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Weekly UpdatesIn July 2008, Volkswagen announced a $1 billion investment in Tennessee with the selection of Chattanooga for its new plant. Among the vehicles to be manufactured will be a hybrid. The Volkswagen announcement came only days after Toyota said that it will produce the hybrid Prius instead of light trucks at its Blue Springs Plant near Tupelo, Mississippi.
The announcements by Toyota and Volkswagen follow a turbulent year for automakers due to higher fuel prices which have strained the national and state economies. The move toward energy-efficient fuel sources is a "sign of the times" as gas prices continue to soar to record high levels. However, Tennessee is ahead of the curve when it comes to green energy initiatives as we move into a new era of ever-increasing demands on our resources.
I am pleased to see that such vehicles will be more readily available and "Made in Tennessee." Earlier this year, I passed legislation to allow hybrids in High Occupancy Vehicle (HOV) lanes. The new law allows hybrids and other lowe-mission, energy-efficient vehicles to travel in Tennessee's HOV lanes, regardless of the number of passengers. This produces two desirable results. It will reduce traffic congestion for all using existing resources while encouraging energy efficiency.
Until recently, federal guidelines precluded Tennessee from allowing vehicles other than those with multiple occupants in our HOV lanes. Under the new law, which goes into effect January 1, 2009, owners of qualified vehicles may apply for an identifying decal from the Department of Revenue that would allow them to travel in the HOV lanes. This allows us to put wasted pavement to work which, by itself, will help reduce fuel costs for motorists.
Committed to Environmental Sustainability
Even beyond fuel efficiency, both Volkswagen and Toyota say their new plants will be committed to environmental sustainability. Volkswagen even cited their choice of Tennessee because of the local commitment to environmental responsibility. Chattanooga has billed itself as a tourist attraction over the past two decades. Once among the most polluted cities in the U.S., Chattanooga has worked very hard to clean up the city and its industries and take advantage of the area's natural beauty to draw tourists.
"The company's focus on sustainable mobility and environmentally responsible manufacturing is right in line with Chattanooga's strong environmental commitment," the company said upon announcing the plant had chosen the state for its new facility. As an expression of its shared commitment, the state, Volkswagen, and Chattanooga organizations are partnering to distribute two saplings for every tree displaced by the project to be planted by area students.
Toyota has also said that the Blue Springs facility will be one of four production facilities worldwide that they have designated as models for environmentally sustainable plants. The facility will include machines with smaller motors that use less energy, shorter conveyor lines, line-side recycling, energy-efficient lighting, and other potential energy-saving features. Toyota also plans to reduce C[O.sub.2] levels by using renewable energy, including biomass and natural energy sources, such as solar and wind power. This state-of-the-art technology will minimize the use of water, electricity, and natural gas.
The Volkswagen plant will bring about 2,000 direct jobs to Tennessee. It will also add a significant number of jobs in related sectors. Our state will reap great benefits from this facility and the other suppliers that will come to Tennessee as a result of this significant investment. The Toyota plant is expected to hire 500 workers. Both facilities are expected to be complete by 2010.
Tennessee Makes Large Investment in a Comprehensive Alternative Fuels Strategy
Advancement in the energy efficient automobile production industry, however, is only one of the many initiatives taking place in the state as we move toward new energy solutions In last year's budget, our General Assembly provided a $72.6 million investment to fund a comprehensive alternative fuels initiative. The initiative included $10 million for additional research into switchgrass, a non-food alternative fuel source.
Scientists at Oak Ridge National Laboratory (ORNL) and the University of Tennessee Institute for Agriculture have developed ethanol from switchgrass, a crop that can be grown virtually anywhere in Tennessee. Experts maintain that our state has the right climate and conditions to grow large quantities of this product. Tennessee has the advantage of having the necessary scientific and research communities available in our universities and laboratories that are required to help us maximize its potential.
Other funds provided in this alternative fuel initiative included $3 million for research for non-biomass alternative fuel sources, $8 million in agricultural incentives for farmers $11.6 million for the Joint Institute for Biological Sciences at ORNL, and $40 million to build a University of Tennessee Biofuels Center. The U.S. Department of Energy has also invested in this project with a grant of $26 million to assist in building a demonstration plant.
In July 2008, it was announced that Tennessee Biofuels will partner with DuPont Danisco Cellulosic Ethanol LLC to construct a pilot-scale biorefinery and state-of-the-art research and development facility for cellulosic ethanol. Tennessee will process two non-food feedstocks, corncobs and switchgrass, for use in this facility. The plant capacity will be 250,000 gallons of cellulosic ethanol annually. Site preparations are scheduled to begin this fall, and ethanol should be available from the pilot plant by December 2009.
The pilot plant will initially process West Tennessee corn cobs to ethanol and then will optimize its technology for switchgrass to ethanol conversion when the first plantings come mature in 2010. Research officials maintain that Tennessee-produced "grassoline" and other biomass could supply approximately 25 percent of the state's transportation fuel needs at a production cost of less than $1.50 per gallon in the future.
Other State Legislative Initiatives Call for Energy Efficiency
The state has made fuel efficiency adjustments in other ways, too. In 2007, we passed legislation that requires at least 30 percent of the motor vehicles purchased for the state fleet each fiscal year be energy efficient. A separate bill passed last year required that state agencies, universities, and community colleges develop and initiate implementation of plans to reduce motor vehicle fleet use of petroleum products by 20 percent beginning in January 2009.
We passed another bill in the 105th General Assembly that requires the Comptroller of the Treasury to undertake a performance audit of agencies and departments to assure they are following energy-saving policies. These legislative initiatives should help us deal with the rising cost of gasoline and utilities within state government.
On a more comprehensive level, we authorized Governor Phil Bredesen in cooperation with the Tennessee Regulatory Authority, Department of Agriculture, Department of Economic and Community Development, and Department of Environment and Conservation to form an energy efficiency plan for this state. The governor has also established by an Executive order the Governor's Task Force on Energy Policy and charged it with developing a state energy plan.
To help local governments keep up with rising energy costs, we voted to use a portion of excess lottery funds to establish an "Energy Efficient Schools Program" to help schools save money on utility bills. The new law partners the state with TVA, Oak Ridge Laboratory, and other energy experts who will guide schools in energy-saving options. The program is expected to result in a savings of 18.5 percent on energy bills if the schools implement the upgrades and utilize best practices for energy conservation. This will save an estimated $29 million in energy costs for Tennessee schools annually. It will enable our local schools to put more money inside the classrooms where it really counts rather than into rising utility costs.
These are a few of the energy initiatives that Tennessee is working on as a result of legislative action over the past two years. Any of them alone are simply small pieces of a larger puzzle of solutions to help meet our state's energy needs and conserve our resources. All of them together give us a clearer picture of the route we need to take in this new era of increasing demands on energy resources worldwide.
We have made considerable progress moving towards energy efficiency both in the public and private sectors in Tennessee. This forward planning will help us meet ever-increasing energy costs and puts us ahead of the curve among the states as we strive toward energy independence.
Special thanks to Darlene Schlicher, Senate Republican Press Secretary
by Tennessee Senate Majority Leader Mark Norris
Senator Mark Norris was elected Majority Leader of the Tennessee Senate on January 10, 2007. He served as Chairman of the Senate Republican Caucus in 2006 and was the first chairman to serve from West Tennessee since 1982.
Norris was first elected to the State Senate in 2000 as a Republican from rural Shelby County. He represents District 32, which includes Dyer, Lauderdale, Tipton, and Shelby counties. He was reelected by a wide margin in 2004 and is the first Republican in state history elected to represent Dyer County in the Tennessee General Assembly.
Norris served as Chairman of the Senate Transportation Committee from January 2005 to January 2007. During that time, he presided over the adoption of the state's first long-range transportation plan and the creation of rural transportation planning organizations for grassroots initiatives to meet the needs of local citizens. He led the fight to stop the annual diversion of taxpayers' money from the state's transportation trust fund to the general fund. He successfully increased funding for public transportation from existing revenues and was recognized by the Tennessee Public Transportation Association as 2006 Tennessee Legislator of the Year. Norris was also responsible for conducting legislative hearings into alleged improprieties at the Tennessee Highway Patrol, which ultimately led to the resignations of high-ranking administration officials, including the former Commissioner of Safety and the top officer in the Highway Patrol.
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