FOR IMMEDIATE RELEASE

A report released today by the Energy Department’s Energy Information Administration (EIA) projecting the economic impacts of a 25-percent renewable energy future underscores the fact that “increased reliance on renewable energy will provide important benefits to the nation at low cost to consumers," says Ernie Shea, project coordinator for the National 25x'25 Initiative.

According to Shea, the EIA case study using business-as-usual assumptions for technology development “produced better-than-expected results, including major reductions in U.S. oil dependence and carbon dioxide emissions.” The 86-page EIA report, which was requested earlier this year by Sen. James Inhofe (R-OK), forecasts minor increases in oil and gas prices under a 25-percent renewable energy scenario. The report projects a drop of only one-eighth of one percent in GDP, while consumer expenditures would rise only by one-tenth of one percent.

The report says moving to the 25 percent renewable energy level would cut U.S. carbon dioxide emissions in 2030 by 14 percent over 2005 levels, including a 22-percent drop in emissions from the electricity sector and a 14-percent decrease in the transportation sector.

What’s important to recognize, says Shea, is that "the EIA analysis assumes only modest advances will incur in renewable energy technology going forward. We believe this is a flawed assumption, as massive investments in research and development are rapidly improving the economic viability and availability of renewable energy resources across the country. When these technological improvements are realized, the economic benefits of renewable energy will be multiplied many times over."

Shea also notes that the report does not "quantify major economic benefits gained by reductions in dependence on foreign oil, nor does it account for improvements to our national and rural economies and the creation of new jobs that will result from growth in the renewable energy sector." A study by the University of Tennessee shows that a 25x'25 renewable energy scenario would boost annual economic activity in the United States by $700 billion, with much of that occurring in rural areas. Net farm income would grow by $180 billion, including $37 billion in 2025 alone. And more than 5 million new jobs would be created.

"Our nation is moving quickly towards a new energy future," Shea said. "This study reinforces our call to policy leaders for a strong commitment to renewable energy as means of easing our reliance on fossil fuels, boosting our economy and improving our environment."

The U.S. Senate has unanimously adopted a resolution establishing 25x'25 as a national energy goal. A similar resolution is awaiting action in the House of Representatives. “25x’25 represents a vision of America’s future, an ambitious but achievable goal that has widespread support” Shea said.

A 25x'25 Action Plan, Charting America's Future, which was presented to Congress in February, outlines 35 incentive based recommendations that collectively represent the fastest and most cost-effective path to a new energy future. The 25x’25 Alliance does not support the establishment of a national renewable portfolio or fuels standard. The report, along with additional information about 25x'25, can be accessed at www.25x25.org.

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