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How to Rebuild America

The New Road to Energy Sustainability

By Chris Nelder
Friday, March 12th, 2010

Dear Congress,

We, the American People, want a New Deal for energy.

We're tired of watching the rest of the world kick the clean energy industry into high gear while we're still stuck in neutral, debating a weak cap-and-trade bill that doesn't come close to meeting our energy challenge.

Indeed, we believe the focus on climate change is fundamentally misguided. We should be thinking about what we put into the engine, not what comes out of the tailpipe. If we get energy transition right, the emissions problem will take care of itself. Incentivize, don't penalize.

The "shovel ready" stimpak was nice, but we know that most of those jobs won't be permanent. We also know that far more of it went to the dead end of roads and cars than to real, long-term fixes to our energy crisis.

Consider rail, the most viable solution to our oil-guzzling problem. You spent decades starving Amtrak of the funding that would make it truly viable, then doled out a paltry $13 billion stimulus for high-speed rail in America. That's about 2% of what you need to spend on it. Meanwhile, China is spending $556 billion on a rail construction plan that will link nearly all its provincial cities in the next five years. The Shanghai-Beijing link alone is expected to create half a million jobs.

The desire for instant jobs gratification has actually done rail more harm than good. Directing the understaffed Federal Railroad Administration to sort through hundreds of plans and distribute a huge chunk of stimulus money as quickly as possible, before it had a chance to develop its national high-speed rail plan, bogged the agency down, and misdirected its priorities, effectively setting back real progress.

Short-term thinking is what got us into this mess, and it's not going to get us out.

We're all for unleashing the can-do spirit and manufacturing might of America. We're ready to do our part. But we're going to need more than short term support. It's going to take more than a one-year program to restore jobs that we spent three decades sending offshore.

The incentives that Congress has created for renewables and efficiency have always had the fatal flaw of being too short-lived. The resulting boom-and-bust cycles were devastating, and caused America to lose the edge in clean tech. Meanwhile, countries that made 20-year commitments to transforming their energy systems have become the world's leaders in it.

It's also time to tell us the truth about the future of energy. We understand now that we have a real problem which no amount of drilling or military intervention is going to cure. In return we promise that this time, we won't crucify you—like we did President Carter.

The Challenge

Here is our reality:

• Oil production has peaked. Supply will be flattish for the next 2-4 years, then begin a long decline.

• We will lose roughly 25% of our oil supply in 25 years; 50% in 50 years; 100% in 100 years.

• To compensate for the decline of oil with renewables, the world would need to build the equivalent of the entire world's existing renewable energy capacity, every year.

• Since that is impossible, efficiency and a long transition to renewably powered infrastructure must make up the shortfall. This will take 50 years or more to achieve.

• It's likely that we will also see the peaks of natural gas and coal in the next 20 years. Hydropower and nuclear will do little more than hold their current market share.

• By the end of the century, nearly everything will have to be powered by renewably-generated electricity, not liquids or gases.

The cap-and-trade bill's aim to cut 600,000 barrels per day off U.S. oil demand — which is currently 19 million barrels per day (mbpd) — over a period of 10 years is a joke. That's roughly the same amount that U.S. demand has grown over the last year.

We need to cut closer to 2 mbpd in 10 years, 6 mbpd in 20 years, 8 mbpd in 30 years and 10 mbpd in 40 years.

Do you have what it takes to confront this challenge, knowing that some of the solutions will be politically unpopular, impact your constituents back
home, and take many times longer than your term in office to achieve?

Can you do what authoritarian and parliamentary governments elsewhere are already doing?

How to Rebuild America

It's time to come up with a real plan, an honest plan, to rebuild America under a new energy paradigm. One with serious, achievable 30-year and 50-year milestones that will slash our need for fossil fuels.

A plan based on facts and science, not political expediency. One that will create true, long-term wealth, prosperity, resiliency, and self-sufficiency.

We need a Taskforce on Peak Oil and Energy Security to prepare the country for the decline of oil, not sweet lies from the EIA which completely ignore it. As Lester Brown observed, "only Sweden and Iceland actually have anything that remotely resembles a plan to effectively cope with a shrinking supply of oil."

We want to stop spending half a trillion dollars a year for imported oil, and develop a defense strategy for the day when our imports dry up.

We need stable, simple feed-in tariffs, which have been proven successes in Germany, Japan and Spain...not complex, corruptible, ineffectual policies like cap-and-trade or cap-and-tax. And we need them for 30 years, not one.

We want solar on every rooftop, a wind turbine in every field and a micro-hydro turbine in every running stream, wherever viable resources exist. Distributed generation is resilient, and brings value to every community. Along with it, we need distributed power storage, and a smart grid with micro-islanding so we can fall back on our own resources if the grid goes down.

We want a plan to manage our resources for the long term health of our society, like Norway and Saudi Arabia have. Instead of planning to use our remaining oil and gas so we can drive in inefficient cars more cheaply, we should be planning to convert it into the renewables and efficiency gains we'll need in the future.

We want a defensive strategy for our grid with hardening against cyber-attacks.

We need to reverse the long process of globalization and bring manufacturing back home. Instead of a society now dependent on complex, world-spanning, highly optimized supply chains, we need local resiliency, redundancy, and diversity in all the essential sectors: energy, water, food, and security.

Finally, we need energy education at all levels — from the street to the universities, from business to government employees.

Do you have the guts to tell the truth about our energy challenge, and bring America up to speed on what she must do? Or will you wimp out and kick the can down the road a little farther, as your predecessors have, leaving America to learn about it the hard way and pay a price so much higher than it would be today?

Time to Act — Wisely

The days of economic growth may be gone forever for import-dependent developed countries like the United States, unless we downsize, relocalize, and work hard on energy transition.

Green Chip Publisher Jeff Siegel has been hard at work on a major research report that centers on one Canadian province's effort to rid itself of dirty energy, once and for all. You can read all about the BC renewable revolution right here. We might be wise to take a lesson from our neighbors to the North...

What we need now is an honest, long-range strategy. We need to build rail, rip up roads and unwanted, unsustainable housing, replant farmland, massively beef up the electrical grid, and deploy millions of renewable energy generators — the more distributed, the better.

By planning for it now, we could achieve a somewhat orderly transition away from liquid fuels and toward efficient electric transport. We'll still create millions of new jobs, only they'll be the right jobs. Jobs that won't disappear the next time oil spikes.

Congress cannot meet this challenge without teamwork and good sportsmanship. The Greens, the Browns, the Department of Energy, Congress and all of us must work together. It will take sacrifice on all sides.

We sincerely hope you are up to the challenge.

Until next time,

Chris

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Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!

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Comments:

Comment by ITS ME on 2010-03-12
the electromagnetic fields are dangerous to our body and brains.

how to insulate from the electric vehicle's damaging electromagnetic fields ??

shall we be sitting/riding in impossible farraday cages for this protection ??
Comment by Ron Shook on 2010-03-12
Chris,

I am in awe. Everytime you write it gets clearer and cleaner. Don't ever stop!
Comment by Allen Barrette on 2010-03-12
There are very few green forms of mass transit systems here in the US. Most of the Monorail Ideas came around the 70's when Walt Disney had his vision of how the country should be. Walt Disney was a genius. There are profits to be made if the revolution ever hits. There are megga-Watts to be generated through this system as it can be built to put back to the grid. Why shouldn't we build the track. Europe has it,Israel is building, China is next. Little old US just watches our Government play childish games.
Comment by S. Peres on 2010-03-12
Your push to conversion to renewables is based on replacement of the one provided by the decreasing availability of oil. With this approach we'll use up all the remaining hydrocarbons, thus creating a lot more green house gases and pollution. We should instead replace with renewables much, much faster than that based on oil in the ground.
Comment by Ron Tuggle on 2010-03-12
Since Spain is one of the pigs countries what is the relationship between their clean energy program and their economy problems?????????
Comment by Barry Fitzgerald on 2010-03-12
While I agree on the the general tenor of the article, I think it way understates the emergency. On one hand I would argue we will never run out of oil, on the other hand I would argue that will be because it will be priced so far out of reach for burning that it will cease to be a fuel. With high end estimates of only about 40-50B bbls left in the USA to waste (consumption is 8B/yr USA alone), with the USD fleeing overseas to pay for Chinese and oil imports, the end of the USD it close at hand. Once that happens oil will cost Americans $200-$300/bbl to import and the US economy will crater. The time is close at hand for this. It certainly will not wait until 2020 to happen. The Chinese have the advantage of not having to please a stupid and fickle electorate every 2 years, which is why they plan long term. This is a sad narrative for democracy.
Comment by Tim Wilson on 2010-03-12
Why is it that folks in the private sector can put together a vision and a plan whereas gorvernment falls flat on it's face as soon as the elections over? I read a beautiful piece just last week addressing the real estate and mortgage proglems as well. When will we finally figure out that governments NOT the answer?
Comment by Bruce Bardes on 2010-03-12
Right on!
I would add that petroleum-like products produced by vegetable matter (jojoba beans, etc.) and microbes are renewable, and amenable to existing infrastructure. Unlike corn-based ethanol, these substances to not take food cropland out of production.
Comment by Lloyd Slaughter on 2010-03-12
Was this artical actually submitted to Congress and if so who got it and how do we know it will not be buried with all the other concerns of Congress.
I strongly support most of what you have written and I do want to see it get into hands that will make things happen.
Did you consider sending a copy to President Obama?
Comment by Jaime P Imbat on 2010-03-13
As fossil fuel continue to dimish in supply and increase in price and worldwide demand for fossil fuel grows and its impact to the environment warming effect is real,there's no doubt all of the world will need to look for another alternative method to meet the ever growing demand for energy. There can be no doubt that renewable and cleaner energy is the way of the future. America have all of this.The un-top biomass product is only one of the solution to replace the fuel coal. America must lead an example.America must abolish the usage of coal and shift to biomass energy for its bast reserve waste could energize all of its direct burning heavy industries.It can create millions jobs again for american and will once again revive their so called sunset industry ( industries that usage tremendous heat for operation mostly direct burning industries). This one possible solution to re- built America.
Comment by James P Savage III on 2010-03-13
Chris,
Almost perfect. I would only quibble that neither solar nor wind will be useful alternative methods of creating alternate sources of electricity. They will not help solve the mobile energy need.
In my opinion, based on almost forty years of studying and working in energy economics (and being married to an excellent structural geologist-petrologist with over forty years of studying problems which keep on leading her back to the study of geothermal resources in the eastern U.S. geothermal energy is the most likely source of our energy future. The sooner we focus on this resource the sooner the supply problem becomes manageable and the climate change debate becomes moot.
Comment by Chris Nelder on 2010-03-13
@James P Savage:

You won't find a bigger proponent of geothermal energy than me. However, it's off to a very, very slow start and capital to get the projects moving has been very hard to come by. I'm all for it and think it might hold great promise (if nagging concerns about unintended consequences can be resolved), but I wonder how, and how quickly, it can be scaled from here. Best hopes for hot rock!
Comment by Tony Kehrer on 2010-03-13
This article is addressed to Congress, but it ought to be REQUIRED reading by all of Congress, the President and his staff, every governor and staff, and all the citizens of the USA. How can we survive and continue as the current and future leader of the free world if we don't eliminate all the corruption and back-stabbing that is the norm today? I see the people who have an earnest interest in sustainability taking care of themselves first with "micro-islands" of energy generation before the various levels of Government start taking care of us.
Comment by Daniel Ashikian on 2010-03-13
Nothing is inpossible if there is desire to accomplish...
Comment by Richard Medlock on 2010-03-13
Why do you not have a mailing campaign incorporating this very letter so everyone can sign it and send it to Congress People and especially President Obama? I would be the first to sign and forward to Congress and the President!
Comment by Ron Shook on 2010-03-13
Chris,

Per your geothermal comment, here's a typical story that I drew out of Patrick Takahashi, an Hawaiin Huffpost blogger with plenty of geothermal chops and credentials. Read the blog (about algae fuel) if you like, but go to the bottom of the comments for my comment and his reply. It's most illuminating.

BTW, you need a much larger audience. Why not consider becoming becoming a Huffpost Blogger after you blog on GCR or E&C? It seems like it could only drive traffic to your business blogs while getting you the audience you deserve. Huffpost needs someone who is truly business progressive and not just emotionally progressive. You explain the energy nexus far better than anyone else.

Since I assume that you make the decisions feel free to edit or not post this comment.
Comment by Burghermeister on 2010-03-13
You hit squarely when addressing political continuity of purpose, which currently blows around like the wind. Government must get clear long range plan with the interest of our populace...not their political career interests.

As you clearly describe, the big picture solution may involve slaughtering a few sacred cows to reconfigure our society for long term sustainability.
We should jump start the process by starting with societies configured for sustainability (e.g.Germany)as our basis.

The time for clean slate approach was 30 years ago...before the energy price bottom fell out and renewable solutions wilted due to short term thinking and greed.

Now we need faster and bigger efforts to reach long term sustainability. All our fiat currency concerns will pale in comparison to our fate if we continue business as usual. Reality will be a harsh judge if we do not choose the correct path soon.

Government is self serving by nature...so maybe they are not the answer to the problem. We should start first if we hope to reach a good outcome.
Comment by Peter Munk on 2010-03-15
A great letter, a MUST READ for all of us energy spenders, including us in Europa (I am in the Netherlands). In order to continue our incredibly "wealthy" life (compared to all the "have not's")continuous, non-stoppable efforts need to be made to push renewables at all costs. All of these alternatives have a place, whereas geothermal and tidal are the most promising "ever-lasting" engines. And don't forget to take our technology jumps into account: scaled up availability will definitely be boosted by new technology jumps and breakthroughs, making it possible to get the benefits to ALL of us on this planet. High marks for Chris, letter to the president!
Comment by Jack on 2010-03-15
In all of the comments and in the article I did not see one mention of the coming Hydrogen Highway programs that are in progress in California, Washington Dc, and New York. We are now seeing the fifth generation Hydrogen fuel cells from GM, Honda, Toyota, etc. There will be hydrogen fuel cell powered cars available for sale by 2015 in Cakifornia (by law). There is also a test fleet of 8 semi tractor trailors powered by hydrogen fuel cells being started by the Port Authority of California. These are 80,000 lb capacity trucks. The electric motor for this truck develops 536 hp and produces 3,300 lb-ft of torque. Vision Industry claims that the operating cost of these trucks will be 1/3 the cost od diesel powered trucks.

The Chev Volt is designed to be converted to a hydrogen fuel cell powered vehicle. The E-Flex chassis that the Volt uses will be used in other GM electric vehicles. The fuel cell cars from Honda and others is in the 60 to 70 mpg equivalent of a gallon of gasoline.

Fuel cell powered vehicles are coming. What we need are fueling stations. When they finally arrive, we will be able to drive our beloved SUVs.

Also, when $200 dollar oil arrives we will see a reversal of the outflow of jobs from the US to China. The cost of powering those large container ships will sky rocket to over $40,00 dollars per day for bunker oil. This higher cost will offset the cheap labor in China. Jobs will return to the US.
Comment by Tony on 2010-03-15
Great article Chris. It articulates the same problems faced in Australia too plus excellent suggestions on how we should be responding. I want Aussie leaders to read this too!