First US Greenhouse Emmissions Cap & Trade Auction

Last Thursday, Sept. 25th, marked a milestone: the first U.S. auction of greenhouse emission pollution permits.

A coalition of ten Northeast states, called the Regional Greenhouse Gas Initiative, conducted the auction, in which power companies and other interests compete for the right to pollute. The system is intended to halt the growth of greenhouse gas emissions, and then gradually reduce emissions emanating from the region after 2014.

Thursday's emissions price ended up at $3.07 a ton, not too much above the minimum bid of $1.86, and well below Europe's current rate of about $37 a ton. The low prices are likely to rise in future auctions, as emissions caps are lowered.

The states plan to invest much of the $38.5 million raised by the auction in renewable energy technology.

Coalitions in other areas of the country, including the West and Midwest, already have plans for similar auctions under development.

Dept. of Energy predicts 17% rise in natural gas prices

Dig out your heavy wool sweaters! Natural gas prices in the residential sector are predicted to rise about 17% this year, according to the Energy Information Administration (EIA), the U.S. Department of Energy's statistical agency.

This is despite a predicted increase in U.S. marketed natural gas production of 7.8 percent in 2008 and 3.8 percent in 2009.

Several factors contribute to the impending price hike, including:

• An expected increase in total (residential and commercial) natural gas consumption of 2.7% in 2008 and 2.2% in 2009.
• Rising prices in Europe and Asia, and
  
• Increased global demand for liquified natural gas (LNG).

For more information, visit the EIA's website at www.eia.doe.gov.

Senate Approves Solar Energy Tax Credits

The New Energy Reform Act of 2008 enjoyed overwhelming support in a 93-2 decision yesterday by the U.S. Senate. The bill would extend federal residential and commercial solar energy tax credits for the next eight years.

The proposed tax credits would cover 30% of project cost of new solar installation projects. A significant change from current tax credits is the removal of the $2000 cap on residential systems. This would make solar energy more affordable for homeowners. Since the typical home installation runs around $10,000, this would cut the average homeowner's cost by $1,000.

Because Wisconsin has strong state-funded incentives in place (see Focus on Energy's website on our links list), Wisconsin homeowners would enjoy incentives covering approximately 50% of system costs.

First, though, the bill has to be approved by the U.S. House of Representatives. Sounds like a good opportunity to write your representative!

Fortunately, the House is on the ball and has set up an easy way to do it. Just go to https://forms.house.gov/wyr/welcome.shtml and select your state and zip code. You'll be taken to your own representative's web site, where you can ask them to support renewable energy by supporting the New Energy Reform Act. Just look for their contact page (you'll need to type in your contact info, including zip+4.) It's easy, only takes a minute, and you'll have done your good deed for the day!

We're Official!

It's official! Marathon Renewable Energy is now Marathon Renewable Energy, Inc., registered in the State of Wisconsin!

Our first solar domestic hot water installation is under way, for a gentleman in Marathon, WI. Right now we're waiting for the paperwork to be reviewed by Focus on Energy before Dan begins the actual installation.

In the mean time, we've been doing all the necessary legwork - finding suppliers, filling out paperwork, etc.

I'll be posting periodic updates on the project, as well as other news as it comes up.