COVID-19 throws a lemon at Virginia’s plan for an energy transition. It’s time for lemonade.

solar panels on a school roof

The solar panels on Wilson Middle School are saving money for Augusta County taxpayers. Photo courtesy of Secure Futures.

In mid-March, the Virginia General Assembly passed legislation to transition our economy from fossil fuels to clean energy over the coming years. Two weeks later, Virginia shut down in response to the COVID-19 pandemic. Among the businesses whose very existence is now in peril are the energy efficiency companies and solar installers we will be counting on to get us off fossil fuels.

Home weatherization and energy efficiency programs have come to an almost complete halt in Virginia, including programs run by Dominion Energy Virginia. Nationwide, the energy efficiency sector has lost almost 70,000 jobs. Meanwhile, companies that install solar, especially rooftop systems, report plummeting sales. The Solar Energy Industries Association reports that nationally, 55 percent of solar workers are already laid off or suffering cutbacks.

The timing seems terrible — although to be fair, there’s no good time for an economy-crushing, worldwide pandemic. Eventually, however, the virus will run its course or be defeated through vaccine or cure. At that point, we will face a choice: we can stagger blinking out into the sunlight aimlessly wondering now what?, or we can execute the well-developed plan we have spent these weeks and months formulating.

Let’s go with the second option.

First, it’s worth remembering that nothing happening now will change the trajectory of clean energy. Solar and wind had banner years in 2019, continuing their steady march to dominance. Wind has become the largest single source of electricity in two states, Iowa and Kansas. The island of Kauai in Hawaii is now 56 percent powered by renewable energy, mostly solar. Across the U.S. wind, solar and hydro produce more electricity than coal. Wind is the cheapest form of new electric generation nationally; solar takes pride of place in Virginia.

Meanwhile, fossil fuel is even more firmly on its way out. Six of the top seven U.S. coal companies have gone into bankruptcy since 2015. That was before the lockdown sent energy demand down, further hurting high-priced coal.

Fracked gas helped kill coal but is itself vulnerable to price competition from renewables. Odd as it sounds, the collapse in oil prices will make natural gas more expensive. That’s because oil producers in Texas and North Dakota are closing wells that produced natural gas along with oil. The tightening supply of gas may finally make fracking companies in Appalachia profitable, but it means higher prices for utilities. Wind and solar will just keep looking better.

The Trump administration is still trying futilely to hold back the tide, but the U.S. will get a lot farther riding the wave than struggling against it. Congressional leaders should declare the country “all in” on clean energy. Instead of bailing out the highly polluting fossil fuel industries, they should put that money to work creating more jobs and economic development — and actually doing something about climate change — with energy efficiency and renewables.

Congress should return the Investment Tax Credit for solar (and offshore wind) to the 30 percent level in effect last year and keep it there, instead of continuing the phase-out now in effect. Congress should also give solar owners the option of taking the credit as a cash grant, as it did during the last recession, and for the same reason: tax-based incentives are less useful in a recession, when companies can’t use the credits.

Virginia’s Sens. Tim Kaine and Mark Warner have a critical role to play in convincing their colleagues to support solar. So far neither is rising to the task.

On the state level, Northam did the right thing in signing this year’s energy legislation, allowing utilities and industry members to start planning for the future. But the Clean Economy Act gets wind and solar off to a very slow start; Dominion doesn’t have to build Virginia solar for five years yet. And though the new laws remove many policy constraints on customer-sited solar, they offer next to nothing in the way of financial incentives.

Governor Northam should make it clear he intends to make rooftop solar a priority for next year, along with projects on closed landfills, former coal mine areas, and other brownfields, with a special focus on areas hardest-hit economically. He can also encourage corporations that do business in Virginia to meet their sustainability goals with Virginia wind and solar, starting right now.

The governor should also prioritize building efficiency. Virginia will be adopting a new residential building code this year, and if past years are any indication, its energy efficiency provisions will fall short of the most recent model code standard. It’s up to the governor to make sure Virginia adopts the full code.

Local governments are already taking advantage of suddenly-empty buildings to accelerate maintenance and repairs. But it’s a good time to think bigger, with new financing tools available that make energy efficiency retrofits and solar facilities cash-positive right from the start.

Energy performance contracting allows the energy savings to pay for retrofits. The Department of Mines, Minerals and Energy keeps a list of pre-qualified energy service companies and offers expertise to help local government employees navigate the process.

This year’s legislation also greatly expanded local governments’ ability to finance on-site solar through third-party power purchase agreements, effective July 1. The PPAs are structured so that a school district, municipality or any commercial or non-profit customer can have a solar array installed at no cost, paying just for the energy produced.

In December, Fairfax County awarded contracts for PPAs to install solar on more than a hundred sites, including schools and other government buildings. The county’s contract is “rideable,” which allows other counties and cities to piggyback, getting the same terms without the need for new contract negotiations.

Unfortunately, local governments in southwest Virginia are prevented from pursuing PPAs — not by state legislation, which allows it starting July 1, but by a contract with Appalachian Power that governs their electricity purchases from the utility. The contract is up for renewal this year; disgracefully, APCo is refusing to agree to new terms allowing the localities to use solar PPAs. APCo should back off, and let local governments in economically depressed southwest Virginia start saving money and supporting solar jobs this year.

Arlington County has gone beyond on-site solar, contracting for a share of a large solar farm in southern Virginia that will provide more than 80 percent of the electricity for county government operations. It’s a model any locality can adopt.

Virginia residents and businesses also have good reasons to focus on clean energy. The enforced down-time many people are experiencing means more time to research options, and companies are motivated to offer low prices on energy efficiency upgrades and rooftop solar.

The federal government offers more generous tax credits this year than next. Credits for residential energy efficiency equipment and a deduction for energy efficient commercial buildings expire at the end of this year.

The investment tax credit for solar (as well as for geothermal heat pumps, fuel cells and small wind turbines) stands at 26% for projects placed in operation this year, but it will drop to 22% in 2021. It falls to 10% for commercial customers and disappears altogether for residential customers in 2022. If Congress acts to raise the credit to 30%, buyers will get an even bigger boost. If it doesn’t, there will be a rush this year to get projects done by the end of the year, so customers should secure their place in line now.

Virginia nonprofits have helped hundreds of residents and businesses save money on solar and EV chargers through bulk purchasing programs. Virginia Solar United Neighbors just announced a series of virtual information sessions to promote the Arlington Solar EV Co-op. And LEAP, which closed operations temporarily due to the virus, reports it has restarted two programs, Solarize NOVA and Solarize Piedmont.

In an ideal world, the U.S. would already be well along in executing a comprehensive plan for a clean energy transition, one that includes job retraining for workers, and that resists counterproductive efforts to save the fossil fuel industry. But we can do the next best thing, and use the tools of government, the market and consumer choice to speed us in the right direction.

COVID-19 has handed all of us a big, fat lemon. Let’s make some lemonade.

 

A version of this article appeared originally in the Virginia Mercury on April 30, 2020.

 

“Virginia Climate Fever” shows us where we’re going, and why we don’t want to go there

The mid-Atlantic enjoyed one of the most delightful summers in memory this year, causing a lot of snickering to the effect that if climate change means moderate temperatures and low humidity, then bring it on, baby! Elsewhere on the planet, though, “bringing it on” translated into a whole lot of hot. For a good laugh at our own parochial mindset, check out the map of relative temperatures that accompanies this article about NOAA declaring 2014 on track to be the hottest year on record.

This sad reality check shows that global warming has not paused or gone away, and Virginians had better try to understand what’s coming so we can start preparing. It turns out our problems go well beyond sea level rise, as we learn this week from guest blogger Seth Heald.

Oh, and don’t miss the note at the bottom about the November 6 event. 

Featured imageVirginia climate activists (and indeed all Virginians) should cheer Stephen Nash, whose Virginia Climate Fever (just published by The University of Virginia Press) lays out clearly the costs of our decades of inaction on global warming. The book’s subtitle nicely sums up the point: How Global Warming Will Transform Our Cities, Shorelines, and Forests.

Why a climate book focused on just one state?

One of many confounding challenges of global warming is how to get people (and politicians and businesses) to take action commensurate with the size of the problem. As the popular British social scientist Roman Krznaric asks, “how can we close the gap between knowledge and action on climate change?” Krznarik’s answer is to seek ways to increase our empathy for people who live in distant places, or will live in future times. Certainly that is needed. (The U.S. edition of Krznarik’s book on empathy comes out in November.)

But since the day of increased empathy has yet to arrive, climate communications experts have focused on the need to get people to realize that climate change is happening here and now. It’s not just about our grandchildren, or even our children. It’s about us too. Now. And it’s not just about poor people living at sea level in Bangladesh, or the soon-to-disappear Maldives, or where melting glaciers threaten tens of millions of people’s water supply. Global warming is happening to us in America, and right here in Virginia. What’s more, it’s not limited to low-lying, frequently flooded parts of coastal Virginia, like Norfolk. Climate disruption is happening all across the commonwealth—from the shore to the tidal Potomac near Alexandria and Washington to the Piedmont to the mountains.

Climate communications experts agree that people are more likely to act (and demand that their leaders act) on global warming if they understand that it will have serious effects in their lives, and where they live.

Virginia Climate Fever does a superb job of bringing climate change home to Virginia. Nash, a journalist who writes with a deft touch, has taught at The University of Richmond since 1980, and he clearly knows Virginia well. He is is well versed in the science of climate disruption, and very good at explaining it. The book is filled with information gathered from interviews with scientists, including several at Virginia universities.

One leading climatologist featured prominently is Katharine Hayhoe, head of the Climate Science Center at Texas Tech University. As the book explains, she also happens to be an evangelical Christian whose faith informs and inspires her work. At Nash’s request, Hayhoe and a colleague prepared color maps of Virginia for Virginia Climate Fever, showing stunningly how much hotter our summers and winters are likely to be in the coming decades under different levels of future carbon emissions. It’s hard for me (at age 61) to look at these and contemplate my own hotter future here, much less my children’s.

Most disturbing to my mind was Nash’s description of the future of what those maps mean for our forests. We often hear about sea-level rise and how it will combine with more-severe storms to harm Virginia, especially in the Hampton Roads area. And well we should—the situation in Virginia’s coastal areas is dire indeed. But Nash reveals that our inland and mountain forests are just as threatened. And so not surprisingly are many plant and animal species that live in or near them. Many species face the prospect of extinction this century. Nash quotes the bioclimatologist Ron Neilson as saying that large areas of Virginia forest could “go into drought stress and potentially burn up,” resulting in “some very rapid conversions from forest to savannah.” Nash asked Neilson if this could happen in the next twenty or thirty years. Neilson’s answer: “How about now?”

Virginia Climate Fever is not strictly speaking a book about energy or energy policy. Rather it’s about climate impacts from our past, present, and future energy choices. But for those on the more well-informed side of the current “I’m not a scientist, what do I know?” climate-science-denial catchphrase, Virginia’s current and future energy choices will come to mind on every page of the book.

Nash does include a chapter on possible prescriptions for our climate fever. He tellingly notes: “we don’t lack for examples among other states,” citing North Carolina and Maryland as two of many states considerably farther along in addressing changing climate. He cites with approval Maryland’s efficiency and conservation measures, and its mandatory renewable portfolio standard, noting that Virginia is one of only nineteen states with no mandatory renewable standard at all. He mentions Maryland’s participation in the multistate Regional Greenhouse Gas Initiative. Again, “Virginia is not on the list.”

Nash asked Virginia’s Department of Environmental Quality about climate change and got this written response: “The Virginia [DEQ] does not have the expertise to study climate change issues.” One could not find a better sentence to sum up the four lost years of the McDonell-Cuccinelli administration’s climate denialism.

Governor Terry McAuliffe and Senator Mark Warner enthuse about a mindless “all of the above” energy policy that includes fracking (and associated pipelines), offshore oil drilling, coal exports, and ever more reliance on fossil fuels. (To his credit, Senator Tim Kaine has said that “all of the above” is not a strategy—yet nevertheless supports offshore oil drilling.) Virginia Climate Fever is a wake-up call for them, and for the “I’m not a scientist” crowd, and for all Virginians.

But of course there have been other such calls in the past few decades. The question is, when will enough Virginians hear them clearly, and begin to act with a sense of urgency?

Seth Heald is vice chair of the Sierra Club Virginia Chapter. He is a student in the Master of Science in Energy Policy and Climate program at Johns Hopkins University.

Note: Northern Virginians will have an opportunity on November 6 to meet Stephen Nash in Alexandria at an author talk and book signing. Details and RSVP form are here.