Up Sucker Creek

Up Sucker Creek
Photo Courtesy of the Lake Oswego Library

Friday, November 24, 2017

Don't bet the farm on green


If your city or state does spend taxpayer funds on green schemes, it most likely isn't worth the money, but, you can feel green about spending more on renewables - like on Lake Oswego's PGE bill.  Spending additional taxpayers' money on an unnecessary item is merely a gesture that signifies this noble act is important to our city's "brand."  How many other city councils spend needlessly, burnishing their brand?

At some point there will be a resurgence in (modular) renewable, nuclear energy (fuel recycling) regional plants and ways to store power generate by wind, wave and solar power.  Right now, pouring too much time and money into today's technology is a huge mistake.  Read articles by Swedish ecologist, Bjorn Lomborg for his take on large-scale energy conversions. (Search this blog and the internet.)  America (and Oregon) doesn't need to follow German down an economically destructive rathole.

Unfortunately, some extreme greens in Oregon, Oregon cities and the USA continue to push for increasingly steep and expensive carbon reductions and GHG, and restrict automobile use.

NOTE: USC is all for carbon reductions wherever they are realistic, beneficial on a large scale, and do not harm middle and low-income families. A great idea has been the CAFE standards for cars and light trucks.  Today, with more cars on the road and more vehicle miles driven than ever, the total amount of carbon-based fuel used is lower than in 1995.  Increasing CAFE standards will continue to improve gas consumption in the future as cars achieve better MPG, and more people use electric cars.  Some regular gas cars can now equal the 40+ MPG I get from my Prius. A bad idea is requiring ethanol be used in winter gas.  We turn American fields into gas farms, use coal and oil-based energy creating the biofuel, and take farmland out of food production. give farmers government subsidies to grow indelible corn, and it's crummy gas!  My mileage goes way down with the ethanol mix - rather counterproductive. Bad ideas are not exclusive to Germany; however Germany's virtuous extremism should be a warning.




Wall Street Journal, November 18, 2017
REVIEW AND OUTLOOK
Editorial Board
Germany’s Green Energy Meltdown
Voters promised a virtuous revolution get coal and high prices instead.

Amer­i­can cli­mate-change ac­tivists point to Eu­rope, and es­pe­cially Ger­many, as the paragon of green en­ergy virtue. But they ought to look closer at An­gela Merkel’s po­lit­i­cal strug­gles as she tries to form a new gov­ern­ment in Berlin amid the eco­nomic fall­out from the Chan­cel­lor’s fail­ing en­ergy revolution.

Berlin last month conceded it will miss its 2020 car­bon emis­sions-re­duction goal, hav­ing cut em­sions by just un­der 30% com­pared with 1990 in­stead of the 40% that Mrs. Merkel promised. The goal of 55% by 2030 is al­most surely out of reach.

Mrs. Merkel’s fail­ure comes de­spite as­tro­nom­ical costs. By one es­ti­mate, busi­nesses and house­holds paid an ex­tra €125 bil­lion in in­creased elec­tric­ity bills be­tween 2000 and 2015 to sub­si­dize  renewables, on top of bil­lions more in other hand­outs. Ger­mans join Danes in pay­ing the high­est house­hold elec­tricity rates in Eu­rope, and Ger­man com­pa­nies pay near the top among in­dustrial users. This is a big rea­son Mrs. Merkel un­der-per­formed in Sep­tember’s elec­tion.

Berlin has heav­ily sub­si­dized re­new­able en­ergy since 2000, pri­marily via feed-in tar­iffs re­quir­ing util­i­ties to buy elec­tric­ity from re­new­able gen­er­a­tors at above-mar­ket rates. Mrs. Merkel put that effort into over­drive in 2010 when she in­tro­duced the En­ergiewende, or en­ergy rev­o­lu­tion.

En­ergiewende en­thu­siasts say the pol­icy is rack­ing up suc­cesses de­spite the prob­lems. That’s true only in the sense that if you throw enough money at something, some of the cash has to stick. In electric gen­er­ating ca­pac­ity, for in­stance, re­new­ables are now run­ning al­most even with tra­ditional fuel sources.

Yet much of that ca­pacity is wasted—only one-third of Ger­many’s elec­tricity is ac­tu­ally gen­er­ated by re­new­ables. Berlin has in­vested heav­ily in wind and so­lar power that is eas­i­est to gen­er­ate in parts of Ger­many that need the power the least, es­pe­cially the north. Berlin will need to spend an­other huge sum build­ing trans­mis­sion lines to the in­dus­trial south.

The other costs re­late to pro­vid­ing elec­tric­ity when the wind doesn’t blow and the sun doesn’t shine, which is of­ten in Ger­many. The tra­di­tional plants needed to fill in the gaps are over­whelm­ingly fired by coal, on which Ger­many still re­lies for roughly 40% of its power.

No won­der vot­ers are in re­volt. Sur­veys say that in the­ory Ger­mans like be­ing green, but polls about house­hold en­ergy costs say oth­er­wise. The right-wing Al­ter­na­tive for Ger­many (AfD) won a surprising 13% vote share in part on a prom­ise to end the Energiewende im­me­di­ately. A new study from the RWI Leib­niz In­sti­tute for Eco­nomic Re­search finds that 61% of Ger­mans wouldn’t want to pay even one eu­ro­cent more per kilo­watt-hour of elec­tric­ity to fund more re­new­ables.

Sunday, November 19, 2017

Will Gov ever "Get" business?

Willful Ignorance.
Facts do not cease to exist because they are ignored.
—Aldous Huxley
"Central Planners plan.  Human behavior has no standing in their beliefs."
                                                                            -- USC  

USC Diaclaimer: I have been the owner of Class C apartments for about 20 years and have a great deal of experience with the multifamily industry and low-income housing.

Government runs on policy and popular opinion - emotion - not logic, fact, and unpopular acts.  So when it comes to making financial decisions and policy dealing with businesses, the results are often negative, and sometimes disasterous.  Disastrous to businesses, yes, but also counterproductive to the goals they want to achieve and people they want to help.

The City of Portland Bureau of Planning and Sustainability commissioned the PSU Toulon School of Department of Urban Studies and Planning to do a study of housing options in the Southwest Corridor - especially SW Portland and Tigard.  This is in advance of the new light rail that is to be built from a Portland to Tualatin.

Understanding (intending) that communities that are in the path of light rail will (should) experience increased density and (new, expensive) multifamily housing (and gentrification), government agencies responsible for transportation planning and land use are now realizing their plans have an ugly downside.  Perverse consequences follow wherever Central Planning goes.

Transportation funds have flowed toward light rail and streetcars for years, butchering what was once a good bus system, deconstructing area roadways, and intentionally causing congestion on major roads.  But build they must, despite a noticible decline in transit ridership overall.  Why do they build?  To encourage development.  Why is housing expensive?  One reason, new rail construction increases demand for land at transit stations, and area gentrification follows.

Is all the effort worth it?  Especially when affordability and stable neighborhoods are at stake?  Idealogues are running the system.  Government types spew propaganda without understanding the complicated, interwoven dynamics of the  economy that go with their decisions.  They are playing a complex game of chess with only one move - put government in control!

The Antiplanner, 9-29-2017 By Randall O'Tools, CATO Fellow

Portland’s Transit Experiment Has Failed

It is interesting to note that two of the region’s policies for boosting transit — densification (which makes housing expensive) and congestification (which makes buses late) — are now suspected of hurting transit. Of course, no one at TriMet would ever suggest that these policies be reconsidered.

A new light-rail line will in fact be counterproductive. Increasing property taxes will make housing even more expensive. Increased congestion from trains running in and crossing streets will delay buses even more. Rail’s high operating costs will probably mean higher bus fares. But this is typical of Portland’s light-rail mafia, which cares more about inputs than results.

Portland is so blinded by the urban planning vision of what a transit mecca should look like that it fails to see that cities no longer fit that vision. 

IIIIIIIIIIIIIIIIIIIIIIIIII

Below is what the PSU Dept. of Urban Studies and Planning has to offer.  (Why didn't the CoP go the
Real Estate and Business Department instead?  Not enough ideology?).   "Preserving the stock of NOAH housing" and "preserving rents" is a pipe dream.  Rents are stabilizing now and in the future may go up or down, but unless government wants to buy or assist non-profits to buy existing, older multifamily housing, they don't have control over sales, pricing, renovations, "upscaling" and rents.  When rents are "stabilized" for older buildings that need constant maintenance work, insufficient funds can further degrade the property.  It doesn't take very long for affordable housing to look shabby - after all, it's nobody's baby.

It makes just as much sense to control the price of single family houses in order to preserve their affordability.  Perhaps government should prohibit remodeling, upgrades, flipping houses and apartments, renting a dwelling space for more than it costs to own and operate it, and generally making any money from a physical asset.  That kind of control of personal property is called socialism.

The irony of all of this hand wringing is that government deliberately causes gentrification, then wants to solve the problems of the people they hurt along the way.   Once people get below-market rents, they will be trapped in that place making rents for new residents much more expensive.  More government help to come?  They can't help themselves and are unwilling to learn.

"Social scientists don't do math - supply and demand concepts are not understood."
                                                 --- Government Council on Economic Development

Preserving Housing Choice and Opportunity
A STUDY OF APARTMENT BUILDING SALES AND RENTS 
November, 2017
Prepared for the Southwest Corridor Equity and Housing Advisory Group

Conclusion:

The great majority of the Portland region’s low and moderate income renters do not receive government subsidies or live in regulated affordable housing. They live in Naturally Occurring Affordable Housing — here defined as apartments with lower quality ratings that are usually older and with fewer amenities.

As the population grows, and higher income renters move to the area, preserving the stock of NOAH housing is important for the stability of these low income renting households. As new transit lines are planned, loss of NOAH also means a reduced ability to access opportunities in neighborhoods near transit.
This report focuses on the inventory and market for NOAH type multifamily buildings. 

While the region still has a substantial amount of two and three star buildings compared to newer, luxury type apartments, these lower cost units are under pressure. Rents are rising; and sales of buildings have been rising since the recession. With increasing demand to live in the area, the market moves towards investing in and upscaling these NOAH buildings, which could lead to the displacement of thousands of residents. 

Saturday, November 18, 2017

Keeping up with Californistan

PDX:  So insecure it has to be "first" - even if it is for doing stupid things.  Stupid, oppressive and nanny-state things.  Pretty soon people won't know that they are (were) supposed to be responsible for making their own mistakes.  It's as if progressive governments think the people are so stupid, lazy and weak that we need more and more laws to keep us from drowning in our own drool.

What ever happened to home inspections?  Buyer beware?  Before one buys a house, they get a home inspection that determines insulation, types of windows and age and type of HVAC equipment?  And don't forget to ask for the printout of the last year's energy use (see your PGE and NWNG bill for information).

How much do you think this will add to the cost of a home?
The most affordable homes are those that are already built.  This program targets these homes.  Government regulations always makes things more expensive, but not always better.  Government regulations give government control over your life, your money and your city.

Maybe low-income home sellers with low-scoring homes will have to sell at a discount, while those with high-scoring homes will make more?  Ah yes, perverse incentives.

And anyone who thinks this law is only for the homebuyer's sake is not thinking clearly.  The law required people proficient in doing home energy inspections.  This is not a jobs program - it is a precursor to requiring every home in the city, for sale or not, to have an energy score.  Then... tax or fine those who don't achieve a compliance rating.  Inspectors will have permanent employment keeping all those homes up to date.  Think I'm wrong?  You might need to live in Portland in order to see how opressive and arrogant government can be.


City of Portland Home Energy Score requirement beginning soon

Program provides new insight into energy use and costs of Portland homes

Know the score. Outsmart energy waste. www.pdxhes.com  
PORTLAND, Ore. – The City of Portland Home Energy Score ordinance will take effect on January 1, 2018, requiring sellers of single-family homes to disclose a Home Energy Report and Score at time of listing. Portland City Council unanimously adopted the policy (Portland City Code Chapter 17.108) in December 2016. This new policy will require people publicly selling single-family homes to obtain a Home Energy Report (which includes a Home Energy Score) from an authorized Home Energy Assessor. Complying with the policy takes two simple steps: getting the Home Energy Score and showing the Home Energy Score in any listing or public posting about the house.
Like a miles-per-gallon rating for a car, a Home Energy Score is an easy way for sellers, buyers, real estate professionals and builders to get directly comparable and credible information about a home's energy performance across the housing market.
In advance of the policy taking effect, the City of Portland Home Energy Score website is now live at www.pdxhes.com.