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Energy summit targets costs

Moving U.S. to renewable sources possible with assistance, experts say

Clean energy will reduce greenhouse gases, protect the environment, create jobs and reduce U.S. dependence on foreign oil. But the federal government needs to lead the way.

That's the message from Senate Majority Leader Harry Reid, D-Nev., and a parade of public and business leaders speaking to 750 attendees at Tuesday's National Clean Energy Summit at the Cox Pavilion at the University of Nevada, Las Vegas.

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  • "The energy situation can't be solved by the private sector, by consumers, and by state and local governments alone," Reid said. "The federal government must be a lead actor in this energy drama."

    Oilman T. Boone Pickens, for example, suggested tax credits for renewable energy, such as wind and solar power, would cost taxpayers $15 billion, but he called that insignificant compared with the $700 billion that the nation spends on imported oil every year.

    "I'm opposed to one thing, foreign oil," Pickens said.

    Government financial assistance is also necessary to help jump start the renewable energy industry, other participants said.

    Dan Reicher, director for climate change and energy initiatives at Google.org, told the gathering that renewable energy options will remain "boutique" industries unless their costs are cut to make them competitive with coal and other widely used power sources.

    "There's a whole set of factors that go into the ultimate cost of energy," Reicher said after announcing a new plan for Google to invest more than $10 million to develop "enhanced geothermal systems" technology to generate energy from rocks deep below the earth's surface.

    "These are all high capital costs projects," Reicher said.

    Another area government can help is by funding research, Steven Chu, director of California's Lawrence Berkeley National Laboratory, said later in the day.

    As examples, he said, government research funds could help reduce the cost of photovoltaic cells and help create synthetic yeast to make diesel and jet fuel replacements from biomass.

    General Electric chief executive Jeff Immelt said in a video that the government and the business community need to move forward with renewable energy projects.

    "The technology exists, the time is now," he said. "We need a call to action -- not a call to go to another conference."

    Pickens said he was calling for bipartisan support for energy policies and urged Republican presidential candidate John McCain and Democratic candidate Barack Obama to take action in the first 100 days of their administration when observers say a newly elected president typically gets the broadest support from Congress.

    At the end of the conference, New York City Mayor Michael Bloomberg criticized the presidential candidates for not having a real debate about energy.

    "They're treating us to a political silly season," Bloomberg said, not mentioning either candidate by name but citing ideas such as tapping the nation's strategic oil reserve or giving Americans a gas tax holiday.

    "The best that can be said about these ideas is that they're pandering," Bloomberg said. "Far worse, they're distractions from the deadly serious business of creating a new national energy policy."

    Pickens agrees that the lack of a new national energy policy is a problem. In fact, he compared the country to a boater approaching Niagara Falls without a motor or an oar.

    "We are getting very close to a disaster," he said.

    As proof, he noted that the country has gone from importing 24 percent of the oil it consumes in 1970 to 70 percent today, Pickens said.

    "There is no question we have a (national) security problem importing 70 percent of our oil," Pickens said.

    Pickens, who has invested billions in natural gas companies and a project to develop wind farms and transmission lines capable of supplying 20 percent of the nation's energy needs, called for tapping the strong wind resources found between Texas and Canada and the solar power concentrated in the desert Southwest.

    As a bridge from oil dependence to clean energy sources, the oilman suggested the nation's trucking industry switch from diesel and gasoline, which are refined from oil, to less costly compressed natural gas, which he said is abundant domestically.

    Trucking companies could replace conventional engines with motors that burn natural gas as they replace their fleets every 30 months.

    That would reduce our oil import bill by $250 billion yearly within five years, Pickens said.

    Jim Owen, a spokesman for the Edison Electric Institute attending the conference, said it would take a long time for the country to build up the number of natural gas refueling stations to make natural gas-powered truck fleets practical. Owen, however, said his group supports calls for tax credits "to jump start" the renewable energy industry.

    Reid unsuccessfully tried to win Senate approval of renewable credits eight times, but Owen said he hears that congressional Democrats hope to win passage for green power credits when Congress returns after Labor Day.

    The Senate leader said it will take 20 years for the country to increase oil production enough to add "a drop in the global barrel."

    Michael Yackira, CEO of Sierra Pacific Resources, outlined several of his company's renewable energy projects but said little about controversial plans to build a $5 billion coal-fired power plant in Ely. Burning coal emits large quantities of carbon dioxide that scientists say leads to global warming.

    Owen said the electric power industry believes that energy conservation and renewable energy must be coupled with coal-fired, nuclear and natural gas powered plants in order to satisfy an expected 30 percent increase in power demand nationally by 2030.

    Edward Mazria, a founder of Architecture 2030 which promotes energy conservation for buildings to reduce carbon dioxide emissions from power production, took a different perspective.

    The supply-side solution, he said, is "no more coal. It's a simple as that. It's the silver bullet."

    The crowd applauded.

    Other participants at the conference discussed what they are doing to conserve energy and resources and how it is impacting their businesses and states.

    Arizona Gov. Janet Napolitano, a Democrat, for instance, said that the Arizona Department of Correction is preparing prison inmates for jobs by training them to install solar panels and then using them to install the panels in prisons.

    In the afternoon session, the governors of Utah and Colorado explained converting to more efficient energy use in state buildings and vehicle fleets.

    "We must move this whole debate from the abstract to the concrete," Utah Gov. Jon Huntsman said in his keynote address.

    Colorado Gov. Bill Ritter said his state's "new energy economy," with the help of tax credits, has created thousands of new jobs in the wind turbine business.

    Colorado has also put in place a state climate action plan.

    "In this country we have to stop debating the fact of climate change and start debating the rate of climate change," Ritter said.

    Jon Wellinghoff, a member of the Federal Energy Regulatory Commission and Nevada's first public utilities consumer advocate, stressed the importance of a "backbone system grid" for renewable energy to tap vast amounts of power from wind energy in the Rocky Mountain states.

    Wilderness advocates from Nevada who attended the summit said they want to work closely with energy companies to ensure that development of renewable energy sources doesn't harm wildlife, cultural sites and habitat vital to threatened and endangered species.

    "America and Nevada have a unique opportunity to develop our renewable energy industry and associated transmission lines in a way that is smart from the start," said John Tull of the Nevada Wilderness Project.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420. Review-Journal reporter Keith Rogers and The Associated Press contributed to this report.



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    Go Solar wrote on August 20, 2008 09:45 PM: (Continued from previous essay)

    The building of power transmission lines that would export solar electricity from Nevada to the rest of the United States is similar to the building of a national interstate highway system.

    The national highway system we enjoy today here in the US is due to Republican President Dwight Eisenhower, a former General in the US Army who was given responsibility for the D-Day invasion of Normandy on June 6, 1944.

    The formal name is the “Dwight D. Eisenhower National System of Interstate and Defense Highways”; you can read about its history at the Department of Transportation (http://www.fhwa.dot.gov/programadmin/interstate.cfm), which states the following:

    “The Federal-Aid Highway Act of 1952 authorized the first funding specifically for System construction, but it was only a token amount of $25 million a year for fiscal years (FY) 1954 and 1955. Legislation in 1954 authorized an additional $175 million annually for FY 1956 and 1957.

    Under the leadership of President Eisenhower, the question of how to fund the Interstate System was resolved with enactment of the Federal-Aid Highway Act of 1956. It served as a catalyst for the System's development and, ultimately, its completion…and established a new method for apportioning funds among the States, changed the name to the National System of Interstate and Defense Highways, and set the Federal Government's share of project cost at 90 percent.”

    Just as the highway system was necessary for military defense purposes, power transmission lines emanating from Nevada will eliminate the U.S. dependence on foreign petroleum and increase its national and military security.


    Go Solar wrote on August 20, 2008 09:43 PM: Common Sense wrote “If the government had proposed 40 years ago that every taxpayer in the country furnish million-dollar home computers for everyone else, the reaction would have been the same.”

    People have affordable computers and the Internet today because US taxpayers paid a lot of money to fund their development in order to fight the Cold War against the Soviet Union.

    For example, taxpayer-funded NASA paid billions of dollars of money to Silicon Valley companies to develop the electronic component technologies used in the onboard computers of the rockets that sent astronauts into orbit around the Earth as well as to the moon. This was not just a matter of pride and bragging rights; the technology was necessary for the military defense of this nation (think of reconnaissance technology used in satellites as well as the long distance rocket technology that could deliver either a payload of men --- or a weapon).

    Similarly, the reason the whole world can enjoy the Internet is because the US S Department of Defense needed to develop a system of communication that could withstand a nuclear attack. The result was the Internet, which the US taxpayer funded with billions of dollars of research and development money.

    So although individuals taxpayers could not tangibly enjoy the benefits of owning a personal computer (before the 1980’s) or the Internet (before the 1990’s), those taxpayers were immediately benefiting from the military defense and also subsidizing the cost to develop the technology that future generations would enjoy.

    (My essay continues in the next post due to the 300-word limit)














    mike wrote on August 20, 2008 08:39 PM: What about the people who said that the internet will never work.

    What about the people said the DVD or CD will be here forever.

    What about the people who said that hybrid cars will fail.

    Common Sense you thought process is outdated. Talk to you in couple of years, you will eat your words.

    Good night grandpa common sense.


    Common Sense wrote on August 20, 2008 06:43 PM: Oh, certainly, it CAN be done in the future. But what today's activists demand is that we all pay the exorbitant costs NOW.

    If the government had proposed 40 years ago that every taxpayer in the country furnish million-dollar home computers for everyone else, the reaction would have been the same.

    And the government didn't force people to buy automobiles in the late 1800s.

    The idea that something CAN be done someday doesn't justify forcing people to throw their money at it right now.


    Jen wrote on August 20, 2008 05:01 PM: Absolutley right Mike!! All these people who are saying "can't do it" probably had relatives saying the same thing about replacing horses with automobiles. :)


    mike wrote on August 20, 2008 04:06 PM: Common Sense stated,"Clean energy" is another example of a great theory that simply cannot justify its own cost in the cold light of reality.

    Well that what people said about cars when they saw them in the streets or when computer were first created.

    "The computer is slow and takes up too much room, I can do it faster. Why should buy this million dollar computer"



    Common Sense wrote on August 20, 2008 02:49 PM: Solar energy would be a great thing, except for the cost. You'll notice a glaring absence of cost whenever the issue of wind and solar power arises.

    "Go Solar" is correct to factor in health costs caused by traditional fossil fuels. However, even those costs don't make solar power attractive or practical. Just check out the cost of installing a rooftop solar array in your own home, or check the cost of a small windmill for your backyard. You'll be shocked.

    Theoretically, yes, covering a chunk of Nevada with solar panels would generate enough electricity for the entire nation. But how much money would that cost? And don't forget to add the cost of the transmission lines to every major U.S. city to deliver the "free" electricity.

    "Clean energy" is another example of a great theory that simply cannot justify its own cost in the cold light of reality.


    Go Solar wrote on August 20, 2008 01:39 PM: Jim Nance, the "current market price" is malleable and doesn't take into account the other indirect costs that you suffer by having old-fashioned dirty-energy technologies.

    For example, if you have lung problems caused by polluted air, you are going to get it treated and then get a big fat medical bill(s) from the hospital.

    So you are actually paying for the health-care costs of the dirty energy generation, even though you don't explicitly see it on your energy bills.

    Even if you get Medicare or Medicaid to pay off that medical bill, then some other taxpayers are going to be subsidizing your medical treatments.

    It's unnecessary for people to have to get sick just to get a "cheaper energy bill", because in the end, they end up paying more for health.

    Contrast this to Solar One. After the plant is built, that's it: The thing is done. The only thing harvested is sunlight; any water resources are circulated forever through the system, nothing is wasted, and no pollution is generated. As long as the plant is running, you NEVER have to worry about replenishing it with more "dirty fuel" that has to be dirty-mined/dirty-drilled/dirty-processed-with-chemicals (as you would with coal or petroleum).

    There is no need for the kind of human security personnel that you would need to protect a Yucca Mountain; there is no need to develop "exotic technologies" to guard by-products (like you would with spent nuke fuels using those caskets).

    So in the end, Solar One may be 240% the current market price of the electricity bill alone.

    But take into account the price of treating yours (or others) medical bills and all other consequences, and it actually becomes a bargain.


    mike wrote on August 20, 2008 12:59 PM: I rather pay higher prices for cleaner energy. Eventually it will go down.

    Just think about computer, vcr, cars, house, etc, eventually over time as demand increase the product quality gets better.

    Things don't get better if the demand isn't there.


    Jim Nance wrote on August 20, 2008 12:29 PM: Solar One is a new solar thermal plant southwest of Las Vegas.

    Even with a ton of tax credits, it cranks out energy that is charging at 240% times the current market price.

    We should put more money in R & D and wait until the technology matures before causing a large utility bill increase on consumers.


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