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Week of April 14, 2003

Green Power

Clif Bar Inc. Offsets Its Impact on Global Warming Through Partnership

Clif Bar Inc. announced today it is supporting the construction of the first large scale Native American-owned wind farm to offset the carbon dioxide generated by the energy used in its offices, manufacturing, and business travel during 2002. The environmental benefit of the company's offset is equivalent to taking 250 SUVs off the road for a year. Joining in the fight against global warming as part of NativeEnergy's WindBuilders(SM) program, Clif Bar Inc. has purchased enough renewable energy credits to neutralize about 2,000 tons of carbon dioxide (CO2) emissions. Carbon dioxide -- a by-product of burning fossil fuels such as gas, oil and coal -- is the leading contributor to global warming. Clif Bar Inc. staff ecologist Elysa Hammond guided the company's efforts to take part in the NativeEnergy program. Clif Bar Inc.'s purchase of renewable credits will help drive the construction of the Rosebud Sioux Tribe Wind Turbine Project in South Dakota. Wind farms do not produce air pollution or any of the greenhouse gases that cause global warming. The more wind farms built, the less consumers need to rely on electricity generated by polluting power plants that burn fossil fuels.

Inauguration of the wind farm is planned for May 2003. Clif Bar Inc. joins Stonyfield Farm, The Timberland Company, Ben & Jerry's, Green Mountain Coffee Roasters and other progressive companies and organizations in sponsoring the project through NativeEnergy. "We are excited to be part of such a unique partnership to support renewable energy and reduce our ecological footprint on the planet," said Gary Erickson, Clif Bar Inc. owner and CEO. "This project reflects our company's ongoing commitment to people's health and the environment." To ensure its efforts result in a permanent benefit to the environment, Clif Bar Inc. donated the energy credits it purchased to Clean Air - Cool Planet (CA-CP) for retirement. CA-CP will ensure that the energy credits are not subsequently acquired or claimed by any other organization. CA-CP is a non-profit organization bringing climate change solutions to corporations, campuses and communities in the Northeast. As a company that supports athletes and other health-minded people, Clif Bar Inc. recognizes the many health benefits of deriving energy from renewable resources rather than fossil fuels, including the reduction of airborne pollutants that can lead to lung and heart problems, trigger asthma attacks and shorten the lives of tens of thousands of Americans each year.

In 2003, Clif Bar Inc. is continuing the fight against global warming through its partnership with NativeEnergy and numerous in-house environmental programs, including the use of more recycled materials in packaging, recycled paper in its offices and, increasingly, organic ingredients in its energy and nutrition bars. Based in Berkeley, Calif., Clif Bar Inc. is a leading maker of great-tasting, all-natural energy and nutrition foods. The company's products include the CLIF(R) BAR, the energy bar providing nutrition for sustained energy; LUNA(R), The Whole Nutrition Bar for Women(TM); MOJO Bar(TM), the first natural snack bar with popular salty snack flavors; and CLIF SHOT(R), The Natural Energy Gel(TM) for endurance activities. Clif Bar Inc. is committed to sustainability from the field to the final product. To learn more about Clif Bar Inc., visit www.clifbar.com or call 1-800/884-5254.

NativeEnergy offers individuals and businesses simple, effective, and verifiable ways to fight global warming and climate change. NativeEnergy's patent-pending business process offers a convenient alternative to buying green electricity and is dedicated exclusively to driving the construction of new wind farms and other renewables to create new environmental benefits. More information is available at www.nativeenergy.com.

Clean Air - Cool Planet, an action-oriented environmental group, works directly with corporations, communities, and campuses to develop and implement greenhouse gas emission reduction efforts. A 501(c)(3) qualified non-profit organization, CA-CP provides a growing number of partners with practical solutions that demonstrate the economic opportunities and environmental benefits associated with early actions on climate change. Visit www.cleanair-coolplanet.org. Source: Clif Bar Inc., 3/25/2003.

Trium Group Purchases 3 Phases 'Green Certificates'

3 Phases Energy Services recently announced that consulting firm The Trium Group has purchased the company's "Green Certificates" in an amount equal to 100 percent of the energy consumed by its facilities in San Francisco, CA and Boston, MA. The company said Trium purchased the Green Certificates to inaugurate the launch of its new Sustainable Strategies Consulting Practice, which helps clients "create long-term competitive advantage through business strategies built around principles of economic, social and environmental sustainability."
"The launch of this new practice area signals Trium's commitment to helping business leaders build competitive advantage by working with the laws of nature rather than fighting them," said Trium sustainability consulting practice founder Jib Ellison. 3 Phases said the 16,560 kilowatt-hours of electricity to be supplied through the Green Certificates will be generated by a wind farm in Oregon. The company noted that the Green Certificates "represent the benefits of new renewable energy generation,...namely the benefits created when conventional fuels, such as coal, nuclear, oil or [natural] gas, are displaced from the electricity system." "This is the future of business in the 21st century, and purchasing renewable energy is a natural extension of all that we are working towards," said Ellison. Contact: Dan Kalafatas, 3 Phases, phone 415-346-7662, e-mail dkalafatas@3phases.com. Source: EIN Renewable Energy Today 3/26/2003.

Austin Energy Tops Green Power Sales

Austin Energy sold 251,520,000 kilowatt-hours (kWh) of green power last year, more than any other utility in the nation. The utility's GreenChoice program offers electricity from wind, solar, methane gas from landfills, and hydropower plants to more than 6,500 residents, 165 small businesses, and 31 large companies and organizations in Austin, TX. Sacramento Municipal Utility District was the second largest green power producer last year at 104,344,000 kWh, and Xcel Energy was third with 103,739000 kWh. See Austin Energy's press release at: http://www.austinenergy.com/press/rank.htm. Source: EREN Network News 3/25/2003.


For more information: http://www.eere.energy.gov/greenpower/home.shtml


Renewable Energy Technologies

MidAmerican Energy Plans Big Wind Farm

A massive wind farm of 180 to 200 wind turbines will be built across 200 acres of northern Iowa farm fields, MidAmerican Energy Holdings Co. announced Tuesday. `Today we're here to announce the largest wind facility to be constructed in the world will be built in Iowa, said Greg Abel, company president. The company's $323 million wind farm will generate 310 megawatts of electricity, enough to power 85,000 homes, he said. Each wind turbine will produce about 1.5 to 1.65 megawatts of power. Currently, the world's largest wind facility is located in Washington and Oregon and produces 300 megawatts of electricity, Abel said. The project will place Iowa third in the nation for wind energy production behind California and Texas. Gov. Tom Vilsack said the projects fits with his goal for the state to increase renewable energy sources, create jobs and help farmers. Farmers in northwest and north-central Iowa where the turbines will be located will be paid about $4,000 a year for each turbine, Abel said. Abel said new technology - today's turbines are 15 times more efficient than those made in the 1980s - has made wind energy more cost effective. The company's plans call for the first turbines to be operational by the end of 2004 and the project to be completed by 2006. American Wind Energy Association: http://www.awea.org/. Source: AWEA 3/25/2003.

KWP Develops New Wind Program for Municipalities

Kansas Wind Power (KWP) recently announced it has created a new distributed generation model "that will enable each city to have a wind farm up to the size of their base load." According to the company, the new approach "utilizes [KWP's] ability to achieve economies of scale, such as bulk turbine purchases, financing terms and construction efficiencies that would not be possible for an individual municipality wind project." KWP noted that it will finance and construct the projects together in an effort "to achieve the lowest cost of energy possible for each municipality." "The main objective is to achieve the lowest energy cost, but we are also trying to spread the wealth," said KWP chief executive officer Troy Helming. "Not only will we enable many cities in Kansas to have a new low-cost energy generation source, but also spread the economic benefit of wind development across multiple counties within the state. We're passing along the savings to each municipality." KWP said it has already obtained commitments for the first 30 megawatts of power from five cities and is in the process of obtaining similar agreements with other neighboring counties for the same project. Contact: Mandi Rudd, KWP, phone 913-888-9463, e-mail mandi@kansaswindpower.com. Source: EIN Renewable Energy Today 3/21/2003.

Buffet Firm Plans World Largest Land Wind Farm, In Iowa

A power company controlled by billionaire investor Warren Buffett said on Tuesday it plans to build, somewhere in Iowa, the largest land-based wind farm in the world. The $323 million, 310-megawatt project, to be built by MidAmerican Energy Co. in northwest or north-central Iowa, would have 180 to 200 turbines with the capacity to generate electricity for more than 300,000 homes on completion, which is expected in 2006. Des Moines, Iowa-based MidAmerican Energy is a unit of MidAmerican Energy Holdings Co., majority-owned by Buffett's holding company Berkshire Hathaway Inc. The wind farm, which would require approval by the Iowa Public Utilities Board and state legislation on the ownership and operations of renewable energy sources, would top a 300-megawatt project near the Oregon-California border as the largest land-based wind farm in the world.

Texas and California also are big generators of wind power, and the U.S. had total capacity of about 4,700 megawatts at the end of 2002, according to the American Wind Energy Association. Germany is the biggest wind power nation, with more than 12,000 megawatts in total capacity, while Ireland has approved plans to build a 520-megawatt wind station in the Irish Sea. "Wind generation is going from a boutique business to kind of a mainstream business, and we will see more of this as utilities gain confidence in the technology," said Bob Thresher, director of the U.S. Department of Energy's National Wind Technology Center. Thresher said wind power is becoming "a cost-effective source of energy and a hedge against other fuel sources." Greg Abel, president of MidAmerican Energy Holdings, said the company plans to freeze its electricity rates in Iowa through 2010. Source: Energy Central 3/26/2003.

Current from the Tides

Man only needs to exercise his engineering ingenuity to convert the ocean's surge into a national asset." This statement sounds like it comes from a forward-thinking scientist or engineer, touting today's next hot trend in clean, renewable energy: harnessing tidal energy to produce electricity. In fact, it was President John F. Kennedy who spoke those words, way back in October 1963, a mere month prior to his assassination. He was voicing his support for the Passamaquoddy Tidal Power Project, an ambitious plan to tap the tidal power of Maine's Passamaquoddy Bay. "I think this (Passamaquoddy Tidal Power Project) can be one of the most astonishing and beneficial enterprises undertaken by the people of the United States," said Kennedy's addition to the Congressional Record of the 88th Congress. "I understand that, measured by the customary feasibility standards, the Passamaquoddy-St. John's River project now meets that test." Four decades later, Kennedy's vision of tapping the tides is becoming a reality. Worldwide, tidal power projects are capturing the cyclical, gravity-fueled motion of the ocean, providing one more clean energy alternative to help efforts to wean the world off fossil fuels blamed for global warming. The Pacific Northwest, where tides regularly fluctuate dramatically and produce strong currents, is also exploring the new resource, illustrated by a demonstration project near Neah Bay on Washington's Olympic Peninsula and a B.C. Hydro investigation off the shores of Vancouver Island.

In the first utility-scale effort of its kind in the States, the Neah Bay project is 1-megawatt offshore demonstration by Mercer Island start-up AquaEnergy Group Ltd, the Clallam public utility district, and the Makah Nation. Rather than rely directly on tidal currents, the Neah Bay project generates electricity using floating bouys moored in water 150 to 200 feet deep. Wave action moves the buoys up and down, creating a pumping action that produces pressurized seawater. That seawater is then directed into a turbine that drives a conventional 1-megawatt electrical generator, roughly enough electricity to power 150 homes. "Once this permitting and development precedent has been set, we believe offshore wave power has the potential to satisfy 5 percent to 10 percent of total US power demand within 20 years," said Alla Weinstein, CEO of AquaEnergy, to Energy Insight.

According to AquaEnergy and the project's partners, the offshore technology is already cost-competitive. The $2-million project is expected to generate power at about 6 cents per kilowatt-hour. If expanded to 100 MW, the cost could drop to 4 or 5 cents/kWh, which is near the cost of hydropower. "We are entering the market with the same cost characteristics that it has taken wind power 25 years to attain. And our cost-effectiveness will only improve with experience," noted Weinstein in Energy Insight. Plus, ocean energy has other advantages over wind. It's predictable and provides a constant stream of power, unlike intermittent wind gusts. It doesn't entail land use battles or the visual blight that accompanies a vast windfarm. Plus, it also gives more bang for the buck: since seawater is 832 times as dense as air, the kinetic energy available from a 5-knot ocean current is equivalent to a wind velocity of 270 kilometers per hour.

This last fact explains why Vancouver-based Blue Energy's patented Davis turbines, a vertical-axis windmill design with blades that turn in ocean current, can create 14 megawatts of power in a 7 mile-per-hour current. Sitting on the ocean floor, the turbines turn at a slow 25 rpm, allowing fish to swim through, while other larger marine life such as seals or whales are protected by cages that encase the machinery. The turbines can even be strung together into a fence underneath a bridge, an idea that Blue Energy pitched two years ago to Washington State during plans to remodel the Tacoma Narrows Bridge. The company proposed to build a second bridge beneath the 50-year-old Narrows bridge, with tidal power turbines underneath that would generate electricity. Martin Burger, Blue Energy's president, told the Seattle Times that the system could generate about 440 megawatts, enough to power about three-quarters of Tacoma's daily load and about one-third of Seattle's. Unfortunately, the final plan for the second Narrows bridge settled on a $849 million, toll system bridge.

Blue Energy's tidal turbines could see use in B.C., however, where B.C. Hydro is planning a tidal power demonstration project off the coast of Vancouver Island. Under the broad idea of making the Island self-supportive for its energy needs, BC Hydro intends to install about 10 megawatts of wind, 6-8 MW of micro hydro energy and up to 4 MW of ocean wave energy there. The utility, one of Canada's largest, commissioned a study two years ago that found B.C. has vast potential when it comes to tidal energy. As pointed out by previous Tidepool contributor and Victoria resident Guy Dauncey in Common Ground, in its analysis of 100 sites along B.C.'s coast where the current is more than 3 knots, Triton Consultants found 10 sites capable of producing more than 100 megawatts each. Overall, another 55 sites had currents of just over 3 knots, all together totaling 2,225 megawatts. All told, it's enough power to equal a quarter of the province's entire power production, more than is used by all of Vancouver Island. As is usually the case when it comes to renewable energy resources, the rest of the world is already ahead of much of North America. In France, one of the world's first commercial applications of using water currents for energy produces 320 megawatts of energy on the Rance River. On Canada's Bay of Fundy, where the extreme tidal difference can reach 50 feet, a tidal power station is in use. Scotland is planning a network of underwater power stations, consisting of an array of massive propellers that are spin around with the tidal flow. And the small town of Kvalsund at the northernmost tip of Norway recently became the first in the world to its electricity from a sub-sea power station that runs on tidal currents. The Phillipines and other Pacific Island nations, with their chains of small islands and narrow ocean inlets, also make perfect candidates for tidal power. The before-mentioned Blue Energy is working with the Phillipines government on the details of a four-mile-long tidal fence of Davis turbines between two islands. As reported in the New York Times, an experimental partnership between the island nation of Palau and Japan's Saga University plans to both desalinate seawater to produce much-needed drinking water for the country's 20,000 residents while also producing electricity. The plan would capitalize on a technology that captures energy by exploiting the difference in temperatures between the surface of the sea and the depths of the ocean. Source: E-mail from Mary Jane Parks 3/28/2003.

Sandia Lab Creates Thermonuclear Energy

Scientists at Sandia National Laboratories said yesterday they have achieved thermonuclear fusion, a process that takes hydrogen from water to produce an abundance of clean energy. Fusion is a nuclear process that generates power by pushing atoms together to make larger atoms. When the atoms are fused together, a large amount of energy is released. Sandia researchers said they have achieved fusion in a warehouse-sized device called the Z-machine. "Fusion power would make our dependence on certain energy sources from around the world go away," said Jeffrey Quintenz, director of Sandia's Pulsed Power Sciences Center (Sue Vorenberg, Albuquerque Tribune, April 8). The fusion process is essentially detonating a hydrogen bomb so tiny it is not dangerous. Fusion is safer than nuclear fission -- the basis of today's nuclear power plants -- because it does not produce radioactive waste. Even proponents of fusion say widespread application of the technology is years away. Decades more of study and costly reactors are needed before a commercial fusion plant is possible, experts say. Source: New York Times, 4/8/2003 via Environment and Energy Daily.


For more information on Renewable Resources go to: http://www.es.wapa.gov/links/renew_tech.htm


Outreach, Education, Reports & Studies

Relationships Between State, Local and Tribal Governments

As State and Local governments around the country face budget cutbacks and restrictions, many municipalities are looking at tribal communities and enterprises as potential revenue sources. In the May issue of American Indian Report we will explore how local economies are impacted by the growth and success of Tribal economic development. Join us for this important, timely issue to make the connection between state, local and tribal governments. Companies, Associations and government agencies looking to build relationships with Tribal Governments across the nation, this is your opportunity. Use this issue of American Indian Report to jump start your efforts and expand your state & local efforts to include Tribal Governments. http://www.americanindianreport.com/. Source: American Indian Reports 3/27/2003.

Two Important Wind Meetings April 13th to 17th, Denver, Colorado

If you’re an electric cooperative of public power utility wanting to learn about wind generation opportunities and key technical issues, please attend two very important meetings in Denver, Colorado. The Cooperative Research Network of National Rural Electric Cooperative Association and the U.S. DOE Wind Powering America Program are holding a two day workshop entitled “Wind Generation Opportunities,” hosted by Tri-State Generation and Transmission. For more information on this event go to: http://www.crnweb.org/Events/CRNwindapril.pdf. The second meeting is sponsor by the Utility Wind Interest Group April 16 & 17th also hosted by Tri-State G&T. The theme for this meeting is “Successful Utility Wind Integration: Addressing Key Technical Issues.” For more information on this very important annual UWIG meeting, go to: http://www.uwig.org/uwig-AnnualMeeting03-co.html.

Two Papers on Demand Response Initiative for Contingency Reserves

Brendan Kirby and I recently completed two papers for the New England Demand Response Initiative (NEDRI) dealing with the use of demand resources for contingency reserves:

Both papers are posted on the Publications page of my website, www.EHirst.com. Although these papers focus on New England and are likely to be modified by the NEDRI participants, they contain much information useful throughout North America. In particular, the papers note the feasibility and benefits of using retail loads (especially those with thermal or product-storage capabilities) for spinning reserve, the most valuable and most expensive contingency reserve.
The first paper focuses on policy issues to encourage demand participation in these markets. Key recommendations include:

The final NEDRI report is expected to be complete in June and will be posed at www.raponline.org. Please let Eric know if you have any comments or questions on either of these papers. Source: Eric Hirst, 360-656-6691, 4/9/2003.

Energy Storage Council

The prospect of using stored electric energy to capitalize on the wide swings between on-peak and off-peak prices, provide ancillary services, shore up the transmission infrastructure, and reduce dispatch costs incurred by generating assets makes bulk energy storage technology one of the most promising new areas of the electricity industry. The Energy Storage Council believes that bulk energy storage will become the "sixth dimension" of the electricity value chain following fuels/energy sources, generation, transmission, delivery, and customer energy services. The ESC promotes the development and deployment of energy storage technologies and provides the industry education and Washington representation that is essential for energy storage to penetrate the new electricity economy. See their web site at: http://www.energystoragecouncil.org/ .

UWIG Distributed Wind Project Website

The Utility Wind Interest Group (UWIG) Distributed Wind Impacts project website is up and running. You will be able to find the latest information on the project status and deliverables here. The project has been ongoing for the last several months. It is designed to develop a set of information resource and engineering software application tools to aid distribution and planning engineers in their assessment and application of wind generation at the distribution system level. This is applicable to single turbines or small clusters of turbines on a distribution feeder. All project deliverables are web-based and can be accessed through the project website at the following web address: http://www.uwig.org/uwigdistwind/. Note that access to the project deliverables are password protected in the Members area of the website. In order to access the members area, you must be assigned a member account. All UWIG members are eligible for a Members account. If you do not already have an account, or do not remember your password, please email Karen Lane at klane@electrotek.com. Additionally, note that project deliverables will be added to the appropriate areas of the website as they are completed, including software tools after they have been beta tested. In addition to the informational and software tools, project progress reports and project email lists are also available from the Members area of the project website. Source: Karen Lane, Project Coordinator, Utility Wind Interest Group, 4/8/2003.

Deregulation Process, Governance Structures and Efficiency: U.S. Electricity Sector

This paper is an empirical assessment of the comparative efficiency of governance structures in an environment marked by high uncertainty. We analyze the short-term impact of retail deregulation on the productive efficiency of electric utilities in the United States. We argue that there are transitory costs linked to the process of deregulation. The business strategy literature suggests different governance structures to cope with uncertainty linked to changing regulatory environments. Transaction cost economics suggests that firms may reduce their exposure to the uncertainty created by the process of deregulation by adopting vertical integration strategies. Organizational scholars on the contrary argue that firms vertically disintegrate and adopt flexible governance structures to increase their adaptability to the new conditions. Our empirical analysis is based on 177 investor-owned electric utilities representing 83% of the total U.S. electricity production by utilities from 1998-2001. Our results show that the process of deregulation has a negative impact on firms' productive efficiency measured using Data Envelopment Analysis. However, firms that are vertically integrated into electricity generation or that rely on the market for the supply of their electricity are more efficient than firms that adopt hybrid structures combining vertical integration and contracting. Download this paper in Adobe Acrobat format: http://www.ucei.org/Working_Papers/EPE_004.pdf. Source: Magali Delmas and Yesim Tokat, UC Energy Institute, March 2003.


For more information on Educational Resources go to: http://www.wapa.gov/es/resources/renew.htm


News from Washington

DOE Awards $316 Million to Coal Projects

The Department of Energy (DoE) chose the first eight projects to participate in the administration's Clean Coal Power Initiative and expects to contribute $316 million of their $1.3 billion total cost. Three projects are aimed at reducing power plant emissions in accordance with President George W. Bush's Clear Skies Initiative:

Three other projects are intended to reduce greenhouse gases:

Two additional projects are aimed at reducing air pollution via advanced gasification and combustion systems to extract energy from waste coal piles in Pennsylvania and West Virginia:

For more information on this publication, or to subscribe to the print edition, visit http://www.coalage.com. Source: PowerMarketers.com 3/26/2003.

Senate Environment Committee Passes Reliable Fuels Act

The Renewable Fuels Association (RFA) today applauded the Senate Environment and Public Works (EPW) Committee for approving S. 791, the Reliable Fuels Act. The bill, passed by voice vote this morning, is nearly identical to the renewable fuels standard (RFS) fuels agreement passed by the Senate last year. "EPW Committee approval of the Reliable Fuels Act represents another important milestone on the road to enact a robust RFS," stated Bob Dinneen, RFA president. "With committee approval in both the House and Senate we look forward to strong, bipartisan support during floor action. We urge the Congress to quickly adopt the RFS in order to address pressing environmental, energy security, and economic development concerns."

Key provisions of the RFS compromise include:

The bill is expected to be incorporated into the Senate's comprehensive energy legislation when it is considered by the full Senate. For more information, visit the Renewable Fuels Association website at: www.ethanolRFA.org. Source: RFA Release 4/9/2003.


For more information on legislative activities go to: http://www.es.wapa.gov/links/renew_wash_dc.htm


State Activities, Marketing & Market Research

Houston's Reliant Energy Helps Launch Plan to Use 162,000 Trees to Improve Air

When Curtis Baker sold a chunk of his East Texas ranch to a conservation group earlier this year, he knew it would take generations for the pasture to convert back to its natural bottomland forest. What he hadn't counted on was the trees being used to help clean air pollution warming the Earth's atmosphere. But a 569-acre piece of Baker's Smith County property is now part of a worldwide experiment between government and industry to curb global warming by replanting cropland and protecting forests. "My concern was that the land needs to be forested, needs to be put back like the good Lord made it," Baker said. "I had not really heard of this type of project. I was amazed how much (pollution) you can recapture." Houston-based Reliant Energy, which along with the state and The Conservation Fund will officially introduce the project today in Austin, paid $160,000 for the 162,000 seedlings that now dot Baker's land.

During the next 70 years, these oaks, pecans and mayhaws -- now just tiny wisps among fields of clover and buttercups -- will remove as much as 215,000 tons of heat-trapping carbon dioxide from the atmosphere. A portion of the carbon dioxide will be converted to oxygen through photosynthesis. The rest will be stored in the trees' bark, branches and roots -- a process scientists call carbon sequestration. For Reliant and other industries facing increasing pressure to reduce pollution, the process promises to offset some of the carbon dioxide they produce when burning fossil fuels. "Going out to plant trees to plant trees is one thing. Going out to plant trees for carbon sequestration is a heck of a lot different," said Joe Wisniewski, chief operating officer of Environmental Synergy Inc., the Atlanta-based company that planted the trees for Reliant in February. Such long-term storage of carbon is a major tenet of President George W. Bush's voluntary program to curb global warming. The plan, announced earlier this year, is the United States' alternative to the 1997 Kyoto Protocol, an international agreement that requires participating countries to reduce heat-trapping gases such as carbon dioxide.

U.S. energy companies, assuming the voluntary program to reduce carbon dioxide will become mandatory, are funding reforestation and habitat protection projects in several countries. In 2001, Dynegy paid ESI to reforest nearly 1,200 acres of bottomland habitat in the Richland Creek Wildlife Management Area in Freestone and Navarro counties. Other companies are experimenting with injecting carbon deep within the Earth, and enhancing the natural carbon-absorbing abilities of micro-organisms in soil. Reliant and others are banking that should carbon dioxide become regulated in the United States, the tons of carbon dioxide being taken out of the atmosphere now could be used as credits for reducing pollution later, or sold for profit to other companies trying to cut emissions. The trees on Baker's property will be actively monitored to see how much carbon dioxide is absorbed. The data will then be submitted to the Department of Energy, which estimates that plants and trees already sequester 2 billion tons of carbon each year -- about 15 percent of what the United States releases annually. The U.S. Department of Agriculture estimates that projects such as the one being tried by Reliant could become a $5 billion-a-year industry by 2035. "This gives us an opportunity to get some firsthand experience with carbon sequestration and carbon credits," said Fred McGuire, vice president of environmental safety and industrial health for Reliant Energy, a company that operates 117 power plants nationwide. Each year, these plants release millions of tons of carbon dioxide. Per ton, the carbon dioxide savings on Baker's property cost Reliant Energy less than $1. In European markets, already trading carbon dioxide because they signed onto the Kyoto treaty, the value of a ton of carbon dioxide is between $6 and $12. "It's not only a bargain from the standpoint of carbon credits, but it is also a bargain because we have excellent habitat restoration," McGuire said.

The tree planting alone will only offset a fraction of Reliant's emissions. "We are fully aware that we are never going to meet our climate change challenge just through sequestration and through reforestation. We just couldn't plant enough trees to deal with the cumulative emissions," said Larry Selzer, president of The Conservation Fund, a national nonprofit that purchased the Baker property for $600,000 on behalf of the state, and was later reimbursed by the Texas Parks and Wildlife Department. Selzer said that reforestation projects will make some progress in solving the problem of global warming, while technologies to control pollution are developed. "If we could switch to some other technology to control carbon dioxide emissions, that would be wonderful, but that's not going to happen for a decade," Selzer said. But some scientists question the long-term viability of reforestation. Hurricanes, wind storms, fire and drought can all affect the growth of trees and how much carbon they are able to sequester. Also, trees eventually reach a threshold where they no longer store carbon, making the benefits of reforestation finite. "Carbon sequestration will uptake carbon for a while, but you need some things to offset our energy consumption," said Bruce McCarl, an agricultural economist at Texas A&M University. The United States, with only 4 percent of the world's population, accounts for 25 percent of carbon dioxide emissions.

"Is there any benefit to building this wooden bridge to the future, which affords us only 50 years?" McCarl asked. Conservationists and wildlife biologists say yes. Through reforestation projects, cash-strapped state and federal governments can subsidize the purchase and restoration of public lands. Reliant provided $50 per acre to the parks department to take care of the Baker property, now part of the Old Sabine Bottom Wildlife Management Area. Source: Houston Chronicle 4/8/2003.

VT Senate Approves Measure Requiring Renewables

The Vermont state senate recently voted 21 to three in favor of a bill featuring a "renewable portfolio standard" that requires the state's utilities to purchase one percent of their electricity from renewable-based generation sources in 2004, increasing to two percent in 2005 and three percent in 2006. However, state legislators did not approve an amendment proposed by state senator Mark Shepard that would have only imposed the requirement if the utilities were able to obtain permits to build renewable energy generation facilities in the state. State officials said the legislation also promotes "green pricing," which allows utility customers to purchase electricity generated using renewable or "clean" resources. Additionally, the bill gives the Vermont Public Service Board the authority to consider "alternative regulation schemes" that provide "greater profits" if the state's utilities meet "standards for encouraging efficiency and using renewable energy." The bill will now be submitted to the Vermont house of representatives for consideration. Source: Montpelier Argus 4/7/2003 via EIN Renewable Energy Today 4/9/2003.

Nevada Renewable Study: over $21 Billion in Gross State Product

Nevada could realize nearly $21.5 billion in gross state product (GSP) and grow thousands of jobs through the year 2035 by simply meeting the state's renewable portfolio standard -- according to a study commissioned by the Nevada Renewable Energy and Energy Conservation Task Force. The study, conducted by Mary Riddel, Ph.D., and Keith Schwer, Ph.D., of the Center for Business and Economic Research at the University of Nevada, Las Vegas, examined the potential for energy generation using renewable energy sources within Nevada. It was released to the Nevada Legislature today. Among the study's major findings:

Currently, 3.9 percent of Nevada's annual consumption of nearly 36,000 gigawatts (gWh) is produced from renewable energy resources, responsible for approximately 850 jobs in Nevada directly, indirectly or through induced consumption effects. "This study clearly supports Nevada's aggressive efforts to move to a renewable, sustainable energy economy," said Rose McKinney-James, Chair of the Nevada Renewable Energy and Energy Conservation Task Force. "It's a clear demonstration of the dramatic role that continued development of a strong renewable energy industry and progressive policy will have on the economic well being of our state as a whole as well as on our counties, our cities and our citizens." The study was formally unveiled today at an educational event hosted by the Nevada Renewable Energy and Energy Conservation Task Force at the Legislature in Carson City. Legislators, regulators, renewable energy industry professionals, advocates, citizens and others gathered to discuss the status and future of renewable energy in Nevada.

The Task Force also awarded the inaugural REACH (Renewable Energy and Conservation Honors) Award to Dr. Patrick Herron, who served for five years as the assistant superintendent in the facility division for the Clark County School District in Las Vegas. During his tenure, Herron directed the retrofitting of many existing public schools, and helped design newly constructed schools in order to make them energy saving and energy savvy. Between 2000 and 2002, Herron's efforts and contributions helped save the school district $4,417,301 in energy related costs. The event was co-sponsored by Sierra Pacific Power Company, Nevada Power Company, Sunrise Sustainable Resources Group, Advanced Thermal Systems, Energy Works Consulting and ORMAT. Copies of the Riddel/Schwer Report, entitled, "The Potential Economic Impact of Nevada's Renewable Energy Resources" will be available on line is available via email from Misty Young at misty@kps3.com. The Nevada Renewable Energy and Energy Conservation Task Force is committed to helping Nevada become a national leader in renewable energy and obtain an unparalleled level of energy independence. Nevada's Renewable Energy and Energy Conservation Task Force is made up of the following members: Rose McKinney-James, Chair; Jane Long, Ph.D., Vice Chair; Bob Balzar; Tim Carlson; Bob Cooper; Russ Fields; Dan Geary; Sam Routson and Mark Russell. Source: Business Wire 4/7/2003.


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


Grants, RFPs & Other Funding News

USDA Invites Applications for the Renewable Energy and Energy Efficiency Grant Program

On April 8, 2003, the United States Department of Agriculture (USDA) announced the availability of new federal grants for farmers, ranchers and other rural businesses to help purchase renewable energy systems and to make energy efficiency improvements. USDA's action implements Section 9006 of the 2002 Farm Bill, which authorizes $23 million in funding for clean energy incentives each year between 2003 and 2007. It is important to note, however, that the administration has proposed to eliminate this funding for FY04. A strong response to this year's program will help protect funding for future years. The guidelines are available at: www.rurdev.usda.gov/rd/nofas/2003/rep040803.txt

In addition, ELPC is creating a web page where further information and resources related to these guidelines will soon be available, see it at: www.elpc.org/farmbill. Please check back regularly as more information is added. Please contact John Moore (312/795-3706) or Faith Bugel (312/795-3708) if you have any questions. Source: Environmental Law & Policy Center, 4/9/2003.

Million Solar Roofs Initiative

Nominate a Million Solar Roofs Initiative individual or partnership for one of nine awards to be presented during the American Solar Energy Society's annual conference in Austin, Texas in June 2003. Applications are due Monday, April 21, 2003. Visit the MSR http://www.millionsolarroofs.org/articles/static/1/1046750970_1023713684.html web site to download the application. Source: Jane Pulaski, 4/9/2003.


For more information on funding solicitations go to: http://www.wapa.gov/resources/funding.htm


This news item comes to you as a service of Western's Renewable Resources Program.

Western Area Power Administration, 12155 W. Alameda Parkway, Lakewood, Colorado, 80228-8213,
Phone: 720-962-7423; Fax: 720-962-7427; E-message: Randy Manion.