Calling for bipartisanship in Congress, President Barack Obama used his State of the Union address Jan. 25 to call for greater investment in clean energy sources, including not just wind, solar and other renewables but also clean coal, natural gas and nuclear power.
Obama advocated a goal of generating 80% of the nation's electricity from "clean energy" sources by 2035. "Some folks want wind and solar. Others want nuclear, clean coal and natural gas. To meet this goal, we will need them all — and I urge Democrats and Republicans to work together to make it happen," he said.
"The future is ours to win. But to get there, we can't just stand still," Obama said, referring to the present as "our generation's Sputnik moment." The president said he will be sending a budget to Congress in a few weeks that features investments in clean energy technology.
"Already, we're seeing the promise of renewable energy," Obama said, pointing to the success of Robert and Gary Allen, brothers who run a small Michigan roofing company where just a few years ago half of their factory was going unused. "Today, with the help of a government loan, that empty space is being used to manufacture solar shingles that are being sold all across the country. In Robert's words, 'We reinvented ourselves.'"
The Obama administration already has begun "to reinvent our energy policy," he said. "We're not just handing out money. We're issuing a challenge. We're telling America's scientists and engineers that if they assemble teams of the best minds in their fields and focus on the hardest problems in clean energy, we'll fund the Apollo projects of our time."
In particular, Obama pointed to work at the California Institute of Technology, where researchers are developing a way to turn sunlight and water into fuel to run cars, and the U.S. Department of Energy's Oak Ridge National Laboratory, where researchers are using supercomputers "to get a lot more power out of our nuclear facilities. With more research and incentives, we can break our dependence on oil with biofuels and become the first country to have a million electric vehicles on the road by 2015," he said.
To help pay for innovative energy technologies, Obama asked Congress "to eliminate the billions in taxpayer dollars we currently give to oil companies. I don't know if you've noticed, but they're doing just fine on their own. So instead of subsidizing yesterday's energy, let's invest in tomorrow's," he said.
Energy goals draw support from diverse sectors
Obama's call for what Republicans in Congress have been calling an "all-of-the-above" energy policy that includes support for nuclear power, clean coal and natural gas as well as renewables drew a positive response from some industry groups.
"Tonight we heard President Obama's commitment to creating jobs and keeping America competitive in the global marketplace. The U.S. solar industry is playing a critical role in meeting both of these objectives," Solar Energy Industries Association President and CEO Rhone Resch said in a Jan. 25 statement. "Tomorrow morning, nearly 100,000 Americans in all 50 states will go to work as they do every day — at solar manufacturing facilities; on the roofs of homes and business installing the latest solar technology; at offices offering support in finance, legal and marketing departments."
The Allen brothers, cited by Obama in his remarks, are from Rochester Hills, Mich. Their company, LUMA Resources, used funding from the American Recovery and Reinvestment Act to "transform their roofing company into a manufacturing facility of state-of-the-art solar shingles, creating new manufacturing jobs for Michigan workers," Resch said. "They are one example of thousands of companies that are finding new opportunity in the solar industry. With the right policy support, the U.S. solar industry is scaling up and allowing America to innovate and compete in the global marketplace."
American Wind Energy Association CEO Denise Bode, commenting on the president's interest in ending government support for oil companies, said in a statement: "It is true that fossil fuels receive five times more in federal incentives than renewable energy. We don't believe that is in line with Americans' current priorities. The predictability of the permanent incentives for conventional energy sources is as important as the amounts. Renewable energy currently suffers from the inability to predict whether incentives will be extended every year or two. It's time to reorient the tax code to predictable policies that allow energy sources that will never run out, to thrive — instead of keeping renewable energy on a constant one-year footing."
The American Petroleum Institute, however, defended its industry. Institute President and CEO Jack Gerard, calling Obama's address a "missed opportunity," said in a statement: "The U.S. oil and natural gas industry also pays taxes at effective rates far higher than most other industries, and does not receive payments from the government to support oil and gas development. The tax deductions it does receive are similar to those enjoyed by other industries to encourage energy production and new jobs. We need policies that help the 9.2 million hardworking men and women in the industry, not hurt them."
American Coalition for Clean Coal Electricity President and CEO Steve Miller said Obama articulated a "sensible" energy policy in his State of the Union address. "Sustained economic growth, competiveness in the global marketplace and the creation of millions of American jobs depend on sensible regulations and policies. The most important thing President Obama and Congress can do to 'win the future' is work together to create jobs, help families cope and get our economy growing," Miller said in a Jan. 25 statement. "Sound energy policies that ensure a vital role for coal are essential to accomplishing these goals."
Miller said that in 2011, half of U.S. households will devote at least 20% of their after-tax income to energy. "The affordability of coal-fueled electricity has helped moderate this increase in energy costs, and continued reliance on coal can help the U.S. to recover economically and American businesses to compete globally," he said.
A fact sheet released by the White House noted that "more is needed to ensure that the U.S. is the first country to put 1 million advanced vehicles on its roads." To reach that goal, Obama plans to propose in his budget request to Congress a new effort to support electric vehicle manufacturing and competitive programs to encourage communities that invest in electric vehicle infrastructure.
To make sure 80% of electricity comes from clean energy sources, Obama is proposing "new standards that will help create a market to unleash innovation across a range of energy sources, from renewable sources to nuclear power, clean coal, and natural gas," the fact sheet said.
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