Bloom Energy: Time To Go

By: Dr. David R. Legates, Advisory Board Member, A Better Delaware

Bloom Energy’s founder, K.R. Sridhar, recently appeared on Maria Bartiromo’s show on Fox Business.  He touted Bloom Energy as a viable solution to President Trump’s declaration of a national energy emergency.  But as we approach the thirteenth anniversary of Delaware’s investment in Bloom Energy, it is time for the Meyer Administration to pull the plug on this energy debacle.

Under the Markell Administration, then DNREC Secretary Collin O’Mara engineered a sweetheart deal with Bloom Energy of San Jose, California—the same city for which O’Mara was the clean tech strategist.

The deal O’Mara struck with Bloom Energy was very favorable to the upstart energy company.  The University of Delaware would build a 240,000 ft² manufacturing facility on their STAR campus and Bloom Energy would occupy the building for twenty-five years at a rent of $1 per year.  Moreover, Bloom Energy would receive more than $30M in grants from the State and a surcharge guarantee that would last for twenty-one years.

In exchange, Bloom Energy was to have spent at least $50M in the development of six other buildings to encourage like businesses to locate in the University’s STAR campus.  To date, none of this has occurred.  They also were to have employed 900 workers by September 30, 2016, or as Governor Markell said, “it will bring an estimated 1,500 manufacturing, supply chain and construction jobs to the region”—to date, Bloom Energy still has not employed even 800 workers.  Note too that this sweetheart deal was spurred, in part, by the loss of more than 6,000 jobs due to the closure of the Boxwood Road and Newark Automobile facilities.

To pay for this, Delmarva Power ratepayers’ foot the bill by the addition of a “Qualified Fuel Cells Renewable Compliance Charge” on the delivery charge, not the supply charge, of their monthly electric bill.  To date, ratepayers have shelled out more than $405 million to Bloom Energy.  Adding what state and federal taxpayers have funneled to Bloom Energy as subsidies, the grand total of the Bloom Energy giveaway so far is more than $580 million.

Bloom Energy argued that their fuel cells are renewable energy and Governor Markell said that the surcharge was necessary to achieve the State’s goal of having 25% of its energy come from renewable energy by 2025 and 40% by 2035.  The Institute for Energy Research in Washington DC noted that rate-payer subsidies to a private energy business is “unusual.”  “This is a serious sweetheart deal,” the IER vice-president of policy said.

Asserting that it is green energy, the State of Delaware leveraged funds from the Renewable Energy Portfolio Standards Act (REPSA) by “allowing energy output from Delaware-manufactured [Bloom Energy] fuel cells to be considered a resource eligible to fulfill a portion of the REPSA [requirements].”

But Bloom Energy’s fuel cells are neither clean nor green.  They utilize natural gas in their production of energy, just as a combined-cycle natural gas power plant does; although it is cheaper to build a natural gas power plant and the energy produced by it is much cheaper than what ratepayers are charged for Bloom’s electrons.  In 2021, electricity from Bloom Energy’s fuel cells cost 5½ times more than electricity generated by a natural gas power plant.  Moreover, a study conducted at the University of Delaware concluded that Bloom Energy “overstated the efficiency of its fuel cells by as much as 20% in public disclosures.”

Remember that in July of 2014, the Data Center project was rejected owing to its requirement for a natural gas plant to be constructed at the STAR campus.  As the University stated, “Given the University’s commitment to reduced carbon emissions, and its strong reputation in renewable and carbon-free energy research, the emplacement of a fossil-fuel based facility of this size does not appear consistent with UD’s vision of a first class science and technology campus.”  An odd reason given that at the STAR campus, Bloom Energy was already producing natural-gas-based fuel cells that are less efficient and generate more carbon dioxide per megawatt-hour than the proposed natural gas plant.

And yes, since Bloom Energy’s fuel cells utilize natural gas as a fuel source, carbon dioxide is produced as a by-product.  While Bloom Energy contends that their fuel cells emit only 700 pounds of carbon dioxide per megawatt hour, after just two years of use, their fuel cells exceed 825 pounds.  Think about that…Delaware pretends that Bloom’s fuel cells are green, renewable energy when, in reality, they emit more carbon dioxide per megawatt hour than a combined cycle natural gas plant does.

Moreover, Bloom Energy’s fuel cells produce hazardous waste as a byproduct.  Natural gas contains dangerous elements and compounds, such as benzine, carbonyl sulfide, hydrogen sulfide, arsenic, lead, and chromium.  Delaware does not track the transport of these compounds to hazardous waste facilities although manifests have been discovered that indicate Bloom Energy indeed ships this hazardous waste from its Newark facility to Indiana.

In late 2020, the US EPA fined Bloom Energy $1.37M for mishandling hazardous materials originating in Delaware but the fine was kept secret.  Senator Murkowski of Alaska loaned her US Senate Energy Committee’s special counsel to Bloom Energy from 2018 until 2020 so he could minimize Bloom Energy’s fines to the EPA and assist Bloom Energy in hiding their hazardous waste in which O’Mara and DNREC were complicit.  Indeed, O’Mara gave testimony under oath to the Delaware Public Service Commission that Bloom Energy was clean energy when he knew that Bloom Energy generated hazardous materials and emitted more carbon dioxide than what they claimed in their marketing brochures and website.

In summary, rather than being efficient, green, and affordable, Bloom Energy fuel cells emit more pollution and the electricity they generate costs more than five times as much as a state-of-the-art natural gas plant.  Moreover, they are being used as part of the Delaware Renewable Energy Portfolio Standards Act (REPSA) even though they are based on natural gas—a fossil fuel.

Furthermore, Bloom Energy has lied about the hazardous waste produced by their fuel cells, and they continue to lie—aided by the State of Delaware—about how the hazardous waste is treated and to where it is shipped.  Shipping hazardous waste around the country without proper documentation is a fundamental health concern for first responders and citizens alike.

The Markell-O’Mara deal to bring Bloom Energy to Delaware has been a complete and utter disaster for all Delawareans and the ratepayers of Delmarva Power.  It’s time to pull the plug on this boondoggle that has plagued Delaware for more than a decade.

Dr. David R. Legates is an Emeritus Professor at the University of Delaware and is the Director of Research and Education at the Cornwall Alliance for the Stewardship of Creation.  He also is an Advisory Board Member of A Better Delaware.

HOW TO HELP KIDS SUCCEED IN LIFE: BECOME A SCHOOL BOARD MEMBER

By: Nancy Mercante, Guest Contributor

“Our educational system is in the grip of a crisis caused by low standards, lack of purpose, ineffective use of resources, and a failure to challenge students to push performance to the boundaries of individual ability.”– President Ronald Reagan after the release of “A Nation at Risk” report he commissioned 42 years ago.

The problems in education that President Reagan highlighted from A Nation at Risk still hold true today. We’ve lost too many generations to a poor education. It’s past time we fixed Delaware’s failing school system, which is near the bottom in the nation in academic achievement while near the top in spending per student. Is it fair to children of public schools that we as a community are failing them because we don’t demand better?

How do we start? By electing local school boards filled with common-sense members. Citizens who step forward as school board candidates could have an enormous impact in bringing a return to academic excellence in Delaware.

Serving on a school board enables you to:

• Support student and educator success.
• Promote transparency and accountability.
• Collaborate with the community and parents.
• Uplift children’s lives.

The founding of this country depends on citizens becoming involved in government, including public education. While we certainly need educators on our school boards, we also need business leaders, community representatives and especially parents. These are the kind of people who are better connected with the broader needs of our communities.

The best candidates are principled, good listeners, willing to learn, and advocate for the education and well-being of students in ways that align with shared values of the community.

Becoming a school board member is a chance to make a direct impact on the future of education in your community. It’s also a way to drive common-sense reform that will make all Delaware schools effective centers of learning again. As a school board member, you can expect to take on a multifaceted role that involves governance, oversight of the superintendent and budgets, setting educational policies, and community engagement.

Now is the time to decide if this role appeals to you.

Mark your calendar!

March 7, 4:30 p.m. is the deadline to file as a candidate for school board election. The requirement to run is that you live in the district of the open seat, are not currently a paid employee in that school district, can pass a background check, and have a passion for helping kids. Go to the Delaware Department of Elections/School Board for details.

May 12 is election day. Vote!

For other questions, text me at 302-307-2485 and visit citizensfordelawareschools.org to see which seats are up for election.

 Nancy Mercante, communications professional, has worked for major corporations within the financial, pharmaceutical and telecommunications industries. She founded Citizens for Delaware Schools, a nonpartisan nonprofit, two years ago to increase awareness of how and why our education system is failing children in Delaware so Delawareans can demand a better education for every student. 

The Answer to Delaware’s Housing Shortage: More Housing, Less Government

By: Jane Brady, Chair, A Better Delaware

“This waiting list is not accepting applications at this time.”

If you are suddenly, or even chronically, in need of assistance in finding a home you can afford to rent, in Delaware, you are out of luck.

The above message is on every website listed for government assistance for housing in the State – the Delaware State Housing Authority, the New Castle County Housing Authority, and the Dover Housing Authority.
Those agencies provide rental assistance to low-income families for housing, as well as actual rental units in specific complexes, particularly for senior and disabled individuals, statewide.  Hulling Cove in Lewes? Closed to applicants. Holly Square? Closed. Willis Road? Closed.

Renters are a significant part of the housing demand.  According to the Joint Center for Housing Statistics, approximately 35% of the population rents where they live. Some rent out of choice, others by necessity. In any event, Delaware is an expensive place to rent. If you rent, the rents are high relative to the rest of the country, with Delaware ranking between 14^th or 18^th highest in the country, depending on the source. And, with the government literally shut down when it comes to supporting anyone not already in the programs, families are hurting.

Homeownership is expensive as well. Selling a house is more expensive in Delaware, with transfer taxes almost three times any other state. If you want to move – to a smaller home, to a bigger home, or out of state with a job opportunity- costs are high. The transfer tax for doing so, on a medium-priced house of $384,079 is over $15,000! That’s a hit to anyone’s pocketbook.

While the taxes are high because our legislature has passed laws to make them so, the price of housing is high because of demand. Estimates are that Delaware is in need of 14,000 more units of affordable housing for our lowest income level households. And, even more at the highest income levels. What is holding us back?

Taxes, construction fees and zoning laws are significant factors.

The answer to a housing shortage is more housing. Any kind of housing, no matter how much it costs. If new, high priced apartments or other housing is built, the units attract people to leave their lower priced apartments or old houses, which leave them vacant. As more vacancies are created, rents come down and the benefits filter all the way to the least expensive units.

Government regulations impose great costs on construction – with new and more oppressive requirements imposed, seemingly with each new session. “Green” costs and excessive micromanagement of construction features go far beyond assuring a buyer gets a safe and sturdily constructed place to live.

As a practical matter, Delaware is in a rather unique situation where many of the home buyers during, and just following, the pandemic did not vacate current Delaware housing units, but moved in from out of state, forcing prices higher. Higher price, higher collection of those pesky transfer taxes.  We have written numerous times about the need to lower the transfer tax and remarked upon the huge amount of money the state and counties have received in recent years from that source but will not belabor the point here.

We applaud the recent zoning changes in several of our counties which allow for accessory dwelling units, detached or not, which are what has been historically known as an “in-law suite.” These changes are a positive addition to housing options and expand the number of housing units at a relatively small cost, and the occupant may either leave another unit available for a new resident or find a home when they previously could not.

We have heard the rumors and need to say – what we do not need is a moratorium on building. Every study (and common sense) suggests that more housing is the answer to a housing shortage. Lower taxes, reduced regulations that add costs to construction and zoning reforms, such as accessory dwelling units, cluster construction or planned commercial and residential projects like Village of Five Points in Lewes, are the better answers.

Our legislators and state leaders should take a hard look at how they can, with little effort, offer new and expanded options to families looking for a home, without requiring them to rely on government programs that cannot, and should not be required to, meet their housing needs.

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.

Delaware’s Workforce: A Case For Concern

By: Jane Brady, Chair, A Better Delaware

Many Delaware citizens believe our economy is doing just fine. Not great, but not so bad. The truth is concerning.

We have discussed the economic and regulatory issues that affect the establishment and growth of businesses in Delaware. But there is another, significant force that affects Delaware businesses – people. More specifically workers.

We all have heard about an unemployment rate. It is the percentage of people who would like to work but cannot, or have not, found a job.  In Delaware, our unemployment rate is, and has consistently been, higher than the national average. But it is important to remember – that rate represents real people. 19,500 real people in Delaware, according to our state’s Department of Labor in November 2024.

Why might they not be able to find work, despite looking? Maybe they are not prepared for the workforce.  According to a report commissioned by Delaware Workforce Development Board, “half of civilian workers required over one year of preparation time to perform their jobs in 2022.” That includes not just job training, but basic education in Math and English as well. Delaware actually has a program to teach young adults basic skills to pass the test to become an apprentice to the trades.  As long as we continue to graduate students who cannot get a job because they cannot do the job, we are doing them and our community no favors.

If you think that does not matter, you would be wrong. It discourages those high school graduates from continuing to try to get work. Proof of that is in the percentage of high school graduates who are not even looking for work anymore, higher, by percentage, than any other segment by education level.  Remarkably, 54,000 25–54-year-old high school graduates in Delaware are eligible to, but do not participate in the workforce.  The report referenced earlier identified those individuals as “candidates for training” to make them capable of earning sufficient wages to sustain themselves.

Meanwhile, their lives are stagnant. They are not developing new skills, making contributions to our economy, finding the personal satisfaction that comes from doing a good job, making a contribution to their company and community.  That stagnation carries into the workforce itself. Incredibly, Delawareans work 102 hours per year less than the national average. Right at the bottom.

We need to energize our workforce, excite our workers and create a vibrant, growing business environment.  We have said it before, but the numbers and reports prove it – it all starts with our schools.  High school graduates need basic skills in order to feel and be valued, and to be a contributing part of a workforce.

We should recruit new businesses to Delaware, with better paying jobs that give aspiring workers visible benefits and incentives to pursue further education and job training programs in order to take advantage of those job opportunities.

We should encourage programs between schools and businesses to develop interest in specific industries, offer internships to develop skills that will make the students employable after graduation.

There are young graduates out there who are discouraged, unskilled and unmotivated. There is no question there is talent in those numbers cited above, and it is wasted if it is not cultivated.

Let us all – teachers, employers, entrepreneurs, and our elected officials – resolve to end the stagnation in our workforce and generate the excitement that comes with knowing you are valued, valuable and contributing – to family, community and our economy.

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.