Renewable Revolution

Alvin Hulse   
 June 13, 2014 



This energy plan eliminates the need for nuclear. We cannot do nuclear, alternative energy and energy efficiency. We can, however, do alternative energy and energy efficiency at the same time.

7 Point, 7 Year Energy Plan To Solve Climate Change   


1) Eliminate the investor owned, guaranteed rate of return utility model and replace it with a modified version of the Independent Service Operator (ISO) used in Ontario Canada, California and New York. The principal modification would allow all producers of clean renewable energy to sell their excess electrons into the grid and get paid a check at the end of each month. The chief function of the ISO is established to move electrons around the grid to where they are needed and to provide grid leveling services.

Allowing all producers to get paid every month for their excess power generation will create a nation of energy entrepreneurs eager to make a profit off of their investments. Not only will this surge in energy entrepreneurs invest in alternative energy, but they will simultaneously invest in energy efficiency to maximize the number of electrons they can flow into the grid.

All regional or state ISO's will mandate time of day pricing in order to level daily and seasonal peak demand periods. California already has time of day pricing, which encourages people to reduce consumption during higher rate periods or shift demand to off peak hours. Leveling peak demand reduces unnecessary energy waste at thermal power plants where utilities have to produce more electricity than they can sell in order to build up for peak demands.

The concept of the investor owned, guaranteed rate of return utility model is antiquated and fosters massive energy waste. Thermal power plants operate at a 34 percent efficiency. Grid transmission losses account for another 8 percent energy loss which leaves 26 percent of the remaining power to energize a whole host of inefficient lights, appliances, electric motors, HVAC systems and vampire energy sucking devices. This is an unsustainable energy equation that contributes mightily to climate change. One has to wonder how a utility can make money wasting 74 percent of the energy they produce before it reaches the end user. The answer is the investor owned utility model.

Anytime a utility does not earn its guaranteed rate of return, they simply apply for a rate increase with their industry friendly Public Utility Commissions. In addition, the practice of discounting utility rates to commercial users is nearly ubiquitous. Discounting utility rates has the consequence of providing little or no incentive for commercial end users to invest in energy efficiency.

Under my plan, businesses will create their own profit centers through investment in alternative energy and while simultaneously investing in energy efficiency in order to maximize their excess flow of electrons into the grid. Superefficient Combined Heat Power Plants (CHP), small wind, rooftop solar, biomass to electricity and fuels cell development will explode onto the scene once the barrier of the investor owned utility model is eliminated.

2) Mandate the use of energy efficient LED lighting, energy efficient electrical motors, energy star appliances and heat pump or geothermal HVAC systems in existing residential, commercial, retail, industrial and government properties. Property owners will be entitled to a 50 percent investment tax credit on all energy efficient items approved for retrofits. Rental property owners will be entitled a 100 percent investment tax credit for energy efficiency retrofits. In addition, all properties will qualify for Property Assessed Clean Energy (PACE) to help fund the upfront costs. Pace programs will have a fixed interest rate at 3 percent. The federal government will impose a $10 megawatt hour carbon tax on utilities/ratepayers to fund retrofits on federal buildings for 5 - 7 years until all government building have been retrofitted. 25 percent of these funds will be allocated to families who rent their homes to help pay for energy efficient lighting.

This will generate $47 Billion per year. Local and state governments will increase property taxes by $200 per year per property for 5-7 years to pay for their building energy efficiency retrofits. This will generate $55 - $60 billion per year for energy efficiency upgrades across America. This represent a $700 billion in U.S. investments in government owned infrastructure over 7 years. I estimate that the private sector under this plan will spend $1.5 trillion on energy efficiency retrofits. This is the combined cost of our two wars. The primary difference is that energy efficiency pays, wars cost.

3) All new buildings, including residential properties, will be constructed to a minimum of Platinum LEED Certification. All items associated with the Platinum LEED Certification will receive a two year bonus depreciation schedule in the commercial sector and a 30 percent investment tax credit for residential properties. In order to offset this cost to the government, the investment tax credit will be eliminated for alternative energy now that business and residential producers can get paid a check at the end of each month. The government will also benefit from the $10 per megawatt hour charge applied to alternative energy.

4) The government will pay $10 Billion to the first five automotive companies in the U.S. who either produce a 5 passenger that gets 125 MPG or can travel 400 miles on an electric charge. They will have five years to develop it. The car must also cost less than $40,000. The auto companies who achieve these goals, will receive income tax free status for the 10 years following the introduction of their vehicle(s) and a retroactive tax free status for the five years of development. Foreign manufactures will not qualify. Their respective governments can establish their own goals.

5) Develop the Interstate High Speed Rail System that will parallel the major East/West and North/South Interstate highways. This is where people travel in their cars and this is where the trains ought to travel too. This system development will be funded by a $5 per barrel oil/carbon tax. There shall also be a $5 tax on all air fares. All people with adjusted gross incomes below $100,000 will receive a $2,500 tax credit for the increase in gas prices.

6) All alternative energy producers will pay a $5 per month surcharge to their utility or the ISO to maintain and improve the grid to smart status.


7) Re-establish U.S. forest cover to the beginning of the 20th century level. Tax incentives shall be provided to landowners to replant their land. In addition, a $5 per barrel oil tax shall be imposed on all imports including the oil traveling to the U.S. via the Keystone XL Pipeline. 20 percent of all greenhouse gases are the result of deforestation.

None of these changes are onerous in comparison to the full effects climate change will cause civilization and the planet to experience in the years to come. In fact, these changes will lead to full employment, better health, lower health insurance premiums, a sustainable energy economy, lower energy costs, lower taxes as government energy consumption is dramatically reduced and energy independence.

Once the energy efficiency programs have been fully implemented, the cost of alternative energy investment will decline dramatically. We will only be replacing what the new demand for electricity will be as a result of the sharp reduction in energy consumption caused by energy efficiency improvements. Most of these costs are offset to consumers and businesses through the energy savings they will achieve by retrofitting their properties and by the investment tax credits. These are real energy savings that will flow to them as long as they own their properties.

http://www.renewableenergyworld.com/rea/news/article/2014/06/old-reactors-v-new-renewables-the-first-nuclear-war-of-the-21st-century#comment-132470