Institute for 21st Century Energy News Feed

December 2008 Newsletter

12/31/2008

DECEMBER 2008 NEWSLETTER

Earlier this month, President-elect Obama named the Institute for 21st Century Energy's President and CEO General James L. Jones, USMC (Ret.) to serve as his National Security Advisor. While General Jones' extraordinary leadership will be missed, the Chamber is confident that he will be a strong advocate for energy security in his new position. Karen Harbert, currently the Institute's Executive Vice President, will lead the Institute's day-to-day operations. We at the Institute wish General Jones well as he moves across the street next month.

LUMPS OF COAL AND MORE IN YOUR STOCKING THIS SEASON

Many Americans were dreaming of a white Christmas, but the rest of the year they want things to be 'green'. Read what the Institute thinks should be on our nation's energy wish list this year.

INSIDE SCOOP FROM POZNAN CLIMATE NEGOTIATIONS

The Institute for 21st Century Energy's Stephen Eule last week traveled to Poznan, Poland for the UN climate change talks where he blogged about the scene. Over 9,000 participants, including hundreds from business and governments, were on hand for these discussions. The meeting marked the half-way point between the gathering in Bali, Indonesia late last year, where this round of negotiations was launched, and the meeting next December in Copenhagen, Denmark, where a new agreement could be reached.

Eule and colleagues from the Chamber's Global Intellectual Property Center and General Electric on Monday, December 8th hosted a business event in Poznan where dozens of government and business leaders had a productive discussion on advancing technology innovation and deployment globally with appropriate IP protections to tackle global climate change.

The difference in atmosphere between Bali and Poznan was palpable--and not just the weather. In Poznan, the world financial crisis, a transition to a new U.S. administration, squabbling in the European Union over a new package of greenhouse gas emissions rules, and rising concern about energy security worldwide complicated negotiations that would be hard enough even in the best of times.

Looking ahead, 2009 promises to be a busy year, with as many as four negotiating sessions before Copenhagen. Most of the focus will be in the four areas identified at Bali--mitigation, technology, adaptation, and finance. The burden of implementing whatever is agreed to in these areas largely will fall to business and industry, especially in the technology and finance areas.

There was general agreement in Poznan that these four elements will be central to a global goal for emissions reductions, discussions that certainly promise to be among the most contentious. Resolving the global goal will likely be held until at least Copenhagen. We believe that any global goal must be realistic and achievable, otherwise it will have little credibility.

Most of the key decisions have yet to be made, and the business community must remain actively involved. The Chamber's Energy Institute will be looking to expand its participation and work with other international business groups to ensure that whatever emerges from Copenhagen is good for business, good for energy security, and good for the environment. Stay tuned for updates throughout 2009.

GLOBAL PERSPECTIVES ON ENERGY IN 2009

As we approach the end of the year, it is always useful to take stock of where we've been--and also where we might be going. Last month the International Energy Agency (IEA) issued its World Energy Outlook 2008 (WEO 2008), which outlines IEA's projections for global energy demand through 2030. While the Outlook takes the global economic slowdown and higher energy prices into account, its projections are sobering nonetheless.

World demand for oil is expected to increase by 25% with 100% of this increase coming from non-OECD countries.
World energy demand will expand by 45% in 2030, with coal accounting for more than a third of the overall rise.
Non-hydro renewables (ie. wind, solar, geothermal, etc.) will be the fastest growing source of electricity increasing to 4% of total world power generation from 1% today.
Global energy investment of $26 trillion, or more than $1 trillion/year, is needed, but the credit squeeze could delay spending, potentially setting up a supply-crunch once the economy recovers.
Global energy-related CO2 emissions are projected to rise by 45% with 97% of the projected increase expected to come from non-OECD countries.

The largest driver of projected increases in demand for almost all energy sources is the significant growth expected from non-OECD (Organization for Economic Cooperation and Development) countries, specifically China and India. Those two countries are projected to account for over half of the increase in world energy demand. Moreover, all of the expected growth in demand for oil is projected to come from non-OECD countries, with 80% coming from China, India, and the Middle East alone. World demand for coal is expected to increase causing its total share of world energy demand to rise from 26% to 29%. The electricity sectors in China and India alone will account for 85% of that growth. Additionally, 97% of the projected increase in energy-related CO2 emissions is expected to come from non-OECD countries – three-quarters from China, India, and the Middle East.

It's often difficult to understand how events occurring a world away in developing countries affect Americans. But energy resources are global commodities, and increases in demand in one part of the world create upward pressure on global energy prices. If we do not aggressively act to fully develop our domestic resources, we run the risk of losing access to our foreign competitors for many of the resources we depend on now. This is another stark reminder that our nation must look at these future projections and adopt a comprehensive, long-term energy policy that ensures we have reliable access to clean, affordable, and diverse sources of energy. The Institute outlined a path to accomplish this for President-elect Obama and the new Congress last month in our Transition Plan for Securing America's Energy Future. Our work in the coming year will be to ensure this plan is implemented. With your continued support and active involvement, we can do this. To view the Institute's nearly 90 energy policy recommendations, visit www.energyxxi.org.

RECENT ACTIVITIES AT THE INSTITUTE

Upcoming Activities

1/14/09 -- Karen Harbert will deliver the dinner keynote address at the Independent Petroleum Association of America's 2009 Private Capital Conference (Houston, TX)
1/14/09 -- Steve Eule will deliver keynote remarks at the American Forest and Paper Association's 2009 Deans' Tour (Amelia Island, FL)
2/12/09 -- Karen Harbert will deliver the keynote address at the Bakersfield Chamber of Commerce's Energy and Clean Air Expo (Bakersfield, CA)

December

12/17/08 -- U.S. Chamber Commits to Work with President-elect's Interior and Agriculture Nominees
12/15/08 -- U.S. Chamber Pledges to Work with President-elect Obama's Energy and Environment Team
12/8/08 -- General Jones delivered remarks about energy security at the U.S. Chamber of Commerce's Association 100 meeting (Miami, FL)
12/8/08 - 12/12/08 -- Steve Eule represented the Institute for 21st Century Energy at the UN Framework Convention on Climate Change Conference of the Parties where he held an industry event on technology innovation and intellectual property protections. Read his blogpost. (Poznan, Poland)
12/9/08 -- Christopher Guith highlighted state energy trends and the importance of a comprehensive, long-term energy strategy at the Pennsylvania Chamber of Commerce's Energy Summit II. Read press coverage. (Camp Hill, PA)
12/2/08 -- Karen Harbert delivered remarks on energy challenges and opportunities facing the President-elect and his administration as well as the 111th Congress at the Economist Group's Energy Leaders Roundtable (Houston, TX)
12/2/08 -- Christopher Guith participated in a panel discussion on the role of alternative and renewable fuels at the International Summit on Agriculture and Food Transportation (Washington, DC)
12/1/08 -- Karen Harbert was a guest on E & E TV's OnPoint and spoke about the Energy Institute's Transition Plan and how it addresses key policy issues. Watch the interview. (Washington, DC)

U.S. Chamber Commits to Work with President-elect’s Interior & Agriculture Nominees

12/17/2008

FOR IMMEDIATE RELEASE Contact: J.P. Fielder (202) 463-5682

Urges Use of America’s Abundant Natural Resources to Increase Energy Security

WASHINGTON, D.C.—U.S. Chamber of Commerce President and CEO Thomas J. Donohue today issued the following statement on President-elect Barack Obama’s nominations of Ken Salazar to serve as Secretary of the Department of the Interior and Tom Vilsack to serve as Secretary of the Department of Agriculture:

“These are two important posts in the next administration and we look forward to working with this team to transform our energy challenges into opportunities.

“America has abundant natural resources. Together with the private sector, these nominees have a tremendous opportunity to harness the great potential of America’s renewable, alternative, and traditional energy resources to reduce our dependence on imported energy.

“During the current economic downturn, the U.S. Chamber is hopeful that the President-elect’s team shares our commitment to producing affordable, reliable, and diverse supplies of energy and ensuring a vibrant energy infrastructure. With a balanced, long-term energy strategy and a close partnership with U.S. businesses, this administration has the potential to drive our economic recovery by generating new jobs, increasing our exports, and promoting technology.”

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

U.S. Chamber Pledges to Work with President-Elect Obama’s Energy and Environment Team

12/15/2008

FOR IMMEDIATE RELEASE Contact: J.P. Fielder (202) 463-5682

Warns of Economic and National Security Implications of Draconian, Narrow Approach to Energy and Climate Challenges

WASHINGTON, DC—U.S. Chamber President and CEO Thomas J. Donohue today pledged to work with President-elect Barack Obama’s energy and environment team and called on these leaders to support pro-growth energy and environmental policies.

“Energy security and environmental stewardship go hand in hand,” said Donohue. “The incoming administration has a tremendous opportunity to work with the business community to transform energy challenges into opportunities to meet America’s energy needs, create American jobs, and spur investment in new technologies.”

The U.S. Chamber warned against a regulatory approach to climate change that uses statutes not designed to reduce greenhouse gas emissions and stifle investment. The Chamber maintains that climate change must be addressed as part of an overall energy strategy that balances many complex issues facing America, including the need for economic stimulation and national security.

“We are hopeful that his team will make securing America’s energy future a top priority by recognizing the role of private sector investment and innovation and ensuring the development of a range of affordable and reliable energy options to keep the U.S. competitive,” said Donohue.

The U.S. Chamber is the world’s largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

ChamberPost: Poznan - Preaching to the Choir

12/10/2008

By Brad Huther
Senior Advisor

Global Intellectual Property Center

Amid the flurry of over 11,000 delegates attending the second week of UNFCCC Conference proceedings, I am encouraged by the prospect of new partnerships in the Chamber's mission to advance the development and deployment of technologies to tackle climate issues.

I received positive feedback from an important member of Congress regarding the value of intellectual property rights and whole-heartedly stated "we were preaching to the choir," when we presented the Chamber's perspective on IPR issues.

In addition, Steve Eule, Natalie McIntyre, and I represented U.S. businesses' viewpoints yesterday, during the World Business Council for Sustainable Development's special Business Day event, with a limited group of nearly two hundred attendees on behalf of government, industry, and non-governmental organizations around the globe. The subjects of discussion were centered on the creation and deployment of technology, venues for financing technology, the examination of addressing adaptation and mitigation challenges.

At the business meeting, Yvo de Boer, Executive Director and Secretary of the UNFCCC, reinforced the need for more research and development, technology diffusion, and he highlighted ambitions within UNFCCC that sounded surprisingly similar to some of the Chamber's GIPC 2009 priorities. A note of caution; there is no doubt that many member states expect companies around the world to be a major source of financing for post-Copenhagen Clean Development Mechanism (CDM) projects.

I heard again this morning from a number of delegates about the valuable information on the private sector's role in creating cutting-edge, green technology they received at our side event on Monday night. Kudos to Carl Horton, Vice President and Chief Intellectual Property Counsel for General Electric (GE) for his compelling presentation of GE's Ecomagination technology solutions to address climate change issues!

It's clear to those of us in Poznan that the Chamber and its new coalition of green technology companies will need to continue its work in this area next year and convey a diversified industry perspective of practical technology solutions for global climate change problems.

Tomorrow morning in Warsaw, the Chamber team will brief Poland's American Chamber of Commerce and members of its Intellectual Property Committee on the Chamber's international programs and specifically multilateral engagement and progress at this week's UNFCCC conference.

Bloomberg: Carol Browner Set to Be Obama’s Energy Coordinator

12/10/2008

By Kim Chipman and Daniel Whitten

(Bloomberg) -- President-elect Barack Obama is in the final stages of putting together his energy team, with former Environmental Protection Agency chief Carol Browner as his likely pick for a newly created position overseeing energy, climate and environmental issues, Democratic aides said.

Nancy Sutley, an energy official for the city of Los Angeles, is Obama’s choice to head his White House Council on Environmental Quality, according to the aides.

Browner, 52, would be charged with coordinating environment and energy initiatives across the administration, the aides said.

Browner, who is part of Obama’s transition advisory board, told reporters on Dec. 1 the new position wouldn’t change the roles or duties of the secretaries of Energy and Interior or the EPA administrator.

“Every department retains all of its statutory responsibilities,” Browner said. “These are offices and councils that bring together all of the authorities that rest in individual departments creating more opportunity to do the kind of things that the president wants to do.”

Browner, EPA administrator under former President Bill Clinton from 1993 to 2001, didn’t immediately respond to a request for comment today.

Environmental Background

Sutley currently is deputy mayor for energy and the environment in Los Angeles and served previously in similar positions in the state’s government. As head of the Council on Environmental Quality, she would oversee the White House panel that advises the president on national and international environmental issues. Officials in Sutley’s office also didn’t immediately respond to a request for comment.

Obama is expected to name his main energy and environmental candidates this week or next, said the aides, who spoke on condition of anonymity ahead of the formal announcement.

Contenders to head the Department of Energy include Steven Chu, director of the Lawrence Berkeley National Laboratory, former Google Inc. official Dan Reicher and Duke Energy Corp. Chairman Jim Rogers, aides said.

Obama has said a broad effort across all branches of government, including state and local, is needed for the U.S. to transform its energy economy. He has said doing so is a crucial part of reviving the economy, bolstering national security and curbing the threat of global climate change.

Pitfalls and Benefits

Jack Gerard, president of the American Petroleum Institute, said it remains to be seen whether having a coordinator working across Cabinet departments benefits U.S. policy making.

“If it becomes one more layer in the overall bureaucracy to where it delays decision-making, then it’s a negative,” Gerard said. “If they focus it like a laser, give it authority to span the organization, sometimes it can move a policy more quickly.”

Karen Harbert, executive vice president for the U.S. Chamber of Commerce’s Institute for 21st Century Energy, said the government needs to synchronize its efforts.

“You need an entity that has the ability to lead across the entire energy policy landscape and coordinate a more comprehensive approach,” she said.

Harrisburg Patriot-News: Congress needs a long-term energy plan

12/9/2008

By Jerry L. Gleason, The Patriot-News
December 9, 2008

Congress needs to address energy as an economic issue rather than as a political one, says Christopher Guith, vice president for policy at the U.S. Chamber of Commerce's Institute for 21st Century Energy.

"There are huge public expectations for president-elect Barack Obama, but Congress and the incoming administration don't always agree on energy policy," Guith said.

Guith was one of the speakers today at Pennsylvania Energy Summit II, a Pennsylvania Chamber of Business and Industry energy conference at the Radisson Penn Harris Hotel in East Pennsboro Twp.

Guith heads the policy team at the Institute for 21st Century Energy, which was formed with the goal of looking ahead 20 to 25 years at the nation's energy needs and resources.

ChamberPost: Intellectual Property and Clean Tech

12/8/2008

As reported on ClimateWire:

A fight over intellectual property rights is shaping up to become one of the thorniest issues in climate change as poor nations fight for greater access to low-carbon technologies...The debate promises to be a fierce one, as battles over ownership and rights always are. Those lobbying to keep patent protections strong say unraveling the system will only dry up innovation. Moreover, they note that developing pills is, from an intellectual property point of view, far simpler than inventing a new type of power plant or water purification system -- the creation of which might include dozens or hundreds of patents. Finally, they warn, weakening protections could cause key U.S. support for a climate treaty to shrivel.

"A lot of this stems from the idea of historical responsibility, and we understand that," said Stephen Eule, vice president for climate and technology at the U.S. Chamber of Commerce's Institute for 21st Century Energy. But, he said, "Politically, in the United States, it's going to be very difficult. I can't imagine any Senate, Democrat or Republican, agreeing to a treaty that will be a dagger in the heart of intellectual property rights. Once you start tinkering with those, you're on really shaky ground, and you really don't want to kill the goose that's laying the golden egg."
...
Eule, however, said industry isn't taking any chances and will be fighting any attempts to fiddle with intellectual property laws. "This is something we're very concerned about and something we're keeping a close eye on," he said. "This could be a deal-killer."

ChamberPost: Parley in Poznan

12/8/2008

by Steve Eule
Vice President for Climate and Technology
U.S. Chamber of Commerce's Institute for 21st Century Energy

As you read this, climate negotiators at the U.N. Framework Convention on Climate Change meeting in Poznan, Poland—better known as COP-14—will be finishing up the first of two weeks of talks on a new international approach to address climate change. This meeting marks the half-way point between COP-13 in Bali, Indonesia, where these rounds of negotiations were launched earlier this year, and COP-15 next December in Copenhagen, Denmark, where they are scheduled to conclude (more in hope than in expectation, it must be said).

Those looking for a breakthrough in Poznan will be sorely disappointed. The world financial crisis, a transition to a new administration here in the U.S., squabbling in the European Union over a new package of emissions rules, and rising concern about energy security worldwide are complicating negotiations that would be daunting even in the best of times.

But that doesn’t mean nothing of importance will be going on. In particular, developing countries will be making a big push to weaken intellectual property protections—for example, through compulsory licensing or creating a fund to buy down intellectual property—in the talks on technology transfer.

The U.S. Chamber will have a strong presence at COP-14, and technology and intellectual property issues will the subject of an event hosted by the U.S. Chamber’s Institute for 21st Century Energy and its Global Intellectual Property Center on the evening of Monday, December 8th.

I will be joined by GIPC’s Senior Advisor Brad Huther and General Electric’s Carl Horton, Vice President and Chief Intellectual Property Counsel, and together we will lay out the technology challenges and opportunities for clean energy innovation in the private sector.

While in Poland we’ll be keeping a close eye on the negotiations and making the case that, in Lincoln’s words, patents "add the fuel of interest to the fire of genius, in the discovery and production of new and useful things."

Stay tuned for more posts next week as we bring you the latest news from Poznan!

ChamberPost: Parley in Poznan Redux

12/8/2008

By Stephen Eule

Vice President for Climate and Technology

U.S. Chamber of Commerce's Institute for 21st Century Energy

Dank weather and a day off from negotiations didn’t dampen the turnout at the U.S. Chamber of Commerce event on technology today. Before a full house, experts from the U.S. Chamber's Institute for 21st Century Energy and Global Intellectual Property Center as well as General Electric led a discussion on the importance of technology innovation in tackling global climate change.

My talk centered on the scale and scope of the technology challenge. Most people have little appreciation of the degree to which world energy systems would have to be transformed to reduce carbon dioxide emissions significantly. For example, to achieve a 50 percent reduction in global emissions by 2050, the International Energy Agency (IEA) has calculated that, in the electricity sector, the world would have to build 32 1-gigawatt nuclear power plants every year for 40 years, an annual rate much faster than that achieved during the height of nuclear power plant construction in the 1960s and 1970s.

For onshore wind power, the IEA estimates that 14,000 4-megawatt turbines would have to be built a year, and for coal-fired power plants with carbon capture and storage, it estimates 35 500-megawatt plants per year. That’s a lot of technology in a short amount of time, and much of it will have to be built in developing countries that haven’t championed laws that respect intellectual property.

With that as a scene-setter, our Chamber team also received positive reinforcement from delegates and negotiators on the fact that IP is an effective enabler of technology transfer.

Brad Huther described the establishment of the U.S. Chamber’s GIPC and spoke of the value that strong intellectual property systems have in encouraging innovation, investment, job growth, economic activity, and technology commerce and transfer to developing countries. He highlighted the new "Green Technology Coalition" that GIPC is developing, which will focus on promoting clean energy technologies to address climate change.

General Electric's Carl Horton provided the perspective of a global technology company. He noted how continuous innovation and breakthroughs in clean technology is one of the best, most cost-effective long-term solutions to combat climate change. Because most of the innovation occurs in the private sector, Horton highlighted that industry must be seen as a key partner in pursuing climate change objectives. Mechanisms that encourage private sector investment in advanced technologies--such as intellectual property protection, tax incentives, and tariff reduction, to name a few--should be created or preserved.

See Friday's post here, and stay tuned for regular updates on the U.S. Chamber’s participation in Poznan.

U.S. Chamber Highlights Role of Technology in Tackling Climate Change

12/8/2008

FOR IMMEDIATE RELEASE Contact: Marty Coyne (202) 463-5558

Intellectual property-based innovation must be part of the solution, Chamber says

POZNAN, POLAND—The U.S. Chamber of Commerce today urged government negotiators at the United Nations Framework Convention on Climate Change (UNFCCC) Conference to pursue a realistic international climate change agreement that includes global participation and strong intellectual property rights to spur the use of clean energy technologies worldwide.

Before more than 200 conference participants, experts from the U.S. Chamber’s Institute for 21st Century Energy, the Global Intellectual Property Center, and General Electric led a discussion on the importance of technology innovation in tackling global climate change.

“New energy technologies can help fuel the economic growth needed to lift people out of poverty and make us responsible environmental stewards,” said Stephen Eule, vice president for Climate and Technology of the U.S. Chamber’s Institute for 21st Century Energy. “Free and transparent markets, the rule of law, respect for intellectual property rights, and free trade are the best ways to promote clean energy innovation and robust investment from the private sector.”

“An effective and viable climate change treaty starts with negotiators enshrining clean energy technology and strong intellectual property rights as part of the solution, rather than a problem or a bargaining chip,” she added.

From December 1-12, Poznan, Poland is hosting the fourteenth session of the Conference of the Parties to the UNFCCC. Through this framework, more than 180 nations are crafting an international climate change treaty. UNFCCC negotiations are continuing this week with an eye on concluding all negotiations in Copenhagen, Denmark in December 2009.

The Chamber’s Global Intellectual Property Center is working around the world to champion IP as vital to creating jobs, saving lives, advancing global economic growth and generating breakthrough solutions to global challenges.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com # # # www.chamberpost.com

ClimateWire: Clash in Poznan is Likely Over Rights to Clean Technology

12/4/2008

By Lisa Friedman, ClimateWire

A fight over intellectual property rights is shaping up to become one of the thorniest issues in climate change as poor nations fight for greater access to low-carbon technologies.

Developing-country negotiators and their advocates will argue at U.N. climate change talks in Poland this week and next that their ability to secure clean energy technology will be critical to reducing global greenhouse gas emissions.

But that, they say, may mean lowering or even eliminating hefty licensing fees. Noting that they did not cause climate change and should not be required to spend vast sums to help reduce greenhouse gas emissions, some developing nations even are calling for a system of compulsory licensing, similar to what is done for AIDS drugs and other medicines.

"Narrow interests must give way to the general public good, which in turn must incorporate the public interest internationally," the Third World Network, a coalition of nonprofits in the developing world, said in a briefing paper submitted this week to the U.N. Framework Convention on Climate Change.

The debate promises to be a fierce one, as battles over ownership and rights always are. Those lobbying to keep patent protections strong say unraveling the system will only dry up innovation. Moreover, they note that developing pills is, from an intellectual property point of view, far simpler than inventing a new type of power plant or water purification system -- the creation of which might include dozens or hundreds of patents.

Finally, they warn, weakening protections could cause key U.S. support for a climate treaty to shrivel.

"A lot of this stems from the idea of historical responsibility, and we understand that," said Stephen Eule, vice president for climate and technology at the U.S. Chamber of Commerce's Institute for 21st Century Energy.

Intellectual property rights, a treaty-killer?

But, he said, "Politically, in the United States, it's going to be very difficult. I can't imagine any Senate, Democrat or Republican, agreeing to a treaty that will be a dagger in the heart of intellectual property rights.

"Once you start tinkering with those, you're on really shaky ground, and you really don't want to kill the goose that's laying the golden egg."

The stakes couldn't be higher. Throughout the world, policymakers are touting technological solutions as an imperative in meeting the enormous challenge of ultimately reducing net greenhouse gas emissions to almost zero.

"We need nothing less than a clean technology revolution," Undersecretary of State for Democracy and Global Affairs Paula Dobrianski said.

In a paper released this week by the Harvard Project on International Climate Agreements, author Richard Newell noted that the technological reality of balancing the atmospheric greenhouse gas stock by reducing the net flow to zero "is far from simple." He pointed out that energy forecasters expect a growth in energy-related CO2 emissions, with fossil fuel share rising as well.

Those predictions, he said, "underscore the fact that the energy-economic system has a tremendous predilection toward fossil fuel-based technologies, and would require substantial domestic and international policy actions to encourage change."

Developing countries say they fear they will be blocked from the green revolution because of high licensing costs.

South Korea's climate ambassador, Rae-Kwon Chung, said it isn't an unfounded concern.

Chung recalled working to limit the use of freon gas in the late 1980s, when the Montreal Protocol, which regulates emissions of chemicals that harm the Earth's atmospheric ozone layer, was coming into effect. South Korea's gas consumption had increased rapidly because of its booming microchip industry, for which freon gas was used in cleaning. By 1989, it had passed the allowed limit and had to find a substitute.

But, Chung said, the country couldn't afford to pay the fees required of the U.S.-based firm that at the time was the only company developing the substitute refrigerant. So South Korea wound up spending about $10 million and nearly six years developing the technology itself, all the while continuing to use freon gas.

"Even the [U.S.] company didn't get anything, so it was actually a losing game for both sides," Chung said.

An international fund that reduces patent fees?

Chung is not among those making a case for compulsory licensing, but said he does think there should be a system in which technology developed from research, which would be backed largely by governments until a technology becomes commercially viable, is offered to developing nations at lower prices.

Others have called for measures like pooling patents to make the licensing more cost-efficient, and setting up a fund whereby industrialized countries simply help poor nations pay the licensing fees.

Eule said industry leaders are concerned about the amount of money needed for such a fund, saying it would set "a bad precedent." Instead, he argued, developing countries need to create stronger markets.

"Free market, rule of law, eliminating of trade barriers and respect for property rights. Those are the kinds of things that create the atmosphere for innovation and investments," he said. "I think poor countries get the technology by creating the atmosphere and the conditions in their own country to allow trade to flourish.

Jim Connaughton, chairman of the White House Council on Environmental Quality, agreed. He said the biggest barriers for developing countries in obtaining clean technology are the lack of technical capacity in certain countries and difficulties in obtaining financing.

Read the entire article.

U.S. Chamber Lauds Selection of General James L. Jones for National Security Advisor

12/1/2008

FOR IMMEDIATE RELEASE Contact: J.P. Fielder (202) 463-5682

Will Be Strong, Effective Advocate for Energy Security, Global Engagement, and Transatlantic Cooperation

WASHINGTON, DC—U.S. Chamber President and CEO Thomas J. Donohue issued the following statement on President-elect Barack Obama's selection of General James L. Jones (Ret.), president and CEO of the Chamber's Institute for 21st Century Energy, as National Security Advisor:

"General Jones is an outstanding choice to serve as President Obama's National Security Advisor. In these difficult times—as the country wages wars on two fronts and grapples with global terrorism—he is the right man for the job. His deep knowledge of global military, economic, and geopolitical affairs will serve President Obama—and the entire country—well.

"We know General Jones will be a strong and effective advocate for energy security, global engagement, and transatlantic cooperation—issues of tremendous importance to the business community. He understands the important role of global commerce, is a natural consensus builder, an honest broker, and deeply knowledgeable of foreign affairs.

"As soldier, statesman, and diplomat, General Jones has dedicated his life to advancing the goals, aspirations, and security of the United States of America. While we will miss his outstanding leadership of the Institute for 21st Century Energy, we are not surprised that he is willing to make the family sacrifices to once again answer his country's call to duty. He has our gratitude, respect, and best wishes for every success in his new position."

The mission of the U.S. Chamber of Commerce Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful energy action at the local, state, national, and international levels. To read more about the U.S. Chamber's Institute for 21st Century Energy, visit www.energyxxi.org/.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

# # #

Washington Times: Obama pragmatic on energy?

11/30/2008

By Morton Kondracke
November 30, 2008

President-elect Barack Obama is proving to be remarkably pragmatic and centrist as he tackles the global economic crisis. Big tests are yet to come on energy, however.

Will Mr. Obama tilt toward fossil-phobic environmentalists who heavily influence the Democratic Party, or toward do-it-all pragmatists like his apparent choice for White House national security adviser, retired Marine Corps Gen. James Jones?

Mr. Jones' present job is chief executive officer of the U.S. Chamber of Commerce's Institute for 21st Century Energy, which contends that offshore oil drilling, clean coal technology and nuclear power must be part of America's energy policy.

On Oct. 20, Mr. Jones made it clear at a panel discussion I was part of that he regards energy policy as "an international security issue of the highest order," which suggests he will make it part of his portfolio at the National Security Council.

He released a step-by-step "transition plan" for energy that included "aggressively" promoting energy efficiency and alternative fuel research, but also domestic oil and gas exploration and elimination of restrictions against nuclear power plants, new electric grids, and oil and gas pipelines.

Such ideas are anathema to many Democratic "greens" - including leaders in Congress - who want to close down the carbon economy and base the country's energy future strictly on renewables such as wind, solar and geothermal power, plus conservation.

In particular, Jones has aroused the ire of Senate Majority Leader Harry Reid, Nevada Democrat, for backing disposal of the nation's nuclear waste at Yucca Mountain in Nevada.

The power of the greens was also demonstrated by the toppling of Rep. John Dingell, Michigan Democrat, the auto industry's longtime protector, as chairman of the House Energy and Commerce Committee.

His replacement, Rep. Henry Waxman, California Democrat, is a "green," and his coup was backed by Speaker Nancy Pelosi, California Democrat.

Click here to read the entire article.

November 2008 Newsletter

11/30/2008

TRANSITION PLAN FOR
SECURING AMERICA'S ENERGY FUTURE

With the announcement last month of a comprehensive Transition Plan for Securing America's Energy Future, the Institute for 21st Century Energy has charted a measurable, actionable, and achievable course for the nation's forthcoming leadership.

The transition of administrations and a new Congress presents a historic opportunity for U.S. leaders to put our nation on a more securing footing. After all, energy underpins the competitiveness, security, and prosperity of the United States.

Among its 88 concrete policy recommendations, the Institute recommends that President-elect Obama create a new office within the Executive Office of the President to coordinate the implementation of all aspects of energy policy, both international and domestic. The head of this office would have a seat on the National Economic Council and National Security Council. The Obama administration and Congress should also come together to enact comprehensive energy legislation codifying the Institute's recommendations in the first year of the new administration.

The Transition Plan is aimed at promoting greater energy efficiency, increasing and diversifying our energy supplies, improving environmental stewardship, and modernizing and protecting our nation's energy infrastructure. Adoption of the Transition Plan's 88 concrete policy recommendations will put the United States on a path to a cleaner, more reliable energy future.

The Transition Plan builds on 13 fundamental pillars that the Institute released in July in an Open Letter to the next president and Congress that was signed by 27 national leaders and has received broad bipartisan support. In September, the Institute released a Blueprint for Securing America's Energy Future that put specific recommendations behind each pillar. Tom Donohue, president and CEO of the U.S. Chamber of Commerce, and General James L. Jones, USMC (Ret.), president and CEO of the Institute for 21st Century Energy, pledged to work with the forthcoming political leadership to implement the Institute's recommendations.

To read the Transition Plan, visit www.energyxxi.org. To request a copy, please email Kevin Robertson at the Institute krobertson@uschamber.com.

ASSESSING THE U.S. AUTOMOBILE INDUSTRY

The future of the U.S. automobile industry is top of mind for members of Congress as they consider federal financial support for an ailing sector in our uncertain economy.

Additional government investment in U.S. auto companies requires careful analysis of the companies' plan for success as well as likely return on the taxpayer's investment. A bipartisan group of Senators have directed the companies to submit a profitability plan to the U.S. Department of Commerce by tomorrow to assist members of Congress as they consider Detroit's Big Three request for $25 billion in new federal funding.

Congress has already authorized $25 billion in Department of Energy loans to help automakers meet existing mandates. These companies currently are required to meet fuel efficiency increases within the next two years.

Transforming the U.S. transportation sector, which is currently 96% reliant on petroleum, is a top priority outlined in the Institute's Transition Plan. To encourage future investment in alternative and renewable fuels as well as hybrid electric vehicles, Congress can take policy action to promote regulatory certainty and spur robust investments as part of comprehensive energy legislation next year.

The Institute recommends the following actions to transform America's transportation sector:

Congress should extend tax credits for the purchase of plug-in hybrid and compressed natural gas vehicles for 10 years with the level declining after five years
Congress should extend for multiple years the income and excise tax credits for biodiesel and renewable diesel used as fuel
Congress should make the blenders' tax credit for biofuels variable by linking it to the price of gasoline or diesel fuel, as appropriate
Congress should include second generation biofuels, like cellulosic ethanol, in the blenders' tax credit; however, because these technologies are not as mature or economically competitive as other eligible fuels, the allowable credit for these fuels should be increased, with a definite phase out after 10 years
The President and Congress should accelerate and increase funding from the current level of roughly $400 million to $600 million for transportation technologies and bio-based fuel technology R&D programs at the Department of Energy
The Departments of Energy and Defense should continue cooperation to develop and deploy technologies to ensure a domestic supply of alternative fuels for military use
The President should direct the Secretary of Transportation, in consultation with the secretaries of Agriculture and Energy, and the administrator of the EPA, to conduct a comprehensive review of the impacts of biofuels production on U.S. competitiveness, the environment, and global food supplies

Efforts to develop and promote alternative transportation options, including second generation biofuels, plug-in hybrids, and all-electric and hydrogen-powered vehicles, should be based on life cycle cost analysis and policymakers should incorporate consideration of each technology's required infrastructure into policy planning. This can enable new technologies, ready for application, to become affordable and commercially available to diversify and transform America's transportation sector.

INSTITUTE LAUNCHS NEW INTERACTIVE WEBSITE -
WELCOMES ENERGY ADVOCATES

The Institute is proud to announce the launch of its new, innovative website - www.energyxxi.org . In addition to showcasing energy policy issues and proposals, it offers interested users the opportunity to get straight facts on energy and take their knowledge to the radio waves, to the editor of their local newspaper, or straight to the Members of Congress who represent them. The website also links users to energy and politics blog sites, and provides an integrated platform to register to vote and spread the word to other energy advocates.

Over the next year, the Institute aims to marshal this growing "energy army" to urge our national leaders to pass legislation that has a long-term view and promotes diversity, efficiency, security, and environmental stewardship.

Check out the Institute's new interactive website today at www.energyxxi.org.

RECENT ACTIVITIES AT THE INSTITUTE

The U.S. Chamber today lauded the selection of General James L. Jones, USMC (Ret.), for National Security Advisor. Click here to read Chamber President and CEO Tom Donohue's statement on this announcement.
An opinion-editorial by Gen. Jones calling for major energy policy reforms appeared in a special November 25th edition of Roll Call on national security.
Executive Vice President and Managing Director Karen Harbert discussed the Institute's Transition Plan for Securing America's Energy Future in the December 1st edition of OnPoint. See Harbert's interview at www.eandetv.net.
Gen. Jones and Harbert participated in the November 21st-23rd Leaders Project at White Oak, Georgia, titled "America in Transition: Energy and National Security." Former Defense Secretary William Cohen and Former Senator Sam Nunn led the dialogue.
Harbert discussed the Institute's Transition Plan for Securing America's Energy Future in a November 21st interview with Federal News Radio. Click to hear the interview.
Vice President for Policy Christopher Guith on November 19th addressed the Syracuse Chamber of Commerce on new energy trends and realities.
On November 17th, Gen. Jones and Tom Donohue unveiled the Institute's Transition Plan for Securing America's Energy Future . More than 300 business leaders, energy experts, Congressional staff, and members of the media attended the event. Featured speakers included U.S. Senator Chuck Hagel (R-NE), Cambridge Energy Research Associates Chairman and Co-founder Daniel Yergin, ABC Veteran Anchor and Political Commentator Sam Donaldson, and Roll Call Executive Editor Mort Kondracke.
Vice President for Climate and Technology Stephen Eule on November 17th delivered remarks on the scale and scope of the technology challenge to significantly reduce greenhouse gas emissions at an International Symposium on Global Warming in Tokyo, Japan.
Harbert delivered keynote remarks on energy supply and demand trends at the New England Canadian Business Council Energy Summit on November 9th. See news article.
On November 7th, Eule delivered remarks on the Institute's energy policy recommendations and what policies to expect from the new Administration and Congress at the Transatlantic Economic Conference in Frankfurt, Germany.

Karen Harbert discusses energy transition plan on Federal News Radio

11/21/2008

Click here to download the mp3 QuickTime file.

General James L. Jones, USMC (Ret.) - Transition Plan for Securing America's Energy Future

11/17/2008

Remarks as Prepared for Delivery by General James L. Jones

Transition Plan on Securing America’s Energy Future

Institute for 21st Century Energy

U.S. Chamber of Commerce

Washington, DC

Monday, November 17, 2008

Thank you, Tom.

Thank you all for being here today, as we unveil a transition plan that addresses one of the most important issues of our time: our nation’s energy future.

Over the past year, there has been much debate and discussion about energy – both here in Washington and out on the campaign trail. But there’s an old saying that “when all is said and done; a lot gets said, and not a lot gets done.” Our nation can no longer afford for that to be true on the energy front—1973, our first “wake-up call” was a longtime ago.

We are in a race against the clock to change our energy future and complacency is not our friend. Here at the Institute, we’re working hard and fast to provide a new path for our country. We intend to propose new and comprehensive solutions to the President-elect, and the 111^th Congress, and, more importantly, to the public.

I am, by nature, an optimist. And the good news is the American public understands the complex energy challenges facing our country. Simply put, they demand a new energy future. But even the optimists among us must concede that we are, at present, poorly positioned to meet our energy challenges. There are several reasons for this:

First, our energy demand is growing – both here and abroad. Global demand for energy will increase by more than 50 percent between now and 2030, and by as much as 30 percent here in the United States. Developing nations must be helped to solve their energy needs as well.

Second, over the past 40 years, our energy marketplace has been marked by boom-and-bust cycles that show no sign of stabilizing. Consider that over the past year, oil prices have increased from $70 per barrel, to nearly $150 per barrel, before retreating again to less than $70 per barrel. And we can be certain that these oil prices will rise again.

Finally, we must admit that, nationally, we have had short-sighted energy policies that have left us ill-prepared for the 21^st century.

We have placed off-limits up to 85 percent of our nation’s oil and gas reserves.

We have failed to invest enough in groundbreaking technologies like biofuels, clean coal, solar and wind.

We have become too dependent on foreign sources of energy. The enormous transfer of wealth as a result of our dependency has become a national security issue.

Finally, we have failed to modernize and replace key parts of our energy infrastructure, leaving our entire system vulnerable and ill prepared to meet the demands of our certain future.

Our present situation may be dire, but it is not too late to secure America’s energy future. There are reasons for optimism.

At the Institute, we have committed ourselves to not only shine a spotlight on the urgency for energy reform, but to light a path that shows us how to get there.

Consistent with that goal, this past July, we released an Open Letter to the next President and Congress, signed by 27 influential national leaders. The letter contained 13 fundamental energy pillars upon which any new energy strategy should be based.

In September, we unveiled our Blueprint for Securing America’s Energy Future. This Blueprint expanded on the 13 pillars, and built specific recommendations around each one.

Today, we unveil our Transition Plan, a detailed document that lays out the goals, policies, and timetables that the next Administration, Congressional leaders, governors, as well as the private sector, could—and we believe should, follow to give our nation the energy reforms that are absolutely essential.

So that’s what our Transition Plan is, but now let me also tell you what it is not. It is not a plan that assumes the government has all the answers or solutions. Certainly, the government has a significant role to play in addressing our energy challenges, but this plan recognizes that the government cannot ... and should not ….. try to do it all in isolation. After all, we haven’t done much since 1973.

For our nation to implement a successful long-term energy strategy, government, at all levels, should do what it does best, and the private sector should be left to do what it does best. But the two will need to act in true partnership if we are to succeed.

The government will succeed if it works toward ensuring the development of as many energy options as possible for American consumers and businesses. For example, the federal government has an important role in supporting and incentivizing research into new and experimental technologies that might not otherwise draw interest from the private sector. The market will determine which sources of energy will best meet our needs.

The government will fail if it pursues short-term approaches that set things back, rather than move things forward. For example, punitive taxes or new overly burdensome regulations on distinct industries could serve to reduce domestic exploration, decrease research and development, and ultimately increase energy prices. We should avoid the negative impact of unintended consequences.

Our Transition Plan identifies the areas where government can do the most good, and lays out the ‘what’, the ‘how’ and the ‘when’ of such policies. This plan is constructive, actionable, achievable and measurable. I’ll briefly walk you through some of our key recommendations.

First, our plan wastes no time. We begin with proposals for the transition of government period, starting with recommendations for government organization to best address our energy challenges.

Under our government’s current structure, responsibility and oversight for energy policy spans at least 13 different federal agencies and regulatory commissions. As a result, our nation’s big picture energy goals often get lost in a tangle of interagency disputes. Process has supplanted results.

So during the transition, we suggest the creation of a new office within the Executive Office of the President. The leader of this office would be responsible for coordinating the implementation of all aspects of Federal energy policy, and would be represented on the National Economic Council and National Security Council. Energy must henceforth be considered a vital component of BOTH our economic and national security. There would be great value in streamlining the number of agencies who currently oversee our energy policies.

Within the first 100 days of the next administration, we recommend that Congress and the President move quickly to repeal existing laws and move to permanently end the remaining moratoria on domestic energy production and exploration. Further, we suggest the expansion of leasing for oil and gas, providing states with a greater share of royalty revenue for onshore and offshore production. Furthermore, we recommend Congress immediately increase research and development spending on non-emitting energy sources, such as renewables and clean coal, putting their funding levels on a path to double within five years. Currently, the United States government is spending 50% less on energy R&D than during the 1970’s oil embargo. We spend less than 4 billion dollars a year on clean energy R&D, as compared to between 400 and 700 billion dollars on imported oil in 2008.

We also propose reforming the biofuels tax credit to make it variable by linking it to the price of gasoline or diesel fuel as appropriate and to increase investments in alternative transportation fuels.

During the first six months of 2009, we propose that our newly elected leaders begin taking steps that will create a “renaissance” in nuclear power in the United States. This should include expanding the loan guarantee program so that it includes building a greater number of nuclear reactors, ensuring adequate funding for the Nuclear Regulatory Commission, and reaching a long-term solution for disposal of our nuclear waste, which should include domestic recycling. The current funding authorized by Congress will support, at best, two or three new projects, which is much too small to adequately accelerate a nuclear “renaissance”.

The plan also recommends establishing a fund managed by fossil-based utilities to support research and demonstration of carbon capture and storage technologies at private, academic, and government entities and creating a long-term R&D tax credit so that companies can plan their R&D activities with greater certainty.

By the end of next year, our plan calls for the enactment of a comprehensive energy bill. That legislation – at minimum – should address four basic energy principles:

greater efficiency across all sectors;
more and diversified energy sources;
a reduction in environmental impacts; and
the modernization of our energy infrastructure

Our Transition Plan also makes many key recommendations for the long-term.

Within two years our government, as a matter of national policy, should foster the construction of smart-grid technology by implementing the relevant sections of the Energy Independence and Security Act. In that same time period, we should create a strategic reserve of low-enriched uranium to guard against possible supply disruptions.

Over the next four years, we recommend that our government work with our global partners to establish an International Clean Energy Fund at the World Bank.

These are just some examples of the specific proposals and detailed timelines that we have laid out in this plan.

Central to our entire plan is the belief that the United States doesn’t just need more government action, we need smart government action. So, as policymakers in Congress and in the Administration get to work on energy policy, we are asking them to keep a number of key questions in mind.

Questions about our goals – Such as how will we measure success of energy reform? Is it decreasing our dependence on foreign sources of energy? Is it lowering costs for consumers? Is it ensuring reliable sources of adequate, clean, and diverse energy supplies for the future?

Questions about costs – How much will these actions cost our nation, both the government and our people? Will they lower the costs of fuel and consumer goods? Will higher taxes generate adverse consequences in R&D, energy costs, and our economy?

Questions about the environment – How will our actions impact climate change and the environment? Are we investing in other sources, such as nuclear power and technologies for clean coal that will reduce our emissions of greenhouse gases?

These questions are but a point of departure in a debate, but they underscore the need for our political leaders to think carefully about the decisions they make on energy reform. It is important that our leadership move quickly. It is equally important that they move comprehensively. We need a long-term vision; short term “feel good” policies no longer are adequate.

With new leadership comes the opportunity and expectation that we will arrive at real and lasting change. Rightly, our political leaders will be held accountable for what gets done – and what doesn’t get done – from here on out where energy solutions are concerned.

Now that the work of campaigning is over, the work of governing must begin. Our plan and our Institute are committed to putting the best ideas forward for the good of our country and our economy. If adopted, we believe that the Institute’s comprehensive and long-term plan can put the United States on a path to a secure, prosperous, diverse, and clean energy future. It will create new jobs, new industries, new American technology, and new American energy. We stand ready to support and assist the new Administration, Congress, state governments, and the private sector to provide the American people with the energy policies they need and deserve.

We are planning a number of activities in 2009 to not only highlight the urgency and magnitude of the energy problems we face, but to also encourage other similar efforts and studies to join together to identify the critical path we all agree the nation must follow in order to achieve our goals.

We propose a series of public and private sector events, to include the international community, with special outreach to our Canadian friends with whom our energy future is so closely linked. The purpose of such events will be to better inform and educate with regard to the work and potential within each sector of our energy spectrum.

Such a dialogue will not only “show” what we must do to fix our energy problems, but will also “tell” the story of how we will provide for the energy requirements of future generations.

Thank you very much.

U.S. Chamber Releases Roadmap for Energy Policy Action

11/17/2008

FOR IMMEDIATE RELEASE Contact: Marty Coyne (202) 463-5558

Calls for New Energy Post Focused on Economic Growth, National Security

WASHINGTON, D.C.—The U.S. Chamber of Commerce’s Institute for 21st Century Energy today announced its Transition Plan for Securing America’s Energy Future, an energy policy roadmap with 88 concrete recommendations and detailed timelines for President-elect Barack Obama and the 111th Congress.

“We promised to help the new administration and Congress with their transition and have laid out a plan that will bring needed investment to America’s energy future,” said Thomas J. Donohue, the U.S. Chamber’s president and CEO. “We must focus on our economy, creating jobs, strengthening our national security, and enabling Americans to keep more money in their pockets. A common sense energy policy will set us on that course.”

Donohue and General James L. Jones, USMC (Ret.), president and CEO of the Institute for 21st Century Energy, announced that the Transition Plan will be delivered to the leadership of President-elect Obama’s transition team and members of the 111th Congress and pledged to work with the forthcoming political leadership to implement its recommendations.

“The transition of administrations and a new Congress presents an opportunity for a new effort to position our nation on a more secure footing,” said General Jones. “It is clear that energy is critical to our nation’s competitiveness and prosperity, and our recommendations will put the United States on a path for a cleaner, more reliable energy future.”

The Transition Plan outlines the comprehensive actions needed by the executive branch and Congress to foster economic growth, strengthen national security, and ensure a better energy future.

In order to implement a new energy strategy, the Institute recommends that President-elect Obama create a new office within the Executive Office of the President to coordinate the implementation of all aspects of energy policy, both foreign and domestic. The head of this office would have a seat on the National Economic Council and National Security Council. The Obama administration and Congress should also come together to enact comprehensive energy legislation codifying the Institute’s recommendations in the first year of the new administration.

The dozens of recommendations in our Transition Plan are aimed at:

Promoting greater energy efficiency
Increasing and diversifying our energy supplies
Improving environmental stewardship
Modernizing and protecting our nation’s energy infrastructure

The Transition Plan builds on 13 fundamental pillars that the Institute released in July in an Open Letter to the next president and Congress that was signed by 27 national leaders and has received broad bipartisan support. In September, the Institute released a Blueprint for Securing America’s Energy Future that put specific recommendations behind each pillar.

The Open Letter and Blueprint are available at http://www.energyxxi.org/

In addition to Tom Donohue and General Jones, U.S. Senator Chuck Hagel (R-NE); Dan Yergin, the chairman and co-founder of the Cambridge Energy Research Associates; Mort Kondracke, Executive Editor of Roll Call; and Sam Donaldson, journalist and political commentator for ABC News, were on hand to deliver remarks at the Institute’s Transition Plan announcement.

The mission of the U.S. Chamber of Commerce Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a commonsense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful energy action at the local, state, national, and international levels. To read more about the U.S. Chamber’s Institute for 21st Century Energy and to watch today’s event, visit http://www.energyxxi.org/.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

October 2008 Newsletter

10/31/2008

By this time next week, the president-elect and incoming members of the 111th Congress will be thinking seriously about the monumental issues facing them. We believe America's energy future should continue to be top of mind. How our country responds to the energy challenges we face will say much about who we are as a nation in the 21st century.

We have laid out the energy challenges succintly and in detail in our recently published documents, including the Open Letter to the next president and Congress and Blueprint for Securing America's Energy Future . Energy has many multi-faceted challenges. One that tends to be overlooked, and to which I would like to devote the bulk of this newsletter, is infrastructure. America's energy infrastructure is increasingly inadequate to meet growing demand. Blackouts, brownouts, service interruptions, and rationing could become commonplace without new and upgraded capacity.

The Institute recommends that to elevate and address our infrastructure challenges, the next president must assess infrastructure needs from now through 2030, strengthen domestic and international critical infrastructure protection efforts, and simplify siting for electric transmission lines, pipelines, and other energy facilities both on and offshore.

As demand for energy grows and our energy infrastructure continues to age, we must modernize and protect our systems critical for energy production and delivery. Our country's transmission lines currently span more than 200,000 miles and U.S. natural gas pipelines carry natural gas over 1.8 million miles each year. Strong and reliable energy infrastructure is essential to U.S. economic growth, new jobs, and the proliferation of new technologies and new industries.

Yet, there are countless examples where organized groups have placed not-in-my-back-yard interests above strengthening regional and national energy and economic security. Some leaders and citizens are delaying or suspending critical new investment in needed energy projects from Southern California to coastal Massachusetts.

The financial uncertainty caused by these delays makes capital ever harder to find, especially during our current credit crunch. Meanwhile, demand for new infrastructure in China, India, and elsewhere in the developing world is driving up the cost of steel, concrete, and manufactured components that make up much of our infrastructure.

Squabbling over details has effectively halted liquefied natural gas terminals in California, Oregon, Delaware, and other states. One of these terminals alone is expected to bring 1.2 billion cubic feet of natural gas per day to the Northest, a region of the United States where natural gas demand is growing. In addition, gubernatorial vetoes of new, more efficient coal power plants in Kansas, Florida, and elsewhere are challenging our nation's electricity supply. These actions threaten to put coal - America's most abundant resource for baseload electricity - off limits. With coal fueling half the nation's electricity generation and with a more than 200-year domestic supply, America must tap more of this plentiful energy resource and use it in an environmentally responsible manner.

Part of improving our energy security consists of getting more power from wind and other renewable resources. Yet environmental and other interest groups have been at odds over bringing more wind turbines online. After a protracted battle to block the Cape Wind farm off the shores of Massachusetts, that project is now moving forward. When fully operational in 2009, this project is expected to produce 468 megawatts of electricity to power more than 200,000 households in the state.

Texas is also enjoying an expansion of wind power - in fact, more than any other state. But even there, local opposition to the siting of critical new transmission lines threatens to idle wind turbines in West Texas. The Texas Public Utility Commission estimates that the state will need $5 billion in new transmission lines to reach the wind energy produced in remote areas of the state.

Expanding electricity transmission infrastructure received a vote of confidence this month when the Virginia State Corporation Commission approved a Dominion Energy plan for a 500-kilovolt transmission line through six Northern Virginia counties. Like other companies that have proposed new power lines to areas demanding more energy, Dominion has addressed environmental concerns about its project. The company has also modified the plan to bypass sensitive areas, including parks.

The next administration and new Congress have been presented with a ready opportunity to implement policies that move us onto a steady path to energy security. We have prepared them for that opportunity with our Open Letter and Blueprint. And next month we will be releasing a Transition Plan, which will serve as a roadmap for a lon-term energy strategy. If done right, these new policies can be a driver for our nation's economic recovery. If this opportunity is not seized, we will do our nation a disservice.

We will remain engaged in the energy policy discussion as we encourage the President-elect, his transition team, and members of the 111th Congress to adopt a comprehensive, long-term energy strategy.

The stakes for our energy future are enormous. Our competitiveness and national security compel us to take common sense action now.

Sincerely,

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

Recent Activities at the Energy Institute

• Executive Vice President and Managing Director Karen Harbert on October 30 moderated an energy panel at the Arab-U.S. Policymakers Conference in Washington, D.C.

• Vice President for Climate and Technology Stephen Eule addressed the South Dakota Chamber of Commerce on the Institute's energy blueprint on October 29 in Sioux Falls and on October 30 in Rapid City. See article and press release.

• Harbert delivered remarks on strengthening America's energy security and its economy at the sixth annual Economic Summit in Johnson City, Tennessee on October 21. See article and press release.

• Gen. Jones on October 17 spoke to top business leaders on the energy challenges and opportunities for the next administration and Congress at an annual Business Council meeting in Kiawah Islands, South Carolina.

• On October 15, Gen. Jones delivered remarks on securing America's energy future to the Young Presidents Foundation in Pebble Beach, California.

• Gen. Jones addressed the Daily Telegraph Conference on International Perspectives on October 7 in London.

• Gen. Jones on October 6 delivered keynote remarks about the Institute's energy blueprint to the American Gas Association in Washington, D.C.

Fuel for Thought

1. Since 1990, electricity demand has risen about 25 percent while construction of transmission lines has fallen roughly 30 percent.

2. 25% of U.S. power are between 30 and 40 years old with a remaining lifespan of approximately 10 years.

3. The United States has not licensed the construction of a new nuclear power plant in nearly 30 years.

4. The Energy Information Administration projects that the nation will need 240 gigawatts of new electricity by 2030 - that's the equivalent of more than 400 new coal power plants or more than 200,000 wind turbines.

5. Natural gas provides approximately 5% of electricity in the Midwest while it accounts for 37% of power generation in the state of California.

Dow Jones – U.S. Chamber of Commerce: U.S. Should Reconsider Ethanol Tariffs

10/6/2008

WASHINGTON (Dow Jones)--U.S. tariffs are designed to block ethanol imports at a time when the country needs to need to be securing new sources of energy, the U.S. Chamber of Commerce said in a report released this week.

The Chamber's Blueprint for Securing America's Energy Future highlights the need for free-flowing trade when it comes renewable fuels and stresses the 54-cents-per-gallon tariff is an impediment.

"This poses a significant obstacle to ethanol imports," the report said.

Ethanol produced in the U.S. is primarily corn-based fuel. Brazil, another major ethanol-producing country, already exports some of its sugarcane based fuel to the U.S. despite U.S. tariffs.

Biofuels, like ethanol, should be treated the same as other commodities that the U.S. benefits in trading on an international level, according to the Chamber.

Click here to read the entire article.

Green Biz – Google, U.S. Chamber Offer Energy Plans

10/6/2008

OAKLAND, Calif. -- Google unveiled an aggressive $4 trillion energy plan to significantly wean the U.S. off fossil fuels by 2030.

Through it philanthropic arm, the company has poured millions into a pursuit of renewable energy technologies. Its plan, "Clean Energy 2030," includes green building codes, a push toward electric cars and energy efficiency, a carbon tax, renewable energy tax credits and reducing vehicle-related fossil fuel use nearly 40 percent over the next 22 years.

"Right now we have a real opportunity to transform our economy from one running on fossil fuels to one largely based on clean energy," Jeffrey Greenblatt, Google's climate and energy technology manager, wrote on the company's blog. "Technologies and know-how to accomplish this are either available today or are under development. We can build whole new industries and create millions of new jobs."

Click here to read the entire article.

Rocky Mountain Collegian – Economic Forecast Emphasizes Need for Incentives, Renewable Energy

10/1/2008

After the recent economic fallout, America will face a loss of one-half of its energy workforce in the next 10 years, said the president and CEO of the U.S. Chamber of Commerce's Institute for 21st Century Energy, in his economic forecast Tuesday.

"Working together we can transform our energy challenge into an energy opportunity," said CEO James Jones, also a retired U.S. Marine Corps general.

In his "Blueprint for Securing America's Energy Future," Jones said that America's response to energy challenges in the next few years will determine its role later.

Jones said that America's future in terms of alternative energy is bright, and to fill jobs resultant of its growth, compensation to combat workforce depletion is vital. He said that the U.S. needs to develop programs, incentives and visa policies to bring in and retain workers.

The address featured presentations from both government and private sector speakers and put a specific emphasis on the contributions of the state of Colorado and CSU to the alternative energy future.

Click here to read the entire article.

Coloradoan: – CEO Discusses Blueprint for America's Energy Future

10/1/2008

National energy policies have to change if the United States is to keep up with new energy possibilities and end its dependence on foreign oil, said the president and CEO of the U.S. Chamber of Commerce's Institute for 21st Century Energy.

Retired U.S. Marine Corps Gen. James Jones said he hopes Congress and the next president will use a new blueprint with recommendations for a better energy strategy - a blueprint that includes points on how to better promote energy efficiency and how to expand exploration and production of domestic oil and natural gas.

"Now is not the time to relegate energy to the back burner," he said during a presentation Tuesday at the Lincoln Center.

The U.S. Chamber of Commerce's Institute for 21st Century Energy's "Blueprint for Securing America's Energy Future" outlines more than 75 recommendations for the president and Congress to consider if the United States is to become energy independent.

"Today's high gas prices are not the problem. They are merely a symptom to a larger problem," Jones said of the need for better energy sources.

Jones recommended doubling funding for the Department of Energy's Buildings Program as a way to promote energy efficiency and creating new tax credits for plug-in hybrid vehicles.

The 75 recommendations fall under 13 broader categories, including reducing the environmental impact of energy consumption and production, increasing renewable sources of electricity and expanding nuclear energy use.

Click here to read the entire article.

U.S. News & World Report: America’s Energy Future

10/1/2008

U.S. News & World Report

America's Energy Future: The U.S. Chamber of Commerce weighs in on energy with 75 policy recommendations for the next president and Congress. "The Blueprint for Securing America's Energy Future" from the Chamber's Institute for 21st Century Energy includes calling for a permanent end to the "moratorium on explorations and production of America's oil and natural gas resources," an expansion of federal loan guarantees to increase the construction of nuclear power plants, and the creation of a Clean Energy Bank of the United States to speed the commercialization of innovative technologies.

Click here to view the article.

Wall Street Journal – Big Business: U.S. Chamber of Commerce Details Energy Blueprint

9/30/2008

Big Business: U.S. Chamber of Commerce Details Energy Blueprint
Posted by Keith Johnson

Republicans in Congress liked to tout an all-of-the-above energy policy. They have nothing on the U.S. Chamber of Commerce.

The Chamber’s Institute for 21st Century Energy today unveiled its detailed energy prescriptions for the next administration, putting some red meat on the “13 pillars” the group published this summer in an open letter to the President and Congress.

The smorgasboard of energy proposals calls for greater government support for energy efficiency, renewable energy, an international climate-change accord, more domestic oil production, more nuclear power, more clean coal, alternative fuels for transport, and bigger and better energy infrastructure.

Retired Marine General James Jones, president and CEO if the Institute, called it “critical” that the next president make energy policy a priority, and called it a “national security issue of the highest order.”

Today, the Institute fleshed out some of the generic ideas in the open letter in July with 75 specific policy proposals. Among the highlights:

Click here to read the entire article.

Denver Post – Plan Propels Energy Talk

9/30/2008

With northern Colorado alternative-energy ventures as a backdrop, the U.S. Chamber of Commerce called Tuesday for a sweeping set of initiatives on national energy policy.

The business-advocacy group said all forms of energy — from nuclear and petroleum to wind and solar power — need accelerated development to meet U.S. demand.

The chamber's "blueprint" of 75 policy recommendations calls for more than $25 billion in federal spending and tax credits to stimulate research and development across the energy spectrum.

"For too many decades, the government has taken every option off the table instead of putting more options on the table," said James Jones, president and chief executive of the U.S. Chamber of Commerce'sInstitute for 21st Century Energy.

The initiatives were unveiled in a Fort Collins presentation to Colorado business and academic leaders.

Jones said Fort Collins was chosen for the event because the region's renewable- energy ventures offer a template for successful public-sector and private-sector cooperation.

"The blueprint is not just a Washington- based, government solution," he said. "It builds on the principles at work here in Colorado. The unconventional partnerships in the public and private sectors are the key to finding solutions."

Jones and other speakers cited Fort Collins-based ventures such as Solix Biofuels, a firm working to commercialize fuel production from algae; engine and power-systems developer Woodward Governor; nonprofit energy-technology firm Envirofit; and Colorado State University's Engines & Energy Conversion Laboratory.

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Denver Channel 9 – U.S. Business Group Unveils Energy Plan at CSU

9/30/2008

FORT COLLINS - Colorado State University's work on renewable energy continues to garner national recognition.

Tuesday, the U.S. Chamber of Commerce’s Institute for 21st Century Energy used CSU as a backdrop as it revealed its suggestions on how to wean America off of foreign oil.

“With a challenge this great and urgent, we must encourage new partnerships, like those taking place in Colorado, that bring together the best of government, industry and academia to create cutting-edge technology solutions to our long-term challenges,” said General James Jones, president of the Chamber’s energy institute.

Jones, Colorado Senator Wayne Allard (R) and several others toured CSU’s Engines and Energy Conversion Laboratory (EECL) Tuesday afternoon prior to the Chamber’s announcement.

EECL is home to several renewable projects including one that’s looking into the mass production of algae, which can be used as a biofuel.

Following the tour, the Institute for 21st Century Energy unveiled its energy plan.

The plan consists of 75 recommendations for the next president and Congress.

The blueprint suggests an increased drive to develop renewable energy along with more oil exploration and additional nuclear power plants.

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