Conversations about Energy: How the Experts See America's Energy Choices PDF
Preview Conversations about Energy: How the Experts See America's Energy Choices
Conversations About Energy TheHooverInstitutiongratefullyacknowledges THOMASANDBARBARASTEPHENSON fortheirsignificantsupportofthe Shultz-StephensonTaskForceonEnergyPolicy andthispublication. Introduction by George P. Shultz Edited by Jeremy Carl and James E. Goodby HOOVER INSTITUTION PRESS STANFORDUNIVERSITY STANFORD, CALIFORNIA TheHooverInstitutiononWar,RevolutionandPeace,founded atStanfordUniversityin1919byHerbertHoover,whowenton tobecomethethirty-firstpresidentoftheUnitedStates,isan interdisciplinaryresearchcenterforadvancedstudyondomestic andinternationalaffairs.Theviewsexpressedinitspublicationsare entirelythoseoftheauthorsanddonotnecessarilyreflecttheviews ofthestaff,officers,orBoardofOverseersoftheHooverInstitution. www.hoover.org HooverInstitutionPressPublicationNo.605 HooverInstitutionatLelandStanfordJuniorUniversity, Stanford,California,94305-6010 Copyright(cid:2)2010bytheBoardofTrusteesofthe LelandStanfordJuniorUniversity Allrightsreserved.Nopartofthispublicationmaybe reproduced,storedinaretrievalsystem,ortransmitted inanyformorbyanymeans,electronic,mechanical, photocopying,recording,orotherwise,withoutwritten permissionofthepublisherandcopyrightholders. Firstprinting2010 16 15 14 13 12 11 10 7 6 5 4 3 2 1 ManufacturedintheUnitedStatesofAmerica Thepaperusedinthispublicationmeetstheminimum RequirementsoftheAmericanNationalStandardfor InformationSciences—PermanenceofPaperforPrinted LibraryMaterials,ANSI/NISOZ39.48-1992.(cid:3)(cid:2) LibraryofCongressCataloging-in-PublicationData Conversationsaboutenergy:howtheexpertsseeAmerica’senergy choices:conferencereport/introductionbyGeorgeP.Shultz; editedbyJeremyCarlandJamesE.Goodby. p.cm.—(HooverInstitutionPresspublication;no.605) ISBN978-0-8179-1305-2(pbk.:alk.paper) ISBN978-0-8179-1306-9(e-book) 1. Powerresources—UnitedStates—Congresses. 2. Energypolicy—UnitedStates—Congresses. I.Carl,Jeremy. II.Goodby,JamesE. III.HooverInstitutiononWar,Revolution, andPeace. TJ163.25.U6C665 2010 333.790973—dc22 2010040887 CONTENTS Preface vii IntroductionbyGeorgeP.Shultz 1 Recommendations 7 Sessions 1 DistributedEnergy 15 2 WhatCanWeDoToBoostEnergyEfficiency? 25 3 TheNuclearFuelCycle 33 4 SyntheticBiologyandItsApplicationsinEnergy 43 5 PuttingaPriceonCarbon 63 6 ASustainedResearchandDevelopmentPolicy 73 7 EmergingInternationalEnergyRelationships 87 Appendix1 WorkingwithChinaandIndia 101 WhatCanAmericaDowithChina?byDavidVictor 102 TheU.S.-IndiaClimateandEnergyRelationship: DealingwithaPower-StarvedCountry byJeremyCarl 107 Appendix2 MembersoftheShultz-StephensonTaskForceon EnergyPolicy 115 Appendix3 ConferenceAgenda 131 ConferenceParticipants 136 v PREFACE O N JANUARY 19–20, 2010, the Hoover Institution’s Shultz- StephensonTaskForceonEnergyPolicyconvenedaconference for the purpose of discussing several critical energy issues. The issues were selected because the Task Force believed they were especiallyimportant,notonlyintermsofimprovingthenation’s energy stance but also in demonstrating the nation’s ability to influence events through sound policies at all levels of govern- ment.Thetopicsincluded: 7 Distributedenergy 7 Energyefficiency 7 Internationalizingthenuclearfuelcycle 7 Syntheticbiology:issuesandprospects 7 Puttingapriceoncarbon 7 Sustainedsupportforresearchanddevelopment 7 Emerginginternationalenergyrelationships InadditiontomembersoftheHooverEnergyTaskForce,other energyexperts,entrepreneurs,scientists,andeconomistspartici- patedintheconference,allsharingtheconvictionthatformulat- ing good energy policy is one of the nation’s most important challenges. Throughout, the format was designed to encourage vii viii (cid:3) PREFACE opendialoguewiththeaimofflushingoutideasandrecommen- dationsthatmightimprovetheperformanceoftheUnitedStates inrespondingtotheenergychallenge. At the time of this writing, both the Senate (Kerry-Lieberman, Lugar-Graham, and proposals by Majority Leader Reid) and House (Waxman-Markey) still have major energy and climate bills pending. It is increasingly uncertain that either house will pass substantive legislation during this Congress. But, it is our hope thatsomeoftherecommendationswelayoutinthisbook will have an effect on the future energy and climate policies at thestateandnationallevels. Following the Introduction by Task Force Chair George P. Shultz, we present a summary of recommendations and a pre- sentationofthehighlightsoftheproceedings.Thesearesumma- rized in dialogue format, edited and condensed for the sake of brevity and introduced with explanatory material on each sub- jectcovered. INTRODUCTION GeorgeP.Shultz Chair,Shultz-StephensonTaskForceonEnergyPolicy O VERTHEPASTFOURDECADES,theUnitedStateshasbeenon an energy roller coaster that has landed us, unnecessarily, in a place that is dangerous to our economy, our national security, andourclimate. In 1959, President Eisenhower, concerned that overdepen- denceonimportedoilwouldbeathreattoournationalsecurity, imposed a quota of 20 percent of consumption on imports. Today,weimportover60percentoftheoilweuse. Andcausesforconcernhaveincreased.Theeconomicimpact of dependence on foreign oil has always been apparent as eco- nomic recessions have invariably followed significant oil price increases.PresidentEisenhower’sconcernaboutnationalsecur- ity has been greatly heightened in recent times because high prices have funneled large flows of revenue to regimes that do notwishuswell. Now the issue of climate change has been added to our list of concerns. Recognition of the environmental risks created by greenhouse gases has heightened apprehensions about our heavy reliance on oil. And it has brought concerns about the 1
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