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Video



Onshore Renewable Energy Workshop - Part 1


February 9, 2011


Video will appear here.


Transcript

GOOD MORNING TO ALL OF YOU. [APPLAUSE] AND WELCOME HERE TO THE STEWART LEE UDALL BUILDING AND THE SIDNEY YATES AUDITORIUM. ON BEHALF OF THE DEPARTMENT OF ENERGY AND SECRETARY CHU, THE DEPARTMENT OF AGRICULTURE AND SECRETARY VILSACK AND MYSELF AS SECRETARY OF INTERIOR, WE WELCOME YOU TO THIS RENEWABLE ENERGY CONFERENCE . WE WANT TO LOOK BACK AT WHAT WE HAVE DONE FOR THE FIRST SEVERAL YEARS OF OUR TIME IN THIS ADMINISTRATION. WE ALSO WANT TO LOOK AHEAD WITH RESPECT TO WHAT THAT ROAD MAP SHOULD BE IN THE YEARS MOVING FORWARD. AT THE OUTSET I WANT TO ACKNOWLEDGE ALL OF THE PEOPLE WHO WORKED SO HARD IN PULLING THIS CONFERENCE TOGETHER, FROM ALL THREE DEPARTMENTS AS WELL AS THE STAFF FROM THE WHITE HOUSE. I WANT TO THANK ALL OF THE STAKEHOLDERS WHO ARE HERE, THE CEOS FROM THE PRIVATE SECTOR COMPANIES -- SOLAR, WIND, AND GEOTHERMAL. THE LEADERS FROM THE -- CONSERVATION COMMUNITY. I SEE MILL MEADOWS FROM THE WILDERNESS SOCIETY AND SOME OF THE OTHERS WHO ARE HERE. I APPRECIATE ALL OF YOU FOR SPENDING TIME WITH US TODAY AS WE FIGURE OUT A WAY OF DETERMINING HOW WE WILL MOVE FORWARD TO WIN THE FUTURE, AS PRESIDENT OBAMA SAID, FOR THE UNITED STATES OF AMERICA. THE PRESIDENTíS VISION ON ENERGY HAS BEEN CLEAR FROM DAY ONE, THAT IS WE NEED TO HAVE A COMPREHENSIVE ENERGY PLAN. THE UNDERPINNINGS OF THAT EFFORT ARE GROUNDED IN THE PRINCIPLES WHICH CONTINUE WITH THIS ADMINISTRATION AND ARE ESSENTIAL FOR THE FUTURE OF AMERICA. THEY ARE ABOUT NATIONAL SECURITY FOR THE UNITED STATES, THEY ARE ABOUT ECONOMIC SECURITY SO WE CAN CREATE JOBS HERE IN OUR COUNTRY, AND THEY ARE ABOUT ENVIRONMENTAL SECURITY SO THAT WE CAN MAKE SURE WE ARE PROTECTING THE ENVIRONMENT AND DEALING WITH THE WARMING OF OUR PLANET. SO AS THE PRESIDENT SAID IN HIS STATE OF THE UNION SPEECH JUST A FEW DAYS AGO, THE CLEAN ENERGY ECONOMY IS SOMETHING WHICH WE BELIEVE IN STRONGLY AND WE HAVE BEEN MAKING HAPPEN AND WILL CONTINUE TO MAKE HAPPEN. THE PRESIDENT SAID THAT WE WOULD DOUBLE THE AMOUNT OF CLEAN ENERGY ELECTRICITY IN 25 YEARS, AND WE ARE COMMITTED TO DOING THAT. MUCH OF WHAT YOU WILL HEAR TODAY AND TOMORROW OF THE WAYS IN WHICH WE WILL CONTRIBUTE TO THAT EFFORT. NUMBER TWO, WE WILL DRAW ON A WIDE RANGE OF CLEAN ENERGY RESOURCES, AND THAT INCLUDES RENEWABLES, THAT INCLUDES NUCLEAR, THAT INCLUDES EFFICIENT NATURAL GAS AND COAL WITH CARBON CAPTURE SEQUESTRATION. ALL OF THAT WILL COUNT TOWARD THAT GOAL. IT ALSO MEANS THAT WE WILL DEPLOY AND ASSIST THE PRIVATE SECTOR IN DEPLOYING THE CAPITAL TO SUSTAIN IT AND TO CREATE JOBS. WE HAVE SOME OF THE LARGEST RENEWABLE ENERGY COMPANIES IN THE WORLD WHO ARE REPRESENTED HERE TODAY. THEY HAVE THE CAPITAL THAT THEY ARE READY TO INVEST IN CLEAN ENERGY PROJECTS IN AMERICA. AND WE WILL DRIVE INNOVATION IN CLEAN ENERGY TECHNOLOGY -- CERTAINLY WITH A NOBEL LAUREATE IN PHYSICS SITTING TO MY LEFT, WE KNOW THAT THE DEPARTMENT OF ENERGY AND HIS SCIENTISTS AND THE REST OF US IN THE UNITED STATES ARE VERY MUCH INVOLVED IN TRYING TO DRIVE THAT INNOVATION ON CLEAN ENERGY TECHNOLOGIES. SO THATíS WHERE THE PRESIDENT WANTS TO GO. I WANT TO JUST VERY QUICKLY MAKE A COMMENT ABOUT SOME OF THE EFFORTS THAT WE HAVE ALREADY UNDERTAKEN, WHICH I THINK HAVE BEEN HISTORIC AT LEAST FOR THIS DEPARTMENT. WE REALLY OPENED UP A WHOLE NEW CHAPTER AND A WHOLE NEW BEGINNING FOR THE UNITED STATES OF AMERICA. WE AS A DEPARTMENT, THROUGH THE BUREAU OF LAND MANAGEMENT, THE NATIONAL WILDLIFE REFUGE SYSTEM, AND THE NATIONAL PARKS, MANAGE ABOUT 20% OF THE NATION'S LAND MASS ON BEHALF OF THE PEOPLE OF THIS COUNTRY. WE ALSO MANAGE 1.75 BILLION ACRES OF OCEANS ON THE OUTER CONTINENTAL SHELF OF THE UNITED STATES OF AMERICA. AND IN THE HISTORY OF OUR COUNTRY THOSE LANDS AND THOSE OCEANS WERE NEVER REALLY HARNESSED FOR THEIR POTENTIAL FOR RENEWABLE ENERGY. FROM DAY ONE, AT THE DIRECTION OF THE PRESIDENT, HERE AT INTERIOR WE HAVE BEEN WORKING CLOSELY WITH THE DEPARTMENT OF ENERGY AND THE DEPARTMENT OF AGRICULTURE TO SEE HOW IT IS THAT WE CAN MANAGE THAT PUBLIC ESTATE TO BE PART OF CREATING THAT CLEAN ENERGY FUTURE. VERY QUICKLY, JUST REVIEWING SOME OF OUR EFFORTS IN THE 2009-2010 TIMEFRAME, AS WE FAST TRACK THOSE PROJECTS TO TRY TO MAKE BELIEVERS OUT OF SKEPTICS, TO TRY TO DEMONSTRATE TO PEOPLE THAT THIS IS NOT ABOUT FICTION BUT IT WAS ABOUT REALITY. WE HAVE BEEN ABLE TO SHOW SOME SUCCESSES. IN 2010 WE PERMITED 12 RENEWABLE ENERGY PROJECTS HERE IN THE UNITED STATES FOR MORE THAN 4,000 MEGAWATTS OF POWER. THATíS ENOUGH POWER TO PROVIDE ELECTRICITY FOR OVER 1.2 MILLION HOMES. IN SOLAR ENERGY ARENA ALONE, IN WHICH BOB ABBEY, STEVE BLACK, GOVERNOR SCHWARZENEGGER, AND SO MANY OTHERS WERE INVOLVED, WE WERE ABLE TO MOVE FORWARD IN HUGE STEPS. WE APPROVED 3,700 MEGAWATTS OF POWER, WHICH IS ENOUGH TO PROVIDE ELECTRICITY TO 1.1 MILLION HOMES. AND WE ALSO WORKED WITH THE DEPARTMENT OF ENERGY AND SECRETARY CHU TO MOVE FORWARD WITH A PROGRAMMATIC ENVIRONMENTAL IMPACT STUDY, WHICH WILL ALLOW US TO DEVELOP SOLAR ENERGY ZONES, THOSE AREAS THAT ARE MOST PROMISING FOR SOLAR DEVELOPMENT ACROSS THE WEST AND 6 DIFFERENT STATES. THE DRAFT PEIS WAS ISSUED IN DECEMBER AND THE COMMENT PERIOD RUNS THROUGH MARCH 17 OF THIS YEAR, SO IN A MONTH WE WILL HAVE A PROGRAMMATIC WAY OF MOVING FORWARD AS WE MOVE FORWARD WITH AN EFFORT THAT IS TRYING TO MAKE SURE THAT RENEWABLE ENERGY PROJECTS GO INTO THE RIGHT PLACES SO THAT WE DECONFLICT THE ISSUES THAT WE SOMETIMES HAVE WITH ENDANGERED SPECIES AND OTHER KINDS OF ISSUES THAT ARE IMPORTANT TO THE MISSION OF THE DEPARTMENT AND TO THE UNITED STATES. AND THIRDLY WITH THE DEPARTMENT OF ENERGY, ALSO IN THE SOLAR ARENA, WE HAVE SET ASIDE 25 SQUARE MILES OF THE FORMER NEVADA TEST SITE WHERE WE ARE PUTTING TOGETHER A SOLAR DEMONSTRATION ZONE, TOGETHER WITH THE DEPARTMENT OF ENERGY. ON THE WIND FRONT -- SOLAR IS OBVIOUSLY IMPORTANT AS WE DO WHAT WE CAN TO CAPTURE THE POWER OF THE SUN -- BUT WE ALSO NEED TO REMEMBER AND KNOW THAT MUCH OF THE RENEWABLE ENERGY THAT IS PRODUCED HERE IN THIS COUNTRY ACTUALLY COMES FROM WIND POWER. AND SO WE SEE GREAT POTENTIAL NOT ONLY IN OUR PUBLIC LANDS ON SHORE BUT ALSO OFFSHORE. WE PERMITTED 29 WINDED DEVELOPMENT PROJECTS FOR APPROXIMATELY 580 MEGAWATTS. WE HAVE MORE PROJECTS UNDER CONSIDERATION FOR 2011. IN OCTOBER OF THIS LAST YEAR WE SIGNED THE FIRST LEASE FOR OFFSHORE WIND WITH THE CAPE WIND LEASE IN MASSACHUSETTS AND JUST THE DAY BEFORE YESTERDAY, SECRETARY CHU AND I IN NORFOLK VIRGINIA, ANNOUNCED A STRATEGIC PLAN FOR THE DEVELOPMENT OF OFFSHORE WIND IN THE ATLANTIC. SO WE EXPECT WE WILL SEE THE FLOWERING OF THE OFFSHORE WIND CAPACITY OFF THE ATLANTIC AND PERHAPS OFF THE GULF AND OTHER STATES THAT HAVE AN INTEREST IN OFFSHORE WIND. GEOTHERMAL IS NOT TO BE LEFT BEHIND. FOR THOSE OF YOU, LIKE BILL KORNZE FROM NEVADA YOU KNOW HOW IMPORTANT GEOTHERMAL IS FOR SOME OF THOSE COMMUNITIES. WE HAVE 530 GEOTHERMAL LEASES WHICH WE HAVE ACTUALLY ISSUED IN THIS DEPARTMENT AND THERE IS ENERGY THAT IS BEING PRODUCED FROM GEOTHERMAL. FINALLY, WE KNOW THAT THE WAY RENEWABLE ENERGY ULTIMATELY WILL SUCCEED OVER TIME IS IF WE HAVE THE CAPACITY TO TAKE THE RENEWABLE ENERGY FROM WHERE IT IS PRODUCED TO THE PLACE WHERE IT IS CONSUMED. AND SO, WITH MY TWO COLLEAGUES HERE ON THE STAGE AS WELL AS WITH JOHN WELLINGHOFF FROM FERC AND OTHERS, WE HAVE BEEN PUTTING TOGETHER A TRANSMISSION EFFORT WHICH HAS PRODUCED SOME RESULTS HERE AT INTERIOR. IN 2009 WE PERMITTED 475 MILES OF TRANSMISSION LINES ACROSS NEVADA, IDAHO, AND CALIFORNIA AND WE HAVE SOME OTHER TRANSMISSION PROJECTS THAT WE ARE WORKING ON. SO, OUR EFFORTS HERE TODAY AND TOMORROW IN THIS CONFERENCE REALLY ARE TO LOOK AT HOW WE LEARN FROM THE EFFORTS OF THE LAST TWO YEARS AND CREATE AN EVEN BETTER ROAD MAP FOR THE FUTURE. THE CLEAN ENERGY FUTURE FOR AMERICA IS HERE TO STAY UNDER THIS PRESIDENT. IT IS AN IMPERATIVE OF OUR NATION; THE NATION THAT WINS THE CLEAN ENERGY RACE REALLY IS THE NATION THAT WILL WIN THE FUTURE. SO THAT IS WHY THE PRESIDENT AND HIS CABINET HAVE PUT A TREMENDOUS AMOUNT OF ENERGY INTO THIS EFFORT. IT IS MY HONOR TO BE JOINED ON THIS CABINET BY TWO GREAT PEOPLE. THE FIRST IS THE SECRETARY CHU, WHO CAME FROM ONE OF THE SMARTEST AND MOST IMPORTANT LABS IN THE WORLD AND WAS WHISKED INTO THIS ADMINISTRATION. HE AND I HAVE WORKED ON COUNTLESS THINGS OVER THE LAST TWO YEARS, INCLUDING DEALING WITH MATTERS RELATING TO OIL AND GAS IN THE GULF OF MEXICO AND A DEEPWATER HORIZON. I CAN TELL YOU, THERE IS NO BETTER COLLEAGUE AND NO ONE WHO THE PRESIDENT WOULD BE MORE FORTUNATE TO HAVE AS SECRETARY OF THE DEPARTMENT OF ENERGY. AND TO HIS LEFT, SECRETARY TOM VILSACK FROM THE TOWN OF MT. PLEASANT, IOWA, WHICH IS HIS ADOPTED TOWN WHERE HE GREW UP -- AS MAYOR AND WENT ON TO BECOME GOVERNOR AND DID SOME HISTORIC THINGS AROUND THE COUNTRY. HE HAS BEEN A STRONG VOICE FOR RURAL AMERICA AND AGRICULTURE FROM DAY ONE. AND I AM SURE, AS WE WILL TELL YOU IN HIS REMARKS, WHETHER ITíS IN A CABINET MEETING WITH THE PRESIDENT OR WHETHER ITíS AN AUDIENCE THAT WE TALKED TO IN PLACES LIKE SCOTTSBLUFF, NEBRASKA AND AROUND THE COUNTRY, HE KNOWS HOW INEXTRICABLY TIED TO THE FUTURE OF RURAL AMERICA IS TO THE CLEAN ENERGY ECONOMY AND HOW THE CLEAN ENERGY ECONOMY IS PROVIDING GREAT OPPORTUNITIES TO -- WHAT WAS ONCE CALLED, WHEN I WAS IN THE U.S. SENATE, THE FORGOTTEN AMERICA. TOM VILSAK HAS PUT THAT FORGOTTEN AMERICA BACK ON THE FRONT PAGE. SO HELP ME WELCOME SECRETARY OF ENERGY STEVEN CHU. [APPLAUSE]

THANK YOU, SECRETARY SALAZAR AND I WOULD LIKE TO ECHO HIS FEELINGS. IT IS REALLY A DELIGHT TO BE SERVING ON A CABINET WITH BOTH SECRETARY SALAZAR AND SECRETARY VILSACK. LET ME START BY REITERATING WHAT SECRETARY SALAZAR SAID ABOUT CLEAN ENERGY RATES. THE WORLD GOING INTO THE FUTURE WILL NEED MORE AND MORE OF THOSE TECHNOLOGIES THAT CAN DEVELOP, THAT CAN GENERATE CLEAN ENERGY. AND THE COUNTRIES THAT DEVELOP THOSE TECHNOLOGIES WILL BE THE COUNTRIES THAT WILL BE EXPORTING THOSE TECHNOLOGIES. IN ADDITION TO THAT, THE COUNTRIES THAT DEVELOP THE MOST ENERGY-EFFICIENT INFRASTRUCTURE IS WOULD BE PUT IN A VERY COMPETITIVE PLACE. AND SO WE ARE WORKING TO UNLEASH THIS CLEAN ENERGY INITIATIVE THAT PRESIDENT OBAMA TALKED ABOUT. IT IS GOING TO OCCUR AT SEVERAL LEVELS. I THINK; I KNOW SECRETARY VILSACK WILL TALK ABOUT HOW IT CAN CREATE TREMENDOUS WEALTH IN RURAL AMERICA AND ALSO TO REMIND YOU THAT RURAL AMERICA IS ONE OF THE GENERATORS OF A LARGE FRACTION OF OUR EXPORTS AND OUR ECONOMIC PROSPERITY. THAT IS ONE EXAMPLE. BUT WHAT IS THE DEPARTMENT OF ENERGY DOING? WELL THERE ARE SEVERAL THINGS. FIRST, WE ARE, WITH THE TREASURY DEPARTMENT, HELPING TO DEPLOY RENEWABLE CLEAN ENERGY PROJECTS. THERE IS A 1603 PROGRAM WHICH SAYS THAT IF YOU CAN ERECT A SOLAR FARM, A WIND FARM, SOMETHING OF THAT NATURE, THROW ON THE SWITCH, INSTEAD OF GIVING TAX CREDITS OVER EXTENDED PERIODS OF TIME, SAY 10 YEARS, AS SOON AS YOU THROW ON THE SWITCH YOU CAN GET YOUR TAX CREDIT IN ONE SHOT. AND THAT HAS BEEN WILDLY SUCCESSFUL. IT HAS PROVIDED $5.8 BILLION OF SUPPORT FOR MORE THAN 4,700 PROJECTS. IN MANY INSTANCES, THE DEVELOPERS TURN RIGHT AROUND WITH THAT MONEY AND USE THAT AS THE DOWN PAYMENT FOR THE NEXT SOLAR AND WIND PROJECT. AND THIS IS WHY WE WORK WITH CONGRESS TO INCLUDE THE EXTENSION OF THIS VERY SUCCESSFUL PROGRAM, WHICH PASSED IN DECEMBER. THIS IS GOING TO CREATE IMMEDIATELY NEW JOBS AND GROW OUR DOMESTIC RENEWABLE INDUSTRY. WE ALSO HAVE BEEN ADMINISTERING A LOAN GUARANTEE PROGRAM. SO FAR THE LOAN GUARANTEE PROGRAM HAS COMMITTED MORE THAN $26 BILLION IN LOANS AND LOAN GUARANTEES TO SUPPORT 23 ENERGY PROJECTS. AND THERE'S AN ESTIMATE THESE PROJECTS ARE EXPECTED TO CREATE OR SAVE MORE THAN 58,000 JOBS. WE ARE ACCELERATING THE LOAN GUARANTEE PROGRAM EVEN MORE, BUT THE NUMBER OF SOLAR PROJECTS PERMITTED LAST YEAR THROUGH THE DEPARTMENT OF THE INTERIOR FAST-TRACK WAS ALSO SOMETHING WHERE WE COOPERATED. JUST AS AN EXAMPLE, THE LOAN GUARANTEE PROGRAM ISSUED A LOAN OF $1.4 BILLION TO A COMPANY CALLED BRIGHTSOURCE FOR 400 MEGAWATT SOLAR POWER STATION. FINALLY, IN MEETING THE PRESIDENT'S GOALS THAT HE TALKED ABOUT IN THE STATE OF THE UNION ADDRESS BY 2035, THAT WE COULD BE GENERATING EIGHTY PERCENT OF OUR ENERGY AS CLEAN ENERGY, WHERE GAS IS GIVEN A HALF CREDIT FOR CLEAN ENERGY. SO JUST TO CALIBRATE THINGS, IF WE LOOK AT SOLAR, WIND, HYDRO, AND NUCLEAR, WE ARE OVER 30 PERCENT CLEAN ENERGY NOW. IF YOU THROW IN NATURAL GAS AND GIVE IT HALF CREDIT, WE ARE AT ABOUT 40 PERCENT. SO TO GO FROM 40 TO 80 PERCENT IS AN AMBITIOUS BUT WE BELIEVE AN ACHIEVABLE GOAL. IT WILL CREATE A MARKET SO U.S. MANUFACTURERS CAN SAY, IF I BUILD THESE THINGS, IF I INVENT THESE THINGS, THERE WILL BE A MARKET THATíS SELLING THEM. BECAUSE OF THE TIMESCALE OF 2035, WE ARE ALSO LOOKING FOR A ROBUST R&D PROGRAM TO ACTUALLY BRING THESE THINGS TO FRUITION. I WILL GIVE YOU A FEW EXAMPLES. IN SOLAR POWER, RIGHT NOW IF YOU WANT TO INSTALL SOLAR POWER AT UTILITY SCALE, SEVERAL MEGAWATTS OR ABOVE, THE COST ROUGHLY, THE FULL COST OF INSTALLATION AND EVERYTHING ELSE, PERMITTING, THE LAND, YOU NAME IT, IS ROUGHLY $4 PER WATT. NOW $4 PER WATT, THAT POWER IS STILL CONSIDERABLY MORE THAN ENERGY GENERATED BY FOSSIL FUELS. WITHIN THE DECADE INDUSTRY BELIEVES IT WILL CUT THAT COST IN HALF. WE HAVE LOOKED HARD AT THIS AND SAID WHAT CAN WE DO TO CUT THIS COST NOT IN HALF, NOT TO DECREASE THE COST BY 50 PERCENT, BUT TO DECREASE THE COST BY 75 PERCENT. SOMEWHERE BETWEEN 60, 75 PERCENT, THERE IS A MAGIC THAT WILL OCCUR, AND THE MAGIC IS IT BECOMES COST COMPETITIVE WITH ANY FORM OF ENERGY. WHEN THAT HAPPENS WITHOUT SUBSIDIES, IT IS GOING TO SHOOT ALL OVER THE COUNTRY AND ALL OVER THE WORLD. SO WE LOOKED VERY HARD AT ALL OF THOSE TECHNOLOGIES THAT WE SEE BEING DEVELOPED AND HOW WE CAN ACCELERATE THAT TO BRING DOWN COSTS. WE ARE DOING SIMILAR STUDIES IN WIND, CLEAN COAL WITH CARBON CAPTURE SEQUESTRATION, TO SAY WHAT IS THAT WE COULD DO TO BRING THE COST DOWN WHERE PEOPLE STOP THINKING ABOUT WHERE IS MY SUBSIDY BUT THEY JUST START THINKING ABOUT WHERE DO I PUT IT. AND THERE WILL BE NO SUBSIDY. I THINK THIS IS GOING TO BE A HUGE PART. AGAIN, I REPEAT, IF THE UNITED STATES CAN DEVELOP THESE TECHNOLOGIES ANYWHERE, FROM THINGS LIKE THE ELECTRIC VEHICLES, AND BATTERIES THAT CAN GO FROM 300 TO 500 MILES ON A SINGLE CHARGE BUT TAKE UP HALF THE SPACE OF TODAYíS BATTERIES THAT WE HAVE, FOR EXAMPLE, ON THE VOLT AND THE NISSAN LEAF, THAT WILL HAVE A PROFOUND IMPACT BECAUSE EVERYONE WILL RUN OUT AND BUY ONE OF THESE CARS, UNLESS YOU LIVE IN THE COUNTRY. MAYBE IN THE COUNTRY YOU WANT TO DRIVE MORE THAN 4 OR 500 MILES, BUT EVEN 4 OR 5 -- NEVER MIND [LAUGHTER]. BUT IN ANY CASE, I THINK THAT IS WHAT WE ARE TRYING TO DO. WE SEE ENORMOUS OPPORTUNITY, WE SEE ENORMOUS ABILITY TO GEAR UP THIS GREAT AMERICAN INNOVATION MACHINE THAT THE UNITED STATES IS AND GET US IN THIS DIRECTION SO THAT WE CAN NOT ONLY DEVELOP THOSE THINGS FOR OUR OWN MARKETS BUT FOR THE INTERNATIONAL MARKET. SO WITH THAT, I WILL INTRODUCE TOM VILSACK. AS KEN SALAZAR SAID, HE HAS BEEN INDEFATIGABLE HERO OF RURAL AMERICA AND AGRICULTURE AND RURAL AMERICA HAS NO BETTER SPOKESMAN THAN TOM. [APPLAUSE]

THANK YOU VERY MUCH. CERTAINLY AN HONOR AND PRIVILEGE TO BE HERE THIS MORNING WITH TWO GREAT COLLEAGUES AND I CERTAINLY APPRECIATE THE WORK AND ASSISTANCE AND PARTNERSHIP WE HAVE HAD IN TERMS OF TRYING TO CREATE ECONOMIC OPPORTUNITY IN A PART OF AMERICA THAT IS EXTRAORDINARILY IMPORTANT TO ALL OF US. IT IS THE SOURCE OF OUR FOOD AND OUR FIBER, IT IS A SOURCE OF 85 PERCENT OF OUR RENEWABLE WATER RESOURCE. MUCH OF WHAT WE HAVE TALKED ABOUT IN TERMS OF RENEWABLE ENERGY AND CLEAN ENERGY AND BIOFUELS AND RENEWABLE FUELS WILL BE DONE IN LARGE PART IN RURAL AMERICA, WHICH WILL HELP TO CREATE ECONOMIC OPPORTUNITY FOR THE 50 MILLION WHO LIVE, WORK, AND RAISE THEIR FAMILIES IN RURAL AMERICA AND TO UNDERSCORE THE IMPORTANCE OF RURAL AMERICA, ONE STATISTIC THAT I GIVE TO EVERY SINGLE AUDIENCE THAT I SPEAK TO -- SO YOU ALL KNOW REGARDLESS OF WHERE YOU COME FROM, WHERE YOU LIVE, YOU DO HAVE A STAKE IN THE FUTURE OF RURAL AMERICA -- IS THAT WHILE IT REPRESENTS 16 PERCENT OF THE COUNTRYíS POPULATION, 44 PERCENT OF THOSE WHO SERVE US IN THE MILITARY COME FROM RURAL AMERICA. 44 PERCENT OF THE FOLKS WHO ARE DEEPLY CONCERNED ABOUT OUR SECURITY ñ A DISPROPORTIONATE NUMBER COME FROM THOSE RURAL COMMUNITIES. SO IT IS IMPORTANT TO FOCUS ON ECONOMIC OPPORTUNITY. THE PRESIDENT HAS DEVELOPED A VERY GOOD PRESCRIPTION TO WIN THE FUTURE. ITíS VERY SIMPLY STATED: A GOVERNMENT THAT SPENDS LESS BUT SPENDS WISELY, AN ECONOMY THAT MAKES, CREATES, AND INNOVATES, AND A NATION THAT EXPORTS. AND WHAT WE ARE TALKING ABOUT HERE TODAY FITS INTO THAT PRESCRIPTION. WHEN THE GOVERNMENT HAS TO SPEND LESS BUT SPEND WISELY, IT BECOMES EXTREMELY IMPORTANT FOR THE GOVERNMENT TO BE ABLE TO LEVERAGE ITS RESOURCES WITH THE PRIVATE SECTOR AND WORK CLOSELY WITH THE PRIVATE SECTOR TO CREATE ECONOMIC OPPORTUNITY. IN TERMS OF OUR INNOVATION AND CREATING AND MAKING, IT REALLY IS ABOUT THE OPPORTUNITIES ME, AND STEVE, AND KEN HAVE TALKED ABOUT. WHEN WE FOCUS ON CLEAN ENERGY OR BIOFUELS, WE ARE TALKING ABOUT ENORMOUS OPPORTUNITIES. 8800 PARTS IN A WINDMILL, JUST TO GIVE YOU ONE EXAMPLE OF THINGS THAT WILL BE MADE IN THE CLEAN ENERGY FUTURE. I CAME FROM A STATE THAT WAS NUMBER ONE IN THE COUNTRY IN TERMS OF WIND GENERATED ELECTRICITY ON THE GRID -- AND WE SAW A NET INCREASE IN MANUFACTURING JOB BECAUSE OF THAT; A NET INCREASE IN MANUFACTURING JOBS BECAUSE SOMEBODY HAD TO MAKE ALL OF THOSE 8800 PARTS. SO THE OPPORTUNITY HERE IS ENORMOUS. AND AT USDA WE ARE ENGAGED IN WHAT I WOULD SAY SMALL BALL. WE DONíT DEAL WITH BILLIONS AT USDA, AS STEVE AND KEN DO, WE REALLY DEAL IN MILLIONS. I WANT TO TALK TO YOU BRIEFLY ABOUT SOME OF THE PROGRAMS THAT WE HAVE, BOTH IN THE CLEAN ENERGY AREA AS WELL AS IN THE RENEWABLE FUEL AREA. IN THE RENEWABLE ENERGY AREA, FIRST AND FOREMOST WE HAVE A RESPONSIBILITY TO WORK WITH OUR FARMERS, RANCHERS, AND PRODUCERS TO SEE IF THERE ARE WAYS THEY CAN INCORPORATE RENEWABLE ENERGY INTO THEIR OPERATIONS. SO WE HAVE THE RENEWABLE ENERGY ASSISTANCE PROGRAM THAT PROVIDES RESOURCES, GRANTS, TO INITIALLY DO AUDITS OF OPERATIONS, TO DETERMINE HOW TO BEST INCORPORATE INTO THOSE FACILITIES RENEWABLE ENERGY. WE HAVE ALREADY FUNDED OVER 4000 OF THOSE PROJECTS, AND AS A RESULT OF THAT EFFORT, BELIEVE THAT WE WILL SAVE OR GENERATE ROUGHLY 4.3 BILLION KILOWATTS OF RENEWABLE ENERGY FOR THESE FACILITIES. WE ARE SEEING MANY OF THEM BEING ABLE TO GENERATE ENOUGH NOT ONLY FOR THEIR OPERATIONS BUT ALSO TO CONTRIBUTE TO THE GRID. WE ARE WORKING WITH HOMEOWNERS IN FIVE STATES TO TAKE A LOOK AT WAYS IN WHICH THEY CAN MAKE THEIR HOMES MORE ENERGY EFFICIENT. IT IS NOT JUST ABOUT GENERATING MORE ENERGY, IT IS ALSO ABOUT MAKING SURE WE USE IT PROPERLY AND CONSERVE AS MUCH AS WE CAN. WE INTEND TO WORK WITH THESE HOMEOWNERS THROUGH THE RURAL ELECTRIC COOPERATIVE IN THESE FIVE STATES TO PROVIDE RESOURCES IN ORDER FOR THEM TO DO WHAT THEY NEED TO DO TO RETROFIT THEIR HOMES AND SAVE ENERGY. WE ARE WORKING WITH THE DAIRY PRODUCERS OF THIS COUNTRY IN PROMOTING DIGESTERS THAT WILL ALLOW US TO CONVERT THE METHANE PRODUCED FROM LIVESTOCK WASTE AND USE IT TO PRODUCE ENERGY. IT IS NOT JUST DAIRY, BUT ALSO HOG PRODUCERS AS WELL ARE BEGINNING TO INCORPORATE THIS INTO THEIR OPERATIONS. IN ADDITION TO THE SMALL GRANT AND AUDIT PROGRAM THAT WE HAVE, WE ALSO HAVE OUR RURAL UTILITIES SERVICE THAT WORKS VERY CLOSELY WITH UTILITY INDUSTRY AND PROVIDES LOAN GUARANTEES. OVER $389 MILLION LOAN GUARANTEES AND LOANS TO GENERATE 288 MEGAWATTS OF WIND POWER, AS WELL AS SEVERAL SOLAR PROJECTS THAT ARE OPERATING AS A RESULT OF LOANS AND GRANTS FROM THE RURAL UTILITIES SERVICE. ALSO AT THE SAME TIME, OUR FOREST SERVICE IS INTIMATELY INVOLVED IN WORKING TO UTILIZE THE WOODY BIOMASS THATíS COMING FROM HAZARDOUS FUEL REDUCTION EFFORTS IN FOREST. IN PART BECAUSE OF THE BARK BEETLE INFESTATION IN THE WESTERN PART OF THE COUNTRY, WE HAVE A TREMENDOUS AMOUNT OF TIMBER THAT WE ARE GOING TO HAVE TO REDUCE. WE ARE GOING TO HAVE TO TAKE IT OUT OF THE FOREST BECAUSE IT REALLY DOES CREATE A SIGNIFICANT FIRE HAZARD TO COMMUNITIES THAT ARE LOCATED NEAR THESE FOREST THAT HAVE BEEN DEVASTATED BY THIS, BY THIS INFESTATION. THE QUESTION IS: WHAT DO YOU DO WITH THIS OPPORTUNITY? HOW DO YOU CREATE BIOMASS SUFFICIENT TO PRODUCE POWER? WE HAVE SIX FOREST SERVICE PROJECTS IN PLACE AS A RESULT OF THE RECOVERY ACT, HELPING TO GENERATE JOBS, HELPING TO REDUCE THE HAZARDOUS FUEL MIX, AT THE SAME TIME PRODUCING THE BIOMASS FOR RENEWABLE ENERGY. PROBABLY THE BIGGEST OPPORTUNITY THAT WE HAVE AT USDA IS IN THE BIOFUELS AREA. WE ARE CHALLENGED BY CONGRESS TO PRODUCE 36 BILLION GALLONS OF BIOFUELS FROM RENEWABLE SOURCES. THAT REPRESENTS ABOUT 25 PERCENT OF OUR OVERALL FUEL NEEDS IN THE COUNTRY. IT IS AN AMBITIOUS GOAL, TO BE REACHED BY 2022. THE ECONOMIC IMPACT OF REACHING THAT GOAL IS ROUGHLY 1 MILLION NEW JOBS, MOST OF WHICH WOULD BE LOCATED IN RURAL COMMUNITIES, AND OVER $100 BILLION OF CAPITAL INVESTMENT. EXTRAORDINARILY IMPORTANT TO THE FUTURE; EXTRAORDINARILY IMPORTANT FOR CREATING OPPORTUNITIES FOR YOUNG PEOPLE TO BE ABLE TO STAY AND RAISE THEIR FAMILIES IN THE COMMUNITIES IN WHICH THEY WERE RAISED. 21 BILLION OUT OF THE 36 BILLION HAS TO COME FROM ADVANCE BIOFUELS, AND THAT REALLY MEANS WE HAVE TO DO A MUCH MORE EFFECTIVE JOB OF RESEARCHING HOW WE CAN USE ALTERNATIVE FEEDSTOCKS AND WORKING WITH THE DEPARTMENT OF ENERGY WE HAVE ESTABLISHED FIVE REGIONAL BIOMASS RESEARCH CENTERS. IN SOME CASES, THESE ARE VIRTUAL RESEARCH CENTERS WHERE INFORMATION IS BEING SHARED BETWEEN RESEARCHERS TO IDENTIFY THE MOST EFFECTIVE, EFFICIENT WAY TO PRODUCE THE ALTERNATIVE FEEDSTOCKS AND PRODUCE THESE ADVANCED BIOFUELS. IN ADDITION, WE ARE ALSO ENCOURAGING PRODUCERS IN RURAL AMERICA TO PRODUCE THE FEEDSTOCKS THAT CAN BE USED TO PRODUCE EITHER CLEAN ENERGY OR RENEWABLE FUEL. OUR BIOCROP ASSISTANCE PROGRAM, BCAP, HAS ALREADY PROVIDED $240 MILLION OF ASSISTANCE TO PRODUCERS, $200 MILLION OF WHICH HAS GONE TO WOODY BIOMASS PRODUCTION. WE ARE GOING TO CONTINUE TO SEE THIS PROGRAM OPERATE TO PROVIDE FINANCIAL INCENTIVES SO THAT THERE IS A CONSTANT SOURCE OF THESE NEW AND ALTERNATIVE FEEDSTOCKS. WE ARE HELPING TO BUILD THE INFRASTRUCTURE TO CONVERT THESE FEEDSTOCK INTO ENERGY AND FUEL. WE JUST ANNOUNCED RECENTLY 3 BIO REFINERY PROJECTS IN THE SOUTHERN PART OF THE COUNTRY, AS WELL AS OVER 60 FEASIBILITY STUDIES AND ALL PARTS OF THE COUNTRY TO DETERMINE HOW BEST TO LOCATE AND WHERE BEST TO LOCATE BIO REFINERIES AND WHAT FEEDSTOCKS WOULD BE MOST APPROPRIATE FOR THOSE BIOREFINERIES. WE ARE TRYING TO INCREASE DEMAND IN TERMS OF OUR OWN VEHICLE FLEET, THE FEDERAL VEHICLE FLEET, AS WELL AS WORKING WITH THE DEFENSE DEPARTMENT, SPECIFICALLY THE NAVY, TRYING TO FIGURE OUT HOW WE MIGHT BE ABLE TO GENERATE MORE OF THE POWER NEEDS THAT THEY HAVE ON BASES AND THE FUEL NEEDS THAT THEY HAVE ON THEIR BASES AND CONVERTING IT TO CLEAN ENERGY AND BIOFUEL, WORKING SPECIFICALLY IN THE STATE OF HAWAII WITH THE NAVY. WE ARE ALSO WORKING CLOSELY WITH THE AVIATION INDUSTRY AND THE FAA TO DETERMINE HOW WE MIGHT BE ABLE TO TAKE 50 PERCENT OF THE FUEL NEEDS FOR OUR JET PLANES AND CONVERT THAT TO A RENEWABLE ENERGY SOURCE OR BIOFUEL. ALL OF THESE ACTIVITIES FIT INTO THE FRAMEWORK THAT THE PRESIDENT ESTABLISHED. WE ARE TRYING TO USE OUR RESOURCES IN AN EFFECTIVE WAY TO LEVERAGE PRIVATE SECTOR INVESTMENT SO THAT WE SPEND LESS BUT SPEND WISELY. WE ARE CLEARLY INVESTING IN RESEARCH AND NEW OPPORTUNITIES SO THAT WE CAN CREATE, REMAKE, AND INNOVATE AS A RESULT OF THIS, AS STEVE SUGGESTED, AS THESE TECHNOLOGIES BECOME EFFICIENT AND MORE EFFECTIVE, WE HAVE EXTRAORDINARY EXPORT OPPORTUNITIES. WE ALREADY HAVE AN AGRICULTURE AND EXTRAORDINARY EXPORT STORY. WHILE MANY SEGMENTS OF THE ECONOMY ARE DEALING WITH TRADE DEFICITS, IN AGRICULTURE THE UNITED STATES OF AMERICA HAS HAD A TRADE SURPLUS. WE ANTICIPATE IT WILL BE SOMEWHERE IN THE NEIGHBORHOOD OF $40 BILLION THIS YEAR IN TERMS OF SURPLUS. TO PUT THAT IN PROPER PERSPECTIVE, FIVE YEARS AGO THAT SURPLUS WAS $4 BILLION, SO WE HAVE ALMOST SEEN A TEN-FOLD INCREASE IN OUR SURPLUS ACTIVITIES IN AGRICULTURE. EVERY BILLION DOLLARS OF AG SALES, AND THERE WILL BE APPROXIMATELY $120 BILLION OF SALES THIS YEAR, GENERATES SOMEWHERE BETWEEN 8000 AND 9000 JOBS. SO THIS IS A JOB CREATOR, IT IS A WEALTH CREATOR, AND THE RIGHT STRATEGY TO WIN THE FUTURE. SO WE WANT TO BE PART OF THIS. WE ARE SORT OF A JUNIOR PARTNER WITH THE INTERIOR DEPARTMENT AND DEPARTMENT OF ENERGY, BUT WE, I THINK WE PLAY A SIGNIFICANT ROLE AND HOPE THAT OVER THE COURSE OF OUR DISCUSSIONS THIS MORNING THAT YOU WILL LEARN A LITTLE BIT MORE ABOUT ALL OF THE DEPARTMENT'SíPROGRAMS SO WE CAN, AS THE PRESIDENT SUGGESTED, WIN THE FUTURE FOR OUR CHILDREN AND GRANDCHILDREN. THANK YOU. [APPLAUSE]

NOW WE GET TO THE FUN PART OF THE PROGRAM. AND SINCE WEíRE HOSTING THIS AT THE DEPARTMENT OF THE INTERIOR I GET TO ASK THE QUESTIONS AND THEY HAVE TO ANSWER THEM. THATíS A FAIR TRADE. SO THESE ARE QUESTIONS FROM THE AUDIENCE, AND THERE'S A BUNCH OF CARDS THAT ARE CIRCULATING AROUND THAT ARE BEING COLLECTED. IF SOMEBODY WILL BRING THOSE QUESTIONS TO ME WE WILL GO WITH THEM. BUT LET ME START WITH THIS ONE: FIRST, TO STEVEN CHU. SO THE PRESIDENT HAS SAID WE SHOULD DOUBLE OUR CLEAN ENERGY ELECTRICITY PRODUCTION BY 2035. YOUR STATISTIC THERE WAS THAT WE ARE AT 40 PERCENT. SO, WE GO FROM 40 PERCENT TO 80 PERCENT. WHAT IS TO KEEP NUCLEAR AND NATURAL GAS FROM ESSENTIALLY SWALLOWING UP MOST OF THAT 40 PERCENT AND ESSENTIALLY DROWNING OUT SOLAR AND GEOTHERMAL AND WIND AND OTHER PARTS OF THE RENEWABLE ENERGY PORTFOLIO?

SURE, GOOD QUESTION. ITíS A FACT, THOUGH, THAT SOME STATES DON'T LIKE NUCLEAR AND THEYíRE NOT GOING TO GO NEAR NUCLEAR, AND OTHER STATES DO LIKE NUCLEAR. I THINK, WE DID SOME DETAILED SIMULATIONS IN THE DEPARTMENT OF ENERGY IN HELPING STRUCTURE THESE GOALS AND SURPRISINGLY, WE FOUND ñ YOUíD THINK THAT IF GAS GETS HALF CREDIT AND GIVEN THE LOW COST OF GAS TODAY -- EVERYTHING WOULD ACTUALLY DEFAULT TO NATURAL GAS AND FUTURE GENERATIONS. THE OTHER THING I NEED TO REMIND EVERYBODY IS THAT WE HAVE A LOT OF OLD COAL PLANTS. MUCH OF OUR FLEET IN COAL PLANTS IS 40 OR 50 YEARS OLD AND WEíRE GOING TO SEE MASSIVE RETIREMENTS WITHIN THE NEXT 5-8 YEARS. SO, THE QUESTION IS, WHAT DOES ONE DO. SURPRISINGLY, WHAT WE FOUND IS, IF, AND AGAIN, WE HAVE TO WORK OUT WITH CONGRESS, BUT WHAT WE FIND IS NUCLEAR WILL GROW, BUT WIND WILL ALSO GROW, SOLAR WILL GROW IN ADDITION, AND NATURAL GAS WILL GROW AND COAL WILL SHRINK A LITTLE BIT UNTIL WE DEVELOP THESE TECHNOLOGIES THAT CAN USE COAL IN A CLEAN WAY WITH CCS. LET ME REMIND YOU THAT BY MIDCENTURY, WE ARE GOING TO HAVE TO CAPTURE THE CARBON DIOXIDE FROM NATURAL GAS AS WELL. SO WE THINK AT LEAST IN THE SIMULATIONS WE PROJECT THAT EVERYTHING WILL GROW. IT IS VERY IMPORTANT WE GROW ALL OF THESE THINGS. THE RENEWABLES IN THE END, ESPECIALLY SOLAR, HAS THE MOST WHAT I CALL HEADROOM IN BRINGING DOWN THE COST AND THE MOST POTENTIAL FOR TECHNOLOGICAL DEVELOPMENT. WITH THAT, IF WE CAN DECREASE THE COST, AS I SAID, BY 75 PERCENT, OR EVEN 60 PERCENT, IT WOULD BE A GAME CHANGER.  

CAN I ADD JUST TO ONE OF STEVEíS COMMENTS? AND THAT IS WE HAVE TO BE VERY COGNIZANT OF THE WORK FORCE NEEDS TO BUILD THESE PLANTS. IT IS A LITTLE BIT EASIER TO CONSTRUCT A WINDMILL, POTENTIALLY A LITTLE BIT EASIER TO BUILD A SOLAR FARM, IF YOU WILL, THAN IT IS TO FIND THE WELDERS AND TRADESPEOPLE YOU NEED TO HAVE TO BUILD A NUCLEAR POWER PLANT AT AN AFFORDABLE COST. IN TALKING TO SOME OF MY ENERGY FRIENDS, THEY TELL ME THE SHORTAGE OF SKILLED TRADES PEOPLE SOMETIMES MAKES IT DIFFICULT TO PREDICT THE COST OF ONE OF THESE NUCLEAR FACILITIES. SO, IT SEEMS TO ME, AND I THINK THE PRESIDENTíS RIGHT ABOUT THIS, WHAT WE HAVE TO HAVE IS A BROAD RANGE -- A DIVERSE WAY TO GET TO THIS GOAL SO THAT WE CAN DO THINGS QUICKLY AND DO THINGS OVER THE LONG HAUL, AND GET THE WORK FORCE TRAINED TO BUILD THESE FACILITIES.  

THATíS THE REASON WHY THERE IS A BROAD ENERGY PORTFOLIO THAT WEíRE LOOKING AT AND WEíRE INCLUDING EVERYTHING. LET ME ASK YOU THIS, TOM VILSACK, YOUíVE BEEN A KEY CHAMPION TO BIOFUELS AND MOVING FORWARD WITH BIOFUELS. YOU SAW THE ECONOMY BEING RAVAGED AROUND ETHANOL OVER THE LAST SEVERAL YEARS. WHAT GIVES YOU CONFIDENCE THAT YOU WILL BE ABLE TO ARRIVE AT THOSE AMBITIOUS GOALS THAT WERE SET OUT BY CONGRESS, TO GET TO THE 36 BILLION GALLONS OF BIOFUELS AND ADVANCED BIOFUELS? ARE YOU GOING TO BE ABLE TO ACTUALLY PUT THE ADVANCED FEEDSTOCKS INTO THAT BIOFUEL PIPELINE TO BE ABLE TO ARRIVE AT THOSE AMBITIOUS GOALS THAT CONGRESS HAS SET OUT FOR YOU?  
I DONíT THINK THAT ñ I DON'T WANT TO BE POLLYANNISH ABOUT THIS. THIS IS A FAIRLY SIGNIFICANT GOAL. THE PROGRESS WE'VE MADE TO DATE ON THE ADVANCED BIOFUELS NEEDS TO BE ACCELERATED IN ORDER TO MEET THOSE GOALS. MY CONFIDENCE STARTS WITH THE EXTRAORDINARY RESEARCH CAPACITY THIS COUNTRY HAS, THE INNOVATIVE WORK THATíS ALREADY BEEN DONE IN THE RESEARCH LABS THAT WE HAVE AT USDA AND THE RESEARCH LABS THAT STEVEíS ENGAGED IN AND THE PRIVATE SECTOR. IT ALSO IS BASED ON THE EXTRAORDINARY CAPACITY OF FARMERS, RANCHERS AND PRODUCERS IN THIS COUNTRY TO BE INNOVATIVE AND CREATIVE AND PRODUCTIVE ENOUGH TO BE ABLE TO BUILD THE INFRASTRUCTURE IF YOU WILL, THE CROP PRODUCTION ñ THE RESIDUE, THE PERENNIAL GRASSES, THE WOODY BIOMASS, THE ALGAE, THE WHOLE SERIES OF CHOICES THAT WE HAVE. I AM VERY CONFIDENT WE WILL BE ABLE TO USE OUR LAND EFFECTIVELY TO PRODUCE THE FEED STOCKS WITHOUT NECESSARILY COMPROMISING THE OTHER' NEEDS THAT ARE IMPORTANT FROM OUR RURAL LANDS, INCLUDING OUR CAPACITY TO FEED OURSELVES AND THE WORLD. THERE HAS BEEN A LOT OF DISCUSSION RECENTLY ABOUT WHETHER THERE IS A CONFLICT BETWEEN THOSE TWO GOALS. I DON'T SEE IT BECAUSE OF THE EXTRAORDINARY PRODUCTIVITY THATíS TAKEN PLACE. THE SCIENCE OF AGRICULTURE, THE PRODUCTIVITY GAINS, ARE NOTHING SHORT OF AMAZING. IN OUR LIFETIME CORN PRODUCTION IS UP 300 PERCENT, BEAN PRODUCTION UP 200 PERCENT, WHEAT PRODUCTION UP 200 PERCENT. WHEN YOU START FIGURING OUT HOW YOU CAN USE CROP RESIDUE OR NONPRODUCTIVE LANCE MORE PRODUCTIVELY, THEREíS JUST AN EXTRAORDINARY OPPORTUNITY HERE. IT HAS BEEN A LONG TIME COMING IN TERMS OF RURAL AMERICA. WE HAVE HAD A TENDENCY TO DISREGARD THE ECONOMIC CAPACITY OF RURAL AMERICA IN THE LAST SEVERAL DECADES AND I THINK WE ARE NOW BEGINNING TO UNDERSTAND THAT THERE IS REAL OPPORTUNITY THERE. SO ITíS THE INNOVATIVE SPIRIT OF AMERICA AND THE ABILITY OF AMERICAN FARMERS AND RANCHERS TO PRODUCE BETTER THAN ANYBODY ELSE IN THE REST OF THE WORLD. THATíS THE REASON IíM CONFIDENT THAT WE CAN GET THERE.  

ANOTHER ONE FOR YOU, THEN IíLL COME BACK TO STEVEN, AND IíLL TAKE A QUESTION AFTER THAT. ONE TYPE OF LANDSCAPE, TOM VILSACK, WHICH HAS GREAT POTENTIAL FOR SITING WIND TURBINES ON IS AGRICULTURE DUE TO THE VERY SMALL ACTUAL FOOTPRINT OF TUBINES AND THE ABILITY OF FARM TO GROW ALONG THEM. WHAT AGENCY ACTION HAS BEEN TAKEN TO ENCOURAGE INSTALLATION OF WIND FARMS ON FARMLAND? THAT COMES FROM MICHAEL CRAIG FROM OCEANA.

WELL FIRST AND FOREMOST IS THE REPROGRAM THAT I REFERRED TO EARLIER, ENCOURAGING FARMERS TO TAKE A LOOK AT HOW THEY MIGHT THEMSELVES BE ABLE TO INCORPORATE WIND POWER AND SOLAR POWER INTO THEIR OWN OPERATIONS. WITH OVER 4000 PROJECTS CURRENTLY BEING FUNDED AND 100S MORE IN THE PIPELINE WE ARE GETTING THE MESSAGE OUT TO RURAL AMERICA THAT THIS IS AN ECONOMIC OPPORTUNITY FOR YOU TO PRODUCE YOUR OWN ELECTRICITY AND POWER FOR YOUR OWN NEEDS, POTENTIALLY WORKING WITH YOUR LOCAL REC OR YOUR LOCAL UTILITY COMPANY TO USE SURPLUS ON THE GRID THAT MAY POTENTIALLY REDUCE AND GENERATE INCOME FOR YOU. AT THE SAME TIME, THERE IS EXTRAORDINARY RENTAL OPPORTUNITIES FOR THE LAND THAT THESE TURBINES ARE LOCATED ON. YOU CAN PLANTS AROUND THOSE TURBINS SO YOU DID NOT LOSE MUCH IN TERMS OF THE PRODUCTIVITY OF YOUR FARM, SO ITíS AN ADDITIONAL INCOME SOURCE, ITíS A WAY OF REDUCING INPUT COSTS AND POTENTIALLY GENERATING YET ANOTHER INCOME OPPORTUNITY IN ADDITION TO THE RENTAL. WE ARE ENCOURAGING FARMERS TO THINK ABOUT THESE KINDS OF THINGS. AS THEY SEE THEIR NEIGHBORS PUTTING UP A WIND TURBINE OR AS THEY SEE THEIR NEIGHBORS LEASING PROPERTY TO A UTILITY COMPANY, AND THEY START ASKING, WHAT ARE YOU GETTING, HOW MUCH YOU MAKING, HOW DIFFICULT DOES IT MAKE YOUR FARMING OPERATION, THEY REALIZE IT REALLYIS A RELATIVELY SIMPLE THING TO INCORPORATE INTO THEIR OVERALL PLAN. IF THERE IS ANY DOUBT ABOUT THAT, COME TO THE MIDWESTJUST DRIVE THROUGH THE STATE OF IOWA AND SOUTH DAKOTA AND YOU WILL SEE WINDMILLS IN FARMS ALL OVER THE COUNTRY.  
AND I THINK IOWA WAS NUMBER ONE IN THE COUNTRY?
TEXAS AND CALIFORNIA HAVE -- STEVE AND I WILL PROBABLY DISAGREE BUT I HAVE TO STICK UP FOR MY HOME STATE. THOSE TWO LARGER STATES HAVE GREATER CAPACITY BUT ACTUALLY GETTING THE POWER ON THE GRID IS THE KEY, AND IOWA HAS POTENTIALLY AN EDGE TODAY. NOW CALIFORNIA AND TEXAS CLEARLY WILL BE SIGNIFICANT PRODUCERS OF WIND ENERGY. BUT FOR A SMALL STATE, IOWA IS DOING A GOOD JOB. IT WAS THE PARTNERSHIP BETWEEN STATE, GOVERNMENT, AND THE PRIVATE SECTOR DEVELOPING TAX POLICY SIMILAR TO WHAT THE PRESIDENT IS PROPOSING AND YOU ALL TALKED ABOUT, IS THAT KIND OF PARTNERSHIP, LEVERING ADDITIONAL RESOURCES, MAKING IT EASIER AND LESS EXPENSIVE FOR COMPANIES TO MAKE THOSE INVESTMENTS, THAT I THINK SPURRED A LOT OF ACTIVITY IN IOWA.
LET ME JUST MAKE A COUPLE OF COMMENTS ON SOME OF THOSE QUESTIONóONE IS FOR ME, AS A FORMER US SENATOR FROM COLORADO, I REMEMBER TRAVELLING UP AND DOWN THE EASTERN PLAINS OF MY STATE. VERY DRY AND VERY POOR AND THE DECLINING POPULATIONS, LIKE MUCH OF RURAL AMERICA. REALLY WHAT WE HAVE SEEN HAPPEN BECAUSE OF THE WIND ENERGY AND BIOFUELS OUT IN EASTERN COLORADO, IT HAS COME ALIVE AND SO YOU NOW HAVE A THRIVING ECONOMY WHICH IS MUCH MORE DIVERSE IN WHAT WAS WHAT OF THE MOST CHALLENGING RURAL AGRICULTURAL ECONOMIES IN OUR STATE. THERE IS TREMENDOUS INTEREST WHENEVER I GO AROUND THE COUNTRY, IN TERMS OF THE WORK THAT IS BEING DONE, WITH BIOFUELS AND ALTERNATIVE ENERGY, THE TECHNOLOGIES THAT ARE BEING DEVELOPED OUT OF THE DEPARTMENT OF ENERGY THROUGH THE NATIONAL RENEWABLE ENERGY LABS. THE DEMONSTRATION PROJECTS THAT ARE GOING ON WITH ALTERNATIVE FEEDSTOCKS AND PLACES LIKE GEORGIA AND OTHER PLACES AROUND THE COUNTRY. AND ANOTHER POINT I WOULD MAKE IS, DAVID HAYES AND OTHERS AND OTHERS WHO WORKED, WITH ME ON ISSUES OF CALIFORNIA WATER, WHERE WE FACE A VERY, VERY DIFFICULT CONFLICT ON THE SAN FRANCISCO BAY DELTA. THERE IS A SIGNIFICANT INTEREST OF THE PART OF SOME OF THOSE LAND OWNERS TO RETIRE SOME OF THE MORE MARGINAL LANDS AND ACTUALLY PROVIDE BENEFICIAL USE ON SOME OF THOSE MARGINAL LANDS BY PUTTING INTO PLACE LARGE-SCALE SOLAR PRODUCTION FACILITIES ON SOME OF THOSE LANDS. SO COMING BACK TO HOW THERE IS A DIVERSIFICATION AND OPPORTUNITY HERE FOR RURAL COLORADO THAT HAS MANY MANIFESTATIONS TO IT, I THINK IS A REAL IMPORTANT POINT FOR CLEAN ENERGY IN RURAL AMERICA. DR. CHU. THIS QUESTION IS WHAT IS BEING DONE AT THE DEPARTMENT OF ENERGY TO ENCOURAGE AND FACILITATE THE PRODUCTION OF ENERGY WHERE IT IS CONSUMED -- I.E. ROOFTOP SOLAR AND WIND, PV COATINGS FOR WINDOWS, SMART GRID, ETC. LET ME ADD JUST, AS YOUíRE THINKING ABOUT THAT STEVE, YOU DONíT NEED TO THINK LONG, I KNOW, ONE OF THE THINGS WE DO IT HERE IN THE INTERIOR IS WE WORK AND SOME OF THE BIG PROJECTS. SO WITH YOUR EFFORTS PERMITED WHAT WOULD BE THE LARGEST SOLAR POWER PLANT IN THE WORLD IN THE DESERTS OF CALIFORNIA AND NEVADA AS WELL. ONE OF THE QUESTIONS WE OFTEN GET IS HOW ABOUT ROOFTOPS AND SOLAR INITIATIVES? WHAT ARE WE DOING AS A COUNTRY TO CREATE THOSE KINDS OF OPPORTUNITIES?
WELL, IN TERMS OF THE SOLAR ROOFTOPS, BUT FIRST, THE PRICES I TALKED BEFORE WERE UTILITY SCALES ñ WHERE YOU CAN PUT IT IN LOW-COST LAND, IN PLACES LIKE DESERTS. BUT WITH ROOFTOPS, IF YOU LOOK AT A COST OF SOLAR INSTALLATION IN ROOTTOPS, RIGHT NOW THE MODULE IS PERHAPS HALF OR EVEN LESS THAN HALF OF THE COST OF INSTALLATION. IT IS PERMITTING. SOMETIMES MUNICIPALITIES REQUIRE STRUCTURAL ENGINEERS. THERE IS A LOT OF OTHER THINGS. I THINK HOMEOWNERS MAY NOT KNOW WHICH ONES TO BUY. THEY ARE NOT SURE THIS IS REALLY GOING TO WORK. SO AS WE DEVELOP SOLAR POWER IN GENERAL, THAT WILL BRING THE COST DOWN. WE THINK PROBABLY RIGHT NOW THE COST OF INSTALLING THE ROOFTOP SOLAR IS ABOUT $7 A WATT. SO A COUPLE THOUSAND WATT INSTALLATION IS A LARGE CHUNK OF CHANGE. WE ARE CONFIDENT THE COST WILL COME DOWN BY 50%. EVEN THERE IT IS STILL PRETTY HIGH. WHAT I AM FINDING IS INNOVATIVE BUSINESSES -- I KNOW A COUPLE OF BUSINESSES IN CALIFORNIA WHERE THEY SAY, THEY GO TO THE HOMEOWNER -- AND THEY SAY WE WILL INSTALL THIS SOLAR ROOFTOP AND IF YOU BUY ELECTRICITY FROM US AT A RATE CLOSE TO -- NOT QUITE, BUT A LITTLE BIT HIGHER THAN WHAT YOU WOULD BUY FROM A NORMAL POWER COMPANY. LET' SAY IT IS WITHIN 10% TO 15% AND YOU DON'T HAVE TO WORRY ABOUT IT, YOU DONíT HAVE TO INSTALL IT, YOU DONíT HAVE TO, WE OWN IT -- IF YOU WANT US TO TAKE AWAY WE WOULD TAKE AWAY AND IF YOU SELL YOUR HOUSE WE CONFIGURE OUT HOW TO SELL IT TO THE NEXT OWNER, SO ON AND SO FORTH. THESE ARE WAYS IN WHICH IT MAKES THE OWNER NOT BECOME AN EXPERT IN PHOTOVOLTAICS, BUT ACTUALLY SAY, OK, THIS IS WHAT I WANT TO DO AND 10% ADDITION TO YOUR ELECTRICITY FEE -- AS THE PRICE GOES DOWN, IT IS GOING TO LOOK BETTER AND BETTER, ESPECIALLY IF YOU HAVE PRICING ñ THE MOST EXPENSIVE ELECTRICITY IS ON A HOT SUMMER DAY. SO, AS SOON AS IT BECOMES ECONOMICAL TO DO IT AND YOU ARE SAVING MONEY, IT SLIDES. THAT IS WHAT WE ARE TRYING TO DO. SO WE ARE DOING RESEARCH IN ORDER TO MAKE THESE THINGS CHEAPER, BUT THERE IS VERY GOOD BUSINESS MODELS BEING DEVELOPED NOW IN ORDER TO TAKE THE HASSLE AND KNOWLEDGE FACTOR OUT OF IT. JUST, I AM INTERESTED IN ELECTRICITY, I AM INTERESTED IN CLEAN ELECTRICITY. AND WEíRE TRYING TO WORK, A LOT OF THINGS -- SOMETIMES A TOWN WILL SAY, YOU WANT TO PUT A SOLAR MODULES ON YOUR ROOF? WELL, YOU SHOULD GIVE US $400. WE ARE TRYING TO ENCOURAGE PEOPLE NOT TO DO THIS -- TO DECREASE THE BARRIERS AND THE FEES. IT IS ALL OF THOSE THINGS.  
KEN, A COUPLE OF THINGS. BOTH HOUSING AND URBAN DEVELOPMENT AND THE USDA DO A LOT OF HOMELOANS AND WE ARE TRYING TO FIGURE OUT WAYS IN WHICH WE CAN PERHAPS LEND AN ADDITIONAL FEW DOLLARS TO INSTALL THAT RENEWABLE ENERGY SOURCE IN THE HOME AND SPREAD THE COSTS EITHER OVER THE LENGTH OF THE MORTGAGE, OR IN OUR CASE, WORKING WITH RURAL ELECTRIC COMPANIES, OVER THE COURSE OF TIME IN TERMS OF PAYING THE UTILITY BILL. IF WHAT YOU IN STALL HELPS TO REDUCE THE UTILITY COMPANY'S CAPITAL INVESTMENT IN NEW PLANT CONSTRUCTION, THEY HAVE AN ECONOMIC INCENTIVE TO ENCOURAGE YOU TO DO THIS, THEN THEY WILL LEND YOU THE MONEY. AS A RESULT OF EFFORTS THAT YOU ARE UNDERTAKING, NOT ONLY RENEWABLE SOURCES BUT ENERGY EFFICIENCY, THEY WILL ACTUALLY REDUCE YOUR COSTS. AS THE COSTS ARE REDUCED, YOUR BILL WONíT BE REDUCED -- THEY WILL SIMPLY TAKE THE ADDITIONAL SAVINGS AND APPLY IT TO REPAY YOUR LOANS. SO YOU MAKE IT HASSLE-FREE AS STEVE SUGGESTED, AS POSSIBLE.  
 WE HAVE QUESTIONS FOR ME TOO HERE. IT SAYS ACCESS IS A MAJOR CONCERN FOR A SPORTSMAN ñ THIS IS FROM THE THEODORE ROOSEVELT CONSERVATION PARTNERSHIP. ACCESS IS A MAJOR CONCERN FOR SPORTSMEN AND ONE OF THE REASONS OFTEN GIVEN FOR DECREASE PARTICIPATION FOR HUNTING. ACCESS IS MORE THAN JUST ACCESSIBILITY BUT HAVING QUALITY PLACES THAT SPORTSMEN SEEK OUT TO HUNT OR FISH. HOW IS ACCESS AND SPORTSMENíS INTERESTS BEING ADDRESSED AND HOW ARE YOU GOING TO SUSTAIN FISH AND WILDLIFE DURING RENEWABLE ENERGY DEVELOPMENT? STATE TUNED. FIRST, LET ME JUST SAY YOU WILL HEAR MORE FROM THE PRESIDENT AND FROM TOM AND OTHERS WHO HAVE BEEN INVOLVED IN AMERICA'S GREAT OUTDOOR EFFORTS, WHICH ASSISTANT SECRETARY TOM STRICKLAND AND OTHERS HAVE BEEN LEADING FOR THE UNITED STATES FOR THE LAST YEAR THERE WILL BE A MAJOR FOCUS ON THAT REPORT WITH RESPECT TO SPORTS MEN AND HUNTING OPPORTUNITIES AROUND THE LEGACY OF THEODORE ROOSEVELT AND THE CONSERVATION AGENDA FOR THE 21ST CENTURY. THOSE ANNOUNCEMENTS, I THINK, ARE DAYS AWAY. LET ME SAY THAT WITH RESPECT TO RENEWABLE ENERGY AND SPORTSMEN AND FISH AND WILDLIFE ISSUES, YOU WILL HEAR FROM DAN ASHE, THE DIRECTOR OF THE FISH AND WILDLIFE SERVICE, AND BOB ABBEY FROM BLM AND OTHERS AS THE CONFERENCE GOES ON, ABOUT GUIDELINES THAT THEY ARE ISSUING TO MAKE SURE THAT MIGRATORY BIRDS ARE BEING PROTECTED. AND ALSO THAT WE ARE TAKING THE KINDS OF PRO-ACTIVE STEPS IN MAKING SURE THAT THESE RENEWABLE ENERGY FACILITIES ARE BEING SITED IN THE RIGHT PLACES. I THINK ONE OF THE THINGS WE LEARNED OVER THE PAST TWO YEARS IS WE FAST TRACK PROJECTS AND WE WENT THROUGH THE RIGHT KIND OF ENVIRONMENTAL ANALYSIS AND I THINK BEFORE 2009 AND 2010, THE PUBLIC LANDS OF THIS COUNTRY AT LEAST, FOR THOSE WHO WANTED TO BUILD SOME KIND OF A PROJECT, WHATEVER CAME IN THE DOOR WAS BASICALLY LOOKED AT. BOB ABBEY COINED THE TERM SMART FROM THE START. SO WHAT WEíVE DONE BOTH ONSHORE AND WITH THE DEPARTMENT OF ENERGY IN THE OFFSHORE AND THE ATLANTIC IS BEING SMART FROM THE START, LOOKING AT THOSE AREAS WHERE WE CAN DE-CONFLICT THOSE AREAS AND IDENTIFY THE AREAS THAT ARE MOST PROMISING FOR ENERGY DEVELOPMENT. THAT WILL BE THE CASE WITH RESPECT TO THE ONSHORE AREAS. AT LEAST WITH RESPECT TO THE WIND FARMS THAT I HAVE VISITED MANY OF THEM IN THE WEST AND MIDWEST, SOLAR ENERGY PROJECTS, WE BELIEVE THAT CONSERVATION AND ACCESS FOR HUNTERS AND ANGLERS, THAT THAT COULD COEXIST VERY WELL IN OUR NATIONAL IMPERATIVE HERE OF STANDING UP CLEAN ENERGY. TOM, DO YOU WHAT TO COMMENT ON THAT FROM THE AGRICULTURAL POINT OF VIEW AND ACCESS ON FARMS AND RANCHES FOR SPORTSMEN?

 ONE OF THE THINGS, OF THE 193 MILLION ACRES WE HAVE RESPONSIBILITY FOR IN THE FOREST SERVICE, IS TO MAKE SURE THAT AS WE WE FIGURE OUT MANAGEMENT STRATEGIES AND UTILIZATION OF FOREST SERVICE LANDS THAT WE TAKE INTO CONSIDERATION ALL USES AND NOT JUST RECREATIONAL USES, BUT ALSO THE ENERGY POTENTIAL, AND TRY TO FIGURE OUT WAYS WE CAN USE THESE LANDS TO MAXIMIZE ALL OPPORTUNITIES. I DON'T THINK IT IS NECESSARILY MUTUALLY EXCLUSIVE THAT YOU EITHER DO ENERGY OR YOU DO OUTDOOR RECREATION. I THINK THERE ARE WAYS, AS YOU SUGGESTED KEN, FOR US TO PLAN APPROPRIATELY SO THAT YOU CAN DO BOTH. FRANKLY, AGAIN, THE RURAL ECONOMY NEEDS US TO DO BOTH. OUTDOOR RECREATION IS A HUGE INDUSTRY FOR THIS COUNTRY. I HAVE SEEN SOME ESTIMATES IT COULD BE AS MUCH AS $730 BILLION OF ITS ECONOMIC ACTIVITY FOCUSED ON OUTDOOR RECREATION, SO ITíS OBVIOUSLY A VERY IMPORTANT COMPONENT AND MOST OF THOSE DOLLARS ARE BEING SPENT IN RURAL COMMUNITIES -- MANY OF THEM. WE OBVIOUSLY DON'T WANT TO DISCOURAGE THAT. AT THE SAME TIME, AS YOU POINTED OUT, WE DO NEED TO GET RENEWABLE ENERGY FROM WHERE IT CAN BE PRODUCED TO WHERE IT ABUSED AND IT OBVIOUSLY INVOLVES TRANSMISSION ISSUES AND WE HAVE TO BE SMART ABOUT WHETHER TRANSMISSION LINES ARE LOCATED AND WE HAVE TO COORDINATE AND INTEGRATE WITH WHAT YOU'RE DOING AT BLM, WHAT THE PRIVATE SECTOR IS DOING ON PRIVATE LANDS, AND WHAT WE CAN DO AT THE FOREST SERVICE. I DO NOT THINK THEY ARE MUTUALLY EXCLUSIVE.  

 STEVE, LET ME ASK A QUESTION THAT CONTINUES ON THAT POINT, AND THAT IS TRANSMISSION. EVER SINCE WE HAVE BEEN TALKING ABOUT CLEAN ENERGY WE HAVE SEEN TRANSMISSION AS A KEY
COMPONENT OF THE CLEAN ENERGY FUTURE. WHAT ARE SOME OF YOUR THOUGHTS ABOUT THE TRANSMISSION AGENDA?

RIGHT NOW, DEPARTMENT OF ENERGY, WITH FERC AND OTHERS, BOTH OF YOUR AGENCIES, ARE TRYING TO FIGURE OUT HOW WE CAN CONSTRUCT A MORE COHERENT PLAN FOR TRANSMISSION. PEOPLE TRIED TO SOLVE THE TRANSMISSION NEEDS AND DISTRIBUTION OF ELECTRICITY NEEDS WITHIN THEIR OWN LITTLE FRAMEWORK. THAT IS NOT RELALY WORKING, BECAUSE WITH RENEWABLE ENERGY THIS MEANS TRANSPORTING ENERGY ACROSS LONG DISTANCES, ACROSS STATE BOUNDARIES, ACROSS PUC BOUNDARIES. SO, IN THE DEPARTMENT OF ENERGY WE ARE WORKING TOWARDS A BRINGING TOGETHER GROUPS AND SAYING, IF YOU WORK TOGETHER AND COORDINATE, INSTEAD OF HAVING LINES CRISSCROSSING ACROSS AMERICA, BUILD A LINE FOR A SPECIFIC PROJECT, LETíS THINK ABOUT WHERE WE WANT THE LINES GOING OVER NOT ONLY NOW BUT IN THE NEXT 5, 10, EVEN 50 YEARS, AND HOW DO YOU ACTUALLY PLAN FOR THAT. TO ENCOURAGE THOSE GROUPS, THOSE ENTITIES TO GET TOGETHER AND CREATE A POOL SO THAT THEY CAN CROSS THOSE LINES, SO THE PEOPLE WHO BENEFIT FROM THE GENERATION OF THE ENERGY, THE RECEIPT OF ENERGY, AND YOU HAVE TO BENEFIT THOSE STATES AND THOSE AREAS WHERE YOU ARE TRANSMITTING ACROSS THOSE, BECAUSE YOU HAVE A TRANSMISSION LINE IN YOUR BACKYARD. SO, THESE ARE THINGS THAT ARE VERY IMPORTANT. IN ADDITION TO THAT, THE DEPARTMENT OF ENERGY IS PLAYING A VERY DEEP ROLE IN SAYING IT IS NOT JUST TRANSMISSION AND DISTRIBUTION BUT IT IS HOW THAT TRANSMISSION AND DISTRIBUTION LINE WILL COORDINATE BETWEEN THE VARIABLE SOURCES OF ENERGY LIKE WIND AND SOLAR, ENERGY ON DEMAND SOURCES LIKE FOSSIL FUEL PLANTS, AND HOW YOU ACTUALLY CAN COORDINATE THOSE THINGS SO THE TWO CAN WORK TOGETHER. THAT WAY YOU CAN CAPTURE MUCH MORE OF THE ENERGY YOU HAVE. RIGHT NOW IF YOU INSTALL A WIND TURBIN, AND THERE IS FLUCTUATION IN THE WIND, QUITE OFTEN WE JUST FEATHER THE BLADES LETTING THE ENERGY PASS THROUGH BECAUSE THE SYSTEM CANíT TAKE IT. WHAT WE NEED TO DO IS FIGURE OUT -- HOW TO TAKE ALL THAT ENERGY, BECAUSE THAT MEANS THAT ALL THAT INVESTMENT ON THAT WIND TURBIN CAN BE USED. BUT THAT MEANS YOU HAVE TO AUTOMATICALLY COORDINATE WITH THE FOSSIL FUEL PLANTS. THAT IS ANOTHER AREA WHERE WE ARE DETERMINED TO HELP. SO TRANSMISSION ACTUALLY TURNS OUT TO BE AN INTEGRATION OF THE POWER SYSTEM GENERATION IN THE COUNTRY AS WELL.  

WE ARE GETTING CLOSE TO THE 10:00 TIME. I AM GOING TO ASK ONE QUESTION, AND THAT IS, WHAT IS THE SINGLE MOST IMPORTANT THING THAT YOU THINK WE CAN DO TO ACHIEVE THE PRESIDENT'S GOAL OF DOUBLING CLEAN ENERGY PRODUCTION FOR ELECTRICITY BY 2035. AS YOU ARE THINKING ABOUT THAT QUESTION LET ME READ SOME OF THE OTHER QUESTIONS THAT COME IN FROM THE AUDIENCE SO YOUíLL SEE WHAT SOME OF YOU ARE ASKING. ONE QUESTION IS -- HOW CAN THE ADMINISTRATION A ENSURE THAT PRIVATE LANDS ARE INCLUDED IN PLANNING FOR RENEWABLE ENERGY WITH PUBLIC LANDS? WHAT IMPROVEMENTS IN STREAMLINING CAN BE DONE FOR WILDLIFE REVIEW ON PRIVATE LANDS? THERE IS A WORKSHOP COMING UP ON THAT THIS AFTERNOON OR TOMORROW MORNING. NEXT QUESTION WITH ONLY 8% OF BLM LANDS SURVEYED FOR HISTORIC AND CULTURAL RESOURCES, HOW ARE YOU PLANNING TO PROVIDE CERTAINTY FOR ENERGY APPLICANTS AND AVOID CITING PROJECT ON IMPORTANT CULTURAL LANDSCAPES AND DESTROYING IRREPLACEABLE ARCHEOLOGICAL RESOURCES? STAY TUNED, THERE IS A WORKSHOP, BOB ABBEY AND OTHERS ARE GOING TO BE TALKING ABOUT THAT SPECIFIC ISSUE A LITTLE LATER ON. SECRETARY CHU, IT IS OBVIOUS DOE IS COMMITTED TO R&D OF RENEWABLE ENERGY. WHAT IS DOE DOING TO SUPPORT RENEWABLE ENERGY BEYOND THE TAX INCENTIVES? SPORTSMEN' ISSUES, WE ALREADY ASKED THAT QUESTION. AGRICULTURE AND CITING AGRICULTURE LANDS. WHAT IS THE PATHWAY TO ACHIEVE GRID PARITY FOR SOLAR ENERGY TECHNOLOGY? FROM NATURE CONSERVANCY, BOB BARNES ñ CEQ RECENTLY RELEASE NEW GUIDANCE ON MENTORING AND MITIGATION IN NEPA PROCESSES. WHAT ARE YOUR PLANS TO MODIFY YOUR CURRENT NEPA REGULATIONS TO IMPLEMENT THE NEW GUIDANCE, ESPECIALLY FOR ENERGY DEVELOPMENT? WE HAVE WORKSHOPS OF THAT COMING UP AS WELL. FOR SECRETARY SALAZAR. YOU HAD A LOT OF SUCCESS IN CALIFORNIA AND NEVADA ON RENEWABLE ENERGY. HOW CAN WE EXPAND THAT SUCCESS TO THE REST OF THE OTHER 48 STATES? HOW MUCH STAFFING DO YOU NEED? A KEY ELEMENT OF BRINGING UTILITY SCALE RENEWABLES IS TRANSMISSION -- WE TALKED ABOUT THAT. WHAT CARROTS CAN YOU OFFER THE STAFFS IN THE FIELD TO ENGAGE EFFECTIVELY? RENEWABLE ENERGY INTERESTS SPAN THOSE OF INDUSTRY, SEVERAL FEDERAL EGENCIES, THE DEPARTMENT OF ENERGY, THE DEPARTMENT OF INTERIOR, FAA, FCC, DOD, AS WELL AS STATES AND ENVIRONMENTAL ORGANIZATIONS. WHAT IS BEING DONE TO PROMOTE AND FACILITATE EFFECTIVE COMMUNICATION AMONG THESE PARTIES INSIDE THE BELTWAY? WHAT IS THE GREATEST CHALLENGE TO REACHING 80 PERCENT CLEAN ENERGY BY 2035? WE WOULD ASK YOU TO FILL OUT YOUR CARDS IF YOU HAVE NOT ALREADY, AND WE WILL HAVE THOSE PRINTED UP FOR ALL OF US TO TAKE A LOOK AT SO THAT WE WILL HAVE YOUR QUESTIONS AND YOUR THOUGHTS IN MINDS AS WE MOVE FORWARD FOR THE ENERGY AGENDA FOR THE UNITED STATES. WITH THAT, I AM GOING IN REVERSE ORDER FROM WHICH WE OPENED UP. I WILL HAVE TOM VILSACK ANSWER THE QUESTION, GIVE HIS CLOSING COMMENTS, AND THEN WE WILL GO TO STEVEN CHU AND I WILL CLOSE IT UP. TOM?

 I THINK WHAT WE CAN DO A USDA IS REALLY TO CONTINUE TO DO WHAT WE HAVE DONE TO TRY TO ENCOURAGE OUR FARMERS AND PRODUCERS TO UNDERSTAND THE ROLE THAT THEY CAN PLAY IN PRODUCING THE FEEDSTOCKS AND THE ROLE THEY CAN PLAY AS PROVIDING EXAMPLES TO THEIR FRIENDS AND NEIGHBORS ABOUT HOW RENEWABLE ENERGY CAN BE COST- EFFICIENT AS WELL AS AN INCOME- PRODUCING SOURCE. SO A CONTINUED EFFORT I BELIEVE TO EDUCATE FARMERS ABOUT THE AUDIT PROCESS AND HOW RENEWABLE ENERGY CAN BE INCORPORATED INTO THEIR OPERATIONS. AND CONTINUED EFFORT TO TRY TO PROMOTE THE FEEDSTOCKS THAT WILL BE PART OF THE BIOMASS ANSWER TO A CLEAN ENERGY FUTURE. I THINK THAT IS EXTRAORDINARILY IMPORTANT FOR US TO DO, AND IT ALSO IMPACTS THE BIOFUEL PRODUCTION AS WELL. I WOULD SAY THOSE TWO THINGS ARE WAYS IN WHICH WE CAN HELP MET THE PRESIDENTíS GOAL OF A GOVERNMENT THAT SPENDS LESS, BUT SPENDS WISELY AND AN ECONOMY THAT MAKES, CREATES, AND INNOVATES, AND A NATION THAT EXPORTS

I THINK THE PRESIDENT PROPOSED A SOLUTION IN THE STATE OF THE UNION ADDRESS WHEN HE SET THIS GOAL OF GOING TO 80 PERCENT CLEAN ENERGY BY 2035. HE SUGGESTED NOT ONLY A GOAL, BUT TO MAKE IT A CLEAN ENERGY STANDARD. WHAT THAT MEANS IS WE DO NOT CARE WHAT TYPE OF CLEAN ENERGY IT IS, WHETHER YOUR STATE OR REGION LIKES SOLAR OR WIND OR NUCLEAR OR CLEAN COAL, WHEN AVAILABLE, OR NATURAL GAS, ROUGHLY A FACTOR OF TWO CLEANER THAN COAL. WHATEVER IT IS, TO GO FROM 40 TO 80 PERCENT, ENSURES PEOPLE WHO ARE DEVELOPING THESE TECHNOLOGIES WHO WANT TO SELL THAT HAVE A MARKET. THAT EACH REGION AND STATE CAN SELL INTO IT. IT IS JUST LIKE THE BIOFUEL STANDARDS, THE BLEND OF 10 PERCENT ENSURES THE FARMERS THEY HAVE A MARKET TO SELL THEIR BIOFUELS INTO THE NATURAL BLENDS. SO THIS CLEAN ENERGY STANDARD WILL ESSENTIALLY SAY THAT BETWEEN NOW AND 2035, IF YOU WANT TO DEVELOP NUCLEAR POWER, AND THIS IS A 10-YEAR THING BETWEEN THE TIME YOU DECIDE BETWEEN THE TIME YOU DECIDE TO APPLY FOR YOUR PERMIT TO THE TIME YOU THROW YOUR SWITCH -- YOU HAVE A PERIOD OF TIME TO DEVELOP YOUR PLAN. THIT IS ALSO TRUE WITH SOLAR AND WIND AND EVERYTHING ELSE. THIS CREATES A MARKET. THAT MEANS YOU CAN GO, IF YOU ARE A UTILITY COMPANY, YOU CAN GO TO YOUR RATE COMMISSIONS AND SAY, WELL THIS IS A REQUIREMENT, THIS IS WHAT WE NEED TO DO, BUT IT CREATES ENOUGH TIME SO THAT YOU CAN CREATE A LOW-COST PATH TO THAT. IN DOING THIS, IN CREATING THIS MARKET DEMAND AND CREATING DEPLOYMENT IN THE UNITED STATES FOR ALL THESE CLEAN-ENERGY SECTORS, THAT STIMULATES INDUSTRY TO SAY OK WE ARE GOING TO PRODUCE HERE; IN ORDER TO DO THIS WE WILL HAVE TO INVENT. CERTAIN THINGS WE WILL HAVE TO INVENTLIKE SOLAR TECHNOLOGIES; THEY EXIST TODAY BUT WE THINK WE CAN DRIVE DOWN THE COSTS INVENTING MUCH BETTER MANUFACTURING TECHNIQUES, PERHAPS NEWER DESIGNS OF SOLAR CELLS. ALL THOSE THINGS WILL SAY IF YOU CAN MAKE IT, YOU CAN SELL IT. YOU HAVE TO BE COMPETITIVE WITH THE OTHER FORMS OF CLEAN ENERGY. THAT IS SOMETHING WHICH THE PRESIDENT FEELS THAT WOULD BE HUGE DRAW AND A HUGE STIMULUS.

THANK YOU, STEVEN. I THINK THE MOST IMPORTANT THING THAT CAN HAPPEN IS WE HAVE THE CLEAN ENERGY STANDARD THAT IS IN FACT SOMETHING THAT GIVES US THE STEADINESS OF A LONG-TERM POLICY FRAMEWORK OF THE NATION. BECAUSE WHEN YOU LOOK BACK AT THE HISTORY OF THE CLEAN ENERGY EFFORTS, WE HAVE BEEN DEALING WITH THIS ISSUE FOR 40 YEARS. IT WAS RICHARD NIXON AFTER OPEC WAS CREATED THAT SAID WE HAVE TO MOVE FORWARD WITH ENERGY INDEPENDENCE. JIMMY CARTER, WHEN HE SPOKE ABOUT ENERGY INDEPENDENCE AS A MORAL IMPERATIVE OF WAR. WE SAW THE SOLAR ENERGY RESEARCH INSTITUTE BEING SET UP FROM 1979 AND 1980 AND YET THROUGH THE 70S, THE 80S, AND THE 90S, AND THE FIRST PART OF THIS CENTURY, IT HAS BEEN START AND STOP, START AND STOP. SO FOR INDUSTRY, LOOKING AT PRODUCTION TAX CREDITS, ITCS AND OTHER INCENTIVES, SOMETIMES THEY CAME ON IT WILL BE ON FOR A YEAR, OR TWO YEARS, BUT IT IS DIFFICULT FOR ANYBODY REALLY TO MAKE A LONG-TERM PLAN WHEN YOU ESSENTIALLY HAVE A POLICY FRAMEWORK THAT IS AT RISK AND CHANGES FROM DAY TO DAY. AND SO I THINK THAT THE PRESIDENT IN THE STATE OF THE UNION, CALLING FOR CONGRESS TO ACT ON A CLEAN ENERGY STANDARD IS SOMETHING THAT IS VERY IMPORTANT. I THINK IF WE CAN GET THERE WITH THIS CONGRESS, WE WILL ACHIEVE THIS CLEAN ENERGY FUTURE WHICH THE PRESIDENT SPOKE ABOUT SO ELOQUENTLY IN HIS STATE OF THE UNION. BUT IT IS ALSO IMPORTANT, I THINK, FOR ALL OF US TO RECOGNIZE THAT THESE DEPARTMENTS AS WELL AS OUR OTHER COLLEAGUES IN THE CABINET HAVE NOT BEEN WAITING. WE HAVE NOT HAD ENERGY LEGISLATION THAT THE CONGRESS HAS ENACTED IN THE LAST TWO YEARS THAT IS OF ANY GREAT SIGNIFICANCE, AND YET WE HAVE MOVED FORWARD, MOVING FORWARD WITH THE R&D EFFORTS OF THE DEPARTMENT OF ENERGY. MOVING FORWARD WITH THE MAJOR BIOFUELS EFFORTS, WHICH HAVE REALLY MADE SOME HUGE STRIDES IN THE LAST YEAR UNDER TOM VILSACK AND LISA JACKSONíS LEADERSHIP. AND THE EFFORTS WE HAVE GOING ON IN THE INTERIOR WITH THE DEPARTMENT OF ENERGY TO DEMONSTRATE TO THE WORLD THAT WE CAN REALLY GET THIS DONE. FOR ME, ONE OF THE MOST EXCITING THINGS IS BEING IN PLACES LIKE NEVADA, CALIFORNIA, ARIZONA, UTAH, AND ACTUALLY VISITING SOLAR POWER FACILITIES WHICH ARE GENERATING 200 TO 300 MEGAWATTS OF POWER AND BEING AT A GROUNDBREAKING WHERE WE ACTUALLY SAW A TRANSMISSION LINE THAT WAS BEING BUILT TO TRANSPORT CLEAN ENERGY. I THINK ONE OF THE THINGS WITHIN OUR OWN EXECUTIVE POWER THAT THE THREE OF US HAVE BEEN COMMITTED TO IN MOVING IN THE PRESIDENT'S DIRECTION, IS THAT WE DO EVERYTHING WITHIN THE EXECUTIVE POWER IS THAT WE DO HAVE TO MAKE THIS CLEAN ENERGY FUTURE A REALITY. THERE IS NO ACCIDENT THAT THE PRESIDENT SPOKE ABOUT CLEAN ENERGY FOR SUCH A LONG PERIOD IN HIS STATE OF THE UNION, AND ITíS BECAUSE HE RECOGNIZES THAT FOR THIS NATION TO WIN THE FUTURE, WE NEED TO WIN THIS RACE ON THE CLEAN ENERGY RATES FOR AMERICA. SO THE THREE OF US AND ALL THE PEOPLE WHO HAVE WORKED ON THIS CONFERENCE TODAY AND ALL OF YOU WHO ARE HERE AS STAKEHOLDERS ARE VERY MUCH A PART OF HELPING US MOVE THAT AGENDA FORWARD. SO THANK YOU ALL VERY MUCH. GIVE MY GREAT COLLEAGUES TOM VILSACK AND STEVEN CHU A ROUND OF APPLAUSE. [APPLAUSE]  
I FORGOT TO SAY, THIS THING CONTINUES. STEVE BLACK, WHO IS THE COUNSELOR ON ENERGY HERE AT THE DEPARTMENT, WILL BE MODERATING AND STAYING WITH YOU I THINK FOR MOST OF THE NEXT DAY AND A HALF. THE PANEL THAT IMMEDIATELY FOLLOWS WILL BE MODERATED BY DEPUTY SECRETARY OF INTERIOR DAVID HAYES. IT WILL DEAL WITH MANY OF THE SUBSTANTIVE ISSUES THAT WE HAVE BEEN LEARNING ABOUT OVER THE LAST SEVERAL YEARS. ONE MORE THING. IS RYAN JOBE SOMEWHERE IN THE AUDIENCE? ARE YOU HERE? ARE YOU HERE, RYAN? HE IS BACK IN THE BACK. RYAN, COME UP HERE. I WANT YOU TO MEET THIS YOUNG MAN. ONE OF THE THINGS THE PRESIDENT'S HAS BEEN VERY, VERY, VERY INSISTENT UPON WITH THIS CABINET IS THAT WE RECOGNIZE OUR MILITARY FAMILIES, THAT WE RECOGNIZE OUR VETERANS, AND THAT WE GIVE THEM OPPORTUNITIES. RYAN IS FROM BAYFIELD, COLORADO. RYAN HAS JOINED THE DEPARTMENT AS OF YESTERDAY AS AN INTERN WITH A MASTER' DEGREE IN SUSTAINABILITY BUT ALSO HAS SERVED OUR COUNTRY IN IRAQ FOR A NUMBER OF YEARS. GIVE HIM A ROUND OF APPLAUSE AS WE WELCOME HIM TO THE FEDERAL FAMILY. [APPLAUSE]  

 THANK YOU, MR. SECRETARY, SECRETARY CHU AND SECRETARY VILSACK. I THINK YOU WILL AGREE WE ARE OFF TO A GREAT START. WE ARE A FEW MINUTES LATE. WE ARE GOING TO TAKE A QUICK BREAK. PLEASE BE BACK IN YOUR SEATS PROMPTLY AT 10:15. I WILL GIVE A BRIEF OPENING AND WE WILL GET STARTED ON THE NEXT PANEL. THANK YOU FOR BEING HERE.