By: Glenn McCullough, Jr.

President Obama’s much touted recent shift to the political center does not appear to apply to his energy policy. However, by reconsidering his position and action, the President can lead America to a more secure, clean, affordable energy supply. Simply put: President Obama still has time to do an energy policy course correction that will put the nation on the right path to energy security, a cleaner environment and growing economy.

The Current Situation
For the past two years, the Administration’s policy has relied on public spending (referred to as “investment” in Washington), regulation, the expansion of renewable energy–mainly solar and wind–along with an aggressive push to reduce carbon dioxide emissions. Despite the defeat of “cap and trade” legislation by the U.S. Senate, the Administration seems intent on achieving by regulation what it has been unable to achieve by legislation.

On Decemeber 23, the U.S. Environmental Protection Agency announced a rule to regulate carbon dioxide emissions which could impose hundreds of billions of dollars of costs on utilities, refineries, factories and ultimately consumers. On January 13, the EPA issued a ban on mountain-top removal for coal mining in West Virgina which could lead to a significant increase in the cost of coal which is used to generate nearly half of America’s electricity supplied.

The immediate impact of both EPA rules are lawsuits and uncertainty regarding the scope and definition of future regulation. This uncertainty stifles capital investment, increases the cost of electricity and impedes a fragile economy at a time when we need capital investment, affordable energy and economic growth more than ever before.

What should the President do?

The Triple Play Solution

1. Change the Regulatory Approach

In his January 18 Op-Ed in The Wall Street Journal calling for less regulation on business, President Obama explained a process of dialog between the EPA, U.S. Department of Transportation and automakers on fuel economy and greenhouse gas emission standards for automobiles. While there are many more electric utilities in the country than automakers, the process of respectful discussion between regulators and electricity producers should be given a chance.

Each side has compelling reasons to negotiate in good faith. Utilities could gain regulatory certainty needed to make capital investment decisions for generating cleaner, affordable electricity. History proves that utilities have been able to dramatically reduce nitrogen oxide and sulfur dioxide emissions. Regulators could gain the assurance that carbon dioxide emissions will be reduced in a manner balanced with Americans having cleaner, affordable energy, job growth and avoiding lawsuits.

In fact, there is recent precedence for the Administration showing it will work with political adversaries for the sake of sound energy policy. The Administration deserves credit for successfully working with U.S. energy companies to reach clean energy deals with China in conjunction with President Hu’s recent visit.

2. A Clean Energy Portfolio vs. Renewable Energy Only

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The Administration should embrace a portfolio of clean energy sources instead of strictly renewables–primarily wind and solar, as it largely has over the past two years. In fact, the President gave indications in the state-of-the-union speech he would go down this road.

A 2007 Electric Power Research Institute study found that the best way to significantly reduce carbon dioxide emissions while ensuring affordable electricity for economic growth was to implement a seven step plan. Energy efficiency, renewable energy sources, more nuclear energy, advanced coal technologies, carbon sequestration, plug-in hybrid electric vehicles and use of smaller decentralized generation facilities are the path to lower carbon dioxide emissions, and clean affordable electricity to power economic growth. All of these technologies are available today.

Electric cars are in high demand evidenced by 50,000 people on the waiting list for a Nissan Leaf. Both FM and Chrysler each recently hired 1,000 engineers to expand their lines of electric cars. EPRI determined that so long as the cost of gasoline at the pump is above 75 cents a gallon, electric cars will be more cost efficient to drive. Plus electric cars are cleaner for the environment and reduce our dependence on foreign oil.

3. Now is the Time for a National Energy Policy

For nearly 40 years and eight Presidents, America has talked about becoming energy independent. And it has been just that, talk. We have become more dependent on foreign oil, exporting hundreds of billions of dollars annually, while losing jobs.

With a $14 trillion annual economy, the U.S. will never be energy independent but we can and should become more energy secure with clean, sustainable electricity generated by Americans.

Leaders in France and China have taken action to expand domestic energy production. Today France generates 80 percent of its electricity from nuclear energy while China is building nuclear, coal and renewable energy plants to power the world’s fastest growing economy. China and Japan are aggressively pursuing electric car production.

America has come to the crossroads on energy policy. In the state-of-the-union speech President Obama set an ambition yet achievable goal of obtaining 80 percent of America’s electricity coming from clean energy resources by 2035. The President cited wind, solar, clean coal, and natural gas.

Large numbers of Republicans and Democrats support energy efficiency, electric cars, nuclear energy, renewable energy, advanced coal technologies, carbon sequestration, and smaller distributed generation facilities.

If the Administration continues down the path of punitive regulation, the country will be harmed economically with little environmental benefit. If leaders will embrace a visionary, inclusive, expansive, clean energy policy, the benefits will be enormous for generations to come.

Now is the time for President Obama to reach out to Speaker Boehner, Senatore Reid, Senator McConnell and other key Congressional leaders in a Camp David-like Energy Summit toward to goal of a secure, clean, affordable energy plan to power more jobs for Americans.

By: Glenn McCullough, Jr.

If there is one area where President Barack Obama and the new Congress should be able to readily and substantively find common ground in 2011, it is energy policy.

As a lifelong Republican appointed by President Bill Clinton to the board of the Tennessee Valley Authority and then by President George W. Bush to chair it, I commend Obama for his post-election press conference comments on energy.

The president said: “I don’t think there’s anybody in America who thinks that we’ve got an energy policy that works the way it needs to; that thinks that we shouldn’t be working on energy independence.” He’s right.

If there is one area where President Barack Obama and the new Congress should be able to readily and substantively find common ground in 2011, it is energy policy.

As a lifelong Republican appointed by President Bill Clinton to the board of the Tennessee Valley Authority and then by President George W. Bush to chair it, I commend Obama for his post-election press conference comments on energy.

The president said: “I don’t think there’s anybody in America who thinks that we’ve got an energy policy that works the way it needs to; that thinks that we shouldn’t be working on energy independence.” He’s right.

Obama then listed several policies he supports with senators and congressmen across party, ideological and regional lines. These include: expansion of nuclear power, expanded use of natural gas reserves and the transition to electric cars powered with U.S.-made electricity instead of expensive, high-polluting imported oil.

America’s power generation capacity is critically important for our economic security and growth.
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This is certainly the case in the Greater Memphis region, where the economy is anchored by energy-intensive industries such as manufacturing, transportation, distribution, supply-chain management and medical services. These industries and others need affordable and reliable electricity to maintain jobs and increase hiring. They also need the assurances of having a growing and abundant supply of power, as the consequences of lost power (i.e., a single blackout or even rolling blackouts) can be catastrophic.

America needs to continually modernize and expand its power generating capacity, in particular base load power (coal, nuclear, hydro and natural gas) which can produce power consistently and reliably 24/7.

The president and congressional leaders should meet soon to hammer out specifics of an energy law which can be enacted in early 2011 and provide significant economic benefits later in the year. Here are three suggestions for the measure.

Provide federal loan guarantees, as proposed by Sens. Jim Webb, D-Va., and Lamar Alexander, R-Tenn., to build 100 advanced nuclear reactors in the United States over the next 20 years. The nuclear renaissance is already under way with the construction of the first nuclear plant in America in more than 30 years, and 22 proposals for reactors are under review by the U.S. Nuclear Regulatory Commission. Some 72 percent of U.S. electricity that does not produce greenhouse gases comes from nuclear power, and 67 percent of Americans, including the president, support the construction of new nuclear plants.

Accelerate electric car use and production. Automobiles and trucks consume more than 65 percent of the crude oil used in the United States. Recently there have been enormous discoveries of natural gas in the U.S. which can be used, in part, to power cars. Reducing our dependence on crude oil is good for the environment. Keeping “petro dollars” in the U.S. will also be a huge and sustained stimulus for our economy.

Rely on renewable sources of electricity where it makes economic sense. Renewable energy is more expensive than coal, nuclear, hydro or natural gas, but there are regions of the country where renewables can work. Arizona has solar, there’s wind on the Great Plains and biomass resources in the Southern states. Almost all recent public policy discussion about powering America has focused on the potential role that solar and wind could play. Yet today these sources account for less than 3 percent of U.S. electricity and their growth faces community, economic and even environmental hurdles.

By accelerating the growth of nuclear power, clean coal, electric cars and renewable power, there would be short-term and sustained job creation, expanded and modernized infrastructure, and affordable and reliable electricity.

There would also be huge environmental benefits. While renewables are no longer seen as the silver bullet for energy policy and “cap and trade” carbon reduction legislation is off the political table for at least two years, it is ironic that environmental improvements could be achieved merely by implementing measures that the vast majority of Americans support.

Democrats and Republicans can find common ground on these policies, resulting in significant economic and environmental benefits. It is time for Obama, the Congress and other Americans to move together to secure our energy future.

Glenn McCullough Jr. is a partner with Ardillo, McCullough & Taggart corporate consultants and a former chairman of the Tennessee Valley Authority.

By Kim Gallaspy

Glenn McCullough, Jr. is chairman of Advance Mississippi, a coalition of community, business and academic leaders working to develop superior energy policies that will foster economic growth in Mississippi. A former mayor of Tupelo, McCullough served as chairman of the Tennessee Valley Authority Board of Directors and spent 14 years in private business as vice president of McCullough Steel Products, Inc. In this issue, Pointe Innovation spends a few minutes with Glenn McCullough, Jr.

P.I.: How did you become involved in Advance Mississippi?
Advance Mississippi was organized last summer around the belief that sound energy policy is fundamental to having the clean energy required to power economic growth. It’s a mission I believe in so I’m pleased to serve with our growing membership of leaders from business, industry, economic development, education, agriculture and individuals who are united in advocating sound energy policy for economic growth in Mississippi.

P.I.: How is Mississippi doing in balancing smart energy policy and the desire for a clean environment?
Mississippi is making exciting progress implementing sound energy policy for economic growth and a cleaner environment. The Public Service Commission’s approval of a 178 megawatt uprate for Grand Gulf Nuclear Power Plant and the Gulf Liquefied Natural Gas facility in Jackson County are two examples of
sound energy policy that will power economic growth with cleaner air and water.

P.I.: Can our country have both clean energy and a strong economy?
Through enacting sound energy policy, Mississippi and the U.S. can have the energy required to power economic growth and cleaner air and water. Building new nuclear plants, adopting new technologies such as Integrated Gasification of Lignite coal with carbon capture for enhanced oil recovery as well as biomass generation are all advantages Mississippi can utilize in the future. Electric vehicles and SmartGrids are technologies that will play important roles in the future of energy efficiency and a cleaner environment.

P.I.: What is ahead for Advance Mississippi?
Advance Mississippi’s work has just begun. Our membership is growing. Activities like hosting Dr. Patrick Moore’s recent visit to Jackson are educational and interesting. Dr. Moore was a co-founder of Greenpeace and is now a leading advocate of safe, clean nuclear energy. Advance Mississippi will continue to work with the Mississippi Technology Alliance and others to promote sound energy policy.

P.I.: What is the best advice you ever received and who gave it to you?
“Do right, do your best, treat other people as you’d like to be treated,” wise advice given by Lou Holtz.

P.I.: What is the last book you read?
I just finished reading, Stranger in the Outfield, a book I recommend written by Norris V. “Piggie” Caldwell, a talented Mississippi author, friend and champion little league coach.