As stimulus funding leads some industry insiders to think of Washington as “the new Wall Street” for green energy, some investment experts say they’re concerned about the government’s new role. “I worry about the government as a dealmaker in this space,” said Tom Bratkovitch, director of LP Capital Advisors, a consulting firm for private-equity investors, at a Thomson Reuters conference in Palo Alto, Calif., this week. “I just don’t know if the government is the best one to make decisions in this space.”

After all, the federal government has supported some technologies that have not panned out, while missing some that have ultimately been successful. The government also has a reputation for moving slowly – though the Department of Energy certainly is trying hard to get stimulus money out as quickly as possible – and the applications for the grants and loan guarantees can be extremely time-consuming.

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Applied SunFab Solar Module Production Line

Well it certainly looks like the sun is paving the way for our new energy economy.

According to the Worldwatch institute, an environmental research organization based in Washington D.C., global solar photovoltaic (PV) power installations jumped from 9,000 megawatts in 2007 to nearly 15,000 MW in 2008, an increase of almost 66 percent. This is due primarily to government incentive programs in the world’s top PV markets, Spain and Germany.

Worldwatch provides a snapshot of solar power market trends globally:

• Global PV cell production nearly doubled in 2008, reaching 6,940 MW. The Chinese PV industry led silicon-based cell production, primarily to meet soaring demand in Spain and Germany.
• Europe remains the leading market for PVs, accounting for over 80 percent of world demand in 2008. Top markets Spain and Germany added 2,600 MW and 1,500 MW respectively. The United States came in a distant third, adding approximately 348 MW.
• Spain’s market growth increased a whopping 364 percent in 2008, causing it to overtake industry leader Germany as the number one solar PV market.

So what are Spain and Germany doing that the U.S. is not?

According to Dr. Charles Gay, the President of Applied Solar, a leading supplier of solar manufacturing equipment, Germany and Spain have set more immediate goals than the U.S. for increased use of renewable energy. They have also provided greater government investments to jump start the market.

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There’s a bit of money, too, totaling about $100,000 from the federal stimulus package, aka the American Recovery and Reinvestment Act of 2009.

The Great Lakes Commission has been granted $99,740 to develop a set of “Best Practices to Accelerate Wind Power in the Great Lakes and Beyond.”

The end result will be a guide to what works and what doesn’t when it comes to protecting the environment, being sensitive to community concerns and … building wind turbines in the water.

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 Hopefully, the future will record that we had a crisis, but sized the opportunities afforded by the mounting promises of renewable energy and rode them to success. Hopefully, the future will not record that we were bogged down by the narrow interest of lobbyist and missed this golden opportunity.

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On Monday, President Barack Obama reiterated his administration’s focus on science by promising a new level of commitment—one with the same intensity and urgency as that which put Americans on the moon—and stressing that “the days of science taking a back seat to ideology are over.”

“We have watched as scientific integrity has been undermined and scientific research politicized in an effort to advance predetermined ideological agendas,” said Mr. Obama.

Speaking at the 146th National Academy of Science annual meeting in Washington, D.C., Mr. Obama pledged to raise spending on research and development to more than three percent of the nation’s gross domestic product, an increase of approximately $46 billion annually. “This represents the largest commitment to scientific research and innovation in American history,” said the President.

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For small businesses, like mine, and nonprofits, it might be tough to get in on the action unless you’re prepared to work as a government contractor, which requires jumping through many hoops. But, if you are willing/able to do so, check out Grants.gov, a searchable listing of what’s available.

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In the State of Iowa, pigs outnumber people by 8:1 - there are 20M pigs living in this Midwestern state.  Hog odors are nauseating, sulferous, and hard to get out of clothing, vehicles, and carpeting.  Iowa Senator Tom Harkin is proud of getting this earmark passed through, and his Iowa constituents view as his bringing home the bacon to his home state.  Per Sen. Harkin (as quoted by mgwashington.com):

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In 2 years the dust will settle and we will have data that will either vindicate the bill as an effective strategic move to really get the economy going, or condemn the action as another in a series of Band-Aids of short term ’symptoms’ strategies that fails to cure the disease.

Barack Obama could lose significant allies in congress in his midterm elections, much like Bill Clinton did in 1994, if this bill does not deliver the kinds of results we hope it will.  To avoid this fate, Obama and Van Jones would be wise to work to make green jobs into green businesses and green careers.

Green Jobs are great, don’t get me wrong.  We need them now more than ever, and I respect Mr. Jones’ work tremendously.  His group managed to convince the city of Oakland to spend resources to get a green jobs training program going by making it a win-win argument:  local jobs created, infrastructure updated, kids stay out of jail, and the city saves money in the long run fighting drugs and crime while becoming less dependent on distant and polluting energy sources, keeping more money in the city.

With this approach, Jones will likely have great success with the participants of the U.S. Conference of Mayors Climate Protection Agreement, which over 500 cities have joined.  The agreement states that by 2012, these cities will reduce their carbon emissions to 7% below 1990 levels.  These cities will more than likely join the green jobs revolution with Jones in the lead, due to the success he had in Oakland, not to mention the potential for federal dollars for these programs.

But if the ARRA is going to be a success, that is, if it is going to someday be seen as truly more than a short term stimulus package, it MUST create self-sustaining businesses and great green careers. What happens in two years, if a person gets some specific job skills around weatherizing homes, when there are no more homes in his area that need weatherizing?  If the person doesn’t have the resources to perhaps branch out into remodeling or carpentry, they’re right back where they were 2 years before, hoping someone will help them get a job.

So I have put together a petition to Karen Mills, Administrator of the Small Business Administration, to encourage her to work with Mr. Jones so that the SBA becomes a green business resource.  Please read and sign the petition here. When you are done, please pass it along!

Why is the petition necessary?  After browsing the SBA website, I found very little regarding sustainable business practices or green businesses.  The SBA provides assistance to small business owners and has an affiliate network of Small Business Development Centers that help countless thousands of entrepreneurs get their start.  They don’t review loans directly, but can help someone get their materials organized and business strategies together in order that they might have a better chance of procuring funding.  They also provide mentoring, education, and resources for entrepreneurs and managers.  But what is an aspiring eco-entrepreneur to do if they need mentoring?  And what about all those would-be eco-entrepreneurs who don’t think about green, but would love to hear about it if their local SBA affiliate had materials about it available?

For example, what if someone walks into an office and wants to start a dry cleaner,because his or her parents ran a dry cleaner, and it’s a business they feel comfortable running.  They could get all the resources they need and be out the door ready to go in a few hours, ready to type up their business plan.  If the SBA had a green business slant, they would have a list of alternatives to just about any kind of business out there, just in case that entrepreneur might be interested in having a perc-free facility.  Without that impetus, Mr. Drycleaner would be using perc and buying perc for the next 20 years.  Mr. Drycleaner and his employees would be inhaling fumes for years, as would residents, customers, and passers by.

After calling the SBA to inquire about what green resources were available, I was passed from person to person (all of whom were extremely nice and heard me out, but if I had video-phone, I would likely have seen the ‘deer in the headlights’ look several times).  Finally, I was able to reach someone in a department they called “Advocacy”, where someone was knowledgeable of environmental affairs.  As I asked him about if the SBA had any plans to incorporate green business resources and work with Van Jones to create a program to ensure the best possible long term success of ARRA, there was a bit of a pregnant pause, so I stopped and waited.

“Now who is Van Jones?” he asked.

A mean, green SBA would provide all the resources and tools needed not just for entrepreneurs, but for the network of affiliates associated with the SBA so that each region (there are 1400+ Small Business Development Centers in the country) would be able to hone its message regionally but with support from the parent organization.  It could offer webinars, downloadable documents, podcasts, and trainings to SBDC’s, who in turn could offer eco-friendly alternative business plans, mentorship, sustainability consulting, education about efficiency tax credits and other incentives, green business networking with other eco-entrepreneurs, and consulting on applying for and procuring funding.

Giving standardized training to these regions that is sanctioned by the SBA would allow an aspiring eco-entrepreneur as good a chance of getting good help whether they lived in Big Stone Gap, Virginia, or San Francisco.  Well, as good a chance as possible.

Scott Cooney is the author of Build a Green Small Business:  Profitable Ways to Become an Ecopreneur (McGraw-HIll), and looks forward to the day where the green economy is simply referred to as…the economy.

Twitter Scott

Photo credit:  www.VanJones.net

Obama’s focus on reducing carbon emissions, investment in clean energy and creating green jobs to boost economic growth is clear.  As a result of the package:

• energy efficiency tax credits have been raised from 10% of cost to 30%;
• the maximum tax credit has been raised from $500 to $1500 on individual efficiency upgrades;
• more expensive upgrades, such as solar panels, solar water heaters, and geothermal pumps are not limited to their previous $1,500 maximum, and;
• the $200 tax credit cap on efficient windows has been removed (however, the standards are also more stringent).

All of this means that there has never been a better time, financially, to upgrade, insulate, and/or weatherize your buildings. These investments should pay for themselves relatively quickly, given the incentives and the energy savings, and provide long term savings in addition to good PR for your company.

For example, Jiminy Peak, a small ski resort in Massachusetts, put in a wind turbine at their resort. With an up-front cost of roughly $4M and energy savings of $450,000 per year, the turbine will pay for itself in less than ten years and provide reliable electricity for many years after. Jiminy Peak has protected itself from fluctuations in energy costs and power outages, and meanwhile given itself a nice PR victory.

The Small Business Association also has a guaranteed loan program for construction and renovation including Energy Star appliances and upgrades. The 7a Loan Guaranty Program has a high degree of flexibility in what you are able to use the money for, including energy efficiency, retrofitting, and new Energy Star upgrades.

>>See also: Obama First to Enforce 34-Year-Old Energy Efficiency Rules

Scott Cooney is the author of Build a Green Small Business:  Profitable Ways to Become an Ecopreneur (McGraw-Hill), and hopes that the green economy will someday just be referred to as…the economy.

Photo credit:  BrentDanley on Flickr Creative Commons

Energy efficiency programs and rebates are getting a real shot in the arm from, among other things, the stimulus package, plus many other federal, state, and local programs. As a result of the stimulus package, energy efficiency tax credits have been raised from 10% of cost to 30%. The maximum credit has been raised from $500 to $1500, and more expensive upgrades, such as solar panels, solar water heaters, and geothermal pumps are not limited to the $1,500 maximum. The $200 tax credit cap on efficient windows has been removed, however

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Yesterday I posted here about plastic bag fees and bans being frozen in — or before reaching — legislatures. Supposedly that’s due to economics, though reality seems to be more connected to politics. That, coupled with a post here by Low Impact Living about the green benefits of the stimulus plan signed by President Obama recently, got me thinking about a potential solution to our financial woes.

Maybe we don’t need to argue along partisan lines about small versus big government, or about a trillion-dollar stimulus plan versus whatever it is the Republicans think President Obama should be doing. Maybe instead of tax credits and billionaire bailouts, we need to impose a fresh idea of corporate social responsbility: cost-of-living increases + merit salary increases.

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By April 1st, most workers will see a reduction in taxes withheld due to the $787 billion economic stimulus package, but unfortunately, the extra $65 a month for a family of four isn’t going to go very far.

It’s certainly not going to make the payment on a new car or house, but tax breaks on those purchases are also being touted as an important part of the stimulus package. And it’s not going to keep your mortgage payment current.

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Transcript of President Obama’s address from Saturday, February 21, 2009:

THE PRESIDENT:  “Earlier this week, I signed into law the American Recovery and Reinvestment Act — the most sweeping economic recovery plan in history.  Because of this plan, 3.5 million Americans will now go to work doing the work that America needs done.

I’m grateful to Congress, governors and mayors across the country, and to all of you whose support made this critical step possible.

Because of what we did together, there will now be shovels in the ground, cranes in the air, and workers rebuilding our crumbling roads and bridges, and repairing our faulty levees and dams.

Because of what we did, companies — large and small — that produce renewable energy can now apply for loan guarantees and tax credits and find ways to grow, instead of laying people off; and families can lower their energy bills by weatherizing their homes.

Because of what we did, our children can now graduate from 21st century schools and millions more can do what was unaffordable just last week — and get their college degree.

Because of what we did, lives will be saved and health care costs will be cut with new computerized medical records.

Because of what we did, there will now be police on the beat, firefighters on the job, and teachers preparing lesson plans who thought they would not be able to continue pursuing their critical missions.  And ensure that all of this is done with an unprecedented level of transparency and accountability, I have assigned a team of managers to make sure that precious tax dollars are invested wisely and well.

Because of what we did, 95 percent of all working families will get a tax cut — in keeping with a promise I made on the campaign.  And I’m pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks — meaning that by April 1st, a typical family will begin taking home at least $65 more every month.  Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans.

But as important as it was that I was able to sign this plan into law, it is only a first step on the road to economic recovery.  And we can’t fail to complete the journey.  That will require stemming the spread of foreclosures and falling home values, and doing all we can to help responsible homeowners stay in their homes, which is exactly what the housing plan I announced last week will help us do.

It will require stabilizing and repairing our banking system, and getting credit flowing again to families and businesses.  It will require reforming the broken regulatory system that made this crisis possible, and recognizing that it’s only by setting and enforcing 21st century rules of the road that we can build a thriving economy.

And it will require doing all we can to get exploding deficits under control as our economy begins to recover.  That work begins on Monday, when I will convene a fiscal summit of independent experts and unions, advocacy groups and members of Congress, to discuss how we can cut the trillion-dollar deficit that we’ve inherited.  On Tuesday, I will speak to the nation about our urgent national priorities.  And on Thursday, I’ll release a budget that’s sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don’t, and restoring fiscal discipline.

No single piece of this broad economic recovery can, by itself, meet the demands that have been placed on us.  We can’t help people find work or pay their bills unless we unlock credit for families and businesses.  We can’t solve our housing crisis unless we help people find work so that they can make payments on their homes.  We can’t produce shared prosperity without firm rules of the road, and we can’t generate sustained growth without getting our deficits under control.  In short, we cannot successfully address any of our problems without addressing them all.  And that is exactly what the strategy we are pursuing is designed to do.

None of this will be easy.  The road ahead will be long and full of hazards.  But I am confident that we, as a people, have the strength and wisdom to carry out this strategy and overcome this crisis.  And if we do, our economy — and our country — will be better and stronger for it.”

Thank you.

]]> http://redgreenandblue.org/2009/02/21/obamas-weekly-video-address-the-american-recovery-and-reinvestment-act/feed/ http://inspiredeconomist.com/2009/02/20/pork-in-the-obama-stimulus-package-you-decide/ http://inspiredeconomist.com/2009/02/20/pork-in-the-obama-stimulus-package-you-decide/#comments Fri, 20 Feb 2009 10:15:01 +0000 Brenda Keener http://inspiredeconomist.com/2009/02/20/pork-in-the-obama-stimulus-package-you-decide/ Obama has prided himself on removing government waste and not allowing pork to infiltrate his controversial $787B stimulus package, but was he successful?  According to many outspoken opponents such as Senator John McCain, the answer is no. 

Looking at the overall package - most of it (34%) is much-needed tax relief which should help stimulate the economy.   But $308B of this bill is so called “discretionary spending”, which is where pork usually hides.   $48B of this $308B goes to the Department of Transportation for overall infrastructure improvement - another necessity that was brought blatantly to the public eye by the bridge collapse in Minneapolis last year.   This leaves $260B earmarked for what some consider necessary, but others consider pork.  Some of the most heavily contested portions of this bill are:

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The American Recovery and Reinvestment Act signed by President Obama includes an uncapped 30 percent tax credit for the installation of small wind turbines, such as Windspire, (www.mariahpower.com), a residential and commercial wind power appliance.

The tax credit, previously capped at $4,000, gives all American taxpayers (residents and businesses) credit based on the total installed cost of an installation of one or more wind turbines.  The legislative package includes more than $42 billion in energy-related investments.

“Wind power is critical to the President’s new energy initiatives, said Mike Hess, CEO of Mariah Power. “It is refreshing that the new administration recognizes the potential behind renewable energy as a part of this important new legislation. Windspire transforms an untapped form of power – wind – into a cost effective, practical, and smart energy solution that is well-suited to homes and businesses. This is the first step toward a future in which our daily lives will be powered by renewable energy.”

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The largest stimulus package in US history was signed today, and it’s putting a smile on the face of the solar industry. President Obama returned to Denver, where he accepted the Democratic nomination, to sign this landmark legislation–this time in front of solar panels, not neoclassical pillars.

“I don’t want to pretend that today marks the end of our economic problems,” Obama said before signing the bill. “We are laying the groundwork for a green energy economy that can create countless green jobs. We will transform the way we use energy.”

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Two freshmen U.S. senators—who also happen to be cousins—have introduced a bill that would create a national renewable energy standard (RES) of twenty-five percent by 2020.

The bill would initiate a federal minimum standard mandating retail energy suppliers to diversify their portfolios with the first requirement of six percent for 2012, and consistently increase thereafter until meeting the 2025 goal. The proposal dovetails with that of President Obama who has proposed a goal of doubling renewable energy within the next three years.

Twenty-eight states already have renewable generation standards with various timelines and targets and this legislation would not preempt states that have stronger standards.

On paper, the proposed RES would appear to surpass the EU enewables requirement of twenty percent by 2020. But municipal and other publicly-owned power plants and rural electric co-ops would be exempted from the requirements.

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After congressional leaders reached compromise on a 789 billion dollar economic stimulus package that includes investment for smart grid and broadband infrastructure, there were lots of smiling faces around Mountain View, Cali., the headquarters of Google Inc.

President Obama’s stated desire to invest in smart grid and broadband infrastructures syncs quite nicely with Google’s obvious desire to improve the nation’s broadband infrastructure but it also will benefit the company’s recent incursion into smart metering.

While the specifics of Wednesday’s compromise have yet to be released, the Senate version of the stimulus slated $7 billion for broadband and $20 billion for smart grid investment, with final figures likely to be smaller. [update: CNET reports that smart grid investment was pared down in the final package to $11 billion]

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From Green Car Congress:

Responding to a question from a city councilwoman about transportation and infrastructure in the stimulus bill during a town hall forum in Ft. Myers, Florida, President Obama said that the days of just building sprawl are over.

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Part of President Obama’s proposed economic stimulus plan includes investing in smart grid infrastructure. So, what better horse to hitch your trailer to right now if you’re a big American company looking to launch your new smart grid advertising campaign?

Oh, and it also helps if you own the network.

General Electric saw this golden opportunity and for the first time advertised during the Super Bowl with a 30-second ad called “Scarecrow.” GE describes the ad as a modern take on the classic song, “If I Only Had A Brain,” from The Wizard of Oz, imagining what can happen when the old technologies that manage our energy use have a brain and become smarter.

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