Hill Heat

From the Wonk Room.

The Washington Post’s Al Kamen reports that there’s “buzz” that the Obama transition is “looking hard at some scientific types” to lead the Energy Department. Dr. Steven Chu, the Nobel laureate director of the Lawrence Berkeley National Laboratory, is reportedly a dark horse candidate.

In a presentation at this summer’s National Clean Energy Summit convened by the University of Nevada Las Vegas, Sen. Harry Reid (D-NV), and the Center for American Progress Action Fund, Dr. Chu described why he has moved from his background in experimental quantum physics to tackling global warming:

Consider this. There’s about a 50 percent chance, the climate experts tell us, that in this century we will go up in temperature by three degrees Centigrade. Now, three degrees Centigrade doesn’t seem a lot to you, that’s 11° F. Chicago changes by 30° F in half a day. But 5° C means that … it’s the difference between where we are today and where we were in the last ice age. What did that mean? Canada, the United States down to Ohio and Pennsylvania, was covered in ice year round.

Five degrees Centigrade.

So think about what 5° C will mean going the other way. A very different world. So if you’d want that for your kids and grandkids, we can continue what we’re doing. Climate change of that scale will cause enormous resource wars, over water, arable land, and massive population displacements. We’re not talking about ten thousand people. We’re not talking about ten million people, we’re talking about hundreds of millions to billions of people being flooded out, permanently.

As Dr. Chu explains in the above video, the optimal way to reduce greenhouse emissions is to waste less energy, by investing in energy efficiency. He demolished the myth that we can’t reduce our use of energy without reducing our wealth by offering numerous counterexamples, or, in his scientist’s jargon, “existence proofs.” Applause broke out when he described how companies, after claiming efficiency gains and lowered costs were impossible, “miraculously” achieved them once they “had to assign the jobs from the lobbyists to the engineers.”

Chu continued by discussing what he has done to develop “new technologies to transform the landscape.” He discussed the Helios Project, the research initiative Berkeley Lab launched for breakthrough renewable energy and efficiency technology. In addition to research into energy conservation, Berkeley Lab researchers are pursuing nanotech photovoltaics, microbial and cellulosic biofuels, and chemical photosynthesis.

Dr. Chu concluded his address with a reminder why this challenge is so important:

I will leave you with this final image. This is – I was an undergraduate when this picture was taken by Apollo 8 – and it shows the moon and the Earth’s rise. A beautiful planet, a desolate moon. And focus on the fact that there’s nowhere else to go.

From the Wonk Room.

A major new study of the success of California’s green economy by economist David Roland-Holst finds that “California’s energy-efficiency policies created nearly 1.5 million jobs from 1977 to 2007, while eliminating fewer than 25,000.” Today, California’s per-capita electricity demand is 40 percent below the national average:

Total electricity use, per capita, 1960-2001

Instead of household income being lost to the capital intensive energy sector, Californians have enjoyed the benefits of their wages being plowed into job creating sectors, such that “induced job growth has contributed approximately $45 billion to the California economy since 1972.”

Energy Efficiency, Innovation, and Job Creation in California, by David Roland-Holst, an economist at the Center for Energy, Resources and Economic Sustainability at the University of California, Berkeley, is the first study of how the savings from California’s energy efficiency standards affected its economy through “expenditure shifting” away from the energy sector. The author explains:

When consumers shift one dollar of demand from electricity to groceries, for example, one dollar is removed from a relatively simple, capital intensive supply chain dominated by electric power generation and carbon fuel delivery. When the dollar goes to groceries, it animates much more job intensive expenditure chains including retailers, wholesalers, food processors, transport, and farming. Moreover, a larger proportion of these supply chains (and particularly services that are the dominant part of expenditure) resides within the state, capturing more job creation from Californians for California. Moreover, the state reduced its energy import dependence, while directing a greater percent of its consumption to in-state economic activities.

Join USCHPA for a strategy session featuring policymakers, practitioners, financiers and pundits discussing the future of clean energy technologies and offering guidance on ways to maximize the role of clean heat and power as a solution to climate change.

Tentative Agenda

7:00 AM – 8:00 AM

• Continental Breakfast

8:00 AM

• Welcome Back, Jessica Bridges, Executive Director, USCHPA

8:00 AM – 9:00 AM

• Future Market Opportunities for Energy Efficiency

Session Leader: Paul Thomsen, USCHPA Vice Chairman and Director of Policy and Business Development, Ormat Technologies This session will address the future of clean heat and power from the C-level perspective. Where are the big opportunities? Will increasing climate change sensitivities, carbon reduction initiatives, and fuel prices align to create the perfect opportunity for energy efficient technologies? If so, what do CEOs need and want from Wall Street?

9:00 AM – 10:00 AM

• Financial Forecast for Clean Heat and Power

Session Leader: Justin Rathke, Director, Policy and Business Development, Capstone Turbine Corporation

Policymakers, industry, and the general public are all talking carbon reduction; what’s the financial impact? How is industry reacting to, and where does Wall Street stand on a potential U.S. carbon trading regime? This session will focus on industry trends for clean heat and power from an investor perspective.

10:00 AM – 10:15 AM

• Break

10:15 AM – 11:15 AM

• International Perspectives on CHP: How to Lead Not Follow

Session Leader: Richard Brent, Government Affairs, Solar Turbines, Inc The U.S. could learn a thing or two about combined heat and power (CHP) deployment from our peers on the world stage. Panelists in this session will focus on best practices and lessons learned from international leaders in the deployment of CHP, and recommend strategies for U.S. industry and policymakers to follow to realize the levels of CHP success achieved in other countries.

11:15 AM – 12:00 PM

• Closing Remarks – Moving Forward

Paul Thomsen, USCHPA Vice Chairman and Director of Policy and Business Development, Ormat Technologies

12:00 Noon

• Adjourn

DoubleTree Crystal City, Arlington, Virginia

The Senate is attaching their version of H.R. 6049 to the bailout bill they plan to vote on this evening.

The New York Times reports:

Senate leaders scheduled a Wednesday vote on a $700 billion financial bailout package after accepting tax breaks and a higher limit for insured bank deposits in a bid to win House approval and send legislation to President Bush by the end of the week. . . The Senate proposal would cost more than $100 billion and extend and expand many individual and business tax breaks, including tax credits for the production and use of renewable energy sources, like solar energy and wind power.

The bill would also extend the business tax credit for research and development, expand the child tax credit, protect millions of families from the alternative minimum tax and provide tax relief to victims of recent floods, tornadoes and severe storms.

Climate Progress has more.

Reps. Nick Rahall (D-W.V.), Gene Green (D-Texas), George Miller (D-Calif.), and John Dingell (D-Mich.) have unveiled the House Democratic “all of the above” energy package, The Comprehensive American Energy and Security, Consumer Protection Act (H.R. 6899), which lifts the moratorium on offshore drilling and calls for massive investments in natural gas, oil, and coal, as well ethics reform for the MMS, support for public transit, and a suite of energy efficiency and renewable energy incentives and standards paid for by eliminating some oil subsidies.

Many elements are drawn from previous House bills—H.R. 5351, H.R. 3221, H.R. 6, H.R. 4520, H.R. 6578, H.R. 6078, H.R. 6052, H.R. 6515.

In August, Tom Friedman penned “Eight Strikes and You’re Out” on McCain’s record on extending renewable energy production and investment tax credits:

Senator McCain did not show up for the crucial vote on July 30, and the renewable energy bill was defeated for the eighth time. In fact, John McCain has a perfect record on this renewable energy legislation. He has missed all eight votes over the last year — which effectively counts as a no vote each time. Once, he was even in the Senate and wouldn’t leave his office to vote.

The eight votes:

• July 30: S. 3335 filibustered 51-43 [Roll Call #192]
• June 17: H.R. 6049 filibustered 52-44 [Roll Call #150]
• June 10: H.R. 6049 filibustered 50-44 [Roll Call #147]
• April 10: S. Amdt. 4419 (tax credits without offsets, attached to Dodd housing bill) passes 88-8 [Roll Call #95]
• February 6: S. Amdt 3983 to H.R. 5140 (tax credits without offsets, attached to stimulus package) filibustered by one vote (58-41; Reid procedural vote with GOP, McCain not voting) [Roll Call #8]
• December 13: H.R. 6 filibustered by one vote (59-40; Landrieu with GOP, McCain not voting) [Roll Call #425]
• December 7: H.R. 6 filibustered 53-42 [Roll Call #416]
• June 21: S.Amdt. 1704 filibustered 57-36 (Landrieu with GOP, Boxer, Brownback, Coburn, Johnson, McCain, Sessions not voting) [Roll Call #223]

The one time the tax credit extension passed, it was known to be a deal-breaker in the House, since there was no funding mechanism approved and it was tied to the housing bill.

See Hill Heat’s earlier timeline of Republican obstruction on extending the renewable tax credits.

According to E&E News, Democratic leadership plans to unveil an “all of the above” energy package today or tomorrow which likely has the following components:

• Expansion of OCS leasing to include areas off the coasts of the Carolinas, Virginia and Georgia, and possibly the eastern Gulf of Mexico as well. A bipartisan Senate plan known informally as the “Gang of 10” proposal would allow drilling in these regions no closer than 50 miles from shore. But House lawmakers and aides did not say how close to shore their plan would allow drilling.
• New revenues from oil companies. A Democratic leadership aide said the bill may include provisions to ensure payment of royalties from late-1990s deepwater Gulf of Mexico leases that currently allow royalty waivers regardless of energy prices. The absence of price-based limits on these royalty waivers could cost the Treasury as much as $14.7 billion over 25 years, according to the Government Accountability Office. The bill may also include the repeal of the Section 199 tax deduction for major oil companies. This plan, past versions of which have also frozen the deduction at 6 percent for non-majors, raises roughly $13.6 billion over a decade, the Joint Committee on Taxation estimated in June.
• A so-called renewable electricity standard that requires utilities to supply escalating amounts of power from sources like wind and geothermal power. The House Democrats plan to include a standard of 15 percent by 2020, an aide said, akin to a measure the House approved last year that did not survive negotiations with the Senate. The plan allows roughly a fourth of the standard to be met with efficiency measures.
• Extension of renewable energy and energy efficiency tax credits.

E&E also reports that Pelosi indicated “the energy bill might include support for automakers’ retooling to make more efficient vehicles.”

This could also be part of an economic stimulus package being prepared or the continuing resolution to extend government spending beyond the Sept. 30 end of the fiscal year, she said.

Alex Kaplun reports for E&E News:

Top House Democrats say that shortly after Congress reconvenes, they will put on the floor a piece of legislation that will include an expansion of offshore drilling but also a renewable electricity mandate, energy-efficiency standards for buildings and oil industry tax provisions.

Rep. Ed Markey (D-Mass.) described the plan as “a political reverse takedown on the Republicans,” by calling the GOP bluff on their calls for an “All of the Above” energy agenda. David Sandalow, an adviser to Sen. Barack Obama (D-Ill.), told E&E News: “We’ll see whether the proponents of all of the above can take yes for an answer.”

Renewable electricity standards, building efficiency standards, and oil tax provisions have repeatedly passed the House over Republican opposition, but have died in Republican filibusters in the Senate.

The legislative plan will represent a compromise from the agendas of the various national lobbying campaigns by outside organizations:

• Al Gore’s We Campaign’s call for a 100% renewable electricity standard by 2018;
• Newt Gingrich’s American Solutions For Winning the Future’s call for expanded drilling;
• T. Boone Pickens’ call for new grid development, tax incentives for wind and solar, and subsidies for natural gas;
• The coal industry’s American Coalition for Clean Coal Electricity’s call for increased advanced coal technology subsidies.

ACCCE and Pickens each have had a significant presence at the national conventions.

On a lighter note, as Open Left’s Matt Stoller found, the people employed by ACCCE to spread the “clean coal” message in Denver weren’t necessarily all up to speed.

From the Wonk Room.

At the Big Tent in Denver, Center for American Progress President and CEO John Podesta, Sierra Club executive director Carl Pope, and oil billionaire T. Boone Pickens engaged in a discussion about our energy future. Pickens, who believes that our global oil production is at its peak and will soon inexorably decline, discussed his “Pickens Plan” for a massive increase in wind and solar electricity production and a shift for trucking fleets from diesel to natural gas. Podesta noted that the climate crisis is evident today, in the flooding in Florida and the increasing threat of powerful hurricanes. “The cost of doing nothing,” Podesta said, “is extremely substantial.”

This panel of three highly powerful individuals from the environmental, progressive, and conservative energy industry communities represented a remarkable confluence of priorities, in recognizing the energy crisis and the need to get off oil. As Carl Pope described:

If our politics was even vaguely functional, anything that all three of us agree on would have happened long ago. We have some very deep profound political problems. Our politics are broken.

Pickens himself, a highly influential fundraiser for right-wing politicians, described how his money has gotten him access in Washington but that he had learned that his contributions don’t translate to policy. He expressed his enthusiasm for the ability of the Pickens Plan campaign to reach millions on the Internet and mobilize hundreds of thousands of people. He argued, “I’m not doing this to make money. My entire estate will go to charity when I go. We are now importing almost 70 percent of our oil. It’s too much. We’re not talking about my generation—we can make it to the finish line.”

Pope explained what Newt Gingrich and other conservatives are really trying to do with their drill-drill-drill agenda, when they know that lifting the offshore drilling moratorium won’t deliver new oil to this country.

What is it about? It’s about distracting us from the conversation we ought to be having. As long as we’re talking about drill drill drill, it distracts Americans from the fact there’s a chasm between the two candidates. It’s a huge headfake by Karl Rove.

At the end of the conversation, Podesta and Pickens talked about their political differences. Pickens – who helped sponsor the Big Tent – admitted he is inclined to defend oil companies, who work for their shareholders and are run by his friends. When challenged by Podesta for having given significant contributions to “the gang on Capitol Hill who have been blocking the renewable production tax credit,” Pickens, with resignation apparent in his face, said, “I grind on them . . . I don’t have the time.” He argued that he is now trying to act on behalf of the American people, to avoid being partisan, to move past the old politics—the politics that he has spent millions to sustain.

EnergyPlus—DOE’s building energy simulation program—includes many building energy-simulation features that previously have not been available together in a mainstream program. Features include variable time steps, configurable modular systems integrated with a heat balance-based zone simulation, on-site power, hybrid natural/mechanical ventilation, and under-floor air distribution (UFAD). The underlying heat balance load calculation method is included in the 2005 American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) Fundamentals. In 2007, DOE began working on a plug-in for Google’s SketchUp software, which Google describes as “3-D for everyone.” SketchUp is used by a majority of architects during early design to facilitate studies of shape and massing. The Energy Design Plug-In integrates EnergyPlus with SketchUp, allowing easy evaluation of building energy performance. This presentation, by Drury Crawley of EERE, introduces EnergyPlus and its simulation methodologies, capabilities, utilities, and interfaces that facilitate using it.

Drury B. Crawley is acting team leader for the Commercial Buildings area of DOE’s Office of Energy Efficiency and Renewable Energy. He leads DOE’s team that is working to achieve net-zero energy commercial buildings by 2025. He also is responsible for managing DOE’s building energy software tools research and development activities including EnergyPlus, Energy Design Plug-In, and DOE-2, among others. He has more than 30 years of experience in energy efficiency, renewable energy, and sustainability for buildings; and is active in ASHRAE, the U.S. Green Building Council, and the American Institute of Architects. He serves on the editorial boards of three international journals, has published more than 100 papers and articles, and has given more than 175 presentations throughout the world.

901 D Street SW (adjacent to the Forrestal Building) or 370 L’Enfant Promenade. Ninth Floor. Please contact Wanda Addison, of Midwest Research Institute (MRI), at wanda_addison@nrel.gov or 202-488-2202