In this Edition:

• Welcome to New Coalition Members
• Next Coalition Briefing to Showcase Implementation and Research of New Energy Technologies
• February Coalition Briefing Received With Great Interest
• U.S. Senate Begins Debate on Energy Policy Bill Containing National Renewable Portfolio Standard
• News on Renewables and Efficiency Legislation from Colorado Legislature
• Administration’s FY2003 Budget Proposal Maintains Funding for Efficiency and Renewables
• President Bush Announces Global Warming Initiative
• Fitch Report Examines Effect of Environmental Regulations on Power Industry
• Enron Wind Purchased by GE Power Systems
• Front Range TechBiz Focuses on New Energy Technologies
• Recent Articles of Interest from the Press
• 2002 Wind and Distributed Energy:  Renewables for Rural Prosperity Conference
• Colorado Sustainable Living Roundup

WELCOME TO NEW COALITION MEMBERS

Kiowa County Growers

www.kiowacountygrowers.com

Eads

Kiowa County Growers, Inc. is a group of Kiowa County farmers and interested citizens who have stepped forward to assume a major role in supplying America and the world with vegetable oil-based lubricants on technology's cutting edge, designed to improve the quality of life into the 21st century.  Bio-based engine oil, a product designed to reduce pollution and remain environmentally friendly by utilizing sunflower oil, soybean oil, and canola oil instead of petroleum based oil, is now available thanks to a partnership between Kiowa County Growers, Inc. and coalition member Agro Management Group of Colorado Springs.  Kiowa County has over 24,000 acres of sunflowers in production, making it an attractive location to continue development of this product and enable the production of this new oil.

PureVision Technology, Inc.

www.purevisiontechnology.com

Fort Lupton

PureVision Technology, Inc. is developing a unique process of converting biomass into resources.  This technology, once scaled up, will be the bio-refinery of the future. The company’s mission is to commercialize the conversion of cellulosic biomass (including trees, shrubs, and grasses as well as forest, agricultural, paper, and municipal wastes) into useful industrial products such as energy, fiber, sugars, plastics, ethanol, and other chemicals.  The PureVision process will reduce hydrocarbon use, greenhouse gas emissions and air pollution while recovering valuable product streams from diverse bio-wastes typically being landfilled. PureVision is one of the few companies in the world that has been devoted to perfecting the enzymatic hydrolysis method of converting biomass into useful products for over 10 years.

For a complete list of the 61 members of the Colorado Coalition for New Energy Technologies, contact Craig Cox.

COALITION BRIEFING TO SHOWCASE TECHNOLOGY IMPLEMENTATION AND CUTTING-EDGE RESEARCH ACTIVITIES

—March 20th Event Features Delta-Montrose Electric Association, Colorado School of Mines and GeoSource Distributors

The next briefing of the 2002 legislative session by the Colorado Coalition for New Energy Technologies will take place at 7:30 a.m. on Wednesday, 20 March in Hearing Room A of the Legislative Services Building (200 East 14th Avenue, across the street from the State Capitol's south entrance).

This briefing, which is conducted under the auspices of the Colorado Legislature’s bipartisan Renewables and Energy Efficiency Caucus, is open to all legislators and the public and will feature:

• Delta-Montrose Electric Association:  a national leader in marketing fuel cells, GeoExchange systems, and other emerging energy technologies;
• Colorado School of Mines:  a public research university devoted to engineering and applied science; and
• GeoSource Distributors, Inc.:  a company which will showcase one of the first commercial GeoExchange installations in the Denver metro area at the Valley Bank & Trust headquarters in Brighton.

FIRST COALITION BRIEFING OF YEAR FEATURES INNOVATIVE LUBRICANTS, CARBON TRADING AND COMMERCIAL BUILDING ENERGY EFFICIENCY

—Statehouse Event Received with Great Interest

The first briefing of the 2002 legislative session by member companies of the Colorado Coalition for New Energy Technologies was held on Friday, 22 February at the state capitol in Denver.  Featuring briefings by Jim Lambert of Agro Management Group in Colorado Springs, Duncan Marsh of Natsource in Boulder and Megan Edmunds of E Star Colorado in Denver, this event was attended by about 45 stakeholders.

Attendees were particularly interested about the rural development possibilities and environmental benefits offered by Agro’s revolutionary sunflower-based lubricants.  In addition, Natsource’s emissions trading program was received with keen interest, particularly in light of President Bush’s new climate change initiative announced a week earlier (see article below on Bush Administration’s “Clear Skies Initiative”).  Finally, the E Star Colorado recommendations of the Commercial Energy Codes Advisory Group provided a revealing look at the tremendous potential energy savings in Colorado’s commercial building inventory.

For more information on any of these presentations, please contact Craig Cox.

DEBATE BEGINS ON SENATE ENERGY BILL

—Renewable Portfolio Standard Among Key Issues in Landmark Legislation

The United States Senate began debate 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.

Colorado Senator Ben Nighthorse Campbell (R-Ignacio) expressed his opposition to an RPS in an op-ed in the Denver Post of 3 March, while Senator Wayne Allard (R-Loveland) has not yet taken a public position on this key provision.

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.

COMPREHENSIVE RENEWABLES/EFFICIENCY BILL DIES IN STATE HOUSE; NEW RENEWABLES-ONLY BILL INTRODUCED IN STATE SENATE

—Phillips Bill Establishes Statewide Renewable Portfolio Standard

As reported in the Colorado Coalition for New Energy Technologies Update of 1 February, State Representative Tom Plant (D-Nederland) introduced comprehensive legislation that would create a state renewable portfolio standard, along with a system benefit charge and net metering provisions.  A renewable portfolio standard requires that a specified amount of electricity be generated from renewable sources of energy.  The Colorado House Committee on Transportation & Energy held a hearing on 7 February and voted 9-2 to “postpone indefinitely” this legislation, effectively killing it for the session.

Yesterday, State Senator Terry Phillips (D-Louisville) introduced new legislation in the Colorado Senate calling for a state renewable portfolio standard of two percent in 2004, increasing to ten percent in 2010 and beyond.  Phillips’ bill, SB 180, has been referred to the Senate Committee on Business, Labor, and Finance.  For a copy of SB 180, visit http://www.leg.state.co.us/2002a/inetcbill.nsf/billcontainers/

59704C4EAE39D1D887256B410073A8F4/$FILE/180_01.pdf.

A tentative hearing date of 20 March has been set for SB 180.  Future Updates will provide new information on this legislation, but for immediate information on the bill’s status and hearing date, visit http://www.leg.state.co.us/2002a/inetcbill.nsf/fsbillcont/
59704C4EAE39D1D887256B410073A8F4?Open&target=/2002a/
inetcbill.nsf/billsummary/01016E1BD637871487256B410068C9EE.

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/.

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]

FRONT RANGE TECHBIZ FOCUSES ON NEW ENERGY TECHNOLOGIES

—Wind, Biomass and Hydrogen Receive In-depth Coverage

Front Range TechBiz, the “Journal of Colorado’s Innovation Economy,” has published a four-page examination of wind power in its 4 March issue.  Examining wind energy technology, public policies and markets, writer Rod Franklin provides a comprehensive review of this rapidly growing new energy technology.

The three articles in this special report are: 

• The Power of Wind: NREL plays major role in evolution of wind turbines
• Scientists try to capture the wind
• Wind advocates want to air on the side of fairness

Next week’s issue of Front Range TechBiz (11 March) will focus on biomass, while the 18 March edition will examine hydrogen technologies.

RECENT ARTICLES OF INTEREST FROM THE PRESS:

Denver Post, 12 February 2002

BP to show 'green' side in Colorado

“BP, the former British Petroleum, is bringing its “green” consciousness to Colorado. In the next few months, BP will introduce solar-electricity panels in the canopies of its Colorado gasoline stations.”
http://www.denverpost.com/Stories/0,1002,33%257E395998,00.html

Denver Post, 14 February 2002

Allard, Strickland spar on energy

“Both U.S. Sen. Wayne Allard, a Republican, and his opponent, Tom Strickland, a Democrat, agree that America needs to embrace alternative forms of energy, such as solar and wind.  That's where their agreement ends.”

http://www.denverpost.com/Stories/0,1002,64%257E400677,00.html

Christian Science Monitor, 19 February 2002

Manifest Energy Destiny

“If Americans learn a common lesson from Sept. 11, the Enron scandal, and US rejection of the Kyoto treaty on global warming, it is that the problem of energy can't be left to Washington…The federal government helped build and now maintains a highly centralized, fossil-fuel-dependent system of energy that is too vulnerable to terrorism, corporate corruption, and bureaucratic
inflexibility.”
http://www.csmonitor.com/2002/0219/p10s02-comv.html

 

Denver Post, 22 February 2002

Gephardt, Udall tout alternative energies

“Cars that get 90 miles to the gallon and emit water vapor instead of carbon monoxide are within reach, U.S. Rep. Mark Udall said…The Boulder Democrat joined U.S. House Minority Leader Dick Gephardt, D-Mo., at the state Capitol in calling on the nation to embrace renewable energy as the best way to end dependence on foreign oil.”

http://www.denverpost.com/Stories/0,1002,53%257E418498,00.html

Denver Post, 22 February 2002

Study: Renewable energy could save billions

“An aggressive renewable energy program could stimulate Colorado's economy and save consumers billions of dollars, a new study shows.  Generating 20 percent of Colorado's power from renewable sources like wind would produce $2.4 billion in new investment and save consumers $1.9 billion in lower energy bills over the next 18 years, according to a coalition of science and environmental groups.”

http://www.denverpost.com/Stories/0,1002,33%257E418399,00.html

Rocky Mountain News, 22 February 2002

Udall pushes alternative fuel sources

“U.S. Rep. Mark Udall on Thursday called for a federal energy policy that places more emphasis on alternative fuel sources than President Bush's plan.  The Boulder Democrat was flanked by House Speaker Richard Gephardt, D-Mo., as he called for a combination of wind and solar power that could make Colorado the ‘Saudi Arabia for renewable energy development.’”

http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_997502,00.html

Rocky Mountain News, 22 February 2002

Renewable energy an economic boon, groups say

“Colorado would enjoy billions of dollars in economic benefits if renewable energy sources were mandated to constitute 20 percent of the country's electricity supply by 2020, two advocate groups said Thursday.”

http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_997539,00.html

Denver Post, 3 March 2002

Energy bill debate promises to be heated (op-ed by Senator Ben Nighthorse Campbell)

“It's finally here. The comprehensive energy bill that so many of us have long awaited has finally been introduced in the U.S. Senate. The debate to follow is likely to prove the most contentious of the 107th Congress…As someone who has a seat on the Senate Energy Committee and the goal of making sure America's energy policy is as solid and smart as it can be, you can bet I'm going to be monitoring this debate closely and stepping in when needed.”

http://www.denverpost.com/Stories/0,1002,73%7E436344,00.html

2002 WIND AND DISTRIBUTED ENERGY WORKSHOP

—"Colorado Wind and Distributed Energy:  Renewables for Rural Prosperity"

On 8-9 April, the Colorado Governor's Office of Energy Management and Conservation (OEMC) and the U.S. Department of Energy (DOE), in conjunction with a number of other sponsors, will present a major wind and distributed generation conference, "Colorado Wind and Distributed Energy:  Renewables for Rural Prosperity," at the Denver Renaissance Hotel on 8-9 April.

At this event, participants will learn how to reap benefits for rural Colorado through reaping the wind and using distributed generation opportunities available today.  Experts will provide the latest in technology, applications, markets, economics, financing, tools, and policy.  Farmers, utilities and manufacturers will discuss real world applications and costs of wind, solar water pumping, methane digesters, microturbines, biofuels and more.

In addition, a special pre-conference “Colorado Sustainable Living Roundup” at Stapleton’s Urban Farm on Sunday, 7 April will provide hands-on chances to see many of the conference’s featured technologies in action (see article below).

Complete information on this conference is available online at OEMC’s website.

COLORADO SUSTAINABLE LIVING ROUNDUP

—Family Event to Precede Wind and Distributed Energy Workshop

You are invited to bring the whole family for this fun and educational event on Sunday, 7 April, from 10:00 a.m. to 5:00 p.m. at The Urban Farm (10200 Smith Road, just south of I-70 and Havana) in Denver.  You will be able to:

—Visit over 50 exhibitors demonstrating their sustainable living technologies.

—Watch full-sized wind turbines, alternative-fueled vehicles, and other renewable-energy technologies in action.

—Learn more on how to save hundreds of dollars through energy efficiency for your house.

—Treat the kids to a petting zoo and horse-riding demonstrations!

Admission is only $3 for ages 20-60, and free for everybody else.  Proceeds benefit The Urban Farm for expansion of energy education activities.

This event is being held in association with the Colorado Wind and Distributed Energy conference described in the article above.  More information can be found at www.TheUrbanFarm.org, or www.state.co.us/oemc/events/distributed/roundup.htm, or by contacting Ron Larson at ronallarson@qwest.net.

This newsletter is circulated to members of the Colorado Coalition for New Energy Technologies and other interested parties.  Please let me 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, I would be happy to provide information upon request.

The Colorado 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 me know if I can provide any help or information to you.

Craig Cox

Executive Director

Colorado Coalition for New Energy Technologies

303-679-9331

coxcraig@att.net