THE SUSTAINABLE ENERGY COALITION

"WEEKLY UPDATE"

March 28, 1999

The articles provided below were initially compiled during the past week 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 750 organizations nationwide.

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 & TAXES

1.) Renewable Energy Production Incentive Letter:

On March 25, 42 organizations (including a majority of the Sustainable Energy Coalition's members) sent a 2-page letter to the members of the House and Senate Appropriations Subcommittees on Energy & Water Development urging full funding of the Renewable Energy Production Incentive (REPI) program. REPI authorizes the Department of Energy to make payments of 1.5 centers/kWh of energy produced from eligible renewable energy sources. For Fiscal Year 2000, $20 million is needed to make full incentive payments for renewable electricity produced by all qualified facilities through the end of FY'99. However, the Clinton Administration has requested only $1.5 million -- a drop of 62% from the $4 million appropriated in FY'99. Let us know if you would like us to fax or e-mail you a copy.

2.) Home Tax Credit Bill Expected:

Rep. Bill Thomas (R-CA) is expected to introduce legislation that will provide a $2,000 tax credit for energy-efficient homes. The Energy Efficient Affordable Home Act of 1999 offers incentives to homeowners and homebuilders to maximize the energy efficiency of residential buildings, thereby reducing energy consumption, utility bills, pollution, and CO2 emissions.

3.) T.J. Glauthier Sworn in as DOE Deputy Secretary:

A 2-page March 19 DOE news release reports that T.J. Glauthier has been sworn in as DOE's Deputy Director following approval of his appointment by the U.S. Senate. Previously he had served at the Office of Management and Budget where he had responsibility for environmental and energy program budgets; in that capacity, he had proven himself an advocate for sustainable energy programs. Let us know if you want us to fax you a copy of the release.

ELECTRIC UTILITY RESTRUCTURING

1.) Administration Restructuring Bill Coming Soon:

Reuters (March 23) reports that DOE Secretary Bill Richardson said that the new Clinton Administration electricity restructuring bill would be sent to Congress after lawmakers return from their spring recess on April 12. He added that the bill would more environmentally friendly than last year's Administration outline. "[The plan] tilts towards stranded costs. Utilities can recover costs from previous entities," Richardson said, noting that ultimately states should decide the question.

2.) New Mexico Restructuring Bill Passed:

The New Mexico legislature has sent a utility restructuring bill (SB.248 - the Electric Utility Industry Restructuring Act of 1999) to Governor Gary Johnson who has until April 9 to sign it into law. The bill would allow residential and small commercial customers to choose their electric supplier starting in 2001 and all customers by 2002. It contains a fuel source and emissions disclosure requirement as well as a systems benefits charge that starts at under 0.5% of gross revenues at the end of 2001 and increases to about 1% by the end of 2006. The funds are to be used to support renewable resources, customer education, low-income energy assistance, and the provision of electricity to remote communities that are not connected to the grid. However, over a five- year transition period, utilities will be allowed to recover at least half their stranded costs and could recover up to 100% of those costs with the approval of the Public Regulatory Commission. Public Service New Mexico estimates its stranded costs at up to $600 million.

3.) California and Green Power:

Business Wire (March 23) reports that during the first year of California's competitive electric market, more than 50 percent of all residential power switches, or about 100,000 households, have opted to buy their electricity from green power marketers. It adds that over 90% of Californians can now choose their electricity supplier.

CLIMATE CHANGE

1.) Republican Climate Bill Expected:

Reuters (March 25) reports that Senators Frank Murkowski (R-AK) and Chuck Hagel (R-NE) plan to introduce legislation when the Senate reconvenes on April 12 that would refocus U.S. climate change efforts on longer-term goals to develop technologies for removing and avoiding emissions of greenhouse gases. The bill calls for Congress to commit $2 billion in new research and development spending over the next 10 years to foster energy-efficient, low- emissions technologies. The monies would be focused on transportation, alternative energy technologies, advanced clean coal, advanced nuclear, modern agriculture practices, forestry management, and other areas. It would also expand current laws to support voluntary industry efforts and create statutory penalties for firms falsely reporting emissions cuts. And it would establish an Office of Global Climate Change in DOE.

2.) Atlanta Constitution - Climate Editorial:

Criticizing an anti-Kyoto resolution before the Georgia legislature (which has since been defeated), a March 22 editorial in the "Atlanta Constitution" notes that "something is happening to Earth's climate" and recommends approval of the Kyoto Protocol as "an imperfect but necessary first step." It adds that Kyoto's goals "can be achieved by improving fuel efficiency and switching to alternative sources of energy." Let us know if you would like us to fax you a copy of the 2-page editorial.

MISCELLANEOUS

1.) Nuclear Power - Public's Views:

A March 20 public opinion survey on nuclear power conducted for the Associated Press poll included the following questions and responses: "Do you support or oppose using nuclear power to generate electricity?" (support: 45%; oppose: 31%; don't know: 23%; refused: 1%); "Do you think nuclear power plants in the United States are safer now than they were 10 years ago, or not?" (safer: 61%; not safer: 21%; don't know: 18%); "Do you think radioactive waste from nuclear power plants can be safely stored for many years, or not?" (Yes: 31%; No: 47%; don't know: 21%).

2.) Renewable Electricity Decline?:

A new 1998 summary report from the U.S. Energy Information Administration (EIA) suggests that electricity generated from renewable energy sources declined last year while power from nuclear and fossil fuels rose. Looking at utility generation only (as opposed to non-utility), wind generation is down 50%, photovoltaics is down 28%, hydro is down 9%, and geothermal is down 5%; although biomass increased by about 2%. Conversely, coal is up 1%, oil-fired generation is up 42%, natural gas is up 9%, and nuclear is up 7%." Let us know if you want us to e-mail or fax you a copy of the 7-page EIA report.


March 21, 1999

FEDERAL ENERGY BUDGET

Pending Budget Resolution Threatens Discretionary Spending:

A 2-page, March 17 news release from Friends of the Earth condemns proposals in the House and Senate Budget Committees to slash federal spending on environmental protection, open-space protection, and community livability. It notes that the House and Senate Budget Committees are currently considering budget legislation that would cut funding for the environment and natural resources programs for next year from $23.9 billion to $21.9 billion. The Clinton- Gore Administration budget proposed to increase funding to $24.6 billion. Similarly, a 2-page March 5 release from the Coalition on Human Needs claims that complying with the budget caps would necessitate $45 billion in program cuts from the $581 billion needed to maintain current discretionary spending at inflation-adjusted levels; those cuts would be even worse for most programs if proposals for increased spending on defense and education reportedly included in the GOP budget deal are put forward. Let us know if you would like us to fax you a copy of either release.

ELECTRIC UTILITY RESTRUCTURING

Senate Energy Committee Begins to Act on Restructuring:

The "Environment & Energy Update" (March 18) reports that Senate Energy Committee Chairman Frank Murkowski (R-AK) plans to wait for the Administration's utility restructuring bill before he takes any action on the issue. The Administration's plan is expected to be submitted to Congress by the end of the month. Murkowski's staff is continuing to talk with ranking member Senator Jeff Bingaman's (D-NM) office to try to develop bipartisan legislation. Bingaman has said he opposes a stand-alone bill to repeal the Public Utility Holding Company Act. Bingaman also notes that it would be tough to get committee members to agree to a renewable energy set-aside. Murkowski says he wants to encourage renewables but he does not believe renewables can make a noticeable presence in the electricity market without subsidies.

CLIMATE CHANGE

1.) State Legislature Resolutions Oppose Kyoto Protocol:

The National Environmental Trust has prepared a 4-page paper summarizing "state legislative activity on global warming" which reviews bills introduced in the Arizona, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Mexico, New York, and Washington state legislatures. Most of the bills are opposed to implementation of the Kyoto Protocol. Let us know if you would like us to fax you a copy.

2.) Governor George Bush's Views on Climate Change:

A report by MSNBC (March 11) noted that Texas Governor Bush has declared a state of emergency due to fire dangers posed by a developing drought. Environmentalists have blamed the drought in part on the effects of global warming. However, Bush, who has said he may seek the Republican presidential nomination in 2000, told reporters "the science is still out on issues like global warming."

3.) Open Letter to DOE on Renewables' Role in Climate Change:

On March 18, the SUN DAY Campaign sent a 2-page "open letter" to Dan Reicher, the U.S. Department of Energy's Assistant Secretary for Renewable Energy & Energy Efficiency. The letter disputes statements recently attributed to DOE that non-hydro renewable energy was not expected to play a significant role in meeting Kyoto emission reduction goals. The letter notes that renewable energy currently provides approximately 10% of the nation's domestic energy production -- a level roughly equal to, if not greater than, that now provided by nuclear power. It further argues that there is no compelling reason why -- with appropriate federal leadership -- new, non-hydro renewable electric generating capacity could not substantially exceed 25,000 MW (DOE's goal) by 2010 "which would play a significant role in meeting U.S. emission reduction goals under the terms of the Kyoto Protocol." Let us know if you would like us to e- mail or fax you a copy of the letter.

MISCELLANEOUS

1.) House and Senate Renewable Caucuses Grow:

Rep. Tammy Baldwin (D-WI) has become the 143rd member of the House Renewable Energy Caucus. In addition, Senator Allard's office reports that the Senate Renewables and Energy Efficiency Caucus is up to 24 members (14-D, 10-R) with the recent additions of Senators Bob Graham (D-FL), Blanche Lincoln (D-AR), and Patrick Leahy (D-VT).

2.) Car Makers Unveil Plans for Fuel Cell Vehicles:

On March 17, Daimler-Chrysler AG and Ford Motor Company unveiled plans to begin producing hydrogen-fuel-cell cars for mass-market sales by 2004. Toyota Motor Corp. and General Motors Corp. also have announced plans to have commercially viable fuel-cell vehicles ready within the next four years. In a 1- page release, Fuel Cells 2000 noted that "as the song goes, this is the start of something big." Separately, the Renewable Fuels Association issued a 1-page release commenting on DOE's award of the 1998 Partnership for a New Generation of Vehicles Medal to an industry/government team responsible for pioneering the development of technology that converts ethanol to hydrogen to power a fuel cell vehicle. It notes that "combining ethanol with fuel cells will result in a vehicle capable of achieving upwards of 80 miles to the gallon with near-zero exhaust emissions, providing substantial reductions in greenhouse gas emissions." Let us know if you would like us to fax you a copy of either release.

3.) Lamar Alexander's Views on Ethanol:

A recent 2-page "Business Wire" article notes that Presidential candidate Lamar Alexander has called for an expanded use of ethanol, in place of the MTBE gas additive. "Nationally, ethanol production increases farm income by $4.5 billion annually and is responsible for nearly 200,000 jobs. Just one additional corn-processing plant with the capacity to produce 100 million gallons of ethanol would result in an estimated 1100 new jobs and create an additional $35 million in personal income. Thus, helping the nation protect its environment is good business for Iowa."

4.) Assorted Wind Media:

An article in the February 18 "Grand Forks (ND) Herald" discusses remarks by Dan Reicher who called North Dakota the "Saudi Arabia of wind" and announced plans for $1.3 million in grants for small wind turbines. An article in the February 12 "Waterloo (IA) Courier" reports on Senator Charles Grassley's intent to cosponsor extension of the wind PTC. Finally a February 18 article in the "Portsmouth (RI) Sakonnet Times" discusses plans for the possible construction of several wind turbines at sites near Portsmouth. Let us know if you would like us to fax you any of these articles.

5.) Factsheet - Three Mile Island:

The Safe Energy Communication Council has prepared a 5-page factsheet, "Twenty Years After the Accident: The Legacy of Three Mile Island & the Dying Nuclear Industry." Let us know if you would like us to fax you a copy.

THREE MILE ISLAND: POLL RESULTS

On Monday, March 22, the Sustainable Energy Coalition will issue the following news release on its new public opinion survey on nuclear power. Please feel free to share this release with your local media and others as well as reprint it in your organization's newsletter.

"SUSTAINABLE ENERGY COALITION 315 Circle Avenue, #2; Takoma Park, MD 20912

For Release: March 22, 1999 - noon

Contact: Scott Denman 202-483-8491, ext.*814 Charlie Higley 202-546-4996, ext. 309

Washington DC -- Twenty years after the March 28, 1979 accident at the Three Mile Island nuclear plant near Harrisburg, Pennsylvania, most Americans believe a similar accident could happen again in the United States . Furthermore, six out of ten registered voters oppose the building of any new nuclear plants in the United States and, if given a choice of generator from which they could buy their electricity, only six percent would choose nuclear power.

These are among the key findings of a new public opinion survey released today by the Sustainable Energy Coalition. The survey of 1,022 registered voters was conducted March 5-14 by International Communications Research of Media, Pennsylvania; it has a margin of error of +/-3.0 percent.

Two-thirds (67%) of respondents stated that they believe that it was highly (21%) or somewhat (46%) likely that a nuclear accident like that which occurred at the Three Mile Island nuclear plant could happen in the United States again. This view is held by male and female voters across all political party lines and age groups. It is therefore not surprising that three-fifths (60%) of all registered voters oppose the building of more nuclear power plants in the United States with women (69%) and younger voters (65%) particularly opposed.

The respondents overall were evenly split on the question of whether existing reactors should be phased out by the year 2020. However, a nuclear phase-out is embraced by a majority of Democratic voters (51% vs. 35%). Furthermore, the responses reveal a clear gender gap with women favoring a phase-out by a margin of 48% to 35%. Perhaps more troubling for the nuclear industry is that younger voters support a phase-out of nuclear reactors by an even larger margin of 50% to 40%.

'Most Americans think an accident like that which occurred at Three Mile Island could happen again and want no new plants built,' said Scott Denman, Executive Director of the Safe Energy Communication Council. 'This provides convincing proof that voters believe nuclear power remains an unsafe, unreliable, and uneconomic source of electricity.'

Finally, the survey suggests that as the nation's utility marketplace is gradually opened to competition, the nuclear industry is faced with a bleak future inasmuch as only 6% of voters would opt to buy their electricity from nuclear generators. In comparison, an overwhelming number of consumers (62%) would prefer to buy their electricity from renewable energy sources (i.e., solar, wind, geothermal, biomass, and hydroelectric) while another 18% would choose natural gas and 4% would select coal.

'Twenty years after the Three Mile Island accident, the nuclear industry has clearly never recovered,' said Wenonah Hauter, Director of Public Citizen's Critical Mass Energy Project. 'It is a dying industry dependent on an outmoded technology for which there is little public support and which most consumers are prepared to reject in the marketplace.'

Question #1: On March 28, 1979, the worst accident involving a U.S. nuclear reactor occurred at the Three Mile Island nuclear power plant near Harrisburg, Pennsylvania. Do you think a nuclear accident like that which occurred at the Three Mile Island plant could happen in the United States again? Would you say it is ...

Highly Likely                   21.3%
Somewhat Likely         45.6%
Somewhat Unlikely               16.7%
Highly Unlikely                 11.7%
Don't Remember TMI                0.8%
Don't Know                        3.1%
Refused                           0.8%

Question #2: Do you favor or oppose the building of more nuclear power plants 
in the United States?
Oppose                          59.8%
Favor                           25.6%
Don't Know                      13.4%
Refused                           1.2%

Question #3: Should the United States phase out its existing nuclear power 
plants by the year 2020?
Yes                             43.3%
No                              43.8%
Don't Know                      12.0%
Refused                           1.0%

Question #4: If you had a choice, from what one type of power plant would you 
buy electricity?
Renewable Energy*               61.5% 
Natural Gas                     18.3%
Nuclear                           6.3%
Coal                              4.4%
Don't Know                        8.0%
Refused                           1.5%
*(i.e., solar, wind, geothermal, biomass, hydroelectric)

A one-page table presenting the above responses with details on how they broke down along gender, age, and political party lines can be faxed upon request. The complete 15-page survey "America Speaks Out on Energy: Nuclear Power" (including charts and demographic data) is available for $10 prepaid from the Sustainable Energy Coalition (315 Circle Avenue, #2, Takoma Park, MD 20912-4836).

The Sustainable Energy Coalition is a coalition of 36 national energy policy organizations founded in 1992 to promote increased use of renewable energy and energy efficient technologies."

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