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 As Vice President of Energy & Security Services at Lockheed Martin Enterprise Solutions & Services, Thomas Grumbly is responsible for the Corporation’s Energy Services practice and significant portions of its Homeland Security practice. He has held a series of leadership positions in the private sector, with nonprofit organizations, and in the federal government during his more than 30 years of experience. Most recently, he was President and Chief Executive Officer of The Keystone Center, a nonprofit public-policy group dedicated to energy and the environment. Formerly, he was Executive Vice President of ICF Kaiser, where he was responsible for the government and environmental practice. He has also served as Staff Director for the Science and Technology Committee of the U.S. House of Representatives, and held senior policy roles in the Office of Management and Budget and the U.S. Department of Agriculture.
Grumbly’s most recent public service was at the U.S. Department Energy. Beginning in 1993, he served as the Assistant Secretary for Environmental Management and was responsible for dealing with the cold war legacy of special nuclear material and nuclear waste. Subsequently, in 1996-1997, he served as the Under Secretary of the Department of Energy, where he had total responsibility for the health, safety and environment functions of the Department, as well as its efforts in nuclear energy.
Tom holds a Bachelor of Arts from Cornell University, Masters Degrees from the University of Toronto and the University of California at Berkeley. He is a member of the Board of the Alliance to Save Energy and the Board of Visitors of the University of California at Berkeley. He has authored numerous articles on public and environmental policy.
An Alliance to Save Energy Associate, Lockheed Martin is one of the nation’s largest implementers of energy efficiency programs for utility customers. Headquartered in Bethesda, MD, Lockheed Martin employs aproximately 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation reported 2007 sales of $41.9 billion.
Alliance to Save Energy: Prior to your career in the private sector, you held the position of Assistant Secretary for Environmental Management at the Department of Energy. How far has the conversation about energy and the environment changed course since then? In your opinion, are we headed in the right direction?
Tom Grumbly: When I started at the Department of Energy, energy and the environment were not connected – policy goals for one were often at odds with the other. Environmental protection was seen as a constraint on the energy market. This was in the era of cheap oil, and there was a perception that the energy sector was not interested in environmental protection. Fortunately, over the past decade, we have seen a rapid convergence where energy and the environment are charting a similar course. Energy policy today is intimately tied to reducing carbon emissions and protecting the environment. Of course, there are still challenges, but the biggest change since my time at DOE is that, for the most part, the public and private sectors are headed in the right direction to solve the energy and environmental needs of the nation.
Alliance: Based on your experience in both the private and public sectors, what can you say about leadership in our country’s energy future? Which of these sectors is better prepared to make the big investments in energy efficiency, renewable energy, etc.? How can they work together?
Grumbly: Each sector has a role to play in laying the groundwork for a more reliable, affordable and abundant energy supply. A productive public/private partnership is the only way for this to happen. For instance, there’s no question that the private sector is prepared to make investments in the energy grid, but not without guidance and incentives from the public sector. Public and private sector leaders need to sit down and figure out the right areas for private sector investment that will drive change and progress. And the public sector needs to set the policy framework under which the private sector can respond.
In terms of leadership on energy, there seems to be a broad consensus in Washington that action is needed despite the recent decrease in prices. This will buck the trend of policy makers focusing on energy solutions when prices are high and then moving on to other issues when prices drop. President-elect Obama described it as a pattern of going from “shock to trance” and because of that, he said, “we never make any progress. It’s part of the [oil] addiction that has to be broken. Now is the time to break it.” I couldn’t agree more.
Alliance: Primarily known as a government contractor specializing in defense projects, Lockheed Martin also provides energy efficiency services to investor-owned utilities and state organizations. Why has your business moved in this direction? Are you responding to a need in the marketplace?
Grumbly: We think there’s a great fit between our strengths and the needs of the energy industry. Lockheed is one of the premier high-technology and project management companies in the world, and we’re one of the largest employers of engineers in the country. These assets are critical to addressing some of the challenges facing the energy industry. We’ve also supported federal energy customers for decades, so our work in the energy industry is a natural extension of our past experience and our expertise.
Alliance: What kind of projects is Lockheed Martin working on in which energy efficiency is a main component?
Grumbly: We’re one of the largest managers of energy efficiency programs in the country. We’re working with utilities such as PG&E, SoCal Edison and AmerenUE, and state groups such as The Energy Trust of Oregon and NYSERDA to design, implement and run programs that help energy users increase their energy efficiency. To take one example: within PG&E’s heavy industry energy efficiency program, we handled a heat recovery retrofit project at a paper mill that will save 2.7 million therms of natural gas this year. This will eliminate more than 15,700 tons of CO2 emissions annually – equivalent to removing nearly 2,200 cars from the road. All across the country, efficiency programs are producing some tangible and impressive results.
Alliance: As we enter 2009 with new leadership in both Congress and the Administration, people on the Hill are talking about a new energy bill. What, in your opinion, are a few essential issues that need to be addressed in this bill in order for this country to overcome its current energy challenges?
Grumbly: First and foremost, policy makers will have to focus on formulating an overall energy policy that is based on decreasing carbon dioxide emissions. Making this work legislatively will be an uphill battle. But we have to come to grips with solving the carbon challenge – the challenge of the century. In any legislation, federal encouragement is needed for energy efficiency through expanded tax credits and higher standards for efficiency, as well as a significant increase in R&D funding. And our electric grid is too old and too vulnerable. Not only does the current grid hamstring plans to increase reliance on renewable energy, it’s a serious national security threat. Modernizing the grid is long overdue.
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