CLIMATE CHANGE
1.) August/Hottest:
August was the eighth month in a row to set a new average high temperature worldwide. The National Oceanic and Atmospheric Administration said the average global temperature for August was 61.4 degrees F which broke the previous record of 61.1 degrees F set in 1997 and is 1.3 degrees above the long-term average of 60.1 degrees F.
2.) Anti-Kyoto Ads:
In case you missed them, the Global Climate Information Project has launched a new series of national television advertisements critical of the Kyoto Protocol. The new campaign "highlights the fact that the treaty requires Americans to drastically cut their energy use, but will have no impact on carbon levels in the atmosphere because it exempts more than 130 developing countries including Mexico, China, India, Brazil, and South Korea." The ads, which are the product of Goddard*Claussen, invite viewers to their web site
MISCELLANEOUS
1.) Environmental Riders:
The "Washington Wire" column on page 1 of the September 11 "Wall Street Journal" reports: "Republicans seek to capitalize on Democrats' disarray by putting over 50 environmental riders in spending bills nearing final votes. Some riders would build roads in wilderness areas and increase logging in national forests. Environmentalists plan to announce a grass-roots countereffort today."
2.) Senate Caucus:
The Senate Renewables and Energy Efficiency Caucus has gained four new members: Senators Mary Landrieu (D-LA), William Roth (R-DE), Charles Robb (D-VA), and Edward Kennedy (D-MA), bringing the group up to 14 (9 D's, 5 R's) - representing 14 different states. Two states (SD and WV) are represented in the Senate caucus that are not in the House caucus.
3.) Plutonium/Reactors:
The Charlotte (NC) based Duke Energy and its partners have asked the U.S. Department of Energy for permission to make electricity out of the country's excess weapons-grade plutonium. The Savannah River Site nuclear weapons complex near Aiken, South Carolina would be a likely source for the mixed-oxide or MOX fuel that is created through chemically altering weapons-grade plutonium. Critics have pointed out that using MOX for reactor fuel poses problems of transportation accidents and offers terrorists an opportunity to get their hands on weapons-ready plutonium. Furthermore, transforming it into reactor fuel provides a subsidy for utilities such as Duke.
CO-RELEASERS WANTED: PUBLIC OPINION SURVEY
The Sustainable Energy Coalition is seeking organizations interested in hosting news conferences around the country to help us co-release the results of a new public opinion survey on climate change and U.S. dependency on oil imports. We expect to go into the field with the 12-question survey on September 18 and expect to have the pollster's results and analysis by early October. Tentatively, we plan to release the questions on oil imports in mid-October in advance of the 25th anniversary of the OPEC oil embargo (October 25). We plan to release the questions on climate change shortly thereafter -- in advance of the Buenos Aires meeting on the Kyoto Protocol. Exact dates for the releases should be determined within the next two weeks. If your organization would be interested in hosting a news conference to help us co-release the survey's results, please let us know a.s.a.p. and we will provide you with additional information as it becomes available.
1.) Richardson Meeting:
On August 28, members of the Sustainable Energy Coalition met with DOE Secretary Richardson. Richardson began the meeting by explaining that his priorities are to have an agency to which there will be public access, to have DOE become the lead agency for climate change, to help with "international involvement" regarding the implementation of evolving American energy efficiency and renewable energy (EE/RE) technologies, and to "fine-tune" the Administration's electric utility restructuring proposals in time for congressional consideration next year. He also said that the present draft EE/RE budget for FY'2000 stood at $1.098 billion. Richardson also said he would send a letter to the House and Senate over his personal signature regarding the language in the pending Energy & Water appropriations bill addressing relationships with trade associations." Richardson's interest was particularly captured by references in the meeting to the upcoming 25th anniversary of the OPEC oil embargo (October 25).
2.) Thomas v. Richardson:
On August 25, Senator Craig Thomas (R-WY) sent a 1-page letter to DOE Secretary Bill Richardson expressing concern about the latter's "efforts to make renewable energy your top priority" which "will only make cooperation more difficult." Craig added that "although renewable energy does hold some promise for the future, we must concentrate on finding reliable energy sources today [i.e., domestic oil, coal, and gas] that will help us reduce our reliance on overseas oil." Let us know if you would like us to fax you a copy of the letter.
3.) Richardson/Nukes:
In an August 24 Reuters news story, DOE Secretary Bill Richardson is quoted as saying that nuclear power would be critical to reaching cuts in U.S. carbon emissions sought by the Administration under the Kyoto Protocol. "I think nuclear power is a strong component here," he said. "Nuclear power is something that is part of the climate change solution." The article noted that while the Clinton Administration has been accused of taking a neutral stances when it comes to nuclear power, Richardson wasn't shy about touting its benefits. "Nuclear power is safe. It doesn't contain pollutants." Richardson said he would work toward establishing a permanent storage site for nuclear waste, and said he hopes to resolve complaints from utilities that they are unfairly paying storage fees even though a dump site is years away from being completed.
ELECTRIC UTILITY RESTRUCTURING
1.) Restructuring Doubts:
The most recent issue of "Utility Spotlight" newsletter reports that the 1998 American Customer Satisfaction Index has found that consumer concerns about high prices may be starting to create questions about the merits of utility deregulation. A spokesperson noted that "the trend for customer satisfaction is distinctly negative for more than half the North American utilities tracked by the ACSI and for the industry overall." Similarly, the most recent issue of "Environment & Energy Weekly" noted: "States which have deregulated the electricity industry are mired in problems and have so little to show for healthy retail competition that sources say they could have a telling effect in Congress. At the heart of the problems are stranded cost recovery - considered the most contentious of issues surrounding electric industry restructuring - and price spikes in the wholesale market, which are making lawmakers and regulators scramble for more information to better understand the upheaval in the market."
2.) California Initiative Costs:
The September 1 issue of "North County Times" (Escondido, CA) reports that the three major investor-owned electric utilities in California have contributed all but $5,000 of the $819,104 received by the "No on 9 Coalition," according to campaign disclosure documents covering the three months ending June 30. The other $5,000 came from the Good Government Council of the California Retailers Association. On the other hand, Californians Against Utility Taxes -- the proponent of the initiative -- has reported contributions of $1.05 million with more than half of that in the form of a loan from the Public Media Center.
Public Citizen reports: "The utility ads went up in California [September 3] against Proposition 9. They say that with all the following groups opposed to prop 9, it must be bad. Along with the utilities and the Chamber of Commerce, many municipal governments (who get donations from utilities), the other group prominently mentioned is the Natural Resources Defense Council."
3.) Restructuring Impacts:
A new report from the Energy Information Administration, "Challenges of Electric Power Industry Restructuring for Fuel Suppliers" predicts that utility restructuring "could lead to widespread changes including early retirement of some nuclear power units, closure of less competitive coal mines, and an increased share of natural gas to generate electricity. ... Natural gas will likely capture most of the market for new generating capacity [while] nuclear-powered generation capacity is projected to decline as a result of retirements and lack of new construction; competition also results in slightly lower coal prices." It further notes that "because electricity generated from renewable fuels, other than hydropower, generally is more expensive than conventionally generated electricity, competition in deregulated electricity markets could result in a reduced role for renewable energy facilities. ... Green pricing programs ... may provide a means to increase consumer demand for electricity from renewable fuels. ... If policies require increased use of renewables, average electricity prices will increase slightly." The report is available on EIA's Internet site:
CLIMATE CHANGE
1.) Renaming Hurricanes:
The August 31 "San Francisco Examiner" included the following news item: "Trading Tropical Storm Earl for Exxon -- Green party members in the European Parliament recently proposed that storms and hurricanes be named after Global Climate Coalition members like Ford, General Motors, and Exxon, who deny that carbon emissions contribute to climate change. The Greens said the new names would change headlined to read, for example, 'Exxon Kills 20 in Miami.' Parliament rejected the measure."
2.) EIA/Kyoto Analysis:
The Energy Information Administration was expected to meet with the staff of Rep. James Sensenbrenner (R-WI), chairman of the House Science Committee, on September 3 or 4 on a new analysis being prepared of the costs of implementing the Kyoto protocol. Reportedly, EIA will be saying that the costs will be quite high because it is relying on price mechanisms to achieve compliance rather than new technologies. The study is expected to be formally released to the public on October 1. However, a second study is nearing completion by the Environmental Protection Agency which suggests a much lower cost; the EPA report is expected to be more aggressive in noting the potential of new energy technologies to meet emission reduction goals.
3.) Climate Editorials:
Two major newspapers carried editorials of interest last month on climate change. On August 9, the very Republican-oriented "Chicago Tribune" opined that "prudence and common sense -- and mounting scientific evidence -- tug at us ever more insistently, suggesting that warnings about global warming must be taken seriously. ... A key to reducing carbon dioxide emissions is to reduce the use of high-carbon fuels and to adopt other conservation measures, particularly greater fuel efficiency in vehicles." The August 13 "Louisville Courier-Journal" warned: "It's not just Al Gore and a handful of tree-huggers and frog-counters who're worried [about global warming] now. More and more hard-nosed business executives are starting to pay attention - and not just because of the huge projected costs of international efforts to curb the greenhouse gases believed responsible for warming. If the weather of the last few years is any indication, the warming trend is going to impose big costs on governments and business enterprises all over the world, regardless of whether or not we are eventually able to reduce emissions of carbon dioxide and other such gases." Let us know if you would like us to fax you a copy of either editorial.
4.) Foreign Ops/Kyoto:
The Senate was expected to consider the FY'99 Foreign Operations appropriations bill (S.2334) this past week which included controversial language requiring the Department of State to notify the relevant appropriations panel each time funds are sought for activities encouraging developing country participation in the Kyoto protocol or to support "climate change activities in the energy, industry, urban, land use sectors and activities that reduce vulnerability to climate change." It also directed the Administration to submit a "detailed account of all federal agency obligations and expenditures" for present and future work on the protocol. However, the September 3 "Environment & Energy Update" reports that a bi-partisan agreement has been reached to scale back the language. Recommended by Sens. Robert Byrd (D-WV) and Chuck Hagel (R-NE), the clarifying en bloc amendment ensures "that programs can go forward, but Congress will have an opportunity to determine details on the planned activities."
5.) Efficiency/CO2:
The American Council for an Energy-Efficient Economy has released a new study, "Approaching the Kyoto Targets: Five Key Strategies for the United States" which shows how the U.S. can achieve over 60% of its Kyoto Protocol carbon emissions reduction targets through domestic actions that will save consumers and businesses money. Furthermore, the emissions reductions could nearly double by 2020 as efficiency improvements continue to be made. Setting new efficiency standards for vehicles, appliances, equipment, and power plants as well as removing barriers to the increased use of Combined Heat & Power Systems, and creating a Public Benefits Trust Fund as part of utility restructuring are among the options discussed. For details on obtaining the study, call 202-429-0063.
MISCELLANEOUS
1.) Renewable Caucus:
Rep. Jim Gibbons (R-NV) has become the 134th member of the House Renewable Energy Caucus. If my count is correct, the Caucus now consists of 63 R's, 70 D's, 1 I.
2.) EIA/OPEC Anniversary:
On September 3, the Energy Information Administration hosted a news conference to discuss the 25th anniversary of the 1973 oil embargo (i.e., October 25). It distributed a factbook entitled "25th Anniversary of the 1973 Oil Embargo" which can be accessed electronically at
3.) Wind vs. Gas:
The August 3 issue of "Wind Energy Weekly" reports that the Izaak Walton League, in a recent filing before the Minnesota Public Utilities Commission, says that the cost of wind-powered electricity generation has dropped below that of natural gas. The League's calculations indicate that wind is 32% less expensive than natural gas combined cycle generation, and still 7% cheaper even if the federal production tax credit (PTC) is not considered. The levelized cost of new natural gas combined cycle generation is 4.1 cents/kWh while new wind energy generation is 2.8 cents/kWh with the PTC.
4.) Nuclear/Clean Air:
On August 25, the Nuclear Energy Institute released a study which argued that increased generation at nuclear facilities avoided 480,000 tons of SO2 emissions from 1990-1995. The study, done by Energy Resources International, argued that increased nuclear generation fostered over-compliance and created bankable allowances worth approximately $60 million, which accrued to affected fossil fuel plants, not nuclear plants, thereby downplaying nuclear power's value. NEI went on to argue that in any new cap and trade scheme (e.g. NOx) emissions allowances should be allocated to all generation (including renewables and nuclear) on a per megawatt basis, not just to those generation plants that will use the allowances (as was done in SO2). This "output" based allocation would presumably force fossil fuel plants to buy allowances from renewables and nuclear plants which have no need to own emissions allowances. Needless to say, the Safe Energy Communication Council, Public Citizen, and other Sustainable Energy Coalition groups are opposed to NEI's recommendations.
5.) DOE Firings:
Reportedly, DOE Secretary Richardson is planning to terminate a number of Schedule C (i.e., political appointee) employees from throughout the agency during this coming week including four people in the Office of Energy Efficiency and Renewable Energy: Jesse Ulin, Deborah Miller, Beth Arner, and Kim Kendall. For information on further developments, contact David Nemtzow (Alliance to Save Energy: 202-857-0666) or Murray Liebman (Solar Energy Industries Association: 202-383-2600).
6.) World Oil Forum:
A daylong forum, "World Oil Forum: When Will Global Oil Production Peak?" is being held October 30 in Denver, CO (cost: $75) by the Governor's Office of Energy Conservation, U.S. Department of Energy, and CORE. For details, contact CORE at 970-544-9808;
IN A RENEWED ASSAULT ON THE ENVIRONMENT,
CONGRESS SET TO APPROVE POLITICALLY MOTIVATED ATTACK ON RENEWABLE ENERGY TECHNOLOGIES
Washington, DC -- When it reconvenes next week, Congress is expected to act swiftly on a bill that includes numerous provisions designed to stifle the growth of the nation's renewable energy industries. A conference committee is set to iron out differences in the Fiscal Year 1999 (FY'99) Energy & Water appropriations bills earlier approved by the House and Senate. The conferenced bill and its accompanying report are expected to include numerous anti-renewables provisions designed to undermine the future development of solar, wind, geothermal, biomass, hydroelectric, and other sustainable energy technologies.
** It will likely stop the U.S. Department of Energy (DOE) from effectively working with renewable energy and energy efficiency groups and trade associations by blocking funding for education and outreach efforts such as conferences, exhibitions, publications and electronic media, and technical assistance. As presently written, the language could be reasonably interpreted to impact potentially hundreds of current and future DOE contractors as well as several national laboratories. Already, the Solar Energy Industries Association has effectively closed down its information programs and fired a large portion of its employees as a result of this language.
** The bill will probably force the cancellation of some existing contracts with universities, laboratories, and industries, by directing nearly $50 million of FY'98 funds which are obligated under existing agreements but had not yet been spent, to fund FY'99 R&D. Already DOE is pulling back contracts and industry is backing out of projects feared to be in jeopardy.
** The bill may cut funding for renewable energy programs by as much as a one-third from the Administration's request of $372.3 million. The actual impact of the cuts will be greater because some of the appropriated funds will be earmarked for long-term research projects in DOE's Office of Energy Research which has historically failed to spend such funds. Moreover, funds will be counted as part of the renewable R&D budget even though they are actually allocated for non-renewable energy programs such as superconductivity and energy storage technologies.
** Another provision of the bill will further slash renewable energy funding even below appropriated levels by stipulating that all monies not spent within a given fiscal year will be defaulted even though current contracting procedures make it virtually impossible to spend funds in the year for which they are appropriated. The provision would also make more difficult the award of multi-year contracts with renewable industry firms.
** In light of restrictions on activities to implement the Kyoto climate change treaty without Congressional consent contained in other appropriations bills, the provisions of this bill will likely further discourage new renewable energy initiatives by DOE for fear that they will be viewed as "back-door" Kyoto strategies.
"Cumulatively, the attack aimed at renewable energy and energy efficiency programs is merely the latest phase in the assault on the nation's environmental laws launched four years ago by certain congressional leaders," said Wenonah Hauter, Director of Public Citizen's Critical Mass Energy Project. "The bill must be seen for what it is: a politically motivated attack not only on DOE's core sustainable energy programs, but on the environmental infrastructure created in a bipartisan fashion over the past thirty years."
"Notwithstanding the increasing frequency of severe weather events and eight consecutive months of the warmest temperatures ever recorded, Congress is attempting to pull the rug out from beneath renewable energy technologies -- one of the few available solutions to counter the threat of global climate change," said Ken Bossong, Executive Director of the SUN DAY Campaign. "Blind, ideological opposition to the Kyoto protocol has made many in Congress willing to lash out at anything even remotely associated with it regardless of the consequences for human health and the environment."
Americans for Clean Energy, the American Wind Energy Association, Communications Consortium Media Center, Public Citizen, the SUN DAY Campaign, and the Union of Concerned Scientists warned that, left unchanged, the bill and its report language will not only stifle new technology development and the distribution of unbiased industry information but also cooperation between government, universities, industries and nonprofit organizations.
Consequently, they are urging the members of Congress to fund DOE's renewable energy programs at the Administration's FY'99 requested level of $372.3 million. They are further urging that new Energy Secretary Bill Richardson help get his agency off on the right foot by working with the Congress and others in the Administration to delete the restrictive language from both the bill and committee report.
September 8, 98
FEDERAL ENERGY BUDGET
September 3, 1998
NEXT PAGE -->
