Energy

Since Northeastern and Midwestern states lack abundant supplies of oil and natural gas, and typically pay higher energy prices than those in energy-producing states, the development and deployment of energy-efficient and renewable energy technologies are particularly important. The Northeast-Midwest Institute works on a variety of fronts to advance innovative technologies and improve the region's efficiency. It seeks to overcome policy and regulatory barriers to such technologies, including combined heat and power (CHP) and other forms of clean distributed generation. The Institute also works with states and industries on integrated approaches to manufacturing modernization that focus on both productivity and efficiency.

The Institute builds coalitions and bridges among stakeholders to achieve common goals of energy security, energy reliability, increased productivity, and a cleaner environment.  The staff works with the federal government, including the Department of Energy and Environmental Protection Agency, as well as power companies, manufacturers, regulators, and other nonprofits.

Federal policies that encourage residents, businesses, governments, and other entities to upgrade and improve the efficiency of energy use represent a way to mitigate the impact of high fossil fuel prices, carbon emissions, and their impact on the economy.  The development and deployment of innovative efficiency and energy technologies offer an opportunity to spur manufacturing, create jobs, and reduce environmental impacts.

The Institute pursues changes to federal policy that will reduce dependence on imported energy, increase the efficiency of energy use, promote renewable energy use, and stimulate the development, production, and deployment of innovative technologies that will reduce the cost and environmental impact of energy use.

The Northeast-Midwest Coalitions--bipartisan Congressional and Senate Coalitions that advance federal policies to enhance the region's economy and environment--have led the efforts to increase funding for the Low Income Home Energy Assistance Program (LIHEAP), address regional energy market issues, and promote an array of energy efficiency initiatives.  In order to help low-income families afford soaring fuel costs, the Coalitions continue to ensure adequate funding for the Low Income Home Energy Assistance Program. In the past, they helped create a Northeast Heating Oil Reserve, advanced a swap within the Strategic Petroleum Reserve, and expanded the weatherization program.

The Institute is unique among policy centers because of its ties to Congress through the Northeast-Midwest Congressional and Senate Coalitions.  Northeast-Midwest Coalition members try to remove the regulatory and market barriers to innovative electricity technologies that could meet the needs of a thriving economy and still reduce pollution.

The Institute staff informs and educates members on the potential remedies to energy problems.  The Coalitions and Institute have led efforts to support work by the Offices of Industrial Technologies and Distributed Resources within the Department of Energy, the Manufacturing Extension Partnership within the Department of Commerce, and other federal programs that advance clean onsite power, electric reliability, industrial modernization, and efficiency.

Congress currently contemplates energy legislation and greenhouse gas emission legislation designed to reduce the carbon footprint of the nation’s energy use, and spur renewable and energy efficiency development.  Furthermore, the Surface Transportation Act is up for reauthorization, and Congress faces choices that will impact on the availability of more energy-efficient transportation choices that could dramatically reduce fossil fuel consumption.

Department of Energy Loan Guarantee Program

In 2005, Congress enacted energy legislation that established a loan guarantee program within the U.S. Department of Energy designed to spur private sector financing of “innovative energy projects.”  In 2009, as part of the Administration’s “stimulus bill” (the American Recovery and Reinvestment Act), Congress broadened that program with $6 billion to be used as capital to build conventional renewable energy generation and transmission projects, as well as the facilities that would manufacture the hardware necessary for these projects.  It is estimated that $1 million invested in this way would result in two to three times as many jobs as comparable fossil fuel fired generation.  There also would be a substantial reduction in carbon emissions, as well.

The Institute identified this program as having major potential for providing the older industrial cities of the northeast and the midwest with job-creating revenue to move into the new, green economy.  We held several webinars to explain the program to community leaders from our region and, in addition, studied the structure of the legislation and determined that a few rather minor modifications to it would greatly enhance its stimulative benefits.

The result of that analysis was a comprehensive white paper that the Institute provided to the Northeast-Midwest Congressional and Senate Coalitions.  A copy of that white paper can be found here.

On July 1, 2010, the House of Representatives included in its version of the 2010 Emergency Supplemental Appropriations Bill most of the changes recommended by the white paper.  The text of that legislation can be found here.

Links:

Northeast-Midwest Institute White Paper

Legislative Text

Electricity Issues

The nation’s electricity system, while impressive, is not sufficient for the 21st century. Today’s average generating plant was built in 1964 using technology from the 1950s.  Utilities have not improved their delivered efficiency in 50 years.  With stagnant efficiency at 33 percent, we essentially burn three units of fuel to generate one unit of electricity.  Put another way, two-thirds of the fuel burned to generate power is wasted. Electricity generators, moreover, are this nation’s largest polluters, spewing tons of mercury, sulfur dioxide, carbon dioxide, and other contaminants into America’s air and waters.  Despite significant government and industry effort, 46 of the top 50 emitters are power plants.

 
Low-Income Home Energy Assistance Program (LIHEAP)

Each year, Northeast Midwest Congressional Coalition members lead the effort to increase funding for the Low Income Home Energy Assistance Program (LIHEAP) that helps low-income households afford heating and cooling.  The persistent urging by the Northeast-Midwest Senate and Congressional Coalitions resulted in increased funding in the amount of $5.1 billion for LIHEAP in Fiscal Year 2009.  The coalitions were instrumental in adding an additional $250 million in Fiscal Year 2009 funds for the Weatherization Assistance Program.

 
Energy Information

Reliance on the market to make adjustments to changes in supply and demand, disruptions, and surges in energy prices underpins U.S. energy policy. When markets are open and transparent, the system works well as producers, investors, and consumers adjust to market changes – but efficient markets depend on accurate and timely data. Unfortunately, the U.S. Energy Information Administration (EIA) has not been able to keep pace with rapidly changing markets, new players, new fuels, and growing demand.

 
Energy Modeling

The Northeast-Midwest Institute is highlighting how improvements to energy models can better inform policy analysis and discussions. Through peer-reviewed articles and meetings, the Institute engages policy analysts and policy makers, as well as economists, in discussions about how energy modeling can better highlight opportunities for policy innovations.

 
Energy Efficiency

Energy use is the largest contributing factor to greenhouse gas emissions; therefore, focus needs to be placed on using energy more efficiently.  Industry consumes more energy than any other sector in the United States, and the Northeast-Midwest region is home to many of the most energy-intensive base industries.  Thus, improving energy efficiency in the industrial sector and the built environment can reap tremendous environmental benefits.

 

Contact Information

Diane DeVaul
ddevaul@nemw.org
202.464.4009

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