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Shaping Energy Technology Transition

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Shaping Energy Technology Transition ( shaping-energy-technology-transition )

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utility grids, as well as regulatory problems. This is especially true for CHP technologies. The installation of CHP equipment and systems is usually subject to regulatory and policy issues at the federal, state, and local levels. The systems must meet varying interconnection standards, local utility terms and conditions, air quality standards, as well as site and permitting regulations. This can hinder or lengthen the installation process, making it difficult, expensive, or cumbersome to install and operate new units. Similarly, the lack of consistent, uniform interconnection standards creates a labyrinth of rules, standards, and fees. The result is that manufacturers, engineering and installation companies, and energy service companies can hardly discern what the requirements and subsequent costs of CHP systems will be. Since the beginning of the 21st century, state governments as well as Congress have begun to dismantle some of the barriers faced by distributed energy resources. EPAct 2005 required states to adopt interconnection and net metering policies to support the development of small-scale distributed generation projects.48 Transportation Energy use in the transportation sector presents unique challenges to policy-makers. Not only are habits hard to break, but new technology and production from profit-driven industries are also required to shape an energy transition. According to the EIA, about two-thirds of U.S. petroleum usage is dedicated to transportation. While airplanes, trains, and ships use significant amounts of energy, personal automobiles account for the majority of energy consumed in the transportation sector.49 Although petroleum is required for more than 95 percent of all transportation energy use, it accounts for less than 20 percent of the energy consumed for other, stationary uses.50 The challenge is magnified by the fact that automobile manufacturing is an important source of jobs for the U.S. economy. President Obama and much of Congress have clearly stated the importance of U.S. automakers to the nation’s economy and job market. In fact, the government has already directed part of the original 2008 stimulus funds to these ailing companies. The motor vehicle and parts manufacturing industries employed 703,900 people at the end of November 2008, according to the Bureau of Labor Statistics. The sector has shed 116,500 jobs since November 2007, a 14 percent decline, according to the agency. Auto dealers account for about 1.1 million jobs. The Big Three automakers employ about 201,000 workers, according to the Center for Automotive Research, compared with about 113,000 working in the United States for foreign automakers such as Toyota Motor Corporation, Nissan Motor Company, and Honda Motor Company. The industry as a whole, the research group estimates, indirectly employs between 2.5 to 3 million workers, 97

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