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FEDERAL ENERGY BUDGET
Fiscal Year 2000 Budget Request:
We have received a report that the U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EE/RE) is getting an extra $60 million in the Administration's Fiscal Year 2000 (FY'00) budget request on top of the original Office of Management & Budget (OMB) passback. The additional funds are part of a $75 million add-on for climate technology programs. The breakdown is $15 million for grants (e.g., weatherization), $16 million for renewables energy, and $29 million for energy efficiency, with efficiency including $18 million for buildings, $10 million for industry, $5 million for transport,and $2 million for appliance standards. OMB picked the areas and the allocations based on DOE's request list. The Administration's FY'00 budget request is tentatively scheduled to be formally transmitted to the Congress on February 1.
ELECTRIC UTILITY RESTRUCTURING
1.) Restructuring/Prospects:
The December 21 "Electricity Daily" reports that Standard & Poor's (S&P) predicts a slow year for restructuring activities at the federal and state levels. S&P claims that "given the complicated nature of the electric restructuring issues and the politically charged environment in some states, politicians may continue to skirt this issue for as long as possible." S&P believes that other issues will supersede restructuring at the federal level and that the high turnover of legislators at the state level will impede debate. S&P also projects that restructuring will not be addressed by Congress until as late as 2003 because of the presidential election in the year 2000.
2.) Green Power Survey:
The electronic newsletter "Deregulation Watch Public Forum," published by Energy Central (circulation: 10,000 electric power professionals), is inviting comments on the question: "Should the Federal Government Mandate Green Power Quotas for the States' Restructuring Legislation? Why or Why Not?" Selected responses will be published in the Deregulation Watch Newsletter and distributed directly in the Public Forum e-mail. If you are interested in participating, send your response to dereg-forum@energycentral.com and provide your name, title, company, city, state, and e-mail address. The response deadline is January 12 - 5:00 p.m. MST.
3.) Nuclear Industry/Restructuring Goals:
A 3-page news release issued by the Nuclear Energy Institute (NEI) on December 23 states that the nuclear industry plans to seek "a series of federal statutory and regulatory reforms necessitated by the competitive marketplace that nuclear power plant owners and operators are entering." The industry to weaken NRC's oversight of antitrust issues in plant license transfers as well as lift restrictions on foreign ownership of U.S. reactors. It also wants to reduce the user fees paid by nuclear licensees to the NRC as well as implement a non-bypassable charge to electricity for consumers to pay a portion of decommissioning costs. NEI also plans to work "for enactment of comprehensive legislation to reform the federal government's nuclear waste management program and to break an impasse between the EPA and the NRC over radiation health standards." Let us know if you would like us to fax you a copy of the release.
4.) North Carolina Renewables Survey:
The North Carolina Solar Energy Association recently sent us a 3-page November 17 news release about a new Carolina Poll of 589 adults conducted by the UNC School of Journalism on renewables and restructuring. It found that 65% of North Carolinians favor requiring electricity suppliers to disclose on the customer's bill information on the fuels (i.e., types and emissions) used to generate their electricity; 58% support requiring all sellers of electricity in the state to generate a portion of their electricity from renewable energy sources; 57% support adding an extra charge of at least 1% to each customer's utility bill to help pay for renewable energy and energy efficiency programs; 51% are willing to pay $1 or more each month to enable them to purchase their electricity from renewable sources. The poll results are available from the Institute for Research in Social Science, Manning Hall, CB#3355, University of North Carolina, Chapel Hill, NC 27599-3355. The release can be found at www.mindspring.com/~ncsea.
5.) EIA/Utility Data:
The Project for a Sustainable FERC (e-mail: tblack@igc.apc.org) reports that OMB has approved the Energy Information Administration's (EIA) November 1998 data collection and disclosure proposals. The new electric power data forms, with expanded NUG data collection and expanded disclosure requirements of key data elements (as well as minimal new disclosure restrictions), will be mailed to utilities and other generators early this month.
6.) Energy & Power Subcommittee:
We have received a two-page memo on the House Commerce Committee (which will handle any restructuring legislation in the House) that provides a description of the responsibilities of each of its five subcommittees as well as the names of the Republican members of the Subcommittees on Energy & Power and Oversight & Investigations (the Democrats have yet to name subcommittee members). Let us know if you would like us to fax you a copy.
CLIMATE CHANGE
1.) Climate Change/World Bank:
According to the Sustainable Energy and Economy Network (SEEN), the World Bank has spent 25 times as much money for fossil-fuel energy projects as it has for renewables since the 1992 Earth Summit. The fossil fuel projects the World Bank has financed will over the next 20 to 50 years add CO2 emissions to the Earth's atmosphere equivalent to 1.3 times the total amount emitted by all the world's countries in 1995. Further details are provided in SEEN's November 1998 study, "The World Bank and the G-7: Still Changing the Earth's Climate for Business 1997-98" which can be found at www.seen.org. The World Bank, in turn, has drafted "A New Environmental Strategy for the Energy Sector" on which it is soliciting public comments through February 1, 1999; see the World Bank's Global Climate Change Website at www-esd.worldbank.org/cc. Comments can be faxed to 202- 522-3256 or e-mailed to climatechange@worldbank.org.
2.) NASA/Climate Change:
The Enviro News Network (January 7) reports that the National Aeronautics and Space Administration (NASA) stated that global warming is real. "There should no longer be an issue about whether global warming is occurring, but what is the rate of warming, what is its practical significance, and what should be done about it," said Dr. James Hansen, a scientists with the NASA Goddard Institute for Space Studies. The warmth in 1998 -- the warmest meteorological year on record -- was associated in part with a strong El Nino phenonenum. Because the pacific Ocean temperature has returned to a more normal level, it is anticipated that the global temperature in 1999 will be less warm than 1998 but will remain well above the long-term mean for the period of climatology, 1951- 1980. Global warming since the mid-1970's is greater than any previous of equal length in the time of instrumental data. Since 1975, the five-year mean temperature has increased by about 1 degree F.
3.) Climate Survey:
At the Business Roundtable's homepage https://www.brtable.org, you will find a survey, that is now underway of people with access to the web, of their views on climate change. The question posed reads: "A debate is currently raging on whether the earth's atmosphere is warming and the level to which human actions play a part. Would you oppose or support the U.S. signing a global warming treaty which curtails green house gas emissions when signing such a treaty would cause an increase in the cost of gasoline, electricity, home heating oil, and developing countries such as China, Indian, and Brazil would be exempt." As of January 9, 59% of respondents expressed support while 41% were opposed. You may want to register your views.
MISCELLANEOUS
1.) Energy-Efficient Homes:
A new study by the ICF Kaiser Consulting Group for the US EPA's Energy Star Homes Program found that homebuyers are willing to pay substantially more for energy-efficient homes. Energy Star homes use at least 30% less energy than a Model Energy Code home while maintaining or improving indoor air quality and increasing comfort in the home. EPA estimates that the cost to upgrade a new home to Energy Star levels can range from $2,000 to $4,000 and that a typical Energy Star home reduces utility bills by $420 per year. That level of savings can add about $8,400 to the home's market value. The study concluded that people are willing to fully pay for the monthly fuel savings of energy efficient homes with higher monthly mortgage payments and ultimately recover the market value of their energy efficiency investments when they sell their homes. The full text of the study can be found at www.icfkaiser.com/consulting/docs/econcomm/homeener.pdf. Let us know if you would like us to fax you a copy of the 2-page news release.
2.) Photovoltaics Market Future:
The current issue of "Photovoltaic Insider's Report" says that a new study by researchers at Australian National University projects the international photovoltaic industry to grow at a rate of around 20% per year over the next 15 years with potential annual module shipments of some 1,600 MW/p by the year 2010. PV module shipments have grown from roughly 4 MWp in 1980 to 122 MWp in 1997, a growth rate of 20% per year, and this growth has lead to an installed based of PV electricity generation capacity of greater than 600 MWp worldwide.
3.) 1998 Solar Highlights:
The Solar Energy Industries Association has issued a 9-page press release listing the "solar energy highlights of 1998" which notes that the solar energy industry has had its fifth straight year of double-digit growth above 20%. It adds that the "late 1990's represent the largest sustained growth spurt for solar in history and that 1999 will represent not only sustainable double-digit growth internationally but double-digit growth in the U.S. domestic market. Annual sales for photovoltaics, solar thermal electric, solar water heating, and solar pool heating exceeded $1 billion." Let us know if you would like us to fax you a copy.
4.) New Auto Trade Group:
The January 6 "Wall Street Journal" reports that a new group, the Alliance of Automobile Manufacturers, is being created to replace the now-defunct American Automobile Manufacturers Association (AAMA). The new group will include Ford, GM, Daimler-Chrysler, Toyota, Nissan, and Volkswagen; BMW, Volvo, and Mazda will be "associate" members. Honda has declined to join. The new group will operate with less than half the budget of the old AAMA and is expected to focus on environmental and safety issues.
5.) Hastert's Campaign Cash:
The Center for Responsive Politics reports that House Speaker Rep. Dennis Hastert (R-IL) raised almost 42 times as much as his opponent for his 1998 re- election bid -- taking in just over $1 million and spending almost $945,000. That was about 50% higher than the average of $626,000 spent by House winners in the 1998 elections. Hastert's contribution profile largely reflects the industries that lobby the House Commerce Committee (i.e., health care, telecommunications, and electric) and includes $48,099 from electric utilities. Further details can be found at www.crp.org.
6.) Nuclear Waste Bill:
Public Citizen issued a 1-page release denouncing the introduction on January 7 of the Nuclear Waste Policy Act of 1999 by Reps. Fred Upton (R-MI) and Edolphus Towns (D-NY). The bill, H.R.45, would establish a temporary storage site for thousands of tons of high-level waste now stored at nuclear plants cross the country, sending the waste to Yucca Mountain, Nevada, even before the site is formally designated as a repository for long-term storage. Let us know if you would like us to fax you a copy of the release
7.) House/Senate Caucuses:
Senator Fred Thompson (R-TN) has become the 16th member of the Senate Renewables and Energy Efficiency Caucus (7 R's, 9 D's). We have a 1-page list of the members of the Senate Caucus and a 3-page list of the 125 members of the House Renewable Energy Caucus complete with mailing addresses, phone & fax numbers, and staff contacts. Let us know if you would like us to fax you a copy of either list.
The articles provided below were initially compiled by the SUN DAY Campaign (ph. 301-270-2258; fax: 301-891-2866) for the 36 member organizations of the Sustainable Energy Coalition (list available upon request).
Feel free to distribute this newsletter to others. In addition, please let us know of other U.S. organizations, businesses, or government agencies that would like to be added to the e-mail list for this publication. This newsletter is presently sent to over 550 recipients nationwide.
FEDERAL ENERGY BUDGET
FY'99 Energy Efficiency/Renewable Energy Budget:
We received a 2-page letter from U.S. Department of Energy (DOE) Assistant Secretary Dan Reicher on December 21 which provides a review of the end results of the FY'99 appropriations process and notes some highlights such as the Million Solar Roofs program, additional funding for biofuels and fuel cells, as well as the industrial and weatherization programs. The letter was accompanied by a 2-page set of charts that provide the final FY'99 appropriations for each of DOE's renewable energy and energy efficiency subaccounts. Let us know if you would like us to fax you a copy of the 4-page packet.
ELECTRIC UTILITY RESTRUCTURING
Massachusetts/Restructuring:
Reuters (December 22) reports that a just-released analysis from the Massachusetts Office of Campaign and Political Finance says that utilities raised a record $8.5 million to ensure that Massachusetts voters reject a ballot measure this past November that would have undone the state's utility deregulation legislation. In contrast, opponents of the deregulation law raised only $329,379.
CLIMATE CHANGE
1.) Climate/Congressional Bipartisanship:
A December 28 "Los Angeles Times" editorial notes that global warming skeptic Senator Connie Mack (R-FL) has become a co-sponsor of Senator John Chafee's early reductions bill. The bill would enable the U.S. to implement a key provision of the Kyoto agreement by assuring companies that if they get an early start on reducing emissions they won't be penalized later with demands for even more drastic reductions. It would authorize the president to enter into binding agreements with U.S. companies that assure them of receiving credit in any future emission reductions programs. The editorial further notes that "opponents [of the Kyoto Protocol] thought they were speaking for U.S. businesses which feared that the expense of investing in energy-efficiency technologies would undermine their international competitiveness, but in recent months more than dozen Fortune 500 companies have declared that energy- saving technologies are actually an economic boon, not an albatross." Let us know if you would like us to fax you a copy of the 2-page editorial or to e-mail you a copy of the bill itself.
2.) Illinois/CO2-Clarification:
The Environmental Law & Policy Center wrote to clarify a news item in one of last week's "Updates." ELPC reports that "Governor Edgar's amendatory veto of the Illinois 'Kyoto bill' significantly limits negative impacts from the new law. At the urging of environmentalists, he added language that preserves state EPA and Pollution Control Board authority to propose, adopt, or enforce rules 'to comply with the Clean Air Act or protect air quality.' That means that regulators can continue to require reduced emissions of the greenhouse gases (e.g., oxides of nitrogen) that are regulated under the Clean Air Act or other otherwise diminish air quality."
3.) Climate/NASA's Web Site:
For information on 1998 global temperatures as well as on historical trends, check out NASA's Goddard Institute for Space Studies site at www.giss.nasa.gov/research/observe/surftemp. Two items of particular interest are: (1) maps of the U.S. using color to indicate areas of increased/decreased temperature in 1998, broken down into three-month periods; and (2) the "Common Sense Climate Index." Click on the latter which will bring up a menu with further options. The first is "World and US Maps." This has historical information from temperature stations around the world in figure formats. For example, you can see temperature trends from Boston dating back to 1743.
MISCELLANEOUS
1.) New Wind Record:
According to preliminary estimates by the Worldwatch Institute, the world added 2,100 MW of new wind energy generating capacity in 1998, a new all- time record, and 35% more than was added in 1997. The new wind turbines added in 1998 have pushed overall wind generating capacity worldwide to 9,600 MW at the end of this year -- double the capacity in place three years earlier. These wind turbines will generate roughly 21 billion kilowatt-hours of electricity in 1999 -- enough for 3.5 million suburban homes. Wind power is now the world's fastest growing energy source. The 1998 boom in wind energy was led by Germany with 800 MW of new capacity followed by Spain which added 395 MW and then by the United States and Denmark with 235 MW of new capacity each. For details, see www.worldwatch.org; follow the "alerts" link.
2.) Book Review:
A new book, "Earth Odyssey: Around the World in Search of Our Environmental Future," authored by Mark Hertsgaard is slated to be released in January 1999 . The well-document, 372-page book reflects the author's observations during a six-year odyssey through nineteen countries (e.g., China, Sudan, France, the Czech Republic) and draws on interviews with such prominent people as Jacques Cousteau, Al Gore, and Vaclav Havel. Hertsgaard offers his insights into humanity's growing addiction to the automobile, the spread of nuclear technology, the risks posed by population growth and climate change, and the tension between unfettered capitalism and the health of the biosphere. The hard-cover book is $26.00 from Broadway Books, c/o Random House, 1540 Broadway, New York, N.Y. 10036.
3.) Honda/Hybrids:
The December 22 "Wall Street Journal" and "Los Angeles Times" report that Honda Motor Company will sell a super-efficient car powered by gasoline and electricity in the U.S. in late 1999, becoming the first company to announce plans for such early U.S. sale of a hybrid. The two-seat coupe, code-named V V, will use a one-litre, three-cylinder engine, supplemented by an electric motor for acceleration. It will be able to achieve 70 mpg and meet the most stringent emissions standards. Honda plans to distribute the car nationwide, breaking with the tradition of selling vehicles with alternative power sources only in limited areas, primarily California. Let us know if you would like us to fax you a copy of either 2-page article.
4.) Rep. Dennis Hastert:
The December 21 issue of "Ethanol Report" notes that House of Representatives Speaker-designate J. Dennis Hastert (R-IL) "is a strong proponent of ethanol and was an integral player this summer in extending the federal ethanol tax incentive through 2007." However, the League of Conservation Voters' October 1998 "National Environmental Scorecard" gives Hastert a rating of only 17 for the 105th Congress and a score of only 8 for the 104th Congress. It notes that in mid-1998, Hastert opposed a measure to ease provisions in the anti-Kyoto Knollenberg amendment to the EPA appropriations bill in mid-1998. However, it also notes that he voted in support of the Skaggs- Fox amendment to increase funding for DOE's energy efficiency programs.
FEDERAL ENERGY BUDGET
House BudgetCommittee Assignments:
Democratic appointees to the House Budget Committee include Reps. Markey, Kleczka, Clement, Moran, Hooley, Lucas, Holt, Hoeffel, and Baldwin. In addition, Reps. Costello, Woolsey, Larson, M. Udall, and Wu are joining the Science Committee.
ELECTRIC UTILITY RESTRUCTURING
1.) New Mexico Net Metering:
In a 2-page December 17 news release, the Southwest Energy Institute reports that New Mexico has become the first state to allow net-metered interconnection of any size fuel cells and gas turbine generators. Such "microturbines" generate electricity more cheaply and cleanly than aging coal plants and produce about 40% less CO2. Although 22 states (including New Mexico) already have net metering laws, New Mexico's rule is unique in that it allows interconnection without placing any restrictions on size. The rule by the state's Public Utility Commission also prohibits a utility from imposing interconnection requirements beyond the accepted safety standards of Underwriters Laboratories, the Institute of Electrical and Electronic Engineers, and the National Electrical Code. New Mexico's largest utility, Public Service Company of New Mexico, has filed oppo- sition to the rule. The full text of the rule (NMPUC Case 2847) is posted at www.puc.state.nm.us/finlord.htm. Let us know if you want us to fax you a copy of the release.
2.) More Wind Comes On-Line:
The December 21 "Wind Energy Weekly" reports that the state of Colorado's first wind farm began generating electricity for green power consumers last week, as Phase I (i.e., 5 MW) of the Ponnequin wind facility began producing energy for Public Service Company of Colorado's (PSCo) Windsource program. When Phase II construction of the project is complete next spring, more than 15.7 MW of wind capacity will be provided by 21 NEG Micon 750-kW turbines. Residential customers can buy wind energy for their homes in "blocks" on a monthly basis from PSCo and from Holy Cross Energy of Glenwood Springs, CO, a PSCo wholesale customer. Not everyone already enrolled is yet receiving the benefits of Ponnequin's greenpower. Some 2,000 of 9,000 PSCo customers who signed up for the Windsource program are receiving the electricity. A slightly larger proportion of Holy Cross' green power subscribers -- about 30% of the total of 700 registered--are receiving Ponnequin power.
CLIMATE CHANGE
1.)1998 Temperature Record:
According to the National Aeronautics and Space Administration's Goddard Institute for Space Studies, global surface temperatures in the 1998 meteorological year (December 1, 1997 - December 1, 1998) set a new record for the period since measurements have been recorded (1860). The global temperature exceeds that of the previous record calendar year, 1995, by such a wide margin that the 1998 calendar year also is certain to set a new record. The rapid global warming since the mid-1970s exceeds that of any previous period of equal length during the time of instrument- measured data. A NASA news release adds that "El Nino, by itself, cannot account for either the observed long-term global warming trend or the extreme warmth of 1998." Additional info can be found at www.giss.nasa.gov. Incidentally, Ozone Action reports that "the weird weather of 1998 is listed as ABCNews.com's 4th top news story of the year."
2.) Illinois/Climate Change:
A December 2 Copley News Service report says that the Illinois Senate has accepted Governor Jim Edgar's recommended changes to legislation that would prohibit the state's Environmental Protection Agency and Pollution Control board from adopting new rules meant to combat global warming. The Senate's 56-0 vote means the measure now becomes law. Written by the Illinois coal industry, the measure is meant to prevent state environmental officials from unilaterally instituting programs that further the goals of the Kyoto Protocol although it won't limit state or private participation in ongoing, voluntary initiatives to reduce emissions of greenhouse gases.
MISCELLANEOUS
1.) Bleak Future for Hydropower:
The National Hydropower Association issued a paper on December 17 noting that "the ability for the U.S. to increase its generation of electricity from clean and renewable hydropower is greatly impaired by rules that govern project licensing." NHA estimates that 20,915 MW of additional capacity could be developed by the year 2020, but only if changes are made to the hydropower licensing process. The figure reflects a screening of potential sites by DOE "for environmental, legal, and institutional constraints ... including threatened or endangered species, national designations, cultural values, and other non- power issues." The proposed increase could be achieved without building a single new dam or impoundment because 97% of the nation's 75,000 existing dams are presently without hydropower capabilities and it would take developing only a small fraction of those existing dams to meet NHA's forecast. Let us know if you would like us to fax you a 4-page news release and summary.
2.) Grants - Environmental Tax Shifting:
We received a 3-page notice from the W. Alton Jones Foundation announcing a request for proposals for amounts up to $40,000 "to promote state-level environmental tax shifting." Let us know if you would like us to fax you a copy.
3.) Electric Vehicles-GM/Ford:
On December 3, Ford Motor Company announced that it will offer a 1999 Ford Ranger Electric Vehicle equipped with nickel metal hydride (NiMH) batteries to customers in California. The car will get real world driving mileage of 65-85 miles on a single charge. California customers will pay $450 monthly to lease a NiMH version of the Ranger EV, about $100 more than the lead-acid version. The 1999 lead-acid Ford Ran- ger EV will be offered throughout the rest of North America for a lease price of $349/month -- a $100 reduction from last year. Meanwhile, General Motors announced that its 1999 model year electric vehicle, EV1, will feature major technical improvements including advanced NiMH batteries, improved performance lead-acid batteries, and a Generation II electric drive system. The EV1 will be able to travel 75-140 "real world" miles on a single charge and the NiMH version will sell in California for $43,995 (or lease for $499/month).
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