Funding the future of the green economy

Russ Choma

• rchoma@investigativereportingworkshop.org• 202.885.3633• @russchoma

• http://investigativereportingworkshop.org• Founded in Spring 2008 by Charles Lewis and

Wendell Cochran• Bartlett & Steele: “America What Went

Wrong”• Broadband• Frontline: “Flying Cheap”• iLab

• http://investigativereportingworkshop.org/investigations/wind-energy-funds-going-overseas/

• Stimulus money going overseas• Projects built before stimulus• Lobbyists/financiers/Chinese manufacturers

Green Energy: Where are we at?

• We’re not #1. • Much more serious than ever before. • All about the government – very, very

dependent industry.• Policy and incentives.

Green Energy: Where are we at?

• Not as bleak as you might imagine.– Surprisingly bi-partisan.– Big Business.

• Lobbying – they aren’t defenseless anymore.• On the federal level, the biggest news is:– Continued stimulus money– Renewable Energy Standard• 28 states, including California already have some form.

Frame #1: Greenwashing

• “unjustified appropriation of environmental virtue”

• You have to parse the truth from the hype• Just as true in the energy world, particularly

anything involving politics, as in the grocery store.

What is a green job?• The Department of Labor definition: “Green jobs must either be in

industries that produce goods or provide services that benefit the environment or conserve natural resources, or must be jobs in which workers' duties involve making their establishment's production processes more environmentally friendly.”

• Monica Potts, at American Prospect wrote a really fantastic piece about this a few months ago, and she points out the trouble of “green purpose” versus “green execution”: http://www.prospect.org/cs/articles?article=why_call_them_green• Metro driver?• Diesel truck driver?• Diesel truck driver hauling a wind turbine?• Diesel truck driver hauling a wind turbine today, but turbine for

coal plant tomorrow?

Why?

• Hope Swallowed By Hype– The inherent bias is that we all really want

to believe in this…– http://www.youtube.com/watch?v=Q6XF-gc-

4VE

• Sheer size/technical aspects– Dealing with the federal bureaucracy can be

intimidating or overwhelming.– Inclination to accept official or authoritative

sounding word.– Editors don’t want to deal with it

• Inaccurate Data

Green Energy Story In General

• Casual use of “green” – there are many who count nuclear as green energy because it has a low carbon footprint… is it?

• Near automatic acceptance of a narrative of a “green” economic revolution and the miracles it can bring.– Not to say it isn’t possible, but we are very far behind and

on a very slow pace.

• Over-promising:– “To tell someone who has been making auto transmissions

that they can make a gearbox for a wind turbine … is foolish. (The idea that) every automotive stamper can enter the industry – it just isn’t going to happen… it's not for everybody.” – John Colm, president GLWN

Confusion = good for reporters

– On the one hand, it means you really need to consider every statement about “green” with a critical eye.

– On the other hand, there are some very good stories that need to be explored… Even if Judy Cleaves isn’t representative of a sustainable positive economic trend, it doesn’t mean it isn’t an intriguing story – it just needs to be investigated.

Frame #2: Green Jobs & Polar Bears

• What is it we’re trying to accomplish?– Environmental concerns?– Economic concerns?

• Don’t always go well together• Politically convenient, but it’s an alliance that

is beginning to fray

Jerry Brown

• “Clean Energy Jobs Plan”• “As we face the devastation to our job market

caused by the mortgage meltdown and the Wall Street debacle, we need to find a way to get California working again. Investing in clean energy and increasing efficiency are central elements of rebuilding our economy. It will create hundreds of thousands of jobs, build the businesses of the 21st century, increase energy independence, and protect public health.”

Federal Incentives

• Stimulus dollars still flowing• Section 1603 grants

– 30 percent of the cost of building– After-the-fact, but no strings attached, very quick direct-

deposit of cash– $5.9 billion ($171 million in the month of January)– 1,878 projects– 259 projects/$325.8 million in California alone

• All 1603 grants: http://bit.ly/All1603• California 1603 grants: http://bit.ly/California1603

ORNI 18 LLC

• Geothermal plant in Brawley, Calif. (Imperial Valley)

• $108 million grant in August 2010 • At least a $360 million project• Largest geothermal project• Built by a Bakersfield, Calif. Company for Ormat:

http://www.pclindustrialservices.com/projects/Archived/6210069/index.aspx

• 50 megawatt capacity, operating far below

Section 1603

• Fantastic resource for finding stories• Bloom Box• Trends– Big Box Stores: http://bit.ly/bigboxstores– Many more trends:• http://www.slideshare.net/BizJournalism/russ-choma-s

timulus-covering-the-green-economy

48c Tax Credits (in brief)

• Actual tax credit, announced in January

• Competitive selection• $2.3 billion, at least 38

states, 185 projects• Matched by up to

$5.4 billion• http://bit.ly/48cTaxCr

editList• Many got some

coverage, but not always good.

State Amount

California $235,500,989

Michigan $225,801,351

Tennessee $200,390,169

Ohio $124,981,680

Connecticut $120,911,520

Oregon $87,243,801

Colorado $75,239,310

Texas $68,504,131

South Carolina $53,653,500

Kentucky $53,364,900

Other Stimulus To Follow

• DOE’s list of incentive programs: http://www.energy.gov/recovery/renewablefunding.htm

• Spreadsheet of all: http://bit.ly/AllEnergyStimulus– Clean coal?– Research?– Energy Efficiency Block Grant Program• At least a dozen Native American groups

Local Incentives• Many of these projects hinge on getting more help – beyond the

stimulus.• Database of State Incentives for Renewables & Efficiency:

http://www.dsireusa.org/• Pennsylvania model:

– State focused on supply chain.– Feb. 19, 2010, state gave out $22.8 million in federal stimulus dollars to

three wind farms … if they bought Gamesa turbines.• What’s your state/city doing – is it competitive? Balance benefits

to company with benefits to residents? Are there guarantees?• Local incentives

– Attracting business– Using government buying power

Renewable Portfolio Standard

• http://www.cpuc.ca.gov/PUC/energy/Renewables/index.htm

• 20 percent by 2010, and (theoretically) 33 percent by 2020

• Mandates a market, huge driver• Great source of information:– Lots of documentation– Status of RPP projects: http://bit.ly/RPS-Status– In-state vs. out-of-state

Green Small Businesses

• Local incentives attract local businesses• Wind and geothermal are big, solar is small– Small is growing– 76 percent of Section 1603 has gone to solar– 83 percent of the projects in California are less

than $1 million (total project cost $3 million)

Tip: Don’t Skip the Background Check

• Lots of money attracts people with checkered pasts and no experience.

• Atlantic City Press 1/2/2010: “Financial incentives bring renewable energy business- but not experience.”

• Secretary of State Websites, corporation look-ups– Brief history of business, key executives, ownership, subsidiaries, linked

companies, etc.

• Fresh Air Energy 1 LLC, EcoPlexus• ProPublica: “How to run a background check on companies awarded

stimulus contracts”– Criminal/Tax issues– Bans on contracting– Workplace safety records– Environmental record– Lobbying records– http

://www.propublica.org/feature/how-to-run-a-background-check-on-companies-awarded-stimulus-contracts-520

Other Resources

• Energy Information Administration: http://www.eia.gov/electricity/data.cfm– Profile of every power plant, fuel, production, energy

used/energy produced, etc.» http://www.eia.doe.gov/cneaf/electricity/page/eia906_9

20.html

• FERC: Every transaction, made by every power plant: – http://www.ferc.gov/docs-filing/eqr/data.asp

• California PUC: http://www.cpuc.ca.gov/puc/• Law firms

Stimulus Resources

• Recovery.gov• ProPublica’s “Eye On The Stimulus”:

http://www.propublica.org/ion/stimulus• USASpending.gov • Renewable funding:

http://www.energy.gov/recovery/renewablefunding.htm• State and local programs:

http://www.energy.gov/recovery/statefunding.htm• “Show Me The Money; The Law of the Stimulus”: One of many

primers to help fill in the background on all the funding opportunities and who can go for them. http://www.stoel.com/ShowMeTheMoney

Call Me

• @Investigative Reporting Workshop: 202.885.3633

• rchoma@investigativereportingworkshop.org• Twitter: russchoma• Website: www.russchoma.com