I’m keeping my clunker. And you should, too.

 

Mine’s a Honda Accord, so it doesn’t actually qualify as a clunker despite its 150,000 loyal miles, but on principle I would not do “cash for clunkers.” Let me tell you why.

 

Long before the word warming was ever married to global, we understood we were filling landfills too quickly. The concept of recycling emerged, and attentive citizens learned the mantra reduce, reuse and recycle. In that order.

 

Thus my first beef with cash for clunkers: It puts the recycle cart before the reduce and reuse horses, and in this case recycle is a euphemism. Although cash for clunkers sounds kind of green, it equates to destroy and produce.

 

You annihilate a working automobile by pouring sodium silicate (liquid glass) into the engine to ensure it never goes another mile, killing 30 percent of its resale value. A recycler removes some parts for resale, drains the haz-waste fluids, mashes it into a steel pancake, puts them on a barge to who knows where, or chops them into bits, producing carbon at every step.

 

Meanwhile, you produce a new car from materials mined from the good green earth, processed in a steel plant, shipped to an auto plant, manufactured with carbon-generating energy, shipped to dealerships and driven home by someone who just threw away the car that got him to the showroom. It takes somewhere between 3 and 12 tons of carbon dioxide to make a new car.

 

(Since this is a clean tech blog, I won’t go off on the confiscatory aspect of this – why should you as a taxpayer pay for my new car? And if that’s what it takes to stimulate the economy, maybe we should just ride out the recession. I won’t harp on the fact that this is ultimately another staggering gift from your grandkids to the auto industry. Or that it feeds into our worst consumerist compulsions. Or worse, how four of the top five new car models that clunkheads are buying are made by foreign automakers.)

 

I’ll stick to our focus and observe that cash for clunkers is about as green as bottled water. The policy goes out of its way to stimulate the unnecessary manufacture, distribution and consumption of objects that are ultimately superfluous. In the best case, you’re taking a pig off the road and replacing it with a hybrid, the net gas-mileage/pollution benefit offset by the impacts of manufacturing the hybrid and destroying the clunker. Oh, and not every beneficiary of the program is buying a Prius. Did you know that a new car that gets 22 mpg qualifies for a cash for clunkers subsidy? That’s a pretty low bar.

 

The crime in all this is that what Washington and we in the middle class call a clunker is quite often a perfectly serviceable means for a lower-income or unemployed person to get to work, see the doctor or take in a ballgame. A clunker can carry meals to seniors or homeless people to shelters. It can give the kids at the tech school some fodder for learning a valuable trade while transforming a clunker into a cream puff.

 

Cash for clunkers: It’s your cash. Clunkerhood is in the eye of the beholder. It’s not making us green, and it’s putting us in the red. Don’t do it.

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Cap-and-trade, clean energy standards, cash for clunkers and smart grids are the headline grabbers and fight-starters in the climate and energy bill. These stars of the American Clean Energy and Security Act of 2009 aren’t, however, going to save the U.S. from also-ran status in the renewable energy economy. Nothing in those provisions – or at least nothing obvious – confronts the very real possibility of China emerging as the superpower of renewable energy in the short term. Out of the limelight, in the bill’s back roads and side streets, lie the gems of hope for America’s future as a player in renewable energy, providing the U.S. can weather the Chinese onslaught. And it’s going to be a hummer of an onslaught.

The Chinese government is going after the top spot in renewable energy with a vengeance, and by employing their unique brew of free market talk and authoritarian action, they’re probably going to get it. If that makes you queasy, it should. The U.S., already a secondary player in renewable energy behind China and the European Union, is staring at yet another possibility of its energy future being tied to a foreign nation. Specifically, a foreign nation that’s also holding much of America’s debt.

There’s plenty afoot to bear out that pessimistic view. China has targeted wind and solar, the two most promising renewable technologies of the moment. The Chinese government has already created the world’s largest domestic wind power market, and they’re using it as a base to conquer the international export market for wind turbines. Using its success in textiles, food processing, electronics and consumer goods as a model, China has erected mazes of regulations specifically aimed at screwing foreign companies out of Chinese business. That gives Chinese companies a chance to flourish without competition on their home turf, subsidizing their push into export markets.

Having flashbacks to the Japan Inc. of the 1980s? The gradual demise of GM, Ford and Chrysler at the hands of Toyota and Honda? Well this is worse. Unlike democratic Japan, China doesn’t even pretend to play by free market rules. The New York Times reported last week that companies who built manufacturing plants inside China to satisfy domestic content requirements were aced out of the turbine market when the government outlawed turbines of less than 1,000 KW capacity. With tactics like that, it won’t be long before Chinese companies are the Honda and Toyota of the renewable energy industry. Next step, a wind farm near you. And solar is next on the agenda.

Even if China didn’t have a head start in renewable energy technology production, the U.S. wouldn’t be able to compete in volume manufacturing of renewable energy products any more than it could in apparel or consumer goods. China has a lower cost structure based on indentured servitude wages and light regulatory burdens. The U.S.’s winning game is not volume manufacturing of wind turbines or anything else. It’s innovation.

That brings us back to the climate and energy bill. There is $190 billion in the bill to fund renewable energy research. From the Apollo program to the Internet, the U.S. government has proven itself a great engine of new technology. That is the real secret weapon in the American renewable energy arsenal – a constant stream of new and better ideas.

The U.S. is the Saudi Arabia of innovation. No country has a better record of new technology development than this one. American universities and research institutes still attract the world’s best minds. The bill calls for establishing national centers of excellence in renewable energy technology across the country. Massachusetts took a similar approach in the 1980s under Gov. Michael Dukakis, funding centers of excellence in biotechnology, photovoltaics, nanotechnology and micro processing. Supplementing its disproportionately large share of world-class universities, the centers of excellence helped keep Massachusetts a technology leader. North Carolina had similar success with Research Triangle Park, which isn’t a center of excellence per se, but shows how government can effectively prime the private research pump.

China is gearing up to produce today’s state-of-the-art wind and solar technology. Let them. There is plenty of profit in developing tomorrow’s state of the art. Today’s solar and wind technology, for example, isn’t all that efficient. Most solar cells convert only 30 percent of the light that hits them into electricity. Wind turbines can’t turn light breezes into energy. There are no technologies for large-scale energy storage to even out the production peaks and valleys that make wind and solar unreliable in much of the world. Here’s betting the answers to those conundrums are going to come out of American laboratories.
 
A post script: Lest there seem to be a smack of jingoism in this post, I’ll say for the record that I’m all for China turning into a renewable energy superpower. The country is industrializing at a breakneck pace, creating a gargantuan demand for energy. Burning coal and oil to satisfy the demands of 1.3 million consumers portends a dismal future for the environment. Every wind turbine in the Gobi Desert or the South China Sea is an investment in a better world for everyone. As an American and a believer in democratic principles, I’d still like to think that we have a better way of developing a renewable energy economy than China. But as a father and potential grandfather, here’s hoping that both countries get there one way or the other.

The LEED (Leadership in Energy and Environmental Design) standard was a much needed imprimatur for unifying all the players in the green building industry. It has spawned more than 14,000 green building projects worldwide since its unveiling in 2000.

 

But critics have long argued that the LEED system is broken and doesn’t really live up to its eco-friendly mantle. They cite meager energy saving improvements and an easy-to-game point system that rewards individual features rather than a building’s total sustainability as just a few of its flaws. More significantly, LEED accreditation is awarded based on hypothetical estimates of energy modeling that was done at the design phase rather than the building’s actual energy performance when it’s in use.

Last week, the US Green Building Council (USGBC) took a step toward addressing its critics by injecting performance measurement and accountability into the latest version of the LEED standard. With LEED v3, building owners will have to regularly report on how much energy and water their buildings truly consume as a precondition to ongoing LEED certification. The new requirement aims to close the “performance gap” between imaginary and actual conservation.

The USGBC says the new rules will deliver two key benefits. First, the insight gleaned from the building performance data will help improve future versions of the standard by identifying which LEED specs work and which don’t. Secondly, they theorize that forcing certified building owners to report energy use on an ongoing basis will cause them to knuckle down and reduce the amount they use.

Justin Moresco at GigaOM’s Earth2Tech blog added that the new rule could also boost demand for products from companies that develop energy-related technologies for buildings. And I see great potential for integrating Smart Grid capabilities into the LEED process. That’s because one way to meet the new requirement is to let the USGBC monitor a building’s performance directly using the local utility as its information gateway. Smart meters, sensors and Smart Energy management systems will be essential to making this happen.

While the new rules are a small step towards improving a flawed LEED system, establishing accountability is one of the proven ways to turn around an under-achiever.

 

 

 

 

 

 

 

There was lots of passion on display at Tuesday’s Clean Technology event at the Harvard Club (disclosure: sponsored by Beaupre and Brodeur Partners).

Marc Gunther, Fortune magazine’s senior writer and sustainability expert opened the session with a talk called “The clean technology revolution: bigger than the Internet?” He said five pivotal forces will make this a reality: science; scale; stimulus, security and generational change. Here are some Gunther sound bites: