The creation of a government-sanctioned corporation
that would oversee the much-needed modernization of federal government power
plants was proposed in Congress.
The idea for the so-called Forrestal Corporation,
named for the first secretary of defense, evolved from in informal coalition
of private sector energy executives and government officials.
The federal government, the single largest energy
consumer m the United States, spends more than $3 billion a year to service
500,000 buildings and facilities. The government is under strict mandates
to improve the efficiency of its energy programs by 30 percent by the year
2005, in addition to facing various air quality restrictions.
The Forrestal Corporation, however, could arrange
for construction of a power plant project on behalf of a government agency.
The corporation would solicit bids from private companies and the winning
bidder would arrange its own financing and construct the plant. The corporation
would oversee construction and operation.
The coalition backing the plan sees a potential
of nearly $10 billion of energy efficient investment. The Army alone has
identified 15 potential cogeneration projects, with a $1.2 billion investment
potential.
The potential cogeneration investment throughout
the federal government, if just 10 percent of current boiler sites are redeveloped
as cogeneration, is estimated to be $20 billion.
In addition to CNG, the coalition includes CMS
Energy Corporation, Ogden Power Corporation, Trigen Energy Corporation,
Prudential Securities and it has been endorsed by EPSA.
They expect wide support for the plan because it
is an idea that really saves money. The numbers still are being crunched,
but my sense is that however it's scored it is going to have the potential
for substantial cost savings.
Former Rep., Greg Laughlin (R-Texas) sponsored
the bill that would create the corporation. "We're very interested
in what the Forrestal Corporation has to offer," Laughlin said. "When
you start talking about-in the Defense Department alone-privatization of
power generation facilities saving the government $1 billion a year, that's
the kind of stuff that we're really interested in."
John Howes, a Washington consultant who has been
serving as administrator of the Forrestal Coalition, said the proposal fits
in well with the tremendous changes taking place in the energy field. "There's
so much dynamic activity taking place in the energy marketplace ... but
the government is not keeping up with the private sector to take advantage
of these changes."
Because it can aid budget-cutting efforts, the
Forrestal plan could be made part of the Department of Defense authorization
bill or the budget reconciliation bill, Howes said. In any case, he anticipates
that Congress will adopt the plan. |