Wednesday, January 23, 2008

Senate Republicans to block renewable portfolio standard?

You have got to be kidding me with this. Why would Senate Republicans want to deny job growth and hold Michigan back when the rest of the country is moving forward?

Oh, wait a minute. Now I remember what the Senate Republicans are all about- making sure there is absolutely no progress in this state. On anything. Ever.

First the good news- the House Energy and Technology Committee has passed a target on renewable energy.

Within eight years, 10 percent of the electricity sold to Michigan consumers would have to come from renewable energy sources such as wind under bipartisan legislation passed Wednesday by a state House committee.

The standard would be nearly triple by 2015 the amount of renewable energy now being sold by utilities and other power producers in the state.


And now the bad news.

More than 25 other states already have renewable energy standards for energy companies, but the issue is far from settled in Michigan.

Although some House Republicans back the proposal, Senate Republicans say it's an unacceptable government mandate. They favor giving tax credits to people who renewable green energy and making only state government - not the utilities - purchase a certain amount of clean power.


Senate Republicans want to deny Michigan job creation. It really is that simple.

Over the flip is a diary I wrote back on Dec. 6th of last year entitled "Hey Michigan. Want jobs?"- filled with all kinds of linky goodness showing that if Michigan adopts a RPS, we will create the demand that will bring us investment and jobs. So if you missed it the first time around- here is what the Senate Republicans would deny our state...

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Three words. Renewable portfolio standard. Pass one. Now. The House is starting work on setting a renewable energy policy, holding hearings today - let's hope they get this done soon because we have very little time to waste. Almost half the country has already passed legislation for renewable portfolio standards. Michigan shouldn't be left behind.

When you wander into the world of renewable/alternative energy, you are hit with endless acronyms from endless coalitions that talk about endless percentages and it all gets very confusing very fast. Try to ignore all of that. Just know this- the one thing that comes up over and over if you have been paying attention to the governor's travels is the fact that having a RPS in Michigan will create jobs. Period.

This editorial from MI Energy Future has been published in both the Traverse City Record-Eagle and the Grand Rapids Press, and it's a good one. Go read it. They are pushing for 10% by 2015.

A 10 percent RES will attract good-paying jobs and new investments in the emerging energy field, strengthening Michigan's economy while reducing energy costs for consumers and businesses. A recent study by the Sierra Club and United Steelworkers shows that a renewable energy standard in Michigan can generate up to 35,000 good-paying jobs. Renewable energy can help put our manufacturing sector back to work and move Michigan's economy forward.


Another study from the American Council for an Energy-Efficient Economy comes to the same conclusion- lots of new jobs, savings and investment.

If the appropriate legislation is adopted, Michigan will see a net employment increase of between 3,900 and 10,000 jobs by 2023 because higher levels of energy efficiency investment by utilities produce greater job growth. That would be the equivalent of adding 25 to 75 small manufacturing plants to the state, according to the report. Furthermore, businesses and households would save more than $2.6 billion on energy bills because a number of expensive new power plants would be avoided.


And don't forget the American Solar Energy Society and their study that predicts that 1 out of 4 jobs will be connected with renewable energy by 2030, with 40 million jobs being produced altogether when you add in manufacturing, accounting, management and construction.

By the year 2030, the renewable energy and energy efficiency industries could generate up to $4.5 trillion in revenue in the U.S., but only with the appropriate public policy, including a renewable portfolio standard, renewable energy incentives, public education, and R&D.


Many of the businesses and investors mentioned in all the stories on alternative energy have said that a renewable portfolio standard is crucial to the industry's growth in a state. Governor Granholm talked with some big name investors out in California...

Granholm said that while VC fund managers in her first few meetings were surprised and impressed by what they heard about Michigan’s efforts, they also made it clear that they will look favorably on states with aggressive public policy initiatives favoring the growth of renewable energy sources.


... and the businesses already here in Michigan working on making the switch to manufacturing components for the alternative energy field, wind turbines in particular. Jeff Metts, president of Dowding Machining-

Metts said the opportunities currently before the state legislature in the form of an RPS (renewable portfolio standards) agreement could be "huge" for Michigan's economy — if legislators don't miss the boat.


Jobs. We hear it all the time. Michigan needs jobs. Well, here you go.

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And on the very day I published this diary, the AP also did a story on alternative energy, and it included yet another person telling us that a RPS is mandatory.

Glen Andersen, who focuses on renewable energy issues for the National Conference of State Legislatures in Denver, said Michigan could be in an excellent position to build renewable energy systems and components given its manufacturing history.

States such as Colorado are trying to lure renewable energy manufacturers with incentives, but most of those companies will have to start from the ground up, he said. Michigan already has buildings and workers in place.

"If you have the skill and the expertise and especially a work force already trained in manufacturing, I would think that would be an advantage," Andersen said.

But he warned that companies won't be as willing to come to states that don't require the kinds of alternative energy products they'll be manufacturing, whether it's wind turbines or solar equipment.

"A lot of the industries think about, does the state have a strong renewable portfolio standard? Do we have a market in the state? That's one of the things that pushes this along," Andersen said.


The evidence of the need for this is overwhelming. The evidence that Senate Republicans would obstruct any progress in Michigan is also overwhelming. And tragic for our state.