Policy: How do we get to 20% of electricity from wind in 20 years?

[FogerRox]

I'm hoping many of the policy geeks @ Kos will stop by. As an initial national goal I've been really liking the idea that we can get 20% of our electricity from wind and 20% from solar in 20 yrs. We have got to expand Americas energy portfolio, and time is a wasting, every time I look over at the Alberta Tar sands project, its getting bigger and uglier.

There seem to be 4 different policy choices to be made if we want to kick start wind power. Tax policy to improve capital flow, carbon pricing, Federally guaranteed loans, and National Mandates. I really want to use tax policy, not just to install gigawatts of wind energy, but to make the turbines in the US, creating the largest number jobs in the US as possible.


I've gone over many White Papers available on the net, concerning solar and wind, one thing seems to a constant when it come to US groups advocating for wind and solar: they want to build turbines and solar panels in the US. For some reason Job creation is all the rage recently (Another diary).

In 2008 the US installed more Wind capacity than any other country, over 8,300 Mw. But in 2007 only 44.8% of the US market was installed by a US company. How do we get capital interested in building factories in the US that make solar panels and wind turbines?

44.8% of market: http://www.usitc.gov/publications/332/Executive_Briefings/USITC_EB_WindTurbines_David.pdf

If we use a National mandate for 20% in 20 yrs, it might have to include a made in America component.

If use a price for carbon emissions, well those factories that make solar panels and wind turbines need power. Is that where the trading comes in?

Federally guaranteed loans, to wind turbine manufacturers? What about start ups? New Capital to the market will have to apply, GE is the largest wind turbine manufacturer in the US. If a handful of uber rich types want to pool 30 billion bucks, form a corporation to compete against GE in the wind turbine market, FINE. Wanna do the right thing for America? Great, maybe we should throw you a bone for that....how about a nice juicy tax break? Cause you might have trouble getting one of those loans.

Tax Policy, we can tax the top rate at 70% and offer tax breaks down to as far as 35% to build those factories we want (emerging tech and markets). I know that reeks of supply side economics, but its also what used to be called Industrial Policy, going back to Sidney Hillman, the AFL, and FDR's Kitchen Cabinet. Corporate taxes, raise the Corporate rate significantly and give breaks to incentivize investment in emerging tech and markets like wind and solar. Should we match the Cap Gains rate to the Corporate rate?

But, why should I build a factory to make solar or wind, when I can make far more speculating on commodities?

Does a National Mandate of 20% in 20 years move capital from speculation to factories?

Is a price on carbon emissions going to curb speculation in options futures, commodities or derivatives?

Federally guaranteed loans for renewable energy are not going to have much effect on speculation either.

But if you're uber rich and have a few billion, and your account tells you that with the tax changes next year your gains from commodities speculation means your gonna get killed tax wise, BUT, there is a way out.....
... you can avoid those tax increases, and do just as well as you did in speculation, by building factories that make solar panels or wind turbines, or AC to DC inverter stations, and cable for HVDC trunklines, above ground and offshore.

I'm telling you, as your accountant, you'll be putting yourself in a much better position.

20% in 20 years for solar and wind mean directly creating about a million jobs, Smartgrid would add about another 450k jobs. If we produce enough to export, we can expect 500k to a million more jobs. 2.5 million jobs directly created by the simple choice of setting 20% in 20 yrs as a national goal.

Energy conservation improvements to residential and commercial buildings, start with an additional 500k jobs. Maybe a million.

Revitalize the Manufacturing sector, 2 million jobs created over 10 years.

Spend 5% to 6% of GDP on infrastructure, in a 13 trillion dollar economy start off at 650 billion a year, and tally up another 1.5 to 2 million jobs.

I believe this country needs to spend at least 10% of GDP on jobs stimulus every year for 5 years. We can fix the economy, expand Americas Energy portfolio, reduce carbon emissions, more jobs means more FICA being paid into Social Security, improving the chance that SS will be good thru 2050, or 2065, or even thru 2085. We get to reduce the deficit because an improved economy means more Federal tax revenue. Good jobs means reversing wage disparity so that working class families can better take are of their own. Increasing taxes on the wealthy can lower the tax burden on working class families, engaging them in the economy, instead of seeing these families taxed out of the economy.

ORIGINALLY POSTED TO KEYNESIAN KOSSACKS ON SAT AUG 06, 2011 AT 06:56 PM EDT.

ALSO REPUBLISHED BY KOSOWATT, NUCLEAR FREE DK, PROGRESSIVE POLICY ZONE, INCOME INEQUALITY KOS, AND COMMUNITY SPOTLIGHT.