President-Elect Obama’s Pursuit of Energy Independence
In our last post, we discussed likely policy moves by the incoming administration to battle climate change. Today we discuss the new President’s anticipated approach to energy independence.
Like most Americans, President-Elect Obama recognizes the interplay between energy independence and national security. To achieve this, the new President has called for 25% of U.S. electricity to come from renewables by 2025, and for 30% of the federal government’s energy supply to come from renewables by 2020. As with climate change, the new administration will be able to look to the states and learn from their implementation of renewable portfolio standards before pursuing a national standard.
Recent concerns about the benefits and costs of biofuels has led the President-Elect to soften his position in support of biofuels. He now sees corn-based ethanol as a transitional technology and will likely focus federal efforts on research and development for the next generation of biofuels, including cellulosic and algae-based technologies.
At the same time, Obama recognizes that fossil fuels must continue as part of the nation’s energy supply. He has advocated, however, for oil exploration on lands already leased rather than opening new lands to potential drilling. He also advocates for increased spending to develop practical carbon sequestration solutions. He provides limited support for nuclear energy, provided that its waste stream issues can be addressed satisfactorily.
Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.
Energy independence includes using energy with increased efficiency, and Obama is on record supporting aggressive efforts to improve carbon neutrality for new construction, including zero emissions from all federal buildings by 2050. Although expenditures will likely be tempered by the economic crisis, expect increased spending to develop domestic renewable energy industries and new “green” jobs. Tax credits to spur renewable development will likely be renewed, and for longer periods than has occurred during the current administration.
All in all, environmental and renewable energy advocates are excited about the possibilities of the Obama administration. Exuberance must be tempered with a dose of reality, however, as Obama will be called upon to balance these objectives against a challenging economic environment. His administration is likely to implement easy solutions early, including increased involvement in global climate change discussions, regulation of carbon under the Clean Air Act and a grant of California’s waiver. More complicated reform like cap-and-trade, a national RPS, and investment in green jobs may take more time, more political capital, and require a willingness to compromise a bit.
