Increasing Clean Power and Conservation Would Save Money

Report Shows the Benefits of Responsible Energy Solutions Over Pipe Dreams

A balanced energy plan focused on conservation and clean renewable energy sources could do far more to save consumers money and protect the environment than President Bush’s National Energy Policy, according to a new study by the Union of Concerned Scientists. Clean Energy Blueprint: A Smarter National Energy Policy for Today and the Future found that renewable energy sources wind, biomass, geothermal, and solar - could supply 20 percent of US electricity by 2020. When combined with incentives to improve energy efficiency, the UCS Blueprint would begin saving consumers money in 2007, with savings growing to $67 billion per year by 2020.
Clean Energy Blueprint and the Bush Plan
• In the National Energy Policy report, President Bush says 1,300 new power plants are needed by 2020 to meet increasing energy needs. Policies outlined in the UCS Blueprint that promote energy efficiency and renewable energy could replace nearly 1,000 of these new power plants.
• The UCS Blueprint examined a package of clean energy policies, including incentives for consumers to purchase more energy-efficient appliances, stricter energy codes for buildings, and requiring electricity providers to obtain 20 percent of their supplies from renewable power sources by 2020. In contrast, Bush’s National Energy Policy focuses heavily on increased supplies of polluting fossil fuel energy sources and does not make any meaningful commitment to increase the nation’s use of renewable resources beyond the 2.8 percent in 2020 in a business-as-usual forecast.
• The UCS Blueprint would increase research and development spending for solar, wind, and geothermal energy sources, while the administration’s proposed budget slashes these funds in half.

Clean Energy Blueprint Uses Sound Analysis
The report’s forecast was developed in conjunction with the Tellus Institute and uses the National Energy Modeling System, or NEMS - the same model that the US Energy Information Administration uses to develop long-term forecasts of US energy supply, demand, and prices. The analysis departs from EIA’s approach to modeling renewable energy resources, which UCS and others - including the five national laboratories that do energy research - have criticized for including artificial constraints on renewable energy growth. (NOTE:, Next month UCS will release Phase II of its analysis, which will examine additional policies to reduce pollution and make power plants more efficient.)
Clean Energy Blueprint Saves Consumers Money
0 Clean power can help protect us from price-gouging, artificial shortages, and market manipulation by a handful of energy companies. The conservation and renewable policies in the UCS Blueprint
reduce natural gas prices and provide consumer savings.

• Although overall consumer savings from the Blueprint would begin in 2010, a balanced energy policy would start saving money for households through projected lower natural gas prices in 2002 - growing to over $36 billion in yearly savings by 2020. This is welcome relief to consumers, who have experienced significant increases in natural gas bills in the last year.
• Monthly electricity bills for a typical household would decline from about $40 per month in 2000 to less than $30 per month in 2020 in the Clean Energy Blueprint, versus $38 per month under business as usual. (Electricity prices would decline 7 percent from 2000, compared to I I percent under business as usual. The higher electricity prices in Clean Energy Blueprint would be offset by reduced electricity use and lower natural gas prices.)

Clean Energy Blueprint Reduces Damage to our Environment
• The UCS policy package shows that we can meet future energy demands and still be responsible stewards of our planet. The Blueprint achieves significant reductions in air pollutant emissions, helping to improve air quality and mitigate against climate change, and avoids the need to extract fossil fuels from sensitive public lands.
• Clean Energy Blueprint would reduce power plant carbon emissions by over 40 percent compared to business as usual in 2020. Carbon emissions would be reduced to 1990 levels (Rio treaty, fourpollutant reduction proposals) by 2015. Emissions of both sulfur dioxide and nitrogen oxides would be more than 25 percent below the levels forecast for 2020.
Clean Energy Blueprint is Achievable and Affordable
• This phase of the UCS analysis shows that energy efficiency and renewable energy sources can meet a large share of our energy needs both today and in the future. In fact, many of the policies included in Clean Energy Blueprint have already proven successful at the national or state level.
• Over the entire period, between 2002 and 2020, cumulative energy bill savings exceed the
incremental costs of the Clean Energy Blueprint by nearly $150 billion. Annual savings would
exceed costs in 2007 and grow to $67 billion per year in 2020, with additional benefits continuing
thereafter. In early years, program costs could exceed benefits by as much as $13 billion per year.
• Energy efficiency and renewable energy technologies are ready to serve us. One of the greatest advantages that these technologies offer over new power plants, transmission lines, and pipelines is their ability to be deployed with almost no delay. Energy efficient technologies can be deployed many times faster than any alternative. It takes only six months to add new wind turbines to existing wind farms. With the right vision, leadership, and determination at the national level, we can implement the policies of the Clean Energy Blueprint now and begin seeing benefits right away.
The Union of Concerned Scientists is a nonprofit partnership of scientists and citizens combiningrigorous scientific analysis, innovative policy development and effective citizen advocacy to achieve practical environmental solutions.
The report can be found on the UCS Web page, www.ucsusa.org/energy

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