Winning the Future through Energy Efficiency

In his 2011 State of the Union address, President Barack Obama laid out his vision for accelerating the growth of the United States’ clean energy economy.  Faced with what he termed a “Sputnik moment,” the president called for a Clean Energy Standard, increased investment in energy research and development (R&D) programs, doubling total investment in energy efficiency, and related measures that would support energy efficiency. The president proposed to pay for these programs without adding to the national debt by ending certain subsidies for oil, gas and other fossil fuel producers, which totals about $4 billion per year, according to the White House.

A Clean Energy Standard

In order to “win the future” – the theme of the address – the president called for a major increase in Americans’ use of clean energy technology. Specifically, he set a goal of 80 percent of America’s electricity being generated from clean energy sources by 2035.

As to what constitutes “clean energy,” White House fact sheets specify that this will include renewable energy (like wind, solar, biomass and hydroelectricity) and nuclear energy, with partial credit provided for efficient natural gas and clean coal with carbon sequestration. By these standards, America currently sits at 40 percent clean electricity. Thus, the goal calls for a doubling of such clean generation over the next 25 years. It is unclear at this time whether efficiency measures will be a compliance option for the proposed clean energy standard. The Alliance will work hard to make sure efficiency is included, so as to better utilize all available options.

The fact sheets also call for a number of companion efficiency programs to protect against rising energy costs, including stronger appliance standards, tax credits for energy efficiency upgrades, provisions for energy-efficient manufacturing and the Home Star Energy Efficiency Program.

Funding the Apollo Projects of Our Time

Obama issued a challenge to U.S. innovators: “We’re telling America’s scientists and engineers that if they assemble teams of the best minds in their fields, and focus on the hardest problems in clean energy, we’ll fund the Apollo projects of our time.”

According to White House factsheets, the president’s budget request will double funding for energy efficiency R&D in the industrial, vehicle and building sectors. This investment in America’s energy future would be part of an $8 billion budget for clean technology research, development and deployment – a one-third increase over previous funding, paid for by cutting fossil fuel subsidies.

Funding for the Advanced Research Projects Agency – Energy (ARPA-E) program also would double under the proposed budget. Modeled on the highly successful Defense Advanced Research Projects Agency (DARPA), ARPA-E supports transformational energy technology research. Such cutting-edge R&D would advance American innovation and competitiveness while yielding technologies that enhance energy security and reduce dependence on foreign oil, improve energy efficiency across all sectors of the economy and reduce adverse environmental impacts.

The new budget request also would double the number of Energy Innovation Hubs from three to six, which bring together the best minds in the United States to focus on targeted research areas with important applications. One existing research hub is dedicated to building efficiency. Focus areas for the new hubs have not been declared, however they may include vehicle or transportation efficiency.

Efficient Transportation

Taking the global lead on transportation, Obama challenged the United States to become the first country with one million electric cars on the road by 2015. This goal was initially announced by the president in 2008. The White House fact sheet claims that one million advanced technology vehicles on the road would put us on the path for a reduction in oil consumption of 785 million barrels by 2020. To meet this goal, the new budget would support electric vehicle manufacturing through consumer rebates, R&D, and competitive programs to promote electric car infrastructure.

Following China’s lead, Obama also pledged additional support of high-speed rail development across the country. The president would like 80 percent of Americans to have convenient access to high-speed rail networks within 25 years. High speed rail can cut travel time in half compared to driving a car, and uses less energy per passenger than driving or flying.

Super Computers Increase Nuclear Efficiency

To highlight the success of efficiency investment, Obama alluded to a program at Oak Ridge National Laboratory (an Alliance Associate) in which supercomputers were used to increase efficiency at nuclear power plants. In a town hall meeting the day following the State of the Union, Secretary of Energy Steven Chu expounded on this program: advanced computing allows existing nuclear power plants to more efficiently capture the energy contained in nuclear fuel, resulting in increased power output and reduced downtime for plant refueling.  The increased power generation is the equivalent of adding seven or eight new reactors to the United States’ civilian reactor fleet without the cost, time and effort of actual construction.

The president has outlined a bold vision and tangible program for advancing American innovation and economic competitiveness through investment in clean energy technologies.  As Americans now look to members of Congress to rise to the challenge and achieve this end, there is no doubt energy efficiency will play a critical role in winning the United States’ energy future.