ZENblog

Killing Two Birds

Gary M. Kaye

Publisher, Zero Energy News

 

November 10^th, 2008 – The line forms to the right,  or perhaps to the left.  That would be the line of special interest groups looking to get bailed out by the government.  From investment bankers, to automobile manufacturers, they are hoping that government largesse can save them from the consequences of their own actions in this economic meltdown.  Now add the National Association Homebuilders to the queue.  It would like Congress and the new Obama administration to lend a hand, offering government money to reduce a roughly nine month backlog of unsold homes and provide an incentive for builders to start building again.  One suggestion on the table is that homebuyers be given a $15,000 tax credit for purchasing a home.

 Not everyone thinks that’s a bad idea.  Mickey Levy, the chief economist of the Bank of America told me that a tax credit for home purchases would help clear the current backlog of homes  And, he says unlike mortgage help, such a tax credit would improve the odds that a buyer could make the downpayment, but would not help him leverage more debt than he could afford.  In other words, buyers would still have to prove their credit worthiness to qualify for a standard mortgage.   Another impact of clearing the current inventory would be to help stabilize home prices overall,  a significant step towards restoring confidence  in the economy.

 But perhaps we can do better.  Perhaps we can tie this tax credit idea to setting standards for energy efficient homes.   Congress has already considered setting criteria for commercial building,  and the state of California, among others, are looking at extending that to residences.  We have the technology to build cost-effective energy efficient homes.  Every zero net energy home is like taking three cars off the road in terms of demand for fossil fuels. 

There is amost no excuse for building new homes that rely on fossil fuels for a substantial part of their energy needs.  Depending on climate, a combinaion of technologies including wind, solar PV, solar thermal,  and ground source heat exchange can dramatically reduce, if not completely eliminate the need for fossil fuels to heat, cool, or power these homes.  While gasoline prices have dropped dramatically,  you’d have to be pretty short sighted to forget the lessons of four dollar a gallon gasoline.  And you can bet that if not next year or the year after, eventually those prices will be back.  And worse.

Achieving energy efficient incentives could be done in any of several ways.  Congress could mandate a specific HERZ rating for all new homes.  It could mandate compliance with either USGBC LEED-H standards, or NAHB Green standards.  Or instead of using the stick, Congress could offer up a carrot,  giving buyers of energy efficient homes a federally subsidized mortgage a full percentage point below market rates.  Another tactic might be to issue full tax credits to cover the acquisition costs of active energy technologies such as solar, wind, and ground source heat exchange. 

The possibilites are many.  But the opportunity is now.  Let’s not blow it.  Again.

WHAT'S NEW UNDER THE SUN

Gary M. Kaye, Publisher, Zero Energy News

The Solar Industry is certainly coming of age.  Despite the economic meltdown, the Solar Power International 2008 conference in San Diego was a hotbed of excitement. What's billed as the largest solar industry event in the Americas claimed some twenty thousand attendees.  The full conference program sold out.  And the exhibit floor was crammed with the latest and greatest.  There were some 425 exhibitors, and while another 400 plus companies tried to get in, but couldn't.

Coming as it did on the heels of the eight year extension for investment tax credits, that was reason enough for the industry to feel reinvigorated.  From my perspective, there was far more attention on industrial and utility scale solar, and less on the residential installers of PV and solar thermal.  But given the dramatic jump in energy prices (and now slide) over the past year, coupled with the tanking of the homebuilding market, there were few surprises. 

Perhaps it was my own perspective, but I certainly got the sense that there was an air of invevitability about the success of the solar industry.  Never mind that some, perhaps many, of the exhibitors on the floor at this year's conference will be a footnote to history in another year or two.  Never mind that the housing market may not have even hit bottom.  This is an industry that has been growing by 40% a year over the past five years.  And the promise is that now with longer term tax credits in place, growth will simply accelerate. 

But, throughout it all the economic collapse looms like a dark cloud.  The collapse of the housing market has already beaten down new solar installations.  At Borrego solar,  their mix  has gone from a balance of fifty-fifty residential and commercial to almost 80 percent commercial.  Installers of residential solar confessed that many of their funding sources have dried up, making it very difficult to help homeowners with long term PV financing.  Companies like SolarCity are using leaseback programs, Open Energy is using Power Purchase Agreements, almost anything to help cash strapped homeowners put solar on their roofs without having to front the money.

At the same time utilities are increasingly adding concentrated solar to their power generation mix.  This week, Ausra will throw the switch on a new plant near Bakersfield, California.  On the show floor, a host of companies showed off utility scale soutions, from SkyFuel to GreenVolt and many others.  But even here, there's a concern that a dramatic slowdown in economic activity in the U.S. will force utilities to reassess their needs for new generating capacity, even if the fuel is free.

All in all,  it's a great time for solar.  But despite the celebration of the tax credit extension,  there was certainly more caution in the hall than I heard just a year ago.

Like Christmas in October

by Gary M. Kaye - Publisher, Zero Energy News

When I called Rhone Resch, the President of the Solar Energy Industries Association, shortly after the House of Representatives had approved an eight year extension of the renewable energy tax credits, his office sounded like Christmas in October. And for good reason. Solar and Wind industry representatives have been working for two years to get these tax credits extended. Ironically, a vast majority of members in both the House and Senate agreed that this was something that needed to be done. But for the better or worse part of two years they couldn't agree on a way to pay for them. Ultimately various versions had passed each chamber of Congress, but never in the same form. It took the biggest financial crisis in modern American history to get them approved, and then essentially as an afterthought.

There is plenty at stake here. First, there's the whole question of energy policy. You remember energy policy, something which our national leaders all agreed we need, included the development of renewable energy. But, as they say, "the devil was in the details". Can you imagine how, with gasoline still not all that far below four bucks a gallon and heating oi and natural gas prices still on the rise, this Congress could have gone home and not extended these credits? Every kilowatt of electricity generated by renewables takes that much pressure off fossil fuel driven plants, whether they be driven by oil, or even good old American (air polluting carbon emitting) coal.

The second part of this has to do with the economy, stupid. There are estimates that renewable energy could be one of the biggest sources of new jobs creation in the next decade. Hundreds of millions of dollars are poised to be invested in solar and wind. And all of this economic activity could have been slowed considerably had these tax credits not been extended. The mind boggles. Now, at a time when our economy is in deep trouble, at least we can look forward to substantial investment in renewables. Just as the computer industry in the 1980's saved us from the loss of heavy industry, the renewables industry stands poised to save us from the fallout of the mortgage mess. Even better incorporation of these new technologies into homes and commercial business, could help turn the real estate and housing industries back onto an upswing.

Yes, Congress did the right thing. But this was legislation by default, not the fault of the obvious necessity. Next time we just might just fall off the cliff.

IF IT WEREN'T TRAGIC IT WOULD JUST BE SILLY

Gary Kaye,  Publisher Zero Energy News

All signs now point to Congress calling it quits without passing tax credits for renewable energy including wind and solar power.  Unless Congress takes action, the existing tax credits for solar and large scale wind will expire at the end of the year.  The current proposals that have been approved in various stages, include tax credits for small scale wind for the first time.

At a time when every one of us is being whacked by soaring energy prices, the failure of Congress to move ahead with incentives to promote renewable energy development is nothing short of astonishing.  Our economy is in a shambles.  Home building has ground to a halt.  Yet, there is clear anecdotal evidence from across the country that energy efficient homes, especially those using active renewables such as PV or wind turbines, are selling much faster than traditional stick built homes. 

In terms of large scale renewables,  companies are poised to make billions of dollars in investments in both concentrated solar and large scale wind.  These are technologies that will almost certainly reduce energy costs in coming years, while the costs of fossil fuels are just as certain to keep rising.  Many of these investments will be placed on hold if Congress fails to act.  Thousands, perhaps millions of jobs that could be created by the growth of renewable energy,  in areas from solar panel manufacturing to the erecting of wind turbines will be delayed.  Our unemployment rate is climbing.  This could be a partial solution.  Yet Congress feuds over minor details.

To its credit, the House of Representatives passed a comprehensive energy bill, including the extension of these tax credits, only days after it was introduced by House Speaker Nancy Pelosi.  The bottleneck, as it has been for months, is in the Senate, where a small minority has held the measure hostage over issues of how its going to be paid for.  C'mon guys.  You're spending billions every month in Iraq.  You're talking about a seven hundred billion dollar bailout for our financial institutions.  And you can't agree on tax credits that will help us take a major step towards energy independence, create American jobs, and even help reinvigorate the moribund home building industry?  Wake up. 

It may be too late to save the tax credits before the next Congress comes in and has to start the process all over again.  Maybe not.  Sure your representative is trying to figure out what to do about the bailout bill.  But these days they need to multitask.  I urge you to get ahold of your Senators, your representatives, and tell them now is the time to resolve the impasse in favor of the American people.  Period.  There's just too much at stake.

Celebrity Guest Blog: Matthew Modine

Bicycle for a Day (BFAD), founded by Matthew Modine, is a fun, open, and proactive event designed to inspire individuals, communities, governments and corporations to take a step towards solving the current environmental issues. BFAD's goal is to raise awareness of the need to reduce carbon emissions and to demonstrate many simple things that each of us can do every day to accomplish a cleaner world. The BFAD event, 10 AM to 5 PM on September 20th is free and open to the public. Everyone is invited to join us at NYC's South Street Seaport to support a wonderful cause! Just don't drive a gas powered vehicle there! Walk, skate, blade or ride a bike to show your solidarity in improving the world we share.

Gary Kaye: So Matthew, what was the inspiration for your upcoming event, Bicycle for a Day?

Matthew Modine: I was asked a simple question, “If there was one thing I could do to improve the environment, what would I do?” “Bicycling,” was my simple reply. By choosing to ride a bike instead of driving a gas powered vehicle you can make an immediate and positive impact on the environment. When we think of the enormity of the problems of global warming, it is very difficult to think that we can do things to restore, or at least stabilize, the situation. But if we consider that one person, becoming part of a movement that would include millions of people from around the world – then the global environmental situation becomes achievable. “Bicycle for a Day” is a global effort to empower people to collectively become that positive change. And it's fun!

GK: Can you please explain why Segway was invited to participate?

MM: I wanted Segway to become part of “Bicycle for a Day” because I feel that it is one of the most progressive companies in the United States. In 1978, President Jimmy Carter said that the environmental situation, and the energy crisis that the US was experiencing, was the "moral equivalent of war." That each American had to become more conscious of the energy they consumed and to begin to use less. Carter said we had to free our country from its dependency to oil both to secure our independence from foreign oil and to protect the environment. We needed to invest in new ideas of energy and to invent new ways of transporting ourselves that are more efficient. For me, Segway represents that new way of thinking – how to get from here – and is wonderfully efficient in its use of electric energy. Like bicycling, the Segway PT is one additional way to empower yourself to have a positive impact on the environment.

GK: How about the sponsor MBT?

MM: Riding a bike is one thing that you can do to improve the environment. Walking is as well. The MBT shoe is kind of an odd miracle. I heard about them and got a pair. I have two friends that were hit by cars while walking (they had the right of way in a crosswalk), and their backs were killing them as a result. They started wearing the shoes and their backs are now fine. I am going to stop before I sound like an infomercial!

GK: What do you hope to accomplish by hosting BFAD?

MM: I want people to feel that they can be responsible and empowered by making decisions that have a simple yet powerful impact when done collectively. Bicycling is "self-propulsion." That's beautiful. Helping yourself to help others.

GK: What is your vision for the future of urban transportation?

MM: I love traveling to  Europe . Europeans seem to really understand public transportation - how to make it work and make it clean and beautiful. Maybe it’s because European countries don't have an aggressive industrial military complex so they can afford to invest in their countries’ infrastructures.  America  was made powerful by trains. Every major city had a trolley system in place that worked to efficiently transport people. The automobile changed that. I think we are going to see incredible new electric powered vehicles. Things like the Segway will become more of an everyday site because of its efficiency and ease of travel. And the bicycle will become common place.

GK: The green movement is overwhelming for many, as it’s a shift in the way we live our lives. What small steps can you suggest for helping to create a greener earth?

MM: Remember to turn the lights off when you leave a room. It's amazing how often we don't. Get the buildings you live and work in to put motion detector sensitive on/off switches in stairwells and bathrooms. Our homes and offices are the biggest consumers of energy in our country.  Look at the simple, small steps. Each journey begins with those baby steps. Start making them!

GK: For someone who has never considered alternate forms of transportation, do you have any advice on how to begin?

MM: I recommend you look at the BFAD sponsors and leaders in the green transportation space – a good place to start is the website www.bicycleforaday.org.

GK: What is in the future for BFAD?

MM: “Bicycle for a Day” is a global initiative. I hope that the “Bicycle for a Day” logo will become the image for the environmental movement. The 'Peace' sign was the symbol of solidarity for a generation. The 'Bicycle for a Day' icon will become a symbol of environmental solidarity for a new generation.

GK: For people outside of NYC or those unable to attend the event, what would you tell them about it and how can they still participate?

MM: Ride a bike. Get a group of your friends and choose not to use gas powered vehicles on Sept. 20th. Make a decision that you are going to be more conscious of what we often take for granted – our energy consumption. How much water we are using? What can I do to have a positive impact on future generations? Plant a tree! Little things make all the difference.

GK: Thank you, Matthew. We look forward to seeing you next week in NYC and wish you best of luck with “Bicycle for a Day”!

Gary M. Kaye is the publisher of Zero Energy News.

 

Defining the Debate

By Gary M. Kaye, Publisher, Zero Energy News

The energy debate is really two debates.  They overlap the way two circles overlap in a Venn diagram,  For those who advocate the use of renewable energy it’s important to realize that these two debates are not entirely synonymous and some of the people who support the first, may not agree at all with the second.  Unfortunately in the heat of the presidential debate the distinctions tend to get lost.

Energy Independence

The primary focus of the energy debate has been on  the issues of energy independence and rapidly rising energy costs.  We rely on imported oil for a major portion of our energy needs, not only for gasoline, but also for home heating oil and oil fired electric plants, especially in the Northeast.  And the number is staggering, almost two-thirds (64.72%) of U.S. petroleum consumption in 2007 came from imported oil. The issue of independence relates both to economics, and to national security.  Obviously,  the more we pay for energy, whether it be in the form of electric bills or gasoline, the less we have available to spend on everything else.  As the price of a gallon of gasoline rose from twenty something cents a gallon in the early 1970’s all the way up to two dollars plus, we were largely able to absorb the increases.  But earlier this year, as those prices soared to more than four dollars a gallon, our budgets finally hollered, “No Mas” 

The other side of that equation is where all that money is going.  Oil Man turned Renewable Energy Man T. Boone Pickens calls it the biggest transfer of wealth in the history of the world.  And the transfer is going to people who don’t like us, and who are more than happy to use their energy resources to threaten us.  This includes places like Russia, Venezuela, and much of the Middle East.  We are dependent on the very people whose policies are often in violent opposition to our own.  Just this week Russia sent a 20 person delegation to OPEC to tell the cartel that it wants close cooperation.  Russia produces 11 percent of the world’s oil exports and has proven it’s willing to not only talk the talk, but walk the walk.  If, heaven forbid, we land up in a shooting war with people who some of those nations support, the consequences could be horrendous.  Four dollar a gallon gasoline would quickly become a fond memory.  And how hard would it be to imagine the U.S. being pressured to change its policies to comply with the demands of people who keep our cars running?  Talk about economic imperialism.  It’s no wonder the American Jewish Committee has begun running a series of radio ads promoting energy independence.  The AJC clearly understands the link between energy dependence and Middle East policy.

In and of itself, the need for us to become energy independent strongly argues in favor of developing alternative energy sources that can offset oil imports, especially for things like home heating oil and power plants.  Replacing gasoline for our cars is a much tougher nut to crack.

Climate Change

The other debate is over climate change.  There is overwhelming evidence that our use of fossil fuels contributes to the increase of greenhouse gases.  No debate there.  What could be debatable is the impact.  Is this leading to global warming?  There’s a lot of evidence supporting that position.  So, here too, increased production of renewable energy means less use of fossil fuels.  Using solar and wind do not generate any greenhouse gases.  And here we can replace things like coal, a pretty dirty fossil fuel with things that have no emissions like wind and solar.  By reducing our reliance on imports (the overlapping part of the Venn diagram) we improve our energy independence, while also reducing greenhouse gas emissions.  Many of those who squirm at $4.00 a gallon gasoline see the bottom line as the bottom line.  They are willing to sacrifice long term goals for short term savings.  This is a different debate.  This is the ethanol, clean coal, natural gas, debate.  It’s not the zero emissions debate. 

The issues are largely separate, but the answers are similar.  Increasing renewable energy sources like wind and solar help resolve both sets of issues.  Using more coal and offshore drilling could help energy independence, but won’t save the planet.  We need to make sure that when we debate we know the difference between apples, oranges, and fruit salad.

Sustainable Art

By John R. Quain, Editor, Zero Energy News

New York, NY, August 15, 2008 -- Being all green and never playing makes Jack a dull boy. So if you're looking for a little respite from saving the planet, take a look at a new exhibit at New York's Museum of Modern Art.

Entitled Home Delivery: Fabricating the Modern Dwelling, the exhibit chronicles the progression of prefab house designs. From 1833 to the present, there are 60 projects on display inside and outside the museum, including a 1906 model of a Thomas Edison design. MoMA was able to take advantage of an empty lot next the museum in order to construct 5 full-scale prefab houses. The outdoor exhibit is a bare-bones curatorial effort (lacking landscaping or any other niceties) but it gives visitors an excellent sense of the architect's process.

Prefabs impose interesting restrictions on design. Lightweight yet durable materials must be used to make them easier to mass produce and then transport. And, of course, size is an issue, which is where some of the sustainability interest comes in: A smaller home is by nature more energy efficient.

Don't have the disposable carbon footprint to travel to New York? Then check out the video below or visit the museum's Web site where you'll find more footage of the outdoor installation, which raises the question, If you're building a real house, is it art or construction?

The Blog From Prague

By Gary M. Kaye, Publisher, Zero Energy News

Prague – Czech Republic August 4, 2008 - Here in this hot spot of the old Eastern Europe, tourism is booming, the streets teeming with people speaking a huge range of languages. And despite the battered dollar, there are still plenty of Americans. Throughout the city there’s still plenty of evidence of its coal powered past and present. For the Czech Republic, as well as many of the Eastern European nations, renewable energy is more goal than reality with renewable energy sources (RES) account for somewhere between 3 and 4 percent of electric power generation, and most of that is from large scale hydro. Large scale wind is near the bottom of the pile, and photovoltaics don’t even make the list.

We took the train from Berlin, where despite many of the same resources, the renewable energy outcome is already far different. Both Germany and the Czech Republic have significant coal resources,  that carry both political and economic clout. The coal industries in both nations are powerful. They employ tens of thousands, and politicians are under pressure to keep electricity cheap, especially when the price of gasoline here can range from $7 to $8 a gallon.

The Czech Republic is looking to comply with the European Union RES standards over the next ten years, but progress seems to be slow, with reluctance to jump onto the Kyoto Protocols.  On the other hand, Germany is now the world’s largest producer of wind energy, and the evidence of Germany’s push into wind is everywhere. Outside of Berlin, near the city of Potsdam, which had been in the old East Germany, a wind farm stands atop a ridge line within sight of gorgeous mansions. My friend Axel, a life long Berliner, put it this way, “Do I like looking at these things on top of the hill? No. But it is better than building another atomic plant, since we don’t know how to get rid of the waste, and it is certainly better than burning more coal.” The Germans continue to have the same NIMBY debate as we do in the states, but the outcome is generally favorable. The wind turbines may not be beautiful, but they are effective. On the train ride from Berlin to Dresden, we saw miles of farm fields, where wind turbines churned at a leisurely pace.

Admittedly the Germans do have a distinct advantage over us in the U.S., and that is in the area of power transmission. Because Germany is so much smaller, it is much easier to get power to the places where people live, the reverse of the situation T. Boone Pickens faces with his huge Texas wind farm projects.

But the Germans aren’t only relying on large scale wind. We saw new home construction with integrated photovoltaics, paid for by the government.  And while there is little evidence of retrofitting, German homes are often better insulated than American homes, built initially from brick instead of wood frames.

The Wind Energy Association claims that the U.S. has already surpassed Germany in terms of the total output of wind driven energy. That figure comes about a year ahead of original forecasts. But even if true, the Germans appear far more accepting of renewable energy than the Americans. And while their coal industry still lobbies to protect its business, the tide has clearly turned. It would be nice if we could say the same for the U.S.

Saving Power at Home...in Japan

By John R. Quain, Editor, Zero Energy News

(Dateline: July 23, 2008 - Kyoto, Japan) Here in the Land of the Rising Sun, I’m ostensibly visiting to learn about and witness the birth of the stationary fuel cell for homes. But on a related note to Gary’s recent post, the first ZEN-related things I noticed while out running along a promenade on Tokyo Bay were several giant wind turbines in the bay. Although my hotel room overlooked them directly, I didn’t even notice the gently rotating propellers until I was out pounding the pavement and studying the skyline. So apparently there’s no fear of such renewable efforts here. And the aesthetic impact in such an urban environment? Minimal at best.

It is true, however, that you won’t find every Japanese roof swathed in solar panels. To date, many of Japan’s efforts at energy conservation and reducing green house gases have focused on programs like “Cool Business” (though there is a significantly larger reliance on nuclear power here). Promoted for the last two years and initiated by the country’s prime minister at the time, the slogan essentially means adopting more casual business attire. It’s a seemingly a nominal change but by suggesting that businessmen abandon ties and jackets during the summer, companies have been able to turn down the air-conditioning systems to 28 degrees C or about 82 degrees F, thus saving money, energy, and reducing pollution. (It’s not an official regulation, simply a voluntary initiative.)

It’s a lifestyle change that has been remarkably successful in spite of the fact that some politicians at first resisted the change (one referred to the open-neck look as being like a lounge singer). However, “Cool Business” can mean making some personal sacrifices. And I do mean personal. I have been visiting offices and factories on what has turned out to be the hottest days Japan has experienced yet this year (98.6 degrees). So no one gets out of here without sweating.

On the other hand, Panasonic is hoping that such sacrifice won’t be necessary in the future. Its stationary fuel cells use natural gas to generate hydrogen and in turn generate electricity and hot water for homes. It’s remarkably efficient, making for a 22 percent reduction in green house gases over a gas powered electric plant (and much more efficient than coal or oil). Look for more on Panasonic’s efforts to commercialize fuel cells coming up on the Zero Energy News Web site.

 

NIMBY Must RIP (So the Rest of Us Can Afford to Live)

By Gary M. Kaye – Publisher – Zero Energy News

(Dateline: Aboard the Metro North Harlem Line – June 2, 2008)   Despite four- dollar-plus-a-gallon gasoline and four-dollar-a-gallon-plus home heating oil, across the country zoning boards, homeowner’s associations, and neighborhood groups continue to behave as if it was business as usual.  They vote down renewable energy projects for no other palpable reason than “Not In My Backyard” or NIMBY. Let me give you just a couple of examples.

In Watertown,  Connecticut, a proposed 35-foot-tall backyard wind generator was rejected because of the repeated protestations of a single neighbor who objected for no other reason than she “didn’t like it.” In Needham Massachusetts, the local town council dropped  plans for a wind turbine to power the lighting at a municipal baseball field.  The move would have saved the town thousands.  The reason it was thwarted: a neighbor thought the  flicker caused by the shadow of the turbine’s blades would be annoying.  Never mind the shadow would fall in a location far out of human sight.  And of course, the biggest case of all, the years of delay for the Cape Wind project despite overwhelming evidence that it would be barely visible from the shore and would disturb almost nothing in the local environment.

And it's not just wind.

There are myriad stories about neighbors objecting to the installation of solar panels for fear they would either disturb the look of a neighborhood, or even bring down property values. It’s time our local officials wake up and smell their wallets going up in smoke.  Every gallon of oil that doesn’t go into an oil-fired power plant is a gallon available to go into your car.  The same holds true for every gallon that doesn’t get made into home heating oil.  Wind power can pay for itself now and solar is getting there.  Stop fiddling while we burn Rome. 

Kill NIMBY!!!!

Next time – Two Ways to Defeat NIMBY