Policy Progress in the Midwest

by Richard T. Stuebi

When it comes to clean energy, it’s no secret that the Midwest U.S. far lags beyond the East and West Coasts. This is because, on the coasts, public policy far more aggressively promotes advanced energy. The Regional Greenhouse Gas Initiative (RGGI) in the Northeast and the Western Climate Initiative in the West are regional emission-reduction compacts that will drive significant adoption of renewable energy and energy efficiency. Correspondingly, much of the future advanced energy industry is emerging on the coasts, getting established to serve local markets, while the Midwestern industrial base largely hollows out and stagnates.

A few weeks ago, the Midwestern Governors Association (MGA) began to take steps to close the gaps. The Governors of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, South Dakota and Wisconsin, along with the Premier of the Canadian province of Manitoba, met to discuss shared energy challenges. The result: two pacts that start to lay the groundwork for regional collaboration and commitment to energy/emissions reductions.

The Energy Security and Climate Stewardship Platform sets significant goals in four areas:

  1. Energy efficiency: electricity demand reduced by 2% by 2015, 2% per year thereafter
  2. Biofuels: 1/2 of regional transportation satisfied by biofuels and other low carbon fuels by 2025
  3. Renewable energy: 30% of regional electricity supply from renewables by 2030
  4. Coal with carbon sequestration: all new coal plants with sequestration by 2020, all plants in fleet by 2050

The Energy Security and Climate Stewardship Platform also proposes six areas of regional collaboration:

  1. Carbon management infrastructure: for transporting and storing CO2 in a coordinated fashion
  2. Bioproduct procurement: to establish a common marketing/sales framework for bioproducts
  3. Electricity transmission: to expand transmission to accomodate greater amounts of renewables (especially wind)
  4. Renewable fuels infrastructure: for transporting biofuels and other low carbon fuels
  5. Bioenergy permitting: to avoid duplicating or conflicting efforts in various jurisdictions and arrive at common standards
  6. Low carbon energy integration: to demonstrate the potential to harness multiple forms of advanced energy synergistically

Lastly, some of the Midwestern governors signed the Greenhouse Gas Accord, which commits the signatories to establishing targets and timeframes for greenhouse gas reductions on the order of 60-80% reductions by 2050, along with a cap-and-trade mechanism for reaching these targets.

Note that only some of the Midwestern governors got on board with the Greenhouse Gas Accord. Signatories were Iowa, Illinois, Kansas, Michigan, Minnesota, Wisconsin, and Manitoba. Indiana, Ohio and South Dakota only opted for “observer” status — whatever that really means.

A spokesman for Ohio Governor Strickland was quoted by Gongwer in saying that “the governor supports the Midwest states’ effort to move forward in the way outlined in the agenda, but Ohio is not in a position today to participate actively in [the Greenhouse Gas Accord].” I am compelled to ask: what exactly about Ohio’s current energy situation is materially different than, say, Michigan (which signed the Greenhouse Gas Accord)?

Richard T. Stuebi is the BP Fellow for Energy and Environmental Advancement at The Cleveland Foundation, and is also the Founder and President of NextWave Energy, Inc.

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