My remarks to the NC DOE on the Clean Power Plan (in 2016)

In 2016, the Republican led North Carolina Department of Energy permitted citizens to speak at a conference as they were suing the Obama administration to not develop a Clean Power Plan in response to the Paris Climate Change Accord. Some of this is dated, but is still appropriate as we have moved further down the path of renewables the production cost has become even more favorable and we have passed a tipping point.

Last month, I was given the opportunity to speak to representatives of the North Carolina’s Department of Energy and Natural Resources at a public hearing. Our state is included in law suit against the EPA having the authority to require the states to develop a Clean Power Plan to reduce emissions. In companion to this suit, our state leaders developed a poor attempt, in my view, at addressing the required plan.

Here are my remarks which had to be limited to three minutes.

My name is Keith Wilson. I am an Independent voter and NC taxpayer.

I am speaking to you as both a tree hugger and business person.

I am disappointed in our state’s position on the Clean Power Plan and advocate moving the ball further down the path of renewable energy than the plan is required to do.

I say this as per the 2015 Global Risks Report prepared by the World Economic Forum, the two greatest risks noted by member organizations over the next 10 years are:

(1) Global Water Crisis and

(2) Failure to act on climate change

The need to move to renewable energy is more than a climate change issue, it is a water issue. As noted by the excellent Charlotte Observer series last month, we have global, national and regional water crisis, which will only be made worse by climate change.

Water is the new oil.

In the Observer series, it noted that Duke Energy loses about 1%- 2% of water on a daily basis when creating power from the Catawba River using fossil fuel and nuclear energy. The water is lost through dissipated steam.

At a conference called “Our Water: An Uncertain Future” last month, the director of Duke’s Water Strategy noted that Duke Energy includes climate change impact in their water projection models. He noted that they expect to lose an additional 11% of reservoir water due to more evaporation from climate change.

Per Duke’s projections, the Catawba River cannot support the growth in the Metro Charlotte area without change.

The move from water intensive fossil fuel and nuclear energy to renewable energy is key, as solar and wind energy need not be water reliant to create power.

Man-influenced climate change will only make our water problem worse.

From a business standpoint, there are several reasons why the move to renewable energy is key.

The fossil fuel industry likes to tout jobs and impact on people in poverty as drawbacks to the move. These are shortsighted reasons, as solar and wind energy jobs are growing like gangbusters with double digit growth.  On the cost of energy being higher, that is also shortsighted as well and is using the wrong equation.

The cost of production of renewables continues to fall and wind energy is the most cost effective source in the UK and Germany, right now. But, that is not the right equation.

A total cost equation will look at the present value cost of production,

  • plus healthcare,
  • plus environmental degradation,
  • plus water loss,
  • plus litigation,
  • plus maintenance of coal ash sites.

When these total costs are compared, my guess is the result will easily favor renewable energy.

Further, companies like Apple, Facebook and Google are relocating power intensive data centers to NC due to our solar energy success and incentives. These companies are attracted to innovation.

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So, the tree hugger in me says you better be concerned about our water and what climate change will do to it.

The business person in me says, the better bet is on renewables.

Let me close that this is not just a progressive issue. Per a ClearPath survey of conservative voters, 75% favor a move down the path of renewable energy.

It is time our state and national leaders caught on to this desire. My strong recommendation is to approve the Clean Power Plan and stop wasting taxpayer money on the shortsighted EPA lawsuit.

The Fifth Risk – a must read by all legislators

Michael Lewis has authored several books that lay out a practical lens of major issues. They include “The Big Short,” “Moneyball,” “Liar’s Poker,” “The Blind Side,” and “The Undoing Project.” His latest book is called “The Fifth Risk,” and it is as much historical as it is alarming of missed risks.

The book is based on his review of largely unread briefing materials that were prepared for the incoming Trump administration by officials describing what the various departments do, their concerns, their successes, etc. Since the president was surprised he won the election and had fired his transition manager, Chris Christie, candidates to take over the various departments were not identified, much less in place. So, materials were not read and meetings went unattended. Lewis even interviewed people that prepared such reports after he read the non-confidential portions of the reports. They were more than happy to share their stories.

The above paragraph is not made to be political, it just presents a fact that the folks who eventually took over these departments missed a huge opportunity to learn how things worked from the people who oversaw the departments. As a result, our country is at risk of things that the leaders of many departments do not fully understand. And, what makes it more concerning, is many never took the time to understand or were even qualified to do so. The DOE was previously run by a nuclear physicist. After the election, until he recently resigned, it was run by a former governor without a science degree.

The book is actually a quick read, much shorter than it could have been. Yet, it is something every legislator should read, as they likely have a poor understanding of the risks at hand and what is not being done.

Lewis summarizes the general concerns of a key contributor from the Department of Energy, who greatly worries about things like exposure risk to radioactive waste product from nuclear energy that still exists and attacks on our energy production and distribution system, by saying:

The fifth risk is “the risk society runs when it falls into the habit of responding to long-term risk with short-term solutions. ‘Program management’ is not just program management. ‘Program management’ is the existential threat that you never really imagine as a risk.”

And, later he identifies the not knowing risk. “Here is where the Trump administration’s willful ignorance plays a role. If your ambition is to maximize short-term gain without the regard to the long-term cost, you are better off not knowing the cost. If you want to preserve your personal immunity to the hard problems, it’s better never to really understand those problems.”

To this point, the DOE contributor said when he saw the budget, “All the risks are science-based. You can’t gut science. If you do, you are hurting the country. If you gut the core competency of the DOE, you gut the country.”

There are so many things that these various departments do that benefit American people and industry that are misunderstood or simply not known. Could they be more efficient? Of course, and that should be the goal of any administration. Yet, these hard working people, scientists, engineers, Ph.Ds, etc. do yeomen’s work, and are ridiculed by some as the “deep state.” After speaking with many of these people, Lewis concludes the deep state are folks that actually know what they are talking about. They do not boast on themselves and get little notoriety.

One example is of a Coast Guard scientist who is the foremost authority on where people who fall over board might drift. He is actually acclaimed in other countries more than he is here, because he did not brag on his efforts. Previous to his efforts, falling over board usually meant the death of the person. Yet, he studied patterns, currents, sizes of people, what were they wearing, and other data points over years, even going on board as part of search and rescue missions. He developed an easier to use software tool that heightened the Coast Guard’s ability to pin point people. And, it is successful, but he is now retired with no obvious successor.

But, let me leave you with a final example, one of many. A business leader in rural America was bragging on getting a loan all on his own. The bank had a press conference where the leader was going to say this is how it should be done, with no government involvement. When someone from the Department of Agriculture introduced herself, he asked “what are you doing here?” She said, “we are the ones who lent you the money you are talking about.” He had no idea. Most Americans don’t, even legislators. After one complained about the Department of Agriculture sucking, she told the state official something he did not know, we invested more than $1 billion in your state last year.

I have written before about “The Invisibles.” These are the folks who show up at work each day and make things run well, without bringing attention to themselves. There are numerous examples in this book. And, when they are not allowed to do the things that are needed, we are the ones who suffer.

Let’s focus on jobs – promote renewable energy

Nadja Popovich of The New York Times penned a story this week called “Today’s energy jobs are in solar, not coal.” Using 2016 numbers released by the US Department of Energy in January, the following data points are revealed per Popovich:

  • 1.9 million Americans work in the field of power creation (including generation, mining and other fuel extraction activities).
  • More than 373,000 Americans work full or part-time in solar energy, with 260,000 of them spending over 70% of their time on solar projects.
  • Wind energy jobs topped 100,000 for the first time in 2016.
  • The coal industry jobs have fallen to 160,000 Americans nationwide, with only 54,000 in coal mining, a significant reduction which has occurred over time with the advent of natural gas due to fracking and decreasing prices in renewables.
  • It should be noted there are another 2.3 million jobs in energy transmission, storage and distribution, including more than 900,000 gas station workers and related retail jobs.
  • If non-traditional energy workers are added, those installing energy-efficient products, the number swells in total to 6.4 million Americans.

Solar jobs have been growing at an annual double-digit rate for several years and will continue to do so with the falling prices. A report of a couple of years ago, noted that wind energy jobs could grow to 500,000 by 2030, if we invest appropriately. It should be noted that Warren Buffett and oil tycoon T. Boone Pickens are big proponents of wind energy, with the Buffett investing in GE who produces wind turbines and Pickens promoting wind energy in the plain states for several years. Iowa gets over a 1/3 of its electricity and oil-rich Texas gets 11% of its electricity from wind energy, e.g.

So, the next time you discuss the need for moving forward with renewable energy and someone counters your argument with a remark about jobs, please remember these real numbers released by the DOE. The best I can ascertain, is the DOE is not in the business of fake news. And, the final question to ask is where do you think investors are going to place their bets – on a retrenching industry or a growing one?