ACNET Update
6 March 2002
- Introduction to the Arizona Coalition for New Energy Technologies
- Members of the Arizona Coalition for New Energy Technologies
- Honorary Advisory Board Headed by Former U.S. Reps. Salmon and English
- Arizona Legislators form Bipartisan Renewables and Energy Efficiency Caucus
- First Coalition Briefing to Legislators Held at State Capital
- State Legislation Advances Clean New Energy Technologies
- U.S. Senate Begins Debate on Comprehensive Energy Policy Legislation
- Wind Production Tax Credit Passed by Congress and Set for Signing into Law
- Proposed FY2003 Budget Maintains Support for Renewables and Efficiency Programs
- President Bush Announces Global Warming Initiative
- Renewable Energy Resource Map Available from Energy Information Administration
- Future U.S. Energy Use Depends on Renewables and Efficiency
- Fitch Report Examines Effect of Environmental Regulations on Power Industry
- Enron Wind Purchased by GE Power Systems
INTRODUCING THE ARIZONA COALITION FOR NEW ENERGY TECHNOLOGIES
The Arizona Coalition for New Energy Technologies was launched on 11 January 2002 by 16 Arizona businesses and non-profit organizations from throughout the state. This number has grown in to 21 in the past two months. Our members support “environmentally responsible economic growth through the efficient use of Arizona’s abundant and clean sources of energy,” as outlined in our mission statement.
Our coalition will promote awareness of its members’ technologies to policymakers, business leaders, the academic community, the media and other opinion leaders throughout Arizona. We will demonstrate the many important benefits our technologies bring to the economy, the environment and to the energy security of the state and the nation.
In January, our coalition helped facilitate the formation of a bipartisan caucus of Arizona legislators: the Arizona Legislature’s Renewables and Energy Efficiency Caucus. Starting with four legislators, this group has now grown to include 15 state legislators of both parties from the State House and Senate. An article below provides more information on this caucus.
One of the primary outreach vehicles for our coalition will be briefings for state legislators during legislative sessions, conducted under the auspices of the Legislature’s Renewables and Energy Efficiency Caucus. In fact, our first coalition briefing to the caucus was held on 28 February and attracted a good turnout, both by legislators as well as coalition members and other interested parties. The article below on this briefing provides full details on this successful event.
Additionally, we will use newsletters (such as this) to a broad range of Arizona stakeholders and other communications with members to publicize our activities and advance our members’ goals. Throughout our work, we will show that new energy technologies are not just good for the environment, air quality and mitigation of carbon dioxide and other greenhouse gases, but we will also demonstrate that clean new energy technologies provide increasingly important economic benefits to the state through the work of a growing business community.
Our coalition is modeled after the 62-member Colorado Coalition for New Energy Technologies, which has achieved a number of successes since its inception in late 1999. We are incorporated as a 501(c)(3) non-profit, and the Energy Foundation currently provides financial support for our operations.
Membership in the Arizona Coalition for New Energy Technologies is open to businesses or non-profit organizations that share the goals of our mission statement. Most of our members are based in Arizona, though out-of-state companies that do business, or plan to do business, in Arizona, are welcomed.
We look forward to working with businesses throughout Arizona to advance clean new energy technologies and to providing added value to our members through our innovative approaches.
For further information on this new coalition, please contact Craig Cox, Executive Director, or Michael Neary, State Director. A coalition website is under construction.
Thank you.
Craig Cox
MEMBERS OF THE ARIZONA COALITION FOR NEW ENERGY TECHNOLOGIES
A-C-E Builders, Inc. of Kingman
A-C-E Builders, Inc. was established in 1990 and provides international research and development in the construction of sustainable, energy self-sufficient buildings to reduce the level of waste in the environment.
Air Engineering A/C and Heating of Scottsdale
Air Engineering was founded in 1988 and specializes in preventative maintenance, installation, and repair of residential air conditioning and heating equipment. The company promotes the use of high efficiency equipment and proper duct design and installation.
Bergey Wind Power Company is the world’s leading supplier of small wind turbines. With installations in all 50 states and more than 90 countries, Bergey wind turbines have proven to be the best-built and most rugged turbines available. Bergey Wind Power takes pride in offering advanced-technology products that let homeowners generate their own clean power and that can help bring modern services and new opportunities to the world’s rural poor.
BP Solar International LLC of Scottsdale
BP Solar is the world’s largest photovoltaic (PV) manufacturer and has positioned itself at the leading edge in the development of PV technology. Its extensive network of distributors and dealers provide total solar electric power solutions for industrial, commercial, and residential customers throughout the world.
CH2M Hill of Tempe
CH2M HILL is a global project delivery firm, helping clients apply technology and safeguard the environment through a range of integrated services.
The Community of Civano is an emerging community of over 550 homes with a core commitment to the idea of sustainable living in balance with the Sonoran desert environment of Tucson, Arizona. Planned to reflect the best aspects of an old-fashioned village, Civano’s design encourages walking, reduces dependence on cars, and provides for a greater sense of community. Civano’s five builders have designed a variety of home styles using 50% less energy for heating and cooling than a typical new home of the same size. In addition to wood frame homes that meet this strict energy standard, Civano builders offer alternative materials and construction methods, including steel framing, RASTRA, and thermal mass (masonry and adobe) construction plus solar hot water, passive solar orientation, and reclaimed water for landscaping.
Deluge, Inc. of Phoenix
Deluge, Inc. designs, manufactures, markets and services Thermal Hydraulic Engines designed to pump water. These engines are a new application of existing technology and are designed to use a variety of energy sources including various gas products, waste heat and solar energy.
Enron Wind Corp. is a pioneer and world leader in the power generation market and a fully integrated wind power company, designing and manufacturing state-of-the-art wind turbines in North America and Europe. The company also provides power plant design and engineering, project development, financing, and operations and maintenance services. The company has developed and/or sold more than 4,300 wind turbines worldwide, comprising more than 1,400 megawatts and is in the process of being acquired by GE Power Systems.
ETA Engineering Inc. of Tempe
ETA Engineering is an international renewable energy systems designer and distributor, with an experience base dating back to the beginning of the industry. ETA manufactures a full line of controls and regulators used in the various renewable energy technologies.
First Solar, LLC of Scottsdale
Setting the stage for large-scale production of low cost, thin film photovoltaic modules, First Solar has developed breakthrough technology and patented production processes capable of producing solar modules at costs approaching conventional energy cost levels - thus shattering the historic cost barrier of solar solutions.
ForestEnergy Corporation of Show Low
Forest Energy Corporation promotes sustainable, state-of-the-art production of clean heat and power from industrial wood waste and forest thinnings. The company provides markets for residues from forest restoration and forest-urban interface fire hazard mitigation thinning, thereby reducing biomass deposits into landfills and pollution from open burning of biomass. ForestEnergy’s goal is to assist in restoring forest health, reducing fossil fuel dependence/ greenhouse gas emissions and encouraging regional self-sufficiency through the economical conversion of local raw woods to refined biomass fuel to be combusted in new high technology appliances providing energy for homes and businesses in the region.
Global Solar Energy, Inc. of Tucson
Global Solar Energy, Inc. manufactures lightweight, flexible solar photovoltaic (PV) modules, and integrates its PV modules into various types and sizes of portable solar power systems. Global Solar also designs, constructs, and commissions large grid-tied and off-grid solar PV power stations.
Kinko’s, with locations throughout Arizona and the world, is the world’s leading provider of visual communications services, document creation and copying. Named as one of Fortune’s 100 best companies to work for in America, Kinko’s is a privately held corporation with more than 25,000 co-workers and locations in nine countries. Kinko’s incorporates energy efficiency throughout its business operations. As a partner in EPA’s Green Lights (an Energy Star™ Program), its ongoing energy-efficient lighting upgrades will prevent the same amount of air pollution that 4,300 cars produce annually: over 50 million lbs. of CO2 each year.
Kyocera Solar, Inc. of Scottsdale
Kyocera Solar, Inc. is a world-leading supplier of environmentally sound, solar electric energy solutions, with headquarters in Scottsdale and sales affiliates in the Americas and Australia. The company is a wholly-owned subsidiary of Kyocera International Inc. of San Diego, the North American headquarters and holding company for Kyoto, Japan-based Kyocera Corporation.
NativeSUN of Kykotsmovi
NativeSUN is a majority Hopi-owned solar electric design, installation, and maintenance corporation. It has installed over 300 photovoltaic systems in both off-grid and grid connected applications. NativeSUN’s mission is to provide needed services and bring training and economic development opportunities to Native Americans in Arizona and the Southwest.
Natural Lighting Company, Inc. of Phoenix
Natural Lighting Co. Inc. manufactures and installs active and passive daylighting systems, combination daylighting/electric lighting systems and lighting controls. The company has successfully daylit over 10 million square feet of space since 1983 with guaranteed savings. It has numerous patented and patent pending products as well as trademarks.
SolarFarms, Inc. of Phoenix
SolarFarms’ business objective is to bring proven current technology together with mainstream financial investment in a small business environment for the purpose of profitably producing bulk renewable energy with photovoltaic systems.
Southwest Windpower of Flagstaff
Southwest Windpower is the world’s leading manufacturer of battery charging wind turbines for remote homes, sailboats, recreational vehicles, telecommunications, and hybrid systems. The company offers a complete line of wind turbines for virtually any application.
Universal Entech, LLC of Phoenix
Universal Entech provides integrated waste management development, including composting, solid waste processing systems, recycling systems, design/engineering, operation/maintenance and turnkey services.
URS Corporation of Phoenix
URS Corporation is an international consulting, engineering, and construction management company helping clients with a wide variety of energy management and environmental solutions.
Versar, Inc. of Tempe
Versar, Inc., is a publicly held, international professional services firm that applies technology, science, and management skills to enhance its customers’ performance. Versar provides its customers with services in the areas of environment, architecture/engineering, defense and information technology programs. Its highly trained, experienced staff offers practical and creative solutions to clients concerned with understanding environmental issues and minimizing environmental risk while applying the latest web-based technologies.
HONORARY ADVISORY BOARD OF THE ARIZONA COALITION FOR NEW ENERGY TECHNOLOGIES
—Former Reps. Salmon and English Bring Experience and Depth to Coalition
The Arizona Coalition for New Energy Technologies is honored to have two distinguished former Members of Congress as the first members of its honorary advisory board: Karan English of Flagstaff and Matt Salmon of Scottsdale. The participation of former Representatives English and Salmon brings valuable perspectives and experience to the coalition’s activities.
Karan English
Ms. English has served as an Arizona State Representative, Senator, and U.S. Congresswoman. Currently, she is Associate Director for Northern Arizona University’s Center for Sustainable Environments. The Center, established in 2000, brings together the talents and expertise of scientists, educators, independent scholars, business leaders, government agencies, students, community members, and other stakeholders to seek creative solutions to environmental problems through novel initiatives that safeguard natural and cultural values.
Matt Salmon
Mr. Salmon served three terms in the U.S. House of Representatives before retiring in 2000. While in Congress, he was chairman of the U.S. House Renewables and Energy Efficiency Caucus, a bipartisan Congressional Member Organization formed to increase awareness and support for clean new energy technologies. A strong believer in the importance of diversifying our nation’s energy supplies, Mr. Salmon fought successfully in Congress for increased federal budget support for clean energy efficiency and renewable energy technologies. Mr. Salmon is currently a Republican candidate for governor of Arizona.
ARIZONA RENEWABLES AND ENERGY EFFICIENCY CAUCUS FORMED IN LEGISLATURE
—Bipartisan Group to Advance Legislators’ Awareness for New Energy Technologies
The Arizona Legislature’s Renewables and Energy Efficiency Caucus was launched on 16 January 2002 by State Senators Scott Bundgaard (R-Glendale) and Harry Mitchell (D-Tempe), along with Representatives Randy Graf (R-Green Valley) and Debra Norris (D-Sells). A letter circulated by these legislators states that the caucus will inform its members about new developments in renewable and efficient energy technologies. The letter invited all interested legislators to join the caucus, adding that the group plans to hold briefings and site visits in the future. Representatives Laura Knaperek (R-Tempe) and Tom O’Halleran (R-Sedona) were the first legislators to join this new caucus.
This new legislative caucus is based on similar caucuses that have enjoyed success in the U.S. House and Senate, as well as in the Colorado legislature. The U.S. House Renewables and Energy Efficiency Caucus, which was chaired by former Rep. Matt Salmon (R-Arizona) during his tenure in Congress, currently has 203 members representing 42 states. These caucuses have proven to be an excellent way of providing up-to-date, accurate and relevant information to state and federal legislators.
The first caucus event took place last Thursday, 28 February, and this well-attended event featured briefings by three coalition member companies (see next article).
Current members of the Arizona Renewables and Energy Efficiency Caucus are:
Senators Scott Bundgaard (R-Glendale), Ed Cirillo (R-Sun City West) and Harry Mitchell (D-Tempe)
Representatives Mark Anderson (R-Mesa), Meg Burton Cahill (D-Tempe), Ted Carpenter (R-Phoenix), Eddie Farnsworth (R-Gilbert), Randy Graf (R-Green Valley), Karen Johnson (R-Mesa), Laura Knaperek (R-Tempe), Debra Norris (D-Sells), Tom O’Halleran (R-Sedona), Russell Pearce (R-Mesa), Gary Pierce (R-Mesa), Ed Poelstra (R-Tucson)
FIRST COALITION BRIEFING HELD FOR LEGISLATURE’S RENEWABLES AND ENERGY EFFICIENCY CAUCUS
—Member Companies Highlight Benefits of Their New Energy Technologies
The inaugural briefing by member companies of the Arizona Coalition for New Energy Technologies to the Arizona Legislature’s Renewables and Energy Efficiency Caucus was held last Thursday, 28 February at the state capital. This event was successful, with attendance by 12 legislators and approximately 30 interested parties from the business and environmental communities as well as several state agencies.
Doran Dalton of NativeSUN in Kykotsmovi provided details on how solar energy technologies are helping to provide valuable environmental, economic and cultural benefits to Native American communities in Arizona and throughout the region. Andy Kruse of Southwest Windpower in Flagstaff gave an overview of small-wind technologies and provided details on how his company’s products are creating a rapidly growing export market, both to the rest of the country and worldwide. Maruja Vargas, who on behalf Lane Garrett’s from ETA Engineering in Tempe, spoke about the important environmental and societal benefits of all new energy technologies.
For more information on any of these briefings, contact Craig Cox. Another briefing may be held during the current legislative session, and information will be e-mailed to stakeholders as details are firmed up.
STATE LEGISLATION ADVANCES NEW ENERGY TECHNOLOGIES
Clean Power Development Act
The Clean Power Development Act (HB 2963) was introduced in the Arizona House of Representatives on 28 February. Spearheaded by Representative Randy Graf (R-Green Valley), the bill is cosponsored by Reps. Cheryl Chase (D-Kearny), Jake Flake (R-Snowflake), Bobby Lugo (D-Bisbee), Debra Norris (D-Sells), Russell Pearce (R-Mesa), Gary Pierce (R-Mesa), Robert Robson (R-Chandler), and Senator Scott Bundgaard (R-Glendale). The bill contains a number of provisions that are designed to integrate solar, distributed energy and energy efficiency into Arizona energy policy, promote market development by eliminating barriers and strengthening of Arizona’s Energy Office so that it is more effective in promoting policy and programs targeted towards greater use of clean technologies.
As clean-energy advocate Bud Annan of Scottsdale notes, “Arizona’s rate of growth in energy consumption outpaced our rate in population growth last year. This trend when combined with our growing dependence on fossil fuels will worsen our air quality and leave us ill prepared for price increases, supply interruptions and shortages. Despite the growing demand for electricity, Arizona still has thousands of remote homes on Native American lands without power.”
Annan points out that the Clean Power Development Act has “four linking elements to start Arizona down the road to an energy system that provides reliable and affordable electric service for all while minimizing its impacts on communities and the environment.”
The first element, according to a fact sheet prepared by Annan, promotes energy efficiency in state/public buildings and provides incentives and technical informational resources to achieve this efficiency.
Second, HB 2963 alters Arizona’s electricity planning structure to include information that offers alternatives to large-scale generation and transmission. The bill requires that utilities planning construction of transmission lines provide more technical and budgetary studies related to the impact of such additions as well as provide alternatives to new transmission facilities. It authorizes the Corporation Commission to begin development of an energy infrastructure that incorporates distributed energy systems that allow energy to be developed on-site close to the energy demand.
Third, the legislation establishes a requirement that by year 2007 Salt River Project derive 1.1% of the electricity it sells from renewable energy and that 50% of this amount be derived from solar energy. The bill authorizes a small environmental surcharge—35 cents a month per household served by the utility—to help defray the costs of compliance. It authorizes the use of tradable credits as a mechanism for compliance.
Fourth, Annan notes that the legislation builds a foundation for a statewide comprehensive energy policy and consumer education effort. The bill establishes a mechanism to review the operations of the state energy office, requires a consumer energy efficiency and clean energy education effort and forms a renewable resource study committee. For a copy of Bud Annan’s fact sheet on HB 2963, contact him at annan@primenet.com.
Sales Tax Exemption for Solar Energy Devices
The Arizona Legislature is also considering HB 2457 and SB 1336, which deal with Arizona’s sales tax exemption for solar energy devices. This bill would provide for a full sales tax, or transaction privilege tax, exemption for solar contractors and provide retroactive relief for Arizona contractors who have misunderstood Arizona’s contractors’ sales tax exemption and failed to properly charge sales tax on sales.
Sales tax exemptions for solar occur in two places in statute. Separate exemptions exist for contractors and retail sellers of solar energy devices. Contractors were only allowed an exemption on their wholesale cost of the system, while retailers were allowed an exemption on the full sales price of the system. This caused a great deal of confusion regarding the exemption; in fact, even the Arizona Department of Revenue often provided conflicting information to the industry members.
This legislation has passed committees of jurisdiction in both the House and the Senate, and following a technical correction in the Senate, is expected to pass both chambers for transmission to the Governor for signature into law.
As Michael Neary, Executive Director of the Arizona Solar Energy Industries Association (and state director of the Arizona Coalition for New Energy Technologies) notes, “passage of this bill as amended would achieve the solar industry’s goal of providing retroactive relief to contractors who had mistakenly been providing consumers with a full tax exemption, but contractors will lose the exemption at the end of next year. The solar sales tax exemption will continue to exist for retailers of solar energy devices sales.”
DEBATE BEGINS ON COMPREHENSIVE U.S. SENATE ENERGY BILL
—Renewable Portfolio Standard Among Key Issues in Landmark Legislation
The United States Senate began debate on Tuesday on S. 517, the energy policy bill, representing its first major attempt to overhaul U.S. energy policy since 1992. Observers note that sharp differences over issues such as drilling in the Arctic National Wildlife Refuge and vehicle fuel-economy standards will make it difficult to get this legislation passed.
The Senate energy bill includes a Renewable Portfolio Standard (RPS) of ten percent. This policy mechanism would ensure that ten percent of the nation’s electricity is generated from clean new energy supplies, such as wind, solar, geothermal and biomass in an affordable, market-driven manner. Though a final vote on the legislation could take weeks or even months, votes on amendments affecting the Renewable Portfolio Standard are expected to take place soon.
Arizona Senator John McCain (R) has not yet taken a public position on the RPS, while Senator John Kyl (R) is reportedly planning to offer an amendment that would replace the RPS with a provision requiring state “to consider offering consumers access to green power.”
Separately, AP has reported that Senators McCain and John Kerry (D-Mass.) have reached a compromise proposal to increase automobile fuel economy to 36 miles per gallon by 2015. According to the wire service, the compromise measure would allow automakers to satisfy up to 10 percent of the requirement by trading emission credits with other companies that produce greenhouse gases, from power plants to factories to dry cleaners. Current Corporate Average Fuel Economy (CAFE) standards are 27.5 miles per gallon (mpg) for cars and 20.7 mpg for light trucks, which includes minivans, pickups and sport utility vehicles.
For more information on S. 517, visit the Senate Energy Committee’s website at http://energy.senate.gov/. For more information on the Renewable Portfolio Standard, the Union of Concerned Scientists has informative materials available at http://www.ucsusa.org/energy/renewhere.html.
TWO-YEAR WIND PTC EXTENSION PASSED BY HOUSE AND SENATE; PRESIDENT SET TO SIGN BILL INTO LAW
PRESIDENT’S BUDGET MAINTAINS SUPPORT FOR EFFICIENCY, RENEWABLE ENERGY PROGRAMS
President Bush released his administration’s proposed $2.13 trillion federal budget for fiscal year (FY) 2003 on 4 February. Although the budget emphasis is on the war on terrorism and U.S. homeland security, the budget maintains funding for energy efficiency and renewable energy programs, while providing new tax incentives to encourage the use of these technologies.
The proposed overall budget for DOE’s Office of Energy Efficiency and Renewable Energy (EERE) remains nearly steady, increasing about 0.8 percent above FY 2002 funding levels. Funding for renewable energy programs increases 5.5 percent in the budget, with significant funding boosts for hydrogen, hydropower, and solar building technology research and development, as well as for programs that encourage renewable energy use on Indian reservations and internationally. However, the research budget for concentrating solar power technologies suffers a cut of 86 percent.
Overall funding for energy efficiency programs decreases by about 1.3 percent. The largest change is a budget increase of 25 percent for the Federal Energy Management Program, which helps the federal government reduce its energy use. EERE estimates that the combined energy efficiency and renewable energy programs, which cost about $1.3 billion per year, will save the country between $76 billion and $125 billion in energy costs by 2020.
The President’s budget for fiscal year 2002 includes $9.1 billion in tax incentives over 10 years to encourage the use of renewable energy, combined heat and power (CHP) systems, and energy-efficient vehicles. For power producers, the budget includes a new 10-percent investment tax credit for qualifying CHP systems, an extension of the tax credit for landfill methane power plants, an extension of the production tax credit (PTC) through 2005, and an expansion of the PTC to include more biomass energy facilities. The PTC provides renewable power producers with a tax break of 1.5 cents per kilowatt-hour (in 1992 dollars, adjusted for inflation) and was formerly applicable only to electricity produced from wind power, poultry waste, and biomass power produced from dedicated energy crops.
The budget also includes a solar tax credit for homeowners. Americans who install solar hot water or solar electric systems on their homes would earn a tax credit of 15 percent of the cost of the systems, including installation. The credit has a maximum of $2,000 per person for solar hot water systems and another $2,000 per person for solar photovoltaic systems.
People buying hybrid electric vehicles would also earn a tax credit of up to $4,000, with the amount determined by both the performance of the hybrid system and the vehicle’s fuel economy. When fuel-cell vehicles become available, they will earn an even higher tax credit -- at least $4,000 and up to $8,000, depending on the vehicle’s fuel economy.
Finally, the budget also proposes extending the tax credit and excise tax exemption for ethanol and methanol from renewable sources.
[From EREN Network News of 6 February 2002]
PRESIDENT BUSH UNVEILS U.S. GLOBAL WARMING INITIATIVE
—Announcement Elicits Immediate Reaction in the U.S. and Abroad
President Bush unveiled a new U.S. initiative for addressing global climate change on 14 February. Rather than focusing on the absolute amount of greenhouse gases emitted each year, the Bush administration’s plan emphasizes “greenhouse gas intensity,” that is, the amount of greenhouse gases produced per dollar of gross domestic product (GDP). The initiative sets a goal of reducing the U.S. greenhouse gas intensity by 18 percent in the next ten years -- from 183 metric tons of emissions per million dollars of GDP to 151 metric tons of emissions per million dollars of GDP. The initiative relies on a combination of voluntary emissions reductions, advances in energy technologies, and tax credits for renewable energy installations, energy efficient vehicles, and other energy technologies.
President Bush also announced a new initiative for cutting power plant emissions of sulfur dioxide, nitrogen oxides, and mercury. The “Clean Skies” initiative proposes a system of tradable emissions credits that will lead to lower emissions, similar to the system already in place for sulfur dioxide emissions. If enacted into legislation, the initiative will mark the first time that power plant emissions of mercury have been regulated. [From EREN Network News of 20 February 2002]
For a sampling of reaction to President Bush’s climate change initiative and full coverage of related news stories, visit http://dailynews.yahoo.com/fc/World/Global_Warming/ .
RENEWABLE ENERGY RESOURCE MAP AVAILABLE FROM EIA
—Map Provides Detailed View of Renewable Resources in Region
The U.S. Department of Energy’s Energy Information Administration (EIA) has released the first in a series of renewable energy resource maps. This map features the Mountain Census Division and provides an integrated picture of renewable energy resources: solar, geothermal, and wind energy potential; indicators of hydroelectric, biomass, and wood energy potential; and the geographic location of all renewable energy power plants with a net summer capacity of 1 megawatt or more.
This informative map is available in HTML and PDF formats at http://www.eia.doe.gov/emeu/reps/remap/mountain.html. Other resources specific to Arizona and the southwest are also available at this site, including “Appliance Reports,” which are brief statistical reports that compare long-term trends in market share of about two dozen appliances and electric air-conditioning in the United States to trends in each geographic area.
FUTURE U.S. ENERGY USE DEPENDS ON EFFICIENCY, RENEWABLES
—Annual EIA Report Looks at Impact of Renewables and Efficiency on Demand
U.S. energy demand is expected to increase 32 percent from 2000 to 2020, according to DOE’s Energy Information Administration (EIA), but the forecast could change with faster or slower penetration of energy efficiency and renewable energy technologies. That conclusion is part of the EIA’s Annual Energy Outlook 2002.
Energy efficiency is measured at the national level by “energy intensity,” that is, the amount of energy used per dollar of gross domestic product (GDP). The EIA reference case -- often referred to as the “business as usual” case -- already projects a steady decline in energy intensity of 1.5 percent per year through 2020 due to energy efficiency technologies. But a more rapid development and market penetration of these technologies could lower the U.S. energy demand in 2020 by 6 percent compared to the EIA reference case.
The EIA report also examined the effect of extending the production tax credit, which expired at the end of 2001, to the end of 2006. The report also assumed the tax credit eligibility would be expanded – it currently applies only to wind power and biomass facilities that draw on dedicated energy crops, but the EIA assumed it would be expanded to include all biomass and landfill gas facilities. That change would boost the production of electricity from renewable energy by nearly 50 percent by 2020 -- increasing from the reference case projection of 15,000 megawatts to a total of about 22,000 megawatts.
[from EIA press release summarized in EREN Network News of 9 January 2002]
FITCH REPORT EXAMINES EFFECT OF ENVIRONMENTAL REGULATIONS ON POWER INDUSTRY
Fitch Ratings’ Global Power Group has issued a report entitled “Effect of Environmental Regulations on the Electric Power Industry: U.S., EU, Australia, and New Zealand.”
The Fitch report notes that “[t]he fossil fuel power generation industry is the source of greenhouse gas (GHG) emissions, and as a result, a number of countries have passed regulations to limit the emissions that generators produce…The potential for environmental regulations to disrupt a power generator’s ability to meet its financial obligations prompted Fitch to explore the possibility in depth.” The report goes on to look at national and international regulations, laws and policies, compliance methods and other factors in assessing the future of conventional and renewable-energy power generation technologies.
A copy of this report, written by Fitch’s Orli Almog, Kim Herrmann and Gracie Ebadan-Bola, is available at http://www.bankwatch.com/corporate/reports/report.cfm?rpt_id=133038.
ENRON WIND PURCHASED BY GE POWER SYSTEMS
—Closing of Transaction Expected Next Month
GE Power Systems of Atlanta announced on 20 February its intention to acquire coalition member Enron Wind. This transaction, which is subject to regulatory and bankruptcy court approval, is expected to close next month.
“The acquisition of Enron Wind represents GE Power Systems’ initial investment into renewable wind power, one of the fastest growing energy sectors,” said John Rice, president and CEO of GE Power Systems. The wind energy industry is expected to grow at an annual rate of about 20 percent, with principal markets in Europe, the US and Latin America.
Enron Wind is a pioneer in wind power generation with manufacturing operations in the US, Germany and Spain. Headquartered in Tehachapi, California, Enron Wind has 1,600 employees worldwide. With fully integrated wind power capabilities, Enron Wind offers power plant design, engineering and site selection, operations and maintenance services.
In a letter to the company’s employees and colleagues, Enron Wind President and CEO Adam S. Umanoff noted that “[a] condition of the GE Purchase Agreement is the requirement that Enron Wind and certain of its U.S affiliated entities file for reorganization under Chapter 11 of the U.S. Bankruptcy Code…This filing was expressly required under the GE Purchase Agreement to administer the sale of Enron Wind’s U.S. assets. No such bankruptcy filing has been made for any of Enron Wind’s European companies…the majority of Enron Wind’s workforce will transition to the new GE wind entity. In the meantime, prior to the transaction’s close, we intend to continue to operate our businesses in the ordinary course.”
[From company news releases:
http://www.gepower.com/corporate/en_us/aboutgeps/releases/022002.pdf and
http://www.enronwind.com/newsroom/pressrel/022002ge.html]
SOUTHWEST RENEWABLE ENERGY FAIR TO BE HELD IN AUGUST
—”Resources Today to Ensure Tomorrow”
Northern Arizona University and the Greater Flagstaff Economic Council are hosting the fourth annual Southwest Renewable Energy Fair on 9, 10 and 11 August in Flagstaff. This fair will be held in conjunction with the Technical Conference: Sustainable Development with Renewable Energy Resources, on August 7th-9th, 2002.
With more than 50 vendors, most residing outside the Flagstaff area, the fair will present the use of economic, ethical, and environmentally friendly power alternatives and energy efficient practices through education, demonstration, and practice.
The fair will also include workshops, keynote guest speakers, exhibits, and demonstrations of various products and services.
For more information on this event, visit http://www.gfec.org/swref/ or call 1-800-595-7658.
This newsletter is circulated to members of the Arizona Coalition for New Energy Technologies and other interested parties. Please let us know if you would like to be added to or removed from the distribution list.
Additional member-only updates are provided to coalition members as events warrant. If your business or non-profit organization is interested in coalition membership, we would be happy to provide information upon request.
The Arizona Coalition for New Energy Technologies is preparing to launch a web site in the near future and looks forward to providing links to other appropriate web sites.
Please continue to keep in touch on any matters related to energy issues and let us know if we can provide any help or information to you.
Craig Cox, Executive Director
Michael Neary, State Director
Arizona Coalition for New Energy Technologies
602-253-8180
Arizona has one of the nation’s richest resource bases in new energy technologies and is a leader in advancing these technologies through public policy mechanisms. We encourage environmentally responsible economic growth through the efficient use of Arizona’s abundant and clean sources of energy.
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