Alternative Energy

Gov. Arnold Schwarzenegger has approved two major initiatives that will require utilities to pay consumers for generating extra power and will boost the payoff for certain solar facilities. Homes, businesses and schools that have solar panels or wind turbines previously had no financial incentive to use less electricity than they generated. But AB 920, written by Assemblyman Jared Huffman (D-San Rafael), will encourage efficiency, supporters say. SB 32, by state Sen. Gloria Negrete McLeod (D-Chino)

Generating clean electricity that's as cheap as power from fossil fuels is the Holy Grail of green-energy companies. A new solar project powering California homes appears to be closing in on that prize. Sempra Generation, a subsidiary of Sempra Energy in San Diego, just took the wraps off a 10-megawatt solar farm in Nevada. That's small by industry standards, enough to light just 6,400 homes. But the ramifications are potentially huge.

While Detroit's automakers struggle to rebuild their sputtering operations, the key to jump-starting Michigan's economy may lie 80 miles northwest of the Motor City. This is the home of Hemlock Semiconductor Corp. It makes a material crucial for constructing photovoltaic panels. And that has turned this snow-covered hamlet into an unlikely hotbed for solar energy. On Dec. 15, the same week that General Motors Corp. and Chrysler begged $17.

Inside a futuristic-looking dome that rises from the sandy wasteland of the high Mojave Desert, soldiers in plywood cubicles work at computers powered by solar panels and a towering wind turbine. Plug-in cars shuttle the troops across the vast expanses here at Ft. Irwin in San Bernardino County. At night, tents lined with insulating foam provide a cool retreat at the end of a 100-degree day.

The Interior Department will announce new rules today that clear the way for the first offshore wind turbines to be erected along the Atlantic Coast. The rules will set long-awaited guidelines for offshore leases, easements and royalty payments that the Bush administration worked on for years but did not complete. The guidelines represent the most aggressive move yet from an administration that hopes to shift the nation's offshore energy supply from oil to wind power.

Continental Airlines Inc. ratcheted up the race to develop alternate fuel for passenger planes Wednesday as it successfully flew a Boeing 737 twin-engine jet powered partly by algae and weed. The two-hour test flight over Houston, where the carrier's headquarters is located, involved powering one of the two engines with a mix of 50% kerosene and a blend of fuel derived from algae and jatropha, a weed that bears oil-producing seeds. No passengers were on board.

The future of transportation is now available for lease. In the next few weeks, 450 consumers in California, New York and New Jersey will begin picking up fully electric Mini coupes, charging them at home and using them as their daily commuters for the next year. They'll pay $850 a month, plus taxes and insurance, for the right to drive the first highway-legal electric cars that don't cost more than $100,000 to hit the streets in more than a dozen years.

Arnold Klann has a green dream. It began 16 years ago in a sprawling laboratory in Anaheim. This year, he hopes, it will culminate at a Lancaster garbage dump. There, in the high desert of the Antelope Valley, Klann's company, BlueFire Ethanol Fuels, plans to build a $100-million plant to convert raw trash into an alcohol-based fuel that will help power the cars and trucks of the future. It's just the sort of improbable concoction that California is now demanding.

Academy Award winners Joel and Ethan Coen, known for their grimly comic portrayals of human nature, are poking fun at a new target: the coal industry. The filmmaking brothers have directed a TV spot for an environmental coalition that's trying to demolish the notion that there's anything clean about so-called clean coal.

It sounds too good to be true: A residential system that allows people to make fuel from old beer, leftover wine and other waste products and use it to run their vehicles. That's what inventors of the E-Fuel MicroFueler claim, and there's support for the idea in government, industry and pop culture. MicroFueler buyers are eligible for a $5,000 tax credit. Former L.A. Laker Shaquille O'Neal is an investor in the system's distributor. The $10,000 E-Fuel MicroFueler consists of a 250-gallon tank for organic feedstock, such as waste wine and beer, and a still that converts it to pure ethanol, or E-Fuel.