EREN Network News

February 9, 2000

News and Events

• President's Budget Highlights Energy Efficiency, Renewables
• White House Proposes International Clean Energy Initiative
• Organizations Gear Up for Earth Day 2000
• Study: Wind Energy Could Save Iowa Consumers Millions

Site News

• Consortium for Energy Efficiency

• Will the Internet and E-Commerce Affect U.S. Energy Use?

About this Newsletter

News and Events

President's Budget Highlights Energy Efficiency, Renewables
President Clinton sent his budget for fiscal year 2001 to Congress on Monday. The budget increases federal funding for efforts to advance energy efficiency and renewable energy technologies, and also proposes a number of tax incentives for businesses and consumers who put these technologies to work. The President's budget is meant to serve as a starting point for Congressional budget negotiations.

As reported last week, the President is proposing tax credits totaling $9 billion over ten years for the purchase of energy- efficient cars, homes, and appliances, and for the production of wind, solar, and biomass power. The budget also includes $1.4 billion in funding — a 30 percent increase — for DOE's Office of Energy Efficiency and Renewable Energy (EERE), which develops and deploys renewable energy and energy efficiency technologies for buildings, transportation, industry and utilities.

The White House framed these budget proposals in terms of climate change and the need to meet the challenge of global warming. For specific details, see the White House announcements regarding the climate change budget and climate change tax incentives.

For an overall look at the President's budget, see the White House Web site.

DOE also released its requested budget, which includes an 18 percent budget increase for EERE. See the DOE press release (with a link to more details).

To examine the EERE budget request in detail, see the EERE "Budget-In-Brief" on the EREN Web site.

White House Proposes International Clean Energy Initiative
The President's proposed budget includes $200 million — a 105 percent increase — to promote the export of clean energy technologies to developing nations through a new multi-agency initiative. The "Clean Energy for the 21st Century: International Initiative" will encourage the use of clean energy to meet the growth in energy use in developing countries. These new energy markets are projected to total $4 to $5 trillion over the next 20 years, and $15 to $25 trillion over the next 50 years. Energy use in developing countries is expected to account for three-fourths of the increase in global energy use between now and 2050. See the White House announcement.

The International Initiative follows the recommendations of the President's Committee of Advisors on Science & Technology (PCAST) and follow-up studies by a working group from the National Science and Technology Council. See the PCAST report on the White House Web site.

Organizations Gear Up for Earth Day 2000
April 22nd is rapidly approaching, and the preparations for Earth Day 2000 are gaining momentum around the country and around the world. The Alliance to Save Energy (ASE) is doing its part by hosting a Web contest. Entry is simple — just test your energy smarts with a four-question quiz — and the prizes are all energy-efficient Energy Star appliances. See ASE's Earth Day 2000 Web site.

The U.S. Environmental Protection Agency (EPA) is encouraging everyone to make the Energy Star label a part of their celebrations. The EPA has suggestions for using the Energy Star label and its family of energy-efficient products in your community, school, business, and other organizations. See the EPA Web site.

The Earth Day 2000 preparations are being coordinated worldwide by the Earth Day Network, a non-profit organization. This year's theme — "Clean Energy Now!" — focuses on energy efficiency and renewable energy. In the United States, the main event will be the EarthFair 2000 on the Mall in Washington, D.C. Hosted by Leonardo DiCaprio, the event will feature hundreds of clean energy exhibits. To learn about Earth Day 2000 events in the United States and throughout the world, see the Earth Day Network Web site.

The Solar Energy Industries Association (SEIA) is contributing to EarthFair 2000 by holding its annual conference in Washington, D.C., during Earth Day. SOLTECH 2000 will be held just 12 blocks from the Mall, where SEIA will also erect a Solar Exhibition Tent featuring 40 booths plus technology demonstrations. See the SEIA Web site.

Study: Wind Energy Could Save Iowa Consumers Millions
A new study finds that meeting 10 percent of Iowa's electricity needs with wind energy will save Iowa consumers more than $300 million over the next 30 years. The study is based on a proposal to generate 10 percent of Iowa's electricity from wind by 2015. It finds that wind energy would initially raise the average household's electric bill by 10 to 30 cents per month, but from 2015 on, the average electric bill would be lower by an average of 66 cents per month. See the report on the "Wind Power in Iowa" Web site.

Site News

Consortium for Energy Efficiency
Supported primarily by DOE and the U.S. Environmental Protection Agency, the Consortium for Energy Efficiency encourages utilities and other partners to pool their market influence by voluntarily adopting common programs and efficiency specifications. The Web site features information for both consumers and members, including frequently asked questions about energy efficiency and information about energy efficient appliances, as well as member news, factsheets, a library of materials, and a discussion area.

For this and other recent additions see the EREN Web site.

Energy Facts and Tips

Will the Internet and E-Commerce Affect U.S. Energy Use?
Two conflicting portrayals of the Internet's affect on U.S. energy use have caused some confusion lately among energy efficiency professionals. An article in the May 31, 1999, edition of Forbes magazine, titled "Dig More Coal — The PCs are Coming," suggested that there are more than 200 million personal computers (PCs) in use in the United States, and that PCs and Internet equipment are consuming 8 percent of the country's electricity. The article — based on a study by Mark Mills, Senior Fellow at the Competitive Enterprise Institute and Scientific Adviser to the Greening Earth Society — projected that within 10 years, half of the U.S. electricity generation would be powering PCs and Internet equipment.

The opposing view, from a study by Joe Romm of the Center for Energy and Climate Solutions, found that e-commerce is more energy efficient than typical businesses, and suggested that the use of the Internet could drastically lower the projected increase in U.S. energy use over the next 10 years.

Now Jay Hakes, administrator of DOE's Energy Information Administration, has cleared things up a bit. In written testimony presented before a House panel, Hakes noted that the Forbes article had overestimated PC use by a factor of eight. According to Hakes, the article also overestimated the electricity use of computers and Internet equipment, which Hakes said is only about 3 percent of U.S. electricity sales. Based on these lower numbers, Hakes said that it was "unlikely that the Internet will require 30 to 50 percent of the electric grid in the coming years."

On the other hand, Hakes noted that although the Internet offers the potential for businesses to operate more efficiently, "it is too soon to come to any conclusions as to the precise path of electricity use resulting from [the] Internet and Internet-based commerce."

Hakes' testimony was presented February 2nd in a hearing titled, "Kyoto and the Internet: the Energy Implications for the Digital Economy." See his full written testimony, along with testimony from Mark Mills and Joe Romm.

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