Week of February 25, 2002
http://www.es.wapa.gov/renew/
    

Green Power

California Power Agency Plans to Boost Energy Supplies
Renewable energy like solar power and wind and more energy conservation will help California beef up its electricity supplies to avoid another power crisis, the state's new power agency said. The six-month old California Consumer Power and Conservation Financing Authority -- commonly known as the California Power Authority -- issued its investment plan, proposing to finance a total of 3,500 megawatts of "clean" power to strengthen reserves by 2006. That would be the equivalent of more than three big nuclear power plants, or enough electricity for about 3.5 million homes. Most electricity is generated from fossil fuels such as natural gas and coal. The agency was launched in August 2001 with a "never again" mission: make sure California has enough electricity to avoid shortfalls and outrageous prices. CPA supporters believed California had been held hostage by out-of-state power suppliers who charged sky-high prices during a severe shortage and helped to drive the state's biggest utility, PG&E Corp. (NYSE:PCG - news) Pacific Gas & Electric, into bankruptcy. Since the CPA's founding, however, wholesale prices have plummeted, the drive to build new power plants has slowed and independent power supplies themselves have fallen on hard times. The plan outlined today by CPA Chairman David Freeman called for work to begin in fiscal 2002-2003 to develop more than 1,800 megawatts of new reserves at a cost of $2 billion. Freeman, the former head of the nation's largest municipal utility -- Los Angeles Department of Water and Power -- told a news conference the CPA can float up to $5 billion in bonds to finance projects. The bonds would be repaid from sales of power to investor-owned utilities. The CPA also is studying projects to commercialize new energy sources like solar powered fuel cells and microturbines which could be placed in state office buildings, schools and prisons, Freeman said. More efficient use of energy combined with renewable fuels and "decentralized" generation can meet any "plausible reserve capacity gap" in California, the CPA's plan said. The CPA's board of directors was to consider the plan later Thursday, and the next stop would be hearings in the state Legislature. Some lawmakers want to abolish the CPA and create a single California energy agency out of several agencies now involved in managing energy tasks. Source: Reuters 2/14/2002 via Solar e-Clips 2/19/2002.

Timberland and Clean Air ­ Cool Planet Partner to Fight Global Warming with Winds of Change
The Timberland Company and New England-based non-profit Clean Air-Cool Planet today announced an innovative new plan to fight climate change by offsetting carbon dioxide (CO2) emissions from Timberland¹s U.S. retail stores¹ electricity use. Timberland is the first corporation in the nation to make a donation that will allow Clean Air-Cool Planet to purchase renewable energy credits ­ also known as Green Tags ­ from a family-owned wind farm in South Dakota. The sale of the credits is used to subsidize wind farm construction because generating clean electricity by many wind farms is still more expensive‹and thus less competitive‹than electricity generation by coal fired power plants. The Green Tags purchased by Clean Air-Cool Planet will "retire" more than 2,400 tons of CO2­ enough to offset the carbon pollution produced over two years of normal electricity use by Timberland¹s 67 U.S. retail stores. Clean Air ­ Cool Planet will purchase the Green Tags from NativeEnergy, a pioneering Vermont company that helps finance the construction of new wind farms through its WindBuilderssm program. "Timberland recognizes that with the success of our retail business comes the responsibility to minimize our environmental impact," said Terry Kellogg, Timberland¹s Senior Manager, Environmental Affairs. "We see this partnership with Clean Air ­ Cool Planet as a major step toward making The Timberland Company a climate-neutral business." One Step on the Trail to Curb Global Warming: Burning fossil fuels to generate electricity is the largest industrial source of CO2 emissions in the U.S. WindBuilderssm is the first of a series of innovative climate change products and services to be offered by NativeEnergy. New wind farms fight global warming by reducing the amount of electricity otherwise needed from power plants that burn fossil fuels. "By supporting new sources of wind power, Timberland is showing how corporate leaders can help stamp out global warming," said Adam Markham, Clean Air ­ Cool Planet¹s Executive Director. "Gridlock over energy and climate policy may intensify in Washington, D.C., but our alliance with Timberland and NativeEnergy provides a model for climate action outside the beltway." According to NativeEnergy¹s President and CEO, Tom Boucher, "NativeEnergy is committed to providing individuals and businesses with simple, effective, and verifiable ways to offset the carbon dioxide emissions associated with their everyday activities ­ so they can do their part in the fight against global warming and climate change." About Timberland: Timberland (NYSE: TBL) is a global leader in the design, engineering and marketing of premium quality footwear, apparel, and accessories for consumers who value the outdoors and their time in it. Timberland® products offer quality craftsmanship and detailing and are built to withstand nature's elements. More information about Timberland is available at the Company's web site, http://www.timberland.com. About Clean Air ­ Cool Planet: Founded in 1999, Clean Air - Cool Planet inspires coordinated action among citizens, businesses, government and community leaders throughout the Northeast to achieve reductions in greenhouse gases. Based in Portsmouth, N.H., CA-CP published "Cool Solutions for Global Warming: 24 Success Stories from the Northeast," highlighting case studies describing innovative projects and their outcomes in all eight northeastern states. Visit http://www.cleanair-coolplanet.org. About NativeEnergy: Founded in 2000 and based in North Ferrisburgh, Vt., NativeEnergy offers individuals and businesses simple, effective, and verifiable ways to fight climate change and global warming by helping to build new wind farms. NativeEnergy¹s patent-pending business process offers a convenient alternative to buying green electricity and is dedicated exclusively to driving the construction of new wind farms to create new environmental benefits. Visit http://www.nativeenergy.com. Source: E-mail from Kate Mackay, 2/12/2002.

Ventura Calls for Goal of 10% Wind
Minnesota Gov. Jesse Ventura (I) spoke strongly in favor of wind power at the Upper Midwest Renewable Energy and Agriculture Summit held February 4. In the speech, Ventura endorsed a goal of 10% of the state's power to come from wind. In 2001, wind power accounted for approximately 2% of the state's total electricity use. The summit was sponsored by the McKnight Foundation and the Energy Foundation, a partnership of major foundations supporting sustainable energy. The Summit attracted an impressive array of legislators and renewable advocates, including U.S. Sens. Paul Wellstone (D-Minn.) and Byron Dorgan (D-N.D.), U.S. Reps. Martin Sabo (D-Minn.), Mark Kennedy (R-Minn.), and Jim Ramstad (R-Minn.), Minnesota Department of Commerce Commissioner Jim Bernstein, public utility commissioners Jim Berg (S.D.) and Susan Wefald (N.D.), and the heads of several regional renewable energy advocacy groups. Ventura summed up his support for wind power by saying, "Everywhere we go--from Buffalo Ridge to the Range--people say they want wind power, and for good reason: it¹s good for farmers; it¹s good for consumers; and it¹s good for the local economy." He went on to say, "When you ask about building a coal or nuclear power plant, people say 'not in my back yard'--when you ask about wind energy, people say 'yes, please put that in my back yard.'" He also touted the customer choice and distributed energy benefits of wind power. Source: AWEA Wind Energy Weekly 2/8/2002.


For more information: http://www.eren.doe.gov/greenpower/ or http://www.thegreenpowergroup.org/


Renewable Energy Technologies

Natural Strategies Teams With BP Solar
Natural Strategies and BP Solar recently joined to offer solar energy products that will help businesses increase cost-efficiencies. The companies said the alliance will put "green business innovation at the center of cost-effective strategic business planning." "Many leading companies have solid, ongoing sustainability initiatives," said Natural Strategies principal Susan Burns. "The economic slow-down is an opportunity to take a close look at solar energy because of the potential for cost savings and energy price stability. Our partnership with BP Solar combines our sustainability planning with their broad expertise in bringing solar solutions to companies." Natural Strategies said it will assist companies looking to explore the cost-saving benefits provided by solar power products. "We are proud to join Natural Strategies in a strategic partnership that allows us to assist companies looking to impact their productivity by incorporating environmental performance into their businesses," said BP Solar director of building and utility markets Mac Moore. BP Solar is a business unit of BP, and is a leading solar electric company with more than 25 years of experience in technology development and manufacturing of photovoltaic products and systems. Contact: Natural Strategies, website http://www.naturalstrategies.com. Source: Ascribe News 12/4/2001 via EIN Renewable Energy Today 12/7/2001.

Top of Iowa - Wind Farm Dedicated
The Top of Iowa Windfarm dedication ceremony took place December 4 in Worth County, Iowa. Participating landowners, community residents, and project participants celebrated the project completion at the Kensett Community Center with a bus tour of the wind farm and a special luncheon and program. The Top of Iowa Windfarm is a joint venture between Midwest Renewable Energy Corp. and Texas-based Zilkha Renewable Energy. Midwest Renewable Energy initiated development of the project in the summer of 2000 and Zilkha co-developed the project and provided the capital required to build the project. The wind farm will sell all of the electricity produced under a long-term power purchase agreement with Alliant Energy of Madison, Wis. "This is our largest project in the U.S. and we are incredibly excited," said Michael Zilkha, CEO of Zilkha Renewable Energy. The dedication ceremony included special guest speaker Lee Klein, former WHO Farm Broadcaster; representatives from the offices of Governor Tom Vilsack, Senator Charles Grassley, and Senator Tom Harkin; Board of Supervisors Chairman Bev Pangburn; representatives from the wind farm project participants; and area school children, who provided songs and poetry readings for entertainment. The Top of Iowa Windfarm is an 80-MW facility made up of 89 NEG Micon 900-kW wind turbines distributed over an area of 5,500 acres of cropland in western Worth County, Iowa. Only 41 acres of farm land is removed from production by the turbines and roads. The turbines are easily visible from the well-traveled Interstate 35 running between Minneapolis and Des Moines. The project is located just north of the 42-MW Cerro Gordo wind farm on the rise between the Cedar and Iowa River watersheds, where wind speeds are projected up to 7.5 meters per second (16.8 mph). The 52-meter-diameter rotors are on 72-meter towers, resulting in a projected capacity factor of over 35% and a specific performance of over 1,300 kWh per square meter of rotor swept area per year. For comparison, post-1985 wind projects in California average about 850 kWh per square meter, and the average performance of wind projects in Minnesota for 2000 was 1,070 kWh per square meter. The operations and maintenance building for the wind farm is a barn from one of the adjacent landowners that was relocated and retrofitted. Over 50 local landowners are participating in the Top of Iowa Windfarm. "It's been great and the companies have been really helpful," said Clarice Hagen, one of the participating landowners. "I think it's a good thing for not only the environment, but also the farm community itself." Manufacturers in the region contributed to the project, as the generators for the turbines were manufactured in Wisconsin, and the blades and towers came from North Dakota. Construction began on April 27, and the turbines were operating and on line 26 weeks later. Steve Dryden, President of Midwest Renewable Energy, one of the project's developers, echoed Hagen, remarking, "Personally, one of the biggest rewards of the developing the project is seeing the wind farm provide local farmers with a new crop and bringing new economic activity to Worth County." Alliant Energy is under contract to purchase 80 MW of electricity from the Top of Iowa Windfarm, enough to supply power to approximately 20,000 homes. Eliot Protsch, President of Alliant Energy, said, "We're very pleased to be taking one more step towards increasing Iowa's generating capacity, especially through an environmentally friendly source like wind power." He went on to say, "This is part of a successful partnership between industry, local landowners, and the environment." A portion of the power generated by the Top of Iowa Windfarm will satisfy the minimum renewables content requirement in Wisconsin, where Alliant also has service territory.

"The windfarm not only provides an environmentally-friendly power alternative, but it also creates a tax base for our county and supplemental income for farmers," said Pangburn. The wind power plants pay substantial property taxes to local communities, including needed capital to the local tax base for schools and infrastructure. "The wind farm will go on the tax rolls in 2002," said Pangburn. "Once tax abatements are phased out, it will provide close to $500,000 in total taxes beginning in 2009 and every year thereafter. Zilkha Renewable Energy, of Houston, Tex., has built or acquired approximately 250 MW of projects in the U.S., Central America and Europe. More information about Zilkha Renewable Energy, wind energy, and the Top of Iowa Windfarm is available at http://www.zilkha.com. Plans are underway by Midwest Renewable Energy Corp. for a similar-sized wind farm to be constructed on the East side of Interstate 35 in Worth County in 2002. More information about Midwest, the Top of Iowa Windfarm, and its second wind farm in Worth County is available at http://www.midwest-renewable.com. Source: AWEA Wind Energy Weekly 12/7/2001.

Siemens Solar Introduces earthsafe Solar System
Camarillo, CA-based Siemens Solar Industries recently unveiled its earthsafe 20 solar electric power system. The company said earthsafe is the first standard system available that converts solar energy into utility power, and can also be used as an emergency backup power system. The earthsafe system will allow home users to send any excess power to local utility companies. In an emergency backup mode, the earthsafe system can function for up to four days, depending on power use and system configuration.

"In our market research and early trials, we found that solar electric systems that could provide power during utility brown-outs were highly desirable, particularly among households with young children, home-office professionals, and elderly people," said Siemens

Solar earthsafe marketing director Fred Cherrick. "Most often, these households wanted to maintain power for their refrigerator, telephones, some lighting, computer, and radios and television. We call this our 'family-safe' feature." Siemens Solar said there are other additional applications for the earthsafe system in offices, as well as in remote areas. Contact: Siemens Solar, website http://www.siemenssolar.com. Source: Siemens Solar Release 12/4/2001 via EIN Renewable Energy Today 12/7/2001.

Avista Turning to 'Green' Power - Plans to Sell Wind Power Next Year
Electricity generated by giant windmills stitched across the Oregon-Washington border could be available to customers as soon as Jan. 1 in Washington and by Feb. 1 in Idaho, said Bruce Folsom, special projects manager. Documents outlining the program were delivered to regulators in Olympia and Boise Friday, he said. Customers will be able to buy 55 kilowatt-hour blocks for $1, or designate a fixed share of their monthly use be wind-generated. The average homeowner uses 1,000 kilowatt-hours per month. Potential residential buyers fall into two groups, according to material submitted to the Washington Utility and Transportation Commission. About 10 percent of customers, typically those with college degrees, are most likely to direct a percent of their monthly usage come from wind. If those buyers take 400 kilowatt-hours of wind power, their monthly bill will climb $7.20. The bulk of Avista customers will be more inclined to buy just one- or two-dollar blocks. The program will also be available to commercial customers. The utility estimates total customer demand for wind power will be less than 1 percent of all the power sold, he said, but that number is conservative. Utilities that sell wind or other "green" power typically find customers shift between 2 percent and 5 percent of their load to wind, Folsom said. By definition, green power is renewable and includes electricity produced by the sun or biomass like manure. If Avista estimates are accurate, the wind power program will generate $150,000 in new revenues. Most of that will be passed through to the supplier of the electricity; the rest will cover administrative costs. Chris Drake, who will manage the program for Avista, said customers will be able to reassess participation in the program monthly. They can join, drop out or adjust their purchases, he said. "This is meant to be very simple, very responsive and very flexible." Although marketing efforts will not start until mid-January, customers will be able to sign up after Jan. 1 by calling the company or using its Web site, http://www.avistacorp.com. Avista is negotiating with PacifiCorp Power Marketing for electricity produced at the Stateline Wind Facility, which is located about 25 miles west of Walla Walla. Folsom said that power can be moved easily onto Avista's grid. Wind electricity will allow the utility to rely less on its expensive thermal generating plants, he said. Peter West, deputy director of the Renewable Northwest Project, said the Portland-based organization welcomed Avista's initiative. "It's everything we ask for in the green power community that a renewable energy program should be," he said. West said the organization usually certifies such programs only if they require customers to buy at least 100 kilowatt-hours per month of green power. But Avista's will qualify because the mix of dollar blocks less than 100 kilowatt-hours and percent commitments for more than that will probably meet the standard, he said. Customers who buy two 55-kilowatt blocks each month are saving the energy equivalent of enough gasoline to drive 1,800 miles, West said. Source: The Spokesman Review via ProQuest Information and Learning 12/7/2001

New Energy Corporation Corrects Jan. 3, 2002, Press Release
New Energy Corporation (OTCBB:NECO - news) today announced corrections to a press release issued on Jan. 3, 2002. The news release stated incorrectly that New Energy had signed a contract to sell electricity to Teixeira Farms of Santa Maria, Calif. Teixeira Farms did not sign such a contract with New Energy. The actual transaction that was intended to be described in the Jan. 3, 2002, release relates to a series of purchase orders received from Distributed Power Systems. New Energy has a strategic marketing agreement with MegaWatt Energy Corporation. MegaWatt received purchase orders from Distributed Power Systems for the installation of four one-megawatt solar electric generators totaling $36 million. Megawatt assigned those purchase orders to New Energy. The Company attributes the error to confusion as to the nature of the transaction between New Energy and Magnum Financial Group, the Company's investor relations advisors, who wrote the release. New Energy and Magnum have developed a new system for ensuring that press releases drafted and issued by Magnum, on behalf of New Energy, have been properly reviewed and authorized by the Company, including review of all releases by New Energy's legal counsel. Commenting on the correction, Michael Manahan, president of Magnum Financial Group, stated, "It is Magnum's policy to insure that all material facts incorporated into press releases issued by Magnum on behalf of Magnum clients are vetted by an authorized company represented and approved for release. Clearly, in this instance, our system broke down. We certainly apologize to members of the investment community at large, and to the many friends of Magnum within the investment community that follow with interest the activities of Magnum clients."  For more information on New Energy please visit their website at http://www.newenergyco.com. Source: E-mail from Kevin Eber 2/15/2002.


For more information on Renewable Resources go to: http://www.eren.doe.gov/repis/


Outreach, Education & Reports

National Conference to Define Sustainability from a Tribal Perspective, March 21 & 22, 2002, Denver, Colorado
The Council of Energy Resource Tribes (CERT) is sponsoring a National Conference to Define Sustainability from a Tribal Perspective March 21-22, 2002 at the Red Lion Hotel in Denver, Colorado. For more information on this event, see the conference announcement on the CERT Web site at: http://www.certredearth.com/scb7.pdf. E-mail from Roger Fragua, 303-282-7576.

Renewable Portfolio Standard and the System Benefits
The Environmental and Energy Study Institute (EESI) is pleased to provide you a briefing summary that discusses two federal legislative proposals: the Renewable Portfolio Standard and the System Benefits Fund. These two complementary energy policies are designed to help level the energy playing field and encourage investments in new renewable energy resources and energy efficiency technologies. As Congress prepares for the energy legislation debate on the Senate side and consideration of electricity legislation on the House side, EESI hopes that this summary will be a valuable resource for you. It may be accessed at http://www.eesi.org. If you have any questions, please contact me at 202-662-1885 or bbleil@eesi.org. Source: Environmental and Energy Study Institute, 2/14/2002.

Database of State Incentives for Renewable Energy (DSIRE)
The Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, and utility incentives that promote renewable energy. To access this information, go to the DSIRE Web site at: http://www.dsireusa.org/.

Interstate Renewable Energy Council Web Site for Solar
Have you checked out the Interstate Renewable Energy Council's (IREC) Web Site for solar related information. It's an excellent site stocked full of great solar information. See the site at: http://www.irecusa.org/index.html.

The Solar Way: Photovoltaics on Indian Lands
Sandia announces publication of "The Solar Way: Photovoltaics on Indian Lands." See the publication at the Sandia Web site at: http://www.irecusa.org/articles/static/1/1012914402_987100817.html. Source: February 2002 Going Solar E-newsletter.

DOE Study Concludes "No Major Infrastructure Barriers Exist" for 5.1 Billion Gallon Ethanol Market
A new report completed for the U.S. Department of Energy (DOE) on the infrastructure requirements for an expanded ethanol industry found that "no major infrastructure barriers exist" for producing and using over 5 billion gallons of ethanol across the country each year. "This study produces empirical support for the transportation industry's recent statements that they have the capability and the capacity to move large quantities of ethanol from coast to coast," said Bob Dinneen, RFA president. "This report leaves no reasonable doubt that a dramatic expansion of the domestic ethanol industry can be achieved without supply disruptions or distribution problems. Whether replacing MTBE in California or meeting the demand for ethanol created by a robust renewable fuels standard (RFS), the U.S. ethanol industry can and will respond." The report analyzed the infrastructure requirements for expanding ethanol use, including transportation, distribution and retailing issues. The study assumed ethanol production of 5.1 billion gallons per year, comparable to pending legislation establishing an RFS. According to the study, 495 terminals (58.6% of operating terminals) would offer ethanol. The full report can be found on the U.S. DOE website at: http://www.afdc.doe.gov/pdfs/6235.pdf. Source: RFA Ethanol Report 2/11/2002.

Superconductivity News Update
The new issue of Superconductivity News Update dated 14 February 2002 is now available for your review at http://www.eren.doe.gov/superconductivity/library_bulletins.html. Source: Craig Cox, Bob Lawrence & Associates, Inc. 303-679-9331, coxcraig@att.net, 2/15/2002.


For more information on Educational Resources go to: http://www.thegateway.org


News from Washington

Sen. Finance Takes Up Tax Incentives - Includes Tradable Tax Credits For Renewables
The Senate Finance Committee marked up a major energy tax incentive bill that would take a $13.5 billion bite out of tax revenues between 2002 and 2012, according to the congressional Joint Committee on Taxation. The rapid emergence of the bill, the Energy Tax Incentives Act of 2002, is a result of a push by Senate Majority Leader Tom Daschle (D-S.D.), who wants to wrap the tax measures into a mammoth energy bill he hopes to have on the Senate floor. "Daschle is trying to pull all the pieces together" on energy legislation, said one staffer. Recently out of the Senate Finance Committee markup, a five year Production Tax Credit (PTC) for both wind and geothermal power generation. With respect to tradable tax credits, this is a significant development for public power. The markup includes tradable tax credits within its provisions to expand existing production tax credits for clean energy under section 45 of the tax code. Production tax credits of 1.7 cents per kWh for wind, closed-loop biomass and poultry waste that expired at the end of 2001 would be extended through January 1, 2007. Facilities that qualify for the production tax credit are expanded to include open-loop biomass, swine and bovine waste nutrients and geothermal energy. According to the description, public power systems and rural electric cooperatives owning any of these qualifying facilities would be eligible to sell, trade or assign the tax credits of 1.7 cents per kWh to any taxpayer without regard to tax-exempt financing. Source: Bob Lawrence & Associates, Inc., boblaw424@aol.com and Electricity Daily 2/14/2002.

Passage of Senate Energy Tax Bill Promotes Domestic Fuels Like Ethanol
The Renewable Fuels Association (RFA) today hailed the passage of the energy tax bill by the U.S. Senate Finance Committee that includes two important changes for ethanol. The bill will encourage more production from small, mostly farmer-owned, ethanol plants and addresses an oversight in previous legislation that sends part of the gas tax collected on ethanol-blended fuel to the general fund instead of the Highway Trust Fund. "The Senate Finance Committee, led by Chairman Max Baucus and Ranking Republican Chuck Grassley, is to be commended," said Bob Dinneen, RFA president. "This energy tax bill includes two common sense provisions important to increasing U.S. energy security by promoting the production and use of domestic ethanol." The Energy Tax Incentives Act of 2002 passed the Finance Committee last night on a voice vote. The bill is now expected to be included in energy legislation scheduled for debate on the Senate floor this month. "First, this bill promotes the production of ethanol by allowing farmer-owned cooperatives to fully realize the benefits of the existing small ethanol producer tax credit program and by updating the definition of a small producer to reflect the modern ethanol industry," continued Dinneen. "Taken as a whole, farmer-owned ethanol plants now represent the single largest ethanol producer in the country and this bill ensures that the rural economic growth from these plants will continue." The small ethanol producer tax credit program currently provides a 10-cents-per-gallon credit for small producers on the first fifteen million gallons of ethanol production. This bill allows allocating the ten-cents-per-gallon credit to members of a farmer cooperative and also changes the definition of a small ethanol producer from 30 million to 60 million gallons per year. "This bill is the first step in addressing the concerns of some the ethanol use reduces highway funding," said Dinneen. "States that use ethanol should not be penalized for promoting a domestic, renewable fuel that enhances energy security and protects the environment. The ethanol industry is committed to working on this issue until all of the concerns are answered." Source: RFA Release 2/14/2002.

Senate Energy Bill To Be Introduced
Senate Energy and Natural Resources Committee Chair Jeff Bingaman (D-NM) and Majority Leader Tom Daschle (D-SD) are to introduce a revised Energy Policy Act of 2002, and the Senate is posed to begin debate when senators return to D.C. the week of February 25th, following the President's Day recess. This updated version of the Energy Policy Act supersedes the Daschle-Bingaman bill introduced last year, and now includes contributions from the Senate Finance Committee, extending and expanding tax incentives for energy efficiency, renewable energy, and fossil fuel production. It also includes provisions from Senators Ernest Hollings (D-SC) and John Kerry (D-MA) increasing the fuel efficiency of the nation's vehicle through higher Corporate Average Fuel Economy (CAFE) standards. Visit the policy section of the Alliance's web site: http://www.ase.org/policy. Source: Alliance to Save Energy 2/14/2002.

President Bush Releases Alternative U.S. Emissions Plan to Kyoto Protocol
Offering an alternative to the global warming agreement he rejected last year, President George W. Bush proposed a plan Feb. 14 that he said would encourage businesses to cut pollution and develop more energy-efficient technology. Bush said he would cut the growth rate in greenhouse gases by giving companies incentives to cut emissions, finding alternative forms of energy, improving conservation and developing technology to reduce pollution. In a separate proposal, Bush said he would tighten power plant standards to reduce emissions of sulfur dioxide, nitrogen oxide and mercury. President Bush's plan calls for voluntary cuts with economic incentives. With that said, here are the key proposals included in President Bush's plan:

The president said that utilities operating power plants will be given permits for each ton of emissions they produce and then will be free to trade the permits with other utilities. In practice, what this means is that utilities that find it more difficult to cut emissions won't necessarily have to shut down production if they can find another partner with which to trade permits. The president said that this approach is preferable to having the government involved in endless litigation with power plant operators over where and how they should cut emissions. Also, according to the president, by making the permits tradable utilities should find it "financially worthwhile to pollute less, giving them an incentive to make early and cost-effective reductions." Under this market-driven approach, utilities will be given a firm deadline to cut emissions and encouraged to find "the most innovative ways to meet it" (in the words of the president). Part of the reason why the president has developed a rather voluntary and flexible approach toward emissions reductions is the fact that some members of the Bush administration still question whether or not there is sufficient evidence to prove that human activity causing greenhouse gases is actually the cause of global warming.

For background, in March 2001 President Bush announced that the United States would not support the Kyoto Protocol, again arguing that developing nations were not included and the goals were not realistic. Further, Bush voiced the concern that ratifying the Protocol would severely damage the U.S. economy as it would restrict industrial production. The president also pointed out that, although European nations espouse support for the Protocol, none of the European Union members had yet to ratify the treaty when the United States announced that it would not participate. Instead, the president adopted a "go-slow" approach toward global warming and vowed to spend more money to investigate the problem and work with other nations to produce a better plan. Although other world issues such as the war on terrorism consumed the president's attention in recent months, the just-released emissions plans is the first evidence of the U.S. greenhouse-gas remedy that is just starting to take shape. Note that the European Union has continued to embrace the tenets of the Kyoto Protocol and has put pressure on countries such as Japan and Russia to ratify the agreement. Japan has acknowledged that it too will find it difficult to reach the goals of the Protocol. Other countries have said that without the participation of the United States, the Protocol is destined to fail. The Kyoto Protocol developed out of meetings held in December 1997 in Kyoto, Japan, during which time the United Nations Framework Convention on Climate Change agreed in principle to a series of strategies to reduce greenhouse gas emissions. About 170 governments of various countries, including the United States, participated in the Protocol and agreed to reduce their aggregate carbon dioxide equivalent emissions by at least 5 percent below 1990 levels by 2012. Noticeably exempt from the Protocol were developing countries such as China and India‹two of the largest greenhouse gas emitters in the world‹which resisted taking on any sort of formal reduction plan until industrialized countries proceeded with their own. This marked the central flaw in the Protocol in that participants such as Europe, Japan and the United States argued that it would be impossible to reach the Protocol's goals without the active and controlled participation of developing countries. Consequently, the United States could not garner two-thirds support from the Senate, which would be required to ratify the Protocol, despite endorsement from the Clinton administration. The United States is the largest emitter of CO2, accounting for one-quarter of the world total per year, and thus its participation in the Protocol was considered essential. Full article can be found at http://www.scientech.com.Source: Excerpt from 2/15/2002 IssueAlert by Will McNamara, Director, Electric Industry Analysiss.


For more information on legislative activities go to: http://www.kannerandassoc.com/fedenergybills.html or http://www.thomas.loc.gov/


Marketing & Market Research

There is Another Change Comming (Excerp from) Resources Advice: Stop Whining and Start Hustling)
Remember small gas turbines and fuel cells? Those devices will open the market to distributed resources. Consumers could put together a package of resources custom designed and independent of the electric system. To further complicate matters, I believe that the transitional regulatory regime will have an unexpected consequence: a substantial reduction in infrastructure spending by utilities, which will also encourage the growth of distributed resources. I think that entrepreneurs in the renewables business have to embrace size, raise capital in the markets based on prospects, and go for broke, spending that money to put in infrastructure and develop products. Not easy? No, it¹s not. But biotechnology firms and competitive local exchange carriers, to name two recent examples, did it, and they are burning up money rapidly in their efforts to get to the market. Why is a new or better energy technology less exciting? Perhaps too many people look upon the renewable industry as more of a crusade than a business, maybe even as a religious vocation. Renewables, for instance, could do so much to help the 2.5 billion people on this earth who use the most primitive energy technologies, and do a great deal of environmental damage in the process. Unfortunately, you can¹t make a profit selling products to people who cannot pay for them, and the international energy financiers seem to prefer colossal projects, instead. That means that renewable entrepreneurs have to think more in prosaic terms, such as offering products to people who can pay but also have alternatives. You¹ve probably heard all this garbage about how that all-knowing market solves all problems, but the market won¹t work here, because pricing doesn¹t take into account all the costs to society of using the wrong energy sources. I think that argument is correct, and the government could correct the problem through taxation or a trading regime, if the political will existed to do so, assuming that there was political agreement on the need to do so, which there isn¹t. I think the renewables industries are betting on Kyoto. Absent that government action, renewables can either try to expand their niche through government mandate, or produce a product that the consumers want. Maybe the time has come to do the latter. As an investor, I don¹t want to put my money in a firm whose sales depend not on the marketer, factory manager and engineer, but rather on the firm¹s lobbyist.

To sum up, the renewable energy industry can enter a new age. It can sell its product, bundle it with other products, deal in a market in which the incumbents lose their grip. It can raise money to develop new products. But it will have to sell: on the basis of economic value, or cleanliness, or to help people save the world or salve their consciences. To get beyond a niche market, the renewables industry has to learn to sell. Source: Taken from an article written by Leonard S. Hyman, CFA, Senior Industry Advisor, Salomon Smith Barney via PowerMarketers.com 2/7/2002.

A Midwest Study of Attitudes and Opinions Toward Photovoltaic Technology: Executive Summary
See the Midwest Study of Attitudes and Opinions Toward Photovoltaic Technology: Executive Summary at: http://www.irecusa.org/articles/show.php4?recid=1010748514&a_uid=2f7a3170e8a9aa9f5496691047a21b3a. Source: February 2002 Going Solar E-newsletter.

Energy Retailers Form Alliance for Retail Choice
The nation's leading companies offering customers retail energy choice have formed a national alliance to promote state and Federal policy that boosts competitive retail markets. The founding members of the Alliance for Retail Choice include AES NewEnergy, Green Mountain Energy Company, The New Power Company, SmartEnergy Inc., and Strategic Energy. The Alliance for Retail Choice is the first national organization dedicated solely to the development of retail markets, said a Strategic Energy spokesman. Advocating continued development of successful retail energy choice programs and markets, the alliance aims to provide a voice for energy retailers and their customers in selected public policy forums on the Federal and state level. "The Alliance for Retail Choice will continue to push for opening more energy markets to competition," said Patrick Jeffrey, Vice President of Regulatory Affairs for SmartEnergy, Inc. "We have seen that in states where competitive energy programs are administered properly, this can benefit consumers. Through choices in energy products, consumers can often choose better prices, services and technologies than what their utility can offer." In an attempt to bring more positive attention to competitive electric markets, the coalition will provide information on successful restructuring programs and help states model these examples. Massachusetts and Connecticut are two states the alliance has mentioned as good prospects for their initiative. The five companies began talking about forming an alliance about nine months ago in an effort to consolidate resources. The alliance is accepting other members, who can join for an undisclosed fee. Source: Utilities Bi-Weekly Report 2/13/2002.

Survey Finds Competition Saves Money for Texans
Research released by the Wattage Monitor shows that deregulation is saving money for Texans who switch to a competitive supplier. The Wattage Monitor's survey of residential and commercial consumers provides quantitative data on the results achieved by deregulation since its start in January. The savings for an average residential consumer ranges from approximately $5 per month in the Texas-New Mexico Power territory to over $8 per month in the Reliant and West Texas Utility territories. In large metro areas, like Houston and Dallas, savings for commercial customers can exceed 30% a month. "Deregulation in Texas is real and is providing real savings for both business and residential consumers. While there are consumers with many questions, the Wattage Monitor system will help consumers overcome any confusion and make quicker, more informed choices about their electric service," said Wattage Monitor President Gerald Alderson. Mr. Alderson told The Dallas Morning News that most consumers are interested in switching if the savings are at least $5 per month. Source: Utilities Bi-Weekly Report 2/13/2002.

California Electric Utility Retail Sales Data for FY 2000
The California Electric Utility Retail Sales data has been updated to 2000 information. To view the data, please go to: http://www.energy.ca.gov/electricity/utility_sales.html. Source: California Energy Commission 2/11/2002.


For more information on marketing and research go to: http://www.nrel.gov/analysis/emaa/index.html


Grants, RFPs & Other Funding News

Renewable Energy Development on Tribal Lands
The U.S. Department of Energy (DOE), pursuant to the DOE Financial Assistance Rules, 10 CFR 600.8, is announcing its intention to solicit applications for the development of renewable energy on Tribal lands. Through cooperative agreements, DOE intends to provide financial support to conduct feasibility studies and share in the cost of implementing sustainable renewable energy installations on Tribal lands. Under the solicitation, DOE is soliciting Applications from Federally-recognized Tribes or Alaskan Native Corporations (hereafter referred to as Tribes) to either: 1) conduct feasibility studies for the development of economically sustainable renewable energy installations on Tribal Lands; or 2) implement sustainable renewable energy development projects.

DATES: Issuance of the solicitation is planned for the end of February 2002. ADDRESSES: A copy of the solicitation, once it is issued, will be accessible through the Golden Field Office Home Page at http://www.golden.doe.gov/businessopportunities.html under "Solicitations." The Golden Home Page will provide direct access to the solicitation and provide instructions on using the DOE Industry Interactive Procurement System (IIPS) web site. The solicitation can also be obtained directly through IIPS at http://e-center.doe.gov/ by browsing opportunities by Program Office for those solicitations issued by the Golden Field Office.

DOE will not issue hard copies of the solicitation. FOR FURTHER INFORMATION CONTACT: Ruth E. Adams, Contracting Officer, via facsimile at 303-275-4788 or electronically at ruth_adams@nrel.gov. DOE will only consider Applications from Federally recognized Tribes on whose Tribal Lands the project will be located. Applications from a consortium of Tribes will be accepted but must be submitted by a single Tribe representing the consortium. A letter of commitment from an authorized representative of the Tribe (Chief, Governor, President, Chairperson or other representative able to commit the Tribe), as well as from each participating Tribe or project Participant, is required as a part of the Application. For Development Project Applications, a Tribal Council Resolution is preferable to a letter of commitment, but a letter of commitment accompanied by a plan and schedule to obtain a Resolution, will be accepted. Subject to funding availability, the total DOE funding available under this solicitation will be approximately $2,500,000. DOE anticipates selecting 10 to 15 Renewable Energy Feasibility Study Applications and 3 to 5 Renewable Energy Development Project Applications for negotiation toward Award. If funding is appropriated in the Government's Fiscal Year 2003 (October 1, 2002 through September 30, 2003), opportunities to apply for development projects as well as funding for additional feasibility studies will be provided. A pre-application conference will be held on March 20, 2002 from 8:00 a.m. to 12:00 noon at the Red Lion Hotel Denver Central, 4040 Quebec Street, Denver, Colorado 80216. For responses at the Pre-Application conference, potential Applicants should submit questions in writing by March 12, 2002. Source: E-mail from David Vader and Bob Fullerton, WAPA, 2/13/2002.

The California Energy Commission (CEC) Will Consider the Following Items:
The following items are a short list of items that will be considered at a upcoming CEC public meeting. The short list includes:

Public Comment: People may speak up to five minutes on any matter concerning the Energy Commission. The Energy Commission may recess the meeting and continue it later for purposes of a general discussion of internal organization and policy. No action will be taken at such a continued session. The Energy Commission will announce whether it plans to continue the meeting in this manner and the time and location at the end of Item 22. If you require special accommodations, contact Betty LaFranchi at (916) 654-5204, five days prior to the meeting. News media inquiries should be directed to: Claudia Chandler, Assistant Director -- (916) 654-4989. Questions about participation in the Business Meeting should be directed to: Roberta Mendonca, Public Adviser -- (916) 654-4489 or (800) 822-6228. Source: CEC E-mail 2/15/2002.

Biomass Gasification
The U.S. Department of Energy, Office of Industrial Technologies announces it's intent to request proposals for Black Liquor/Biomass Gasification Technology Support Research and Development. DOE is particularly interested in industrial application demonstrations. 5 ? 10 awards expected, range from $500K - $1.5 million. Cost share from 20 ? 50%, depending on project type. It was expected that the solicitation would open in mid 11/01, however, still not open as of 12/4/01. For more info, contact Deborah Boggs at (304) 285-4473 or go to: http://e-center.doe.gov. Refer to Sol# DE-PS26-02NT41423. Source: Federal Register 11/23/01 via Seattle Regional Office (SRO) of the U.S. Department of Energy 2/5/2002.

Solid State Energy Conversion
The U.S. Department of Energy has announced its intent to request proposals for the "Solid State Energy Conversion Alliance (SECA) Core Technology Program." The goal of SECA Industrial Teams is to develop a 3 kilowatt (kW) - 10kW solid-oxide fuel cell system including stack and balance of plant that has a factory cost of $400/kW by 2010. The purpose of this Program is to develop science and technologies that address specific technical challenges and barriers faced by the SECA Industrial Teams. For more info on SECA, go to: http://www.seca.doe.gov. The solicitation is expected to open in mid 12/01. Once issued, it will be posted at: http://e-center.doe.gov. For more info, contact Raymond Jarr, DOE, at (304) 285-4088. Refer to Sol# DE-PS26-02NT40865. Source: Seattle Regional Office (SRO) of the U.S. Department of Energy 2/5/2002.

University Geothermal Research
The U.S. Department of Energy seeks research projects in earth science at universities to expand the geothermal knowledge base. The knowledge gained from this work will result in new and improved technology that will help meet geothermal program goals. The overarching goal is to reduce the levelized cost of generating geothermal power to 3 to 5 cents/kWh by 2010, as compared to 5 to 8 cents/kWh in 2000. Responses due 2/28/02. For more info, contact Dallas Hoffer, DOE, at (208) 526-0014 or go to: http://e-center.doe.gov. Refer to Sol# DE-PS07-02ID14263. Source: Federal Register 11/23/01 via Seattle Regional Office (SRO) of the U.S. Department of Energy 2/5/2002.

DOE Issues Solicitation for State Energy Program Special Projects
The U.S. Department of Energy (DOE) has issued its guidance for state energy program special projects financial assistance. Up to $770,000 is available for 12-15 programs for wind resource assessment or small wind system support. At least a 25% non-federal cost share is required; 50% is desired, and the federal share of the cost of a project may not exceed $75,000. Applications must come from a state energy office, so interested applicants must work with the energy office within their state to submit an application. Applications are due March 15. Application packages and instructions can be obtained through the DOE's regional offices (contact numbers below). The full guideline, along with a question and answer forum is available online at http://www.eren.doe.gov/buildings/state_energy/corner_cafe/forum/special_projects. The solicitation specific to wind energy projects can be found at section 6.58 (pages 76-79 of the solicitation). The selections are expected to be announced by May, with financial assistance to be awarded by the regional offices starting in July or August. Proposals are sought in states suitable for wind development to undertake activities aimed at wind resource measurement, tall tower assessment, and small wind system support. Proposals are being sought generally from states that have little wind development and good wind resources. Proposals from all states will be considered based on ranking according to the evaluation criteria below and availability of funds. Wind energy staff at the National Renewable Energy Laboratory (NREL) will be available to provide further information. Each proposal must include a detailed description,a time line, and a budget, itemized by task. The grantee is required to submit a final report summarizing all work completed under this project. State proposals in each category will be ranked according to the following criteria:

Program contacts are as follows:


For more information on funding solicitations go to: http://www.eren.doe.gov/solicitations.html


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