Cooler Planet

Senator John McCain is making environmental news headlines again for taking a stance on climate change and distancing himself from the Bush Administration.  In recent days, the presumptive Republican presidential candidate has campaigned in the Pacific Northwest touting his pro-environment commitment and agenda.  McCain’s commitment to fight global warming differs from current Administration policy and from many other standard-bearing Republican Party agendas.

For McCain, the cornerstone of his environmental plan mandates a “cap and trade” system.  McCain argues that establishing a cap on carbon emissions and setting a national goal to reduce overall carbon emissions to 60 percent below 1990 levels by 2050 is a realistic, and effective way to tackle climate change.  (In contrast, both Barak Obama and Hillary Clinton have said they would set a goal to reduce overall carbon emissions to 80 percent of 1990 levels by mid-century.)

In McCain’s analysis, establishing a national standard for tradable carbon emission permits will allow the so called “good carbon emitters” to offset the “bad” ones.  Furthermore, a nationwide cap and trade system would provide the necessary incentives to promote growth of solar, wind, and other renewable energy industries.  McCain does not offer specific policy or market tools for solar or wind technologies because he is confident that a cap and trade system would sufficiently bolster those and other similar renewable energy markets.  Nor has McCain outlined a more detailed plan on how his cap and trade system would work or what industries and activities would be targeted.

For McCain, alternative energy means energy independence.  As we’ve mentioned in previous posts, of the three current presidential frontrunners, John McCain most vocally favors reinvesting in nuclear power.  He views nuclear energy as the most viable technology to meet the nation’s electricity demands.  In his speech he made in Oregon (and posted on his website), McCain views the nexus among energy, the environment, and national security as one of the most important issues facing our nation.   

McCain’s voting record, however, leaves critics dubious about his intentions and commitment toward the environment.  The League of Conservation Voters who created a National Environmental Scorecard gives McCain a lifetime rating of 24 percent for his previous voting record regarding the environment.  For this year’s legislative session, McCain gets a Zero; thus far he’s been absent for any of the environmentally related bills that have come up for a vote.  

Critics point to inconsistencies in McCain’s voting record.  As an article in Monday’s Washington Post points out, McCain has embraced some environmental provisions, yet shunted others not so seemingly different from the ones he supports.  

Supporters contend that McCain, as a political maverick, has consistently distinguished himself from conventional Republicans.  They cite that McCain was one of the first in Congress to acknowledge climate change and introduce legislation addressing the issue.   

He’s certainly savvy when it comes to renewable energy photo-ops.  In February McCain stood in front of a solar photovoltaic manufacturer when Governor Arnold Schwarzenegger announced his endorsement for the Senator.  On Monday, McCain restated his environmental policy at a wind power company in Oregon. Time may reveal whether these press events truly signify McCain’s intentions toward renewable energy.

Home Power magazine named ten top solar states.  We’ve talked about nine of them.  The final state that won the magazine’s admiration is Oregon (which happens to be the home state of the magazine). 

Oregon rightly deserves the accolade.  The State has long supported solar energy and has offered renewable energy tax credits since President Jimmy Carter famously (or infamously) encouraged energy conservation at a national scale in 1979.

Oregon offers attractive tax credits to residents and businesses for both solar electric and solar hot water systems.  For homeowners, once a qualifying PV system is installed, residents can receive $3.00 per watt for systems that are at least 200 watts or more.  The State caps its credit at $6,000, and only $1,500 can be claimed each year.  Qualifying solar hot water systems can earn property owners $0.60 per kilowatt-hour saved, up to $1,500, or 50 percent of the total system cost, whichever is greater. 

Net metering laws apply as well, allowing residents to recoup credit for any net excess energy they generate.  At the end of the annual period, unused credits are either credited to the customer or can be granted to low-income assistance programs.

Not only does Oregon offer its residents incentives for solar electric and hot water, but also offers tax credits for other types of solar heating systems.  Homeowners who install solar pool hot water systems can obtain $0.15 per kilowatt-hour saved (up to $1,500) and up to 50 percent of the system’s total cost.  Additionally, the State recognizes the value of taking advantage of passive or active solar technologies for space heating and offers similar types of tax credits.

Oregon’s commitment to renewable energy does not stop there.  Similarly generous incentives are available to businesses who install solar systems and to manufacturers to encourage growth of the renewable energy industry.  In February 2008, for example, the Oregon House unanimously approved a measure that would increase its tax credits for manufacturers of renewable energy equipment from the current $10 million to nearly $100 million by 2013.

The Oregon Legislature has consistently passed bills to advance renewable energy.  Like other “super solar states,” in 2007 Oregon passed a law that requires its largest utilities to acquire 25 percent of its energy come from renewable energy sources by 2025; smaller utilities must get 5 – 10 percent of the energy from renewable sources by that year as well.  Another state law mandates that any new state-funded public building must earmark 1.5 percent of the budget and use it to install solar technology in the building.

Oregon law does not stop there.  State property tax law dictates that any added value from a solar or other qualifying renewable energy system cannot be included in the assessment of the property’s value for property tax purposes.  And, like Minnesota, Oregon law allows municipalities to create solar access laws so that solar access to south-facing sides is protected from potential obstructions.

The State’s attractive incentives are working.  Solar World, a manufacturer of solar photovoltaic systems is moving one of its manufacturing facilities from Vancouver, Washington to Hillsboro, Oregon where its expected output will reach 500 megawatts by 2009. 

Large businesses within the state are investing in solar.  A Pepsi-Cola bottling plant in Eugene, Oregon opened its recently remodeled site in Eugene, Oregon earlier this year.  The facility includes a one-plus acre solar PV rooftop array that should generate 10 million kilowatt-hours of electricity over its expected lifetime of 35-years – enough to power approximately 21 Eugene homes during that same time period.  Pepsi-Cola also upgraded its lighting system and installed skylights, the company plans to save roughly 200,000 kilowatt hours of electricity each year from its renovations.  

In addition to the State of Oregon incentives, the government sanctioned, non-profit Energy Trust of Oregon provides residents throughout most of the Oregon with additional monetary incentives aimed at solar photovoltaic and solar hot water systems.  For information about the incentives Energy Trust provides, follow this link:  http://www.energytrust.org/solar/residential/provide.html.

Oregon has become a hotbed for green building and solar energy initiatives.  No wonder Home Power magazine recognized the state for its efforts.  Oregon’s plethora of integrated incentives makes it one of the nation’s leading states for advancing viable and effective solar energy policies and strategies today.