Latest Update on House Alternative Energy Committee
From GCP’s Gary Smith”
The most recent hearing of the House Alternative Energy Committee heard very compelling educational testimony from Case Western Reserve University professors Iwan Alexander, Director of National Center for Space Exploration and Research and Dr. George Harker, Assistant Vice-President for Tech Transfer and of the Wright Fuel Cell Center. The committee also heard testimony from Dr. Martin Kushler, Director of the Utilities Program for the American Council for an Energy Efficient Economy.
Professor Alexander led off the day’s testimony by introducing the committee to the newly created Great Lakes Institute for Energy Innovation housed at CWRU. According to Dr. Alexander, the vision of the institute is encompassed in its purpose and mission statements:
Purpose: Implement short-term solutions today to build and sustain tomorrow’s industries an, through development of innovative energy technology platforms with farsighted energy research and energy-use strategies, provide low cost, reliable and sustainable energy resources for all.
Mission: To enable the transition to advanced sustainable energy generation, storage, distribution and utilization, through coordinated research, development, and education.
Dr. Alexander believes that the “existence of such an organization will enable the State of Ohio to develop and implement a far-reaching energy strategy that supports the economic development of Ohio and the Great Lakes region, building the commercial and industrial infrastructure to bring these new, often disruptive technologies to market.”
With world energy demand expected to double by 2050 (Dept. of Energy study) and triple by the end of the century, global funding for the development of clean energy technologies is expected to grow, according to Dr. Alexander, by more than 14% in 2007 (exceeding $55 billion worldwide). Understanding this fact and capitalizing on the benefits of research that creates new technologies could make Ohio a national and international focal point for energy innovation—creating much-needed jobs and wealth in the process.
The newly-created Great Lakes Institute for Energy and Innovation will have major functions which include research, economic development and education. With respect to R&D, the institute seeks to conduct multidisciplinary research and development aimed at practical, industry-driven outcomes. The economic development aspect seeks to structure long-term outcomes to drive sustainable industrial and economic development. Third, the education angle will strive to create education and training programs which will raise awareness and strengthen Ohio’s workforce.
The strategic plan that CWRU has created for the institute has it focusing on efficiency in energy generation, transportation, utilization and storage. Look for more on the Institute from CWRU.
Following the impressive presentation by Dr. Alexander was a newcomer to Ohio via Georgia Tech, Dr. George Harker. Dr. Harker has the dual title of Executive Director of the Wright Fuel Cell Group and Associate Vice-President for Technology Transfer. The excitement with which Dr. Harker delivered his testimony is a testament to his dedication—a dedication which is beginning to create excitement and a louder buzz in the ears of our legislative leaders.
Dr. Harker, after expressing his excitement about Ohio having the potential of becoming a global leader in alternative energy technology, focused his testimony on the work of the Wright Fuel Cell Group (WFCG) and their collaboration with Ken Alfred’s team at the Ohio Fuel Cell Coalition. According to Dr. Harker, the $20 million that has been invested in the WFCG has leveraged over $42 million through funding/investments by partners. Harker referenced, as evidence of the WFCG’s success, economic successes such as GrafTech and HydroGen—both have moved their corporate headquarters to Ohio. Dr. Harker’s conclusion is one worthy of quote here: “In coming to Ohio to be a part of this, I have essentially committed a part of my life to work hard to make Ohio a leading energy technology and manufacturing state. I do not expect to be disappointed; I do not expect you to be disappointed.” I believe him. For more information CWRU’s practices in tech transfer, read this PD article from May 13, 2007—very interesting. Vanic wrote a more lengthy, more detailed version of the tech transfer program on the same day—contact him, maybe he will send you a copy!
Final testimony of the day came from Dr. Martin Kushler. Kushler is the Director of the Utilities Program for the American Council for an Energy-Efficient Economy. The main them of Dr. Kushler’s presentation: Ohio is in an energy crisis. Why you ask? Ohio has a serious energy cost problem because we are highly dependant on imported fuels—more so than other states, evidently. Ohio uses a lot of energy according to Dr. Kushler (over $29 billion per year in 2000—Kushler estimates it was around $40 billion in 2006).
Ohio imports 88% of the natural gas we use in the state and 97% of oil and petroleum. We also import two thirds of the coal we use. Consequently, energy costs are a huge economic drain on our state. So what’s the answer to this perplexing question? The cure to what ails us? According to Dr. Kushler, states like Ohio should be doing everything possible to make them more energy efficient.
Key elements of an energy efficient program are public information, education and persuasion; incentives to “trade allies” like retailers and contractors; economic incentives for customers (in the form of rebates); and quality control, monitoring and evaluation. Dr. Kushler estimates that 30 states now have “significant” utility sector energy efficiency programs. These publications have more information on Efficient Reliability and the benefits of Efficiency Policies.
Bottom line from Dr. Kushler, Ohio is facing a serious energy cost crisis and all indicators suggest these high prices are here to stay. And, since energy efficiency is a well-proven strategy, Ohio should step into the fold to potentially realize any significant economic benefits. Consequently, Ohio needs a new top priority policy approach to energy and the funding of energy efficiency. How do you do that? Well, since states are all facing budget crunches, and are dealing with other priorities such as Higher Ed funding, the utilities (at least from models around the country) are the ones who end up substantially funding these efforts.
For more information on energy efficiency, please visit the ACEEE’s website where they store vast resources on this subject.
At the conclusion of the hearing, Chairman McGregor made some remarks that reflected his intent to start the drafting process with respect to a comprehensive alternative energy bill. This will take some time—and may incorporate bills (or at least some provisions within them) which are already in the pipeline in the legislature.
At the next gathering of the House Alternative Energy Committee, Tom Stewart will be delivering the perspectives of the Ohio Oil and Gas Association. That hearing will take place on June 20th in room 122 of the Statehouse in Columbus.