"WEEKLY UPDATE"
May 23, 1999
Contents
FEDERAL ENERGY BUDGET AND TAXES
1.) Budget Allocations Include Deep Cuts in Discretionary Spending
2.) Republicans Split on Whether to Raise Budget Caps
3.) Congressional Appropriations Schedule Slowly Emerges
4.) Science Committee Set to Act on DOE Authorization Bill
5.) Senators Propose Tax Credits for Alternative Fuels
ELECTRIC UTILITY RESTRUCTURING
1.) Arizona May Revive Its Renewable Portfolio Standard
2.) Restructuring Bill Passes Texas House of Representatives
3.) Web Site Details State-by-State Public Benefit Funds
CLIMATE CHANGE
1.) Climate Impacts on Agriculture Becoming Campaign Issue
2.) Anti-Kyoto Rider Added to Agriculture Bill
3.) UCS Alert Opposes Murkowski-Hagel Climate Bill
4.) Governor George Bush Gets Religion on Climate Change
5.) Labor/Environmentalists Issue Joint Climate Statement
6.) Fuel Group Criticizes Municipal Utilities' Climate Views
MISCELLANEOUS
1.) Minnesota Creates Fund to Support Renewables
2.) Utility To Remove Dams To Save Salmon
3.) Senate Delays Action on Nuclear Waste Bill
4.) Governor Bush Opposes Expansion of Nuclear Waste Dump
5.) NRC Ready to Approve New Nuclear Reactor Design
6.) Nuclear Utility's Picnic Makes Workers Sick
7.) Effort Uncovered to Improperly Ship Nuclear Fuel Overseas
FEDERAL ENERGY BUDGET AND TAXES
1.) Budget Allocations Include Deep Cuts in Discretionary Spending:
The Associated Press reports that Republican leaders of the House
Appropriations Committee have allocated funds for each of the panel's 13
Fiscal Year 2000 spending bills. The three numbers listed for each bill
represent (a) the FY'00 allocation; (b) the actual FY'99 appropriation; and (c)
the Clinton Administration's FY'00 request. The numbers exclude automatic
payments like Social Security or interest to holders of Treasury bonds. Figures
for FY'99 do not include billions of dollars in so-called emergency spending or
any funds from the new measure paying for the fight with Yugoslavia. Together,
those would total more than $30 billion, most of which is for defense spending
this year.
Agriculture: $13.9 billion; $14 billion; $14.5 billion.
Commerce-Justice-State-Judiciary: $30.5 billion 2000; $33.3 billion; $36.9 billion.
Defense: $270.3 billion; $251.4 billion; $263.1 billion.
District of Columbia: $453 million; $494 million; $394 million.
Energy and water development: $19.4 billion; $21.1 billion; $21.6 billion.
Foreign operations: $10.4 billion; $12.8 billion; $14.6
billion.
Interior: $11.3 billion; $14 billion; $15 billion.
Labor, Health and Human Services, Education: $78.1 billion; $88.8 billion; $91.2 billion.
Legislative branch: $2.5 billion; $2.6 billion; $2.6 billion.
Military construction: $8.7 billion; $8.5 billion; $5.4 billion.
Transportation: $12.7 billion; $12.3 billion; $13.9 billion.
Treasury-Postal Service: $13.6 billion; $13.2 billion; $13.9 billion.
Veterans Affairs-Housing and Urban Development: $66.2 billion; $72 billion; $69.6 billion.
Totals: $538 billion; $544 billion; $562.7 billion.
2.) Republicans Split on Whether to Raise Budget Caps:
In a CQ Daily Monitor" (May 19) article, Senate Appropriations Chairman Ted
Stevens (R-AK) bemoans the FY'00 budget caps warning: "We're heading for a
collision that will take us to September; and it's a bad, bad scene." However,
Senate Majority Leader Trent Lott (R-MS) claims "Washington is still spending
too much money, wasting too much money on a variety of programs. We can
come up with savings to meet those targets. Live within the targets. It's tough,
but it ought to be done." Stevens has consequently concluded that
appropriators have no choice but to draft bills that stick to the caps because
overriding the limits would require an unattainable 60-vote majority in the
Senate. Over in the House, Appropriations Chairman C.W. Bill Young (R-FL)
says that it is time to "admit publicly" that the discretionary spending limits are
unrealistic. However, House Majority Leader Dick Armey (R-TX) says House
leaders still intend to try to pass bills within the spending caps. "I have to tell
you, I can't think of any point on which there seems to be, by virtue of actions
already taken, more universal commitment by the White House, by the
Republicans in the House and Senate, and by the Democrats in the House and
Senate than to keep the cap."
3.) Congressional Appropriations Schedule Slowly Emerges:
The Senate Energy & Water Appropriations Committee, which oversees DOE's
renewable energy and nuclear power program budgets, is slated to mark-up its
bill on May 25 followed by a full Appropriations Committee action on May 27.
The bill is now expected to produce a reduction of 22-25% in renewable energy
funding. Meanwhile, House Subcommittee staff have confirmed that they have
"no guidance" at this point regarding the timing of the markup under the
present allocation status. Therefore, Energy and Water remains on hold in the
House. The Senate Interior Appropriations Subcommittee (which is
responsible for DOE's energy efficiency and fossil fuel programs) is expected
to mark-up its appropriations bill in late June or early July. They expect to go
with or without a House mark.
4.) Science Committee Set to Act on DOE Authorization Bill:
The full House Science Committee is meeting on Tuesday, May 25, at which it
will consider H.R. 1655 (Department of Energy Research, Development &
Demonstration Authorization Act of 1999) and H.R. 1656 (Department of
Energy Commercial Application of Energy Technology Authorization Act of
1999). The bills would severely restrict future funding for sustainable energy
programs. Rep. Mark Udall (D-CO) is prepared to introduce an amendment that
calls for authorization levels at the Administration's FY'00 request levels
(except for increases in the Renewable Energy Production Incentive and the
National Renewable Energy Laboratory) plus a 3% increase for FY'01 on a line-
by-line basis. However, the Udall amendment has nothing in it about
geothermal energy because H.R. 1655 already provides the Clinton FY'00
request (which is a cut from the level DOE requested in FY'99).
5.) Senators Propose Tax Credits for Alternative Fuels:
Senators Orrin Hatch (R-UT), Jay Rockefeller (D-WV), Richard Bryan (D-NV),
and Mike Crapo (R-ID) have introduced the "The Alternative Fuels Promotion
Act" (S.1003) which creates a 50-cent per gallon tax credit for the purchase of
hydrogen, natural gas, propane, methanol, and electricity. It also provides a tax
credit of 10% of the purchase price for alternative fuel vehicles, up to $4,000,
and an additional $5,000 credit toward any electric vehicle with a range over
100 miles. The legislation also extends a $100,000 credit for construction and
installation costs of putting in new filling stations for alternative fuel vehicles.
ELECTRIC UTILITY RESTRUCTURING
1.) Arizona May Revive Its Renewable Portfolio Standard:
"California Energy Markets" (May 17) reports that after unceremoniously
dumping the solar energy requirements from its amended electric restructuring
rules, a majority of the Arizona Corporation Commission appears ready to
support a revised portfolio standard that imposes a cost-benefit test on the
original mandate. The new proposed rule would require all power sellers to use
new [post-1996] renewable sources -- 90% solar -- for at least 0.2% of the
power they sell in Arizona. That percentage would increase to 0.4% in 2001
and 0.5% in 2002. Any further increases in the portfolio standard must be
inexpensive enough o meet an as-yet-undefined "cost/benefit point" or
renewable price cap set by the commission.
2.) Restructuring Bill Passes Texas House of Representatives:
The Sustainable Energy and Economic Development Coalition (Austin, TX)
reports that the Texas House of Representatives has approved a utility
deregulation bill (SB.7) which requires all sellers of electricity to get 3% of their
electric capacity from renewable energy, up to a total state development of
2,000 MW by 2009. The provision requires that the renewables be new and
built or sourced from Texas. Another provision requires all sellers of electricity
to use energy efficiency programs to reduce anticipated load growth by at least
10%. In addition, a disclosure provision requires sellers of electricity to include
in the monthly bill an explanation of how the electricity sold to the customer
was generated and how much pollution was emitted in the course of generating
it. Finally, the bill requires older power plants to reduce NOx emissions to 50%
of 1997 levels and reduce SO2 emissions to 75% of 1997 levels by 2003 or
cease operations. From here the bill goes to the Senate, which may vote to
concur (as is unofficially expected) or call for a conference committee. After
that, the Governor has stated he will sign it.
3.) Web Site Details State-by-State Public Benefit Funds:
The American Council for an Energy-Efficiency Economy has posted a state-
by-state summary of public benefit funds created around the country as part of
utility restructuring to support energy efficiency, renewable energy, and low-
income assistance programs. It can be viewed at https://www.aceee.org/briefs/mktabl.htm.
CLIMATE CHANGE
1.) Climate Impacts on Agriculture Becoming Campaign Issue:
A May 18 "CongressDaily" story reports that Senator Pat Roberts (R-KS) does
not expect the Administration to put the Kyoto Protocol forward for ratification
this year - but hinted that Republicans will make federal policy on climate
change an issue in rural America in the 2000 election. Roberts noted the
Administration estimates the cost to implement the Kyoto Protocol at $371
million per year while the American Farm Bureau, a vigorous opponent of the
treaty, has estimated the reduction in farm income at $21.5 billion. Some farm
lobbyists have said they believe Vice President Gore will not do well in rural
areas because his association with the Kyoto Protocol has given him too
strong an environmental image.
2.) Anti-Kyoto Rider Added to Agriculture Bill:
Last week's Congressional Green Sheets reports that Rep. Jo Emerson (R-
MO) proposed an amendment to eliminate USDA funds for global climate
change research, but it was defeated by voice vote after opponents had
stressed farmers' crucial need for climate information. She then offered an
amendment prohibiting USDA spending funds on "implementation before
ratification" (as if USDA is chomping at the bit to regulate GHGs!), which
apparently was approved by voice vote.
3.) UCS Alert Opposes Murkowski-Hagel Climate Bill:
The Union of Concerned Scientists has issued a 3-page "action alert" urging
people to contact their U.S. Senators and respectfully urge them to NOT
cosponsor the "Energy and Climate Policy Act of 1999 (S. 882) which was
recently introduced in Congress by Senators Murkowski (R-AK) and Hagel (R-
NE). UCS argues that "both of these Senators have been significant critics of
positive efforts to address global warming. This bill is a dangerous diversion
from significant action on global warming and should be opposed now to keep it
from gaining momentum." The alert can be found at https://www.ucsusa.org/warming/gw.activists.html.
4.) Governor George Bush Gets Religion on Climate Change:
The Fort Worth, Texas "Star-Telegram" (May 13) reports that Governor George
W. Bush has changed his tune on climate change. A few weeks ago, Bush
stated that the "science is still out" on global warming. However, at a May 12
news conference he acknowledged "I believe there is global warming. ... The
last time I wasn't certain of the science. I've had some briefings recently and
I'm becoming more convinced that the science proves there's global warming."
In a subsequent (May 20) article, business groups expressed puzzlement and
alarm about Bush's comments. For example, Texas Citizen for a Sound
Economy, which has fought curbs on greenhouse gases, noted that Bush's
statement "has sent a bit of shock wave through the community; it is a wakeup
call that many of us need to visit with the governor."
5.) Labor/Environmentalists Issue Joint Climate Statement:
Following a two-day meeting among more than 60 trade union leaders and
environmental CEO's (including several members of the Sustainable Energy
Coalition), the following joint statement was issued on April 15 by the AFL-CIO
and the Sierra Club: "The transition in the global energy economy is threatening
both workers' rights and the climate. We commit ourselves to crafting together
a package of worker friendly domestic carbon emissions reduction measures."
6.) Fuel Group Criticizes Municipal Utilities' Climate Views:
A resolution approved May 5 by the Western Fuels Association's Board of
Directors praised the National Rural Electric Cooperative Association for its
support of the anti-Kyoto Byrd-Hagel resolution and Senator Murkowski's
"Energy & Climate Policy Act of 1999." However, the resolution went on to "call
upon [the American Public Power Association which represents the nation's municipal electric utilities] to rededicate itself to its
historic commitment to the well-being of electric consumers by recognizing the
importance of coal-fired electricity and by joining NRECA and Western Fuels in
defense of coal-fired electric generation." The resolution was apparently
prompted by APPA's position of neutrality vis-a-vis the Kyoto Protocol. Let us
know if you would like us to fax you a copy of the resolution.
MISCELLANEOUS
1.) Minnesota Creates Fund to Support Renewables:
The Associated Press (May 20) reports that solar, wind, and other renewable
energy sources will get a significant boost in Minnesota from a new
multimillion-dollar fund. In 1994, the state legislature required Northern States
Power to place $500,000 per year in a renewable energy development fund
beginning this year for each cask loaded with radioactive waste stored at its
Prairie Island nuclear plant. The utility now has nine casks full of waste but
NSP plans to add about two casks each year until it reaches the maximum of
17 allowed by the legislature. That would mean the utility would be contributing
$8.5 million per year to the fund by 2003. The annual payments would continue
indefinitely until either the law is changed or the casks can be shipped to a
national nuclear-waste storage or disposal site.
2.) Utility To Remove Dams To Save Salmon:
A 2-page, May 18 news release from the Emerald People's Utility District in Eugene, Oregon
reports that the municipal utility's Board of Directors voted to support partial
removal of the four federal dams on the Lower Snake River, in Idaho in order to
restore endangered salmon runs. The utility says "restoring salmon is the right
thing to do [and] we can afford to partially remove the four dams." Emerald is
the first electric utility in the country to take this position; it proposes to
replace the lost electric generating capacity "with clean, renewable generating
resources and with cost-effective energy conservation." For details, call Alan
Zelenka (Emerald PUD) at 541-744-7464.
3.) Senate Delays Action on Nuclear Waste Bill:
"Environment & Energy Weekly" (May 20) reports that the Senate Energy &
Natural Resources Committee has decided to put off mark-up of high-level
nuclear waste legislation S.608, which was to take place this week, until after
the Memorial Day recess. Reuters (May 19) reports that a compromise being
floated in the committee would have the DOE take title to the waste and build
temporary storage at individual power plants. That would create some 40
"interim" sites until a permanent repository is constructed at Yucca Mountain
(NV). In the meantime, Public Citizen has issued a new 4-page "action alert" on
the issue which can be found at
4.) Governor Bush Opposes Expansion of Nuclear Waste Dump:
A 2-page article in the Austin "American-Statesman" (May 20) reports that
Texas Governor George W. Bush has expressed serious concerns about
proposed legislation that would allow the private sector to bring in vast amounts
of low-level radioactive waste for disposal in the state. He said he does not
want the state to be a "dumping ground" for such waste. The article observes
that "Bush's comments suggest a heightened attention to environmental policy,
which generally has not been a top priority for the Republican governor." Bush
also said he supports a legislative proposal to require older power plants to
reduce emissions of air pollutants. He praised the state park system, He
described cleaner air as his biggest environmental achievement -- a claim
disputed by state environmental groups. He called global warming a concern for
society. And he declared that environmental issues would be "incredibly
important" in the next century. Let us know if you would like us to fax you a
copy of the article.
5.) NRC Ready to Approve New Nuclear Reactor Design:
Reuters (May 14) reports that the Nuclear Regulatory Commission is expected
to publish in the "Federal Register" this week its proposed certification for a 15-
year period of the Westinghouse Electric Company's new nuclear reactor
design. Westinghouse says its AP600 nuclear power reactor would be capable
of producing 600 MW of electricity and is designed to have a 60-year operating
life; it could be built faster than existing plants -- usually within three to four
years. Comments and requests by interested parties for an informal NRC
hearing on the reactor's design will be due within 75 days. NRC staff approved
the plant's design last September and full commission approval is the last
hurdle the reactor must clear.
6.) Nuclear Utility's Picnic Makes Workers Sick:
The "Chicago Tribune" (May 12) reports that ComEd threw a big picnic lunch
the day before to thank its workers for getting the bugs out of its LaSalle
nuclear power plant. However, by nightfall, 170 employees were sick with food
poisoning. Curiously, ComEd's top executives ate the same food but were not
stricken. The outbreak was so severe that inspectors for the Nuclear
Regulatory Commission were flipping through their safety manuals to see if the
outbreak qualified as a "reportable event" under federal law. The food poisoning
was eventually reported to the Centers for Disease Control and the LaSalle
County Health Department.
7.) Effort Uncovered to Improperly Ship Nuclear Fuel Overseas:
A 5-page news release from the Safe Energy Communications Council reveals
that the owners of the decommissioned Maine Yankee nuclear reactor were
engaged during 1998 in secret negotiations to ship the plant's irradiated fuel to
Britain. British government policy states that the use of reprocessing in the
United Kingdom by foreign utilities to shift or defer their problems with nuclear
waste storage is absolutely forbidden.
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