Local Opinion: Beat the ticking clock on climate disruption

Most strategies for addressing climate change and reducing the carbon footprint have one common flaw: They don’t get the job done fast enough, at least not in keeping with the Intergovernmental Panel on Climate Change forecast for significant global disruptions by 2030.

Here are two “propellants” that could help us beat the clock. Both are focused on electricity and transportation which represent more than half our collective carbon footprint.

First, allow electric utilities like Tucson Electric Power, through the Arizona Corporation Commission, to invest in, own and operate distributed and on-site residential and commercial renewable energy, storage, electric vehicle infrastructure, microgrids and smart home energy devices (e.g., thermostats and HVAC) using the traditional regulated rate of return business model. This business model worked brilliantly and rapidly post WWII to result in a US electricity system that was the envy of the world by the late 1960s. With modern automation and digital communications, all of this equipment should be considered an extension of the “two-way” electric grid anyway.

Most homeowners, businesses and institutions can spend their money more wisely by investing in their core operations, not electricity, and don’t want the hassle of maintaining the equipment. They just want electric service 24/7, 365 days a year.

Most utilities will happily invest in infrastructure as long as they earn the standard 8& to 12% rate of return on invested capital and can pass through reasonable operations and maintenance expenses.

Displaced existing fossil-burning power plants (and some transmission and distribution assets) with remaining life can be handled through a stranded asset securitization program. This was done successfully in the 1990s in other parts of the country to allow utilities to participate in competitive electricity markets.

This would not only return the U.S. to global electricity leadership but result in a supply chain to serve the rest of the world that would likely follow our lead.

All it takes is for the ACC (or other public utility commissions) to adapt current policies.

Second, incentivize people to reduce their individual carbon footprint by converting the avoided carbon into funds deposited into a retirement account, or a similar long-term financial obligation, such as student debt or a home mortgage.

A permanent long-term reward with delayed gratification overcomes the perennial problem with fluctuating energy prices: When prices rise, people conserve energy; when prices decline, their behavior reverts.

The University of Arizona would be a great place to pilot-test what I call this Carbon Individual Retirement Account concept. So, too, would the city of Tucson. Both could enhance their Sustainability Programs. Private firms and nonprofit institutions could simply add a Carbon IRA option to their employee compensation programs.

The Carbon IRA not only addresses climate disruption, but the anemic level of retirement savings for most Americans and student debt burdens.

An American between 55-64 has, on average, less than $100,000 in retirement wealth; the typical American student owes between $25,000 — $40,000 upon graduation.

The Carbon IRA is apolitical; it relies on consumers making better choices by aligning incentives with outcomes. And it doesn’t require any new taxes, at least to get started.

Back of the envelope calculations show that combining several behaviors and consumer choices over several decades — such as driving an electric vehicle; adding rooftop solar; bicycling, walking or taking mass transit; and/or a vegetarian or vegan diet can result in significant retirement savings.

It’s past time to get serious and beat the clock on carbon-induced climate disruption.