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February 28, 1999
If you want any of the items we have offered to fax, please provide a number for a DEDICATED (i.e., one that will not be answered by a person), 24-hour FAX line.
FEDERAL ENERGY BUDGET AND TAXES
1.) Congressional Appropriations/Miscellaneous Developments:
U.S. Department of Energy (DOE) officials believe members of the House Interior Appropriations Committee are more receptive this year to the agency's proposed budget FY'00 budget request for its energy efficiency programs than they have been in the last four funding cycles. Others, however, expect the Interior numbers to be low initially but followed by add-ons later following negotiations with the Administration. In the U.S. Senate, Senator Jim Jeffords (R-VT) is reportedly planning to do another amendment -- if necessary -- to raise funding levels for renewables to the Administrations' FY 2000 request level, with a few exceptions -- including the Renewable Energy Production Incentive and the National Renewable Energy Laboratory -- for which he will seek higher numbers.
2.) Tax Incentive Proposals/Miscellaneous Developments:
DOE officials believe that the auto companies are split in their views on the provisions to promote hybrid vehicles in the Administration's climate change tax package but generally see it as a "step forward." The Treasury Department is reportedly optimistic about having a legislative package ready by March. In the Congress, a number of Senate offices continue to develop a draft National Energy Security Act tax package that contains a renewables title; however, other proposed provisions aimed at promoting clean coal technologies and assisting oil & gas development may keep some of the offices from eventually endorsing the package.
3.) Environmental Taxes Newsletter:
The Center for a Sustainable Economy distributes a free, weekly electronic newsletter, "Environmental Tax News Update," that reports on environment- related tax news from the local, state, federal, and international levels. To learn more about the "Update," see the CSE website at https://sustainableeconomy.org or contact Scott Anders at sja@sustainableeconomy.org.
ELECTRIC UTILITY RESTRUCTURING
1.) Administration/Restructuring Proposal:
DOE officials says they are considering raising the proposed Renewable Portfolio Standard from the 5.5% non-hydro renewables by 2010 (proposed in the Administration's bill last year) up to six or seven percent. The bill may also include stronger net metering provisions. However, a number of other Administration officials are opposed to reopening the bill to another round of time-consuming inter-agency reviews. Reuters (February 24) adds that Energy Secretary Richardson said the White House would submit a revised electricity deregulation bill to Congress within the next four to six weeks. Richardson told the House Interior Appropriations Subcommittee that the new proposal has been "fine-tuned" to give states the opportunity to "opt out" of a national deregulation plan.
2.) Restructuring/Private Use Bills:
The most recent issue of "Environment & Energy Weekly" reports that bipartisan bills rewriting federal tax laws that handicap publicly owned utilities in a competitive electricity market have been introduced in the Senate and House. On February 11, Reps. J.D. Hayworth (R-AZ) and Robert Matsui (D-CA) offered the Bond Fairness and Protection Act of 1999, an identical companion to S.386 of the same title from Sens. Slade Gordon (R-WA) and Bob Kerrey (D-NE) and 10 co-sponsors. The legislation attempts to fix existing tax laws that place customers of state and municipal-owned utilities in the position of either being walled out of competition or facing the prospect of a hike in electricity prices. Let us know if you would like us to fax you a copy of the 2-page article.
3) Jeffords Restructuring Bill:
Senator Jim Jeffords (R-VT) would like to reintroduce his utility restructuring bill soon, but may delay a bit so as to gain a larger number of original cosponsors. The bill includes a Renewable Portfolio Standard of 10% non-hydro renewables by 2010 as well as a net metering provision.
4.) New Jersey/Restructuring Provisions:
The February 23 issue of "Wind Energy Weekly" reports that the new Jersey utility restructuring law includes a Renewable Portfolio Standard of 3% by 2001 rising to 6.5% by 2012 (of which 4.0% must come from photovoltaics, solar thermal electric, wind, geothermal, fuel cells, landfill gas recovery, and sustainable biomass). A "benefits charge" on each kilowatt-hour of electricity sold in the state will take in 2000 and continue for eight years. The charge will yield a total of $1 billion to support renewable energy and energy efficiency programs; of the total 25% is earmarked for renewable energy technologies. A net metering provision, covering renewable energy technologies of any size, requires utilities to purchase excess power from residential or small commercial customers at the avoided cost. Finally, the law's disclosure provisions require producers to provide customers with a complete breakdown of a company's generating resources and health- and environmentally- hazardous emissions associated with its fuel mix.
5.) Cost of Cleaning Up Fossil Fuel Plants:
Environmentalists have said that in a competitive power market, utilities and other power plant owners would have incentives to generate more electricity from older power plants because they do not bear the cost of pollution equipment. In response, the Texas Natural Resource Conservation Commission and the Texas Public Utility Commission studied 103 Texas power plants that are grandfathered because they were built or started before 1971 when the Clean Air Act took effect. The study found that if older fossil fuel plants were upgraded to meet Clean Air Act standards, it would cost between $400 million and $845 million. The agencies added that the utilities should be able to recoup the costs from customers as long as that is more economical than alternatives. The $845 million price would cost a typical residential customer about 48 cents/month for the next ten years but reduce nitrogen dioxide emissions by 68%. Let us know if you would like us to fax you a 2- page, February 18 article on this from the "Austin American-Statesman."
6.) Pennsylvania Restructuring Study:
PRNewswire (February 23) reports that a new study by XENERGY Inc., an energy consulting firm, found that six electric companies have emerged as clear winners in their bid for customers in Pennsylvania, where more than 300,000 customers have switched energy suppliers as the result of retail choice. By contrast, in California and New York -- more heavily populated states with many more customer accounts -- only about 100,000 customers in each state have switched suppliers. The six top electric companies in Pennsylvania are Allegheny Energy, Conectiv, Exelon, Green Mountain Energy Resources, New Energy Ventures, and PP&L Energy Plus. One of the most important vehicles for switching suppliers is aggregation groups. Price and green power were the major selling points for residential customers, while price and company reliability were the major selling points for commercial and industrial customers. For details, contact Dr. William Huss (XENERGY) at 781-273-5700.
7.) Santa Monica Goes Green:
The February 24 Business Wire reports that the Santa Monica (CA) City Council voted unanimously the evening before to enter into negotiations with Commonwealth Energy of Orange County to buy 5 megawatts of renewable energy to meet all of its municipal power needs for one year. The proposed purchase is equivalent to the amount of electricity used by 5,000 to 6,000 homes. Santa Monica will pay a five-percent premium or roughly $140,000 more annually for using "green" energy generated from geothermal plants owned by Calpine Corporation.
CLIMATE CHANGE
1.) Kyoto Protocol/Role of Renewables:
The February 23 issue of "Electricity Daily" quotes Dan Reicher (Assistant Secretary for the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy) as saying that non-hydro renewable energy is not expected to play a significant role in meeting the Kyoto Protocol's emission reduction goals. Presenting his budget request to House staff recently, Reicher said, "DOE's goal is to triple non-hydro U.S. renewable capacity to 25,000 MW by 2010." He acknowledged that since total U.S. capacity is over 750,000 MW, adding less than 2,000 MW of renewable capacity a year will not make a significant dent in fossil emissions when the Kyoto budget period starts in 2008. Reicher reportedly added that the payoff for renewables was further out, but would ultimately be large.
2.) Kyoto Protocol Costs Inflated:
A 1-page article in "Wind Energy Weekly" reports that in a February 6 Scripps- Howard News Service column, James Barrett of the Economic Policy Institute disputes a major study of the cost of U.S. compliance with the Kyoto Protocol. The earlier study by Wharton Econometrics Forecasting Associates predicted that U.S. gross domestic product would decline by 3.2% by the year 2010 while 2.4 million would be lost. Barrett, however, disputes the study's assumptions that penetration of renewables and energy efficiency into the marketplace would occur at rates well below the historic average. Barrett suggests that "replacing WEFA's assumptions with conservative but more reasonable estimates can reduce the projected loss of GDP to almost zero for the target year of 2010 ... Furthermore, though a loss of even 1% of GDP is not trivial, it would occur in the context of doubling the GDP over 30 years." Let us know if you would like us to fax you the article.
3.) World Bank/Green Energy:
A 4-page, February 3 Inter Press Service story discusses an open letter sent to the World Bank urging it to boost support for renewable energy development in poor countries and to drop plans for a controversial pollution swapping fund. Signed by the Union of Concerned Scientists, Business Council for Sustainable Energy, and two dozen other groups, the letter urges the Bank to earmark 20% of its total energy lending for renewable technologies; presently only eight percent of the Bank's total energy portfolio is allocated to renewable technologies. Let us know if you would like us to fax you a copy of the article.
4.) Early Action Legislation:
Senator John Chafee (R-RI) is expected to introduce his Early Action bill sometime this coming week -- possibly on March 4.
MISCELLANEOUS
1.) House Renewable Caucus Grows:
Rep. Gary Miller (R-CA) has become the 141st member of the House Renewable Energy Caucus.
2.) Ford Electric Vehicle's:
The February 1 issue of "Electric Vehicle Progress" reports that the Ford Motor Company "has strengthened its commitment to electric vehicles" by buying a majority interest in Pivco Industries' new THINK, a two-passenger battery electric car. Ford says "THINK is a practical, affordable option that will be available to the many." Ford will work with Pivco on a 1999 market introduction in Norway, Sweden, Finland, and Denmark. The Pivco operation plans to continue development of a version for the North American market in 2000, and then for other regions.
3.) Vice President Al Gore/Cars:
The 4-page cover story in the current issue of "Automotive Industries" offers the auto industry's views on Al Gore and its guesswork on Gore's future policy positions vis-a-vis auto efficiency. It focuses on the prospects for Gore supporting increased CAFE standards (some project they will be raised over the next five years), the PNGV program (which the auto companies seem to like because it represents "cooperative research rather than regulation), and the proposed Tier II regulations (which would mandate that all light trucks and SUVs be as clean as gasoline-powered passenger cars). The article noted that "Al Gore may not be the regulatory bogeyman he was made out to be a few years ago, and it's tough finding a policy-watcher who's outright bullish on prospects of a Gore Administration. Still, most believe he's a man the industry can do business with." Let us know if you want us to fax you a copy of the article. 4.) Germany/The Challenge of a Nuclear Phase-Out:
A February 22 report by Radio Free Europe discusses the difficulties faced by Germany's governing coalition to phase out the country's nuclear power plants which have a combined capacity of 22,000 MW and provide 35% of the nation's electricity needs. It also wants to abandon coal. Towards those ends, the government is devoting new efforts to develop solar and wind technologies. The latter, however, accounts for less than one percent of the electricity used nationwide (although newly-built wind generators now provide 17% of the electricity in the province of Schleswig-Holstein along the North Sea coast). The government is also running a test program involving 10,000 small solar units. One of the larger units, operated by Shell Oil, produces only 25 MW of power while another produces only 13 MW. In addition, the government is looking to hydroelectric power and biomass. Natural gas is also favored by some environmentalists but German officials are reluctant to increase its use because 80% of it has to be imported. The challenges being faced by Germany in phasing out nuclear power and coal may prove instructive for the United States. Let us know if you would like us to fax you a copy of the 3-page article.
5.) Sun Power Pioneers:
The Community Office for Resource Efficiency (CORE) reports that residents of the Roaring Fork Valley in Colorado who install solar photovoltaics systems can now receive up to $3,000 in cash incentives. The new program, Sun Power Pioneers, is sponsored by CORE in partnership with the City of Aspen and Holy Cross Energy. Sun Power Pioneers will earn 25 cents per kilowatt-hour for all the power their systems produce for three years. For details, contact Randy Udall (CORE) at 970-544-9808; Rudall@aol.com.
6.) Administration to Assume Title to Nuclear Waste:
The "Washington Post" (February 25) reports that the Clinton administration is planning to propose taking legal responsibility for the 77,000 tons of highly radioactive fuel rods piling up at 72 nuclear power plants around the country until a permanent waste facility is built. However, DOE will insist that the waste stay where it is until an underground facility is completed some time after 2010. DOE maintains that transferring title to the waste would ease the utilities' liability worries while increasing the range of options for storing spent fuel on site. Supposedly some nuclear power plants are running out of storage space because regional utility commissions refuse to give them permission to build new storage facilities. DOE believes that under federal ownership, such restrictions would not apply.
7.) Nuclear Waste Bill Delayed:
The February 23 issue of the "Las Vegas Sun" reports that the House Resources Committee was scheduled to vote yesterday on whether to release the Nuclear Waste Policy Act of 1999 (H.R.45) to the full House for a floor vote. However, Rep. Jim Gibbons (R-NV), a member of the committee, successfully lobbied its chairman Don Young (R-AK) to delay the hearing to allow committee members more time to weight the pros and cons of the bill. Gibbons was prepared to offer up to eight amendments to try to weaken or dismantle the bill; they included prohibiting nuclear waste from being transported through or near areas protected by the federal government (e.g., monuments and parks) as well as requiring the governor of a state to provide consent for the waste to be moved through that state.
8.) Mining Association/Earth Day:
The National Mining Association's February 22 newsletter is urging its members to take advantage of this year's Earth Day. "For the second consecutive year, NMA will join with other industry associations in participating in an Earth Day exhibit in Washington, DC. This year, it will be in the U.S. Capitol Building." The event is once again coordinated by the National Association of Manufacturers. NMA goes on to offer some examples of how to do local events; e.g., "Organize a 'plant-a-tree' campaign, perhaps on reclaimed mined land."
"It's probably due to global warming. It really doesn't take much of an increase, only a degree or two, to push back the freezing date by a month." Fisheries biologist commenting on changes in Yellowstone Lake's freezing patterns. The Associated Press State & Local Wire February 18, 1999
CONTENTS:
TAKE ACTION: WATER AND AIR QUALITY AT RISK: DO INDUSTRIAL PIG AND CHICKEN FARMS DESERVE A BREAK? NO!!!!!!!!
INTO THE WOODS I: "FOREST HEALTH EMERGENCY" PROMOTES CLEARCUTTING
INTO THE WOODS II: MOTORS THREATEN WILD FORESTS & GIANT SEQUOIAS
INTO THE PARK: GLOBAL WARMING VISITS YELLOWSTONE NATIONAL PARK
INTO THE WILDERNESS: OIL DRILLING IN NEW MEXICO'S BISTI/DE-NA-ZIN WILDERNESS?
TAKE ACTION!
WATER AND AIR QUALITY AT RISK: GIVING INDUSTRIAL PIG IN CHICKEN FARMS A BREAK: Members of Congress Pressure EPA to Water Down Animal Waste Pollution Strategy
Thirty-six members of the House Agriculture Committee wrote EPA Administrator Carol Browner a strongly worded letter expressing concern that EPA's forthcoming animal waste pollution strategy "would place unnecessarily burdensome and costly regulation on U.S. livestock sectors."
The letter challenges EPA's legal authority under the Clean Water Act to regulate the land application of manure; asserts that EPA lacks adequate, recent water quality data to justify the need for the strategy; and objects to the recommendation for individual Clean Water Act permits for any feedlots, supporting instead general permits that lack public notice and participation requirements and site-specific protections.
The letter concludes: "Agricultural producers have seen significant progress over the past decade, through voluntary improvements by AFOs and effective, state-led programs. Voluntary and incentive-based programs should be the focus of any workable Strategy. States are presently working to address CAFO issues, and EPA/USDA should give these efforts a chance to work before additional federal regulations are promulgated."
In other words, let's keep the status quo: virtually unregulated, industrial-style animal factories with giant, leaking lagoons polluting rivers, groundwater, and air.
The following members signed the letter:
Larry Combest, Chairman (R-TX-19) Richard Pombo (R-CA-11) Charlie Stenholm, Ranking Minority Member (D-TX-17) William Jenkins (R-TN-1) Doug Ose Nick Smith (R-MI-7) Tim Holden (D-PA-6) John Hostettler (R-IN-8) Ralph Hall (D-TX-4) Saxby Chambliss (R-GA-8) Dan Burton (R-IN-6) Bill Barrett William Thornberry (R-TX-13) Michael Simpson Ron Paul (R-TX-14) Bob Schaffer (R-CO-4) Doc Hastings (R-WA-4) Sanford Bishop (D-GA-2) Greg Walden John Boehner (R-OH-8) John Thune (R-SD-At Large) Jerry Moran (R-KS-1) Terry Everett (R-AL-2) Collin Peterson (D-MN-7) Bill Thomas (R-CA-21) Gil Gutknecht (R-MN-1) Robin Hayes John Cooksey (R-LA-5) Ray LaHood (R-IL-18) Helen Chenoweth (R-ID-1) Henry Bonilla (R-TX-23) Bob Riley (R-AL-3) Jim Turner (D-TX-2) Tom Ewing (R-IL-15) Robert Aderholt (R-AL-4) Pete Sessions (R-TX-5)
TAKE ACTION
THESE MEMBERS OF CONGRESS DESERVE A BRONX CHEER!
*Call them and let them know that you don't appreciate their support for continuing the massive water and air pollution that factory farms cause.
*Write a letter to the editor to help get out the word on your Representative's anti-environmental action.
"FOREST HEALTH EMERGENCY" PROMOTES CLEARCUTTING
As we reported recently, U.S. Forest Service Chief Mike Dombeck announced a moratorium on road building in many of our last unspoiled roadless forests. Although the new moratorium is only temporary and too many areas are exempted, we all welcome what we hope are the beginnings of Forest Service reform. But at other levels of the agency, business as usual goes on....
In Idaho, the Panhandle National Forest is experiencing what the agency calls a "forest health emergency." As is usually the case in such "emergencies," the agency's recommended solution is massive increases in logging and a short-cut around public involvement. A draft Environmental Impact Statement outlines a plan for the Panhandle and Colville National Forests which would allow the logging of 153 million board feet of Douglas fir this year alone -- that almost makes up for the progress made by the national road building moratorium!
So what's the "emergency" requiring such drastic action? An outbreak of Douglas fir bark beetles, which usually lasts only 2-3 years. But because the trees "could start to lose commercial value in as little as two years," it seems that logging is essential. Sounds like the real emergency is that the agency won't be able to cut down all the public's trees before the beetle outbreak is over.
If you want to help save these old trees and prevent over 5,000 acres of clearcuts and over 20,000 acres of "selection harvest," call Chief Mike Dombeck at 202-205-1661 and ask him to stop the bogus "emergency forest health" Douglas fir beetle logging project.
MOTORS THREATEN WILD FORESTS & GIANT SEQUOIAS
Meanwhile, in California, Sequoia National Forest is being threatened by trails. Doesn't sound near as scary as massive clearcutting, does it? Well, if you are one of the hundreds of activists around the nation trying to the stem the growing tide of the motorization of our wildlands, it can look pretty scary.
The Forest Service estimates that between 1979 and 1987, off-road vehicle use in the National Forests increased by 1,500 percent, and the agency estimates a 61 percent increase from that number in the next 40 years. Some off-road vehicle (ORV) groups have joined with industry groups in the so-called "Wise Use Movement" in a major push to open up the last of America's wildlands to motors, focusing heavily on making trails into remote wild areas to disqualify them from ever being officially designated as Wilderness. Land management agencies tend to see motorized recreation as a good revenue producer, and have been cooperating with ORV groups to widen trails and open up new areas to motors. In some states, conservationists say that land managers have already converted some of their wildest areas to drive-through areas.
So back to Sequoia...a new "trail plan" by the Sequoia National Forest authorizes the construction of 290 miles of new ORV routes, including trails along sensitive streams, roadless areas (hey, what about that moratorium?) and several routes that would affect the Giant Sequoia groves. You can help by calling your member of Congress and asking them to sign on a letter being circulated by Rep. Pete Stark (D-CA) asking Chief Mike Dombeck reject the Sequoia plan and instead come up with a plan that better reflects his stated goals of environmental protection. The letter is being delivered next week, so please call soon.
GLOBAL WARMING VISITS YELLOWSTONE NATIONAL PARK
Winters are different at Yellowstone Lake. For the second winter in a row, the lake had thin ice and open water when it should have been covered by solid ice -- solid enough to drive on (but who would want to do that??).
According to the log books, the lake generally freezes over in late December and remains covered with a solid layer of ice until May. This year Yellowstone Lake didn't freeze until January 26th, a month later than usual. During the winter of 1997-98, the lake froze on schedule, but thawed a week later. There was open water on part of the lake for another month, refreezing on February 10.
"It's phenomenal. We just don't know the reason why," said Dan Reinhart, Yellowstone National Park's lake resource manager.
Another ranger said discussions with retired rangers and winter caretakers lead him to believe similar open water has been seen only twice in the last 45 years.
Park officials have not determined the cause, but fisheries biologist Jim Ruzycki said there will be monitoring. Park biologists plan to double the number of thermometers in Yellowstone Lake as part of a fisheries study that they hope gives them an understanding of the lake's freezing patterns.
"It's probably due to global warming," Ruzycki said. "It really doesn't take much of an increase, only a degree or two, to push back the freezing date by a month." [From The Associated Press State & Local Wire February 18, 1999]
NM WILDERNESS AT RISK: OIL DRILLING IN BISTI/DE-NA-ZIN
Haven't heard of Bisti/De-Na-Zin Wilderness Area. Well, this beautiful wilderness area is a mere three hours from the buzz of Albuquerque and Santa Fe. Its surface is lunar and magical, with hoodoos, spires, and painted buttes. The bones of dinosaurs are perpetually eroding to the surface out of Bisti's colorful, but fragile soils. It is home to at least one species that lives no where else. It is a sublime landscape like no other. The Bisti was the **first ever** BLM wilderness area.
It sounds like place worth visiting, but you better get there soon because an oil company called Speerex is trying to force the Bureau of Land Management (BLM) to let it drill for oil and gas in the Wilderness. This would mean roads, pipelines, and drill rigs in this wonderous place.
The BLM still has to approve the drill permits and rights of way for Speerex to move forward. With enough public pressure they could deny the permits and easements. No Action means no drill rigs in the wilderness. You can help by sending a letter or email urging BLM to choose the "No Action" Alternative from the Draft EIS to protect his beautiful place.
Lee C. Otteni, Field Office Manager BLM, Farmington Field Office
1235 La Plate Highway, Suite A Farmington, NM 87401
--AND-- Interior Secretary Bruce Babbit Department of the Interior 1849 C St. NW Washington, DC 20240 EMAIL: exsec@ios.doi.gov
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