Taking an in-depth look at the Obama energy proposals including a VC fund
Now that Sen. Barack Obama has been officially anointed as the Democratic Party's choice to head the ticket in November, it's perhaps time to take a closer look at some of his policies as they relate to the subject matter of this blog. Over at Green Fuels Forecast, they have a pretty thorough run-down on what Obama is promising and some of how he proposes to pay for it. Contrary to the sound-bites you here on the typical mainstream media news report, both candidates actually have relatively detailed proposals and its up to you to decide which is the best for the future of the United States and indeed the world. Obama has set some pretty aggressive goals for moving to renewable energy sources and getting plug-in vehicles onto American roads in large numbers. He also proposes a Clean Technologies Deployment Venture Capital Fund to help get new technology beyond the research stage. What's interesting about this point is the VC Fund terminology. Venture Capitalists don't typically invest their cash out of concern for the common good. They usually want a stake that they can cash out at IPO or Google buyout time. Will Obama's VC fund also take ownership stakes in return for government investments? Will they hold or sell those? It's an interesting approach and if they follow the typical VC model and sell successful investments, it could help raise some of the cash needed to fund more. It's also a mechanism that could use public funds in a market based way. Check out the rest of the plan at GFF.
[Source: Green Fuels Forecast]
Reader Comments (Page 1 of 1)
meme 4:32PM (8/29/2008)
I've said it before, but it's worth saying again: I'm glad to see that he understands the synergy of having a combination of clean electricity, electric vehicles, and a smart grid, and is not only claiming to fund them, but showing where the money is to come from. Things like solar and wind displace dirty coal, but make the grid more unstable. EVs can make the grid more stable, but they need a smart grid to let them know what to do, and need clean power (like solar and wind) to run. A smart grid is ineffective without a way to quickly ramp up and down consumption and a good power source. All three tie together so nicely. And I just love that this is the centerpiece of his plan, what he focuses the most on.
I'm not bullish on biofuels. They're an "easy way out" that's not really much of a way out; they just change what problem you have to deal with. That said, at least the push is for next-gen fuels, not corn or even sugarcane, and that they seem to take second fiddle to electrification of transportation.
I love the very aggressive CAFE standards. Some will hate them, but I love them.
I'm mixed on nuclear. So's this plan.
They didn't cover the one aspect that I'm least enthused about: the windfall profits tax. That's just going to encourage offshoring, stock buybacks, etc. However, the funding for that is to go to the fixed dollar value tax rebate; the funding for everything covered here is to come from sales of carbon credits. At least it's better than a gas tax holiday (i.e., the more gas you consume, the more you save; this is fixed in dollar terms, whether you even use gasoline at all). However, that's not a strong defense of it to say the least :P
So, even if that part is a miserable failure, which I suspect it probably will be, the rest stays funded; there's no way carbon credits sales won't produce the desired level of income. All in all, a solid plan.
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Chris M 6:16PM (8/29/2008)
I was rather pleased that hydrogen wasn't mentioned. Obama must have done his research, and found the costs are prohibitive and it will be decades, if ever, before H2 fuel makes any sort of financial sense, especially when cheaper more efficient battery technology is already available.
I was also pleased that he mentioned goals and not specific methods to reach those goals, that opens up innovation to determine the best way to reach those goals.
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rob 10:39PM (8/29/2008)
Obama's campaign has been cribbing notes from Rocky Mountain Institute when it comes to transportation and energy policy.
This is not a bad thing, but it'd be nice to see Amory get credited for it. Then again, maybe they'll split the nuclear weapons programs out of the Dept. of Energy and offer Amory the Secretary's position. He's already said he wouldn't take it if it came with the military part (in his first Charlie Rose interview).
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MikeW 10:22AM (8/30/2008)
I wouldn't hold my breath on those fronts.
The powers that be are holding a punch n judy show.
I am not voting dumbo or jackass.
When Obama says we can reduce the middle east component of foreign oil, that is probably true because the US is going into an economic depression [a huge one], so total consumption may be down by half.
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Mark Kiernan 1:59PM (8/30/2008)
I am truly worried about McCain's VP Palin who supports big Oil and drilling in ANWR. She seems to be a neo-Bush who will continue to snub energy independence and renewables. Her total lack of experience is scary, I can't imagine her facing countries like Russia, Eye Ran and Eye Rak.
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Chris M 6:47PM (8/30/2008)
When Barak Obama first announced he was running for President, I realized that if he made no major mistakes he would be the next president. I also realized that the opposition, both Republicans and racists, would conduct a campaign of lies, rumors and malicious gossip in an attempt to discredit him.
Bergs bogus lawsuit is just such an attempt, it has no legal merit. If Berg was truly concerned about Obamas elegibility, he could have checked the records himself rather than filing the lawsuit and loudly trumpeting his baseless charges. If there had been any basis at all for the charge, Hillary would have used it herself!
Barak was born in Hawaii, his mother was a US citizen from Kansas, his father a naturalized citizen from Kenya. He and his mother spent some time in Indonesia, but living for a time in a foriegn nation is not constitutional grounds for disqualification for the Presidency.
BTW, McCain was born to US citizens in the Panama Canal Zone, but that was considered US territory at the time, so he still qualifies as a native born citizen.
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AMcA 12:29AM (9/01/2008)
There's plenty of real venture capital out there chasing these kinds of projects. When I say real venture capital, I mean the kind that its stewards are afraid of losing. So they won't throw it at stupid, ill-conceived or half-baked projects.
Government WILL do just that. "Well, we've got another billion around here. Any ideas? OK, sure, that sounds green. Fund it."
And government won't concentrate on the job at hand. No, they will want to make sure that projects lead by persons with disabilities or of a certain race get their share of funding. Or projects that use ____ insert favorite cause of congressman from Rhode Island here ____. Serving mulitiple goals at once is a guarantee that nothing gets done right.
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david 11:51PM (11/15/2008)
I just love it when you idiots try to hype Sarah Palin's "lack of experience" She's got far more management and executive experience than Obama. That's no BS, but a FACT. When you do this you simply expose your sexism to the world. The only thing that Obama's plans are going to do is plunge us the rest of the way into a massive depression.
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