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Week of 
November 3, 2003

Green Power

Farmington Office Associates Purchases RECertificates

New York-based marketer of renewable energy and greenhouse gas certificates EAD Environmental recently announced that Farmington Office Associates, the "owner and operator of an office complex housing many of Connecticut's premier dental practices," has committed to offsetting 100 percent of its energy consumption with renewable energy certificates (RECertificates) from EAD.

Under a two-year commitment, EAD said Farmington Office Associates purchased approximately 620,000 kilowatt-hours of EAD RECertificates sourced from national wind farms and small New England hydroelectric facilities. Farmington Office Associates principal Robert Hall described the commitment as a "pragmatic investment in the present and for the future."

"We hope our example will encourage other businesses both large and small to make a similar commitment for their current electrical needs," said Hall. Contact: Samantha Unger, EAD, phone 212-806-0205. Source: EIN Renewable Energy Today, 10/15/2003.

First Illinois Utility Offers Green Power

The City of St. Charles has become the first utility in Illinois to offer a green pricing program to its customers. In partnership with ComEd and Community Energy Inc., the municipal utility is offering residents and businesses the ability to donate a fixed monthly amount, which will be used to purchase renewable energy certificates from ComEd. The certificates represent the output of local renewable energy projects, including landfill gas and a 51-MW wind project to be constructed just north of Peoria and completed in 2004. Source: Green Power Marketing Monthly Update - September 2003.

Proven Engineering to Power New Plant With Renewables

Stewarton, Scotland-based renewable energy systems manufacturer and installer Proven Engineering Products, Ltd. recently announced plans to generate power for its new 10,000-square-foot facility, which the company moved into earlier this year, with solar and wind resources.

"The creation of our new facility presented the perfect opportunity to demonstrate the benefits of wind power and its effectiveness in powering something as energy-intensive as a manufacturing facility," said Proven Engineering managing director Gordon Proven. Company officials noted that U.K. Steel Enterprise is providing funding for the new plant. Source: Evening Times, 10/15/2003 via EIN Renewable Energy Today, 10/15/2003.

PGE Selects Green Mountain

Portland General Electric has once again selected Green Mountain Energy Company as its primary supplier of renewable energy products and green power marketing affiliate. The new contract will run through the end of 2006. PGE customers have access to three different green power products: "PGE Renewable Usage," which is a 100% renewable power option from Green Mountain and includes new wind resources located in the Pacific Northwest; "PGE Salmon Friendly Plan," which adds a contribution for salmon restoration to the 100 percent renewables product; and "PGE Clean Wind," which allows customers to pay a fixed amount for wind power from the Pacific Northwest. PGE will begin a new customer education and information campaign about the program later this year. Source: Green Power Marketing Monthly Update - September 2003.

Federal Green Power Purchasing Soars

The U.S. Department of Energy's Federal Energy Management Program reports that federal purchases of green power have surged in recent months. Over the last year, federal purchases increased from 125 million kWh to more than 300 million kWh-the Department of Defense alone has at least 19 agreements to purchase renewable energy or renewable energy credits, totaling approximately 200 million kWh annually. Green power purchases represent nearly one-half of the renewable energy resources acquired by the federal government since 1990 to meet the intent of Executive Order 13123, which is to encourage greater use of renewable energy by the federal government. Source: Green Power Marketing Monthly Update - September 2003.

NSTAR to Offer Green Power Option

Boston, MA-based electric and gas utility NSTAR recently announced it has filed with the Massachusetts Department of Telecommunications and Energy to offer customers "NSTAR Green," a new "environmentally sound" energy option for homes and businesses.

If approved, NSTAR, which plans to partner with green power providers, said the new program would meet 25 percent of a customer's electricity needs by generating energy from renewable resources, including wind, solar and hydro power. NSTAR noted that the program would be available to all residential and small commercial customers who currently receive either "standard offer service" or "default service."

"NSTAR Green is a significant step forward in promoting renewable energy options," said NSTAR customer care and corporate relations senior vice president Joseph Nolan. "NSTAR is committed to offering our customers an increasing number of choices to meet their electricity and customer services needs."

In addition, NSTAR said it plans to install 2,000 watts of solar panels on the roof of the company's Westwood office building to promote renewable energy and provide a training site for the solar power industry as well as "opportunities for future technology development." Contact: NSTAR. Source: EIN Renewable Energy Today, 10/16/2003.


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


Renewable Energy Technologies

Rising Wind - Time to Take a Closer Look

Wind power is a reality today. More than 2,000 MW of wind generation - enough to serve more than 600,000 average American homes - were installed in the U.S. in the past two years alone. With continued government encouragement to accelerate its development, this increasingly competitive source of energy can provide at least six percent of the nation's electricity by 2020 (about 100,000 MW of nameplate capacity) and revitalize farms and rural communities - without consuming any natural resource or emitting any pollution or greenhouse gases.

Perhaps because of its growing success, questions about the feasibility and cost of integrating large amounts of wind into the grid have arisen within the traditional energy community. Some are disturbed by the fact that the wind does not blow all of the time, making a wind plant's generation variable and generally outside human command - thus quite different from other utility generating options.

Many of the assertions that have been made about wind integration issues over the past two decades have a grain of truth. Indeed, it would be better if wind were "dispatchable" like most other generating resources. Yet despite its modest drawbacks, the wind energy industry has continued to advance steadily, weathering a difficult policy environment, and now stands as the "poster child" of the energy crises of the 1970s.

The amount of wind in the U.S. generating mix, and in many regional portfolios, can be substantially increased with little or no operating difficulty. Wind today amounts to roughly 0.6 percent of national generating capacity, and 0.3 percent of electricity supply. Grids in California and Texas today operate with roughly 10 times that level of wind energy without difficulty. Grids in Denmark, and. parts of Germany and Spain, operate with roughly 100 times that level of wind energy and only now are beginning to think about "special" investments in order to allow further expansion of wind energy.

Critics often suggest that because of its variability, wind cannot serve a given, steady amount of consumer demand. In fact, electricity demand is a constantly moving target. The more accurate picture is one of a number of generating plants moving on and off line throughout the day to meet a steadily shifting load. At any one time, only some 15 percent of the total generating capacity on line is consciously "dispatched" to keep load and generation in balance. Obviously, a variable generating source fits into this latter picture much more readily. In fact, at relatively low "penetrations" (where wind is providing less than, say, 10-20 percent of the electricity on a system in any given hour), its variability is essentially lost within the larger, shifting variability of the system.

A real-world example of a high-wind utility system can be seen in western Denmark, where the utility ELTRA obtains more than 100 percent of its electricity from wind during some low-load hours of the year (the surplus is exported), and where wind constitutes more than 50 percent of required system capacity and non-dispatehable small combined-heat-and-power plants constitute another 30 percent. ELTRA is indeed making changes to its system to improve its operations and to accommodate new offshore wind farms, but there is no indication that a wholesale shift away from wind is needed or desired.

Finally, critics have also suggested that the added costs of incorporating wind's variability will be substantial - 2 cents/kWh or more. But a series of recent studies by Xcel Energy, the Bonneville Power Administration, and PacifiCorp, as well as several European countries, have found the actual cost at "moderate" penetration levels (15-25 percent of the total energy requirement) to be roughly an order of magnitude lower, or, at most, about 0.2 to 0.3 cents/kWh.

Given the many advantages that wind offers to utility managers (reduced water use, no emissions or wastes to manage, fixed energy price, added diversity and reduced fuel price risk, strong economic development benefits for rural states and counties), it is time to give this energy source a closer look. Source: Jim Caldwell, AWEA via Power Engineering via Energy Central Professional Daily - 10/17/03

Brown Ranch Installs GeoExchange System

Brown Ranch, a new master-planned community in Montrose, CO, recently announced plans to conduct an open house on Saturday, October 4 to showcase the newly installed "GeoExchange" system at the information center of Brown Ranch community Cottonwood Pointe.

According to Brown Ranch, the system, which will heat and cool the center, "uses the renewable energy of the earth to provide year-round comfort -- naturally." "The beauty of nature is one of the most compelling features of Brown Ranch," said developer John Moir. "GeoExchange is energy efficient and very environmentally friendly. We're pleased to show you can 'fuel with Mother Nature' as nature is such an important part of Brown Ranch." Contact: Tracie Thede, Cottonwood Pointe, phone 970-596-1727. Source: EIN Renewable Energy Today, 9/29/2003.

U.S. on Track to Top 6,000 MW of Wind by Year’s End

AWEA is reporting that the U.S. looks likely to install 1,400-1,600 MW of new wind power this year, reducing demand for natural gas and bringing new jobs and tax revenues to cash-strapped states, while at the same time helping to achieve cleaner air. While the outlook for the balance of the year is strong, AWEA warned that the wind industry's future beyond year's end will be strongly influenced by whether Congress extends the wind production tax credit scheduled to expire Dec. 31.

According to AWEA's quarterly assessment of the wind energy market, the wind project developments that are underway could increase the cumulative total of U.S. installed wind capacity to over 6,000 MW. That level of wind capacity will be able to produce approximately 16 billion kWh of pollution-free electricity, enough to serve 1.57 million average U.S homes.

In the past month, a number of large projects have been announced that will increase the year-end tally. AWEA executive director Randall Swisher commented, "We see more reason for optimism than we did three months ago. The market appears to be firming as the end of the year draws nearer." Developers are pushing to complete projects by the end of the year in order to qualify for the PTC. A quick extension of the credit is urgently needed, Swisher said, to ensure that the momentum gained toward industry growth is not lost as it has been in the past when the credit expired: "The PTC provides a simple, yet powerful and necessary, boost to the development of clean, renewable wind power."

A three-year extension of the PTC is included in both the House and Senate versions of comprehensive energy legislation now pending in Congress. Swisher also called on energy bill conferees to support Senate-passed provisions that would establish a national Renewables Portfolio Standard requiring that 10 percent of the nation's electricity come from renewable energy sources by 2020 and a Small Turbine Investment Credit for homeowners who install residential wind machines. An updated state-by-state map of wind energy projects is available on AWEA's Web site. Source: September Windletter, 10/2/2003.

Solar Model Home Opens in MA

Real estate developer DiPlacido Development Corporation, in conjunction with Conservation Services Group, recently hosted the model home opening of "the first new Energy Star Homes development in Massachusetts to incorporate a solar photovoltaic electric system" at the Wampanog Estates in Wrentham, MA.

The event also marked the official launch of the "Sun Power For New Homes" program, an initiative partially funded by the Massachusetts Technology Collaborative and administered by CSG. According to officials, the Wrentham model home's 1.3-kilowatt solar electric system features 12 roof-mounted solar panels that are expected to generate 1,250 kilowatt-hours per year and save homeowners more than $150 per year on energy costs, based on a projected 10-year average utility rate of 14 cents per kWh. Officials said the PV systems, which can be priced at more than $15,000, will cost homeowners an extra $3,000 to $5,000 "after MTC and state tax incentives."

"Today marks an important milestone for clean energy," said MTC renewable energy trust director Robert Pratt. "By incorporating PV technology into a brand new home as a standard feature, DiPlacido is helping to bring renewable energy to the mainstream and setting the stage today for more green residential development." Contact: CSG. Source: EIN Renewable Energy Today, 9/25/2003.

First New York Hydro Project to Be Certified

Reliant Energy's Beaver River project recently became the first hydropower facility in New York State to earn the Low Impact Hydropower Institute's Low Impact Hydropower Facility certification. This voluntary program is designed to help identify environmentally sound, low impact hydropower facilities. LIHI is a non-profit organization based in Portland, Maine, which offers this certification for hydropower facilities nationwide to help energy consumers in emerging "green" markets.

Reliant owns and operates 71 hydro facilities in New York with a total operating capacity of 672 megawatts. Reliant's Beaver River project is located on the Beaver River in upstate New York, northeast of Syracuse. The Beaver River is a tributary to the Black River, which flows into Lake Ontario. The project consists of eight, separate hydropower plants that are licensed as one project: Moshier, Eagle, Soft Maple, Effley, Elmer, Taylorville, Belfort and High Falls. The project was re-licensed by the Federal Regulatory Energy Commission in 1996.

The plants were constructed between 1898 and 1930, offering an installed capacity of 44.8 megawatts and an average annual generation of 197,285 megawatt-hours. The Beaver River project is operated in a peaking mode (water is stored and released in accordance with energy needs, subject to restrictions for environmental protection), while providing the base flow downstream of High Falls, the last Reliant plant on the river.

To receive the certification, Reliant had to demonstrate that the Beaver River project met LIHI's eight, environmentally rigorous, low impact criteria, addressing: river flows, water quality, fish passage and protection, watershed health, endangered species protection, cultural resources, recreation use and access, and whether or not the dam itself has been recommended for removal. Reliant successfully completed LIHI's application process, which included a public comment period, review by an independent technical consultant, consultations with state and federal resource agencies, and evaluation by the LIHI Governing Board, which includes leaders in the river conservation and renewable energy fields.

Reliant Resources (NYSE: RRI), based in Houston, Texas, provides electricity and energy services to wholesale and retail customers in the U.S. and Europe, marketing those services under the Reliant Energy brand name. For more information, visit the company's Web site or visit LIHI. Source: PR Newswire -Reliant Energy via Power Marketers.com Daily Power Report, 10/28/2003.


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Outreach, Education, Reports & Studies

Corporate Guide to Green Power Markets (#5)

The World Resources Institute has published its fifth Corporate Guide to Green Power Markets: "Renewable Energy Certificates: An Attractive Means for Corporate Customers to Purchase Renewable Energy," introduces a new type of renewable energy product that customers can buy to reduce the environmental impact of their activities. RECs represent the amount of pollution avoided when electricity is generated from renewable resources instead of from fossil fuel sources (e.g., coal, oil, natural gas). Purchasing RECs allows a customer to claim these environmental benefits regardless of its location and independently of its electricity supply arrangements. See the fifth guide.

The latest guide was written by Vince Van Son of Alcoa Inc. and Craig Hanson of the World Resources Institute. The Corporate Guide series is based on WRI's experience with the Green Power Market Development Group, a unique partnership of twelve companies dedicated to building corporate markets for green power. In September, the Group announced 97 megawatts of new green power purchases. For more information, visit the Green Power Group. For more information on the Corporate Guides, please contact Craig Hanson at 202-729-7624. Get a copy of previous Corporate Guide installments. For hard copies of this or future installments, please send your mailing address to greenpower@wri.org. Source: WRI Release, 10/28/2003.

Evolution Markets' Monthly Market Updates for September 2003

Evolution Markets' Monthly Market Updates for September 2003 are now available. The reports are hosted on their Web site. To view reports for:

• OTC Coal

• SIP NOx

• HGA NOx

• SO2

• Compliance RECs

• Voluntary RECs

• Greenhouse Gas

Please click on evomarkets. Also, please note that the Greenhouse Gas price report and past issues of the Monthly Market Reports are available only to registered users of the evo.ID market data Web services. Registration is free. Click on this link to create an account. Source: Evan A. Ard, Evolution Markets LLC, 914.323.0210.

Eighth National Green Power Marketing Conference Session Schedule

The Eighth National Green Power Marketing Conference is in Chicago, IL, November 3-5, 2003. See the conference agenda. Source: Green Power Marketing Monthly Update - September 2003.

U.S. DOE Distributed Energy Resource Project and Contact Data Base

U.S. Department of Energy has recently release for public use a Distributed Energy Resource Project and Contact Database. The data base shows where U.S. DOE DER project oriented funds are going. For example, go to this database and click on the state you want to see and it will bring up the DOE projects being funded and the associated project partners. DOE is still fine tuning this data base and will continue to do so until they feel it works well. See the data base. Source: Chuck Collins, U.S. DOE Seattle, 10/1/2003.

Draft Renewable Resources Development Report

The staff of the California Energy Commission is seeking comments on the Staff Draft Renewable Resources Development Report (Publication No. 500 03 080D). This report is required under Senate Bill 1038 (SB 1038, Sher, Chapter 515, Statutes of 2002). The report updates the Preliminary Renewable Resource Assessment, which the California Public Utilities Commission is using as the initial basis for the its SB 1038 transmission plan. The report is also a supporting document for the Public Interest Energy Strategies Assessment Report, which in turn supports the Energy Commission's Integrated Energy Policy Report. This document is available from the Energy Commission's Web site. Source: Bob Aldrich, CEC, 10/1/2003.

Interconnection Group Releases New Model for Net Metering and Interconnection Rules

A U.S. renewable energy group has released draft guides for policy-makers who are considering net metering or interconnection policies.

The Interstate Renewable Energy Council says comments are still welcome on its model interconnection rules for small generators, and the concepts draw heavily from the consensus interconnection documents filed in the Federal Energy Regulatory Commission's rule-making on small generator interconnection. The document includes standard form interconnection agreements.

There are three procedure paths in the model, ranging from simplified inverter connections of less than 10 kW, to generators up to 2 MW and facilities up to 20 MW. The smallest units are expected to be interconnected with little review, while the larger units will require extensive interconnection study and grid modifications.

IREC released the draft to encourage interconnection of green power facilities, although the standard is technical and can apply to inverter-based, synchronous or induction generators. It assumes that retail competition exists in the jurisdiction under consideration, and says all utilities should offer net metering at non-discriminatory rates to customers that generate electricity on the customer's side of the meter.

The document suggests that total application and processing fees for small systems procedures should not exceed $50 plus $1 per kW of capacity, with additional fees only if the customer requires system modifications, with larger systems limited to $100 plus $2 per kW capacity.

Once an interconnection has been approved, the distribution company shall not require a customer to test the facility except for an annual test and for any manufacturer-recommended testing. Get a copy of the Model Distributed Generation Interconnection Procedures and Net Metering Provisions. Source: Refocus Weekly, 10/29/2003.

"BioEnergy" Conference to be Held in Denver Nov. 6

Sponsors of the Nov. 6 conference, "BioEnergy: The Future of Rural America" have ambitious goals: improving America's economy, environment and national security.

Achieving the federal government's goal of tripling U.S. use of bio-based products and bioenergy by 2010 could create $15 billion to $20 billion in new income for farmers and rural America and reduce fossil fuel emissions by an amount up to 100 million metric tons of carbon.

Producing biofuels from renewable, domestically supplied biomass presents a tremendous opportunity for our country to ease the burden of protecting our interests in the Persian Gulf, according to the U.S. Department of Energy.

"The DOE is working with other federal agencies and the private sector on research and demonstration projects producing alternative energy from agriculture, including methane from livestock operations and the production and use of biomass crops," said Bill Becker, Regional Director of U.S. DOE's Denver Office. Becker will present "BioEnergy's Potential to Power the American Economy" at the event in the conference center of Tri-State Generation and Transmission, Inc. in Westminster, CO.

The government is working to develop 21st century bio-based industries that use trees, crops and agricultural and forestry wastes to make fuels, chemicals, and electricity. Colorado has significant opportunities to fuel its economic growth with these renewable energy resources.

"We have an extraordinary wealth of bioenergy assets," says Joe Lambert, Program Manager in the Governor's Office of Energy Management & Conservation, moderator of the 11/6 event.

"Forests, farms, and ranches form the foundation. Building on that foundation is our state's national leadership in research and entrepreneurial talent, ranging from the National Renewable Energy Laboratory in Golden to the farmers, ranchers and others who are pioneering the conversion of biomass to energy. Our office is also facilitating bioenergy projects that provide important examples of how bioenergy can benefit the entire nation."

Non-profit electric cooperatives serving the nation's rural communities are becoming increasingly involved in the development of bioenergy, says Mark McGahey, Marketing Manager of Tri-State G& T, an electric generation and transmission cooperative serving 44 electric distribution cooperatives in Colorado, Wyoming, Nebraska, and New Mexico.

"Recently the National Rural Electric Cooperative Association signed an agreement with the U.S. Department of Agriculture to identify and advance cost-effective opportunities for rural electric cooperatives to partner with farmers and ranchers to increase the use of renewable energy including biomass gasification power plants, waste-to-energy systems, thereby improving rural economies and reducing greenhouse gas emissions," McGahey explained.

"The development of renewable energy is a key component of President Bush's energy strategy for reducing America's dependence on imported oil, and an opportunity for America's farmers, ranchers and rural small businesses to harness the untapped renewable energy resources available on farms and fields throughout our nation," said Under Secretary for Rural Development Thomas Dorr.

The agreement recently signed between NRECA and USDA will expand bioenergy education and outreach efforts, including workshops and programs to ensure that farmers, electric cooperatives and others have "cutting edge" research and information available to them.

"Our upcoming event Nov. 6 is designed to be an example of the education, information and networking needed to increase the development of bioenergy nationally," said conference organizer Mike McCoy, also of Tri-State G&T. "There are already several bioenergy installations in communities to which we provide power," McCoy noted. "However, there could be many more in addition to those in Lamar, Wheatland, and Raton."

"Anaerobic digestion" of animal wastes is one bioenergy opportunity described at the conference. Methane gas produced by anaerobic digestion can be burned in a generator or microturbine. In the future, it could also be used in fuel cells.

"Biodigesters hold a lot of opportunity for agriculture, particularly for those involved in confined animal feeding operations," says Chuck Sopher of Global Energy Partners. "Technology has progressed to the point where anaerobic biodigesters are becoming commercially viable. These digesters can help feeding operations turn mortality and waste products from a liability into an asset by converting them into energy."

The feasibility and economics of this type of system will be illustrated in a case study showcasing Colorado Pork in Lamar, CO. According to the OEMC, the farm has been producing about 35 percent of its energy use and about 50 percent of its peak electrical load with a generator running on the gas derived by anaerobic digestion.

Decision making and analysis tools on whether or not such an operation makes sense for other ag operators will be presented by Ed Torrero of NRECA's Cooperative Research Network. Scott Haase of McNeil Technologies will describe the economic feasibility of bioenergy developments and public policy innovations that could accelerate the commercialization of these emerging energy technologies.

Composting, another way to convert animal wastes to usable resources, will be explained by Cal Kuska, a consultant who has helped establish composting operations in Asia, Latin America, Kuwait and Africa.

Forest materials and wood wastes can be "co-fired" in existing coal-fired power plants. Wood chips can also be "gasified" and then used to generate electricity in turbines.

Scott Bruntjen, Mayor of Nederland, CO, will explain their community's vision of using forest thinnings and waste wood to power Nederland's community center. In addition to providing a productive use for forest biomass that is a wildfire hazard, Nederland had an additional goal. "Part of our resolution on the Iraq War was to do something about getting rid of our dependence on oil," says Bruntjen.

Contributing to U.S. energy independence is the mission of several other conference speakers. Ed Lehrburger, President of PureVision will describe "The Dawning of the Age of BioRefineries." Since 1992 PureVision has been developing enzyme-based waste recovery technologies to replace fossil fuels. PureVision, based in Ft. Lupton, CO, recently was awarded a $2 million grant from the USDA to help demonstrate the economics of PureVision's biomass recovery technology that converts corn stalks and other wastes into bio-products such as ethanol.

Researchers at the National Renewable Energy Laboratory are developing alternative transportation fuels that could dramatically improve our environment, economy, and energy security. NREL's research is working toward developing cost-competitive alternatives to gasoline, reducing U.S. reliance on imported oil, and creating major new domestic industries.

"Biodiesel" made from renewable sources such as vegetable oils and recycled restaurant greases is one such fuel, notes conference speaker Shaine Tyson, of NREL's Renewable Diesel Project. "Biodiesel reduces air pollution, reducing cancer causing emissions by 94 percent compared to petrodiesel. It also produces 78 percent less carbon dioxide than diesel fuel."

NREL and other DOE labs' research hopes to reduce the cost of biodiesel to less than $1 per gallon over the next five years.

The renewable fuel is already available in an increasing number of areas due to the expansion of companies such as Blue Sun BioDiesel who is celebrating the opening of another public pump in Denver on Nov. 14th.

"We're pleased to invite the public to join us at this exciting event," says Jeff Probst of Blue Sun Biodiesel, also a conference speaker.

Purchasers of renewable fuels are the driving force deriving the public benefits associated with their use. Dan Bell in the Public Works Department of the Town of Breckenridge, CO is the concluding speaker. Breckenridge, a pioneer in the use of biodiesel in municipal vehicles, is a great example of what vehicle fleet operators can do to improve our environment, economy and future.

"Leadership is what's needed to accelerate the use of bioenergy," says conference organizer Peggy Plate of the Western Area Power Administration. "Attendees as well as our conference speakers are the vanguard in the effort to power new economic development and U.S. energy independence with bioenergy."

The public/private sector partnership organizing the "BioEnergy: The Future of Rural America" conference includes Tri-State Generation and Transmission, Inc., power supplier to 44 electric distribution cooperatives in four states, the U.S. Department of Energy's Denver Regional Office, the Colorado Governor's Office of Energy Management and Conservation, the Western Area Power Administration, the Electric Power Research Institute, Global Energy Partners, and the Delta-Montrose Electric Association.

For more information, contact Tom Polikalas of DMEA at 970-240-1245. Get detailed conference agenda and registration form. Source: Tom Polikalas, DMEA, 10/30/2003.


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News from Washington

Western BLM Public Lands —Wind Energy Development PEIS

The Bureau of Land Management is developing a programmatic environmental impact statement to evaluate establishment of a national wind energy program and additional related policy. The scope of the Programmatic EIS will include all BLM-administered lands in the western United States (excluding Alaska). The Programmatic EIS will address the possible amendment of individual land-use plans as they relate to future wind energy development and the magnitude of development activities. A project Web site providing information about the Programmatic EIS and how to participate in the process has been developed.

The public scoping period is open from Oct. 20, 2003 until Dec. 19, 2003. Comments on the scope of the Wind Energy Development Programmatic EIS can be provided several different ways. They can be provided in person at one of five public meetings; electronically via the project Web site; by mail; or by toll-free FAX. The mailing address for comments is BLM Wind Energy Programmatic EIS Scoping, Argonne National Laboratory EAD/900, 9700 S. Cass Avenue, Argonne, IL 60439. The toll-free FAX number is 1-866-542-5903.

Public scoping meetings will be held in the following locations on the dates provided below:

If you are interested in learning more about the Wind Energy Development Programmatic EIS, want to sign up on the project mailing list, or wish to participate in the scoping process, please visit the project Web site or call your BLM State Office. Source: Argonne National Laboratory, 10/17/2003.

Abraham Announces Canada to Join International Partnership for Hydrogen Economy

Following a meeting today with Minister of Natural Resources Canada Herb Dhaliwal, U.S. Secretary of Energy Spencer Abraham announced Canada's intention to join the International Partnership for the Hydrogen Economy.

"We are pleased to learn of Canada's decision to join the partnership for hydrogen and fuel cell technology research, development and demonstration activities," Secretary Abraham said. "International cooperation is key to achieving the hydrogen and fuel cell program goals outlined by President Bush in his last State of the Union address."

Secretary Abraham called for international hydrogen collaboration in his speech to the International Energy Agency Ministerial Meeting last April in Paris, France. The Secretary will host a Ministerial Meeting of the International Partnership this fall in the United States.

Several other countries have shown interest in joining the partnership. The International Partnership will support the deployment of hydrogen energy technologies, establishing collaborative efforts in hydrogen production, storage, transport, and end-use technologies; common codes and standards for hydrogen fuel utilization; and the sharing of information necessary to develop hydrogen fueling infrastructure.

A growing number of countries have committed to accelerate the development of hydrogen energy technologies in order to improve their energy, economic, and environmental security. For example, the United States has committed $1.7 billion for the first five years of a long-term research and development program for hydrogen, hydrogen infrastructure, fuel cells, and hybrid vehicle technologies. The European Union has committed up to 2 billion Euros to long-term research and development of renewable and hydrogen energy technologies. Canada has a well developed hydrogen and fuel cell technology research and development program addressing applications in the transportation and electric utility sectors.

The use of hydrogen as an energy carrier offers several important advantages relative to existing systems. Hydrogen can be derived from multiple feedstocks, which fosters fuel versatility. End-use technologies that employ hydrogen, such as fuel cells, are more efficient and can be used safely while improving the environment and public health. "The vision of the International Partnership for the Hydrogen Economy is that a participating country's consumers will have the practical option of purchasing a competitively priced hydrogen power vehicle, and be able to refuel it near their homes and places of work, by 2020." Secretary Abraham said. Joint Statement by the United States Department of Energy and the Department of Natural Resources Canada:

In this context, we see the potential of the hydrogen economy in establishing a secure energy supply through clean and environmentally sound systems for production, storage and use of hydrogen. We will seek to build on our ongoing collaboration and complementarities in our research efforts and actively explore and understand technology options, including renewable energy sources, for boosting the development of hydrogen energy. We agree to:

These joint efforts will assist us to make the most of our domestic investments; bring to bear the expertise of the public and private sector to solve the complex challenges surrounding the hydrogen economy; establish sound, universally compatible codes, standards, and regulations for hydrogen fuel storage and utilization. They will provide a strong and broad foundation for bilateral and multilateral cooperation, such as under the proposed International Partnership for the Hydrogen Economy, the International Energy Agency and the Memorandum of Understanding between the Department of Energy and Natural Resources Canada for collaboration on Energy Research and Development. Source: U.S. Newswire, 10/16/2003 via Daily Power Report, 10/17/2003.

U.S. Regulator Rules on Ownership of ‘Green Tags’

The federal energy regulator in the United States has ruled that state legislation controls the ownership of renewable energy credits (green tags) for small generators. In June, a group of waste-to-energy operators filed a petition for an interpretation of whether avoided cost contracts that were signed under the Public Utility Regulatory Policies Act convey any renewable energy credits or similar tradable certificates to the purchasing utility. The companies argued that the power purchase price from a utility pays only for the energy produced by that facility and not for any environmental attributes associated with the site.

The companies included American Ref-Fuel, Covanta Energy, Montenay Power and Wheelabrator Technologies. The Federal Energy Regulatory Commission noted that RECs are relatively recent creations by individual states, with seven states adopting Renewable Portfolio Standards that incorporate unbundled RECs. Any requirement to decide if the sale of power at the wholesale level automatically transfers ownership of state-created RECs is a matter for state law, not PURPA, it stated.

FERC heard that developers "face risks in designing and constructing a plant that will be a viable long-term investment" and that RECs need to remain an incentive. Allowing the qualifying facilities to trade RECs "will facilitate the development of liquid and efficient markets for RECs, which will in turn create incentives for the development and use of renewable energy resources for the generation of power."

Opponents to the petition included a number of U.S. utilities, including Edison Electric Institute, which argued that PURPA contracts require a utility to purchase the entire output of a facility under a bundled contract that includes renewable attributes "which are not separable from the capacity and energy." Get a copy of the FERC decision. Source: Refocus Weekly, 10/29/2003.


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State Activities, Marketing & Market Research

Oklahoma Gas and Electric Brings OK Wind Energy Center Online

Oklahoma electric utility OG&E Electric Services recently announced the dedication of the new 68-turbine Oklahoma Wind Energy Center in Woodward, OK. According to the utility, Florida-based FPL Energy owns and operates the wind center, which generates 50 megawatts of wind power for OG&E.

"We strongly believe that this careful first step with wind power is an excellent way to go for two main reasons," said OG&E chairman, president and CEO Steve Moore. "First, it will give us a chance to see how it works within our existing network of power plants and power lines. Second, it allows electric consumers to choose for themselves." Contact: Brian Alford, OG&E, phone 405-553-3187, Web site. Source: EIN Renewable Energy Today, 10/14/2003.

Hawaii Gives Tax Break to Renewables Investors

Hawaii has enacted a corporate and personal income tax credit for renewable energy systems placed in service after June of this year. The credit for wind power systems will be 20 percent of installation costs, capped at $1,500 for residential systems, at $200 per unit for multifamily residential properties, and at $250,000 for commercial property.

Credits are also available for solar thermal and photovoltaic systems. The law stipulates that any new federal tax credit established after June and any utility rebate must be subtracted from the system costs before applying the Hawaii state credit against income tax. Source: September Windletter, 10/2/2003.

Two Oklahoma Towns Blown Away by Wind Farm Benefits

Rural Oklahomans remember the benefits oil-field roughnecks and wildcatters brought when they crowded into local hotels and restaurants 20 years ago. Two Western Oklahoma communities are getting a taste of some of that same prosperity today, but this time the wildcatters are looking for energy in the sky instead of 12,000 feet underground.

Construction crews moved into Woodward and the Lawton area this spring when they began work on the state's first two wind farms. The work is winding down and the generators are expected to be operating by the end of the year. Local business owners say the construction phase has been a welcome boon and they are thankful for the recent influx of cash and customers.

Woodward's Northwest Inn made about $50,000 more than normal this summer because of contract workers who were in town to build the wind farm, general manager Dorris Ames said. "Sometimes you have a night where just a few rooms fill up, but with the wind farm, we've reached above our average occupancy almost every night," she said. Some workers stayed at the inn throughout the summer, while others were in town only for a few days to complete a smaller part of the project.

As many as 150 workers were on site at a time in Woodward, but only about 30 are left as the construction phase of the project is winding down, project manager Gary Bouska said. North of Lawton, about 80 contractors were working on the Slick Hills wind farm during the foundation phase this summer, project manager William Kelsey said. Nearly 40 workers are now assembling the towers. Most of the contractors on both sites live outside of Oklahoma, but while they are here, they eat at local restaurants and stay at local hotels or apartments.

Besides the influx of money communities received while the wind farms were under construction, the projects also will send additional income to western Oklahoma through royalty payments for at least the next 20 years. Landowners involved in the projects are due to receive up to $4,000 per turbine per year for the lease of the land. "It's a good extra income," said Gary Bouska, project manager for the Woodward wind farm. "I grew up on a farm in Iowa, so I know farming's a hard life and money's hard to come by. Wind power provides really nice money to come by."

The Woodward project is composed of 68, 1.5 megawatt turbines that extend over 13 landowners' properties. The 102 megawatt project is being developed by FPL Energy. The generated electricity from half of the project will be purchased by Oklahoma Gas and Electric Corp. with the Oklahoma Municipal Power Authority buying power from the other half. Construction in Woodward was completed earlier this month and the site is expected to begin operating next month.

The state's other wind farm is under construction on the Slick Hills north of Lawton. That project has 45, 1.65 megawatt turbines on two landowners' properties. Zilkha Renewable Energy Corp. is developing the project and will sell the electricity to the Western Farmers Electric Cooperative. Some landowners will benefit more than others ranging from Roedell, who has two turbines on his property, to Stan Kimbell, who will have 39 turbines on his Slick Hills property. Project developers said they chose the site locations based mainly on sustained wind speeds and proximity to existing transmission lines.

Besides the landowners directly affected by the current projects, many of their neighbors are also benefiting from the development. Don Gilliland, who also owns land on the Slick Hills, said that even though the current wind farm doesn't cross his land, Zilkha has agreed to pay him more than $3,500 a year to reserve the right to build turbines on his property in the future. "The annual income far exceeds what you could get for leasing it for cattle or anything else," Gilliland said. Source: By Adam Wilmoth, The Daily Oklahoman, 9/28/2003 via Tom Gray, 10/1/2003.

Shell WindEnergy, PPM Energy to Construct New CO Wind Farm

Shell WindEnergy, Inc. and PPM Energy, Inc. recently announced the construction of a new wind power project in Lamar, CO. According to the companies, the 162-megawatt (MW) Colorado Green Wind Project, which was developed and is being built by GE Wind Energy, is expected to operate 108 1.5-MW turbines. The companies noted that power generated by the project will be delivered under a long-term contract to the 1.3 million Colorado customers of Xcel Energy.

"The Colorado Green development was borne through a competitive bidding process where it competed against all other forms of electricity generation, including natural gas and coal-fired generation," said PPM Energy CEO Terry Hudgens. "That Colorado Green was found to be one of the lowest-cost alternatives shows what we've said all along: today's wind power is cost-competitive with any other form of new generation." Contact: Anne Knisely, Shell WindEnergy, phone 713-241-4544, Web site. Source: EIN Renewable Energy Today, 10/27/2003.


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


Grants, RFPs & Other Funding News

Green Power Network Posts Requests for Proposals

The Green Power Network, a program by the U.S. Department of Energy and managed by the National Renewable Energy Laboratory, posts recently released request for proposals associated with renewable resources and green power. You can sign-up to receive RFP Updates via E-mail by clicking this Web link. To view the most recently posted RFPs, scroll to the bottom of the RFP Updates page.


For more information on funding solicitations go to: http://www.repartners.org/grants.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.