California Can Lead Nation in Green Tech Industry and Stimulate Economy With Bond Package

Energy Independence begins with Energy efficiency - It's cheaper to save energy than to make energy..

Updated August 17, 2007
MANDATORY RENEWABLE ENERGY – THE ENERGY EVOLUTION –R20
By Jay Draiman, Energy Consultant

Today’s energy industry is perhaps the world’s most powerful. Energy is the basis of all this world’s wealth, and for perhaps earth’s entire history, the sun’s energy has fueled all ecological and economic systems. If early humans did not learn to exploit new sources of energy, humankind would still be living in the tropical forests. Without the continual exploitation of new energy sources, there would have been no civilization, no Industrial Revolution and no looming global catastrophe.

In order to insure energy and economic independence as well as better economic growth without being blackmailed by foreign countries, our country, the United States of America’s Utilization of Energy Sources must change.
"Energy drives our entire economy.” We must protect it. "Let's face it, without energy the whole economy and economic society we have set up would come to a halt. So you want to have control over such an important resource that you need for your society and your economy." The American way of life is not negotiable.
Our continued dependence on fossil fuels could and will lead to catastrophic consequences.

The federal, state and local government should implement a mandatory renewable energy installation program for residential and commercial property on new construction and remodeling projects, replacement of appliances, motors, HVAC with the use of energy efficient materials-products, mechanical systems, appliances, lighting, insulation, retrofits etc. The source of energy must be by renewable energy such as Solar-Photovoltaic, Geothermal, Wind, Biofuels, Ocean-Tidal, Hydrogen-Fuel Cell etc. This includes the utilizing of water from lakes, rivers and oceans to circulate in cooling towers to produce air conditioning and the utilization of proper landscaping to reduce energy consumption. (Sales tax on renewable energy products and energy efficiency should be reduced or eliminated)

The implementation of mandatory renewable energy could be done on a gradual scale over the next 10 years. At the end of the 10 year period all construction and energy use in the structures throughout the United States must be 100% powered by renewable energy. (This can be done by amending building code)

In addition, the governments must impose laws, rules and regulations whereby the utility companies must comply with a fair “NET METERING” (the buying of excess generation from the consumer at market price), including the promotion of research and production of “renewable energy technology” with various long term incentives and grants. The various foundations in existence should be used to contribute to this cause.

A mandatory time table should also be established for the automobile industry to gradually produce an automobile powered by renewable energy. The American automobile industry is surely capable of accomplishing this task. As an inducement to buy hybrid automobiles (sales tax should be reduced or eliminated on American manufactured automobiles).

This is a way to expedite our energy independence and economic growth. (This will also create a substantial amount of new jobs). It will take maximum effort and a relentless pursuit of the private, commercial and industrial government sectors’ commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) (rainwater harvesting, water conservation) (energy and natural resources conservation) in order to achieve our energy independence.
I believe what America needs are cool headed government leaders who understand how markets function and can work with consumers, voters and oil industry leaders to develop a viable energy strategy that will help and not hinder as our nation transitions to our new energy reality.
"To succeed, you have to believe in something with such a passion that it becomes a reality."

Jay Draiman, Energy Consultant
Northridge, CA. 91325
August 16, 2007

P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.

I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.

"the way we produce and use energy must fundamentally change."
The American people resilience and determination to retain the way of life is unconquerable and we as a nation will succeed in this endeavor of Energy Independence.

The Oil Companies should be required to invest a substantial percentage of their profit in renewable energy R&D and implementation. Those who do not will be panelized by the public at large by boy cutting their products.

Solar energy is the source of all energy on the earth (excepting volcanic geothermal). Wind, wave and fossil fuels all get their energy from the sun. Fossil fuels are only a battery which will eventually run out. The sooner we can exploit all forms of Solar energy (cost effectively or not against dubiously cheap FFs) the better off we will all be. If the battery runs out first, the survivors will all be living like in the 18th century again.

Every new home built should come with a solar package. A 1.5 kW per bedroom is a good rule of thumb. The formula 1.5 X's 5 hrs per day X's 30 days will produce about 225 kWh per bedroom monthly. This peak production period will offset 17 to 2

4 cents per kWh with a potential of $160 per month or about $60,000 over the 30-year mortgage period for a three-bedroom home. It is economically feasible at the current energy price and the interest portion of the loan is deductible. Why not?

Title 24 has been mandated forcing developers to build energy efficient homes. Their bull-headedness put them in that position and now they see that Title 24 works with little added cost. Solar should also be mandated and if the developer designs a home that solar is impossible to do then they should pay an equivalent mitigation fee allowing others to put solar on in place of their negligence. (Installation should be paid “performance based”).

Installation of renewable energy and its performance should be paid to the installer and manufacturer based on "performance based" (that means they are held accountable for the performance of the product - that includes the automobile industry). This will gain the trust and confidence of the end-user to proceed with such a project; it will also prove to the public that it is a viable avenue of energy conservation.

Installing a renewable energy system on your home or business increases the value of the property and provides a marketing advantage. It also decreases our trade deficit.

Nations of the world should unite and join together in a cohesive effort to develop and implement MANDATORY RENEWABLE ENERGY for the sake of humankind and future generations.

The head of the U.S. government's renewable energy lab said Monday (Feb. 5) that the federal government is doing "embarrassingly few things" to foster renewable energy, leaving leadership to the states at a time of opportunity to change the nation's energy future. "I see little happening at the federal level. Much more needs to happen." What's needed, he said, is a change of our national mind set. Instead of viewing the hurdles that still face renewable sources and setting national energy goals with those hurdles in mind, we should set ambitious national renewable energy goals and set about overcoming the hurdles to meet them. We have an opportunity, an opportunity we can take advantage of or an opportunity we can squander and let go,"

solar energy - the direct conversion of sunlight with solar cells, either into electricity or hydrogen, faces cost hurdles independent of their intrinsic efficiency. Ways must be found to lower production costs and design better conversion and storage systems.

Disenco Energy of the UK has announced it has reached important
milestones leading to full commercialization, such as the completion of
field trials for its home, micro combined heat and power plant (m-CHP).
The company expects to begin a product roll out in the second quarter of
2008.
Operating at over 90 percent efficiency, the m-CHP will be able to
provide 15 kilowatts of thermal energy (about 50,000 Btu’s) for heat and
hot water and generate 3 kilowatts of electricity. The m-CHP uses a
Stirling engine generator and would be a direct replacement for a home’s
boiler.
Running on piped-in natural gas the unit would create some independence
from the power grid, but still remain connected to the gas supply
network.
Whereas heat is supplied only when the generator is running (or
conversely electricity is generated only when heat is needed) a back-up
battery system and heavily insulated hot water storage tank seem
eventual options for more complete energy independence.

FEDERAL BUILDINGS WITH SOLAR ENERGY – Renewable Energy
All government buildings, Federal, State, County, City etc. should be mandated to be energy efficient and must use renewable energy on all new structures and structures that are been remodeled/upgraded.
"The government should serve as an example to its citizens"

A new innovative renewable energy generating technology is in development. The idea behind Promethean Power came from Matthew Orosz, an MIT graduate student who has worked as a Peace Corps volunteer in the African nation of Lesotho. Orosz wanted to provide electric power, refrigeration, and hot water to people without electricity. He and some MIT colleagues designed a set of mirrors that focus sunlight onto tubes filled with coolant. The hot coolant turns to pressurized vapor, which turns a turbine to make electricity. The leftover heat can be used to warm a tank of water and to run a refrigerator or an air conditioner, using a gas-absorption process that chills liquid ammonia by first heating it.
IS TECHNOLOGY BEING HELD BACK
New Solar Electric Cells - 80% efficient
Mr. Marks says solar panels made with Lepcon or Lumeloid, the materials he patented, ... Most photovoltaic cells are only about 15 percent efficient. ...
A major increase in daily petroleum output is deemed essential to meet U.S. and international oil requirements in 2020, and so we should expect recurring oil shortages and price increases. Only by expediting the diminishing our day-to-day consumption of petroleum and implementing of efficiency and renewable energy policy can we hope to reduce our exposure to costly oil-supply disruptions and lower the risk of economic strangulation.
Quick Facts
 Energy is vital to every sector of the U.S. economy. As our economy grows, the demand for energy rises.

 Total energy consumption is projected to increase 35 percent by 2030.

 Energy-efficiency improvements have played a major role in meeting national energy needs since the 1970s, relative to new supply.

Jay Draiman, Energy Consultant
Northridge, CA 91325
Email: renewableenergy2@msn.com
Posted on: 08/20//2007

Our firm has been in the chilled water/heating water systems optimization business for the last 12 years. Our client base is nationwide ranging from MIT in Cambridge, Mass. to the University of Iowa to the University of California Davis Medical Center Sacramento. It is very encouraging to see that our state is taking a proactive approach to energy conservation utilizing existing technologies to achieve attractive rates of return on investment.

The most financially attractive energy conservaton opportunities are the retro commissioning/retrofit projects for which AB 32 is budgeting 600 million with an expected 840 million in energy savings over the next 10 years. Our experience indicates these type of system optimization projects when coupled with the proper scope of work and commissioning efforts will more likely have a return on investment of two to three years, hence we would encourage increasing the budget for this portion of the bill to take advanted of such an attractive rate of return on investment not discounting the parallel return on the carbon footprint reduction. For example, we recently completed a chilled water system optimization project for the University of Iowa, Hospital and Clinc buildings, approximately 2,500,000 million square feet of medical space. The cost of the optimization project was 1.9 million including soft costs and the recorded chilled water savings including performance penalty charge savings reflected a simple payback period of approximately 9 months.

You have our support for AB 32 and please feel free to contact us should you have any questions or if we could be of some assistance on these issues.

David A. Rogers, P.E.
Principal
R&A Engineering Solutions Inc.

To accelerate “IMPLEMENTATION of ENERGY EFFICIENCY, CONSERVATION, RENEWABLES and Reduction in the use of fossil fuels”.

The U.S. government can initiate an aggressive program to encourage and expedite these concepts, reduce demand by spurring a revolution in energy productivity initiating:
One promising idea is to make energy efficiency trade-able, much in the same way as we trade oil and natural gas, or, indeed, carbon emissions. A system making energy efficiency trade-able in the U.S. -- companies would be able to sell credits when they exceeded new standards -- would quickly reduce total energy consumption while limiting carbon emissions. Adding a market mechanism to trade efficiency gains would make energy efficiency standards more palatable to industries that have resisted them in the past and expedite implementation of energy efficiency and fuel efficiency. –
“Money makes the world go round”.

YJ Draiman, Energy analyst
8/31/2007

Selling Renewable Energy (Solar Etc.) Without Incentives
In short, we need to market solar as an investment that will save money while you own it and return most or all of your investment when you sell the building it's sitting on.

Chances are, as natural gas and oil prices go up, there will be a corresponding jump in your monthly electricity bill. So, instead of promoting a solar power system based on today's savings in electricity, we need to have easily understandable projections on what the savings will be over the life of a system. These numbers need to reflect what's really happening to the cost of energy!
Here are some ideas I'd like to share. First, we need to find a way to make renewable energy economically competitive without the tax incentives. We do this by answering the question: "What is the opportunity cost of not using solar to decrease your energy bill?"

There's something interesting I've found. There's a direct correlation among electrical rates, the cost of air conditioning a building, the heat index and the amount of sunshine on any given day. In other words, on the hottest, sunniest days, we use more electricity that costs more per kilowatt. So, why do we continue to promote average hours of solar production, when in fact (at least down here in California), we produce far more solar power per day during the heat of the summer when energy costs are highest, than we do in our temperate winter months when energy costs are lowest. A sound marketing approach would be to evaluate solar energy in "dollars" of production per year instead of in kilowatts. I'm sure there are some smart people out there who can match kilowatts of solar production on any given day of the year to what the rates will be (based on the projected costs of electricity).
Secondly, we should stop trying to sell a solar package as a "cost." In real estate, there is a principle that says anything affixed to real estate becomes an integral part of the real estate. Once a solar package is installed, it immediately increases the value of a property. So how can you predict how much more a building will be worth in 5-10 years with a package as opposed to without one? In the real estate appraisal business, there are three approaches to appraising a property. The market approach (what are comparable properties selling for), the reproduction cost (the cost of creating an identical building at current construction and material prices) and the actual original cost adjusted for inflation. In all three methods, there's a strong case that a system installed today will make the building worth more today and in future years.
We need some realistic numbers to predict how much more a property will be worth in the years following installation. I believe that if you sell a building 5-10 years after installing solar, you should recoup all of your investment in the system plus an added bonus. If the rumors are true, a residential system (using the market approach) adds $20 of value to a home for every $1 it saves on the electric bill.
For commercial appraisals, you would divide the income (savings) by a cap rate (which was about 9% at last report). A system that saves $2000 a year then would be worth $40,000 on a home or $25,000 on a business. But if the cost of electricity goes up (if that is remotely possible), then wouldn't the value of the solar power system increase as well? In reality, we are not selling something that costs — we are actually offering a financial investment that grows comparably with other forms of energy.
In short, we need to market solar as an investment that will save money while you own it and return most or all of your investment when you sell the building it's sitting on. In commercial real estate, they use a "Cash Flow Analysis" form as the tool to evaluate a building's value using the income approach. We need a similar tool for putting a value on solar. If solar makes sense with this approach, then just think of how much better the systems look when you add the tax advantages!
This approach also applies to the cost of Energy efficiency implementation.
Reducing operational costs increases the value of the business and or property.
Compiled by Jay Draiman, Energy analyst
12/1/2007

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