SolarCity Jumps On Retrofit Bandwagon With Building Solutions Buy

May 12, 2010

Home-energy retrofits are the latest way to go green.

That’s why SolarCity announced Wednesday it will acquire the assets of Building Solutions, a self-described home performance contractor that does energy audits and energy remodeling work.

SolarCity says the two companies have been working together and will now combine to offer a broader range of services

Silicon Valley-based SolarCity said the merger enables it to offer a broader range of services, from evaluating home heating and cooling systems to installing solar on rooftops. And at just the right time.

President Obama’s HOMESTAR legislation is moving through Congress and will offer $6 billion in rebates for home energy retrofits. The legislation appears to have a good chance of passing, with the House adopting it last week.

Fifteen states, including California, also are putting money behind energy retrofits through low-interest PACE, or Property Assessed Clean Energy, loans. In February 2010, San Francisco debuted the nation’s largest PACE program with $150 million in funding.

SolarCity, a solar installer, said it plans to offer San Rafael-based Building Solutions’ energy remodeling across its five state service area of California, Colorado, Arizona, Oregon and Texas. The Foster City company expects to be able to complete hundreds of energy-efficiency projects each month, making it one of the largest green-home contractors in the country.

According to a press release, the two companies have been working together for some time, as SolarCity has referred its customers to Building Solutions. Tighter integration is planned.

“SolarCity will integrate its proprietary solar project modeling, management and monitoring software with Building Solutions’ Web-based energy efficiency assessment software to create a powerful new analytical tool,” according to the release.

No Building Solutions employees will be let go because of the merger.


Billions In Federal Loan Guarantees Are Coming, But Then What

December 3, 2009

The Energy Department has been pouring billions of dollars this year into alternative energy companies and technologies designed to bring greater efficiency to buildings, homes and the electrical grid.

What will happen when the funding spigot is turned off?

"There is a serious risk of falling off a serious funding cliff when these dollars dry up," says Google's Dan Reicher

That question is increasingly a source of concern for clean-tech executives and industry leaders as they look toward a time when U.S. stimulus funding and loan guarantees are gone.

“There is a serious risk of falling off a serious funding cliff when these dollars dry up,” notes Dan Reicher, director of climate and energy initiatives at Google.

The novel use of the stimulus money under the Obama Administration is clearly giving a boost to the clean-energy economy and to technologies under development in labs and companies across the country.

More money is on the way. More than $50 billion of Energy Department loan guarantees is poised to begin supporting ventures and corporate expansion. Already companies such as Solyndra, Fisker and Tesla Motors have qualified.

The challenge ahead is finding sources of funding that will last for a decade or more, long after these monies are gone. “That is what it will take” to remake the nation’s energy system, says Ernie Moniz, director of MIT’s energy initiative.

Reicher estimates the financial support might need to be $15 billion a year. But with federal budget deficits, a slow economy and a war in Afghanistan, such a sum will be hard to get.

The result is “it’s going to be tough sledding over the next couple years,” he says. And rapid pressure for technologies to stand on their own without government support will take hold – putting some of the youngest, most ambitious projects at risk.


Green Economy Coming Faster Than Expected, John Doerr Says

November 18, 2009

The federal government has dangerously under invested in clean-energy technology.

The government has woefully under invested in green technology, said venture investor John Doerr

Yet the green economy is coming faster than many observers believe, legendary start-up investor John Doerr said Wednesday.

“I think we will get to a low-carbon economy much faster and at a lower cost than anybody believes,” the Kleiner Perkins Caufield & Byers venture capitalist said at the GreenBeat 2009 conference.

Doerr sounded a warning that America may not lead this next technology revolution the way it did the last. U.S. companies such as Google, Yahoo, Amazon and Facebook are the hands down leaders of the Internet.

But only four of today’s top 30 clean-tech companies were founded in the United States. Even if people haven’t yet accepted man’s role in creating greenhouse gases, they should be alarmed by the entrepreneurial shift, he said.

Part of the reason is the lack of federal investment under the head-in-the-sand Republican George Bush. “In green (tech) we’re woefully under funded,” Doerr said. Federal funding was less than $1 billion last year, and research at universities is nothing like it was during the early years of high tech.

President Barack Obama has changed direction. The Obama Administration has steered billions into promising solar, smart-grid and energy-conservation efforts.

“The president has a very clear agenda when it comes to green” he said. As a result, the country will be better prepared when the green economy arrives.


BT Group Could Rekindle Net Neutrality Debate

June 12, 2009

BT Group, the European telecom giant and owner of British Telecommunication, has admitted to throttling back speeds of the BBC video content player, iPlayer.

BT admits to throttling back traffic for the BBC video player

BT admits to throttling back traffic for the BBC video player

Now it says it wants content providers to help shoulder the financial burden of delivering video and other high-bandwidth data streams to Internet consumers.

This is exactly the type of arm-twisting proponents of net neutrality reform hoped to avoid. Recently, the momentum behind net-neutrality legislation in the U.S. has begun to pick up.

Supporters cite President Obama’s recent statement that the Internet should be “open and free” as an indication he is behind such an initiative. Obama made the comment during a speech about Internet security.

Now it is likely these backers of an initiative will have new ammunition in the BT controversy, even thought BT does not provide Internet-access in the U.S.

An article on Silicon.com notes that a BT spokesperson on Thursday admitted the company “throttles video traffic to 896 Kbps for Option 1 customers between 5 p.m. and midnight.”

As video traffic increases, it is unsustainable for ISPs to pick up the bill, the spokesperson goes on to say.

In the U.S., both Barack Obama’s nominee to head the Federal Communications Commission, Julius Genachowski, and the new leader of the Federal Trade Commission, Jon Leibowitz, are backers of net neutrality. In addition, Democrats run key committees in Congress.

As a result, don’t be surprised to see legislation coming from Washington and don’t be surprised to hear the BT flap waved about in the process.


Government Audit Takes Aim At Obama Broadband Stimulus Plan

April 15, 2009

If past efforts are a guide, President Barack Obama’s plan to spend $7.2 billion to bring broadband to rural communities may fall short of its goals.

President Obama needs to provide more than just broad guidelines for his $7.2 billion in broadband stimulus

President Obama needs to provide more than just broad guidelines for his $7.2 billion in broadband stimulus

Money allocated under earlier government efforts to bring Internet connections to America’s smallest communities hasn’t always been spent properly.

This is the conclusion of a report by the inspector general at the Department of Agriculture that was released this week and which examined the $1.35 billion in loans that have been granted since 2001.

The report points to a necessity for the new Obama program: establish clear rules and accountability. If Obama fails to lay out clear details for the program, the money will not be allocated with a well-defined purpose and some of it is likely to be wasted.

The report found that some of the earlier loans were made to communities that already had broadband service and which were close to metropolitan areas, instead of in rural areas of the country.

When confronted with Congressional demands to revise the program, administrators hesitated to make changes to the program’s rules, the report found.

The administrators said they were waiting for Congressional revisions to the program expected in 2008. In the meantime, however, they had proposed rules limiting the loans to communities with fewer than four service providers – a definition that could be argued to include most of the country.

If Obama wants his proposal to succeed, he had better offer more than the broad overview he has offered so far.


US Attorney General Commands Open Government

April 6, 2009

In a recent memorandum to heads of federal executive departments and agencies, Attorney General Eric Holder, Jr. has followed President Obama’s earlier lead in instructing that the Freedom of Information Act be administered with the clear presumption of openness.

According to the Attorney General, this presumption has two important implications.

The first implication is that an agency should not withhold requested government information simply because it is permitted to do so under the law. Rather, discretionary disclosures are strongly encouraged. Just because an agency technically may be able to establish that certain records are covered by a FOIA exemption is not reason enough to withhold the records.

Perhaps more sun will shine on the affairs and activities of government, says Eric Sinrod

Perhaps more sun will shine on the affairs and activities of government, says Eric Sinrod

The second implication is that even when an agency concludes that it cannot make a full disclosure with respect to requested records, it nevertheless must consider whether a partial disclosure is appropriate. Indeed, according to the Attorney General, agencies always should be cognizant that the FOIA requires that reasonable steps be taken to segregate and release non-exempt information.

The Attorney General, of course, notes that the disclosure obligation arising under the FOIA is not absolute. He understands that the statute contains meaningful exemptions designed to protect interests such as national security, personal privacy, and law enforcement.

Nevertheless, the Attorney General echoes the President in reminding government officials that they cannot shield information as confidential merely because they may be embarrassed by disclosure, because errors or failures might be made public, or because of “speculative or abstract fears.”

In responding to President Obama’s directive that he issue new FOIA guidelines, Attorney General Holder rescinded an Attorney General FOIA memorandum from 2001 that provided that the Department of Justice would defend decisions to withhold records “unless they lack a sound legal basis or present an unwarranted risk of adverse impact on the ability of other agencies to protect other important records.”

In its place, Attorney General Holder has announced that the Department of Justice now will defend a denial of a FOIA request only if the agency reasonably foresees that disclosure would harm an interest protected by one of the FOIA exemptions or if disclosure is prohibited as a matter of law.

In response to the President’s instruction to agencies to “use modern technology to inform citizens what is known and done by their Government,” the Attorney General has directed that agencies should “readily and systematically post information online in advance of any public request.”

Attorney General Holder also has encouraged agencies to reduce FOIA backlogs and to respond to information requests in a more timely manner. Along those lines, he notes that “timely disclosure of information is an essential component of transparency,” and that “long delays should not be viewed as an inevitable and insurmountable consequence of high demand.”

Perhaps the foregoing directives by the Attorney General will cause more sun to shine on the affairs and activities of government. However, this will not happen overnight. Agencies are staffed by actual human beings. These people have been operating within a different, less-disclosure-oriented culture over the past eight years. But, over time, paradigm shifts are possible, starting from the top down.

This column is written by Eric Sinrod, an attorney at Duane Morris and a guest blogger at TechPulse 360. It was originally published on FindLaw.com.


Obama Plan To Raise Taxes On Private Equity Worries VCs

March 2, 2009

Barack Obama’s plan to raise taxes on hedge funds and private-equity firms is raising the ire of venture capitalists.

Carried interest from investments would be taxed at a higher rate under Barack Obamas plan

Carried interest from investments would be taxed at a higher rate under Barack Obama's plan

The president last week made hay with a bold plan to shift wealth from America’s rich to its middle class, easing a three decades of growing income inequity in the country.

One measure to accomplish this – unveiled in the young president’s first budget – is a proposal to increase taxes on “carried interest,” the money general partners and hedge-fund managers pocket from their investment returns. The majority of the investment return goes to limited partners and investors.

Today the payout to VCs is taxed at 15 percent, the rate for capital gains. Under Obama’s plan, the rate would increase to that levied against ordinary income, or as much as 39 percent.

Such a boost would discourage people from taking jobs as venture capitalists, especially young people who have other career opportunities, says Mark Heesen, president of the National Venture Capital Association.

Of the nation’s 7,000 venture capitalists, only about 500 received carried interest checks last year, says Heesen. That’s because earning carried interest is hard. Portfolio companies take years to grow into valuable businesses that can then be sold or which can launch initial public offerings.

Many fail before they get there.

“If you put impediments in front of venture capitalists, there will be less innovation going on,” says Heesen.


Nearly 40% Of TV Stations Buck Congress And Plan To Go Digital Next Week

February 11, 2009

Almost 40 percent of the nation’s television stations are resisting Congress and the Obama Administration by saying they are prepared to switch to digital signals next week.

The FCC has to approve each stations switch, says Michael Copps

The FCC has to approve each station's switch, says Michael Copps

The names of the 681 stations are listed on the Federal Communications Commission’s Web site, and their actions represent in essence an uprising to the government’s demand that the switch be delayed until June 12.

The original deadline had been Feb. 17, but President Barack Obama had asked for the delay because some viewers are not prepared for it with digital converter boxes and new antennas.

Most of American television viewers – about 85 percent – won’t be affected because they get television signals from cable companies or by satellite.

The number of stations rebelling to the delay is greater than originally reported, suggesting that a delay would hamper their plans for their networks and infrastructures and that maintaining traditional over-the-air analog signals would cost them money.

In a comment Wednesday morning, FCC head Michael Copps said the agency may block some stations from moving ahead with their plans. The FCC has to approve each station’s switch.


John Doerr And Charles Phillips Named By Obama To Board

February 6, 2009

President Barack Obama named two prominent high-tech executives to an Economic Recovery Advisory Board on Friday, adding to Silicon Valley’s clout in Washington.

Oracles Charles Phillips named to presidential advisory board

Oracle's Charles Phillips named to presidential advisory board

Named by the president were John Doerr, a partner at the venture capital firm Kleiner Perkins Caufield & Byers, and Charles Phillips, a president at Oracle.

“I created this board to enlist voices to come from beyond the Washington echo chamber,” Obama said in brief remarks. “I also want to be sure that we’re tapping a broad and diverse range of opinion from across the country, because a historic crisis demands a historic response.”

The newly created board includes high-pedigree executives from manufacturing, finance and labor. It is to be headed by Paul Volcker, an economist and former chairman of the Federal Reserve.

The other members are:

*William H. Donaldson, former SEC chair;
*Roger W. Ferguson, Jr., President & CEO, TIAA-CREF
*Robert Wolf, Chairman & CEO, UBS Group Americas
*David F. Swensen, CIO, Yale University
*Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.
*Penny Pritzker, Chairman & Founder, Pritzker Realty Group
*Jeffrey R. Immelt, CEO, GE
*Jim Owens, Chairman and CEO, Caterpillar Inc.
*Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion
*Anna Burger, Chair, Change to Win
*Richard L. Trumka, Secretary-Treasurer, AFL-CIO
*Laura D’Andrea Tyson, Dean, Haas School of Business at the University of California at Berkeley
*Martin Feldstein, George F. Baker Professor of Economics, Harvard University


Tech Policy Under Obama: Broadband, Net Neutrality, Diverse Ownership

January 26, 2009

The new administration’s Web site went up over the weekend and here is what America’s new, tech-savvy president has to say about technology:

Let us be the generation that reshapes our economy to compete in the digital age

Let us be the generation that reshapes our economy to compete in the digital age

*Protect the Openness of the Internet: Support the principle of network neutrality to preserve the benefits of open competition on the Internet.

*Encourage Diversity in Media Ownership: Encourage diversity in the ownership of broadcast media (and) promote the development of new media outlets for expression of diverse viewpoints.

*Deploy Next-Generation Broadband: Work towards true broadband in every community in America through a combination of reform of the Universal Service Fund, better use of the nation’s wireless spectrum, promotion of next-generation facilities, technologies and applications, and new tax and loan incentives. America should lead the world in broadband penetration and Internet access.

*Invest in the Sciences: Double federal funding for basic research over ten years, changing the posture of our federal government to one that embraces science and technology.

“Let us be the generation that reshapes our economy to compete in the digital age.” Barack Obama, February 2007


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