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OPEC OIL EMBARGO: 25th ANNIVERSARY
Sunday - October 25, 1998 - is the 25th anniversary of the oil embargo imposed by the Organization of Petroleum Exporting Countries (OPEC) which resulted in long gas lines, major price increases, and the beginning of the nation's "energy crisis." To mark the event, the Sustainable Energy Coalition will be commissioning a national public opinion survey on a cross-section of energy issues to be released in October 1998. It will also be sponsoring a series of media activities to encourage print and broadcast media to provide coverage of the anniversary. Finally, it will be circulating a 2-page "Statement of Principles & Goals for a National Energy Strategy" for sign-on by businesses and organizations nationwide. Let us know if you would like us to fax you a copy of the draft statement. We encourage you to consider activities that your own organization can sponsor to take note of the 25th anniversary of the OPEC oil embargo.
FEDERAL ENERGY BUDGET
1.) Fox Amendment:
The Alliance to Save Energy has issued a new 2-page "legislative alert" on the Fox amendment to the House Interior appropriations bill to increase efficiency funding. The alert details the vote to restore the funds that will be offered as soon as July 16 and describes what interested persons can do. A sample letter to Congress, talking points, and Rep. Fox's "Dear Colleague" letter are available on ASE's homepage at http://www.ase.org/takeaction.
2.) Energy & Water/Statement of Administration Policy:
The White House has issued Statements of Administration Policy responding to the House and Senate Energy & Water appropriations bills. Regarding renewable energy funding, the 2-page SAP on the Senate bill says that the reduction below the Administration's request "would seriously undercut [DOE's] ability to continue some of the most promising research now underway, eliminate accelerated introduction of clean power sources, and restrict our ability to lower greenhouse gas emission levels." The SAP also commends the Senate for fully funding the construction costs of the Spallation Neutron Source but warns that report language "would generally impair the [DOE's] ability to ship transuranic waste to the Waste Isolation Pilot Plant." The 3-page SAP on the House bill warns that cuts in renewable energy funding "would seriously undercut [DOE's] ability to move into the next phases of some of the most promising research now underway, eliminate accelerated introduction of clean power sources, and restrict our ability to lower greenhouse gas emissions levels. The Administration strongly opposes these reductions." On nuclear issues, the SAP "strongly objects to the Committee's providing only $5 million of $34 million requested for the Nuclear Energy Research Initiative and the Nuclear Energy Plant Optimization program and urges that the full amount of the request be restored. ... [T]he Administration objects to the elimination of funding to participate in the extension of the international planning process that led to the international design effort for the International Thermonuclear Experimental Reactor (ITER). ... The Administration strongly objects to the $57 million reduction in the request for construction of the Spallation Neutron Source. ... The Committee's reduction of $30 million to the request for the civilian radioactive waste program, and its directive to reduce support services by 10%, would significantly reduce the quality of data and analysis for the Draft Environmental Impact Statement at Yucca Mountain." Let us know if you would like us to fax you a copy of either SAP.
3.) Fusion/International Thermonuclear Experimental Reactor:
In a June 25 letter sent to former DOE Secretary Pena, House Science Committee Chairman F. James Sensenbrenner (R-WI) urged the Department to refrain from entering into an agreement to continue U.S. participation in the International Thermonuclear Experimental Reactor (ITER-fusion) collaboration. Sensenbrenner echoed recent concerns expressed by both the House and Senate in the FY'99 Energy & Water appropriations bills. A Senate report accompanying the bill recommended "that the Department, prior to committing to any future magnetic fusion program or facilities, conduct a broader review to determine which fusion technology or technologies the United States should pursue to achieve ignition and/or a fusion energy device." The House report objected to the proposed extension and did not provide FY'99 funds for ITER. The current international agreement, of which the United States is part, expires on July 21, 1998. Let us know if you would like us to fax you a copy of the 3-page letter.
4.) Budget Resolution:
According to the June 25 issue of Environmental & Energy Update newsletter, the FY'99 budget resolution will be stalled for at least several more weeks so negotiators can consider figures due from the Congressional Budget Office in mid-July. Meanwhile bickering continues over the level of tax and spending cuts to be included in the final resolution. The Senate resolution, S.Con.Res.86 calls for $30 billion in cuts over five years and makes very few changes in environment-related spending while the House resolution, H.Con.Res.284, calls for $101 billion in cuts including about $5 billion in energy, environmental, and natural resource programs.
ELECTRIC UTILITY RESTRUCTRURING
1.) Murkowski/Restructuring:
Environment & Energy Weekly newsletter reports that Senate Energy Committee Chairman Frank Murkowski (R-AK) plans to meet with DOE Secretary-nominee Bill Richardson to discuss the administration's deregulation bill. Nuclear power and climate change issues are likely to arise during the meeting since Murkowski has complained that the administration bill leaves out nuclear and hydropower which he believes constitute important sources of energy. Murkowski also wants to know whether Richardson has the portfolio to work with Congress.
2.) California Referendum:
The most recent issue of California Energy Markets newsletter reports that an early public opinion poll by RKS Research & Consulting on the initiative to substantially alter California's restructuring plan found that Californians would oppose the measure by a 2 to 1 margin. The newsletter also notes that a draft California Energy Commission staff analysis says that the initiative could have varied impacts on utility rates beyond the current 10% rate cut ranging from 17.5% reductions for San Diego Gas & Electric, 27.3% for Pacific Gas & Electric, and 32% for Southern California Edison -- depending on the extent of nuclear liabilities of the utilities. The initiative denies the cost for nuclear power above market prices -- about $5 billion in sunk capital -- but exempts nuclear decommissioning costs. Let us know if you would like to see a copy of the 3-page article.
3.) Another Nuke Down:
The Philadelphia Inquirer (July 9) reports that New Jersey-based General Public Utilities, Inc. (GPU) said it plans to shut down its Oyster Creek nuclear power plant in New Jersey in the fall of 2000 because it has failed to find a buyer for the plant. The utility has asked the NJ Board of Public Utilities for permission to close the plant because its high operating costs will make it uneconomical when the state opens its electricity market to competition. GPU also "said it is still in discussion with an unnamed prospect, believed to be PECO Energy," for the sale of the Three Mile Island nuclear power plant's Unit 1 reactor.
4.) Maine/Efficiency:
The Maine Public Utility Commission has issued a notice of proposed rulemaking proposing a $8.8 million/year program of energy conservation, to extend over 3 years for a total cost of $26.4 million. The program would provide DSM activity for residential, small commercial, and small industrial customers, and be paid for by them with a statewide (including consumer-owned utilities) transmission and distribution charge of 1.35 mills/kWh. Industrial customers would neither receive services nor contribute to the cost. The proposal is being issued in response to the state's restructuring plan; the PUC noted that "the restructuring of the industry should not, in and of itself, result in the elimination or reduction of DSM activities."
5.) Texas/Renewables:
According to a June 22 news release, the Public Utility Commission of Texas is proposing a Green Pricing Tariff under which utilities will be required to offer customers power generated from renewable resources. The rate for the renewable energy would be higher than the standard electric rates, and would be absorbed by customers. In proposing this rule, the commission has three main objective. These objectives are to fulfill the mandate found in PURPA which calls for the promotion and development of renewable-energy technologies, to address the results of a recent survey that indicated that a significant percentage of customers place a high value on environmental quality in their communities and are willing to pay extra for it, and to contribute to Governor Bush's 1998 "Vision Texas 2000" Strategic Statewide Plan.
6.) California Green Market:
A new study, "Selling Green Power in California: Product, Industry, and Market Trends," by Ryan Wiser, Steve Pickle, and Joe Eto of the Lawrence Berkeley National Laboratory predicts that the emerging green power market in California will be limited to 1-4% of residential customers for at least the first few years "but its ultimate size is uncertain." Despite its premium product status, the price for green power is moderate, with the 12 green products currently available in California ranging from 0.7 to 3 cents more per kwh than utility default prices. At least some of the green power marketers include meaningful commitments to new renewable energy generation but no single type of renewable generation will dominate the market for green sales in the near term. Further details can be requested from the authors (Ryan Wiser: 510-486-5474; RHWiser@lbl.gov; and Steve Pickle: 510-486-4189; SJPickle@lbl.gov). Let us know if you would like us to fax you a 4-page article on the study.
7.) Efficiency/Restructuring:
A new report, "Ratepayer-Funded Energy-Efficiency Programs in a Restructured Electricity Industry: Issues and Option s for Regulators and Legislators" has been released by ACEEE and Lawrence Berkeley National Laboratory. It recommends creating a public-benefits charge to continue energy efficiency funding at historic levels through a nonbypassable, volumetric charge. The report can be found at http://eetd.lbl.gov/EA/EMP.
8.) Green Power Site:
The National Renewable Energy Laboratory (NREL) Analysis Group has developed and now maintains the Green Power Network (GPN) Web site (http://www.eren.doe.gov/greenpower/) which summarizes news and information about green power marketing and provides a forum for discussion. NREL also prepares an "Information Brief on Green Power Marketing," available electronically from the GPN Web site. A print version is also available. (Contact Ashley Houston, GPN Webmaster, 303-384-7412).
9.) Restructuring Info:
The publication, "Utility Restructuring Weekly Update," is now available on the Internet at http://www.eren.doe.gov/utilities/utilityres/weekly.html. The publication is prepared by Energetics for the U.S. Department of Energy and provides an overview of federal restructuring activities as well as an update on activities in the individual states.
CLIMATE CHANGE
1.) Senate/Kyoto:
The final Kyoto language included in Senate Report (S.105-227) notes, in part: "None of the funds provided in this bill are to be used to implement actions called for solely under the Kyoto Protocol, prior to its ratification. ... [T]he Committee is committed to ensuring that the Administration not implement the Kyoto Protocol without Congressional consent. The Committee recognizes, however, that there are also long-standing energy research programs which have goals and objectives that, if met, could have positive effects on energy use and the environment. The Committee does not intend to preclude these programs from proceeding, provided they have been funded and approved by Congress." Let us know if you would like us to fax you the 2-page text.
2.) Knollenberg/Veto:
In a June 24 Statement of Administration Policy signed by Acting OMB Director Jacob Lew, the White House warned that "[w]hile the administration does not intend to implement the [Kyoto] protocol until it is ratified, the bill language [i.e., Knollenberg's amendment] could be interpreted broadly to prevent activities that limit greenhouse gases - for example, through enhancing energy efficiency - but that are not undertaken to implement the Kyoto Protocol. ... The report language also inappropriately purports to bar educational and informational outreach activities related to climate change. The administration opposes this and other riders because they abuse the legislative process by denying the public and members of Congress the opportunity to examine and debate these proposals openly." Lew further warned that the White House "strongly opposes" treatment of the climate change technology, a "high priority program [that] should be funded fully to cut energy usage, save consumers money, and reduced greenhouse gas emissions. ... If the bill were presented to president in its current form the president's advisors would recommend that he veto the bill."
MISCELLANEOUS
1.) Patagonia/Wind:
Patagonia, Inc. (a Ventura, CA-based outdoor clothing company) has contracted with Enron Energy Services to supply renewable energy (from wind sources) for all its California electricity needs making it the first company in the state to commit to 100% wind energy. To meet the growing demand for renewable power, Enron Wind Corp. will construct a 16-MW wind power facility near Palm Springs. Until the plant is completed in early 1999, Enron Energy Services will supply all of Patagonia's electricity needs from qualified renewable sources in California. Let us know if you would like us to fax you a copy of the 3-page news release.
2.) Rooftop Solar:
Green Mountain Energy Sources, a retail electric service provider, has announced the launch of Green Mountain Solar, rooftop solar electric systems for individual homeowners in California. The systems use photovoltaic cells and will enable customers to produce 20-50% of their own electricity. The customers remain connected to the grid and can buy their grid electricity from Green Mountain or the provider of their choice. Green Mountain has entered into an agreement with applied Power Corporation to design and install Green Mountain Solar rooftop systems. For details, call Green Mountain Solar at 888-800-5750 or Applied Power Corporation at 800-777-7075.
3.) Fuel Cells Record:
A July 1 release from International Fuel Cells reports that a fleet of PC25(TM) commercial fuel cell power plants, manufactured by ONSI Corporation, has accumulated more than two million hours of in-service operation, braking its own world record. ONSI has produced more than 160 of the power plants and they are operating in 84 cities throughout the United States as well as 11 countries in Europe, Asia, and North America. Each PC25 power plant provides 200 kilowatts of power -- enough to supply electricity for nearly 150 homes. Let us know if you would like us to fax you a copy of the 2-page release
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