The Business Facilities Blog

Wednesday, June 13, 2007

Green Machine

When I think of summer the first three things that come to mind are Saturdays at the beach, ice cream, and...higher gas prices.

Being a big fan of the whole push towards a "greener," cleaner energy culture, I was delighted to hear last week that Toyota's global sales of hybrid vehicles have hit a record 1 million as of the end of May. Of those, nearly 345,000 hybrids were sold in Japan, while 702,000 were sold abroad, according to a statement released by the company last week. Sales of Toyota hybrids have climbed from just 18,000 in 1998 to 312,500 last year. Concern over gas prices, global warming, and pollution have all helped to drive the demand for hybrids.

The Prius is the clear winner when it comes to hybrids, with a total of 757,600 units sold since its 1997 introduction in Japan. Toyota began selling the Prius in North America, Europe, and other places in 2000. Last year, the model made up more than 40% of hybrid sales in the U.S.

And on another green energy note:
State Reps. Kate Ebli, D-Monroe, and Kathy Angerer, D-Dundee, unveiled a plan this past Monday aimed at making Michigan a leader in the renewable energy production arena, which should help attract cutting-edge industries and boost the state's economy.

The plan involves increasing tax incentives for alternative energy, offering tax breaks for individual households employing the alternatives and protecting the Great Lakes and Michigan's other natural resources. Some of the ideas are similar to those proposed earlier in the year by Governor Granholm or Michigan Public Service Commission leader J. Peter Lark.

"With our highly skilled workforce and our outstanding universities, our state is in an ideal position to become a key player in the renewable energy sector," Rep. Angerer said. "Michigan gave birth to the auto industry, and Michigan will pave the way for this renewable energy economy."

House Democrats' 21st Century Renewable Energy Plan will:
¥ Require that renewable energy sources (such as solar, wind, hydroelectric and biomass-based power) account for 10% of the state's energy production by 2015. The plan sets a goal of 25% by 2025.

¥ Foster more "alternative-energy renaissance zones" across the state by including solar and wind generation and fuel-cell technologies among those who qualify for renaissance zone tax abatements.

¥ Promote energy conservation through updated construction codes and consumer tax credits for energy-efficient appliances.

¥ Provide tax credits for the purchase of solar equipment.

¥ Establish a statewide target of reducing electricity consumption by 1% a year.

House Democrats also will be examining ways to expand programs at community colleges to train workers to maintain new renewable-energy technologies.

A program focused on renewable energy and energy efficiency would create tens of thousands of new jobs and pump hundreds of millions of dollars into Michigan's economy, according to a recent NextEnergy study prepared for the Michigan Department of Environmental Quality.

The House Democrats said the points of the plan will be introduced as bills soon. The Energy and Technology Committee and the Great Lakes and Environment Committee, both of which Rep. Ebli sits on, likely will hear the bills in the next few weeks. We'll keep you posted!

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