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Aggressively Deploy Clean Energy Technologies to Protect the Global Environment

To reduce the risk of catastrophic environmental damage, we must develop clean energy sources. With energy representing a $2 trillion annual market, clean energy represents an important opportunity for the U.S. economy.

Information and clean energy technologies are critical tools in our climate protection strategy. Sensors, computer chips and chip-enabled control technologies are enabling us to use smaller, smarter motors; boost energy conversion efficiencies in electronics goods to nearly 90%; enable applications like LED lighting; solar photovoltaics and variable drive electric motors that consumer 1/8 of the energy of constant speed drives. The implementation of smart technology-intensive networks save huge amounts of electricity and enable energy-saving strategies like telecommuting. The American Council for an Energy-Efficient Economy estimates for every extra kilowatt-hour of electricity demanded by IT technologies, the U.S. economy increased its overall energy savings by a factor of 10.

With primary jurisdiction over critical sectors like electric generation, states have been and continue to be critical laboratories for incubating new ideas and demonstrating the efficacy of new policies and technologies, TechNet applauds the leadership of many governors and legislatures for their leadership in tackling global climate change. We support the aggressive, thoughtful implementation of GHG reduction strategies like California's AB 32. A fundamental principle must be to set aggressive targets in a technology-neutral fashion, while fostering research and establishing predictable, effective deployment incentives.

TechNet supports the following key strategies:

Adopt aggressive renewable energy portfolio standards. Replacing fossil fuel-fired generation with solar, wind, geothermal, biogas and renewables-powered fuel cells can reduce GHG emissions by 20 percent or more. TechNet supports aggressive renewables portfolio standards (RPS) to drive deployment of clean energy technologies. For example, TechNet supports the 33% RPS implemented by California Governor Arnold Schwarzenegger through executive order.

Smarten the electric grid. A smart electric grid will transform the nation?s electric sector in a way that the Internet transformed telecommunications. An intelligent electric grid can empower consumers to save energy and slow the growth of rising energy bills, improve reliability, reduce the need for new power plants, promote the use of distributed clean energy sources like solar and fuel cells and hasten adoption of highly-efficient electric and plug-in vehicle technologies. Giving consumer real-time information about their energy use -- and more control over it - has enabled them to cut power bills by 10% and peak electric use by up to 15%, according to findings from numerous pilot studies. TechNet supports investment in an integrated smart electric grid to drive energy efficiency, reduce carbon emissions and promote the deployment of clean, distributed generation.

Promote energy efficiency. Improved efficiency can deliver half of the abatement required to cap the long-term concentration of greenhouse gases at levels experts believe necessary to prevent major environmental damage. And efficiency is generally the most cost-effective greenhouse gas (GHG) reduction strategy, generating internal rates of return averaging 17 percent.

One of the most effective ways to promote energy efficiency is decoupling - breaking the link between electricity production and utility profits and allowing utilities to earn returns - even higher returns -- on their energy efficiency investments. Further, states should adopt aggressive utility incentive programs to promote energy efficient technologies.

One area to increase energy efficiency in buildings, which account for up to 25% of energy use and offer -- according to McKinsey and Co. -- among the most economic strategies for reducing GHG emissions. TechNet supports the objective of developing zero net-energy homes and commercial buildings. We support adoption of (1) green building standards to establish minimum environmental performance standards; (2) requirements that state buildings achieve nationally-recognize sustainability standards and (3) adoption of strategies such as municipal assessment districts to finance efficiency and renewable improvements in existing buildings, strategies being adopted in cities like Palm Desert, San Diego and Berkeley, California.

In the face of rapid growth in demand for computing services, IT companies are working hard to reduce energy consumption at data centers. New chips can reduce energy use by 40% and virtualization software in data centers can yield dramatic efficiency improvements. With cooling consuming half or more of the energy use at data centers, companies have pioneered strategies to reduce data center energy consumption by up to half, with a goal of developing a carbon-neutral footprint. Technology companies scored well in a recent survey of carbon reduction strategies of major U.S. companies.

Leveraging state government investment to drive deployment. States can use their procurement and investment muscle to promote the rollout of clean energy technologies. Current state subsidy and procurement programs should be recalibrated to maximize GHG reductions and states should aggressively promote the deployment of the most promising new technologies.

California's Economic and Technology Advancement Advisory Committee, which plays a key role in implementing AB 32, noted that the "absence of funding for project demonstrations is a significant impediment to the maturation of new technologies".1 Partnering with private entities, public entities can act as first adopters in demonstrating the efficacy of new technologies.

Clean transportation. Transportation accounts for up to 40% of GHG emissions in many states, and the transportation technologies that our members are investing in - such as battery electric vehicles and sustainable biofuels - have the potential to dramatically reduce GHG emissions and criteria air pollutants. TechNet supports the adoption of low carbon fuel standards, increased vehicle efficiency requirements and incentives to roll out the next generation of zero-emission cars needed to reduce GHG emissions by 80% by 2050.

TechNet supports increased state support for demonstrating and deploying new clean technologies: for example, in 2007, TechNet supported California Assembly Bill 118 which increased vehicle license fees, generating $200 million annually for clean transportation research, deployment and infrastructure.