Green power standard could save

LANSING, Michigan, US, 2004-10-06 (Refocus Weekly)

More than 4,900 jobs would be created in Michigan and consumers in the state would save US$1.7 billion in lower utility costs via a green power standard, according to a study by the Union of Concerned Scientists.

A national standard in the United States to require 20% of all power to come from renewables by 2020 would allow green power to create 2.3 times more jobs than generating electricity from new natural gas and coal power plants. Generating that share of electricity from wind, solar, biomass and other renewables would also yield new income for rural communities from capital investment and direct payments, it explains.

“Michigan should be a national leader in renewable energy,” says David Gard of the Michigan Environmental Council. “We produce less than 2% of our electricity from non-hydro renewables when much more is possible.”

The state imports all the coal and most of the natural gas it needs to generate power, and a national RPS for electricity would save consumers $1.7 billion on energy bills through 2020 by reducing demand for natural gas and keeping the price for that fuel low. Nation-wide, consumer savings would exceed $49 billion, says UCS.

By 2020, the analysis says the national standard would yield a net gain of 2,800 new jobs in manufacturing and construction, as well as $1.2 billion in capital investment, $407 million in payments to farmers and rural landowners from producing biomass energy, and $83 million in property tax revenues for rural communities.

“Michigan can use renewable energy sources such as wind and biomass to grow jobs, save consumers money and bolster rural communities," says Jeff Deyette of UCS. “The economic upside for this state is enormous, provided that the right decisions are made now.”

In Wisconsin, the national standard would produce 4,400 jobs and create 1.8 times more jobs than generating power from fossil fuels, according to a parallel report for that state. Wisconsin is one of 17 states that currently have a RPS, which calls for 2.2% of the state's electricity to come from renewables by 2011. An Energy Task Force convened by Governor Doyle recently recommended that level be increased to 10%, and the recommendation will be considered by the state legislature in the upcoming session.

“Wisconsin should be commended for once again leading the way on an important issue of public policy," says Michael Vickerman of RENEW Wisconsin. "We need to increase the state standard in line with the Governor's Energy Task Force recommendations, but we also need Congress to act to set a national standard.”

Currently, less than 1% of electricity in Wisconsin is generated by non-hydro renewables.

A 20% national standard would save Wisconsin consumers $980 million on their energy bills through 2020, and would produce a net gain of 2,000 new jobs, $947 million in capital investment, $401 million in income for farmers and rural landowners from turbine leases and the production of biomass energy, and $61 million in property tax revenues for rural communities.

The national renewables standard would reduce the growth of carbon emissions from power plants by 59% by 2020, as well as reduce other pollutants such as nitrogen oxides that cause smog and mercury that harms human health.

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