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11.05.2010

Renewable Energy Tax Credits: Keeping America at Work

  • The program is a more efficient use of taxpayer money because 100% of the incentive goes to the company making the investment and creating the jobs. Taxpayers get more jobs and clean energy per dollar spent.
  • the 1603 tax credit program restarted stalled projects and saved all 40,000 jobs at risk 
  • fossil fuels have received permanent taxpayer money since 1920s, costing taxpayers well over $500 billion. 
  • fossil energy still receives 5 times the subsidies as renewables  
  • Every job saved was an American job. 100% of projects that receive investment tax credits through 1603 are built in the U.S. as required by the Recovery Act. The program also supports America's growing manufacturing and supply chain industries. U.S. wind turbine domestic manufacturing has grown 12-fold, with an increase in domestic content from 25% only a few years ago to over 50% now, and nearly 400 American manufacturing facilities making wind components. Contrary to recent campaign ads, data from the International Trade Commission (ITC) shows that less than 5% of the value of turbine parts used in the U.S. is imported from China.


Renewable Energy Tax Credits: Keeping America at Work

By Rob Gramlich, AWEA   |   October 21, 2010   |  

 

Recent stories and campaign ads have challenged renewable energy tax credits. Representing 85,000 people working in the American wind industry, we can say unequivocally that this tax credit has been one of the most effective public policies in existence for saving American jobs.

At a time when the recession threatened at least 40,000 American wind construction, manufacturing and other jobs, the 1603 tax credit program restarted stalled projects and saved all 40,000 jobs at risk. This year, a study by Lawrence Berkley National Laboratory (LBNL) found that the 1603 tax credit supported shovel-ready projects and over 50,000 American jobs. The 1603 program actually led to a record-breaking year of 10,000 megawatts (MW) of new wind in 2009, compared to the 4,000 MW feared prior to the Recovery Act.

Tax credits for renewable energy begin to level the playing field with oil, gas, coal, and nuclear energy.  As a matter of fact fossil fuels have received permanent taxpayer money since 1920s, costing taxpayers well over $500 billion.  Even in recent years, after maturing for a century, fossil energy still receives 5 times the subsidies as renewables, according to the Government Accountability Office. Even more, Americans pay for fossil fuel in the form of an additional $60 billion in healthcare costs according to the Bush Administration report on hidden costs of energy. We have a choice between a balanced energy plan that includes wind and renewable America energy or plan that continues our increasing dependence on fossil fuels for our electricity which is now over 60 percent.

In the recession, project development and financing was difficult to obtain and costly. Many wind projects in mid-development could not complete financing. As a result, wind investment stalled with some projects stopping mid-construction; laying off construction workers and leaving wind towers and blades on the ground.

Every job saved was an American job. 100% of projects that receive investment tax credits through 1603 are built in the U.S. as required by the Recovery Act. The program also supports America's growing manufacturing and supply chain industries. U.S. wind turbine domestic manufacturing has grown 12-fold, with an increase in domestic content from 25% only a few years ago to over 50% now, and nearly 400 American manufacturing facilities making wind components. Contrary to recent campaign ads, data from the International Trade Commission (ITC) shows that less than 5% of the value of turbine parts used in the U.S. is imported from China.

The 1603 program continues and modifies the Production Tax Credit, which was first passed in 1992. In most respects the program operates exactly like all other tax credits in the tax code:  all eligible projects receive the credit and it applies to all projects completed in a given year. However Congress tweaked the program in one respect to make the tax credit useable during a recession. While the oil and gas industries are allowed to use "Master-Limited Partnerships" (MLPs) enabling companies to use tax credits, MLPs are not available to renewable energy industries. Instead, Congress provided for a reimbursement of the eligible tax credit which made the program successful even in the deep recession. The program is a more efficient use of taxpayer money because 100% of the incentive goes to the company making the investment and creating the jobs. Taxpayers get more jobs and clean energy per dollar spent. Many people have confused this program with discretionary government grants and recent news stories have suggested, for example, that the only projects that should receive the incentive are those begun after the Recovery Act was passed. In this case a key part of the program's success was to complete many projects that had begun but were completely stalled, keeping Americans at work.

The 1603 tax credit program has been extremely effective at keeping Americans at work. Unfortunately the program is set to expire at the end of 2010. Unlike the oil, gas, coal, and nuclear industries that have permanent incentives, renewable energy industries will be stalled again unless Congress acts soon to extend the program into 2011 and 2012.

Timeline of the renewable energy tax credit: 

  1. 1992:  Congress passes first renewable energy tax credit.
  2. 1999, 2001, 2003:  Congress allows tax credit to expire.
  3. October 2008:  President Bush Extends Renewable Energy Production Tax Credit for the year 2009.
  4. Late 2008:  Credit Crisis Hits the Economy and the Wind Industry:
    • Renewable energy project financing was difficult to obtain and costly, many wind projects in mid-development could not complete their financing due inaccessibility.
    • Wind investment slowed; projects were halted mid-construction; construction workers were laid off; wind tower and blades lying on the ground at construction sites.
  5. Late 2008:  Wind Industry fears 50% Drop in Investment and Loss of 40,000 Jobs:
    • With lack of financing and new projects held in the balance, the wind industry feared that up to a 50% drop would occur in new wind projects in 2009, dropping the industry to 4,000 MW of new projects, compared to 2008 at 8,500 MW.
    • This drop put at least 40,000 of existing wind industry jobs at risk.   
  6. 2009:  Recovery Act Puts Tax Credits Back to Work with the 1603 Program: 
    • The American Reinvestment & Recovery Act included a simple but critical reform to the Production Tax Credit converting the tax credit into a usable form.   
    • 1603 Program meant companies could take the tax credit in the form of a reimbursement, with the law stating the program would "reimburse such person for a portion of the expense of such property" as long as the property is "placed in service during 2009 or 2010".[1] 
  7. 2009:  Confidence is improved in the marketplace and financing is re-activated:
    • The 1603 program led to a record-breaking year of 10,000 MW of new wind in 2009, compared to the 4,000 MW feared prior to the Recovery Act.
    • Lawrence Berkley National Laboratory (LBNL) found that ARRA's 1603 program supported more shovel-ready projects and over 50,000 American jobs.[2] 
  8. 2009-10:  100% of projects that receive investment tax credits through Section 1603 of the Recovery Act (ARRA) are built in the U.S.:
    • Over 150 small and large wind projects have moved forward by taking the tax credit through 1603 program, creating local construction, engineering, transportation, operations and other jobs to build their wind projects.
    • These wind projects have led to millions in local tax payments to towns & cities, as well as lease payments to local landowners hosting the projects.
  9. The U.S. Wind Industry is able to Continue to Grow Domestic Manufacturing: The U.S. wind industry currently employs 85,000 people. Beginning with major growth in 2005, the U.S. now has nearly 400 wind manufacturing facilities.
    • According to data from the International Trade Commission (ITC) China currently represents less than 5% of the imported value of turbine components for the U.S. market.
    • Today, only 3 out of 33,000 (0.009%) wind turbines installed across the U.S. were sourced from China while there are American wind turbine manufacturing facilities coming online including brand new facilities in Jonesboro, Arkansas and Hutchinson, Kansas. Beginning with major growth in 2005, the U.S. now has nearly 400 wind manufacturing facilities.
    • "The growth in wind turbine installations and a period of stability in government policy led to significant investment in U.S. manufacturing by both U.S. and foreign companies from 2005 to 2008, along with a rapid increase in domestic production." [3] - U.S. ITC
    • "The overall import fraction is found to have declined significantly from more than 80% in 2006 to roughly 40% in 2009." [4] – U.S. DOE
    • U.S. International Trade Commission states: "Overall, imports peaked as a share of the market in 2006 and U.S. production in 2008 and 2009 was significantly higher than in 2005, indicating a growing role for domestic producers. If planned U.S. manufacturing plants come online in the next few years, U.S. production capacity will continue to expand." [5]
    • The United Steelworkers, BlueGreen Alliance and AWEA found that "the wind industry has increased its domestic content since 2005, the first year in which a strong market for turbines existed, to approximately 50 percent in 2009. From 2005 to 2009 annual installations quadrupled, representing even greater growth in domestic manufacturing for wind." [6]
[1] http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.txt.pdf

[6] http://assets.usw.org/releases/misc/bga-report-062510.pdf



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Will Clean Energy Manufacturing Create US Jobs?

Will Clean Energy Manufacturing Create US Jobs?

By Jennifer Runyon, Managing Editor   |   November 1, 2010   |   
In this series of articles on the state of clean energy jobs in the U.S., we delve into the clean energy job market outlook for 2011. Here the focus is on manufacturing.
New Hampshire, USA – In the U.S. manufacturing jobs have slipped to level not seen since before 1945 (see chart, below). From 2000 to 2009, manufacturing in the U.S. shed upwards of 7 million jobs. It's no wonder that politicians all over the country are hoping that the promise of the new clean energy economy will result in a restoration of a strong manufacturing base in the U.S.



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Vapor Retarders and Vapor Barriers

Answers to persistent questions about vapor diffusion

Vapor Retarders and Vapor Barriers


Posted on Mar 12 by Martin Holladay, GBA Advisor

Although building science has evolved rapidly over the last 40 years, one theme has remained constant: builders are still confused about vapor barriers.

Any energy expert who fields questions from builders will tell you that, year after year, the same questions keep coming up: Does this wall need a vapor barrier? Will foam sheathing trap moisture in my wall? How do I convince my local building inspector that my walls don't need interior poly?

To begin a discussion of vapor retarders and vapor barriers, I'll answer just a few of these persistent questions. Since I plan to return to this topic in a future blog, I invite readers to submit further questions.

Q. Why would I want a vapor retarder in my wall or ceiling?

A. Vapor retarders help slow the diffusion of water vapor through a building assembly. During the winter, a vapor retarder on the interior of a wall will slow down the transfer of water vapor from the humid interior of the home into the cool stud bays. During the summer, a vapor retarder on the exterior of a wall will slow down the transfer of water vapor from damp siding towards the cool stud bays.

However, a vapor retarder is a double-edged sword: while under some circumstances it can have the beneficial effect of helping to keep a wall or ceiling dry, under other circumstances it can have the undesirable effect of preventing a damp wall or ceiling from drying out.

Q. How often does water vapor diffusion through walls and ceilings cause problems?

A. Very rarely. In many cases, in fact, an interior vapor retarder does more harm than good. The main mechanisms by which moisture enters a wall are from the exterior (usually due to flashing defects that admit wind-driven rain) and via air leaks that carry "piggy-backing" moisture that condenses in a wall cavity. Vapor diffusion is a relatively insignificant cause of moisture problems in walls. (For more information on why air barriers matter more than vapor retarders, see "Air Barriers vs. Vapor Barriers.")

Q. Under what circumstances can vapor diffusion cause problems?

A. Although vapor diffusion problems are rare, they can occur. Dangers of vapor diffusion problems are higher:

  • In very humid rooms (for example, greenhouses or rooms with an indoor pool);
  • In homes with humidifiers; and
  • In homes located in extremely cold climates.

Even in a home with one of the characteristics listed above, the mechanism for moisture transport into walls and ceilings is much more likely to be air leakage than vapor diffusion.

Q. What's the difference between a vapor barrier and a vapor retarder?

A. A vapor barrier stops more vapor transmission than a vapor retarder. A vapor barrier is usually defined as a layer with a permeance rating of 0.1 perm or less, while a vapor retarder is usually defined as a layer with permeance greater than 0.1 perm but less than or equal to 1 perm.

Q. What does the code say about vapor retarders?

A. Codes vary; older versions of model building codes often included more sweeping requirements for vapor retarders than more recent versions.

The 2006 International Residential Code (IRC) and the 2006 International Energy Conservation Code (IECC) both define a vapor retarder as a material having a permeance of 1 perm or less. This definition includes such materials as polyethylene sheeting, aluminum foil, kraft paper facing, and vapor-retarding paint.

In section R318.1, the 2006 IRC requires: "In all framed walls, floors, and roof/ceilings comprising elements of the building thermal envelope, a vapor retarder shall be installed on the warm-in-winter side of the insulation." It should be emphasized that this code requirement makes no mention of polyethylene; vapor-retarding paint fulfills this code requirement.

The 2006 IRC includes exceptions to the vapor-retarder requirement. It allows a vapor retarder to be omitted:

  • In Climate Zones 1 through 4 (an area including most of the West coast and the South);
  • In walls, floors and ceilings made of materials (like concrete) that cannot be damaged by moisture or freezing;
  • "Where the framed cavity or space is ventilated to allow moisture to escape" — an apparent (although poorly worded) reference to vented attics and walls with rainscreen siding.

In section 402.5, the 2006 IECC requires: "Above-grade frame walls, floors and ceilings not ventilated to allow moisture to escape shall be provided with an approved vapor retarder. The vapor retarder shall be installed on the warm-in-winter side of the thermal insulation."

In the 2006 IECC, the exceptions to the vapor retarder requirement are very similar to the exceptions listed in the 2006 IRC, except for an additional exception: "Where other approved means to avoid condensation are provided." This last exception gives broad latitude to the building official — and places a heavy burden on any builder intent on convincing a local official that a certain building assembly complies with this exception.

The 2007 Supplement to the IECC and the 2007 Supplement to the International Residential Code (IRC) introduced a new vapor-retarder definition. (Of course, many jurisdictions in the U.S. are still using local codes based on the 2006 — or even earlier versions — of the IRC and IECC.) Vapor retarders are now separated into three classes:

  • Class I: Less than or equal to 0.1 perm [e.g., polyethylene];
  • Class II: Greater than 0.1 perm but less than or equal to 1.0 perm [e.g., kraft facing];
  • Class III: Greater than 1.0 perm but less than or equal to 10 perm [e.g., latex paint].

Since 2007, the IECC has required (in section 402.5) that walls in climate zones 5 (e.g., Nevada, Ohio, Massachusetts), 6 (e.g., Vermont, Montana), 7 (e.g., northern Minnesota), 8 (e.g., northern Alaska), and marine zone 4 (Western Washington and Oregon) have a Class I or Class II vapor retarder — in other words, kraft facing or polyethylene.

The exceptions have also been rewritten. Three of the exceptions are listed in section 402.5 of the IECC, which notes that vapor retarders are not required on a basement wall, on the below-grade portion of any wall, or on a wall constructed of materials that cannot be damaged by moisture or freezing.

Further exceptions are allowed in section 402.5.1, which states that in climate zones where a Class I or Class II vapor retarder would normally be required, a less stringent vapor retarder — a Class III retarder like latex paint — can be used under the conditions listed in Table 402.5.1 (see accompanying figure). Only certain types of wall assemblies are worthy of this exception; they must have either an adequate layer of exterior foam sheathing or "vented cladding."

Q. Clearly, I can get in trouble with my building inspector if I omit a vapor retarder in certain climates. Are there any situations where I could get into trouble for including a vapor retarder?

A. Yes. Although it's perfectly legal to install interior polyethylene or vinyl wallpaper in any climate, these products can lead to moisture and mold problems in most of the U.S. Unless you're building in Canada, Alaska, or somewhere close to the Canadian border, you don't want interior polyethylene or vinyl wallpaper — especially in an air-conditioned house.

Interior polyethylene and vinyl wallpaper prevent a wall from drying to the interior during the summer, when inward solar vapor drive (a phenomenon associated with so-called "reservoir claddings" — for example, brick veneer and stucco — that absorb and hold moisture) can cause condensation on the exterior side of the wallpaper or poly. Unless the moisture introduced into the wall by inward solar vapor drive is able to dry to the interior, wall damage can result.

Q. When it comes to vapor retarders, what do the experts recommend?

A. Here's a sampling of statements by leading building scientists on the subject of vapor retarders:

  • Anton TenWolde: "The calculations show that even with very low air pressures across the assembly, and even with a very good air barrier, sufficient moisture can bypass a poly vapor retarder, degrading its performance. In practice it doesn't matter what the permeance of the vapor retarder is, because the air leakage will go around it for moisture transfer. I came to the conclusion that the idea that we need a vapor barrier to keep our walls dry doesn't hold a lot of water, so to speak."
  • John Straube: "The whole reason we're talking about vapor barriers is not because vapor diffusion control is so important, but because people believe it is so important. The question comes up, have we seen diffusion-related building failures? And the answer is, very few — maybe in rooms with a swimming pool. Assuming that the vapor came from the inside, you would have to have a very high load before you would see a problem. I think that solar-driven vapor is much more important. The moisture is coming from the other side of the assembly."
  • Joseph Lstiburek: "In North Carolina, for whatever reason, they build their walls with fiberglass insulation and with poly on the inside. Depending on the cladding — brick and stucco being the worst — the walls rot like crazy."
  • André Desjarlais: "We can't assume that the building envelope is perfect. We have to assume some level of failure: some rain will get into the wall, and there will be imperfections in the air barrier."
  • Achilles Karagiozis. "It's all related—the vapor control strategy, airtightness, and whether or not there is a ventilation cavity behind the exterior cladding. If you have a ventilation cavity behind the cladding, it doesn't matter what kind of vapor retarder strategy you use."
  • Bill Rose: "In the South, no vapor barrier. In the North, as long as you have insulated sheathing that meets the dew-point test, also no vapor barrier."
  • Anton TenWolde: "When you put enough foam sheathing on the wall you get away from the cliff rapidly, and there's no reason to worry about vapor barriers any more."

Last week's blog: "The Energy-Efficiency Pyramid."


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musingsheader imageImage Credits:

  1. Martin Holladay / IECC


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2010 ACEEE Energy Efficiency Scorecard Cites

2010 ACEEE Energy Efficiency Scorecard Cites State Leaders

October 20, 2010

States across the country made strides in energy efficiency, according to the 2010 State Energy Efficiency Scorecard released on October 13 by the nonprofit American Council for an Energy-Efficient Economy (ACEEE). Among the highlights in the fourth edition of the scorecard are: a near doubling of state energy efficiency budgets from 2007 spending levels from $2.5 billion to $4.3 billion; the adoption or active consideration by more than half the states of energy efficiency resource standards that establish long-term, fixed efficiency savings targets; and a one-year doubling of the number of states that have either adopted or have made significant progress toward the adoption of the latest energy-saving building codes for homes and commercial properties.

California retained its first place ranking for the fourth year in a row, outperforming all other states in its level of investment in energy efficiency across all sectors of its economy. Massachusetts again placed second. The four most-improved states were Utah (up 11 spots from 2009 to number 12), Arizona (up 11 spots to 18), New Mexico (up 8 spots to 22), and Alaska (up 8 spots to 37). California, Massachusetts, and Washington have implemented transportation-specific greenhouse gas reduction targets while several other states have adopted policies to encourage the creation of compact and transit-oriented communities.

The fourth edition of ACEEE's State Energy Efficiency Scorecard examines six energy efficiency policy areas: utility and public benefits programs and policies; transportation policies; building energy codes; combined heat and power; state government initiatives; and appliance efficiency standards. See the ACEEE press release, the complete report online, and the Energy Scorecard Web site.



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First Solar Power Tower on U.S. Public Lands

Interior Department Approves First Solar Power Tower on U.S. Public Lands

October 13, 2010

Photo of a large tower surrounded by square solar mirrors in the desert.

The Ivanpah solar project will rely on solar power tower technology, which employs a field of flat mirrors to concentrate the sunlight on a receiver, mounted at the top of a central tower .
Credit: BrightSource Energy

The U.S. Department of the Interior (DOI) approved on October 7 the Ivanpah Solar Electric Generating System, the first large-scale solar energy project on U.S. public lands to use "power tower" technology. Proposed by BrightSource Energy, the project could produce up to 370 megawatts of clean energy, enough to power 111,000 to 277,500 American homes. Located in San Bernardino County, California, the project is expected to generate approximately 1,100 new jobs. The DOI decision authorizes Interior's Bureau of Land Management (BLM) to offer BrightSource a right-of-way grant to use the public lands for 30 years if all rents and other conditions are met. The site is in Southern California's Mojave Desert, near the Nevada border.

The Ivanpah project uses innovative technology that, when completed, will include three solar thermal power plants. The technology employs mirror fields to focus solar energy on power tower receivers near the center of each array. Steam from solar boilers in the towers drive a turbine that generates electricity for the transmission grid. Construction of all three project phases is scheduled to be completed by the end of 2013. To lessen its environmental impact, BLM reduced the size of the project by more than 15%, from 4,073 acres to 3,471 acres; it also reduced the number of heliostats (solar mirrors) from 214,000 to 173,500.

Through the American Recovery and Reinvestment Act, renewable energy developers whose projects begin construction by the end of 2010 can apply for payments of up to 30 percent of the eligible costs of the project. Also under the Recovery Act, DOE awarded BrightSource $1.37 billion in conditional loan guarantees for this project. See the DOI press release and an fact sheet on IvanpahPDF.



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11.04.2010

Snake Oil Awards and Koch Industry


Dear Scotts Contracting,

Thanks for casting your vote for Koch Industries in the 2010 Snake Oil Awards. You've joined thousands of supporters in shining a spotlight on the fossil fuel industry's dirty tricks.

But it isn't enough just to crown a winner -- we need to spread the word about the vile tactics and outright deceptions of big polluters and climate deniers.

You can make that happen. Tell your friends, family and colleagues about the Snake Oil Awards: ask them to vote for Koch Industries before November 5 at midnight.

http://acp.repoweramerica.org/snakeoil-voteKoch

Thanks for standing up to the snake oil salesmen,

Dave Boundy
Campaign Manager
Repower America



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Earth Dance: Eco Friendly Invitation in St Louis

EarthDance:

Come join us at their party Saturday night!


PESTO FESTO!


Pesto Festo is EarthDance's premier fundraising celebration of the year and includes live music, local food, live art, a silent auction,
The EarthDance Mission Awards, and much more.

Located at the historic Savoy in Ferguson, Missouri, on Nov 6th, it is a confluence of community and an opportunity to give thanks for the year's harvest. Much of the food that will be served at Pesto Festo is even grown by EarthDance farm apprentices just 1 mile from the event!

St. Louis Earth Day's Recycling on the Go program is assisting EarthDance in making the event near zero waste. Festo-goers will dance to the tunes of the Maple Jam Band, bid on "live" art created right before their eyes, and meet this year's incredible
EarthDance Mission Award honorees!

For more details, visit www.pestofesto.org



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