MISCELLANEOUS
1.) Bill Richardson:
In his brief statement upon being sworn in as the ninth DOE Secretary, Bill Richardson noted that his agenda included "helping to solve the challenge of global climate change, ... working to bring down the cost of electricity to the American people, and ensuring a balanced energy portfolio for our nation." Richardson also stated: "I also want you to know that the President has asked me to continue, for a brief time, as his Ambassador to the United Nations. Given recent developments affecting key U.S. interests abroad, I am sure you can understand the importance of not leaving the U.N. post vacant at this crucial juncture." President Clinton has selected Bosnia peace negotiator Richard Holbrooke for the U.N. job, but the Senate Foreign Relations Committee has yet to even schedule a hearing on that nomination.
2.) T.J. Glauthier:
T.J. Glauthier has been nominated to become Deputy Secretary of DOE to replace Betsy Moler. He is presently the OMB's Associate Director for Natural Resources, Energy, and Science. Most (if not all) members of the Sustainable Energy Coalition have generally viewed T.J. Glauthier as a strong advocate for sustainable energy programs.
August 17, 98 FEDERAL ENERGY BUDGET
VA-HUD Appropriations Bill:
The VA-HUD appropriations bill conference will take place following the August recess. The House bill includes language from Rep. Joe Knollenberg (R-MI) barring EPA and the Council on Environmental Quality from using funds to "develop, propose, or issue rules, regulations, decrees, or orders for the purpose of implementation, or in contemplation of implementation" of the Kyoto Protocol. However, the provision was tempered with floor adoption of Rep. David Obey's (D-WI) amendment stipulating that EPA and CEQ are not kept from conducting educational outreach or informational seminars on the climate change issue in general. The Senate bill contains no language addressing the protocol. EESI's Environment & Energy Update notes that "with the Administration still expressing strong concerns about the House language, the conference's liveliest debate likely will be in regard to the Knollenberg language."
ELECTRIC UTILITY RESTRUCTURING
California Restructuring Initiative:
The August 6 San Jose Mercury News reports that electric rates would plunge 26% next January for residential customers of Pacific Gas & Electric if voters pass Proposition 9, the California utility rate reform initiative, according to an analysis by the California Energy Commission. In addition, residential rates for Southern California Edison customers would drop 30% and 16% for San Diego Gas & Electric customers. In late July, before this data began seeping into the state's media outlets, California Energy Markets newsletter reported that a monthly telephone poll by RKS Research & Consulting noted that 64% of California residents were leaning towards keeping the existing utility restructuring law. However, RKS also reported that if voters believe the initiative will deliver its promised 20% rate reduction, slightly more than half of respondents would vote to repeal the existing law while only one-third remained in favor of keeping current policies intact.
CLIMATE CHANGE
1.) July Hottest:
On August 10, Vice President Al Gore announced new data showing that July 1998 set a new record for global temperature, making it the hottest month since reliable records began in 1880. The average global temperature for July was 61.7 degrees F, 1.26 degrees higher than the long-term average for July, and 0.45 degrees higher than the previous record set in July 1997. The announcement continues this year's record-breaking heat trends -- each of the first seven months have set a new global temperature record for that month, following 1997, which was the warmest year on record. In response, Sir John Houghton, a member of the Inter-Governmental Panel on Climate Change said the U.S. should do more to curb the amount of CO2 it is pouring into the atmosphere. Noting that Americans "emit twice as much carbon dioxide per head as people do in Europe," he said "they are very reluctant to do anything about it, whereas they could easily cut their emissions by becoming more efficient and more careful in the way they burn energy and the way they burn fuel."
2.) Climate/CEA Analysis:
The Clinton Administration's Council of Economic Advisors (CEA) has released a new economic analysis of the Kyoto Protocol showing that action to curb global warming is economically feasible. However, the analysis assumes that 75-85% of the emissions reductions will be achieved through international emissions trading. Under this scenario, the CEA estimates the costs of reducing emissions at $200 per U.S. household or $20 billion per year. However, the analysis does not consider domestic emissions reduction potential through expanded use of sustainable energy technologies. Ozone Action compared the Administration's approach to that used by northerners during the Civil War who paid poor people to fight for them. News releases issued by Ozone Action, Union of Concerned Scientists, and the World Wildlife Fund were all critical of CEA's analysis; let us know if you would like us to fax you a copy of any of them.
MISCELLANEOUS
1.) Photovoltaic Shipments Up:
According to new data from the Energy Information Administration, shipments of photovoltaic modules and cells by U.S. manufacturers, as measured by their maximum electric power output, reached a record level in 1997, up 31% from year-earlier figures. This marked the twelfth consecutive annual increase in shipments. The value of shipments grew from $131 million in 1996 to $175 million in 1997. The growth in shipments is due largely to a strong export market, which accounted for 73% of the shipments in 1997. In addition, shipments of solar thermal collectors -- primarily to the residential sector for use as pool heaters -- increased by 7% between 1996 and 1997. Data tables detailing this information are available on EIA's Home Page at: ftp://ftp.eia.doe.gov/pub/solar.renewables/solar.txt.
2.) Nuclear Travel:
Public Citizen released a report on July 30 noting that the Nuclear Energy Institute, "the well-funded lobbying arm of the nuclear industry," financed junkets to Yucca Mountain, Nevada, via Las Vegas for 74 Senators, House Members, and staffers in 1977. The total cost to NEI was $81,421, "but that high price may have helped solidify the votes they were targeting with these trips. Of those who traveled on NEI's tab, 85% voted to end a filibuster of S.104 and 95% voted for H.R.1270, both known as the Nuclear Waste Policy Act of 1997." On at least one occasion, staffers stayed at the Rio Suite Casino Resort, a five-star hotel, with a sandy beach by the pool, 15 restaurants, the Copacabana Showroom, golf course, 20 retail stores, and the world's largest public wine collection. For details, contact Auke Piersma at 202-546-4996.
3.) Richardson Confirmed:
The U.S. Senate confirmed U.N. Ambassador Bill Richardson on July 31 as the next U.S. energy secretary, approving his nomination moments before adjourning for its August recess. He is expected to formally take up his new post following Labor Day.
4.) Sustainable Periodicals:
The SUN DAY Campaign has released the fifth edition of its "National Directory of Sustainable Energy Periodicals." The 75-page directory provides a zip-coded listing of 800 U.S. periodicals that report on renewable energy, energy efficiency, and related issues. Each entry includes an address; most also include telephone and fax numbers. A large number also include e-mail addresses and/or web sites. A short annotation accompanies the majority of entries. The directory also includes an alphabetical listing of entries. Copies are $15.00 (pre-paid) from the SUN DAY Campaign, 315 Circle Avenue, #2, Takoma Park, MD 20912-4836; price includes postage & handling.
> August 3, 1998
FEDERAL ENERGY BUDGET & TAXES
1.) Interior/Cont.:
Dan Becker (Sierra Club) reports that the members who switched their votes last week in the 213-212 defeat of the Skaggs-Fox amendment to increase energy efficiency were Reps. Wes Watkins (R-OK), Joe Moakley (D-MA), Tom Latham (R-IA), Nick Smith (R-MI), and Ros-Lehtinen (R-FL). Greg Wetstone (NRDC) says that it was Ros-Lehtinen who switched his vote at the last minute to tip the vote. On the other hand, two members switched their votes from anti- to pro-; they were Reps. Ike Skelton (D-MO) and Jack Metcalf (R-WA). A complete list of how members voted can be found at the Alliance to Save Energy's website: www.ase.org/takeaction.
Jeff Genzer (NASEO) reports that the subsequent, substitute amendment that added $45 million to energy efficiency and $45 million to fossil drew approximately $60 million from PODRA/oil overcharge refunds and $30 million from the deficit reduction portion of the Sanders amendment. The amendment by Rep. Sanders (I-VT) had earlier reduced the fossil energy account by $50 million when it passed 241-187. (Following the success of the Sanders amendment, Rep. Edward Royce (R-CA), who was seeking a $30 million cut in fossil energy funding, did not offer his amendment.) Thus, the net cut in fossil energy funding was only $5 million.
EESI's Environment & Energy Update (July 27) reports that the Administration is threatening a veto of the Interior Appropriations bill if it retains a number of public lands riders as well as low funding levels for a number of Interior Department programs. Senate action on the bill is now not expected until September.
2.) E&W Conference:
The House-Senate conference on the Energy & Water appropriations bill will be delayed until after the August recess. This may be the first time in some years that the E&W bill has been so late in being voted on. There is speculation that several appropriations bills may necessarily be bundled up into a single omnibus appropriations bill in September as a result.
3.) Anti-Renewables Attack:
The American Wind Energy Association has prepared a 2-page memo discussing the report language accompanying the Senate E&W appropriations bill which restricts the relationship between renewable energy trade associations and the DOE. The report language warns DOE not "to underwrite the expenses of industry associations" and states that "it is inappropriate for the Department to routinely fund the operating budgets for these outside groups." In the future, DOE is to secure needed services and products through "grant or contract ... using competitive procedures." Furthermore, the report language wants to shift federal renewable energy funding to "basic research" and away from commercialization of emerging technologies through cost-shared, industry-government programs. Let us know if you would like us to fax you a copy of the memo.
Similarly, the Solar Energy Industries Association (SEIA) is circulating a 3-page "honest update" prepared by its Executive Director, Scott Sklar, on the anti-renewables attack. It notes that the "House and Senate Energy & Water Development Appropriations Committees ... over the last two years have asked for piles of information from DOE, NREL and Sandia about all the renewable energy trade associations. They have not asked for information regarding the affiliates of the Edison Electric Institute or the Nuclear Energy Institute which receive hundreds of thousands of federal dollars." SEIA charges that congressional staffers have explicitly told DOE not to fund SEIA and they have now sent in Appropriations Investigators to DOE and NREL ... [who] are explicitly asking DOE Procurement not to fund SEIA and the other renewable energy trade associations." Scott expects "that federal funding for SEIA will fall to zero" and that the organization "will reinvent itself based on a fees-for-services schedule." SEIA predicts that "DOE will utilize support service contractors to carry out the activities [Congress] prohibited DOE from carrying out with the renewable energy trade associations." This is an approach used in the early 1980's which resulted in conflicts-of-interest and waste of taxpayer money. Let us know if you would like us to fax you a copy of SEIA's memo.
4.) Production Tax Credit:
The American Wind Energy Association has prepared an updated list of the members of the House and Senate supporting a five-year extension (through July 1, 2004) of the 1.5 cent/kWh Production Tax Credit for wind and closed biomass energy systems. In the Senate, S.1459 is supported by 5 R's and 8 D's. In the House, H.R.1401 is supported by 29 R's and 51 D's. Collectively, the sponsors represent 33 states. Let us know if you would like us to fax you a copy of the list.
ELECTRIC UTILITY RESTRUCTURING
1.) Illinois Utility Disclosure:
The Illinois Commerce Commission has just issued an Order & Rule implementing the Illinois environmental disclosure law; it is subject to further comments and review by the state legislature. The rule provides for a standardized form of environmental disclosure in separate utility bill inserts each quarter, starting with the first quarter of 1999. The disclosure information includes fuel sources (nuclear, coal, wind, solar, gas, etc.), air emissions (SO2, CO2, and NOx per 1,000 kWh) and both high-level and low-level nuclear waste (unfortunately by cubic feet rather than by radioactivity). The information must be presented in both tabular chart and a color-coded pie-chart form. The tabular chart must specify if the electric supplier's use of windpower, for example, is "0%". Reportedly, the complete rule and order can be downloaded from the ICC's web site: http://icc.state.il.us/.
2.) Municipals/Green Power:
The Board of the Los Angeles Department of Water & Power, the nation's largest municipally-owned utility, has approved -- subject to final approval by the Los Angeles City Council -- a comprehensive green power program for its customers. For an additional $3-5/month, LADWP customers will be able to enroll in the Green Plan which earmarks voluntary customer premiums to develop new wind projects and other renewable power plants; customers can choose to purchase 20% or more of their power from green sources. The Board vote also authorized incentives for manufacturers of solar photovoltaic panels and other clean power technologies to relocate in a unique "green industrial park" that the utility estimates could create hundreds of jobs and millions of dollars in municipal tax revenues.
Similarly, the City of Alameda's (CA) Public Utilities Board voted unanimously to offer -- beginning this fall -- a new renewables option to its customers for about $3.75/month which will support investment in future renewables or new upgrades or retrofits of existing renewable sources.
Finally, the Santa Monica City Council has directed its staff to come back with recommendations at the earliest possible date for purchasing renewable electricity for the City Hall and other city facilities.
CLIMATE CHANGE
1.) Clinton/Climate:
In a July 23 statement commenting on the tempering of the Knollenberg language in the House HUD/VA appropriations bill, President Clinton stated, in part: "With much of the country suffering a stifling heat wave, and with each month so far this year setting a new record for global temperature, the American people expect and deserve a fair, honest and informed debate on the issue of climate change. Some in Congress would have stifled that debate by effectively imposing a gag order on federal agencies. Thankfully, the House voted to remove this language from the VA-HUD Appropriations bill. Unfortunately, the bill still contains other provisions that would restrict our ability to move forward with cost-effective steps to reduce the greenhouse gases that cause global warming. And appropriations bills moving through Congress would cut by nearly one-half my proposed research and tax incentives for energy efficiency and clean energy technologies -- measures that would reduce energy costs for American families while curbing greenhouse gases."
In his July 25 weekly radio address, President Clinton stated, in part: "[G]rowing evidence suggests that the extreme and erratic weather we're seeing in America and around the world is being intensified by global warming. ... The world's leading climate experts predict even more extreme weather unless we reverse this dangerous warming trend. ... We must all do our part to protect the environment, and as the nation's largest energy consumer, the federal government must lead. At my direction, we're undertaking a multipart initiative to put our house in order. Today, I'm pleased to announce the first four parts of this plan, aimed at increasing the efficiency of federal buildings. First, I'm directing federal agencies to work more closely with private contractors to retrofit federal buildings and other facilities with the best energy-saving technology, at no cost to taxpayers. Second, we'll replace hundreds of thousands of conventional light bulbs and fixtures with more efficient fluorescents, which will pay back in energy savings nearly five times what they cost to install. Third, I'm directing all agencies to work toward bringing their existing buildings up to EPA's 'Energy Star' standard of energy efficiency. And fourth, the Defense Department and six other federal agencies will adopt 'sustainable design' guidelines for all new federal buildings to reduce their energy use." The full text of Clinton's statement can be found at www.whitehouse.gov/WH/html/1998-07-25.html.
2.) UCS/Kyoto Costs:
The Union of Concerned Scientists and the Tellus Institute have issued a new report, "A Small Price to Pay," that demonstrates that the U.S. can, through domestic actions alone, meet its obligations under the Kyoto Protocol at overall economic savings or, at most, at a modest cost. It suggests that measures to improve vehicle fuel economy, expand combined heat-and-power systems, and to require a Renewable Portfolio Standard in electric utility restructuring could reduce U.S. greenhouse gas emissions by as much as 13% below 1990 levels by 2010 -- six percent more than is required by the Kyoto Protocol. For details, call Alden Meyer or Jim Ball at 202-332-0900.
3.) Carbon Emissions Up:
The American Council for an Energy-Efficient Economy has prepared a 2-page "scorecard" reporting a 22 MMT (1.5%) increase in U.S. carbon emissions in 1997 over 1996 -- marking the sixth straight year carbon emissions rose. The rise in carbon emissions last year was restrained because winter months were warmer and summer months were cooler in 1997. ACEEE notes that total energy use rose 0.7% while GDP rose 3.8% in 1997. Let us know if you would like us to fax you a copy.
MISCELLANEOUS
1.) Richardson Nomination:
U.N. Ambassador Bill Richardson was approved by the Senate Energy Committee July 29 to become DOE Secretary. The vote was 18 "yes" and two (Sens. Larry Craig and Rod Grams) "present." The latter two were expressing their frustration over the White House's refusal to move radioactive waste from nuclear power plants. In an effort to discourage them from placing "holds" on the nomination, the White House provided Richardson with a letter on nuclear waste storage issues to share with members of the Senate; its contents have not been released to date.
2.) Texas Waste Compact:
On July 29, the House of Representatives approved the TX/ME/VT Radioactive Waste Compact by a vote of 305-117. The Compact approved has been stripped of the amendments that would have limited the importation of nuclear waste to Texas (to only Maine and Vermont) and would have provided a means for people near the chosen site (Sierra Blanca) to oppose the dump on grounds of environmental justice. The Senate will vote on the Compact bill in September.
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