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FEDERAL ENERGY BUDGET & TAXES
New Public Opinion Survey: On April 21, the Sustainable Energy Coalition released the findings of a new national public opinion survey "America Speaks Out on Energy: A Survey of Federal Energy Funding Priorities." It found overwhelming, bi-partisan, and consistent support for federal funding of renewable energy and energy-efficient technologies. It also found that voters support increasing funding for these technologies now to reduce the emission of greenhouse gases whether or not the U.S. Senate ratifies the proposed global climate change treaty negotiated in Kyoto this past December. Finally, it found that little support exists for additional federal funding for fossil fuels such as coal and oil or for nuclear power technologies.
More specifically, for the fourth year in a row, a majority of all voters (60%), and nearly three-quarters (72%) of those expressing a preference, would give the highest priority to funding the U.S. Department of Energy's (DOE) renewable energy and energy efficiency research and development (R&D) programs. On the other hand, nearly a third (32%) of respondents selected nuclear power as the first R&D program that should be subject to budget cuts, followed by fossil fuels (22%). In fact, this survey found even higher levels of support for sustainable energy programs and opposition to nuclear power and fossil fuels than were measured in the Coalition's earlier polls. These findings are consistent among Republicans, Democrats, and Independents.
Furthermore, among voters offering an opinion on the issue, a clear majority (57%) favors increasing funding for renewable energy and energy efficiency programs now to curb greenhouse gas emissions rather than wait until such time as the U.S. Senate ratifies the proposed Kyoto treaty. This sentiment is particularly strong among Independents (61%) and Democrats (60%) while Republicans are evenly divided. The Clinton Administration has requested a 30% increase in funding for DOE's sustainable energy programs in FY'99 but the Republican congressional leadership is opposing any increases unless and until the Senate ratifies the Kyoto treaty.
The survey, conducted by International Communications Research of Media, PA from April 8-14, 1998 among a sample of 1,000+ registered voters, has a margin of error of +/-3.0%.
Let us know if you would like us to fax you a copy of the 4-page Executive Summary. The complete 20-page survey with charts, demographic data, and methodology information is available for $5/copy (pre-paid).
UTILITY RESTRUCTURING
1.) Enron/Restructuring: Three weeks after California officially opened its electricity market to competition, Enron Corp., the biggest and most aggressive outsider looking to sell power in the state, has given up trying to win residential customers. Enron has so far signed up only 30,000 residential customers in the state -- far fewer than it had expected from its market research -- notwithstanding a multi-million dollar investment to woo residential customers. Enron will continue to pursue business customers in the state and elsewhere; so far, it has won close to $2 billion in contracts nationwide, with the bulk of them in California. Enron is reportedly irked by the fee being charged to California consumers to help pay off the utilities' nuclear and other stranded costs. Enron has also decided, for the time being, against pursuing residential customers in Massachusetts and Rhode Island and has pulled out of some pilot programs elsewhere. Chris Moser (SECC) notes that "Enron's withdrawal from California proves that it you provide incumbent utilities with ratepayer-funded bailouts to the tune of $28 billion, you eliminate the potential for competition in the retail residential market." Wenonah Hauter (Public Citizen) adds that "we have known from the beginning of this debate that large industrial customers are the real prize in the brave new world of utility deregulation; Enron can make money selling to large customers, which will cause cost shifting."
2.) Nuclear/Deregulation: Public Citizen (PC) has released a new study "Questioning the Authority" which finds that 42 nuclear reactors (owned by 28 utilities in 21 states) are more expensive to operate and maintain than the cost of replacement power in their own regions. PC's Wenonah Hauter notes that "if deregulation is really about competition, at least 42 nuclear reactors should be shut down as the industry is restructured." For details, see www.citizen.org/cmep follow the "what's new" link.
CLIMATE CHANGE
1.) Energy Use/CO2 Increasing: Worldwide energy consumption is expected to grow 75% between 1995 and 2020 according to the latest "International Energy Outlook 1998" released April 23 by the Energy Information Administration. By 2020, energy use in developing Asia (including China and India, but excluding Japan, Australia, and New Zealand), surpasses that of all North America by more than 36%; in contrast, total energy use in developing Asia is presently 33% below that of North America. If world energy consumption reaches the levels projected in the reference case, carbon emissions will exceed 1990 levels by 44% in 2010 and by 81% in 2020. By 2010, carbon emissions in the developing world arenearly equal to those in the industrialized world; and by 2020 emissions in the developing world would exceed those of the industrialized word by 27%. Even if the Annex I countries that are parties to the Kyoto Protocol were able to achieve the proposed target reductions, worldwide emissions levels would continue to rise by 32% between 1990 and 2010. The full report can be found at https://www.eia.doe/oiaf/ieo98/home.html.
2.) Eleven-Lab Study: The U.S. Department of Energy released its so-called eleven-laboratories study, "Technology Opportunities to Reduce U.S. Greenhouse Gas Emissions" on April 22. It concludes that a wide-ranging portfolio of 47 different energy technologies is available to reduce U.S. greenhouse gas emissions by hundreds of millions of tons annually. Options include such near-term practical technologies as electric hybrid vehicles, high-efficiency lighting, super-insulating windows, and passive solar heating and cooling of buildings. They also include mid-term to longer-term technologies that need further development, such as fuel cells for transportation, microturbines, broad use of biomass fuels, and hydrogen-fueled energy systems. The full study can be found at www.ornl.gov/climate change.
3.) Albright/Climate Change: In an April 21 address, Secretary of State Madeleine Albright commented: "I have been on earth now for 60 years, and I have never witnesses weather of the kind I have seen, read about and heard about these past few years. It is true that we can't point to El Nino, or to any individual storm or drought, and say global warming made it happen. But we can point to the pattern and say it is consistent with the trends that scientists believe global warming could create." She announced that she would appoint a special State Department coordinator for global climate change to oversee the diplomatic push to bring developing nations under the treaty's emissions-reduction umbrella.
4.) Climate Hearing: On April 23, the House Committee on Government Reform and Oversight conducted a hearing entitled "Kyoto Protocol: Is the Clinton-Gore Administration Selling Out Americans?" Subcommittee Chairman David McIntosh (R-IN) warned that the Kyoto treaty could produce "massive layoffs", an increase of $0.70/gallon for gasoline, an increase in prices for consumer goods of "more than 50%," and a loss of "as much as $3.3 trillion in GDP between 2001 and 2020." DOE Assistant Secretary Dan Reicher testified that "the United States can hold down the costs of meeting climate change goals by developing clean energy technologies [and] it is technology that will provide developing nations with the ability to grow their economies and at the same time limit their greenhouse gas emissions and reduce the traditional air pollutants choking many of their cities." Rep. George Miller (D-CA) noted that "the American people overwhelmingly support actions to curb global warming" and urged support for energy efficiency initiatives to address the problem adding that "numerous studies suggest that a substantial portion of the reductions necessary to meet the Kyoto protocol can be achieved through energy efficiency measures." Let us know if you would like us to fax you a copy of 13 pages of materials from the hearing.
5.) Democratic Environmental Policy: The Senate Democrats have issued "A Democratic Sourcebook: Environmental Policy Earth Day Update" which notes that "climate change represents another challenge that we must face. Seventy-four percent of Americans agree that this is a serious threat. The Administration recently negotiated a landmark agreement at Kyoto, which represents an important if not imperfect first step in addressing this issue." It further described the Administration's Climate Change Technology Initiative: "A requested $6.3 billion over five years would go toward reduced greenhouse gas emissions -- $3.6 billion for tax incentives and $2.7 billion for increased research spending. The tax incentives seek increased use of more efficient technologies in buildings, vehicles, and power generation. Proposed spending on research and development would focus on increasing the number of fuel efficient automobiles and trucks, energy-saving technologies for commercial buildings and homes, energy-efficient industrial processes, and renewable energy sources such as biomass, wind, photovoltaics, and fuel cells." Let us know if you would like us to fax you a copy of the 9-page document.
6.) Shell/CO2: On April 21, Dow-Jones and Bloomberg News reported that Shell Oil Company, Royal Dutch Shell's U.S. unit, had withdrawn from the Global Climate Coalition (GCC) because the latter's opposition to ratifying the Kyoto protocol was in conflict with Shell's commitment to help reduce CO2 emissions. The decision underscores increasingly wide differences between European oil companies led by Shell and those in the US. led by Exxon Corp. over how to approach the agreement. Shell supports the agreement and "prudent precautionary measures" to combat climate changes while Exxon and the GCC are vigorously opposed.
MISCELLANEOUS
1.) DOE Secretary Search: In a letter delivered to President Clinton on April 23, 18 member groups of the Sustainable Energy Coalition outlined the "qualities that should be considered when evaluating candidates for the position of Secretary of the U.S. Department of Energy (DOE)." The letter urged that any "candidate for DOE Secretary have a strong background in energy policy at least equal to that in military or weapons issues [and] have extensive familiarity with energy efficiency and renewable energy in particular." In addition, the next Secretary should be "committed to continuing the policy of openness initiated by Secretary O'Leary and continued by Secretary Pena [and] be a person who has demonstrated a commitment to optimize public access to decision making." Finally, the next DOE Secretary should "be a person with strong organizational and management skills." Let us know if you would like us to fax you a copy of the 2-page letter.
Persons rumored to be under consideration for the post include DOE Deputy Secretary Elizabeth Moler, United Nations Ambassador Bill Richardson, retiring congressman David Skaggs (D-CO), and former DOE official John Deutch.
2.) Uranium Enrichment Victory: The Nuclear Information & Resource Service (202-328-0002) reports that Louisiana Energy Services formally withdrew its application to build a uranium enrichment plant in northern Louisiana, near the low-income community of Homer. Beyond the lack of need for the facility, opponents have criticized the proposed plant on environmental justice grounds. The victory marks the culmination of a nine-year campaign to kill the plant.
1.) Green Groups/Budget: On March 19, 13 of the nation's leading environmental organizations sent a letter to members of Congress urging "full funding of the Administration's FY'99 budget request for DOE's and EPA's energy efficiency and renewable energy programs as well as the Administration's package of proposed tax incentives to stimulate expanded use of these technologies." Let us know if you would like us to fax you a copy of the 2-page letter.
2.) Renewables/Budget: Due to election-year pressure to increase funding for water projects, staff for the House Energy & Water Appropriations Subcommittee (which oversees renewable energy appropriations) are saying not to expect any increase in renewable energy funding over the FY'98 figure of $300 million; the White House has requested $389 million for FY'99.
ELECTRIC UTILITY RESTRUCTURING
1.) Largent/Restructuring: Representatives Steve Largent (R-OK) and Bill Paxon (R-NY) have been circulating a "discussion draft" of their utility restructuring bill which some say is supported by House Commerce Committee Chairman Thomas Bliley (R-VA). The bill would repeal PURPA and PUHCA and include a "date certain" of Jan. 1, 2001 but not include a Renewable Portfolio Standard or a Systems Benefits Charge. The latter prompted the Union of Concerned Scientists to issue a 1-page news release criticizing the bill. A 2-page article in the April 13 issue of Inside Energy provides additional information on the bill. Let us know if you would like to see a copy of either document.
2.) PUHCA Repeal: Apparently sensing that he does not have the votes to override an expected filibuster, Senate Majority Leader Trent Lott (R-MS) failed to "file a motion for cloture" to facilitate bringing S.621 (that would repeal the Public Utility Holding Company Act) before the full Senate when it reconvenes on April 20. Reportedly, S.621 is not on the Senate legislative calendar for either April or May increasing the likelihood that it will not be voted on anytime during this congressional session.
2.) MA Restructuring Lawsuit: The Boston Business Journal (April 12 ??) reports that a lawyer, Walter McLaughlin, filed a class-action suit last month asking the Massachusetts Supreme Judicial Court to throw out a charge that the state's utilities are levying on their customers to pay for energy conservation and renewable energy programs. The charge, a part of the state's electric utility restructuring plan, is expected to raise $640 million over the next five years, including $137 million this year. Let us know if you would like us to fax you a copy of the 4-page article.
3.) Connecticut/Restructuring: The Connecticut legislature has approved a utility restructuring plan that requires 5.5% of the state's power to come from solar, wind, sustainable biomass, landfill gas, and fuel cells and an additional 7% from hydro, other biomass, and trash-to-energy by 2009. It also creates funds to support renewable energy and energy efficiency programs by imposing charges of 0.5 mill/kWh (increased to 1 mill/kWh in 2004) and 3 mills/kWh respectively. It also includes provisions for net metering and disclosure of fuel mix and emissions. If at least two other Northeastern states adopt similar provisions, out-of-state power generators will have to meet the same air emission standards as in-state producers; however, the bill does not require older fossil fuel plants to conform to Clean Air Act standards applicable to newer plants. No word yet on provisions affecting stranded cost recovery. Let us know if you would like us to fax you further information.
4.) Vermont/Net Metering: Vermont's legislature has approved a net metering bill targeted at photovoltaics, wind, fuel cells running off a renewable fuel, or a farm system (up to 100kW) generating electricity from anaerobic digestion. Utilities must provide intertie on first-come, first-served bases until the cumulative generating capacity of net metering systems equals 1.0% of the utility's peak demand during 1996. The text of the measure can be found at https://www.leg.state.vt.us/docs/1998/bills/house/H-605.HTM.
CLIMATE CHANGE
1.) CO2 Impacts: An article in the April 8 Washington Post warns that rising levels of greenhouse gases could threaten one out of every eight known plant species on Earth with extinction. In the United States, about 29% of 16,000 plant species are at risk, according to a 20-year study conducted by 16 organizations including the Smithsonian Institution. Widespread extinctions might affect medical science inasmuch as one-fourth of all prescription drugs are taken directly from plants or are chemically modified versions of plant substances. A second article that appeared April 9 adds that greenhouse gas emissions could lead to further depletion of the Earth's protective ozone layer. A new NASA analysis published in the current issue of Nature warns that greenhouse gases could produce an Arctic "ozone hole" equivalent to the one already appearing around the south pole. Let us know if you would like to see a copy of either article.
2.) Coal Use Up: Ralph Cavanagh (NRDC) says that new estimated 1997 data from the National Mining Association suggests that total domestic U.S. coal consumption increased 3.2% in 1997 and is projected to increase another 1.4% in 1998.
MISCELLANEOUS
1.) Performance Contracting: The U.S. Department of Energy's Energy Fitness Program provides training workshops on performance contracting. If you are interested in hosting an Energy Fitness Program Workshop in your area or want further information, contact Julia Kelley (423-576-6995); j4u@ornl.gov; https://www.ornl.gov/EFP.
2.) Power Smarts: The Alliance to Save Energy is about to release a new 24-page booklet, "Power$marts: Easy Tips to Save Money and the Planet." To get a review copy and bulk-order form, e-mail Rozanne Weissman at the Alliance: rweissman@ase.org or call 202-857-0666; be sure to include your name, organization, and mailing address.
3.) NAESCO Conference: The National Association of Energy Service Companies is hosting a 2 1/2-day conference May 20-22 in San Diego, CA with the theme "What Do Customers Want" to discuss technological developments and options to achieve energy and dollar savings. For details, contact Mary Lee Berger-Hughes (202-822-0954); https://www.naesco.org.
1.) R&D Down: During a panel discussion before the House Science Committee's Energy & Environment Sub-committee on March 30, the General Accounting Office testified that energy R&D funding by industry is down one-third as utilities cut costs to prepare for competitive electricity markets. Federal energy R&D funding is also down by 20%. However, Kurt Yeager (President, Electric Power Research Institute) and David Rohy (Vice-Chairman, California Energy Commission) predicted that utility deregulation will eventually lead to an increase in R&D investment. Rohy noted that "R&D spending is changing from traditional fossil-fuel research to investigations of technologies relating to climate change, distributed generation, renewable energy, and electric grid reliability."
2.) Senate/Renewables: Forty-two members of the U.S. Senate signed a letter to Appropriations Committee Chairman Pete Domenici (R-NM) expressing support for increased funding for renewable energy technologies in FY'99. Let us know if you would like us to fax you a copy.
3.) Senate Caucus: A "Dear Colleague" letter is expected to be circulated among the members of the Senate after they return from spring recess inviting them to join a new Senate Renewable Energy & Energy Efficiency Caucus. The letter is co-signed by Senators Wayne Allard (R-CO), Jim Jeffords (R-VT), Jeff Bingaman (D-NM), and Robert Kerrey (D-NE).
4.) Tax Letter: On April 8, the Sustainable Energy Coalition sent a letter to the White House urging it to send its climate change tax package to Congress immediately after the spring congressional recess "if it is to have any chance of being seriously considered during the current congressional session." Noting the Administration's failure to address CO2 emissions in its utility restructuring plan, the letter warned that "there is an urgent need to focus on the FY'99 budget request for sustainable energy programs and the tax package if we are to begin making a downpayment on commitments to reduce greenhouse gas emissions." Let us know if you would like us to fax you a copy.
5.) Production Tax Credit: The April 6 issue of Wind Energy Weekly reports that the Edison Electric Institute has endorsed a proposed five-year extension of the wind energy production tax credit.
ELECTRIC UTILITY RESTRUCTURING
1.) Pena's Resignation: Senate Energy Committee Chairman Frank Murkowski (R-AK) is predicting that DOE Secretary's Pena's just-announced resignation is likely to slow down activity on federal utility restructuring legislation. Pena's resignation is effective June 30.
2.) California/Restructuring: The Orange County Register (March 31) reports that on "the first day of electricity deregulation [in California] ... consumers, the people for whom the system was torn apart and put back together, seem underwhelmed. Fewer than 50,000 of the state's nearly 10 million electricity customers have opted to change their energy provider. ... So much for the revolution in California's energy business." Consumers now have a choice of 56 companies.
3.) California/Green Marketing: Saying "doing nothing solves nothing," the Renewable Energy Marketing Board and the Center for Energy Efficiency and Renewable Technologies have launched a grassroots campaign centered in the San Francisco Bay Area to promote the purchase of certified, "Green-e" renewable products in California. The program hopes to expand statewide later in the year. For details, contact Steven Kelly (REMB) at 916-448-9499; iep@iepa.com.
4.) Stranded Costs/Pennsylvania: As a further reminder of the size of the potential utility bailout possible under restructuring, the Harrisburg (PA) Patriot-News (April 8) reports that a Pennsylvania Public Utility Commission administrative law judge has recommended that PP&L Resources, Inc. be allowed to recover between $3.2 billion and $4 billion in stranded costs as part of its transition to a competitive electric power market. This translates into a cost for each average residential ratepayer of more than $300 per year and $2,500 over the seven-year stranded-cost period. However, the judge did not approve proposals to establish a pilot program based on renewable energy sources or to require disclosure of the amount of air pollution emitted by various power suppliers.
CLIMATE CHANGE
1.) El Nino/Climate Change: The National Oceanic and Atmospheric Administration has issued a special El Nino weather summary noting that "this winter's El Nino ranks as one of the major climatic events of this century. The country as a whole saw the warmest and wettest January and February in the past 104 years. This record-breaking El Nino is consistent with a worldwide trend over the last 40 years toward a warmer and wetter world. We can't draw a causal link between El Nino and global warming but our modeling tells us that global warming may first manifest itself in changes in weather patterns; in other words, this winter's El Nino is a taste of what we might expect if the earth warms as we now project." The study can be found at https://www.publicaffairs.noaa.gov.
2.) Efficiency/Wisconsin: A new study issued as part of DOE's Energy Fitness Program shows that implementing cost-effective energy efficiency technologies in Wisconsin would, by 2010, create 85,00 new jobs, increase disposable income by $490 million, increase gross state product by $41 million, reduce the state's greenhouse gas emissions by 7.7 million tons, and reduce projected statewide electricity use by more than 9 million megawatt hours. The study, "The Economic and Greenhouse Gas Emission Impacts of Electric Energy Efficiency Investments: A Wisconsin Case Study" can be found at
MISCELLANEOUS
1.) Renewables/Shell: Reuters (April 3) reports that renewable energy sources could be supplying as much as 50% of the world's energy by 2050, according to Mark Moody-Stuart, chairman of the British arm of Royal Dutch/Shell Group in his annual report to shareholders. He also predicted that oil supplies may peak within one or two decades, energy efficiency will improve faster in the future, and carbon emissions could start falling after the millennium.
2.) Biodiesel/EPA: The National Biodiesel Board (703-931-3095) reports that "the biodiesel industry is the first and only alternative fuel industry to complete health effects testing and submit the findings to EPA under the Clean Air Act." Biodiesel, made from feedstocks such as soybeans and canola, was found to reduce aldehyde and CO emissions by nearly 50% but increased NO emissions by 13% compared to diesel. Further, particulate emissions were 30% of those found in diesel while SO4 and alcohol emissions were essentially non-existent.
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