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June 20, 1999
Contents
FEDERAL ENERGY BUDGET
1.) Jeffords Amendment to Increase Renewabl Energy Funding Fails
2.) Senate Expected to Vote on Energy Efficiency Budget
ELECTRIC UTILITY RESTRUCTURING
1.) Public Power Group Likes Markey-Largent Bill
2.) Report Warns Against Holding Company Profiteering
3.) Attorneys General Offer Definition of Renewable Energy
CLIMATE CHANGE
1.) House Committee Approves Rider to Freeze CAFE Standards
2.) Administration Proposes to Postpone Kyoto Protocol Meeting
3.) Republican National Committee Lampoons Gore on Climate
4.) Study Looks at International Options to Reduce CO2 Emissions
5.) Oregon Builds New Generation Low-CO2 Electric Plant
6.) Michigan Legislature Approves Anti-Kyoto Resolution
MISCELLANEOUS
1.) Landfill Gas Fuels Ethanol Plant
2.) New Technologies Offers Options for Hydro Retrofit
3.) Senate Committee Approves Nuclear Waste Compromise
4.) NRC Reduces Nuclear Power Plants' User Fees
FEDERAL ENERGY BUDGET
1.) Jeffords Amendment to Increase Renewabl Energy Funding Fails:
The amendment offered by Senator Jim Jeffords (R-VT) and William Roth (R-DE) to add $70 million to the U.S. Department of Energy's (DOE) Fiscal Year 2000 renewable energy budget never made it to the Senate floor for a vote on the merits. Instead it was tabled on a technical, procedural vote stemming from a violation of a budget point of order. The final vote was 39 (NO) - 60 (YES). From the Sustainable Energy Coalition's point of view, the correct vote was a "NO" vote. Senate Energy Efficiency and Renewable Energy Caucus Chairman Wayne Allard (R-CO) as well as Minority Leader Tom Daschle (D-SD) voted YES on the motion (i.e., they voted the wrong way.
Although he spoke in favor of the amendment itself, Allard voted against it on the procedural vote. Allard's office (as well as others) said when it came to a vote against the ruling of the Chair rather than on an issue, they could not oppose the Chair. Many others (including Daschle) had too much riding on the water projects and other parts of the bill to send it back to Committee which a NO vote would have done.
The final vote tally was as follows:
YES: Abraham, Frist, McConnell, Allard, Gorton, Mikulski, Ashcroft, Graham, Moynihan, Baucus, Gramm, Murkowski, Bennett, Hatch, Nickles, Bond, Helms, Reid, Breaux, Hollings, Robb, Bunning, Hutchinson, Roberts, Burns, Hutchison, Santorum, Byrd, Inhofe, Sarbanes, Campbell, Inouye, Sessions, Cochran, Kerrey, Shelby, Coverdell, Kohl, Smith (NH), Craig, Kyl, Specter, Crapo, Landrieu, Stevens, Daschle, Lautenberg, Thomas, DeWine, Lincoln, Thompson, Domenici, Lott, Thurmond, Edwards, Mack, Torricelli, Enzi, McCain, Voinovich
NO: Akaka, Durbin, Levin, Bayh, Feingold, Lieberman, Biden, Feinstein, Lugar, Bingaman, Fitzgerald, Murray, Boxer, Grams, Reed, Brownback, Grassley, Rockefeller, Bryan, Gregg, Roth, Chafee, Hagel, Schumer, Cleland, Jeffords, Smith (OR), Collins, Johnson, Snowe, Conrad, Kennedy, Warner, Dodd, Kerry, Wellstone, Dorgan, Leahy, Wyden
NOT VOTING: Harkin
2.) Senate Expected to Vote on Energy Efficiency Budget:
The Senate Interior Appropriations Subcommittee intends to markup its FY'00 spending bill (which includes funding for DOE's energy efficiency and fossil fuel programs) on Tuesday, June 22, which implies full committee on Thursday. Subcommittee allocation is several hundred million below last year, which is much better than House side. It remains doubtful the House subcommittee will try to move a bill.
ELECTRIC UTILITY RESTRUCTURING
1.) Public Power Group Likes Markey-Largent Bill:
Reuters (June 10) and "Public Power News" (June 14) report that the American Public Power Association is "extremely pleased" that the Markey- Largent utility restructuring bill incorporates the language of the Bond Fairness and Protection Act (BFPA), which APPA has endorsed. BFPA would protect the tax-exempt status of a community's outstanding power bonds if its public utility elects, on a permanent basis, not to issue future debt for new electricity generating facilities. On this issue, APPA "believe[s] the Largent-Markey bill is a significant step in the right direction." Less popular with APPA is the Clinton Administration bill which would grandfather outstanding power bonds and permit tax-exempt financing of distribution facilities, but not of transmission and generation plants.
2.) Report Warns Against Holding Company Profiteering:
Public Citizen has released a report, "Money Harvest: Utility Holding Companies Are Threshing Ratepayers," which argues that "utility holding companies are expanding their global empires through a massive wave of mergers and acquisitions, which increase electricity rates for consumers, eliminate potential competitors, result in the lost of thousands of jobs, and usually make shareholders worse off, while utility managers and Wall Street bankers become enriched by bonuses and commissions." The report can be found at https://www.citizen.org/CMEP/whatsnew.html.
3.) Attorneys General Offer Definition of Renewable Energy:
A 2-page article from the Environment News Service (June 9) reports that the National Association of U.S. Attorneys General are discussing a draft "Environmental Marketing Guidelines for Electricity." The draft guidelines define "renewable energy" as any energy source that is "naturally replenishable" and replenished on some reasonable time scale, including wind, sun, heat from the earth's interior, oceans and rivers, and eligible biomass. The term "biomass" would apply only if it consumes plant matter or animal waste that is naturally replenished on a reasonable time scale. Municipal solid waste would not qualify as biomass because it has a significant component of non-renewable material. The guidelines also note that renewable resources can have a significant environmental impact so the document warns that the term is not equitable with "green" or "clean" or similar terms, and that care must be taken to avoid overstating the environmental importance of renewability.
CLIMATE CHANGE
1.) House Committee Approves Rider to Freeze CAFE Standards:
On June 9, the House Appropriations Committee approved a transportation spending bill (H.R. 2084) for fiscal year 2000. The bill includes language blocking an increase in fuel-efficiency standards (known as CAFE standards) for automobiles. Raising these standards, which have not been improved in the past 15 years, offers one of the nation's best options for reducing greenhouse-gas pollution.
2.) Administration Proposes to Postpone Kyoto Protocol Meeting:
The "Wall Street Journal" (June 14) reports that the Clinton Administration is trying to postpone an international convention to complete details on the Kyoto Protocol from October 2000 until 2001. That would give the next administration the final say on the treaty. Among the unsettled issues are how much a nation might use emissions trading to avoid making sharp cuts in domestic emissions of greenhouse gases; the U.S. wants unlimited trading in emissions credits while the European Union wants strict limits.
3.) Republican National Committee Lampoons Gore on Climate:
A mailing recently sent by the Republican National Committee to its activists outlined suggested party activities to sarcastically acknowledge Vice President Al Gore's presidential campaign kick-off. They include: "Turn the air conditioning on low to combat global warming. ... Send party invitations on pink paper to signify the pink slips they might receive if Gore was elected and his Kyoto Treaty was ratified."
4.) Study Looks at International Options to Reduce CO2 Emissions:
PRNewswire (June 16) reports that a new study, "Developing Countries and Global Climate Change," conducted by RAND for the Pew Center on Global Climate Change concludes that developing countries can reduce emissions from power generation while maintaining or improving economic growth. It assesses the $68 billion likely to be invested annually in new generation capacity and says that "business as usual" trends would nearly triple CO2 emissions within 20 years. However, increasing the use of natural gas and renewable could reduce CO2 emissions by almost 25% with the same economic benefits while increasing the efficiency of electricity supply and demand could reduce CO2 emissions by up to 10%. The report can be found at https://www.pewclimate.org.
5.) Oregon Builds New Generation Low-CO2 Electric Plant:
The "Oregonian" (June 11) reports that in response to a 1997 state law that requires new power plants to minimize CO2 emissions, a new $300 million, 484-MW natural gas plant being built in Klamath Falls, Oregon will be markedly cleaner than most fossil fuel plants. A typical utility thermal power plant operates at about 35% efficient but this plant will operate at 62% overall efficiency. As part of an effort to reduce the net effect of the plant's actual emissions by nearly 30%, it will cogenerate steam as part of the power production process to replace steam generated from wood and oil-fired boilers at the nearby Collins Products wood panel plant. The project will also invest $100,00 to help develop geothermal energy in Klamath Falls as well as $500,000 internationally to develop solar energy and $1 million nationally to try to capture and reuse methane. In addition, the project will invest $1.3 million in the Oregon Climate Trust which will invest in alternative energy and other projects that reduce greenhouse gas emissions. Let us know if you would like us to fax you a copy of the 3-page article.
6.) Michigan Legislature Approves Anti-Kyoto Resolution:
PRNewswire (June 8) reports that the Michigan House of Representatives has approved a resolution, H.R.98, by a vote of 67-37 urging the U.S. Senate to not ratify the Kyoto Protocol. The measure stated that more research is needed and that climate change action should be affordable and effective. Reportedly, among the groups supporting the measure were the Michigan Farm Bureau, Michigan Chamber of Commerce, the AFL-CIO Executive Council, the United Mine Workers of America, and the National Black Caucus of State Legislatures.
MISCELLANEOUS
1.) Landfill Gas Fuels Ethanol Plant:
PRNewswire (June 11) reports that DTE Biomass Energy and its partner, Landfill Energy Systems of Novi, Michigan are delivering landfill gas collected from a Wichita, KS landfill through an 11-mile pipeline to a High Plains Corp. facility in Colwich, KS. High Plains will use the gas under a long-term contract to make steam at its ethanol processing plant which produces approximately 20 million gallons of ethanol per year. In 1998, DTE Biomass Energy collected 15 billion cubic feet of landfill gas, which is 50% methane and 50% CO2. The well field, boiler conversion, and pipeline project cost more than $5.5 million. The Wichita project is DTE Biomass Energy's 20th landfill gas-to-energy project. Let us know if you would like us to fax you a copy of the 1-page article.
2.) New Technologies Offers Options for Hydro Retrofit:
The Associated Press (June 16) reports that Universal Electric Power Corporation, a company based in Akron, Ohio, has applied for permits from the Federal Energy Regulatory Commission to study more than 100 dams in the United States for retrofit with a new hydropower technology. Rather than the traditionally expensive methods of dam building and underwater turbine construction, the company's turbines rest above the water, either on the riverbanks or on the dams themselves. Water runs into the turbine through a pipe which siphons water on the low side of the dam. The construction of the new turbines takes four to eight weeks while other hydro plants have taken anywhere from one to five years to build. The company notes that since the 1880s, about 75,000 dams have been constructed in the United States but only 2,300 generate electricity.
3.) Senate Committee Approves Nuclear Waste Compromise:
The Associated Press (June 16) reports that by a 14-6 vote, the Senate Energy and Natural Resources Committee approved legislation to keep nuclear waste at the nation's nuclear reactors with the federal government taking ownership of the waste. The measure effectively drops proposals promoted by Republicans for the past five years to build an "interim" storage facility at Yucca Mountain and would have nuclear utilities drop lawsuits against the Department of Energy for failing to take the waste. However, it envisions shipping the waste to a pemanent storage facility at Yucca Mountain as soon as 2007 rather than the current date of 2010 or later (or never). Moreover, the bill would strip the EPA of authority to regulate radiation exposure levels at the Yucca site and instead give it to the Nuclear Regulatory Commission -- a position opposed by the White House.
4.) NRC Reduces Nuclear Power Plants' User Fees:
Reuters (June 8) reports that the Nuclear Regulatory Commission was lowering the annual fee it charges utilities for each electricity- generating nuclear reactor the utilities operate by $200,000. The agency has set the revised fee at $2,776,000 per reactor which includes a new $206,000 levy to cover decommissioning costs. Fees collected from the 104 nuclear reactors operating in the U.S. should bring in about $288.7 million; the balance of the NRC's current $450 million budget comes partly from license fees levied on research reactors at universities and from facilities which manufacture fuel for nuclear reactors.
Contents
FEDERAL ENERGY BUDGET
1.) Renewables Budget at Stake as Senate Prepares to Vote on Appropriations Bill
2.) Senators Allard and Bingaman Express Support for Renewables
3.) Republicans Outline Appropriations Strategy
ELECTRIC UTILITY RESTRUCTURING
1.) Congress May Begin to Move Restructuring Legislation
2.) Chamber of Commerce Takes a Stand on Federal Deregulation Bill
3.) Study Says Deregulation Makes Hydro Environmental Problems Worse
4.) Heat Leads to Electricity Price Spikes
5.) Illinois Establishes Clean Energy Fund
6.) California's Right-to-Know Provisions Put at Risk
CLIMATE CHANGE
1.) Study Finds Warming Climate Adversely Affecting Marine Life
2.) Climate Change Causing Warm, Wet Winters and More Hurricanes
3.) Study Finds an Increase in Voluntary Industry CO2 Reporting
4.) Polls Suggest that Public Interest in Climate Issues Is Waning
MISCELLANEOUS
1.) Y2K Concerns Increase Windmill Sales
2.) Future Is Brighter Ten Years After Rancho Seco Shutdown
3.) Public Overwhelmingly Favors Cleaner SUV's
4.) Landfill Gas Plant Opens in Washington State
FEDERAL ENERGY BUDGET
1.) Renewables Budget at Stake as Senate Prepares to Vote on Appropriations Bill:
Senator Jim Jeffords' (R-VT) office reports that Senator Lott asked unanimous consent to move to the Energy and Water Appropriations bill on Monday (June 14) at 1:00pm, and asked for a vote on final passage at 5:30pm. Senators Jeffords, Roth, Allard and others will offer an amendment to bring the renewables account closer to the administration request. Reportedly, the amendment would add $70-$80 million to the Department of Energy's renewable energy budget for Fiscal Year 2000; the offsets for the amendment have not been revealed yet. A vote on the amendment may not occur until Tuesday - June 15. On June 7, the League of Conservation Voters sent a letter to the members of the Senate urging them to support the amendment noting that it is "essential to maintain and expand support for the nation's sustainable energy programs" and that it would "consider including upcoming votes on the Energy and Water Appropriations bill in the 1999 LCV "Scorecard." Let us know if you would like us to fax you a copy of the letter.
2.) Senators Allard and Bingaman Express Support for Renewables:
A copy of a 1-page "Dear Colleague" letter sent June 8 by Senators Wayne Allard (R- CO) and Jeff Bingaman (D-NM) notes "the huge contribution that renewable energy technologies can make -- and are already making -- to our national security ... because no foreign crisis can stop the sun from shining, the wind from blowing, or the earth from producing geothermal heat." Let us know if you would like us to fax you a copy.
3.) Republicans Outline Appropriations Strategy:
An article in "CQ Daily Monitor" (June 9) notes that the House Republican leadership's new appropriations strategy consists of trimming some of the first spending bills to reach the floor and add funding to more difficult bills to be debated later this summer. They hope to find at least $7 billion among the funds allocated for agriculture, transportation, defense, and other programs in FY'00 and by tapping other sources including unspent FY'99 defense funds. They also plan to generate more than $2 billion by accelerating the sale of additional broadcast spectrum. The money will then be shifted into domestic spending bills that were thought to have no chance of passing under the discretionary spending allocations handed out by the Appropriations Committee last month.
ELECTRIC UTILITY RESTRUCTURING
1.) Congress May Begin to Move Restructuring Legislation:
Reuters (June 9) reports that backers of the Largent-Markey bill say they hope to have the legislation out of the committee review process before the first of August, and on the House floor for consideration in the autumn. In the Senate, a spokesperson for Senator Frank Murkowski (R-AK) said there are tentative plans to schedule a pair of power market restructuring hearings before the Senate July 4 recess begins. The Clinton Administration's proposal may be used as mark-up vehicle in the Senate.
2.) Chamber of Commerce Takes a Stand on Federal Deregulation Bill:
Reuters (June 9) reports that the U.S. Chamber of Commerce's board of directors has backed a state-by-state approach to deregulation coupled with just limited federal action such as repealing the Public Utility Holding Company Act and parts of the Public Utility Regulatory Policies Act. Earlier the "National Journal" (June 8) reported that four key House Republicans tried to stop the group from adopting an official policy position opposing federal legislation to deregulate the electricity market. Reps. Tom DeLay, Dick Armey, Tom Blilely, and Joe Barton asked the Chamber to support approval of a GOP deregulation bill.
3.) Study Says Deregulation Makes Hydro Environmental Problems Worse:
Public Citizen has issued a new study, "Dammed Deregulation: How Deregulation of the Electric Power Industry Could Affect the Nation's Rivers," which argues that "the deregulation of the electric power industry represents a new threat to the health of rivers because of the changing ownership and operation of hydroelectric dams." It suggests that "in a deregulated market, in which utility profits are not guaranteed, there will be enormous pressure to cut corners and operate these hydroelectric plants solely for profit. ... Because electricity deregulation is forcing power plant operators to reduce costs, dam owners may cut back on maintenance or abandon operating procedures that lessen impacts to the environment." The report can be found at https://www.citizen.org/CMEP/what'snew.html.
4.) Heat Leads to Electricity Price Spikes:
The "Boston Globe" (June 8) reports that in response to the summer heat wave, prices asked by electricity generators soared to 25-30 times their normal spring afternoon levels reaching $903 and late $999 for a megawatt-hour. Last Friday, the clearing prices for the same hours were just $26 to $33. Generators may not receive these prices because regulations governing the new power market include strict antigouging provisions. The article notes that "the price spike provided a dramatic illustration of the changed new world of Massachusetts power generation." Let us know if you want us to fax you the 3-page article.
5.) Illinois Establishes Clean Energy Fund:
"Wind Energy Weekly" (June 2) and the "Chicago Sun-Times" (June 11) report that the Illinois state legislature has approved a new $250 million Illinois Clean Energy Community Trust. The funds are part of a package that permits Commonwealth Edison to sell six of its coal-fired plants to California-based Mission Energy which will provide a $3.5 billion profit for ComEd. Financial support from the fund will be provided to eligible public or private entites within the state including stae and local governments, educational institutions, corporations, and charitable, educational, environmental, and community organizations. About $200 million is designated for renewable energy and natural resources preservation projects. Up to $50 million will be earmarked for clean coal programs while the state's Consumer Utility Board will receive $1 million a year for seven years.
6.) California's Right-to-Know Provisions Put at Risk:
In a filing with the California PUC, the state's utilities noted that they want to be permanently relieved of their responsibility to provide information to customers on powerplant emissions, which was suspended by the California PUC because no one collected that data. They claim that neither the Cal-ISO nor the Cal-PX, nor the California Energy Commission collect any of this data, that none of these agencies have any intention of collecting these data, and that none of these agencies are required to collect these data. Their claim is backed up by a stack of letters from all three of these agencies, in which each agency claims that it has no responsibility to do this work and suggests that perhaps another agency might be collecting these data. If you want a faxed copy of this material, e-mail ron@jbsenergy.com and include your fax number in the E-Mail.
CLIMATE CHANGE
1.) Study Finds Warming Climate Adversely Affecting Marine Life:
A new report, "Turning Up the Heat: How Global Warming Threatens Life in the Sea" by the World Wildlife Fund and Marine Conservation Biology Institute reports that ocean temperatures have been rising steadily in many areas of the globe for as long as 60 years, increasing as much as 2-3 degrees F in some places. As a consequence, wide-spread changes are occurring across the marine food chain, from plankton, to coral reefs, to marine animals including penguins, other seabirds, and polar bears, to fisheries (including drastic declines in western Alaska's Pacific salmon populations) on which humans depend. Details can be found at https://www.worldwildlife.org. A corresponding Associated Press report (June 8) notes that rising ocean temperatures are threatening to push salmon out of their Pacific Ocean habitat. For example, salmon returning to swim up the Fraser River in British Columbia have been fewer in number and much smaller than in years past; the in-river mortality rate among salmon returning to spawn soared to 76% in 1997.
2.) Climate Change Causing Warm, Wet Winters and More Hurricanes:
The current issue of "Nature Magazine" notes that Columbia University researchers conclude that warm, wet winters during recent decades in the Northern Hemisphere can be explained by the influence of greenhouse gases on atmospheric winds. It notes that during the last 35 years, temperatures have risen by 7-10 degrees F over vast regions of northern Eurasia and North America. Separately, Environmental Network News (June 8) reports that the 1999 Atlantic hurrican season, which began on June 1 and runs through November, will be similar to last year's -- the most costly hurricane season on record. Last year, there were 14 tropical storms, 10 hurricanes, and three intense hurricanes. The Atlantic Ocean is viewed as more conducive to hurricane formation as sea surface temperatures have risen.
3.) Study Finds an Increase in Voluntary Industry CO2 Reporting:
A new EIA report, "Voluntary Reporting of Greenhouse Gases 1997" notes that more than 150 participants reported 1,229 individual projects that reduced or offset emissions by a reported 166 million metric tons of CO2 equivalent, which is an increase of 7% over the total reductions reported for 1996. Electric utilities continued to be major participants in the program, with 111 electric utilities, including nearly all of the largest U.S. generating utilities, filing reports. The full report can be found at https://www.eia.doe.gov/oiaf/1605/vr98rpt/front.html.
4.) Polls Suggest that Public Interest in Climate Issues Is Waning:
Associated Press (June 2) reports that the American Geophysical Union has released a review conducted by Public Agenda of public opinion surveys. It concludes that Americans are so discouraged by the difficulty of solving the Earth's environmental problems that they have begun losing interest. For example, in 1989, 51% of Americans said they worried a great deal about damage to the ozone layer, and 35% felt the same way about global warming. In 1997, those numbers dropped to 40% and 24%. The article notes that many people blame global warming on greed and selfishness of consumers and polluters -- a trend they view as irreversible; they doubt that nations or their citizens are willing to change their behavior or work together on solutions.
MISCELLANEOUS
1.) Y2K Concerns Increase Windmill Sales:
Comparable to the experience with solar sales (noted in an earlier "Weekly Update"), Y2K fears are stirring up a surge in small windmill sales according to an article in the "Detroit Free Press" (June 6). Most of the windmills are small units used to pump water on farms and ranches or to power a small generator. AWEA estimates that there are 30,000 or so of these individually owned windmills, which cost $5,000+ per unit, in operation. But the number is growing rapidly as 1999 breezes toward 2000. Let us know if you would like us to fax you a copy of the article.
2.) Future Is Brighter Ten Years After Rancho Seco Shutdown:
A 4-page article in the "Sacramento Bee" (June 6) notes that it has been ten years since voters in Sacramento, CA voted by a slim margin to shut down the Rancho Seco nuclear power plant. The article notes: "It may have been one of the smartest moves Sacramentans ever made. ... A decade later, the Sacramento Municipal Utility District has lower rates, lower debts and better prospects than it could have achieved even with a smoothly running Rancho Seco." Let us know if you would like us to fax you a copy.
3.) Public Overwhelmingly Favors Cleaner SUV's:
A new survey, conducted May 20-24 by Lake, Snell, Perry & Associates, has been released by the American Lung Association. It reveals that Americans strongly favor placing stronger air pollution standards on SUVs. Even owners of SUVs and minivans agree their vehicles should meet the same strict standards as passenger cars. The breakdown is 85% agree, including 69% strongly agree, for SUV owners and 83% agree, including 70% strongly agree for minivan owners. In addition, the survey found that 83% of respondents are willing to pay up to 2 cents more per gallon of gasoline if it would produce significantly less pollution; a majority of voters (51%) are willing to pay up to 5 cents more per gallon for cleaner gasoline.
4.) Landfill Gas Plant Opens in Washington State:
The "Seattle Times" (June 8) reports that the nation's fourth-largest landfill, located in Klickitat County and overlooking the Columbia River, is being tapped as a source of methane gas to generate electricity for consumers served by the Snohomish County Public Utility District. The $12.9 million project started providing electricity last week with an initial capacity of 8.4 MW and could eventually reach 50 MW. About 80% of the methane, a major greenhouse gas, released by the decaying garbage is captured by the power project thereby reducing the amount released to the atmosphere. Let us know if you would like us to fax you a copy of the 6-page article.
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