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Long-Term State Idea: Energy Use 'Clusters'

October 29, 2008 - AUGUSTA -- Maine can create thousands of jobs and cut its dependence on oil through policies that encourage businesses to invest billions of dollars in "energy clusters," according to an early draft of a comprehensive state energy plan being reviewed by Gov. John Baldacci.

Business clusters are geographic concentrations of interconnected businesses, suppliers and institutions. Development of the clusters in the energy sector in the next 10 years would complement efforts to harness three renewable natural resources – Maine's forests, winds and tides. Beyond generating power, the approach would produce jobs, many of them tied to research, value-added products and services.

The overall result would be the largest economic development project in state history, according to the draft plan, which looks out a half-century. The document was obtained by the Portland Press Herald/Maine Sunday Telegram.

The plan is being readied along with a package of bills to be introduced in the Legislature this winter by the Baldacci administration.

No details are available yet on the proposed laws, and the plan is still in draft form. But the emphasis is likely to be on governmental policies, tax incentives, loans and other mechanisms that promote conservation, efficiency and alternative-energy development.

Taken together, the ideas are meant to lay the groundwork for Maine's long-term energy transformation from a state that's highly dependent on imported fuels to one that produces and exports much of its power from sustainable sources.

The timing, however, isn't good for such an ambitious agenda. The global economic meltdown and the state's multimillion-dollar budget gap will make investment dollars hard to come by. Also, a collapse in oil prices may have reduced the urgency in the stampede away from petroleum.

In an introduction to the plan, John Kerry, director of the governor's Office of Energy Independence and Security, acknowledges that the transformation will be a long-term process, not an event. Although some actions can be taken now – such as promoting conservation and efficiency measures – the wider goal is to create a culture for clean, sustainable energy in Maine. To do it, lawmakers will need to set a direction that offers guidance for future leaders and private decision-makers.

"My greatest concern is that people have too short a vision and they don't act because there's no money," Kerry said.

In an interview, Baldacci acknowledged that the budget would limit the scope of his energy package. But he said it's clear from talking to both Democrats and Republicans that there's strong political support for long-range energy planning.

Lawmakers, he said, want to move beyond the annual scramble to find emergency funds to keep low-income Mainers warm each winter. So a priority is to figure out how to properly weatherize every home in Maine over the next 10 years.

"It's very clear to me that we can't wait," Baldacci said. "We have to set a foundation for the next 10 years."

Clusters aren't a new concept. A century ago, Maine's pulp and paper industry integrated harvesting, manufacturing and power, creating a critical mass of supply, energy and production at strategic sites.

In the 21st century, energy clusters group power plants with businesses that can use waste heat, for instance. Composites research complements businesses that make wind power components and install the equipment. Developing biofuels from cellulose brings together research and papermaking to produce a local liquid that can replace heating oil.

Some of the efforts already are under way. Others, such as harnessing the wind power potential in the Gulf of Maine, are being studied by entrepreneurs. What the state can do, Kerry said, is develop clear policies and incentives that encourage businesses to bring these projects to commercial scale.

For instance: Maine created a task force to help find sites for wind turbines and set megawatt goals for generation. Maine already has more wind power generation capacity than any other New England state, creating new jobs and millions of dollars in spending. Other projects are being built or planned.

"We want to have a public-private partnership that gives businesses incentives to invest," Kerry said.

Long-range planning also will examine contributions from offshore energy. Baldacci is naming a task force to look at two divergent sources – coastal wind farms and oil drilling.

The presidential race and congressional action have renewed discussion of offshore drilling, although the Maine coast seems unlikely to have significant oil or gas deposits, according to state geologists.

Also set for a fresh look is nuclear power. Nuclear power, which flows into Maine from other states and Canada, was controversial in the years that the Maine Yankee plant operated in Wiscasset.

"Realistically, I don't think there's support for siting another nuclear plant in Maine," Kerry said. "But I think it should be on the table, if you have a 50-year vision."

Efforts to develop a long-term energy strategy are being welcomed by both Republican and Democratic lawmakers who chair the committee that deals with utility issues. Rep. Kenneth Fletcher, R-Winslow, and Sen. Phil Bartlett, D-Gorham, acknowledge that money will be a stumbling block, but say it shouldn't stop the Legislature from moving forward.

"Obviously, any long-term plan has to have a start," Fletcher said.

Money that's available now, Fletcher said, should be invested in efficiency and conservation, perhaps including tax credits and low-interest loans to residents and businesses. The challenge will be setting priorities, he said.

One thing a long-range plan can do, Bartlett said, is position Maine to take advantage of renewed federal interest in energy independence. He expects more money to be available for conservation and renewable energy development, no matter which presidential candidate wins.

"It's critically important that we use this moment to make a lasting difference for the next generation," Bartlett said.

By TUX TURKEL, Staff Writer, Portland Press Herald, October 27, 2008


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