WHAT THE ENERGY BUSINESS WANTS FROM THE NEW GOVERNMENT

All decisions are based on inadequate information. Yet leaders must make decisions and take responsibility for those decisions.

Under the “leadership” of “the decider,” Washington, D.C., took 18 months to come to a decision about simply extending incentives for New Energy, Energy Efficiency, battery-powered vehicles and research-&-development for the nuclear and “clean” coal industries. It could not even confront the question of action on global climate change.

The business community wants decisive action from President-elect Obama. It wants an energy policy and a definitive set of rules about greenhouse gas (GhG) emissions.

Andrew W. Hannah, CEO, solar panel parts manufacturer Plextronics: "The way we made it to the moon was with a strong hand from the executive branch…We need to have that voice in the executive office now."

Key Obama energy adviser: Jason Grumet, president, Bipartisan Policy Center and former executive director, National Commission on Energy Policy.

Many feel there is enough bipartisan consensus to move forward.

Tom Kuhn, president, Edison Electric Institute: "There's this image that Republicans are just for drilling, and Democrats are just for efficiency and renewables…We don't have the luxury of picking one or the other. We really need to have it all."

But the outline of the plan business wants includes (1) Increased implementation of efficiency measures (ex: increased appliance standards, funding building weatherization); (2) Increased low-emissions energy (New Energy, nuclear energy, "clean" coal); (3) More domestic oil drilling.

Not all of these will be equally popular with Obama’s constituency. That’s where Grumet’s wide-ranging experience in a wide variety of energies is expected to be especially helpful.

It is arguable that some businesses profited from the indecisiveness of the last 8 years but many others have watched as companies based in nations with well-defined policies got ahead.

Andrew N. Liveris, CEO, Dow Chemical: "…[O]ther countries are putting in place very, very sound energy policies that include all of those components. Without an energy policy, our industry will continue to build factories [and send] jobs overseas."

U.S. businesses want no more of that.

Ultimate irony: Successful energy policies will lead prosperity and will not, as the argument has been made for 8 years, cost business and consumers.

Under the leadership of Senator Barbara Boxer (D-Calif.), the Senate Environment & Public Works Committee has been preparing legislation to fight global climate change for the upcoming Congress. Boxer: "Clean energy means green jobs…"

Jigar Shah, founder, SunEdison: "[T]he net cost [of greening all government buildings] could be zero, because it will save so much energy."

Potential decisive moves within President-elect Obama’s reach through federal agency actions (after January 20): Increased efficiency standards, stronger building codes, Federal Energy Regulatory Commission action on new transmission and – if Congress does not act -- regulation of GhGs through the Clean Air Act.

Many, however, expect Obama to effectively work in concert with Congress in a bipartisan way to stimulate the economy, spur business and inspire the country.

Hannah, CEO, Plextronics: "Obama truly understands the convergence of technology and energy and how it can drive the economy…"

Van Jones calls it a Green New Deal. (See NEW ENERGY AND JOBS – THE KEYS TO THE ECONOMY) It would, of course, be the 2nd time a New Deal pulled the U.S. out of hard times.

The next Congress must decide, finally, between competing climate change bills. (click to enlarge)

Energy: Lay Out Clean Rules – And Fast; With carbon restrictions likely soon, business wants the new President to lay out the rules. And quickly
John Carey, November 5, 2008 (BusinessWeek)

WHO
Michael G. Morris, CEO, American Electric Power (AEP); Red Cavaney, president/CEO, American Petroleum Institute (API); Andrew W. Hannah, CEO, Plextronics; Tom Kuhn, president, Edison Electric Institute; John Rowe, CEO, Exelon; Barbara Boxer (D-Calif.), chairman, Senate Environment & Public Works Committee; Jigar Shah, founder, SunEdison;

WHAT
Business wants the incoming adminstration to develop a comprehensive U.S. energy plan that would reduce U.S. dependence on foreign oil, protect the economy from disruptions caused by energy supply, modernize the transmission system for use with New Energy and smart technology, and engage in the fight against global climate change.

Many believe a cap-and-share plan would be better than cap-and-trade. (click to enlarge)

WHEN
The policy began with the Obama campaign platform. Behind the scenes groundwork is being laid during the transition. The action kicks off January 20, 2009.

WHERE
Policy will be hammered out in White House meeting rooms and forged into functional tools in the hallowed halls of the Capitol Building. It will impact every home in business in the U.S. and be felt around the world.

WHY
- Urgency: Because energy prices are expected to rebound when the recession ends and because companies must make multibillion-dollar investment decisions about energy that hinge on the federal energy policy and the pricing system for GhG emissions.
- Decisions are the sea business swims in (Ex: Economic feasibility of a new aluminum plant site, economic feasibility of a potential airline route).
- Funding New Energy installations and energy-efficiency retrofits of government buildings is leading by example and could be done at a net zero cost because of energy savings.
- Funding New Energy installations, home energy-efficiency retrofits, mass-transit systems, “clean” coal pilot projects and other such R&D could lead an economic recovery.
- Upcoming points of conflict: Petroleum resource drilling on the outer continental shelf; nuclear plant permitting; “clean” coal permitting; vehicle fuel economy standards; biofuels subsidies; New Energy policies and incentives.

The Obama plan. From everittjames via YouTube.

QUOTES
- Michael G. Morris, CEO, AEP: "At $2.30 per gallon of gasoline, many think the energy issue is over…It is so far from over."
- Red Cavaney, president/CEO, API: "We are not going to fix the economy over the long term without taking care of energy…"
- John Rowe, CEO, Exelon: "We must enact mandatory climate legislation, and pass it soon…"