Moving Beyond Copenhagen: Cap and Trade Versus Carbon Tax
A coalition of the environmental and business leaders appear committed to passing a new “cap-and-trade” system through Congress, designed to somehow protect the world from the impending doom of climate change. While the focus of the world this past week was on Copenhagen, the ball is, for all practical purposes, still in the court of the U.S. Congress.
Even with the introduction of the new Kerry-Leiberman-Graham legislation during Copenhagen, a surprisingly broad set of interests are beginning to emerge on behalf of fresh alternatives that may include incentives for renewables, EPA regulations and maybe even a novel market-based approach: a carbon fee that is rebated back to the public.
Organizations as diverse as Sierra Club and Chevron are quietly contemplating what a “Plan B” might include, and how it could yield broader political support, and more environmental success, than today’s competing House and Senate omnibus “cap-and-trade” bills.
The Microgrid Revolution...
Microgrids have a long history. In fact, Thomas Edison’s first power plant constructed in 1882 – the Manhattan Pearl Street Station – was essentially a microgrid since our centralized grid was not yet established. By 1886, Edison’s firm had installed 58 Direct Current (DC) microgrids.
Shortly thereafter, however, the evolution of the electric services industry evolved to a state-regulated monopoly market, taking away incentives for microgrid developments.
Today, however, a variety of trends are converging to create promising markets for microgrids, particularly in the U.S. it has been become increasingly clear that the fundamental architecture of today’s electricity grid based on the idea of a top-down system predicated on unidirectional energy flows is now obsolete. With the election of Barack Obama as President of the U.S. in 2008, and the subsequent passage of government stimulus funding packages in 2009 to respond to the economic recession, significant new federal funds are being earmarked for the “smart grid,” positioning the U.S. as the global market leader in microgrids.
If I were the new CEO of Chevron
If I were the new CEO of Chevron, I would stop listening to the lawyers and bring the engineers into the boardroom to develop a strategy to invest a good portion of last year’s record $24 billion profit into inventing solutions to the adverse environmental and social impacts of the company’s operations around the globe.
New Chevron CEO John Watson has inherited a mess from outgoing CEO David O’ Reilly – but with challenge comes opportunity. It is clear that Chevron’s historical reliance upon litigation to get what it wants is being eclipsed by new activist strategies that have effectively boxed Chevron into a corner.
Locavore, Locavolt & Local Land
In my new book, Introduction to Energy in California, I describe the history of energy in California and highlight how West Marin could serve as a potential model for taking charge of our own energy future. Learn how sustainable microgrids can bring community back into the energy equation, answering challenges on both environmental and economic fronts.
On Sunday, September 13th, come to the Dance Palace in Point Reyes Station and learn about the movement to transition communities from dependence on fossil fuels to a local food, local energy, and local farm future...and then visit McEvoy Olive Ranch near Petaluma.
Bernie Stephen of Transition West Marin will describe how communities can create resilience and reduce carbon emissions in response to peak oil and climate change.
New Book from University of California Press!
My fourth book on energy and environmental issues was just released by the University of California Press. Entitled Introduction to Energy in California, this 400-page plus book is unlike any of my previous books: Reaping The Wind; Reinventing Electric Utilities and In Search of Environmental Excellence.
Why is it different?
First off, I was not only the author, but the Art Program manager. What that means is that I was responsible for selecting and gaining permission to use over 90 photographs, 42 line illustrations, 18 maps and 8 Tables. The book features historical photos, many of them from Pacific Gas & Electric and Chevron, featuring early hydroelectric innovations in the Sierra Nevada foothills as well as early oil development in southern California.
The other aspect that is different is that this is a science-based reference book. No need to preach to the choir. Let's try to look at energy in a comprehensive and non-politicized way.The theme that runs through the book is that California has always gone out on a limb and embraced nearly every energy source with wild-eyed enthusiasm.

