Washington State Commerce Deputy Director Malarkey presents preview of state’s energy strategy to Northwest Energy Angels

Washington State Department of Commerce Deputy Director Daniel Malarkey provided a preview of the state’s energy strategy at the Northwest Energy Angels’ monthly member meeting on November 17. The main points of his overview of the strategy, which will be publicly released in a few weeks, follow. 

The state has three legislated goals in its update of the state’s 18-year-old energy strategy.

• Maintain competitive energy prices to support economic success
• Foster a clean energy economy and jobs through business and workforce development
• Reduce greenhouse gas (GHG) emissions

These goals incorporate nine legislated principles which include pursuing conservation as the No. 1 energy source, reducing dependence on fossil fuels, making transportation energy use more efficient, and building upon the clean electrical grid. 

Since most of Washington’s fossil fuel consumption is petroleum, and that’s consumed by motor vehicles, the energy strategy focuses heavily on improving transportation efficiency. Motor vehicles consume nearly half of primary energy consumed, represent more than 60 percent of the state’s energy expenditures, and are responsible for about 45 percent of the state’s GHG emissions. Potential tactics are many, and include regulatory changes and financial incentives.

Next most important in terms of focus is to develop more programs and incentives to increase the energy efficiency of buildings. In addition to saving energy over time, these types of programs put idle construction workers to work. 

The third emphasis is to provide more support for “distributed energy” — the generation and distribution of energy from district-level, small energy sources — by streamlining regulations and providing financial incentives.

The state faces hurdles in its efforts, Malarkey said.

For example, an energy policy that affects transportation quickly bumps into state transportation policies and a road finance system that, Malarkey said, is broken. Does the state put a price on carbon? How do we generate revenue to reduce congestion and GHG emissions? 

Also, how hard should an energy strategy be pushed when the 2012 Legislature will be grappling with a $2 billion state budget deficit? 

Nonetheless, as part of a lively Q&A exchange with members, Malarkey wrapped up his comments on an up beat, suggesting that in every challenge lies an opportunity, especially for entrepreneurial business owners like the ones who are members and investment beneficiaries of the Northwest Energy Angels.