We need a a revolutionary energy invention, now, to be discovered and built in Michigan. But until we find one we must move towards alternative energy with public commitments to allow private energy expansion in Michigan. Our State is on the right path. The new technologies are here and we have committed leadership, though unfortunately term limited.. Cleantech and smart grids are concepts we should embrace.
WOOD Radio, West Michigan's right-wing AM radio station, just posted an obnoxious news story attacking funding for green energy (as part of its self-appointed duty to carry water for the GOP).
A recent analysis from US News and World Report says no. They identify 15 companies that are prime candidates not to survive 2009.
Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.
Moody's rates them as a "very high credit risk." They haven't got much cash on hand, have lots of debt and owe substantial interest payments in the near future.
I really wonder how Chrysler manages to stay so out of touch. Here's a good example. Did you know Chrysler makes a hybrid? Neither did I until I went looking. Know anything about it? Go watch the demo. I'll wait.
The first thing they tell you about are the 18-inch chrome-clad wheels. Hello? Do they really think that chrome-clad wheels are the most important feature of a hybrid vehicle? I guess they do.
Let me clue you Chrysler - that's not what potential hybrid buyers care most about. Start talking about the technology. Talk about energy efficiency. Talk about how many miles per gallon you get in the city.
Then again, maybe not. The reviews don't leave you running for a test drive. From Edmunds.com:
Unless you need to tow a boat or a big trailer, the flashy 2009 Chrysler Aspen's moment has passed -- even with the new hybrid.
The hybrid gets a combined 20 mpg - up five from the non-hybrid. The MSRP is $45,270. That's some awfully big bucks for awfully poor mileage. I guess that's why they talk about the chrome-clad wheels. Sigh.
I'd say "wake up," but it might be too late even if they do.
Republican strategists are very good at coining slogans. The latest example is "Drill Here, Drill Now". It's snappy, easy to remember (an important consideration when you count on Rush's dittoheads to repeat it), and sounds convincing.
There's just one problem. The numbers don't add up.
Start with the fact that oil is a finite resource. Once you get it out of the ground and burn it, it's gone forever-unless you're willing to wait 500 million years or so for nature to create new supplies. Worse yet, we've already used up most of our supply, at least here in America. And we've known about this problem for years.
"Will our Lansing legislators finally find the will to act, or will they wimp out again on energy policy as the jobs exodus from Michigan continues? We'll find out this week." - Tom Walsh, Detroit Free Press 8/10
No, Tom, we won't. As predicted, the Senate Republicans are choosing to kick the can down the road for one more month by canceling today's session - the only one scheduled for August. But hey, what's another month, right? Not like Michigan needs the jobs or anything.
"We've got to have people understand that every day we wait, job providers are going somewhere else. We just lost one, as a matter of fact. A turbine company took us off their list because we don't have a renewable portfolio standard."
Senate Republicans, famous for springing their legislation at the last minute and holding dead-of-the-night votes without the chance for debate, suddenly need more time to "review" whether or not they want to bring economic prosperity and environmental responsibility to our state. Seems like a no-brainer to the rest of the educated world and the 28 states that have gone before us, but as they tell MIRS...
Some Senate Republicans contend that the complex nature of legislation warrants a thorough review.
"First of all, we need to see it in writing," said Sen. Patty BIRKHOLZ (R-Saugatuck).
Puh-leeze, girlfriend. Not buying that excuse. Not when Republicans have acted with lightning speed before when it came to blowing up the state budget. But we will buy the fact that the Senate Republicans are now using the election as an excuse for their inaction on energy. Watch Marsden give it away with this next statement.
The rumor going around Lansing late in the afternoon was that Senate Majority Leader Mike BISHOP (R-Rochester) had blown up the deal and asked that both sides return to square one.
Bishop Spokesman Matt MARSDEN pointed the finger at Democrats, who he said really wanted the bills passed before convention time.
Yeah, like last April, Matt. Or maybe June. Just who is playing politics here? Senate Republicans have stalled on this package until "convention time", and now want to use that against the Democrats and claim the bills are for political gain only. Which is, of course, complete and utter bullshit, but pretty much par for the course when it comes to Senate Republican obstruction.
The Bay City Times is the latest newspaper that calls for action. They review the tax credits passed to entice Hemlock Semiconductor to expand here, and add this on at the end...
We need another nudge toward this goal from our lawmakers in Lansing - one that would cost the state nothing.
Yet, the 7 percent renewable energy standard for Michigan by 2015 that the state Senate passed last month is laughable. It doesn't even reach the way-too-low standard that the House set in April - 10 percent.
Let House and Senate conference committee delegates exercise those puny targets into something with broad shoulders - 20 percent by 2020, or even a 25 percent renewable standard by 2025.
Bold statements are what are needed in order to move Michigan closer to the top of the new race toward sources of clean, renewable energy.
The only "bold statement" Senate Republicans are willing to make is that they will go anywhere and say anything to deny our state progress, and they are doing it in the name of partisan politics. Although the main players say they are "close to an agreement", this delay, and the excuses that have followed, are all the proof you need.
Birkholz noted there are political conventions and Labor Day weekend to contend with.
"House members are anxious to get back out and campaign," she noted. "They have election year concerns."
Republicans have "election year concerns" as well - preventing Michigan from gaining jobs and investment. They need things to be bad in order for Saul's talking points to stick. Always keep that in mind.
I like Tom Walsh. I really do. He is one of my favorites. But today's Freep column entitled, "Will lawmakers' fears cost state new energy policy?" misses the mark on just who is responsible for the delay in getting this work done. Just like last year's budget crisis, short government shutdown, and the subsequent MBT surcharge mess all of that created, the press erroneously tries to spread the blame evenly between both chambers on the energy bills - and that is just plain wrong.
Michigan's legislators appear poised to blow it again.
Poised to punt away a chance to create thousands of jobs.
Poised to again display cluelessness, rather than leadership, about the need for a bold, new approach to energy policy.
Members of the state House and Senate do have a chance this week to redeem themselves, to earn respect from a citizenry that sadly has come to expect ineptitude.
Walsh goes on to tell us that they can vote this Wednesday for energy bills that "set a target that 10% of Michigan's power come from renewable sources by 2015, boost energy efficiency efforts, and set the stage for construction of new, cleaner power plants by DTE Energy and CMS Energy". Sound familiar? That is because the House passed this back in April with strong bipartisan support.
Why would the Senate Republicans deny Michigan this job creating opportunity? Could it be that the Mackinac Center was against it? How about Dick DeVos? You know that these are the players that are pulling the strings in the Michigan Republican Party. They are calling the shots, and they didn't want this to happen. Came right out and said so. Mike Bishop got his orders from his owners and decided to drag this out as long as he possibly could. When the Senate finally got around to moving the bills in late June, once again they passed legislation in the dead of night with changes made that they knew would be unacceptable to the House and the governor in a move that was widely condemned by, well, nearly every newspaper in Michigan, and further delayed this process. Time for vacation!
And you know what? It worked. Now, the excuse is "the election".
A Lansing lobbyist told me Friday that the Legislature probably will delay acting on the energy bills until the lame-duck period after the November elections, or until next year.
The reason? Fear of casting a vote that might irk some citizens just before the election.
And if they had done it back in April, that wouldn't be an issue now, would it? No. We could have joined the other 28 states that are already enjoying job growth and investment from implementing a renewable portfolio standard.
Granholm, who has been aggressively recruiting advanced energy and other clean-technology firms to locate in Michigan, told me Friday that she has been embarrassed -- during talks with global energy firms and journalists from national publications -- to admit that Michigan still has no target for renewable energy.
"I keep telling my staff, we have two years and four months left in office," Granholm said. "When we look back at this extended period of economic crisis, will we be able to say we used it to really diversify the economy and change the mind-set of our citizens?"
Even T. Boone Pickens, the legendary Texas oilman and Republican Party activist, is now an outspoken advocate for wind, solar, natural gas and other energy alternatives.
Will our Lansing legislators finally find the will to act, or will they wimp out again on energy policy as the jobs exodus from Michigan continues?
We'll find out this week.
And once again, the blame is spread across the board, even though House Democrats got the job done months ago. It was Senate Republicans who held up the budget process last year, it is the Senate Republicans holding up the energy policy this year. Want proof? Just follow all these links, or hit my diaries and start reading back. It's all there.
Here's a new ad the Obama campaign unveiled today that will air during the Olympics in all 50 states on national cable and television beginning Saturday. The title is simple - "Hands" - but the message is powerful - America's future is in our hands. Boy, is it ever.
Vowing the voices of the vast majority of the American people would not be silenced by the Democrat Congress' Stalinist tactics, Republicans took to the dimly-lit, microphone and C-SPAN-silenced House floor. There, they demanded a vote to lower gas prices by unleashing America's oil and energy resources" from the clutches of the left-wing special interests controlling Speaker Pelosi and her Democrat Congress.
It's Swift Boat ads all over again. Our fine friend Thaddeus and his cohorts think they can spin, lie and bully their way into another election year. All of a sudden August 2008 is feeling a lot like August 2004.
What's Thaddeus huffing and puffing about? Let's take a look.
"the Democrat Congress' Stalinist tactics"
Stalinist? Hardly. Last Friday the House voted to adjourn and take a five week recess, same as they do every year at this time. Same as they did when Tom DeLay, Dennis Hastert and Newt Gingrich were Speaker and the Republicans were in the majority and setting the agenda. Under House rules--which is an extended version of Robert's Rules of Order, motions to adjourn are not debateable. The body votes immediately on the motion. If the motion passes--all you need is 50%+1 of those present--the session ends and everyone goes home. It's the way every legislative body works.
So for all the bluster, nothing unusual happened. McCotter only wants you to think something happened. The majority sets the agenda. It always has. Tom DeLay constantly reminded us the fact, by refusing to entertain legislation to end the war, rescind the Patriot Act, create a sustainable energy policy, or investigate the long list of Bush administration abuses. Funny how Republicans want one set of rules for them and another for everyone else when it suits them.
"they demanded a vote to lower gas prices by unleashing America's oil and energy resources from the clutches of the Left-wing special interests controlling Speaker Pelosi and her Democrat Congress"
If this weren't sad, it would be funny. After Dick Cheney held closed meetings with the heads of energy companies to fix prices (anyone remember Ken Lay and Enron?), it's hard to believe the Republicans can say this with a straight face. What Thaddeus is really saying is "Republican and big oil interests are different from the Majority's, and we don't like it." If you listened to scientists instead of oil company lobbyists once in a while Thad, you might figure out that drilling in the Arctic and the Gulf of Mexico isn't going to fix our energy problems, nor will it lower gasoline prices.
This is our generation of Americans' 'Boston Tea Party!'
Wow! I had no idea that John Adams and the Sons of Liberty were shills for whale oil companies.
House Republicans will be rearranging schedules, flying thousands of miles, and refusing to take a paid vacation. Instead, the GOP will take to the House floor every day to ensure the voice of Americans' is heard; there is a vote to make our country energy secure and independent; and keep America the greatest nation on Earth!
Flying thousands of miles. Now that's a way to conserve energy.
Thad, your constituents are curious--why--during all those years of a Republican majority in both chambers--wasn't a comprehensive energy policy developed?
Oh, I forgot. Drilling in the Arctic is your energy policy.
A word to the wise about your excessive use of exclamation points, Congressman McCotter. They make you look silly and they make creative writing teachers cringe.
Should have raised it to 25%, but given the Senate Republicans deliberate refusal to listen to every expert in this business as well as overwhelming public demand, we will have to take what we can get. From the House Dems-
The House plan approved today requires that the state gradually increase the amount of electricity that comes from renewable sources such as wind and biomass, reaching 10 percent by 2015. The Senate plan, in contrast, sets this Renewable Portfolio Standard at just 7 percent - a level that analysts agree is too low to cause renewable energy job providers to seriously consider making major investments in Michigan.
The Republican Senate bill's 7 percent goal falls far short of what's needed. The 7 percent figure includes efficiency measures and a new power-producing procedure known as coal gasification. That makes this plan the near beer of alternative energy solutions, weaker than laws enacted in most every other state.
Michigan is badly behind the renewable curve. Every one of our midwest neighbors, with the exception of Indiana, has enacted a renewable portfolio standard. In all, 26 states have some form of an RPS -- states as politically, demographically and economically diverse as Texas and California, Oregon and Minnesota.
The Oakland Press features quotes from the experts when they called for Michigan to join "the RPS bandwagon".
James Clift, policy director with the Michigan Environmental Council, praised adoption of House Bill 5525, which would mandate that utilities get 10 percent of their energy from renewable sources by 2015, compared to the current 4.6 percent. However, Clift was critical of Senate Bill 213, which claims to raise the standard to 7 percent but, Clift says, actually "produces nothing."
HB 5525 would put Michigan "in the middle of the pack" in terms of the 26 states that have renewable portfolio standards, while SB 213 "wouldn't even put Michigan in the game," said Hugh McDiarmid, spokesman for the environmental council.
Martin Kushler, utilities program director with the American Council for an Energy Efficient Economy, said the renewable portfolio standards issue has been "very strongly bipartisan in other states."
Nancy Cassis stuck her fingers in her ears and went, "la la la, I can't hear you!" and brings up foreclosures, of all things, proving that the Senate has to stoop to irrelevant points to defend their undefendable position.
"Consumers always bear the costs" when mandates are placed on businesses, Cassis said. "We're mindful of passing on such costs. It wouldn't help Michigan," she said of the House version. "The economy is in such a precarious situation. We don't need more foreclosures."
Mass Megawatts Wind Power, Inc. announced last week that the company has recently opened a manufacturing facility in Pennsylvania. The new facility will be located near numerous planned projects in Pennsylvania and New York where several hundred megawatts (MW) of wind power projects have already been developed in the recent years.
Mass Megawatts has chosen to locate a production facility in Pennsylvania because of the state's dedication and leadership in the field of renewable energy, including wind power. Pennsylvania has enough wind power potential to provide electricity for nearly 5 million homes according to Pennsylvania Governor Edward G. Rendell. Pennsylvania's green power purchase is 28% of the state government's annual electricity consumption.
That is just one example. Want another? Texas is going to invest $5 billion towards bringing wind power in the western part of the state onto the grid. Wonder how many jobs that will create. More proof? California is increasing solar power by installing panels on 150 commercial rooftops, and Southern California Edison is going to build the largest photovoltaic plant in California. Republican Governor Schwarzenegger wants to hit 33% by 2020. The civilized world moves on.
Looks like our Republicans are going to continue to stick their heads in the coal mine and throw lame excuses to the wind (no pun intended but it works) and stall on this as much as they can, costing Michigan jobs and investment by the day. Gongwer tells us that the energy bills are going to conference, and since it appears the Senate will be taking August off, votes may not come until September. By that time they probably will come up with their next lame excuse because they won't want anything "good" to happen before the election.
Wednesday afternoon the University of Michigan Solar Car Team won the 2008 North American Solar Car Challenge. This was the team's fifth win in nine entries since the race began in 1990. The starting line was in Plano, Texas on July 13 and race ended in Calgary, Alberta --- 2320 miles and ten days later.
The team's final time was 51 hours, 41 minutes and 53 seconds, almost ten hours ahead of the second place team, Principia College from St. Louis, MO. The car, named Continium, raced at an average speed of 44.9 mpr. FH Bochum from Germany, the University of Waterloo from Ontario, and the University of Minnesota finished third, fourth and fifth respectively.
Teams from colleges and universities throughout North America design, build, test, and race solar-powered vehicles in a long distance road rally. NASC is a test of teamwork, engineering skill, and endurance that stretches across thousands of miles of public roads. Only 25 teams qualified for the challenge and only 15 completed it this year.
Congratulations to the Five-Time National Champion Michigan Wolverines.
Today the team is in Texas participating in the 2008 North American Solar Challenge. Throughout the winter, the team optimized and redesigned their vehicle, Continuum, providing many enhancements over the car they raced in Australia.
The challenge officially began on July 13, but the team has been on-site for weeks prepping and going through the qualifying events. The team is completely "on their own" when it comes to maintaining and repairing the vehicle during the race. When there's a breakdown or problem of some sort they need to fix and improvise with what they have - no sending out to a machine shop to make a part.
The flexibility and teamwork that these students learn not only in building the car, but in repairing and dealing with the glitches that come up just before and during the race is incredible. Think about this for a minute. A team of students is making a car run on the energy collected from a few square inches of solar panels.
They, their knowledge and experience are a valuable commodity in any alternative energy market, not just solar. At this point of the competition, the team is in first place after starting in the pole position. You can read more about their day-to-day activities on their blog. There are some great pictures of the car too!
DTE Energy is getting ready to spend billions of dollars on alternative energy investments in Michigan, boosting the state's efforts to become a leader in this rapidly growing market.
The parent company of the Detroit Edison and MichCon utilities plans to make about $3 billion in renewable energy investments in Michigan over the next six to seven years, said Knut Simonsen, senior vice president of DTE Energy Resources Inc.
These investments depend on the state passing a new law mandating that 10% of its electricity come from renewable energy sources. The House of Representatives and the Senate have passed their own bills toward this goal, but major differences between the two must be reconciled.
Rumor has it the energy package goes to conference this week to iron out the differences between the House and Senate. As you know, the House has already passed a 10% renewable standard, and in the dead of the night, the Senate obliterated any meaning in these bills in a move the Freep called "abysmal" and the "worst possible combination of utility bills imaginable".
Although today's Freep doesn't tell us what DTE will do if the Senate decides to obstruct progress on the RPS, they do tell us what DTE has in mind as far as investment in alternative energy. Will the Senate Republicans turn down billions in investment for our state?
The bulk of DTE's multibillion-dollar investments will be in wind power in Michigan's Thumb and on the western side of the state, Simonsen said. The utility already has acquired easements on about 40,000 acres of land in Huron County for a potential wind farm.
DTE also recently decided to begin making $15 million to $20 million a year in alternative energy investments through its venture capital fund called DTE Energy Ventures, Simonsen said.
Will the Senate Republicans turn down the potential to bring new manufacturing jobs to Michigan?
The utility has already invested in a California company that's developing low-cost solar energy panels. It did not want to disclose the company's name. But Simonsen said that if the company's efforts prove successful, production of the panels could be done in Michigan in the next few years.
And if the Senate Republicans do turn down thousands of new jobs and billions in investment, what could their excuse possibly be?
DTE wants to invest in Michigan companies...
DTE Energy Ventures is one of a few corporate venture funds in the state that's focused on alternative energy.
Simonsen took over the fund about nine months ago and is rebuilding its small investment team in Ann Arbor. The fund is looking to invest in companies that already have raised their first round of venture capital.
"To the extent we can find good Michigan opportunities, all else being equal we prefer Michigan companies," Simonsen said.
Granholm said that while VC fund managers in her first few meetings were surprised and impressed by what they heard about Michigan's efforts, they also made it clear that they will look favorably on states with aggressive public policy initiatives favoring the growth of renewable energy sources.
... DTE Energy Ventures will be no different. If they can't find favorable conditions in Michigan, they will go elsewhere.
When Mike Bishop said his focus this year would be "jobs, jobs, jobs", little did we realize he was talking about sending jobs to other states.
Great story from business writer Rick Haglund making the rounds in the Michigan media. Today's GR Press print edition, across the top of the page headline, "Auto industry set to re-energize", and right below that in smaller print, "Alternative fuels could be vehicle for economic recovery in Michigan".
Yes. Finally. It took $4 a gallon gasoline, plummeting auto sales, and rumors of a GM bankruptcy to get everyone's attention, but finally we see the media starting to pick up on the fact that not only is this a solution for our energy crisis (let's just start calling it that, shall we?) - it's an amazing economic opportunity that would bring thousands of jobs to the state of Michigan.
Not only do we have the manufacturing base and workers to provide the physical components for gathering energy from renewable sources (wind turbines, solar cell/film production), and the natural resources for new fuels (wood byproducts for cellulosic ethanol), all of which will be wanted to power homes and businesses, we have an auto industry that is turning to alternatives with increasing desperation as consumers move away from the gas guzzlers and demand energy efficiency from their cars.
Home. Business. Auto. Everything that demands energy, we can do it here. The only question left is, will we take advantage of this opportunity?
The rest of the country is pulling away from us.
"It will be extremely difficult because we're competing with 49 other states," said Brett Smith, of the Center for Automotive Research in Ann Arbor. "Differentiating ourselves will be very important."
Michigan's difference could be its battered auto industry, which is spending hundreds of millions of dollars to develop vehicles that run on biofuels, electricity and hydrogen.
The sense of urgency has picked up considerably with gas prices topping $4 a gallon, new federal regulations that will boost fuel-economy standards for cars and trucks to 35 miles per gallon by 2020, and worries about emissions contributing to climate change.
Deriving energy from wind, sun and biofuels such as ethanol -- and producing the vehicles it runs on -- could become an industry rivaling the Internet-driven boom of the 1990s, some say.
Oil hits $200 a barrel and you can bet Jimmy Carter's sweater it will be more than "some" saying it. It may have taken 31 years and the advancement of technology to get there, but it sure looks like we are getting there - and now we can't get there fast enough.
"This may be the technology that will have an impact similar to the computer industry over the next 10 years," said Don Grimes, a University of Michigan economist.
Haglund goes on to list some of the companies already doing this work in Michigan, companies that we have talked about before such as ECD (Uni-Solar), Dow, Delphi, and the just recently announced Mascoma, as well as the universities like MSU, Wayne State, and the U of M that "received $79.5 million in alternative-energy grants last year, more than other any state except California." We are attracting new growth slowly but surely, now we need to start making the bold moves that will attract the attention of investors and put us on the path to be a leader in the nation in advancing and manufacturing this technology.
We have the tools. We have the desire. The only thing stopping us now is the perception that Michigan is just not "green enough"...
And the Michigan Legislature is going to watch it sail on by.
Granted, both of those statements are a bit strong, but both of them could possibly turn out to be true when all is said and done. Rumors from MIRS had the Senate working on our energy bills yesterday, but with the big rush to get, well, everything done in the next 48 hours, it seems hard to believe that they will be able to pull this off in time, but one can always hope.
So, here is one more push, one more argument of why it's imperative that we act sooner rather than later. Last week, the big money gathered in New York City at the Renewable Energy Finance Forum (REFF)to discuss strategies for investment into renewable energy, everyone recognizing the opportunity in front of them, but looking for direction on where to go next. There are risks for investors, and apparently "Congress' failure to extend the Investment (ITC) and Production Tax Credits (PTC)" has caused capital to shift elsewhere for the short term, and other hesitancy on the part of the major names.
Even in the light of market uncertainty, there is this-
All risks considered, the world's leading investors are recognizing that a transition to a clean energy economy is the single biggest economic opportunity of the 21st century - and possibly the biggest economic opportunity ever. The U.S. represents one of the largest renewable energy markets, so merchant bankers, private equity firms and venture capitalists are all educating themselves about how to navigate this immature yet promising marketplace and make the right decisions to drive the industry forward. REFF is an event designed to give financiers the tools to invest in this increasingly complicated space.
Investors are concerned that this is a repeat of the 70s oil shock, and that demand will drop if oil prices drop and we all get comfy again and continue to ignore the reality of the dangers of relying on fossil fuel use. Not the case this time around, say organizers-
The political and economic landscape is now perfect for strong, sustainable industry growth: The scientific debate over climate change is over; the price of oil will probably not fall dramatically, if it falls at all; developing countries like China and India are emerging as major energy consumers, increasing the demand for all types of energy; and despite the short-term political stalemate in Washington, there is bipartisan recognition that renewable energy is an economic driver and a necessary part of national security strategy.
"There are so many factors converging at once. It really is a perfect storm," said David Sandalow, Senior Fellow at the Brookings Institution. "I just don't see this as another repeat of what happened in the 70's. This is the real thing."
Just yesterday, a new report was released that highlights the concern; fossil fuel use/energy demand is expected to jump 50% in the next two decades due to increased consumption from emerging economies such as China and India. They are predicting $186 for a barrel of oil by 2030; that seems a bit low in light of recent price spikes, but too hard to tell this far out. China is expected to rely on nukes and coal for its electrical needs - and imagine what that will do to global warming if emission caps are not put in place. For the sake of the planet, we better pray that fossil fuel use is altered substantially in the coming years.
That is just one reason that investors are recognizing that renewables will be the way to go, and the industry is currently laying the foundation to bring more alternatives to market.
As the renewable energy industry works to put meaningful amounts of capacity online, the market remains very volatile for investors, especially in the U.S. However, the industry is finally approaching the form that it will eventually take on a larger scale, making the market a bit more clear for investors, said Michael Liebreich, CEO of New Energy Finance.
"We went through a number of years where people were waking up to renewable energy and energy efficiency, but they didn't know quite what that meant in terms of how they would integrate into the energy infrastructure," Liebreich said. "We're now starting to get more clarity on how that will work."
Liebreich and others point to the growing size of installations, increased consolidation of the industry and refined promotion policies as the factors creating this clarity. As a result of this continued "shake out," the ability of firms to see how and where to invest their capital is continually improving.
What does all this mean? Jobs. Lots and lots of jobs as this emerging technology takes hold across the country and across the globe. Where the investment capital goes, the jobs will follow - and major investors across the country are lining up to be in the "right place at the right time".
The only question left is - will they come to Michigan? That's up to the people in Lansing. We can start down this road right now and position ourselves to be in the right place at the right time when the money people come calling, or we can ignore the writing on the wall and watch this golden opportunity slip through our grasp.
Our legiscritters are anxious to get out of town and start campaigning, chomping at the bit to inform the voting public of the laundry list of all those wonderful things that they won't be able to get done next year, because when it comes right down to it, it's "too hard" or they are "too inexperienced to understand how this works" and gosh darn it, term limits are holding them up from making progress right now. But we are getting ahead of ourselves; that's next year's unfinished business and we have this year's unfinished business to contend with first.
This is the last week before summer break, and then we get to pay them to go out and campaign. Indications are that they are scrambling to finish their budget targets, but the budget itself might not be completed until September. The Blue Cross package (which I have not paid one whit of attention to) looks stuck until after the election. They did manage to get the Great Lakes Compact/water withdrawal legislation done, and they do deserve some applause for that. Clap, clap. Sincerely.
But as far as creating jobs in Michigan? You know, that thing that Mike Bishop promised us would be the focus of this year's legislative session? Ask yourself, what one industry is enjoying explosive manufacturing growth. What one industry has captured the nation's attention in the wake of rising energy costs and global warming. What one industry is a perfect fit for Michigan's natural resources and manufacturing workers and facilities. Figure it out?
Apparently, that one industry is the one that the Legislature is going to leave behind in the rush to get out of Dodge. From MIRS-
Until last weeks' shenanigans in the Senate, the renewable energy portion of the package might have been ready to move soon. Now, however, the whole package seems to be on hold. The market reform portion of the package was already stuck in the mud and now the entire package looks like fodder for lame duck.
Over the past three years, the U.S. wind industry has enjoyed a relatively stable policy environment. The federal production tax credit (PTC), the primary economic driver for wind, has been in place without interruption since August 2005 -- after being extended for two years in the energy policy act of 2005, and extended for one additional year (through 2008) at the end of 2006. In addition, more than 10 additional state renewable energy standard (RES) programs have been put into place, bringing the total number of states with an RES to 26 plus the District of Columbia. During that time, total wind capacity grew by 150% and the annual market size more than doubled.
U.S. manufacturers previously unfamiliar with renewables are finding a demand for their existing output (e.g., bearings) in the wind industry while other companies are tweaking their products and retooling their facilities to serve the wind industry and take advantage of this growing market.
It is no coincidence that over the same period, the U.S. found its stride - in this case, that stride being a rapid clip - in expanding domestic manufacturing capacity for wind power components. Dozens of new manufacturing facilities serving the wind industry have been brought online across the U.S. the last few years.
This next paragraph just screams "we can do this stuff in Michigan", and they go on to cite our own K & M Machining and Dowding Manufacturing as examples of companies that are already getting in the game.
Growth in U.S.-based manufacturing has not been limited to just the turbine assembly companies and manufacturers of major wind components. Wind power's supply chain is reaching straight down through the underpinnings of U.S. manufacturing, spurring expansion in domestic capacity for producers of basic products and materials that are needed in multiple industries. Perennial suppliers to the automotive and other major heavy-equipment industries - such as steel providers, foundries, and fabricators - are now serving wind energy, providing raw materials, metal castings, and machining for wind turbines.
Not to mention gear boxes and other various components that go into wind energy. Suppliers currently can't keep up with demand. And besides the danger of losing out to other states in this race, we might lose out to global competition as well.
Any sign of wavering policy support for wind in the U.S. could quickly shift wind component manufacturing out of the country and into the global market, severely damaging the golden opportunity to expand this nation's manufacturing production capacity and create jobs.
Seeing wind's impact on their economies, many U.S. states are doing their utmost to keep that from happening. States such as Iowa, Pennsylvania, Michigan, and Ohio have been quick to seize the wind opportunity, creating task forces and outreach plans to find ways to capture wind component manufacturing interest from companies both abroad and within their state borders. Since 2005 Iowa alone has successfully enticed wind energy companies to locate at least a half-dozen new major manufacturing facilities in the state, luring thousands of jobs to the Hawkeye State. As for Ohio, Gear Technology magazine notes that "from castings for gearboxes, to tension bolts, to pitch control system, Ohio companies are already manufacturing key components for this rapidly growing industry." To capitalize on those resources, the state's energy office recently established a wind industry supply chain outreach effort, the need for which was further enhanced with the recent passage of a state RES.
Ohio, Iowa and Pennsylvania have all passed their renewable energy standards. As we have mentioned time and time again, investment is going to the states with a RPS in place - and most states have stronger requirements than ours will be, which, as is stands as passed by the House, is 10% by 2015. Senate Republicans are even balking at that. Ohio laughs at us.
Unfortunately, our standards not strong enough according to the American Wind Energy Association - and they won't even move to get it done before they leave for break.
Or will they? My hope is that that statement is proven wrong before the end of this week. A long time ago, the governor suggested splitting the RPS from the rest of the package, and perhaps these people will come to their senses and at least pass this little portion and get Michigan on the map and attract attention from some major manufacturers. Or, we can fall further behind, waiting until the end of the year or later, and someday people will wonder why we didn't take advantage of this golden opportunity. That would be tragic - and for a Legislature that has been met with constant criticism for their lack of action on important issues, this will go down as their greatest failure when someday the totals are added up and the money and jobs are found elsewhere.
For the love of God, please. If there is one thing this Legislature can do to create jobs and investment in this state, it is passing a renewable portfolio standard.
I don't know how much overwhelming evidence is necessary. I don't want to run around yelling "obstructionists!" all the time. I'm tired of it. I really am. But we are going on five months later now, other states are moving forward with either setting their initial renewable standards or beefing up existing ones, taking that investment money that would be coming into our economy, creating jobs that would go to Michigan workers.
And what is going on in our Senate? Little. Excuses, stall tactics, indications that they aren't going to be moving anytime soon, but maybe they are, nobody knows. Today could be the day, but they also said that last week... from MIRS, June 3rd, Wayne Kuipers indicates he sees no need for further action.
However, it's not clear that the Senate panel will move either bill at all. Sen. Wayne KUIPERS (R-Holland) said the Senate had passed its own legislation and "didn't see a need for any additional RPS bills."
The Senate passed SB 1000, which set RPS standards for state government only, and which Republicans said was a much more business-friendly bill than a government mandate.
The people who don't believe in government mandates slapped a mandate on the government and called it done. Makes your head hurt to think about the irony there. The interesting thing is the support amongst other Republicans is seemingly being ignored by certain leaders at the top of the Republican food chain; the energy bills passed with strong bipartisan support in the House, Sen. Cameron Brown moves to break the tie-bar on the RPS from the rest of the energy package, and Sen.Patty Birkholz moved to strengthen the steps we need to take to get to 10% by 2015, which I believe would put us more in line with what the American Wind Energy Association was asking for when they complained that the House renewable standards were too vague.
Just wanted to note a couple of things. Renewafuel, part of the Cleveland-Cliffs operation, is building a $10 million dollar biofuel facility up near Marquette. 25 jobs created at the facility, plus an untold number of indirect jobs for area loggers and farmers to supply the plant.
Renewafuel makes environmentally friendly biomass fuel cubes using wood by-products, grains, grasses, seed hulls, paper waste and so on, as a replacement for burning coal. Check the environmental benefits -
"If we use a ton of our fuel to displace a ton of coal, it will result in a 100 percent reduction in greenhouse gases emitted because of the nature of the products we are using," said Renewafuel President Jim Mennell. "It will be a 90 percent reduction in sulfur dioxide and over a 50 percent reduction in mercury emissions."
The new plant will produce 150,000 tons of these cubes every year; 90,000 to be used by Cleveland-Cliffs operations, and the Marquette Board of Light & Power is testing the cubes to see if they can be used to replace coal at their Shiras plant. So far, indications are that they will be successful. Cool stuff.
United Solar Ovonic L.L.C., makers of solar laminate products, began hiring employees for its expanding Greenville plant, the company said Monday. It expects to hire 400 employees.
...
A subsidiary of Energy Conversion Devices Inc., United Solar, accounts for 90 percent of ECD's projected 2008 revenue of $220 million to $245 million.
ECD, based in Rochester Hills, which has shown quarterly losses since its founding in 1960, showed signs of a profitable summer by reporting a net income of $7 million for the third quarter that ended March 31.
And finally one last bit of news - The Senate moved to break the tie-bar on the RPS bills from the energy package yesterday, but they did not report it out of committee. What that all means to the future of the legislation, I don't know at this point - all I know is that they are costing us jobs and investment every day that this package sits without action. This is THE growing industry in America, and legislative bickering is leaving Michigan behind. We would be seeing all kinds of stories like the ones above if we had a renewable portfolio standard. As it stands, we will just have to take what we can get until these guys wake up and do the right thing.
Ohio's situation seems to be as sticky as ours when it comes to regulating or re-regulating or deregulating their utilities (they have some weird hybrid going on there too), and since I can barely wrap my head around ours, I'll be damned if I try it with them. ;-)
BUT - they have passed their RPS, and the bills go to Gov. Strickland next week.
The 12.5 percent requirement translates into an investment of at least $12 billion in wind energy installations, according to the American Wind Energy Association, an industry trade group. Most of the wind farms would be in Ohio, a key to Mr. Strickland's desire for homegrown power sources, the association said.
A study last year by the advocacy group Environment Ohio found that if the state's utilities' use of wind power jumped to 20 percent by 2020, it would create the equivalent of 3,100 jobs and would put about $8.2 billion into Ohio's economy. Property owners also would profit by leasing their land for wind farms, the group said.
Renewable energy delivery systems could be made in abandoned factories, closed because of the slide in Ohio's manufacturing economy, Environment Ohio Director Erin Bowser said.
Not only will they be getting into wind, they are looking at solar as well.
But solar power also is likely to take off, Ms. Bowser said. It is another fledgling industry in the U.S. but is flowering in such countries as Germany, she said.
"We may have more wind turbines going up, but the whole northwestern part of the state is in position to manufacture solar panels," she said.
As I pointed out before, Ohio Republicans are the main movers behind this. They can see the value of adding jobs and investment to their state.
Michigan Senate Republicans, care to respond? Or are you going to continue to obstruct us from creating jobs?
Another state moves forward, more are likely to follow, and Michigan will fall behind, thanks to our Republicans. Get this done, people.
Last year, while I was busy yelling at the legiscritters over the budget battle business tax replacement, the state announced a joint project with John Deere Wind Energy, Wolverine Power, and the Harvest Wind Farm, to build the state's first commercial wind farm in Huron County. Alternative energy wasn't really on my radar, turns out the governor already had this in her sights and the beginning of the energy proposals that you see today were already underway. I guess we could file this under, "Things We Should Have Paid Attention To Instead of Mike".
Fast forward to January of this year. 32 wind turbines were up and running and producing power to Wolverine, who in turn was selling it to people like DTE and others. Yesterday, the governor toured the farm for the first time, taking along the media and other dignitaries like my old buddy Ken Sikkema. Watch the video- they are rather hypnotic in motion.
Someday I'll get over there and take some pictures; the people in Huron County would like that - some would like to see it become a tourist attraction. The income would go well with the royalties the farmers now receive from leasing their land.
Harvest Wind Farm's 32 wind turbines near this small Thumb town have proven popular so far, adding $22 million in taxable value to Oliver Township's tax base and bringing thousands of dollars in annual lease payments and royalties to family farms. Locals hope the wind farm, which could power a community of 14,000 homes, might become a tourist attraction.
The emphasis on this trip was, of course, jobs, taking precedence over benefits to the environment, but we will take both. These turbines were shipped all the way from Denmark (which gets 20% of their power from wind) - no reason why we can't make them here. The AP explains-
Michigan is the 14th-windiest state in the country. It also has a manufacturing base with more than 2,000 companies capable of making parts for wind turbines and other renewable-energy components, according to the Granholm administration.
Michigan ranks second overall in combined wind generation and manufacturing potential, Granholm said. It can cost $300,000 to transport a wind turbine, one reason she wants to require that 10 percent of Michigan's electricity come from wind and other renewable sources by the end of 2015.
"They want to sell where they manufacture," Granholm said of wind-component companies.
And manufacture we can do - some machining shops are converting as quick as they can to produce the parts for these things. But only some at this point, for other companies to start thinking about coming to Michigan, the need for the RPS was stressed once again. Here's Ken, finally free of having to tow the hard-right Republican line-
A lot of corporations have come to Michigan, have said that if Michigan has a renewable portfolio standard, you'll likely see manufacturing follow.
But alas, some on the right will continue to disavow the need for an RPS, and I guess we need to keep throwing the numbers back in their face. Yesterday, the MSU Land Policy Institute took Mike Cox to task for his bad attitude-
Cox said the proposal would cause electricity prices to rise, and provide few new jobs.
However, a Land Policy Institute study shows that with a Michigan RPS, wind power alone in Michigan would produce 1,100 construction jobs per year for the next two decades, 218 permanent jobs related to the management and maintenance of wind installations by 2010, and 3,010 permanent, continuing jobs related to the management and maintenance of wind installations by 2029.
The study also says the RPS would cause $1.25 billion per year in construction-related new investments and spending in Michigan over the next two decades, $464 million in continuous annual spending in maintenance and management by 2010 and $4.4 billion by 2029, $21 million per year in new construction wages for the next two decades, $7.6 million in permanent annual wages by 2010 and $96 million by 2029 and $4.8 million in lease payments to landowners per year by 2010 and $47 million per year by 2029.
Money, jobs and saving the environment too. Proving the nay-sayers like Cox and Bishop wrong once again is just an added bonus.
It would be a shame if the Senate obstructed this proposal and we lost this opportunity - let's hope they get it done, and get it done soon. To leave it until after the fall election, or even worse, a future legislature, would be a travesty.
