C) 2010 by the American Forum. 6/10

NORTH CAROLINA EDITORIAL FORUM

By Mary Olson

When advisor Dave Freeman helped President Carter navigate the rough waters of the 1970s oil crisis his compass was to find energy that is produced but does not perform a useful function – and stop that waste. Like pumping gasoline on the ground much of our electric power capacity today is effectively wasted.

How is power dumped? An un-insulated roof or leaky old windows cause a furnace to work too hard; newer appliances and industrial motors use a fraction of the juice, paying for themselves many times over (once is savings, more is profit). The trick is that wasted energy when “saved” is “here” and available for another purpose…since it is already generated there is no additional pollution or toxic waste, and also no need to build a new power plant; it is pure “cream.”

North Carolina is awash in power we already have, that is not being used. Imagine an economy nearly twice the size on what we generate today – or alternately a fraction of the power we have now supporting what we do today – possible? Yes. Architects Mike Nicklaus in NC, and Steven Strong nationally, design buildings that not only use less power, they save a system as much energy as they use: net zero.

Unfortunately, our current market is not structured for energy corporations to take advantage of this “cream.” To make more money, they must make and sell more power…even better, build new power plants. NC utilities are rewarded for building new plants on a percentage basis (12.4% guaranteed return on capital investment) so the more they spend, the more “rewarding” this is. Thanks to a 2007 law, NC utilities now charge customers “upfront” for new power plants and still get that return on investment. This may explain why there is such a debate going on about “what kind of power plant we need,” rather than the real question: do we need one at all?

Sadly, President Obama is calling for three times as much taxpayer support for reactor construction than the Bush Administration offered (from $18.5 to $54 billion). The problem is, we don’t need new plants – we have enough wasted energy in our system now to transition to renewables while phasing out both coal and nuclear in the process.

Even without factoring in the real costs (construction, contamination at all fuel cycle sites, waste management or isolation for 100,000 human generations), nuclear is still one of the most expensive forms of power out there, on a par with retail photovoltaic panels – except the solar panel does not need police to protect it, threaten anyone with cancer, or take billions of gallons of water to cool it.

There are many reasons that on February 11, 1985 Forbes Magazine declared nuclear power the “largest managerial failure in history” including the $100 billion default in nuclear loans for the nuclear reactors we have today. A vibrant economy will not result from investment in a dead industry. President Obama and his team are repeating a titanic mistake by pouring billions of dollars into loan guarantees for the all but dead nuclear reactor industry. Thirty years without a new reactor order means that Obama is really trying to resuscitate a cold corpse.

Here in North Carolina we have a better idea: NC SAVE$ Energy would create an independent, non – utility administration for a statewide energy savings program. If you have read this far, read “energy recovery program!” The mandate begins with residential housing stock and would invest in energy upgrades and retrofits. NC SAVE$ Energy will stimulate the NC economy, create three to six times more jobs that investment in new nuclear, reduce air pollution, prevent radioactive waste and oh by the way, free up a significant portion of the power already being generated here and now in NC.

It is discouraging to hear that the Governor’s new Energy Policy Council is going to tour Progress Energy’s Shearon Harris nuclear reactor; this is not progress. It is time to listen to President Carter’s advisor, Dave Freeman again – who later as the head of TVA presided over the cancellation of 7 nuclear power plants because they would have cost too much. We have what we need; we simply need to use it wisely.
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Olson is the Southeast Regional Coordinator for Nuclear Information and Resource Service.
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Copyright (C) 2010 by North Carolina Editorial Forum. 4/10

TEXAS LONE STAR FORUM

Karen Hadden

Heavily subsidized by taxpayers and rate-payers, nuclear power is susceptible to delay, cost overruns and significant environmental risks. Investing billions into more nuclear power threatens to derail funding that would be better spent on energy efficiency and safer, cleaner renewable energy.

Moody’s advises investors that nuclear projects frequently lead to financial crunch and credit rating drops. The two South Texas Project reactors proposed for the existing Bay City site were supposed to lead the so-called “nuclear renaissance,” but there has been strong citizen and legal opposition and the cost has already skyrocketed. Estimates now exceed $18 billion, three times original projections. No shovel has yet been turned and no license granted.

Maybe you remember the massive boondoggle when the South Texas nuclear reactors ran six times over budget; were eight years late coming online; and plagued with mismanagement, construction problems and lawsuits. Think déjà vu.

South Texas Project partners NRG and San Antonio municipal utility CPS Energy have not seen eye to eye. For more than a year a buyer was sought for a portion of the increasingly expensive reactor project, but none surfaced.

When CPS hid a $4 billion cost increase from the public for half a year, the backlash led them to court to clarify terms for pulling out of the project. A settlement agreement now halts further CPS nuclear investment and shrinks their original 50-50 reactor share by 85 percent. The lesson: Nuclear reactors are simply too risky and too costly.

The good news is that effective and affordable energy solutions are already in place, growing and improving. Wind is a huge success story for Texas. We now lead the nation in wind power. Last October, a record was hit when wind accounted for 25 percent of the state's electric generation.

Texas is perfectly positioned to demonstrate similar leadership on the solar front. Solar technology is advancing and costs are plummeting. Stimulus funding will help. We have a huge opportunity to develop new clean energy industries and create local jobs -- if we do things right.

For example, West Texas wind that comes in at night can be perfectly paired with solar energy generated during the day. Natural gas and energy storage can bridge the gaps between them. Pre-approved transmission is helping new wind and solar projects move forward. Geothermal power systems can help heat and cool homes. And "smart grid" technology will lessen the need for clunky baseload plants -- the outdated cement trucks of the energy world. It’s time for zippy and flexible energy vehicles that can ramp up or down quickly to meet changing demand.

Energy efficiency is reducing electric demand. New homes and businesses are being built to use less energy and save on electric bills. New legislation has allowed for better financing of energy upgrades. Those who wisely make improvements will be free of ongoing debt should they decide to sell their home.

In the end, who will want expensive nuclear power when more affordable options are available? Industrial customers want short-term, flexible energy contracts, not long-term burdens.

Texas ratepayers are at huge financial risk if NRG continues down the nuclear path. Luminant also seeks to build two more reactors. Their reactor design for Comanche Peak, has never been built anywhere in the world. It’s time to drop expensive and risky nuclear power. We should pursue affordable energy efficiency first and then tap the free power of Texas’ sun and wind.
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Karen Hadden is the executive director of the Texas based Sustainable Energy & Economic Development (SEED) Coalition.
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Copyright (C) 2010 by the Texas Lone Star Forum. 2/10

ALABAMA FORUM

By Pat Byington

It was one of those see-it-to-believe-it moments. While visiting my sister-in-law on a typically gray day in Seattle, I noticed she had just replaced her roof, and on top of the house were several solar panels.

Solar panels in cloudy and rainy Seattle?

With a grin on her face, she took me down to her basement and showed me her electrical meter. And there it was...running backward.

She then explained, "At this moment, Seattle City Light, the local power company, is paying me. And, in fact, they want this." She then pulled out her monthly Seattle City Light newsletter. It had a story encouraging its customers to help them "build a power plant" by using less energy and turning to alternative sources so it would not have to build a new coal-powered plant.

When I got back into my car, turning on my wiper blades to sweep away the Seattle mist, I could only think: If solar power can work in this climate, it can work anywhere.

Search the state of Alabama's government website for the words "solar power" or "solar energy," and you will find just a couple of press releases over the past seven years mentioning a small solar power grant or two. As an economic development priority, it is rarely, if ever, discussed in this state.

Visit Tennessee's government website and you will find numerous news items and almost monthly gubernatorial press releases detailing how, in just a few years, the state has emerged as a premier location for the global solar power industry. In Tennessee, they have become true believers in solar power, capturing billions of new manufacturing development dollars and creating, even in this tough economy, thousands of new jobs.

For example, in 2009, the Volunteer State attracted:

• Hemlock Semiconductor, a joint venture between Dow Corning and two Japanese companies that will be locating a solar manufacturing operation in Clarksville, investing between $1.2 billion and $2.5 billion.

• Wacker Chemie, a German company that will be building in Bradley County a $1 billion polycrystalline silicon manufacturing operation -- the root material for solar panels.

• Missouri-based Confluence Solar, who will be investing $200 million to build a plant in Clinton. Bottom line: Another 200 to 400 jobs will be created.

Together, these three plants will generate conservatively more than 2,000 new manufacturing jobs. To put it into perspective for Alabamians, these economic development investments are like attracting two new auto-assembly plants in one year.

Alabama may have won the national championship in football this year; however, Tennessee topped the nation in new solar power manufacturing and jobs.

Now, this did not just magically happen in Tennessee. Through Gov. Phil Bredesen's leadership and recently secured federal stimulus funds, the state has created a comprehensive solar energy and economic development program to create jobs, improve education, and promote research and renewable-power production. This includes establishing the Volunteer Solar Institute at the University of Tennessee in Knoxville and the West Tennessee Solar Farm, a five-megawatt, 20-acre power generation facility next to a proposed industrial site.

And the jobs will keep coming once the state completes the "Tennessee solar supply chain," which will include not only multinational manufacturers, but also local jobs for distributors, sales, system design, installation and maintenance of this new source of energy. These will be permanent, home-grown jobs.

What made the emerging solar power industry in Tennessee possible was commitment from the top: the governor. Is solar power on Gov. Bob Riley's radar? Is it on the radar of any of the candidates for governor?

I guess when you see electrical meters running backward and solar panels popping up and working economically in "gray and rainy" places like Seattle, solar power is here to stay. It is obvious Tennessee has jumped on the solar power economic development bandwagon. Will Alabama follow?
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Byington is senior associate with The Wilderness Society and publisher of Bama Environmental News.
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Copyright (C) 2010 by the Alabama Forum. 3/10

KENTUCKY FORUM

By Andy McDonald

This past October more than 400 Kentuckians learned a powerful lesson: Solar energy works in Kentucky. The Kentucky Solar Tour featured more than three dozen homes and other sites that use solar energy to produce electricity, heat water or provide space heating/cooling. The Solar Tour crossed the state from Bowling Green to Berea, from Kenton County to Rockcastle County. Kentucky was one of 48 states on the solar tour that day, with 150,000 people nationwide participating. The message is simple: Solar energy has arrived. It works. It’s proven technology. It’s no longer the technology of the future; solar is the technology for today.

Wind energy presents another great opportunity for Kentucky. Conventional wisdom says Kentucky has poor wind resources. However, conventional wisdom is based on outdated wind resource maps that analyzed Kentucky’s wind resources at 50 meters above the ground. Modern wind turbines, the kinds we see in neighboring states like Indiana and Illinois, operate at 80 meters or more, where wind speeds are much higher. More recent studies measuring wind velocity at the height of modern wind turbines found enough wind to justify hundreds of millions of dollars in investment. Now, Indiana has an additional 500 megawatts of wind farms under construction.

Our in-state wind resources do not limit our ability to use wind power. With utility-scale wind farms in operation or development in every state bordering Kentucky, and with existing power lines crossing state borders, Kentucky has access to thousands of megawatts of wind potential in neighboring states. Meanwhile, we can research and develop appropriate sites within the state.

Low-impact hydro is another local renewable resource available today. Soft Energy Associates has identified 39 existing locks and dams on rivers within and bordering Kentucky that potentially could generate more than 800 megawatts. Lock 7 Hydro Partners LLC recently redeveloped a hydroelectric station near Shakertown, providing renewable energy credits for KU and LG&E’s Green Power program. This past summer, AMP Ohio broke ground on a new 84 MW hydro plant on the Ohio River and is expected to begin construction on another 72 megawatt project in 2010.

Large-scale development of renewable energy would bring many benefits. Diversifying our power supply (currently 93 percent dependent on coal) would provide protection against rising costs and risks of using coal-generated electricity. Cleaner air and water would improve public health.

Distributed generation (with thousands of micro-generators across the state) would make the grid more resilient, lower peak demand and reduce the risk of blackouts.

Economic development and job creation would be another benefit. To harness these renewable resources, someone has to manufacture the equipment and materials. Then these must be warehoused and shipped, marketed and sold. Professionals are needed for installation and service. Accountants, truckers, engineers, tradesmen, laborers and teachers are needed to bring renewable power into our homes. Students are needed to learn the skills to work in this new economic sector.

Germany leads the world in installed solar photovoltaics capacity, despite having solar resources similar to Alaska’s and weaker than Kentucky’s. A German government report found that an active solar market supports 30 jobs for every megawatt of solar photovoltaics installed. Other studies have found between 15 and 30 direct jobs created per megawatt, and another 3.5 indirect and induced jobs created for every direct job created. The result in Germany has been a renewable energy sector supporting 280,000 workers.

One thousand megawatts of solar photovoltaics could power 200,000 energy efficient homes, generating 1.2 percent of the total electrical power consumed in Kentucky. States such as North Carolina, New Jersey and Pennsylvania have directed their utilities to provide in the range of 0.2 percent to 2.1 percent of their power from solar within the next 10 to 12 years. New Jersey, with solar resources comparable to Kentucky’s, has the second-largest solar market in the U.S. as a result of such policies.

The bottom line is that solar and winds are being developed on a very large scale in other states. Those states are attracting billions of dollars in investment and creating thousands of new jobs, while furthering their goals of energy independence, public health and environmental protection. The barriers to doing this in Kentucky aren't technical, and they aren't for lack of wind, solar and hydro resources. There is no need to wait for technological breakthroughs. What we need is leadership in crafting policies – feed-in tariffs and a Renewable and Efficiency Portfolio Standard -- to open up the market and create an environment where renewables can flourish.
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McDonald is director of the Kentucky Solar Partnership and a member of the Kentucky Solar Energy Society and the Kentucky Sustainable Energy Alliance.
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Copyright (C) 2010 by the Kentucky Forum. 2/10

Thursday, October 22, 2009

Back to the Future for Energy Policy

By Ed Smeloff and Scott Denman

Too much heat and too little light are being generated right now inside the Washington, DC Beltway on the issue of global warming. Some electric utilities and allies in the coal and nuclear industries claim that only coal or nuclear reactors can meet future energy needs and combat global climate change. They say there is no other way.

However, beyond the Beltway there is clear evidence that there is another way. There is a prosperous new direction – without using more polluting coal or building more expensive, dangerous nuclear reactors.

This “third way” takes advantage of America’s vast – and easily recovered – energy efficiency ‘reserves’ and dramatically expands reliance on a wealth-creating mix of advanced and renewable energy technologies.

Quietly, but steadily, one major U.S. utility, California’s Sacramento Municipal Utility District (SMUD), has spent the last 20 years demonstrating that this “third way” powers economic growth, is easier on the family pocketbook, and slashes air pollution.

Despite its odd sounding acronym, SMUD’s success – now spanning two decades – is a model for other cities, states and indeed, for Congress. SMUD’s path to success began in 1989 when Sacramento voters closed the problem-plagued and expensive Rancho Seco nuclear reactor. SMUD's citizen leaders then embarked on an ambitious and remarkably productive, utility-led, energy efficiency and green energy initiative.

Since the vote to shutdown their troubled reactor, Sacramento’s industries, commercial businesses, residents, and nonprofit institutions, have benefited from consistently lower electric rates than California’s major utilities. Close collaboration with customers is a key to SMUD’s comprehensive energy efficiency programs and renewable energy development, ranging from detailed audits of industrial facilities to incentives for miserly refrigerators and compact light bulbs. SMUD even enabled local manufacturers to “co-generate” electricity for the community together with the steam needed for their industrial processes.

Moody’s Investor Service, Wall Street’s fiscal watchdog of U.S. utility performance, rates SMUD higher than or equal to other U.S. utilities that operate nuclear reactors. In June, Moody’s warned that: “The likelihood that Moody’s will take a more negative rating position for most issuers actively seeking to build new nuclear generation is increasing.”

On the cost side of the energy equation, a new, comprehensive academic report from Vermont Law School (VLS) on the prospective economics of new reactors underscores Moody’s wariness of embracing a new generation of reactors. The study, conducted by Dr. Mark Cooper, found that efficiency and renewable energy cost estimates average 6 cents per kilowatt-hour, while the cost of electricity from new nuclear reactors is estimated in the range of 12 to 20 cents per kilowatt-hour. VLS’s analysis concludes that, “the additional cost of building 100 new reactors, instead of pursuing a least cost efficiency-renewable strategy, would be in the range of $1.9-$4.1 trillion over the life of the reactors.”

Congress and the American people have heard this story before – promises that nuclear power is a solution to America’s energy needs. In fact, nuclear power continues to be a fiscal black hole; looming as a fool’s gold solution to the growing real threat posed by global climate change.

Many states “get it” and are now implementing SMUD-type programs. More than two dozen states have legislated or passed referenda requiring that utilities provide a specific percentage – typically ranging between 10-30 percent of their electricity supply – to be generated by sustainable energy resources by a certain date. Nearly 1,000 mayors of cities like Denver, Chicago, Portland, Austin, and Salt Lake City, representing tens of millions of Americans, have signed the Mayor’s Initiative on Climate Change, pledging to use sustainable energy resources to power their jurisdictions to prosperity.

Nevertheless, Beltway cheerleaders for the nuclear and coal industries are trying to force us, the taxpayers, to give away tens of billions more in shaky loan guarantees. This scheme shifts responsibility for failed nuclear projects onto the backs of the American families and businesses -- despite the conclusion of the Congressional Budget Office that 50 percent of such nuclear reactor loans will likely default.

The nuclear industry and their lobbyists want us to take the risk while they pocket the profits. New nuclear reactors would lead us deeper into national financial debt, and weaken our economy.

Congress must look outside the Beltway and adopt practical and profitable solutions like Sacramento did 20 years ago. It’s time to make energy efficiency, wind, geothermal, biomass, and solar power the cornerstone of America’s energy future.
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Smeloff is a developer of utility-scale solar projects for SunPower Corporation and the former president of the Sacramento Municipal Utility District. Denman is an energy policy consultant and the former executive director of the national sustainable energy advocacy coalition, the Safe Energy Communication Council.
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Copyright (C) 2009 by the American Forum. 10/09