"WEEKLY UPDATE"
July 25, 1999
Contents
FEDERAL ENERGY BUDGET AND TAXES
1.) House E&W Appropriations Cuts Fission, Increases Fusion
2.) Democratic Tax Bill Drops Climate Change Tax Package
3.) Senate Tax Bill Includes Wind, Biomass Provisions
ELECTRIC UTILITY RESTRUCTURING
1.) Summary Released of Bliley Restructuring Bill
2.) Rep. Kucinich to Introduce Restructuring Bill on July 26
3.) Richardson Outlines Plans to Prevent Blackouts
4.) Restructuring in New Jersey Attracts Few Power Suppliers
CLIMATE CHANGE
1.) Business Roundtable Urges More Efficiency Technologies
FEDERAL ENERGY BUDGET AND TAXES
1.) House E&W Appropriations Cuts Fission, Increases Fusion:
The July 19 issue of "Environment & Energy Weekly" reports that the House
Energy & Water bill (E&W) approved by the House Appropriations
Committee this past week reduced nuclear energy R&D funding to $265.7
million. That is $18.3 million below the FY'99 level and $3.6 million less than
the Administration's request. It includes $5 million for the Nuclear Energy
Plant Optimization program -- the amount requested by the White House --
but shaves $5 million from the $25 million requested for the Nuclear Energy
Research Initiative program. The Senate bill includes the requested amount
for both programs. However, the House bill also provides just $281 million for
the Yucca Mountain nuclear waste program compared to $358 million for
FY'99 and the Senate number of $355 million.
Separately, the July 23 issue of "The American Institute of Physics Bulletin of
Science Policy News" reports that the House Appropriations Committee
mark-up of the E&W bill includes a recommendation of $250 million for
DOE's fusion energy program -- a $27.4 million increase over the amount
provided in the current fiscal year. The Committee also recommended $475.7
million for the inertial fusion program, an increase of $10 million over the
budget request of $465.7 million but $32.3 million less than FY'99. Regarding
the Spallation Neutron Source program, the committee provided $67.9 million,
including $17.9 million (the same amount as the budget request) for
underlying research and development needed to confirm design for this unique
machine and $50 million for construction, a reduction of $146.1 million from
the amount requested.
Finally, at the July 20 House Appropriations Committee markup of the Energy
and Water (E&W) bill, staff report that Rep. Rosa DeLauro (D-CT) spoke
up on behalf of renewables and reserved the right to address the renewables
funding levels on the floor. The bill is slated for a floor vote on Tuesday, July 27.
2.) Democratic Tax Bill Drops Climate Change Tax Package:
Rep. Robert Matsui's (D-CA) office reports that its clean energy tax
proposals (which closely parallel the Administration's climate change tax
initiative) will not be in the House Democratic alternative tax bill, although
Better America Bonds will be. Reportedly, the Administration was pitching
more for the latter than the former.
3.) Senate Tax Bill Includes Wind, Biomass Provisions:
The "Taxpayer Refund Act of 1999" considered by the Senate Finance
Committee this past week includes a five-year extension of the wind and
closed-loop biomass tax credit. The proposal "also would modify the tax
credit to include electricity produced from poultry litter." However, it
originally did not include an expansion of the biomass provision but leaves it
restricted to only "closed-loop" systems which has proven to be unusable to
date by anyone. "Environment & Energy Email Update" (July 22) reports
that the Senate Finance Committee subsequently adopted an amendment from
Sen. Charles Grassley (R-IA) which expands the biomass tax credit. The
credit would now apply to waste material as well as material grown or
produced expressly for burning and energy production. Backers said the
previous "closed loop" arrangement kept the credit from being used since it
was difficult to grow crops solely for energy purposes. Let us know if you
want us to fax you a 1-page description of the original wind/biomass provisions.
ELECTRIC UTILITY RESTRUCTURING
1.) Summary Released of Bliley Restructuring Bill:
A five-page summary of the electricity restructuring bill being prepared by
House Energy & Power Subcommittee chairman Thomas Bliley (R-VA) was
distributed to Republican members of the House Energy & Power
Subcommittee on July 16 by Rep. Ralph Hall (D-TX). It "provides for
[production incentive] payment to owners or operators of qualified renewable
energy facilities for generation from solar, wind, biomass, or geothermal [and]
encourages net metering by requiring utilities to provide net metering service,
within limits established by the States." It also "directs FTC to issue rules
providing for information disclosure, ensuring retail consumers have the
information they need to choose among electric suppliers." It also "protects
the ability of retail consumers in open States to aggregate, ... prospectively
repeals the PURPA mandatory purchase obligation, [and] adds a new
exemption category to [PUHCA] exempting holding companies whose local
distribution company affiliates and subsidiaries provide open access." It also it
"provides that the NRC shall not conduct antitrust reviews of future
applications for licenses for commercial nuclear facilities." Let us know if
you would like us to fax you a copy of the memo.
2.) Rep. Kucinich to Introduce Restructuring Bill on July 26:
Public Citizen reports that Rep. Dennis Kucinich (D-OH) will reintroduced his
electricity deregulation bill on July 26 along with co-sponsors Tammy Baldwin
(D-WI), Luis Gutierrez (D-IL), and Janice Schakowsky (D-IL). Its provisions
include an RPS of 10% non-hydro renewables by 2010 as well as a Public
Benefits Fund supported by a wires charge of 7 mils/kwh. It also requires all
power plants to meet the same strict air pollution standards, requires
electricity suppliers to disclose the environmental impacts of their electricity;
facilitates community choice; and protects consumers from having to pay for
stranded costs.
3.) Richardson Outlines Plans to Prevent Blackouts:
Dow Jones (July 18) and Reuters (July 19) report that DOE Secretary Bill
Richardson has announced a six-point plan to help prevent future major power
outages being caused, in part, by utility deregulation. He plans to convene a
summit among Northeast governors, state public service commissioners, and
utilities to discuss the issue. He is also forming a DOE team to develop
recommendations for avoiding future outages. In addition, DOE will examine
U.S. generating and transmission capacity to assess whether it is sufficient.
Fourth, Richardson will ask DOE staff to develop new standards for
manufacturing air conditioners that use less electricity. Fifth, DOE will work
with the General Services Administration to develop a plan for reducing
electricity use by federal buildings when power supplies are limited.
(Currently, he said, the federal government, the nation's largest user of
electricity, has no general plan for cutting back consumption during
shortages.) Finally, Richardson will work with Congress to ensure research
programs are fully funded that develop new electricity generating and
transmission technologies and to secure passage of federal deregulation
legislation whose delay he believes has led to some of the current power
supply problems. In a separate statement to the Associated Press (July 19)
Richardson said he also wants to signal the need to develop solar, wind,
biomass, and other renewable sources of energy.
4.) Restructuring in New Jersey Attracts Few Power Suppliers:
The "Philadelphia Business Journal" (July 19) reports that energy suppliers
are showing minimal interest in the newly deregulated utility market in New
Jersey. As of late last week, a total of 15 suppliers had applied with the state
Board of Public Utilities for licenses that wold allow them to begin courting
business and residential customers next month in anticipation of selling
electricity in November. By comparison, in Pennsylvania, as many as 50
suppliers were seeking licenses at the same point in the deregulation process.
It notes that energy providers who compete in the state will be required to
ensure that a portion (2.5% in 2000 rising to 6.5% by 2012) of the electricity
supply comes from renewable sources. It suggests the requirement could
diminish profit margins and potentially discourage companies from competing
in the market.
CLIMATE CHANGE
1.) Business Roundtable Urges More Efficiency Technologies:
The "Wall Street Journal" (July 21) and "Environmental News Network"
(July 22) report that the Business Roundtable, which represents chief
executives of more than 200 of the largest U.S. companies, is calling for a
national summit on how business and government might speed the
development and use of energy-efficient devices. These include 80 mpg
automobiles, fuel cells, emerging building technologies such as "smart
windows," aerodynamic technologies to improve the fuel efficiency of
airplanes trains, and ships, fuel made from waste products, and special laser
beams that cut logs and shape textiles. Most would lessen climate change by
generating less CO2 and other gases. However, the group does not believe
the technologies will be in place in time to meet the goal of the Kyoto
Protocol. That, in turn, has prompted some environmental groups such as the
Environmental Defense Fund, to call the Roundtable's stance "hypocritical"
because it opposes the treaty while asking for government aid.
July 18, 1999
Contents
FEDERAL ENERGY BUDGET & TAXES
1.) House Subcommittee Slashes Renewable Energy Budget
2.) Rep.Salmon Circulates Letter Supporting Renewables Funding
3.) House Approves Cuts in Fossil Fuel Funding
4.) House Amendment Restores Weatherization Funding
5.) House Tax Bill Excludes Sustainable Energy Provisions
6.) Senator Grassley Proposes Biomass-Wind Tax Incentives
ELECTRIC UTILITY RESTRUCTURING
1.) Senator Jeffords Introduces Clean Energy Act
2.) Rep. Pallone to Introduce Restructuring Bill This Week
3.) Rep. Kucinich Expected to Reintroduce Restructuring Bill
4.) Rep. Lazio Urges House to Support Renewables in Restructuring
5.) Study Says Restructuring is Worsening Coal Plant Pollution
CLIMATE CHANGE
1.) Conflicting Views Aired on Rate of Climate Change
2.) Study Shows How to Build a Greener SUV
MISCELLANEOUS
1.) Group Says Government Understates Renewable Energy Data
2.) Shell Plans to Open Hydrogen Fuel Cell Stations
FEDERAL ENERGY BUDGET & TAXES
1.) House Subcommittee Slashes Renewable Energy Budget:
The following numbers for the U.S. Department of Energy's (DOE)
renewable energy programs for FY'00 were approved July 15 by the House
Energy & Water (E&W) Appropriations Subcommittee. The bill includes
$326.5 million for DOE's renewable programs -- a decrease of $39.5 million
from FY'99. However, DOE's Office of Science (which many in the
Sustainable Energy Coalition view as being a black hole) gets $47.1 million
leaving the actual renewables level at $279.35 -- $56.65 million below last
year. The full Appropriations Committee mark-up is scheduled for Tuesday, July 20.
[in millions of dollars]
Solar Buildings 1.5
PV 67
CSP 13
Biomass Power 29
Biofuels 41.75
Wind 25
REPI 0
Solar Program Support 2
Intnat'l Solar 3
NREL 1.1
Geothermal 18
Hydrogen 21
Hydropower 2
Renewable Indians 0
Elect Systems
transmission reliability 2.5
HTS 31
energy storage 4.5
EMF 0
Fed Buildings 0
Program Direction 17
TOTAL: 279.35
The Office of Science got the following in renewables:
PV 2.847
Biomass/fuels 26.74
Wind 0.283
Solar Photoconversion 14.26
Hydrogen 2.97
TOTAL: 47.1
2.) Rep.Salmon Circulates Letter Supporting Renewables Funding:
Prior to the E&W Subcommittee vote, Rep. Matt Salmon (R-AZ) circulated a
letter among members of the House to E&W chairman Rep. Ron Packard
and ranking member Rep. Peter Visclosky (D-IN); it parallels a Senate letter
earlier signed by 54 Senators. It urged the appropriators "to consider
supporting increases for renewable energy - solar, wind, biomass, hydrogen,
geothermal, hydropower - research and development programs. The
Administration has proposed increasing funding for renewables by 16% from
$384 million to $446 million." The letter was eventually signed by 74 members
(54-D; 20-R). Salmon's office is adding a cover memo on the letter to the full
Appropriations Committee chair Rep. Don Young (R-AK) and ranking
member Rep. Doug Obey (D-WI) and keeping it open until full committee
mark-up on July 20. Let us know if you would like us to fax you a copy.
3.) House Approves Cuts in Fossil Fuel Funding:
The July 15 issue of "Environment & Energy Mid-Week" reports that Rep.
Bernie Sanders (I-VT) offered an amendment to the House Interior
Appropriations bill that cut fossil energy R&D by $50 million, using the money
to bolster "Payment in Lieu of Taxes" (PILT) funding by $20 million and
reduce the federal deficit by $30 million; the provision cleared by a 248-169
vote. In addition, the House approved Rep. James McGovern's (D-MA)
amendment by a vote of 213-202 to take $29 million from DOE's fossil fuel
R&D program to fund the state-side of the Land & Water Conservation
Fund.
4.) House Amendment Restores Weatherization Funding:
An amendment to the House Interior Appropriations bill offered by Rep.
Bernie Sanders (I-VT) to restore $13 million in funding for the low-cost
weatherization program was approved by a vote of 243-180. However, the
National Association of State Energy Officials reports that the House Interior
Appropriations bill includes a 25% state match requirement for
Weatherization funds. The likely result of such a measure would be that a
number of states would be unable to contribute the resources necessary to
participate in the Weatherization Program. The Senate bill that will be debated
this coming week includes no such match requirement.
5.) House Tax Bill Excludes Sustainable Energy Provisions:
The "Environmental & Energy Email Update" (July 15) reports that the 500+
page tax bill now being marked up by the House Ways & Means Committee
omits the tax credit provisions for wind and biomass energy production
(although they are expected to turn up in the Senate tax package to be
marked up this coming week). Also missing is language close to H.R.1358
which Ways & Means member Bill Thomas (R-CA) introduced to provide
tax credits for improving energy efficiency at new and existing homes.
However, the bill includes a number of tax breaks for the domestic oil and gas
industry including a five-year extension of a depletion allowance for marginal
oil and gas wells as well as pro-nuclear provisions affecting nuclear plant
decommissioning funds. News accounts have indicated that the House
Democrats are putting together an alternative to the Archer Bill that will be
offered on the floor this coming week. However, as of late last week, there
was no assurance that the Matsui Bill (i.e., the Administration's climate tax
package), or indeed, any clean energy incentives, were going to be included in
the Democrats' alternative. This could significantly complicate matters at
further stages in the legislative process if the House Democrats do not include
clean energy in their minimum list of must-have tax provisions.
6.) Senator Grassley Proposes Biomass-Wind Tax Incentives:
The "Congressional Record" (July 12) reports that Senator Grassley has
introduced legislation (along with Sens. Murkowski and Harkin) "to extend
and expand the biomass portion of section 45 [of the Energy Policy Act of
1992] to include technologies such as biomass combustion and cofiring
biomass with coal-fired facilities." Earlier this year, Grassley introduced S.414
to extend the wind energy portion of section 45. The legislation provides tax
credits "for clean combustion of wood waste and similar residues" in "open-
loop" biomass facilities and limits qualifying biomass materials to "organic,
nonhazardous materials" that can be burned "cleanly without any pollution
risk"; it explicitly excludes from qualification for the credit "paper that is
commonly recycled." Let us know if you want us to fax you the 1-page statement.
ELECTRIC UTILITY RESTRUCTURING
1.) Senator Jeffords Introduces Clean Energy Act:
Senator Jim Jeffords (R-VT) held a press conference on July 14 to formally
introduce his Clean Energy Act (S.1369). The bill includes a Renewable
Portfolio Standard (RPS) of 10% renewables by 2010, a nationwide wires
charge to create an "electric benefit fund," net metering and consumer
disclosure provisions, and provisions to close the loophole that allows older,
dirtier coal-fired plants to operate. The bill has seven co-sponsors: Senators
Lieberman, Moynihan, Kerry, Lautenberg, Dodd, and Kennedy.
2.) Rep. Pallone to Introduce Restructuring Bill This Week:
Rep. Frank Pallone (D-NJ) is putting the finishing touches on his own bill
which includes provisions very similar to those in Jeffords' measure although
its RPS calls for 7.5% renewables by 2010. He is planning to introduce his
bill on Tuesday, July 20 at a press conference to be attended by DOE
Secretary Bill Richardson.
3.) Rep. Kucinich Expected to Reintroduce Restructuring Bill:
Public Citizen reports that a bill introduced in 1998 by Rep. Dennis Kucinich
(D-Ohio), which contains strong consumer and environmental protections
should be re-introduced this coming week.
4.) Rep. Lazio Urges House to Support Renewables in Restructuring:
Rep. Rick Lazio (R-NY) is circulating a 'Dear Colleague' letter among the
members of the House of Representatives urging the inclusion of renewables
and efficiency in any restructuring bill. He is allowing a two week timeframe
for getting sign-ons. Rep. Bliley and Barton are now on notice that Lazio, the
Assistant Majority Leader (and member of the House Commerce Committee)
wants renewables and energy efficiency in the mix enough to work for it. Let
us know if you want us to fax you a copy of the 1-page letter.
5.) Study Says Restructuring is Worsening Coal Plant Pollution:
A new report from the U.S. Public Interest Research Group and the
Environmental Working Group finds that reliance on cheaper, coal-burning
power plants by electric utilities because of price competition has substantially
increased air pollution. Specifically, a 16% increase in electricity from 446
coal-burning power plants from 1992 to 1997 produced an additional 755,000
tons of smog-causing nitrogen-oxide emissions annually -- equivalent to the
NOx pollution from 37 million cars. The report, "Up in Smoke: Congress'
Failure to Control Emissions from Coal Power Plants" warns that the problem
will likely worsen as utilities competing in deregulated markets increasingly
rely on older power plants. For details, see .
CLIMATE CHANGE
1.) Conflicting Views Aired on Rate of Climate Change:
The "Christian Science Monitor" (July 15) reports that NASA's Goddard
Institute for Space Studies now being believes that the growth rate of climate
change has declined about 25% since 1980. If the trend continues,
atmospheric CO2, which had been predicted to double by 2050, will not in fact
double until early in the 22nd century. However, a new study, "The Science
of Climate Change: Global and U.S. Perspectives," released by the Pew
Center on Global Climate Change reveals slightly higher rates of warming and
sea level rise than predicted in 1995 by an international group of scientists on
the Intergovernmental Panel on Climate Change. Thus, future changes in
global-mean temperatures will be 2 to 7 times more rapid than those of the
20th century and that rises in sea level will occur at rate 1 to 7 times those of
the 20th century. See details at .
2.) Study Shows How to Build a Greener SUV:
On July 13, the Union of Concerned Scientists has released a new report,
"Greener SUVs: A Blueprint for Cleaner, More Efficient Light Trucks,"
which details how UCS engineers used affordable, existing technology to
design a Ford Explorer that achieves 50% better mileage, pollutes 75% less,
and has a lower total cost. UCS engineers maintained interior and exterior
dimensions but cut the total vehicle weight from 4,146 lbs to 3,524 lbs and
outfitted their fictional vehicle with low-resistance tires, improved
aerodynamics, and a variable valve engine currently not employed in the
Explorer. The UCS Exemplar achieves 28.4 mpg fuel efficiency (compared
to the Explorer XLT's current level of 19.3 mpg) while meeting 2004 car
exhaust standards; adding technology available in the next few years would
boost fuel efficiency to 34.1 mpg. The Alliance of Automobile Manufacturers
has responded that UCS's proposed designed probably would not sell because
the SUVs would have to have smaller engines and lower towing capacity.
The full report and executive summary are available at https://www.ucsusa.org.
MISCELLANEOUS
1.) Group Says Government Understates Renewable Energy Data:
Environmental Network News (July 13) reports that only half of the
renewable energy that is produced and consumed in the U.S. is reflected in
the Energy Information Administration's reports according to the Canadian
Association for Renewable Energy. A lack of consistent historical data
collection prior to 1998 means that an estimated 3.2 quadrillion Btu of
renewable energy from solar, wind, biomass, hydrogen, geothermal, and small
hydro sources is not included in the monthly EIA reports. EIA overviews
themselves note that the Monthly Energy Report charts do not capture about
2.6 quads (as of 1997) annually of renewables -- an amount equal to about
3% of U.S. energy consumption and 4% of its domestic production. See
http:www.eia.doe.gov/pub/energy.overview/monthly.energy/mer1-1.
2.) Shell Plans to Open Hydrogen Fuel Cell Stations:
UPI (July 15) reports that, for the first time, a major oil company has signed a
deal that could pave the way for solid-hydrogen fuel stations to serve
American drivers with fuel-cell vehicles starting in 2004. The deal between
Royal Dutch Shell's Shell Hydrogen unit and Energy Conversion Devices Inc.
is a step toward easy, retail access to hydrogen for the types of fuel-cell
vehicles that are cleaner than fuel-cell cars requiring gasoline. The hydrogen
would be sold as a silver-colored powder and injected into a tank-like device
on vehicles. A prototype station could open by 2001.
|
* * * COMPANIES & PRODUCTS * * * |
|---|
Updated Daily!
| * * * IN-HOUSE RESOURCES * * * |
|---|
