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Measuring Your Energy Investments for ROI

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Jim Hansen, an independent financial consultant, runs every investment through the "peak oil test". In this presentation from the ASPO-USA 2008 conference, he explores traditional energy investments; opportunities in renewables, rail, and electrifying the transportation system; areas to avoid like airlines and trucking; and what to watch, like electric cars and the unwinding of globalization.

Ecologist and professor Charlie Hall looks at energy return on energy invested. Whether it's a cheetah chasing antelope, or humans making ethanol -- the energy we get back has to exceed the energy we put in, or the story is over. He compares oil's energy return in the 1930's (1 calorie invested returned 100 calories of energy) with the current situation (1:12) and still declining.

Presenters respond to the final question in the Q&A session at the close of ASPO-USA's 2008 conference: how do we better harness the intellect, energy and commitment at this conference, and what one thing would you have people ask an elected official to do about peak oil?
 
Peak Moment Conversation #136 "Energy Investment - Energy Return" with financial consultant Jim Hansen, and ecologist Charlie Hall, plus final Q&A from the ASPO-USA 2008 conference in September, is now online at www.peakmoment.tv (video), and www.globalpublicmedia.com (audio and video).

Economic Stabilization Act of 2008

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The energy efficiency provisions include:
  • An extension of the commercial buildings tax deduction to the end of 2013.
  • An extension of the tax credit for efficient furnaces, boilers, air conditioners, and water heaters; and insulation and window upgrades to existing homes (covering improvements installed in 2009, but not 2008).
  • A one-year extension of the new energy-efficient home tax credit, to the end of 2009.
  • Three years of manufacturer tax credits for sales of high-efficiency refrigerators, clothes washers, dishwashers, and dehumidifiers (2008-2010).
  • A new tax credit for plug-in hybrid vehicles purchased starting in 2008 and extending until shortly after the number of qualifying vehicles reaches 250,000.
  • A new 10% investment tax credit for combined heat and power systems (through 2016)
  • An extension of fuel cell and microturbine credits to the end of 2016.
  • Accelerated depreciation for smart meters and smart grid systems.
  • Extension of an existing bonding program for green buildings and sustainable design, and establishment of a new energy conservation bond program that would help local and state governments to fund energy conservation efforts.

The bill pays for these provisions by restricting several oil and gas industry tax breaks, and tightening some provisions on the sale of stocks.

For more information: The Tax Incentives Assistance Project (TIAP), sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field, is designed to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005 and subsequently amended several times.

http://www.energytaxincentives.org/


California tops the list of U.S. states employing energy efficiency as the "first fuel" to grow their economies while meeting electricity demand, combating global warming, and contributing to U.S. energy security, according to a new report released today by the American Council for an Energy-Efficient Economy (ACEEE). The 2008 State Energy Efficiency Scorecard rated and ranked state-level action on model energy efficiency policies, programs, and practices.

With California claiming the number one ranking, Idaho rated as the "most improved" state since ACEEE's first state scorecard report graded state action through 2006.


The 2008 report is ACEEE's latest edition in a periodic analysis of state-by-state ranking on the adoption and implementation of energy efficiency policies, which aims to recognize leadership among the states and identify best practices. The report ranks states on a broad array of energy efficiency policy initiatives, including:

  • Utility-sector and public benefits efficiency programs and policies
  • Transportation and land use policies
  • Building energy codes
  • Combined heat and power (CHP)
  • Appliance efficiency standards
  • Energy efficiency in public buildings and fleets
  • Research, development, and deployment (RD&D)
  • Financial incentives for efficient technologies
The 2008 State Energy Efficiency Scorecard report is available for free download at www.aceee.org/pubs/e086.htm or a hard copy can be purchased for $30 plus $5 postage and handling from ACEEE Publications, 529 14th St, N.W., Suite 600, Washington, D.C. 20045, phone: 202-507-4000, fax: 202-429-2248, e-mail: aceee_publications@aceee.org.

Sustaiinable Energy Policy High on Obama's Agenda

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Renewable energy is a high priority for President Elect Obama.  His jobs program emphasizes rebuilding the infrastructure, including roads and bridges, schools and weatherizing homes.  This slideshow synthesizes the energy priorities established by Obama during his campaign and in the days of the transition. Renewable energies, including energy efficiency figure prominently in his energy plan.


Obama Energy
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Clean Edge has just released the Utility Solar Assessment (USA) Study, making the case that solar power has the potential to reach cost parity with retail-electricity rates in most regions of the U.S. in less than a decade — but only if electric utilities step up to the plate.

The free report (Download — PDF), published in partnership with Co-op America, provides a robust roadmap for electric utilities to accelerate the growth of solar energy.

Incorporating the latest technology, market, and policy breakthroughs, and interviews with key industry players and experts, it shows how a coordinated effort among regulators, the solar industry, and utilities can enable solar to reach 10 percent of U.S. electricity generation by 2025.

New York's Renewable Energy Task Force recently announced 16 recommendations as part of a roadmap to significantly increase renewable energy generation in New York. These recommendations include more solar energy production, funding the state's program to get 25 percent of New York's electricity from renewable energy by 2013, and new business incentives targeted to attract renewable energy producers and expand the state's "green collar" workforce.

The Renewable Energy Task Force was charged with identifying barriers to increased production of renewable energy, recommending policies and financial incentives to overcome those barriers, and identifying future market areas where additional research and development investment is necessary.

Recommendations Highlights

Photovoltaic collector panels at 5 Rivers Education CenterThe task force recommends an eightfold increase in solar energy production by 2011


Significant recommendations of the task force's first report include:

  • Developing eight times more solar photovoltaic energy generation in New York--more than 100 megawatts by 2011;
  • Increasing the renewable energy supply in New York State to meet 25 percent of electricity demand by 2013, and fully funding the Renewable Portfolio Standard to make it happen;
  • Developing new business incentives to attract renewable energy technology companies to New York in order to build industry clusters in solar, wind, biomass and other technical areas;
  • Changing the law to allow and encourage New York companies to produce their own renewable energy "on site" and deliver excess power back to the energy grid known as "net metering;"
  • Developing and supporting a "green collar" workforce of skilled labor to support renewable energy technology companies by coordinating training programs, expanding and enhancing those programs as necessary, and making training opportunities available to residents of disadvantaged communities, minority- and women-owned companies, and other small businesses.

Renewables Create Jobs

The task force set forth key data throughout the report demonstrating that investment in renewable energy creates jobs and increases tax revenues. Some examples include:

  • Up to 43,000 new jobs in New York could be created by the renewable energy production needed to meet the requirement that 25 percent of New York's electricity come from renewable sources.
  • Renewable energy and energy efficiency industries could create up to 40 million jobs and generate up to $4.5 trillion in revenue in the United States by 2030-a four-fold increase over current revenues.
  • Over the next 20 years, $1 billion in economic benefits are expected to result from the roughly $500 million that New York has so far committed in renewable energy funding through the Renewable Portfolio Standard-a 100 percent return on investment, not counting economic spillover, multiplier effects, and environmental quality-of-life gains from renewable energy production.
photovoltaic collector panel
Businesses are encouraged to produce energy
on site from renewable sources


Taking immediate action on the task force's recommendations, Paul Tonko, President and CEO of the New York State Energy Research and Development Authority (NYSERDA), indicated that NYSERDA would immediately invest $4 million in green collar workforce initiatives, on top of the $2 million in this year's Executive Budget and would also establish a Wind Energy Research and Testing Center to develop new technologies and provide workforce training.

DEC Commissioner Pete Grannis said: "Clean energy is crucial on so many fronts: energy conservation, pollution reduction, combating climate change, and developing green businesses and jobs, just for starters. The task force's recommendations will continue our leadership on those issues. And, importantly, they will establish a roadmap to stimulate renewable energy development in a way that is real and tangible."

About the Renewable Energy Task Force

Composed of 20 members, the Renewable Energy Task Force represents a diverse array of stakeholders in the renewable energy field, including the renewable energy and alternative fuel industries, environmental and agricultural communities, academia, public utilities, local and state government entities, and experts in energy policy, green building construction and economic development.

In September 2007, the task force held a public meeting in New York City to release its preliminary findings. The findings were based on recommendations developed by numerous task force subcommittees and vetted using the following criteria: what would generate the most renewable energy; what would have the most environmental benefit; and what would least impact ratepayers, taxpayers and consumers financially.

The details of the task force's first report were reached by a consensus of all of its members. Its final report is due in December 2008.

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