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As Congress Continues Its Witch Hunt, Here Are Five Things You Should Know About Clean Energy Investments

In an attempt to keep the political war against renewable energy in the headlines, Republicans are holding another hearing to question the value of government investments in the sector.

Looks like ten political sideshows on Solyndra weren’t enough.

If tomorrow morning’s hearing were being used as a chance to objectively assess where the industry stands, that would be one thing. But the title of the meeting gives away the real political intent: “The Obama Administration’s Green Energy Gamble: What Have All The Taxpayer Subsidies Achieved?

Actually, those green energy investments have yielded substantial returns. And before the political grandstanding begins in the House of Representatives tomorrow, here are five important things you should know about how promotion of clean energy has supported American businesses and consumers:

1. The 1603 grant program supported up to 75,000 jobs and 23,000 renewable energy projects during the height of the recession. When the recession hit, it was very difficult for project developers to find banks that were willing to utilize tax credits. So a cash grant program was created to give companies an easier way to finance projects. While it’s very difficult to know the exact influence of the grant on each project, the program played a major role in maintaining momentum — helping support $25 billion in gross economic activity, according to the National Renewable Energy Laboratory.

2. The production tax credit helps leverage up to $20 billion in private investment annually. With this key tax credit in place, the wind industry has dropped costs by 90% over the last few decades. It’s helped states like Iowa reach 20% wind penetration — bringing that state over 215 businesses that support 5,000 workers. Across the rest of the U.S., the entire industry supports 75,000 jobs, with 30,000 in manufacturing. However, up to 37,000 of those jobs could be at risk due Congressional lawmakers’ inability to extend the tax credit.

3. The loan guarantee program is expected to cost $2 billion less than budgeted. This program has gotten a black eye due to the bankruptcies of a few companies — most famously Solyndra — that received guarantees. But according to John McCain’s National Finance Chairman, Herb Allison, the cost to taxpayers will likely be far less than initially thought. In fact, over the last 20 years of experience, the U.S. government has shown a knack for managing risk — with loans and loan guarantee programs only costing tax payers 94 cents for every $100 dollars invested.

4. Home weatherization grew 1000% from April to June of 2011, creating 14,800 jobs. After a slow ramp-up, efficiency programs supported by the stimulus package have helped weatherize hundreds of thousands of homes. In addition to supporting the retrofits of individual homes, the Obama administration has supported the Better Buildings Initiative, a program that has leveraged billions of private dollars to upgrade more than 4 billion square feet of public and private buildings in the next two years. That’s enough demand to support over 100,000 jobs.

5. ARPA-E has supported dozens of potentially groundbreaking technologies in advanced materials, renewable fuels, electricity generation, waste heat, and battery storage. Helping enhance America’s lead in technological innovation, the Advanced Research Research Projects Agency for Energy — initially funded through the stimulus package — has helped inventors, companies, and university labs boost their work. This program has immense bi-partisan support for promoting the “innovative research that makes America great and has fueled our economic growth for generations.”

Despite these successes, Republicans continue milking the Solyndra bankruptcy for an election-year story that doesn’t hold up — dragging the rest of the clean energy industry into the mud.

The sector has gone through some high-profile shake-ups and bankruptcies, so it’s the duty of lawmakers to understand how tax payer dollars are being deployed. That’s a supportable endeavor. But holding yet another hearing to lambast the President for a so-called “gamble” in clean energy isn’t productive for anyone.

The Opportunities And Pitfalls Of Managing Smart Grid Data

by Adam James

At the advent of the Internet 30 years ago, having large amounts of personal information accessible on a shared network would have been unthinkable — even if that network would make our lives easier. But we found a way to navigate this privacy minefield with one straightforward idea: Entrust our personal information to certain entities with the expectation that it will be secured, and, in exchange, we get a life with more choices. While there is sometimes an inverse relationship between access and privacy, it is a challenge we have overcome.

The tension between data access and privacy is evident today in the smart electrical grid. It is “smart” because it can harness new information and communications technology to expand its functions while increasing efficiency and accessibility. The transformative potential of this information intelligence is amazing — just ask anyone making the choice between a landline and a smart phone.

Over the next few years, deployment of new technologies will ensure that the quality and quantity of energy information increases dramatically. Qualitatively, smart appliances will reveal much more detailed feedback about consumers’ patterns, such as time and length of use. Quantitatively, the data points about a consumer’s energy usage will go from thousands to millions annually.

This data will empower consumers in two ways. First, managing their energy consumption will help save them money. They’ll see lower energy bills from setting HVAC systems to operate intermittently when no one’s home and having appliances go dark when they’re unused. Second, two-way energy flow between consumers and electric utilities will allow consumers to participate in energy commerce, selling unused energy back onto the grid for profit. Harnessing distributed generation projects, such as rooftop solar panels, using demand response by getting cash rebates for not consuming energy at peak hours, and taking advantage of personal electric vehicles as battery storage units for the grid are all examples of how people can use enabling technology to change the game.

But here’s the rub. The data reveals a tremendous amount of real-time information about the consumer, which could lead to severe privacy violations if it were mined for behaviors and preferences.

This data clearly needs to be secured. However, if the security is too restrictive, it will inhibit third-party innovation, hurting businesses trying to enter the market. If it is too lax, consumers may be exploited, and companies could face serious legal action.

Read more

Survey: Small Businesses Believe Protection Of Public Lands Is ‘Good For Business’

By Tom Kenworthy and Jessica Goad

Congressional Republicans who think the only purpose of public lands is to provide subsidized commodities to industry generally ignore the many economists who provide hard evidence that protecting natural spaces provides huge economic benefits.

If these lawmakers don’t believe economists, perhaps they’ll believe another group with political sway: small business owners.

A new survey conducted for the Small Business Majority finds that 63 percent of small business owners in Colorado say access to protected public lands and outdoor spaces is a major part of why they set up operations in the state.

The results show that these small business owners strongly support the president’s “all of the above” energy strategy — with more than half saying they would be more likely to support such a plan if it includes steps to conserve some areas and keep them free of development.

By a 4:1 margin, those small business owners say that creating new national parks and monuments would have a positive impact on jobs and the economy.

“Our nation’s most prolific job creators are asking that smart steps are taken to preserve Colorado’s natural assets because they believe it’s good for business,” said John Arensmeyer, founded and CEO of Small Business Majority.

These small businessmen understand intuitively what the experts continue to explain in their anaysis.

Last fall, for example, more than 100 economists wrote to President Obama urging him to expand efforts to protect more national parks, national monuments and wilderness areas. “Protected public lands are significant contributors to economic growth,” they said in their letter.

More recently, Headwaters Economics, a consulting firm based in Montana, found that more than four times as many jobs are created in non-metro counties with protected public lands than in those without. Counties with more than 30% of their lands federally protected increased jobs by 344% over 40 years, compared to just an 80% increase in jobs in non-metro counties with no protected federal lands.

Read more

Dept. Of Interior Finds 72 Percent Of Offshore Acreage Leased By The Oil Industry Is ‘Idle’

by Daniel J. Weiss

The Department of Interior released an updated analysis of fossil fuel leases today, finding that more than two thirds of offshore leases and half of onshore leases are sitting idle“neither producing nor under active exploration.”

The report, “Oil and Gas Lease Utilization, Onshore and Offshore Updated Report to the President,” explained that oil and gas companies hold thousands of undeveloped leases. Despite holding these inactive leases, the oil industry continues to demand the opening of new, previously protected federal lands and waters areas to drilling.

The report found that:

More than 70 percent of the tens of millions of offshore acres currently under lease are inactive, neither producing nor currently subject to approved or pending exploration or development plans. Out of nearly 36 million acres leased offshore, only about 10 million acres are active – leaving nearly 72 percent of the offshore leased area idle.

In the lower 48 states, an additional 20.8 million acres, or 56 percent of onshore leased acres, remain idle. Furthermore, there are approximately 7,000 approved permits for drilling on federal and Indian lands that have not yet been drilled by companies.

According to the Energy Information Administration, total federal oil production (offshore and onshore) has increased by 13 percent during the first three years of the Obama administration combined, compared with the last three years of the previous administration. According to independent analysis, the total number of active rigs operating on the U.S. outer continental shelf was higher in January 2012 than any time since May 2010.

The American Petroleum Institute – Big Oil’s lobbying arm — claims that the Department of Interior ignores exploratory work on leases; however, that is clearly included in DOI’s assessment above.

API recently demanded that the Obama Administration open up the North Atlantic to “seismic exploration” for oil. This is an area that supports vital American fisheries.

In addition to holding thousands of undeveloped leases while lobbying to drill in the Arctic National Wildlife Refuge, off the New England Coast, and in the Eastern Gulf of Mexico, the big five oil companies produced 12 percent less oil in 2011 than in 2006 — all while making record profits.

Daniel J. Weiss is Director of Climate Strategy at the Center for American Progress Action Fund.

Arizona Governor Issues Surprise Veto Of ALEC-Endorsed Bill Allowing The State To ‘Take Back’ Public Lands

By Jessica Goad

In a surprise move last night, Arizona Governor Jan Brewer (R) vetoed a bill demanding that the federal government turn over up to 25 million acres of public lands to the state by 2014 or face a lawsuit.  In a statement, Brewer said that she was:

“…concerned about the lack of certainty this legislation could create for individuals holding existing leases on federal lands.  Given the difficult economic times, I do not believe this is the time to add to that uncertainty.”

The overwhelming legal expert opinion is that this type of bill is unconstitutional — which is how the courts have ruled over many decades.  The Salt Lake Tribune called a similar effort in Utah “tilting at windmills.”

This is a blow to the American Legislative Exchange Council, a corporate front group that designs “model” legislation and is funded by the likes of Koch Industries, BP, Exxon Mobil, and Shell.  ALEC endorsed this particular legislation, as the Associated Press reported:

Lawmakers in Utah and Arizona have said the legislation is endorsed by the American Legislative Exchange Council, a group that advocates conservative ideals, and they expect it to eventually be introduced in other Western states.

Turning over public lands could eventually lead to their privatization, opening them up to mining, drilling and other industrial activity.

A similar bill demanding federal lands be turned over to the state was signed into law by Utah Governor Gary Herbert (R) last month.  The state has demanded 30 million acres of public lands by 2015 or it will sue.  And, the Utah legislature has already authorized the state’s attorney general to spend $3 million on the anticipated legal battle.

Brewer’s veto of this bill is also a major setback to those aiming to start a new “sagebrush rebellion” in the West, and may bring an end to other lawmakers’ dreams of privatizing public lands.  As Arizona state senator Al Melvin, the primary sponsor of the bill, said:

What we envision is all of the Western states going before the Supreme Court to force this issue.

It seems that for now, this unconstitutional effort has been thwarted, despite similar bills rumored to be in development in Montana, Idaho, and New Mexico.

Jessica Goad is Manager of Research and Outreach for the Public Lands Project at the Center for American Progress.

Energy Access Entrepreneurs Seek $500 Million From World Bank At Rio +20

Via the Sierra Club’s Compass Blog

Twenty of the world’s leading off-grid clean energy entrepreneurs sent a letter this week to World Bank Group president Robert Zoellick requesting $500 million in financial commitments to help them deliver on the world’s energy access goals. The group’s letter was backed by a letter of support from the CEOs of more than 25 leading civil society organizations from around the world, which calls for these commitments to take the form of a pledge at the upcoming Rio+20 earth summit.

The call comes six months into the United Nations Sustainable Energy for All (UN SEFA) campaign, which seeks to deliver universal energy access by 2030. In order to make good on that pledge the International Energy Agency (IEA) has found that half of all energy services must be provided by off-grid clean energy.

Unfortunately, today’s investments in energy access are heavily skewed toward traditional grid extension, with billions going to large scale centralized power projects which are often heavily polluting coal plants.  Worse, according to the IEA, an over reliance on these investments at the expense of off grid clean energy investments will leave one billion of the world’s poor without energy access by 2030.

“There are literally one billion reasons to change our current approach to energy access,” says Justin Guay, Washington Representative with the Sierra Club’s International Climate Program. “The World Bank has a tremendous opportunity to do just that by committing to rapidly scale up investments in off grid clean energy at Rio.”

Entrepreneurs agree. The letter states in part, “We work in these markets and we know they suffer from, among other things, a distinct lack of access to finance.”  The entrepreneurs go on to argue that a significant investment in the sector from the World Bank Group can reduce perceived risk and unlock private sector investment – and along with it the vast potential of clean energy to serve the world’s poor.The entrepreneurs expressed their support for existing World Bank programs such as Lighting Africa, Lighting India, and Green Power for Mobile and asked for increased funding for programs like these going forward. Read more

Inhofe Staffer Asks Oil Lobbyist ‘Partners’ For ‘Better Coordination And Communication’

Republicans are the default choice for oil and gas dollars, having received 88 percent of the industry’s political contributions in 2011. In return, House and Senate Republicans block regulations the industry deems a potential threat.

In an April 23 e-mail acquired by National Journal, a staffer for Sen. James Inhofe (R-OK) called on the industry to utilize their partnership to coordinate attacks on the White House:

Senate Republicans, who led a successful fight this spring against Obama’s proposal to repeal billions of dollars in tax subsidies enjoyed by major oil companies, felt betrayed by the industry’s collaboration with the White House on fracking regulations. The e-mail to top oil and gas lobbyists made that unhappiness clear, and it suggested that the industry was being duped.

Moving forward, we—your partners—would kindly ask for better coordination and communication from you to prevent the Obama administration from pulling similar stunts in the future,” wrote Inhofe aide David Banks in the 800-word e-mail to two dozen lobbyists.

Some lobbyists apparently “cringed” at the wording. But coordinated attacks on behalf of Big Oil interests are nothing new, even if lawmakers don’t usually use such frank language. A host of EPA pollution regulations have faced congressional opposition, including Inhofe’s resolution to prevent new limits on mercury pollution in power plants. Inhofe, a well-known climate denier, is also one of the top recipients of oil and gas contributions with well over $1 million for his career.

Earlier this year, the Republican-Big Oil partnership played out in the Senate’s vote on oil subsidies, when 47 Senators — mostly Republican — blocked the vote. Those Senators received over four times the oil and gas money than lawmakers supporting an end to the oil industry’s permanent tax breaks.

Update

Inhofe responded to the leaked e-mail: “Those wouldn’t have been my words,” Inhofe said. “I wasn’t aware that he was sending that.” However, asked whether he would not consider himself to be an industry partner, Inhofe replied, “I didn’t say that. I just said that’s not the word I would have used.”‘

May 15 News: Wind Is A Massive Success Story In Iowa, Governor Branstad Reminds The Anti-Wind WSJ

A round-up of the top climate and energy news stories. Please post other links below.

Letter to the Editor: Your recent editorials on the federal wind-energy Production Tax Credit (PTC) and renewable portfolio standard (RPS) (“Gouged by the Wind,” May 5 and “Windy Republicans,” May 7) are off the mark. The wind-power industry is an American success story that is helping us build our manufacturing base, create jobs, lower energy costs and strengthen our energy security. [Wall Street Journal]

Little by little, Hawaii’s iconic beaches are disappearing. Most beaches on the state’s three largest islands are eroding, and the erosion is likely to accelerate as sea levels rise, the United States Geological Survey is reporting. [New York Times]

Hundreds of species of mammals in the Western Hemisphere may not be able to migrate with the projected speed of climate change, according to a new study released Monday. [USA Today]

In addition to the West, drought conditions are also prevalent in the Southeast, Mid-Atlantic, and parts of the Northeast as well, along with a small pocket in the Upper Midwest. [Climate Central]

Global warming could affect everything from national forests and grasslands’ vegetation to their stream flows, and the Forest Service has a comprehensive plan to deal with it. [Herald and News]

Retail giant Walmart said it plans to install solar panels on top of about half of its roughly 50 Massachusetts stores as early as August as part of an expansion of solar power in the state. [Boston Globe]

Long-running arguments over who needs to do what to stop the planet from overheating are back in focus this week as rich and poor countries meet in Bonn, Germany, to resume talks on a new global climate treaty. [Associated Press]

An Australian university has embarked upon an ambitious project – hailed as the first of its kind in the world – to simulate how the environment would cope with runaway climate change. [Guardian]

Mexico, the world’s 14th biggest economy, still punches well below its weight in terms of wind energy, ranking 24th on the planet in installed capacity last year, according to the Global Wind Energy Council. But the market is growing fast. [Reuters]

 

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