Domestic Fuel

Just when I thought we would not get much on renewable energy in tonight’s presidential debate from Belmont University in Nashville, a question from the crowd has started the conversation in earnest. A lady asked if the candidates would take the same quick call-to-action approach to solve the looming global warming crisis as we saw in the recent financial crisis.

Republican Sen. John McCain says he supports the development of cleaner-burning vehicles, such as hydrogen-powered cars as part of the solution to solve the climate crisis.

Democrat Sen. Barack Obama says this country has the potential to create five million green jobs in the near future, if we development the alternative energy sources available. He compares what renewable energy could do for the economy with what the computer did for it. Obama reiterates his commitment to solar, wind, geothermal and nuclear power as well.

Obama has taken a direct shot at McCain’s renewable energy record by pointing out that McCain has voted against alternative fuels 23 times. McCain countered that some of those included votes against big tax breaks for Big Oil.

Both men have touched on the issue of a resurgent Russia, fueled by petro dollars… which comes back to the issue of how they are going to make that a non-issue by freeing us from foreign oil.

That’s it for the night. We’ll get together again in about a week when the third and final presidential debate comes on.

A new report from the U.S. Conference of Mayors says 4.2 million Americans will have green industry jobs by 2038… a dramatic increase from the current 750,000 green jobs in the country now.

“This report proves that being green is not optional, it is necessary for a healthy and robust economy,” said U.S. Conference of Mayors President Miami Mayor Manny Diaz. “Creating green jobs is an investment we must continue to make.”

Under assumed scenarios and with government commitment and investments, the report projects Green Jobs could contribute 10% of new jobs through 2038, representing the fastest growing job segment in the U.S. economy. By 2038, the report forecasts that renewable electricity production will create 1.23 million jobs; alternative transportation fuels 1.5 million jobs; engineering, legal, research and consulting positions will be more than 1.4 million; and commercial and residential retrofits at 81,000 jobs, for a total of 4.2 million.

The report assumes that 40 percent of the country’s electricity will come from alternative sources, such as wind, solar and biomass, 30 percent of gas and diesel for the nations vehicles will come from renewables, and homes and businesses will reduce their energy use by 35 percent by 2038.

The report was released during a Forum on the Environment and Energy held in Miami.

The U.S. House of Representatives has reversed direction from just a week ago and approved 263-171 the Senate’s version of the $700 billion bill to fix the nation’s financial crisis.

And this story from Reuters says incentives for biodiesel, wind and solar are also the big benefactors from the vote:

Legislation to extend the renewable energy tax credits, which were set to expire at the end of the year, had been stalled by a dispute between the House and the Senate over how to pay for the tax breaks.

The bill also extends a $1 per gallon production tax credit for biodiesel through 2009. This measure closes a “splash and dash” loophole where companies mixed foreign biofuels with U.S. biodiesel to receive the U.S. subsidy, but then sold the fuel at a discount to European markets.

The nation’s first intrastate public offering for the development of a wind project has had a successful completion… just four months after it was made available to the public.

National Wind’s High Country Energy, LLC, has announced that it has raised an undisclosed amount of capital from Minnesota investors that will be used to develop a series of utility-scale community-owned wind farms in Dodge, Olmsted and Mower Counties, Minnesota:

“Through the offering we now have approximately 60 additional Minnesota investors in High Country Energy, helping solidify our goals for community participation,” says Mark Lucas, Vice President of National Wind, and Project Lead for High Country Energy. “The wind energy business represents an exciting growth and investment opportunity and this offering has allowed interested investors to purchase a position within it. Wind energy is more mature than other renewable energy sectors–it has good track record and is growing rapidly. The U.S. wind industry is expected to grow from 16,800 megawatts of installed capacity in 2007 to over 49,000 in 2015.”

Proceeds from the offering will be used to develop High Country Energy’s multiple phases.

Company officials expect the High Country Energy wind projects to cost hundreds of millions of dollars to build. They add the money raised will help cover initial development, and more will be needed for construction of the wind farms.

As lawmakers wrestle over a bailout for Wall Street, some renewable energy producers on Main Street are wondering if they’ll at least get an extension of some valuable tax credits.

This story from Agriculture Online quotes Senator Chuck Grassley, the ranking Republican on the Senate Finance Committee, as saying that if Congress adjourns without passing a tax relief bill, it would be a catastrophe because of how reliant wind and biodiesl are on their tax breaks:

The tax bill, which also would prevent more Americans from being caught by the Alternative Minimum Tax when they file next April, contained several alternative energy tax breaks championed by Grassley. It extended a tax credit for wind energy through 2009, as well as a $1-per-gallon tax credit for biodiesel.

Grassley said he wasn’t certain what the effect of not extending alternative energy tax credits beyond the end of this year would be. In 2004, a similar delay in extending the tax credits for wind shut down that industry for six months, he said, adding that he believes the industry is stronger today.

Grassley says he doesn’t think Congressmen will want to go home and face constituents who would now have to pay the Alternative Minimum Tax. About 23 million people would have to pay the AMT… as much as an extra $2,000 in the tax bills for those who make less than $200,000.

The first presidential debate between Republican Sen. John McCain and Democratic Sen. Barack Obama just wrapped up, and I have to say I was a little disappointed in how little renewable energy was part of the conversation. I know that it was a debate on foreign policy, but what could be bigger on our foreign policy than reducing our dependence on foreign oil?

Anyway, alternative energy did get a couple of mentions. Just a few minutes ago, Obama voiced his support for renewable energy sources in this country, mentioning solar, wind and biodiesel by name. He also went on the attack against McCain, pointing out that the Arizona senator has voted against alternative energy 23 times in his 26 years in Congress.

McCain countered that no one who is from Arizona is against solar power.

Earlier, McCain said, if elected president he would end ethanol subsidies… but then pledged his support for alternative energy. Obama said he voted in favor of the current energy proposal, which has lots of incentives for renewable energy… but tax breaks for big oil companies… while McCain proclaimed his opposition to those tax breaks to Big Oil… and thus, his opposition to the renewable energy incentives.

Hope you heard what you need to know to make your decision in November. We’ll keep listening and pass along what we hear as it pertains to Domestic Fuel.

Renewable energy made up just more than 10 percent of all the domestically-produced energy in the U.S. in the first half of this year and about 7 percent of that energy used in the country.

This story from the Greentech Media web site says the information comes from a U.S. Energy Information Administration report released this week:

According to the report, renewable energy accounted for 3.61 quadrillion British thermal units of the 34.16 quadrillion Btu domestically produced energy the country used from January to June.

“The significant contribution being made by renewable energy sources to the nation’s energy supply documented by the U.S. Energy Information Administration is far greater than most Americans realize,” said Ken Bossong, Executive Director of the Sun Day Campaign, a nonprofit that promotes renewable energy. “Repeated statements by nuclear and fossil fuel interests that renewables contribute only a tiny fraction of the nation’s energy supply are not only misleading but flatly wrong.”

The rub is the country used 50.67 quadrillion Btu of energy, and about 16 1/2 quadrillion Btu were imported. While progress has been made in the field of renewables, the bottom line is we’re still just too dependent on non-renewable, foreign energy sources… but it’s getting better.

Things could be looking up for renewal of renewable energy incentives as the U.S. Senate has approved $17 billion in tax credits for wind, solar, geothermal and ocean energy systems.

This article from cleantech.com says passage comes on the heels of last week’s similar vote by the U.S. House (see my Sept. 17th post):

The tax credits, due to expire at the end of the year, now must be reconciled with those approved by the House before heading to the president, who has said he will likely support the measure. The House is expected to take up the bill Wednesday.

* Extends tax credits by eight years for residential and commercial solar systems, one year for wind energy, and two years for other renewable energy sources, such as wave and ocean tide.
* Gives a 30-percent tax credit to homeowners who install solar systems and businesses that install solar, wind, geothermal and ocean energy systems.
* Gives a 10-percent tax credit to homeowners for energy-efficiency improvements, such as insulation, replacement windows, water heaters and heating and cooling equipment.
* Offers a tax credit of $2,500 to $7,500 for plug-in electric cars, depending on the battery capacity of the vehicle.

Senate leaders are encouraging House members to approve this version of the bill as the best chance for the President to sign the bill to get the credits renewed before the end of the year.

Rhode Island is looking to literally map out its wind energy future.

This story from the Providence (RI) Journal says that the state has enlisted oceanographers, engineers and other experts from the University of Rhode Island to determine where would the best places be for off-shore wind turbines… a massive $3.2-million effort:

Soon, the state is scheduled to select one of seven companies that have submitted proposals to build and operate wind turbines designed to meet Governor Carcieri’s goal of providing enough power to supply 15 percent of the state’s electricity. Cost estimates have run as high as $1.9 billion.

Rhode Island’s plan is to have the state’s Ocean Special Area Management Plan find the most suitable sites for wind turbines so Rhode Island can avoid the lengthy and costly controversy that has surrounded the Cape Wind project proposed for waters off Nantucket. Most other states have their energy offices or economic development personnel leading their wind-farm siting efforts. Massachusetts just enacted a law this year to plan uses of its coastal waters, but Rhode Island officials believe they are ahead because they have been doing such planning for decades.

Rhode Island officials believe this plan will make them the most competitive in the off-shore wind energy game.

Five Midwestern states have joined together to develop an electric transmission system that should help promote wind energy in the region.

This AP story from the St. Paul (MN) Pioneer Press says Iowa, Wisconsin, Minnesota, North and South Dakota have formed the Upper Midwest Transmission Development Initiative:

The coalition of governors will study the costs of developing more wind energy and delivering it on power lines. The states also plan to propose some form of financing new transmission lines.

State officials also will seek solutions to a number of current barriers to additional transmission investment, such as how costs of new power lines should be allocated.

The group will meet for the first time in October and hopes to have results of a study of regional electrical transmission capacity next year.

The latest version of the energy bill, which includes an extension of the $1-a-gallon biodiesel tax credit and federal incentives for wind and solar energy (which were all set to expire at the end of this year), has passed the U.S. House, but its future is most assuredly less assured as it moves on to the U.S. Senate.

Senate Majority Leader Harry Reid (D-Nev.) is holding votes on four separate energy bills, possibly starting as early as tomorrow (Thursday, Sept. 18th), as lawmakers hit the final week before they go on their fall recess starting Sept. 26. This story from the Washington, D.C.-based newspaper The Hill says it might be too much with too little room and time for compromise to get a bill that will pass:

Few senators expressed optimism that the two parties could resolve deep disagreements in such a compressed, politically charged atmosphere, especially with 60-vote thresholds likely necessary. Reid himself suggested a lame-duck session after the Nov. 4 elections might be necessary if the issue cannot be resolved.

Still, there is some reason for hope. Both Democrats and Republicans say the energy debate will be simplified by passing alternative energy tax incentives in a separate tax package, leaving only the sticky problem of expanding offshore oil drilling.

So it looks like the incentives for renewable energy could get extended even if the energy bill as a whole is doomed. As I said yesterday, stay tuned… this story is far from over.

The U.S. House has approved a measure that will renew some tax credits for wind and solar power that were set to expire at the end of this year, as well as allowing more drilling for offshore oil.

This story from the San Francisco Chronicle says passage came after some contentious debate on the issue:

[House Speaker Nancy] Pelosi hailed the 236-189 vote as a victory because the bill also included Democratic priorities such as stripping oil companies of $18 billion in tax breaks, renewing expiring tax credits for wind and solar, and requiring electric utilities to get 15 percent of their power from renewable sources by 2020.

The measure “will put us on the path toward energy independence” and make “Big Oil pay for its fair share of our transition to a clean, renewable energy future,” Pelosi said.

The measure is far from a done deal as it still needs to make it through the U.S. Senate where there are three other energy bills that are very different than the House bill. Plus, the White House has threatened to veto the measure.

I’m sure there’ll be more to talk about on this in the next few days and weeks… stay tuned.

Oklahoma might be famously known for its “winds that come sweepin’ down the plains,” and one of the leading universities in the state is going to put that to work.

The Oklahoma City Oklahoman reports officials with the University of Oklahoma in Norman have inked a deal with Oklahoma Gas and Electric to buy nothing but wind power for the campus by the year 2013… a significant increase over the 10 percent wind power the school uses now:

[OU President David] Boren said the switch will cost about $60,000 in initial surcharges, but the university could end up breaking even or making a profit by selling carbon credits on the Chicago Climate Exchange and participating in investment funds with OG&E.

Boren said OU would be the nation’s largest public college to convert to renewable energy.

The deal is dependent on a new wind farm going up near Woodward, OK and about 140 miles worth of transmission lines to carry the power to Oklahoma City… both of which still to be approved by the state’s Corporation Commission.

While much of the nation’s economy is on shaky ground right now, places in the Midwest, such as Iowa, seem to be doing all right… thanks to wind energy and biofuels, such as biodiesel and ethanol.

This story from the Burlington (IA) Hawk Eye says Mike Tramontina, director of the Iowa Department of Economic Development, recently told a group in Fort Madison that the state is fortunate to be on the cutting edge of the alternative energy market:

While some industries such as housing and auto have taken nosedives, that has been offset by industries dealing with infrastructure, energy and bio-technology, he said.

Iowa now exports more ethanol than it uses, he added.

Tramontina admits that the high price of corn and soybeans has taken a bit of the wind out of the ethanol and biodiesel industries’ sails. But he expects they will come up with new innovations and increased efficiency to help keep them viable.

A report issued by the the Sierra Club, United Steelworkers, the Blue Green Alliance, Natural Resources Defense Council and Audubon New York says that investment in the biodiesel and ethanol industries, wind energy, and solar power could produce four times the number of jobs as compared to investing that same amount in the petroleum oil sector.

And this article from the New York Times says the number of those jobs being good-paying… at least $16 an hour… could be triple what the petroleum industry offers:

Such jobs are based on the proposed investment of $100 billion over two years, through a cap-and-trade program like those sponsored last year in Congress that would “drive private investments into clean energy and raise public revenue through carbon permit auctions.” And spending $26 billion on retrofitting, for example, could save $5 billion in energy costs a year, for a net savings after five years or so, according to the report.

The article goes on to point out how one New York firm has hired 15 people who used to be homeless or incarcerated to haul waste restaurant grease to a facility to turn it into biodiesel… renewing energy and people’s lives.