Tuesday, January 23, 2007

Finally: Energy Policy To The Forefront




A much-needed debate on our national energy policy is finally moving into full-swing. The discussion promises to be messy, and of course, political. Some good is bound to come out of it.




A large majority of Americans are now convinced that global warming is real, that it's a threat, and that it's caused, at least in significant part, by human activity. That belief will no doubt be reinforced in a couple of weeks when the Intergovernmental Panel on Climate Change, an international body of experts, issues its Fourth Assessment Report on global warming. This will be the IPCC's first comprehensive report since 2001, and advance chatter suggests it will ring the bell loudly for increased evidence of faster than expected global warming and its adverse effects. (See, e.g., Global Warming, The Final Verdict, in Sunday's UK Observer.)




Many states, frustrated with the Bush administration's complete lack of focus on the problem, have already started pushing policies to reduce carbon emissions. That, in turn, has prompted industry--which prefers uniform federal policies to a hodge-podge of conflicting state and local laws--to begin agitating for a comprehensive national policy.




Likewise, the new Congress includes many Democrats who are fervent about the need to address global warming, as well as issues of energy independence (as we've recently pointed out, these are two different issues that require different, but overlapping, policies). Clearly, however, while there is an emerging consensus that something needs to be done (even Bush the denier will supposedly fess up to the need in his State of the Union address tonight), there is a raging debate about HOW to do it.




Bush will probably pay only lip service to the issue of global warming--he'll say we need to do something, but he won't propose anything meaningful. Kind of like when he said we were addicted to oil and should raise corporate average fuel economy targets, but then never submitted any legislation to do so.




Industry is increasingly getting in on the debate. Yesterday, a diverse group of utilities and manufacturers, led by General Electric, urged Congress to implement a "cap and trade" program, whereby businesses would have their carbon emissions capped, and then would have to meet targets for reducing emissions, either by installing new technology, or by purchasing emission credits from other more efficient businesses. (See CEO's Urge Bush To Limit Greenhouse Emissions.) [Actually, the CEO's are urging Congress to act--they realize Bush is pretty marginal at this point.]




Of course, other businesses have different views on the issue, all depending on the types and amounts of energy they currently use. For example, the steel industry, which is a big carbon emitter, opposes caps on the ground that it will just help foreign manufacturers who are not subject to such caps (there are ways to level that playing field, however). Since different Democrats are beholden to different industries and the unions employed by those industries, they are having a hard time coming up with a unified strategy. (See Internal Rifts Cloud Democrats' Opportunity on Warming).




One good sign: editorial pages are devoting significant column space to the debate now that pretty much everyone has had a chance to denounce Bush's Iraq surge plan. For example, today's WSJ has an op-ed piece from energy expert Daniel Yergin on "Energy Independence" pointing out just how far we are from achieving such a goal, and another piece from venture capitalist Vinod Khosia ("The War on Oil") making the point that we've already gone about as far as we can with corn-based ethanol, but promoting cellulosic biofuels as the wave of the future.




We can't imagine that a great piece of legislation is going to come out of all this, but we can hope for at least a decent start. Big Oil is likely to be the initial big loser, while just about everyone else will, at least in the short term, get a bag of goodies from Congress, whether they deserve it or not. (E.g., powerful House Energy Committee Chairman John Conyers will make sure the Big Three automakers get showered with subsidies to develop next generation cars that they should've already developed on their own.)




The ultimate goal, however, should be a strong cap and trade system, which ultimately leaves to businesses the best way to lower their emissions while unleashing powerful market forces to drive the most promising technologies forward. That, combined with elimination of tax breaks and subsidies for oil, natural gas and coal should go a long way to getting the U.S. headed in the right direction.

1 comment:

Anonymous said...

MANDATORY RENEWABLE ENERGY – THE ENERGY EVOLUTION –R10

In order to insure energy and economic independence as well as better economic growth without being blackmailed by foreign countries, our country, the United States of America’s Utilization of Energy sources must change.
"Energy drives our entire economy." We must protect it. "Let's face it, without energy the whole economy and economic society we have set up would come to a halt. So you want to have control over such an important resource that you need for your society and your economy." The American way of life is not negotiable.
Our continued dependence on fossil fuels could and will lead to catastrophic consequences.

The federal, state and local government should implement a mandatory renewable energy installation program for residential and commercial property on new construction and remodeling projects with the use of energy efficient material, mechanical systems, appliances, lighting, etc. The source of energy must by renewable energy such as Solar-Photovoltaic, Geothermal, Wind, Biofuels, etc. including utilizing water from lakes, rivers and oceans to circulate in cooling towers to produce air conditioning and the utilization of proper landscaping to reduce energy consumption. (Sales tax on renewable energy products should be reduced or eliminated)

The implementation of mandatory renewable energy could be done on a gradual scale over the next 10 years. At the end of the 10 year period all construction and energy use in the structures throughout the United States must be 100% powered by renewable energy. (This can be done by amending building code)

In addition, the governments must impose laws, rules and regulations whereby the utility companies must comply with a fair “NET METERING” (the buying of excess generation from the consumer at market price), including the promotion of research and production of “renewable energy technology” with various long term incentives and grants. The various foundations in existence should be used to contribute to this cause.

A mandatory time table should also be established for the automobile industry to gradually produce an automobile powered by renewable energy. The American automobile industry is surely capable of accomplishing this task. As an inducement to buy hybrid automobiles (sales tax should be reduced or eliminated on American manufactured automobiles).

This is a way to expedite our energy independence and economic growth. (This will also create a substantial amount of new jobs). It will take maximum effort and a relentless pursuit of the private, commercial and industrial government sectors commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) (rainwater harvesting) (energy and natural resources conservation) in order to achieve our energy independence.

"To succeed, you have to believe in something with such a passion that it becomes a reality."

Jay Draiman, Energy Consultant
Northridge, CA. 91325
Jan. 23, 2007

P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.
I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.
The American people resilience and determination to retain the way of life is unconquerable and we as a nation will succeed in this endeavor of Energy Independence.

Solar energy is the source of all energy on the earth (excepting volcanic geothermal). Wind, wave and fossil fuels all get their energy from the sun. Fossil fuels are only a battery which will eventually run out. The sooner we can exploit all forms of Solar energy (cost effectively or not against dubiously cheap FFs) the better off we will all be. If the battery runs out first, the survivors will all be living like in the 18th century again.

Every new home built should come with a solar package. A 1.5 kW per bedroom is a good rule of thumb. The formula 1.5 X's 5 hrs per day X's 30 days will produce about 225 kWh per bedroom monthly. This peak production period will offset 17 to 24 cents per kWh with a potential of $160 per month or about $60,000 over the 30-year mortgage period for a three-bedroom home. It is economically feasible at the current energy price and the interest portion of the loan is deductible. Why not?

Title 24 has been mandated forcing developers to build energy efficient homes. Their bull-headedness put them in that position and now they see that Title 24 works with little added cost. Solar should also be mandated and if the developer designs a home that solar is impossible to do then they should pay an equivalent mitigation fee allowing others to put solar on in place of their negligence.

Installing renewable energy system on your home or business increases the value of the property and provides a marketing advantage.

Nations of the world should unite and join together in a cohesive effort to develop and implement MANDATORY RENEWABLE ENERGY for the sake of humankind and future generations.