oil_rigAmerican fossil fuel subsidies can be traced to the rise of OPEC and the 1973 oil embargo. At the time, these subsidies raised fears that the United States was too dependent on foreign oil and needed to increase domestic energy production. But policies that might have made sense when Richard Nixon was president and oil was $3 a barrel are drastically outdated today. The Environmental Law Institute conducted a comprehensive report on the cost of these subsidies – a smorgasbord of tax and royalty relief measures – during fiscal years 2002-2008 and contrasted it with government support for renewable energy during the same time period:

Subsidies to fossil fuels—a mature, developed industry that has enjoyed government support for many years—totaled approximately $72 billion over the study period, representing a direct cost to taxpayers. Subsidies for renewable fuels, a relatively young and developing industry, totaled $29 billion over the same period… Most of the largest subsidies to fossil fuels were written into the U.S. Tax Code as permanent provisions. By comparison, many subsidies for renewables are time-limited initiatives implemented through energy bills, with expiration dates that limit their usefulness to the renewables industry.

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Empowering Women for the Clean Energy Revolution

Undersecretary of Energy Kristina Johnson discusses the importance of women in energy fields

Undersecretary of Energy Kristina Johnson is emphasizing the importance of women in energy fields

On Tuesday, U.S. Department of Energy Under Secretary Kristina M. Johnson announced a new initiative at the Clean Energy Ministerial to promote the participation of women in clean energy science and engineering fields called the “Clean Energy Education and Empowerment (C3-E) Initiative.”  The C-3E Initiative will encourage young women to pursue careers in STEM (Science, Technology, Engineering and Mathematics) fields by supporting workshops and speeches from clean energy leaders to inspire students, and officials in participating countries will lead outreach events and make scholarship funds available for women pursuing advanced degrees in clean energy.

Today, women make up only 20 percent of the professional energy workforce. Many capable and talented women are not joining the effort to promote clean energy technologies due to a variety of factors.  As Under Secretary Johnson stated:

“The clean energy revolution will progress farther and faster if it draws on the brightest minds everywhere. Every young woman who is discouraged from studying science and engineering represents potential innovation lost. The world will be better off — men and women alike — if those who have succeeded in these fields share their own stories, and inspire young women to follow in their footsteps.”

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BP’s Necessity, America’s Opportunity

gas liens

In the world of technology innovation, 86 days is the blink of an eye.  Most companies are looking months or years down the road when they invest in research and development.  But when barrels of oil began pouring into the Gulf from BP’s Deepwater Horizon, the equation changed.  Suddenly, research and development wasn’t optional, it was essential.

BP is the perfect model of what the United States should not do. The American citizen has paid the price for fossil fuel dependence for decades now and we can’t wait for another disaster to strike the US.  Eighty-six days is almost nothing when you talk about technology innovation, but when you are trying to plug an oil spill, rescue workers from a collapsed coal mine, or end an OPEC embargo, 86 days is an eternity.  We need to jump-start the clean energy R&D process now.  We need to invest like we mean it.

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The Americans for Energy Leadership summer policy fellows, who we recently highlighted here, have three new posts at our fellows blog about energy innovation and competitiveness. Excerpts of these articles are included below, and full articles can be accessed at our AEL Fellows Blog.

Yingli Solar at the World Cup by Clifton Yin

“China did not participate in this year’s World Cup and has actually qualified for the tournament only once, in 2002. Nevertheless, 2010 saw a solar energy company – Yingli Green Energy Holding Company – become the first firm from that country to secure global marketing rights to the sporting event.”

Leading the Clean Energy Industry Requires Public Investmentby Yan Zhu

“While carbon pricing has polarized the U.S. energy and climate policy debate, the governments of some Asian nations are investing heavily to develop clean technology manufacturing and form innovation clusters. As a result the United States lags far behind its economic competitors in clean technology manufacturing.”

Understanding the Energy Innovation Lifecycle by Jeremy Cohn

“Understanding the process of energy innovation and investment is an important next step towards taking the necessary actions to ensure energy independence and security.  By recognizing the innovation gap between what is best for a firm versus what is best for all firms we can ensure that American-made products and technologies dominate the marketplace in the years to come.”

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The National Journal just published our response to Tuesday’s White House energy and climate summit, following contributions by the CEO of the American Wind Energy Association, CEO of the George C. Marshall Institute, and a Director of Policy at Brookings Institution.

Third Way For Energy And Climate Bill

NationalJournal.com | June 30, 2010

This is a guest post by Teryn Norris, director and founder of Americans for Energy Leadership and senior advisor at the Breakthrough Institute.

Tuesday’s White House energy summit drove yet one more nail into the economy-wide cap and trade coffin, with Senator Kerry declaring “we’re prepared to compromise further.” The compromise gaining momentum is a scaled-back, utility-only approach. But if President Obama and Senate leaders want to deliver a real victory on energy and climate policy reform, they should move quickly to advance a third way approach based on major federal investment in clean energy technology.

As Mark Muro of Brookings Institution wrote here, “the latest efforts to gain political consensus in the Senate are continuing to neglect a crucial aspect of cleaning up the country’s energy system—technology innovation.” It was President Obama himself who highlighted an innovation-based approach in his Oval Office speech, noting that “Others wonder why the energy industry only spends a fraction of what the high-tech industry does on research and development – and want to rapidly boost our investments in such research and development.”

Regardless of an economic-wide or utility-only cap, robust federal investment in clean energy technology is a national imperative. In addition to tackling our fossil fuel addiction, it can rapidly drive down the price of low-carbon energy technologies, build new export-oriented and manufacturing-intensive industries, and accelerate the transition to energy independence. The federal government currently invests $30 billion per year in health R&D and $80 billion per year in military R&D. Energy currently receives $3 to $5 billion – less than our national expenditure on potato chips.

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A Bipartisan Strategy for Energy Leadership

By Teryn Norris & Clifton Yin
Published by The Huffington Post

When President Obama and key Senate leaders meet today to reach a compromise on energy and climate legislation, they should strongly consider increasing federal investment in clean energy technology to at least $15 billion annually. This is a comprehensive third way strategy to improve U.S. energy independence, economic competitiveness, and climate security, and it deserves bipartisan support.

We are a Democrat and Republican. One of us campaigned for Barack Obama in 2008, the other as a delegate for John McCain. One of us worked on energy and climate policy for the progressive Breakthrough Institute, while the other worked on similar issues for the conservative American Enterprise Institute. We disagree on a wide range of issues, and we hold different economic philosophies.

Despite our differences, we are strongly united behind a serious federal agenda for clean energy innovation. Regardless of the future of cap and trade, robust federal investment in clean energy technology can effectively tackle both energy and climate policy reform. In addition to reducing our oil addiction, it can help build new export-oriented and manufacturing-intensive industries, seize global market share, drive down the price of clean energy technologies, and accelerate the transition to a cleaner, low-carbon economy.

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Obama Signals Need for New Energy Agenda

[Update: Andrew Revkin cites this article at New York Times Dot Earth]

By Teryn Norris
Published by Huffington Post

The biggest news from President Obama’s  Oval Office address is that cap and trade legislation is probably dead for the foreseeable future, and the administration is seeking new ideas.

Instead of using last night’s prime-time opportunity to push cap and trade in the form of the Kerry-Lieberman American Power Act — as many climate advocates saw as their last hope for “comprehensive” climate reform — President Obama pressed the reset button on energy and climate policy, saying he was “happy to look at other ideas and approaches from either party, as long they seriously tackle our addiction to fossil fuels.” He made no mention of setting a price on carbon or establishing an emissions cap and trade system.

As Andrew Revkin observed at New York Times Dot Earth, the president “signaled that he is leaving open a variety of paths on energy and climate policy and no longer hewing tightly to the idea of a cap and trade system for restricting heat-trapping emissions — which he never wavered from during his campaign.” David Roberts of Grist, one of the few remaining hopefuls for cap and trade reform, wrote “Final thought: Obama didn’t drive the carbon cap tonight, so there won’t be a carbon cap in the energy bill this year.”

Several key Democratic Senators have reached a similar conclusion. “I doubt very much whether those 60 votes exist right now,” said Senator Byron Dorgan (D-ND) yesterday on C-SPAN, referring to the 60 votes necessary for cap and trade in the Senate. “The climate bill isn’t going to stop the oil leak,” said Senator Dianne Feinstein (D-CA), asserting that “The first thing you have to do is stop the oil leak.” Echoing these sentiments, Senator Jay Rockefeller (D-WV) stated, “There’s not a great call for it in the Democratic caucus,” and Senator Ben Nelson (D-NE) called climate legislation “unrelated” to the Gulf spill.

If cap and trade is dead, then what’s next? The only serious alternative that could attract bipartisan support is a comprehensive national strategy for clean energy competitiveness and innovation — including substantial new federal investment in research, development, demonstration, deployment, and manufacturing — to accelerate America’s transition away from fossil fuels, build a strong and competitive clean energy industry, and rapidly drive down the price of low-carbon power and transportation technologies.  These investments could potentially be included as part of a comprehensive energy package, building upon the proposed American Clean Energy Leadership Act.

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The Collapse of Competitiveness Policy?

The Collapse of Competitiveness Policy?
By Teryn Norris
Published by The Huffington Post

Last week, the flagship federal legislation for U.S. competitiveness containing broad support for science, technology, and advanced education – called the America COMPETES Reauthorization Act of 2010 – collapsed in Congress after it was blocked from passage through the House, despite already being significantly weakened.

Enter the age of American polarization, where bread-and-butter competitiveness and innovation policy is subject to hyper-partisan politics and obstructionism, even in the face of rapidly rising global competition. America COMPETES, which was originally passed with strong bipartisan support under President Bush, may be yet one more casualty of today’s extreme political polarization, which according to one major study is at the highest level in over a century.

But beyond the issue of partisanship, this is an alarming wake-up call to how anti-government sentiment and neoliberal economic ideology – which seeks to discredit the role of federal investment in promoting technology innovation and growth – could combine forces and seriously damage our national innovation system in the years ahead.

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Don’t Wait Around for Cap-and-Trade

With healthcare reform in the rearview mirror, media speculation has shifted to the Senate’s next order of business and the climate bill, originally set to be unveiled on Earth Day but now indefinitely postponed.  But unfortunately, the introduction of this bill does not guarantee energy and climate legislation will pass, or even be a main focus in the months leading up to the midterm election.  Even one of the bill’s lead authors, Lindsay Graham, admits that immigration reform could overwhelm any chance for the climate bill to go through.

An article in BusinessWeek today went even further documenting the uphill road for this legislation in the toxic political atmosphere of tea-party protests, opposition to government, and skepticism on climate science.  So powerful has the opposition become that supporters have moved away from even using the term “cap-and-trade,” preferring instead to describe it as “carbon pricing.”  With even authors of the legislation and prominent supporters so openly cautious and pessimistic, it is no wonder most Congresspeople view this legislation as political poison to be left untouched until after the midterm election.

And if climate legislation waits until the midterm election, it will not pass.  Not after Republicans gain several seats and the road to 60 votes becomes tougher.  Some, including the Wall Street Journal, have suggested Congress might pass the bill in a “lame-duck” session after the election but before the new Congress takes over.  But the possibility of this risky maneuver is slight and the probability that the resulting bill would amount to anything significant almost completely negligible.

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Jesse Jenkins and Devon Swezey, two of my colleagues at the Breakthrough Institute, have a new piece up called “A Clean Energy Competitiveness Strategy for America” as well as a video of their recent presentation at the World Energy Technologies Summit. They write:

“In the face of aggressive foreign competition in the clean energy industry, the United States urgently needs a comprehensive competitiveness strategy of its own to accelerate the development of a domestic clean energy industry and take advantage of emerging export opportunities. Such a strategy should prioritize large and sustained public investments in clean energy R&D, advanced clean energy manufacturing, innovative deployment, and clean energy education.”

Jenkins and Swezey build upon the report we co-authored last year called “Rising Tigers, Sleeping Giant,” the first comprehensive report to benchmark national clean energy competitiveness in Asia and the USA.  Read their full piece here, and check out the video below.

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