Hearing of the Energy and Power Subcommittee of the House Energy and Commerce Committee - Laboratories of Democracy: The Economic Impacts of State Energy Policies

Hearing

Today's hearing focuses on the economic impacts of state energy policies. It is an
opportunity to examine the growth of the clean energy sector and the positive economic benefits of renewable energy and energy efficiency.

States have taken a leadership role in harnessing the power of renewable energy.
Twenty-nine states and the District of Columbia have enacted renewable portfolio standards to generate more electricity from clean energy sources. As a result of these state programs and federal incentives, we have doubled our capacity to generate renewable electricity from wind and solar in just five years.

This is important because renewable and low-carbon energy sources are a fundamental part of any serious plan to address climate change.

In May, the International Energy Agency warned that the world needs to invest trillions of dollars in renewable and other clean energy technologies over the coming decades in order to avoid the worst impacts of climate change.

That is a potentially huge economic opportunity for the United States. Investing in
renewable energy is not only good for the climate, it is also a boon for U.S. manufacturing, jobs, and competitiveness.

Both blue states and red states have the success stories to prove it. Texas ranks first in the country for wind power installations and wind industry jobs. California ranks second. The wind industry has injected more than $11 billion into California's economy and $23 billion into the Texas economy. This investment translates into jobs and a stronger, more diverse tax base.

Energy efficiency also will play a key role as the world grapples with the challenge of
reducing carbon pollution and slowing dangerous climate change.

The International Energy Agency has concluded that if the world does not take action to reduce carbon pollution by 2017, then the energy infrastructure existing at that time will lock us into a path toward devastating climate change. But if we invest now in energy efficiency, we can give ourselves more time. According to the IEA, the rapid deployment of energy efficiency measures would give the world at least five additional years to develop long-term solutions.

States have taken action to make our industry, our buildings, and our transportation
system more energy efficient. This is commonsense policy that saves businesses and families money on their energy bills while cutting pollution.

But we need to do more. We need a national commitment to clean energy and energy efficiency in order to tackle the urgent threat of climate change. The Clean Power Plan proposed by EPA would make that commitment.

The plan lays out key building blocks for how states can cut emissions from the nation's largest source of uncontrolled carbon pollution: power plants. One building block is using electricity more efficiently. EPA based its proposal on what states are already doing to make homes and businesses more efficient.

Another building block is generating more power from zero- and low-carbon energy
sources. EPA looked at the renewable energy potential in each region of the country to determine the scope of the opportunity here for states. EPA found that all states can do more to tap their clean energy potential.

The Clean Power Plan is an eminently reasonable and achievable proposal. It gives states the flexibility to choose how to achieve critical reductions in power plant carbon pollution. And it sets us on a path toward cleaner air, better health, a safer climate, and a stronger, 21st century economy.

States will play a critical role in the success of the Clean Power Plan, so I thank the
witnesses for being here today.

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