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Perspectives differ in Mich. energy efficiency standards

October 7, 2007

Some state leaders want to develop a strategy to make the state more environmentally friendly.

Stanley Pruss, an environmental adviser for Gov. Jennifer Granholm, said the state needs to take the initiative in helping the state go green.

That includes adopting policies that require utility companies to generate a portion of their electricity from renewable sources and implement tax incentives encouraging developers to build in an environmentally friendly way.

“We want to have the richest array of incentives for green building we can get,” Pruss said. “In most instances, the cost of building green is recaptured by energy savings in a short amount of time.”

Michigan spends about $20 billion on energy annually, Pruss said. One hundred percent of the coal the state buys to power its energy plants comes from out of state and 75 percent of the state’s natural gas comes from out of state.

“These are all dollars lost to the Michigan economy,” Pruss said. “We have a tremendous opportunity for wind power development. We can be, by 2025 or 2030, one of the top three generators for wind energy.”

Others, like Rich Studley, executive vice president for the Michigan Chamber of Commerce, favor different methods.

The state needs to provide businesses with tax policies that encourage them to operate in an energy-efficient way, Studley said.

“There have been times when state government has sent a very positive message, investing in our universities, encouraging research and development,” Studley said. “On the other hand, costly renewable portfolio mandates that would increase the cost of electricity while we are struggling to maintain manufacturing jobs is very problematic.”

Pruss’ and Studley’s comments were part of a meeting hosted last week by ConocoPhillips and MSU to discuss the future of energy use in Michigan.

James Mulva, chairman and chief executive officer of ConocoPhillips, said his company hasn’t been the best at communicating with the American public about energy issues.

“We think that our industry has not done a good job in terms of putting a human face on the industry, going out and listening and talking to the American public,” Mulva said.

The nation needs a national energy policy that would require energy sources to be diversified, increase energy research and development, Mulva said.

James Clift, policy director for the Michigan Environmental Council, said a state energy policy would include requiring a certain amount of the state’s electricity to come from renewable sources and requiring the state to adopt standards requiring energy efficiency.

A national energy plan would include efforts such as setting stricter pollution standards and developing more public transportation, Clift said.

“The legislators need to act,” he said. “Michigan should be investing more heavily in energy efficiency.”

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