The
use of fossil fuel energy has created vast environmental and societal issues,
which has led to the questioning of the sustainability of our energy choices
and usage. The noticeable detrimental effects of fossil fuels, combined with
the development of renewable energy technologies, is leading our society to
begin to examine our current energy policies, and to propose new energy
policies that promote values which respect environmental and societal health.
The
energy portfolio in Wyoming is comprised mainly of fossil fuel energy. In 1997,
the state consumed 466.5 trillion BTUs of coal, 107.9 trillion BTUs of natural
gas, 149.0 trillion BTUs of petroleum, and only 14.2 trillion BTUs of the semi-renewable
hydropower (www.eia.doe.gov/emeu/sep/wy/frame.html).
Wyoming has the potential to utilize renewable technologies such as wind power,
geo-thermal energy, solar thermal energy, photovoltaics, small-scale
hydro-power, and biomass resources. An energy policy must be created in Wyoming
that will spur change in the behavior of the people who live and work there,
and will create an equal opportunity of representation of renewable energies in
the energy portfolio.
The
fossil fuel industry has been heavily subsidized since its creation. The issue
has been raised as to whether subsidies are the way to approach supporting an
energy technology. If the answer is yes
or no, the fact still remains that it requires a great deal of money to
establish an energy technology, and few have reached maturity without
substantial public investment (Goldberg 2000). Subsidies are designed to enable
or to encourage the development of a particular technology through expenditures
by federal agencies for R&D, and preferential actions taken by government
such as production and investment tax credits and insurance premium savings
(Goldberg 2000). Subsidies are created to ensure the maturity of a technology,
but can outlive their purpose and end up acting against public interest. Subsidies must be created with environmental
impacts and intended purposes kept in mind.
Wyoming
can implement tax policies that will promote the use of renewable energy
technologies by giving a tax break for those investing in the systems. This
will serve to diversify the energy portfolio in the state by rewarding
residential, commercial, or industrial investment in renewable technology. Tax
credits can be offered on solar equipment, geothermal systems, wind projects,
fuel cells, energy efficient appliances and lighting systems, energy efficient
building in new homes, hybrid or electric cars, and any other technology that
promotes a responsible attitude toward energy use and energy sources.
Tax
credits can benefit people who have the initial capital to invest in renewable
energy technologies, but aren’t very useful for people with not much money for
the initial investment. Low-interest loans and grants can be implemented to
help people invest in renewable energy systems for their homes or businesses,
and for people or institutions who are trying to conduct research on renewable
energy technologies. Placing a requirement for the reduction in energy use and
increased efficiency in order to receive the loans or grants will serve to
promote energy savings as well as alternative energy sources.
The
renewable portfolio standard (RPS) serves to diversify a state’s energy sources
and promotes a market for the still young renewable energy industry. RPS
requires that any company selling electricity on the competitive market provide
a certain amount of renewable energies in their portfolio, thus creating a
place in the market for renewable energy. Wyoming should implement a standard
of .5% increase for the first five years of the program, increasing to 1% for
the subsequent 5 years after, and progressively increase the required
percentage as the market for renewables grows and becomes an accepted source of
energy in the American market. Wyoming should impose penalties for those
companies that do not meet the demand for renewable energy provided, however,
companies who produce more than the required amount may sell their extra
percentage to companies who were unable to meet the requirement. The penalties
should be enough that they deter companies from disregarding the requirement,
but should not be so rigid that renewable energies are seen as a hindrance to
company development.
In
order to create a uniformity amongst energy providers, standards must be set as
to which energy sources may be labeled as renewable. Wyoming should also
require its energy providers to state how much renewable energy they produce or
sell, and the impact of each individual energy source on the environment, at
least in terms of emissions. This regulation would enable customers to see
which companies provide renewable energies, and because of regulations imposed
on what energies can be labeled as renewable, customers can confidently
purchase renewable energy from a decided company.
The
systems benefit charge, or SBCs, impose a minimal charge per kWh to all
customers of energy companies. This charge will be put into a fund for
renewable energy R&D, and can benefit weatharization programs which help
low-income families increase energy efficiency and decrease energy costs. The
amount of this charge is a miniscule amount of a person’s total energy bill,
but overall will greatly increase the amount of money put into renewable
energies. Wyoming should start with a small fee, as this state is conservative
in its views of energy and heavily reliant on coal and other fossil fuels. A
.03 cent per kWh fee should be imposed first, eventually increasing over 15
years to cap at 4% of the customers total energy bill. This money will greatly
increase Wyoming’s expenditure in renewable energy R&D and implementation.
Energy
policies should do more than just focus on energy production, they should also
promote energy conservation. If Wyoming implements policies that establish high
efficiency standards, promote the increased efficiency of buildings, and give
renewable energy a fair chance to find a place in the energy market, the state
can greatly change its energy picture. Wyoming will have a more diverse energy
portfolio, thus creating a more stable energy platform. They will use less
energy, thus saving on the amount paid to energy producers. They will create
markets for more sustainable industries, and they will be tremendously reducing
the effects of their energy consumption on the environment, both in their state
and globally.
Wyoming
is home to many beautiful natural areas, such as Yellowstone National Park and
The Grand Tetons. Their economy is reliant on the tourism and recreational
activities that their natural areas bring, and to preserve the pristine
atmosphere of these places would greatly benefit their economy. The promotion
of renewable energy use in the state will benefit both the vitality of the
economy and the environment.
www.eren.doe.gov/state_energy/policy_options
www.eia.doe.gov/emeu/sep/wy/frame.html
Goldberg, M. 2000. “Federal Energy Subsidies: Not
All Technologies Are Created
Equal”. Research Report from
Renewable Energy Policy Project (REPP). July
2000. N11.