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August 1, 1999
Contents
FEDERAL ENERGY BUDGET
1.) Some Renewable Energy Funds Restored in House E&W Bill
2.) White House Issues Views & Objections on House E&W Bill
3.) Senate Modifies Cochran Federal Energy Efficiency Amendment
4.) House Committee Cuts U.S. EPA Funds
ELECTRIC UTILITY RESTRUCTURING
1.) Groups Warn Markey They Oppose His Restructuring Bill
2.) Letter Critiques Murkowski's Faulty Facts on Renewable Energy
3.) Factsheets Issued on Jeffords Restructuring Bill
4.) TVA to Promote Renewables Through Green Power Program
5.) New Jersey Defines Garbage as "Renewable" for Electricity
6.) Green Power Market Continues to Grow in California
CLIMATE CHANGE
1.) World Carbon Emissions Drop While Economy Grows
2.) A Few Companies Produce Most of World CO2 Output
MISCELLANEOUS
1.) MTBE Use to Be Cut; Ethanol Offers an Alternative
2.) EPA Urged to Increase Efforts on Renewable Energy
FEDERAL ENERGY BUDGET
1.) Some Renewable Energy Funds Restored in House E&W Bill:
House Energy & Water Appropriations Subcommittee chairman Ron Packard (R-CA) formally accepted an amendment that had been negotiated earlier with Reps. Matt Salmon (R-AZ) and M. Udall (D-CO) to add $30 million to DOE's renewable energy accounts. This would bring the FY'00 renewables budget up to $309.35 million -- down about 8% from the FY'99 actual appropriation of about $336 million. This means the House number is roughly the same as the Senate number of $301.8 million. The Administration had requested a renewables budget of $446 million. The $30 million in add-ons breaks down as follows (the numbers in pararenthsis are the new, revised budget figures):
Solar Buildings $1.31 ($2.81) million Photovoltaics $3.13 (70.13) Concentrating Solar Power $2.41 (15.41) Biomass Power $1.47 (30.47) Biofuels $0.00 (41.75) Wind $5.96 (30.96) REPI $2.61 (2.61) International Solar $1.95 (4.95) NREL $1.70 (2.80) Geothermal $6.31 (24.31) Hydrogen $0.76 (21.76) Hydropower $0.76 (2.76) Electric Systems $0.91 (31.91) Program Direction $0.72 (17.72) Solar Program Support $0.00 (2.00)
2.) White House Issues Views & Objections on House E&W Bill:
A 7-page White House "Statement of Administration Position" (SAP) on the House Energy & Water Appropriations bill notes that "we do not agree with the Committee that because much progress has been made in areas such as wind and geothermal energy, these technologies can be considered to be mature, and funding should therefore be reduced. Full funding at the requested level in these areas will reap significant additional benefits for the public." The White House also opposes the inclusion of the "unnecessary" rider prohibiting implementation of the Kyoto Protocol "because we do intend to implement the Protocol before Senate ratification and do not believe that any current activities would be encompassed by this rider." The White House also opposes the proposed funding reductions for the Spallation Neutron Source program as well as the Yucca Mountain civilian radioactive waste management program. The SAP, however, does not indicate whether the White House would veto the bill if left unchanged. Let us know if you want us to fax you a copy.
3.) Senate Modifies Cochran Federal Energy Efficiency Amendment:
The Associated Press (July 27) reports: "Removed from the [Senate Interior Appropriations] bill were provisions ... blocking new energy efficiency rules for federal agencies ..." This referred to the Cochran amendment which would have blocked the Clinton executive order on energy efficiency in federal buildings. It has now been replaced by new language developed by Sens. Cochran, Murkowski, and Bingaman: "None of the funds appropriated or otherwise made available by this Act may be used to implement or enforce any provision in Presidential Executive Order 13123 regarding the Federal Energy Management Program which circumvents or contradicts any statutes relevant to federal energy use and the measurement thereof, including, but not limited to, the existing statutory mandate that life-cycle cost effective measures be undertaken at federal facilities to save energy and reduce the operational expenditures of the government." It is unclear whether this is an improvement; consequently, member groups of the Sustainable Energy Coalition hope to have the provision dropped altogether in House-Senate conference negotiations.
4.) House Committee Cuts U.S. EPA Funds:
U.S. EPA Administrator Carol Browner issued a statement (July 27) on the House VA/HUD appropriations bill (which funds the EPA) noting that it "robs environmental cops of any basic authority by cutting more than half of the funds for hiring the experts who are critical to investigating and prosecuting enforcement cases. The President's Clean Air Partnership Fund - which would make funds available to cities and states nationwide to solve their air pollution problems locally - has been cut by almost 80 percent, which could affect more than 240 communities nationwide. Funds were cut in half for addressing the challenge of global warming with programs like voluntarily promoting new energy-efficient products that save consumers and businesses money while lowering greenhouse emissions. In addition, we are concerned about anti-environmental riders, including one on climate change which could prevent voluntary activities by businesses to reduce energy costs."
ELECTRIC UTILITY RESTRUCTURING
1.) Groups Warn Markey They Oppose His Restructuring Bill:
In a letter delivered to Rep. Edward Markey (D-MA), eight consumer and sustainable energy policy organizations warned that they were "unable to endorse" and would "find it necessary to actively oppose the approach you propose for restructuring the nation's electric utility industry." The letter was in reference to H.R.2050, the Electric Consumers' Power to Choose Act of 1999, a bill recently introduced by Reps. Markey and Steve Largent (R-OK). The signers noted the absence of any provisions for creating a Public Benefits Fund and the "inadequate" Renewable Portfolio Standard of only 3% by 2005. It also objected to the sparse provisions to protect the environment or to safeguard consumers against "stranded costs." While acknowledging some positive provisions, the groups concluded that "when weighed against the shortcomings, we cannot support the [bill]." Let us know if you would like us to e-mail you a copy.
2.) Letter Critiques Murkowski's Faulty Facts on Renewable Energy:
In a strongly worded letter, Public Citizen, U.S. Public Interest Research Group, American Solar Energy Society, Friends of the Earth, and five other national organizations warned Senator Frank Murkowski (R-AK) that "a disservice is done to everyone when factually erroneous data are publicly and repeatedly recited" about the current contribution of renewable energy to the nation's energy mix. In electric utility restructuring hearings before the Senate Committee on Energy & Natural Resources which he chairs, Murkowski has maintained that renewable energy presently contributes "less than one-tenth of one percent" to the nation's electricity supply. In fact, renewable energy (including hydropower) provides about 13% of the nation's electricity supply. Non-hydro renewables (i.e., wind, solar, geothermal, biomass) account for over 2% of the nation's electricity. When all energy uses are considered (e.g., transportation, space heating, industrial processes as well as electricity), renewable energy now provides about 10% of the nation's domestic energy production -- roughly equal to nuclear power's share. Let us know if you would like us to e-mail you a copy of the letter.
3.) Factsheets Issued on Jeffords Restructuring Bill:
The Union of Concerned Scientists (UCS) has prepared a 1-page factsheet on the Jeffords restructuring bill (S.1369) as well as a 2-page background and summary paper on the same. They can be found at https://www.ucsusa.org; follow the "take action" link. UCS reports that in addition to Jeffords, the following Senators are cosponsors: Lieberman, Dodd, Kennedy, Kerry, Moynihan, Schumer, Lautenberg and Reed.
4.) TVA to Promote Renewables Through Green Power Program:
The Pennsylvania Environmental Network (PEN) reports that the Tennessee Valley Authority, the nation's largest electricity generator, plans to market renewable energy among its eight million customers and, if popular, green energy could be available from its 159 distributors by 2003. It has been developing a green energy program since early 1998 and has committed $6 million toward the construction of eight PV generating stations, at least two windfarms, and one energy-from-waste project. The plants will be on-line by next summer, generating up to 6 MW (representing less than 1% of TVA's 28,000 MW capacity) of renewable energy, sufficient for 15,000 residents. TVA has promoted solar water heaters and passive solar construction in the past but this will be the first time that the company has generated power from renewable sources. PEN's web site is https://www.penweb.org/issues/energy.
5.) New Jersey Defines Garbage as "Renewable" for Electricity:
The "Newark Star-Ledger" (July 25) reports that New Jersey's new utility restructuring law requires power companies to provide at least 2.5% of their electricity with renewable energy sources beginning August 1. However, the state's power companies are apparently planning to rely on existing contracts with the state's five waste-burning incinerators to meet the mandate. This is possible because state lawmakers inserted an amendment defining so-called resource recovery units as renewable energy during a wave of last-minute deal cutting over the energy deregulation bill late last year. Thus, Public Service Electric & Gas, the state's largest electric company, which currently gets 104 MW of electricity from garbage incinerators, and GPU Energy, which gets 45 MW from trash burners, will be able to use waste-to-energy to meet their renewable energy obligations.
6.) Green Power Market Continues to Grow in California:
Business Wire (July 23) reports that California's green power providers are experiencing a new surge of customer enthusiasm. Two companies, GreenMountain.Com and Commonwealth Energy, say they are signing up customers at a record pace. A third, the Sacramento Municipal Utility District, announced plans to buy all the power available from a new green power facility that begins generating in September, in order to meet recent high customer demand. The article notes that, to date, over 90% of California customers who switch electricity providers are receiving green power. California Public Utilities Commission reports reportedly support the marketers' statements showing that customer requests for green power are up almost 90% from earlier in the year. Let us know if you want us to fax you a copy of the 1-page article.
CLIMATE CHANGE
1.) World Carbon Emissions Drop While Economy Grows:
New estimates from the Worldwatch Institute suggest that for the first time since 1993, global emissions of carbon from the combustion of fossil fuels declined last year, falling 0.5% to 6.32 billion tons. This decline in emissions in the face of a world economy that expanded 2.5% in 1998 suggests an accelerated "delinking" of economic expansion from carbon emissions, undercutting arguments that reducing emissions will damage the economy. During the past two years, the global economy has grown by 6.8%, while carbon emissions held steady, leading to an impressive 6.4% decrease in the amount of carbon emissions required to produce $1,000 of income. The full paper can be found at https://www.worldwatch.org.
2.) A Few Companies Produce Most of World CO2 Output:
The Natural Resources Defense Council, Union of Concerned Scientists, and U.S. Public Interest Research Group have released a new report, "Kingpins of Carbon: How Fossil Fuel Producers Contribute to Global Warming." It finds that, in 1997, the world's top 122 producers of coal, oil, and natural gas were responsible for 80% of the world's fossil-fuel carbon emissions. Furthermore, 22% of the world's carbon-based fuels are produced by only 20 private companies. Many of the companies that participated in a 1997, $13 million ad campaign to undermine the Kyoto Protocol talks (e.g., Exxon, Mobil, Chevron, Peabody Coal) each produce fuels that emit more carbon pollution than many developing countries. For example, Shell's yearly carbon production exceeds the combined annual carbon emissions of Mexico, Argentina, and Chile. The report can be found at https://www.nrdc.org.
MISCELLANEOUS
1.) MTBE Use to Be Cut; Ethanol Offers an Alternative:
In a major policy reversal, the U.S. EPA has announced that it would "significantly reduce" the use of methyl tertiary butyl ether (MTBE) as a gasoline additive to reduce air pollution because it can quickly contaminate groundwater. MTBE is used in so-called reformulated gasoline (RFG) in all or parts of 16 states; that accounts for about a third of the gasoline sold in the country. An EPA advisory panel found that MTBE molecules travel unusually fast through soil and into ground water once gasoline gets into the environment; a University of California study showed that the additive has affected at least 10,000 ground-water sites throughout the state. The EPA panel found trace levels of MTBE in 5-10% of the drinking water in areas where reformulated gasoline is sold. In response, the Renewable Fuels Association issued a news release noting that "if ethanol were used more widely in RFG, both air and water would be protected." It added that "with a gradual phase out of MTBE, more than adequate supplies of ethanol would exist to meet the oxygen requirement in a cost effective manner. Several studies have concluded that blending ethanol in RFG as a replacement for MTBE would be more cost-effective than non-oxygenated gasoline."
2.) EPA Urged to Increase Efforts on Renewable Energy:
In a letter delivered to Carol Browner, administrator of the U.S. Environmental Protection Agency, twelve member groups of the Sustainable Energy Coalition urged her to "develop a new organizational unit specifically focused on renewable energy." Noting the agency's mission to address "health and environmental problems including ground-level ozone, acid rain, fine particulate pollution, nitrogen deposition, toxic air pollutants, and global climate change," the letter's signers stressed the role to be played here by renewable energy technologies in "EPA's pollution prevent efforts." Let us know if you would like us to e-mail you a copy of the letter.
Separately, language was inserted into the House appropriations bill for the U.S. EPA which reads: "The Committee strongly encourages EPA's Office of Air and Radiation (OAR) to collaborate with industry to better integrate zero emission technologies such as solar into its programs, competitive solicitations, education, and information dissemination activities. The OAR is requested to respond to the Committee within three months of passage of this Act on how it intends to implement such collaboration."
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