Capitol Connection

Obama to Announce Climate, Energy Team

WASHINGTON, Dec. 10, 2008 - As the President-elect makes his transition into the White House, a couple of names have surfaced as likely candidates for Obama's all-star green team.

CNN reports that Carol Browner, administrator of the Environmental Protection Agency (EPA) under President Bill Clinton, is expected to be named "climate czar" -- a newly created post inside the White House. Meanwhile, the Energy Secretary position is likely to be filled by the Nobel Prize winning physicist and director of the Lawrence Berkeley National Laboratory Steven Chu.

Obama's climate and energy picks make for a strong mix of the old with the new. Chu's selection is especially exciting since Berkley Lab is where Dr. Bruce Banner first activated the nanomeds inside his body, causing him to transform into the mighty Hulk. On a more serious note, if confirmed, it will be quite refreshing to at last have an energy expert in charge of national energy.

Obama Pushes Alternative Energy as Investors Flee

WASHINGTON, Dec. 10, 2008 - (Bloomberg) - President-elect Barack Obama’s plans to encourage U.S. development of alternative energy have put him at odds with investors, who are abandoning the industry. Indexes of solar, wind and ethanol stocks have fallen more this year than the price of crude oil in New York trading. Their losses are also bigger than those in stock-market benchmarks.

The [Bloomberg] chart [of the day] includes the World Solar Energy Index, known as the Solex, which tumbled 71 percent through yesterday. The loss included an 11 percent decline yesterday after Germany’s Q-Cells SE, the world’s largest maker of solar cells, reduced sales and earnings forecasts for this year and next.

Energy Conversion Devices Inc. is most at risk for similar shortfalls among U.S. producers, according to Timothy Arcuri, a Citigroup Inc. analyst.

All of the company’s biggest customers have “turned up the heat for pricing concessions significantly,” Arcuri wrote in a report yesterday. “We see no reason why the stock can’t still be cut in half from here.” Arcuri also reiterated a “sell” recommendation on SunPower Corp., the second-biggest U.S. supplier of solar modules, which convert sunlight into electricity.

The Bloomberg Wind Energy Index, another global indicator, and a gauge of eight U.S. ethanol producers also appear in the chart. They fell 58 percent and 83 percent, respectively, for the year through yesterday. Crude has declined 56 percent this year.

Obama wants the U.S. to generate more power from renewable sources to reduce the country’s dependence on imported oil and to curtail greenhouse gases. He is studying proposals designed to foster investment in solar and wind energy, said Dan Reicher, an energy and environment adviser to the president-elect.

Department of State and Energy Establish Global Partnership to Green U.S. Embassies and Consulates

WASHINGTON, Dec. 8, 2008 - The U.S. Department of State and the U.S. Department of Energy (DOE) today signed a Memorandum of Understanding (MOU) with the intent of conducting energy assessments to improve environmental and energy management at U.S. embassies and consulates around the world. State Department and DOE officials jointly signed the MOU in the State Department’s Treaty Room. Under Secretary for Management for the State Department Patrick F. Kennedy and DOE Acting Assistant Secretary for Energy Efficiency and Renewable Energy John Mizroch signed on behalf of their agencies. This MOU will support the President’s goal of reducing concentrations of greenhouse gases in the atmosphere and improving energy security.

“DOE is pleased to partner with the Department of State to demonstrate worldwide leadership in energy efficiency and sustainability,” Acting Assistant Secretary for Energy Efficiency and Renewable Energy John Mizroch said. “It’s important that the U.S. lead by example to meet the energy and environmental challenges of this century by implementing innovative practices in energy management, improving our energy efficiency, and maximizing renewable energy resources in our overseas missions.”

This partnership between the Departments of Energy and State will globally advance the ambitious environmental, energy and transportation goals of the Energy Independence and Security Act (EISA) signed by President Bush on December 18, 2007. State operates and maintains over 18,000 facilities in more than 280 locations around the world, and has completed 62 new embassy compounds since 2001 with another 34 under construction as part of State’s twelve-year effort to build 180 new embassies and consulates.

Changing the Climate: Looking Towards a More Cost Effective, Energy Efficient Future

WASHINGTON, Nov. 28, 2008 - The U.S. Environmental Protection Agency and U.S. Department of Energy are helping states lead the way in an effort to promote low cost energy efficiency. More than 60 energy, environmental and state policy leaders from across the country have come together to produce the updated National Action Plan Vision for 2025: A Framework for Change. The action plan outlines strategies to help lower the growth in energy demand across the country by more than 50 percent, and shows ways to save more than $500 billion in net savings over the next 20 years. These strategies, if implemented, are estimated to help reduce annual greenhouse gas emissions equivalent to those from 90 million vehicles.

“The significant action taken by states, utilities and energy customers advances low cost energy solutions,” said Robert Meyers, principal deputy assistant administrator for EPA’s Office of Air and Radiation. “The plan is a big step toward a more energy-efficient future, helping to reduce greenhouse gas emissions while growing the American economy.”

The action plan outlines critical steps for state policy makers to take toward the goal of increasing the nation’s investment in low cost energy efficiency programs. The plan also shows the progress states are making toward these goals. States, utilities and other organizations are spending about $2 billion per year on energy efficiency programs. Through this investment, states, utilities and other organizations have saved the energy equivalent of more than 30 power plants generating 500 megawatts of electricity saving energy customers nearly $6 billion annually. This effort helped reduce annual greenhouse gas emissions equivalent to those emitted from 9 million vehicles.

NREL’s Clean Energy Forum Attracts National Investment Community

Oct. 30, 2008 - The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) convened its most successful clean energy investment forum to date October 28-30. The 21st Clean Energy Industry Growth Forum attracted about 500 investors, entrepreneurs, scientists, and policymakers.

This year’s Forum, occurring amid unstable financial global markets, featured expert panels that offered advice to entrepreneurs seeking financing in this tumultuous environment. “The marriage of favorable clean energy policies, a receptive investment community and R&D successes are accelerating renewable energy and energy efficiency technologies in the marketplace,” said NREL Director Dan Arvizu. “The clean energy investment discussion at the Forum is vital to our nation’s security and advancement of clean energy technologies.”

More than $1.2 billion has been raised by companies presenting at the Forum since 2004.

Four entrepreneurial companies were singled out from the 35 competitively-selected presenters to win the 2008 Best Venture Awards sponsored by Xcel Energy Foundation. Jay Herrmann, Vice President, Control Center of Xcel Energy, presented four cash awards for excellence totaling $25,000.

DOE Extends Application Deadline for Renewable Energy Loan Guarantee Solicitation

WASHINGTON, Oct. 29, 2008 - The U.S. Department of Energy (DOE) announced today that it is extending the due date for submission of applications for loan guarantees under Title XVII of the Energy Policy Act of 2005 for the June 30, 2008 solicitation (DE-FOA-0000005) for energy efficiency, renewable energy and advanced transmission and distribution technologies (the “Renewables Solicitation”). The application submission due dates for stand-alone and manufacturing projects, as well as the Part I applications for large-scale integration projects, have been extended from December 31, 2008 to February 26, 2009.

Due to the extensive interest expressed in the Renewables Solicitation, DOE is extending the time period for submission of applications in order to provide adequate time for all interested parties to develop and submit applications. Any project sponsor that has already filed an application with DOE pursuant to the Renewables Solicitation may amend, supplement or revise that application on or before February 26, 2009.

Today’s announcement does not change the deadline for submission of Part II applications for Large-Scale Integration Projects under the Renewables Solicitation, which are due on a date that shall be no later than April 30, 2009, as set by DOE in written notices to eligible applicants.

DOE’s Loan Guarantee Program, authorized by Title XVII of the Energy Policy Act of 2005, aims to facilitate early commercial use of new or significantly improved technologies in energy related projects. Loan guarantees issued by DOE will be backed by the full faith and credit of the United States. Projects supported by loan guarantees will help fulfill President Bush’s goal of reducing our reliance on imported sources of energy by diversifying our nation’s energy mix, increasing energy efficiency and improving the environment.

President Bush Signs Energy Tax Credit Extension into Law. Measure Includes New Breaks for Small Scale Wind.

WASHGINTON, Oct. 3 - Only hours after the House of Representatives passed legislation on Friday extending billions of dollars in tax credits for the solar, wind and biodiesel industries President George Bush signed the measure into law in a private ceremony. The tax credits were part of the 700 billion dollar financial rescue package, and ended months of uncertainty for renewable energy companies.

The House voted 263 to 171 in favor of the tax breaks. This package was overwhelmingly passed by the Senate earlier this week

Legislation to extend the renewable energy tax credits, which were set to expire at the end of the year, had been stalled by a dispute between the House and the Senate over how to pay for the tax breaks.

However, attaching the energy tax credits to the economic rescue package gave them new life.

The legislation extends for one year the production tax credit for wind energy, with an eight-year extension for investment tax credits for businesses and homeowners to install solar energy equipment. The measure also added, for the first time, tax credits of up to $4,000 for small scale wind installation.

Buyers of plug-in electric cars would receive tax credits ranging from $2,500 to $7,500.

Renewable energy companies praised the House vote.

John Berger, chief executive officer of Texas-based Standard Renewable Industry, said the extensions of the tax credits will be a boon for the solar industry.

"We are at a critical time period in the solar industry in the country and around the world. We are just starting to see some economies of scale, some prices decreasing in the solar panels," Berger told Reuters. "Having the 8-year extension will absolutely cement in place getting solar to be part of conventional energy."

The news of including the tax credits in the bailout package did push shares of solar energy companies up sharply this week.

The Solar Energy Industries Association said the tax package provides the solar companies with "policy certainty" and said the package is "the most significant federal policy ever enacted for the solar industry."

The American Wind Energy Association said "these tax credits are essential to the continued growth of wind energy, to the economic and energy security of the United States and to a successful beginning in the fight against global warming."

Energy efficiency groups also applauded the bill's approval.

"It would have been unthinkable for the Congress to leave town for the elections having approved this massive rescue plan while ignoring the needs of beleaguered American consumers on Main Street who face spiraling energy costs," said Brad Penney, director of government relations for the Alliance to Save Energy.

DOE to Provide Up to $17.6 Million for Solar Photovoltaic Technology Development

WASHINGTON, Sep. 30, 2008 - The U.S. Department of Energy (DOE) today announced up to $17.6 million, subject to annual appropriations, for six early stage photovoltaic (PV) module incubator projects that focus on the initial manufacturing of advanced solar PV technologies. Including the cost share from industry, which will be at least 20 percent, the total research investment is expected to reach up to $35.4 million. These projects support President Bush’s Solar America Initiative, which aims to make solar energy cost-competitive with conventional forms of electricity by 2015. Increasing the use of alternative and clean energy technologies such as solar energy is critical to diversifying the Nation’s energy sources to reduce greenhouse gas emissions and dependence on foreign oil. As the lead agency for President Bush’s Advanced Energy Initiative, DOE is committed to the diversification of our energy resources by spurring widespread commercialization and deployment of clean solar energy technologies. The development of innovative technologies will help to provide long-term economic, environmental, and security benefits to the United States. “These projects will help promote the development of a diverse set of photovoltaic technologies and ensure that the U.S. is a world leader in next-generation, cost-effective solar technologies,” Acting Assistant Secretary for Energy Efficiency and Renewable Energy John Mizroch said. “These solar photovoltaic incubator awards will help accelerate the time it takes for innovative start-up companies to get their technologies to market.”

Through these projects, companies will seek to accelerate the time it takes to move innovative PV technologies from laboratory demonstration into pilot production, and to reduce the cost, improve performance and expand the manufacturing capacity of PV modules. These awards will help fill the commercialization pipeline with advanced solar technologies and bring a new generation of PV product suppliers into the marketplace. The announcement of this funding opportunity was made March 3, 2008.

DOE announces 'Net-Zero Energy' awards

WASHINGTON, Sept. 30 (UPI) -- The U.S. Department of Energy announced the first phase of awards valued at $15 million in its "Net-Zero Energy Commercial Building Initiative."

Officials said 21 companies will team with two Energy Department national laboratories to speed market adoption of current energy-saving technologies and produce real-building design solutions yielding significant, measurable energy savings in their commercial buildings.

The department said it requested proposals from its national laboratories and private sector companies to achieve cost-effective savings of 50 percent above the standard set by the American Society of Heating, Refrigerating and Air-Conditioning Engineers for new commercial building designs, and a savings of 30 percent for retrofits to existing buildings.

The awards, in the form of technical assistance from the department's Pacific Northwest National Laboratory in Richland, Wash., and the National Renewable Energy Laboratory in Golden, Colo., include:

--Retailers: Best Buy, JCPenney, John Deere, Macy's, SuperValu, Target, Toyota and Whole Foods Market.

--Commercial Real Estate Firms: CB Richard Ellis, Forest City Enterprises, Hines, InterContinental Hotels Group, The Opus Group, ProLogis, Regency Centers, Ryan Companies U.S., Simon Property Group, Tishman Speyer and The Westfield Group.

--Financial Institutions: Bank of America and the PNC Financial Services Group.

National Renewable Energy Laboratory Studies Possibility of Using Contaminated Sites for Renewables Including Solar and Wind. Study Claims So-Called "Limbo Lands" Could Be Revitalized

Oct. 3, 2008 - More than 9,000 polluted parcels in 50 states known as "limbo lands" were analyzed and rated according to their potential to host wind and solar electricity facilities, or produce biofuels. Learn more about these land parcels on the EPA Web site.

Limbo lands are underused, formerly contaminated sites; they include former Superfund sites, landfills, brownfields, abandoned mine lands, former industrial sites, and some government installations, including military posts.

The sites vary from 1 million acres of Western range to inner-city parking lots. Many sites turn out to have excellent or even superb renewable energy potential for at least one technology, according to the analysts who built the research tools and conducted the study over the past year.

Many of the sites also have roads, transmission lines and other infrastructure features that would make energy development less expensive and more attractive, and are not near established neighborhoods that would oppose the projects.

The results for 9,267 entries were compiled in an online database and mapped using Google Earth for public use.

Senate Approves Renewable Tax Credits as Part of Financial Rescue Bill

WASHINGTON, Sept. 30 - Both the Senate and House have approved bills that would extend tax credits for renewable energy sources like wind and solar power, for the next generation of hybrid cars and for energy-efficient homes and commercial buildings. All these credits are useful, but in the case of wind and solar power they are absolutely essential. History has shown that when the credits expire — which they will at the end of this year if nothing is done — investments shrivel.