NEWS

K Street gets green as alt-energy companies gird for Hill battles

06/03/2008

Robin Bravender, Greenwire reporter

Soaring fuel and electricity prices may be horrible for America, but they’re great for K Street.

Lobbyists are cashing in as alternative energy companies try to convince Congress that renewable power sources ranging from ocean waves to animal fat can help end the nation’s energy nightmare.

It wasn’t long ago that alternative energy had a small presence in Washington—spending $2 million on lobbying in 1998, according to the Center for Responsive Politics, which compiles data from federal reports. No more.

Alt-energy companies spent about $16 million on lobbying last year, up from $9 million in 2006, the center said.

"Ten years ago there were a significant number of members of Congress who doubted that renewable electricity and biofuels would ever play a major role in this country," Tim Urban, a tax lobbyist at Washington Council Ernst & Young, said in an e-mail.

"Now, virtually every member and presidential candidate has some plan for transitioning the nation away from foreign, fossil feedstocks and toward domestically available, low or no-emission sources of sustainable electricity and transportation fuels."

Make no mistake, the renewable energy sector’s lobbying is dwarfed by that of the oil and gas industry, which shelled out a whopping $83 million last year, while the auto industry spent $71 million. Still, the renewable energy sector has shown no signs of slowing amid rising electricity and fuel costs.

The National Biodiesel Board, for example, which represents companies and organizations that make alternative fuels from renewable sources like animal fat or vegetable oil, spent $1.2 million on lobbying in 2007, up from $600,000 the year before.

With diesel prices threatening to pass $5 per gallon and strapped truckers staging fuel-price protests across the country, the group has been trying to convince lawmakers that its companies can produce a lasting supply of home-grown fuel that would also help curb emissions of heat-trapping greenhouse gases.

The emissions saved by the biodiesel industry caused the equivalent emissions reduction of taking 700,000 vehicles off the roadways in 2007, according to Amber Pearson, a spokeswoman for the board.

‘Sense of urgency’ on renewables

Fuel is not the only energy concern. Electricity rates are also soaring, as are concerns about greenhouse gas emissions from fossil-fuel burning power plants, so renewable electricity industries are stepping up on Capitol Hill.

The American Wind Energy Association spent nearly $816,000 in lobbying last year, more than double its spending in 2006 and almost six times as much as it spent 10 years ago.

"There has been a great deal of activity in Congress on renewable energy," said Greg Wetstone, the group’s senior director of government and public affairs. "It’s just been nonstop action."

And the industry is hoping to come up big in any climate legislation, Wetstone said. "Obviously," he said, "wind has a very critical role to play as part of the climate solution."

The wind industry is currently focused on getting Congress to renew the renewable energy tax credit, which expires Dec. 31.

"We really have this sense of urgency," Wetstone said. Each week that tax-credit legislation is delayed, he said, means less wind power in 2009.

Solar industries have joined the wind association and investment and environmental groups to lobby for the tax incentive. Their goal is to get the credit "over the finish line in June," said Monique Hanis, communications director of the Solar Energy Industries Association.

The solar group spent $630,000 on lobbying last year, up from $191,000 in 1998. The group has 500 members, up from 100 in 2004, Hanis said. Meanwhile, its staff has grown from three to 14.

"The issue’s hot," said John Stanton, the group’s vice president of government affairs.

Larger companies’ foray into renewables has helped boost the industry, Hanis said. "Now you have the clout of some significant companies that have invested in renewable energy," she said. "You have companies like GE that are doing both wind and solar."

Another factor in the increased lobbying was the Democratic takeover of Capitol Hill after the 2006 election, Stanton said. "We haven’t changed our energy priorities yet," he said, "but everybody was very hopeful."

As part of its lobbying efforts, the solar group spent $260,000 to hire Ernst & Young, which also lobbied for the American Petroleum Institute, Exxon Mobil Corp. and Ford Motor Co. last year. The firm’s alternative-energy clients included the National Biodiesel Board, U.S. Biomass Power Producers Alliance and the National Hydropower Association.

Smaller players join the game

Smaller players are also growing and spending on lobbying.

The Ocean Renewable Energy Coalition, for example, which began with four members in April 2005, has 40 members now, said Sean O’Neill, the group’s president and co-founder.

"We’ve been the red-haired stepchild of renewable energy," O’Neill said, noting that ocean energy was not even defined by Congress as a source of renewable power eligible for tax incentives until 2005.

OREC began with a $5,040 budget—most of which was spent on printing double-sided fliers touting the advantages of harnessing waves and tides. This year, the group has reported spending $10,000 on lobbying, the Center for Responsive Politics reports.

O’Neill said he is hoping that the growing renewable energy movement will be able to coordinate the efforts of its members on Capitol Hill.

"You would think that all of the renewable energy folks would be more united, and on some levels they are," he said, but "we need to be more inclusive as we address the need to address climate change."