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Transportation Edition -- Update # 33
February 14,  2011
In This Issue
Electric Vehicle Charging
Big Blue Bus
Prices of Oil and Natural Gas
Financing Update
Contact Us!
 
About Us 

The City of Santa Monica has an ambitious goal to become a net-zero, energy independent city by 2020.
 
Solar Santa Monica is a program of the Office of Sustainability and the Environment.
 
Solar Santa Monica helps residents, businesses and property owners reduce energy consumption and generate clean, renewable energy onsite. Our Contractor Network is a tool to help you find a licensed,
reliable contractor.
 

Engelman on Roof
 
 More Awards Ceremonies

Coming March 24th -- the Solar Champion Awards! 

Join us for a celebration at the Solar Santa Monica office:  

5:30 - 7:30 p.m.  Keep your eye on the Update for more details.

 

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Electric Vehicle
 Charging SolutionsEV Charging Panel 
 

"Santa Monica is expected to have more EVs per-capita than any other surrounding city, maybe even the state," said Ed Kjaer, Director of Electric Transportation at Southern California Edison. About 50 local citizens gathered on January 31st to hear a panel of experts discuss the future of EV charging in Santa Monica, particularly in multi-family housing situations.   

 

70% of residents in Santa Monica occupy multi-family buildings and if EV vehicles are going to penetrate the market, there needs to be a charging solution for this demographic.

 

There is no one size fits all solution for charging an EV.  If you park your car in a private garage or carport you should have an easy time finding an EV charging solution.  If you live in an apartment or condo, sharing a garage or even parking on the street, what then?  Truth is...you may have a significant amount of planning and investment before a permitted solution can be implemented at your home.  

 

Get Plug-in Ready:

  1. Understand the different vehicle and charging options.
  2. Find out what it will take to install a charger at your home.
  3. Research available financial and rate incentives.

Read more about the EV Charging discussion by clicking here.  If you missed the panel, watch the experts and the lively Q&A on the Solar Santa Monica website . 


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The Bus is Coming! 

Bus Shelter 2011 

The new Big Blue Bus Shelter and bus stop redevelopment program has received the "Next LA Citation Award for Architecture" from the LA chapter of the American Institute of Architects.   

 

In addition to updated, real-time information, maps, and a cell-phone app to announce arrival times, the 360 "Blue Spots" will feature recycle bins (of course!) and solar LED lighting that illuminates the structure and waiting area.  

 

Federal Transit Administration and stimulus funds were the primary sources of funding for the project's $6.9 million budget.  Construction of the new stops is expected to begin this quarter -- watch for them!

 

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Oil and Natural Gas Prices   

It is only a matter of time before oil and gas prices become so high our society will be forced to transition to electric vehicles.  Ben Mullen, Solar Santa Monica volunteer, recently wrote this report on the relationship between oil and natural gas prices.

OIl and gas prices chart

Recently oil and natural gas prices have disconnected from their usual historical relationship. For many years, oil prices (as measured in $ per barrel) tended to be 6 to 12 times natural gas prices (as measured in $ per MMBtu). That ratio blew out to more than 20 in late 2009, briefly receded toward more traditional levels, and then expanded again.

 

A barrel of oil has roughly 6 times the energy content of a MMBtu of natural gas. If the fuels were perfect substitutes, oil prices would thus tend to be about 6 times natural gas prices. In practice, however, the ease of using oil for making gasoline makes oil more valuable. As a result, oil has usually traded higher.

 

The unusual pricing of the last two years reflects two factors. First, there has been a dramatic-and welcome-expansion in domestic natural gas supplies. That's driven natural gas prices down to less than $4 per MMBtu in early January, 2011. Second, there is limited opportunity for energy users - utilities, businesses, and homeowners - to switch from oil to natural gas. Years ago, such switching linked oil and natural gas prices relatively closely. But today those prices appear largely decoupled.

 

All of which poses an important question for investors, forecasters, and industry planners: Will historical relationships eventually reassert themselves, perhaps by longer-term fuel switching by utilities and transportation fleets to natural gas? Or is this time really different, with old pricing relationships no longer relevant?

 

One way to answer that question-or, at least, to get some insight into how others are answering it-is to look at futures prices. As illustrated in dark blue below, those prices imply that the ratio of oil to natural gas prices will remain well above historical levels for at least the next eight years. The new normal, according to futures markets, will be for oil prices to average about 15 times natural gas prices.

 

Oil and Gas Futures Chart 

 

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Financing Update 


Income taxes:  As the New Year started, we became aware of end of the year legislative action that hadn't been anticipated.  Here are highlights as they impact our energy and solar program participants:

 

1.       The tax credit for solar systems continues at 30% of the cost of the installation. 

2.       The Solar Energy Grant (taking the 30% as cash in lieu of a tax credit) was extended through 2011 for commercial solar installations.  It had been scheduled to expire at the end of 2010. 

3.       Commercial systems can now be depreciated in ONE YEAR.  This bonus depreciation is also scheduled to last through 2011. 

4.       Energy efficiency upgrades continue to be eligible for tax rebates.  Homeowners who invest in qualified water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, doors, roofs, and circulating fans are eligible for a 10% tax credit - but limited to $500.

 

Before you plan to take advantage of any of these tax benefits, be sure to seek competent tax advice.

 

Energy Upgrade California -- This new program will offer up to $4,500 in rebates for energy efficiency upgrades in single family homes.  Scheduled to kick off in just a few weeks, EUC is directing stimulus money to our community, focusing on a whole house approach to efficiency.  The highest rebates will be available for homes that achieve the most efficiency.  Watch for more!

 

PACE lives!  You may remember AB 811, passed in 2008, which allowed cities to offer low-cost loans for energy upgrades to its residents, and have them pay back through a lien on their property tax.  AB 811 crossed the country, changing its name to Property Assessed Clean Energy financing.  The movement was interrupted when the Federal Housing Finance Agency questioned the program, but interest has been rekindled.  A conference is taking place in Palm Desert March 3-4.  PACE Solutions: Bringing AB 811 Home is bringing together financing experts from around the country. 

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For questions and comments, please contact:

(310) 458-4992
  
Solar Santa Monica
1212 5th Street, First Floor
Santa Monica, CA 90401