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Energy Policy and California
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Gitmo and guns are getting all the press. But energy mavens are talking about another recent far-reaching - but little noted - U.S. Supreme Court decision on the California energy crisis: It took them seven years but they finally figured it out.
The revisionist part of the story is well known: Big bad oil traders like Enron gamed the market and drove up energy costs fifteen-fold. ...
But the Supreme Court turned this conventional wisdom on its ear and said there may have been misconduct by energy sellers, but no one ever showed that caused the crisis.
The U.S. Supreme Court is about to make its first decision on the worst energy crisis in American history: The California energy crisis of 2000-01.
The legal repercussions of this decision could change the way energy is bought and sold in America for generations. For good or bad.
As a former member of the California Legislature when this disaster of a law was passed unanimously (yes, I voted for it), I saw first-hand how bad regulators turned this consensus law into such an epic disaster. ...As a state legislator in California when this law was passed, I've seen first-hand how much damage this law - and even more importantly, its implementation - has done, and could continue to do if the Supreme Court does not reverse the Ninth Circuit.
Also filed under [
USA]
Green power for Marin is a concept that has merit along with a loyal and growing fan base. But before the concept becomes a reality, it needs broad public support. ...One important caveat: While the local authority would sign contracts with green power suppliers, there is no way to promise that green juice actually flows to homes in Marin. Once electricity is added to the grid, it all gets mixed together - like water in a reservoir fed by many streams.
Most of Marin's green power would be generated outside Marin. What the local power authority is actually doing is increasing the demand for green energy, which will, in turn, lead to increases in the supply of green power. At least that's the theory. ...We urge county officials and green power supporters to put an advisory initiative on the November ballot.
‘Blow, winds, and crack your cheeks! Rage! blow!" California may soon rant alongside King Lear as it presses to meet Assembly Bill 32's mandate to reduce greenhouse gas emissions statewide. To achieve that mandate, the California Energy Commission established an energy action plan calling for the state to generate 20 percent of its electricity with renewable resources by 2010, and 33 percent by 2020.
Also filed under [
Zoning/Planning]
Although politically popular, technologies such as wind and solar carry heavy liabilities in addition to being two to five times more expensive than average nuclear, coal or gas:
-- These technologies are intermittent and volatile - every megawatt will require another megawatt of baseload resources to backfill, support and regulate it.
-- They are small-scale and land-intensive - replacing one plant's output (Diablo Canyon) with solar would require more than 25 times the entire U.S. solar output and would require at least 40 square miles of solar panels.
-- They require significant new transmission lines across environmentally sensitive and scenic parts of the state.
Also filed under [
General]
Evidence is everywhere, though, that the population of California is growing and will continue to grow into the foreseeable future. If we do not create more energy, the per capita amount available will decline. ...Proposed alternate sources of energy - wind, solar or bio-sourced - have their virtues and their shortcomings. To imagine that they would somehow supplant current sources of energy or might be sufficient to supply future demand, is the product of a fervent puerile imagination. (The technical term for this kind of thinking is "scientific sciolism,") ... To date, the execution of the alternate energy resource program has distorted market realities, causing consumer prices to go up directly and indirectly.
Also filed under [
Impact on Economy]
The utilities of the US, if not those in many other parts of the world, have pressing needs not just to supply power to energy-hungry consumers. But more than that they must meet both public and political pressures for using renewable energy sources. Apparently heedless of the impact to the environment of the Middle Kingdom and abroad, China commissions a new coal-fired plant every 5 days. Yet in the US there has not been a new coal-fired power plant permitted in about a year. So over time in North America, the older systems are passing away. The question is, what will take their place? To the extent that the public envisions renewable energy systems, the image it holds is of tall poles with windmill systems on top with blades turning. Or there is an expectation of solar systems mounted on rooftops, facing the sun. But these are intermittent sources of energy production. Some of the time - most of the time, really - the wind does not blow. And at least in the nighttime, the sun does not shine. So for each Megawatt of power that moves through the grid, down to meet the load, the requirement is for three megawatts of installed capacity of wind and solar. Build three, get one. In the big picture, this is not a good use of resources.
Also filed under [
Technology|
USA]
I think that somewhere along the line, we the payees need to get a refund from someone for a failed experiment called wind power before our bills are quadrupled again.
Also filed under [
General]
The temptation for Silicon Valley voters would be to ignore the intricacies of the proposition and simply decide a ``yes'' vote would send a message to oil companies and to the world that California intends to lead the way in developing alternative energy sources.
That would be a mistake. We strongly support the concept of Silicon Valley entrepreneurs helping California research and develop technological breakthroughs that will eliminate our foolhardy reliance on Middle East oil. But two fundamental flaws in Proposition 87 force us to recommend a ``no'' vote.
Also filed under [
General|
Tax Breaks & Subsidies]
WHO wouldn't like to hit Big Oil where it hurts - in the wallet? Proposition87, however, could end up costing the state and taxpayers for years to come.
While promising to bring in close to a half-billion dollars annually from taxes on oil drilling in California, none of those dollars will go in the treasury.
Not one penny will be used to pay down the state's debt, ensure education funding or provide more health insurance to working families.
Likely, California's property taxes and corporate income taxes could be reduced if oil producers decide to pump less of the black gold from California fields to avoid the extraction tax.
Also, Californians aren't likely to see any immediate benefits from the measure for many years. That's because proceeds from the tax would fuel a $4 billion program for alternative energy research and provide start-up capital for technology companies.
Also filed under [
General|
Tax Breaks & Subsidies]
Best 'fix' is a veto - Emissions bill solves nothing, adds headaches
August 30, 2006 in The San Diego Union Tribune
August 30, 2006 in The San Diego Union Tribune
At this writing, Gov. Arnold Schwarzenegger, Assembly Speaker Fabian Núñez and other lawmakers are haggling over the final details of AB 32, a sweeping measure meant to establish California as the world leader in reducing the greenhouse gases blamed for global warming. Schwarzenegger wants not just hard caps on emissions but a market-based system in which incentives are created for businesses to reduce emissions through trading of pollution credits. Núñez is lukewarm on such a “cap and trade” system.
Here's our recommendation to the governor: Quit negotiating and simply veto whatever measure comes your way.
The state's electricity transmission and distribution system is antiquated and dilapidated. A recent Department of Energy study cited Southern California as one of two U.S. regions (New York is the other) facing critical shortages of power lines. Grid under-capacity in the Bay Area is severe. A member of the Federal Energy Regulatory Commission called the transmission bottleneck between Northern and Southern California "the worst electric supply situation in the entire country."
Also filed under [
General]
Our view: Waste storage a real problem, but global warming threat from fossil-fuel waste may be greater