FEDERAL ENERGY BUDGET
Nov 30, 98
FEDERAL ENERGY BUDGET & TAXES
1.) FY'00 EE/RE Budget:
The U.S. Department of Energy (DOE) received the "pass-back" from the Office of Management & Budget (OMB) of its proposed Fiscal Year 2000 (FY'00) budget request on November 23. DOE has five days to provide a detailed response. While OMB moved some money around in DOE's FY'00 budget request, it increased the energy efficiency and renewable energy (EE/RE) bottom line by only $15 million which would leave the EE/RE total at only $1.16 billion -- almost $40 million below the FY'99 request. White House officials have cautioned the environmental community not to expect significant budget increases in FY'00 due to the declining budget caps provided for in the 1995 budget agreement and because any surplus will be earmarked first for social security. Incidentally, the environment in Congress may be shifting on climate change, perhaps making it easier to make progress on an expanded sustainable energy budget. Reportedly, Senators Chuck Hagel (R-NE) and Frank Murkowski (R-AK) -- both earlier critics of the Kyoto Protocol -- have recently made statements acknowledging the need to begin to act on climate change through technology initiatives.
2.) Climate Change Tax Package:
The Administration is developing a revised climate change tax package that will be transmitted to Congress a few weeks after the FY'00 budget request is sent. It is expected to incorporate some of the proposals in the tax package that was under consideration earlier this year following President Clinton's State of the Union address. However, it may include new initiatives such as incentives for no-till farming. And there is some debate on the automotive tax provisions. The auto companies reportedly oppose tax subsidies for cars that are significantly more fuel efficient because they would tend to favor imports. Instead, they want tax breaks for the purchase of cars using new technologies such as fuel cells, EV's, hybrids.
ELECTRIC UTILITY RESTRUCTURING
1.) Administration/Restructuring:
DOE officials report that DOE Secretary Bill Richardson wants to play a major role in the restructuring debate and sees it as a "hot issue" in the next Congress. DOE plans to put out a "revised" package of restructuring proposals "early in the next year." No major changes in the current provisions of the Administration's package are expected but DOE is working on new provisions in two areas: a potentially "controversial" proposal with regard to BPA and TVA; and "consumer friendly" provisions related to low-income and anti-slamming/anti-cramming concerns; there are no details yet on either provision. Some in DOE believe that action on restructuring legislation is more likely in the Senate than in the House in the next Congress. Senator Frank Murkowski (R-AK), chairman of the Senate Committee on Energy & Natural Resources, may be planning to introduce restructuring legislation by Easter (which would probably be a 'PUCHA repeal + reliability' bill), then convene legislative hearings and possibly mark something up by the end of the second quarter. Prospects for House action next year are dimmer as a result of a number of factors.
2.) Net Metering/Attack:
The Project for Sustainable FERC Energy Policy has prepared a 2-page memo summarizing the status of the challenge filed with the Federal Energy Regulatory Commissions by MidAmerican Energy of the Iowa Utilities Board's application of Iowa's net metering rule. MidAmerican wants FERC to declare that federal law preempts the IUB's orders and the state's net metering requirements. The memo warns that an adverse FERC ruling could impact state net metering statutes and regulations all across the country. It notes that the new deadline for filing protests is December 3. In addition, the current issue of "Wind Energy Weekly" includes a 2-page article providing further information on the issue. Let us know if you would like us to fax you either document.
CLIMATE CHANGE
1.) October/Warmest:
The November 25 Toronto "Globe and Mail" reports that last month was the hottest October on record after all. On November 13, the National Oceanic and Atmospheric Administration had issued a preliminary report listing the month as the second warmest October on record at 14.522 degrees Celsius. However, late reports from Canada raised the world's average temperature for the month to 14.54 degrees C. which topped the record 14.527 degrees C. set a year earlier. Thus, the final reading for October means that every month so far this year has been the warmest on record.
2.) Climate Study:
A 2-page news release from the Progressive Policy Institute discusses a new study, "Labor and Climate Change: Getting the Best Deal for American Voters." It urges the U.S. to redirect its focus from trying to secure developing country participation to instead focus on market-oriented policies that can reduce the job costs of climate change policy. These include a "workable international emissions trading regime," "a joint implementation strategy between developed and developing countries," "a significant domestic push for technological innovation," and "an effective job transition strategy." Let us know if you would like us to fax you a copy of the news release or call Jerry Irvine (PPI) at 202-608-1242.
3.) Cogeneration/Europe:
Reuters (November 24) reports that small cogeneration units may boom throughout Europe as energy producers there seek ways to meet the Kyoto greenhouse gas limits. Presently, the current level of Europe's power production from cogeneration is less than 10 percent. Denmark is the current European leader, with more than 40% of the national power production coming from cogeneration while 30% of production in Finland and the Netherlands is from cogeneration. The European Commission has targeted an 18% share of EU electricity production should come from cogeneration by 2010, although the European parliament has said it favors a 25% share.
4.) U.S. Airways/Climate:
In a 1-page editorial that appeared in the current issue of "U.S. Airways Magazine," Stephen M. Wolf, chairman of the board of U.S. Airways, comments that climate change "is a situation that begs for action, not delay." Regarding the Kyoto Protocol, he warns that "rather than seeking ways to escape action, we should be looking for compromise solutions to move the process forward." And on the differences between business leaders and environmentalists, he suggests that "there are many avenues--alternative technologies, forest conservation, energy efficiencies--that provide common ground. It need not be either hard or painful to begin the process of change. It may well be very hard and very painful if we do not." Let us know if you would like us to fax you a copy (the small print may not fax well, though).
MISCELLANEOUS
1.) Wind Potential:
Reuters (November 24) published an interview with Randy Swisher, Executive Director of the American Wind Energy Association, in which he said that the U.S. has the potential to generate 10% of its electricity from wind "over the next few decades." The current installed U.S. capacity of 1,700 MW is expected to grow by 600 to 800 MW between this year and next. Nonetheless, this represents a small share of the domestic electricity market. Denmark, the world leader in wind energy, generates eight percent of its power from wind and is aiming to increase this to 50% over the next few decades. In contrast, California, which has the largest installed wind capacity of any U.S. state, generates only 1.5% of its electricity from wind.
2.) Your Next Car:
Fuel Cells 2000 has issued a 6-page information brochure, designed as an 11" x 8 1/2" heavy-paper binder, entitled "Your Next Car: It May Put Your Gasoline Engine in a Museum." It discusses battery-powered EV, hybrid, and fuel cell vehicles and reviews the various technologies and their safety, climate change, and environmental benefits. For a copy, contact Anne Proctor at 202-785-9620.
Nov 23, 98
FY'00 Budget/Kyoto:
The Sustainable Energy Coalition issued a 1-page news release November 19 noting that the signing of the Kyoto Protocol by the Clinton Administration "would be an empty gesture unless the U.S. puts its money where its mouth is by shifting research and development priorities in the Fiscal Year 2000 Department of Energy budget request toward clean energy technologies and away from polluting [ones]." The Coalition is recommending a 40% increase in funding for DOE's energy efficiency and renewable energy programs from $1.0 billion in FY'99 to $1.4 billion in FY'00. It is further recommending zero funding for DOE's nuclear fission, coal, and oil R&D programs and just $50 million for the nuclear fusion program. To find the Coalition detailed budget recommendations, see www.americangreen.org/homepage and click on the "FY2000 Budget" button on the navigation bar to the left. Let us know if you would like us to fax you a copy of the Coalition's news release.
ELECTRIC UTILITY RESTRUCTURING
Los Angeles/Green Power:
Business Wire (November 17) reports that a measure is before the Los Angeles City Council to allow customers of the city's Department of Water and Power to purchase a portion of their electricity from renewable sources. Based on the purchase of 20% of the power bill, the cost would be about $3 for each $50 of electricity. It is estimated that the cost would be offset by participation in special energy efficiency programs for green power customers such as free compact fluorescent lightbulbs, home energy efficiency analyses, green club discounts with participating retailers, and discounts on energy conserving appliances, products, and services. DWP General Manager S. David Freeman said, "Our vision for the long term is that through the program, DWP will be able to gradually shift sources away from fossil fuels towards a cleaner energy base." If the full City Council and the Mayor approve the program, the Green Power for Green LA program would be available in early 1999.
CLIMATE CHANGE
1.) CO2 Projections:
On November 17, the Energy Information Administration released the reference case forecasts of its "Annual Energy Outlook 1999" in which it projected that CO2 emissions from energy use in the U.S. would increase 33% over 1990 levels by 2010 and by 47% by 2020. They would reach 1,790 million metric tons (MMT) in 2010 and 1,975 MMT in 2020 compared with 1,346 MMT in 1990. The projections, which assume current laws and regulations, show that growing energy demand and a decline in nuclear electricity generation are met mostly by fossil fuels, with renewable energy consumption increasing at an average annual rate of only 0.8% through 2020. EIA also projects oil imports to continue to rise, with net oil imports providing 65% of U.S. consumption in 2020, up from 49% in 1997. Further information can be found at EIA's web site: https://www.eia.doe.gov/oiaf/aeo99/earlyrel.html.
2.) Europe/EV's/CO2:
The October 1998 issue of "EV News" reports that at the yearly Electric and Hybrid Vehicle Symposium (EVS-15) held in Brussels October 1-3, Switzerland outlined its plans to have 200,000 electric vehicles on Swiss roads by the year 2010. By substituting the electrics for 200,000 gasoline cars, Switzerland could meet 10% of its commitments under the Kyoto Protocol. The European Electric Road Vehicle Association, which hosted EVS-15, estimates that as of last year, there were 15,000 electric cars on the road in Europe compared with only 3,000 in America and a similar number in Asia. Let us know if you would like us to fax you a copy of the 4-page article.
3.) Kyoto/Developing Countries:
The "Washington Post" (November 15) reports that in the closing days of the climate conference in Buenos Aires, "Argentina and Kazakhstan announced they would voluntarily adopt restrictions on the growth of their emissions [and] more than a dozen other developing nations have expressed interest in taking on a variety of commitments for curbing pollution at home." Vice President Al Gore subsequently noted that he was "particularly pleased by the growing engagement of developing countries." However, Reuters (November 14) noted that poorer countries, led by China and India, have furiously argued that their first priority is feeding their populations and that they cannot afford to take measures that could slow their economic growth.
4.) Buenos Aires Media:
A 2-page editorial on the November 12 "Atlanta Constitution" stated: "It's important to note that our high rate of emissions is not necessary to sustain our comfortable Western lifestyle. Americans emit twice as much carbon dioxide per capita as Japan and Germany, and more than three times as much as France. Those numbers suggest that we could cut our emissions of CO2 significantly without any real impact on our lifestyle or economy, simply by becoming more efficient."
Similarly, the November 14 "Pittsburgh Post-Gazette" commented: "Despite the howls of opponents, the signing [of the Kyoto Protocol] was an important signal that the United States recognizes the seriousness of the problem and acknowledges that as the world's largest producer of greenhouse gases, it has a pivotal role to play in reaching a solution. It will not be easy and it will not be cheap, but the available strategies for reaching reduction targets are plentiful and include everything from improving energy efficiency and perfecting technologies to imposing taxes and planting trees."
The "Chicago Tribune" likewise editorialized: "Each year, American productivity per worker keeps rising, thanks to greater efficiencies and more advanced technologies. A similar push for more efficient and less polluting use of energy, particularly fossil fuels, is not only possible but in the national interest."
A 2-page November 17 Business Wire article cites a new report from the Renewable Energy Marketing Board, "How Emerging Green Markets Help Respond to Global Climate Change." It argues that California's renewable energy industry has been growing faster this year than it has in the past 10 years and will play a key role in fighting global climate change. The authors add that "we're in the perfect position to help the United States meet and even exceed, the emissions reductions set by the Kyoto Agreement."
A 2-page November 14 "Raleigh (NC) News & Observer" op-ed piece by Van Crandall argued that "nuclear energy is one of the most expensive ways to reduce carbon dioxide emissions. ... alternatively, every dollar invested in energy efficiency will reduce seven times more CO2 emissions than if spent on nuclear energy." It concludes with the observation that "abandoning fossil fuel technology for nuclear reactors is trading one form of devastating pollution for another." Let us know if you would like us to fax you copies of any of these articles.
MISCELLANEOUS
1.) Expanding Wind:
The Renewable Energy Policy Project has issued a new study, "Expanding Wind Power: Can Americans Afford it?" by Jamie Chapman. It evaluates the impacts of adding 10,000 MW of wind-generated capacity over ten years to the U.S.'s current <2,000 MW capacity. The added capacity would be equivalent to 0.7% of the nation's 1996 electricity consumption. It concludes that such a program would add only a few dollars per year to the electricity bill of a typical family -- in the case of those living in Texas, perhaps $0.75/month. Furthermore, it would generate $7 billion in direct economic activity from manufacturing wind turbines, constructing windfarms, and supplying parts and components over ten years. The study can be found at https://www.repp.org or call 202-293-2833.
2.) Energy Waste:
A new report, "Leading by Example: Improving Energy Productivity in Federal Government Facilities," has been released by the Alliance to Save Energy (ASE). It argues that taxpayers could save $1 billion annually and see a reduction of 7 million tons of CO2 emissions if the federal government adhered to the Energy Policy Act and executive orders that require agencies to reduce energy waste through improved energy productivity. While the federal government claims to have reduced energy use 14.2 percent per gross square foot between 1985-95, ASE's analysis indicates that energy use actually went up 2.7% per gross square foot when all government buildings and energy use are counted. The federal government, which still consumes about 32% more energy per square foot than the nation's building stock at large, spends $4.2 billion per year to power and fuel half a million buildings and facilities. For further info, see .
3.) Nuclear Waste:
At a November 18 news conference, Public Citizen, US PIRG, and 225 local, national, and international organizations released a letter and petition to DOE Secretary Bill Richardson demanding that DOE disqualify the Yucca Mountain site from further development as a possible high-level nuclear waste dump. The petition delineates evidence that Yucca Mountain does not meet the Site Suitability Guidelines for a permanent nuclear waste repository as established by DOE, under current law at the outset of the high-level waste program. Let us know if you would like us to fax you a 3-page news release on this from the Nuclear Information & Resource Service.
4.) Richardson/Nuclear Waste:
DOE Secretary Bill Richardson was the featured guest on November 15 on "McLaughlin's One-on-One" to discuss nuclear waste among other issues. He seemed to suggest that the Yucca Mountain site may be found unsuitable for the placement of high-level waste. He noted several times that if Yucca Mountain is not selected as a waste site, the United States has no other candidates under consideration as alternatives.
5.) Domenici/Nuclear:
In a November 13 speech, Senator Pete Domenici (R-NM) argued that "we cannot come close to the Administration's goals of reducing greenhouse gas emissions without nuclear power; in fact, nuclear power should be viewed as an environmentally- preferred electricity source." He went on to discuss the size of the cuts in greenhouse gas emissions that would be required if the U.S. ratified the Kyoto Protocol and noted that "I've been surprised that no environmental group has championed nuclear energy, despite its role in reducing our greenhouse gas emissions." He also added that "currently, 40% of our nuclear plant licenses expire before 2015. We should be seeking opportunities to keep those plants functioning safely and reliably. Instead, our failure to address high level waste or to reevaluate the regulatory climate created by the NRC is driving these plants toward early shutdown."
6.) Energy Goals:
A Sustainable Energy Coalition subcommittee has prepared an updated 4-page draft of principles and goals for a national energy policy. It provides targets for renewable energy and energy efficiency for the years 2010 and 2020 as well as calls for the total phase-out of nuclear power and a dramatic reduction in fossil fuel use by 2020. The draft also outlines principles for a national energy policy and offers a series of preliminary proposals that could be part of an ideal, comprehensive national sustainable energy bill. Let us know if you would like us to fax or e-mail the draft document to you for your review and/or comments.
7.) House Appropriators:
The new subcommittee chairs of the House Appropriations Committee for the 106th Congress include Reps. Ron Packard (R-CA) on Energy & Water (which handles renewables and nuclear power) and Ralph Regula (R-OH) on Interior (which handles energy efficiency and fossil fuels).
8.) Job Opening:
Persons interested in the position of Executive Director of the newly-formed Appliance Standards Awareness Project should send a cover letter and resume a.s.a.p. to the American Council for an Energy Efficient Economy (1001 Connecticut Avenue, N.W.; #801; Washington, D.C. 20036). The job, which offers a starting salary of $50,000 - $70,000 is to coordinate a grassroots campaign for stronger federal appliance and equipment efficiency standards. The position will be jointly overseen by ACEEE, the Alliance to Save Energy, and the Natural Resources Defense Council.
