Conversations about Energy: How the Experts See America's Energy Choices

177 Pages·2010·0.496 MB·English

by  Jeremy Carl, James E. Goodby, George P. Shultz

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
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ofthestaff,officers,orBoardofOverseersoftheHooverInstitution.
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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
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