Look West, Obama

If the president wants an energy policy that creates jobs while protecting the environment, one state holds the answer: California

JEFF GOODELLPosted Feb 08, 2009 1:45 PM

Other states beyond California also have successful programs that should be incorporated into Obama's national energy policy. Colorado passed strong net-metering laws, allowing consumers to generate their own renewable power and sell excess capacity back to the utilities. Texas crafted five Competitive Renewable Energy Zones, where new transmission lines are being built, helping to make the state the national leader in wind power. Ten states in the Northeast have forged a regional initiative that enables industries to "trade" carbon emissions while placing mandatory caps on overall pollution levels. And New York City has launched a host of green initiatives to increase open space, create 200 miles of new bike routes and install wind turbines on skyscrapers.

At this point, however, the main obstacle to a greener energy policy isn't political will — it's economic reality. The plummeting price of oil has slowed the push for fuel-efficient cars. Solar plants and wind farms all over the country are stalled because the tax credits that drove many banks to fund renewable energy projects are worthless when banks aren't making money. But even here, California has innovative solutions. The city of Berkeley plans to offer homeowners funds to install solar panels and make efficiency improvements, then allows them to pay the money back over 20 years as a special tax added to their property bills. "It takes away the biggest hurdle of getting renewable power deployed, which is upfront costs," says Kammen of UC Berkeley, who helped design the program. Although the program is just getting under way, more than 1,000 cities around the world are already looking to duplicate it.

Despite its progress, California still has lots of energy problems to sort out. One big roadblock is getting approval from federal agencies like the Bureau of Land Management and the U.S. Forest Service to build new transmission lines and renewable power plants. The state has also failed miserably to upgrade public transportation and reduce dependence on cars. More important, California's accomplishments are minuscule compared to the changes required to truly tackle global warming and establish energy independence. But given the state's early successes, it's no surprise that Obama is looking west for solutions.

"What has happened in California is all about the power of thinking differently," says Daniel Dudek, the chief economist for the Environmental Defense Fund. "If you're looking for a road map to the future of energy in hard times, this is it."

[From Issue 1072 — February 19, 2009]

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