Tag: energy

Time Running Out on Energy Credits

  • Pete Sickman-Garner and his daughter Robin with their new high efficiency freezer. After getting rid of a 25-year old energy hogging fridge, insulating their house, and putting in new storm windows, their gas and electric bills are much lower. (Photo by Rebecca Williams)

One thing is clear… energy prices are just going to keep going up. If you’ve been thinking about making your house more energy efficient, now’s the time. That’s because a federal tax credit will be running out in a few months. Rebecca Williams has more:

Transcript

One thing is clear… energy prices are just going to keep going up. If you’ve been thinking about making your house more energy efficient, now’s the time. That’s because a federal tax credit will be running out in a few months. Rebecca Williams has more:

Pete Sickman-Garner didn’t have any trouble finding the leaks in his house. It was built in the 1940’s… with pretty much zero insulation.

“It was cold! There were nights my daughter woke up because she was had rolled over and touched the wall and it was so cold it woke her up.”

And there were those huge gas and electric bills in the dead of winter. He says he and his wife knew they really needed to seal up the house. So they hired a guy to blow insulation into the walls. And they put up new storm windows.

“It was roughly a $4000 home improvement so not insignificant. But so far we’ve gotten back $900 on our gas bill… it should pay for itself easily within 5 years.”

And on top of that they got a tax credit.

There was a pretty huge tax incentive last year for making your home more energy efficient… and it’s happening again this year. But it’s winding down. You only have eight months left.

Here’s how it works: the government will essentially pay you to make your home more efficient. Little purchases like weather stripping count. Bigger things like insulation and storm windows do too. And so do the really big things like a new furnace or central air conditioner. You can get a tax credit for 30 percent of the cost of these things… up to 15-hundred dollars total for all of your purchases. That’s money sliced right off your tax bill.

But like most things with the word “tax” in them… these home energy tax credits can get complicated.

Insulation and air conditioners and windows have to meet certain codes. You can’t go by the Energy Star label alone. On top of that… you can include the cost of installing heating and cooling equipment in your tax credit. But you can’t include those installation costs for anything else. So here’s where it’s good to call in a tax credit pro to help you wade through the details.

Ronnie Kweller is with the Alliance to Save Energy.

“When you go shopping, definitely ask the retailer: do these items qualify for the federal tax credits?”

Kweller says the best place to start is to make sure you have enough insulation for your climate. And then, seal up the little leaks in your house. You could pay three to five hundred dollars for an energy audit. Or… you can try this trick: close all the windows and doors… turn on your kitchen and bathroom exhaust fans. And then:

“Light, say, a stick of incense and just walk around the perimeter of your house on the inside, holding incense around the edges of windows and doors and if you see smoke blowing in towards you whether or not you can feel air coming in, you’ll know there is some air leak.”

She says sealing up those leaks can save you as much as 20 percent on your energy bills.

And a lot of the little – and big – things you do can count toward your 15-hundred dollar credit.

The thing is, most people tend to think about their taxes at the end of the year. Unfortunately for some businesses… that means they’re slammed when the weather’s the worst.

Donna Napolitano runs Mechanical Energy Systems. They sell all kinds of high efficiency heating and cooling equipment. She says people were squeaking in their big purchases right up until December last year.

“It was crazy here! We were installing every day and we had to combat against the weather, I mean hello, summer’s here it’s a great time to put systems in now!”

Unless this tax credit gets extended… you only have a few more months. Everything has to be paid for and installed by December 31st. So if you’re a procrastinator… you might want to start thinking about your projects sometime soon.

For The Environment Report, I’m Rebecca Williams.

“By the way… if you want to do extremely efficient installations like solar panels and geothermal heating and cooling systems, that 30-percent tax credit is not capped at 15-hundred dollars and does not run out this year.”

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Budget Trimmers Target Ethanol

  • CEO of Growth Energy, Tom Buis argues ... we spend plenty of money for overseas oil ... why not support home-grown ethanol?(Photo courtesy of the NREL)

President Obama’s visit to the Corn Belt is highlighting a tough debate about the future of corn-based ethanol used in our cars.

Transcript

President Obama’s visit to the Corn Belt is highlighting a tough debate about the future of corn-based ethanol used in our cars.

Congress is looking to cut the federal budget and one target is a key ethanol subsidy.

It’s a tax credit of about 4 and a half billion dollars, and it runs out by the end of the year.

Ethanol trade groups are fighting to extend that credit.

Tom Buis is CEO of Growth Energy.

He argues … we spend plenty of money for overseas oil … why not support home-grown ethanol?

“We create jobs, jobs that can’t be outsourced. I don’t know why we want to fund economies of foreign governments. We should be looking at spurring our own economic development here in the United States.”

Last year the Government Accountability Office questioned whether we need this particular ethanol tax credit, since the government requires gasoline refiners to blend-in billions of gallons of ethanol anyway.

For The Environment Report, I’m Shawn Allee.

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Greenovation: Spray Foam Your Home

  • While there are tax credits for spray insulation, credit is available for the material only, so the contractor should separate out the material and the labor costs.(Photo courtesy of the NREL)

When people talk about making their home energy independent, they often talk about solar panels and wind turbines. But before all of that, a home has to be tight. That’s not as exciting, but necessary. Lester Graham is following Greenovation.tv’s Matt Grocoff as he tries to make his home the oldest net-zero-energy house in America.

Transcript

When people talk about making their home energy independent, they often talk about solar panels and wind turbines. But before all of that, a home has to be tight. That’s not as exciting, but necessary. Lester Graham is following Greenovation.tv’s Matt Grocoff as he tries to make his home the oldest net-zero-energy house in America:

The note on Matt’s door told me to come on in and head for the basement. Matt’s 110 year old home has what’s called around here a “Michigan basement.” Basically, cement floor, stone walls, low ceilings. Not glamorous.

Matt is spraying expanding foam insulation up in that area where the floor framing sits on the foundation. The sill plate… which is basically nothing more than one-and-a-half inches of wood between inside your home… and the great outdoors.

“There’s no insulation between your house, or your living part, and the foundation itself.”

Maybe you’ve been in the basement of an old house and sometimes you can actually see daylight through the sill plate in places. Those leaks need to be sealed. That could be done with caulk. Then the area needs to be insulated. That could be done with fiberglass insulation.

“What we decided to do is to do both at the same time, seal and insulate, is to use a do-it-yourself spray foam insulation kit from Tiger Foam. There’s plenty of professionals out there, and for most people, that’s what I’d recommend you do, go to the professional. If money is an issue or if you’re a really handy person, these spray foam kits are fantastic.”

The foam insulation kit costs about 300-dollars. It’s basically two tanks -each about the size of a propane tank you’d use for an outdoor grill. A hose from each tank is attached to a spray gun that mixes the chemicals. The chemicals mix as they come out and the make a sticky foam that expands into nooks and crannies and then hardens after several minutes.

“Way easier than I thought they were going to be, by the way. I was actually terrified. I went back and read the instructions three – four times. And when I started spraying, it wasn’t that bad.”

“You still ended up with a goof, though.”

“I did have a goof. There was a little bit of foam there, dripping, when I forgot to turn on one of the canisters, but what ya– c’mon Lester.”

Matt’s goof means he’s going to have to wipe up some of the mess and spray again. But it’s not a disaster.

If you’ve got a big job… maybe new construction or a remodel that takes it down to the studs… you might want to consider a professional.

John Cunningham owns Arbor Insulation in Ann Arbor, Michigan. He says, sure, if you’re up to it… do it yourself.

“You could assume that it’d be cheaper to do it yourself and the kits are a really good option, especially for people that have smaller projects or they’re looking to do the work in a very specific time frame or in a distant location for instance.”

But the professionals are recommended for those big jobs. And right now there are federal tax credits for spray foam insulation– 30-percent up to 15-hundred dollars. That credit is limited though.

“The tax credit is available for the material only, so the contractor should be separating out the material and the labor. Also, there are additional incentives from some utilities and more incentives coming down the pike.”

Some states and even municipalities are considering incentives.

One final note… to use the spray foam, Matt Grocoff is decked out in a white haz-mat suit, latex gloves, goggles and a respirator…

“You’ve got to take all the safety precautions. You’ve got to wear your goggles, your suit. And it also can be messy too. Any overspray that gets in your hair will stay in your hair.”

And as he zips up, I get the hint that Matt has to get back to work.

“I do. I’ve got 30 seconds before this nozzle sets up. So, Lester, thanks again.”

“Sounds like my cue to get out of here. That’s Matt Grocoff with Greenovation-dot-TV. I’m Lester Graham with The Environment Report.”

“Thanks Lester.”

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Politics Delay Climate Bill

  • Senator Lindsey Graham has walked out on the bill– saying he can’t go forward because the Democratic leadership is now playing politics with immigration policy.(Photo courtesy of the US Senate)

A climate and energy bill was supposed to be introduced in the Senate this week. But Mark Brush reports… politics are getting in the way:

Transcript

A climate and energy bill was supposed to be introduced in the Senate this week. But Mark Brush reports… politics are getting in the way:

Senators John Kerry – a Democrat – Joe Lieberman – an Independent – and Lindsey Graham a Republican have been working on a climate and energy bill.

There have been months of delicate negotiations.

But Senator Graham has walked out – saying he can’t go forward because the Democratic leadership is now playing politics with immigration policy.

Dan Weiss is the Director of Climate Strategy for the Center for American Progress – a liberal public policy group. He says all these delays come with costs:

“Every day that we wait to reform our energy policies, we buy a billion dollars worth of oil from other countries… Iran will earn an extra hundred million dollars in oil revenue… China will get further ahead of us in developing the clean energy technologies of the future.”

The House passed a climate and energy bill last year, but a Senate bill has been repeatedly delayed.

For The Environment Report, I’m Mark Brush.

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Climate Bill to Cut EPA Authority

  • Some senators say to pass any bill, they have to cut the EPA's authority, but environmental groups say this would be a mistake. (Photo courtesy of Wikimedia Commons GNU 1.2)

A big climate-change bill will be introduced in the U-S Senate next week.
Shawn Allee reports it’s expected to stop the Environmental Protection Agency from regulating greenhouse gases:

Transcript

A big climate-change bill will be introduced in the U-S Senate next week.

Shawn Allee reports it’s expected to stop the Environmental Protection Agency from regulating greenhouse gases.

Congress worked on climate bills for more than a year, but all that time, the US Environmental Protection Agency worked on its plans.

EPA’s got authority to regulate greenhouse gas emissions on its own.

It’s doing that in case Congress waits too long or legislation’s too weak.

But some senators say to pass any, bill, they have to cut EPA’s authority.

Environmental groups say this would be a mistake.

Howard Learner is with The Environmental Law and Policy Center.

“The only justification to constrain the US EPA’s ability to do it’s job and do it well under the Clean Air Act is if Congress steps up in a comprehensive, thorough, durable, way to protect our public health and protect our environment.”

Lerner says we don’t know whether Congress’ approach to climate change will work, so the EPA should keep some power over greenhouse gas emissions … as a kind of back-stop.

For The Environment Report, I’m Shawn Allee.

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Co-Opting “Cap and Dividend”

  • Senator Maria Cantwell says something has to be done to push the country toward alternative sources of energy – and away dependence on polluting fossil fuels. (Photo courtesy of the NREL, Warren Gretz)

A new climate change bill will be introduced next week. It’s expected to be very complicated because of so many competing interests. Critics say it won’t pass. Julie Grant reports another much shorter and simpler bill in the Senate is getting some overdue attention:

Transcript

A new climate change bill will be introduced next week. It’s expected to be very complicated because of so many competing interests. Critics say it won’t pass. Julie Grant reports another much shorter and simpler bill in the Senate is getting some overdue attention.

Carbon emissions come from smokestacks, tailpipes and all kinds of manufacturing processes. It’s considered the biggest culprit in the greenhouse gas pollution contributing to climate change.

We’ve heard a lot about a possible cap and trade program to reduce carbon emissions. The House of Representatives passed a cap and trade bill last summer, but it hasn’t gone far in the Senate. Senators John Kerry, a Democrat, Joseph Lieberman, an independent, and Lindsey Graham, a Republican have been working on a bill for months.

But a simple bill called The CLEAR Act introduced last December has been is gaining interest. Senator Maria Cantwell is a Democrat from Washington State. She co-sponsored the bill with Republican Susan Collins of Maine.

Cantwell says something has to be done to push the country toward alternative sources of energy – and away dependence on polluting fossil fuels. That’s why they’re pushing the bill, called cap and dividend:

“We’re saying we think it’s very important to have a simple approach that the American people can understand. a 41-page bill is a lot about getting people to understand how this can work and helping us make a transition.”

Like cap and trade, the CLEAR Act would limit carbon emissions—it would put a cap on them. But it’s different from the complicated cap-and-trade plan that would target those who use energy and allow for many kinds of loopholes.

The Cantwell and Collins cap and dividend plan would concentrate on those who produce energy from fossil fuels. It would cap carbon at the tanker bringing in imported oil, the mine extracting coal, the oil and gas at the well head.

It would charge those energy producers for permits. Each year the number of permits would be reduced, so theoretically, the amount of carbon pollution would be gradually reduced.

Twenty-five percent of the money from the permits would go toward a clean energy fund. The other 75-percent would be paid at a flat rate to each person in the nation to offset higher energy prices.

So, fossil fuel energy would be more expensive, but families would get money to offset the higher costs.

Cantwell says no matter what we do, even if we do nothing, energy costs are going to rise. She says people want to know what to expect in their energy bills.

“What they want to know is how do you make that transition with the least impact to people and that’s what the Clear act is about; it’s about making a stable transition, and helping consumers along the way not get gouged by high energy prices.”

Many economists and environmentalists like the cap and dividend idea.

Senators Kerry, Lieberman and Graham have said they’ll fold some elements of cap and dividend into their massive proposal.

Darren Samuelsohn is the Energy and Environment Reporter for GreenWire. He says the three Senators are taking a comprehensive look at carbon pollution in relation to the entire U.S. energy policy.

“They’ve been meeting as a group of three behind closed doors working to try and satisfy the needs for a price on carbon emissions, across multiple sectors of the economy–power plants, heavy manufacturing and transportation.”

And they’re using bits and pieces of the Cantwell-Collins proposal.

Senators Cantwell and Collins say they don’t want their bill

cannibalized by that large scale bill.

One reason Cantwell is concerned is that the Kerry, Lieberman Graham bill allows trading permits. She says trading hasn’t worked in the European system. And she’s concerned it will make the price of carbon vulnerable to speculators who could drive the prices up artificially.

Instead, she wants carbon prices decided at monthly federal auctions.

Cantwell says the time is right for a simple, predictable bill like the CLEAR Act.

“You don’t have to ahve a 2-thousand page bill and figure out how many allowances you have to give away in the back room to make somebody believe in this. This is a concept the American people can understand and one they can support.”

On Monday, the Kerry-Lieberman-Graham bill is expected to be introduced. The vote will be very close, so they can’t afford to ignore what Senators Cantwell and Collins want.

For The Environment Report, I’m Julie Grant.

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Ivy League Gets Greenest

  • In this Green Power Challenge, only 54 schools were purchasing enough green power to qualify. (Photo courtesy of NREL)

Colleges and universities have been competing to see who can buy the most green energy. Rebecca Williams has this year’s results:

Transcript

Colleges and universities have been competing to see who can buy the most green energy. Rebecca Williams has this year’s results:

The Environmental Protection Agency puts on what it calls a “green power challenge” among colleges each year – who’s using more renewable power such as solar, wind, and geothermal.

This year, the Ivy League beat out the Big Ten to come in first.

The University of Pennsylvania was the top winner.

Blaine Collison directs EPA’s Green Power Partnership. He says colleges and universities can have a lot of influence with utility companies.

“If every school in America were to stand up tomorrow and say ‘we want to be 50% green powered by the end of next year’, the supply side of the market would say, ‘great, let’s talk about how to do that.’”

But in this competition, there’s a lot of room at the top. Only 54 schools were purchasing enough green power to qualify for the challenge.

For the Environment Report, I’m Rebecca Williams.

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New Bi-Partisan Climate Change Bill

  • Darren Samuelsohn says the bill will also include a national renewable electricity standard, requiring more power to come from sources other than fossil fuel such as coal. (Photo courtesy of NREL)

A long-awaited climate change bill in the Senate is to be released next week. A prominent Republican says the bi-partisan bill won’t pass. Lester Graham reports:

Transcript

A long-awaited climate change bill in the Senate is to be released next week. A prominent Republican says the bi-partisan bill won’t pass. Lester Graham reports.

Senators John Kerry, a Democrat, Joseph Lieberman, an independent and Lindsey Graham, a Republican have been working behind closed doors for six months to draft a climate and energy bill. They’re supposed to release it next Monday.

Darren Samuelsohn covers Washington for ClimateWire. He says no one knows everything the bill will include… but some points have been revealed.

Samuelsohn: Price on carbon emissions across multiple sectors of the economy: power plants, heavy manufacturing and transportation and then trying to ramp up a range of domestic energy supplies from nuclear to natural gas to oil.

Samuelsohn says the bill will also include a national renewable electricity standard, requiring more power come from sources other than fossil fuel such as coal.

Samuelsohn speculates this bill could pass in the Senate… but it will require some arm twisting and deal making by President Obama.

The Senate’s chief climate change denier, Republican James Inhofe told Fox News the bill won’t get half the votes it needs to pass.

For The Environment, I’m Lester Graham.

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Energy Star Approval Gets Tougher

  • This week the EPA and the Department of Energy started requiring complete lab reports to review before approving products for Energy Star labels.(Photo courtesy of Energy Star)

The agencies in charge of the Energy Star Program are making it less vulnerable to fraud. Lester Graham reports, a covert investigation revealed corporate self-reporting could be faked.

Transcript

The agencies in charge of the Energy Star Program are making it less vulnerable to fraud. Lester Graham reports, a covert investigation revealed corporate self-reporting could be faked.

The Energy Star Program certifies whether appliances and other products lower energy costs. But, it was based on the honor system. If the company said its product qualified, it got the Energy Star label.

The Government Accountability Office submitted fake products to the Energy Star program. Jonathan Meyer was one of the investigators.

Meyer: We initiated our work by submitting fairly common products and those made it through the certification process without any real scrutiny, so we increased the level of, you know, ODD products toward the end of our investigation to see if there’s any type of information that would raise red flags.

Even a phony gas-powered alarm clock was certified as Energy Star compliant.

This week the EPA and the Department of Energy started requiring complete lab reports to review before approving products for Energy Star labels.

For The Environment Report, I’m Lester Graham.

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Subsidizing Solar Power

  • John Wakeman of SUR Energy says government and utility incentives have lowered the costs of a solar installation for consumers.(Photo courtesy of Mark Brush)

Sources of renewable energy like wind, solar, and hydroelectric are still just tiny players in a world powered by fossil fuels. Most of the power for your light switch comes from burning coal and natural gas. Mark Brush reports the government is trying to change that. There are state and federal programs that will pay you to put solar panels on your house:

Transcript

Sources of renewable energy like wind, solar, and hydroelectric are still just tiny players in a world powered by fossil fuels. Most of the power for your light switch comes from burning coal and natural gas. Mark Brush reports the government is trying to change that. There are state and federal programs that will pay you to put solar panels on your house:

John Wakeman was laid off from his factory job eight years ago. So, for him it was, “well… Now what?” He’d always been interested in solar panels and wind turbines. So he decided to go into business helping homeowners put these things up. It’s been eight years, business was slow at first, but he says these days, business for solar panels is picking up.

“There are a lot of people that have always just dreamed of it. You know, they thought it was really cool, they looked into it in the ‘70s. In the 70’s it cost, you know, ten times as much for the same energy. The costs have really come down.”

But it’s still really expensive for a lot of people. Wakeman says a typical solar job costs around sixteen thousand dollars these days.

But now – you can get help from the government.

There’s a federal tax credit that will pay for 30% of the cost of new solar panels on your house. So you spend sixteen grand – you get $4,800 off your next tax bill. And on top of that, there are a bunch of state and utility operated programs that will help pay for the up-front costs.

In fact, more than half the states in the country are forcing utilities to make more renewable power.

So more utilities are paying people to install things like solar panels, wind turbines, and geothermal heat pumps.

In many places, it costs less to install these things than it ever has.

Wakeman says these incentives have been good for his business.

“I can actually build a business somewhat on that. I can hire some people and get them trained. You know we can go out and sell some systems.”

But some say these subsidies are not a good idea:

“The sunlight may be free, but solar energy is extremely expensive.”

Robert Bryce analyzes the energy business for the Manhattan Institute. It’s a conservative think tank. Bryce says solar power is enjoying big subsidies from the government right now, but it’s not translating into a lot of power going onto the grid:

“Solar energy received 97 times as much in subsidies per megawatt hour produced as natural gas fired electricity; even though the gas-fired electric sector produced 900 times as much electricity as solar. So how much subsidy are we going to have to give them to make them competitive. And I think the answer is going to be… It’s going to have to be a whole, whole lot.”

Bryce agrees – there are some big environmental costs to traditional fossil fuel sources. Costs that are not always paid for. But in the end – he says renewable energy sources like solar just can’t compete with traditional fossil fuels.

But others say the subsidies for renewable power are boosting an industry that is trying to get a start.

Rhone Resch is the president of the Solar Energy Industries Association. He says the subsidies renewables are getting today just make the game fair:

“We’re starting to get the same kinds of support from the federal government that the fossil industry has enjoyed for the last 75 to 100 years. And when you do that, the cost of wind comes down, the cost of solar comes down, the cost of geothermal becomes more cost competitive.”

If you look at the numbers, traditional power sources have always gotten more money from the government. In 2007, the federal government gave out 6.7 billion dollars in subsidies to support electricity production. Most of it went to coal, natural gas, and nuclear.

Today, renewable energy sources, like solar, are getting a little more help. And supporters hope that help doesn’t disappear – like it has in the past – when the political winds change.

For The Environment Report, I’m Mark Brush.

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