WASHINGTON, D.C.— Karen Harbert, president and CEO of the Institute for 21st Century Energy at the U.S. Chamber of Commerce, today told lawmakers that while there are concrete actions government can take to foster the growth of clean energy technologies, their focus should be on developing a comprehensive energy policy that includes all of America’s resources.
At a Senate Finance subcommittee hearing on the role of tax incentives on clean energy technology manufacturing, Harbert said that rising national deficits—projected to be $20.3 trillion by the end of 2020 if the Administration’s FY2011 budget proposal is implemented—should lead policymakers to seek solutions that do not increase the burden on taxpayers.
“We must pursue a smooth and realistic transition to a lower carbon future that includes a diverse portfolio of energy sources and accelerated development and deployment of the necessary technologies,” Harbert said. “But the greatest challenge we now face as a nation is reviving our economy, restoring the 8.2 million jobs lost to the current recession, and creating the 11.8 million new jobs our growing nation will need over the next decade. Only a vibrant American free enterprise system can accomplish this goal.”
Among the tools that Harbert said would improve energy policy without increasing the national deficit are regulatory streamlining to overcome siting burdens, concessionary financing through institutions like the proposed Clean Energy Development Administration, and greater energy efficiency gains. “Investing in research, development, and especially deployment of new technologies will ultimately pay major dividends,” Harbert said. “However, government should not be in the business of picking technology winners and losers, and we have to recognize that research and development—while critically important—takes time. The role of the private sector in our future energy security is paramount, and we should not seek to crowd out its participation, capital, innovations, or expertise.”
Harbert warned that America runs the risk of becoming over-reliant on intermittent subsidies to expand renewable energy, which could ultimately hurt their long term viability. In the U.S., when subsidies across the electricity sector are compared, renewable sources have received the largest percentage of federal dollars and are the most expensive generating sources receiving subsidies except refined coal. Energy-specific subsidies have more than doubled since 1999. At the same time, she cited the Chamber’s longstanding support for renewable energy tax credits for eight years, followed by a scaled phase out over four years. Such an approach would be far more effective than the current “boom-bust” intervals that inhibit private capital from being invested.
Harbert noted that other energy sources should not be ignored, including coal, nuclear, oil and natural gas. She called for an expansion of nuclear power and clean coal technology including carbon capture and sequestration, as well as more access to offshore oil and natural gas resources as ways to boost jobs and increase America’s energy security. She said that while we must get to the root cause of the Gulf oil spill, federal leaders should not make snap decisions like banning the production of up to 90 billion barrels of recoverable oil in the United States, because it will jeopardize our long-term economic recovery, American jobs, and our competiveness.
Harbert’s full testimony is available here. The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.