The Homa Files

Excerpted from the New York Times, “Bailout (and Buildup)”, by Thomas L. Friedman, October 22, 2008 

* * * * *
Last week, U.S. retail gasoline prices fell below $3 a gallon — to an average of $2.91 — the lowest level in almost a year. Why does this news leave me with mixed feelings?

Because in the middle of this wrenching economic crisis, it would be a real source of relief for many Americans to get a break at the pump. Today’s declining gasoline prices act like a tax cut for consumers and can save $15 to $20 a tank-full for an S.U.V.-driving family, compared with when gasoline was $4.11 a gallon in July.

Yet, it is impossible for me to ignore the fact that when gasoline hit $4.11 a gallon we changed — a lot. Americans drove less, polluted less, exercised more, rode more public transportation and, most importantly, overwhelmed Detroit with demands for smaller, more fuel-efficient, hybrid and electric cars. The clean energy and efficiency industries saw record growth — one of our few remaining engines of real quality job creation.

But with little credit available today for new energy start-ups, and lower oil prices making it harder for existing renewables like wind and solar to scale, and a weak economy making it nearly impossible for Congress to pass a carbon tax or gasoline tax that would make clean energy more competitive, what will become of our budding clean-tech revolution?

“Is the economic crisis going to be the end of green?” asks David Rothkopf, energy consultant and author of “Superclass.” “Or, could green be the way to end the economic crisis?”

* * * * *

It has to be the latter. We can’t afford a financial bailout that also isn’t a green buildup — a buildup of a new clean energy industry that strengthens America and helps the planet.

First, Washington could impose a national renewable energy standard that would require every utility in the country to produce 20 percent of its power from clean, non-CO2-emitting, energy sources — wind, solar, hydro, nuclear, biomass — by 2025. About half the states already have these in place, but they are all different. It would create a huge domestic pull for renewable energy if we had a uniform national mandate.

Second, Washington could impose a national requirement that every state move its utilities to a system of “decoupling-plus”–shifting them from getting paid for how much electricity or gas they get you to consume to getting paid for how much electricity or gas they get you to save. Several states have already moved down this path.

Third would be to modify the tax code so that any company that invests in new domestic manufacturing capacity for clean energy technology — or procures any clean energy system or energy savings device that is made by an American manufacturer — can write down the entire cost of the investment via a tax credit and/or accelerated depreciation in the first year.

Finally, if Congress passes another stimulus package, it can’t just be another round of $600 checks to go buy flat-screen TVs made in China. It has to also include targeted investments in scientific research, mass transit, domestic clean-tech manufacturing and energy efficiency that will make us a more productive and innovative society, one with more skills, more competitiveness, more productivity and better infrastructure to lead the next great industrial revolution: E.T. — energy technology.

Edit by DAF

* * * * *

Full article:
http://www.nytimes.com/2008/10/22/opinion/22friedman.html?ref=opinion

* * * * *

Want more from the Homa Files?
Click link =>  The Homa Files Blog

* * * * *

This entry was posted on November 19, 2008 at 6:30 am and is filed under Environment - Green. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.