May 2008

From the headlines, James Prichard of The Associated Press, today reported on the price increases scheduled for June 1 from one of our nation's largest firms, Dow Chemical. "Dow: Country in 'true energy crisis'" reports:

Dow Chemical Co. will raise its prices by up to 20 percent almost immediately to offset the soaring cost of energy, and the CEO of the chemical giant lashed out at Washington on Wednesday for failing to develop a sound energy policy.

Dow supplies a broad swath of industries, from agriculture to health care, and any sizable price jump would likely affect almost all of them. The price increases will take effect Sunday and will be based on a product's exposure to rising costs. Dow said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, in 2002 and that could climb fourfold to $32 billion this year.

"For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy," Chairman and Chief Executive Andrew Liveris said in a statement.

"The government's failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S."

From the headlines, James Prichard of The Associated Press, today reported on the price increases scheduled for June 1 from one of our nation's largest firms, Dow Chemical. "Dow: Country in 'true energy crisis'" reports:

Dow Chemical Co. will raise its prices by up to 20 percent almost immediately to offset the soaring cost of energy, and the CEO of the chemical giant lashed out at Washington on Wednesday for failing to develop a sound energy policy.

Dow supplies a broad swath of industries, from agriculture to health care, and any sizable price jump would likely affect almost all of them. The price increases will take effect Sunday and will be based on a product's exposure to rising costs. Dow said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, in 2002 and that could climb fourfold to $32 billion this year.

"For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy," Chairman and Chief Executive Andrew Liveris said in a statement.

"The government's failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S."

So you took the big plunge – you bought a PV (photovoltaic solar energy) system for your home…and now you're wondering, what next? Well, there are a few things you can add to your green repertoire that, while important won't break your bank or pinch your pocketbook. Why not try these on for size:

Billionaire oilman T. Boone Pickens is sinking billions of dollars into a new wind farm in Texas, reports CNN this week. He says America can't keep spending "$600 billion a year for oil."

CNN's Ali Velshi talked with the oil legend, whose wind farm is likely to become the biggest in the world, producing enough power for the equivalent of 1.3 million homes.

Velshi: What's your view of wind power? It's one of several things that we should be looking at in terms of powering our homes, electrical power? We get most of it from coal and natural gas, and some from nuclear. Are you thinking it's one of the formats of power we should be thinking about, or is this going to be bigger than we all thought?

Pickens: The Department of Energy came out with a study in April of '07 that said we could generate 20 percent of our electricity from wind. And the wind power is — you know, it's clean, it's renewable. It's — you know, it's everything you want. And it's a stable supply of energy.

The pressure is on, again. The Renewable Energy and Job Creation Act of 2008 bill passed the House vote yesterday. The bill extends the production tax credit (PTC) for one year, extends the investment tax credit (ITC) for six years, and authorizes $2 billion for new clean renewable energy bonds to finance renewable energy facilities. Now it heads to the Senate.

According to The Los Angeles Times, the White House again threatens veto.

To be expected, the green energy sector is weighing in heavily. From Stephen Lacey, staff writer with Renewable Energy World:

With Wednesday's passage of a House bill that could extend the production and investment tax credits, many in the industry are cautiously hoping for an end to a political standoff that has threatened to cripple the nation's renewable energy industry.

"For the Senate, the choice is now clear: they can either protect tax loopholes for privileged investment managers, or create tens of thousands of green-collar jobs in a troubled economy," said Rhone Resch, president of the Solar Energy Industries Association (SEIA) in a statement issued after Wednesday's House vote.

For his full report and more industry expert quotes, see "'Last Best Chance' for Renewable Energy Tax Credits?"

Today is the National Day of Action on Clean Energy. In an effort to get American citizens to push the stalemate on Capitol Hill to an extension on clean energy tax incentives, over 100 advocacy groups have banded together to make a difference.

From our friends at Vote Solar: "At a time when we should be throwing everything we have into clean energy, Congress is at a stalemate. The House and Senate have each passed versions of a bill to extend clean energy tax credits that the other side finds distasteful. And now here we are, with renewable energy projects being put on hold, jobs being lost, and investment dollars moving overseas.

There's a compromise bill getting ready to move (HR6049; summarized here (pdf)), and the only thing that is going to break the deadlock is public pressure. Congress needs to feel that this is acutely important to their constituents, and to that end, we helped organize a National Day of Action on Clean Energy. Today, over 100 organizations and companies are planning to raise as much ruckus as possible. Will you add your voice?"

From Renewable Energy World: "Congress has been trying unsuccessfully for a year to extend tax credits for individuals, businesses and developers who invest in clean power. When the credits expire at the end of this year it’s estimated that more than 100,000 jobs and close to US $20 billion in investment will disappear."

For more information about the National Day of Action, visit Solar-Nation.org.

Chris Laszlo is the author of "Sustainable Value; How the World's Leading Companies are Doing Well by Doing Good," (Stanford University Press, 2008). In his San Francisco Chronicle article this week, entitled "Sustainability for competitive advantage," he espouses taking sustainability measures.

Far from being a cost to society and business, sustainability is emerging as a huge opportunity for both. The key to sustainability is innovation, and that in turn spells competitive advantage, which economists define as above-average profits. If crisis is the womb of creativity, then there is plenty to spur innovation. The World Economic Forum's Global Economic Risks 2008 report states, "Uncertainty about the short- and medium-term future is as high as it has been for a decade." The world is now confronted with an unprecedented number of global systemwide challenges, from the liquidity crisis in financial markets to the threat of new diseases on a warming planet. The question we face is: Are we going to collectively wring our hands, decrying the declining state of the world, or are we going to get on with the business of constructing a better future?

Media Update the San Francisco Chronicle, reporter Peter Darbee in his "Congress must side with renewable energy tax credits"

On Feb. 27, the House of Representatives passed a timely measure to prevent the expiration of these tax credits at the end of this year. On April 10, after several failed tries, the Senate finally passed similar legislation – but without spending cuts or new revenue to offset the cost, a deal-breaker for House leaders. If unresolved, this standoff could deal a devastating blow to the renewable energy industry.

Failure by Congress to renew the credits could cost the United States more than 100,000 jobs and billions of dollars annually in new investments (Helio blog bold).

These losses would be felt across the country, in states such as California, Colorado, Illinois, Iowa, Minnesota, North Dakota, Oklahoma, Oregon, Pennsylvania, Texas, and Washington.

Solar energy is one of California's hottest targets of new venture investment. Since the start of 2007, PG&E alone has signed contracts with solar producers for 1,100 megawatts of power, a testament to the industry's enormous commercial progress.

But the Washington Post reports that bankers are now telling solar companies to hold off on new projects that won't be completed this year, due to uncertainty over the fate of tax credits. More than 20,000 solar-related jobs in California alone are at risk, according to industry studies.