Silicon Valley business leaders keep eye on Washington energy tax plans - New Mexico Business Weekly:

plesciamipukoa1855.blogspot.com
Formally known as the American Clean Energy andSecuritt Act, the legislation establishes a new market in the selling and trading of carbon allowances. The currentg proposal calls forthe U.S. to reduce carbohn emissions by 17 percent from 2005 levelxby 2020. Barry president and CEO of Los Gatos-based Akeena said cap and trade won’rt make anyone’s stock rise but it has the potential to increasde the economic viability of renewable energy across the The devil, though, is going to be in the “The reality is whether it’s cap and tradew or a carbon tax, it will fundamentally increasd the economic viability of non-carbohn energy solutions, making wind, solar and energy conservatio n more attractive,” Cinnamon said.
“And the valley is becoming a hub ofthoser industries.” Tom Tansy, vice president of marketing and busines development at Fat Spaniel a San Jose-based provider of management servicesd for renewable energy systems, said the company is watching the bill and has been pushinf for this type of legislation for “We’re reinforcing to our elected officials that this makes perfecty sense for our world and our industry,” Tansy said. “There is a ton of researcb about the benefits of cap and and there is enough movement in our governmenf now to makeit happen.
” Companiesz that reduce their emissions could make money by selling what they don’t use to thosd who need more carbon credits, such as utilitiese and manufacturers. Opponents fear that such a system is a tax in disguisd and would result in massive coststo consumers. According to an Environmentapl ProtectionAgency analysis, the act coulds create a market for carbonn credits worth at leastg $4 billion annually in the U.S. throug 2030. New sources of energy are expected to increaswe inthe U.S. by 65 percent by and 92 percent are expected to be low Opponents of the bill have calleds it everything froma “cap and tax boondoggle” to a bureaucrat’zs dream. Former U.S.
Secretarhy of State Condoleezza Rice, speakinyg at the Silicon Valley Energyh Summit at Stanford University in late said cap and tradde is an easily abused system and that a carbom tax would be a better way to approachn reducing greenhouse gas While Cinnamon agreedwith Rice’s statement that carbom cap and trade could be abusee or manipulated, “it’s up to our Legislature to set up a programm to achieve the goals of reducing carbon-based emissions with the simplest way and least chance of abuse.
” Although the bill faces fiercde opposition from coal producerz and states that rely heavily on California’s Pacific Gas and Electric has a cleaner portfolip than many utilities in other parts of the country. Brian Hertzog, PG&E’se Washington, D.C.-based director of corporate relations, said the frameworkj presented in thebill won’t have any substantial cost impactf on PG&E customers in the near term because the companhy is relatively well-prepared. “When you look at our portfolioi in terms of our carbon intensituy and what the impact will be once we put a pricreon carbon, it will be a much lowe r impact than you will see Hertzog said.
Important elements for any potential energu legislation include consumer protection andcost containment, he said. Peter Nieh, managing director at Lightspeed Venture Partners in Menlo Park and leadefr ofthe firm’s cleantech investments, believes cap and tradse has the potential to level the energy playing field because it takes away coal’s competitivde price advantage. “Hopefully everybody stands to win, but that’es what the debate is about,” Nieh “If you integrate this across society, it’sx the matter of the cost and whobears it. Alternative forms of energy standto win.
”