Published: March 31, 2009 01:59 pm      

Minnesota needs clean vehicles

Background:

J. Drake Hamilton is science policy director of Fresh Energy, a private nonprofit dedicated to building a new energy economy. She was appointed by Gov. Tim Pawlenty to serve on the Minnesota Climate Change Advisory Group, which made recommendations to the Legislature. She was formerly assistant professor at George Washington University.



Q: Much attention is focused on creating a green economy and creating jobs, including through the use of federal stimulus money. What is the best way to quickly support jobs and help advance the idea of energy independence?

A: Energy efficiency is the cheapest, cleanest and fastest route to energy independence. Think of efficiency as cutting the waste in how we power our economy and heat and cool our buildings. In the power system, each dollar spent in a well-managed efficiency program will create five times more saving for each dollar spent than any other policy.

Minnesota will get $186 million for weatherizing low-income homes. Investments in weatherization will be a huge opportunity to increase efficiency by adding insulation, sealing air links, and modernizing heating and AC equipment.

Weatherization projects increase local economic activity quickly. The work stays in the community and creates demand for construction materials and more jobs closer to home. These improvements save residents hundreds of dollars each year and improve the quality of Minnesota housing.



Q: Minnesota ranks fourth in the nation in wind power development, behind Texas, California and Iowa. How can the state build on its lead and encourage more investment in wind power and other renewable forms of energy?

A: The economic stimulus package includes several funding mechanisms to make it easier for Minnesota residents to receive financing and funding for renewable energy projects.

First, Congress adopted an investment tax credit that will make financing for renewable energy projects easier to access. The tax credit roughly translates into a grant for up to 30 percent of the cost of a wind energy project.

Additionally, the existing financing mechanism for wind — the Production Tax Credit — was extended until the end of 2012. The PTC is a per-kilowatt-hour tax credit for renewable electricity producers like wind and solar projects. It creates better access to financing and ultimately heightens competition in the marketplace.



Q: There are proposals on the state level that would call for Minnesota to have tougher standards than the federal government calls for on emissions and mileage for vehicles. What effects would tighter restrictions have on Minnesota drivers, the economy and the environment? Wouldn’t different standards in different states cause confusion and problems for auto makers and dealers?

A: Tailpipe emissions are responsible for almost one-quarter of Minnesota’s global warming pollution. That is why Minnesota policymakers are debating the passage of the Clean Cars standards, a measure already adopted by 14 states that would lead to significant reductions in air pollution from new motor vehicles starting in 2012.

These more protective regulations in Minnesota will increase the availability of cleaner, efficient cars and trucks and save consumers money at the gas pump, and significantly reduce air pollution that can trigger asthma attacks and is leading to the degradation of our lakes, rivers and streams. Minnesota leaders should help drive innovation toward cleaner cars by demanding more choices for cleaner, American-made cars and trucks.

Under federal law, states have only two choices when it comes to regulating vehicle emissions: either following the weaker federal standards set by the EPA, or adopting the more protective state-based standards first developed by the state of California and approved by the EPA before implementation. This model gives the auto industry the certainty that there will only be two sets of standards.



Q: Biofuels are one of the other big pieces of the green jobs and green energy movements. There appears to be more consensus that using more — or even the current level — of corn-based ethanol is not the best route to go environmentally or economically. What are the best options out there for the next wave of biofuels?

A: To promote more efficient, next-generation Minnesota biofuels, Gov. Pawlenty’s Climate Change Advisory Group recommended Minnesota adopt a low carbon fuels policy. That policy could reduce global warming emissions from the production and use of transportation fuels by more than 36 million metric tons by 2025. Reducing the carbon content of fuels sold in the state would diversify Minnesota’s fuel supply, cut our risk from oil price shocks, and help spur investments in Minnesota’s clean energy industries. A variety of transportation fuels could be used to meet the standard, including biodiesel, ethanol, compressed natural gas and electricity for plug-in hybrid vehicles.



Q: The economic stimulus package kick-started the new energy economy. How do we spur long-term private investment in clean energy?

A: Congress is discussing the means to repower, refuel and rebuild our economy with clean energy and transportation choices. These energy solutions will drive economic recovery and deliver green jobs that can’t be outsourced. Building this new energy economy requires a clear, long-term policy commitment. We need to put responsible limits on global warming pollution by putting a declining cap on carbon emissions — that market signal will drive private innovation and investment in solutions.