THE SUSTAINABLE ENERGY COALITION

Nov 16, 98

FEDERAL ENERGY BUDGET

1.) FY'2000 Budget:

A source reports negotiations between the U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy and the Office of Management and Budget (OMB) about the Fiscal Year 2000 budget request "are not going all that well." Reportedly, DOE's initial proposal for a FY'2000 budget for its energy efficiency and renewable energy programs is $1.12 billion. This compares to a FY'99 budget of $1.04 billion for these programs and the Coalition's proposal of $1.43 billion. However, mid-level OMB program managers are reported to be pressing for even lower numbers than DOE has requested.

2.) Livingston/Sustainable Energy:

The expected approval of Representative Bob Livingston (R-LA) as the new speaker of the House of Representatives may prove to be bad news for proponents of sustainable energy technologies. As chairman of the House Appropriations Committee following the Republican take-over of Congress in 1994, Livingston oversaw cuts of 30% in the U.S. Department of Energy's renewable energy and energy efficiency budgets. Moreover, he did not support the successful floor amendments in 1995 and 1996 to restore some of the renewable energy funding. Similarly, as a representative from a major oil and gas state, Livingston opposed efforts earlier this year to temper the language in the Knollenberg rider which sought to restrict federal climate change activities. He received a score of only '7' (out of 100) in the League of Conservation Voters' October 1998 'National Environmental Scorecard.' Likewise, he received a score of '0' in Public Citizen's assessment of congressional votes for his opposition to cuts in nuclear and fossil fuel funding as well as his support for nuclear waste legislation.

3.) E&W Chair:

There are various rumors about who will be the next chairman of the House Appropriations Subcommittee on Energy & Water which oversees DOE's renewable energy and nuclear power accounts. One source says it is likely to be Rep. Ron Packard (R-CA).

ELECTRIC UTILITY RESTRUCTURING

1.) Energy Committees:

Reuters (Nov. 5) reported that a new chairman of the House Commerce Committee's Subcommittee on Energy & Power, which will be considering utility restructuring legislation next year, is expected to be chosen as early as mid-November. The leading contenders to replace Rep. Dan Schaefer (R-CO) are Reps. Joe Barton (R-TX) and Michael Bilirakis (R-FL). In addition to Schaefer, the energy subcommittee saw restructuring proponent Bill Paxon (R-NY) depart, along with Michael Crapo (R-ID), Rick White (R-WA), and Elizabeth Furse (D-OR). On the Senate side, Sen. Frank Murkowski (R-AK) is expected to continue as chairman of the Energy & Natural Resources Committee with Sen. Jeff Bingaman replacing retiring Sen. Dale Bumpers as the ranking member.

2.) CA/MA Initiatives Aftermath:

Not surprisingly, the winning side of the California and Massachusetts restructuring initiatives view their victories as an "overwhelming mandate" to move forward as suggested by Alan Fohrer of Southern California Edison. Similarly, Allen Zaremberg of the California Chamber of Commerce said "the defeat of Proposition 9 is clearly a strong vote of confidence in California's competitive electric market [and] Californians are pleased with the way the competitive market is progressing." The initiatives' outcome is seen as a greenlight by utilities in other states. Robert Snyder, of the Ohio Electric Utility Institute says the "outcomes in California and Massachusetts are victories for the cause of responsible electric deregulation done in a way that meets the needs of residential and business consumers and ... allowed electric suppliers reasonable opportunities to recover costs for electric generation already built and in service." However, George Knapp, Chair of the American Bar Association's Section of Natura

l Resources, Energy, and Environmental Law has warned that the defeat of the initiatives should be a wakeup call for those who believe it is now safe to go forward with utility restructuring without fear of a popular backlash; "the mere fact that these initiatives have come forward suggests that a period of regulatory and legislative turmoil and uncertainty will continue." The "Wall Street Journal" had similarly editorialized on November 3 that "there is legitimate distaste in California at what has been wrought in the name of deregulation [and] others would be wise to treat California as a bellwether of how not to do things." It specifically criticized the payment of the utilities' stranded costs as part of the state's restructuring plan.

3.) Texas Poll/Renewables:

A deliberative poll conducted October 16-17 among customers of Texas Utilities, the largest utility in Texas, found that 56% opted for renewables as the top resource preference, followed by 30% for efficiency, 8% for natural gas, and 1% for coal. Moreover, 88% said they'd be willing to pay at least $1 more per month for renewables. The media value of willingness to pay more on their monthly TU electric bill was $5 for renewable energy, $2 for energy efficiency, and $0 for coal and natural gas. Regarding how these investments should be made, 79% expressed a preference for spreading at least some portion of development costs among all utility customers, while only 17% favored exclusive use of voluntary "green pricing" programs. In addition, 64% of customers regard global warming as a somewhat serious or very serious issue.

4.) Episcopal/Green Power:

The most recent issue of "Green Power Notes" reports that in October, the Episcopal Diocese of California approved a resolution, Episcopal Power and Light, recommending that all Episcopal congregations and communicants in the state purchase electricity from clean, renewable resources. Four Bay Area Episcopal churches already have switched to a green power provider. The Episcopal Power and Light Resolution established the Diocesan Commission for the Environment as the research and resource center for questions and answers on the issue and to provide assistance in selecting a green power provider. For further details, contact Rev. Sally Grover Bingham at 415-929-1589, ecosal@aol.com.

CLIMATE CHANGE

1.) Kyoto Protocol Signed:

Thursday afternoon (November 12), the United States formally signed the Kyoto Protocol in New York City. To put the Protocol into effect, though, the document must be "ratified" (not just signed) by 55 nations including those responsible for at least 50% of the world's greenhouse gas emissions (e.g., the U.S. and Russia). While nearly 60 nations have signed the Protocol, apparently only Fiji has formally ratified the document to date. The Union of Concerned Scientists said the signing "is a useful step, but a giant leap is needed." Similarly, the Sierra Club warned that if the signing "is to have more than merely symbolic meaning, ... the Administration [must] take concrete domestic actions to slash greenhouse gas pollution." The National Environmental Trust reiterated this theme: "Until the U.S. commits to meaningful reductions at home, the Kyoto global warming treaty cannot be completed and we cannot move ahead to protect the environment." And Greenpeace added that "what really counts is ... getting the job done; ... the U.S. government is still holding the rest of the world hostage by supporting the agenda of the fossil fuel industry."

2.) Climate Change Worse:

A recent article from the "Washington Post/Le Monde" warns that the greenhouse effect is worse than earlier feared. Based on calculations made by the world's biggest super-computer at Britain's Hadley Centre for Climate Change, parts of the Amazon rain forest are predicted to turn into desert by 2050, threatening the world with an unstoppable greenhouse effect. Also by 2050, the number of people on the coast subject to flooding each year will rise from 5 million now to 100 million. Another 30 million people will be hungry because it will be too dry to grow crops in large parts of Africa. Malaria will threaten much larger areas of the world, including Europe (Italy had an outbreak last year). In the U.S., wheat and maize yields will drop by up to 10%. 3.) Climate Change/Equity:

The Pew Center on Global Climate Change has issued a new study "Equity and Global Climate Change" suggesting a new approach to setting obligations for developed and developing nations to control greenhouse gas emissions. The study proposes grouping nations into three tiers each with a different level of commitment to reduce emissions. Tier one is comprised of countries, including the U.S., that have the greatest obligation to act now because of their high emissions, standard of living, and opportunities to improve their energy efficiency. The second tier includes countries such as Russia, India, and China that should act to reduce greenhouse gas emissions but have different obligations because their standard of living is below the world average. The third tier, which includes Vietnam, Pakistan, and Indonesia, is comprised of countries that contribute less to the problem and have fewer resources to mitigate their emissions. The study can be found at www.pewclimate.org.

4.) Anti-Kyoto Poll:

The Global Climate Coalition, which has been critical of proposals to combat global warming, has released a new Wirthlin Worldwide poll of 1,008 voters which claims that a majority of voters (68%) agreed that more research is needed before the United States limits itself and most Americans (71%) believe the United States should speed up voluntary programs to reduce greenhouse gases and do more research and development. GCC says that in spite of a lack of general support for the treaty, more than half of voters (54%) said that President Clinton should immediately sign the treaty and submit it to the U.S. Senate for debate next year. For details, call Frank Maisano (GCC) at 202-628-3622.

5.) Nuclear/Climate Change:

The Nuclear Information & Resource Service has released a 3-page sample letter- to-the-editor discussing why nuclear power is not a solution to climate change. It outlines economic, radioactive waste, and proliferation arguments. Let us know if you would like us to fax you a copy.

MISCELLANEOUS

1.) Earth Day 2000:

The Earth Day 2000 program has issued a 3-page memo outlining the proposed goals and structure for the program. It notes that the objectives of the Earth Day 2000 campaign "will be two-fold: first, to promote an energy platform that will revolutionize the energy industry and create a transition to safe, renewable energy sources; second, Earth Day will amplify the work that we all do every day." Earth Day 2000 also sent us a 1-page job opening notice for a Senior Organizer. Let us know if you would like us to fax you a copy of either paper.

2.) Santa Monica/Renewables:

"Green Power Notes" reports that the Santa Monica (CA) City Council voted in October to switch to 100% renewable resources and purchase up to 5 MW of renewables to meet the power needs of city facilities. Currently, the city spends about $2.3 million annually on power consumption at its municipal facilities. The city will also look into community aggregation for residents and businesses. Henwood Energy Services is preparing the Santa Monica RFP for release shortly. For info on the RFP, check out Henwood Energy's web site at or call Henwood's Kristen Kelley at 916-569-0985.

3.) Texas Renewables:

The Texas Solar Energy Society reports that by next summer, nearly 200 MW of new renewables will be installed in Texas -- $200 million worth of projects distributed in a dozen different locations. Currently, there are 42 MW of large wind projects statewide; over the next year, Texas installed wind capacity should at least quadruple with the addition of a 75 MW windfarm at McCamey, a 35 MW windfarm at Big Spring, a 30 MW windfarm in Culberson County, and a 4.5 MW "distributed" windfarm near the city of Brownfield. The four now-operational landfill gas projects in Texas will be supplemented by five additional projects in Austin, Dallas, Garland, Waco, and San Antonio; the last will provide enough gas to generate 17 MW of electricity. The current installations of large-scale photovoltaic systems (which total less than 1 MW) will be supplemented by 153 kW of PV projects being built as part of the City of Austin "Solar Explorer" program. For further information, contact Mike Sloan, Chairman - TXSES, at 512-476-9899, sloan@vera.com.


Nov 8, 98
FEDERAL ENERGY BUDGET

Renewables/Federal Purchases:

The American Solar Energy Society (ASES) has released the results of the poll question in included in the Coalition's recent public opinion survey. The poll asked whether "the federal government should increase its purchase of renewable energy or not?". In response, 75% of voters said they favor this approach with 54% "strongly" in support. However, ASES notes that because the current up-front costs of renewable energy are higher than fossil fuel costs, the federal government, the nation's largest energy customer, actually purchases very little. It adds that the federal government spends $8 billion per year for all of its energy needs, including $3.5 billion for electricity. By relying on renewables to supply just one-half of one percent of its power needs by the year 2000, the federal government could prevent 51,000 metric tons of carbon emissions from polluting the air. For details, see www.ases.org/solar follow the link to "press releases."

ELECTRIC UTILITY RESTRUCTURING

1.) Net Metering Attack:

The October 23 issue of the "Federal Register" (Vol.63, No.205, pp.56927-56929) notes that the MidAmerican Energy Company has requested the Federal Energy Regulatory Commission to enjoin the Iowa Utilities Board from implementing its earlier decision that directs MidAmerican to interconnect with a private power producer and provide net metering arrangements. Some view the filing as a potential threat to net metering arrangements in the various states that have enacted such provisions to encourage the use of renewable energy for electricity production. The formal deadline for comments is November 16.

2.) Restructuring Initiatives:

The initiative to repeal Massachusetts' restructuring law was defeated in the recent election by a margin of 29% to 71%. In California, Proposition 9 to repeal portions of that state's restructuring law was also rejected with 26.5% of voters in support and 73.5% in opposition (based on 99% of precincts reporting); 1.8 million voters in favor but 5.0 million opposed. Proposition 9 advocates report that the anti-Proposition 9 utilities had to spend $8 for every vote they garnered to defeat the measure. However, it cost the utilities only $6 per vote to defeat the anti-deregulation initiative in Massachusetts.

3.) Electricity Prices:

Two new studies from the Energy Information Administration, "Electric Sales and Revenue 1997" and "Electric Power Annual 1997" report that industrial customers in 1997 paid the lowest prices for electricity in 17 years. EIA notes: "Four straight years or price declines for industrial customers suggest they've been using their size and anticipation of lower prices resulting from greater competition in generation to win concessions from electric utilities." The studies also report that nonutility generating capacity and gross generation accounted for 9% of total electric capacity and 10% of total electric generation. The reports can be found at ftp://ftp.eia.doe.gov/pub/electricity/esr.pdf and ftp://ftp.eia.doe.gov/pub/electricity/epav2.pdf respectively.

CLIMATE CHANGE

1.) Greenhouse Gas Emissions:

The Energy Information Administration has released a new report, "Emissions of Greenhouse Gases in the United States 1997" which reports that emissions of U.S. greenhouse gases increased by 1.4% between 1996 and 1997. While this is half the rate of increase experienced a year earlier, it represents a return to the average rate of increase experienced during the 1990s. Emissions now are nearly 10% higher than the 1990 level -- the base year for international negotiations to limit greenhouse gases. On the "bright" side, the study found that greenhouse gas emissions continue to grow less rapidly than the U.S. economy, which grew 3.8% between 1996 and 1997. Furthermore, emissions growth for greenhouse gases other than carbon dioxide was relatively flat with a net increase of only 2 million metric tons (0.7%) of carbon equivalent. And for the first time in six years, the transportation sector made little contribution to U.S. carbon emission growth. The largest increase in energy-related carbon dioxide emissions came from the commercial sector followed by the industrial sector, "indicating a continuation in the shift in the U.S. economy from more energy-intensive goods to less energy-intensive services." An electronic version of the report is available on EIA's web site at https://www.eia.doe.gov/oiaf/1605/1605a.html.

2.) Climate Survey:

The Program in International Policy Attitudes has released the results of polls done in April 1998 and October 1998 as well as a comprehensive review of other polling data. It determined that an overwhelming majority believes that global warming is a real problem that requires action and favors the Senate ratifying the Kyoto Protocol. A majority would prefer that the Protocol require developing countries to limit (though not necessarily reduce) their emissions, but nonetheless favors ratifying it if the developing countries do not agree. A majority is willing to accept increases of $25 per month in household energy costs - an amount sufficient according to government estimates of Protocol compliance, but only if the Protocol includes emission rights trading. A majority initially opposes the idea of emissions rights trading but shifts to support after hearing pro and con arguments and the economic trade-offs. Details can be found at https://www.pipa.org.

3.) Climate Study:

EPA's Office of Atmospheric Programs and the Lawrence Berkeley National Laboratory have prepared a new analysis "Technology and Greenhouse Gas Emissions: An Integrated Scenario Analysis Using the LBNL-NEMS Model." It suggests that implementing policies to encourage the development and deployment of energy-efficient and low-carbon technologies can reduce the rate of carbon emissions to 147 grams per dollar of GDF (compared to 192 grams today). This will reduce carbon emissions to about 1530 MtC by 2010 (compared to 1803 MtC presently anticipated). The study can be found at the LBNL website: https://enduse.lbl.gov/Projects/GHGcosts.html.

ELECTION RESULTS/IMPACTS

1.) Election Results:

The Union of Concerned Scientists has prepared a 3-page memo providing "a list of the new Members of the Senate and House, based on open seats and upsets." The list is organized alphabetically by state and then by district. It also includes the percentage of the vote the new Member received. Let us know if you would like us to fax you a copy.

2.) Caucus Counts:

The 136-member House Renewable Energy Caucus will be down by 12 members due to retirements (Christensen, Fazio, Furse, Klug, Riggs, Schaefer, and Skaggs), defeats (Fox and Redmond), and members running for other offices (Crapo and Ensign). The post-election House Renewable Energy Caucus will total 124 members with 55 Republicans, 69 Democrats, and 1 Independent; this represents a loss of 8 Republican members and 4 Democratic members. The election did not change the composition of the Senate Renewables and Energy Efficiency Caucus, of which only one member was up for re-election (Murray).

3.) Elections/Clean Air:

The U.S. Public Interest Research Group's recent Clean Air Now! campaign resulted in 61 members of the new Congress signing all or part of the group's five-part pledge. Of those signing, 53 agreed to "require increased investment in non-polluting energy efficiency and renewable energy sources..." while 42 agreed to "stop efforts to charge consumers for bailing out failed fossil fuel and nuclear power plants." In addition, 53 members agreed to "require all power plants, old and new, to meet the modern emission standards met by new plants today" while 48 agreed to "set strict emission standards for carbon dioxide from power plants consistent with stabilizing the world's climate." Let us know if you would like us to fax you the 3-page memo with the list of signers.

4.) Elections/Nuclear Waste:

Public Citizen believes that the members of the new Senate will probably provide the margin needed to ensure that any future Clinton veto of proposed legislation to build an "interim" high-level nuclear waste repository at Yucca Mountain, NV will continue to be sustained.

MISCELLANEOUS

1.) Fuel Cell Council:

Leading fuel cell manufacturers, suppliers, and customers have formed a new business association, the U.S. Fuel Cell Council. The Council begins with 14 executive members including representatives of all fuel cell technologies (i.e., solid oxide, molten carbonate, phosphoric acid, and PEM). The group says it "will be a central clearinghouse of information and technical expertise, help guide code and standard setting, inform the regulatory process, and assist policy makers by providing authoritative information about the technology and our industry." For further information, see www.usfcc.com.

In a related development, the "Hydrogen & Fuel Cell Letter" reports that GE Power Systems is forming a joint venture with startup fuel cell maker Plug Power of New York to be called "GE Fuel Cell Systems." The joint venture will distribute, install, and service fuel cells for the residential and small commercial market; pre-commercial units will be placed for evaluation early next year, with commercial sales expected to commence in late 2000. Initial units are expected to retail for $3,000 - $5,000, generating electricity at 7-10 cents/kWh, depending on the cost of its fuel -- natural gas, propane, or methanol. Capturing and utilizing excess heat can increase the overall efficiency of the units from 40% for electricity only 70-85%.

2.) Earth Day 2000:

The theme of the Earth Day 2000 program being organized by Denis Hayes (co-founder of Earth Day 1970, Sun Day 1978, and Earth Day 1990) is 'New Energy for a New Era'." Earth Day 2000 can be reached at 91 Marion Street, Seattle, WA 98104 (206-405-1773). Its Executive Director is Peter Drekmeier (pdrekmeier@earthday.net). Christopher Curtis (ccurtis@earthday.net) is the National Coordinator. Michael Closson (mclosson@earthday.net) has taken a leave of absence from his post as Executive Director of the Center for Economic Conversion to become the group's Issues Co-Director. The organization is now seeking to hire a Campus Organizer; let us know if you would like us to fax you a copy of the job description.

2.) NREL News Releases:

The National Renewable Energy Laboratory has created a new News & Events page which provides news releases, background info on efficiency and renewables, as well as the opportunity to register to be placed on NREL's e-mail list to receive future news releases. The site is https://www.nrel.gov click on News & Events.

4.) DOE Grants:

The U.S. Department of Energy has announced a competitive solicitation for applications for grants and cooperative agreements totaling $12 million for information dissemination, public outreach, training, and related technical analysis and technical assistance activities involving renewable energy and energy conservation. Details are provided in the October 26 "Federal Register" (Vol.63, No.206, pp.57111-57113). Questions can be directed to Jackie Kniskern at DOE; phone: 202-426-0046; e-mail: jacqueline.kniskern@hq.doe.gov.

5.) U.S. Energy Goals:

The Sustainable Energy Coalition has drafted a set of proposed national energy goals that envisions increasing renewable energy's share of total energy use from 8% today to 15% in 2010 and 25% by 2020. It also proposes holding total U.S. energy use steady through 2010 notwithstanding an expanding economy and growing population and a 10% reduction by 2020. Other goals include a phase-out of nuclear power by 2020 as well as a 10% reduction in coal and oil use by 2010 and 30% by 2020 with an eventual goal of a total phase-out of fossil fuels. Let us know if you would like us to fax you a copy.

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