Decarbonization experts urge greater federal government involvement
A panel of energy experts called on Congress and federal agencies Thursday to expand government assistance efforts and to help broaden public support for decarbonization, as the new administration and Congress beckons in the new year.
Norm Augustine, former chairman and CEO of Lockheed Martin, said the need for carbon emissions reduction has never been more obvious. The challenge now is to get a broad public consensus to buy in to the effort and to “convince the public of the need for government leadership.”
Augustine and the other energy leaders were participating in a discussion sponsored by the Bipartisan Policy Center on five policy recommendations for 2021 for the Association of Edison Illuminating Companies.
They are similar to those put forward in previous years and include: getting the federal government to triple its investment to $25 billion a year in clean energy innovation; getting expanded funding for the ARPA-E energy innovation program to $1 billion a year; creating a new energy challenge focusing on pilot demonstration projects; formation of an independent national energy strategy board and continuing to expand centers of excellence to support the formation of companies and jobs in green energy.
“Moving from research prototype to innovation takes a lot of money,” said Geisha Williams, former president and CEO of PG&E. “Frankly, it’s going to require the type of funding that only the federal government can provide.”
American utilities have made great strides in reducing their carbon footprints over the past two decades, according to the Edison Electric Institute (EEI). Almost 40 percent of all U.S. power generation comes from carbon-free sources, including nuclear energy and hydropower and other renewables, the group says. As of year-end 2019, EEI’s member companies which include all U.S. investor-owned electric companies, have reduced CO2 emissions 45 percent below 2005 levels. Based on projected trends and member goals, CO2 emissions from EEI’s member companies are projected to be at least 80 percent below 2005 levels by 2050.
The panelists agreed the private sector has made great strides in developing new sources of clean energy but moving from the R&D stage to workable solutions requires more help from the government. “In the energy world it’s hard to move from a working prototype to a working model,” said Augustine.
Chad Holliday, chairman of Royal Dutch Shell, called on the U.S. government to create regional centers of excellence for clean energy that will be able to transfer ideas into practice. He said the energy giant has successfully used this model to develop energy innovation all over the world.
In introductory remarks, U.S. Rep. Lizzie Fletcher (D-TX), chair of the House Science, Space, and Technology Subcommittee on Energy, noted the dual challenge of U.S. energy policy of producing more energy while also reducing carbon emissions and pollution. She said her committee is working with other members of congress on ambitious but workable plans that aim to depoliticize the conversation. “The best way to do that,” she said, “is to build bipartisan consensus.”
She said she hopes Congress will take some of the main items in the energy bill passed by the House last summer, including additional funding in an omnibus spending package expected to be approved before the end of the year for the DOE to research and develop a modern storage infrastructure for the electric grill and for carbon capture and storage technology.
Next Congress Fletcher says she expects her committee to debate on expanded tax incentives for clean energy, as well as permitting reform for major energy projects. “It’s important that the process works for everyone,” said Fletcher, “and that new projects are able to move forward.”
Much of the discussion was focused on the emergence of liquified hydrogen as a major technology that can displace much of the carbon technology. Michael Graff, president and CEO of American Air Liquide Holdings, said the technology can be used for producing electricity, fueling transportation and for industry. He called for a public/private partnership to develop this technology. China and South Korea, which have limited energy resources, are already moving rapidly ahead in this market, said Graff.
“A country is going to lead this; we have all of the tools for it to be us,” said Shell’s Holliday. “We don’t want to miss this window.”
