California lifts suspension of green energy tax credit

Members of a state commission unanimously voted to lift a month-long suspension of an alternative energy-related tax credit that had been imposed following the bankruptcy of Solyndra, a politically connected California solar panel company.

The California Alternative Energy and Advanced Transportation Financing Authority, after reviewing its operations and the granting of $25.1 million in sales tax credits to Solyndra, concluded it could tighten the way it handles applications.

Joe DeAnda, a spokesman for the commission's chairman, state Treasurer Bill Lockyer, called the program "transparent and accountable." But he noted that "we can improve the way we evaluate applicants."

Solyndra, which used a $535-million federal loan guarantee to open a factory in Fremont, Calif., filed for bankruptcy protection Sept. 6. The announcement set off a political controversy in Washington, with allegations that the Obama administration pressured U.S. Department of Energy officials to approve the assistance despite warning signs that the company was in trouble.

California's support for Solyndra was much smaller than the federal government's. Solyndra was one of 26 companies that have participated in the California program.

State Sen. Alex Padilla (D-Pacoima), who held a hearing on the Solyndra case as chairman of the Energy, Utilities and Communications Committee, said he supported the state commission's decision to restart the tax credit. At last week's hearing, a number of executives from solar panel manufacturing companies praised the tax credit for making it possible for them to build and operate plants in California.

"The facts provided at the hearing show that the program is working as intended," said Padilla. "California-based green jobs are being created."

The state Legislature will act to improve oversight of the alternative energy tax credit, Padilla said, "but we must not let the failure of one company deter us."

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-- Marc Lifsher

Photo: Workers install solar panels at the Sacramento Municipal Utility District. Credit: Rich Pedroncelli/Associated Press

U.S. has a long way to go to reduce reliance on fossil fuels

At 407 pages, the U.S. Energy Department's just released Annual Energy Review contains more than you'll ever want to know about the nation's power production and consumption. On the other hand, you'll never be at a loss for words, or facts, on the subject.

Examples abound.

Is per capita household energy consumption in the U.S. declining because of programs emphasizing efficiency? Answer: no. It has remained essentially flat for 38 years, since the Arab oil embargo of 1973.

The reasons? A long-term shift to larger homes requiring more energy has been countered by a population shift to warmer climates in the South and West, requiring less heat. Electronic devices are far more efficient, but there are also a lot more of them around the typical home than ever before.

Will the country move sharply away from fossil fuels in the coming decade? Answer: maybe. Even with mandates for greater use of renewable energy, the nation still has as very long way to go. Energy consumption by source is as follows: petroleum 37%, natural gas 25%, coal 21%, nuclear 9%, renewable energy 8%.

The breakdown on renewables: hydroelectric power 2.5%, wood 2%, biofuels 1.9%, wind 0.9%, waste 0.5%, geo-thermal 0.2%, solar/photovoltaic 0.1%.

What about U.S. energy production by share of source? It's still firmly entrenched in fossil fuels. About 22% comes from natural gas. Another 22% comes from coal. About 12% comes from crude oil. The remainder comes from nuclear (8%), biomass (4%), natural gas liquids (3%) and hydroelectric (3%). Geothermal, solar/PV and wind together amount to just 1%.

What states consume the most energy? Texas is well ahead of No. 2 California on that score. But California, by far the nation's most populous state, shines in a related category: it's fifth among states with the lowest per capita energy consumption, behind New York, Rhode Island, Hawaii and Massachusetts. Texas is among the five states with the highest per capita energy consumption.

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— Ronald D. White

Photo: Solar panels cover the parking structure at the Applied Materials Inc. Maydan Technology Center in Santa Clara. Even with new mandates to increase energy from renewable sources, it still supplies only a fraction of the nation's energy needs. Credit: David Paul Morris / Bloomberg

California drops to No. 2 in energy efficiency rankings

The American Council for an Energy-Efficient Economy's latest assessment of the states, released Thursday, showed California edged out of first place for the first time in the five years that the rankings have been conducted.

The council's State Energy Efficiency Scorecard showed Massachusetts in the top spot, edging out California with a score of 45.5 out of a possible 50 points. California had 44 points, then there was a drop to New York in third with a score of 38, followed by Oregon (37.5). Washington, Vermont and Rhode Island were next with identical scores of 34.

The scores were based on weighted criteria that gave more credit to states that offered utility and public benefits funds and also had the best efficiency programs and policies (20 points possible). That was followed in importance by transportation, building energy codes and state government initiatives.

California finished first or second in every category including the one gauging appliance efficiency standards, where it tied for first.

ACEEE representatives said the report card showed that many states were taking the problem of energy efficiency seriously in spite of a sour economy and severe budget constraints.

“Energy efficiency is America’s abundant, untapped energy resource and the states continue to press forward to reap its economic and environmental benefits,” said ACEEE Executive Director Steven Nadel.
“The message here is that energy efficiency is a pragmatic, bipartisan solution that political leaders from both sides of the aisle can support. As they have over the past decades, states continue to provide the leadership needed to forge an energy-efficient economy, which reduces energy costs, spurs job growth, and benefits the environment,” Nadel added.

There was some irony in the report. The state with the lowest ranking, North Dakota, with a mere 2.5 points out of 50, is the state with the nation's fastest growing crude oil production.

See more on the ACEEE Scorecard.

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— Ronald D. White

Map: The ACEEE ranked the states in terms of their efforts to improve energy efficiency. The nation's leaders are clustered on the West Coast and in the Northeast. Credit: American Council for an Energy-Efficient Economy

Solar energy jobs growing in U.S. and California, study says

One in every four solar energy jobs in the United States is held by a Californian, and growth in the clean-tech industry is burgeoning nationwide, a new study said.

In August, California had an estimated 25,575 of the 100,237 solar-related jobs nationwide, according to the National Solar Jobs Census 2011, scheduled for release Monday by the Solar Foundation, a research and education organization in Washington.

The total for California was four times greater than the runner-up, Colorado, with 6,186 solar jobs as of last summer.

California ranked first in the nation for generating electricity from both photovoltaic solar panels and concentrated solar power systems that use mirrors to focus the sun's energy to create steam to run turbines, the study said.

"This report shows that the solar industry is not only creating green jobs across California but that the industry is forecast to continue growing at a much faster pace than the overall U.S. economy," said MIchelle Kinman, a clean-energy advocate for Environment California. "California industry and policymakers have a tremendous opportunity to build on this solid foundation and make solar a centerpiece of the state's energy policy."

Nationally, employment in all parts of the solar industry -- including manufacturing, installation, residential, commercial and large-scale power generation -- grew 6.8% in the 12 months prior to August, the study said. Overall U.S. job growth was less than 1% for the same period, it said.

Growth is expected to accelerate by 24%, creating 24,000 jobs over the next year, based on a survey of solar employers.

The industry's momentum is expected to continue despite bad publicity it received from a political scandal surrounding the bankruptcy of Northern California solar panel manufacturer Solyndra. The Fremont-based company recently closed after getting a $535-million federal loan guarantee.

"We have to look beyond the failure of one company and see the tremendous success that's occurring here," said Arno Harris, the chief executive of Recurrent Energy, a San Francisco solar developer.

Solar, added David Hochschild, vice president of another Fremont solar panel maker, Solaria Corp, "is on the cusp of playing a large role in mainstream markets."

Here's the census' list of the top 10 states by the number of solar industry jobs:

1. California          25,575

2. Colorado             6,186

3. Arizona               4,786

4. Pennsylvania       4,703

5. New York            4,279

6. Florida                4,224

7. Texas                 3,346

8. Oregon                3,346

9. New Jersey           2,871

10. Massachusetts    2,395

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Photo: Solar panels on the roof of a Fontana warehouse in 2008. Credit: Gina Ferazzi / Los Angeles Times

UC Davis' 'zero net energy' West Village opens this weekend

UC Davis West Village is set to officially open this weekend in what the campus administration claims will be the nation's largest so-called "zero net energy" community.

The "zero net" part means that West Village's goal is to consume only as much energy as it can generate.

UC Davis officials said that this would be accomplished by applying technologies including solar-reflective roofing, radiant barrier roof sheathing and extra insulation. Energy-efficient exterior lighting fixtures, indoor occupancy sensors and “daylighting” techniques are expected to require about 60% less energy than standard lighting.

A Web-based tool will allow energy monitoring by unit and a smartphone app will let residents turn off lamps and plugged-in electronics remotely. A four-megawatt photovoltaic system is expected to meet the energy needs of the first 1,980 apartment residents and commercial spaces.

“UC Davis West Village illustrates our commitment to cutting-edge research in sustainability and the value and impact of public-private partnerships,” said UC Davis Chancellor Linda P.B. Katehi. “The success of these partnerships demonstrates what can be achieved when innovations in design, science and engineering come together for the public good.”

West Village's initial $300 million phase includes 315 apartments, 42,500 square feet of commercial space, a recreation center and village square. Eventually, it's planned to include 3,000 people in 662 apartments and 343 single-family houses.

UC Davis officials said that the project is a collaboration between UC Davis and West Village Community Partnership, LLC, a joint venture of Carmel Partners of San Francisco and Urban Villages of Denver. The developer has a 65-year ground lease with the university for the project.

“UC Davis West Village is a visionary model for integrating pioneering sustainable principles with high-quality living environments, creating an eco-friendly lifestyle for students, faculty and staff,” said Nolan Zail, senior vice president of development at Carmel Partners.

UC Davis officials said that PG&E, Chevron Energy Solutions, Energy+Environmental Engineering and Davis Energy Group, together with UC Davis faculty and staff, played key roles in the zero net energy planning and feasibility studies.

In its Zero Net Energy Action Plan, released Sept. 1, 2010, the California Public Utilities Commission called for shifting all new residential construction in California to zero net energy by 2020, and all new commercial construction by 2030.

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--Ronald D. White

Photo: UC Davis' energy neutral West Village complex official opens this weekend. Photo credit: UC Davis.

 

Gov. Jerry Brown asks PUC to pass electric bill surcharge

 

Gov. Jerry Brown is asking his appointed members of the California Public Utilities Commission to come up with a way to continue tacking a surcharge on residential and commercial electric bills to pay for an energy efficiency program that did not get renewed by the Legislature last month.

The $400-million-a-year program is set to expire at the end of the year.

"We cannot afford to let any of these job-creating programs lapse," Brown said in a letter to PUC President Michael Peevey. The surcharges -- $1 to $2 a month on a typical residential bill -- pay for a 14-year-old levy called the Public Goods Charge. It pays for retrofitting structures to make them use less energy, for renewable energy subsidies and for research.

"I request that you take action under the commission's authority to ensure that programs like those supported by the Public Goods Charge are instituted -- and hopefully at their current levels," Brown wrote to Peevey.

The PUC will consider opening a legal and administrative proceeding on Brown's request at its Oct. 6 meeting in San Francisco, said spokeswoman Terrie D. Prosper.

"We're pursuing the fastest path to consider maintain funding levels for these programs and policies already underway," Prosper said.

Some environmentalists said they're supporting the governor's effort to revive the Public Goods Charge.

However, Sierra Club lobbyist Jim Metropulos lamented that Brown did not push earlier and more energetically to get enough bipartisan legislative support to pass the bill.

"We were disappointed that the governor put [his bill] out late, if it was one of his priorities," he said.

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Photo: A man looks at energy efficient washing machines at a mall in Baldwin Hills. Credit: Katie Falkenberg / For The Times

California treasurer: Put renewable-energy tax exemption on hold

The head of a California panel that hands out sales tax exemptions to renewable-energy manufacturing companies wants to suspend the program in the wake of the Solyndra scandal.

State Treasurer Bill Lockyer said he will ask fellow members of the California Alternative Energy and Advanced Transportation Financing Authority at a meeting Tuesday to not approve any new applications for exemptions from paying California sales tax. The exemptions are aimed at encouraging the purchase of equipment used to make solar panels and other energy-saving projects.

The program was authorized last year by the Legislature when it passed SB 71 by Sen. Alex Padilla (D-Pacoima).

A decision on the request is not likely to be made before late October, a spokesman for Lockyer said.

"SB 71 created a tax exemption for businesses that requires a level of transparency and public accountability rarely, if ever, seen in California or anywhere else," said Lockyer in a statement released by his office. "But every government program can be improved."

He added that "in light of recent events"-- the potential loss of a $535-million federal loan guarantee to Solyndra, a bankrupt Fremont solar panel manufacturer -- "we owe it to the taxpayers to see if there is more we can do to make sure we don't give their money to companies headed for a fall or companies that take California's money and run to other states to create jobs."

Lockyer's authority had approved $37 million worth of sales tax exemptions for Solyndra, but the company only used $25.1 million to buy equipment before it closed.

The authority approved 32 sales tax exemption applications, valued at $104 million, of which $31.4 million was used, the treasurer's office said.

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Photo: President Obama talks with Solyndra Chief Executive Chris Grommet during a visit to the company's factory in Fremont on May 26, 2010. Credit: Alex Brandon / Associated Press

Solyndra: House committee grills officials over failed solar firm

A congressional investigative committee on Wednesday grilled officials from two agencies that backed a $535-million loan package to failed Northern California solar panel manufacturer Solyndra.

Republicans on the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations said they want to know why the Energy Department approved the Solyndra loans in 2009 and then restructured the loan this February despite evidence that the company was struggling financially.

Solyndra, which was hailed by President Obama in 2010 as an innovative company that would use stimulus money to create jobs and lead the economic recovery, laid off most of its 1,100 workers Aug. 31 and announced it would cease operations. The company filed for Chapter 11 bankruptcy Sept. 6.

Two days later, agents with the FBI and Energy Department's inspector general served a search warrant at Solyndra's Fremont headquarters. The company's failure and the criminal investigation have raised questions about the administration's decision to pour billions of dollars into clean-energy programs.

Rep. Cliff Stearns (R-Fla.), the subcommittee's chairman, pressed Energy Department loans director Jonathan Silver on Wednesday to explain how the agency could approve more than half a billion dollars in loans despite questions about the company's financial health.

He also cited internal emails that he said show White House officials appeared to be pressuring Energy Department and the Office of Management and Budget to speed up approval of the Solyndra loans.

"You should have protected the taxpayers and made some forceful actions here," Stearns said.

Energy Department expects solar energy project to create 900 jobs

The U.S. Energy Department hopes that a new solar energy project will result in about 900 construction and permanent operations jobs.

Energy Secretary Steven Chu said today that his department had finalized a $1.2-billion loan guarantee to Mojave Solar for the development of the Mojave Solar Project. When complete, the 250-megawatt solar generation project in San Bernardino County will increase the nation’s currently installed concentrating solar power capacity by approximately 50%. 

Abengoa Solar Inc., the project sponsor, is the source of the estimate on construction and permanent operations jobs. 

“Investments in solar generation facilities like the Mojave Solar Project are critical to our effort to create good, clean energy jobs in America and compete with countries like China in the global clean energy race,” Chu said. “This project will supply local utilities with energy, help drive down the cost of solar power and fund more than 900 American jobs, all at minimal risk to the taxpayer.”

The Department of Energy's Loan Programs Office administers the Title XVII Section 1703 and Section 1705 loan guarantee programs, and the Advanced Technology Vehicle Manufacturing (ATVM) loan program.

The Energy Department said that the Title XVII loan guarantee programs "support the deployment of commercial technologies along with innovative technologies that avoid, reduce or sequester greenhouse gas emissions, while the ATVM loan program supports the development of advanced vehicle technologies."

The Department has issued loans, loan guarantees or offered conditional commitments for loan guarantees totaling nearly $40 billion to support more than 40 clean energy projects across the United States.

Not all of those investments pan out. Federal agents recently executed a search warrant at the Northern California headquarters of solar panel manufacturer Solyndra Inc., which filed for bankruptcy protection last week despite receiving $535 million in federal stimulus loan guarantees.

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Image: Artist's rendering of the Mojave Solar Project. Source: California Energy Commission.

 

FBI, Energy Department raid offices of solar-panel maker Solyndra

The FBI and the Energy Department's inspector general's office are executing a search warrant at the Fremont, Calif., headquarters of solar panel maker Solyndra. The raid came just two days after the company declared Chapter 11 bankruptcy, a move that raised serious concerns about the Obama administration's granting of a $500-million-plus federal loan guarantee to Solyndra in the fall of 2009.

FBI Public Affairs Specialist Peter D. Lee confirmed that the company's headquarters had been targeted, adding that the raid was still underway late Thursday morning. Lee said he was unable to disclose further details about what the FBI and the Energy Department was hoping to find.

Lee said that the raid documents were under seal.

Solyndra is a manufacturer of solar power systems for rooftop applications on commercial buildings. Earlier this week, the company said in a press release that "global economic and solar industry market conditions" had forced it to suspend its manufacturing operations. The company has laid off its 1,100 full-time and temporary employees.

"Despite strong growth in the first half of 2011 and traction in North America with a number of orders for very large commercial rooftops, Solyndra could not achieve full-scale operations rapidly enough to compete in the near term with the resources of larger foreign manufacturers," the company said.

Solyndra was one of about 40 alternative energy projects funded over the last two years through an Energy Department loan program that helped companies involved with major wind, solar, nuclear and ethanol projects. At the time, the Energy Department said that it expected the combined projects to create about 60,000 jobs.

President Obama had visited Solyndra for a tour of the factor in May 2010, even as outside observers, such as PricewaterhouseCoopers, were already raising doubts about the company's ability to survive.

Solyndra had another Obama connection in that it was backed by Tulsa billionaire George Kaiser, a key supporter of the president.

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-- Ronald D. White

Photo: FBI agent guards the Fremont, Calif., offices of Solyndra. Credit: Associated Press

California solar panel manufacturer ceases operations

The California solar panel manufacturer that received a high profile $535 million Energy Department loan guarantee announced today that it was ceasing operations, laying off 1,100 workers and will file for bankruptcy in the coming days.

Fremont-based Solyndra said that it had been rocked by stifling global economic conditions and a slow recovery from the great recession. It had also faced heavy competition from Chinese firms that were undercutting it on costs.

The company's website had not been updated to reflect the development. A terse voice mail announcement on one of Solyndra's contact information telephones said only the following: "Solyndra announced today in a press release that it has ceased operations and intends to file for chapter 11 bankruptcy protection," advising customers on how to contact the company for further information.

It was quite a fall from late May 2010, when the company hosted the president on a factory tour. Company officials announced then that they expected to be adding new employees. But in July of this year, the company was being grilled on Capitol Hill by House Republicans who said that there were indications that the company was in a weak financial condition and wasn't a good choice for the loan program.

Solyndra would become the third such company to file for bankruptcy in recent days. Spectrawatt Inc. of Hopewell Junction, N.Y., filed for Chapter 11 bankruptcy on Aug. 19. Evergreen Solar Inc. of Marlboro, Mass., filed for Chapter 11 bankruptcy on Aug. 15.