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Energy: Using Our Energy to Make a Difference

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The global energy crisis has put our economy on the brink and left our planet in peril. Since Elizabeth Dole was elected, gas prices have more than doubled, the price of oil has tripled, and the average price of a gallon of gas is the highest ever. At the same time that Americans are digging deeper than ever to meet high energy costs, oil companies are recording some of the biggest profits in history. Americans want to be more energy independent and energy efficient, and we need to find a solution that will protect our economic security, national security and our environment. We need to reduce costs, increase investments in clean energy and create good, clean jobs in North Carolina that can’t be outsourced. [Fayetteville Observer, 4/20/08; CBS News, 4/1/08; AAA Fuel Gauge Report, 4/20/08; Raleigh News & Observer, 1/10/03; Center for American Progress poll, April 2007]

Kay’s plan is about more than renewable energy – it’s about renewing America to take on the economic, environmental, and national security challenges of the 21st Century. Kay’s plan:
Gets Serious About Gas Prices And The Economy. America uses 20 million barrels of oil each day, of which approximately 60% comes from imports. We spent nearly $1 billion per day on oil imports in 2007, and it accounts for approximately 41% of our trade deficit. It is crucial for our economy to end our
dependence on foreign oil. [Providence Journal, 3/27/08; Democratic Policy Committee, 2/28/08]

Will Strengthen Our National Security. Energy security requires stemming the flow of money to oil rich regimes that are hostile to America and its allies. Americans want to be able to meet their energy needs without supporting despotic governments that aid the terrorists who target us. America’s future security also demands combating climate change by developing the next generation of clean energy sources. [Arkansas Democrat-Gazette editorial, 3/17/08]

Helps America Reclaim Global Leadership In Environmental And Energy Technologies. America is failing to keep pace with the ever-greening global economy. We have the talent and the ingenuity; we just need to harness it. Our foreign competitors are racing ahead of us in key environmental and energy technologies, in large part because of concerted government efforts abroad. Notably:

• • Companies in Europe produce 65 percent of the world’s wind power. [Frost and Sullivan release, 4/7/08]


• • Germany and Japan are world leaders in solar cell production. [Newsweek, 4/21/08]


• • Brazil is the global leader in the use of renewable fuels, such as ethanol and biodiesel, and a global leader in the generation of electricity from renewable sources, mainly through hydroelectric power. [Biofuel Industry in Brazil, Energy Business Reports, Feb 2008]

America’s entrepreneurs and innovators can develop the next generation of energy technologies and create new green collar jobs.

ENERGY INDEPENDENCE

End our Dependence on Foreign Oil

Encourage Individuals And Businesses To Become Energy Efficient And Reduce The Amount Of Energy We Need. To reduce our dependence on foreign oil, the threat of global warming, and the high costs of energy use, we should invest in technologies that allow us to meet our energy needs with less energy. Until alternative energy sources become more affordable and available, the government should encourage the use of renewable energy through a variety of options. We should extend and expand tax credits for businesses and individual homeowners who make energy efficiency improvements to their property. We should also implement policies to reduce emissions and increase energy efficiency in the
transportation and electricity sectors, and offer a tax credit for purchasing energy-efficient, plug-in hybrid vehicles.

Increase Fuel Efficiency Standards And Investments In Public Transportation. To lower the amount of carbon emissions in transportation, Kay supports increasing fuel efficiency standards and increasing investments in public transportation. We need to invest in new and existing fuel-efficient technologies, including hybrid and electric technologies. We also need to provide incentives for American auto manufacturers to build these cars and for individuals to purchase these vehicles. Since investments in public transportation have many indirect benefits on the economy, Kay also supports investments to increase public transportation systems.

Public Transportation Creates Jobs, Business Profits And Government Revenue:

• • Every $10 million in transit capital investments creates 314 jobs and $30 million in sales for businesses, while $10 million invested in transit operations creates more than 750 jobs in the short term, and $32 million in increased sales for businesses.


• • Every $10 million invested saves more than $15 million in transportation costs to highway and transit users.


• • On average, a typical state/local government could realize a 4 to 16 percent gain in revenues due to increases in income and employment generated by investments in transit. [Cambridge Systematics with Economic Development Research Group: “Public Transportation and the Nation’s Economy: A Quantitative Analysis of Public Transportation’s Economic Impact,” October 1999]

Exercise Global Leadership. Global warming is obviously an international problem that requires concerted action by all countries. The United States should get our own house in order, and simultaneously join international efforts to reduce greenhouse gas emissions. One potential idea is to create an E-8 of nations, including developed and developing countries, to find a solution that will make an impact on a global level. [Brookings Institute, January 2001; Center for American Progress, November 2007]

Lower Gas Prices During Busy And Expensive Summer Months. Congress should demand that President Bush put pressure on OPEC so they will halt rapid increases in gas prices before the summer begins. Kay also believes Congress should act quickly to temporarily cut the federal gas tax in half this summer, helping middle class families get some relief when gas prices are typically the most expensive. [San Diego Union Tribune, 2/26/08]

Move Towards a Green Economy

Increase Production And Use Of Alternative Energy Sources. Kay knows that if we want to decrease our dependence on foreign oil, we cannot rely on just one source, and we will have to rely on a combination of other energy sources. Kay supported the state law that required 12.5 percent of North Carolina’s energy to come from renewable energy sources by 2021, and she would have supported one of the provisions that was stripped out of the 2007 energy bill which would have required 15 percent of our nation’s energy supply to come from renewable sources by 2020. In order to ensure that our country will be able to increase clean energy generation, we need to provide long-term, dependable tax credits to companies that develop or generate electricity through renewable resources such as wind, water, solar and biofuels.

• • Create Jobs. Energy efficiency creates jobs. Experts have suggested that every $10 million invested in clean energy production will create anywhere from 160 to 215 new, good-paying jobs. Once we have identified jobs that will be created, we will support job-training initiatives, especially for low-income workers or the unemployed, so those individuals can be lifted out of poverty. [Apollo Alliance Green Collar Jobs, 2008, Energy bill backgrounder, December 2007; Center for Business and Economic Research, 2003 study]
• • Save Ratepayer Dollars. The Union of Concerned Scientists said increasing the use of renewable energy by 15% over the next 12 years would save North Carolina ratepayers anywhere from $130 million to $530 million. [Union of Concerned Scientists, Cashing In On Clean Energy, October 2007]

Create Market Incentives To Invest In New Technologies And Reduce Carbon Emissions By 60-80 Percent By 2050. By creating a market incentive for cleaner energy, Kay believes we can guarantee that our country will reduce its overall emissions. The US Climate Action Partnership, a consortium of businesses and environmental groups, has called a cap and trade system “essential” for the environment and for the economy. The system harnesses American ingenuity and innovation by creating a market incentive for companies and the government to produce cleaner energy. Under the system, the economy’s carbon emissions would be capped and reduced over time, and companies that reduce emissions faster will be able to sell their emissions savings to other companies, creating a profit motive for cleaner energy. [US Climate Action Partnership Call for Action, January 2007]

Redirect Tax Breaks And Subsidies From Oil And Gas To Clean Energy Entrepreneurs. The federal government currently provides approximately $1.8 billion annually in tax breaks and other subsidies to
the oil and gas industry. President Bush admitted in 2005, “With $55 [a barrel] oil, we don’t need incentives for oil and gas companies to explore,” and now oil is more than twice that price. Given their record profits of $123 billion in 2007 alone, Kay knows that oil and gas companies do not need this kind of federal assistance, and she would redirect these funds to invest in clean energy sources that can create jobs in North Carolina. [CBS News, 4/1/08; Atlanta Journal Constitution, 4/2/08]

CREATE JOBS IN NORTH CAROLINA

Harnessing North Carolina’s Assets To Create 300,000 North Carolina Jobs. Taking advantage of North Carolina’s assets and resources, we can create jobs, grow North Carolina’ economy and set an example for the rest of the country. A study released in October 2007 showed that North Carolina could net 300,000 more jobs by 2020 by implementing energy-efficiency programs and producing more renewable energy. [Associated Press, 10/24/07]

North Carolina’s Agriculture Sector Can Grow Clean Energy Sources. In 2007, North Carolina’s Strategic Plan for Biofuel Leadership noted that 5.6 million gallons of petroleum-based liquid fuel was being sold in North Carolina each year, but none of that fuel was being produced in state. Kay knows North Carolina can and should be a leader in biofuel production by taking advantage of the vast farmland to grow energy crops, which is why she supported a $5 million appropriation for a Biofuel Center to ensure that at least ten percent of liquid fuel in state will have been grown and produced in state by 2017. [North Carolina’s Strategic Plan for Biofuels Leadership, April 2007]

North Carolina Can Be A Leader In Switchgrass Biofuel Creation. As noted by the Union of Concerned Scientists, “Switchgrass appears to be the most promising herbaceous energy crop. It produces high yields and can be harvested annually for several years before replanting.” Switchgrass could be better for the soil because the land is not tilled as often, which eliminates damage from machines and minimizes erosion, and it requires less chemicals such as fertilizers or pesticides. [Raleigh News & Observer, 2/20/08; Durham Herald Sun, 1/26/08; North Carolina’s Strategic Plan for Biofuels Leadership, April 2007]

Biofuels Will Boost North Carolina’s Economy. Energy crops and crop residues could provide 14 percent of U.S. electricity use or 13 percent of the nation’s motor fuel, and switchgrass is a natural choice because it grows naturally in moderate climates and can grow abundantly in drought conditions. An Oak
Ridge National Laboratory study showed that switchgrass could increase domestic farm income by up to $6 billion, and another study showed that switchgrass and woodchips could create 10,500 new jobs for farmers, truck drivers and refinery workers. [Washington Post, 9/5/07; Union of Concerned Scientists, Biomass and
Agriculture Fact Sheet]

Utilize Our Universities To Make North Carolina A Major Research Center. North Carolina has an unparalleled university system which should be a leader in developing new, green technologies, including developing technology to refine energy crops such as switchgrass and turn them into biofuels. Publicprivate
partnerships such as that which created the Advanced Transportation Energy Center (ATEC) are key to producing results quickly and affordably. North Carolina is working with N.C. State University, Duke Energy and Progress Energy to develop an electric car battery which can travel for more than 100 miles before being recharged. The project will be funded jointly by grants from the U.S. Department of Energy, Duke Energy and Progress Energy, and is expected to create new jobs and bring new investments into the state. [Raleigh News & Observer, 2/13/08; Charlotte Observer, 2/13/08]

North Carolina’s Manufacturing Base Can Build The Equipment To Produce Clean Energy. North Carolina should be in a good position to benefit from an increase in the use of wind power because the state has the ability to produce gears, blades and other parts needed to build a windmill. PPG Industries, near Shelby, was able to modify its operations to manufacture windmill blades. [Charlotte Observer, 2/12/08]

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