The final year of the resolutely anti-environmental Bush administration was a mixed bag. At the federal level, it was largely a disappointment. Congress did, after much debate, extend tax credits to the wind and solar industries. But we are still waiting for the new vehicle fuel efficiency standards mandated by the December 2007 energy bill. Congress entertained a number of climate bills but passed none. And federal lawmakers punted on a renewable energy standard that would have required utilities to ramp up their reliance on such clean energy sources as solar and wind.

At the state level, conversely, there was plenty to cheer about. States in the Northeast, Midwest and Northwest, for example, banded together to establish regional cap-and-trade systems to curb global warming pollution. And California continued to set an example for the rest of the nation.

With a new, forward-looking president and strong congressional leadership, we expect 2009 to be the year that Congress emulates the states by passing measures that will cut global warming emissions and require utilities to rely more on renewable resources. We expect the Obama administration to follow through with the new vehicle fuel economy standards. And the biggest news at the beginning of the year likely will be the Obama administration’s economic stimulus package, which has the potential to kickstart a green energy revolution in this country.

Bush administration sits on new fuel economy standards: Last year started out with much promise. In December 2007, Congress passed an energy bill that establishes new efficiency requirements for household appliances and government buildings, boosts the annual production of renewable fuels, and sets higher fuel economy standards for cars and light trucks for the first time in 30 years. The last provision requires cars, trucks and sport utility vehicles to average at least 35 miles per gallon (mpg) by 2020. According to a Union of Concerned Scientists (UCS) analysis, the new standard will save 1.1 million barrels of oil per day in 2020, about half of what the United States currently imports from the Persian Gulf. The new standard also will prevent more than 190 million metric tons of global warming emissions in 2020, the equivalent of taking 28 million cars and trucks off the road.

With oil prices spiking at their highest level in history last summer, the new fuel economy standard came at the right time. But in the ensuing months, the Bush administration did nothing to implement it. And just this week the administration announced it will not finalize the fuel economy regulations before leaving office.

Renewables prospects look bright: Regardless, we did see progress in 2008, especially when it comes to promoting renewable energy sources. We saw another jump in the number of states requiring utilities to increase their reliance on renewables. Three heartland states -- Michigan, Missouri and Ohio -- joined 25 other states and the District of Columbia by enacting renewable electricity standards. Three other states -- Illinois, Maryland and Massachusetts -- and the nation’s capital strengthened their standards last year.  

At the federal level, as part of the October economic bailout bill, Congress extended a renewable energy production tax credit for another year for wind and an investment tax credit for eight years for solar.

Thanks largely to these state standards and federal tax credits, the wind industry continued to blossom. In fact, last year the United States became the world’s largest wind power producer, surpassing Germany. According to the American Wind Energy Association, more wind energy capacity was scheduled to be installed in the United States in 2007 and 2008 than in the entire previous 20 years.

States take the lead on climate: States continued to demonstrate their leadership in cutting global warming emissions in 2008. Ten northeastern states launched the Regional Greenhouse Gas Initiative program to reduce global warming pollution by 10 percent within 10 years, and raised nearly $40 million for energy efficiency and renewable energy programs in an initial pollution credit auction. Seven Western states, working with two Canadian provinces, formed the Western Climate Initiative, while six Midwestern states formed the Midwestern Regional Greenhouse Gas Reduction Accord. And California began implementing its global warming law, the strongest in the nation.

What’s in store for 2009: It is clear from a number of speeches and statements that President-elect Obama is eager to steer the country in the right direction. We expect his administration to right much of the previous administration’s wrongs, including its refusal to grant a waiver allowing states to implement California’s greenhouse gas tailpipe standards. We also expect the Obama administration to set strong fuel economy standards that make 35 mpg the floor, not the ceiling the Bush administration favored.

But first, Obama’s economic stimulus bill, which Congress is expected to take up this month, has the potential to transform our national energy system and generate thousands of green collar jobs in the process.

President-elect Obama also wants Congress to pass a federal renewable electricity standard requiring 25 percent of the country’s electricity to be generated by clean energy sources by 2025. According to a UCS analysis, an earlier proposed standard requiring 20 percent of America’s energy to come from renewable resources by 2020 would create 185,000 new jobs from renewable energy development, save consumers $10.5 billion in lower electricity and natural gas bills, and reduce global warming pollution equal to taking 36.4 million cars off the road. The U.S. Energy Information Administration has found that renewable electricity standards as high as 20 percent or 25 percent could be achieved at no net cost to consumers, or even with small savings.

Obama has asked Congress to enact a cap-and-trade program that would charge polluters for their global warming pollution and ensure U.S. emissions are cut on the order of 80 percent by 2050. This is consistent with what scientists say is necessary to prevent the worst consequences of climate change.

State legislatures have been outpacing Congress in recent years, but in 2009 we expect Congress to take bold action. The new chairman of the House Energy and Commerce Committee, Henry Waxman, has been a champion of strong climate legislation, as has Barbara Boxer, the chair of the Senate Environment and Public Works Committee.

It is imperative that climate legislation take center stage this year. This legislation must be flexible enough to allow us to respond to new scientific information on climate change. And the revenue raised by selling pollution credits from a cap-and-trade system must be invested in the new clean energy economy to reduce our dependence on oil and put Americans back to work. The science tells us the window to address global warming is closing; there is no time to waste. Fortunately, in 2009 we have the audacity to hope that indeed we can.

Kevin Knobloch
President, Union of Concerned Scientists

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For The Wilderness Society, the key event of 2008 was without a doubt the unprecedented pressure to open up our remaining protected lands and waters to oil and gas development. Spurred by a multimillion-dollar industry campaign to “drill here, drill now,” Congress yielded to intense pressure and ended the moratorium on offshore oil and gas leasing. The Interior Department opened huge new areas of Western public lands to oil and gas exploration and drilling, proceeded with the sale of millions of acres of oil and gas leases in the fragile marine environment of the Arctic Ocean, and recklessly approved rules for commercial oil shale development on almost two million acres of public lands in Colorado, Utah and Wyoming. The effects of these actions will remain long after president-elect Obama is sworn in.

One bright spot of 2008 is that, despite all the calls to drill, Congress held the line and refused to open the coastal plain of the Arctic National Wildlife Refuge in Alaska to drilling. We hope that the new Administration and Congress will act quickly and unequivocally to give the Refuge—one of America’s last true wilderness areas—the strongest possible protection by designating it as Wilderness. As I write this, Arctic Refuge wilderness bills already have been introduced in both the House and Senate. This is an encouraging sign.

Another major event of 2008 was the approval by House and Senate committees of more than a dozen bills designating close to two million acres of new wilderness areas in eight states. Packaged together with other conservation measures as the Omnibus Public Lands Act and reintroduced in the Senate this week, these bills would create the greatest expansion of the National Wilderness Preservation System in 15 years. Passage of this landmark piece of legislation by the 111th Congress is one of our great hopes for the new year—a gift that will benefit generations of Americans.

And finally, as several others have mentioned, one of the watershed events of 2008 was the first-ever serious consideration by Congress of climate change legislation. Passing a strong climate bill must be a top priority for the new Congress and administration. This is not just an environmental issue, but also an economic and national security priority. I’m extremely encouraged by the team that the President-elect has chosen to lead on climate policy, and by the commitment of congressional leaders to address this critical need.

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As someone who has been fighting to sound the alarm about the urgent need to solve global warming, I witnessed two key milestones in 2008 that showed me America is finally poised to address the climate crisis.

1. The Senate Debated Serious Climate Legislation

The first milestone came in June when the Climate Security Act was introduced and for the first time ever global warming legislation was the business of the Senate for an entire week.

Fifty-four senators stood up for putting the United States on the right path to reduce our global warming pollution. Some of these senators were converts, having previously opposed global warming legislation. Some were new senators who voted for the first time on global warming legislation. In the end though, supporters could not cross the threshold of the meet the 60 votes needed to overcome the obstructionist tactics of bill opponents and the bill died.

But the Climate Security Act still played a critical role in moving America closer to tackling global warming. Senator Byron Dorgan of North Dakota, a key swing vote, called the Climate Security Act "the dress rehearsal" for what will likely be the final vote in 2009. The bill forced senators to identify where they stand on climate legislation. Now, finally, we can honestly say that a majority of the Senate is engaged in a serious discussion about how to tackle global warming.

2. The Incoming President Calls for Immediate Action on Climate

The second came on November 18th when President-elect Obama said the words that the world has waited eight years to hear from the leader of the United States: "Few challenges facing America--and the world--are more urgent than combating climate change...Now is the time to confront this challenge once and for all." U.S. leadership on the climate crisis has arrived.

Some pundits were surprised that Obama chose global warming as the subject of his second major policy announcement after the election. After all, the cynical rule of thumb is that environmental promises dissolve the minute bad financial news comes along.

But Obama recognizes something those cynics may not: that the path to economic stability leads right through global warming solutions. Clean energy is the destination, not a detour on America's road to prosperity.

A milestone indeed.

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No list of major energy and environmental events in 2008 could be complete without the Senate’s historic vote on the Climate Security Act. In all, 54 senators spoke up for the need to debate solutions to global warming, far surpassing the 38 votes in 2005 and 43 votes in 2003 for legislation that was significantly weaker than the Climate Security Act. If not for an obstructionist filibuster, the bill would’ve had a chance to pass the Senate and head to a supportive House.

The Climate Security Act vote created the momentum we need to continue the fight in 2009, but whether that momentum builds or slows could be impacted by the economic recovery package being discussed on Capitol Hill right now. It’s a unique opportunity to repower America’s economy with new investment in clean energy. In 2006, the renewable energy and energy efficiency industries generated 8.5 million jobs and nearly $970 billion revenue in America. And talk about “shovel-ready” – according to the American Solar Energy Society, 98 percent of renewable energy and energy efficiency jobs are jobs workers already know how to do, from manufacturing to accounting.

By giving clean energy and efficiency a boost now, we can ultimately lower the cost of implementing global warming legislation passed this year. We can galvanize investment in clean energy technology by enacting a cap-and-trade plan that reduces global warming pollution and promotes clean energy technologies that will recharge our economy. It’s the best way to put onto a fast track the kinds of economic development of better energy solutions we desperately need.

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Let’s see…2008…It was the best of times, it was the worst of times….No, wait, someone already said that…But certainly the “roller coaster ride” we took with oil and gas prices, complete with the precipitous drop in both, has to be THE top energy story of 2008.  And while we can’t pin the blame for 2008’s catastrophic financial meltdown on high energy prices, they certainly put a crimp in many household and business budgets and helped wreak havoc on the bigger economic picture. 

At the same time, a silver lining was emerging by the middle of the year. The Federal Highway Administration (FHMA) reported that vehicle miles traveled (VMT) dropped by two percent in the first part of 2008 compared to 2007 – the steepest VMT decline since FHWA started keeping records in 1942.  Commuters flocked to public transit, and many systems began developing expansion plans.  Demand for hybrid and fuel-efficient vehicles surged dramatically, while sales of large SUVs and trucks dropped by nearly a third. 

But “how quickly they forget!”  Already SUV sales are outpacing sales of passenger cars, which just goes to show how crucial the federal government’s policy role is for pushing consumers towards smarter energy choices.  It’s a good thing Congress acted at the end of 2007 to put in place higher CAFE standards, even if the phase-in will take quite a few years.

On the “homefront,” the reinstatement, as part of the economic rescue package, of federal income tax credits of up to $500 for energy efficiency home improvements – a policy that the Alliance to Save Energy worked nearly all of 2008 to achieve – also stands out as a significant achievement.

As the Alliance frequently says, energy efficiency is a win-win-win – for the nation's economy, for the environment, and for our national security.  At this time of economic challenge for the incoming Obama administration, we hope to see energy efficiency emerge as a key way of creating new “green” jobs that will help bring the U.S. economy out of the doldrums, make a significant down payment on curbing climate change, and enhance our national energy security.

We have high hopes for the Obama energy-enviro team, led by the president-elect and his “spine-of-steel” commitment to enacting meaningful energy policies.  Still, with energy prices down so sharply, our New Year’s resolution is to ward off complacency on the part of the public and policymakers.  We will continue educating them about the centrality of energy efficiency in moving the nation towards a more sustainable energy future.

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Amidst the turmoil of the financial rescue legislation in October came one of the biggest and most positive stories for energy and the environment in

2008 ­ the 8-year extension and expansion of the solar investment tax credits (ITC). The story is significant because after 17 votes in both the House and the Senate, Congress finally listened to the 94% of Americans that favor the use and development of solar energy.  The ITC will be the solar industry's major catalyst to help put America back to work and secure our energy future.

The ITC extension will have significant impact on what is probably the biggest overall story of 2008 ­the economy. According to a new economic study by Navigant Consulting, Inc., the 8-year extension of the ITC will create 440,000 permanent jobs and unleash $325 billion in private investment in the solar industry.

But the story of the ITC does not end in 2008. The Obama Administration and the 111th Congress are facing major policy challenges for the economy, energy and the environment. Solar energy can play a substantial role in addressing those challenges. But, the growth of solar energy will not happen quickly enough without the right federal policies to stimulate the market and remove fundamental barriers that prevent solar from competing in the electricity marketplace.

In fact, the economic downturn has already reduced the effectiveness of the ITC from what Congress intended when it was passed in October. To address this challenge and continue to stimulate growth in the solar industry, the ITC should be improved in two ways. First, Congress should make the solar tax credits refundable (including accelerated depreciation) for 8 years. Also, Congress should allow state and local governments to provide financing without reducing ITC eligibility.

The ITC will not only serve as a major economic engine for our country, it will play a big part in our journey toward energy independence and ensure that solar energy will play a significant role in America's energy future.

Meanwhile, it will help to provide clean, affordable, carbon-free energy to millions of American families, businesses and communities.

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One of the most important events in 2008 was Congress's decision to allow the expiration of its moratoria on offshore oil and natural gas production. It marked the moment when this nation departed from the failed energy policies of the past 20 years and took an essential first step toward a balanced energy policy, an improved economy, and the creation of thousands of well-paying jobs at a time when they are sorely needed.

Congress listened when poll after poll indicated that Americans overwhelmingly support increased access to domestic oil and natural gas resources. But its work is far from finished. This nation cannot strengthen the economy if it weakens energy security. Congress and the new administration must resist any attempt to re-impose the ban or set arbitrary limits on energy development. They must open areas in the eastern Gulf of Mexico and portions of the central Gulf, where billions of barrels of oil and trillions of feet of natural gas remain off-limits. Congress also must take steps to develop these abundant energy resources expeditiously and reject calls for harmful, counterproductive taxes that could deter much-needed investment.

Now more than ever--in this time of economic crisis--our approach on energy must be based on reality. Every respected energy study on future demand comes to the same conclusion about the next several decades: we need all the energy we can produce in an environmentally responsible manner. The oil and natural gas industry has the technology, the know-how, and the track record that proves it can safely bring our domestic energy resources to the marketplace where they can benefit all Americans and give a much-needed boost to our ailing economy.

Opening our offshore areas to oil and natural gas production is a win-win proposition for America: we can have the energy we need in the decades ahead, and we can achieve the economic prosperity we all seek.

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The historic election of Barack Obama was undoubtedly the most sweeping development impacting energy and environmental policy in 2008.  President-elect Obama’s election will certainly precipitate a major shift away from the Bush administration’s war on science, wildlife and wildlands.

Just days after the election, the President-elect confirmed his commitment to aggressively pursuing legislation to dramatically reduce emissions of global warming gasses. His stance is in marked contrast to the Bush administration’s strong opposition to meaningful national action to address global warming.

In 2008, the Obama campaign also indicated its strong support for actions – including substantial dedicated funding – to safeguard wildlife and natural resources from the impacts of global warming. Global warming is already causing serious damage to ecosystems and wildlife populations. Human communities are directly threatened by this, as the basic life-sustaining services provided by wildlife and ecosystems, such as purifying air and water and pollinating crops, are compromised. In explaining his energy plan, the President-elect stated his desire to help managers protect fish and wildlife from the impacts of a warming climate, by dedicating a portion of the funds generated by auctioning carbon allowances through a cap-and-trade program. By contrast, a study completed in 2007 by the Government Accounting Office (GAO) found that federal agencies under the Bush administration were not responding effectively to climate change’s impacts on public lands and natural resources.

During the 2008 campaign, the Obama campaign also stated its strong opposition to regulations proposed, and subsequently finalized, by the Bush administration to dramatically weaken implementation of the Endangered Species Act.  These regulations would eliminate the requirement that agencies seek advice from expert biologists with federal wildlife agencies in decisions about whether dams, towers, highways and other projects will likely harm imperiled species.

Perhaps most fundamentally, President-elect Obama has expressed a strong commitment to heeding, and acting on, the calls of science. This alone will mark a dramatic departure from the Bush administration’s consistent disdain and opposition to setting policy based on sound scientific information, on energy and environmental issues, and beyond. We’re looking forward to the change.

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A few notable “firsts” highlight the major climate accomplishments of 2008 – and show us that there’s still much work to be done in the months ahead. 

For the first time, the United States elected a President who is ready to roll up his sleeves and deliver the action that is needed to protect our climate, our economy, and our national security. By supporting mid- and long-term emission reduction targets of 1990 levels by 2020 and an 80% reduction by 2050, President-Elect Obama is setting the right goals and choosing the right policies.

During the presidential campaign, both Obama and Sen. John McCain made global climate change a top issue and publicly supported a mandatory, economy-wide cap-and-trade system for reducing U.S. GHG emissions. Having both major party candidates support this strong climate position marked another first.

In Congress, a GHG cap-and-trade bill reached the Senate floor after being reported out of committee for the first time. The Boxer-Lieberman-Warner climate bill helped to identify key issues - such as cost containment, use of offsets, and competitiveness - that will require detailed debate in the 111th Congress. In the House, Reps. Henry Waxman (D-CA), John Dingell (D-MI), Rick Boucher (D-VA), and Edward Markey (D-MA) were among the key congressional leaders who will continue to advance the climate debate. 

At the state level, the Regional Greenhouse Gas Initiative (RGGI) held the nation’s first GHG emissions allowance auction as part of a regional cap-and-trade program that includes 10 Northeast and Mid-Atlantic states. RGGI and other U.S. state and regional efforts demonstrate that bi-partisan efforts to protect the climate can succeed, a lesson that will hopefully have resonance in the 111th Congress.

These 2008 milestones show how far we’ve come in our efforts to protect the climate.  But they also demonstrate that we are not yet where we need to be. In spite of the hard work that lies in front of us - I am filled with optimism as we enter 2009 because I believe we finally have the commitment, the leadership, and the momentum we need to begin tackling what may be the most defining issue of our generation.
 

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Although it wasn't really an energy or environmental development, far and away the most significant event in 2008 with an implication for those two areas was the global financial meltdown and its consequences.  First, it will make it much more difficult for the new administration here, as well as governments abroad, to proceed with carbon control measures that will increase the prices of all three fossil fuels.  This does NOT mean that we should abandon climate legislation in the U.S., because any program (whether cap and trade or a carbon tax) will take long enough to put in place that we'll be well past this terrible recession before the economic bite begins to be felt.  And any such program ought to be phased in gradually anyway.  But we'll be debating such a program at a time when people are feeling the pain of the recession and that will make for tough sledding.  The same is true, incidentally, for other, more pedestrian environmental programs.  These are always easier to sell when the economy is roaring along than when times are tough; and times are going to be tough for another 18 months or so, hopefully not longer.

Within the energy/environmental realm, the most interesting development was the rollercoaster ride we experienced with gasoline prices.  They rose to nearly $4.40/gallon in many parts of the country, but at this writing sit at about $1.45/gal.  This makes it harder to sell the need for more fuel efficient vehicles, of course, although the domestic carmakers' need for bailout funds probably means they won't be able to revert to their old ways even if they wanted to.  The crash in energy prices more boradly also has spelled difficulty for many energy conservation and/or renewables programs that were about to move from the drawing board to the production stage.  Taking the longer view, though, eventual post-recession increases in energy demand will send prices back on an upward trajectory again.

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