September 2008 Newsletter

Dear Friends of the Institute,

I'm pleased to announce that this week the Institute for 21st Century Energy released a Blueprint for Securing America's Energy Future at an event in Fort Collins, CO.   With more than 75 policy recommendations for the next President and Congress, the Blueprint builds on our Open Letter published in July by providing in-depth descriptions of the issues and a specific course of action.  To read it, please go to www.energyxxi.org.

Addressing our energy challenges in a meaningful way requires the next President and Congress to create the right fiscal and policy framework for increasing our energy security.  America's private sector, in partnership with U.S. energy research institutions and government, is best positioned to lead the country down an energy path that grows the economy, sustains U.S. competiveness, and keeps our environment clean.  Some of our energy solutions will take decades to develop and deploy, but - as our Blueprint states - we must start by accelerating technologies, including nuclear fuel recycling, carbon capture and sequestration, and next generation biofuels for cars and trucks.

Expediting clean energy technologies and expanding energy supplies is what our Blueprint calls for - and what Americans want.  Unfortunately, proposals recently offered in Congress do little to put us on a path to a secure energy future.

Right now, federal government leaders and the presidential candidates are rightly focused on solving the nation's financial turmoil.  The ultimate implications of Wall Street's troubles are unknown, but the energy sector will undoubtedly be affected.

The oil market is already experiencing increased volatility as investors wait for a breakthrough in the bipartisan U.S. government talks on a plan to shore up the financial sector. Overall energy demand could drop if the economy continues to soften.  We've already seen Americans reduce the number of miles they drive. 

An extended credit crunch could mean a reduction in financing available for energy technology entrepreneurs and key capital projects, including the construction of electricity transmission lines and generation facilities.  Budgets for R&D initiatives may also be reduced.

We hope the Democratic and Republican leaders will approve a well-thought out plan for the financial sector, and then turn that bipartisan spirit toward seizing the opportunity to address our energy challenges.

Inaction by Congress on energy has produced two results - one good and one potentially bad, in our view.  On the positive side, the moratorium on oil and gas exploration and production on the Outer Continental Shelf expired on September 30.  Lawmakers should not attempt to resurrect these restrictions in the next Congress. 

A potentially bad omen is that, as this newsletter goes to print, Congress has not completed action to renew tax credits for renewable and other clean energy sources.  The Senate has passed the necessary extensions as part of the financial rescue legislation, which the House is scheduled to consider imminently.  These credits are due to expire on December 31.  Giving certainty to investors in renewable energy projects is essential for expanding the amount of electricity fueled by wind, solar, geothermal, and biomass.  Our Blueprint recommends extending all of the renewable energy tax credits for eight years and then phasing them out. 

The pending legislation provides varying lengths of extension for the eligible technologies and requires no phaseout.  Moreover, this legislation also raises taxes on the oil and natural gas industry, which will invariably mean higher prices for consumers.  We call on the House to pass clean energy tax credits.  We will continue to work with Congress to extend these important incentives for a longer and more predictable timeframe without increasing taxes on other vital energy industries.

Our country is facing turbulent times, especially in the financial sector, but also with regard to our energy future.  As we all await the election results this fall to find out who will lead us in the White House and on Capitol Hill, we must remain optimistic.  Working together, we can transform our energy problem into an energy opportunity - an opportunity to unleash the power of free markets to develop new supplies, invest and apply new technologies, and create good new jobs for Americans.

The next Administration can also send a powerful signal to the global community that the United States intends to be part of the energy solution.  We can do this by putting our "energy house" in order, and we can demonstrate needed global leadership by our example.  This is something we can, and must, do.

Sincerely, James L. Jones, USMC (Ret.)
President and CEO
Institute for 21st Century Energy 

In Fort Collins, CO, on September 30, Gen. Jones on unveiled more than 75 energy policy recommendations for the next president and Congress with the Institute's Blueprint for Securing America's Energy Future. See article. While in Fort Collins, he also toured Colorado State University's Engines and Energy Conversion Laboratory.

On September 29, Vice President for Climate and Technology Stephen Eule discussed the Institute's energy policy framework at the 2nd US-EU Business Roundtable on Energy & Technology: Powering the Green Revolution in Madrid, Spain.

Vice President Frederick C. Smith on September 29 addressed 300 members of the Rotary Club of Columbia, SC, about the Institute's recommendations for a bold, comprehensive energy policy. See article.

Harbert on September 24 participated in a panel discussion at The Washington Post Conference on Climate Change.

Harbert on September 17 delivered keynote remarks in Fairbanks, AK, to more than 100 memers of the Alaska Chamber of Commerce on how to put America on a more competitive and secure energy footing. See article. She also toured oil and gas facilities in the region.

Vice President Frederick C. Smith on September 17 delivered keynote remarks at the Ohio Conference on Freight in Toledo, Ohio. On September 18, Gen. Jones delivered the keynote address at the Global Business Forum in Alberta, Canada, about strengthening North American energy security through increased trade of energy goods, services, and technology with Canada and Mexico.

Executive Vice President Karen Harbert on September 10 addressed Kentucky's Paducah Area Chamber of Commerce about the Institute's programs and activities.
  

Fuel for Thought

1. U.S. net greenhouse gas emissions rose 17.5% between 1990 and 2000.
2. From 2000 to 2006, U.S. net greenhouse gas emissions fell 3%, according to the U.S. Environmental Protection Agency.
3. Over the same 2000 to 2006 period, net greenhouse gas emissions from the European Union rose.
4. It is estimated CO₂ emissions from China now exceed those from the United States.
5. Some projections suggest that growth in CO₂ emissions from China, India, and Southeast Asia alone between 2000 and 2050 will exceed total CO₂ emissions from the 30 Organization for Economic Cooperation and Development countries in 2050.