EREN Network News

March 7, 2001

News and Events

• President Bush's Budget Continues Support for Renewables
• Alameda County Jail to Feature 500-kW Solar Power System
• New Wind Power Projects Slated for Iowa and Texas
• New Jersey Approves $358 Million for Efficiency, Renewables
• Governor Davis: California Cut Electricity Use by 8 Percent

• Carbohydrate Economy Clearinghouse

• EPA Keeps Diesel Pollution Rule On Track
• IPCC: Energy Efficiency is Key in Mitigating Climate Change

News and Events

President Bush's Budget Continues Support for Renewables
President Bush addressed a joint session of Congress last week in support of his proposed budget for 2002. Addressing the energy issue, President Bush said, "We can promote alternative energy sources and conservation, and we must." See the text of the President's speech.

On the energy efficiency front, the President's budget "blueprint" proposes increasing the Weatherization Assistance Program funding by $1.4 billion over ten years, essentially doubling the program funding. The blueprint also proposes tax credits for the installation of rooftop solar equipment and an extension of the tax credits for fuel produced from renewable sources.

From roughly 2004 to 2008, the blueprint proposes that renewable energy research and development would be funded by an estimated $1.2 billion in bidding bonuses, generated by oil and gas leases in the Arctic National Wildlife Refuge. Until then, the blueprint proposes "winnowing out those projects that are less promising and focusing on those areas that offer the greatest ability to tap or expand these new sources of energy." See the budget blueprint on the White House Web site.

President Bush also spoke last week at the swearing-in ceremony of Energy Secretary Spencer Abraham, noting that the development of cost-effective alternative energy sources was one prong of a four-part U.S. energy strategy. See President Bush's and Secretary Abraham's comments on the White House Web site.

Alameda County Jail to Feature 500-kW Solar Power System
The Alameda County Board of Supervisors gave its approval in late February for the installation of a 500-kilowatt solar electric system on the roof of the Santa Rita Jail in Dublin, California. The system, to be installed by PowerLight Corporation, will be the largest rooftop solar power system in the United States. Through a combination of the solar power generation, the energy savings from the roof insulation provided by the system, and an upgrade to the jail's air conditioning system, PowerLight expects to cut the jail's energy costs by $190,000 per year, for a total savings of $5.5 million over the next 25 years. See the PowerLight press release.

New Wind Power Projects Slated for Iowa and Texas
The production of wind power in the United States continued to surge ahead last week with the announcement of 215 megawatts of new wind power coming to Iowa and Texas.

Northern Iowa Windpower LLC announced that it has signed an agreement with Interstate Power Company for the purchase of power from an 80-megawatt wind power plant in Worth County, Iowa. The "Top of Iowa Wind Farm" will feature up to 89 NEG Micon wind turbines and will generate enough power for approximately 50,000 households. Construction is planned to start in May, and commercial operation should begin before the end of this year. Northern Iowa Windpower — a joint venture of Zilkha Renewable Energy and Midwest Renewable Energy Corporation (MREC) — plans to eventually double the facility's capacity. See the MREC Web site.

In Texas, Enron Wind announced that it will build a 135-megawatt wind power facility near the town of Iraan in Pecos County. Another Enron Corporation affiliate, Enron Power Marketing, Inc., will buy the power from the project and resell it into the Texas wholesale power market. According to Enron, this will be the first major project to sell wind power on the wholesale market. The project will be completed this year and will consist of 90 Enron Wind 1.5-megawatt turbines. It will generate enough power to supply approximately 50,000 U.S. homes. See the February 28th press release by selecting the "most recent" press releases on the Enron Web site.

The Madison wind project in New York also sells power into the wholesale market, but only after first selling off the environmental attributes separately, through the use of certificates. Individuals and businesses can support wind power by buying the certificates, which pay the added cost of the wind energy; the power is then sold in the power market as if it were coming from a traditional power source. See the PG&E National Energy Group's "Pure Wind" Web site.

New Jersey Approves $358 Million for Efficiency, Renewables
The New Jersey Board of Public Utilities (NJBPU) last week approved a proposal to fund new energy efficiency and renewable energy programs with $358 million over the next three years. The funds will be raised through a surcharge of less than 1 percent for most New Jersey electricity customers. Three quarters of the funds will go toward energy efficiency programs and one quarter will go toward renewable energy programs. The renewable energy programs will include rebates directly to customers who install "clean technologies such as fuel cells, solar electric systems and wind generators in their homes and businesses." See the March 1st press release on the NJBPU Web site.

According to the American Wind Energy Association (AWEA), the new funding levels will more than double the statewide funding for renewable energy and energy efficiency in New Jersey. See the AWEA press release.

Governor Davis: California Cut Electricity Use by 8 Percent
California cut its electricity use by 8 percent in February, reducing electricity demand by 2,578 megawatts, according to Governor Gray Davis. The savings — enough to power more than 2.5 million homes — helped California recover from the tight electricity supplies that persisted for most of the month. However, Governor Davis predicts that Californians will "need to do even better and save at least 10 percent to get through the summer." See the March 3rd press release.

The California Independent System Operator (ISO) — the operator of California's electrical grid — has avoided the Stage Three emergency level (operating reserves below 1.5 percent) since February 16th, but has reached Stage One (reserves "less than minimum") and Stage Two (reserves below 5 percent) emergencies repeatedly over the past week. See the California ISO Notice Log.

Site News

Carbohydrate Economy Clearinghouse
This site provides information on plant matter-based products and the companies and cooperatives producing them. These so-called "bioproducts" can reduce U.S. oil imports by using plant matter to produce chemicals and materials that are currently produced from petroleum. The site includes updates on new developments in the field and a fully searchable database of publications.

For this and other recent additions to the EREN Web site, see http://www.eren.doe.gov/new/whats-new.html.

Energy Facts and Tips

EPA Keeps Diesel Pollution Rule On Track
The U.S. Environmental Protection Agency (EPA) announced last week that it will move forward on schedule with its rule that will cut harmful pollution from diesel trucks and buses by 95 percent beginning in model year 2007. The rule will also lower sulfur levels in diesel fuel beginning in June 2006. In announcing the decision, EPA Administrator Christie Whitman said that the Bush Administration chose not to delay the order because of the need to protect public health and the environment. See the announcement on the EPA Web site.

For more information about the ruling, see: http://www.epa.gov/otaq/diesel.htm.

IPCC: Energy Efficiency is Key in Mitigating Climate Change
The Intergovernmental Panel on Climate Change (IPCC) accepted on Monday the third and final volume of its Third Assessment Report on climate change. The new volume examines climate change mitigation strategies and places a heavy emphasis on using energy wisely. The report finds that energy efficiency for buildings, transportation, and industry account for more than half of the potential greenhouse gas reductions achievable by 2020. Natural gas technologies, more efficient power plant technologies, and combined heat and power play an important role in reducing fossil energy power plant emissions. And "low-carbon energy systems" such as renewable energy can also make an important contribution. Perhaps equally important is the finding that there is "no single path to a low emission future."

The IPCC was established by the World Meteorological Organization and the United Nations Environment Programme (UNEP) in 1988. Although its full report is not yet available, a "Summary for Policymakers" is available on the IPCC Web site.

In response to the report, the UNEP issued several press releases that emphasize the role of clean energy technologies. "The potential for rapid technology innovation leading to clean energy and other climate change solutions is clearly extraordinary," said Klaus Topfer, UNEP Executive Director. "Governments need to unleash this potential by giving the private sector the signals and incentives it needs. They also need to remove the economic, legal, behavioral and institutional barriers that can discourage consumers and companies from exploiting climate-friendly technologies." See the UNEP press releases.

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