2.) Proposition 9/Diablo Canyon:
Gordon Smith, CEO of Pacific Gas & Electric, has warned (promised ??) that the Diablo Canyon as well as the San Onofre nuclear power plants will close if California voters approve Proposition 9 and the courts uphold it. The result would be that PG&E could not recover from ratepayers the $3.5 billion it still hasn't recovered from building the Diablo Canyon plant. However, PG&E notes that the plant can expect a long future if it gets past the November vote unscathed. Gordon noted that "if Proposition 9 passes, ... you just broke the back of Pacific Gas & Electric."
CLIMATE CHANGE
1.) EIA/Climate Costs:
The Energy Information Administration (EIA) has released a new study, "Impacts of the Kyoto Protocol on U.S. Energy Markets and Economic Activity" suggests that "significant increases in energy prices may be required for the United States to meet the reductions in greenhouse gas emissions" called for by the Kyoto Protocol. The average price of gasoline could be between $0.14 and $0.66 per gallon higher in 2010 than it would be otherwise and electricity prices could increase by 20-86%. Higher energy prices will result in a 4-18% reduction in energy consumption while renewables would provide between 11 and 22% of electricity generation with non-hydro renewables supplying more than half of that amount. Nuclear generation's decline will slow as it becomes economic under higher carbon prices to extend the operating life of existing plants rather than retire them. The potential GDP could be reduced from a growth rate of 2% per year between 2005-2010 to 1.9% annually. The full report can be found at 2.) EIA Climate Report/Rebuttal: Joe Romm, formerly with DOE's EE/RE office, has issued a critique of EIA's report. He notes that EIA used the "same defective methods [that] recently overestimated Clean Air Act costs by 400%." Romm says that EIA "overestimates the costs and underestimates the savings offered by both low-carbon fuels and key alternative technologies, including cogeneration, fuel cells, and advanced end-use efficiency." He also criticizes the projected contribution from renewable energy as being too low." Let us know if you would like us to fax you a 4-page summary provided by Environmental Media Services. In addition, congressional testimony delivered by Howard Geller of the American Council for an Energy-Efficient Economy which "strongly attacked it" can be found on the ACEEE web site, 3.) September Hottest: An October 14 news release from the National Environmental Trust reports that September 1998 was the warmest September on record -- more than four degrees above average in the continental United States, and nearly a full degree over the previous record. Virtually every state experienced above-average heat, with 44 of the Lower 48 states experiencing an "extraordinarily" or "unusually" warm September, and non cooler than usual, according to the National Oceanic and Aeronautic Administration's National Climatic Data Center. State and regional records set are listed at the latter's web site: 4.) Buenos Aires Prospects: The "Environment & Energy Weekly" reports that on October 6 Melinda Kimble, Acting Assistant Secretary of State, cautioned the House Commerce Energy & Power Subcommittee not to expect much from the November meeting in Buenos Aires on the Kyoto Protocol. She offered no specific Administration goals for the conference other than "incremental, but credible, progress" especially in terms of formulating a system of greenhouse gas emissions trading and obtaining "meaningful participation" from key developing countries.
5.) Early Reduction/Credit: The Environmental Defense Fund reports that a bi-partisan bill (don't have the number yet) was introduced on October 10 by Senators Chafee, Mack, and Lieberman to provide businesses credit for voluntary early greenhouse gas (GHG) reductions. "Early" is defined as being prior to 2008, the beginning of Kyoto-based obligations. A goal of the bill is to encourage businesses to make their own GHG reductions now and to show that there is bi-partisan congressional support for making progress on the climate issue. For further details, contact Steve Cochran (EDF) at 202-387-3500 or 6.) Greening Earth Society: An organization calling itself the Greening Earth Society which seeks to "document the benefits of fossil fuels" has released a new report which argues that "we must use fossil fuel, especially coal, to meet our needs." It further dismisses climate change concerns noting that carbon dioxide "is the stuff of life, so how can it be bad?" The group's web site is: MISCELLANEOUS 1.) Renewables/Texas Polls:
Responses to the 9th Annual Texas Interested Citizens Statewide Poll of 1,207 registered voters conducted in late September by the Eppstein Group found that Texas voters by a large margin favor natural gas as a clean, low-cost fuel for electricity generation. However, only 33% indicated a willingness to pay more for solar or wind-produced electric power and only 22% favored the idea of government-mandated use of cleaner but more expensive wind and solar power for electricity generation. However, in a separate Deliberative Poll conducted among customers of the Southwestern Public Service Company (SPS) which serves farms and communities in the Texas Panhandle, respondents indicated that they want the utility to begin tapping into the wind, solar, and biomass resources that are locally available. Roughly half (48%) of the customers said SPS should first pursue renewable energy resources and another quarter (28%) said SPS should focus on energy efficiency while natural gas was favored by 14% and coal by only 6%. Just 2% of SPS customers suggested that SPS should not invest in renewable energy.
2.) T.J. Glauthier:
On October 9, the Senate Energy & Natural Resources Committee approved T.J. Glauthier's nomination to become the next Deputy Secretary of DOE. The full Senate has yet to vote on the nomination.
3.) Big Oil:
The October 10 issue of "Congressional Quarterly" has two articles about "big oil's new agenda." The articles basically portray the industry as needing federal dollars to "...offset overly complex rules for the industry." (Big oil's agenda is to ask for more federal dollars.) In one of the articles, "Is Big Oil's Profit Well Starting to Run Dry?" -- a subheading, "Calls for Conservation" mentions greenhouse gas emissions, energy taxes, and environmentalists.
4.) OPEC Graphs:
In anticipation of the 25th anniversary of the OPEC oil embargo (October 25, 1973), the American Council for an Energy Efficient Economy has prepared a series of graphs depicting changes in oil production, importation, and use between the time of the 1973 OPEC oil embargo and today. The charts are available on the web at
5.) Energy March:
On October 24, there will be a "March for Peaceful Energy" on the Mall in Washington, D.C. For further information, contact the sponsoring group, D.C. Solar, or its president, Richard Lasken (301-345-3454; PlantSeedK@aol.com); the web address is
6.) Earth Day 2000:
Denis Hayes, one of the founders of the original 1970 Earth Day, as well as of the 1978 SUN DAY and the 1990 Earth Day, is proposing a major international Earth Day event on April 22, 2000 -- possibly with a primary focus on sustainable energy. A five-page memo from Denis Hayes' office describing the national Earth Day events in 1970 and 1990 illustrates what Denis hopes might be accomplished with Earth Day 2000. Let us know if you would like us to fax you a copy
FEDERAL ENERGY BUDGET
1.) E&W Appropriations:
On October 7, President Clinton signed the FY'99 Energy & Water Appropriations bill which funds the U.S. Department of Energy's (DOE) renewable energy and nuclear power programs. There is an unconfirmed report that the White House is still negotiating for an additional $25 million for renewable energy program funding.
2.) Interior Appropriations:
There is an unconfirmed report that the Interior Appropriations conferees have agreed upon a FY'99 budget number of $642 million for DOE's energy efficiency programs -- a figure roughly $50 million above FY'98 levels. Reportedly, the Administration is trying to increase this by approximately $30-$50 million. The bill is expected to be a part of an omnibus spending bill which could also include the Labor-HHS, Foreign Operations, District of Columbia, and Commerce, Justice, and State FY'99 appropriations bills.
3.) EPA/Climate:
The House-Senate FY'99 VA-HUD Appropriations bill conferees cut $19.95 million from the Administration's request for the EPA's climate change research program as well as $6.36 million from the global change research program. Conference report language tempered House provisions regarding EPA activity on the Kyoto Protocol on global climate change. "The bill language is intended to prohibit funds provided in this bill from being used to implement actions called for solely' under the agreement, leaving the agency free to run climate-related programs that pre-dated or are independent of the Protocol. Let us know if you would like us to fax you the 4-pages of relevant report language.
ELECTRIC UTILITY RESTRUCTURING
1.) SC/Stranded Costs:
In addition to the $112 billion in potential stranded costs in 11 states noted in the Safe Energy Communications Council's recent study, Knight-Ridder (September 26) reports that South Carolina regulators expect aggregated stranded costs in that state to total at least $1.2 billion and possibly much higher. The state is home to seven nuclear reactors, the second-largest total in the nation.
CLIMATE CHANGE
1.) League of Conservation Voters/Clinton:
In remarks at the League of Conservation Voters dinner on October 7, President Clinton stated that "the largest obstacle we face in our Congress, in our country, and in the world in getting a united, serious approach to climate change is the deeply imbedded, almost psychic dependence that so many decision-makers in our country and all over the world have to the elemental notion that economic growth is still not possible without industrial era energy use patterns. ... People are literally obsessed with the notion that seriously addressing climate change is somehow a plot o wreck America's economic future and political sovereignty. ... [They say] 'don't show me those solar reflectors that go on roofs now that look just like ordinary shingles. Don't bother me with those windows that let in twice as much light and keep out twice as much heat and cold. I don't want to hear about the economics of insulation or the lights that will save themselves a ton of greenhouse gas emissions during the life of the lamp.' ... We still have a huge intellectual battle to fight: It is simply not true that you can't grow the economy and improve the environment. And vast, vast technological and conservation and alternative energy source opportunities have been completely untapped compared to their economically available potential in our country today."
2.) Oil/Climate:
Greenpeace has released a new 70-page study, "The Oil Industry and Climate Change," which warns that an estimated $94 billion will be spent worldwide in 1998 on oil and gas exploration and production -- an increase of 11% from $85 million in 1997. This represents the second highest growth in spending in the last decade and third consecutive year of double digit growth. Moreover, the U.S. government, by the most conservative estimate, provided $5.2 billion in tax breaks and financial assistance to the oil sector (1995 data). Even the more progressive oil companies, Shell and BP, which have acknowledged the risks of climate change, continue to invest heavily in oil development. Shell spent about $7.5 billion in 1977 on oil exploration and production but plans to spend only $100 million over the next five years on renewables. BP is aiming for $1 billion in solar product sales by 2010 but this is dwarfed by the $4 billion is spent on exploration and production in 1997. The report can be found at www.greenpeace.org - follow the link to "climate," and then to "industry."
MISCELLANEOUS
1.) Coalition List:
Let us know if you would like us to fax you a copy of the updated, 4-page list of the 35 organizations that comprise the Sustainable Energy Coalition with contact names, addresses, phone #'s, fax #'s, web site addresses, and areas of interest.
2.) Coalition Membership:
At its most recent monthly meeting, the Sustainable Energy Coalition approved guidelines for a new category of "associate members" designed primarily to facilitate participation in the Coalition by organizations not based in the Washington, D.C. area. Let us know if you would like us to fax or e-mail you a copy of the guidelines so that you can determine whether you would like to apply for associate membership in the Coalition.
3.) Public Opinion Survey:
In late October, the Sustainable Energy Coalition will be releasing the results of a new public opinion survey conducted by the firm of Research/Strategy/Management. The survey includes more than a dozen questions on U.S. dependence on oil imports and on climate change. The oil dependency questions will be released at an October 21 news conference -- in advance of the 25th anniversary of the OPEC oil embargo (October 25). The climate change questions will be released at an October 28 news conference -- in advance of the Buenos Aires meeting on the Kyoto Protocol (beginning on November 2). The Coalition is inviting grassroots groups to help co-release either set of questions at news conferences they sponsor in their local communities; if interested, please let us know and we can provide you with a copy of the survey questions (but not yet the results) for your consideration.
4.) Photovoltaic/Record:
The October 1 issue of "Photovoltaic Insider's Report" notes that Siemens Solar Industries has announced a new world record for thin-film photovoltaic module conversion efficiency. The company's copper indium diselenide (CIS) thin-film technology has achieved a conversion efficiency of 11.8% as confirmed by NREL. Siemens recently introduced 5- and10-watt CIS modules for commercial distribution and will announce the availability of new large-area modules in the near future.
FEDERAL ENERGY BUDGET
1.) E&W/Renewables Budget:
The conferenced Energy & Water (E&W) Appropriations bill provides some $365 million for solar and renewable programs in FY'99 compared to $345 million in FY'98. Though not as high as the Administration's request of $437 million, the $365 million is a compromise figure between the House and Senate bills. The House had offered $351 million for the programs while Senate appropriators had initially proposed $345 million. Adoption of the Jeffords-Roth floor amendment by the Senate in early summer had added $58 million to the latter figure. This means essentially level funding for most renewable programs except hydrogen and biomass/biofuels which receive an increase of about $20 million total -- roughly the level of increase in renewables funding over FY'98. However, the FY'99 budget is raiding the FY'98 appropriation to the tune of $50 million so effectively, renewables are being cut by $30 million net over the two-year period. Senator Jeffords was expected to make a statement on the Senate floor voicing his displeasure with the renewable energy provisions. Let us know if you would like us to e-mail you the full E&W conference report.
2.) E&W/Renewables Language:
The E&W conference report language affecting renewable energy and other trade associations states that "as a general rule, appropriated funds should not be used to underwrite the operating expenses of industry associations." Furthermore, "financial assistance activities for information dissemination and outreach activities conducted by industry associations shall be competed..." The report reiterated provisions of current lobbying law that "prohibits the award of Federal grants, contracts and financial assistance to 501 (c)(4) organizations which engage in lobbying activities." Let us know if you would like us to fax you a copy of the complete 2-page text.
3.) E&W/Nuclear Fission:
Overall, nuclear energy funding was raised to $284 million from $243 million in FY'98. That is more than the $227.7 million approved by the House but less than the $309 million proposed by the Senate. The nuclear energy account also got a new program: the Nuclear Energy Research Initiative ($24 million requested) which received $19 million; the Senate had earlier approved $24 million but the House only $5 million. The conferees did not include funding for the Nuclear Energy Plant Optimization program ($10 million requested); earlier, the Senate had gone along with the Administration but the House shut out NEPO. Let us know if you would like us to fax you a copy of the 3-page section of the report language on nuclear fission.
4.) E&W/Fusion:
The conferees provided a total of $229.8 million for fusion energy sciences, an increase of $1.6 million over the amount in the budget request. The fusion energy program has been moved from the energy account to the science account. Even though DOE Secretary Bill Richardson signed an extension of the International Thermonuclear Experimental Reactor program last week, the conference report states that "the Department is directed not to sign an extension of this agreement without the written consent of the authorizing and appropriations committees of the House and Senate." Let us know if you would like us to fax you a copy of the 2-page report language on nuclear fusion.
ELECTRIC UTILITY RESTRUCTURING
1.) Stranded Costs:
A new Safe Energy Communication Council study, "The Great Ratepayer Robbery: How Electric Utilities Are Making Out Like Bandits At the Dawn of Deregulation," says that electric utilities in 11 states are demanding more than $112 billion to bail out their failed investments as electric utility deregulation begins. This averages out to $950 for residential ratepayers and $6,500 for commercial customers. Nuclear plants account for the majority of stranded costs. The study charges that utilities have inflated their stranded cost estimates and that "stranded cost recovery will stifle competition, reward inappropriate utility investments, and is likely to inhibit job creation." The executive summary can be found at www.safeenergy.org or call SECC at 202-483-8491.
2.) Utilities/Efficiency:
On October 1, the Environmental Working Group released a study showing that electric utilities have dramatically reduced their spending on energy efficiency programs. Overall, utilities on average cut their energy efficiency spending by about $500 million from 1993-1996, or approximately 25%. Instead of spending the $2.5 billion on energy efficiency that they predicted in 1993, utilities spent less than $1 billion. If the utilities invested the former amount, they could have reduced CO2 emissions by more than 7 million tons, NOx emissions by more than 16,000 tons, and SO2 emissions by more than 32,000 tons in 1996 alone. Let us know if you would like us to fax you copies of three charts accompanying the report regarding public reaction to the funding cut-backs and the willingness of Americans to pay more for clean energy to reduce CO2 emissions.
3.) Deregulation Initiatives:
According to a Los Angeles Times poll released September 22, 36% of California voters support Proposition 9 (to overturn the state's stranded cost provisions) while 21% oppose the measure; however, 43% of voters remain undecided. In Massachusetts, the coalition of utilities and others supporting the state's deregulation law had raised $3.6 million (97% from power companies) while opponents had raised only $156,210.
4.) Enron/New Hampshire:
The September 23 issue of "Megawatt Daily" reports that Enron, one of the last remaining marketers serving New Hampshire residents as part of the state's retail choice pilot program, has withdrawn from further participation. Enron blames Public Service of New Hampshire for the delay in competition because of PSNH's lawsuit against the state that has blocked competition and PSNH's elimination of the 10% pilot project discount which has caused rats to go up. Until the utility market opens up to genuine competition, Enron plans to "go after larger commercial and industrial customers, because you can deal with them on a one-on-one basis."
5.) Utility Fire Sale:
The September 7 issue of "Public Power Weekly" reports that during the past 18 months, more than 10% of U.S. electric power generating capacity valued at $18 billion has been sold or offered for sale by 23 regulated investor-owned utilities. This info comes from the Utility Data Institute which says that "the sellers could ... be looking at losing at least 25% of their net income as a result of the sale of these generating assets."
CLIMATE CHANGE
1.) Japan/Climate:
Dow Jones Newswires reports that the Japanese Diet was expected to enact legislation on October 2 implementing a series of domestic measures to reduce greenhouse gas emissions to meet its obligations under the Kyoto Protocol. The measure obliges not only the state and prefectural governments but also municipalities down to village level to plan and implement programs to meet Japan's reduction obligations. The government will approve basic policies drawn up by local administrations and citizens, as well as form and publicize a plan on how to cut its own gas outputs. Meanwhile, back in the U.S. Congress ...
2.) Michigan Environmental Poll:
An article from the September 21 "Detroit Free Press" describes a state-wide environmental poll of 600 resident conducted in Michigan by EPIC/MRA of Lansing, MI. Respondents were split on whether people are causing climate change with 44% saying air pollution is directly causing global warming while 42% believe that claims about global warming are exaggerated. Nonetheless, more than 60% said they support the Kyoto Protocol. Even after the pollster explained that opponents say the Kyoto agreement will result in "taxes that could harm industry at home and U.S. investments abroad as well as cost millions of jobs, 51% favor the agreement while only 28% oppose it.
3.) Five-Lab Study Critique:
The General Accounting Office has prepared a report, "Climate Change: Information on Limitations and Assumptions of DOE's Five-Lab Study" (RCED-98-239), as the request of Senators Craig, Hagel, Helms, and Murkowski. It notes that "the study's finding that a widespread adoption of energy-efficient technologies can be achieved with a low to no net cost to the nation is heavily dependent on the assumptions made." The report's authors add that "we found a disparity of views on some of the key assumptions that may have influenced the study's results." The document can be found at
4.) Climate Articles:
A 1-page article "Climate Treaty: A Very Cheap Insurance Policy for U.S.," co-authored by Alden Meyer (UCS) appeared in the September 16 issue of the "Houston Chronicle;" it discusses the costs and impacts of climate change -- particularly in Texas. A 1-page article in the September 28 "CQ Daily Monitor" discusses the Competitive Enterprise Institute's new anti-Kyoto ad campaign; in one ad, a woman spurns conservation appeals saying, "Sure, I'll turn off the lights -- when I'm ready for bed." Let us know if you would like to see either article.
MISCELLANEOUS
1.) Solar Home Tour:
The American Solar Energy Society is hosting the National Tour of Solar Homes on Saturday, October 17. Tours are scheduled to take place in over 100 communities in 36 states. On last year's tour, more than 12,000 people visited solar homes that exhibited a variety of design styles, prices, and building materials. For further information, check ASES' website at:
2.) Senate Caucus:
The Senate Renewables & Energy Efficiency Caucus has gained its 15th member: Senator Jeff Sessions (R-AL).
3.) Hybrid Toyota/50 mpg:
An article in the September 23 "Detroit Free Press" reports that federal environmental regulators say the Toyota Prius, a car that uses electricity and gasoline, will get about 50 mpg in the city and on the highway. By comparison, the Dodge Neon gets 29 mpg in the city and 41 on the highway. Toyota is the first major automobile company to market a car that uses an electric motor at low speeds, then switches to a gasoline engine at about 15 mph. Toyota is preparing to offer a U.S. version on the Prius in 2000; it has been selling briskly in Japan since early this year. Once the Prius is retooled for more highway travel in the U.S., Toyota's target is an average of 60 mpg both in the city and on the highway. General Motors says that it is preparing to match or better the Prius by introducing its own car with a hybrid power train in 2001. For more information, Toyota's research laboratory in Ann Arbor, MI can be reached at 734-995-2086.
4.) Fuel-Cell Van:
On September 29, General Motors Corp announced that it had developed a nearly zero-emissions minivan that converts methanol into hydrogen gas for use in electricity-producing fuel cells. GM says it is also looking at feeding fuel cells with gasoline, natural gas, and pure hydrogen. The company said a version of the Opel Zafira should be ready for global market by 2004. The Zafira is a concept vehicle that's smaller than a standard minivan and is capable of 75 mph.
5.) NREL/MRI:
The U.S. Department of Energy has re-awarded the Midwest Research Institute (MRI), along with its new partners Bechtel and Battelle, the five-year management contract for the National Renewable Energy Laboratory (NREL). MRI has held the contract for the past 20 years; the renewed contract has a potential value of more than $800 million, depending on future EE/RE appropriations. MRI beat out two other competitors: Sustainable Energy Solutions and Science Applications International Corp.
6.) Kill the Labs:
An article in the September 21 "Denver Business Journal" reports that the Competitive Enterprise Institute "has taken an active interest in the national labs because it believes they are 'a waste of money and should be eliminated. ... The problem with renewable energy is that it is more expensive than fossil fuels. Until the costs of solar or wind power come down, it is not a wise use of funds. Especially when oil, coal, and natural gas are the cheapest forms of energy, it makes no sense to be committing public funds to anything else.'"
October 12, 98
October 5, 98
NEXT PAGE -->
