Testimony before the Assembly Environment and Solid Waste Committee
Urging Support for the Global Warming Response Act (A3301/S2114)
Suzanne Leta Liou, Global Warming and Clean Energy Advocate
February 20, 2007
Thank
you for the opportunity to testify before you today. I am Suzanne Leta Liou, the Global Warming
and Clean Energy Advocate for Environment New Jersey. Environment New Jersey, the new home of
NJPIRG’s environmental work, is a non-partisan, non-profit environmental
advocacy organization with over 20,000 citizen members across the state. We advocate for clean air, clean water and
open spaces and we have a 30-year history of promoting and winning clean energy
solutions for New Jersey.
Right
now, our top priority is to tackle the greatest and most urgent environmental
challenge of our time: global warming. You
have just heard from some of the nation’s leading scientists confirming the
scientific consensus that global warming is indeed very real. Global warming will devastate our state’s
economy, ruin our treasured shoreline and wreak havoc on public health if we do
not take quick and decisive action to cut our greenhouse gas emissions.
While
it is essential to understand the consequences of global warming for our state,
it is even more important to know that this is a problem we can solve. By cutting global warming pollution,
primarily carbon dioxide, by roughly 20 percent below current levels by 2020
and 80 percent by 2050, we can avoid the worst effects of global warming,
protecting our children and future generations.
We
have the solutions available right now to achieve these reductions. These solutions will also grow our economy by
promoting investment in clean, renewable energy technologies, protect consumers
from rising energy prices and preserve the environment in a multitude of ways.
In
order to ensure this becomes a reality, however, we need leadership from the
state legislature.
We
need you to pass the Global Warming Response Act. This ground-breaking legislation, modeled off
the California Global Warming Solutions Act (AB32), requires mandatory limits
on all global warming pollution from all sources statewide to below 1990 levels
by the year 2020, about a 20 percent reduction below current levels. The state Department of Environmental
Protection (DEP), in consultation with other state agencies, is directed to
develop rules and programs to carry out this task.
New
Jersey’s passage of this legislation will make us the second state in the
nation to pass a comprehensive solution to global warming. In light of that, I would like to talk
briefly about how New Jersey’s current policies make our state incredibly
well-positioned to meet the goal of this bill and ensure that we receive the
immense benefits from being at the vanguard of global warming solutions. I also want to give you a sense of the
multitude of additional solutions we can use to achieve the goal; solutions
that bring benefits to the economy, the environment and consumers.
But
let’s take a few steps back and clarify where our global warming pollution is
coming from in New Jersey – I am referring specifically to carbon dioxide, the
leading greenhouse gas. Half of our pollution,
52 percent, comes from transportation, primarily cars and trucks. 16 percent of our pollution comes from
in-state power plants that generate electricity. We also import 20 to 30 percent of our total electricity
use from out of state, including dirty coal-fired power plants in
Pennsylvania. 21 percent of our pollution
comes from residential and commercial use, primarily heating, and another 11
percent of our pollution comes from industrial facilities.
While
global warming pollution from heating has stayed relatively constant and industrial
facilities has declined in recent years, the two largest sources of pollution,
transportation and electricity, are projected to grow significantly. In fact, without decisive action, statewide global
warming pollution is projected to grow by 10 percent in the next two
decades.
Cutting
our state’s global warming pollution to achieve science-based reductions will
take a comprehensive approach that addresses all sources and leaves not stone
unturned. This approach will also be
guided by the most cost effective and beneficial solutions at our state’s
disposal. While Global Warming Response
Act brings together the state’s experts
at the NJDEP, in consultation with the New Jersey Board of Public Utilities
(NJBPU), the New Jersey Department of Transportation (NJDOT), and others to
devise a plan to reach the reduction, the legislature sets the bar by requiring
a visionary and urgent pollution reduction requirement and gives state agencies
the mandate and authority to comply.
New
Jersey is ready to take this next step. Thanks to the legislature and the
current governors and those before him, we already have the fundamental building
blocks of a strong global warming prevention program. We are already on the
right track.
First,
thanks in large part to Governor Codey, we are part of the Regional Greenhouse
Gas Initiative, an agreement between 10 Northeastern states establishing a
cap-and-trade program to reduce global warming pollution from power
plants. Under this program, New Jersey will
reduce global warming pollution from power plants by 10 percent below 2009
levels by 2019, a real contribution toward the goals of the legislation before
you today.
As we move forward to tackle
global warming, we can not allow actions taken in other states to undermine and
override all our good progress. As I stated earlier in my testimony, New Jersey
imports 20-30 percent of our electricity from other states, and much of that
electricity is from dirty, coal-fired power plants in Pennsylvania. We are also threatened by proposals for new
dirty plant construction and mega-transmission lines. One major threat is across the Delaware River
in Pennsylvania, where TXU Energy has proposed building two to three
conventional coal-fired power plants. If these plants are
constructed, they will wipe out all of the global warming emissions reductions
in the Regional Greenhouse Gas Initiative. Another threat is American Electric
Power’s proposed $3 billion 765-kv transmission line that would pump in dirty
energy from West Virginia to New Jersey.
We
must tackle this problem head-on to achieve our goals. We can do this by requiring a global warming
emissions portfolio standard, legislation capping global warming pollution from
all electricity imported to the state.
Our
second building block is energy efficiency.
Efficiency programs include energy audits, incentives to purchase energy
efficient appliances and financial assistance to retrofit power plants to be
more efficient. Energy efficiency
reduces electricity use, which in turn reduces global warming pollution, and
saves ratepayers money. Energy
efficiency is actually a boon to consumers in two ways. First, it reduces individual ratepayers’
utility bills because they are using less electricity. Second, it reduces the state’s total demand
for electricity, which reduces the price of electricity overall. In fact, according to the New Jersey Board of
Public Utilities (BPU), recently energy efficiency improvements were
accomplished for roughly one-fifth the cost of electricity purchases.
The
state’s current energy efficiency programs have been very successful; in 2005,
the programs saved enough electricity to provide the annual electricity
requirements of approximately 50,000 New Jersey homes. Since the programs started in 2001, they have
reduced total electricity demand by 450 megawatts, (MW) the equivalent of a mid-sized power
plant.
Nonetheless,
our current efficiency programs are only a glimpse of what is possible – we
have the ability to reduce our energy demand by as much as 10 percent below
current levels by 2020.
The
third building block is one of the best Clean Energy Standards in the nation. This standard requires that 20 percent of the
electricity used in New Jersey comes from clean, renewable sources like wind
and solar, and has created a burgeoning solar industry. 5 years ago, there were 6 solar installations
in the state – now there are over 1,800.
New Jersey is also home to the first utility scale coastal wind farm in
Atlantic County, generating enough electricity to power 2,500 homes.
In
the next 20 years, we can meet, beat and further expand our use of clean energy
in New Jersey. New Jersey’s offshore
wind potential is immense – a recent study for the BPU found that wind power
developed off New Jersey’s shore could potentially exceed the electricity
generation of all the current fossil and nuclear power plants in the state. Even greater potential exists in deeper
waters and far offshore areas that have consistent, strong winds. New Jersey also has the potential to be the
Saudi Arabia of solar energy – New Jersey boasts 100 sunny days a year and
millions of rooftops.
We
can achieve a clean energy future with the right policies in place. Just a few ways we can do that are to renew
and double the funding for our clean energy and energy efficiency programs, require
developers to provide solar energy installation as an option for all new
homeowners, pass statewide minimum energy efficiency standards for buildings
and appliances and construct the New Jersey Blue Ribbon Panel-recommended large-scale
offshore wind pilot project.
Our
fourth and final building block is the Clean Cars Program. The program, passed by the legislature in
2004, requires an increasing percentage of zero-emissions and low-emissions
vehicles to be sold in New Jersey. Adopted
in 13 states across the country, the Clean Cars Program is a great head start
to reduce global warming pollution from cars and trucks.
Using
the same type of multi-tiered approach we have used to cut pollution from
electricity, we can build on the Clean Cars Program to promote fuel efficiency
even more. While we wait on Congress to increase fuel economy standards, there is a
lot more we can do in the state to promote fuel efficiency. One way to do that
is to establish a statewide cost-neutral “feebate” program to help drive the rapidly
growing market for fuel efficient cars. (There
are already 13 hybrid gas-electric vehicles on the market, including 5 SUVs and
one pick up truck. Another 9 hybrids are
expected to come on the market within the next 2 years and another 16 models
are in the works.) This “feebate” program
would charge disincentives, or fees, to purchasers of the worst gas guzzlers
and use the money generated from those fees to provide incentives, or rebates,
to purchasers of the most fuel efficient vehicles. Another option for New Jersey is to ensure
existing car-owners have the option of purchasing low rolling resistance tires
that improve fuel efficiency.
We
can also take big steps to ensure we stabilize the amount of driving in our
state. After all, nearly 75 percent of
New Jerseyans drive to work alone. We can
tackle this by providing incentives for ride reduction programs such as
carpooling, shuttle service to transit stations and telecommuting and offering
pay-as-you-drive auto insurance. We can
also change development patterns to focus on transit villages and ensure mass
transit is affordable and accessible.
The
solutions I have just described are only the tip of the iceberg for what is possible. We have the ability to dramatically cut our
emissions and grow our economy at the same time through clean energy technologies. A recent study conducted by the University of
California at Berkeley found that cutting California’s emissions to below 1990
levels by 2020 could boost the annual Gross State Product by $60 billion and
create 17,000 new jobs by 2020. The study
found that the gains could be even larger -- $74 billion in annual GSP and
89,000 new jobs -- if climate policies are designed to create direct incentives
for California companies to invest in new technology.
And
if we don’t take action, the economic consequences will be devastating. A lauded study by British economist Sir
Richard Stern suggested that global warming could shrink the global economy by
20 percent, but taking action now would cost just 1 percent of global gross
domestic product.
And
in New Jersey, investments in clean energy and energy efficiency are essential
to spurring economic growth. A Rutgers
University found that the state Clean Energy Standard would add approximately
11,700 jobs and related economic benefits to the state economy, with even
greater benefits if the state becomes a manufacturing leader for solar and wind. Governor Corzine understands the benefits –
in his economic growth plan, clean energy is one of six industries to be
supported by the Edison Innovation Fund.
Venture
capitalists are chomping at the bit for these solutions because they understand
that a high price for carbon is coming and they need to stay ahead of the
curve. They understand that energy
efficiency technologies save consumers money.
Spending one cent on energy efficiency is the same as spending five
cents to purchase the amount of energy saved.
Investors
also understand that the price of clean energy is rapidly declining. According to the National Renewable Energy
Laboratory the price of electricity from deep water offshore wind could be less
than 7 cents a kWh by 2009 and 5 cents kWh by 2015. For shallow water wind energy, price of
electricity be less than 4 cents a kWh by 2015. In
comparison, electricity for New Jersey consumers from this year’s auction
resulted in prices of 10 cents per kWh. So
in less that ten years, clean electricity is projected to be half the price of
dirty, old, carbon-intensive fossil fuel plants.
Right
now, the investment community is ramping up their clean energy portfolios with
the knowledge that the high price of carbon is just around the corner. They see the urgent need for a new kind of
economy, a clean energy economy. And
right now New Jersey is faced with the same opportunity. We can be laggards and continue our reliance
on the dirty, polluting, fossil-fuel based industry of the past, or we can be
leaders and develop a niche market for our state producing the clean energy
technologies of the future. Our
leadership will ensure New Jersey is ahead of the curve and receives tremendous
economic gain and business opportunities as a result.
By
taking action now, we can set New Jersey apart by seizing and developing the
global warming solutions that other states, the nation and the world are seeking. By taking action now, we can be
visionaries. By taking action now, we
can set a vital precedent for national legislation. By taking action now, we can show that
solving global warming is more than possible, and we can grow our economy at
the same time.
To make all of
this a reality – to dramatically cut our global warming pollution, to vastly
expand our use of clean energy and energy efficiency, to grow our economy – we
need leadership from the state legislature.
The best kind of
leadership is to pass the Global Warming Response Act. I urge you to co-sponsor this critical and
ground-breaking legislation, vote it through this committee and do everything
you can to ensure the bill’s swift passage in the state legislature.
We can solve
global warming, and New Jersey can lead the way.
