Renewable Energy Poised For Growth: Report Calls For Policies To Help Spur Development And Deployment Of New Technologies
by an EN-Genius Network special correspondent

Renewable energy can help the US meet the challenges of climate change, degraded air quality, and dependence on foreign oil -- and the industry is poised for tremendous growth -- according to a new report by the Worldwatch Institute and the Center for American Progress.

"Many of the new technologies that harness renewables are, or soon will be, economically competitive with fossil fuels," the report concludes. "Dynamic growth rates are driving down costs and spurring rapid advances in technologies. With oil prices soaring, the security risks of petroleum dependence growing, and the environmental costs of today's fuels becoming more apparent, the country faces compelling reasons to put these technologies to use on a larger scale."

Among the signs of growth in the past six years:

• global wind energy generation has more than tripled
• solar cell production has risen six-fold
• production of fuel ethanol from crops have more than doubled
• biodiesel production has shot up nearly 400%

In addition, annual worldwide investment in new renewable energy projects and technologies continues to grow, with total cumulative investment reaching nearly $180 billion since 1995. Yet, "despite strong public support and rapidly rising interest in renewable technologies, the US has not kept up with the rapid growth in the sector globally over the past decade," the authors warn. "If the US is to join the world leaders in renewable energy it will need world-class energy policies based on a sustained and consistent policy framework at the local, state, and national levels."

Policy recommendations include:

• establishing a consistent, predictable, and long-term framework of rules and incentives
• creating performance-based incentives over time that are linked to the amount of energy generated or saved, rather than the cost of installation
• incorporating external costs and benefits into energy pricing, especially the introduction of greenhouse gas cap-and-trade
• reducing subsidies for fossil fuels
• enacting complementary policies for energy efficiency, including stronger building codes, increased vehicle fuel economy standards, and advanced efficiency standards for appliances
  involving stakeholders at all levels, from policy design to project ownership
• promoting regional and international cooperation
• establishing clear and long-term goals and targets for renewable energy use and energy efficiency gains, allowing state and local governments to establish more ambitious targets than federal requirements
• providing long-term, low interest loans and bonds to address high upfront costs and reduce risk
• using government purchasing power together with the private sector to build large, aggregated markets for renewable energy
• ensuring fair market access and pricing for renewable electricity
• implementing site regulations to address environmental, aesthetic, and other concerns and to reduce uncertainty for stakeholders
• enacting high-performance building codes to improve efficiency and increase the share of energy provided from decentralized renewable sources
• requiring most new vehicles sold to be flexible-fuel vehicles
• establishing quotas for biofuels that gradually increase their share of transport fuel while increasing the share derived from advanced techniques and sources
• ensuring the creation of fueling infrastructure

Untapped Potential

The potential exists for a surge in renewable energy development in the US, according to the report, American Energy: The Renewable Path to Energy Security. "America boasts some of the world's best renewable energy resources, which have the potential to meet a rising and significant share of the nation's energy demand. Renewable energy creates more jobs per unit of energy produced and per dollar spent than fossil fuel technologies do." In addition:

• one-fourth of the US land area has winds powerful enough to generate electricity as cheaply as natural gas and coal
• the solar resources of just seven southwest states could provide ten times the current electric generating capacityall but four US states now have incentives in place to promote renewable energy
• California gets 31% of its electricity from renewable resources
• the US led the world in wind energy installations in 2005
• Iowa produces enough ethanol to meet half of its gasoline requirements

The authors' vision of a US economy powered by renewable energy includes:

• a more decentralized and efficient energy economy, allowing homes and businesses to meet many of their own energy needs
• improved security resulting from a reduced dependence on Persian Gulf oil
• lower trade deficits as oil imports decline
• cleaner air, with reduced rates of asthma and other respiratory diseases and associated loss of life
• declining emissions of global warming gases, with reduced threats to cities and coastal properties from rising sea level and to agriculture from drought and higher temperatures
• hundreds of thousands of new jobs created in the agricultural, manufacturing, and service companies that would emerge to meet the demand for renewable energy
• revitalized rural communities, where much of the renewable energy can be harnessed

Call For Energy Efficiency

In addition to wider use of renewables, the report notes, "Improving energy efficiency represents the most immediate and often the most cost-effective way to reduce oil dependence, improve energy security, and reduce the health and environmental impact of our energy system. By reducing the total energy requirements of the US economy, improved energy efficiency will make increased reliance on renewable energy sources more practical and affordable."

http://americanenergynow.org/AmericanEnergy.pdf

The goals of big business and the Federal Government are not always in alignment, but national RoHS and WEEE laws that mirror the European Union's directives are in the best interest of the US electronics industry -- for manufacturers, distributors and end users alike. A look at the current landscape reveals why.

With no national RoHS-style legislation yet proposed (or likely even discussed), California has gone ahead and enacted its own rule (SB20/SB50).

California's RoHS rule is not as comprehensive as the EU directive, doesn't take effect until January 1, 2007, and addresses only 4 of the 6 substances that the EU RoHS addresses (cadmium, lead, mercury and hexavalent chromium). It also only applies to a select group of products sold through California retailers (laptops, CRTs and TVs with screens greater than 4 inches in size). The scope of SB20/SB50, however, is sure to expand over time.

State rules aimed at restricting mercury in consumer products are appearing in such as Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and New York. These states have established partnerships such as the Interstate Mercury Education and Reduction Clearinghouse (IMERC).

Why are state RoHS and mercury content laws a problem? Increasing and varying state-by-state rules are already causing problems for electronic manufacturers and distributors. The cost of tracking and meeting varying state requirements both now and in the future is almost too staggering to contemplate. Are we going to wait until we have 50 state laws with 50 flavors before we enact a uniform national standard for our industry? Or worse, are we going to wait for major cities to begin enacting their own individual laws?

We're currently out-of-step with other major countries in regard to electronic product rules. Like it or not, the EU is now the worldwide driver of rules affecting our industry. EU RoHS and WEEE (Waste from Electrical and Electronic Equipment) rules are just the beginning. The EU's Energy-using Products (EuP) and Registration Directive, the End-of-Life Vehicle (ELV) Directive, the EU Packaging Directive, and the Registration, Evaluation and Authorization of Chemicals (REACH) directives are also a concern and will have a dramatic impact on our industry.

China and South Korea have recognized the need for national RoHS rules and are implementing regulations similar to those in place in the EU. Both countries want to ensure that their manufacturers meet international standards and are able to continue exporting electronic goods to the EU and the rest of the world. China already manufactures about 25% of the electronic devices imported into the EU. The competitive stakes are high for China and South Korea. The competitive stakes are high for the US as well.

Enacting national RoHS and WEEE rules is an environmentally responsible thing to do. Computers, TVs, and cell phones contain lead, mercury, cadmium, and hexavalent chromium. They also have a shorter life span than ever before. In 1997 the average life span of a computer was 4-6 years; in 2005, it was less than 2 years. Ultimately these products wind up in landfills where the hazardous substances in them can threaten the environment. National RoHS and WEEE laws will provide incentives for removing these substances from new products, and for properly disposing of existing products.

The Government Accountability Office (GAO) estimates that over 100 million computers, monitors and TVs become obsolete each year, and the number is growing. Think about how many TVs will be disposed of when flat screen models dip below $1000. Only a handful of end-of-life TVs and other electronic devices are currently being recycled. The others are being sent to landfills where adverse health and environmental consequences are sure to arise. This is not the kind of press the electronics industry wants or needs.

The stated goal of the EU's WEEE directive is to limit landfill disposal and encourage the recycling of electronic waste (e-waste). On our side of the pond, California, Maine, Maryland and Washington have already enacted WEEE-style laws. Each has taken its own unique approach.

California makes consumers pay an upfront state fee or tax when purchasing an electronic device. The state uses the money collected to pay for the collection, recycling and disposal of end-of-life electronic devices. Maine, Maryland and Washington make it the manufacturers responsibility to take-back and dispose of the electronic devices they sell. Manufacturers and distributors must track and kept abreast of the state-by-state differences in order to assure compliance.

There is pressure building for the government to enact a uniform national e-waste (or WEEE) law. Congress recently had the Government Accountability Office (GAO) conduct hearings and study the e-waste problem. Their report, Strengthening the Role of the Federal Government in Encouraging Recycling and Reuse, was issued in November 2005. The report acknowledged the burden that patchwork state requirements were placing on manufacturers, retailers and recyclers. Their report recommended that a national WEEE-style rule be written.

Thanks in large part to the GAO study, the e-waste problem is now widely recognized on both state and Federal levels. A national e-waste law is being currently considered and is probably not far off. Ironically, nothing comparable (with the exception of California) has been undertaken to restrict the harmful substances present in electronic products in the first place -- during the design phase.

It is likely that before there will be RoHS or WEEE Federal legislation, there first needs to be support and consensus from our own industry.