A round-up of political and public policy news impacting energy from CEN Editors

>> GOVERNORS URGE FAST ACTION ON ENERGY POLICY

WASHINGTON D.C. - In a letter to President-elect Barack Obama, Western governors are urging the new administration to move quickly in adopting and implementing a national energy plan that would transform the country’s energy infrastructure and economy while reducing greenhouse gas emissions.

The 19 governors from both political parties are calling for near-zero greenhouse gas emissions from new coal-fired electricity generation in 10 years and from existing generation no later than 2030. The governors said a national energy policy must promote energy efficiency and reduce greenhouse gas emissions on a scale necessary to contribute to climate stabilization.

Utah Governor Jon M. Huntsman, Jr., chairman of the Western Governors’ Association, and Montana Governor Brian Schweitzer, vice chairman, discussed the association’s recommendations with John Podesta, co-chair of Obama transition team.

“The transformation we are talking about is broad based and will require new policies, incentives, market mechanisms and private-public partnerships to be in place by the end of next year,” said Huntsman, a Republican. “We plan to work with the new administration and Congress in addressing the multitude of energy challenges ahead.”

The governors’ letter outlines policies and incentives that would help states and the country move more quickly to develop clean and renewable energy resources that include wind, solar, biomass, geothermal, hydro and fossil fuels with
carbon capture and storage.

“Western states are the country’s energy breadbasket, but energy
efficiency has also got to play a much bigger role,” said
Schweitzer, a Democrat. “That includes everything from
manufacturing more fuel-efficient vehicles to changing
regulatory structures so they reward utilities for achieving
reduced energy usage among their customers.”

>> RENEWABLE ENERGY KEY TOPIC DURING RITTER’S LATEST TRADE MISSION

DENVER - Fresh from his recent Asian trade mission to Japan and
China, Gov. Ritter said a group of about 40 Colorado business,
civic and education leaders drew interest in promoting
Colorado’s clean energy technology, bioscience research and
tourism during the trip this month.

No major deal were announced - at least for now - but Ritter
told reporters  that several Asian businesses expressed interest
in expanding manufacturing facilities to Colorado. Specifics
were not divulged.

According to the Governor, Colorado’s advancements in renewable
energy were of considerable interest for leaders in China, which
has abundant natural resources but heavy pollution due to its
large population and increased industrialization.

“Every time renewable energy came up the lights went on on the
other side of the table,” said Don Elliman, executive director
of the Colorado Office of Economic Development and International
Trade.

During the trip, members of the Colorado Renewable Energy
Collaboratory met with representatives of Asian renewable energy
companies, investors, university researchers and government
laboratories.

Ritter participated in signing four memorandums of
understandings between Colorado State University and Asian
institutes to develop joint scientific ventures and exchanges.
He called his recent economic-development mission to Japan and
China “a huge success in terms of our short-term and long-term
goals.”

>> OBAMA SELECTS CAP-AND-TRADE EXPERT TO LEAD OMB

CHICAGO - The appointment of Peter Orszag, 40, to be the top
White House budget writer may have flown under the radar for
most, but it is another clear indication that addressing climate
change will be an integral part of the new administration’s
energy policy.

Orszag is a climate change expert and he worked on global
warming issues during a nearly two-year stint atop the
Congressional Budget Office. He resigned that job last week to
start the Senate confirmation process that would make him the
new director of the Office of Management and Budget.

>> ENERGY ISSUES IN PLAY FOR STATEHOUSE FACING TOUGH ECONOMY

DENVER - Colorado’s legislative leadership convened the first-ever
meeting of the Committee on Job Creation and Economic Growth
last week to show that state leaders also will do their part to
mend the broken economy.

The bipartisan, 10-member committee will meet five more times
before the start of the legislative session in January.

House Speaker-elect Terrance Carroll, D-Denver, said the
committee should focus on four main tasks: creating new jobs by
helping small businesses and nonprofits, building new
infrastructure, promoting the “new energy economy” and looking
at ways to create job growth in rural communities.

So far, Colorado has outperformed other states during the
economic downturn, posting 26 straight months of economic
growth. However, analysts from the nonpartisan Colorado
Legislative Council say rapidly deteriorating national
conditions are beginning to hit home.

“It’s kind of like a tractor beam,” said Todd Herreid, the chief
economist for the Colorado Legislative Council. “We’re getting
pulled inside the spaceship.”

A recent report from the Colorado Department of Labor and
Employment showed a loss of 10,000 jobs in Colorado in October
alone.

However, given the scope of the national economy as compared to
Colorado’s — the Legislature’s General Fund contains around $7.5
billion for spending annually, while the federal bailout of
financial institutions alone already has topped $1 trillion —
it’s questionable whether the Legislature can do much all by
itself.

“You have very limited resources to work with,” warned Mike
Mauer, an economist for the Legislative Council, cautioning
that, unlike Congress, the Legislature is not empowered to go
into debt. “You’re in a situation where you have to cut the
budget while you’re doing these other things.”

Still, Colorado legislators want to do something, and, at the
first meeting, several options emerged. One Democratic option
was to cut red tape and accelerate projects that already have
money set aside for them. Both Sen. Gail Schwartz, D-Snowmass,
the committee’s chair, and Rep. Joe Rice, D-Littleton, the
vice-chair, support that approach.

In addition, Rep. Buffie McFadyen, D-Pueblo West, emphasized
that Colorado needs to lobby furiously for funds from the
upcoming federal jobs-growth program, which Obama says he will
implement when he comes into office. The president-elect
promises to produce 2.5 million new jobs by 2011, largely
through government efforts to create “green” jobs and rebuild
infrastructure.

Republicans emphasized the need to remove restrictions on the
oil and gas industries. Those industries have seen a growth of
12.8 percent from 2007 to 2008. That’s a 9 percent higher growth
rate than any other industry in Colorado. However, Colorado’s
fossil-fuel industry still accounts for only 28,000 jobs, a
small percentage of jobs statewide.

“I would also like us to consider the fact that government
rarely creates jobs,” said Rep. David Balmer, R-Centennial. “I
think we need to look at areas in which the government is
causing jobs to be lost.”

>> FED REPRESENTATIVES REASSURE MOFFAT COUNTY ON COAL

Recent concern over the role of coal in the incoming Obama
Administration’s energy policy has been voice by the Moffatt
County Commission and Craig City Council. In response, Democrats
John Salazar — Moffat County’s U.S. representative —
senator-elect Mark Udall and Sen. Ken Salazar said they support
coal and all other domestic energy resources as a means to
achieve energy independence.

The Moffatt County Comission is worried that aggressive funding
of government programs for renewable energy could cause
traditional fossil fuel industries to suffer. The county is
heavily dependent on the local coal industry, which includes
three nearby mines and the Tri-State power plant. In fact, the
coal industry is is the community’s largest employer and one of
its largest taxpayers.

Each of Moffat County’s three federal legislators have
reiterated their “all of the above” positions. America must
utilize all its resources to meet energy demands and achieve
energy independence.

“Coal is a very important part of becoming energy-independent,”
John Salazar said. He added he wants to “make sure” the federal
government fully funds clean-coal technology initiatives,

His brother — Colorado’s now-senior senator — Ken Salazar shares
many of the same views, said Matt Lee-Ashley, the senator’s
Washington office spokesman.

“If America is going to be serious about reducing its dependence
on foreign energy, coal is going to have to be a big part of the
country’s energy portfolio,” Lee-Ashley said.

Ken Salazar has a track record of supporting energy development,
he added, including advocating for “responsible” offshore oil
exploration and funding clean-coal programs.

At the same time, however, the senator believes a true
all-of-the-above approach includes developing renewables.

“The bottom line is Colorado has about 17,000 natural gas wells
now, and the projections are we will increase that,” Lee-Ashley
said. “Senator Salazar supports that. But, as we reduce our
dependence on foreign oil, we’re going to have to support wind
and solar, as well.