Onshore Renewable Energy Workshop - Part 3
February 10, 2011
Thank you, and welcome back this afternoon. I'm curious, did you all get lunches? Alright. I assume that there's some folks still coming back. It sounds like there were just terrific breakout sessions and stakeholder meetings during lunch. I do hope you all got lunches,and thanks again to katie and the energy foundation for those. I'm pleased to introduce Tom Strickland now. Tom will give us some brief remarks and then we'll have a second plenary, and as you can see we have several folks lined up on the next panel. It's going to be a great discussion, and michael picker from governor brown's office is here to lead that discussion. I'll introduce the panel after Tom's remarks. It's really my pleasure and honor to introduce Tom Strickland. Tom has two roles here at the Department of the Interior. He has been our chief of staff, he is our chief of staff, and the Assistant Secretary for Fish, Wildlife and Parks, and in that role Tom has a unique perspective on the challenges here at the Department in meeting our many stewardship obligations and statutory responsibilities with respect to wildlife, resources, and energy. so I am looking forward to his remarks—I know you'll enjoy them. Tom, of course hails from colorado and is principally responsible for putting together the Secretary's team here at interior, many of whom come from colorado. So it's been a real honor and privilege to work with him over the last two years. Thank you, Tom, for taking the time today. Please welcome Tom Strickland. [clapping]
Thanks, Steve and thanks to you and your team at DOI who took the lead in putting this conference together. Thank all of you for being here. I know there are stakeholders from across the spectrum of interests that are very much engaged in this historic effort to launch renewable energy on a meaningful scale in this country, and I was here this morning when we had three cabinet secretaries, with Secretary Salazar as the host here and to convey how important this is as an administration priority, I think the presence of those three cabinet officers but also the engagement of the whole spectrum of the federal government has been critical to trying to present a energy policy with respect to this important arena. Because ferc and other agencies are also engaged in various elements of this. So, one of the things I wanted to speak to, and I know you had the chance to hear from some of our experts at the Fish and Wildlife Service as well as Bob Abbey at the BLM and some of our other folks in more specific detail, but what I wanted to do is provide a little bit of, kind of step back a little bit to maybe the 5,000 foot level, talk a little bit about how we're approaching this from a policy standpoint and how important it is that we get this right on a whole set of values and how committed we are as an administration to present an integrated roadmap to the industry, but also to the public and to those that are here who have special interests and commitment to protecting and preserving our conservation values which are an incredibly important part of our stewardship responsibilities here at DOI. One thing we've found, and I may say depending on the timing a few words about america's great outdoors when I'm done with my prepared remarks. Having been in the federal government before as a u.s.attorney at the Department of Justice, having been in the state government as a chief policy advisor for the governor of colorado, having been involved in private practice, having been on nonprofit boards, I have dealt with the federal government from inside and outside and I know sometimes how difficult and multifaceted it can be and how hard it is sometimes to weave one's weight through the byzantine regulatory process to try and get to an end game, whether it's a permit or trying to get a job as a summer intern in the youth conservation programs. So one thing we're really trying to do in this area is to have a focused effort so it's really, you know what the rules are, you know that if you make the commitment and investment that there will be some regulatory certainty, and you know on the other hand if you're focus is more on the other, on other values and issues, that you know and can have confidence that we've got a process in place which is going to protect and conserve our environmental values. So let me just spend a few minutes and reflect on some of these points. As Steve said, For the last two years I have had the privilege of holding two of the most interesting and challenging jobs in d.c. In one job, as he mentioned, I serve as the Assistant Secretary for Fish and Wildlife and Parks. In that capacity on a daily basis I work with the leadership and the career staff of two of the Department's most highly visible and well-known and important agencies, the National Park Service and the Fish and Wildlife Service. Together, these two agencies are responsible for managing some of America's most treasured and cherished natural, historic, and cultural resources, including of course our national parks, historic sites,and cultural treasures including Civil War battlefields and other places like the Flight 93 site, national wildlife refuges, migratory birds, and many of the nation's most imperiled wildlife species, including such species as the whooping cranes, wolves, polar bears, California condors, and – as all of you know who listened to the President's recent State of the Union Speech– salmon … at least some of the time! [laughter] As Assistant Secretary, I have observed firsthand the dedication and hard work of the men and women of the Park Service and the Fish and Wildlife Service. I have seen the extraordinary job they are doing from the Everglades of Florida to the distant northwest Hawaiian Islands, where by the way I was recently as part of a management trip to look at the midway islands and to see 80 percent of the world's albatrosses. At one moment, over a million birds on two very small islands, two miles by two miles, and that's a site that was turned over to the Department of the Interior for stewardship after the navy shut down the bases there that were so famous from the second world war. I have also witnessed incredibly powerful and emotionally events linked to the history of our nation, including, soon after the secretary took over, the reopening of the crown of the Statue of Liberty, the dedication of the hallowed ground where Flight 93 crash took place, and the opening of a new visitor center at Pearl Harbor last december, on december 7th, on the 69th anniversary of the attack and I would say talking with some of those surviving veterans that day was one of the most impactful experinces that I've had at any time in my life. But The other job I have had over the last two years has been to serve as Ken Salazar's chief of staff where In that capacity, working with his other senior managers, some of whom you've heard from today, we have had the opportunity to help manage a Cabinet Department that may have, if not the most wide-ranging set of assets and responsibilities of any agency in the government, at least it's one of the very most. In addition to the Park Service and Fish and Wildlife Service, of course, the Department counts among its responsibilities the Bureau of Land Management and its several hundred million acres that it's responsible for; water resources for irrigation and other purposes overseen by the Bureau of Reclamation, which provides drinking water for about 40 percent of the people in this country; for the world-class scientific research that doctor marcia mcnutt oversees at the United States Geologic Survey; and then of course looking out for the territories, we have management responsibilities for territories and possessions that are flung over multiple time zones all over the world; and most importantly and as highlighted by two presidential gatherings in this auditorium in the last two years, the stewardship and trust, actually trust responsibilities we have in the nation-to-nation relationship with our first americans which are very important and of course the historic culmination of years of litigation with the settlement of the cobell case just recently. so once upon a time we had a nickname; we were called the department of everything and we may not quite be the Department of everything,but we are certainly the Department of a great many things, and so as it focuses on the topic here today, let me say that Secretary Salazar wears many hats, literally and figuratively, but as it relates to things we're talking about here today, he has two very important areas of focus: he is responsible for promoting th development of renewable energy on our public lands and also helping facilitate its development on private lands with transmission and other important pieces of that puzzle, and he is also charged with safeguarding the natural, historic, and cultural resources of this nation, including our parks, our refuges, and imperiled wildlife. As the Secretary himself has stated, the Department views its conservation responsibilities as co-equal with its renewable energy and traditional energy responsibilities and of course we have significant responsibilities for conventional oil and gas development. Bob Abbey, with his work on overseeing onshore oil and gas development which is a very significant part of our overall conventional energy resources and then the offshore oil and gas is of course a significant part of our responsibility. I think cummulatively we oversee about 30 percent of the nation's conventional energy development. We're here today to talk about the push for renewable energy, and in doing so, the secretary's responsibilities require him to balance the conservation values and to make sure we don't unneecssarily or inappropriately compromise those with our quest to bring on historic levels of renewable energy. Let's talk about the responsibility to promote renewable energy. You know, up until just a couple of years ago, we really hadn't had the kind of leadership out of the united states government that is requisite in terms of having an energy policy that put front and center promoting renewable energy. Various states have done it with their portfolio standards. We've had a lot of talk about it, but in terms of having the administration that had a single-minded focus on renewable energy, I think we brought that to this job. President Obama did, Secretary Salazar did, the secretaries as you saw here today. And this is promotion of renewable energy is a vital and indispensable task this administration gladly accepts. Anyone who picks up a newspaper lately understands the urgency of that. Once again, political upheaval in the Middle East has roiled world oil markets, causing oil prices to spike yet againand reminding us anew of our nation's vulnerability to events in volatile parts of the world from which most of our conventional energy resources are derived. Achieving greater energy independence will reduce that vulnerability, help achieve a better trade balance, and bring jobs and other economic benefits to American citizens. Tom Friedman's been writing about this, it seems, for decades. It's the country that wins this race, as the Secretary said this morning, that will be incredibly well-positioned in terms of a 21st century economy and quality of life for its citizens. Alongside news of turmoil in the Mideast, however, we have also had recent news of monster snows across much of the American heartland, epic floods in Australia, and vast forest fires across europe and russia. It may be that none of these weather events can be definitively linked to climate change, but we have other convincing evidence that our long stable climate is being destabilized as a result of our – and the world's – use of carbon-based energy sources. We see that evidence in the rapid warming that has been documented in the Arctic, with resulting dramatic loss of sea ice in many areas. Projected losses of sea ice in the Arctic led the Fish and Wildlife Service to designate the polar bear as a threatened species. Just a few months ago, I recommended the Secretary and he designated the largest critical habitat determination ever made in the history of this country, 187,000 square miles of critical habitat for the polar bear, much of it is sea ice in the winter that melts earlier and freezes later than it ever has before. So we're seeing concrete, indisputable evidence of climate change in certain parts of this country and certainly around the PLANET and so we know that we have brought that upon ourselves with our concentration of carbon-based fuels over many, many years. We also see evidence of climate change in rising sea levels and these rising sea levels are contributing to the loss of incredibly important resources: wetlands and very important areas of human habitation. And finally, in areas like the devastation of some of our forests in the rocky mountain region in our, Secretary Salazar and my homestate of Colorado the pine beetle kill has been dramatic, it has been throughout the rocky mountain region, throughout the hot summers, the warmer winters have allowed the pine beetle to move up along with the drought and infest forests that historically had not been vulnerable. These threats, not just to individual species, but to entire ecosystems and natural communities, are an added reason why this nation and the world needs to transition quickly from its reliance on carbon-based energy to alternative energy, including nuclear and renewable energy resources such as wind, solar, geothermal, ocean, and hydropower. In short, developing alternative energy resources is not just an economic and a national security imperative, it is an environmental imperative more broadly spoken. Even if we were to dismiss entirely, if you were a total agnostic on climate change, we would see that there are other environmental benefits to promoting renewable energy and the events of last spring and summer with the blowout of the Macondo well in the Gulf coast and the millions of barrels of oil that leaked into the gulf and the incredible impacts of that event have brought home some of the more pernicious side effects of some of the potential for removing conventional resources. We've seen that in, associated with other carbon-based fuels like coal over many years. Now we can manage many of those impacts and we have and we've got tougher and better rules and we're in the business of trying to make that activity much safer. Nonetheless, there are intrinsic risks that are not present when you compare that form of energy development to renewable energy. So There can be no serious debate about all the reasons why we should be pursuing renewable energy as aggressively as we can. But we have to pay close attention to how and where such new energy sources are developed. We have to learn the lessons from this nation's experiment with hydropower. Like wind, solar, and geothermal energy, hydropower offers climate friendly, non-polluting, “clean” energy. Before and after World War II we built many, many dams throughout this country and we didn't adequately consider, as we know now, the environmental consequences of some of those projects. For salmon and other migratory fish, we thought we could have our cake and eat it too if we built hatcheries and tried to sustain the populations in that fashion. But It didn't turn out that way. Many salmon and steelhead stocks collapsed; Native American tribes, which relied on these fish for their cultural and physical well being were severely affected; communities long sustained by commercial fisheries were devastated; and hatcheries turned out not to be the panacea that many had expected. As a result, today we are spending literally billions of dollars in an effort to remedy the oversights that literally were not taken into account and we're literally barging fish in barges around dams, spilling water over dams to enable fish migrating downstream to avoid turbines in the water, removing some dams and looking at removing others, and imposing a set of costly restrictions on other activites by virtue of the fact that per put so many species at risk without having adequately thought through the consequences of some of these projects. In hindsight, the era of big dam building brought us enormous benefits, but it also brought unexpectedly high environmental costs. We stand today at another turning point in our energy history. It is a turning point where the benefits of investing in new energy sources are readily apparent, as i've already described, but we can no longer afford to be unaware of the potential costs. These costs include loss of habitat potentially for endangered species from solar farms that are many square miles in size, the potential obstruction of migration and dispersal routes of wildlife from new roads, transmission lines and energy facilities in areas currently free of such activities, the deaths of golden eagles, other migratory birds, and bats from collisions with wind turbines, the imposition of new water use demands in areas where water supplies are already scarce, and potentially the impairment of viewsheds and visitor experience from large scale industrial development near park boundaries, and the loss of cultural and historic resources from development in areas rich in such resources. All of us – those of us in the Interior Department and you in the renewable energy industry – have a shared interest in taking these potential costs seriously and in doing whatever we can to minimize them. For those of us at the Interior Department, we must do so for one basic reason above all: the law requires us to. The Endangered Species Act, the Bald and Golden Eagle Protection Act, the Migratory Bird Treaty Act, the National Historic Preservation Act, the National Park Service Organic Act and other laws oblige us to act as stewards of these irreplaceable resources, which we hold in trust for the American people. But beyond our legal obligation, as important as that is, is our ethical and moral obligation to be wise stewards of this beautiful planet. For those of you in the renewable energy industry, we know that these goals are important to you as well. You entered this business not simply because you saw a new business opportunity, but because you saw an opportunity to improve the environment while having a successful business at the same time, a business that is non-polluting and climate friendly. You understand the importance of avoiding siting or operational decisions that imperil the well-being of endangered species, expose eagles, other birds, and bats to significant risks, impair the quality of visitor experiences at our parks, or damage our historic and cultural resources. What you expect and deserve from us in government is clarity and direction in how best to pursue your projects while avoiding these negative impacts, and that's what we're doing our best to try and give you. In short, it is imperative that we work together to make the transition to a new energy economy in a manner that is “smart from the start,” a term you've heard repeatedly through the course of today. We cannot afford to do what we are now doing with hydropower – which is trying to fix it after the fact. Now, these recent initiatives that you've heard about in the last few days and in some cases in the last few months, are all designed to try and build a kind of roadmap. The BLM's programmatic solar EIS is intended to guide solar development toward areas with the least environmental conflicts, while sending a clear signal that development elsewhere will face a steeper regulatory hurdle. In California, the development of a Desert Renewable Energy Conservation Plan will allow for a coordinated mitigation effort as new energy facilities are sited in that endangered species-rich region. The Fish and Wildlife Service, you've heard a lot today from our experts about the just-released draft wind turbine guidelines which seek to provide clarity of expectations for wind energy development and its impacts on birds, bats, and other wildlife. These are voluntary guidelines that are intended to help the industry both choose locations for wind energy development and utilize operational practices that minimize conflicts with wildlife. Through a tiered series of inquiries about sensitive wildlife in particular areas, and by asking questions about strategies that may be available to avoid or reduce negative impacts, these guidelines are aimed to facilitate wind power development without compromising wildlife values and are based on an excellent set of recommendations that came out of the work of a federal advisory committee that many of you here in this audience served on, so we thank you for your work over two years to make those recommendations to us. We also want to emphasize that these are draft guidelines. I understand from the lunch breakouts that we've already started to get feedback and we are eager to get your feedback. we will take it seriously, we will look at it, we will try and make these guidelines even better than they are now. Now The Fish and Wildlife Service's draft guidance on wind energy impacts on eagles provides a more focused assessment of how wind energy facilities can be planned and developed to minimize the taking of bald and golden eagles. We know from experience that eagles can be killed by collisions with wind turbines, of course, and we believe there are practical ways to reduce that risk. The key to doing so, like the key to avoiding so many of the potential environmental impacts with this kind of energy development, and any kind of energy development, is in the choice of where to site facilities. You've heard today that we're trying to get the best science possible because those decisions that are informed by good science at the outset will lead us to the best outcomes, and in some areas this is cutting edge stuff and we don't have the information, so we're trying to build a process that doesn't slow you down unnecessarily but still allows us to make informed decisions that we can live with. The other thing is, we also understand that from time to time there will be unintended take of eagles and that may unavoidably occur. Where that's the case, this proposed guidance describes a means of compensating for those losses by undertaking or supporting conservation measures elsewhere. As with the wind turbine guidelines, we seek your feedback on these eagle guidelines as well. Siting projects beyond the viewsheds of national parks will also avoid conflicts that can damage both park visitor experience and public perceptions about the renewable energy industry. The National Park Service and the BLM are working together to address the impact of energy development outside park boundaries, for after all these parks and special places and Bob Abbey and BLM have a series of very important landscapes that are designated for special management practices as well, these exist in the context of ecosystems, so those values don't end where the boundary of the park may end, so it's important that we be cognizant of the impacts that may be outside those immediate boundaries, whether it's a wildlife refuge or a special protected BLM area, or a national park. So we've got the Park Service and BLM sitting down nearly every weekto work through these discussions, and that's one of the last points I want to leave you with. We understand that you will be better served, and we will be better able to achieve these twin goals, if we're coordinating internally between our bureaus, because we have bureaus with dispirate legal mandates with requirements and special assignments and responsibilities that are different from one bureau to the next. We're trying to harmonize those internally. So these guidelines were fashioned among a lot of conversation among and between our bureaus and with great counsel from our Solicitor's Office, and I see our tremendous solicitor here, Hillary, thank you Hillary for your great work on this. So at the end, let me just say this. Secretary Salazar and the DOI team believe strongly that expansion of our renewable energy resources can go hand in hand with protecting the environment. But for that to happen, we must provide a roadmap to the industry which provides guidance on how to develop projects responsibly in a manner which does not compromise our environmental values. We need your help in forming this roadmap. Together we can move the country forward in a truly responsible environmental manner. Thank you very much for your interest and participation. Steve, I will now turn it back to you. Thank you. [applause]
THANK YOU, TOM. AS PROMISED, I THINK TOM DELIVERED AND I THINK YOU ALL HAVE AN APPRECIATION. IF ANYONE HERE THINKS THIS IS AN EASY JOB, STAND UP, RIGHT NOW. THIS IS, I, AND BY THE WAY, TO OUR NEXT PANELISTS, PLEASE COME ON UP. I WON'T TAKE LONG HERE. I'LL INTRODUCE MICHAEL AND ASK HIM TO INTRODUCE HIS PANEL. I THINK THIS IS THE MOST EXCITING AGENDA IN WASHINGTON. IT IS CERTAINLY IMPORTANT TO OUR COUNTRY, AS YOU HEARD THIS MORNING. THIS IS DIFFICULT, AND WE ARE WEIGHING MANY COMPETING OBLIGATIONSAND CHALLENGES HERE. THIS PANEL, I'M PLEASED TO SAY, I HAVE THE PRIVILEGE OF WORKING WITH ALMOST EVERY DAY AND CERTAINLY WE MEET EVERY MONTH IN CALIFORNIA. I THINK YOU WILL REALLY ENJOY HEARING FROM EACH OF THE SPEAKERS THIS AFTERNOON. SO I WON'T TAKE ANY MORE TIME. I'M JUST GOING TO INTRODUCE MICHAEL. MICHAEL WAS THE CHIEF, THE SENIOR ADVISOR TO GOVERNOR SCHWARZENEGGAR AND MINAL I KNOW IS HERE TODAY AS WELL. MICHAEL AND MINAL AHMUD HAVE BEEN PARTNERS IN CALIFORNIA, IN PARTICULAR WORKING ON THE OPPORTUNITIES, THE CHALLENGES, THAT ARE PRESENTED IN CALIFORNIA. WE'VE HAD GREAT PARTNERSHIP AND GREAT SUPPORT FROM OUR OWN AGENCIES AND BUREAUS IN THE SACRAMENTO AREA. MIKE FRISS IS HERE WITH FISH AND WILDLIFE SERVICE, YOU HEARD FROM HIM EARLIER TODAY. THE BLM OFFICES THERE, THE SOLICITOR'S OFFICES THERE, HAVE ALL BEEN INSTRUMENTAL IN OUR SUCCESS. SO WE ASKED THIS PANEL TO COME TOGETHER TODAY TO JUST SHARE SOME OF THEIR EXPERIENCES AND THEIR PERSPECTIVES ON THE CHALLENGES OF PERMITTING LARGE UTILITY SCALE SOLAR PROJECTS. MICHAEL BRINGS WITH HIM A WEALTH OF EXPERINCE FROM CALIFORNIA POLITICS AND ORGANIZATIONAL GRASSROOTS ORGANIZING IN THE STATE OF CALIFORNIA AND HAS BEEN A KEY TO OUR SUCCESS. SO MICHAEL, PLEASE INTRODUCE YOUR ESTEEMED PANEL AND WE'LL LET YOU GO.
THANKS. I THINK WE'RE GOING TO HOLD OFF INDIVIDUAL INTRODUCTIONS, EXCEPT TO JUST PREFACE THE PANEL BY SAYING THAT WE HAD A FAIRLY PRODUCTIVE YEAR IN CALIFORNIA, ISSUING LAND USE PERMITS AND SEEING THE INITIATION OF CONSTRUCTION OF LARGE SCALE RENEWABLE ENERGY PROJECTS. WE'RE SEEING A LOT OF ADDITIONAL ACTIVITY AS A RESULT OF OUR PROGRESS WITH THE LARGE SCALE, WITH THE PRICE OF PV DROPPING AND PEOPLE TAKING PART AND STARTING OTHER VENTURES. SO WE'RE GOING TO REFLECT A LITTLE BIT ON THAT EXPERIENCE, AND PARTICULARLY ABOUT OUR PARTNERSHIP WITH THE FEDERAL GOVERNMENT AND WHY THAT'S BEEN VALUABLE TO THE PROGRESS THAT WE'VE MADE. I JUST WANT TO REMARK THAT THIS IS A VERY IMPORTANT ENDEAVOR. THE WHOLESALE SWAPPING OF TECHNOLOGIES INTO OUR ELECTRICAL GRID IS NOT AN EASY TASK. IT'S PROBABLY THE MOST PROMINENT INITIATIVE OF THE ENVIRONMENTAL MOVEMENT IN THIS NEW CENTURY. IT WILL TEST US ALL. IT RAISES CONFLICTS WITH THE ENVIRONMENTAL VICTORIES OF THE LAST CENTURY. OUR ABILITY TO DO THAT IS A TEST OF OUR LEADERSHIP AND OUR ABILITY TO PROVIDE FOCUS TO THE REST OF THE GOVERNMENT. THESE ARE VERY ICONIC TECHNOLOGIES; THEY LEND HOPE TO THE AMERICAN PEOPLE AT A POINT WHERE THEY'RE DESPERATE FOR SOME SCIENCE WHERE WE CONTINUE TO MAKE PROGRESS. THEY'RE LARGE, THEY'RE VISIBLE, THEY TELL PEOPLE THAT AMERICA IS STILL A PLACE WHERE YOU CAN DO THINGS. SO THERE'S A LOT RIDING ON THIS. I WILL REPORT THAT WE HAD SOME SUCCESS LAST YEAR, LET ME GET THAT FIRST SLIDE. WE TRACKED ABOUT 22 PROJECTS ALONG WITH OUR FEDERAL PARTNERS IN THE DEPARTMENT AND THE US FISH AND WILDLIFE SERVICE AND THE BLM AND OUR PERMITTING AGENCY, THE CALIFORNIA ENERGY COMMISSION, AND THE DEPARTMENT OF FISH AND GAME. OUT OF THOSE 22 PROJECTS, I THINK YOU CAN—YOU'LL BE ABLE TO SEE A LIST. WE'VE COMPLETED PERMITTING ON 11 OF THOSE PROJECTS THAT REPRESENT ROUGHLY 5.3 GIGAWATTS OF WIND AND SOLAR. OUT OF THOSE 11 PROJECTS, 5 HAVE BROKEN GROUND. ONE OF THEM, THE ALTO CREEK WIND PROJECT, WHICH IS THE LARGEST IN THE WORLD, ROUGHLY 1000 MEGAWATTS, IS ALREADY INJECTING 300 MEGAWATTS INTO THE CALIFORNIA GRID. SO WE HAVE SOME SENSE THAT WE CAN CONTINUE TO ACHIEVE AND I THINK THAT WE'RE VERY OPTIMISTIC THAT WE'LL MEET CALIFORNIA'S 33 PERCENT RENEWABLES GOAL IN A FAIRLY TIMELY FASHION WITH THE CONTINUED HELP OF THE PRESIDENT'S RENEWABLE GOALS, FEDERAL TAX POLICY, OUR RPS STANDARD, AND THE GOOD HARD WORK OF OUR PUBLIC EMPLOYEES. IT'S NOT EASY, SO I'LL JUST SAY THAT THE WAY THAT WE'RE ABLE TO DO THIS IS BY TAKING THE CALENDARS OF ALL FOUR OF THE AGENCIES THAT I HAVE MENTIONED AND MATCHING THEM UP AGAINST A SET OF MILESTONES THAT HELPED US TO GET TO A DEADLINE, WHICH WAS THE END OF THE YEAR DEADLINE TO QUALIFY FOR THE ARS 1603 GRANT FEDERAL STIMULUS DOLLARS. WE WERE ABLE TO FIGURE OUT WHO NEEDED WHAT INFORMATION WHEN, DO JOINT DOCUMENTS IN SOME CASES, SHARE ANALYSIS, TRACK EACH OTHER'S WORK SO THAT WE KNEW THAT WHEN INFORMATION WAS REQUIRED BY ONE AGENCY FROM ANOTHER THAT IT WAS ON TIME, OR IF IT WASN'T, TO GO HOVER OVER PEOPLE'S DESKS; MOVE IT FROM ONE AGENCY TO ANOTHER. EVENTUALLY WE MANAGED TO MAKE DO, AND I THINK THAT THAT'S ONE OF THE THINGS THAT PEOPLE EXPECT FROM US AS PUBLIC EMPLOYEES: EFFICIENCY, EFFECTIVENESS, FAIRNESS AND EQUITY. I THINK THAT WE WERE ABLE TO DELIVER THAT. ONE OF THE PROJECTS THAT GOT THROUGH CALIFORNIA'S TORTUOUS LAND USE PERMITTING ACTUALLY ACHIEVED PERMITTING FROM FIRST DATE ADEQUACY TO FINAL PERMIT WITHIN 11 MONTHS, WHICH WAS JUST REMARKABLE FROM OUR STANDARDS. SO I WILL SAY THAT WE HOPE TO GET 33 PERCENT SOON. IF YOU ARE BUILDING IN OTHER STATES AND HOPE TO SELL TO CALIFORNIA, WE LOOK FORWARD TO WORKING WITH YOU, BUT I THINK THAT WE'RE GOING TO SURPASS 33 PERCENT AND WE'D LIKE TO SEE A ROBUST WESTERN GRID WHERE CALIFORNIA CAN ACTUALLY EXPORT AND SHARE WITH OTHER STATES IN THE HOPES OF ACTUALLY ATTAINING REGIONAL ENERGY RELIABILITY. AND WHEN THE SUN COMES UP IN NEW MEXICO IT IS USED TO POWER ALARM CLOCKS IN L.A, AND WHEN THE LAST WIND OF THE DAY IS DYING DOWN IN CALIFORNIA IT IS HELPING TO POWER LIGHT RAIL IN SALT LAKE. SO, WITH THAT I AM GOING TO TURN TO THE PARTICIPANTS IN OUR EFFORTS, OUR JOINT EFFORTS BETWEEN STATE AND FEDERAL GOVERNMENT. JIM ABBOTT, THE STATE DIRECTOR OF THE BUREAU OF LAND MANAGEMENT. SOME DAY WHEN I GROW UP I HOPE THAT I AM JIM ABBOTT. AN ENORMOUSLY CAPABLE AND VALUABLE PARTNER. AND KAREN DOUGLAS, WHO'S THE OUTGOING CHAIRMAN OF OUR CALIFORNIA ENERGY COMMISSION WHO ACTUALLY LEAD THE PERMITTING FROM THE STATE'S SIDE ON NINE OF THOSE LARGE SOLAR PROJECTS.
THANK YOU, MICHAEL. JIM AND I MET AHEAD OF TIME AND AGREED THAT I WAS GOING TO START. SO, I WILL JUST SAY THAT WE HAVE A VERY GREAT APPRECIATION FOR THE PARTNERSHIP THAT WE'VE HAD WITH THE FEDERAL AGENCIES AND THE PERMITTING ACHIEVEMENTS OF 2010 SIMPLY WOULD NOT HAVE HAPPENED WITHOUT THAT CLOSE WORKING RELATIONSHIP. CALIFORNIA HAS BEEN TRYING TO AGRESSIVELY MOVE FORWARD ON RENEWABLE ENERGY FOR A LONG TIME, WE'VE HAD A RENEWABLE PORTFOLIO STANDARD SINCE 2002. WE'VE GOT OUR STATE CLIMATE LAW REQUIRING ECONOMY-WIDE REDUCTIONS IN GREENHOUSE GASES WITH A 33 PERCENT RENEWABLE ENERGY STANDARD AS ONE OF THE FUNDAMENTAL PARTS OF MEETING THOSE CLIMATE GOALS. OF COURSE WITH THE RECESSION, THE JOBS AND ECONOMIC BENEFITS OF THESE PROJECTS WERE CONSIDERABLE AND WERE VERY IMPORTANT TO THE STATE. AT THE SAME TIME, IT HAD BEEN NEARLY TWO DECADES, FRANKLY, BY 2010, THE PROJECT'S WE'VE PERMITTED IN 2010 ARE THE FIRST PROJECTS, SOLAR THERMAL PROJECTS, THAT THE ENERGY COMMISSION HAD PERMITTED IN NEARLY TWO DECADES. SO THE LARGE SOLAR THERMAL PROJECTS THAT CAME BEFORE US IN 2010 WERE SOMETHING, IF NOT NEW, WERE SOMETHING THAT WE HADN'T SEEN IN QUITE A WHILE. THERE WERE A LOT OF CHALLENGES THAT WE HAD TO ADDRESS IN ORDER TO MOVE FORWARD ON THOSE PROJECTS AND MOVE FORWARD BY THE DEADLINES IN THE RECOVERY ACT. ONE OF THE CHALLENGES WAS SIMPLY MESHING THE ENERGY COMMISSION'S PROCESS WITH THE BUREAU OF LAND MANAGEMENT'S PROCESS FOR THE PROJECTS ON FEDERAL LAND. ENERGY COMMISSION HAS AN ADJUDICATIVE PROCESS; WE MAKE DECISIONS BASED ON AN EVIDENTIARY RECORD, WE HAVE EX PARTE RULES, WE HAVE RESTRICTIONS ON WHEN EVEN STAFF CAN MEET AND TALK WITH OTHER PARTIES OUTSIDE OF A PUBLICALLY NOTICED WORKSHOP, SO THE PROCESSES WERE COMPLETELY DIFFERENT. WE ACTUALLY SAW THAT BACK IN 2007 WHEN WE, THE ENERGY COMMISSION AND THE BUREAU OF LAND MANAGEMENT SIGNED AN MOU, AND THAT WAS OUR FIRST EFFORT AT TRYING TO JOIN THE REVIEW OF TWO PROJECTS THAT CAME IN FORCE IN 2007, BRING THE PROCESSES TOGETHER SO THAT IF YOU COME TO THE ENERGY COMMISSION, THE BLM SEES IT, YOU DON'T HAVE TO GO TO WORKSHOPS ALL OVER THE STATE IN ORDER TO BE HEARD IN TWO FORUMS AND ALSO DEAL WITH THE SUBSTANTIVE ISSUES BECAUSE IN CALIFORNIA WE HAVE A CALIFORNIA ENVIRONMENTAL QUALITY ACT WHICH IS SIMILAR TO BUT NOT EXACTLY THE SAME AS NEPA. WE HAVE A CALIFORNIA ENDANGERED SPECIES ACT, WHICH IS SIMILAR TO BUT HAS IMPORTANT DIFFERENCES FROM THE FEDERAL ENDANGERED SPECIES ACT, SO THIS HAD TO BE COORDINATED. IN 2009, IN 2008, BY A GOVERNOR'S EXECUTIVE ORDER, WE BEGAN TWO VERY IMPORTANT INITIATIVES THAT HAVE BEEN DISCUSSED TO SOME DEGREE TODAY. THE RENEWABLE ENERGY ACTION TEAM, WHICH IS A TEAM OF FOUR AGENCIES: THE ENERGY COMMISSION, THE BUREAU OF LAND MANAGEMENT, THE FISH AND WILDLIFE SERVICE, AND THE CALIFORNIA DEPARTMENT OF FISH AND GAME. AND THE STAFFS OF THESE FOUR AGENCIES HAVE BEEN MEETING ABOUT EVERY TWO WEEKS FOR ABOUT TWO YEARS, SO IT REALLY HELPS TO GET ON THE SAME PAGE ON POLICY, ON HOW YOU APPROACH PROJECTS, ON HOW YOU DEAL WITH DIFFERENT TIMELINES ON DIFFERENT LEGAL REQUIREMENTS IF YOU SEE EACH OTHER OFTEN. THE DESERT RENEWABLE ENERGY CONSERVATION PLAN, WHICH IS OUR LONG TERM EFFORT TO BE LESS REACTIVE AND MORE PROACTIVE IN HOW WE ACHIEVE OUR RENEWABLE GOALS AND ACHIEVE LONG TERM CONSERVATION OF THE SPECIES IN THE DESERT. SO IN 2009, WITH MORE PROJECTS BEFORE US, THE GOVERNOR OF CALIFORNIA AND SECRETARY SALAZAR SIGNED A MEMORANDUM OF UNDERSTANDING THAT TOOK US YET AGAIN TO ANOTHER LEVEL AND THIS IS WHERE WE ESTABLISHED THE RENEWABLE ENERGY POLICY GROUP AND WE BEGAN HAVING, IN ADDITION TO THE REGULAR MEETINGS AT THE STAFF LEVEL, REGULAR MEETINGS AT THE EXECUTIVE LEVEL WHERE WITH NOT ONLY THESE FOUR AGENCIES BUT EVERY OTHER AGENCY WHOSE DECISIONS AND WHOSE JURISDICTION TOUCHED ON THE FATE OF THESE PROJECTS WAS ALSO REPRESENTED. AS MICHAEL ALLUDED TO, I THINK IT WAS LESS, IT WASN'T MAGIC, IT WAS JUST SIMPLY FOLLOW-UP AND PROBLEM SOLVING, AND IT WAS CONSISTENT, AND THAT WAS WHAT WAS SO IMPORTANT ABOUT IT. AND STEVE BLACK AND JANEA SCOTT AND OTHERS WOULD CONSISTENTLY COME TO CALIFORNIA AND SIT WITH US AND WORK OUT ISSUES ON THE PROJECTS. AND THEN IN 2010 WE REALLY PUT IT TO THE TEST WITH THE REVIEW PROJECTS, AND WE'RE NOW STILL TALKING TO BLM ABOUT HOW WE MIGHT DO THE REVIW, HOW WE MIGHT DO IT DIFFERENTLY IF WE HAD MORE TIME, HOW WE MIGHT LEARN FROM THE EXPERIENCE OF 2010 AND PUT THE DIFFERENT PROCESSES TOGETHER, SEE WHAT WE CAN DO ABOUT JOINT DOCUMENTS OR NOT JOINT DOCUMENTS. SO THERE'S STILL A LOT OF LEARNING COMING OUT OF THE EXPERIENCE, BUT IT WAS A VERY IMPORTANT PARTNERSHIP AND IT'S A VERY IMPORTANT FOUNDATION FOR THE, FOR MOVING FORWARD, FOR THE DESERT RENEWABLE ENERGY CONSERVATION PLAN, AND FOR COMING UP WITH A CONSISTENT VISION FOR HOW WE WANT TO SEE DEVELOPMENT AND HOW WE'RE GOING TO ACHIEVE CONSERVATION OVER THE LONG TERM. SO, I'D LIKE TO ASK JIM TO PICK UP THERE.
THANK YOU, KAREN. AS WE TALK ABOUT THE ACCOMPLISHMENTS OF THE YEAR PAST, I THINK THE BEST WAY TO START IS TO REFLECT BY LOOKING BACK AND SEE IF THERE WERE ANY IMPORTANT LESSONS LEARNED AND I WILL SHARE WITH YOU MY PERSPECTIVE. THIS ADVICE, DON'T TRY THIS AT HOME. HOWEVER, IF YOU DO, A FEW WORDS OF ADVICE AND COUNSEL FROM OUR EXPERIENCE. ONE IS, I THINK CALIFORNIA IS WELL KNOWN FOR ITS HISTORY IN TERMS OF A NUMBER OF GOVERNMENT AGENCIES AND REGULATIONS AND ENVIRONMENTAL CONTROVERSIES, SO WE'VE BEEN FORTUNATE IN CALIFORNIA TO HAVE A 20 YEAR HISTORY THROUGH THE FORMATION OF THE CALIFORNIA BIODIVERSITY CONSULT, FEDERAL, STATE, AND LOCAL GOVERNMENT AGENCIES WORKING TO HELP TRY AND BETTER UNDERSTAND EACH OTHER'S ROLES AND RESPONSIBILITIES, AND PROVIDE PRIVATE LAND OWNERS, CITY AND THE ECONOMY OF CALIFORNIA TO THRIVE WHILE WE TRY AND PROTECT THE MANY SPECIAL RESOURCES THAT CALIFORNIA IS WELL-KNOWN FOR. SO THAT WAS AN IMPORTANT FOUNDATION THAT WE WERE ABLE TO BUILD ON. WE ALSO AS STATE AND FEDERAL AGENCIES TOOK ON THE EARLY INITIATIVE OF WORKING ON THE CALIFORNIA RENEWABLE ENERGY TRANSMISSION INITIATIVE AND TRIED TO USE THAT AS A FRAMEWORK AND A FORMAT TO HELP US CONSIDER WHERE WE HAD CAPACITY AND WHERE WE NEEDED CAPACITY TO TAKE ADVANTAGE OF THE WIND AND SOLAR RESOURCES THAT CALIFORNIA HAD. IT ALSO PROVIDED A GREAT FORMAT FOR US TO BRING TOGETHER DEVELOPERS, TRANSMISSION EXPERTS, GOVERNMENT EXPERTS AND ENVIRONMENTAL INTERESTS IN TERMS OF TALKING ABOUT THE RENEWABLE FUTURE THAT CALIFORNIA HAD HOPED TO ACHIEVE. WE WERE ABLE, AS KAREN MENTIONED, OVER THE PAST YEAR FROM THE DEPARTMENT OF THE INTERIOR BLM'S PERSPECTIVE, TO AUTHORIZE OR PERMIT SIX PROJECTS ON PUBLIC LAND. THOSE SIX PROJECTS WILL BRING FORTH, ONCE THEY'RE CONTRUCTED, 3,000 MEGAWATTS OF RENEWABLE ENERGY. THEY COVER A TOTAL OF ABOUT 24,000 ACRES OF THE 10.5 MILLION ACRES THAT BLM MANAGES IN SOUTHERN CALIFORNIA. SO IT IS AN IMPORTANT FIRST STEP IN TERMS OF MAKING SOME PROGRESS. I THINK WE ALL RECOGNIZE THAT IT IS A PART OF TAKING THAT FIRST STEP, AND IT WAS ALSO A LEARNING STEP FOR ALL OF US. WE DID IN A FEW PLACES STEP IN IT, AND IN A FEW PLACES STEP AROUND IT, AND IN A FEW PLACES DO SOME TWO-STEPPING, BUT ALL OF THAT WAS, I THINK, IMPORTANT IN TERMS OF HELPING US BETTER UNDERSTAND THE REGULATORY FRAMEWORK WE NEED TO PUT IN PLACE AS WE GO FORWARD AS WELL AS THE TYPES OF COMMUNICATION AND COORDINATION THAT ARE ESSENTIAL IN TERMS OF SUCCESS GIVEN THE HUGE COMPLEXITIES SURROUNDING RENEWABLE ENERGY PERMITTING. IF YOU DO DECIDE TO TRY THIS AT HOME, I WOULD SUGGEST CALIFORNIA'S MODEL MEMORANDUM OF UNDERSTANDING BETWEEN THE SECRETARY AND THE GOVERNOR'S OFFICE IS AN ESSENTIAL FOUNDATIONAL PIECE FOR ANY HOPE FOR SUCCESS. WE HAVE NOTED THE RENEWABLE ENERGY POLICY GROUP, WHICH STARTED OUT TO BE A FAIRLY SMALL GROUP OF STATE AND FEDERAL AGENCIES, WAS QUICKLY EXPANDED AS WE RECOGNIZED THAT IT WAS NOT JUST BLM AND US FISH AND WILDLIFE SERVICE, BUT THE CORPS OF ENGINEERS, EPA, US FOREST SERVICE, DOD, AND OTHERS WHO NEEDED TO BE BROUGHT TO THE TABLE TO ENSURE THAT THEIR INTERESTS AND REGULATORY REQUIREMENTS WERE SYCRONIZED WITH THE THINGS THAT WE WERE WORKING ON. AS MICHAEL MENTIONED AT THE GET GO, ONE OF THE FOUNDATIONAL PIECES THAT WE WORKED ON IN 2010 WAS ESTABLISHING A SET OF MILESTONES TO HELP US NOT ONLY KEEP PROJECTS ON POINT BUT ALSO RECOGNIZE WHERE THOSE IMPORTANT PITCH POINTS WERE, AND AS IT TURNED OUT ALL OF THE PROJECTS THAT WE WERE WORKING ON LAST YEAR ENDED UP REALLY RUNNING NECK AND NECK TOWARD THE FINISH LINE TO QUALIFY FOR ARRA FUNDING, AND SO A GOOD DEAL OF WORK THAT THE POLICY GROUP AND REAT OR THE ACTION TEAM WERE DOING WERE TRYING TO ENSURE THAT WE HAD ADEQUATE STAFFING, THAT WE WERE FORCASTING IN ADVANCE WHERE THOSE BOTTLE NECKS OR RESOURCE DEMANDS WERE GOING TO BE AND THAT WE WERE TRYING TO SOLVE PROBLEMS BEFORE US AS OPPOSED TO TRYING TO FIND OUR WAY OUT OF PROBLEMS AFTER THEY WERE STUCK ON US. A FEW SIDE BENEFITS THAT WE SHOULD MENTION—ONE OF THE THINGS WE WORKED ON AND DID DEVELOP IN CALIFORNIA WAS A SET OF MITIGATION COMPENSATION PRINCIPLES TO MATCH THE INTERESTS THAT WE HAD IN RENEWABLE ENERGY. WE LEARNED EARLY ON, I THINK DISCOVERED, THAT THERE WAS MUTUAL INTEREST IN TERMS OF ENSURING THAT WE BUNDLE MITIGATION AND THAT WE DO MITIGATION ON A LANDSCAPE VALUE BASIS SO THAT IT MAKES MORE SENSE. WE ALSO HAD THE GOOD FORTUNE OF WORKING WITH THE CALIFORNIA DESERT WORKING GROUP, WHICH BROUGHT A CONSENSUS-BASED SET OF RECOMMENDATIONS TO ALL OF THE AGENCIES IN TERMS OF THEIR ADVICE ON HOW TO MOVE FORWARD MORE QUICKLY. SOME OF THE NEGATIVE LESSONS LEARNED IN TERMS OF IF YOU DEMONSTRATE SOME EXCESS THEY WILL EXTEND THE ARRA DEADLINES AND YOU'LL HAVE AN OPPORTUNITY TO DO IT AGAIN. LIKE ANYTHING ELSE WE ARE GOING TO CONTINUE I THINK TO LEARN SOME ADDITIONAL LESSONS THROUGH SOME OF THE LITIGATIONS, THE CHALLENGES THAT WILL BE ADJUDICATED AS WE GO FORWARD. AS WE LOOK TO 2012 AND BEYOND, WE ARE SEEING SOME CHANGES IN TECHNOLOGY THAT WILL REQUIRE US TO LOOK AT WORKING DIFFERENTLY WITH STATE AGENCIES. WE'LL PROBABLY BE DOING LESS WORK WITH THE ENERGY COMMISSION, MORE WORK WITH COUNTIES AND OTHER STATE CEPA LEAD AGENCIES, WHICH WILL GIVE US AN OPPORTUNITY TO PROVIDE SOME NEW LEARNING EXPERIENCES AND EXPOSURES AND WE LOOK FORWARD TO THAT, BUT ARE VERY THANKFUL FOR THE ROADMAP AND THE PERMITTING FRAMEWORK THAT THE PAST YEAR HAS PROVIDED US IN TERMS OF FIGURING OUT THE SUCCESS PATHS THAT WE NEED FOR THE FUTURE. THANK YOU.
REALLY QUICKLY, WE'RE GOING TO TRY TO KEEP MOVING ALONG SO WE CAN GET TO YOUR QUESTIONS, BUT I'D LIKE TO SEE IF THERE ARE ANY OTHER FOLKS FROM THE REAT WHO ARE HERE IN THE AUDIENCE. I SAW ASHLEY AND TERRY O'BRIEN. IS THERE ANYBODY ELSE WHO ACTUALLY WORKED ON THE PERMITTING PROGRAMS IN THE AUDIENCE? MIKE FRISS, MINAL. COULD YOU JUST RAISE YOUR HANDS SO THAT PEOPLE CAN SEE THAT YOU'RE HERE? THANK YOU VERY MUCH FOR YOUR HARD WORK. WE'LL COME BACK TO SOME OF THE OTHER PARTICIPANTS FROM OTHER STAKEHOLDER GROUPS IN A FEW MINUTES. WITH THAT, I WANT TO INTRODUCE JOHN WHITE FROM THE COALITION FOR ENERGY EFFICIENCY AND RENEWABLE TECHNOLOGY, ONE OF OUR PREMIER ENVIRONMENTAL AND CLEAN ENERGY ADVOCATES IN THE STATE, AND HE'S GOING TO TALK A LITTLE BIT ABOUT ONE OF THOSE THINGS THAT THE PUBLIC HOPES FOR FROM THIS CHANGE IN THE GRID, WHICH IS JOBS, INVESTMENT IN OUR COMMUNITIES AND AN INCREASE IN COMMUNITY PROSPERITY.
THANK YOU, MICHAEL. I'M GOING TO, I CAN'T SEE THE SLIDES FROM UP HERE, SO I'M GOING TO NOT USE THEM, BUT
YOU'LL BE ABLE TO SEE THEM IN A SECOND. THEY'LL BE ON THE MONITOR DOWN THERE.
OK. THANK YOU. LETS GO WITH IT, WE DID A SURVEY OF PROJECTS THAT WERE UNDER THE PERMIT PROCESS TO REALLY FIND OUT WHO THEY WOULD BE HIRING AND FOR HOW LONG. WE DID DIFFERENT CATEGORIES—WE DID SOLAR THERMAL, WE DID SOLAR PV, WE DID WIND AND GEOTHERMAL. THE DEVELOPMENT IS GOING TO TAKE PLACE IN MOSTLY IN THE FOUR SOUTHERN CALIFORNIA COUNTIES OF KERN, RIVERSIDE, SAN BERNADINO, AND IMPERIAL. THIS IS A MAP OF THE PROJECTS THAT ARE, WE SURVEYED. IT'S NOT THE WHOLE LIST OF PROJECTS THAT ARE APPROVED AND ARE MOVING, BUT IT GIVES YOU AN IDEA OF THE GEOGRAPHIC DISTRIBUTION. TO THE NORTH IS THE TEHACHAPI WIND RESOURCE AREA, WHICH HAS A SUBSTANTIAL OPPORTUNITY, MAYBE 4-5,000 MEGAWATTS, 1,000 IS UNDER CONSTRUCTION NOW. THEN WE ALSO HAVE THE EASTERN DESERT OUT BY, IN THE EASTERN MOJAVE, AND THEN ALSO DOWN IN IMPERIAL AND BLYTHE WHERE THEY HAVE BOTH SUBSTANTIAL GEOTHERMAL DEVELOPMENTS AND SUBSTANTIAL SOLAR. WHAT THESE COUNTIES HAVE IN COMMON IS VERY, VERY HIGH UNEMPLOYMENT. THE STATEWIDE UNEMPLOYMENT IN CALIFORNIA NOW IS 12.5 PERCENT; IN SOME OF THESE COUNTIES IT'S 15-20, AND IN THE CASE OF IMPERIAL IT'S MAYBE EVEN 30 PERCENT, SO THE CONSTRUCTION INDUSTRY IS FLAT AND WHAT THE SURVEY WE DID SHOWED WAS A VERY SIGNIFICANT DISTRIBUTION OF WORK BETWEEN AND AMONG DIFFERENT TRADES THAT WOULD OCCUR OVER DIFFERENT PERIODS OF TIME. IN THE CASE OF THE WIND RESOURCE, IT'S A RELATIVELY SHORT CONSTRUCTION TIME, SO THE PEAK EMPLOYMENT IS SOMEWHERE BETWEEN TWO YEARS. IN THE CASE OF SOLAR THERMAL, THE BUILDUP TAKES LONGER BECAUSE THE PLANTS ARE PHASED, AND THE PEAK PERIOD IS OVER FOUR YEARS. WHAT THE COMBINATION SUGGESTS IS THAT THIS FLEET OF NEW RENEWABLE PROJECTS, WHICH REPRESENT A VERY, VERY LARGE FRACTION OF WHAT WE WILL NEED FOR THE 33 PERCENT RPS, THESE JOBS HAVE THE POTENTIAL TO REALLY BRING BACK THE CONSTRUCTION INDUSTRY THAT HAS BEEN FLATTENED BY THE RECESSION AND THE LOSS OF THE HOUSING MARKET. SO, THE PEOPLE THAT WILL BE HIRED ARE IN MANY CASES PEOPLE THAT HAVE BEEN LAID OFF RECENTLY AND THAT ARE SUFFERING VERY, VERY SIGNIFICANT UNEMPLOYMENT. THE THING THAT'S ALSO CLEAR IS THAT THERE'S GOING TO HAVE TO BE JUST LIKE WE HAVE TO PLAN THE RESOURCES AND THE BUILD OUT TO COORDINATE WITH THE TRANSMISSION AND TO ALSO TAKE THE TIME TO DO THE MITIGATION, LET'S JUST SAY FOR A MOMENT THAT WE REALLY OWE A TREMENDOUS AMOUNT OF THANKS TO THE FEDERAL AND STATE EMPLOYEES FOR THEIR LEADERSHIP FOR GETTING US THIS FAR. ALSO MAY I SAY TO THE NGO COMMUNITY, WHICH WORKED VERY HARD ON PROJECTS THAT REPRESENTED SOME SIGNIFICANT IMPACTS, I THINK IT'S FAIR TO SAY THAT THE PROJECTS GOT BETTER AS THEY WENT THROUGH THE PROCESS. NOT ALL OF THE IMPACTS HAVE BEEN AS MITIGATED AS PEOPLE WOULD WISH, BUT AS A RESULT OF THIS EXTRAORDINARY COLLABORATION, WE NOW HAVE AN OPPORTUNITY TO LAY THE FOUNDATION FOR A VERY SIGNIFICANT ECONOMIC REVIVAL ALONG WITH THE TRANSFORMATION OF THE RENEWABLE ENERGY ECONOMY. THE WORK THAT IS REQUIRED WILL REQUIRE ALSO OPERATING JOBS AS THE PROJECTS WIND DOWN FROM THEIR CONSTRUCTION, AND I THINK THE KEY THING FOR THE FUTURE IS TWO-FOLD: CAN WE KEEP THIS MOVING FORWARD AND CAN WE SHOW STEADY AND SUSTAINED ECONOMIC ACTIVITY AS A RESULT OF THE CHANGE TO CLEAN ENERGY? IF WE CAN, I THINK WE HAVE THE OPPORTUNITY TO HAVE A MUCH, MUCH BROADER BASE OF SUPPORT AND A MUCH BROADER IMPACT ON THE ECONOMY. THE OTHER THING THAT WE SEE NOW IS INCREASING SUPPLY CHAIN ACTIVITY ASSOCIATED WITH THESE PROJECTS. SO IN ADDITION TO THE DIRECT JOBS ASSOCIATED WITH THE CONSTRUCTION AND THEN THE MULTIPLYER, THIS IS AN ILLUSTRATION OF THE CASE OF THE WIND PROJECTS, IN ADDITION TO THE DIRECT JOBS THERE IS ALSO INDIRECT JOBS ASSOCIATED. THIS IS A STUDY DONE BY ENEXCO OF, BY A PROFESSOR THAT LOOKS AT THE ECONOMIC BENEFITS TO KERN COUNTY FROM THE BUILD OUT OF THE PROJECTS, SO IN ADDITION TO THE DIRECT EMPLOYMENT, YOU'VE ALSO GOT INVESTMENT AND OTHER ACTIVITY. THE SUPPLY CHAIN WORK THAT IS COMING ALSO WHEN WE LOOK AT WHERE THE STEEL IS GOING TO COME FROM, ONE OF THE SOLAR PROJECTS WILL HAVE AS MUCH STEEL AS THE GOLDEN GATE BRIDGE. THERE'S GLASS ASSOCIATED WITH THESE PROJECTS, THERE'S OTHER KINDS OF PARTS AND WE HOPE TO CAPTURE A SIGNIFICANT FRACTION OF THAT WITH THE SUPPLY CHAIN, AND AS WAS MENTIONED BECOME EXPORTERS NOT ONLY TO THE REST OF OUR NEIGHBORS, BUT ALSO TO THE REST OF THE WORLD AND TO HAVE CALIFORNIA AND THE U.S. BECOME COMPETITORS ON THE GLOBAL STAGE AS A RESULT OF THIS WORK THAT WE HAVE JUST NOW BEGUN. SO, WITH THE STUDIES ON OUR WEBSITE, YOU CAN FIND IT AT CEERT.ORG, WE'RE GOING TO KEEP WORKING ON THIS, BUT WHAT IT ILLUSTRATES IS THAT THE CLEAN ENERGY ECONOMY IS REALLY ABOUT A LOT OF WORK BEING CREATED FOR PEOPLE THAT NOW DON'T HAVE AS MUCH AS WE HAD BEFORE AND I THINK IT'S CREATING A DYNAMIC THAT IS MAKING IT MORE URGENT THAT WE BE SUCCESSFUL. SO I WANT TO THANK AGAIN THE LEADERSHIP THAT WE'VE HAD TO GET US THIS FAR THIS FAST AND TO TAKE AND MANAGE THE OPPORTUNITY, AND HOPEFULLY LAY DOWN A MARKER THAT WILL KEEP US GOING FOR YEARS TO COME. THANK YOU.
THANK YOU, OUR NEXT SPEAKER IS SHANNON EDDY WHO IS REPRESENTING THE LARGE SCALE SOLAR ASSOCIATION. THEY'RE AN ASSOCIATION THAT TRACKS POLICY ISSUES ON BEHALF OF MANY OF THE LARGER SOLAR DEVELOPERS IN CALIFORNIA. SHANNON.
THANKS, MICHAEL. EXCUSE ME. I THINK THE FACT THAT WE'RE ALL HERE TODAY AND EVEN HAVING THIS CONVERSATION IS EMBLEMATIC OF THE FACT THAT WE'VE MADE SOME REALLY SIGNIFICANT STRIDES ON SITING RENEWABLE ENERGY, CERTAINLY IN THE WEST. I WAS GOING TO SPEND SOME TIME THANKING AND PRAISING THE COORDINATED EFFORTS AND EVERYONE HAS DONE THAT AND IT MERITS YET ANOTHER MENTION. THE FACT THAT THE FEDERAL AGENCIES AND THE STATE AGENCIES HAVE COORDINATED IN THE WAY THAT THEY HAVE IS THE ONLY REASON THAT WE ARE WHERE WE ARE TODAY. MANY THANKS GO TO MINAL AHMUD AND MICHAEL PICKER NOW WITH GOVERNOR BROWN'S OFFICE AND STEVE BLACK AND JANEA SCOTT AT THE FEDERAL LEVEL AND EVERYONE WHO HAS REALLY DEVOTED A LOT OF TIME TO THIS. IT'S JUST BEEN A HISTORIC, A HISTORIC EFFORT AND FANTASTIC. REGARDLESS OF WHETHER OR NOT THERE'S AGREEMENT THAT SITING DECISIONS MADE LAST YEAR WERE GOOD ONES, GOOD STEPS HAVE BEEN TAKEN. COULD WE DO IT BETTER? YES. CAN WE DO IT BETTER IN THE FUTURE? ABSOLUTELY. WHAT WE NEED TO REMEMBER IS THAT WE'VE NEVER DONE THIS BEFORE. IN THE CASE OF UTILITY SCALE SOLAR, WE HAVEN'T HAD THESE KINDS OF RIGHT OF WAY APPLICATIONS. THIS IS NEW TECHNOLOGY WITH NEW KINDS OF FOOTPRINTS THAT IT'S GOING TO REQUIRE NEW KINDS OF MITIGATION REQUIREMENTS. SO WE'RE ESSENTIALLY MAKING A PROGRAM OUT OF WHOLE CLOTH, AND THAT'S BEEN TAKING A LOT MORE TIME THAN I THINK ANYONE HAD REALLY ANTICIPATED, AND THE FACT THAT WE'RE HAVING SUCH COLLABORATIVE CONVERSATIONS BETWEEN THE ENVIRONMENTAL COMMUNITY AND THE INDUSTRY IS AGAIN ANOTHER NOD TO SOME GOOD SUCCESS. WHAT I'D LIKE TO DO IS COVER ABOUT 10 POINTS IN THE NEXT FEW MINUTES IN TERMS OF WHAT I'M COVERING, ESSENTIALLY WHAT THE SOLAR INDUSTRY SEES AS NECESSARY TO ACHIEVE SOME SUCCESS IN 2011 AND BEYOND. I'LL START WITH NUMBER 10 AND THAT WOULD BE TO GET A REALLY COMMITTED PATHWAY FOR THE DOE LOAN GUARANTEE PROGRAM. WE HAVE A FEW LOAN GUARANTEES THAT HAVE BEEN APPROVED. SEVERAL ARE IN THE WORKS. I'M HOPING THAT WE GET A BUNCH MORE APPROVED THIS YEAR. WHEN YOU LOOK AT THE OIL AND GAS INDUSTRY AND SEE THE EXTENT TO WHICH THEY HAVE BEEN HEAVILY SUBSIDIZED AND ARE A VERY WELL-DEVELOPED INDUSTRY, IT'S EVEN MORE CLEAR THAT A NASCENT INDUSTRY LIKE THE SOLAR FOLKS REALLY DESERVE THE KIND OF ATTENTION AND FOCUS THAT THE LOAN GUARANTEE PROGRAM PROVIDES, SO I HOPE THAT WE CAN GET THINGS GOING THERE. NUMBER 9, WE NEED POLICY CERTAINTY. NOTHING WILL CRIPPLE AN INDUSTRY FASTER THAN STOP START INCENTIVES IN POLICY AND UNCERTAIN POLICY PATHWAYS. NUMBER 8, WE NEED LAND-USE PLANS THAT ACTUALLY MAKE SENSE AND ALLOW DEVELOPERS TO FIGURE OUT WHERE THEY NEED TO GO WITH THE LOWEST SPECIES DENSITIES, HIGH INSTILLATION, LOW SLOPE, ETC. AND THAT OF COURSE LEADS TO THE NEXT ONE, WHICH IS THAT WE NEED A SOLAR PEIS THAT ACTUALLY WORKS FOR SOLAR. THERE'S BEEN SOME GOOD WORK THAT HAS GONE INTO THE PEIS THUS FAR. WHAT YOU'LL HEAR OUT OF THE SOLAR INDUSTRY IS THAT WE'LL PROBABLY SUPPORT, WE WILL SUPPORT THE PREFERRED ALTERNATIVE, WHICH WOULD ESTABLISH SOLAR DEVELOPMENT ZONES WHILE ALSO ALLOWING SMART DEVELOPMENT OUTSIDE THE ZONES. I THINK IT ALSO MERITS ANOTHER LOOK TO SEE IF WE CAN CREATE AND COME UP WITH SOME MORE ROBUST SOLAR ZONES AS WELL. SPECIFICALLY FOR CALIFORNIA, AND YOU'RE SEEING A LOT OF DEVELOPMENT IN CALIFORNIA, MICHAEL DIDN'T TALK MUCH ABOUT THE 2011 PIPELINE, BUT WE'VE GOT ROUGHLY ABOUT 17,000 MEGAWATTS OF SOLAR IN THE PERMITTING PIPELINE RIGHT NOW. IT'S REALLY UNHEARD OF TO HAVE THAT MUCH DEVELOPMENT IN THE PIPELINE AT ANY ONE TIME. WHAT I'D LIKE TO DO IS TOUCH A LITTLE BIT ON THE DESERT RENEWABLE ENERGY CONSERVATION PLAN, WHICH KAREN MENTIONED. ONE OF THE THINGS THAT THE INDUSTRY WOULD REALLY LIKE TO SEE OUT OF A PLANNING PROCESS LIKE THIS ONE IS GRADIENCE, RATHER THAN ESTABLISHING GO, NO-GO ZONES FOR DEVLEOPMENT WHAT WE'D LIKE TO DO IS HAVE GRADIENCE. YOU ESTABLISH AREAS WHERE IT WOULD BE EASY TO SITE AND AREAS WHERE IT WOULD BE INFEASIBLE TO SITE AND ALL OF THE GRADATIONS IN BETWEEN. THESE ARE SMART PEOPLE WORKING IN AN ADVANCED RISK INDUSTRY. IF YOU SHOW THEM HIGH INSTILLATION AREAS WITH LOWEST SPECIES DENSITIES, THAT'S WHERE THEY'RE GOING TO GO. NUMBER 6, LET'S AVOID ARTIFICIAL MEGAWATT CEILINGS. THERE HAVE BEEN A LOT OF CONVERSATIONS ABOUT HOW MANY MEGAWATTS WE'RE GOING TO BE PUTTING INTO THE GROUND IN THE DRECP, THE DESERT RENEWABLE ENERGY CONSERVATION PLAN, THE PEIS, THAT SORT OF THING. IF WE'RE SERIOUS ABOUT TRANSITIONING TO A CLEAN ENERGY FUTURE IN THE WAY THAT PRESIDENT OBAMA LAID OUT IN HIS STATE OF THE UNION, WE NEED TO BE THINKING MORE ABOUT HOW TO SPUR LONG TERM INVESTMENT IN SOLAR AND WIND RATHER THAN FINDING CREATIVE WAYS TO LIMIT IT. AND OF COURSE, WE NEED TO BRING THE POWER TO MARKET, AND THAT MEANS WE NEED SOME COMPREHENSIVE TRANSMISSION BUILD OUT. AND NOTICE I'M NOT SAYING PLANNING; WE'VE GOT GREAT PLANS, ESPECIALLY IN CALIFORNIA AND IN THE WEST, WE HAVE ALL KINDS OF PLANS. AS A FRIEND OF MINE LIKES TO SAY, MY 8-YEAR-OLD DAUGHTER WITH A CRAYON COULD PROBABLY DRAW WHERE THE TRANSMISSION LINES NEED TO GO. AT THIS POINT WE NEED TO FIGURE OUT HOW TO GO FROM INTERNETCTION REQUESTS, AND PLAN, AND LGIA TO ACTUAL CONSTRUCTION. IF WE SPEND ALL THIS TIME WORKING REALLY HARD TO GET SOLAR FACILITIES SITED, AND THEN ARE SOMEHOW FACING FAILURE OR DELAY BECAUSE OF TRANSMISSION PROBLEMS, THEN I THINK WE'VE GOT A PROBLEM MORE GENERALLY. JUST A COUPLE OF EXAMPLES ON TRANSMISSION, I THINK ESTABLISHING SOME SMART CORRIDORS WOULD BE A GOOD STEP; ALLOWING FOR ABANDONED PLANT TREATMENT FOR THE UTILITIES, RESOLVING COST-ALLOCATION ISSUES AND INTEGRATION ISSUES WHICH IS REALLY BIG IN CALIFORNIA RIGHT NOW IS GOING TO BE IMPORTANT AS WELL. NUMBER 3, LET'S MAKE SURE OUR STATE AND FEDERAL AGENCIES ARE WELL-FUNDED. IF WE DON'T HAVE ADEQUATE STAFF, WE BASICALLY DON'T HAVE A PROGRAM. WITHOUT A PROGRAM, WE DON'T HAVE DEVELOPMENT, WITHOUT RENEWABLE DEVELOPMENT WE'RE GOING TO GET A LOT MORE COAL AND GAS, AND THAT'S HEADED IN THE WRONG DIRECTION, OBVIOUSLY. A LOT OF TALK HAS BEEN GOING ON ABOUT THIS HOLY GRAIL OF FINDING THE PERFECT PRIVATE LAND PARCELS ON DISTURBED LAND WITH LOW SPECIES DENSITIES, AND I THINK PRIVATE LANDS WILL CONTINUE TO BE RELATIVELY UNCERTAIN TERRITORY UNTIL WE FIGURE OUT HOW TO RESOLVE SECTION 10 CONSULTATION, AT LEAST PERCEIVED DELAYS. SENATOR FEINSTEIN RECENTLY SENT A LETTER TO SECRETARY SALAZAR IN DECEMBER ADVOCATING FOR A PILOT PROJECT FOR REIMBURSABLE FEES FOR DEVELOPERS TO HELP FUND THE PROGRAM. WE THINK THAT'S A GREAT WAY TO GO. EARLY CONSULTATION'S ALSO GOING TO BE IMPORTANT. I THOUGHT THE LUNCH CONVERSATION WAS A GOOD BRAINSTORMING SESSION ON HOW WE CAN IMPROVE THE PROCESS MORE GENERALLY. FINALLY, AND I THINK REALLY ULTIMATELY, WE NEED A LONG-TERM PROGRAM THAT COMPREHENSIVELY ADDRESSES SITING ON BOTH FEDERAL LANDS AND PRIVATE LANDS. MY NUMBER 1 IS SORT OF A CATCH-ALL, SO BEAR WITH ME HERE. I'M GOING TO MAKE A PITCH FOR MORE PROGRESSIVE RENEWABLE PROCUREMENT TARGETS. CALIFORNIA HAS NOT YET CODIFIED THE 33 PERCENT AND THE UTILITIES HAVE ALREADY PROCURED BEYOND 33 PERCENT, SO WE'VE GOT TO START THINKING ABOUT WHAT THE NEXT GOAL IS GOING TO LOOK LIKE. SAME FOR THE OTHER STATES, WE'VE GOT TO REALLY START PUSHING THE BOUNDARIES OF WHAT WE THINK WE CAN DO AND START HEADING IN THAT DIRECTION. FINALLY, AND I'M GOING TO COME BACK TO COORDINATION, WE NEED TO DO EVERYTHING WE CAN TO BOTH SUPPORT THE COORDINATION EFFORTS THAT ARE HAPPENING AT THE AGENCY LEVEL AND ASSIST THEM IN ANY WAY POSSIBLE, BECAUSE AGAIN, IT REALLY IS THE ONLY REASON THAT WE ARE AS FAR ALONG AS WE ARE TODAY. MANY THANKS TO THEM AND THANKS TO YOU ALL.
THANK YOU, SHANNON. SHANNON'S STRUGGLING WITH A COLD, SO IF SHE GOES TO SLEEP WE'LL ALL FORGIVE HER. MARK THOLKE IS FROM ENEXCO. THEY ARE BOTH A WIND AND A SOLAR DEVELOPER. MARK'S PRIMARILY, HOWEVER, BEEN ACTIVE IN CALIFORNIA AS A WIND DEVELOPER. HE'S A CLEAR LEADER IN THE INDUSTRY, VERY REASONABLE AND THOUGHTFUL AND HARD-WORKING. SO WE INVITED HIM TODAY TO KIND OF SHARE HIS UNDERSTANDING OF HOW THINGS WORKED AND DIDN'T WORK LAST YEAR IN CALIFORNIA. THANK YOU, MARK.
WELL, THANK YOU. I'M DELIGHTED TO BE HERE, AND THANK YOU FOR MAKING TIME AS WELL. SO I JUST WANT TO FIRST ACKNOWLEDGE THAT THESE ISSUES ARE COMPLICATED. RENEWABLE ENERGY IS CLEARLY A PUBLIC POLICY GOAL, WHETHER IT'S GREEN ENERGY JOBS NOW, ENERGY SECURITY, OR FOSSIL-FUEL FREE EMISSION SOURCES, OUR ENERGY SOURCES, THERE'S CLEARLY A PUBLIC POLICY GOAL. AT THE SAME TIME, I DON'T THINK ANYBODY IN THIS ROOM WANTS TO TRIGGER EXTINCTIONS OF SPECIES, THE DEATH OF BIRTH. SO I THINK THAT THIS IS A PUZZLE AND I WOULD ASK US ALL TO BRING OUR GAME UP A LITTLE BIT TO HELP SOLVE IT, BECAUSE I REALLY THINK IT'S IMPORTANT. I WANT TO BEGIN WITH A COUPLE OF FACTOIDS FROM THE WIND INDUSTRY. SO BEAR WITH ME WITH A COUPLE OF NUMBERS, BUT I THINK IT HELPS ILLUSTRATE. SO, IN 2005, THE UNITED STATES INSTALLED 24 HUNDRED MEGAWATTS OF WIND. THAT'S ABOUT 21 PERCENT OF THE NEW WIND INSTALLED IN THE WORLD THAT YEAR. ONE MEGAWATT IS APPROXIMATELY 350 HOURS. IN 2005, CHINA INSTALLED 500 MEGAWATTS OF WIND, WHICH WAS 4 PERCENT OF THE TOTAL INSTALLED THAT YEAR. IN 2010, FIVE YEARS LATER, THE UNITED STATES, WE HAD 5,000 MEGAWATTS OF WIND THAT REPRESENTED 14 PERCENT OF THE NEW WIND IN THE WORLD AND CHINA INSTALLED 16,500, WHICH IS 46 PERCENT OF THE WIND INSTALLED IN THE WORLD JUST FIVE YEARS AFTER BEING AT 4 PERCENT. AS AN ASIDE, WHAT RELATED TO THIS, I SHOULD SAY, 5,000 MEGAWATTS IN 2010 IS 10,000 OF WIND IN 2009. NOW, WHY, WE CAN TALK ABOUT THAT ANOTHER TIME. ALL THE TAX INCENTIVES WERE IN PLACE. SO, THE WIND INDUSTRY IS NOT ON ANY SORT OF NATURAL LINEAR INCREASE. WE JUST HAD AN INSTILLATION CUT IN HALF IN 2010. AGAIN, I CAN GO INTO THE REASONS FOR THAT SLOW DOWN IN THE MARKET, IF YOU WANT, BUT THE POINT HERE BEING THAT CHINA WENT FROM 2 PERCENT OF TOTAL, OF ALL THE WIND—SO I JUST NAMED NEW INSTALLED WIND, SO IN TERMS OF CAPACITY OF WIND INSTALLED WORLDWIDE CAPACITY—IN 2005 CHINA HAD 2 PERCENT. IN 2010, FIVE YEARS LATER, IT WAS 22 PERCENT. IN THE UNITED STATES, ACCORDING TO THE ENERGY, YOU KNOW, EIA, THE TOTAL NON-HYDRO RENEWABLES, THE PERCENT OF THE ELECTRICITY SUPPLY FROM NON-HYDRO RENEWABLES IS 2.5 PERCENT. THAT'S NOT A LOT. OK, SO I WANT TO JUST NOW CHANGE TO CLIMATE CHANGE. THIS IS FROM THE IPCC. THE IPCC BELIVES THAT THERE'S A 90 PERCENT CHANCE THAT THE WARMING THAT WE'VE EXPERIENCED FROM THE 1950S, 90 PERCENT CHANCE, 90 PERCENT PROBABILITY, THAT THE WARMING WE'VE EXPERIENCED SINCE 1950 IS DUE TO HUMAN ACTIVITIES. THE IPCC HAS ESTIMATED THAT THE WARMING IS 1.2 TO 1.4 DEGREES IN THE LAST CENTURY. THEY'RE PROJECTING THAT THIS NEXT CENTURY IS 4 TO 7 PERCENT, I'M SORRY, 4 TO 7 DEGREES FAHRENHEIT INCREASE. SO WE'VE GOT A PROBLEM AND I JUST WANT TO SET THE STAGE WITH THAT BECAUSE WE HAVE SOME CONFLICTING GOALS, BUT I THINK IF WE BRING OUR A-GAME WITH THIS STUFF I THINK WE CAN MAKE SOME PROGRESS. I FIRST WANT TO ACKNOWLEDGE AND REPEAT SOME OF THE OTHER STUFF. THERE'S BEEN AN ENORMOUS AMOUNT OF PROGRESS MADE AND THERE'S BEEN AN ENORMOUS AMOUT OF WORK INVESTED. THIS PROGRESS THAT HAS BEEN MADE IN CALIFORNIA AND IN OTHER STATES, IT DIDN'T COME FOR FREE AND IT'S WORK THAT REALLY MATTERS AND OUR HATS OFF TO THE FOLKS IN GOVERNMENT THAT MADE THAT SO. FOR REASONS, AND I WOULD SUGGEST, FOR THESE REASONS OF NATIONAL COMPETITIVENESS, AS WELL AS RESPONDING TO THE CLIMATE CHANGE THREAT, WE CANNOT AFFORD TO LOSE THAT MOMENTUM—WE NEED TO ACCELERATE IT. SO, GETTING BACK TO THE PURPOSE OF THIS PANEL, I THINK WE'LL HEAR A LOT ABOUT SMART FROM THE START AND THE NEED FOR ORDERLY PLANNING. IT'S TRUE THAT FASTER DOES NOT AUTOMATICALLY MEAN BETTER. IF FASTER MEANS THAT CORNERS WERE CUT, THE DELAYS ASSOCIATED WITH GOING FASTER WILL PRODUCE SUB-OPTIMAL RESULTS. THE MAIN POINT I WANT TO LEAVE WITH YOU IS THAT, FROM THE INDUSTRY PERSPCTIVE, CERTAINTY IS WHAT IS THE MOST IMPORTANT THING THAT WE, I SHOULD SAY ONE OF THE MOST IMPORTANT THINGS THAT WE VALUE. ONE OF THE WORST THINGS THAT CAN HAPPEN IS THAT WE'VE INVESTED MILLIONS OF DOLLARS, THE EQUIPMENT'S ON IT'S WAY, AND SUDDENLY THERE'S A SURPRISE AND THE PROJECT GETS DELAYED. THAT WILL, AND THAT CIRCULATES THROUGHOUT THE INDUSTRY. THE BANK'S LENDING RATES GO HIGHER. THESE PROJECTS ARE FINANCED ON A 20 YEAR PRO FORMA, THAT MEANS ALL OF THE ASSUMPTIONS ARE MADE IN THE YEAR THAT IT IS BUILT. SO, SOMETHING THAT HAPPENS IN YEAR 5, OR SOME KIND OF CHANGE THAT HAPPENS IN YEAR 12, IT IS NOT ASSUMED IN THAT FINANCIAL MODEL AND IT HAS A MATERIAL IMPACT NOT ONLY FOR THAT PROJECT BUT ALSO THAT SPREADS THROUGHOUT THE INDUSTRY AND THE BANKERS THAT FINANCE THAT. IT HAS A RIPPLE EFFECT AND INCREASES THE COST OF RENEWABLE ENERGY AS A WHOLE. SO, THE LAST POINT I WANT TO MAKE IS THAT THE METRIC OF SUCCESS IS, I WOULD SUBMIT TO YOU THAT THE METRIC OF SUCCESS IS NOT A PERMIT. THE METRIC OF SUCCESS IS STEEL IN THE GROUND. SO, WITH THAT, I APPRECIATE YOUR TIME, THANK YOU.
OUR NEXT PANELISTS ARE BOTH REPRESENTING ENVIRONMENTALIST CONSTITUENCIES AND I KNOW THAT MICHAEL AND KIM HAVE HAD SOME STRATEGY. I'M NOT SURE HOW CARL AND KIM WANT TO HANDLE THIS, BUT I'LL INSTRODUCE YOU AND LET YOU GUYS TAKE IT FROM THERE. CARL POPE IS A LONG TIME LEADER IN THE ENVIRONMENTAL COMMUNITY IN CALIFORNIA, STARTING WITH THE CLCV, LONG TIME PRESIDENT OF THE SIERRA CLUB. NOW WHAT DO YOU DO?
I'M THE CHAIRMAN OF THE SIERRA CLUB.
AH, OK. THAT'S WHERE MY $75 DUES GO. AND HE'S WORKING, HE'S BEEN VERY, VERY, VERY ARDUOUS LATELY IN TRYING TO DE-CARBONIZE OUR ELECTRICAL SUPPLY AND OUR TRANSPORTATION FLEET. KIM DELFINO IS A VERY IMPORTANT PLAYER IN THE CALIFORNIA POLICY COMMUNITY. SHE HAS HELPED TO SHAPE A LOT OF THE FOUNDATIONAL ENVIRONMENTAL PROGRAMS THAT WE'RE USING TO TRY TO PLAN FOR THE FAR FUTURE. SHE'S VERY ACTIVE IN ADVOCATING AND HELPING TO MAKE THESE PROJECTS BETTER. NOT ONLY IS SHE INTELLIGENT, SHE'S FEROCIOUS. KIM, CARL, I'LL LEAVE THAT TO YOU.
WELL, KIM SAID THAT I COULD GO FIRST. I SPENT LAST NIGHT FLYING OVER GREENLAND AFTER A WEEK IN INDIA LOOKING AT RENEWABLE ENERGY THERE, SO I'M GOING TO STEP BACK A LITTLE BIT AND COMMENT AT LISTENING TO PRESENTATIONS YOU'VE HEARD ABOUT WHAT WAS ACCOMPLISHED IN CALIFORNIA IN THE LAST YEAR, THE CHALLENGES THAT WERE MADE AND THE INCREDIBLE AMOUNT OF TALENT AND EFFORT AND THE WORK REQUIRED TO DO IT. I AM REMINDED OF A POLITICALLY INCORRECT COMMENT BY SAMUEL L. JOHNSON. I WON'T SAY THE FIRST PART, BUT THE SECOND PART WAS IT'S LIKE A DOG WALKING ON ITS HIND LEGS. IT'S NOT THAT IT'S DONE WELL, IT'S THAT YOU'RE SURPRISED TO SEE IT DONE AT ALL. WE ACTUALLY HAVE A SYSTEM IN THIS COUNTRY WHICH MAKES PROGRESS VIRTUALLY IMPOSSIBLE. THAT'S WHAT YOU'VE JUST HEARD. THE THING THAT YOU'VE JUST HEARD FROM WHAT'S HAPPENING IN CHINA SHOULD INDICATE THAT THAT IS NOT AN UNAVOIDABLE 21ST CENTURY REALITY. THAT'S JUST HOW WE SET IT UP. NOW THERE'S SOME REASONS FOR IT. THE ELECTRICAL SECTOR IN THE UNITED STATES WAS DESIGNED FUNDAMENTALLY BACK IN THE 1920S AT A TIME WHEN RELIABILITY WAS VIRTUALLY THE ONLY CRITERIA FOR SUCCESS. IT WAS NOT DESIGNED TO BE INNOVATIVE AND IT'S NOT. WE'RE STILL USING POWER PLANTS THAT WERE BUILT IN 1921 THAT BURNED COAL, WE'RE STILL USING ACTUALLY TURBINES AT HYDROPLANTS THAT ARE OLDER THAN THAT. THERE'S NO OTHER PART OF THE AMERICAN ECONOMY WHERE THAT'S TRUE. THAT SLUGGISHNESS HAS CREATED A SET OF INCUMBENT PLAYERS. THEY'RE NOT EVIL PEOPLE, BUT THEY'RE INCUMBENT PLAYERS. THEY HAVE SHAREHOLDER INTERESTS. THEY DON'T WANT TO CHANGE VERY FAST. IT'S NOT IN THEIR SELF-INTEREST. WE HAVEN'T MADE IT IN THEIR SELF-INTEREST. WE ALSO HAVE, IN CALIFORNIA IN PARTICULAR, A REMARKABLE LEGACY FOR SOLVING PROBLEMS BY CREATING NEW STATE AGENCIES. THAT'S NOT HOW THEY DO IT IN CHINA. AND UNLESS WE CONFRONT THAT REALITY THAT THE SYSTEM NEEDS TO BE FUNDAMENTALLY REDESIGNED SO THAT WE CAN PUT OUR EFFORT INTO MORE RENEWABLE ENERGY AND BETTER SITES, MORE BIOLOGICAL SURVEYS, MORE IMPROVEMENTS IN THE TECHNOLOGY OF WIND TURBINES, BETTER TRANSMISSION LINES, MORE EFFICIENT USE OF OUR TRANSMISSION SYSTEMS, UNLESS WE CAN SHIFT OUR ENERGY INTO DOING THINGS BETTER, WE MAY NEED 33 PERCENT BECAUSE WE'VE HEARD HOW HARD PEOPLE ARE WILLING TO WORK TO MEET THAT GOAL. BUT 33 PERCENT IS NOT THE GOAL. WE HAVE TO GET TO 80 PERCENT. WE HAVE TO BASICALLY REPLACE EVERYTHING WE HAVE IN THIS COUNTRY IN THE NEXT 40 YEARS. WE HAVE TO REDO WHAT WE DID OVER 200 YEARS IN 40 YEARS AND WE'RE DOING THINGS APPROXIMATELY A FIFTH AS FAST AS WE NEED TO DO THEM. WHEN I BEGAN, WE HAD AN ARM WRESTLE WITH, ABOUT A LARGE SOLAR PROJECT IN CALIFORNIA THAT I WAS JUST HEAVILY INVOLVED IN. WASN'T A COMPLETE DISASTER, IT WASN'T A COMPLETE SUCCESS. AT THE BEGINNING OF THE PROCESS, THE DIRECTOR OF GOVERNMENT AFFAIRS OF THE COMPANY SAT DOWN AND SAID THE ONE THING I WANT TO TELL YOU IS WHATEVER HAPPENS ON THIS PROJECT, I WANT TO WORK WITH YOU TO FIX THIS PROCESS, BECAUSE THIS PROCESS IS A NIGHTMARE. AND I WASN'T WILLING AT THE BEGINNING TO SAY I KNEW THE PROCESS IS A NIGHTMARE. I DIDN'T. I DIDN'T HAVE ANY CONCEPT. AT THE END, AT THE VERY END IT BECAME CLEAR THAT BECAUSE OF COMPLETELY ARTIFICIAL DEADLINES AND PROCESSES, WHICH HAD NOTHING TO DO WITH ANY PUBLIC POLICY PURPOSE, THEY WERE JUST LEGACIES OF THE WAY THINGS HAPPENED, VERY IMPORTANT IMPROVEMENTS IN THE PROJECT, WHICH WERE ECONOMICALLY AND ENVIRONMENTALLY DESIRABLE COULD NOT BE MADE. YOU COULDN'T GET FROM HERE TO THERE BECAUSE THE PROCESS WAS NOT DESIGNED TO IMPROVE THE PROJECT AS WE WENT ALONG. THE PROCESS WAS DESIGNED TO MAKE SURE THAT EVERYBODY HAD THEIR SAY. THEY'RE NOT THE SAME THING. THAT'S THE CHALLENGE THAT THIS COUNTRY FACES IN THIS CENTURY.
WELL, I'M GOING TO ZOOM US BACK TO CALIFORNIA AND 2010 AND GOING INTO 2011 AND TALK ABOUT MY EXPERIENCES IN DEALING WITH HOW WE MEET OUR RENEWABLE ENERGY GOALS. I WANT TO JUST ECHO, TO BEGIN WITH, I JUST WANT TO SAY THAT I WANT TO THANK STEVE AND JANEA AND THE DEPARTMENT OF INTERIOR, FISH AND WILDLIFE SERVICE, AND ALL OF THE AGENCIES THAT WE'VE BEEN WORKING WITH. THESE PEOPLE HAVE WORKED INCREDIBLY HARD OVER THE LAST COUPLE OF YEARS. I KNOW THAT THEY'RE TRYING TO DO THE RIGHT THING. IT'S NOT BEEN AN EASY PROCESS, NECESSARILY, AND I'LL OUTLINE SOME OF THE ISSUES, BUT IT HAS BEEN A COLLABORATIVE ONE AND ONE THAT I WOULD ECHO IN TERMS OF IT IS A, WHEN YOU'RE LOOKING AT STANDING UP HOW AGENCIES SHOULD BE WORKING TOGETHER, AND HOW TO MOVE PROCESSES FORWARD, I THINK THE RENEWABLE ENERGY ACTION TEAM AND THE RENEWABLE ENERGY POLICY GROUP MODEL IS A VERY GOOD MODEL TO FOLLOW. 2009-2010 WAS A REAL LEARNING EXPERIENCE. I REALLY, I DID NOT START MY CAREER WORKING ON ENERGY, I STARTING WORKING AT DEFENDERS OF WILDLIFE. MY CAREER IS FOCUSED ON CONSERVING BIODIVERSITY, PROTECTING THE VERY SAFETY NETS ON WHICH OUR EXISTENCE DEPENDS ON. OBVIOUSLY, MY ORGANIZATION AND THE ENVIRONMENTAL COMMUNITY BELIEVE STRONGLY THAT WE MUST BE TRANSITIONING FROM CARBON AND FROM GLOBAL WARMING EMISSIONS, MOVING AGGRESSIVELY TO A RENEWABLE ENERGY, TO AN AGGRESSIVE RENEWABLE ENERGY STANDARD. WE SUPPORT MOVING TO 33 PERCENT, MOVING PAST 33 PERCENT. FOR PURPOSES OF BIODIVERSITY CONSERVATION IT'S OBVIOUS WE NEED TO BE SHIFTING TO RENEWABLE ENERGY. THE HARD PART IS IN ACTUALLY DOING IT. WE CAN ALL TALK ABOUT POLICY GOALS, BUT THE ISSUE IS HOW DO YOU ACTUALLY DO IT? HOW DO YOU DO IT IN SUCH A WAY THAT YOU ARE NOT TEARING THE VERY SAFETY NETS OF BIODIVERSITY THAT WE'RE ALL HERE TRYING TO PROTECT? HOW DO YOU ALSO PROTECT CULTURAL RESOURCES AND ALL THE OTHER PUBLIC VALUES THAT ARE OUT THERE? 2009-2010 WAS AN EXPERIENCE IN HOW TO DO THAT. WHEN WE STARTED IN EARLY 2009, WE HAD HUNDREDS OF PROJECTS, APPLICATIONS ON FILE WITH THE BLM, AND THAT WAS A WAKE-UP CALL TO THE ENVIRONMENTALLY COMMUNITY, BECAUSE FOR A VERY LONG TIME THE LAND CONSERVATION COMMUNITY HAD BEEN FOCUSING ON PROTECTING THE LAND AND SUDDENLY WE ARE NOW TRYING TO FIGURE OUT HOW DO WE DO THAT AND IMPLEMENT RENEWABLE ENERGY ON A LARGE SCALE? THAT REALLY CREATED A SHIFT IN SORT OF HOW WE DO THINGS. WE STARTED TO LOOK, WE STARTED TO WORK CLOSELY WITH A LOT OF DIFFERENT ENVIRONMENTAL GROUPS, LOCAL AND NATIONAL, WE STARTED TRYING TO FIGURE OUT WHERE THE BEST PLACES ARE SO WE COULD DIRECT DEVELOPMENT TO AREAS THAT ARE OF LOW CONFLICT, SPEND A HUGE AMOUNT OF TIME MAPPING THESE AREAS, GOING AND TALKING TO THE STATE AND FEDERAL AGENCIES ABOUT PUTTING PROJECTS IN THOSE AREAS, AND TALKING WITH PROJECT DEVELOPERS ABOUT WHY WE THINK THEY NEED TO BE LOOKING AT THESE KINDS OF AREAS AND WHAT ARE THE VALUES THAT THEY NEED TO BE AWARE OF. I BELIVE 2009-2010 WAS A BIG LEARNING EXPERIENCE. IT WAS A LEARNING EXPERIENCE FOR THE DEVELOPMENT COMMUNITY AND FOR THE FEDERAL AND STATE AGENCIES. THE CALIFORNIA DESERT RENEWABLE ENERGY WORKING GROUP THAT CAME TOGETHER AND FORMULATED THESE GUIDELINES AND RECOMMENDATIONS THAT WERE DELIVERED AT THE END OF SEPTEMBER TO THE SECRETARY IS SORT OF A CULMINATION OF THAT DIALOGUE. IT'S A DIALOGUE I HOPE THAT CONTINUES AND ONE THAT WE CAN LEARN FROM. I THINK IT I WERE GOING TO BE IN MY LAST 25 SECONDS OF TIME, GIVE YOU THREE THINGS WE NEED TO BE FOCUSING ON, AND THEY'RE ONE THAT YOU'VE ALREADY BEEN HEARING ABOUT. WE NEED TO BE FOCUSING ON IIMPROVING OUR SITING PROJECTS, BOTH IN TERMS OF PLANNING AND IN TERMS OF HOW WE DEAL WITH THE BACKLOG OF PROJECTS THAT WERE THERE BEFORE WE GOT THESE PLANS ONLINE. THE DESERT RENEWABLE ENERGY CONSERVATION PLAN IS ABSOLUTELY ESSENTIAL FOR LONG TERM, THE SOLAR PEIS IS INCREDIBLY IMPORTANT. WE DO NEED TO BE FOCUSING ON ZONES; I THINK THAT'S ANOTHER PIECE OF DIALOG WE NEED TO HAVING WITH THE SOLAR INDUSTRY ABOUT THE UTILITY OF ZONES AND HOW TO GET MORE ZONES OUT THERE. WE NEED TO BE IMPROVING THE ANALYSIS. ONCE YOU SITE SOMETHING PROPERLY, YOU STILL NEED TO ANALYZE IT PROPERLY AND DO IT QUICKLY AND IN A COORDINATED WAY WITH ALL OF THE OTHER VARIOUS ENTITIES. YOU ALSO NEED TO BE THINKING ABOUT MITIGATION IN A DIFFERENT WAY AS WELL. WE NEED TO BE MOVING AWAY FROM PROJECT-BY-PROJECT MITIGATION AND WE NEED TO SCALE OUR MITIGATION ACCORDINGLY AND WE NEED TO LEVERAGE IT. THERE'S AN OPPORTUNITY HERE TO CREATE SOME BENEFIT ON THE GROUND, AND WE NEED TO BE LOOKING AT THE PUBLIC AND PRIVATE LANDS TOGETHER IN TERMS OF MITIGATION OPPORTUNITIES. SO THERE'S A LOT OF THINGS THAT WE CAN BE DOING DIFFERENTLY AND I HAVE A LOT OF HOPE THAT GIVE WHERE WE'VE BEEN WE WILL MOVE FORWARD QUICKLY AND WE WILL MEET OUR GOALS BOTH IN TERMS OF PROTECTING BIODIVERSITY AND BRINGING ON LARGE SCALE AND AGGRESSIVE RENEWABLE ENERGY TARGETS. THANK YOU.
SO, INDULGE ME AGAIN, HOW MANY FOLKS ARE HERE FROM THE CALIFORNIA DESERT SOLAR WORKING GROUP. COULD YOU JUST RAISE YOUR HANDS REAL QUICKLY? THIS IS A VERY IMPORTANT STAKEHOLDER GROUP THAT IS COMPOSED OF ADVOCATES FOR BOTH THE DEVELOPER INDUSTRY AND THE DEVELOPERS THEMSELVES AND FROM THE ENVIRONMENTAL AND OTHER COMMUNITY STAKEHOLDERS. THEY MEET ON A FAIRLY REGULAR BASIS. MIKE MANTELL AND BLAKE WHO ARE THE LEADERS, AT LEAST THE CORE STAFF OF THE DESERT SOLAR WORKING GROUP ARE HERE WITH US TODAY. IT'S IMPORTANT FOR PEOPLE TO HAVE FORUMS TO MEET AND TO TALK AND IT MAY OR MAY NOT HELP US WITH THE CHALLENGES THAT CARL SPOKE OF, BUT IT STILL HELPS TO CLARIFY THE ISSUES. SO, CHUCK GRAY FROM THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS IS NOT GOING TO SPEAK FOR THE UTILITIES, ALTHOUGH THAT WOULD BE A USEFUL ADDITION TO AN ALREADY OVERLONG PANEL, BUT HE'S GOING TO SPEAK FOR ANOTHER SOMEWHAT VOICELESS CONSTITUENCY IN A LOT OF OUR RULEMAKING. I THINK THAT ONE OF THE IMPORTANT FUNCTIONS OF THE UTILITY COMMISSIONERS IS TO SPEAK FOR RATE GRADERS WHO ULTIMATELY ARE THE ONES WHO PAY THE COST OF ALL THE MITIGATIONS, ALL THE TECHNOLOGY THAT WE'VE BEEN TALKING ABOUT. SO, CHUCK?
THANKS, I APPRECIATE THE LAST CAVEAT AND I WAS GOING TO MAKE IT ANYWAY. ON THE PROGRAM IT SAYS THAT I'M GOING TO GIVE YOU THE UTILITIES PERSPECTIVE. I'M NOT. I'M GOING TO GIVE YOU THE PERSPECTIVE OF THE PEOPLE THAT REGULATE THE UTILITIES WHICH ARE THE STATE AND PUBLIC UTILITY COMMISSIONS. MY SECOND CAVEAT IS THAT I HAD NOTHING TO DO WITH CALIFORNIA OVER THE LAST YEAR, TWO YEARS, OTHER THAN TO WORK FOR THE CALIFORNIA PUBLIC UTILITY COMMISSION HERE IN WASHINGTON, BECAUSE THAT'S WHAT NARUC DOES WE REPRESENT THE COMMISSIONS COLLECTIVELY HERE IN TOWN. ON THE QUESTION OF RENEWABLES, I THINK IT'S QUITE CLEAR THAT THERE'S SIGNIFICANT SUPPORT AMONG THE PUBLIC UTILITY COMMISSIONS FOR RENEWABLE ENERGY AND I THINK THAT'S, THE EVIDENCE FOR THAT IS THE FACT THAT 29 STATES OR MORE HAVE RENEWABLE PORTFOLIO STANDARDS THAT THE COMMISSIONS HAVE TO IMPLEMENT AND ARE COMMITTED TO MAKING SUCCESSFUL. SO THEIR PERSONAL VIEWS IN SOME CASES ASIDE, I THINK THERE'S CLEARLY AN INSTITUTIONAL IMPERATIVE THAT THEY INVEST TIME, ENERGY AND COMMITMENT INTO THOSE, AND INTO THOSE GOALS. THEY ALSO HAVE A SIGNIFICANT PIECE OF ALMOST EVERY ISSUE I'VE HEARD HERE, AND I'VE BEEN HERE ALL MORNING AS WELL AS THIS AFTERNOON. THE COMMISSIONS IN MOST STATES ALSO DETERMINE RESOURCE CHOICES OR REGULATE RESOURCE CHOICES BY THE PUBLIC UTILITIES AND THAT'S TRUE OF UTILITIES PRIMARILY. THEY DEAL WITH FACILITY SITING, BOTH FOR GENERATING FACILITIES AS WELL AS TRANSMISSION LINES AFTER WE'VE SEEN THE 2005 FEDERAL SITING LEGISLATION COLLAPSE AROUND US, IT'S REALLY THE STATE COMMISSIONS THAT ARE THE ONES THAT ARE GOING TO CONTINUE TO SITE TRANSMISSION LINES GOING FORWARD. THEY APPROVE THE INVESTMENT OF SHAREHOLDER DOLLARS. THEY IMPROVE THE INVESTMENT OF RATEPAYER DOLLARS FOR NEW TECHNOLOGIES. AND IMPORTANTLY, I THINK THE POINT YOU JUST MADE, IS THAT THEY REGULATE THE COST-RECOVERY OF UTILITY INVESTMENTS AND OTHER UTILITY EXPENSES. PARTLY THAT EXPLAINS WHY THE UTILITY INDUSTRY IS STILL OPERATING PLANTS THAT ARE THAT OLD AS WE JUST HEARD. I WILL TAKE, I WILL MAKE ONE QUIBBLE, I THINK THE WATER UTILITIES STILL HAVE PIPE IN THE GROUND THAT THEY USE THAT WAS PUT IN THE 19TH CENTURY IN SOME JURISDICTIONS, FAIR POINT AND THAT'S DEPRICIATED PRETTY MUCH TO ZERO, BUT IT'S STILL USEFUL. SO, THERE IS, I THINK OTHER, AND WHETHER THAT'S A GOOD EXAMPLE SINCE THOSE ARE REGULATED INDUSTRIES AS WELL I'M NOT SURE. THERE IS A LOT OF SUPPORT FOR THE COMMISSIONS. WE'RE SEEING, IN ADDITION TO RENEWABLE PORTFOLIO STANDARDS, FEED-IN TARIFFS ARE ON THE AGENDA DESPITE THE FACT THAT THERE ARE SIGNIFICANT LEGAL QUESTIONS BETWEEN THE STATE COMMISSIONS AND FERC AS TO HOW THOSE FEED-IN TARIFFS SHOULD BE IMPLEMENTED. I KNOW THE INDUSTRIES ARE VERY CONCERNED ABOUT THAT. ALSO I THINK, AND I'LL CLOSE WITH THIS, THE STATE AT LARGE I THINK TAKE A FAIR AMOUNT OF CRITICISM IN SOME RESPECTS, BUT IN OUR VIEW, AND I THINK THE EVIDENCE IS THERE, THAT WHATEVER PROGRESS THE COUNTRY'S MADE IN CLEAN ENERGY POLICY WE'VE SEEN OVER THE LAST 10 YEARS HAS OCCURRED PRIMARILY AT THE STATE LEVEL. I ENVISION THAT CONTINUING TO HAPPEN. IT SEEMS TO ME THAT THERE IS A LOT, A LOT OF BATTLES STILL TO BE FOUGHT HERE IN WASHINGTON TO ADVANCE THAT POLICIES WHILE AT THE SAME TIME THINGS LIKE REGI, OTHER POLICIES THAT THE STATES ARE IMPLEMENTING HAVE LED THE WAY. SO, AGAIN, THANK YOU FOR YOUR TIME.
LET ME JUST THANK THE PANEL. IT WAS A TOUGH CHALLENGE TO TRY TO SUMMARIZE A WHOLE YEAR OF EXPERIENCE, BOTH GLOBAL AND LOCAL, IN FIVE MINUTES, BUT WE WANT TO HAVE SOME TIME FOR YOUR QUESTIONS. THERE ARE TWO FOLKS IN THE BACK WITH MICROPHONES. THEY'RE HERE TOWARD THE FRONT. SO, JUST KIND OF WAVE YOUR HAND IN THE AIR AND WE'LL JUST SEE WHO WE CAN CONNECT YOU WITH A MICROPHONE. YOU CAN ASK QUESTIONS OF THE INDIVIDUAL PANELISTS OR THE GROUP. SO HOW ABOUT THE WOMAN BACK HERE. YOU, YES.
[INAUDIBLE] ENERGY PARTNERS. MICHAEL, YOU AT THE VERY BEGINNING HAD A SLIDE YOU WANTED TO SHOW BUT IT NEVER CAME UP. CAN YOU PUT THAT BACK UP, THE 22 PROJECTS AND THE 11 THAT YOU WERE TALKING ABOUT, IF THAT'S POSSIBLE?
WE MIGHT BE ABLE TO, ALTHOUGH I CAN'T. I MIGHT NEED MIKE'S HELP TO DO THAT. IT BASICALLY JUST NAMES THE 22 PROJECTS. IT IDENTIFIES THE 11 PROJECTS THAT HAVE SUCCESSFULLY BEEN TORTURED THROUGH OUR LAND USE AND PERMITTING PROCESSES AND THEN IDENTIFIES ANOTHER 11 PROJECTS. OUT OF THOSE OTHER 11 PROJECTS, WE, MINAL AND I, HANDICAPPED THEM BECAUSE WE'RE NOT DECISIONMAKERS. WE THINK THERE'S ANOTHER 2,500 MEGAWATTS AND THEN AS SHANNON MENTIONED, WE'VE GOT ANOTHER PIPELINE OF PROJECTS AND WE EXPECT ACTION ON THEIR PERMITS TO CONSTRUCT AND OPERATE THIS YEAR. MIKE, DID YOU DISAPPEAR? I'M AFRAID WE'RE NOT GOING TO SEE THE SLIDE UP. I'D BE HAPPY TO SHARE IT WITH YOU. COULD YOU GIVE ME YOUR CARD; I'LL EMAIL IT TO YOU?
THANK YOU. AS A TRANSMISSION DEVELOPER FOR RENEWABLE POWER FOR HIGH VOLTAGE DIRECT CURRENT TECHNOLOGIES, IT'S REALLY EXCITING TO HEAR EVERYONE UP THERE TALK ABOUT THE IMPORTANCE OF RENEWABLE ENERGY, PROMOTING THE CEILING THAT'S REALLY THE FLOOR OF 33 PERCENT; WE SHOULD BE AT 80 PERCENT. REALLY JUST KIND OF REMINDING THE GROUP THAT TRANSMISSION IS REALLY THE KEY TO CONNECTING ALL OF THESE RENEWABLES. SO THERE WERE SOME REALLY GOOD POINTS RAISED AND I LOOK FORWARD TO WORKING WITH ALL OF YOU.
IT IS VERY IMPORTANT. WE SAW THE CONSTRUCTION OF TWO NEW POWER LINES THAT ARE PRINCIPALLY DEVOTED TO MOVING RENEWABLE ENERGY FROM DISTANT RESOURCES TO URBAN DEMAND CENTERS. NINA MASCALOW FROM SOUTHER CALIFORNIA EDISON, DO YOU WANT TO JUST RAISE YOUR HAND? HERE'S ANOTHER RECIPIENT OF THAT TORTURE I MENTIONED. HE IS ACTUALLY ABOUT TO BREAK GROUND ON THE TIHATCHE RENEWABLE POWER TRANSMISSION LINE, WHICH WILL GO NORTH-SOUTH AND BRING RESOURCES FROM THE WIND AREA IN THE TIHATCHAPES AND SOLAR THAT'S NOW STARTING TO SPRING UP AROUND THOSE TRANSMISSION LINES TO CONSUMERS IN LOS ANGELES. THANKS. WAY IN THE BACK.
MY QUESTION IS FOR MR. GRAY. I WONDER ABOUT THE RENEWABLE PORTFOLIO STANDARDS. THERE WAS A LITTLE RUMOR THAT IT MIGHT BE POSSIBLE FOR CONGRESS TO PASS A LAW THAT RENEWABLE PORTFOLIO STANDARDS WOULD HAVE TO BE THE LAW OF THE LAND FOR ALL OF THE STATES. I HAPPEN TO LIVE IN AN AREA WHERE THE UTILITY COMPANIES HAVE PRETTY MUCH NOT ALLOWED THE STATES TO PASS ANY OF THE FIVE STANDARDS OF THE 2005 ACT AND I JUST WONDERED IF THERE WAS SOME WAY THAT THIS COULD EVER BECOME FEDERAL LAW.
IT'S COME CLOSE A COUPLE OF TIMES. I THINK THE RPS BILL PASSED THE SENATE ONE YEAR AND THE HOUSE ANOTHER, BUT NEVER AT THE SAME TIME. FROM WHAT I UNDERSTAND, CONGRESS IS GOING TO CONSIDER A CLEAN ENERGY STANDARD WHICH MAY HAVE ELEMENTS OF RENEWABLES IN IT, BUT IT, FROM WHAT I UNDERSTAND EVEN AS FAR AS THE ADMINISTRATION HAS ADVOCATED, WHEN WE HAVE A CLEAN ENERGY STANDARD, WHICH WOULD INCLUDE 50 PERCENT OF CREDIT FOR NATURAL GAS, FOR EXAMPLE, SO THERE'S A CHANCE I GUESS OF SEEEING SOME BIPARTISAN SUPPORT FOR SOME KIND OF A CLEAN ENERGY STANDARD, OR AT LEAST IT HASN'T BEEN SORT OF DEAD ON ARRIVAL. SO THAT MIGHT HAPPEN, BUT I DON'T THINK, AT LEAST FOR THE TIME BEING, YOU'RE GOING TO SEE A PURE RPS AT THE FEDERAL LEVEL THAT DOESN'T INCLUDE OTHER TECHNOLOGIES.
OTHER QUESTIONS? OVER HERE, THE WOMAN IN THE PURPLE SHIRT. THANKS.
[INAUDIBLE] FROM EPA, BUT I'M NOT ASKING THIS QUESTION AS A FEDERAL EMPLOYEE, I'M ASKING AS A CITIZEN. THE UNITED STATES USED TO BE SUCH A CAN DO PLACE AND PEOPLE USED TO BE INNOVATIVE AND PUT THEIR MINDS TO THINGS AND GET THEM DONE, AND THE THIRD PERSON IN FROM THE RIGHT I'M MAKING THE ASSUMPTION THAT WHAT YOU DESCRIBED TO US IS TRUE. WHAT ARE THE OBSTACLES THAT NEED TO BE REMOVED IN THE PRACTICAL WORLD TO MAKE SOME OF THESE THINGS OCCUR MORE SMOOTHLY IN A SHORTER PERIOD OF TIME AND TO GET A PROCESS IN PLACE SO IT DOESN'T COST AS MUCH, AT LEAST FROM THAT END OF THE SPECTRUM?
I THINK THAT WAS DIRECTED TO ME. COUPLE COMMENTS. ONE, WE STILL ARE IN MANY AREAS A VERY INNOVATIVE CAN DO SOCIETY. WE STILL DEVELOP, I BELIEVE, MORE PATENTS PER CAPITA THAN ANYBODY ELSE. A GREAT DEAL OF THE CLEAN ENERGY TECHNOLOGY THAT CHINA IS DEPLOYING WAS DEVELOPED IN THE UNITED STATES. IN THE ENERGY SECTOR, IN PARTICULAR, WE HAVE VERY, VERY POWERFUL INCUMBENT PLAYERS WHO HAVE BUILT BUSINESS MODELS ON A VERY STATIC ENERGY SECTOR. YOU CAN LOOK UP JEFFREY IMMELTS COMMENTS ON THIS, HE JUST TALKS ABOUT THE LACK OF INNOVATION IN ENERGY MARKETS IN GENERAL AND HE HAS A PRETTY BROAD PERSPECTIVE. I THINK THE MOST IMPORTANT THING TO DO IN FIXING THE PROBLEM IS TO NAME THE PROBLEM AND UNDERSTAND THE FACT THAT IT'S NOT ACCIDENTAL THAT WE'RE HAVING THESE PROBLEMS. THERE ARE POWERFUL INTERESTS THAT ARE HOLDING ON TO THE PAST. I'LL GIVE YOU A COUPLE OF VERY CONCRETE EXAMPLES. RENEWABLE ENERGY HAS VERY LOW OPERATING COSTS. ALL OF THE COST IS CAPITAL. IN MOST OF THE WORLD, COMPANIES THAT WANT TO BUILD RENEWABLE ENERGY PROJECTS HAVE PREDICTABLE LONG-TERM, LOW-COST FINANCIAL OPTIONS. IN THE UNITED STATES, WE HAVE A LOAN GUARANTEE PROGRAM AT DOE, BUT IT QUITE LITERALLY BY STATUTE IS NOT ALLOWED TO MANAGE THIS PROGRAM AS IF IT WAS A BANK. IT HAS BEEN DESIGNED TO FAIL. BECAUSE MEMBERS OF CONGRESS DON'T REALLY WANT THE GOVERNMENT TO BE OPERATING LIKE A BUSINESS. THE VERY MEMBERS OF CONGRESS WHO SAY GOVERNMENT CAN'T BE EFFICIENT ARE TERRIFIED THAT GOVERNMENT MIGHT BE EFFICIENT. THERE'S A SERIOUS OTHER SIDE TO THIS CONVERSATION. I DOUBT IT'S VERY WIDELY REPRESENTED IN THIS ROOM, AND WE HAVE TO UNDERSTAND THAT THIS IS A POLITICAL PROBLEM, BUT IT'S A PROBLEM THAT'S GOING TO REQUIRE FUNDAMENTAL CHANGE IN THE WAY WE DO THINGS. BUT I THINK WE CAN DO IT. I DON'T THINK IT HAS TO BE THIS WAY. AND FRANKLY IF WE DON'T DO IT, THE PRICE WILL BE MUCH LARGER THAN OUR CO2 FOOTPRINT. THE PRICE IS GOING TO BE ECONOMICALLY VERY, VERY LARGE AND I'VE SEEN A TREMENDOUS CONVERGENCE, I'D URGE ANYONE WHO IS CONCERNED ABOUT THIS, LOOK UP AN ARTICLE ONLINE BY THE FORMER HEAD OF INTEL CALLED ANDY GROVE, CALLED HOW TO MAKE AN AMERICAN JOB BEFORE IT'S TOO LATE, AND THEN COMPARE THAT WITH SOME OF THE COMMENTS THAT LEO GERRARD, THE PRESIDENT OF UNITED STEEL WORKERS HAS MADE ABOUT THE SAME TOPIC. AND WHEN ANDY GROVE, WHO FIVE YEARS AGO WAS A CONVENTIONAL DOWN THE ROAD FREE TRADER, AND DOESN'T HAVE ANY EXPERIENCE WITH LABOR UNIONS, AND LEO GERRARD ARE SAYING THE SAME THING, I THINK WE SEE A CONVERGENCE ON WHAT AMERICA NEEDS TO DO TO REBUILD ITSELF.
I HAVE A COMMENT AS WELL. IT'S NOT AS, IT'S A LITTLE MORE LOCALIZED, LET ME SAY IT THAT WAY. THE, I WOULD SUGGEST THAT THERE ARE THINGS WE CAN DO NOW WITHOUT A MAJOR CHANGE IN THE FABRIC OF OUR GOVERNMENT SYSTEM. I, YOU KNOW, THE, WHAT'S HAPPENED IN THE PAST YEAR AND A HALF, IT CAN BE ACCELERATED AND THERE ARE DECISIONS THAT EACH OF US MAKE EVERY DAY, PARTICULARLY THOSE IN GOVERNMENT, A LITTLE MORE FLEXIBILITY, IF RENEWABLE ENERGY IS A PUBLIC POLICY GOAL, KEEPING AN EYE ON THAT GOAL AND KEEPING AN EYE ON GETTING THESE PROJECTS IN THE GROUND, STEEL IN THE GROUND. THERE'S A LOT OF REPRESENTATIVES FROM FISH AND WILDLIFE HERE. I UNDERSTAND THAT YOU ARE REQUIRED BY STATUTE TO ADHERE TO CERTAIN OBLIGATIONS. THAT SAID, THERE IS [INAUDIBLE], THERE IS JUDGMENT CALLS, AND IF WE KEEP AN EYE ON THE BALL WITH OUR END GOAL OF GETTING PROJECTS IN THE GROUND, I'D LIKE TO SUGGEST THERE IS THINGS THAT WE CAN DO IMMEDIATELY. WHETHER IT SOLVES THE PROBLEM, I DON'T KNOW, BUT AT LEAST BETTER THAN NOTHING.
I JUST WANT TO MAKE A COMMENT. I THINK THAT, JUST TO PUT IT INTO PERSPECTIVE, IT'S TRUE THAT I MEAN, THERE ARE ENVIRONMENTAL LAWS THAT WE NEED TO COMPLY WITH. BUT I WOULD LIKE TO PUT INTO PERSPECTIVE THAT IN THE LAST 18 MONTHS IN CALIFORNIA ALONE, 11 SOLAR PROJECTS WERE PERMITTED, ENCOMPASING BASICALLY THE LAND BASE OF THE CITY OF SAN FRANCISCO. SO WE BASICALLY PERMITTED THROUGH OUR TORTUOUS LAWS PROJECTS THAT TOTALED UP THE LAND BASE OF THE CITY OF SAN FRANCISCO. I WOULD SUBMIT THAT PEOPLE MOVED HEAVEN AND EARTH TO GET TO THAT POINT, AND THAT WE CAN PERMIT THESE PROJECTS QUICKLY IF WE ARE EFFICIENT, AND COORDINATED, AND START TO THINK CREATIVELY ABOUT SOME OF THE PROBLEMS. WE CAN DO THEM QUICKLY WITHOUT CIRCUMVENTING THESE VERY LAWS.
I'M GOING TO JUMP IN HERE, TOO, BECAUSE I'VE SEEN A SYSTEM AND FORMULA THAT MAY BE HELPFUL TO POLICY DECISIONMAKERS IN OTHER STATE LEVELS, AND I DON'T THINK IT ADDRESSES THE LARGER QUESTION THAT CARL ADDRESSES, BUT IT'S A SIMPLE FORMULA FOR GOOD PUBLIC ADMINISTRATION IN THESE KINDS OF NEW AREAS. FIRST IS YOU NEED SOMEBODY WHO'S A CHAMPION WITH A BIG GOAL. WE'VE HAD TWO GOVERNORS IN A ROW WHO'VE ADVOCATED THE RAPID DEVELOPMENT OF A CLEAN ENERGY GRID. THEY HAVE TO BE LOUD, THEY HAVE TO BE CLEAR, THEY HAVE TO BE PERSISTENT. WE HAVE ENOUGH PROJECTS SEEKING PERMITS TO CONSTRUCT AND TO OPERATE IN CALIFORNIA THAT THEY WOULD OVERWHELM OUR GRID. THEY CAN PRODUCE MORE ELECTRICAL ENERGY IN PEAK THAN OUR GRID CAN CARRY. SO I THINK THAT THAT HAS STARTED A WHOLE SERIES OF ACTIONS IN MOTIONS, SEPARATE POLICIES THAT CREATED THAT. I THINK THAT OUT OF THAT WILL COME SOME OF THE FORCES THAT I THINK CARL WOULD LIKE TO SEE EVENTUALLY DEVELOP THEIR OWN VOICE AND GIVE EXPRESSION. THE SECOND IS AT THE STAFF LEVEL, AND I THINK THAT AS A PUBLIC ADMINISTRATOR, IT'S VERY IMPORTANT TO HAVE SOMEBODY AT A VERY HIGH LEVEL THAT CAN COORDINATE AND GET EVERYBODY TO THE TABLE. SO STEVE BLACK AND JANEA AND MYSELF AND MINAL AT THE STATE LEVEL, ALL THE DEPARTMENTAL MANAGERS AT THE CONSTITUENT AGENCIES AT THE REAT HAVE DONE THAT VERY EFFECTIVELY. THE REAT MEETS EVERY WEEK TO SHARE INFORMATION BETWEEN THE AGENCIES, EVERY TWO WEEKS TO DEAL WITH PROBLEMS ON PROJECTS. THE RENEWABLE ENERGY POLICY GROUP MEETS MONTHLY TO HELP MOVE BARRIERS OUT OF THE WAY. I THINK THAT THAT HIGH LEVEL OF COORDINATION AND ACCOUNTABILITY IS WHAT WE HAVE TO DEMAND OF OURSELVES AS PUBLIC SERVANTS AND I THINK THAT IS A SIMPLE FORMULA THAT OTHER PEOPLE CAN REPLICATE IN OTHER STATES, PROBABLY IN A DIFFERENT WAY THAN WE CAN. BUT I KNOW THAT STEVE AND JANEA ARE EAGER TO COME TO EACH OF YOUR STATES ON A MONTHLY BASIS TO HELP YOU DO THAT. SO, CARL. OVER HERE IN THE CENTER.
THANK YOU, MICHAEL, AND THANK YOU FOR THE WORK THAT YOU'VE BEEN DOING. I DON'T THINK THAT, AS YOU PROPERLY POINT OUT THAT WE NEED A DRIVER AT THE STATE LEVEL AND AT THE FEDERAL LEVEL TO GET THIS COORDINATION TO REALLY WORK. I THINK WE'VE SEEN SCORES OF MOU'S OVER THE YEARS THAT HAVEN'T REALLY DELIVERED WHAT WE HAD HOPED, INCLUDING ONE ON TRANSMISSION THAT WE SAW IN 2005 I BELIEVE IT WAS, BY ALL OF THE AGENCY HEADS AND NOTHING CAME OF IT. SO, IT DOES TAKE A DRIVER. NOW I WANTED TO JUST REMARK ON SOMETHING SHANNON SAID, THAT WE'RE DOING SOMETHING THAT WE REALLY HAVEN'T DONE BEFORE, AND THAT'S REALLY TRUE. A LOT OF THE INSTRUMENTS THAT WE HAVE TO PROTECT THE ENVIRONMENT, TO PROMOTE NEW ENERGY SOURCES, THEY WEREN'T DESIGNED FOR WHAT WE'RE TRYING TO DO. WE ARE STEPPING OUTSIDE OF OUR BOXES, AND I JUST WANTED TO TAKE A SECOND AND SAY I THINK A LOT OF THE THINGS THAT WE LEARNED AND TALKED ABOUT TODAY BEGUN TO PUT INTO PRACTICE. CERTAINLY THINGS THAT WE WERE RECOMMENDING THREE YEARS AGO ARE COMMONLY BEING DONE RIGHT NOW. WE'RE SEEING MOVEMENT AT THE FEDERAL ENERGY REGULATORY COMMISSION, UNPRECEDENTED CHANGES IN THE WAY THAT TRANSMISSION IS PLANNED AND GENERATION IS LOOKED AT AND INTEGRATION OF THESE RESOURCES ARE BEING DONE. IT'S GOING TO TAKE COOPERATION WITH THE STATES, BECAUSE I DO THINK THAT IT WAS RIGHT, THAT OUR PROGRESS IS GOING TO BE AT THE STATE LEVEL FOR THE NEXT COUPLE OF YEARS. WE CAN'T, AND I THINK AS SENATOR BINGAMAN LEARNED FROM HIS SENATE ENERGY BILL IN THE LAST CONGRESS, YOU CAN'T ROLL THE STATES, SO BEING ABLE TO WORK WITH THEM AND HAVE THEM COLLABORATE TOGETHER TO FIND SOLUTIONS THAT HAVE BROADER RAMMIFICATIONS TO HOW WE MIGHT DO THINGS ELSEWHERE, THIS IS REALLY, REALLY IMPORTANT RIGHT NOW. DEPARTMENT OF ENERGY HAS INSTITUTED PLANNING THAT INVOLVES STAKEHOLDERS FROM ALL DIFFERENT WALKS OF THE ENERGY LIFE, IF YOU WILL, FROM ENVIRONMENTALISTS, TRANSMISSIONLINE SPONSORS LIKE JULIA WHO SPOKE EARLIER, PUBLIC OFFICIALS, LAND MANAGEMENT AGENCIES. I THINK SOME OF THE THINGS WE'VE BEEN TALKING ABOUT ARE BEGINNINGTO COME TO PASS. WE HAVE TO KEEP PUSHING, WE HAVE TO DO THEM WITH THE SAME ENERGY THAT WE BROUGHT IN CALIFORNIA FOR THE LAST YEAR, AND I DO THINK THAT WE HAVE TO HAVE A BETTER PROCESS GOING FORWARD. LET'S LEARN FROM WHAT WE'RE DOING. WE CAN'T ALWAYS BEEN IN CRISIS MODE AS WE TRY TO DO THIS. WE NEED TO FIND THE RIGHT PLACES TO GUIDE PEOPLE TO PUT THE TRANSMISSION IN THE RIGHT PLACES, THIS GETS A LOT EASIER. WE DON'T HAVE TO CONTINUALLY RUN INTO OURSELVES. LET'S LEARN FROM WHAT WE'VE DONE, LET'S GET THE RIGHT SITING TO HAPPEN, BECAUSE THAT'S 90 PERCENT OF THE GAME. WE HEARD THAT THIS MORNING, WE HEARD THAT AT LUNCH. IF WE GET THE PROJECTS IN THE RIGHT PLACES, IF WE GET THE TRANSMISSION IN THE RIGHT PLACES, WE DO THAT EFFICIENTLY, WE SAVE RATE PAYERS HUNDREDS OF MILLIONS OF DOLLARS. WE SAVE OUR ECONOMY HUNDREDS OF MILLIONS OF DOLLARS, AND WE GET THE CARBON OUT OF THE SYSTEM FASTER. I THINK WE EVENTUALLY GET BACK TO DOING MORE SWEEPING CHANGES AND GET SORT OF THE AUTHORITY FOR THINGS LIKE FEED-IN TARIFFS CLARIFIED AT THE NATIONAL LEVEL. WE COULD DO EVEN BETTER WITH DISTRIBUTED GENERATION AND I THINK WE WILL. BUT FOR THE TIME BEING, I THINK THE THINGS THAT WE ARE DOING ARE WORKING. WE NEED TO CONTINUE TO DO THEM, WE NEED TO KEEP THIS COORDINATION HAPPENING. IT'S NOT JUST COORDINATION BETWEEN FEDERAL AND STATE AGENCIES, BUT WITH OTHER STAKEHOLDERS TOO, AND I WOULD ARGUE AS AN ENVIRONMENTAL STAKEHOLDER IN SOME OF THESE PROCESSES THAT CONTRIBUTIONS THAT WE'VE MADE, ESPECIALLY THE COLLEAGUES ON THE PANEL THAT HAVE HELPED TO FIND SOLUTIONS TO THESE PROJECTS, HAVE BEEN EQUALLY IMPORTANT AS JUST ABOUT ANY OTHER. SO I'M ACTUALLY QUITE HAPPY ABOUT THE DIRECTION WE'RE HEADING IN, I'M IMPATIENT AS HELL, SO IT'S NOT GOING FAST ENOUGH FOR ME, BUT I'M PLEASED AND I'M GRATEFUL TO BLM FOR TAKING MANY OF THESE STEPS. AND WE MAY QUIBBLE ABOUT SOME OF THE DETAILS, BUT THEY ARE IMPORTANT STEPS.
ANY OTHER QUESTIONS OR OBSERVATIONS? OVER HERE, AND THEN WOMAN IN THE WHITE JACKET. HI, JIM.
GREAT, THANK YOU. I'M JIM LYONS WITH DEFENDERS OF WILDLIFE. FIRST OF ALL, I WANT TO THANK ALL OF YOU FOR THE WORK YOU'VE DONE, THAT REPRESENTS, AS SHANNON SAID AND CARL EMPHASIZED, REALLY AN EXPERIMENT IN DOING SOMETHING NEW, AS THE PRESIDENT SAID IN THE STATE OF THE UNION, SOMETHING BIG. THAT'S CLEARLY AN IMPORTANT PART OF WHERE WE'RE HEADED. AND I WANT TO THANK STEVE AND THE DEPARTMENT FOR DEMONSTRATING ITS ABILITY TO LISTEN, WHICH INSTITUTIONS SOMETIMES HAVE A HARD TIME DOING. THIS WORKSHOP, THIS DIALOGUE, I THINK REFLECTS A LOT OF THE CONVERSATIONS THAT WE'VE HAD WITH STEVE AND WITH MANY OF YOU OVER THE PAST MONTHS ABOUT THE NEED TO BRING PEOPLE TOGETHER AND HAVE A DISCUSSION ABOUT LESSONS LEARNED. I THINK THE INTERIM GUIDANCE THAT WAS ISSUED YESTERDAY IS A REFLECTION OF MESSAGES SENT AND RECEIVED. NOT EVERYONE'S HAPPY WITH WHAT'S BEEN GENERATED, BUT I THINK IT REPRESENTS AN IMPORTANT STEP FORWARD. I WANTED TO OFFER A SUGGESTION THAT MAY HAVE UTILITY, AND THAT IS PART OF WHAT THE PRESIDENT SAID IN THE STATE OF THE UNION WAS THAT HE WANTED US TO IN ESSENCE LOOK AT HOW WE RESTRUCTURE GOVERNMENT, TO MAKE IT WORK BETTER. I HAPPENED TO BE IN THE CLINTON ADMINISTRATION, WE TALKED ABOUT REINVENTING GOVERNMENT, AND WE MADE SOME STEPS, THINGS MOVED ON. BUT WHAT WE'RE DOING HERE WITH REGARD TO CLEAN ENERGY, TIED TO WHAT IS CLEARLY A HIGH PRIORITY FOR THE PRESIDENT, LINKS TO THE NEED TO IMPROVE THE WAY GOVERNMENT FUNCTIONS IN A BUSINESS-LIKE MANNER MIGHT BE APERFECT MODEL OPPORTUNITY TO PRESENT TO OMB, WHO'S IN THE PROCESS OF FIGURING OUT HOW TO RESTRUCTURE GOVERNMENT, SUGGESTS A DIFFERENT WAY FORWARD, A DIFFERENT PATH AS CARL SUGGESTS, BECAUSE I THINK WE ARE LEARNING NEW THINGS HERE. WE'RE LEARNING TO INNOVATE, AND I THINK THE LESSONS LEARNED SHOULD NOT HAVE TO BE REPEATED IN EVERY STATE THAT WANTS TO GO THROUGH THIS PROCESS. THIS OUGHT TO PROVIDE A MEANS TO DETERMINE HOW BETTER TO USE THE RESOURCES OF GOVERNMENT, TO FOSTER COLLABORATION, TO IMPROVE THAT PRIVATE-PUBLIC PARTNERSHIP THAT THE PRESIDENT TALKED SO ELOQUENTLY ABOUT JUST UP THE STREET AT THE CHAMBER OF COMMERCE THE OTHER DAY. SO I THINK THERE'S AN OPPORTUNITY HERE TO TAKE THIS MODEL AND PERHAPS INFUSE SOME ADDITIONAL ENERGY AND SOME ADDITIONAL EXCITEMENT AT THE WHITE HOUSE AND OMB TO SEE IF THE LESSONS LEARNED HERE CAN'T HELP FRAME A DIFFERENT PATH FORWARD THAT FOSTERS INNOVATION AND CREATIVITY, THAT HAS US THINKING OUTSIDE OF THE NORMS IN WHICH WE THINK, OUTSIDE OF THE JURISDICTIONS AND THE BOXES IN WHICH WE OPERATE, TO TRY AND FIND A NEW WAY FOR A LINK TO THE BIG IDEA THAT YOU'RE ALL HELPING PROVE CAN BE POSSIBLE.
KIM, THE WOMAN OVER HERE IN THE WHITE DRESS. THANKS.
THANK YOU. MICHELLE Siekerka IN THE NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION. NEW JERSEY IS THE SECOND HIGHEST INSTALLED STATE FOR SOLAR IN THE COUNTRY, WE'RE VERY PROUD OF THAT. MY QUESTION GOES TO THE POLICY OF BUILDING IN THE INDUSTRY. WE'RE WORKING ON A WHITE PAPER RIGHT NOW IN NEW JERSY ON THE STATE OF SOLAR IN OUR STATE AND WHAT ARE SOME OF THE CHALLENGES BECAUSE OF THE SUCCESS THAT WE'RE HAVING IN MOVING THE INDUSTRY, AND I HEAR ON THE SAME DAY, I HEAR FROM LARGE COMPANIES HOW, YOU KNOW, THE BIG PROJECTS ARE WHAT'S GOING TO PROVIDE THE OPPORTUNITY FOR MANUFACTURING, BUT I HAVE THE SMALL SOLAR INSTALLERS COMING TO ME SAYING THE BOTTOM'S GONNA DROP OUT ON OUR S-REC, WHICH IS WHAT CREATES THE SUCCESS FOR A PRODUCT. SO, I JUST WONDER, THOSE OF YOU WHO ARE ON THE POLICY SIDE OF SOLAR IN TERMS OF BUILDING THE INDUSTRY FROM A JOBS PERSPECTIVE, THAT SMALL COMPANY INSTALLER VERSUS THE LARGE, I SEE SOME HEADS SHAKING, SO MAYBE SOME OTHER FOLKS ARE HEARING SOMETHING AROUND THAT AS WELL. ANY THOUGHTS?
MOVE TO CALIFORNIA. [LAUGHTER]
WE'RE FAMILIAR WITH NEW JERSEY'S SUCCESS. I THINK THAT YOU HAVE TO TAKE WHAT WE'RE BUILDING IS AN ORCHESTRA WITH DIFFERENT INSTRUMENTS THAT NEED DIFFERENT SONGS OR DIFFERENT INCENTIVES. I THINK IN THE CASE OF DISTRIBUTED RESOURCES THERE'S AN EXCELLENT OPPORTUNITY FOR BOTH PV AND FUEL CELLS THROUGH SOME KIND OF A VALUE-BASED FEED-IN TARIFF MECHANISM. I THINK THAT THE LARGE-SCALE SOLAR TECHNOLOGIES SEEM TO NEED AS MUCH STABILITY AND FINANCING AND LONG LEAD TIMES AS POSSIBLE GIVEN THE TIME THAT THEY TAKE. I THINK THAT PORTFOLIO STANDARDS CAN ALSO BE A UNIFYING THEME FOR BOTH, BUT I THINK YOU HAVE TO LOOK AT YOUR RESOURCES, AND LOOK AT
YOUR DEPLOYMENT OPPORTUNITIES AND MATCH THE POLICIES TO THOSE AND THEN INNOVATE AND ADJUST AS YOU LEARN FROM THE EXPERIENCE AND OF THE PRICE. IF YOU GET TOO MANY APPLICANTS, THEN THAT MEANS THAT YOUR INCENTIVES ARE TOO HIGH AND YOU HAVE GOT TO ADJUST THEM DOWNWARD, SO I THINK THE KEY IS TO HAVE A MIX OF POLICIES THAT RECOGNIZE THAT DIFFERENT COMPANIES WITH DIFFERENT SKILLS HAVE DIFFERENT STIMULUS, OR DIFFERENT INCENTIVE STRUCTURES THAT WORK. BUT CLEARLYINTERCONNECTION OF TRANSMISSION, BOTH FOR LARGE AND SMALL, IS GOING TO BE VERY IMPORANT, AND THIS IS AN AREA, WE'VE ACTUALLY HAD SOME VERY IMPORTANT SUCCESS IN GETTING FERC TO THINK IN TERMS OF A WATCH INSTEAD OF A CALENDAR.
AND JUST ANOTHER NOTE, WE NEED ALL OF IT. IT'S NOT AS IF WE CAN DO ONLY ROOFTOP OR ONLY UTILITY-SCALE. I WOULD POINT TO KEVIN SWEENY, WHO HAS BEEN COMMISSIONED BY A GROUP FOUNDATIONS TO REALLY PROJECT OUT WHAT IT'S GOING TO TAKE FOR THE UNITED STATES TO MEET ITS CLIMATE GOALS. HE DOES A VERY GOOD JOB OF BREAKING OUT EXACTLY HOW MUCH WE NEED, AND HE SHOWS ABSOLUTELY WE NEED EVERYTHING THAT WE CAN POSSIBLY GET. HE'S SITTING OVER THERE IN THE BACK.
I JUST WANT TO FOCUS ON ONE THING THAT MAY BE USEFUL TO YOU, IT GOES BACK TO SOMETHING THAT MARK THOLKE DISCUSSED, WHICH IS THE CHALLENGE OF CERTAINTY. SO I THINK THAT THAT COMES ON A VARIETY OF LEVELS. I THINK THAT FOLKS NEED TO KNOW THAT THERE'S GOING TO BE CONSISTENT SOURCES OF FINANCING. THERE'S GOING TO BE CONSISTENT SOURCES OF DEMAND. I THINK THAT WE'RE ALREADY STARTING TO SEE SOME OF THE UTILITY PROCUREMENT PEOPLE START TO BACK OFF ON NEW CONTRACTS FOR RENEWABLE POWER SIMPLY BECAUSE THEY CAN SEE THAT 33 PERCENT IS WITHIN REACH AND THAT THERE, THEY DON'TWANT TO GO TOO FAR BEYOND IT. AND SO, AS WE START TO REACH GRID PARITY FOR SOME OF THESE TECHNOLOGIES AT, AS SPECIFIC SCALES, THEY MAY CONTINUE ON, BUT I THINK THAT WE NEED TO HAVE A REALLY SOBER LOOK AT WHAT OUR DEVELOPMENT GOALS AND WHETHER THEY'RE CONSISTENT. I THINK THAT WE NEED TO THINK ABOUT THE FINANCING MECHANISM. IS IT CLEAR THAT THE, THAT PEOPLE ARE READY TO RETURN THE PRODUCTION TAX CREDIT AT THE FEDERAL LEVEL OR DO WE NEEDTO CONSIDER OTHER TOOLS TO REPLACE THE BANKING SYSTEM THAT'S STILL MISSING. I THINK THAT WE NEED TO ADD CERTAINTY TO OUR REGULATORY PROCEDURES. AND I DON'T THINK THAT CERTAINTY MEANS THAT YOU'RE GUARANTEED A PERMIT. I THINK THAT THAT
PROJECTS WILL FAIL BECAUSE THEY'RE BAD PROJECTS. BUT I THINK THAT WE NEED TO GIVE THEM A CLEAR SENSE OF WHEN THEY KNOW THAT THEY'RE GONNA BE DEEMED FIT TO PERMIT AND OPERATE IN OUR STATES AND IN OUR COMMUNITIES. I THINK THIS IS TRUE NOT JUST AT LARGE-SCALE, BUT IT'S ALSO IMPORTANT AT THE ROOFTOP SCALE. THE SIERRA CLUB DID A STUDY OF LOCAL PERMITTING FOR ROOFTOP AND SMALL SCALE SOLAR THAT IDENTIFIED A RANGE OF DIFFERENT CONFLICTING LOCAL ORDINANCES THAT ANOTHER STUDY REVEALS AS MUCH AS $2,600 PER CONNECTION FOR A ROOFTOP AND UNTIL WE DEAL WITH THAT, WE'RE NOT LIKELY TO SEE PEOPLE EFFECTIVELY DOING THE LOCAL DISTRIBUTED POWER . THERE ARE OTHER CHALLENGES, BUT I THINK THAT AS REGULATORS, THERE'S LOW-HANGING FRUIT THAT WE HAVE TO PLUCK IN TERMS OF DETERMINING HOW TO DEVELOP CERTAINTY AT THAT LEVEL. IT WON'T SOLVE ALL THE PROBLEMS, BUT ITHINK THAT IT SENDS A SIGNAL THAT WE'RE WILLING TO TACKLE THE OTHERS.
MICHAEL, COULD I JUMP IN WITH ONE OTHER COMMENT. IF THERE ARE QUESTIONS—THIS IS A CHALLENGE I THINK FOR ALL OF US, AND I WILL PUT THE CHALLENGE TO YOU. WE NEED TO THINK ABOUT HOW TO TALK ABOUT RENEWABLES IN TERMS OF COST. WHAT WE'RE CERTAINLY HEARING IN CALIFORNIA IS CAN WE AFFORD TO DO THIS, AND I THINK THE QUESTION WE NEED TO BE ASKING OURSELVES IS CAN WE AFFORD NOT TO? AS JULIA POINTED OUT, A LOT OF THE COSTS ARE HAPPENING UP FRONT, AND IT MAKES THE PROGRAM LOOK ARTIFICIALLY INFLATED IN TERMS OF COSTS, AND ALL OF US NEED TO BE DOING A BETTER JOB OF TALKING ABOUT THIS WITH OUR REGULATORS SO THE FIRST QUESTIONS THAT COMES TO THEIR MIND ISN'T OH MY GOD WE CAN'T DO THIS BECAUSE IT'S TOO EXPENSIVE, BUT RATHER YES THIS IS A GOOD LONG-TERM INVESTMENT IN OUR FUTURE. AND GOING BACK TO WHAT WE HEARD THE PANEL SAYING EARLIER TODAY, YOU KNOW, CAN WE WIN THE FUTURE? WE CAN, BUT WE ALL NEED TO THINK ABOUT AND FIGURE OUT HOW TO TALK ABOUT IT IN A WAY THAT'S COMPELLING AND THAT FOLKS REALLY UNDERSTAND IT, ESPECIALLY AT THE REGULATORY LEVEL.
ONE LAST QUESTION, WE LOST OUR MICROPHONE, BUT THE LADY.
I JUST WANTED TO THANK YOU, I JUST WANT TO THANK JIM. MR ABBOTT AND WANT TO KNOW WHEN YOU WANT TO MEET WHEN WE GET BACK TO CALIFORNIA SO WE CAN START WORKING MOVING FORWARD ON OUR GEOTHERMAL PROJECT, AND GETTING THAT BLM LAND. [LAUGHTER AND CLAPPING] I KNOW YOU'RE ALL MOTIVATED, SO LET'S MOVE!
AT THIS TEMPERATURE WE'LL BOTH BE HURRING.
THAT'S A VERY GOOD GEOTHERMAL RESOURCE UP THERE, SO GOOD LUCK TO YOU.
I THINK WE'VE OVERSTAYED OUR WELCOME. I THINK YOU'RE ALL GETTING TIRED. I KNOW WE ARE. SO THANK YOU ALL VERY MUCH FOR YOUR ATTENTION AND YOUR QUESTIONS. [CLAPPING]
STAY THERE, FOLKS, JUST A SEC. I WANT THE PANEL, PLEASE JOIN ME, GIVE THIS PANEL ONE MORE ROUND OF APPLAUSE, THANK YOU ALL. [CLAPPING] BEFORE YOU LEAVE, HANG ON, BEFORE YOU RUN TO THE DOORS, JUST A COUPLE OF BRIEF ANNOUNCEMENTS. THANK YOU, MICHAEL. I THINK IT'S EVIDENT, BUT I'M GOING TO STATE THEOBVIOUS. WE ARE REALLY FORTUNATE TODAY TO HAVE THE BRAIN TRUST REPRESENTED BY THIS PANEL. EVERY ONE OF YOU HAS WORKED VERY HARD TO GET US WHERE WE ARE TODAY. BUT WE'RE NOT DONE AND WE HAVE A LOT OF WORK, AS YOU'VE HEARD, TO DO IN 2011 AND BEYOND. TOMORROW, YOU KNOW, WE DIDN'T HAVE TIME TO HAVE BREAKOUT MEETINGS LIKE WE DID OVER THE LUNCH HOUR TO EXPLORE THESE TOPICS IN MORE DETAIL, BUT AS I SAID THIS MORNING, THE PURPOSE OF THIS CONFERENCE IS TO HEAR FROM YOU. I KNOW YOUR TIME IS VALUABLE, BUT WE NEED YOU TO ENGAGE EVERYONE HERE ON THIS PANEL TODAY AND MANY OF THE PEOPLE IDENTIFIED IN THE AUDIENCE WILL BE HERE TOMORROW MORNING TO LEAD SPECIFIC POLICY-RELATED DISCUSSIONS ON EACH OF THE TOPICS THAT WE'VE TEED-UP FOR YOU TODAY. IN ADDITION, JOHN PODESTA, WHO MANY OF YOU KNOW, WILL GIVE A KEYNOTE IN THE MORNING AND SO I ENCOURAGEYOU TO COME BACK. PLEASE BRING YOUR NAMETAGS WITH YOU SO YOU CAN GET BACK IN THE DOOR WITHOUT ANY DIFFICULTY. THANK YOU AGAIN FOR PARTICIPATING TODAY. WE REALLY APPRECIATE THE EFFORT YOU'VE ALL MADE TO TRAVEL HERE TO DC TO JOIN US. WE'LL LOOK FORWARD TO SEEING YOU IN THE MORNING. THANK YOU ALL. [CLAPPING]