Energy Legislation at Last?

Bill Georgevich reporting

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Despite many efforts to pass an energy package, Congress adjourned for summer recess gridlocked and empty-handed. Partisan compromise is essential if we will ever see any real energy legislation. Republicans must give up oil industry tax breaks and Democrats need to budge on the offshore drilling ban. A bi-partisan group of 10 Senators, days before adjourning last month for summer recess, wrote a compromise bill that does just that.

The New Energy Reform Act of 2008 was written in response to the months-long Senate deadlock on energy legislation. The legislation, which could be considered when Congress returns in September, includes limited offshore drilling with increased investment in new energy technologies. A portion of the finding for renewables would come from taking back tax breaks from the oil industry. The bill also sets a goal of fueling 85 percent of the country's automobiles with alternatives to oil within 20 years.

The upside:

• co-sponsored by a bi-partisan group committed to breaking the energy legislation gridlock in Congress
• closes tax loopholes for the oil industry
• maintains the ban on offshore drilling in California
• extends renewable energy tax incentives that will expire in December
• invests $20 billion for the conversion of cars and trucks to non-oil fuel sources
• garnering wide support from liberal democrats, moderates, and Republicans

The downside:

• permits offshore drilling in parts of the Gulf of Mexico and the east coast (by states' consent)
• recycling of spent nuclear fuel

Given the many bones of contention between the two parties, it is imperative to accept that a compromise coming from both sides of the aisle is the only solution to the impasse. Republicans need to give in on oil industry tax loopholes so that the renewable energy tax credits can be paid for. Democrats need to budge on their intractable stance on offshore drilling.

This bill was written just before Congress adjourned in early August. We hope that our Senators give serious attention to this bill when they return on September 4.

Countdown to Energy Reform

Bill Georgevich reporting

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This week we begin our Countdown to Energy Reform. While Congress enjoys their August recess, many Americans are wondering, where are the solutions to our energy issues? Despite multiple efforts to pass energy legislation, the Senate has been intractably gridlocked. Time is running out. Essential renewable energy tax credits will expire in December. Join us in our weekly call to action as we contact our vacationing Senators every week until they reconvene in September. This week: send a letter to Senators Obama and McCain.

Congress went on recess in early August without passing any energy legislation. Despite multiple efforts, both the House and Senate danced around the crucial issues of gas prices, offshore drilling, oil-market speculation, and the clean energy tax credits that are expiring in December.

The clean energy tax credits are especially important, because as December draws nearer, more and more investors in various renewable energy projects are getting cold feet. Many have pulled out entirely or are threatening to do so if the extension doesn't happen. Failure to renew these tax credits will be disastrous for our country and the steady momentum towards clean energy that has been taking hold.

Obama and McCain have remained rather detached in Senate activities related to renewable energy legislation. Both were among only a few to abstain on a vote to get a bill that would renew clean energy tax credits on the floor for debate. And both have shown some allegiance to the big oil industry that so handsomely finances their presidential campaigns. In 2005, Obama voted for an energy bill backed by Bush that included billions in subsidies for oil and natural gas production. In June of this year, in the weeks following McCain's embrace of offshore oil drilling, contributions from the oil and gas industry poured in ($1 million, in fact, compared to $116 K in March, $283 K in April and $208 K in May).

When the Senate reconvenes on September 4, they will be greeted with a new, bi-partisan energy bill, the first to offer a compromise to the wide philosophical and political schism that has prevented any passage of renewable energy tax credits. The New Energy Reform Act of 2008 is very promising, and couldn't come a moment too soon.

Obama has shown support of the bill, in recognition of the hope that it will end "partisan gridlock and special interest influence" and bring to the Senate "a good faith effort at a new bipartisan beginning."

McCain has remained very quiet about the bill, but most likely will not support it, for at least 2 reasons: one, the bill will take away subsidies for the oil and gas industry, which McCain adamantly wants to keep in place; and two, the bill allows for very limited offshore oil drilling (none at all off the California coast). Learn more about the bill here.

And if you haven't already, we invite you again to send a letter to Senators Obama and McCain on the very important and timely matter of energy policy.

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Turning Oil Fields into Wind Farms

Melanie Pahlmann reporting

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An unlikely Texas oilman – none other than the legendary T. Boone Pickens -- has announced plans to build the biggest wind farm in the world. His $10 billion dollar project will produce enough electricity to power an entire city. To date, he has put $2 billion into the project, including a record purchase of nearly 700 wind turbines from General Electric. He expects to begin generating electricity in 2011.

Pickens is not the only Texan to recognize the virtues of wind as an energy source. In recent years the oil capital of North America has emerged as the country's largest producer of wind power. In the little town of Sweetwater, up in the Texas Panhandle, wind turbines are going up at a rate of three to four a day. Some say the number of turbines in Sweetwater could top out eventually around 20,000.

Nearby Nolan County, if it were a country unto itself, would rank sixth on a list of wind-energy-producing nations in the world. It currently produces more wind-generated electricity in a year than all of California. Click on the graph for a fascinating state by state comparison of wind power.

Pickens is quick to note that "there could be lots of Sweetwaters out there," especially through the Midwest corridor stretching from Texas to North Dakota, where big wind and lots of empty space are ideal for wind power generation. Pickens envisions wind as a vital component of an energy plan for the U.S. His newly unveiled Pickens Plan declares that America can cut it's foreign oil needs by more than a third in less than a decade.

The sentiment behind his bold plan is this: "America is in a hole and it's getting deeper every day. We import 70% of our oil at a cost of $700 billion a year - four times the annual cost of the Iraq war. I've been an oil man all my life, but this is one emergency we can't drill our way out of. But if we create a new renewable energy network, we can break our addiction to foreign oil."

So great is Pickens' concern, he has launched a massive information campaign in print and on the web. His intention is to infuse the country's foreign-oil-dependence mania with a business-like pragmatism, replete with numbers, goals, targets and what he says is a realistic strategy. He's also hoping to prod our politicians into meaningful, results-oriented dialogue. "Neither presidential candidate is talking about solving the oil problem," he says. "So we're going to make 'em talk about it."

Ironic, really, that it might take an oil tycoon to nudge us toward a renewable energy policy.

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The Greening of Google

Melanie Pahlmann reporting

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The Google guys are making good on promises to invest millions of dollars in renewable energy. The computer giant just announced that their philanthropic arm, Google.org, will invest $20 million in the next year on renewable energy research.

Their goal is to become a massive force behind the creation of a greener grid, one that will effectively – and quickly – replace the use of coal, which is cheap, plentiful, and the favorite energy source for many states.

Over at Google.org you will see details of the two clean energy programs they're investing in. One they playfully call Renewable Energy "less than" Coal, whose simple aim is develop a 100% renewable energy electricity generation facility that produces 1 gigawatt of energy at a cost below the same amount of electricity produced from coal. In case you're wondering, 1 gigawatt could power a city the size of San Francisco.

For this project, their renewables of choice are solar thermal, wind, and geothermal. Google co-founder Larry Page is particularly fond of solar thermal, and spearheaded the 1.6 megawatt solar installation at their corporate headquarters in Mountain View, CA. (which, despite their certainly altruistic intentions, will earn back its investment in just over 7 years). It is impressive to note that energy produced from their little 1.6 megawatt solar plant has enabled them to reduce their energy consumption from the local grid by 30%.

In the first half of 2008, Google.org gave over $85 million in grants and investments to a variety of research groups and clean energy development companies. $20 million of this has gone directly to the RE less than C project. The remaining is going to projects like their RechargeIT plug-in car development program, Predict and Prevent program, Inform and Empower to Improve Public Services program, and the Fuel the Growth of Small and Medium-Sized Enterprises.

Learn more about their Herculean efforts at Google.org.

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Driving on Air

Melanie Pahlmann reporting

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India's largest automaker has just unveiled a zero-emission air-powered car, affectionately called the CityCAT. This impressive car is powered entirely from compressed air, and can reach speeds of 68 mph. One tank of air will yield 125 miles of driving and cost only about $2. The price tag is starts at $7000, and the first models will be rolling off production lines late this summer.

The air car will get about 120 mpg on the highway and, oddly, even more in the city, due to its piston design. Filling the tank will be relatively simple (a problem for hydrogen cars). Any air compressor will do, and alternatively, an on-board compressor can be plugged in to an electric outlet. Because it's a non-combustion engine, owners will change the oil (1 litre of vegetable oil) every 30,000 miles.

The CityCAT air car is the brain child of Guy Nègre, who has engineered Formula One racing cars. The Indian automaker Tata Motors, known for its innovative and earth-friendly vehicles, has partnered with Nègre to mass produce the CityCAT. Nègre has signed deals to bring the car to 12 other countries, including Germany, South Africa, Spain, France and Israel.

Will we see the car anytime soon in America? Very probably not, says auto industry insiders. Even if the automotive and oil lobbyists approved the idea, the air car's small, lightweight fiberglass body (which is literally glued together) would not fare well on American streets.

But the U.S. may be ready for one of Nègre's future zero-emission car designs, which he is already furiously pursuing.

Learn more about Guy Nègre.
Visit the Air Car web site.

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Tax Credit Tango

Bill Georgevich

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The senate last week blocked a vote on the extension of renewable energy tax credits, which expire December 31. These tax incentives make it possible for thousands of homeowners to install solar panels & has inspired big investment in dozens of clean energy power plants. But if Congress fails to extend the credits, most of theses renewable power projects are in danger of being abandoned.

When I moved to Santa Fe, New Mexico 30 years ago, new home construction was all on fire about passive solar heating, solar waters heaters, & “living off the grid” with batteries & Photovoltaic solar electric panels -- all in response to the first “energy crisis”.

Everywhere there were tromb wall homes that cooled homes during the day & warmed them with stored heat at night. Every house had a solar water heater. My house had a solar water heater with a 90 gallon tank. I had so much hot water from the sun, that even if the daytime temperature was below freezing, I could take a hot bath in my enormous soaking tub. All this was possible because of the federal tax credits that gave home builders the incentive to build renewable.

Now speculators have driven up oil prices to frightening levels again in 2008 & despite broad bipartisan support for renewable energy tax credits, Democrats and Republicans are arguing about how to finance them. There are currently 22 major solar power plants in various stages of planning around the country, but all have been implemented on the assumption Congress would extend the renewable energy tax incentives.

The discontinuation of these tax credits will "result in the loss of billions of dollars in new investments in solar," says Rhone Resch, president of the Solar Energy Industries Association. How can it be that we can’t even keep the old programs that promote renewable energy when we should be implementing additional new ones? If you as outraged as we are, here is what you can do:

Learn about the Energy Independence and Tax Relief Act of 2008, Senate bill #S.3125.

Tell others about it and to take action by calling or emailing your Congressional Representative. Ask them to extend the renewable energy tax credit. You can find your Congressperson's contact information here. You can also reach the office of your Representative and Senator through the Capitol Switchboard at 202-225-3121.

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The Arizona Desert Goes Green

Melanie Pahlmann reporting

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The Arizona desert is one of the hottest and sunniest places on earth, so it was only a matter of time before solar energy technology would make its way there.

In early 2009, a Spanish solar power company will break ground outside the little town of Gila Bend, southwest of Phoenix, to build what will be the world's largest solar power plant. At maximum capacity, the Solana Power Plant will supply at least 70,000 households.

Abengoa Solar, which has built plants in Spain, northern Africa and other parts of the U.S. – will own and operate the $1 billion plant. Arizona Public Service, the state's largest utility, will pay Abengoa $4 billion over 30 years for the energy produced.

The deal has been forged, but there's one possible glitch: The plant hinges on an extension of the federal solar investment tax credit, due to expire at the end of this year. APS and Abengoa said they're confident that this won't derail the project. Perhaps they know something we don't. To date, we have no news on where Congress currently stands on the issue. New York Times columnist Thomas Friedman, is not feeling particularly positive about it, as he notes in an Op-Ed piece from April 30, 2008:

Few Americans know it, but for almost a year now, Congress has been bickering over whether and how to renew the investment tax credit to stimulate investment in solar energy and the production tax credit to encourage investment in wind energy. The bickering has been so poisonous that when Congress passed the 2007 energy bill last December, it failed to extend any stimulus for wind and solar energy production. Oil and gas kept all their credits, but those for wind and solar have been left to expire this December. I am not making this up. At a time when we should be throwing everything into clean power innovation, we are squabbling over pennies.

If you feel concerned, there is something you can do to help save the federal solar investment tax credit. Call or email your Representative and both Senators and ask them to urge House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid to keep the ITC extension in the Energy Bill.

To locate your Representative and Senators' Washington phone number, go to this web address and type in your zip code:
http://www.congress.org/congressorg/directory/congdir.tt

You can also reach your Representative and Senators' offices through the Capitol Switchboard at 202-225-3121.

To learn more about the ITC, visit:

The Green Counsel Blog
Congress.org - details on Bill # S.3125

And here is a 4 minute video about the Solana Power Plant. Gives you a sense of its immense size. Click on this link to see the video:

Solana Power Plant video

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