Sept 28, 98
FEDERAL ENERGY BUDGET
1.) E&W Renewables #'s:
The following FY'99 budget numbers for DOE's renewable energy programs emerged from the September 24 meeting of the Energy & Water Appropriations conference committee:
Solar Buildings $2.9 million Photovoltaics $66.8 million Solar Thermal $17.0 million Biomass Power $31.0 million Biofuels $41.75 million Wind $33.0 million REPI $4.0 million Program Support $0.0 million International $3.75 million Technology Transfer $0.0 million NREL $2.0 million Geothermal $28.5 million Hydrogen $21.0 million Hydropower $2.0 million Renewable Indians $3.5 million Remote Power $4.0 million Program Direction $17.1 million
The numbers are virtually unchanged from FY'98 with the exception of hydrogen which received a $5 million increase and biomass power & biofuels which appear to have received a combined increase of about $14 million. However, the budget includes $50 million taken from the "prior year balance" meaning that FY'98 funds are being raided to pay for FY'99. No numbers have been obtained yet for superconductivity, energy storage, nuclear fission, nuclear fusion, or energy research.
2.) E&W Letters:
In a September 4 letter to Senator Patty Murray, DOE Secretary Bill Richardson noted his "concerns" with report language accompanying the Energy & Water Appropriations bill restricting funding for trade associations because it "threatens the Department's partnerships with these organizations [and] may create problems for the Department in carrying out its missions." The language lists specific activities, such as conferences, exhibitions, publications and electronic media, and technical assistance that would be disallowed. Richardson's letter lists 65 organizations "whose important work could be affected [ranging] from nuclear power to basic science as well as energy efficiency and renewable energy." Moreover, "the language ... could encompass company members of all the trade associations as well as affiliated state organizations and universities, and thereby interrupt critical departmental work."
On September 11, members of the Sustainable Energy Coalition sent a follow-up letter to all members of the House and Senate urging that they "support the removal of the report language" from the bill in conference. The letter notes that the language was "apparently ... devised to discourage the development of renewable energy [and] is likely to have serious consequences for the newly emerging U.S. industries that provide wind, biomass, solar, and geothermal energy equipment and technical assistance to customers both in this country and throughout the world." Let us know if you would like us to fax you a copy of either letter.
3.) ITER Extension:
The September 23 "Energy Daily" reports that DOE Secretary Bill Richardson has signed a unilateral agreement to extend U.S. participation in the International Thermonuclear Experimental Reactor (ITER) nuclear fusion program for twelve months, retroactive to July 22. A DOE release notes that the extension "will now enable all parties to complete ongoing research and development and will provide an opportunity to negotiate a new agreement on international collaboration on fusion science." The extension was apparently signed with the tacit approval of House Appropriations Energy & Water Development Subcommittee Chairman Joseph McDade (R-PA) even though as recently as September 10 House Science Committee Chairman James Sensenbrenner told DOE that even a one-year extension was unacceptable.
4.) Budget End-Game:
In a September 24 meeting with environmental groups, Wes Warren - CEQ Chief of Staff - predicted that the Energy & Water (E&W) as well as VA-HUD appropriations bills would be approved as a stand-alone bills while Interior would get rolled into an omnibus bill. Wes expects "a little boost" in funding for efficiency and renewables. He also noted that the Administration was "making progress" on the report language in the E&W bill. Regarding the threat to energy efficiency (EE) levels by lt, a new trade association, the Renewable Energy Alliance (REA), was formed by seven green power marketers (AllEnergy Marketing Co., Edison Source, Enron Corp., Foresight Energy Co., Green Mountain Energy Resources, PacifiCorp, PG&E Energy Services), to establish standards and energy-source disclosure labels for consumers. REA has also agreed to promote the use of renewable energy sources through marketing and education and to encourage policies which establish fair market structures for green power. NREL manages and maintains a DOE green power website ( 4.) Clinton/Green Electricity: On September 14, President Clinton signed Executive Order 13101 -- Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition. It requires all federal agencies to "implement procurement programs favoring the purchase of environmentally preferable products and services." Some initially suggested that the order might be interpreted to require the government purchase of green power. However, the consensus seems to be that it is directed almost exclusively at recycling, i.e., "raw material acquisition, production, manufacturing, packaging, distribution, reuse." Nonetheless, there may be another Executive Order presently in the drafting stage that may apply to electricity purchases.
CLIMATE CHANGE 1.) Climate/Churches: The most recent issue of "Wind Energy Weekly" reports that the National Council of Churches of Christ in the U.S.A., a coalition of 34 Protestant, Anglican, and Orthodox denominations, said it is launching an educational and advocacy campaign on behalf of the Kyoto Protocol. Similarly, in early August, 22 member denomination in the National Council of Churches wrote to President Clinton and every member of the U.S. Senate to urge approval of the accord. Finally, a third group, the National Religious Partnership for the Environment, said it will target nine senators from Appalachia and the Midwest (including West Virginia and Michigan) in lobby activities on climate change.
2.) TX/Climate Change: The Associated Press (September 23) reports that a new poll commissioned by the Lone Star Chapter of the Sierra Club found that 61% of Texans (polled August 12-27 by Scripps Howard and the Office of Survey Research at the University of Texas) agreed with the statement that global warming is occurring. Moreover, 63% agreed that it contributes to extreme weather fluctuations including El Nino events, heat waves, flooding, and droughts while 64% agreed with the statement: "We should reduce our dependence on coal and energy sources in order to decrease the impacts of global warming even if that means we will pay more for cleaner, renewable energy sources." Asked their opinion of a statement that global warming is mainly caused by air emissions from the burning of coal and oil, 58% agreed. Additional information can be found at: 3.) Ford/Green Cars: The September 14 "Greenwire" reported that William Clay Ford, great-grandson of Ford Motor Co. founder Henry Ford, will become Ford Chair on January 1, 1999 while Jacques Nasser will become president and CEO of the company. In October 1997, the two identified global warming as a real threat. Ford, described as a champion of environmental issues, is likely to have a "strong say" in the development of alternative-fuel vehicles. The September 24 Reuters reports that Ford Motor Co. will begin testing a fuel cell-powered car early next year as part of a multi-pronged approach the automaker launched to position itself as the auto industry's environmental leader by producing cars and trucks that get better fuel economy and emit less pollution. The September 24 "Dow Jones Newswire" reports that Ford Motor Company and the Chinese government have launched the second phase of a program to develop alternative vehicles fueled by compressed natural gas and liquefied petroleum gas; Ford says it aims to create a cleaner environment by using lower-emission fuels and plans to examine the feasibility of converting diesel engines, which are widely used in China, to operate on natural gas.
MISCELLANEOUS 1.) Republican Green PAC: An article in the September 17 "Roll Call Politics" reports that Sen. John Chafee (R-RI) and Rep. Sherwood Boehlart (R-NY) have announced a new focus for their PAC, the TR Fund, namely: "to reward Republicans with strong records of protecting the environment." Contribution recipients include Sens.. Alfonse D'Amato, Judd Gregg, and Arlen Specter, as well as Reps. Charlie Bass, Brian Bilbray, Jon Fox, Wayne Gilchrest, Steve Horn, Sue Kelly, Nancy Johnson, Connie Morella, Mike Pappas, Christopher Shays, and Rick White.
2.) LCV Dirty Dozen: The League of Conservation Voters has added five names to its "Dirty Dozen list of vulnerable, anti-environment Congressional candidates targeted for defeat in November." The most recent additions are Sen. Lauch Faircloth (R-NC), Rep. Linda Smith (R-WA, running for Senate), state Rep. Tom Bordonaro (running for CA-22), Rep. Bud Cramer (D-AL), and Rep. John Ensign (R-NV, running for Senate). They join Reps. Helen Chenoweth (R-ID), Mark Neumann (R-WI, running for Senate), Bill Redmond (R-NM), Charlie Stenholm (D-TX), John Hostettler (R-IN), and former Rep. Bob Dornan (running to recapture CA-46). The twelfth target will be named soon. Further details can be found at 3.) Y2K/Utilities: A 2-page article from the October 6 issue of "PC Magazine" discusses the power industry's Year 2000 (Y2K) problem with embedded computer systems hidden inside nearly every piece of sophisticated equipment. It notes that power plants have many thousands each. In June, the Nuclear Regulatory Commission wrote the operators of America's 108 nuclear plants, demanding a statement of compliance (i.e., able to resolve the Y2K problem), or concrete plans to be compliant by the end of 1999; the number of compliant plants so far is zero. Compliance by state regulated utilities is also a source of worry. For example, in Texas, only 18% of the state's electric co-ops had written plans for Y2K preparation while none of the state's generation and distribution companies that responded to a TX PUC survey were yet compliant or had any idea when they would be. Let us know if you would like us to fax you a copy of the article.
4.) Solar Water Heaters: The Renewable Energy Policy Project has issued a new study, "Transforming the Market for Solar Water Heaters: A New Model to Build a Permanent Sales Force" by John Hoffman and John Wells. Among other options, the authors propose that "foundation or public institutions...that want to support SWH should consider developing investment funds that help finance a few entrepreneurs to enter the business of bundling SWH with other efficiency and environmental products." The full report can be found at REPP's web site: 5.) Coal Plant Emissions: Synapse Energy Economics of Cambridge, MA has issued a report "Grandfathering and Environmental Comparability: An Economic Analysis of Air Emissions Regulations and Electricity Market Distortions" for NARUC. It includes an analysis of the costs of eliminating the grandfathering provisions that apply to older coal-fired facilities. The study finds that under comparable environmental standards, the majority (roughly 94%) or existing coal-fired facilities are likely to remain economic relative to new gas-fired combined cycle facilities. Applying comparable environmental standards would reduce SO2 and NOx emissions from power plants by roughly 75%. The report can be downloaded from the NARUC website: 6.) Wind-Farm Dedication: The world's largest single wind-farm project was dedicated on September 26 in southwestern Minnesota. It will produce 107 megawatts of electricity and is owned and operated by Enron Wind Corp. of California. The $125 million investment features 143 turbines stretched along Buffalo Ridge near Lake Benton that will provide enough electricity to supply as many as 40,000 residential customers of Northern States Power Co. (NSP) well into the next century. It will also enable NSP to avoid producing 150,000 tons annually of CO2 as well as 800,000 pounds of SO2, and 850,000 pounds of NOx. For NSP, the project is the second phase of a commitment it made in 1994 when the utility agreed as part of a legislative deal to buy or produce 425 megawatts of wind-powered electricity (i.e., 2-3% of the utility's total capacity) and 125 megawatts of biomass-produced power by 2002. In exchange, NSP was allowed to store additional nuclear wastes in outdoor metal casks at its Prairie Island nuclear power plant in Red Wing. Further information can be found at https://brookings.itctel.com/~lbenton.
7.) Japanese Car Efficiency: A 1-page article in the September 4 "Daily Environment Report" noted that "spurred by new tax relief on eco-friendly cars effective next April, the race to develop and market fuel-efficient cars among Japanese automakers is heating up." It reports that Nissan plans to start selling a fuel-cell vehicle around 2003-205 while Mercedes Benz has said it would start selling a fuel cell vehicle in 2004. Let us know if you would like to see the article.
8.) T.J. Glauthier: The Senate Energy Committee withheld T.J. Glauthier's nomination as DOE Deputy Director from a vote September 24 although it approved another DOE nominee for Inspector General. The committee may bring up the matter for a vote at its October 6 business meeting.
9.) Hatch on Environment: Wenonah Hauter (Public Citizen) reports that the following quote was found in Senator Orrin Hatch's (R-UT) 1997 pamphlet on "How Parents Can Help Children Live Marijuana Free": "Social Signs of Regular Users ... 4. Excessive preoccupation with social causes, race relations, environmental issues, etc."
10.) Green Taxes Conference: On December 10-11, in Seattle, WA, the Energy Outreach Center and the D.C.-based Center for a Sustainable Economy will team up to host "Greening State Taxes," the first national conference of state leaders interested in using the tax code to promote a sustainable economy. Speakers and workshops will explore how to move these reforms from theory to reality. For more info, go to EOC's website: FEDERAL ENERGY BUDGET & TAXES
1.) Interior Appropriations:
The most recent issue of "Environment & Energy Update" reports that on September 16, Senate floor action on the Interior Appropriations bill was halted, at least temporarily. At least two dozen riders deemed "anti-environmental" by the Administration and conservation groups have made the bill one of the most controversial spending measures, and attempts by senators to attach unrelated legislation to it has prolonged debate. If the Senate again takes up the bill, there is still a danger that Sen. Daschle could offer an amendment to increase funding for Indian law enforcement programs and use the energy efficiency accounts as an offset. There is speculation that an omnibus measure bundling several appropriations bills may be necessary to speed action as the end of the congressional session nears.
2.) DOE's EE/RE Budget Request:
DOE's Office of Energy Efficiency & Renewable Energy is reportedly trying to get the White House to fight for another $50 million or so for energy efficiency in the FY'99 "end game." Regarding the FY'2000 request, DOE is apparently submitting a request to OMB very close to the FY'99 request of $1.05 billion.
3.) Tax Bill:
The House Ways & Means Committee marked up a bill on September 17 cutting some $80 billion in taxes over five years, none of which will affect energy producers or otherwise impinge on environmental issues. Jaime Steve (AWEA) reports that Committee chairman Bill Archer took a "no amendments" posture which meant that the proposed five-year extension of the wind energy Production Tax Credit (PTC) beyond its scheduled expiration on July 1, 1999 was not added to the bill even though the measure has 93 co-sponsors in the House. In the Senate, the campaign to extend the (PTC) got a fresh boost when Senator William Roth (R-DE), chairman of the Senate Finance Committee, introduced a bill to extend the incentive for five years. The number of Senate co-sponsors for the PTC extension increased to 22 with the addition of Senators Tom Daschle, Ron Wyden, and Byron Dorgan.
ELECTRIC UTILITY DEREGULATION
1.) Deregulation/Congress:
A 1-page article from the September 12 "Congressional Quarterly Weekly" entitled "Spike in Midwest Electric Rates Prompts a More Focused Approach to Deregulation in the Coming Year." It suggests that congressional action on utility restructuring next year will be more narrowly focused than the bills earlier put forth by Sen. Bumpers, Rep. Schaefer, or the White House. Let us know if you would like to see a copy of the article.
2.) Deregulation/California:
Public Citizen has issued a new report, "Proposition 9: A Greenlight for Sustainable Energy in California." It argues that "the planned $28.5 bailout of California's electric utility industry is not only unfair to consumers but could prove a dramatic setback to environmental gains of the past several decades and have a far-reaching impact on the development of a sustainable, non-polluting energy future." It also says that "by forcing ratepayers to pay off the utility companies' most expensive mistakes, the bailout renders conservation efforts and renewable energy resources uncompetitive by providing 'free capital' to utilities to increase their market share and stifle competition and innovation that could result in cleaner, cheaper energy over the long-term." The report can be found on Public Citizen's web site: www.citizen.org.
CLIMATE CHANGE
1.) BP/Climate:
On September 18, British Petroleum CEO John Brown pledged to reduce the company's greenhouse gas emissions by 10% below 1990 levels, using strategies that include improving energy efficiency, using new technology, and trading emissions. The emission reduction goals, which are more aggressive than the targets called for by the Kyoto Protocol, are focused on the company's production and refining operations but not on the products the oil company produces, e.g., gasoline. Two days earlier, Brown noted that "some of the detailed science on environmental issues such as climate change is imperfect and incomplete ... but the fact that we don't know everything isn't a reason for ignoring the evidence which does exist. ... We can improve the fuels we supply in ways which reduce overall emissions. We can work with auto manufacturers and others to improve the quality of engines and the quality of the fuel they use -- for instance, by reducing dramatically the sulfur content of gasoline."
2.) Climate Info:
If you are ever looking for materials to use for a presentation on global warming, the EPA has a number of excellent slides on the topic at https://www. epa.gov/globalwarming/reports/slides/cc&i_toc.html.
3.) Citizens' Petition:
The Union of Concerned Scientists, US Public Interest Research Group, Greenpeace, World Wildlife Fund, National Wildlife Federation, Ozone Action, and other environmental organizations are sponsoring a citizens' petition on the Internet that urges the Administration to show leadership at the international climate change summit in Buenos Aires by implementing strong domestic actions. They note thatAt the international Climate Summit last December in Kyoto, Japan, nations agreed to reduce the emissions of heat-trapping gases that cause global warming. The agreement is a small but important down payment to limit global warming. However, many important details remain to be decided. A major international meeting to start to hammer out the details will take place in Buenos Aires, Argentina, November 2-13, 1998. In order to make progress there, the United States must show other nations that it is serious about reducing the threat of global warming. The US must lead by example and take steps to cut its emissions of greenhouse gases. The environmental organizations are prominently advertising the petition on their web sites and hyperlinking to the petition. The address is www.climatenetwork.org/petition.
MISCELLANEOUS
1.) MN Wind/Least-Cost:
The Minnesota Department of Public Service has filed comments in the Resource Plan of Northern States Power concluding that an additional 400 MW of wind power is the "least-cost" generating option and will result in cost savings of $12.5 million over the 15-year planning period. The DPS analysis, however, is dependent on the extension of the federal production tax credit. Let us know if you would like us to fax you a copy of a 4-page article on this issue from the "Sustainable Minnesota" newsletter.
2.) Shell/Solar's Future:
On September 17, Dr. Chris Fay, chairman and CEO of Shell U.K., predicted that the global market for the supply of solar power was set to grow significantly over the next few years to meet rising demand for electricity. He added that the development of cleaner, lower emission fuels would be a key factor in driving forward Shell's U.K. operations and stated that hydrogen-powered cars will make a dramatic impact across Europe and the U.S. by the year 2005. In a September 18 news release from Shell, the company notes that renewable energy is a "new core business [that] will be of growing importance in the years to come; we want to be at the forefront of developing the commercial opportunities."
3.) World Energy Council:
Concluding its 17th congress in Houston, the World Energy Council WEC) on September 17 urged industry and governments to develop technologies to reduce pollution from fossil fuels such as coal, oil, and natural gas. The WEC recommended that renewable energy sources and nuclear power play key roles in future efforts to meet global energy needs while minimizing damage to the environment. The WEC advocated a greater role for nuclear energy, though it acknowledged that public fears about its safety would have to be addressed; "nuclear power should play a major role in contributing to electricity provision and in strategies to combat global warming," it said. But the WEC also recommended further development of wind energy, solar power, and hydrogen-based fuel cells; "the accelerated development and use of appropriate renewable energy resources must be given high priority," it said.
JOB OPENINGS
1.) The Union of Concerned Scientists is seeking two people to work in its DC office and coordinate aspects of public outreach to targeted regions. Send letter & resume by Sept. 28 to Deputy Dir. for Programs, UCS, 2 Brattle Sq., Cambridge, MA 02238.
(a) Field Coordinator, Energy Program. Coordinate outreach to advance renewable energy at the federal level and in target states, exp. in the Midwest. Carry out outreach campaigns and work with other groups on joint lobbying and organizing. Serve as a spokesperson on energy policy. Qualifications: Knowledge of grassroots organizing, lobbying, program planning, energy policy, renewable energy technologies. At least 3 years exp.
(b) Regional Coordinator for Climate Change: Coordinate state outreach; carry out campaigns in target states; monitor developments in Washington; serve as spokesperson on climate change policy. Qualifications: Knowledge of state-level grassroots organizing, climate change policy, DC policymaking process, project management. At least 5 yrs. exp.
2.) The Natural Resources Defense Council is seeking a Resource Specialist to join its climate change policy team in its Washington, DC office. Tasks will include "educating the Congress about global warming and the Kyoto Protocol, policy development and lobbying for measures to accelerate investment in technologies to reduce greenhouse gas emissions, such as the 'Climate Technology Initiative' and 'early reductions credits,' policy development and lobbying for passage of measures to substantially reduce U.S. greenhouse gas emissions, particularly from power plants and vehicles, and lobbying for eventual ratifications of the Kyoto Protocol. Send a resume and writing sample to: Climate Policy Specialist Job Announcement, NRDC, 1200 New York Avenue, N.W.; #400; Washington, DC 20005.
3.) The Sierra Club Global Warming and Energy program is seeking a grassroots organizer (job title: Conservation Assistant - Global Warming) on a new campaign aimed at curbing pollution from automobiles. The organizer will be based in the Sierra Club's Washington DC legislative office and work to highlight the connection between global warming and automobile pollution and build local campaigns in support of the need for tougher tailpipe emissions standards and cleaner, more efficient vehicles. Interested applicants should fax their resume to 202-547-6009.
4.) Redefining Progress is seeking a Research Associates for a six-month position to develop materials, resources, and contacts for a new campaign to promote the use of permit auctions for the emissions permits expected to be issued as part of the U.S. effort to reduce greenhouse gas emissions. The Research Associate will conduct research, literature reviews, and interviews to develop six to eight short (2-6 pp) background papers that will explain why auctions are a preferable approach for reducing CO2 emissions in the U.S. Send resume to Redefining Progress, attn.: Search, 1 Kearny Street, 4th floor, San Francisco, CA 94108; fax: 415-781-1198.
September 21, 98
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