Obama: Government To Cut CO2 Emissions 28% By 2020

Dow Jones & Company, Inc. - Jan 29

U.S. President Barack Obama on Friday ordered the federal government to
reduce greenhouse-gas emissions by 28% by 2020, marking a new push toward
energy efficiency and a greater reliance on low-carbon energy.

The federal government is the largest consumer of energy in the U.S.
economy, accounting for nearly 1.5% of the nation's spending on fuel and
electricity, and the mandate could help boost development of the renewable
and clean energy sectors.

The executive order, "will spur clean energy investments, create new private
sector jobs, drive long-term savings, build local market capacity and foster
innovation and entrepreneurship in clean energy industries," said Nancy
Sutley, chair of the White House Council on Environmental Quality, in a
teleconference.

Under the mandate, federal departments and agencies will measure current
energy and fuel use and then take steps to use more "clean energy" sources
such as solar, wind, and geothermal power, the White House said in a
statement.

Dorothy Robyn, deputy undersecretary of Defense for Installations and
Environment, said the order wouldn't affect combat operations, excluding
more than 60% of the DOD's greenhouse gas emissions such as jet fuel for
planes and diesel for tanks. According to the Energy Information Agency, the
DOD's energy consumption represents more than three-quarters of the federal
government's total energy budget.

Still, replacing several hundred thousand vehicles in the government's fleet
and providing renewable energy and new, energy-efficient windows throughout
its 35 different agencies represents major contracting opportunities.

Take, for example, U.S. Army's National Training Center at Ft Irwin, Calif.,
where a $1.5 billion, 500-megawatt solar power project will be built, and
ultimately expanded to 1 gigawatt. Clark Enterprises and Acciona, a Spanish
renewable-energy developer, will construct the array, leasing the military's
land in exchange for lower-cost electricity.

Although Sutley said the government may be able to save up to $10 billion
over the next decade in energy costs, she couldn't say how it would cost
taxpayers to implement. But, she noted that the nearly $800 billion economic
stimulus bill included $4.5 billion for the General Services Administration
for renewable energy and efficiency investments, $4.2 billion to modernize
DOD facilities and $300 million to buy electric vehicles for the federal
fleet.

-By Ian Talley and Siobhan Hughes, Dow Jones Newswires; 202-862-9285;
[email protected]