Memo to President-elect Barack Obama on Democratizing the Energy System
ILSR's recommendations to President-elect Obama on making decentralized energy a focus of Obama's intention to make "a new energy economy" a "No. 1 priority." We urge him follow a path that leads not only to changes in the fuels underpinning our energy system but also to changes in the structure and dynamic of that system. The key distinguishing characteristic of renewable energy, its virtually universal availability, offers Obama and the country an unprecedented opportunity to decentralize and democratize our energy system.
A new report by the Institute for Local Self-Reliance (ILSR) suggests that at least half of the fifty states could achieve energy self-sufficiency with the help of locally-focused federal energy policy. The findings should inform the energy policy of President-elect Barack Obama.
The next 20 years could generate as much as $1 trillion in new renewable energy investment in rural America. This new Ford Foundation-sponsored study by John Farrell and David Morris provides a policy roadmap for states and the federal government that would encourage modest-sized renewable energy facilities and local ownership. 
ILSR vice president, David Morris, responds to Al Gore's recent speech proposing a 10 year effort to move the United States to a 100% renewable energy electric system to address three major crises: the weak economy, catastrophic climate change and the dire national security problems inherent in our dependence on imported oil. Morris says that Gore got got two out of three right. A crash renewable electricity initiative would provide an immediate boost to our economy and could slow climate change, but it would do little to enhance our national security. Gore misses the key element of moving our transportation system to electricity. 
Can residential rooftop solar compete with new utility-scale concentrating solar electric plants? Only if federal and state incentives are amended to level the playing field. This May 2008 report explores the economics of solar PV and concentrating solar and shows how local ownership is hindered unless government solar incentives change. 
A wind turbine can power up to 600 homes, but 600 homeowners can't get together to own a wind turbine. Why? Because federal law makes local ownership virtually impossible. The federal wind-energy incentives -- up for renewal this year -- discriminate against local ownership and favor absentee ownership. They also severely restrict the number of investors who can finance wind-energy generators.
A debate between advocates of distributed and centralized renewable energy systems is just beginning. It is overdue. Consideration of scale in renewable energy systems has been delayed in part because we first had to bring solar energy in all its forms to market, and in part because the distributed nature of renewable energy resources seemed inexorably to lead to their being harnessed in distributed fashion. Only recently have we begun to realize that a renewable energy future does not inevitably mean a decentralized energy future. 
A typical 2 megawatt wind turbine provides enough electricity for around 600 average American homes. So why is it nearly impossible for those same 600 households to pool their resources and own a wind turbine? A new policy brief by the Institute for Local Self-Reliance (ILSR) shows how removing two barriers to owning and investing in renewable energy projects can pave the way for true energy independence.
Regulations coming into force in April and May 2008 will bring a wealth of energy and environmental information to homebuyers in the United Kingdom. Potential buyers will get an Energy Performance Certificate and a mandatory comparison of the new home to the requirements contained in the UK's Code for Sustainable Homes as part of home information packets (HIPs) prior to purchasing the home. 
Updating a pathbreaking 2003 report, ILSR's March 2008 report, 
A new policy brief from Institute for Local Self Reliance criticizes the authors of two recent studies published in Science for advancing a conclusion not supported by their own studies. ILSR's paper notes that the vast majority of today’s ethanol production comes from corn cultivated on land that has been in corn production for generations. Since little new land has come into production, either directly or indirectly, the current use of ethanol clearly reduces greenhouse gas emissions.
A new policy brief from the Institute for Local Self-Reliance concludes that universal dividends are a critically important tool to create the political will and public acceptance for a carbon cap. Universal dividends have the potential to hold harmless a large segment of consumers while we move to a low-carbon economy. Moreover, the universal dividend honors the principle that the sky belongs to all of us equally. Private investment in clean and efficient technologies will be driven by a carbon cap that leads to steady reductions over time of GHG emissions and carbon-based fuels.
This column by ILSR's John Farrell argues that in their desire to expand renewable-energy production, activists and policymakers focus almost entirely on “more,” rather than “better.” Twenty-seven states have renewable-energy standards, requiring utilities to produce or sell 10, 20, even 30 percent of electricity from renewable sources in the next two decades. The U.S. House just passed an energy bill with a national renewable-energy standard and a drastically higher biofuels mandate. This tunnel vision on “more” overlooks the substantial benefits that local ownership can bring to our energy future. 
Congress and most state legislatures have or are developing renewable energy policies with a single objective: get more renewables. Our new study, Wind and Ethanol: Economies and Diseconomies of Scale, finds that this single minded focus ignores the potential economic benefits from locally owned and more modestly scaled facilities. The focus should on better renewable energy projects not simply more.
The American Wind Energy Association (AWEA) recently released the results from their Small Wind Turbine Global Market Study, reporting that high up –front costs are preventing small wind systems from reaching their growth potential. The small wind industry has been experiencing annual growth in the range of 14-25% since 1985. AWEA says that Increased federal incentives could double the growth rate. 
The Interstate Renewable Energy Council (IREC) has issued the 5th edition of its Connecting to the Grid guide. The report and survey addresses new and lingering interconnection issues relevant to all distributed generation (DG) technologies. The guide hopes to assist state regulators and other government officials, as well as utility representatives, DG stakeholders and consumers interested in the development of state-level interconnection standards.
On April 2nd, the Internal Revenue Service issued a notice soliciting applicants for the next round of Clean Renewable Energy Bonds allocations. The CREBs program provides governmental entities, municipal and cooperatively owned utilities an incentive to develop renewable energy projects. Ultimately, an interest free financing tool, CREBs are a substitute for renewable energy production tax incentives that these entities are not able to use because of their tax exempt status. Applications must be filed by July 13, 2007.
Rep. Jim McDermott, D-Wash., recently introduced the Clean Renewable Energy for Public Power Act (H.R. 1821), which would extend and reform the Clean Renewable Energy Bond program authorizing government entities, rural cooperatives and municipally-owned electric systems to issue tax-credit bonds for renewable energy projects, as a counterpart to the production tax credit available to investor-owned utilities and other renewable energy project developers. 
A recent speech by ILSR Vice President, David Morris, focuses on ways to ensure that our nation's move to have 25 percent of our energy consumption come from renewable energy by 2025 will maximize the benefits to the communities in which these fuels are produced and harvested. 
The Energy Policy Act of 2005 required that DOE, in consultation with the Federal Energy Regulatory Commission (FERC), conduct a study of the potential benefits of cogeneration and small power production. The final report, The Potential Benefits of Distributed Generation and Rate Related Issues that May Impede Their Expansion, is now open for public comment until April 2, 2007.
This year offers a rare historical opportunity for our nation to marry energy and agricultural policy objectives. The new 110th Congress will be revisiting the 2005 energy bill and reauthorizing the 2002 farm bill, giving congressional leaders the chance to link increased rural prosperity and energy security. Two reports released today will be useful guides.
A recent column by David Morris published on Alternet provides a review of George Monbiot's new book Heat: How to Stop the Planet from Burning. The book picks up where Al Gore left off on global warming, offering real solutions without sugar-coating the large personal sacrifices they will require.
Biofuels won't single-handedly solve the climate crisis, nor will they deliver energy independence. But a base of widely dispersed, farmer- and citizen-owned biofuel plants can displace significant amounts of fossil fuels -- while also building local economies. ILSR's recent column in Grist Magazine outlines a federal energy and agriculture strategy to move us in the right direction.
One of the first orders of business for the new Congress should be to eliminate a single sentence in the Energy Policy Act of 2005. The language was added in the waning hours of the conference committee negotiations. According to ILSR, if it does not, the commercialization of ethanol made from cellulose could be delayed.
A new report issued by the Institute for Local Self-Reliance urges the U.S. Department of Energy to change its piecemeal approach to commercializing ethanol from cellulose and develop a comprehensive strategy. "The future of American agriculture may depend on this," says David Morris, Vice President of ILSR and author of Putting the Pieces Together: Commercializing Cellulosic Ethanol.
ILSR's David Morris believes that U.S. government programs supporting ethanol need to be refocused on farmers and local ownership and be broadened to include other renewable fuels. His opinion piece in today's New York Times is expanded here in a paper titled, The New Ethanol Future Demands a New Public Policy.
All UK central government departments and their agencies will be carbon neutral within six years in an attempt to model environmentally sustainable behavior to business and consumers. Once carbon neutrality is reached, the government has set an additional target to reduce carbon emissions from government offices by 30 percent by the year 2020.
Starting in June 2007, home buyers in England will be able to look at an energy performance certificate for the property before they purchase it. The assessment will advise consumers on which energy measures - ranging from insulation to solar panels - could cut carbon emissions from their home and improve their energy rating. 
Under a compromise agreement, legislation was passed into law in May 2006 that requires Minnesota's largest coal-fired power plants to cut mercury emissions by 90 percent by 2015. Utilities were brought on board by allowing immediate recovery from ratepayers the cost of installing the necessary pollution control equipment.
The carbohydrate economy could transform agriculture as well as energy, reviving producer co-ops, and giving farmers a hedge against voilatile commodity prices. For the first time in 60 years, the carbohydrate economy is back on the public-policy agenda. It is an exciting historical opportunity, but one we should approach with deliberation and foresight.
A December 2005 Energy Saving Trust report concludes that small wind and solar along with residential cogeneration technologies could provide a substantial portion of the UK's domestic energy needs by 2050.
About 70 biodiesel manufacturers and distributors have urged the IRS to allow 100 percent biodiesel to qualify for the recently enacted excise tax exemption for biofuels. The IRS is interpreting the tax incentive law to only apply to biodiesel blends of less than 100 percent vegetable or animal-fat oil.
The Federal Energy Regulatory Commission (FERC) is proposing to amend its regulations to require public utilities to include specific technical provisions for wind energy in their open access transmission tariffs (OATTs). The new rules will allow wind power projects to be integrated more firmly into the existing transmission system.
A coalition of U.S. and foreign automobile manufacturers and car dealerships in California joined together to file a lawsuit against California's innovative rule to reduce greenhouse gas emissions from vehicles in that state. In a tug of war between federal and state authority, the stage is set for an illuminating public debate on how far a state can go in directing its own energy future.