The Great Solar Scam Of '99
By Dan Huff
TODAY AND tomorrow top federal energy officials will be
in town for the grand opening of Civano, the erstwhile "solar
village" under construction southeast of Tucson. The visit
by Peter Dreyfuss and Dan W. Reicher is also tied to President
Bill Clinton's two-year-old Million Solar Roofs Initiative, which
Dreyfuss heads. Reicher is a U.S. assistant secretary of energy.
Supported by public money, Solar Roofs is supposed to involve
community partnerships that put solar energy into widespread use
and benefit as many people as possible. Sounds good, except that
here in Tucson some opportunists are trying to hijack the program
for their own benefit, not the community's.
DOES ANYBODY remember the solar water heating fiasco of
the 1980s? In a nutshell, the good guys lost their fight to promote
solar energy in a sane and sensible manner when the feds got behind
the idea with tax credits.
Up to that point in Arizona, a state blessed (or cursed) with
abundant sunshine, a solid industry had grown with quality suppliers
deeply committed to good use of the technology. These guys knew
what worked and what didn't from long personal experience. But
after the feds jumped in, suddenly a bunch of fly-by-night solar
scammers appeared from out of nowhere, the competition grew cutthroat,
well-meaning but woefully uninformed consumers bought shoddy systems
that crapped out on them, and the whole industry just sort of
dried up and blew away.
The opportunists had a feeding frenzy at the public trough and
you-know-who was left holding the bag. Even though the technology
is much better today, when was the last time you heard a homeowner
talking about installing a passive solar water heater?
AND NOW THE same sorry scenario is poised to repeat itself
with an even more promising, much more advanced solar technology,
photovoltaics. That's right: It's now economically feasible, though
certainly not necessarily cheaper at present, for some homeowners
to generate much of their electricity directly from sunlight.
Think about the immense potential impact of that simple fact:
clean, abundant energy available for the taking, and to hell with
the power company. To hell with their coal-fired generators, to
hell with the nuclear power industry, to hell with the economic
and environmental havoc they cause. Obviously, the federal government,
addicted as it is to the blandishments of big business, isn't
about to stand idly by and let that happen, is it?
What's that? You're damn right we're cynical and mistrusting
of government in these matters, and for good reason. It has let
special interests block solar energy time after time. Just look
at what's going on right here, on a small scale, in our own backyard:
GIVEN A CHOICE between a broadly based, technologically
sophisticated, community group of solar leaders and community
activists, or a small cabal of profiteers sucking up to Tucson
Electric Power, who would you trust to pursue and protect the
public's interests in solar energy?
Yes, it's a loaded question, and the facts are explosive:
On the one hand we have the Tucson Solar Alliance, the aforementioned
good guys, who formed a 501(c)(3) non-profit community partnership
in support of the Million Solar Roofs Initiative two years ago.
On the other hand we have the deceptively copycat Tucson Coalition
for Solar Energy, aka Tucson Solar Coalition, which hastily surfaced
later, apparently founded by the owner of a new solar company
and a local developer and former president of the Southern Arizona
Homebuilders Association, John Wesley Miller.
At some point, pro-business City Councilwoman Shirley Scott reportedly
introduced the Coalition cabal to the developers of Civano, another
interesting story in itself, but one which must wait until another
day.
Suffice it to say the Solar Alliance wants the possibilities
of solar energy to be available to everyone in the community,
while those behind the Coalition want to corner the solar market.
John Miller made a big splash recently as the would-be savior
of Tucson's historic Armory Park neighborhood, whose residents
felt menaced by a proposal for an ugly, high-density apartment
project nearby. Miller instead proposed building "affordable"
solar housing complete with photovoltaics.
In the first place, "affordable" housing doesn't start
at $100,000 or $100 per square foot, as Miller is proposing; and
in the second place, solar experts note that Miller's plans have
most of his houses facing the wrong direction to make good use
of solar energy.
So what's really going on there?
Miller's project is billed as a "partnership" with--guess
who--TEP, the same company that has been dragging its feet and
everyone else's on solar energy for years.
It seems the local electric company recently bought a 50 percent
stake in a company called Global Solar. Our sources tell us Miller
approached TEP asking to become an exclusive distributor for Global
Solar's photovoltaic systems, which are based on an exotic new
thin-film technology never tried before.
Sounds impressive, and it very well may be. But everybody seems
to have the impression Global Solar is about to make these fantastic
new solar panels available tomorrow for home use. Yet Global Solar
says its primary market is in military and aerospace applications,
where big bucks and cost overruns don't seem to matter.
Furthermore, nobody seems to be mentioning basics like cost,
warranties, and how long these will last in the powerful Arizona
sun.
Meanwhile, someone is pushing yet another thin-film photovoltaic
system that's so new that no one knows how long it will last either.
These have a 10-year warranty, compared with 20- to 25-year warranties
for other, older pv systems based on less advanced technology.
When a homeowner is paying $12,000 for something, that might make
a difference to him.
But how many people know these things? And what happens when
a builder makes the choice instead of the homeowner? This is beginning
to sound like the flimflam that killed the bright promise of solar
water heating in our community. Watch your behinds on this one,
hapless homeowners.
And we should watch Miller closely, too. The onetime head of
Arizona's Solar Energy Commission presided over the squandering
of millions of dollars that were supposed to promote sensible
solar projects in Arizona. Instead, Miller and UA environmental
guru Carl Hodges and their friends divided up three-quarters of
the available cash among themselves for schemes that, in our opinion,
had little to do with solar energy. Hodges milked one project
for $18 million, while building nothing.
At the very least, we believe these people should have been tried
on conflict-of-interest charges. They weren't. But then, like
the federal pols, Arizona's lawmakers also know how to kiss industry's
ass: Besides Miller and Hodges, political powerbroker and nuclear
power heavyweight Keith Turley, former head of the Phoenix-based
utility, APS, was also head of the state solar commission at one
point. Yeah, that makes sense--the utilities wouldn't want solar
energy out of control, would they?
AND IT DOESN'T get much better as it gets closer to home
and tomorrow's sunrise. Out at Civano, the one-time model solar
development has become a good example of how not to do
solar energy.
The two federal energy officials now visiting Civano should pause
for a few moments to check the project's homesite layouts. They'll
discover that very few of these houses are oriented properly for
solar energy: just about every which way but south. They can also
find, incredibly, photovoltaic power systems being used there
in conjunction with electric water heaters and other big energy-wasting
appliances. Whatever happened to passive solar water heating,
indeed.
One Civano-affiliated company is offering token 200-watt photovoltaic
systems. Whee! How many light bulbs will those power? Could it
be that TEP has something to do with this? You bet it does. It's
promoting all-electric houses, of course.
In another absurdity, the Arizona Energy Office asked some architects
and engineers to examine Civano's request for roughly $300,000
for a community center. The experts reported back to the state,
saying, in effect, the project had little to do with solar energy.
But the Energy Office subsequently forked over the money anyway,
as an "education" grant.
And just what is Civano's No. 1 strategy to lower energy costs?
Reducing window area. Hey, kids! Be the first in town to live
in one of those new-fangled "solar caves!"
The situation has degenerated so badly, we're told even many
in the local development community, not generally considered a
very forward-thinking bunch, are disgusted with what's gone on
at Civano.
And this hopelessly muddled bullshit is occurring in a region
where experts agree that the owner of a properly situated, properly
designed solar home can expect a savings of 75 percent on summer
cooling bills, while incurring virtually no expense at all for
winter heating. Ever.
HOW DID SUCH absurdities come to pass in a taxpayer-supported
project originally billed as a shining, world-class, model demonstration
of solar energy at its best?
We blame the City of Tucson. About five years ago, much to our
bafflement and city taxpayers' chagrin, then-City Manager Michael
Brown pushed the city to assume responsibility for Civano.
Why? Perhaps it had something to do with that well-reported ride
Brown took with legendary land speculator Donald R. Diamond in
the Tucson Police Department helicopter. Then again, despite considerable
evidence to the contrary, perhaps Brown was merely a fool.
At any rate, Diamond's massive, billion-dollar-plus proposed
development, the Rocking K Ranch, lies just east of Civano, and
Diamond has been very clever about getting local government to
pick up the bill for sewer, water and other infrastructure costs
for his projects. Despite widespread complaints that they were
fostering urban sprawl, it was relatively easy for the Tucson
City Council to extend--at a cost of over $3 million--infrastructure
to Civano, that noble experiment in the desert. How fortunate
for Diamond then, when that move put sewer and other services
so much closer to his own grandiose sprawlopolis in the sticks
at no cost to him.
But we digress.
For whatever reason, city government became deeply enmeshed,
and whenever that happens you can bet the special interests will
party like maggots in putrefying pork.
In the meantime, Miller and friends hooked up with Valerie Rauluk,
a former Wall Street whiz. They cleverly tried to make their Solar
Coalition look exactly like the good guys at the much more broadly
based Tucson Solar Alliance. We'll spare you the sordid details,
but suffice it to say the Coalition, which quickly became a subsidiary
of TEP, began competing with the community-based Alliance for
the federal dollars and other resources becoming available for
community solar programs.
So while the Tucson Solar Alliance is promoting community cooperation
and a level playing field for everyone, including Coalition partners,
the Coalition has been working to undermine them and divert scarce
resources to their own projects and their own benefit. They may
call themselves a coalition, but they're not incorporated and
they exist only on paper. Whenever they submit a proposal or sign
a contract, it's Tucson Electric Power that does the signing.
TEP has given the public very little reason for trust. The company
is still trying to recover from the coal plant fiasco that resulted
when its former leaders engineered a mega-million-dollar stock
scam, sold their shares and fled to the Caribbean to enjoy their
retirement. Guess who's paying for that one.
Then, of course, there's the latest scam, restructuring the electric
industry, which may prove to be an even greater financial disaster
than the savings and loan industry meltdown. If the purpose is
to let big electricity consumers, like the mines and big industry,
pay less for their power, who do you suppose is going to end up
making up for it?
IN JANUARY 1998, the City Council and Board of Supervisors
both voted unanimously to join in the formation of the Tucson
Solar Alliance. Mayor George Miller wrote a letter to President
Clinton announcing that Tucson had formed this community partnership
in support of the Million Solar Roofs Initiative.
So how is it that the Mayor's signature appears on a letter dated
in October to Peter Dreyfuss, head of the Million Solar Roofs
project, endorsing TEP's Coalition?
Yikes! Not hearing about this until much later, the good guys
at the Alliance went back to the City Council, whose members said
they had never agreed to such an arrangement. To this day, Miller
has not uttered one word of explanation. Amazingly, at the same
time, the Mayor's office was sending another letter to U.S. Department
of Energy on behalf of the Solar Alliance.
Perhaps the Mayor was merely confused by the similar-sounding
names--he'd been recently released from the hospital about the
time of the letter. Of course, we here at the Tucson Weekly
prefer to believe he's hopelessly senile.
The alternative explanation is far more sinister. George Miller
is an old-fashioned pro-growth, annex-to-the-horizon, let-them-drink-CAP-water
cementhead. In his moth-eaten book, sprawl is good. TEP couldn't
agree more. And since TEP officials have never seen fit to hire
anyone who knows much of anything about solar power, they have
one big, fat, greasy reason to try like hell to control it: fear.
TEP is a putz when it comes to solar energy, and has been determinedly
opposing it for decades.
Through some fluke or public relations department mistake, TEP
was the only power company to support the Arizona Solar Portfolio,
a plan to promote solar power generation. But when it came time
to put up or shut up, TEP officials complained that using solar
for 1 percent of their power generation was too much.
They later complained about the revised plan to generate 0.5
percent of their power using solar, and then again about the final
plan for 0.2 percent. How low can you go? Is the big, bad puddy-tat
afwraid of the widdle mousey-wousey?
You bet your ass it is.
And you can also bet your ass that all of our shiny new hopes
for this latest burst of solar's promise of economic liberation
will be punched, kicked and shat upon by the flimflam scammers
and the grid-greedy, political power companies long before it
becomes a happy fact of everyday life.
WILL TUCSON'S SOLAR future continue to be guided by community
cooperation for the good of all, or will it go under the thumb
of TEP? Stay tuned.
Recently the Pima County Board of Supervisors unanimously reaffirmed
their support for the Tucson Solar Alliance and its designation
as the official community representative and partnership for the
Million Solar Roofs Initiative. Let's hope the Tucson City Council
does the same.
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