Rooftop solar companies will only play if the game is stacked in their favor

Commentary by Marita Noon

The past couple of weeks have highlighted the folly of the energy policies favored by left-leaning advocacy agencies that, rather than allowing consumers and markets to choose, require government mandates and subsidies. Three major, but very different, solar entities – that would not exist without such political preference – are now facing demise. Even with the benefit of tax credits, low-interest loans, and cash grants that state and federal governments have bestowed on them, the solar industry is struggling.

We’ve seen Abengoa – which I’ve followed for years – file for bankruptcy.

Ivanpah, the world’s biggest solar power tower project in the California desert, is threatened with closure due to underperformance.

Then there is SunEdison, the biggest renewable energy developer in the world. It’s on the verge of bankruptcy as its stock price plunged from more than $30 to below $.50 – a more than 90 percent drop in the past year.

All of these recent failures magnify the solar industry’s black eye that first swelled up nearly five years ago with the Solyndra bankruptcy.

Worried about self-preservation, and acting in its own best interest – rather than that of consumers specifically, and America in general – industry groups have sprung up to defend the favored-status energy policies and attack anyone who disagrees with the incentive-payment business model. Two such groups are TASC and TUSK – both of which are founded and funded by solar panel powerhouses SolarCity and SunRun with involvement from smaller solar companies (SolarCity recently parted ways with TASC).

The Alliance for Solar Choice (TASC) is run by the lead lobbyists for the two big companies – both have obvious Democrat Party connections.

Bryan Miller is Senior Vice President, Public Policy & Power Markets at Sunrun (a position he took in January 2013) and is President and co-chair of TASC (May 2013). His LinkedIn page shows that he’s worked for the National Finance Committee for Obama for America and was Finance Coordinator/Field Organizer for Clinton-Gore ’96. He’s also served as s senior political appointee in the Obama Administration and ran an unsuccessful 2008 bid for election to Florida’s House of Representatives, District 83.

Co-chair John Stanton is Executive Vice President, Policy & Markets at SolarCity. In that role, he, according to the company website, “oversees SolarCity’s work with international, federal, state and local government organizations on a wide range of policy issues.” Previously, Stanton was Executive Vice President and General Counsel for the Solar Energy Industries Association (SEIA) – the national trade association for industries that support the development of solar power – with which he oversaw legal and government affairs for the association. There he played a pivotal role in the 8-year extension of the solar investment tax credit. He was also legislative counsel for the Environmental Protection Agency under the Clinton administration.

A news report about the founding of TASC states: “First and foremost, the group will work to protect net-energy metering (NEM) rules in the 43 states that have them.”

On March 25, the Wall Street Journal reported: “two dozen states are weighing changes to their incentives for rooftop solar…incentive payments have been the backbone of home solar firms’ business model.” In the past several months, Nevada and Hawaii have ended their NEM programs. TASC has responded with lawsuits. In Hawaii, TASC’s case has already been dismissed with a report stating: the judge’s “ruling in favor of the Defendants has eviscerated TASC’s claims.” Last year, Louisiana capped its “among the most generous in the country” solar tax credit. Arizona Public Service was the trailblazer in modifying generous solar policies when, in 2013, the Arizona Corporation Commission approved a fixed charge for solar customers.

As one of the first states to challenge the generous NEM policies, Arizona is still a battleground. That’s where TASC formed another group: TUSK – which stands for Tell Utilities Solar won’t be Killed. Lobbyist and former U.S. Congressman Barry Goldwater, Jr. was brought in to give a Republican face to the industry’s advocacy. TUSK even has an elephant, the Republican mascot, as part of its logo. The TUSK home page states: “Republicans want the freedom to make the best choice and the competition to drive down rates” – true, but a core value of the Republican Party is allowing the free markets to work rather than governments picking winners and losers.

While registered in Arizona, TUSK has recently been active in other states – including Nevada, Oklahoma, and Michigan.

The reoccurring theme in the TASC/TUSK campaign is to connect the word “kill” with “solar” – though the NEM modification efforts don’t intend to kill solar. Instead, they aim to adjust the “incentive payments” to make them more equitable. However, without the favors, as was seen in Nevada, rooftop solar isn’t economical on its own. Companies refuse to play when the game is not stacked in their favor.

TASC and TUSK are just two of the ways the rooftop solar industry – also known as a “coalition of rent seekers and welfare queens,” as Louisiana’s largest conservative blog, The Hayride, called them in the midst of that state’s solar wars – is trying to protect its preferential policies. It has other tricks in its playbook.

In addition to the specific industry groups like TASC, TUSK and SEIA, third party organizations like the Energy and Policy Institute (EPI) are engaged to intimidate public officials and academics. EPI, run by Gabe Elsner, is considered a dark money group with no legal existence. It can be assumed to be an extension of what is known as the Checks & Balances Project (CB&P) – which was founded to investigate organizations and policymakers that do not support government programs and subsidies for renewable energy. CB&P has received funding from SolarCity. Elsner joined CB&P in 2011 – where he served as Director – and then, two years later, left to found EPI – which C&BP calls: “a pro-clean energy website.” EPI produces material to attack established energy interests and discredit anyone who doesn’t support rooftop solar subsidies. I have been a target of Elsner’s efforts.

Then there is the Solar Foundation – closely allied with SEIA and government solar advocacy programs – which publishes a yearly report on solar employment trends across the country. Solar employers self-report the jobs numbers via phone/email surveys and the numbers are, then, extrapolated to estimate industry jobs nationwide. Though the reports achieve questionable results, threats of job loss have proven to be an effective way to pressure state and federal lawmakers to continue the industry’s favorable policies – such as NEM.

Together, these groups have a coordinated campaign to produce public opinion polling that is used to convince politicians of NEM’s public support. Such cases can be found in Maine, Nevada, New Hampshire, Colorado, and Kansas. They gather signatures from solar advocates and use them to influence legislators and commissioners. They engage in regulatory and rate proceedings – often creating, as I’ve experienced, an overwhelming presence with mob-like support from tee-shirt-wearing, sign-waving advocates. They run ads calling attempts to modify solar’s generous NEM policies a “tax” on solar and, as previously mentioned, attack utilities for trying to “kill solar.” If this combined campaign isn’t fruitful, and NEM policies are changed, lawsuits, such as those in Hawaii and Nevada, are filed.

This policy protection process may seem no different from those engaged by any industry – as most have trade associations and advocacy groups that promote their cause. Remember “Beef, it’s what’s for dinner” and “Pork, the other white meat”? Few are truly independent and self-preservation is a natural instinct.

Yes, even the fossil fuel industry has, for example, the American Petroleum Institute, the Independent Petroleum Association of America, the National Mining Association, and the American Coalition for Clean Coal Electricity. And there are advocacy groups who support various limited-government, free-market positions, as Miller recently accused.

The difference is that fossil fuels provide, and have been providing, America with efficient, effective, and economical energy. Its abundance has lowered costs for consumers and increased America’s energy security. Advocates are not fighting for special favors that allow this natural resource to survive, but are rather attempting to push back on new rules and regulations aimed at driving it out of business.

By comparison, the solar advocacy efforts are, as acknowledged by TASC: “First and foremost, the group will work to protect net-energy metering (NEM) rules,” as without them – and the other politically correct policies – rooftop solar energy doesn’t make economic sense. Because rooftop solar power isn’t efficient or effective, its major selling point is supposed savings that are achieved for a few, while costing all tax- and rate-payers.

With the potential of a change in political winds – remember the solar supporters all seem to be left-leaning, big government believers who want higher energy prices – the campaign for America’s energy future is embedded in the presidential election.

Will big government pick the winners and losers, or will free markets allow the survival of the best energy sources for individual circumstances?

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy—which expands on the content of her weekly column. Follow her @EnergyRabbit.

Denying the market

To be honest, I’m not sure if I was sent this to provoke a comment or if I just happen to be on a list that gubernatorial candidate Heather Mizeur doesn’t use all that often. I think most observers know I have an interest in energy issues, and this definitely falls into one of them. You just have to ask yourself why Mizeur counts herself among the Democrats are so insistent on denying the opportunity for shovel-ready jobs and investment – I thought that was what they were all about.

First of all, this is what Mizeur had to say about the proposed Cove Point LNG export facility.

(Yesterday), Delegate Heather Mizeur (D-Montgomery), candidate for governor, called on Governor O’Malley to join her in opposition to the Dominion Resources liquefied natural gas (LNG) export facility at Cove Point in Calvert County. She made the announcement during a speech at the Stop Cove Point Rally in downtown Baltimore City earlier today.

“I am calling on Gov. O’Malley to take a stand with us today to reject Cove Point,” Mizeur told the audience. “You cannot leave a legacy on addressing climate change and be silent on Cove Point. It’s time for Gov. O’Malley to break the silence and join us in saying no to Cove Point.”

The rally, which was attended by 500 people, was organized by climate, health and anti-fracking activists from across the state, and was one of the largest environmental rallies ever in Baltimore City. It came as the state Public Service Commission begins official hearings on the project.

Mizeur is currently the only gubernatorial candidate to state her opposition to the project. When she announced her opposition in December, both Lieutenant Governor Brown and Attorney General Gansler – the two other Democratic candidates in the race for governor – expressed a desire to build the project without environmental damage, but failed to explain how such a plan would be possible.

Dominion Resources, a Virginia-based energy company, is pursuing the construction of a $3.8 billion facility to serve as a collection point for fracked natural gas from throughout the Mid-Atlantic region, where cargo tankers would then ship it throughout the world.

But the Cove Point facility would release 3.3 million tons of carbon dioxide and other harmful greenhouse gases into the air annually, making it a serious setback to achieving the state’s goals on fighting climate change, including a plan for a 25% reduction of greenhouse gases by 2020.

Mizeur has also called on Dominion Resources to invest $3.8 billion – the construction cost of the proposed facility – in the state’s renewable energy sector. According to the U.S. Department of Energy, clean energy investments create more permanent jobs than exporting fracked gas.

Obviously Mizeur is an adherent to the religion of manmade climate change, a belief system which fails to address why none of the climate models have predicted the lack of warming this century. The fact that they managed to get just 500 people to a climate change rally shows how small the cadre of believers really is – a good Second Amendment or TEA Party rally can rustle up similar numbers without really trying. If this is “one of the largest environmental protests in state history” then we really are letting a tiny minority dictate policy.

But let’s say these guys are really serious – I suppose living in a state foolish enough to believe that artificially limiting its carbon emissions will have an effect on our overall global climate will do that to you. Even if the point source of 3.3 million tons is correct, it doesn’t take into account the reduction in emissions at destination points abroad. Natural gas is cleaner burning than coal, and until we figured out that fracking was a way to supercharge the moribund domestic natural gas market it was a fossil fuel environmentalists weren’t uncomfortable with. To show how the market has changed, the Cove Point facility was originally built in the 1970s as an import facility because the domestic natural gas market was thought to be in an irreversible decline.

On the other hand, the point source investment of $3.8 billion will have a positive effect on the regional and state economies. Last year, in announcing its filing, Dominion claimed the project will create up to 4,000 jobs during the construction phase and perhaps over 14,000 jobs overall, not to mention billions in royalty payments. Because most of the supply would come from regional producers, the entire mid-Atlantic area would benefit (except Maryland and New York, which currently have bans on fracking.) The facility would also provide a needed boost to our export tally to address a persistent American trade deficit, as the LNG is already contracted out to distributors in Japan and India.

Finally, Mizeur complains that the $3.8 billion Dominion is willing to invest in the project could be better spent in the renewable energy sector. Does the name “Solyndra” ring a bell? Despite its best efforts to create a market for offshore wind, companies aren’t willing to make the investment in that area – remember Bluewater Wind? In the area of solar energy, it took billions in taxpayer-guaranteed loans – and mandated renewable energy portfolios such as the one Maryland is saddled with – to get that market off the ground, yet it still produces but a tiny fraction of our electricity needs at a cost several times the going rate for electricity produced from coal or natural gas.

And it’s funny that Mizeur worries about the cost of natural gas going up due to exports, but had no problem with raising the gasoline tax on a perpetual basis. So much for supporting hard-working Marylanders.

So the choices are either zero or $3.8 billion; that’s reality. We can take advantage of proven resources we already have or listen to alarmists whose real goal is to foster dependence on government under the guise of saving the planet. It’s just too bad our little sandbar is energy-poor, unless you deign to call chicken manure an energy gold mine, and even the proponents concede its not as efficient as natural gas.

Scandal fatigue?

This William Warren cartoon seems to sum it up, doesn’t it? Between Benghazi, the IRS TEA Party targeting, the AP phones being tapped, the FOIA preferences at the EPA, questions on campaign finance in both 2008 and 2012, the Enroll America protection racket – the list can go on and on and on if you revert back to earlier activities like Operation Fast and Furious, Solyndra, or the handling of the Deepwater Horizon accident. And I’m not counting what goes on in Maryland, like the inmates taking over the prisons or having a governor who’s more concerned about presidential prospects than running the state. I suppose if power is the ultimate aphrodisiac then that must be why Democrats are pro-abortion; otherwise they would have a dozen or so children running around, by nearly as many mothers.

Now I’m certain the minuscule number of progressives and leftists who dare to read here would beg to differ and can probably point out all the scandals, conflicts of interest, and foibles of the Bush years, but really, guys, come on – what happened to the most transparent administration ever? I suppose in a perverse sort of way finding out about all these scandals is a type of transparency – too bad we were stonewalled every step of the way in finding out.

But are the American people and their notoriously short attention spans in danger of scandal fatigue in May of 2013, 18 months before the midterm elections? Sometimes the pre-emptive strike is the best thing in the long run, and there’s little chance of the rabidly partisan Democrats in the Senate turning on their leader and convicting him in the unlikely event we ever get to an impeachment trial. Moreover, Barack Obama doesn’t exactly strike me as a fall-on-the-sword kind of guy, so don’t bet on him resigning to save the country the agony of an impeachment trial like Richard Nixon did. Democrats know well what sort of electoral fate may await – the Republicans who placed country over party were “rewarded” by losing 48 House seats and 3 Senate seats in the 1974 elections, which were held just three months after Nixon left in disgrace.

Meanwhile, focusing on the scandals of the past will blind us to the issues of the present. Even if the GOP gains control of the Senate in 2014 – a likely possibility even without scandals as the sixth year of a presidency is traditionally unkind to the president’s party – the nation will simply revert back to the inverse of the situation we had back in 2007-2008, where a Republican president was crippled by a Democratic Congressional majority in both houses. Much of the damage was done in the two years the Democrats held absolute control of government, as the massive entitlement program dubbed Obamacare came into being and Barack Obama’s re-election means at least some of it will be in place by 2014. Once established, we haven’t killed an entitlement program yet. And there’s still the aspect of governing by executive order: “Stroke of the pen, law of the land. Kinda cool.”

Perhaps the one silver lining in all of this is the emergence of the new media as a force for uncovering these and other issues with the government in Washington. No longer do we have a small group of periodicals, newspapers, and television networks determining what is news and what remains on the cutting room floor. Certainly, there is a huge majority of the American public still in an celebrity gossip-induced slumber, but slowly people are beginning to see the light and it only takes an irate, tireless minority to effect real change.

In the meantime, though, there is plenty to write about for those obsessed with Obama scandals. That really is a shame because it makes it more difficult to argue with the other side on why their ideas are such a failure – I can hear it now: “Well, if you Republicans wouldn’t have made the Obama years such a partisan witch hunt he may have succeeded with his good ideas.”

But I suppose it comes back to the old saying about absolute power corrupting absolutely, doesn’t it? Do you see why the nation’s founders wanted a limited government yet?

Odds and ends number 42

As you likely know, this is the post where I pick out a few items worth a paragraph or three but not a full post. So here goes.

Polling is in the news these days – sometimes as a real reflection of the political scene, and sometimes just to make news and push a particular agenda. There are two recent polls which I believe reflect the latter.

I’m usually not too trusting of polls in which I can’t find a political or geographical breakdown, and a recent Washington Post poll fits this bill. Taken simply as a sample of 1,064 adults in Maryland, the Post poll gives Martin O’Malley a 55% approval vs. 36% disapproval – compare that to the 53-40 split in the recent Gonzales Poll, which I can easily ascertain subgroups and methodology in. Other disagreements: a 50-44 split in favor of gay marriage on the Post poll vs. a 49-47 split in favor on Gonzales and the “key issue” question: the economy was the top choice of 49% in Gonzales but only 32% on the Post poll.

Without seeing the methodology besides the sample size, my guess is that the local Washington D.C. area was oversampled by the Post. Obviously the economy is better there than in some other portions of the state, and since the area is more liberal than the rest of the state (hard to believe, but true) the other numbers seem to point in that direction as well.

Continue reading “Odds and ends number 42”