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June 27, 1999
Contents
FEDERAL ENERGY BUDGET
1.) Senate Interior Appropriations Bill Slashes Efficiency Funding
2.) House Announces Surprise Mark-up of Interior Bill
3.) Group Proposes Cuts in Energy Department Budget
4.) Heritage Foundation Proposes Cuts in Federal Budget
ELECTRIC UTILITY RESTRUCTURING
1.) Federal Officials Outline Prospects for Restructuring Bill
2.) State Restructuring Laws Provide Boost to Renewable Energy
3.) Restructuring Leads to More Sales of Nuclear Plants
4.) Ohio Approves Restructuring Legislation
CLIMATE CHANGE
1.) Senate Seeks to Block Clinton Energy Efficiency Executive Order
2.) CAFE Rider Looms As Major Climate Change Vote in Senate
3.) Clinton Says Climate Change Affects Salmon Fishing Sites
4.) Rep. McIntosh Seeks to Prohibit Kyoto Protocol Implementation
5.) Red Cross Warns of "Super-Disasters" Due to Climate Change
MISCELLANEOUS
1.) Op-Ed Discusses Environmental Vote on Upcoming Campaign
2.) DOE Announces Goal of 5% of Electricity From Wind by 2020
3.) Pennsylvania to Host Largest Wind Farm in Eastern U.S
4.) City of Austin Ending Energy Efficiency Program
5.) EPA Updates Renewable Energy Web Site
6.) NHA Criticizes Executive Order for Slighting Hydropower
7.) Senate Seeks to Restrict Dam Removal
8.) Germany Continues to Develop Nuclear Phase-out Plans
FEDERAL ENERGY BUDGET
1.) Senate Interior Appropriations Bill Slashes Efficiency Funding:
The "Environmental & Energy Update" (June 24) reports that the Senate Appropriations Committee marked up the $13.9 billion Interior and Related Agencies appropriations bill for FY '00 on June 24, two days after the Interior Subcommittee cleared the measure by voice vote. The $13.9 billion in discretionary funding is slightly higher than its original 302(b) allocation of $13.575 billion. It is also $80 million less than the FY '99 level and about $1.2 billion less than President Clinton's request. The Department of Energy (DOE) registered mixed fortune, with fossil energy R&D getting increased funding and the energy conservation budget taking a fall. The $682.8 million provided by the panel for energy conservation is $8.8 million less than the current level and $154 million below the president's request. The line items are: * building, $268.2 million; * industry, $151 million; * transportation, $207 million; and * federal energy management program, $24.8 million. Fossil energy funding shot up to $391 million, $30 million over the president's request and $6.9 million over the FY '99 level. Included in the mark is: * natural gas, $75.6 million; * fuel cells, $37.6 million; and * oil technology, $56.2 million. The Strategic Petroleum Reserve received the $159 million sought by the administration.
2.) House Announces Surprise Mark-up of Interior Bill:
Contrary to earlier expectations, the House Interior Appropriations Subcommittee has scheduled a meeting for Tuesday, June 29, at 9:00 a.m. to mark up the Interior Appropriations bill which funds DOE's energy efficiency and fossil fuels programs among others. The bill would reduce FY'00 funding by $2.5 billion below FY'99 levels.
3.) Group Proposes Cuts in Energy Department Budget:
Citizens Against Government Waste has issued the latest edition of its "Prime Cuts" report outlining its recommendations for wasteful government programs that should be eliminated. For DOE, it recommends eliminating the Clean Coal Technology Program to save $11 million over five years. Other DOE recommendations include privatizing the Power Marketing Administrations, privatizing the Tennessee Valley Authority, deregulating the electric industry, and eliminating the Appalachian Regional Commission; it claims the five-year savings would be $18 billion, $2.5 billion, $1.3 billion, and $176 million respectively. The full report can be found at https://www.cagw.org/publications.
4.) Heritage Foundation Proposes Cuts in Federal Budget:
The Heritage Foundation published a paper on June 10 entitled, "Crafting a Responsible Budget: The Energy and Water Appropriation". It recommends eliminating all of the Energy Supply line items including all solar and renewables. For details, see https://www.heritage.org/library/backgrounder/bg1292es.html. On the same website, Heritage has done reports on other appropriations bills (e.g., Transportation and Agriculture) indicating which specific programs to eliminate. Coincidentally (??), "Roll Call" (June 21) reports that Rep. Tom DeLay (R-TX) had hired a team of advisors to find "unnecessary" programs in various bills to cut so they can stay under the caps.
ELECTRIC UTILITY RESTRUCTURING
1.) Federal Officials Outline Prospects for Restructuring Bill:
"Public Power Weekly" (June 21) reports that on June 17 House Energy & Power Subcommittee chairman Joe Barton (R-TX) said that he and Rep. Ralph Hall (D-TX), the subcommittee's ranking minority member, will begin to put together a bill next month. Barton further said to look for markup of a comprehensive restructuring bill in July or August. Barton noted that he agrees with many of the Administration's restructuring bill's goals but added that "although in some cases we disagree on the means of getting there, especially with respect to a Renewable Portfolio Standard and a Public Benefits Fund." Reuters (June 17) reports that DOE Secretary Richardson notes that if Congress does not act this year on utility deregulation legislation, the "electoral season may preclude us from acting" in the year 2000, as lawmakers become sidetracked with the congressional and presidential elections.
2.) State Restructuring Laws Provide Boost to Renewable Energy:
A 1-page Union of Concerned Scientists news release (June 18) notes that Texas' new electricity deregulation bill commits the state to developing 2,000 MW of new renewables by 2009, enough to meet the entire needs of 1.2 million homes. Including Texas, states in 1999 have committed to develop 3,100 MW of new renewable power. By 2012, thanks to similar laws passed in the last few years, 6,000 new MW of clean electricity will surge across America, an increase of 37.5%. That's enough to power 4 million homes and reduce pollution equivalent to taking nearly 2.7 million cars off the road. To date, seven states have adopted minimum renewable energy requirements as part of electricity restructuring, adding to three states with pre-restructuring requirements. Ten states have also adopted new renewable energy funds as part of restructuring, totaling about $1.6 billion over the next ten years.
3.) Restructuring Leads to More Sales of Nuclear Plants:
The Associated Press (June 24) reports that Niagara Mohawk Power Corp. and New York State Electric & Gas Corp. are selling their interests in the Nine Mile Point 1 and 2 nuclear reactors to AmerGen, a partnership between British Energy PLC and PECO Energy Co. of Philadelphia. It will pay Niagara Mohawk $71.7 million for Nine Mile-1 as well as $63.6 million for its 41% ownership share of Nine Mile-2; NYSEG will receive $27.9 million for its 18% share of Nine Mile-2. AmerGen also has deals to buy three other nuclear plants: Clinton in Illinois, Vermont Yankee in Vermont, and Three Mile Island-1 in Pennsylvania. AmerGen's goal is to buy about 20 nuclear plants in the next five years.
4.) Ohio Approves Restructuring Legislation:
A 3-page article in the "Columbus Dispatch" (June 17) notes that the Ohio House has approved a utility deregulation bill by a vote of 86-10 following a similar vote last month the Ohio Senate. It would allow Ohioans to shop for electricity as of January 1, 2001 and guarantees a 5% rate reduction in the generation portion of residential customers' electric bills. However, House members rejected an amendment to require use of up to 3% of electricity from renewable sources. A 4-page analysis of the bill by Ohio Partners for Affordable Energy notes that the bill includes provisions for net metering and establishes an Energy Efficiency Revolving Loan Fund capitalized at $100 million over ten years as well as Low-Income Customer Assistance Programs. The bill also authorizes utilities, with approval of the Ohio Public Utilities Commission, to charge customers billions of dollars in transition costs through December 31, 2005; certain expenses could be collected up to 10 years. The bill also allows towns and counties to aggregate their consumers on an opt-out basis. Let us know if you want us to fax you either the article or OPAE's analysis.
CLIMATE CHANGE
1.) Senate Seeks to Block Clinton Energy Efficiency Executive Order:
On June 24, Sen. Thad Cochran (R-MS), inserted language into the Senate Interior Appropriations bill designed to block the implementation of Executive Order 13123, "Greening the Government Through Efficient Energy Management." President Clinton had issued the executive order earlier this month requiring federal agencies to cut their energy use by 30% over the next decade. The bill language (which the Alliance to Save Energy believes was suggested by the Edison Electric Institute) was adopted on a voice vote by members of the Senate Appropriations Committee with only limited opposition from Sen. Slade Gorton (R-WA). It would forbid the use of funds "to study, develop, or implement procedures or policies to establish energy efficiency, energy use or energy acquisition rules or guidelines other than those based upon the provisions of the Energy Conservation Policy Act (EPCA) of 1975." Sen. Cochran indicated in his remarks accompanying its introduction that it was meant to block the implementation of Clinton's executive order, which he described as a "thinly disguised effort to implement the Kyoto Agreement." Describing the vote as "unbelievable," Clinton defended his executive order noting: "This doesn't cost you anything. This saves you money. It's a no- brainer. The only people that lose are the people that won't be pumping electricity to us. But it's an example of what happens when adults with responsibility fall into small-time rankling. And even want to stop things that are 100 percent good and not controversial."
2.) CAFE Rider Looms As Major Climate Change Vote in Senate:
The Sierra Club reports that a showdown is looming on global warming in the U.S. Senate. In each of the last 4 federal budgets, friends of the auto industry have attached stealth "riders" barring the Department of Transportation from even considering stronger CAFE rules. Defeating this rider is the number one global warming priority for many environmental advocates. In the coming weeks, and possibly as early as the week of June 28, Senators Feinstein, Gorton, and Bryan will be offering a resolution urging that this anti-environmental rider be dropped. After years of ducking the issue through anti-environmental riders, the US Senate will soon have an open debate and vote on global warming, and on the pollution from gas guzzling cars and trucks. This may be the most important vote on global warming this year.
3.) Clinton Says Climate Change Affects Salmon Fishing Sites:
An article in the "Anchorage Daily News" (June 19) quoted President Clinton as recently stating: "I can tell you, one of my big problems with our best partner in the world, Canada, is that our salmon fisherman are fighting all the time. You know why? Because all the salmon are moving north, so there are more in Alaska and fewer in Canada, because of climate change." The article editorialized: "If true, that would be hot news. According to scientists, there's no evidence that global warming is causing more salmon to show up in Southeast Alaska waters and fewer to return to British Columbia." However, the "Weekly Update" did include an item about two weeks ago on how climate change is affecting salmon runs and shifting their habitats northward.
4.) Rep. McIntosh Seeks to Prohibit Kyoto Protocol Implementation:
A June 16 Ozone Action news release notes that Rep. David McIntosh (R- IN) introduced the "Small Business, Family Farms and Constitutional Protection Act" (H.R.2221) which aims to prohibit the implementation of the Kyoto Protocol before Senate ratification and to limit EPA's authority to regulate CO2. The release further notes that McIntosh has received hefty contributions from the primary interests concerned with stalling action on global warming, totaling more than $47,000 from big oil, gas, and electric utilities, nearly $30,000 from automotive interests, and another $51,000 from agribusiness PACs. Separately, U.S. News & World Report's 'Washington Whispers' (June 28) reports that McIntosh is "virtually certain to leave the House and run for Hoosier state governor in 2000. The word has shaken up the GOP on Capitol Hill, which is losing a leader of the 1994 'Republican revolution' and a sure seat."
5.) Red Cross Warns of "Super-Disasters" Due to Climate Change:
The Associated Press and Reuters (June 24) report that the International Federation of Red Cross and Red Crescent Societies has issued a "World Disasters Report 1999" warning that the combination of climate change, environmental degradation (e.g., declining soil fertility and deforestation), and rising populations are leading to an era of "super-disasters." Over the last six years, the aid organizations have watched the number of people needing their assistance rise from less than half a million to more than 5 million. Last year's season of natural disasters (e.g., Hurricane Mitch, the Indonesian drought) caused more damage than ever before, claiming 21,000 lives and costing more than $90 billion. However, over the past five years, emergency aid funds have dropped by 40% and many insurance and reinsurance companies have refused to provide coverage in the Caribbean. It further notes that 1 billion people now live in unplanned shantytowns; 40 of the 50 fastest growing cities are at risk of earthquakes; half the world's population live in coastal zones, with 10 million at constant risk of flooding; and some 96% of all deaths from natural disasters are in developing countries. The report, as well as background information including videos, is available at the IFRC web site at https://www.ifrc.org.
MISCELLANEOUS
1.) Op-Ed Discusses Environmental Vote on Upcoming Campaign:
An op-ed in the "Los Angeles Times" (June 20) by Mark Hertsgaard observes that "Vice President Al Gore has long taken the environmental vote for granted, but that may change now that Texas Gov. George W. Bush has decided global warming is real." It adds that "the environmental vote matters in presidential politics [and] the Bush camp apparently plans to make Gore work for it." The piece suggests that "no one can win the presidency who does not at least sound like an environmentalist. ... But what has Gore actually accomplished to the environment these past six years? Unfortunately, not much." It offers, for example, that "Gore did not persuade President Bill Clinton to honor his 1992 campaign pledge to increase the fuel efficiency of U.S. vehicles to 45 mpg, the single strongest measure Clinton could have taken against global warming." Let us know if you would like us to fax you a copy of the 3-page article.
2.) DOE Announces Goal of 5% of Electricity From Wind by 2020:
The Associated Press (June 20) reports that DOE Secretary Richardson has unveiled a Wind Powering America initiative yesterday with a goal of doubling U.S. wind energy capacity by 2005 and then doubling it again to 10,000 MW online by 2010. That is enough electricity to fulfill the annual needs of 3 million households. By 2020, wind energy would be producing 5% of the nation's electricity; the federal government would try to reach 5% of its electricity from wind by 2010 -- a decade ahead of the nation at large. DOE will invest in R&D, encourage codes that are conducive to wind energy, and encourage vocational schools to provide training in the necessary technology.
Members of the Sustainable Energy Coalition have noted that while the growth rate for quadrupling wind capacity between now and 2010 isn't shabby (13.4%/yr on average), it still doesn't get anywhere close to ambitious goals like the Jeffords 10% RPS (which could be met by a combination of technologies, not just wind power). Even assuming no increase in electricity usage and a 33% average capacity factor for wind turbines, 10,000MW of capacity online in 2010 is less than 1% (0.796% to be exact) of electricity production (3628.7 billion kwh). To reach the 5% goal, the American Wind Energy Association notes that about 80,000 MW would have to be installed by 2020. By comparison, wind power already supplies 1% of electricity in Germany and is on track for supplying 10% of electricity in Denmark in the next few years, as a result of strong pro-renewables policies adopted in those countries in the past few years."
3.) Pennsylvania to Host Largest Wind Farm in Eastern U.S.:
Energy Central (June 17) reports that GreenMountain.com has announced plans to build the largest wind facility in the eastern United States. Construction of the 10-MW wind farm, to be located in southwestern Pennsylvania, is scheduled to begin in September with completion targeted for January 2000. American National Wind Power, Inc., an affiliate of National Wind Power of the United Kingdom and American National Power of Houston, Texas will build, own, and operate the wind far, which will consist of 10 to 15 large, three-bladed wind turbines on turbular towers. Each turbine will displace 1,200 tons of CO2 emissions per year; combined, they will produce up to 25,000 MWh annually -- enough to power 2,500 average Pennsylvania households.
4.) City of Austin Ending Energy Efficiency Program:
The "Austin American Statesman" (June 21) reports that officials say Austin Energy Services, a for-profit venture set up by the city-owned utility 18 months ago to sell energy- conservation service contracts, has failed to achieve its goals for reducing electricity demand. They say is has also fallen far short of its projected cash receipts; in the last fiscal year, the venture took in only $11,000 of the $750,000 in cash receipts it was projected to get. And it provided no incentives for local businesses that sell air conditioning and other equipment to participate. Austin Energy officials want to return to a simpler rebate program to encourage its commercial customers to save electricity. Let us know if you would like us to fax you a copy of the 3-page story.
5.) EPA Updates Renewable Energy Web Site:
The U.S. EPA reports that it has updated its web site "about the pollution prevention benefits of using renewable energy." Links are provided to individual pages on solar, wind, geothermal, biomass, and hydropower which, in turn, provide numerous other links. The web site also advises consumers how to obtain electricity from green power marketers and utilities providing green power options. The site can be found at: https://www.epa.gov/solar.
6.) NHA Criticizes Executive Order for Slighting Hydropower:
The National Hydropower Association issued a 2-page news release on June 18 criticizing the Administration's recent FEMP Executive Order because it "sharply curtails federal purchases of electricity generated from hydropower by excluding hydro from a definition of renewable power and by a mandate to establish a criteria to determine 'low environmental impact' hydropower." It adds that "the omission of hydropower from the renewable definition [is] a dangerous precedent that raises considerable concerns regarding the future marketing of hydropower in a restructured environment." An NHA letter to the Administration on the issue is posted at https://www.hydro.org.
7.) Senate Seeks to Restrict Dam Removal:
The "Oregonian" (June 17) reports that the Senate Energy & Water Appropriations bill approved last week included a provision from Senator Slade Gorton (R-WA) which prohibits the Bonneville Power Administration from raising rates to pay for the possible breaching of four dams on the lower Snake River. (An issue reported about three weeks ago in the "Weekly Update.") Gorton opposes efforts to breach the dams -- an idea that government scientists are studying as a way to improve habitat for endangered fish.
8.) Germany Continues to Develop Nuclear Phase-out Plans:
Energy Central (June 19) reports that the German government and the country's electricity industry had agreed upon a rough framework for phasing out the country's 19 nuclear plants. All existing reactors would be phased out by 2024 -- giving each plant an average lifespan of about 34 years. Further, starting in 2004, the nuclear industry would cease treating its radioactive waste abroad but instead store it on site with a permanent storage site to be found by 2020. The power companies would pay out $8.75 billion in taxes over the next ten years to pay for waste treatment and renounce lawsuits against the government to recover lost earnings. However, the German Greens Party subsequently rejected the plan calling the period "unnecessarily long" and is instead pressing for a 5-10 year phase-out period.
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