CleanTechnica

As Americans spend $41 million in foreign oil an hour and are left broke at the pump, what plan does Obama have to solve this problem?

Oil is destined to be a heated issue in this upcoming presidential election and Barack Obama’s opposition to the gas tax “holiday” has already been a hot topic. Obama has made it clear that national energy policy needs to be taken in a new direction.

“We send a billion dollars to foreign nations every single day and we are melting the polar ice caps in the bargain,” said Obama. “That has to change.” Read the rest of this entry »

As a barrel of oil hovers around $130, the news has been bombarding us with the obvious effects of high oil prices. As most people weep at the pump, some environmentalists are rejoicing. Gas consumption is down, but there are additional hidden costs to high gas prices that leave even green minded folks with a frown.

1-Difficult to Extract Oil & High Environmental Impact

High oil prices are making it economically viable to utilize oil that is difficult to extract. One example of this is just north of the border.

In the U.S., our single biggest source of foreign oil is from Canada. Although this may be reassuring from a foreign policy standpoint, much of this oil comes with a steep environmental price tag. Known as tar sands oil, 2 tons of sand are needed to produce one barrel of oil in a very resource and energy intensive process.

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I am a nuke. There, I got that out into the open. I am also an environmentalist in the sense that I care very deeply about the planet that we all share, want to use it resources wisely so that many future generations can also enjoy it and believe that humans have the power to make the world essentially uninhabitable. I do not have faith in humans, but I do understand that they can be incredibly good, incredibly bad and are generally somewhere in between on the spectrum.

“Belief” and faith are also not words that I apply to our inventions or creations. Some of them are good and beautiful and some that share many of the same basic building blocks are ugly or useful only for evil purposes. Our job as people who want to live on a clean planet and to share the joy in doing so is to think, evaluate and choose, not to “believe”. We should not accept other people’s lists of dogmas at face value; there are many people in the world who are not particularly upfront about their agendas when they suggest that we make certain important choice.

Whenever I hear someone tell me that I need to spend my money a certain way, I am immediately suspicious. In my 48 years on the planet, I have often found that those people have sales or marketing jobs and are looking for a way to “close a deal” even if they have to resort to scaring their potential customers. Read the rest of this entry »

The average Chicagoan spends an hour and a half commuting to and from work each day. With the second largest public transportation system in the country, one million people ride city buses each day. Mayor Daley considered both facts when he devised a plan aimed at easing congestion, commuting times, and air pollution in the central business district. A $153 million federal grant can help make this plan a reality.

Priority Given to Buses Over Cars

The first part of the plan entails creating a 100 mile bus corridor with dedicated bus lanes during peak hours. Kiosks selling bus tickets allow passengers to quickly board buses and many routes will run express, resulting in fewer stops. Traffic lights will be programmed to turn green for buses, helping to keep them in motion. Hybrid buses will be used, reducing pollution in these heavily populated areas.
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By an impressive tally of 88-8, the Senate approved The Clean Energy Tax Stimulus Act (S.2821) as an amendment to HR.3221, which aims to mitigate the economic impact of the current housing crisis.

The renewable energy tax credits were slipped into a housing bill that that did not end up looking the way its lead author, Sen. Chris Dodd really intended it to, remarking earlier in the week that it was “a housing bill, not a Christmas tree.”

However, will the production tax credit and investment tax credit ever make it to the President’s desk to sign? Read the rest of this entry »

Despite all the talk about solar energy, it only generates a measly .1% of electricity in the US. Meanwhile, national demand for electricity is growing by 2% annually. Considering that solar technology has been in use for decades, why is it not more widespread?

Cheap Fossil Fuels

Even though sunlight is free, fossil fuels in the US have been widely available at a very low cost. There are extensive coal fields all across the country. Nationally, coal produces about 50% of our electricity, with a majority of it being used for base load. That means that coal plants produce a steady stream of electricity a majority of the time.

Natural gas however has skyrocketed in price over the last 6 years. It is widely used to generate electricity during peak times, typically on warmer days when we are cranking up the air conditioning. Natural gas plants can start up quickly and come to the rescue when needed, but the cost of fuel has gotten quite high recently.

Solar energy is very capable of producing peak electricity and is ideally suited for for it. Solar radiation is what causes us to need air conditioning in the first place. The utility companies have started taking notice of solar energy’s potential to generate electricity during peak demand.

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But is the bill different enough to pass?

As was reported at Hill Heat, and elsewhere, Senators John Ensign (R-NV) and Maria Cantwell (D-WA), led a bipartisan group of senators in announcing a bill to incentivize the development of renewable energy and expand energy efficiency in buildings, homes, and appliances. The Clean Energy Tax Stimulus Package of 2008 (pdf) will provide some certainty to investors and those individuals and businesses that are considering adding solar, wind, biomass, methane capture, or other clean energy technologies.

Teetering on the brink of passage

Renewable Energy tax packages always face trouble in the Senate, and this dates back to our first energy crises in the 1970s. In a more recent example, a tax package failed repeatedly on the Senate floor, including a $22 billion version that fell one vote short of winning approval as an amendment to a broader energy bill in December. Many Republicans balked at the funding mechanism for the previous renewable energy incentives because they rescinded tax breaks from the big energy companies (which was spun by the right as a “tax increase.”).

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Many businesses are putting the sun to work for them and saving a bundle on utility bills. While much of the country is experiencing increasing energy costs, some are looking to the sun as a solution.

Although nearly all solar applications will eventually save money, a large upfront investment is required. Some businesses are in the position to save a lot more money than others. Let’s explore which businesses can benefit the most from solar energy.

Use Large Quantities of Hot Water

Solar thermal technology is utilized to heat water and is frequently an impressive 70-90% efficient. Restaurants, gyms, apartment buildings, and laundromats are examples of ideal applications. Exactly the opposite of a gas or electric hot water heater, the more use the solar system gets, the larger the energy and cost savings.

Businesses Paying High Tax Rates

Two federal incentives exist to encourage solar installations. One is a federal tax credit of 30% that is set to expire at the end of the year (link). The tax credit is not affected by the tax rate. Businesses can also take an accelerated 5 year depreciation of the solar system. Businesses that pay a higher tax rate, will enjoy greater the tax savings from an accelerated depreciation, while businesses that don’t need additional write-offs won’t save a penny.

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The Solar Thermal Edition

In my first post about the feast or Famine Cycles of American Clean Energy Development, I discussed renewable energy more broadly and used the example of wind to show my point. I also touched upon the up and down nature of federal funding for renewable energy deployment in the late 70s and early 80s. With that said, the following examination adds some more context with a historical-institutional perspective of what went down in the early 80’s, how, and why. And in the spirit of some of the earlier posts this week that covered the technology of solar thermal, and the practical application of solar thermal technology to entire neighborood developments, I have decided to follow suit by writing about solar thermal as well. I hope to show that the decline and slow fazing out of federal support for solar thermal research and development during the Reagan and George Bush administrations has had a substantial effect on where the industry is today. Read the rest of this entry »

Since the energy crisis of the late 1970s, the federal government has employed various policy mechanisms to support renewable energy development. Driving through the neighborhoods that were developed in the late 70s and early 80s, it’s not hard to notice all of the old rooftop solar water heating arrays that were installed because people were taking advantage of a tax credit made available by the Carter administration. But the tax credit expired after Reagan took office, which is why I don’t see rooftop solar hot water nearly as much anymore (at least not recently installed).

The same thing will happen if the renewable energy tax credits expire Read the rest of this entry »