Cabbage Patch iPad

26 04 2011

The thing that pushed me over the edge this week was a fine blog  post by Elisa Wood.  My comment was that Gavin Newsom’s list of jobs created by resources including coal, nuclear, wind, solar, and EE, does not include return on investment.  Only EE has return on investment for the end user.  All other sources cost the end user, not save the end user money.  But this is not the topic of the day.

I am not a tech geek.  I just want things that are stable, reliable, and relatively fast and snappy.  I will pay for it.  I have long been out of college and therefore, time is scarcer than money so just give me something “fast” and reliable and I’ll gladly pay for it.

I also do not need, and in fact I do not want the latest and greatest thing.  Take Microsoft, which hasn’t had any substantial improvement to the Office suite for ten years – since they added the right-click menus.  It has become more stable and reliable in the past 15 years as reports we wrote used to become corrupted out of the blue and you couldn’t open them ever again.  Congratulations for this achievement!

I am not a Microsoft basher but I don’t think they have innovated (if I may use that as a verb) hardly a single thing.  Operating systems with graphical interfaces, mice, spreadsheets, word processors, web browsers, databases, and you name it; they didn’t develop any of these things and they comprise their bulk of gazillions in revenue and profit.  Microsoft is good at taking others’ ideas and packaging and marketing them, creating monopolies and crushing any competitors, or simply buying them out.  Like I said, I’m no Microsoft basher.

Apple on the other hand has been a major innovator with the Mac, Mac operating system, the iPod, and then really, really with the iPhone.  When the iPhone first came out, I thought “what is the big deal?”  It doesn’t even have buttons.  Then I experienced it as we work with clients who use them exclusively.  I look at my Microsoft kludge of a phone (again Microsoft following, not innovating) and think, wow, the iPhone is about 100x better.  (I now have a Motorola Droid which in many ways is better than the iPhone if you ask me, so my tech world is whole again)

At an AESP conference, I was fortunate to win an iPod touch, which is essentially the iPhone without the phone.  Other AESP-drawing winners of GPSs wanted to trade and I said get lost.  I’m giving this to my wife to replace her crappy iPod wannabee.  The iPod touch gave me hands-on experience with greatness.

Apple has built such a cult following that if they introduced a turntable, the iTable, people would camp out for a week just to be the first to get their hands on one of these 1960s makeovers.  They have already done this – it’s called the iPad.  It’s a ridiculous widget.  Why is it ridiculous, Jeff?

First, because it isn’t a serious business tool (yes, I will get to the consumer thing later).  Thinking we could use one of these possibly for field work surveys, I asked one of our iEverything business partners what he thought of this.  He said, no, it isn’t going to do well with spreadsheets or databases, if they can even be used at all.  It doesn’t even have ports like a USB connection for goodness sake.

Second, I was on a plane headed for somewhere sitting next to a guy watching a movie on an iPad.  I enlightened him by saying, “You know, they make these things that have a convenient platform to prop the screen up reliably for hands free movie watching.  You could just sit it on your tray and sit back and enjoy the movie.  It’s called a laptop computer.”

It’s a large version of a phone without the phone.  It’s a small computer with no capability.

Perhaps most ridiculous, I recall an article in The Wall Street Journal covering the various ways iPad owners can transport their iPads.  One solution was like a fanny pack with a big pouch in which you would carry the iPad along the small of your back.  Good grief!  Don’t use a computer bag.  That would reveal the stupidity of this device.

Conclusion: It’s a clunky, slippery, doohickey that is too large for your pocket, to small for a computer, and you can do little productive work with it.  The second conclusion is, Steve Jobs is a genius for generating a brand that will get people to buy anything with an i in front of it, by the hundreds of millions.

How do we do this with energy efficiency?  It has to have a strong element of “look at how great and cool I am”.  I suggest a web-based application that shows how rich you are becoming, in real time, as a result of your EE genius.  In one pane it would mimic a bank teller slapping down dollar bills as you stuff them in your wallet.  Once you accumulate a bulging wallet full of bills you trade them in for a hundred dollar bill.  You let the hundreds pile up on the counter.  After a while you swap currency for gold bullion and that starts stacking up on the counter.

In another pane you have a lot full of Prius and electric vehicles with dead batteries in front of a big box store called “Renewables R Us”.  As you accumulate enough savings and equivalent emissions of these cars / energy sources, King Kong circa 1976 walks onto the scene thumping his chest and roaring.  He picks up an electric vehicle and tucks it under his harm like a football and stomps off, maybe stepping on a couple screaming shoppers making their way to the store as they drop their iPads.  This would represent the equivalent Priuses taken off the road. Next time, Kong comes by but this time tripping on a Prius and falling face first crushing a dozen Nissan Leafs.  After doing the ceremonial thump and roar, he rips a solar panel off the roof and throws it across town, like the subway cars in the movie… followed by stomping off and squashing a few more shoppers.

The app should be exclusive to new chosen makes and models of devices and they are provided by the EE program as part of the incentive.  The devices are sleek and unique so everyone knows, that guy is cool and smart.  The devices would have functionality of iPods, phones, and laptops so they aren’t just a worthless status symbol.

So the next time you are sitting at the gate or in cattle class, your device is screaming – “look at how cool I am” while the inferior, insecure me-too stooge is gawking on, thinking, “Man that guy has some device!”

Copyright 2011

Tidbits

As gasoline prices are clicking past $4 across the country, citizens are crying to the feds to do something.  So what are both the President and Speaker talking about?  Eliminate subsidies for oil companies – as though this will bring down prices!  Again, politics rather than logic rule in Washington.  Prices are high and therefore the oil companies must be punished and somehow reducing profit will lower prices.  Good Grief! – popular with the lemmings but thinkers know better.

P.S.  I believe the “subsidies” they are talking about are tax breaks for depleting wells, which sounds to me like depreciation for assets of depleting value – like our office furniture and computers.  Anyway, let me say that subsidies should go, across the board, but office furniture and computers are the price of doing business and obviously affect profit so depreciation isn’t a subsidy, unless you’re a political hack.

written by Jeffrey L. Ihnen, P.E., LEED AP





B.A.N.A.N.A.S. – Go Bananas

12 04 2011

This was a dopey high school cheer of my older brother’s and sister’s sporting days in high school.  “Go bananas.  B-A-N-A-N-A-S.  Go bananas!”  How lame.  What does it mean?  I much preferred, “Watermelon.  Watermelon.  Watermelon rind.  Look at the scoreboard and see who’s behind.  You! You! You! You!”  This was always led by the rowdy crowd after the opposing team’s cheerleaders would do a dopey skit, like the banana thing.

One of the first posts I wrote was Renewable NIMBY, that people purport to be in favor of renewable energy unless they have to look at it or pay for it.  In case you’ve been cryogenically frozen since the 1950s, NIMBY means “not in my back yard”.  People really like renewable energy so long as somebody else pays for it and it’s installed in North Dakota, where not so incidentally citizens are experiencing a booming economy by exploiting energy production, mostly on private land.

Last week I became mentally unglued upon reading about environmentalists blocking a paper mill in Port Angeles, Washington, from using wood waste for its strong appetite for thermal energy (steam).  Nippon Paper has reduced its fossil fuel consumption by 88% and virtually eliminated the need for petroleum since 2000.  What a smashing success.  This is beyond President Obama’s wildest dreams for clean energy, reducing carbon dioxide emissions and dependence on imported energy.  Yet environmental groups including the Sierra Club are fighting to shut it down and send 200-plus decent people to the unemployment lines.

Do you consider yourself an environmentalist?  If you’re like me, the answer is, yes but I’m not in the whacko, nut-job category like these Port Angeles protesters are.

Port Angeles is of interest to me as I have visited there several times and I like it.  It’s the last substantial town on the Olympic Peninsula on the way to the Pacific Ocean.  It sits at the base of the Olympic Mountains and rain forests and other fantastic natural beauteous places abound all within an easy day-trip.  It has a fair amount of tourism, but also industry as well and real people.  Like many other industrial cities along the northern tier of states, it is struggling, and this sort of whacko “environmentalism” makes up a good share of the decay.

And consider sustainability, for which I recently read a good definition [paraphrasing]: leave the environment in as good or better condition than you found it, for future generations.  This Nippon case seems to be a poster child for this.  There is much logging on the Olympic Peninsula, from a renewable resource – trees.  They plant seedlings by the square mile growing into beautiful new forests absorbing tons of carbon dioxide.  Nippon uses the remains of local waste rather than fossil fuel to operate its paper plant.

One local whacko, a psychologist which seems to speak for itself, says the biomass plant is for pure greed at the expense of public health.  News alert: she has no idea what she is talking about.  What would she prefer?  Close the plant and landfill the logging waste?  I can all but promise you the emissions from wood waste will have less impact than using any other reasonable energy source.  It will not be like burning a pile of wet twigs and leaves like we used to for roasting hotdogs and burning our eyes out.  It will be clean.  It’s carbon neutral.  Emissions are regulated by the EPA.  Do you think the EPA, which puts carbon dioxide you are producing right now and every minute of the day in the threat category, is going to allow this or any other manufacturer to emit one billionth of the hazardous emissions required to give a mouse a headache?  I’ll let you know when I think the EPA is getting too slack.  That will happen when I return to earth as a Labrador retriever.

Some carpers on the same side of the political spectrum whine about greedy corporations sending jobs overseas.  Hmm.  I wonder how these Nippon-protesting whackos and their ridiculous protests play into this?  Consider how far into nutland this is.  At the UW-Madison, we just spent millions of dollars to convert a district steam plant from burning coal to biomass – the same sort of thing these people on the Olympic Peninsula are protesting.  If it’s good enough for Madisonians, trust me, it’s good enough anywhere.

NIMBY in some precincts is giving way to BANANA – “build absolutely nothing anywhere, near anything”… by whining halfwits and cretins killing our society – WHACKOS©.

written by Jeffrey L. Ihnen, P.E., LEED AP





Galactically Stupid

1 02 2011

Some weeks I struggle a little to decide on a topic.  It isn’t for lack of topics for they are like natural gas reserves – at one time I wondered whether I’d be able to find a topic every week.  But like natural gas reserves, as I “worry” about running out of topics, the topic list is vastly outstripping demand.  This week it was easy.

I watched the state of the union address last week, or I should say I started watching the state of the union.  It doesn’t matter who is president, from Reagan through Obama, I can only take about 20 minutes before I am forced to turn it off.  I either get nauseous from the rosy talk or disgusted with vague speak of wrong-headed policy.  Luckily, or maybe not so, President Obama talked about “clean energy” in the first twenty minutes – a topic I’m most interested in. 

As he spoke about “investing in” clean energy, something like 80% “clean” by 2035, I kept asking my TV, “what is he talking about?” over and over.  WHAT IS HE TALKING ABOUT?  As I’ve written many times in this blog, the federal government should get out of picking winners and losers.  Let’s examine an example of the federal government’s brilliance in promoting clean energy. 

Energy Policy Act (EPACT) 2005 issued under 100% Republican power, mandated that 7.5 billion gallons of biofuel – which is essentially 100% corn-based ethanol – be produced annually by 2012, next year.   Last year, the out-of-control EPA declared we should increase the ethanol content in gasoline from 10% to 15%. 

Note what has happened since EPACT 2005.  Due to a combination of easy money, Fannie and Freddie government-backed loans, wild-eyed psychotic institutional investors, hedge fund managers, home flippers, and crap like interest-only mortgages, we experienced a bubble and then a colossal collapse of the housing market but also commodities at the same time. 

The government has a solid track record of screwing up markets and then when the poo hits the fan, there they are, lecturing the private sector and pointing fingers at everyone but themselves, the chief culprits.  The housing collapse fits this model.

The commodity balloon including corn prices that grew in lock step with housing in 2007-2008 put a crushing load on dozens of new ethanol plants that sprouted on the heals of EPACT 2005.  Many bankruptcies ensued. 

As a result of the struggling ethanol industry, the government once again runs to the rescue.  But STOP THE MUSIC!  Think for just a minute.  Let’s establish that ethanol producers are manufacturers.  I think everyone agrees with this.  Manufacturers take commodities, or raw materials like plate steel, bar, ore, grain, sugar, plastic resin and turn them into fasteners, heavy equipment, dipsticks, cereal, Pop Tarts, and ice cream buckets.  They make scarce goods out of less scarce goods, a concept I learned in basic economics in college, or maybe in the third grade when I made cookies from scratch. 

A whopping 40% of our 12 billion bushel annual corn crop goes to ethanol production.  While The Wall Street Journal waxes about food inflation,  which is all too real, what they don’t discuss is this issue of manufacturing the less scarce goods into more scarce and thus more valuable products. 

For the love of Pete, wake up you dunces!  The value of the gasoline the 2.5 gallons of ethanol displaces is worth barely more than the bushel of corn that produced it!  HELLO!  So what’s the response, let’s use even more of the more valuable feedstock for the same old demand of the end product.  This is lunacy; monumentally, gallactically stupid! 

According to the ethanol industry itself,  a bushel of corn produces 2.8 gallons of ethanol, and I’m sure this is the latest, absolute greatest conversion to make ethanol look good.  Current commodity cash prices include $2.40 per gallon of gasoline and $6.25 per bushel of corn.  Do a little math.  The ethanol leaving in tankers is worth barely more than the corn coming in, raw!  This doesn’t include amortization of the plant itself, labor, or the massive amount of energy required to manufacture ethanol. 

The price of corn is elastic.  That is, it’s price changes a lot with demand, especially when the supply of the feedstock is tiny , teeny weeny, itty bitty, compared to the finished product it is displacing.  I.e., if all 12 billion bushels of corn were manufactured into ethanol it would displace four percent (4%) of our petroleum demand!  This is like feeding hogs fois gras so we can reduce our dependence on foreign lard. 

Here is what is going to happen as a result of federal government brilliance pushing this renewable “clean” source of energy – I would say write it down and save it, but I’m doing that for you – the continued easy money, potentially devastating inflation (see Playing with Fire), and massive upward pressure on corn prices is going to ravage the ethanol industry.  It doesn’t take a genius to see this is going to happen, but apparently it takes somebody smarter than a U.S. Senator. 

Meanwhile, most people don’t realize it, but these completely government-induced artificial demands on commodities and resultant high prices are driving farmland prices to the stratosphere.  An acre of decent farmland in Iowa fetches $8,000 and in some places considerably higher.  Say hello to the same wild-eyed crazy speculation we had in the housing market two or three years ago.  Only this is a lot wilder, and the hangover?  It’s too serious to joke about.

The government’s intrusion into renewable fuels is going to bankrupt the ethanol industry.  Once that happens, the house of cards crashes along with grain prices.  Land prices will crash, and like the housing market, there will be a massive farm-country crisis that will make the mid-1980s crisis look like the failure of an eight-year old’s corner lemonade stand.  Land prices will plummet below the principal on outstanding loans, much more so than homes.  I estimate that land prices will crash by about two thirds or maybe only by half if we’re lucky, to somewhere near $3,000 per acre.  When will this happen? I would say for sure in the next 10 years, probably in the next 5 years. 

In a bitter case of irony, government “assistance” for states like Iowa is going to devastate the state.  Thank you Chuck Grassley and Tom Harkin, and here goes any shred of credibility I would give Newt Gingrich  (I actually wrote this whole thing before this last salvo went to press). 

And on the way to this pandemonium, livestock growers are going to go broke on exorbitantly priced feed.  Some already have per the above WSJ opinion piece.  We’re all paying for soaring food prices but food prices don’t matter to the Ben Bernanke.  It’s not part of “core inflation”, as though nobody eats! 

After the bomb hits, all kinds of suppliers of farm equipment, goods and services are going to get whacked and there will be a swath of bankruptcies again, making 1984 (the year) seem like Little House on the Prairie.  One “solution”, god forbid, is to throw more money at ethanol subsidies.  What’s it going to take? – $2/gallon of federal subsidy?  Is this the kind of “investment” we’re talking about? 

So think about it.  Do you really want the brilliant federal government driving us toward another cliff in renewable energy?  I can’t think of a more devastating outcome than will happen with ethanol, but then I also couldn’t think of a crazy scenario of how saving energy results in greater consumption in “Upside Down Consequence of EE” but then within a week in “The Delectable Light Bulb” a bizarre real example dropped in my lap.  The next government renewable energy drive may not be devastating, but I guarantee it will be a failure by any reasonable measure.  Has the federal government driven the breakthroughs in lighting and other technologies?  Not that I’m aware of.  The private sector has.  What happened to the Bush’s great government hydrogen solution for transportation? – and fuel cells cars?  How about the synthetic fuel godsend from the Carter days?  That was a winner, to be sure.

Renewable energy IS NOT like the development of space exploration leading to satellites for national defense then phones, TV, and GPS – or nuclear power.  In these cases, the features and requirements of the end product were well defined.  It was just a matter of physics and engineering to make it happen.  All known renewable energy today has significant physical barriers to success – like there are only so many acres of tillable soil on the continent.  The yet unknown successful, cost-effective, and plentiful source of renewable energy may be percolating in a lab somewhere or may only be a wild idea in someone’s mind or not even that yet.  I don’t know what it will be, but we aren’t going to ride solar and wind energy to the renewable sunset.

Feds – just defend us from enemies, foreign and domestic, and provide equal opportunity for all.  We will take care of the rest.  And, funny how things like satellites, GPS, internet, lasers, compact discs, DVDs, sonar, and stuff like that are spin offs of what the government is supposed to be doing – protecting us from enemies!

Tidbits

In reply to “Amber Waves of Ethanol” from The Wall Street Journal above, the CEO of the Renewable Fuels Association, (lobby) states there is no food-ethanol trade off.  Forty percent of the nation’s corn crop going through ethanol plants is no tradeoff?  Nevermind.  Put down your emotions and think about what he says.  The supply of crops (production) hasn’t changed and “remember, farmers in the U.S. see less than 20 cents on every dollar spent on food.”  What does either of these have to do with pouring 40% of the corn crop down the ethanol hole or changing supply or farmer’s share of the take?  In fact, it actually bolsters the fact that supply isn’t changing while demand is rising and will continue to do so.  You have to be smarter than that, man. 

Lastly, I want to make it clear I am not ranting against the ethanol industry.  As I’ve said before, everyone has to play the game by the rules government puts on us.  However, once this bust happens, everyone involved should have to live with the consequences without bailout.  People need to take responsibility for their own decisions.  I chose not to pursue government ARRA handouts because I considered the red tape, competition for the money, types of clients that would use it, and that it’s a one-time deal, would make for a miserable ROI for us.  If others want to land the money, and then hire us, I may consider it. 

All is not lost for farmers and ethanol-plant owners.  Sell!  Farmers can sell their obscenely overpriced land and lease it back with long term contracts.  When prices crash, take it off the hands of the sucker that bought it from you – at that point it will probably be the bank, but the bank will also be broke – maybe you can take it from bankruptcy court.

P.S.  ACEEE wasn’t fond of the President’s omission of energy efficiency either

written by Jeffrey L. Ihnen, P.E., LEED AP




Green Jacket, Cigar, Gold Rings, and Disneyland

18 01 2011

I attended the Midwest Energy Efficiency Alliance last week and it was an interesting environment, to say the least.  This was the 4th or 5th MEEA conference I have attended. 

Behavioral stuff is an up and coming topic/issue in the EE industry.  I am planning to do a rant that to save energy, people have to give a crap.  I just need something to push me over the edge.  After all, just about all lasting energy efficiency requires behavioral changes.  Only inanimate, stationary, non-energy consuming stuff, e.g., insulation, doesn’t require behavior change.  Everything else has a behavioral component for maintenance, avoiding rebound and things like that.

What was probably most interesting to me was the political environment addressed by speakers at the conference.  For whatever reason, MEEA likes to attract people from Washington DC to discuss current events.  Essentially, people from the Department of Energy, Alliance to Save Energy, and Center for American Progress, to name a few, are on the defensive with the congressional wipeout last fall.  The theme I absorbed was one of playing defense and riding out this storm.  The mood for some was as though their dog had just left them and passed on to k9 heaven. 

One speaker was afraid of the jobs that were going to be lost but also threw wild numbers around – like the energy efficiency portion of the stimulus produced $50 billion in economic activity and that the regulation put in place and on auto pilot will produce billions of baskets of bread from the heavens in the next couple years. 

Energy efficiency is not like giving a child an immunization.  I’m a member of Rotary International and one of Rotary’s missions is to end polio worldwide.  We were down to just a few very poor and politically repressed countries like Afghanistan and Sudan, but like anything, completely eliminating something is very difficult.  Anyway, I’ve seen many photos of children bawling their eyes out as volunteers dripped immunization in their mouth.  This may seem unpleasant to the tikes but it is obviously in their favor and has a practically infinite benefit/cost ratio. 

Conversely, we can’t ram energy efficiency down peoples’ throats.  How many times do I have to say it?  The price of ramming things down American’s throats: 63 house seats, 6 senate seats, 5 net governorships with a near sweep in the Midwest, and a tidal wave of state house flips.  Here’s how regulations work: increase the cost of doing business and businesses move out of the state or overseas and then they get blasted for being Benedict Arnolds by the very folks who impose the regulations. 

Like light bulbs I discussed last week, energy efficiency is gathering really positive momentum, not because of top down regulation, but because it’s good for business.  See Save Energy – Get Out of Jail where Wal-Mart used “green” to get thousands of critics off its back.  They in turn are requiring energy efficiency standards for their suppliers.  I just red about Holcim cement getting ENERGY STAR® ratings on five of their plants.  I can’t speak with certainty but I don’t think they are taking the time and expense to get ENERGY STAR to pump up their four-wheel-driven employees.  They are obviously doing it for marketing.

And the DOE person was concerned about the jobs that will be lost once the stimulus is gone.  What jobs?  I’ve never lived through such a bizarre two years in my life and I’ve been in business for 20 years – eewe, old codger, I am.  It’s been crazy.  Talk about modifying behavior.  Millions of people purchasing vehicles a few months before they otherwise would, leaving in its wake a predictable buying vacuum – how many jobs did that create?  I don’t know, but I just read that Ford is planning to bring on 7,000 workers about 17 months after the cash for clunkers fiasco.  The $8,000 first-time home buyer credit – same thing.  The housing market is still searching for a bottom.  Just let it bomb and let’s get on with the recovery.  With regard to EE, probably hundreds of millions of dollars have been spent pursuing federal grants.  Enormous efforts have been expended trying to get free money.  This, my friends, is not stimulative.  It’s fighting over other people’s money to be repaid sometime in the future by said people.  This too as with my rant last week was a bipartisan bad idea started by Bush. 

Meanwhile, our industry is booming but the DOE speaker doesn’t know this because she lives in the beltway bubble.  The downturn only hit our new construction and LEED services.  Our other EE services have more than made up for it and we have four engineering spots to fill but we can’t find qualified people.  How bizarre is this?!  I think I mentioned we had an outstanding candidate we spent no time giving an offer to but she already had two other offers and took one closer to the spouse’s job.  Our usual evaluation teams have had to sit out requests for proposals because some couldn’t handle the work they already had in the tank.  We’re passing on RFPs as well.  So jeezo woman, when the stimulus goes away we’ll still be working hard to find people – as will be many others in this industry.

Back to the MEEA conference:  After a series of “Oh woe is me” talks, one guy in the crowd walked up to the mic to make a suggestion.  Rather than duking it out over regulation and climate change policy, why don’t we focus on the irrefutable common benefits that everyone can buy into – that EE is cost effective and is good for business.  Give that man a standing O, a green jacket, cigar, bottle of milk, gold rings, a trophy and a trip to Disneyland.  THIS is what we ought to be doing, not battling it out over something people rank 19th out of the most critical issues of the day and something half the population opposes. 

Tidbits

Speaking of jobs… Note to wonks trying to “create” or “focus on” jobs:  People invest and are in business to make money; period.  They are not in business to hire people.  People are hired as necessary to make more money.  Think about that.  If the bureaucrats want more jobs, let people and companies make more money. 

And speaking of sole purpose of business is making money…  In New Years Collage I chronicled a three way fight The Wall Street Journal, several utility CEOs and the EPA were having.  Among the CEOs cheering the EPA’s increase in emissions regulation was Exelon Corporation’s John Rowe.  I was eating lunch at MEEA next to a long-time Chicagoan familiar with Mr. Rowe’s strategy for Exelon (parent of ComEd, which serves Chicago).  The gentleman said Mr. Rowe sold off all of Exelon’s coal generation, leaving it with only nuclear plants.  He said the nuclear plants had among the highest operating costs in the country, which left Exelon with a high operating cost, which had to be made up by higher rates.  The gentleman explained how Mr. Rowe brought on a former Naval Nuclear engineer (Yeah!  Go Navy!) to improve the “efficiency” of the nuclear fleet.  And so he turned them around overnight.  As a result Exelon has virtually no coal generation, very efficient nuclear plants, and the highest return on capital of any utility in the business.  As I mentioned above and in several other rants, CEOs report to shareholders.  Shareholders rule.  Profit is king.  I have no problem with any of this except, I think lobbying for government to regulate a competitive advantage for yourself is not something I would do.  Preparing for and reacting to policy, good or bad policy, is fine, and indeed smart business to me.  Otherwise you might find yourself on a street corner with a tin cup. 

BTW, this was not a wild eyed ideologue I was enjoying lunch with, but I did check the facts and what he told me was pretty well right in line with an article by Forbes magazine

written by Jeffrey L. Ihnen, P.E., LEED AP





Goodfellas Take California

11 01 2011

As I discussed in The Delectable Light Bulb back in October, I think it is bad policy to force things onto people, or similarly banning a product that is essentially harmless.  Ratcheting up the minimum energy efficiency ratio, perhaps better known as the EER or SEER of air conditioning units is one thing.  The deliverable (cold air) is the same.  Not so with compact fluorescent light bulbs and incandescent bulbs.

The do-gooders of California lead by the Governator are “leading the nation” with the ban on incandescent light bulbs, starting this year.  You can say it isn’t a ban like a hurricane isn’t a tornado – what’s the difference?  They both can flatten whole cities.

California is a great state with unbelievable resources and diversity, but they just keep imposing self-inflicted head shots on themselves.  Talk to just about any business owner and many citizens and you will hear the tax and regulatory burdens are absolutely crushing.

My grandma helped manufacture commercial jetliners at McDonnell Douglas in Long Beach into the 1970s at least.  Commercial airliners are no longer manufactured in California.  Other manufacturing has been fleeing as well.  Semiconductors, which replaced aerospace is being chased out of the state but don’t take my word for it.  See what T.J. Rodgers and Paul Otellini, CEOs of Cypress Semiconductor, and Intel, respectively, have to say.   Essentially, California is becoming a place to develop ideas, products, and services into the embryonic or maybe infant stages and then full scale production or manufacturing is exported out of the state or country.

What does this have to do with the banning of the incandescent light bulb?  It’s all tied together with top down in-your-face regulation.  California is also single-handedly saving us from carbon dioxide with its AB32 carbon regulation, which the state had a chance to suspend in November, but it did not.  Over the years, Texas has been more than welcoming California’s businesses (and of course Texas is the first to come under assault by the EPA for CO2).  California has been losing 3,200 residents, net per week while Texas has been gaining 1,200 residents net per week; from residents moving in and out of other states.  This is sure to continue with a retread governor who first took the helm back when my grandma was retiring from McDonnell Douglas.  What an irony.  BTW, it’s been a bipartisan wrecking ball over the years.  These latest I-know-better-than-you graces were championed by the Governator, who just proclaimed on television that he is proud of his accomplishments.  Huh?  What?  The state fisc is a complete disaster.  Your approval rating was just a bit higher than my shoe size.

California: Pot, ok.  Incandescent light bulb, you’re under arrest.  LOL

Meanwhile, UPI,  which I thought was long ago dead, reports that per-capita energy use in California has been flat for the past 32 years.  Ironically once again, this is the period since my grandma was retiring, while the rest of the country has seen an increase of 40%.  Well heeeyah!  Manufacturing stuff takes a lot of energy and it’s been fleeing CA for the past 35 years.  The 40% gain over 32 years by the way is a whopping 1.01% per year.  The incredible irony is as T.J. Rogers from Cypress Semiconductor noted above says, 4,000 of their jobs for manufacturing solar cells have been established in the Philippines, NOT California, where they are based and I’m sure many cells will be imported by mandated CA renewable energy standards.  It would otherwise be impossible to make this stuff up!

Ok, enough lamenting over one of my favorite states and one that I really want to see pull out of its nosedive.  The Mercury News article says the incandescent light bulb and equivalent halogen bulb cost the same, while the CFL is more than double these at about $5.50 apiece, at Lowes.  I haven’t a clue where they got these prices (within Lowes).  At amazon.com where I shop all the time, you can get two dozen 100W Sylvania incandescent bulbs for $18.  A six pack of equivalent CFLs goes for $14.  A dozen equivalent halogen bulbs go for $35.

We have to have incandescent bulbs at this point for instant on/off applications like refrigerators, freezers, closets, pantries, and even bathrooms.  Otherwise it takes a minute for a CFL to come up to brightness and they get left on.  And the colder the environment (outdoors, freezers) the worse they perform.

So the stupidity of these options may include:

  • 75W incandescent for 67 cent purchase cost operating for maybe a dozen hours per year
  • 52W halogen for $3, same hours
  • 23W CFL operating a several hundred hours

I can see it now.  Goodfellas II.  Robert De Niro and Ray Liotta with incandescent bulb smuggling rings into LAX and SFO, interstate highways 5, 8, 10, 15, 40, and 80, Union Pacific, and major ports in San Diego, Long Beach, and San Francisco.  Cases of bulbs will be peddled in back alleys, warehouses and mob-owned Italian restaurants and delis.  The union bosses will be on the dole and threaten government worker strikes if anyone messes with the mob, or they just get pistol whipped, chopped up and composted for the mob’s organic fruit, nut, and vegetable operations in the San Joaquin valley.

Why don’t we need a mandate?  Because CFLs have made tremendous gains in the market in recent years because of massive competition and dropping prices in a maturing market.  As I said in The Delectable Light Bulb, prices of CFLs have dropped from $15 to barely $2 apiece in the past 10-15 years.  Moreover, if you think, “ah who cares – there’s no harm in this”.  Just wait till they come gunning for your vices to save you from yourself: popcorn at the movies, lawnmowers, cars, soda, booze, cheetos, nachos, oreos, big 10 burgers, ice cream, ramen noodles, deep fried candy bars, cheese curds, table salt, plastic in any form, bullets, leaving your pet at home alone, soap, shampoo, razors, deodorant, fluoride, pharmaceuticals, microwave ovens, and watering your lawn.

My family other than me includes typical energy users with little if any passion for conserving energy unless benefits are substantial.  My mother has CFLs in nearly all of her home fixtures that will take them.  She uses LED Christmas lights because she thinks they’re the greatest thing since parallel strings of lights.  Why?  Because she likes how they look.  My brothers, who have never owned anything but gas guzzlers use CFLs almost exclusively in their farming operations – dozens of dozens of CFLs from barns and the shop with those 80W or whatever whompers about the size of a five gallon bucket.  Why?  Because they last forever compared to incandescent.

There is going to be significant rebound with the incandescent ban as well.  Since CFLs take a minute to come to full brightness, they are going to be left on for hours rather than a minute or two for an incandescent in many applications.  CFLs are sure to be burn more hours too because, hey, they use no energy right?  Should I buy a $3 halogen light that turns on/off instantly but uses 3x the energy as a CFL that costs $2 and just leave that burn?  I’ll probably take the halogen because I’m hard wired to turn lights off asap, pun intended.

written by Jeffrey L. Ihnen, P.E., LEED AP





Another Committee – Alleluia

7 12 2010

Hide the kids.  The DOE has spawned an energy and renewable advisory committee.   You know, a diversified products / technology manufacturer like 3M or DuPont should examine the Byzantine labyrinth of government agencies as a model to develop the next bullet, explosion, radiation, fire, water, and bio proof wonder material.  I have to believe that if they could weave sewing thread or maybe two pound monofilament fishing line into such a fabric it would stop a 40 caliber projectile at point blank and not even cause a contusion.

Why does the country need this?  Why does the country need a debt commission for that matter?  We have a full time congress for goodness sake.  Isn’t that what they are supposed to be doing?  I suppose this is this too much to ask of 535 FULL TIME bureaucrats?

As anyone who knows anything would guess, the committee is dominated by academics and government wonks, although at least there is one utility guy on there.  Therefore, I am sure we will have a cornucopia of far out recommendations from a distant galaxy.  Most likely it will be heavy on far out technology and more spectacular policies like 15% or is it 20% ethanol blends for gasoline.  Maybe they can mandate its use, block imports, subsidize it with our money, steal our watch and tell us what time it is too.

Do these people or anyone at the DOE realize there is an industry of private sector product and service providers that work on our home planet of Earth with end users (also home-based on Earth)?  We are constrained to pesky things such as the laws of nature and economics and consumer whims.  I’ve said it a thousand times and I’ll say it a million more times, the savings potential from cost effective measures from current technologies and services is at least 30%.  See the McKinsey report from last year as backup for my hypothesis by people who know what they are talking about.

On the other hand, I read that this group is only going to meet twice a year and judging by the agenda of the first meeting it appears they won’t be inflicting too much damage on the citizenry.  If this is all they are going to do twice a year maybe this is simply a resume stuffer organization.  “Served on the Secretary of Energy’s Energy and Renewable Advisory Committee” would sound impressive for an introduction for a keynote address at Yale University’s spring graduation, especially for graduates with degrees in renewable energy management.

Tidbits

FIFA (Federation International de Football Association) chose Qatar to host the 2022 World Cup tournament.   Qatar, a tiny tumor of a country jutting into the Arabian Gulf is about the size of Connecticut, or about twice the size of Long Island (although saying it’s twice as big as anything is misleading).  Temperatures during the World Cup there will approach 426F, just below the point of spontaneous combustion of flammable items like paper but fortunately for most World Cup fans, above the melting point of the vuvuzela.  I rather like the vuvuzela, at least as comes across on the TV.  It’s hilarious like a cloud of June bugs or swarm of mosquitoes amplified a couple hundred fold.

In addition to building nine new stadiums and renovating a couple others, they will be supplying OUTDOOR air conditioning for these stadiums.  They will probably need to build a couple thousand MW power plants as well.

South Africa boasted that theirs was the greenest World Cup ever.  If Qatar says anything about green, they will have to use Venus as the baseline alternative for measuring the savings realized.  If I were them, I would just go with it and say this is the most ridiculous idea of all time.  We will proudly burn as much energy as half the countries with teams at the tournament.

I can almost guarantee they will build a photovoltaic plant the size of the country in the Saudi Arabian desert and that’s what we will be hearing about.

Too see how much money people in this region have, do a Google Earth or Maps of Dubai.  Apparently there isn’t enough moonscape barren coast on which to build opulent homes, so they make their own islands or “palms” where the strips of land take on the pattern of the veins in a palm leaf I guess.  And they have all the huge sky scrapers including the world’s tallest building.  What for?  By the looks of it, the only people who work there must be those that take care of the people who live there.  And why the tall buildings?  My impression has always been skyscrapers are needed for land-locked cities like New York and Hong Kong.  UAE makes Phoenix look like the Amazon basin.  There is nothing there.  Just pave it over and sprawl out so there is something to do with your time – like drive your 12 cylinder Italian sports car to the spa, bank, casino and back home.  The place is so un-natural it creeps me out.

written by Jeffrey L. Ihnen, P.E., LEED AP





Freeloaders and Geniuses from the Universe Next Door

19 10 2010

You know what torques me off, or make that torques us off more than anything else?  I’m saving it for a future rant.  Stay tuned.

No really, it’s “prospective” clients, many times end users that have screwed up buildings beyond reproach or wasting energy as though they just want to release all the carbon locked up in fossil fuels and get it over with.  They ask for help but in no way intend to pay for it or take action for anything substantial.  We may have even demonstrated, clearly by benchmarking or other means with specific measures that they could make their utility shut down a 500 MW power plant if they would just do something.

But no!  They want to know something trivial like how much energy/money they’ll save with a system that will put unattended PCs to sleep and not mess with anything substantive.  Never mind every PC on the planet has this built in and it’s about as hard to negotiate as turning on the television.

They’ll ask how to catch a three pound shad when you have a loaded harpoon with a giant blue marlin at point blank range (just go with the metaphor even if it is totally absurd).  Take the damn harpoon and shoot the thing, man!  Well gee, I just don’t know.  I haven’t used one of those things before.  I might shoot myself in the foot.  Is that tip sharp?  And they keep coming back for more panfish advice.

You may have spotted these people in public.  They go to the grocery store around noon Saturday to eat everything available for sampling, for their lunch, and probably leave with a half gallon of milk and a loaf of private label bread.  They sample six beers in a brew pub, order a can of Pabst and leave no tip.

And then there are those who believe the utility should pay for everything, and I mean everything.   We were working a school district for retro-commissioning and I believe they have some good opportunities, but when the board discussed it, a genius said, no.  He wanted the utility to build a remotely-sited wind turbine (because their location is lousy for wind energy) paid by the utility to generate electricity for their facilities and do it on a net metering sort of contract.  I am not kidding you.  Gee, that’s a great idea.  Let me get right on that.  I almost got brain damage from oxygen deprivation.  I was laughing so hard.  I’ve heard of customer entitlement mentality but this was from another universe.  How do you calibrate a customer like that to life here on earth?

We also have to beware of death by a thousand cuts.  A client may only want a half baked high-level assessment.  No matter how loud and clear we describe WHAT the project IS NOT, after we present the results that clearly meet the contract scope of work, some start asking for details on specific measures.  Where do I buy one of these?  Do you know any good contractors?  What capacity of doohickey do I need?  Some utilities, thankfully, are offering compensation to answer these sorts of questions.

Think of it this way.  If your house is a hog, it’s probably because it leaks like a sieve.  You can’t just take a couple tubes of silicon and slop it on some windows.  I know what I don’t know, and I know there are a boat load of places for infiltration/exfiltration to occur and like life in the commercial and industrial world, if you want results, you need to hire somebody who knows what they are doing.  I’ll pay a guy $500 to do it right before using a buffoon for free, any day.

NOTE: This is not a solicitation to weatherize my house.

Tidbits

Wall Street Journal readers responded to the source article from last week’s column.

Commenting on the letters, the National Resources Defense Council guy projects avoidance of 300 large power plants and $12 billion in annual savings.  In an Energy Brief a couple years ago, I projected 156 large power plants (500 MW apiece) and $9 billion in savings.  Close enough for hand grenades but I’m guessing he’s a little heavy on the power plants.  Is there diversity figured into his numbers?

Osram, a German company is retooling one of its American plants to manufacture efficient lighting.  Meanwhile, General Electric is whining that it has to close its last lighting plant in the U.S.  Jeffrey Imelt is a terrible CEO for GE.  General Electric used to be an entrepreneurial innovative company under Jack Welch.  Now it is a company in search of markets for status quo products and services, and government handouts.  If you don’t innovate you die in the private sector.  It matters not what you do.

One guy argues CFLs will require more heating energy consumption.  Yawn.  Fuel oil would be cheaper heat and if incandescent bulbs are such a great source of heat, what about summertime?  The electrical engineer makes good points that CFLs are not as bright as advertised.  We’ve always recommended CFLs at 33% the power, as opposed to 25%, of the incandescent being swapped out.  This is essentially the next size larger CFL than “recommended” in the business.

Another guy plays the mercury card.  Yawn.  I dismissed that fallacy in the same Brief.

written by Jeffrey L. Ihnen, P.E., LEED AP