Where's the Price Signal?

ENERGY EFFICIENCY EDUCATION

It's clear to even the simpletons like myself that massive energy efficiency practices are of the first order to begin the larger efforts of reducing our fossil fuel use, developing energy independence and reducing our carbon footprint.

Unfortunately, this is not happening fast enough. Everyone wants to be the finder or at least associated with "The Big Answer" to these energy problems. All good and fine but in the meantime, we - the US and the world - need to become energy leaner, as has been mentioned.

Just had a home energy audit done, free, from our local electricity provider. It was not completely comprehensive but it was sufficient enough to produce many good suggestions and an estimate for energy efficient work and installs to reduce our home's energy use. That work/install estimate was a 75% discount over a "conventional estimate" (blown-in insulation, baffles, insulated attic door, etc.) SEVENTY FIVE PERCENT! And their computer program spit out that my payback time at that price to be under 3 years. That's a pretty good investment.

Now the problems, which are at least two-fold: I found out about this program purely by luck; very few know this program exists. The terrible communication regarding this program must mean that there's limited sincerity for it to be utilized (a quasi-state & utility entity administers) because I wouldn't consider myself a head in the sand person. It seems to me that we - our politicians, us, all - are not nearly serious enough about becoming energy lean. There's still way too much talk but too little communication and/or action.

Secondly, the way I found out about this program was through an Internet search for "energy efficiency education" and "home energy audit training". I can't answer for other areas of the country but here in Massachusetts, I have found it near impossible to find any information and opportunities to become trained and certified as such. For someone like myself who is hungry, prepared and available for a career change that would benefit me, my family, my community, my country, well...it doesn't appear to be an easy find. We need to encourage our state educational institutions, community colleges, tech schools - all of them - to offer educational training for building and retrofitting our homes, offices and other structures to be more energy efficient. I want to be a home energy auditor and I'm finding dead ends to getting there. Not good.

If we don't learn and experience the many benefits of energy efficiency, we won't care. And like anything else, if we want to become comfortable with the direction of energy efficiency in all its forms, we will need to incorporate it to K-12 education.

I suspect I speak for many when I say keep up the great research and worldly experience you bring to your books and articles, educating us regarding the the problems and possibilities. Promote education on a local level because programs generated from the feds are too distanced from most of us, as I think you've experienced visiting peoples from around the world and their relationship with their federal governments.

In the same vein, a gas tax might be best served set at state levels. There we will need to keep the revenue focused on energy efficiency and renewable energy. State level programs will bring energy issues and solutions closer to home. The feds may be best served encouraging such through policy and financial incentives to the states.

Danny

Hello Tom,

Thank you for your amazing work. I’ve worked in wind energy as a project engineer for the last seven years and am a firm believer that millions of American families can make a decent living from CleanTech if our leadership unites to lay down sensible policy for a clean energy future.

Policy ideas:
1) Extend the Production Tax Credit for wind energy a minimum of 8 years. The Investment Tax Credit for solar was recently passed for 8 years and the same leadership needs to be applied to wind. The 20/30 plan is achievable if the tax credits are there up front to provide market stability. Read more at www.awea.org. Oil, gas, coal and nuclear have been subsidized for decades as the technologies matured. Wind and Solar are proven and deserve the same government support to mature the technologies, build the factories and train the workers needed to make wind energy reach 20% of our nation’s generation capacity by 2030.
2) Conservation. It kills me that we waste so much energy in our homes and businesses. From a cost and CO2 management perspective, burning fuel that is not properly utilized is asinine. Another thing that most people are ignorant of is that working on power plants is dangerous. Respect the workers who provide you the power and don’t waste it!
a. Renew the federal tax credits for energy efficiency upgrades that expired in 2007. Replacing old, leaky windows with tight, low-E glass windows is not cheap. We recently dropped $20k on new windows and doors and that was just for the top floor! Energy efficiency is imperative to our national security….reward those that take the initiative to improving their efficiency.
b. Encourage people to start monitoring their monthly electricity and gas usage by offering a tax credit to families that can proove a sustained monthly energy usage reduction of 8% for every month of the current tax year compared to the previous. (Degree days would have to be accounted for in gas usage.)
c. Start a Conservation Crusade. Set thousands of high school and college kids loose during the summers going door to door educating people on global warming and energy efficiency. Arm them with the facts and literature to engage and convince a speculative public. Have the crusaders install 5 CFL light bulbs in each house. Have them distribute coupons for energy audits
d. Employ an army of workers who perform energy audits on homes, weatherizing and changing light bulbs as they go. While the auditors are at the house, they can evaluate the homes solar thermal and PV potential as well as asses the insulation levels and check for leaks. All the information gathered needs to be entered into a standardized database. Give the option to homeowners to make their data open to businesses that would like to contact them about energy efficiency improvements.
3) Implement a carbon tax now. Start at a reasonable low level and outline how it will increase annually until it is effective to bring about the change in CO2 levels required. The introduction rate will send the signal that the tax is for real but be low enough not cripple industry and allow companies time to adjust. The carbon tax needs be shared between producers and consumers.
4) Create product labeling that indicates carbon footprint for consumer goods that takes into account the embodied energy of manufacture, packaging and transport. The label will allow consumers to make a sound choices based on environmental factors in addition to price and quality.

Thank you again.
Regards,
Mike Hornemann
Bozeman MT

I really think that the main problem we're facing with the energy crisis (global warming, diminishing reserves of oil, etc.) is that most people don't know or care how serious it is. We need to shock them into understanding! This suggestion may be too long-range and too indirect to count for much, but one idea would be for Obama to ask someone like Steven Spielberg to make a film which would VERY graphically demonstrate what our world will be like if we continue to do nothing -- sort of an apocalyptic view (like "Deep Impact"). (Possibly the government should provide funding to make the film. It seems like we're funding everything else!) Show this film, possibly for free, in theaters. Show it to all school children. (High school students should also be required to watch "No End in Sight", "Crude Awakening" and similar films.) Only when people are really afraid will they be willing to make the sacrifices which WILL be required of all of us.

Mr. Friedman:

I do not have the knowledge needed to devise a plan to save us from ourselves. I know there are many others who can do that. I do know that something has to be done to pressure the government and Congress to enact laws executing whatever plan is best. (I do agree totally with the concept of gasoline taxes on a Federal level and I would want them as high as the public can handle with the tax revenues used to provide funding for clean power research, etc)

I read a book months ago called "The Shock Doctrine" by Naomi Klein which comes to mind at this time. Basically, her point is that major innovations and changes, some good, some bad, come about primarily during times of crisis or disaster. I think that the current situation qualifies as a crisis and so I propose that an overwhelming push needs to be made NOW to pursue goals which might otherwise take years to achieve.

I am normally not one to send email blasts to my friends about causes, however I plan to set up an email network to spread information about current supportive (and non supportive) legislation and to urge my friends to pass along my emails to all of their friends and family, especially their kids. I am hoping to include email contact information for the appropriate legislators so that each person can easily email the legislators and express his support of the need for immediate change in policy. I haven't completely fleshed out all of the details, but that's the general concept.

I feel that, as you said in your recent book, the pressure for change needs to come from the bottom. I hope that anyone else who thinks that this is a good idea will do the same. The internet is a wonderful way to drive a grassroots effort to achieve change. The politicians need to hear from their constituents that we demand a change in policy and a well conceived plan of action.

I have been trying to send ideas to the Obama transition team, regarding the composite problem of energy, the economy, unemployment and global warming. The issue is can we help all of these items at the same time. I believe we can.
Gasoline consumption/oil usage
1. Legislation to loan the American auto industry money should be dependent on redesign of all new cars as Hybrid vehicles. All new non-commercial trucks should be required to switch to compressed natural gas.
2. The auto makers should be required to create conversion kits for all existing cars.
3. All automobiles older than 10 years would be required to switch to compressed natural gas. The only exception would be antique vehicles, that are used for “showing”, but not for normal road driving.
4. All cars less than 10 years old should be required to have the conversion kit, before a new automobile license plate can be issued.
5. Conversion-kit coupons for a return to the tax payer should be created, to promote the purchase and installation of the conversion kits.
6. Gasoline should be taxed at $1.00 per gallon, and the funds should be transferred to the federal government to help with the initial loan to the auto manufacturers.
7. All gasoline stations would be required to install units to provide for “electric quick starters”, for automobiles with battery issues.
8. All gasoline stations would be required to have compressed natural gas available for refill for all vehicles requiring this energy source.

These measures would stimulate the car manufacturers to rehire employees, stimulating the economy, while reducing dependence on foreign oil and while improving the carbon emission problems.
Fossil fuel usage must be reduced.
1. Legislation needs to be passed requiring all state and local governments to convert from fossil fuel to natural energy sources for at least 50% of energy consumption.
2. All government buildings must be converted to solar, wind-power or other natural heating/cooling and electricity usage.
3. All highway lighting must be converted to solar, wind-powered or other natural source electricity.
4. To fund this initiative, state and local governments would be given money for the purchase of the units, with the stipulation that all solar, wind-power or other natural energy devices using the federal funds be both manufactured at least 50% by Americans with at least 50% American made parts. Further stipulation would be the installation of the devices be done by state and local residents.
5. American manufacturers would be given government-backed, low-interest loans to produce these “natural energy” devices. This would also create jobs.
These measures would stimulate manufacturing of “natural” energy sources, stimulate the American economy, and reduce the carbon emission problem. By stipulating the installation of devices be done locally, the local economy would be stimulated, and local unemployment would decline. Spending would then increase, causing an almost immediate repair to the economic problems.
Legislators and administration experts are dividing the issues, but solving some of the problems can be done by adopting an attitude that a solution can help multiple problems.
To put people back to work, help the economy and the global warming, and bail out the Auto manufacturers, we can work diligently on the environmental problems.

Just finished Hot, Flat & Crowded which put many enviromental challenges in easy to understand language for the common person.
You next book (and Obama's mantra) should be:
LEANER, MEANER and GREENER

Make this the Rallying Cry of North America and the Industrialized World.
Eric Nelson, Sussex, New Brunswick, Canada

I read your column yesterday in the Times and couldn't agree more with what you said --including the pressing need for a gasoline tax. But what really struck me about the column was the premise that Gen X is too complacent about current events. I would never describe myself as complacent, particularly about the environment, and yet it had never occurred to me that the auto bailout was the kind of thing I could have any impact on. As a 33 year old X-er, I don't feel I can afford to wait in taking action around the concerns of my generation, yet I don't want to waste time in empty or counterproductive gestures.

This all serves as a roundabout introduction to the following question. If my generation needs to be more radical and less complacent about what is being done to our future, then what should that look like, and what kinds of actions should we look to take?

http://kitoba.com

Mr. Friedman

This morning I saw a program on C-SPAN 2, a replay from 12/06, in which you participated. It was a discussion called The Future of the Global Economy, Brookings Institute. I checked both C-SPAN and the Brookings Inst. websites to see if they provided an archived video that could be viewed as I wished to share it with members of my web group. Unfortunately it was not available. I ask that you urge them to do so. This discussion should be viewed by as many people as possible.

Mr. Friedman -- Sorry I missed you on CBS this morning -- I was watching Barack Obama on Meet The Press. As I sit here watching 60 Minutes talk about Saudi Arabia's efforts to find ever more oil to keep oil prices low, I really think Obama should set a gas tax for the country. While Tom Brokaw suggested a $4.00 tax, which Obama rejected, $4.00 is clearly very difficult for Americans to handle in this economy. However, I believe Obama SHOULD set a tax in an effort to keep prices at at least $2.50 a gallon. The last thing we want is for Americans to go back to gas guzzling cars, and I believe that at $2.50 ($2.75, possibly even $3.00), Americans can handle the price, and the tax can go to encourage green technologies. If prices continue falling, the green industry will be crushed, which is of course what the Middle East wants.

While I don't think that US industry can be competitive in the World if we force our companies to pay more for energy than our global competitors (global standards need to be established if possible), with respect to the price of gasoline (which mostly only affects us domestically, and plays a relatively small role as a cost of input for our exports), we should impose something of a tax to encourage conservation. And if industry can grow to trust a higher price for gasoline, more innovation will be encouraged to provide alternative fuels, of course in our long term interests. The revenue generated from the tax would be used to encourage investment in alternative energy.

I like Boone Pickens' idea of replacing oil burning cars with natural gas cars, and using wind power to replace natural gas fired power plants. I don't know how the US Auto Industry, in its current state, can realistically fund the move to natural gas.

But in general, we need to impose a modest tax on gasoline and keep it -- despite the economy -- now. Otherwise, innovation will continue to suffer, as new ideas that are competitive at one oil price, will be uncompetitive at a lower price. Gasoline is something we can mostly control without affecting our export comptetitiveness. Since the Saudis and others still have very low marginal costs for much of their production, as demand for oil drops, prices can fall dramatically. We MUST impose taxes to keep prices somewhat higher so that alternative fuels can be developed. Let's NOT risk another 1981. That was the last time the US turned away from developing green technology in the face of a serious recession. It's too easy to do, and it results in crisis planning later. OBAMA STANDS AT A UNIQUE CROSSROADS. HE HAS WIDE SUPPORT RIGHT NOW. USE IT WISELY. PLAN STRATEGICALLY FOR THE FUTURE. Our government, like India's (the world's largest democracy) has a lot of trouble planning strategically. It takes a crisis to get us to do things.

One thing I also like about Boone Pickens' idea is that it is coming from the hard right, an oil man, and an industry that has almost never encouraged green technology. Similarly, it took Nixon to open China, and Clinton to reform welfare. Also, since Pickens is a billionaire willing to spend his money, he has the ability to reach the public by spending on advertising. As a result, given the system we have of strong checks and balances -- which drives us to crisis management only -- Pickens' plan (since it's proposed by the hard right with a big wallet to get out the word) could actually be enacted. Congress could never do it on its own.

I disagree with both you and Obama. I think Obama should impose a tax to reduce volatility in gas prices and discourage an eventual return to gas guzzling (don't squander this opportunity to think strategically). I do agree that a $4.00 tax would be terrible, though, but think that at $2.50 consumers would be able to bear it even in this market. In any event, providing mortgage relief and better unemployment benefits is a better way to go than to rely on low gasoline prices to stimulate spending. When the economy improves again, raise the tax so that gas prices rise to at least $2.75 if not $3.00.

Sincerely,

I have to disagree carbon tax will not work but what we need to do is build an infrastructure for a natural gas commercial semi trucks. Therefore giving tax incentives to the companies who produce these vehicles instead of giving them a handout. At the same time giving credits to the companies who buy these vehicles so that the price of each vehicle should amount to the same price as a old fashioned semi truck. This would mean the United States would have to create natural gas filling stations for these new line of trucks, and if these stations are built as the same standard needed for hydrogen gas the country is left with an infrastructure that could be transformed to even a cleaning burning fuel without much change. This could help The Big Three (plus other automakers) by giving them incentives for being innovative instead of our government giving out handouts while ,us, the tax payers are not getting much in return. This would not only create a green infrastructure, it would also stimulate the job market, without punishing companies who do not want to comply, but giving companies who do comply incentives. (the carbon tax would only enrage the right wing and their ideals about the free market or the 700 billion dollar bailout.)

This would reduce the need on foreign oil causing oil pricing to fall, which in your book you explain gives the citizens in the oil rich nations more political power.

Alan R. Husum

Tom,

These are some possible strategies that come to mind to encourage the green revolution-

1.Reduce the thermostat by a degree during winter and increase it by a degree during the summer

2.Establish a metric for reduction in energy consumption and publish it once a week-break it up into-yearly,monthly,weekly targets-an MBO

3.Shut off the power for an hour a week if the energy reduction targets are not met-do it on a weekend so that families will spend more time together rather than watching tv

4.Shut off the a/c/heating on the weekends for office buildings

5.Encourage people to work from home-should cut down the gas consumption and electricity in the office

6.Continue outsourcing since there is a lower per capita energy consumption if the job is done from outside of America

7.Car Industry-Help only those companies that are committed to producing higher mileage cars-hybrid etc.

8.Use Facebook/Orkut etc. to spread the message

I believe the question is: “Given the current critical issues and economic demands, etc., how can the new administration tackle the bigger goal?” What is needed is a STRATEGIC PLAN. The following is a process that gets you there. You need a team and a clear leader to own the outcome.

It starts with a VISION of where we need to be/get to. Under this vision create specific objectives which encompass the core elements of this vision. This becomes the “target” in my picture, and it’s on the right side.

Next, capture the Current Reality. Be as specific as you want, as broad as you want. Cover the concrete facts, the political realities, the failures, the successes, what’s helping toward the vision and what things are holding you back. This belongs on the left side of my picture. (Psychologically, you’ve created a powerful emotional need to get from Current Reality to the Vision.)

Next, visualize a big arrow moving from the Current Reality to the Vision/Objectives. This is to become the Strategic Plan to get you from where you are to where you want/need to be. The plan begins with what are the specific challenges you need to overcome and what are the issues needed to be dealt with. In the case of meeting the National and Global challenges, this list will be pretty scary and intimidating. At least you’ve got the list. Behind each of these you need to create realistic Action plans. Also, you’ll need to prioritize the work and determine just how you move forward. Making these choices becomes the Strategic Plan. As frustrations arise, which they definitely will, you’ll have to adjust and re-adjust, but you have your Vision to keep you on track.

That’s a thumbnail size sketch of the process. It’s best done with a team and its leader, and shared broadly. A really good, well-thought out and shared vision is an excellent tool for getting focus and alignment and OWNERSHIP on a strategic plan.

How would this impact on the National realities? Well, somethings will be done based on urgent needs. By steering the actions of these actions to be consistent with the strategic plan, it will be progress toward the Vision. Also, a key part of the Strategic Plan should be sharing the Vision broadly to get buy-in or at least an understanding of where the country is heading under the new leadership. I can easily visualize a TV special about 1 hour in length to share the Vision, review the current reality and share the elements of the Strategic Plan with the nation. This will cause a lot of national debate and discussion (“banter” was the word used in describing the discussions in the inns/taverns when the country was considering independence in the 18th century), that will create alignment (with some negative responses), focus and bring out the best in the people of this country, the real team that needs to execute this strategic plan.

A note on diversity: Not many people think strategically or long term. Most are much more comfortable with “baby steps” and just don’t see the future or their potential role in creating it. Most just don’t have the discipline to go through the process. However, they can recognize a good vision and plan when they see it, and rally behind it. The skeptics provide useful feedback. The realists (those who say it’s too hard/costly/you name it) can help identify the obstacles and how to move through them. Progress is infectious and feeds the process, brings the realists on the team and a few skeptics.

Fortunately, I believe President-elect Obama is a visionary individual (reflected in his campaign speeches). I also believe he can be an extraordinary leader, which we desperately need. The above is offered as a straightforward way to get the solutions we need to move forward as a country. I’ve facilitated this process in diverse groups (which is the best way to get a solid plan) with amazing and consistent success.

As a world, as a community, and as individuals – we must all take part in the transformation to a sustainable and rejuvenating system. The technologies are ready for implementation – are you? It will take all your commitment, effort, passion, investment, and connections.

Buildings, specifically the heating and cooling of buildings, are the #1 consumer of fossil fuels and cause of greenhouse gas emissions worldwide. Transportation is second. With our focused attention, both are solvable now.

With clean electrons, energy efficiency, and conservation – the solution is two fold.

1. Abundant, clean, reliable, and cheap electrons are available RIGHT NOW through the conversion of every towns' wastewater treatment facility. When properly managed, every wastewater treatment facility creates a sustainable energy cycle through the continuous production of nutrient-rich organic fertilizer; and a source of abundant, clean, reliable, and cheap electricity. For details, read Free Electricity! at http://www.thenewgreeneconomy.org/news-inform...

2. By implementing the C.O.R.E. Technology at www.geo-gro.com, we can use the smart house model Tom outlined. The C.O.R.E. Technology is a revolutionary building template that completely eliminates the use of electricity to heat and cool new built structures, while greatly reducing the materials needed for construction, and able to withstand winds in excess of 250 mph; providing safe sanctuaries from hurricanes, tornadoes, and earthquakes. By eliminating heating and cooling needs, we reduce the energy costs of operating a building by as much as 66%. This in turn frees up the greatest amount of energy for more productive uses.

If you’re ready, so are we. If you really want to be the catalyst for a sustainable and rejuvenating society, email us at Sarah@geo-gro.com to see how you can support.

Tom,
Congress needs to step up to the plate and do what we all know is right, even if we have to suffer the consequences. The drop in gas prices is a double-edged sword. As a college student, the drop in gas prices has helped me greatly, especially in the expenses to drive back home every once in a while. However, the recent drop has brought back some old habits that I wish it wouldn't have. I began driving my car to campus again. As I sit here in my humanities class my car is parked outside in the parking garage. I have taken the public bus all semester (it's free for students), and I loved saving the gas money, but it barely nudges my pocket now. I am aware that I am contributing to the problem, and unfortunately the only thing that will assure me going green again is if the prices go back up. I am sure most people can see this, but they're scared for their own financial security. I hope the Energy Revolution is not on a stand still because of this. We were making a lot of progress.
Thanks,
Jonathan

On Page 338 of "Hot, Flat and Crowded" Tom Friedman quotes Van Jones as proposing that the government put in place a program to "Weatherize the homes of of low income people. NOTE: This program already exists! It's called the WEATHERIZATION ASSISTANCE PROGRAM run by the department of energy. It is currently a 250 million dollar a year program run in all 50 states and even by Republican standards is judged the most effective government program ever created. The jobs are already here. All we have to due is scale up this program and create others to make Mr. Friedman's vision a realtiy.