Sustainability Inside The Beltway

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I just returned from speaking at the Atlantic Monthly’s Green Intelligence Forum 2010 which I told you about earlier this week. In several respects, the Forum presented an interesting contrast to the West Coast events I have attended recently. The crowd of 200+ was comprised mostly of Congressional staffers, Federal agency personnel and a mix of individuals from environmental nonprofits and Washington-based think tanks. The bigger departure was the non-stop discussion of the role politics and policy are playing in sustainability. From the panels moderated by Atlantic’s well spoken group of journalists to the hallway conversations, it seemed that everyone wanted to speculate about what Congress might do or, more likely, might not do.

The change of scenery and different conversations raised a question in my mind, just how critical is Federal policy going to be in the next few years for green business? There were certainly a few answers that could be teased out of the Forum. David Hayes, Deputy Secretary for the Department of Interior (DOI), optimistically noted that DOI can already effectively use our public lands to stimulate development of utility-scale solar, including concentrating solar as well as photovoltaic arrays. Hayes did advocate for changes in the law to allow the public to share in some of the revenues generated by plants on public lands. Jason Grumet, President of the Bipartisan Policy Center (a think tank founded in 2007 by Republican Congressional leaders), sounded a more pessimistic note, observing that the recent energy and climate debates ended with less consensus than when the debates started. Grumet suggested that the public conversation move from climate to more traditional themes of public health and air pollution. James Connaughton of Constellation Energy (and former chairman of the Council on Environmental Quality during the Bush Administration) seemed skeptical that a change of context would make any difference since even the BP oil spill had little effect on the electorate. I found some truth in a comment from Steve Cochran, the Environmental Defense Fund’s Climate Change Director, that “we must depolarize to decarbonize” so the best hope for action is a bottoms up approach in states, local governments and corporate supply chains.

My own answer to the question is the same one that Applied Materials and Silicon Valley have offered for several years now: alternative energy and environmental solutions are good businesses and we will continue to build them with innovation and the other tools at our disposal, but sound, timely public policy can dramatically accelerate the process. A federal climate or energy bill can send the right signals to unlock even more investments than we are seeing presently. A consistent international treaty might do even more to create expansive energy and environmental markets all over the world. Meanwhile, sound State and local programs, such as California’s AB 32 (Global Warming Solutions Act) need to be defended and implemented. If these questions about policy fascinate you, head to D.C. for the endless discussion.

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Comments

Very Good Panel, However

Mr. Klafter,

I wasn't able to attend, however I watched your Profit session on C-span2 and thought it was a very good panel with an interesting discussion.

My qualm with all the reliance on government to steer private business into taking more action (the carbon tax) is, that view tends to discount innovative ideas that may come to market in the coming months/years. It's as if we are out of ideas altogether and so we will throw up our hands at finding something new and instead simply pressure the market to accept the highly subsidized failed technologies we've all come to know and rely on - whether they be solar, wind, bio, fuel cell, etc. etc. etc.

I am biased of course.

Decarboization

I have never been a great fan of global warming disaster predictions. Too much of the science is driven by politics, not science. What I am certain of is that taxes and governement spending is too high for us to get good job growth in the United States. We are on the wrong side of the Laffer curve to add a cap and trade.

That said, I think that we could get bipartisan support for a tax on "carbon" that was balanced by a reduction in corporate and and individule income taxes. This would bring in "green" behavior without growing our out of control spending.

“we must depolarize to decarbonize”

Well I agree with the "depolarize" part but the "decarbonize" part is part of the polarization! If we want to depolarize and "awaken the sleeping giant", the buying power of the USA....we need a strategic energy policy. Without one the bipartisan bickerring over climate change will continue. Change the subject ....its about energy independence or at least less so on the middle east to the point where we control the oil prices not OPEC. Any other conversation does not really get the pea brains in Washington to agree with each other. Balanced approaches can bring up fossil fuel resources while at the same time incentivize the build out of alternate energy to reduce fossil fuel demands. Many items make up the success or failure of this endeavor;

- efficiencies via clean diesel, LNG, hybrid, electric vehicles
- more oil locally, oil sands, shale oil
- tax decreases fed into the build out of alternate energy

It takes all of these and in no way will we be off of fossil fuels for quite some time. Thinking we will is just naive and shows a general misunderstanding of the scale of energy consumption and the worldwide growth. A 50% drop in the price of oil which could happen by pulling out only a small part of US demand could keep $200-300B dollars in this country for more productive uses.

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