Renewable Energy: Legal Challenges and Solutions for the Green Economy American Bar Association Renewable Energy: Legal Challenges and Solutions for the Green Economy American Bar Association October 28, 2009 Christopher Guith Vice President Institute for 21 st Century Energy US Chamber of Commerce

Open Letter   July 16, 2008 – Release of “Open Letter” to next president and Congress on “Securing America’s Energy Future”   Signed by bipartisan group of 27 opinion leaders, former high-ranking government officials, and respected energy experts   Outlines 13 energy principles: 7.Commit to the Use of Clean Coal 8.Increase Renewable Sources of Electricity 9.Transform our Transportation Sector 10.Modernize and Protect U.S. Energy Infrastructure 11.Address Critical Shortages of Qualified Energy Professionals 12.Reduce Overly Burdensome Regulations and Opportunities for Frivolous Litigation 13.Demonstrate Global Leadership on Energy Security and Climate Change 1.Aggressively Promote Energy Efficiency 2.Reduce the Environmental Impact of Energy Consumption and Production 3.Invest in Climate Science to Guide Energy, Economic, and Environmental Policy 4.Significantly Increase the Funding for RD&D of Advanced Clean Energy Technologies 5.Immediately Expand Domestic Oil and Gas Exploration and Production 6.Commit to and Expand Nuclear Energy Use

Blueprint for Securing America’s Energy Future   Builds on 13 pillars of “Open Letter”   Provides a comprehensive energy strategy   Over 75 actionable recommendations - not a menu of recommendations; all the pieces have to be in place!   Thinking comprehensively opens up possibilities and creates opportunities   Blueprint will be followed by a “transition plan” that we will provide the next president and Congress a detailed roadmap to a balanced energy strategy   Four broad themes:   Promote greater energy efficiency   Increase and diversify our energy supplies   Modernize and protect our nation’s energy infrastructure   Improve environmental stewardship

Policy Realities   American Business & the U.S. Chamber of Commerce have consistently supported the expansion of renewable sources of electricity.   If the goal is job creation and greenhouse gas reduction, focusing solely on renewables is insufficient.   Goal should be to encourage the private sector to develop and deploy all technologies that meet these goals.   The least costly method to achieve these goals is to bring down the deployment costs of relevant technologies.   The two single greatest obstacles to deploying more renewables, and clean technologies in general are   1) Capital Finance; &   2) Regulatory Certainty

Policy Realities – Capital Finance   Fiscal Policy   Availability of the federal investment tax credit and production tax credit have been the greatest forecaster of investment in renewable power projects.   Extend all of the credits for 8 years and phase them out over four.   General Policy   Clean Energy Bank – Dynamic scope in Congress, but everyone agrees on the need to ensure new technologies are able to overcome permanent market inefficiencies in order to secure financing for deployment.

Policy Realities – Regulatory Certainty   Energy sector suffers from a lengthy, unpredictable, and needlessly complex regulatory maze   Environmental activists & parochial protectors use regulatory process to delay/halt construction of new energy infrastructure   Federal and state environmental statutes—such as the National Environmental Policy Act   State siting and permitting rules   BANANA - “build absolutely nothing anywhere near anything” mentality   Project/No Project   Over 400 energy projects that have been delayed or scuttled.   Over 130 renewable energy projects   SOLUTIONS:   NEPA Review   Federal Preemptive Siting Authority for interstate transmission Want “Green Jobs”? Cut the “Green Tape”