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REMARKS BY GOVERNOR TED KULONGOSKI
Oregon Business Association and Northwest Environmental
Business Council Climate Change Conference
Tuesday, June 17, 2008
Thank you, Bob, for your introduction – and for to the Oregon Business Association and the Northwest Environmental Business Council for giving me this opportunity to talk about an issue that I believe will make – or break – our success in the global economy.
Two decades ago – maybe even less – climate change was a subject for science conferences. Not business conferences.
Energy was inexpensive. The signs of climate change: Increased temperatures, decreased water supplies, and changing weather patterns weren’t so apparent. And maybe most important, the public was not yet demanding action.
That’s all changed. And that’s why I have made renewable energy, energy security, protection of water, and reducing green house gasses major priorities since my first year in office.
From more fuel efficient state vehicles – to one of the toughest renewable energy portfolio standards in the country – my administration has been committed to making Oregon the national leader in green energy, green technology, and building a green future.
I want Oregon to lead the nation in cutting greenhouse gases and developing clean sources of energy – not only because it is the right thing to do, . . .
. . . but also because these issues define who we are as Oregonians.
What the Beach Bill and Bottle Bill were to Oregon in the 1970s – renewable energy will be to Oregon this decade and for decades to come.
But here’s the important point – and why I’m speaking with you today: I cannot do this alone. Government cannot do this alone. We need private sector partners. That means we need you – and the entire Oregon business community.
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You’ve heard me say this before – and I will continue to say it: Climate change is the most important environmental and economic issue of our time.
That message is starting to catch on. But what is too often missed is that economic health and environmental heath are not mutually exclusive. Just the opposite.
Finding solutions to climate change can actually be a great economic driver for the state. As Oregonians have learned many times, creating a healthy environment creates healthy business opportunities.
As I’ve already suggested, the debate about whether global warming is real – and whether human activity plays a part in that warming – is over, . . .
. . . and the consequences can be seen across this state.
Rising sea levels endanger our coastal communities and transportation system. Less snowpack – or a snowpack that melts too quickly – means less water for fish, agriculture, and our economy and growing communities. Drier weather can bring about catastrophic forest fires. And, yes, warmer temperatures even threaten Oregon’s signature pinot wine grapes with extinction.
The list goes on. And to make matters worse: The newest science shows that the threat of global warming is more imminent and dire than scientists projected just a few years ago.
I said that a healthy environment can create healthy business opportunities. Unfortunately, the reverse is also true: Harm to our environment in turn harms our economy.
The Stern Report issued in 2006 is the most comprehensive analysis of the potential economic impacts of climate change, and was prepared by Sir Nicholas Stern, the former World Bank Chief Economist.
It cautions that while taking aggressive action now to reduce global greenhouse gas emissions will cost global GDP 1-percent a year – which is significant, . . .
. . . further delay in taking action will cost global GDP up to 20 percent in the future!
If these examples are not enough to motivate action, then paying $4.25 – or more – for a gallon of gas certainly should.
The same is true for the escalating cost to heat our homes and power our businesses. Both should – and I think will – motivate Oregonians to support conservation, energy efficiency, and aggressive development of alternative energy.
While it’s hard to find good news in our growing dependence on fossil fuels – and the rising cost of those fuels – there is a silver lining. Oregon is ahead of the curve in developing policies and technologies to aggressively reduce greenhouse gas emissions.
Oregon is now a national leader in finding innovative ways to reduce carbon emissions and mitigate the impacts of global warming.
Our path to national leadership began in 2003 when I entered the first regional partnership in the West with the governors of Washington and California to combat global warming. This became known as the Western Climate Initiative.
I created the state’s first global warming advisory group to study the impacts of global warming on Oregon, and develop a statewide strategy to reverse the effects of carbon emissions on our environment and economy.
These recommendations led to the most aggressive greenhouse gas reduction goals in the nation – which the Legislature codified in 2007 – and to adopting the California clean cars standards.
These standards – when fully implemented – will reduce CO2 emissions by roughly 6-million metric tons.
In 2007, in partnership with the Legislature, we passed landmark energy legislation – including renewable electricity and renewable fuels standards – that will not only keep Oregon in the forefront of the fight against climate change, , . . .
. . . they will move us significantly in the direction of a clean energy future.
Already we’re seeing that last session’s new energy policies are delivering the economic growth we predicted.
That growth is being driven in part by solar energy companies – including Solar World, Solaicx, and PV Powered.
And just yesterday, Intel announced a new $50 million investment in a start-up venture – Spectra Watt, Inc. – to manufacture and supply photovoltaic cells to solar module makers.
These companies see Oregon as the right place, with the right ethic, to manufacture their product.
As a result, Oregon is on its way to becoming the North American leader in solar energy manufacturing. And many more green energy companies will soon follow – bringing with them thousands of sustainable living wage jobs.
But the 2007 session was only the beginning. We have a lot more work ahead of us.
That’s why my 2009 agenda for renewable energy is as ambitious – if not more so – than what we accomplished last year.
We must continue to develop alternative fuels and come up with new options for renewable energy projects. That’s exactly what my 2009 climate package will do.
At the same time, I intend to integrate my agenda for climate change with transportation proposals that I outlined in a speech to the Oregon Environmental Council in the spring.
These transportation proposals are a critical piece of the comprehensive approach to climate change we need for success.
Having said that, the single most effective thing we can do to reach our goal of reducing emissions to 10-percent below 1990 levels by 2020, and 75-percent below 1990 levels by 2050 – is energy efficiency and conservation.
And that’s what I want to talk to you about today.
We must make energy efficiency and conservation the centerpiece of our climate change agenda in 2009. That is the only way we will succeed in reversing the damage done by global warming.
And if we are smart and strategic about our policies, we will not only deliver cleaner air and lessen our dependence on fossil fuels, . . .
. . . we will accelerate the emerging clean technology sector in Oregon – and spur more innovation and manufacturing of clean technology products.
This year the McKinsey Report assessed the economic costs and opportunities of reducing greenhouse gas emissions.
It found that there are billions of dollars in cost-saving measures that still have not been taken in the United States – most tied to improving energy efficiency.
That means Oregon is well positioned to achieve my vision of continued national leadership in energy efficiency – and in green building programs and technologies.
The fact is: These sectors have the potential to grow dramatically in the coming years – but only if we’re strategic about our investments and policy development, . . .
. . . and only if we follow the recommendation of the McKinsey Report to act now!
Many of you are already aware of the work of the Western Climate Initiative to develop a regional cap and trade system among West Coast states and Canadian Provinces.
If successful, this program will create the largest market in North America for carbon and greenhouse gas reductions – and be a boon for Oregon’s economy and environment.
If we do this right – in other words, if we design a system tailored to Oregon businesses – a cap and trade system will do all of the following:
Produce the lion’s share of the energy efficiency we’re trying to achieve.
Allow us to achieve the majority of the greenhouse gas emission reductions needed for our 2020 and 2050 goals.
Drive energy efficiency into our energy sector.
Help our clean tech economy, drive innovation in greenhouse gas reduction technology, strengthen Oregon’s economy, and improve our quality of life.
And most important – new green technologies will mean new living wage jobs for the people of Oregon.
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Any system we implement can’t be cap or trade. It must be cap and trade. That is the only way we will meet our greenhouse gas reduction goals while also creating a new economic market for Oregon.
But cap and trade is not a silver bullet. A winning strategy for reducing both consumption and emissions requires much more.
That’s why I appointed an Energy Efficiency Workgroup and charged them with developing 3 to 6 policy options for the next session that will complement a cap and trade program.
For example, our homes and businesses are major emitters of greenhouse gases because they are major consumers of energy.
So it is important that we find new ways to reduce emissions in this sector – both for new construction, and even more important – existing buildings.
I have some of the brightest minds in the energy efficiency business on my workgroup exploring what we can do in these areas to drive down energy use and increase energy efficiency across sectors and regions.
Several areas I’m particularly interested in seeing developed if they can work for our state include:
A High Performance Home and Building Program. This program would put in statute a goal of net-zero energy homes by 2030.
I say this knowing full well that the housing market is hurting in Oregon – although less so than in many other states. And we need to take the immediate needs of the housing industry into account.
But battling climate change has never been about finding a quick fix. It is about thinking strategically and for the long term.
A goal of net zero energy homes by 2030, would show that we have a long term plan for growing the green building industry – and for establishing Oregon as a center for green construction.
Energy Transparency. The time has come to start requiring energy certificates for all new homes – and for existing homes when they are sold.
In other words – transparency.
I believe that with escalating energy costs, new homeowners and tenants – both commercial and residential – are entitled to know the energy performance of the home or building they’re investing in.
Automobile buyers have had a similar right for years.
No one today would purchase a car without knowing how many miles per gallon it can travel. The same should be true for how much energy buildings consume.
Public Awareness. Information is power. Oregonians want to change the way they use energy – and information is the ticket to that change. We have the highest per-capita use of hybrid vehicles – and this was before the recent run-up in gas prices.
Given our commitment as Oregonians to a healthy planet, we can capture significant energy savings just by better educating our fellow citizens about the benefits of energy efficiency.
I’m talking about benefits to their family budget and to the environment – as well as all of the incentives that exist to help take advantage of these benefits.
The state can partner with allies such as the Energy trust of Oregon and the Northwest Energy Efficiency Alliance to get the word out to citizens and businesses.
These campaigns work. In New York State, they saved close to 100 megawatts of electricity as a direct result of an outreach campaign. We can do the same in Oregon.
This year, we reduced our energy use by 200 megawatts – the equivalent of enough power to serve 155,000 Northwest homes –through existing efficiency and conservation programs….and that’s without a targeted information campaign.
With strategic outreach and education, and a commitment to improve our existing programs, I believe we can double that reduction over time.
In closing, I believe that global warming is an issue that will define leaders and leadership throughout this century.
The day will come when we look back and ask: Did we take this issue seriously and begin to tackle it – or did we bury our heads in the sand and hope the issue goes away?
Now is the time to create the tools we need to solve the global warming crisis – and in doing so, strengthen our economy and preserve our quality of life for our children and grandchildren.
That’s a big mountain to climb. But as President Kennedy once said, “We don’t do things because they are easy. We do them because they are hard.”
I am confident that with the support of OBA and many other stakeholders, we can climb that mountain during the 2009 session and change the way we produce and use energy. I hope you will join me in this very important effort. Thank you.
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