Green Election Issues 101: Energy Costs
August 29, 2008
The cost of oil peaked above $140 a barrel this summer, nearly double the price of a year earlier and 40% higher than worst-case scenarios discussed just months earlier. Gas prices followed suit, going well above $4 a gallon during peak driving season and sending drivers, carmakers and politicians into fits. Heating oil prices started climbing to record levels months before heating season.
The cost of coal, too, tripled in about a year’s time, leading electric power producers — who produce 50% of U.S. electricity by burning coal — to raise rates. Natural gas, also a major source of U.S. electricity, doubled in a year’s time before plummeting in July.
The increase in the price of energy, largely due to the global nature of the market and rising demand in China, India and other nations, has led to the first significant reductions in vehicle miles traveled, large cars bought and homes renovated for efficiency in a generation. As painful as higher prices are, some argue that they are precisely what the Untied States needs to embrace more efficient and alternative technologies that cost more up front, but pay themselves off by using less energy over time.
What’s a President to Do?
Most experts answer, when it comes to gas prices, “not much.” At least, not in the short term. Today’s president can often have more influence on energy prices a decade from now than prices next month.
Sen. John McCain’s Position on Energy Costs
John McCain tops his agenda with expanding domestic production of oil and natural gas, though experts criticize the idea because it would have no effect on prices for about a decade, and then only a small one. He would offer a $5,000 tax break to those who buy zero-carbon vehicles, which don’t now exist (McCain is counting on a hefty tax credit to create an incentive for carmakers to develop such cars) and a $300 million prize for anyone who develops a battery good enough to make electric cars feasible. He’d eliminate the 54-cent-a-gallon tariff on imported ethanol, which experts say would have a modest effect on price. He opposes a windfall profits tax on oil companies, which could presumably mean oil companies might pass record profits on to consumers in the form of lower prices, not that they’ve ever done that before.
McCain would focus on improving the energy efficiency of the federal government, the largest single power user in the U.S., which would save taxpayers some on energy costs and could drive down price by slackening demand. He would also try to deploy “SmartMeters” in households so individuals can better monitor their energy consumption and its cost, with the goal of inspiring people to use and spend less. He would create predictable tax incentives for wind, solar and other renewable energy sources, thereby decreasing dependence on volatile fossil fuels.
Sen. Barack Obama’s Position on Energy Costs
Obama would also enact a windfall profits tax on oil companies and use the money to give families a $1,000 “Emergency Energy Rebate.” By investing in plug-in hybrid cars and boosting fuel economy, he would aim to reduce oil imports — and fuel consumed — dramatically through increasing efficiency. He would also take expensive grades of oil stored in the Strategic Petroleum Reserve and swap it for cheaper grades, a scheme many experts have dismissed as pandering.
Obama has pledged to spend money generated by a cap-and-trade regulation designed to lower carbon emissions on projects to boost home energy efficiency, and to provide credits to people struggling to pay higher electricity bills. He would require local utilities to derive 25% of energy from renewable sources by 2025, thereby decreasing reliance on volatile fossil fuels. His $150 billion energy plan aims to transform the way America uses energy, which would no doubt cost more in the short term, but would likely cost much less than the status quo in the long term.
Let us know your thoughts? Email george@hbsadvantage.com
The Shape of Solar to Come
August 22, 2008
Came upon this interesting article in Huffington Post published by Treehugger. It presents a preview of solar market innovations we will be seeing in the future. Click on the link provided below. Enjoy!
http://www.treehugger.com/files/2008/08/15-solar-power-panels-cells-energy-innovations.php
Should you want to know more about solar opportunities in NJ & PA email george@hbsadvantage.com you may also visit us on the web www.hutchinsonbusinesssolutions.com
Reversing Churchill’s Blunder
August 21, 2008
As reported in Huffington Post
Written by Carl Pope
Churchill’s blunder” is how Utah Governor Jon Huntsman, Jr. characterizes our dependence and addiction to oil, tracing it back to Winston Churchill’s decision before the First World War to convert the British navy to petroleum, thereby making Britain dependent on foreign sources of fuel such as Iran. Huntsman made the analogy at the National Clean Energy Summit in Las Vegas convened by Senate Majority Leader Harry Reid and the Center for American Progress at the University of Nevada.
The overarching message from the Summit was one of boldness and a palpable excitement that we have not one but many pathways to reverse Churchill’s mistake and build a clean energy future. T. Boone Pickens laid out how we can get 20 percent of our electricity from wind and cut our dependence on oil by a third; New York Mayor Michael Bloomberg laid out his Plan NY and his commitment that New York won’t just shift to renewables from other places, it also will create them right there in the city. Ed Mazria of Architecture 2030 combined elements from his earlier proposals with those from Pickens and others and raised the bar still further, while Federal Energy Regulatory Commissioner Jon Wellinghoff offered a brand new set of incentives to make clean energy happen even faster.
It’s getting hard to follow the proposals without a scorecard, so here’s my summary of the big ideas I heard brought to the table:
- Repower America. Think Al Gore (100 percent renewable electricity in ten years) and T. Boone Pickens. Use renewables to completely displace fossil fuels from electricity generation and to build a national grid (one of the Bloomberg’s major themes) to get power from the places where it can be cleanly produced to the places where it is needed.
- Refuel America. Combine Vinod Khosla and his investments in cellulosic ethanol; Aubrey McClendon of Chesapeake Energy, who is revolutionizing the American natural gas supply picture; and Elon Musk of Tesla motors. Use lower-carbon liquid fuels (particularly compressed natural gas) in our vehicles as a transition while we wait and see which technology wins the race: all-electric vehicles, plug-in hybrids, or cellulosic-ethanol-powered internal combustion engines.
- Rebuild America. Cross Ed Mazria, Leo Gerard of the United Steelworkers, and Van Jones of Green for All. Eliminate carbon emissions from new buildings by 2030 and double or triple the rate at which we retrofit existing building stock (and, when we perform those retrofits, cut energy usage a half, or even more). Double employment in the building sector, ending the unemployment crisis in our cities, and create millions of new jobs manufacturing green building technologies such as high performance windows here in the US. By 2050, when we’ve slashed our greenhouse emissions by 80 percent, none of us will be paying a utility bill, because buildings will be energy self-sufficient.
There are all technically feasible, all affordable, all American, and all green. Don’t choose among these pathways to success — we can’t afford not to go after all of them. If one slows down, it won’t hurt us if the other two are hurtling along.
So what stands in the way? Big oil and big coal.
What’s their secret weapon? The politics of the trivial.
While bipartisan voices as diverse as Jon Huntsman and Van Jones, T. Boone Pickens and Harry Reid were laying out big ideas for a bright American future at the Clean Energy Summit, America’s mainstream media were allowing the issue of how many dry holes we should drill off the Atlantic Coast to dominate the political dialogue. That’s exactly where Big Carbon wants the focus, and it’s exactly where anyone who’s serious knows that the American future cannot lie.
And what about Churchill? He at least had a big idea that broke boldly with the past (even if we’ve clung to it for far too long). We need the same kind of leadership today.
Our Perspective:
You will find that many of the things we now take for granted started with a bold move. Pres John Kennedy said let’s set a goal to reach the moon in 10 years. Some scuffed at the idea.
His brother Robert Kennedy said, ” Some people see things and ask, Why? Some people dream of things that never were and ask, Why not?”
Now is the time to be bold! We all control our own destiny. Let’s create it together.
Let us know your thoughts? You may email george@hbsadvantage.com
“D-Carbon” Brings Solar to the Coalfields
August 19, 2008
As reported in Huffington Post
The name says it all. Carbon County, Pennsylvania is a county of 58,000 located in the heart of the Keystone State’s famed anthracite coalfields. The county was famous not just for its coal, but also the notorious Molly Maguires that exemplified the kind of organized violence between workers and bosses that marked 19th century American industrialism. Pennsylvania is also the state that launched the petroleum industry, with the sinking of the Drake Well in Titusville (on the opposite end of the state from Carbon County) in 1859. But times, they are a changin’.
Carbon County, in a poetic turn, is now set to host the second largest solar facility in the nation. State Rep. Keith McCall (D-Carbon) is working with Green Energy Capital Partners to bring the Pennsylvania Solar Park to the area. At 10.6 megawatts, it will avoid some 320,000 tons of carbon emissions over its lifetime. It will be the largest of its kind in Pennsylvania and the second largest in the country.
Other changes are also afoot in the region. Weatherly (one of the boroughs in Carbon County) recently applied to the Federal Energy Regulatory Commission for a permit to install a turbine at an existing dam on the Lehigh River. It would be enough to meet all of the borough’s electricity needs. The New York Times reported in June that neighboring Schuylkill County was considering switching from sacrosanct anthracite to cleaner-burning natural gas–another energy source on the rise in the state and across the country thanks to new discoveries and new methods of extracting it from shale formations–to fuel the county’s boilers.
Though coal may putatively (and politically) remain king in many areas of the country–particularly in Appalachia, the number of people employed in coal mining has plunged. Coal employment in Pennsylvania, for example, peaked at 121,000 in 1942 and hovers at just 8,000 today. The tenacious and powerful United Mine Workers had half a million members in the 1950s, today it is left with just 86,600 members and now represents just 42 percent of the workers in the industry. The loss of jobs in the coal industry has not only brought deepening economic hardship to Appalachia, but since it has come in no small measure as result of mountaintop removal mining it has also wrought environmental disaster. Here’s what the Gore-acle himself had to say about this “atrocity” at Netroots Nation:
By contrast, renewable energy is bringing new opportunities to economically depressed communities, including parts of Pennsylvania that were decimated by the collapse of the steel industry. Thanks to the tireless efforts of Gov. Ed Rendell (and smart policies like a state Renewable Electricity Standard and other incentives), Gamesa, the Spanish wind company, has located four factories and its North American headquarters in Pennsylvania–creating over 1,000 new, union-represented jobs and over $1 billion in US sales in under 4 years. Smart policy played a pivotal role in luring the company, as wind-rich Minnesota lost out to wind-mediocre Pennsylvania in the competition for the company’s HQ and first factory in part because Minnesota had no state RES at the time. Rendell’s efforts have lured numerous other renewable energy projects–with some 10,000 new jobs–to the state.
If Carbon County can kick the habit, then who can’t?
Our Perspective:
I love to see these types of stories. So many time we get mired in the past and are unwilling to move forward. This is a story of hope, vision and success.
Are you interested in joining the solar evolution? Let us know your thoughts? Post a comment or email george@hbsadvantage.com . Visit us on the web www.hutchinsonbusinesssolutions.com
The Solar Mandate
August 19, 2008
Marburg Journal
German City Wonders How Geen is Too Green
Old and new coexist in Marburg, where a hilltop castle overlooks a solar-powered building. The city seeks to expand solar use.
Some Marburg residents are concerned about how pending solar rules will affect historic buildings like these in the city center.

Officials in Marburg face opposition over a solar initiative.
The town council took the significant step in June of moving from merely encouraging citizens to install solar panels to making them an obligation. The ordinance, the first of its kind in Germany, will require solar panels not only on new buildings, which fewer people oppose, but also on existing homes that undergo renovations or get new heating systems or roof repairs.
To give the regulation teeth, a fine of 1,000 euros, about $1,500, awaits those who do not comply.
Critics howled that the rule, which is to go into effect on Oct. 1, constituted an attack on the rights of property owners. The regional government in Giessen stepped in and warned that it would overturn the rule.
City officials in Marburg said, in turn, that they would take their case either to administrative court or all the way to the Hessian state capital, where they would try to get the state building code changed to protect their ordinance from officials in Giessen.
In the middle of this political chess match sit homeowners like Götz Schönherr.
From his deck, Mr. Schönherr can see the town’s famous hilltop Gothic castle as well as two of its three power-generating windmills. On his roof, a solar panel glints in the sunlight. He already uses the solar energy to heat his water, which has allowed him to turn off his boiler for roughly six months a year, a boon for his pocketbook but a decision he said he made for the sake of the environment.
And yet Mr. Schönherr opposes the new ordinance.
Mr. Schönherr had hoped to reinsulate his home, but to do so, and to satisfy the solar regulation, he would have to install a larger solar panel. It would cost him close to $8,000.
“That leads, in my case, and I would think in other cases as well, that people say, ‘Well, let’s just not reinsulate the roof,’ ” Mr. Schönherr said. “So it’s absolutely counterproductive.”
Officials in Giessen agree. “We have no problem with the use of solar energy,” said Manfred Kersten, press spokesman for the regional government in Giessen, “but this was a poorly constructed ordinance.”
Germany is one of the world’s top champions of reducing greenhouse gas emissions and promoting renewable energy. Thanks to hefty federal subsidies, the country is by far the largest market for photovoltaic systems, which convert sunlight into electricity.
Marburg, a historic university town where the Brothers Grimm once studied, is a model of enlightened energy production and consumption. In addition to the windmills and solar installations, the town’s utility company buys hydroelectric power from Austria, is transitioning its fleet of buses and other vehicles to natural gas and even lights footpaths with solar-powered lamps.
As a result, the Marburg dispute sometimes feels like an argument between the enlightened environmentalists and the really enlightened environmentalists.
“Marburg is already a leader when it comes to the use of solar energy, but up until now they’ve always tried to convince people rather than forcing them,” said Hermann Uchtmann, the opposition politician behind the “green dictatorship” charge who leads a local citizens political group, the Marburger Bürgerliste.
Like Mr. Schönherr, who is a member of the group, Mr. Uchtmann hardly fits the predictable mold of the Luddite opponent of renewable energy. He is a chemist at the local university who once built a solar-powered desalinization station for the town’s sister city, Sfax, Tunisia.
“It’s unfortunate that they decided to compel people, because I think you breed opponents that way rather than friends of solar energy,” Mr. Uchtmann said. He said he found the demands too invasive for existing homes, especially in the case of older citizens who might not live long enough to justify the upfront costs of installing the solar systems.
“I’m right up against the border myself,” said Mr. Uchtmann, who is 64. But he said he could support a solar-heating requirement for new buildings.
Because the town of 80,000 has a level population and relatively few new homes are built here, restricting the measure to new construction would not go far enough for the politicians behind it.
“We have a serious energy problem with the older homes,” Marburg’s deputy mayor, Franz Kahle, said in an interview at the historic town hall on the city’s colorful market square. To make a real leap forward, he said, a dramatic step was necessary.
“Before, solar installations were the exception and their absence was the rule,” Mr. Kahle said. “We want to get to the point where the opposite is the case.”
He pointed out that building codes constantly dictated what property owners could and could not do with their homes and said that the solar regulation already offered exceptions for cases of hardship or alternatives for those living in the shadiest spots.
Marburg’s law has attracted attention nationwide as a model for environmentally active politicians.
“What they are doing in Marburg is good and progressive, and we, and other cities, need to move forward with similar initiatives as well,” said Birgit Simon, deputy mayor of Offenbach am Main and a member of the Green Party. She said she hoped a coalition of left-of-center parties in the state Parliament could change the building codes to make the Marburg ordinance sustainable and imitable.
Among Marburgers interviewed one sunny afternoon this week, there was near universal support for the ordinance’s goals but an almost equal level of confusion about its exact nature.
“In principle, it’s a really good idea,” said Cornelia Janus, 35, who works at the university. But she questioned whether the costs might be too high and whether historic buildings and monuments would be protected.
“For a city like Marburg,” she said, gazing toward the churches and the castle arrayed along the hillside, which draw tourists from around the world, “that’s pretty important too.”
Our Perspective:
To help encourange people to participate in these programs not only do you have to tout the benefits but many times incentives must be added to provide the initial boost and make it more affordable for those who wish to participate.
If electricity is currently costing 14 cents /kwh and you are willing to make an investment in alternative energy, you are hoping that the investment will help to lower the overall cost. If electricity cost you 18 cent / kwh after making the initial investment the incentive is lost.
Mandating compliance can present a big problem. Without the incentives, many people may not be able to afford to the investment.
Let us know you thoughts? You may leave a comment or email george@hbsadvantage.com