Printable Version Tell a friend

Power Fund plan heads in right direction

(Des Moines Register Editorial)If you had $100 million to spend to keep Iowa on the cutting edge of renewable energy, how would you spend it? Gov. Chet Culver's staff announced Friday how the governor would answer: In short, he would appoint a committee of experts to decide.

Although that may sound like passing the buck, it's actually a reasonable answer.

Culver made a $100 million "Power Fund" a centerpiece of his campaign, saying Iowa is uniquely positioned to exploit its agricultural assets and expertise to become energy independent and boost the state's economy. Given the pace of change in the alternative-energy field, however, there is no way the Legislature could write legislation this year that could accurately predict where best to invest that money. Thus, Culver's plan is to create a nine-member Iowa Power Fund Partnership Council to dole out the money in $25 million increments over four years, largely to support research and development of renewable energy.

There is some question whether pumping taxpayers' money into the renewable-fuels industry is necessary at this point, given the proven rewards in the marketplace. The federal government is beginning to write big checks for R & D, and, compared to what some other states can afford to spend, Iowa's $25 million a year seems like a pittance.

The reality is no state can afford to sit on the sidelines. If Iowa intends to stay in the game, it's essential that whatever it spends is targeted where it will have the greatest impact.

That reality is reflected in the governor's proposal to the Legislature, which begins with the premise that corn-based ethanol is a "mature" industry, and that Iowa must move to the next level to spur development of alternative fuels. No one knows for sure what that might be, so it makes sense to leave the decision to a group of experts with the flexibility to adapt over time. Those experts should be able to target money where it would do the most good, whether for research at the state universities or laboratories in the private sector.

Culver's proposed Power Fund Partnership Council would consist of three state officials (the Utilities Board chair, Department of Economic Development director and Department of Natural Resources director) and six members appointed by the governor with expertise in renewable energy, biofuels technology and economic development. The council would be part of the Office of Renewable Energy in the governor's office, run by an executive director who would also be the state's point person on statewide energy conservation.

Culver's Power Fund initiative is one way to maintain Iowa's leading role in alternative energy, but it's just a beginning: Iowa will have to do more - including leveraging federal and private money and creating the best research institutions in the world - to maintain that lead. The Legislature should move in that direction.