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   1 - Global warming

   2 - Dependence on
        foreign energy

   3 - Trade deficit

   4 - Pollution from non-
        renewable fuels

A Blueprint for State Action

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This entry was posted on 1/30/2008 10:58 PM and is filed under Legislation,Action,Communism,Leadership.

It's very good for what it is - a Wisconsin state plan by Wisconsin Environment.  Titled, A Blueprint for Action - Policy Options to Reduce Wisconsin's Contribution to Global Warming, it concisely lays out the problem and lists 13 specific "key policy strategies" that include some innovative ideas (see below).

The problem: individual states shouldn't need to create these elaborate, in-depth policies.  We are the United States - solving global problems like global warming is a responsibility of our federally elected representatives.  Did you know that Iraq just signed on to the Kyoto treaty?  Iraq!  (good for them)  The U.S. is the only major industrialized country that has not signed on -- unbelievable; beyond words.

The important question:  these strategies will cost more at the start and some have reasonable paybacks.  But, do these strategies, at the levels proposed, represent the best return (reduced greenhouse gases) for our investment?

The answer:  we don't know.  And, we're not even giving it our "best shot" by using the most powerful tool we have -- the market.  Instead of recognizing and paying for the external costs associated with non-renewable fuel use, these recommended policy strategies are only a step away from communism.  The "State" (instead of the market) is making the decisions:  eleven of the 13 strategies require something, one "prevents", and one "encourages" (doesn't say how).

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It's good that this report was written.  The alternative is that the U.S. continues to do next to nothing to reduce greenhouse gas emissions.  Hopefully these individual state efforts (and similar country and city efforts) will spur our federally elected representatives into action.

All of the 13 proposed options make sense.  From an initial read, the three best seem to be #2) Require energy-saving replacement tires#3) Create mileage-based automobile insurance, and #1) Adopt the Clean Cars Program.  For the Clean Cars program to be effective it needs to be at least regional (with neighboring states) to minimize additional cost.  Mileage-based auto insurance, paying for what is "used", is good business.  Based on the information in the blueprint, requiring energy-saving replacement tires is a slam dunk -- do it now!  "The resulting fuel savings would pay off the additional cost of the tires in about one year."  I look forward to reading more of the specifics on each.

Just one, #10) Encourage combined heat and power is pretty thin on how combined heat and power should be encouraged.  It states, "Wisconsin can also promote the spread of CHP by educating utilities to the benefits of cogeneration and restructuring incentives to make CHP more cost-effective for utilities."  Ouch - "Educating utilities on the benefits of cogeneration...."??  The bottom-line is that fossil fuels are so inexpensive that it is more profitable to ignore "waste" heat in most cases.  Want to change this?  Enact a phased-in, federal tax shift from income to non-renewable energy.  When we're all paying the external costs of energy use, utilities won't be throwing energy away.

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We live in a capitalistic society, so these 13 options should be divided into two categories:

 A ) - There is a cost(s), but they save enough energy so there is a reasonable payback period after which the individual (and therefore Wisconsin) benefits.  Let's put the cut-off in the 5-7 year range; any longer and people tend to lose interest in making the initial investment.  And, in the case of some of these options, 5-7 years in the full-life of the investment (e.g., appliances).  Based on the blueprint, #2) Require energy-saving replacement tires easily falls into this category, "...The resulting fuel savings would pay off the additional cost of the tires in about one year."  (so enact a phased-in program now)

 B ) - There is a cost(s) and the payback is more than 7 years.  I believe #4) Reduce the number of automobile commutes falls into this category.  Is the employee really going to see a net benefit in dollars and/or time?

Here's the thing, per the "Tragedy of the Commons" model, the way to solve global warming is by an agreement on shared sacrifice -- at least in the short-term.  (If anyone knows of a better way, let me know)  This is the basis for the Kyoto treaty.  We need agreements between nations and within the U.S. we need agreements between the states.

The problem with strategies that fall into category "B"?
  Sure we'll be doing "nice" things, and hopefully this will spur others to action, but these strategies may not be sustainable (because economically the cost is greater than the benefit) and therefore they may fail in the long-term.  If there is no federal action, states need to start with those in category "A".

    ~     ~     ~     ~

Concluding with my earlier point, global warming is a national problem requiring a national solution.  Thanks for reading.

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Comments

    • 2/2/2008 12:13 AM miggs wrote:
      Regarding combined heat and power...

      It's actually wrong to say "fossil fuels are so inexpensive that it is more profitable to ignore 'waste' heat in most cases." On the contrary, recycling waste heat almost always saves a lot of money. The problem is that utilities have no incentive to save money. They usually get guaranteed profits based on how much it costs to make power; if it costs less, they get less.

      Or think of it this way: if people are buying less power, would utilities like that? Of course not.

      So the problem isn't just that no one is measuring the "external" costs of pollution; inefficiency is plain old costly in terms of dollars and cents. But the system is rigged. Utilities are PAID to be inefficient. They don't need "education" on the benefits of CHP. We just need to change the rules that encourage inefficiency and discourage efficient technology like CHP.
      Reply to this
      1. 2/2/2008 11:30 AM Paul Riehemann wrote:

        Good point - thanks.

        Using waste heat can save a lot of money.... and, it does cost to plan and transport the heat to a place it can be used.  The more that fossil fuels and nuclear cost, the more the incentive to maximize use of 'waste heat.'

        I'm not an expert on the electricity rate-setting process.  Suggestions on how best to "change the rules" welcome.

        There are tremendous subsidies that the non-renewable energy industries receive.  WHY?      A search on "oil subsidies United States" yields over 7 million hits on Yahoo! including this one on Public Citizen.  A Yahoo! search on "nuclear power subsidies United States" yields over 4 million hits - sorry, no time to find a representative article although somewhere on solve4biggies there's a link which shows some amounts.  Subsidies have got to be the FIRST to go - a slam dunk for any elected representative.

        Reply to this
    • 2/6/2008 3:33 PM Jim Blair wrote:
      Hi,

      No matter the millions of hits on a Google search of "nuclear power subsidies United States", I can't find just how those trillions of subsidy dollars are being spent.

      No new plants are being built, and the existing 103 nukes are selling power for less than the rate of the coal or gas plants, or wind or solar generators. That is, even after paying for disposal of their waste--even though no one is actually "disposing" of it.

      It looks like a lot of the "subsidy" is for research on better reactors (pebble bed, etc.) or better ways to reprocess the waste into new fuel.

      Why is money spent on solar or wind or biomass research "investment", while that spent on nuclear research is "subsidy"?

      Some of the nuclear subsidy is for insurance to cover the cost of nuclear accidents. But there hasn't been one of those big enough to cost much since TMI. Is rebuilding the below sea level parts of New Orleans also an "insurance subsidy"? Especially since another hurricane that will flood it again is nearly certain.
      Reply to this
      1. 2/6/2008 9:22 PM Paul Riehemann wrote:

        Here's an article by Public Citizen with information on nuclear subsidies - Nuclear Giveaways in the Energy Bill Conference Report
        • Construction subsidies = $3.25 billion + (including $2 billion in “risk insurance” to pay the industry for any delays in construction and operation licensing for 6 new reactors, including delays due to the Nuclear Regulatory Commission or litigation; $1.25 billion from FY2006 to FY2015 and “such sums as are necessary” from FY2016 to FY2021 for a nuclear plant in Idaho to generate hydrogen fuel; and, unlimited taxpayer-backed loan guarantees for up to 80% of the cost of a project, including building new nuclear power plants. Authorizes “such sums as are necessary,” but if Congress were to appropriate funding for loan guarantees covering six nuclear reactors, this subsidy could potentially cost taxpayers approximately $6 billion (assuming a 50% default rate and construction cost per plant of $2.5 billion, as Congressional Budget Office has estimated)
        • Operating subsidies = $5.7 billion +
        • Shut-down subsidies = $1.3 billion

        From the DOE's Energy Information Administration - Summary of U.S. Department of Energy Research and Development Expenditures,  Totals for Fiscal Years 1989-1999  (Million 1999 Dollars)
                
        Item                      
        Renewable Energy                        $3,091 13%
        Nuclear Power                        $9,727 42%
        Fossil Energy                        $4,838 21%
        Conservation and End Use                        $4,054 17%
        Clean Coal Technology                        $1,691 7%
        Total                        $23,401

        So for these 10 years (didn't see info. for after the year 1999), nuclear power received 42% of DOE's R&D dollars.  What do we have to show for it?
            
        Here's one:  from the Guardian in England US nuclear dump plan in danger after seismic shock


        Regarding New Orleans - I'm sticking with energy and environmental issues.

        Reply to this
    • 2/6/2008 4:17 PM Jim Blair wrote:
      Hi,

      This is so typical of the response to climate change: a bunch of "feel good" mandates that sound great in re-election pamphlets, but aren't likely to have much effect.

      #12: Don't build more coal plants? WI already imports some 15% of its electric power. So we will be Greener if we import more? Especially from coal plants in Illinois? Get real.

      #6 and #1 seem to assume that bio-fuels actually reduce CO2 emissions, a debatable claim. Electric cars would be great, but where would the power to recharge them come from?

      #4 & 5 are wishful thinking, absent any definite plan to implement them. Like maybe charging cars to enter cities like Milwaukee and Madison.

      More effective would be for Wisconsin to simply raise its gas tax. But that doesn't look so good in re-election pamphlets.

      Reply to this
      1. 2/6/2008 9:42 PM Paul Riehemann wrote:

        My thoughts on your comments -

        #12 - when we begin paying the true costs of coal use it will have less of an economic advantage and will be phased out over time.  Coal's external costs include greenhouse gas, particulate and mercury emissions.

        #6 & #1 - limits on carbon emissions and carbon content in fuels will reduce CO2 emissions - at a cost.  Is this the best return on our investment?  I don't know.  Let's change the rules of the game, start paying the external costs of our energy use, and let the market decide.

        #4 & #5 - why not provide an incentive to drive less instead in the form of a federal tax shift from income to non-renewable energy taxes.  A gasoline tax would do it.....but, why not a revenue-neutral tax shift that increases gasoline prices instead?  Of course, at a federal level so consumers are not driving to states with lower gasoline taxes.

        Reply to this
    • 2/9/2008 11:09 AM Jim Blair wrote:
      Hi,

      The problem with a ban on new coal plant construction (as they propose), without any mechanism to make coal pay for its environmental impact, is that this will just result in importing more electric power--as Wisconsin does now. And likely it will be from coal plants in Illinois--as now. So "we" can feel good and Green while continuing to add to the problem. Just like we do now.

      As you say, the problem of climate change can't be addressed by individual states. And I add: or even individual countries.

      This "plan" seems to assume that bio-fuels reduce GHG emissions. I just saw another study that refutes that claim.

      When all aspects are factored in: clearing land and cutting forests to expand agriculture, energy to grow and process the biofuel, N2O from expanded agriculture, etc. there is a net decrease in GHG from replacing petroleum with bio-fuels, especially ethanol.

      The error comes partly from shifting the focus from GHG to "renewable". Bio-fuels are "renewable" even if they increase GHG emissions.
      Reply to this
      1. 2/9/2008 2:23 PM Paul Riehemann wrote:

        Agree, banning new coal plants in one state, although sending a strong message about greenhouse gases emitted by burning coal, doesn't solve the problem.  We need a national (and international) solution.  If one state unilaterally banned new coal plants they'd be "green" but would be paying significantly more for electricity - not a sustainable practice.  Agree again - the key is implementing an across-the-board way "to make coal pay for its environmental impact."

        Regarding bio-fuels - it's my thought that when we start paying the true cost of the fossil fuels used to create bio-fuels, the price of bio-fuels that are highly dependent on fossil fuels for production will increase significantly and use of those particular bio-fuels will diminish.  The beauty of a phased-in, federal tax from income to non-renewable energy is that it will, by definition, help renewables that are not heavily dependent on fossil fuels a great deal (like wind and solar) while 'sifting and winnowing' other renewable technologies so those that are heavily dependent on fossil fuels will receive little long-term benefit.

        Reply to this
    • 2/9/2008 11:20 AM Jim Blair wrote:
      Hi,

      On the nuclear "subsidy", if we have spent 3.25 billion on "construction" and nothing has been constructed for over 30 years, where is the money?

      And I see that the military nuclear weapons program is included in the Department of Energy. I wonder how much of the "nuclear subsidy" is for military programs.

      At any rate, even those subsidy numbers would not look so big if fossil fuels were to pay for their impact on the environment.
      Reply to this
      1. 2/9/2008 2:41 PM Paul Riehemann wrote:

        My read is that the $3.25 billion is money set aside in the bill for future construction and expenses.  Good question on the military programs.

        Agree, we need to have all forms of energy pay for their external costs.  Given the problems we face, why aren't we?

        Bottom-line on energy subsidies:  for strictly R&D, sure the government needs to have a small role.  But, we need to immediately stop all of the other subsidies -- billions and billions for "loan guarantees" and "risk insurance" -- what a crock of shi_.

        We've bet on nuclear for decades now and lost -- no place to put nuclear waste in the U.S.; we don't know what waste transport and storage will cost; and, reprocessing of fuel is not happening commercially.  Time to move on.  Stop the subsidies, have all forms of energy pay their external costs, and let the market decide.

        Reply to this
    • 2/9/2008 8:05 PM Jim Blair wrote:
      Hi,

      On nuclear vs "renewable": sure we now subsidize corn ethanol as being "renewable" even when it increases GHG emissions.

      But for electric power, cost per KWh is not the only issue. Dependability counts for a lot. Would you rather pay 7 cents/KWh and have your power cut off when the sun does not shine or the wind does not blow, or pay 2 or 3 times that and have the power when you want it?

      What ever you claim the "true" costs of nuclear to be (and it is currently the cheapest power in the USA and in France), they do not include GHG emissions and climate change. And it is available at night and during calm winds.

      Maybe geothermal is the best non-nuclear option. So lets build a massive geothermal power plant in Yellowstone National Park?
      Reply to this
      1. 2/9/2008 9:04 PM Paul Riehemann wrote:

        Why are we subsidizing corn ethanol?.....it's political, and obviously not a good long-term solution.  Get rid of all the energy subsidies except for limited R&D.

        Dependability DOES count.  Another option is to pay more, I don't think it will be 2 or 3 times more, and build storage so wind and solar are available and dependable - even when there's no wind and no sun.  Let's start paying the external costs of all energy options and let the market decide.

        Nuclear is NOT the cheapest power in the USA and France.  Since we have no long-term storage (nor transportation) for nuclear waste, we don't know what it costs.  Since we don't know what it costs, it CAN'T be the cheapest.  It might be the cheapest (I doubt it), but since we don't know the costs, it isn't even in contention.

        When a federal tax shift from income to non-renewable energy is enacted, building geothermal (or not) in Yellowstone will be a market and political decision.  When the external costs of non-renewable power sources such as fossil fuels and nuclear are included, all may agree to capture virtually all readily available renewable energy sources because their external costs are little to none while non-renewable energy will likely be prohibitively expensive.

        Reply to this
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