The 2008 Electric Utilities Environmental Conference kicked off on Sunday here in my college town of Tucson, AZ. John Nangle, A colleague of mine in the McGuire Entrepreneurship program is helping to organize the conference and offered to let me join in the festivities in exchange for a little volunteer time.
The opening plenary Monday morning was headlined by Minnesota Governor Tim Pawlenty. Pawlenty began with a famous quote from leadership and management guru Peter Drucker speaking about the future,
"The things that got us here, will not get us there."
In terms of the environment, doing the same things that got us in this mess, will not get us out of it. We need drastic change. Pawlenty noted that the EIA expects a 30% increase in electricity usage in the U.S. alone in the next 20 years.
As an expert in public policy, the governor provided accurate incite about the three stages that ALL major public policy debates go through:
Stage 1: "That will never work"
Stage 2: "It is too expensive"
Stage 3: "I was for it all along"
The Governor then went on to state that the global warming debate is at least between stages two and three, an encouraging acknowledgment of how mature the debate has become.
Like any good politician, Pawlenty proceeded to inform the EUEC crowd of the hard work that he was doing in this area. As the chair of the National Governor's Association, he announced in July the Securing the Clean Energy Future initiative. With the Department of Energy as a partner, this initiative has four main areas of focus:
Area 1: Energy Conservation & Efficiency
Area 2: Alternative Energy & Fuels
Area 3: Compacts to regionalize research & development efforts
Area 4: Reduce GHG
Pawlenty has shown admirable leadership of his state with good policy including mandates indicating the state's must purchase PHEV's when they become available, and purchase next-generation computers that will be 30-50% more energy efficient. Pawlenty also led Minnesota to require the state to use 1.5% less energy each year going forward.
My feeling is that Pawlenty is providing good leadership for many constituents and clearly chooses his words carefully (Clean & Alternative Energy versus Renewable). By doing so, he can achieve more without leaving anyone in the dust.
The next speaker at the opening session was Anthony Early, Chairman of the Board of DTE Energy, parent to Detroit Edison and other utilities. The Chairman applauded Pawlenty's focus of balancing the environment with the economy, and the challenge of not ruining one while trying to save the other.
Early noted how the environmental game had changed for utilities in the last ten years. In the past, environmentally focused employees were seen as necessary cost-centers, with environmental VP's speaking with their bosses only once or twice a year. Now, these departments are seen as growth opportunities and communication is twice weekly, if not daily.
The Chairman noted that 62% of Americans believe that our country is headed in the wrong direction in terms of the environment. He expanded on Pawlenty's point about electricity growth noting that there is a strong correlation between electricity growth and an increase in the standard of living. However, along with that increase, will come new and greater challenges. Early did provide some encouraging news by focusing on recent gains in reducing Sulfur Dioxide (down 47%) Nitrous Oxide (down 41%) and Mercury (down 33% and expected to go down an additional 25% in next decade).
Early stressed that when climate change legislation comes, it must be fair to all parties. He noted that only 1/3 of GHG come from the business sector, meaning that 2/3 comes from elsewhere. Early feels it would be unfair to only legislate change in the business sector, it needs to be economy-wide.
He went on to describe the clean energy efforts that DTE would be making under the correct legislation including filing a permit for a new nuclear facility (1 of 30 applications nationwide that can take 10-12 years in order to complete), and investing billions in wind power development.
Referencing Thomas Jefferson, Early stated that "Every generation needs a new revolution", this is ours.
Hopefully, more to come in later posts.










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