Today the Philadelphia Phillies dipped their toes into the world of clean energy by purchasing 20 million kilowatt hours of Green-e Energy Certified Renewable Certificates (REC's).  The purchase will offset the energy use at Citizens Bank Park for the year.

As part of the EPA's Green Power Partnership, the Phillies' purchase is the largest purchase of renewable energy in professional sports. 

REC's are an interesting way of greening the Phillies' operations and part of a larger trend in Baseball teams becoming more environmentally friendly.  Len wrote an interesting post last month about how the Nationals introduced their new green ballpark.  And last year, PG&E partnered with the Giants on making AT&T Park the first major league stadium with solar energy.

It will be interesting to watch how environmental groups react to the Phillies' decision to use REC's. Some groups have argued that this approach is akin to a license to pollute.  Instead of focusing on producing clean energy or focusing on energy efficiency like the Nationals, opponents might argue that REC's aren't really helping to create cleaner energy.

We launched ClimateSmart - a voluntary customer carbon offset program - and ran into this argument.  We launched knowing that this would be a potential criticism; however, we designed the program using the most stringent protocols created by the California Climate Action Registry (CCAR). 

To do carbon offsetting well, one must account for additionality, which means that the project would not be done in the course of business if it weren't for the additional investment generated by the credit.  CCAR's protocols do account for additionality.  I am sure that the REC's created by the EPA do as well, but the Phillies should be aware of this issue when communicating to their fans. It's very complicated and could be a criticism, even if well-intended.

Only two days into the week and we have a ton of movement in the solar industry.

As reported by Earth2Tech.com, solar thermal start-up SkyFuel announced that it is receiving $17 million in a series B round of funding from Leaf Clean Energy.  

According to Earth2Tech, SkyFuel's announcement follows nine digit funding announcements last week from Stirling and eSolar. Stirling raised $100 million and eSolar $130 million.

The Albuquerque-based SkyFuel uses a different type of technology from other solar thermal companies, like BrightSource, Ausra, and Solel.  SkyFuel claims to have created an inexpensive and light material called "ReflecTech."

In addition to the technological story, what I find interesting is that all of these companies are raising capital in a tough economy and in the face of uncertainty around federal tax credits that will greatly impact the returns on these investments. 

Another interesting movement in the solar industry this week was the announcement by Sunrgi.  As reported today in USA Today, the company claims that it can use lenses to concentrate sunlight by more than 1,600 times to produce electricity on photovoltaic panels in the five to seven cents per kWh range.  To put this in perspective, conventional generation is in the nine cents per kWh range.

According to Greentech Media, similar companies can concentrate in the 500-832 times range.   Is the Hollywood-based Sunrgi pulling a blockbuster hype blitz or is this the real deal?

Last Friday Ohio announced that its state senate passed legislation mandating a renewable portfolio standard (RPS). The bill, awaiting Governor Strickland's signature, mandates that 12.5% of the Ohio's electricity must come from renewable sources by 2025.

Ohio is now the 26th state in the U.S. to enact a RPS.

In contrast to California's 20% by 2010 RPS goal, this may seem like a fairly weak mandate, but it requires context. Ohio gets 87% of its power from coal. Moreover, the state is a major producer of coal, meaning that a move to renewables could have a broader economic impact.

Ohio's political leaders deserve credit for moving this bill forward in the face of some very tough odds. They also should get recognition for focusing on energy efficiency by setting a goal to reduce energy usage by 22% by 2025.

Energy efficiency benefits the environment and puts dollars immediately in the pockets of energy consumers. It's the quickest and most cost effective way to reduce greenhouse gas emissions.

Environmental groups hailed the bill as a way to reap the environmental and economic benefits of diversifying Ohio's electricity mix with homegrown wind and solar resources. 

Apparently, the state has substantial wind resources along the glacial ridges of central Ohio, across the farmlands of northwest Ohio, as well as on and off the shores of Lake Erie. Within the next decade, say some environmental groups, Ohio could generate at least 10% of its electricity from wind power alone.

Do I want for things? Sure, who doesn't? Do I worry about losing electricity for a quarter of a day every day? Nope.

But, that's exactly what's happening in Indian suburbs like Bhandup, Mulund, Thane and many other cities and towns across India. The "good" news seems to be that residents of these areas can enjoy 24-hour electricity supply -- provided they pay premium rates. The bottom line is that "bijli," the Hindu word that refers to electricity, is in short supply in India, and policymakers are now looking to proven energy efficiency models in California to help ease demand.

And, as noted in a recent blog post from Sierra Club Executive Director Carl Pope, the timing couldn't be better. The increase in oil prices and potential effects of climate change stand to wreak even further havoc on India's economy and population:  Enter PG&E's Customer Energy Efficiency program...

Roland Risser, PG&E's Director of Customer Energy Efficiency, recently returned from a summit in India as part of an effort by USAID to develop energy efficiency policies that will help India address some of its power problems. Focused primarily on the state of Maharashtra, with a brief foray into Delhi, and in response to an aggressive directive from the Maharashtra Electricity Regulatory Commission (MERC) for the state's four utilities to put together a comprehensive energy efficiency filing in five short days, the summit featured a series of workshops with representatives from Lawrence Berkeley National Laboratories and PG&E. Roland's directive: provide real-world examples of energy efficiency programs that work -- not just in theory, but in practice.

In order to combat the daily blackouts and diesel-run generators that characterize India's energy landscape, Roland outlined integrated demand-side management -- industry-speak for utility measures to meet future electricity demands. With the help of emerging technologies such as high efficiency water pumps, with timers that would also avoid overuse; bulk purchasing of power by utilities; and mandates for more efficient equipment, among other measures, India could slowly transform its current energy nightmare into a low-carbon dream, specifically tailored to Southeast Asian markets.

The future can be bijli for India, but we cannot assume that India's path will be the one that continues to work for California. We can only offer insights into energy efficiency policy and systems, as well as help identify the quick wins that can be easily implemented. Hopefully, this will help set the tone for energy policy globally.

Here's a little different look at Earth Day. The Wall Street Journal's Environmental Capital blog carried a lively post asking: Earth Day: Green Yawn? Madison Avenue has embraced Earth Day and is slapping green labels on everything from "Earth Month" candles offered by a beauty products company to - my favorite - potato chips cooked in a solar-powered factory.

"Every company is out there touting 'we're green' -- it's the new requirement for being a good corporate citizen," Allen Adamson, managing director of WPP Group's branding consultancy Landor Associates, said in a WSJ story. "The noise level is so high now," he says. "The first few people into it had some benefit. Now it's a cost of entry."

Yes, there's an awfully sloppy embrace of Earth Day by a lot of opportunistic companies but, then, there's also a lot of well-intentioned efforts by other corporations, institutions and just folks trying to make a green difference. We saw more than 1,300 PG&E employees and families join with employees from other companies and groups last Saturday to collect trash and plant trees at parks and beaches around northern California. Some of my neighbors in San Francisco launched a block clean-up.

Over the last ten years, the California State Parks Foundation's Earth Day Restoration and Cleanup event has engaged thousands of volunteers statewide at hundreds of state and community park locations. More than $3 million dollars has been raised to support the parks. That's a lot of green.

Pasadena - Following a stellar first day and a very fun evening with Chuck Leavell at the piano bar, the Fortune Green Brainstorm's second day brought more thought provoking discussion.

The morning started with Todd Woody's electric car panel. Participants included Elizabeth Lowery of General Motors, PG&E's Peter Darbee and Jan-Oluf Williams of Think Global AS. 

The conversation highlighted the benefits of the electrification of the auto industry - inexpensive and clean fuel sources, and energy independence.  The panel also highlighted challenges, like the need to bring more electric vehicles on to the market.  GM is planning on mass producing its Volt model in the 2009 time frame.  Think Global is also working on selling 30,000-45,000 vehicles globally in the next few years.  Other challenges include battery advancements and the need for greater infrastructure to support these vehicles.

One notable statement by Peter as noted in Todd's latest Green Wombat post is that he would like to replace the oil industry.  In the context of the conversation, Peter was saying that we would like to give our customers more choice in how they use energy in the home and in the way that they use transportation. 

Darbee added that if you look at the carbon emissions from an electric vehicle powered by a clean utility like Exel, Entergy, FPL or PG&E vs. oil, the environmental benefits are tremendous.

Following the panel several attendees asked Peter if we were interested in the electrification of the auto industry because it means that we will sell more energy.  We spent some time explaining California's decoupling laws and how we do not make more money by selling more energy.

Later in the day, famed venture capitalist Vinod Khosla, countered the electric vehicle movement by saying that cellulosic ethanol is a much more cost effective and environmentally source of fuel. 

Another interesting panel was Adam Lashinsky's interview of Bjorn Lomborg of the Copenhagen Consensus Center.  The author of the "Skeptical Environmentalist" and "Cool It" offered a very reasoned perspective on why climate change and other environmental problems should be dealt with in a responsible way.  

The day also featured two CEO interviews with Hugh Grant of Monsanto and Michael Dell of the eponymous computer company.  The range of issues and sectors reflected in these conversations illustrates the breadth of the green movement in global business.  It's everywhere and on everyone's mind.

The question then is: what next?  We all recognize the need to act and the real economic and environmental benefits with these actions.  But I couldn't help but feel that there is still some confusion about where companies should be focusing their efforts.

I think that this is where effective public policy can play a huge role.  I touched on this subject in yesterday's post.  Clear market signals from our policy makers in D.C. will really help to answer the "what next?" question, especially as it relates to the climate change challenge.     

Pasadena - On the road today at the Fortune Green Brainstorm event.

I feel very fortunate to be attending this event as a wallflower - it's an unprecedented gathering of leaders in the green business space. 

One interesting speaker was Shai Agassi of Project Better Place.  Shai and his team are working hard to change the entire relationship between the transportation and utility sectors by providing the infrastructure to support the electrification of the auto industry.  It's this type of ingenuity that will help to solve our addiction to oil and improve the environment. 

The first day of the conference featured a full course of interesting panels, ranging from nuclear energy to innovative green start-ups to public policy.  One interesting panel featured California Attorney General Jerry Brown.  AG Brown highlighted a number of lawsuits that this office is pursuing to help California push environmental policy in the face of federal opposition. 

PG&E's Peter Darbee participated in numerous panels.  Of particular note was his discussion on a solar energy panel, "Is Solar the Answer?"  Moderated by Fortune's Todd Woody, the panel featured Ausra CEO Bob Fishman, Applied Materials CEO Michael Splinter, and Bill Gross of eSolar - who by the way just scored $130 million in funding from Google among others.

The final outcome:  solar might not be THE answer, but it will play a huge role in meeting our future energy needs and addressing climate change.  All participants agreed that with rising natural gas costs, technological improvements, and a clear price for carbon, solar is becoming increasingly more competitive. 

What's needed now is a clear market signal from federal lawmakers by way of federal tax credit extensions and greater R&D resources for renewable energy.

With so much going on, I could go on about the event. But I'd miss all of the evening's main attractions.  Stay tuned for more Green Brainstorm tomorrow...

Saturday April 19 is Earth Day and the opportunity to join with thousands of volunteers to help restore and clean up California's state parks. We've been partnering with the California State Parks Foundation for seven consecutive years to lend a hand to the state parks and beaches and help make our environment cleaner and greener.

Last year on Earth Day, almost 1,400 PG&E employees, retirees, families and friends spent the day collecting thousands of bags of trash, pulling up more than 10,000 non-native invasive plants, clearing nature trails, planting more than 1,600 native trees, and refurbishing picnic areas at 16 parks, recreation areas and beaches in northern and central California. That effort is a big part of our environmental leadership and our programs to be a close partner with the communities we serve.

But you don't have to have to have a PG&E connection to help out. You can round up some of your neighbors on Earth Day and tackle a project on your block -- picking up trash on the streets, slapping a fresh coat of paint on the front steps, planting spring flowers in sidewalk pots. There's a lot to be done. I'm seeing some folks in my San Francisco neighborhood applying paint brushes to their garage doors, turning them into bright nature murals. That's an idea for Earth Day.

The point is there are so many things we can do to keep our environment healthy and a little more tidy. Happy Earth Day - every day.

Today we announced the arrival of SmartAC to the East Bay with the installation of a SmartAC Switch on the home of Walnut Creek Mayor Gwen Regalia. 

The program, initially launched in Stockton in February 2007, is now available to all East Bay residential and small business customers.

By enrolling in the SmartAC program, the utility's East Bay Area electric customers with central air conditioning can now participate in a voluntary program that helps PG&E and the State of California avoid summer heat power interruptions.

We designed the program to be voluntary and flexible with the choice to opt-out.  We were extremely sensitive to the idea that we would be seen as "big brother" controlling our customers' thermostats remotely.  It seems our sensitivities were not without reason.  A few months back the CEC proposed an idea under Title 24 energy efficiency standards to require all new thermostats to have this remote controlled technology.   This proposed mandate created quite a storm among bloggers, eventually leading to a New York Times story and the rescinding of the proposal.

The success of PG&E's SmartAC program demonstrates that if done correctly - that it is voluntary with the opt-out choice, customers will gladly participate. We've actually been amazed by how well the program has been received by our customers.

It seems that whenever I open a newspaper, magazine or turn on the TV, there's always something about "green." Don't get me wrong - climate change is an urgent issue that must be addressed and I'm proud to be doing my part at PG&E to show how we're thinking and preparing for a carbon-constrained future. But sometimes I wonder (and fear) if the media, and the public for that matter, have reached a saturation point on green issues?

Well, I got some comforting insight today attending the Low Carbon Fuel Expo's media panel which explored how media influences the public's perception of climate change. The panel featured leading reporters that cover aspects of climate change regularly: David Baker, energy reporter for the San Francisco Chronicle; Mark Glover, auto editor for the Sacramento Bee; Janis Mara, business reporter for the Contra Costa Times; and Todd Woody, senior editor of Fortune Magazine and blogger for the Fortune Green Wombat blog.

All reporters were in agreement that barring any extreme reversals in weather trends, like a really cold decade, coverage of climate change will continue. According to Todd Woody, Fortune Magazine has devoted two reporters to covering the issue full time and will continue to devote resources to it because, while the hype may go away, climate change will spur long-term changes to U.S. business policy.

But don't take their word for it. One needs only to check out a newspaper to see that despite the continued downsizing this industry faces, coverage of green issues has increased; it's a topic that is covered by reporters of all beats. Moreover, newspapers, newswires, news radio, etc. are tapping their reporters and editors to also blog around the clock on the environment and anything else you can think of. The New York Times is up to 54 blogs and my colleague Len Anderson's old stand at Reuters has a bunch including an environmental blog with posts from their reporters all over the world. 

PG&E is one of California's largest private land-owners.  This fact blew me away when I first learned of it.  But it actually makes sense if you think about all of the company's hydro facilities and other transmission and distribution infrastructure throughout the state. 

Today the company took a huge step in preserving a significant percentage of this land by announcing that it has submitted to the California Public Utilities Commission (CPUC) a plan to protect 140,000 acres of its Sierra Nevada and Cascade mountain watershed lands and Carrizo Plains for the benefit of current and future generations of Californians.

PG&E is also working in close cooperation with the Stewardship Council to fund its Youth Investment Program. The grant-making program is designed to better connect California's youth with the environment and to help build the next generation of environmental leaders and stewards.

One of the most rewarding parts of working in the cleantech space is witnessing the amount of innovation rapidly occurring at the intersection of science and business.

Last night I was able to see the excitement generated by this innovation during the UC Berkeley's Center for Entrepreneurship and Technology's Cleantech Innovation Prize.

The 2008 Venture Lab Clean Technology Innovation Prize event, hosted on Berkeley's campus, brought together and recognized teams of  UC Berkeley engineers, scientists, and Haas School of Business students who are working on applied research and technology with commercial potential in the field of clean technology.

This year, sixteen teams focusing on some of today's most pressing clean technology challenges, were recognized as semifinalists. The teams then presented their technologies to a panel of judges consisting of venture capitalists, renewable energy entrepreneurs, and Hal La Flash, PG&E's director of emerging clean technology policy.

All of the semifinalists had great concepts and you could see that some of the technologies had real potential for commercial application. It was clear from some of the judges' questions - especially those for the VC community - that there was real interest in funding some of the projects.

The judges selected four winners out of the sixteen semifinalists. A third place tie went to a team focused on improving battery capacity and another working with optics to improve solar efficiencies.  Second place went to a team using mobile technology to develop sensors that monitor riparian systems and traffic flow.  The first place team developed a low cost fuel cell, which could be utilized by citizens in third world countries to power lights and small electronic devices, like phones.  

Winners received $20,000 in cash and prizes. Additionally, the Kauffman Foundation provided $5,000 in travel scholarships to the competitions leading (and interested) teams to attend Copenmind - a global university-industry conference in the space of clean tech-- in Copenhagen, Denmark, to be held Sept. 1-3, this year.

Sonoma County in northern California is making a splash today touting a pilot program to tap treated wastewater to heat and cool a business park near the Santa Rosa airport and perhaps irrigate vineyards in the grape-growing region.

"Recycled water is a new energy source. Water and wastewater that you'd normally have to treat and dispose of will become the source for heating and cooling," Grant Davis, assistant general manager of the Sonoma County Water Agency, told the San Francisco Chronicle.

The system would cost $50 million to $70 million and pump wastewater from a nearby treatment plant to the business park buildings, where a device transfers heat to or from the wastewater. A compressor would convert the heat energy to warm or cold air to replace traditional heating and air conditioning systems, the paper said. The project is part of the county's aim to achieve "carbon-free" water by 2015 using renewable energy like solar and geothermal to power Sonoma's treatment plants and pumps. County officials estimate savings of 90 percent on natural gas and 50 percent on electricity for heating and cooling.

Pacific Gas and Electric Company and some local wineries also are interested in the system, which was developed in part by scientists at Los Alamos National Laboratory.

What I find most interesting about this project is its holistic approach to planning.  We have set up a group here at PG&E called Sustainable Communities, which acts like a think tank to look at how we may help the communities we serve become more sustainable. By working from the start with city and county planners and developers launching new development and redevelopment projects, we can explore many promising opportunities to reduce energy use and improve the environment.

Examples would include positioning new housing developments to maximize the use of the sun to generate electricity and taking advantage of local renewable generation sources.

Water use is one of California's largest energy users.  It's refreshing to see this trend being reversed. California has a long history of leveraging water resources to generate clean energy. We have tapped many of the state's rivers to create one of the largest hydro systems in the world. Sonoma's announcement is another good example of how a community may utilize additional water resources that would otherwise be wasted.

A quick update on the renewable energy tax posting from earlier this week. 

United States Senators John Ensign (R-NV), and Maria Cantwell (D-WA), led a bipartisan group of senators on Friday to announce a bill designed to encourage the development of renewable energy and expand energy efficiency in buildings, homes and appliances.

"Satisfying our energy needs and reducing our reliance on foreign sources is a challenge that we must meet, but that can only happen with the right incentives in place," commented Ensign, announcing the introduction of the bill into the Senate. He continued: "Our bipartisan bill will help put us on a path toward energy independence with American ingenuity leading the way."

The Clean Energy Tax Stimulus Act of 2008 extends incentives to encourage renewable energy.

The legislation extends the placed-in-service deadline through 2009 for the Production Tax Credit to encourage electricity production using renewable energy resources such as geothermal, wind, biomass, and hydropower facilities. The bills authors argue that with this change, these renewable energy plants will have valuable tax stability for 10 years.

In addition, the bill proposes to extend the solar and fuel cell Investment Tax Credit for eight years to encourage development of these technologies.

We're hopeful that this will finally be the bill to extend the renewable energy tax credits.  It appears to have bipartisan support.  The measure is also co-sponsored by 28 other senators including Senator Pete Domenici (R-NM), Ranking Member of the Senate Energy & Natural Resources Committee. The bill is also supported by Democrats like Boxer, Feinstein, Biden, and Stabenow; and Republicans like Hutchinson, Dole, Hatch, Stevens, Coleman and Sununu.

Californians will back a variety of fees for drivers of gas-guzzling vehicles and rebates for less-polluting cars, according to a poll issued by the Mineta Transportation Institute at San Jose State University.

"The public is very supportive of these green taxes and fees," research associate Asha Weinstein Agrawal, told the San Francisco Chronicle today. "This shows that it is realistic to improve the way we collect transportation taxes in this state."

California's registration and licensing fees and gasoline taxes do not reflect emissions levels from cars and trucks. But the phone poll of 1,500 Californians found support for green taxes and fees - charges that rise and fall with the amount of pollution a vehicle emits, the paper said. Sixty-three percent backed doubling the registration fee from the average $31 and charging higher rates for polluting vehicles and lower rates for clean ones.

Sixty-five percent supported a tax and rebate system to reward drivers of clean cars and tax high-emission cars, and 50 percent backed a mileage fee that set a higher rate per vehicle for gas hogs. There are two bills in the state Legislature that would allow regional transportation agencies to impose "greenhouse gas mitigation fees."

The survey results reflect growing public support for new measures to help develop a cleaner environment.Here at PG&E, we are looking at possibilities involving the intersection of the energy and transportation sectors. We've partnered with Tesla Motors to research remote-control charging of electric vehicles connected to the power grid, and demonstrated innovative technologies to make electric vehicles suppliers of power to homes and businesses.

In addition to our plug-in electric hybrid vehicles and dedicated electric vehicles, we own and operate a clean fleet of fuel cell vehicles and more than 1,300 natural gas vehicles - the largest of its kind in the nation. Over the last 15 years, the fleet has displaced more than 3.4 million gallons of gasoline and diesel and helped to avoid more than 6,000 tons of carbon dioxide from entering the atmosphere. 

One of the most frequent questions I get from reporters is whether or not the extension of the energy tax credits by the US federal government will negatively impact several of the renewable energy power purchasing agreements we've announced over the past six months? 

This question is sure to heat up soon with speculation that two U.S. senators, Maria Cantwell, D-Wash., and John Ensign, R-Nev., are preparing to introduce a new renewable energy tax credit proposal within a week. 

The Cantwell Ensign proposal would represent the fourth attempt at securing tax credits in the past few months. Two bills failed Senate approval in December and most recently, the Renewable Energy and Energy Conservation Act of 2008, which included a section securing renewable energy tax credits, was narrowly defeated in February. 

Much is at stake.  According to a report by the Prometheus Institute and Greentech Media, $30 billion worth of solar thermal plants have been announced in the past six months.  These include more than 1600 MW from agreements signed by PG&E. 

Back to the question on the impact of these credits on all of these projects.  The basic answer is yes, there will be a significant impact.  But it's unclear as to how much.  Given the climate change, national security, and economic benefits derived from greater adoption of renewable energy (see Editorial below), it's likely that these projects will still be built. But it may take longer, delaying economies of scale and keeping costs high relative to conventional dirtier sources of energy.  We believe that the time to act is now. 

Peter Darbee, PG&E Corp's Chairman, President, and CEO makes a very compelling case for the need to extend the energy tax credits in today's Energy Daily.  I've included below the text in its entirety.  I recognize that this makes today's blog entry extremely long, but given the importance of this subject and the need for urgent action, I am hoping that his words will motivate.  

Senate Must Renew Renewable Energy Tax Credits

As the head of one of America's largest electric and gas utilities, I like other utility executives have to consider the energy future that lies ahead for our company, our customers and the country. The more I talk with experts about the global warming crisis, the more I am convinced the problem is real and needs to be addressed immediately.

Across the country, we are seeing hotter average temperatures, more extreme weather and frequent droughts. In my home state of California, the predicted loss of snow pack will mean less hydropower as we face soaring demand for electricity during the hot summer months.

But if controlling greenhouse gas emissions is essential, the question on everyone's mind is how we can accomplish that without hurting our economy.

Congress has an immediate opportunity to take a step in that direction by supporting efforts to develop competitive new sources of renewable power that will not only reduce our carbon footprint, but also create new green jobs to boost our economy.

By providing tax incentives for renewable power as it did for new nuclear power development, Congress can help make the case for stripping carbon out of our energy supplies as strongly in our economic self-interest as it is a global environmental imperative.

In February, the House of Representatives passed a timely measure to prevent the expiration of production and investment tax credits for renewable power at the end of this year. In addition to extending the credits for several years, the House approach supports important energy efficiency programs, encourages investment in new technology such as "smart meters," the cornerstone of an advanced electric grid, and provides incentives for plug-in electric vehicles that could dramatically reduce our dependence on foreign oil.

Over the next couple of weeks, the U.S. Senate will have the opportunity to vote on similar legislation to extend or kill vital tax credits that nurture the growing wind, geothermal and solar power industries.

But partisan disputes in the Senate over how to fund these credits, if unresolved, could deal a devastating blow to the renewables industry.

A recent study by Navigant Consulting found that failing to renew the credits could cost more than 116,000 U.S. jobs and nearly $19 billion in annual U.S. investment.

These losses would be felt across the country, in states such as California, Colorado, Illinois, Iowa, Minnesota, North Dakota, Oklahoma, Oregon, Pennsylvania, Texas and Washington.

Those who wonder why Texas should care about supporting alternatives to oil and gas don't realize that it now harbors a quarter of all wind power capacity in the United States, and has tremendous potential for further growth.

Although the Navigant study was commissioned by the wind and solar industries, our company's experience as a major buyer of renewable energy attests to its general conclusions. Already we see a marked slowdown in new renewables projects slated for 2009 and beyond, as developers wait to see whether Congress will act.

Navigant's conclusions are also supported by the nation's experience with on-again, off-again federal support for renewables.

The expiration of production tax credits in 2004, for example, caused a 77 percent drop in installed wind capacity that year relative to 2003.

Last year, with credits in place, the wind industry enjoyed its best year ever, growing 45 percent. Developers installed more than 5,000 megawatts of new generating capacity, more than twice the previous record and enough to power 1.5 million homes.

The incentives have also helped drive tremendous growth of the solar industry, albeit from a much smaller base. Our utility alone contracted for more than 700 megawatts (MW) of power from solar developers last year. As scale grows and technology advances, the cost of solar photovoltaics is plummeting and the cost of solar thermal power is approaching parity with gas-fired generation.

This tremendous spurt of innovation and development could be squelched just when the national economy, buffeted by the housing collapse and record oil prices, needs all the support it can get.

Promoting renewable electric power, combined with incentives for gas-sipping plug-in hybrid electric vehicles, could drastically reduce both the carbon footprint of American transportation and our need for oil imports.

Senate support of tax incentives for new renewable development is an affordable first step toward reducing our nation's carbon emissions. And with the fate of several promising industries and tens of thousands of jobs at stake, it is a measure we can't afford not to take.

We are expanding our push into solar thermal power in a big way today with a series of contracts with BrightSource Energy Inc. for up to 900 megawatts from plants to be built by BrightSource in California's Mojave Desert. The first three contracts are for a total of 500 megawatts from three power stations and two contracts for options for 400 more megawatts.

At 900 megawatts, this would be one of the biggest solar power deals anywhere and another step by PG&E to bulk up our supplies of renewable energy.

The first BrightSource solar thermal plant, a 100-megawatt plant, will be constructed at Ivanpah in San Bernardino County and in operation in late 2010-early 2011 depending on permitting and infrastructure. It will generate 246,000 megawatts hours of renewable power per year. A second plant at Ivanpah will generate 200 megawatts, and subsequent plants are slated for Broadwell Dry Lake, also in San Bernardino County.

"Solar thermal energy is an especially attractive renewable power source because it is available when needed most in California - during the peak mid-day summer period," said Fong Wan, vice president of energy procurement at PG&E. "Through these agreements with BrightSource, we continue to broaden our renewable energy portfolio and provide our customers with some of the cleanest energy in the nation."

A PG&E-BrightSource memorandum of agreement was first announced in August 2006 and called for 500 megawatts. The final agreement expanded the original to five separate power-purchase agreements for 900 megawatts. We also have power purchase agreements for solar electricity with Israel's Solel and Australia's Ausra.

Today's news also comes after announcements last week that Southern California Edison and FPL Energy each plan to develop 250 megawatts of solar power - SCE installing solar panels on commercial roofs in Southern California's Inland Empire and FPL Energy developing solar thermal electricity in the Mojave Desert.

 An existing transmission line will need to be rebuilt to a high capacity for BrightSource's  Ivanpah site. The California Independent System Operator, the main grid manager for California, also is assessing transmission improvements for the Broadwell stations.

Here's more information about solar thermal energy.