Hawaii Picks Up Pricing Model

  • Hawaii has the highest energy prices in the nation. (Photo courtesy of the National Renewable Energy Laboratory)

Some states have been looking at
new ways to get more renewable energy
on the grid. This year, California,
Vermont, and now Hawaii implemented
a German-style pricing model that pays
people for the green electricity they
generate. Ben Markus reports:

Transcript

Some states have been looking at
new ways to get more renewable energy
on the grid. This year, California,
Vermont, and now Hawaii implemented
a German-style pricing model that pays
people for the green electricity they
generate. Ben Markus reports:

Hawaii imports fossil fuels – namely oil – to meet 90% of its energy needs –
including electricity.

“We’ve been saying for decades that this is foolish, and yet we haven’t changed. Well, now we’re
changing.”

Ted Peck is the state’s Energy Administrator. He says recent approval of
the new pricing model will help spark that change.

It offers a premium price for renewables. That makes it easier for solar and
wind companies to secure financing because they know what they’ll be
paid.

Mark Duda is president of the Hawaii Solar Energy Association. He says
it’s not as wide-open as the German model, but it will make a difference.

“Many of the key design elements went in the direction that the solar industry wanted, and so we’re
definitely pleased with that.”

The big sticking point is setting what will be paid for renewables. And some
are worried about how this will affect ratepayers.

Hawaii already has the highest energy prices in the nation.

For The Environment Report, I’m Ben Markus.

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Germany Sets Energy Example

  • Nearly 20 years ago, Germany passed a law requiring utility companies to pay homeowners more for creating green energy. (Photo courtesy of the National Renewable Energy Laboratory)

Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:

Transcript

Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:

Nearly 20 years ago, Germany passed a law requiring utility companies to pay
homeowners more for creating green energy. Today that includes wind and
geothermal, but the big winner is solar.

Dr. Silke Karcher is a scientist at the German Ministry of Environment in Berlin.
She says the solar industry is growing, despite the lack of sun.

“One of the instruments, one of the legal instruments that we would really like to
export that has really been successful is the way that we’re supporting renewable
energies and electricity. We have a so-called ‘feed in tariff law,’ which mean that
wherever in Germany you produce renewable energy, you can feed it into the
grid and you get a specific price.”

And that policy has put Germany way ahead to the US. Even with all the rebates
and other recent incentives in the nation’s most pioneering green tech states, it
takes longer for homeowners in the US to pay off an investment in a solar array.

“What Germany does is that they say we’ll pay x amount of euros for every
kilowatt produced, period.”

That’s Jim Rarus, principal of InPower. It’s a Colorado-based solar installation
company. Rarus says rather than comparing renewable fuels to less expensive
fossil fuels, Germany accounts for the costs of pollution.

“They don’t compare certain technologies like solar, which obviously have a
higher cost basis, to other technologies like coal and natural gas, which have a
lower costs basis. So they’re paying a price that reflects the fact that it’s a little
more expensive to build a solar plant and allows the people that put it in to either
get their money back or to make a reasonable return.”

For homeowners investing in solar arrays in the US, the process can be
unpredictable and even frustrating. Johnny Weiss is executive director of Solar
Energy International. It’s a Colorado based nonprofit that trains people for
careers in the solar industry. He says the incentive system in the US is too
complex.

“Over here, it’s different and a more complicated system. We all have states that
are free to do their own incentive programs. We have incentives at the national
level. We have incentives at the local level. But the result is that it’s a bit
overwhelming for not just solar professionals, but the public as well. And it’s not a
consistent thing people can count on.”

Some communities in the US are trying out the European model. But the limited
government support in the US has driven competition as solar companies try to
make the energy source affordable. That’s something some fear isn’t happening
anymore in Germany.

Dr. Kurt Christian Scheel heads up the Department of Climate and Sustainable
Development for the German private industry association. Scheel worries that
government incentives have stifled innovation.

“I mean, let’s put it this way. Whoever produces solar panels in Germany has a
safe earning and no motivation in anyway to, and not enough competition to,
innovate and to make things better.”

But even if in the long-term some feel a feed-in tariff slows innovation and
growth, it’s proven that in a short period of time it can drive energy consumers to
become producers.

For The Environment Report, I’m Conrad Wilson.

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Big Name Design With a Green Twist

  • New York fashion designer Issac Mizrahi during a fitting session. Mizrahi used salmon leather to create an ensemble that includes a dress, jacket and shoes. (Photo by Mackenzie Stroh, courtesy of the Cooper-Hewitt National Design Museum)

You might not have heard of the design firm Pentagram, but more than likely you’ve seen
its work. Pentagram designed the shopping bags for Saks Fifth Avenue, the logo for
Citibank, the layout of the New York Times Magazine. In short, its designers make
things look pretty. Recently, Pentagram got a call from the nonprofit Nature
Conservancy. As Hammad Ahmed reports, it wasn’t the usual request for a nice new logo
or packaging:

Transcript

You might not have heard of the design firm Pentagram, but more than likely you’ve seen
its work. Pentagram designed the shopping bags for Saks Fifth Avenue, the logo for
Citibank, the layout of the New York Times Magazine. In short, its designers make
things look pretty. Recently, Pentagram got a call from the nonprofit Nature
Conservancy. As Hammad Ahmed reports, it wasn’t the usual request for a nice new logo
or packaging:

The Nature Conservancy wanted Pentagram to issue a challenge to big name designers.
And the challenge was this: design environmentally friendly stuff. In other words, you
have to use renewable, abundant, and natural materials… instead of plastic.

Pentagram stepped up the challenge, recruited some designers, and, now, I’m here to see
what they came up with.

Curator Abbott Miller and I are standing at the Smithsonian Design museum in
Manhattan.

“The exhibition actually goes, um, this way.”

The exhibition is called “Design for a Living World.” And honestly, it looks like a
Pottery Barn. Bowls, chairs, and rugs. When you look closely though, you see all this
stuff is made from really interesting materials. For example, salmon leather.

Miller: “Salmon leather is stripped away from salmon in the process of canning and
literally was considered waste, but is actually an incredible material.”

Ahmed: “So this is just like salmon scales?”

Miller: “It’s the skin of salmon that’s been preserved.”

Working with the preserved salmon skin fell upon big-name fashion designer Isaac
Mizrahi, who’s more used to designing with silk and satin.

“If you’re weighing like sort of you know ecology and glamour, I think they weigh the
same to me, sorry to say that.”

Ecology or glamour, huh? Well, Mizrahi took this salmon leather and he turned it into a
dazzling pair of high heels you’d expect to see on the red carpet.

“For some people, that kind of product, represents a negative.”

Gary Bamossy is a marketing professor at Georgetown’s Business School.

“These very expensive green items that are really just sort of ‘fashionista’ kinds of
acquisitions, they see that as frivolous and maybe even as a waste of money.”

So, not exactly a ‘green ethic.’

And this makes me wonder which way of being green is better. Buying more shoes made
from salmon leather? Or not buying more shoes at all?

Abbott Miller admits it’s a valid question.

“That whole question of should we buy less, I think the answer is probably yes. You
know everyone knows that we’re an over-consuming culture.”

So if the real problem is over-consumption, what’s the point of green design?

When I ask Gary Bambossy, the marketing professor, he comes back with another
question.

“Green design as it relates to museum and as fashion? Or green design as part of a
business model process?”

And that question makes me realize green design isn’t just a new look for the same
products. It’s a new way of making those products, and educating the consumer.

Abbott Miller says we really ought to know more about what we buy, what is used to
make it.

“We may come to a point of such hyperawareness of the materials that we use that that’s
part of the story of why you buy something.”

Miller and Bambossy agree that buyers increasingly want to know more. And that could
lead to products being more sustainable.

But, the thing is, all this awareness isn’t free. So, you’re left with one last question: are
you willing to pay more for knowing more about the things you buy?

For The Environment Report, I’m Hammad Ahmed.

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Turning the Rust Belt Green

  • The creation of 'green-collar' jobs may help the Rust Belt's unemployment problems (Photo by Lester Graham)

The nation’s economy is in decline, and
the middle states that make up the Rust Belt have
been hit particularly hard with job losses. Some
Midwest states have turned to a new type of
manufacturing and the so-called green collar jobs
it creates. Marianne Holland reports:

Transcript

The nation’s economy is in decline, and
the middle states that make up the Rust Belt have
been hit particularly hard with job losses. Some
Midwest states have turned to a new type of
manufacturing and the so-called green collar jobs
it creates. Marianne Holland reports:

Nationwide, just over half the states have passed some sort of laws or incentives geared at
getting green manufacturing jobs. In the nation’s rust belt,
Wisconsin, Minnesota, Illinois and Ohio already have green policy in place.

Ron Pernick is a co-founder of CleanEdge. That’s a national green manufacturing research
organization. Pernick says those jobs, are in one of the major growth sectors in American
manufacturing. They’re growing at a rate of about 30% each year. In Iowa, property tax abatements are given to green manufacturing. In Illinois, the state has passed laws requiring utilities to get a portion of their energy from wind or solar power. Pernick says public policy translates to more jobs.

“If you think about creating new industry, you can’t export development. You’ve got to
hire local people to put in the wind turbines, to install the solar farms, to put solar on top
of rooftops. And those jobs can never be exported.”

But other states have been slow to change policy to embrace green manufacturing. In Michigan, green energy legislation has been tied up in
the State Senate. An in states like Indiana, there are no laws or business incentives even on the table to attract the green
manufacturing industry.

Indiana State Representative Ryan Dvorak blames the big power companies for lobbying against incentives to create green jobs.

“I’m not sure why they have so much sway in the state with the different legislators but
they don’t want to give up any ground basically. Obviously they make their money by
generating and selling electricity, so any loss in market share, they’re motivated to
stop that legislation.”

The power companies say they’re just looking out for their customers.
Angeline Protegere is a spokesperson for Duke Energy. Protegere says renewable energy is
moving forward without state regulations. She says Duke understands that some day
regulations will come. But she says that will be at a high risk.

“We constantly have to balance our environmental responsibilities with our economic
responsibilities to our customers because they pay for the cost of pollution control
through their bills.”

And the power companies’ lobbyists persuade legislators it’s in the best interests of the people to block incentives for green jobs. Representative Dvorak thinks his colleagues are being misled.

Jesse Kharbanda is with the Hoosier Environmental Council. He says in his state and others that ignore the green jobs opportunity, workers are being left behind.

“We’re obviously in this situation where Indiana has historically had a formidable
manufacturing base and that base has been continuously eroded because of globalization.
We’re not in any time going to fundamentally change Indiana’s economy and so we have
to deal with the labor force as it is. We have a good, technically minded labor base, but
the question is: what sectors are we creating in the state to employ that technical labor
base. And one of them ought to be the green technology sector.”

Kharbanda says it’s a state’s public policy, tax breaks, and other incentives that will attract the
most green collar jobs. Without those incentives, unemployed factory workers in Rust Belt
states will have to hope for some kind of recovery in manufacturing, or take lower paying, service sector jobs.

For The Environment Report, I’m Marianne Holland.

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