Business Commute Challenge – Follow-Up

In my previous Business Commute Challenge 2011 post, I kind of put the carrot out there and challenged myself to see if I could ride my bike to work every day for a month. Not just the one week of the BCC, but until June 10.

Today’s June 10 and I want to report back to you that I made it.

Well, almost.

During the month between May 10 and June 10, I only drove my car to work two days. I rode my bike all the other days. To and from work. To and from meetings. I logged 224 miles on my bike. Which means I saved about $40 in gasoline, lost about 5 pounds and got some pretty good workouts.

The two days I drove were the two days right after Memorial Day weekend. I got a bad cold over the weekend and was still feeling sick Tuesday and Wednesday. I didn’t feel like riding. Hey, I was having trouble breathing and was coughing just sitting still. So I drove.

But the point isn’t that I didn’t exactly make my goal. The point is I think I enjoy biking even more now than when I started. Fair enough, we’ve had some pretty mild weather this last month. Very little rain (at least in the mornings coming in and the evenings going home). But I enjoy riding even more now than a month ago.

And, also fair enough, Eugene, Oregon, where I live has to have some of the best bike paths, lanes and streets of any community I know. So when it’s easier to get somewhere by bike, we are more likely to ride. And I have to admit, riding past a line of cars stuck in traffic has a certain feeling to it that’s a little hard to describe.

And riding along the Ruth Bascom Riverbank Trail bike/pedestrian path and enjoying the fresh, crisp morning air, chirping birds, pooping geese (well, I could live without the pooping geese, but the goslings are cute), and the spring flowers has a certain feeling, too, that is kind of hard to describe.

I’m finding I like biking better than driving. Not being stuck in traffic, inhaling exhaust fumes, enduring tense, uptight drivers. Oh, there are the few bikers and pedestrians that are uptight, but they are the few. And some of my biking is along a busy street, so I suck my share of fumes. But I have some good gear: a good helmet, rain gear, wrap-around eye glasses and wonderful saddle bags.

For me, at this point, it’s become less about saving gas, having a smaller carbon footprint, polluting less and more about sheer enjoyment.

So I’m REALLY hooked now. I’ll check back with you on July 10 and give you all another update.

Energy Subsidies and the “Free Market”

Time and time again, I hear people say that renewables should be subject to the “free market” and should not receive government subsidies. After all, if renewables such as solar, wind and geothermal are viable, the consumer should decide, not the government. And while I understand (and even to a point agree) with those comments, the problem is we simply don’t have a level playing field. Nor do we have (or will we ever have) a truly free market economy. As Wikipedia says, “purely free markets… are theoretical constructs.” So after a recent spate of posts on a couple of threads on my Facebook page, I thought I would address some of the issues that came up.

PURPOSE OF SUBSIDIES
I think the purpose of subsidies is to get fledgling industries off the ground so they can be viable. Call it investment capital, call it what you want, that’s how our culture works. Entrepreneurs have an idea and get investors and/or tax breaks for a period of time so they can build a good foundation and become productive. There is often a huge amount of research and development costs associated with a start-up company. And I’ll be the first to say I’m not an economist. But I will go on to say this isn’t rocket science, either.

The chart I’ve included with this post is based on a 2009 report by the Environmental Law Institute report titled “Estimating U. S. Government Subsidies to Energy Sources: 2002-2008.” The source of the information in the report comes from the Internal Revenue Service, the US Department of Energy, the Congressional Joint Committee on Taxation and the US Department of Agriculture. The report covers the 6-year cumulative period of 2002-2008.

It’s a telling chart because it shows just how disproportionate the playing field really is. 72% of Federal subsidies for energy go to fossil fuels, not renewables. And if you group biofuel in with the fossil fuels (I do; biofuel is stupid), it’s more like 88%. The report goes into a great amount of detail regarding how the subsidies are parsed out.

Historically, a large amount of the subsidies for fossil fuel goes to coal. You know, the same people who brought you mountaintop removal. And black lung disease (and those suffering from it also are subsidized). Oil companies also receive a huge amount of subsidies for off-shore drilling costs, foreign exploration credits and the like.

But I guess my point here is that oil and coal have received subsidies for decades and at least the oil companies, who realistically hold a monopoly over us, are still seeing record profits. It seems subsidies should help companies get established, then phase out, not add on to profits. And the argument that we need to look at how much tax the oil companies pay would be valid if they weren’t paying tax on money we give them. Would you be willing to pay $300 tax on my gift of $1,000 to you? I sure would.

ON AGAIN/OFF AGAIN
In the 1980s, there were some pretty substantial tax credits (yes, subsidies) for solar. During that time, my parents installed a solar hot water system on their house. It’s still plugging along, churning out hot water. Then the Federal credits expired in 2000, 2002, 2004 and almost in 2008. They’ve currently been renewed through 2016.

But in my home state of Oregon, with one of the most aggressive tax credit programs around, the Legislature may look at eliminating them.

It’s this on again/off again situation that never allows any renewable energy company to ever really get off the ground. Why can’t we commit to a consistent subsidy for renewables over 20 or 25 years? It’s that see-saw effect, much like Roland Martin said in his blog about gasoline prices posted here a while back. And it essentially is strangling any hope of renewable energy ever coming close to competing with Big Oil.

LOOK PAST OUR NOSE
It’s the short-sighted view we have, where we don’t look past our nose to the future. We have these spurts of knee-jerk reactions when things get “bad” then fall into complacency when it evens out temporarily.

We can’t keep living like that. If we evened out the subsidies and shifted $30 billion of the oil subsidies to renewables, it would help. I believe even with fossil fuels’ head start, that shift alone, if continued consistently for 20 years, would make renewables viable and an integral part of our culture. And it would go a long way toward leveling that playing field.

Is anyone willing to give it a try?