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Thursday, July 14, 2011

Why cleantech can't afford to ignore Washington, D.C.

Political trends swing like a pendulum with ever-faster changes of direction. Last July, a price on carbon – at least in the electricity sector – still seemed like a possibility. The phrase “comprehensive climate and energy legislation” was still on the tip of our tongues. Compare that to these recent headlines:

House Bill Would Cut Clean Energy and Efficiency Programs by 40 Percent

Obama’s focus on visiting clean-tech companies raises questions

A lot can change in a year. Today, no one thinks comprehensive energy legislation will pass in 2011. Even a Clean Energy Standard (CES), advocated by President Obama only a few months ago has little chance of passage.

And yet as you read this, I am in Washington, D.C., with dozens of clean energy CEOs and senior executives and regional leaders who, like me, believe that our presence in the capital is more important now than ever. So why are we here, if not to advocate for comprehensive legislation? There are multiple reasons.

1. To Educate – It is crucial that we, as an industry, address the misperceptions and lack of understanding about the real growth underway in clean energy, as well as the continuing barriers to global competitiveness. As the above headlines indicate, there have been an increasing number of articles, reports and pronouncements in recent months questioning whether clean energy is actually producing jobs and economic growth. From testimony on The Myth of Green Energy Jobs, to budget votes that would cut more than half of the DOE Energy Efficiency and Renewable Energy (EERE) budget, there is a significant gap in understanding of our industry’s positive trends and of the complexity to develop, commercialize and finance new clean energy solutions. DC is hearing a much louder business voice from outside of our industry expressing concerns about energy costs. And yet, in spite of the lack of federal energy policy, our companies continue to grow, add jobs and bring highly competitive solutions to market. We need to tell our stories, build relationships with our elected officials and create a deeper understanding in DC of the needs and barriers to clean energy growth.

2. The 2012 Budget Battle – With the deficit sucking up so much oxygen inside the beltway, the 2012 budget has become the central battleground for our industry in the short term. Much of the DOE EERE budget, ARPA-E, the Loan Guarantee Program, energy research and many other parts of the DOE budget are at risk. It is critical that we distinguish between sensible spending cuts and reckless disinvestment in our clean economy future. As I have written before, the budget must reflect a coherent long-term investment strategy that prioritizes energy innovation.

3. Specific Policies and Legislative Proposals – While few expect major energy legislation to pass in this session, a wide range of valuable clean energy proposals are in consideration, and our voices are critical to clarifying the need for these policies. Specific proposals to support innovation, renewables, efficiency, capital formation and tax incentives are all being debated. We need to continue to discuss specific policies that would have significant value to accelerate sustainable, economic growth in our industry.
This post is part of the Energy Leaders Forum, a collaboration between the New England Clean Energy Council and Mass High Tech.
In the face of looming budget cuts and with comprehensive legislation nowhere in sight, it may seem that our posture is entirely defensive. But that is not altogether the case. In some ways we are better positioned than ever to tell our story and to make our case. Clean energy companies continue to be formed and to grow. Some have gone public. The cost of renewables continues to fall, and energy efficiency improvements across the country continue to enhance the productivity of our economy. We are creating jobs and driving economic growth.

With the release on July 13 of a new report by the Brookings Institution titled “Sizing the Clean Economy: A National and Regional Green Jobs Assessment” we now have better data to back up our claims. According to Brookings’ data, the clean economy employs 2.7 million workers, more than the fossil fuel industry or bioscience. Moreover, energy-related sub-segments of the clean economy have grown at a blistering pace.

But this data cannot speak by itself. To give it voice we must couple it with the stories of entrepreneurship and growth which we in the New England cleantech sector are all familiar. That it is why we have shown up in force in D.C.: to tell our stories, to promote our successes and to share our challenges in the service of building our clean energy economy. It’s also why we plan to continue this dialog on an ongoing basis in our region, with colleagues across the country, and with our elected representatives in D.C.


Energy Leaders Forum responses

Kevin Doyle, Green Economy, New England Clean Energy Council Workforce Development Committee Co-Chair

Peter’s comments are right on the mark. There has never been a more important time for us to show up in person in Washington. At a time when other industries are stagnant or shedding jobs, we are adding people to private sector payrolls. At a time when energy costs are rising, we have efficiency strategies, technologies and businesses to reduce them, saving billions of dollars. At a time when the negative impacts of climate change are more and more evident, we have real solutions to offer. Creating jobs, saving money, protecting people and the natural world. The current moment may be difficult, but our story is compelling and we *do* have advocates in Congress. We need to support them and give them the ammunition they need to support us. See you in D.C.


Mitch Tyson, Tyson Associates, New England Clean Energy Council Co-Founder

If you think it’s hot in Massachusetts, this week it’s really really hot in D.C.! Why have over 100 clean energy executives followed Peter’s call to come to D.C. and tell our stories (in the middle of a heat wave)? Because advocates of conventional energy resources aren’t taking a vacation. The federal government isn’t going to help our industry unless they understand what we are doing and the success we are achieving. And those that are concerned only about short-term energy costs are willing to sacrifice the economic and national security benefits of clean energy. As Peter says, even without the prospects of sweeping national energy policy, we need to lay the foundation for future policies and to prevent the rollback of the progress we have achieved so far. So while the extreme heat and humidity melt us and the debt ceiling debate rages, we’re going to tell our nation’s representatives about the progress we’re making in New England. And then a cool dip in the ocean would be nice!


Raphael Herz, Chairman of the Renewable Energy & Efficiency Business Association

Thanks to Peter and his team for the yeoman’s work to advocate for the New England cleantech community!

Advocacy has to happen continuously – when times are tough, advocacy to make sure the programs and funding critical to sustained growth are not needlessly traded away, and when times are good, to make sure that programs and funding are on track to an increased rate-of-change within industry.

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