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Energy Solutions So Good Even Climate Skeptics Can’t Say No

Jon Coifman
April 06, 2011  |  14 Comments

For all the exciting innovation in clean tech today, debate about energy and climate policies crucial to the market remain stuck in eat-your-vegetables mode. What’s interesting is how some people keep saying no, even as they grab a second helping of spinach.

There’s Rupert Murdoch, of course, whose News Corporation recently went carbon neutral even as the FOX News talking heads rail against climate solutions. But this year’s championship for doing one thing about energy while saying (or paying people to say) another goes to billionaire conservative political financier David Koch.

It turns out the cutting-edge energy-saving technologies used in a new $211 million research lab named in his honor by the Massachusetts Institute of Technology were partly funded through a state program to cut global warming emissions that also happens to be under fierce political attack by one of Koch’s biggest political beneficiaries, the group Americans for Prosperity.

Thanks to smart technologies, the David H. Koch Institute, dedicated earlier this month, will use almost a third less energy than comparable facilities. Everything in the building is designed to maximize efficiency, from lighting and climate controls to the laboratory systems – even the floorplan.

Money for all those extras came through MIT’s $14 million campus-wide partnership with their utility, NSTAR. In just 36 months, they plan to cut the university’s energy use 15 percent – enough to power 4,500 Massachusetts homes for a year. Total lifetime payback is expected to exceed $50 million.

Innovative initiatives like this exist because Massachusetts law requires utilities to pay for efficiency upgrades whenever the energy savings cost less than building the equivalent amount of new generating capacity.

And as it happens, almost a fifth of that money last year came from the Regional Greenhouse Gas Initiative (RGGI, or “Reggie”), a program created by 10 Northeast states in 2005 that limits the amount of carbon dioxide utilities can put in the air and collects a small fee – set by quarterly auction – for every ton of they do emit.

It’s a similar story in other the RGGI states, too. The problem is, almost nobody knows it.

That’s because those benefits flow through a tangled network of rebate and incentive programs administered by utilities, state governments and non-profits. As a result, thousands of businesses, families and local communities reap RGGI dividends without knowing it -- robbing an effective program of the natural constituency it deserves, and making it easier for groups like Americans for Prosperity to attack.

Thanks to AFP’s aggressive yearlong campaign, the New Hampshire House of Representatives voted to quit RGGI. Senate agreement is expected. The new Republican Governor of Maine wants to follow, and New Jersey Gov. Chris Christie recently started hinting he wants to do likewise.

That would be a giant leap in the wrong direction, not just -- or even mainly -- for the environment, but also those state economies in general, and the clean tech sector in particular.

RGGI costs the average household about 75 cents a month. In return, it pays for upgrades from home weatherization to energy efficient industrial boilers, commercial lighting projects, and rooftop photovoltaic installations on schools and factories (which is how New Jersey became the number two state for solar, by the way).

It provides access to scarce capital and helps reduce operating costs, creating new opportunities for businesses of all sizes, from architects, engineers and programmers to the people in tool belts who bend metal and wire up buildings. That’s business that can’t be outsourced to China.

These investments also save money by avoiding expensive new power plants, and by lowering peaks in demand that drive up electricity prices across the board.

Of $789 million raised by RGGI through last December, more than half went to efficiency projects. Eleven percent went for renewables, and 14 percent to offset bills for low-income families. Less than five percent went for administrative overhead. Those numbers would be even better if New York and New Jersey hadn’t used some proceeds for deficit reduction.

The point of all this is not that David Koch is a hypocrite (in fact there’s no reason to believe he would have known about the funding connection). Rather, it is that if RGGI is good enough for him, it is plenty good for the rest of us.

So, lawmakers, please, pass us another helping of those greens. And keep ‘em coming. 

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

14 Comments

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Dave Johnson
Dave Johnson
April 10, 2011
You wouldn't get an argument out of Friedman himself after 2008...I am speaking specifically to the politics of renewable energy, which should be unnecessary due to the inevitability of the whole thing....Work on the personal politics of the concept rather than the ones folks don't understand...$2.25 petro and $100 electric bills...Made in America...
William Fitch
William Fitch
April 10, 2011
Hi:

Ben Bernanke sat before the Senate Banking Committee and said point blank, ~"that left unchecked, the model of free market capitalism does not work. The problem is not in the theoretical construct itself but in the way the model interacts in the real world."
He is the cerebral darling of free market capitalism!! Take a hint!!

.....Bill
Dave Johnson
Dave Johnson
April 10, 2011
Free markets will lead the way in the acceptance of renewables...James E. Rogers at Duke Energy is the first example...Most corporations in America know it too, as do the Koch's and Rupert Murdoch. Their problem is they are selling one thing and living something else...$2.25 gas is the way to get people's attention.
William Fitch
William Fitch
April 10, 2011
Hi:

#12, I am in tears... your presentation was so touching...
I feel compelled to get in my car right now and go make a donation to them in person. Maybe they even wear a papal ring I could kiss. LMAO....
#7 Of course they are not dummies, it is the people who believe, support and follow them who are....
I think these quotes comes close to hitting the nail on the head:

'H. L. Mencken, defined a demagogue as 'one who will preach doctrines he knows to be untrue to men he knows to be idiots.'

As George Bernard Shaw said:

'But though there is no difference in this respect between the best demagogue and the worst, both of them having to present their cases equally in terms of melodrama, there is all the difference in the world between the statesman who is humbugging the people into allowing him to do the will of God, in whatever disguise it may come to him, and one who is humbugging them into furthering his personal ambition and the commercial interests of the plutocrats who own the newspapers and support him on reciprocal terms.'

Max Weber:

'Political leadership in the form of the free 'demagogue' who grew from the soil of the city state is of greater concern to us; like the city state, the demagogue is peculiar to the Occident and especially to Mediterranean culture. Furthermore, political leadership in the form of the parliamentary 'party leader' has grown on the soil of the constitutional state, which is also indigenous only to the Occident.'

Though this definition emphasizes the use of lying and falsehoods, skilled demagogues often need to use only special emphasis by which an uncritical listener will be led to draw the desired conclusion themselves. Moreover, a demagogue may well believe his or her own arguments (for example, there are good reasons to assume that Adolf Hitler—certainly one of the most successful demagogues in history—sincerely believed his own anti-Jewish diatribes).'

.....Bill
Iggy Dalrymple
Iggy Dalrymple
April 10, 2011
The David H. Koch Institute for Integrative Cancer Research was funded with a $100,000,000 gift from David H. Koch in 2007.

He is a major patron of the arts; a funder of conservative and libertarian political causes including some organizations that fund some organizations within the American Tea Party movement. Among other charities, he has contributed to Lincoln Center, Sloan Kettering, a fertility clinic at New York-Presbyterian Hospital and the American Museum of Natural History's David H. Koch Dinosaur Wing. The New York State Theater at Lincoln Center, home of the New York City Opera and New York City Ballet was renamed the David H. Koch Theater in 2008 following a gift of 100 million dollars for the renovation of the theater. Condé Nast Portfolio described him as "one of the most generous but low-key philanthropists in America." http://en.wikipedia.org/wiki/David_H._Koch
Robert Freehling
Robert Freehling
April 10, 2011
The Kochs are the real parasites who work tirelessly to destroy the hosts that they live off of--the American political system and the environment of the planet.
Robert Freehling
Robert Freehling
April 10, 2011
The funny thing is that it is people like IggyDalrymple that are the real parasites off the government --driving on the roads, posting on the internet, relying on public safety, living off the fat of an educated society--all created by society through the institution of government and paid for by taxes. The Iggy's of the world keep eating the fat, but have no consciousness of all that they daily depend on, while calling anyone else who benefits from government a "parasite".
BUCK SHAW
BUCK SHAW
April 9, 2011
Greenies are just evangelistic, much like Mac, or Foodies. Or garage sale people. We all carry something a little to far. Don't we? I know I do it all the time.
Dave Johnson
Dave Johnson
April 8, 2011
There's a lot said about Kochs' politics, but nobody can seriously call them dummies....The same can't be said for Fox News unfortunately...
Paul Schechter
Paul Schechter
April 8, 2011
Great comment Natasha!!

Also, great article Jon.

I really don't see how people like Iggy can see how programs like RGGI are parasitic. A whopping 5% of the program's revenues goes to funding overhead and almost all of the rest goes back into energy efficiency and renewable energy initiatives. This is not parasitic! These are investments into our future, which pay huge dividends--$50 million in Mr. Koch's case. That's a lot of money! Furthermore if gasoline hits $5 or $6/gallon--quite likely, these investments will greatly reduce the economic shock that places like Texas will have to completely bear. The financial and risk-reducing benefits to programs like RGGI are HUGE!
BUCK SHAW
BUCK SHAW
April 8, 2011
Whoa, I'm not sure you should be writing a article like this. Did you take your Meds this morning. We all have deep feelings on the subject but, really. Your name calling hardly does the subject any good.
I was a little confused about wether you want RGGI dissolved or to continue?
Natasha Long
Natasha Long
April 8, 2011
@ Dimitar - Don't feed the troll! Anyone who uses the phrase "sucks at the govt teat" is obviously not going to see ANY good in anything that benefits anyone other than themselves. The fact that the US government in particular (I assume that's where the troll is from - it's such a US phrase) hands out massively overbudgeted, no-bid government contracts to all their buddies in big business (halliburton, lockheed martin, blackwater, bechtel etc etc etc) is absolutely FINE! Those companies aren't "sucking at the govt teat" they are "providing jobs and tax income" and the fact that they all use legal loopholes THEY had written into tax laws to avoid paying the vast majority of their taxes, and that they are generally moving any manufacturing to developing countries where they can pay 1/100th of the wages to people even more desparate than the poorest in the US, doesn't make them parasites, it just makes them businessmen!
Dimitar Mirchev
Dimitar Mirchev
April 8, 2011
IggyDalrymple

What do you mean by "greenies" in "you greenies are parasites"?

There are so many "Greenies" that it is hard to guess exactly which type you have in mind or you mean "all greenies are the same".
Iggy Dalrymple
Iggy Dalrymple
April 7, 2011
"Rather, it is that if RGGI is good enough for him, it is plenty good for the rest of us."

How does the subsidy benefit Koch? It's MIT that sucks the govt teat. Koch is a philanthropist, you greenies are parasites.

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Jon Coifman

Jon Coifman

Jon Coifman has been providing strategic communications and public affairs counsel to corporate, government and non-profit clients for more than 15 years. An experienced strategist, spokesman and speechwriter, he has appeared on network...
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