Center Meets With EPA Office of International Activities

Center President Norris McDonald and Center Vice President Derry Bigby met with Michelle DePass, Assistant Administrator of EPA's Office of International Activities (OIA) yesterday to discuss global environmental issues. McDonald and Bigby described the Center's international work and Ms. Depass described the mission of OIA. Michael M. Stahl, Director, Regional and Bilateral Affairs, also attended the meeting. The 45-minute meeting was informative and we were delighted to visit OIA in the Ronald Reagan Building. According to the EPA website:

EPA's Office of International Affairs (OIA) plays a crucial role in advancing the United States' international environmental priorities. Working with the experts from EPA's other program and regional offices, other government agencies, and other nations and international organizations, OIA identifies international environmental issues and helps implement technical and policy options to address them.

International cooperation is vital to achieving EPA's mission. EPA has established three strategic priority areas for our international engagement:

1. To reduce transboundary pollution;
2. To advance U.S. interests abroad; and
3. To promote good environmentl governance

Senate Finance Committee Holds Climate Legislation Hearing

Senate Finance Committee Chairman Max Baucus, left, held a hearing on "Climate Change Legislation: Considerations for Future Jobs" on Tuesday. Witnesses included:

Mr. Abraham Breehey, Director, Legislative Affairs, International Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and Helpers, Department of Government Affairs, Fairfax, VA

Ms. Carol Berrigan, Director, Industry Infrastructure, Nuclear Energy Institute, Washington, DC

Dr. Kenneth P. Green, Resident Scholar, American Enterprise Institute for Public Policy Research, Washington, DC

Dr. Margo Thorning, Senior Vice President and Chief Economist, American Council for Capital Formation, Washington, DC

Ms. Van Ton-Quinlivan, Director,Workforce Development and Strategic Programs, Pacific Gas and Electric Company, San Francisco, CA

Senator was the only Democrat on the Seante Environment & Public Works Committee to vote against S. 1733. His main concerns are protecting the economy and minimizing job losses. The union representative expressed support for S. 1733. The NEI representative describe the role of nuclear in climate change mitigation. AEI opposes S. 1733. PG&E supports S. 1733.

FULL STATEMENTS

Warren Buffet Cornering Train AND Coal Shipment Markets?

Berkshire Hathaway Chairman Warren Buffett, left, has purchased Burlington Northern Santa Fe (BNSF) railroad for $26 billion. It is the largest acquisition of Buffett’s career.

The Fort Worth, Texas-based BNSF is one of four transcontinental freight railways in the United States, and the second-largest behind Union Pacific. BNSF’s railroad covers much of the Midwestern United States and ships large quantities of coal, grain, and containers annually.

Buffet's purchase of Burlington Northern Santa Fe railroad gives him America's largest coal shipping system. Buffet is betting that coal will still be king for producing electricity. Coal is currently used to produce 50% of America's electricity.

Berkshire Hathaway, Buffett’s holding company, has a history of buying well-managed companies with unique competitive advantages. Berkshire currently owns GEICO insurance, MidAmerican Energy, Fruit of the Loom, See’s Candies, and holds minority ownership stakes in other companies such as Moody’s Corp., American Express Co., and The Coca-Cola Co. (The Epoch Times, 11/3/09)

Potomac Edison To Refile Electric Power Line Plans

Potomac Edison plans to restart its proposal to build the Potomac-Appalachian Transmission Highline (PATH) in Frederick County and will file a new application with the Maryland Public Service Commission to build. On Sept. 9, the Maryland Public Service Commission rejected Potomac Edison's application for PATH because it would not be built by an electric company operating within Maryland, as state law requires. The commission did not comment on the need for the upgrade.

It is the last part of a multi-state power line. The 275-mile power line would begin at a substation in southern West Virginia and end at a proposed 50-acre substation near Mount Airy, Maryland called the Kemptown Substation. PATH will serve PJM Interconnection, a regional organization that coordinates power transmission in 13 states, including those through which it passes, and Washington, D.C.

Allegheny Energy, of which Potomac Edison is a subsidiary, and American Electric Power have partnered to build PATH, with Allegheny having sole responsibility for the portion to be constructed in Maryland. Both companies argue that without the new power lines, the region's power grid will not be able to reliably meet electrical demands. The companies say PATH must be constructed by 2014 to keep up with projected demand.

Virginia's State Corporation Commission and West Virginia's Public Service Commission are also considering denial of the project. (Maryland Gazette, 11/10/2009)

EPA Public Hearing Dates on Proposed Greenhouse Gas Rule

EPA will hold two public hearings to accept public comment on the agency’s proposed greenhouse gas (GHG) emissions thresholds defining when Clean Air Act permitting requirements would apply to new or existing industrial facilities. The proposed thresholds would “tailor” the permit programs to limit which facilities would be required to obtain NSR and title V permits and would cover nearly 70 percent of the national GHG emissions that come from stationary sources, including those from the nation’s largest emitters—power plants, refineries, and cement production facilities.

The hearings will be November 18 in Arlington, Va. and November 19 in Rosemont, IL. Both hearings will begin at 10:00 a.m. and end at 7:00 p.m. local time at the following locations:

November 18: Arlington, Va.
Hyatt Regency Crystal City at Reagan National Airport
2799 Jefferson Davis Highway
Arlington, VA 22202

November 19: Rosemont, Il.
Donald E Stephens Convention Center
5555 North River Road
Rosemont, IL 60018

Members of the public who want to speak at the hearings may pre-register for a specific speaking time by contacting Pamela Long at long.pam@epa.gov or (919) 541-0641 by November 13, 2009. People also may register in person on the day of the hearing; however, they may not be given a specific time to speak.

EPA also will accept written comments on the proposed rule until December 28, 2009.

More information on the proposed rule and instructions for submitting written comments.

Jan Cortelyou-Lee, U.S. EPA, Office of Air Quality Planning and Standards
MD-C404-03, 109 TW Alexander Drive, Research Triangle Park, NC 27709 phone: 919-541-5393

Is Barbara Boxer Getting 'Played' By Her Colleagues?

PRESIDENT'S CORNER

By Norris McDonald

Before the ink dried on the passage of the global warming bill (S. 1733) out of the Senate Environment and Public Works Committee (EP&W), Senators John Kerry, Lindsey Graham and Joseph Lieberman were promoting alternative legislation. And John Kerry is the cosponsor of S. 1733 with Barbara Boxer, Chairwoman of the Senate EP&W Committee. In fact, Senator Kerry, Chairman of the Senate Foreign Affairs Committee, seems to be hedging his bets on getting climate change legislation by taking a route around his bill cosponsor. Is this a deal between them just to get legislation passed? After all, the Republicans on the EP&W Committee boycotted the mark up and none were presented to vote on the S. 1733.

Since S. 1733 will be the instrument going to the Senate floor for debate, I can only assume that Kerry and Lieberman are working with Graham to have a substitute ready when and if S. 1733 falters. One recommendation I have for the alternative legislation is to increase the amount of free offsets to participants from the 35% in S. 1733 to 97.7%. This will keep the cost down for us ratepayers and still provide the market mechanism needed for a successful program.

House Passes Health Care Bill 220-215

Hooray. The House passed the Affordable Health Care for America Act (HR 3962) late Saturday night. The Center supported the bill (More).

The bill proposes to spend $1.055 trillion to add 36 million Americans to the insurance rolls, largely paid for with a 5.4% surtax on the top 0.3% of earners and cutting Medicare Advantage programs.

It would create an exchange where small businesses and the uninsured could buy coverage, including a government-run public option. Under the bill, no insurance company could consider preexisting conditions, out-of-pocket expenses would be capped, there would be no co-pays for preventive care and the so-called "donut hole" would be closed in Medicare prescription drug coverage.

The House also voted 240-194 (Stupak Amendment) to bar federal funding of abortion in the proposed government-run health care plan. The abortion amendment bars anyone who gets federal subsidies from abortion coverage. The public option does not cover any elective abortions. (NY Daily News, 11/7/09, Photo Courtesy: Smialowski/Getty)

Judith Enck Appointed EPA Region 2 Administrator

President Obama and EPA Administrator Lisa P. Jackson have announced Judith Enck, left, to be the EPA Region 2 Administrator, which is headquartered in New York. Enck has nearly 30 years of experience in the environmental field. She most recently served as Deputy Secretary for the Environment in the administration of Governor David Paterson. In that capacity she was responsible for policies and operations of New York state’s environmental protection agencies including the Department of Environmental Conservation, Office of Parks, Recreation and Historic Preservation, the Adirondack Park Agency, Agriculture and Markets, Department of State and others.

Prior to that, she worked for eight years as a policy advisor to the Attorney General of New York and for five years as the Executive Director of Environmental Advocates of New York. Before joining the Attorney General’s office, she was Senior Environmental Associate with the New York Public Interest Research Group. She is a past president of Hudson River Sloop Clearwater and former director of the Non-Profit Resource Center.

Judith was raised in the Catskill Mountains and received her bachelor’s degree from the College of Saint Rose in Albany. She lives with her husband, Mark Dunlea, in Poestenkill, New York. Her son, Reed, resides in Queens.

Alfredo Armendariz Appointed EPA Region 6 Administartor

U.S. Environmental Protection Agency Administrator Lisa P. Jackson announced President Barack Obama’s selection of Dr. Alfredo “Al” Armendariz, right, to be the Agency’s Regional Administrator for EPA’s region 6. This region encompasses Louisiana, Arkansas, New Mexico, Texas, Oklahoma and 66 Tribal Nations. The regional agency headquarters is in Dallas, Texas.

Regional Administrators are responsible for managing the Agency’s regional activities under the direction of the EPA Administrator. They promote state and local environmental protection efforts and serve as a liaison to state and local government officials. Regional Administrators are tasked with ensuring EPA's efforts to address the environmental crises of today are rooted in three fundamental values: science-based policies and programs, adherence to the rule of law, and transparency.

Dr. Alfredo “Al” Armendariz is an Associate Professor at Southern Methodist University in Dallas, Texas, where he has taught environmental and civil engineering. For the past 15 years, Armendariz has worked in a variety of research and academic positions and has published several research papers. After college, he worked as a research assistant at the MIT Center for Global Change Science at their Atmospheric Chemistry Laboratory in Massachusetts. He later joined Radian Corporation in North Carolina as a chemical engineer and in 2002 he joined the faculty at Southern Methodist University and also spent a summer on special assignment to EPA’s Dallas office as an Environmental Scientist.

Armendariz received his S.B. in chemical engineering from the Massachusetts Institute of Technology (MIT), received his M.E. in Environmental Engineering from the University of Florida and his Ph.D. in Environmental Engineering from the University of North Carolina at Chapel Hill.

President Barack Obama's Trip To China

We hope President Obama's first trip to China will be as exciting as our first trip to that wonderful country. This is part of a 10-day four-nation Asia trip from Nov. 12 to 19 that includes Japan (12-13), Singapore (14), China (15-18) and South Korea (18-19). In addition to visiting his half-brother in Shenzhen, which we also visited, he will have to push it because he is only there for three days (November 15-18). Fortunately, President Obama and Chinese President Hu Jintao have already met several times (4) this year, so there is some familiarity there.

Of course climate change will be one of the big issues discussed in no small part becaue of the upcoming meeting in Copenhagen in December. China has rejected emission caps and challenges industrialized countries that caused global warming to clean up first. US Ambassador to China Jon Huntsman, who is fluent in Mandarin, clearly has his hands full in helping President Obama to produce a binding international treaty with China. However, the current Asia Pacific Partnership provides a good model for a post Kyoto treaty that includes China.

The Center is prepared to work with the Obama administration and China to mitigate climate change. Our China Office Director, Zhang Xiaoping, pictured below, speaks fluent English and has been invaluable to us on our travels thoughout China.

Eagles Delisted From Endangered Species & Now Whales

First the Bald Eagle was delisted from the Endangered Species List and now the Humpback whales appear to be thriving world-wide. From fewer than 5,000 in the 1960s, humpbacks now number 60,000 or more. Once hunted to near extinction, humpback whales are increasing world-wide. U.S. officials are considering how to manage the species' status under the Endangered Species Act.

Federal experts are expected to use all of that new data to revamp the way they evaluate humpback whales under the Endangered Species Act. During the coming year, they will be asked to weigh whether humpback whales could be better regulated not as a global species but as local, family groupings that breed and feed together. On that basis, officials could lift restrictions on healthy whale populations in some areas, while still listing others as endangered.

The International Whaling Commission maintains whale population estimates. Although there is international pressure to resume commercial whaling, no one petitioned for the U.S. review. In the U.S., which opposes commercial whaling, many marine biologists like the idea of protecting humpbacks more selectively because conservation resources then could be focused on herds most threatened by extinction. (WSJ, 11/6/09)

GOP E&PW Committee Members Boycott Climate Hearing

Update: The Senate EP&W Committee approved the bill first thing this morning. There were no amendments or debate due to the boycott. The bill now goes to the full Senate floor for debate. The bill passed 11 to 1, with Sen. Max Baucus (D-Mont) voting no.
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The seven Republican members of the Senate Environment and Public Works Committee boycotted the mark up of the Boxer/Kerry climate change legislation (S. 1733) on Wednesday. Republicans claim to want a full economic analysis of the bill by the Environmental Protection Agency (EPA), which would take over a month to complete. EPA already presented its findings via a partial analysis when Administrator Jackson appeared before the committee last week. Senator George Voinovich (R-OH) appeared briefly to read a statement for the Republican point of view on boycotting the mark up.

The 12 Democratic Party members of the committee do not need Republicans to pass the bill, but any delay in such passage probably kills any possibility that a bill will be passed by the Senate in time for the international climate change meeting in Copenhagen in December. Republicans did not boycott in the House Committee or in the Senate Energy and Natural Resources Committee.

Nine Federal Agencies Enter Into A MOU Regarding Transmission Siting On Federal Lands

Nine Federal Departments and Agencies recently released a Memorandum of Understanding (MOU) to make it faster and simpler to build transmission lines on Federal lands. The goal of the agreement is to speed approval of new transmission lines, reduce expense and uncertainty in the process, generate cost savings, increase accessibility to renewable energy and job creation.

The MOU has been signed by the 1) U.S. Department of Agriculture, 2) Department of Commerce, 3) Department of Defense, 4) Department of Energy, 5) Environmental Protection Agency, 6) Council on Environmental Quality, 7) Federal Energy Regulatory Commission, 8) Advisory Council on Historic Preservation, and 9) Department of the Interior.

The agreement will cut approval time off the normal Federal permit process and help break down the barriers to siting new transmission lines by:

• Designating a single Federal point-of-contact for all Federal authorizations;
• Facilitating coordination and unified environmental documentation among project applicants, Federal Agencies, states, and tribes involved in the siting and permitting pocess;
• Establishing clear timelines for agency review and coordination; and
• Establishing a single consolidated environmental review and administrative record.

Instead of applicants going to multiple agencies, a single lead agency will coordinate all permits and approvals. The new process will keep applications on track by requiring agencies to set and meet clear deadline and improve transparency by creating a single record to be posted on line. The MOU does not alter the authority of any participating agencies, and all existing environmental reviews and safeguards are maintained fully. (ElectricNet, 11/4/09, Federal Departments and Agencies)

Ratings Agencies On Constellation/EdF Joint Venture

Standard & Poor’s (S&P) ratings service downgraded Constellation based on the condition that separated Constellation from BGE financially and legally. S&P lowered Constellation’s ratings to BBB- from BBB, one step above junk bond status.

The ratings agency upgraded Baltimore Gas & Electric to BBB+ from BBB.

The assessment by S&P was that the Maryland Public Service Commission (PSC) order was supportive of BGE, while not unduly onerous on Constellation. Constellation was removed from S&P’s “CreditWatch negative” status, which is a warning that the company’s credit rating could be downgraded during the next review.

Fitch Ratings rates Constellation BBB- and BGE is rated BBB.

Shares of Constellation’s stock gained 89 cents, or 2.88 percent, Monday to close at $31.81. Constellation reported a third-quarter profit of $137.6 million, or 69 cents per diluted share. That's compared with a loss of $225.7 million, or $1.27 cents per diluted share, due to write-downs in its commodities operations in the corresponding period last year. Constellation also raised its 2009 earnings guidance by 15 cents to between $3.25 and $3.45 per share. (The Daily Record, 11/2/09, Balti Sun, 10/30/09))

Maryland Gov Gets Concessions From Constellation Energy

Maryland Governor Martin O'Malley, left, fought successfully to get concessions from Constellation Energy Group (CEG) in their bid to get approval for a joint venture with Electricite de France (EdF) to build a third nuclear plant at the current Calvert Cliffs site.

The conditions added to the agreement by the Maryland Public Service Commission (PSC) include portions of the concessions sought by the governor and include:

One-time rebates of $100 for household customers (about 6% of a typical BGE family's annual electricity bill).

[The $100 credit adds up to $110 million]

Invest $250 million cash in BGE and agree to future limits on potential subsidies from BGE customers to Constellation's unregulated businesses.

Earlier efforts by Governor O'Malley led to more concessions:

Last year BGE customers got a $170 rebate as part of a previous settlement.

[The $170-per-home rebate came to about $187 million]

Henri Proglio - New CEO of Electricite de France

Henri Proglio, left, is now the new CEO of Electricity de France (EdF). Proglio was formally head of the Veolia Environnement waste, water and transport company.

He replaces the current executive chairman of EdF, Pierre Gadonneix, whose term expired in November.

See: Constellation/EdF joint venture

Also see: Answers.com

Maryland PSC Approves Constellation/EdF Nuclear Merger

Congratulations

The Maryland Public Service Commission (PSC) approved Constellation Energy Group's (CEG) deal to sell half (49.9%) of its existing nuclear fleet to Electricite de France on Oct 30. CEG's board of directors approved the PSC’s conditions regarding the joint venture on the same day. The PSC imposed several conditions in the 54-page ruling, including:

A one-time $100 credit each for customers of Baltimore Gas & Electric Co totaling $110.5 million
1) Constellation investing $250 million in cash in BGE by June 30

2) Not receiving dividends from BGE if the utility's equity level falls below 48 percent, and

3) Delaying requests for delivery rate increases

The PSC directed the companies to inform the panel no later than Nov. 6 on whether they plan to close the transaction. The approval of the joint venture is a significant step toward the development of CEG's proposed Calvert Cliffs 3 nuclear power plant. The Center has enthusiastically supported the joint venture and construction of CC3 (3rd nuclear power plant at Calvert Cliffs).

The PSC's basic intent is to protect the 1.1 million BGE ratepayers by upholding a law that requires this deal to provide 'benefits and no harm' to ratepayers.

Other CC3 accomplishments this year include:

Selection by the Department of Energy this year to enter the final phase of due diligence for federal loan guarantees,

Announcement of the Project Labor Agreement (PLA),

Receiving a final Certificate of Public Convenience and Necessity (CPCN) from the Maryland PSC.

(Unistar Update, Balt Sun, 10/20/09)

Calculating CO2 Reductions For Biofuels

A new paper in the peer-reviewed journal Science illustrates "a critical accounting error" in the way carbon emissions from biofuels are measured in climate-change programs world-wide. Ethanol actually generates the same amount of greenhouse gas as fossil fuels, or more, per unit of energy. But this was still supposed to be better than coal or oil because ethanol's CO2 is "recycled." Since plants absorb and store carbon that is already in the atmosphere, burning them as fuel would create no new emissions, whereas fossil fuels release CO2 that has been buried for millions of years.

Climate change programs may end up treating biofuels as carbon-neutral, but the science study argues that this is a false economy because it doesn't consider changes in land use. If mature forests are cleared to make room for biofuel-growing farms, then the carbon that would otherwise accumulate in those forests ought to be counted on ethanol's balance sheet as well. So if Malaysians burn down a rain forest to grow palm oil that ends up in German biodiesel, Malaysia doesn't count the land-use emissions and Germany doesn't count the tail-pipe emissions.

Of course, the Center still believes biofuels should be a big part of America's energy mix. (WSJ, 10/29/09)

Smart Meters Are Coming To Town Thanks To Obama

President Barack Obama is distributing the largest single energy grid modernization investment in U.S. history - $3.4 billion in Smart Grid Investment Grant Awards under the American Recovery and Reinvestment Act that will be matched by industry for a total investment worth more than $8 billion. This Stimulus Package money is getting out to utilities and they are making plans to replace dumb electric meters with smart meters.

Progress Energy will match their $200 million grant with $300 million of its own funding for system and equipment upgrades (smart meters) that will make their grid more efficient, saving consumers money in the Carolinas and in Florida. Duke Energy will receive a similar $200 million grant. The Potomac Electric Power Company (PEPCO) and Atlantic City Electric Company were awarded a total of $168.1 million for smart meters and other devices for its operations in the Maryland suburbs of Washington and in other states. Baltimore Gas and Electric Company (BGE) is getting a $200 million federal subsidy to provide every household with an advanced smart meter that will enable them to better control energy use. BGE plans to install 2 million of the devices between 2010 and 2014 and charge customers for the upgrade.

The smart meters will give residential and commercial customers hour-by-hour information about energy pricing and enable them to cut back at times of peak costs.

Two companies that produced meters and communications equipment for a BGE "smart meter" pilot project, Aclara and Sensus, have manufacturing facilities both in the United States and in other countries. The Aclara Two-Way Automatic Communications System (TWACS) Technology is a proven, fixed-network solution that uses technology to transmit data over power lines. Aclara TWACS Technology offers two-way communication to electric meters and provides for timely billing, load control, demand response, and outage detection and assessment. With the system, utilities can effectively manage customer data and reduce costs while enabling innovation and providing superior customer service. Sensus provides smart metering technologies and conservation solutions for automatic meter reading, (AMR), advanced metering infrastructure (AMI), smart grid applications, distribution automation, and communication that enable electric, gas, and water utilities to measure, manage, and control distributed resources. Sensus also supports home area networks that help households practice intelligent resource consumption. (Balt Sun, 10/28/09)

Boxer/Kerry & Waxman/Markey Climate Bill CO2 Allowances

The Boxer/Kerry climate legislation was introduced in the Senate on October 23 and requires emissions cuts of 20 percent below 2005 levels by 2020, 42 percent by 2030 and 83 percent by 2050. Limits passed in the House are similar, except the 2020 reduction target is 17 percent. Boxer’s committee is holding three days of hearings (yesterday, today and tomorrow) on the 923-page bill and the committee might vote on it in November.

Both bills would establish carbon dioxide emission limits and require major polluters to buy pollution credits (allowances) after the government initially gives many away to ease the cost during the transition. Some senators believe utilities that don’t use coal will get more of the credits they need for free than coal-burning plants. Designing the allocation of allowances will be a huge undertaking. Here are some of the current plans:

In the Senate bill (Boxer/Kerry-S. 1733), utilities would get 35.5 percent of all allowances for free, manufacturers up to 15 percent and refiners 2.25 percent, the same as the House breakdown. The allocation formula for utilities uses a plan agreed to by members of the Edison Electric Institute, the utility industry’s Washington trade association, which bases free permits half on historical emissions and half on the amount of electricity sold.

In the House's Waxman/Markey bill (H.R. 2454), the cap-and-trade program allocates 85% of allowances to industry for free, auctioning the remainder. The revenue from these allowances will be used to finance conservation of tropical forests abroad and to support low-income households. 30% of the allowances will be allocated directly to local distribution companies (LDCs) who are mandated to use them exclusively for the benefit of customers. 5% will go to merchant coal generators and others with long-term power purchase agreements.

The Center supports allocating all of the allowances for free [except for 2.3% for price setting purposes] (Bloomberg.com, 10/27/09)

AREVA-Northrop Grumman Building Plant to Manufacture Components For Nuclear Power Plants

French multinational company AREVA has joined with Northrop Grumman Shipbuilding to invest more than US$360 million and create 540 jobs at a new engineering and manufacturing operation in Newport News, Virginia that will manufacture heavy components for the Evolutionary Power Reactor (EPR), AREVA's Generation III+ nuclear reactor.

"Project Larkspur" will be located on Northrop Grumman property, affording the joint venture, named AREVA Newport News, prime access to the James River for transporting the reactor vessels, steam generators and pressurizers the 300,000-sq.-ft. (27,870-sq.-m.) plant will produce.

AREVA already has this manufacturing capacity in Marcel-St. Chalon, France, which employs more than 1,000, and wanted a partner to create this capability in the USA. One of the key decision drivers was logistics – very large forgings weighing several hundred thousand pounds, then ship components weighing in excess of 500 tons and water access. The facility will be located adjacent to Northrop Grumman's shipyard, where there are 10,000 craft personnel. The indoor crane capability must exceed 1,000 tons. There will be a 48-inch thick concrete floor, thick enough to support setting down a reactor and filling it with water for hydrostatic tests.

AREVA signed a long-term agreement with Japan Steel Works in 2008 that extends through 2016 and is working on smaller forgings with Lehigh Heavy Forge in Pennsylvania. Among the first power plants in line for the components from Newport News may be a proposed reactor for UniStar Nuclear Energy at Constellation Energy's Calvert Cliffs Nuclear Power Plant in Lusby, Maryland. An AREVA-Bechtel consortium was awarded a contract from UniStar in 2008 that calls for detailed design engineering for the EPR plant. AREVA is constructing four EPRs elsewhere in the world – two in China, one in Finland and one in France – and has plans to work with U.S. utilities AmerenUE and PPL to construct other EPRs in Maryland, New York, Missouri and Pennsylvania.

To get ready, AREVA, which employs 5,300 people at some 45 locations in the U.S., continues to hire talent at its engineering operations in Charlotte, N.C., and Lynchburg, Va., bringing on 200 engineers in 2007 alone.

Other nuclear power industry-related corporate facility projects over the past 18 months include Alstom's $280-million, 360-job turbine and generator manufacturing plant in Chattanooga, Tenn.; GE-Hitachi's combined $954 million of manufacturing, R&D and headquarters projects in Castle Hayne and Wilmington, N.C., creating 1,150 jobs; Westinghouse's three-phase, $400-million headquarters expansion in Cranberry Township, Pa.; and, just announced in August 2008, a $100-million, 1,400-job nuclear reactor module fab and assembly facility in Lake Charles, La., from Westinghouse and Shaw Group. (Site Selection Magazine, Jan 2009, photo courtesy of Northrop Grumman)

Nuclear Power In Clean Energy Jobs & American Power Act

The nuclear power items under discussion in current climate change legislation ( S. 1733) in the Senate include:

Investment tax credits,

A doubling or more of the existing $18.5 billion in federal loan guarantees for new plants,

Giving nuclear plants access to a new clean energy development bank,

Federally financed training for nuclear plant workers,

A new look at reprocessing nuclear fuel, and

A streamlining of the regulatory approval process.

(Wash Post, 10/28/09, according to corporate, congressional and administration sources)

NRC To Lease Newly Constructed Office Building

The Nuclear Regulatory Commission (NRC) plans to lease a newly constructed 14-story, 362,000-square-foot office tower across from its office in Bethesda, Maryland. The NRC is expanding as part of the Obama administration's expectation that the agency expects to see plans for about 25 new nuclear reactors and has hired hundreds of staff to review applications from proposed operators. The agency will lease the building from the developer, LCOR.

They have hired 600 full-time engineers and some support people and have them in temporary locations in six buildings in Rockville and Bethesda. They will all be together in one complex.

The new $131 million building will be across the street from the existing NRC campus. It will be part of North Bethesda Center, a mixed-use property that currently contains apartments and is proposed to include a hotel and retail space. Construction is scheduled to begin in March and the tower will open in about two years. (Wash Post, 10/27/09, Rendering Courtesy Of Lcor)

President Obama Announces $2.3 Billion Smart Grid Funding

The White House

Office of the Press Secretary, For Immediate Release

October 27, 2009

Remarks by the President on Recovery Act Funding for Smart Grid Technology

DeSoto Next Generation Solar Energy Center Arcadia, Florida

Excerpts:

Now, it's time to make the same kind of investment in the way our energy travels -- to build a clean energy superhighway that can take the renewable power generated in places like DeSoto and deliver it directly to the American people in the most affordable and efficient way possible. Such an investment won't just create new pathways for energy -- it's expected to create tens of thousands of new jobs all across America in areas ranging from manufacturing and construction to IT and the installation of new equipment in homes and in businesses.

It will allow us to more effectively transport renewable energy generated in remote places to large population centers, so that a wind farm in rural South Dakota can power homes in Chicago. And by facilitating the creation of a clean energy economy, building this 21st century energy infrastructure will help us lay a foundation for lasting growth and prosperity.

So that's why today, I'm pleased to announce that under the Recovery Act, we are making the largest-ever investment in a smarter, stronger, and more secure electric grid. This investment will come in the form of 100 grants totaling $3.4 billion -- grants that will go to private companies, utilities, cities, and other partners who have applied with plans to install smart grid technologies in their area.

Now, let me explain what's going on with these smart meters. Smart meters will allow you to actually monitor how much energy your family is using by the month, by the week, by the day, or even by the hour. So coupled with other technologies, this is going to help you manage your electricity use and your budget at the same time, allowing you to conserve electricity during times when prices are highest, like hot summer days.

FULL STATEMENT

Senate E & PW Committee Hearing Today

PRESIDENT'S CORNER

By Norris McDonald

I attended the Senate Environment and Public Works Committee hearing today on the Clean Energy Jobs and American Power Act (S. 1733), which is cosponsored by committee Chairwoman Barbara Boxer (D-Ca) and Senate Foreign Relations Committee Chairman John Kerry. Panelists included: Environmental Protection Agency Administrator Lisa P. Jackson, Energy Secretary Steven Chu, Interior Secretary Ken Salazar, Transportation Secretary Ray LaHood and Federal Energy Regulatory Commission Chairman Jon Wellinghoff (listed in order below). I sat two rows behind EPA Administrator Jackson.

Secretary Chu asserted that conservation is the best near-term solution to energy independence. Secretary LaHood said the $8 billion stimulus package money assigned to his department was a good 'down-payment' on a good mass transit program. Secretary Salazar said he would coordinate his energy programs with Secretary of Agriculture Vilsack to assure that biofuels are a significant part of the energy mix. And Jon Wellinghoff discussed the role of regional transmission organizations (RTOs) and independent system operators (ISOs) in the establishment of a new grid.

EPA Administrator Jackson assured the committee that she still believes legislation is the best way to address global warming. She also assured the committee that her agency would proceed with climate change regulations in the absence of legislation. The agency is drafting regulations under the Clean Air Act's New Source Review to address global warming. Senator Inhofe continued with is global warming denial.

Of course, the hearing was riveting. Public turnout was huge. The senators had many questions and promoted their own agendas, from energy conservation to nuclear power. All of the Republicans left before the end of the hearing. Secretary of Interior Ken Salazar also had to leave early. The press briefing in the hallway was one of the biggest I've seen with at least 20 members of the press filling the hallway as Secretary Chu, Secretary LaHood and FERC Chairman Wellinghoff fielded questions. Administrator Jackson bolted out of the hearing through the majority office just as soon as the hearing adjourned and did not take any questions from the press. The press bolted back into the committee room to finish their stories after Chu, LaHood and Wellinghoff finished.

There are two more days of hearings with several panels.

Lisa Jackson Climate Change Statement Before E & PW

Statement of Lisa P. Jackson, Administrator

U.S. Environmental Protection Agency

Legislative Hearing on the Clean Energy Jobs and American Power Act, S. 1733

Senate Committee on Environment and Public Works

October 27, 2009

Chairman Boxer, Ranking Minority Member Inhofe, and members of the Committee, thank you for inviting me to testify about the Clean Energy Jobs and American Power Act.

I last appeared before this Committee on July 7. Since then, this Administration has, under President Obama’s leadership, taken unprecedented steps to decrease America’s dependence on oil, put our nation in the lead of the 21st Century energy economy, and reduce the greenhouse-gas pollution that threatens our children and grandchildren.

On September 15, for example, Secretary LaHood and I jointly announced coordinated Department of Transportation and Environmental Protection Agency rulemakings to increase the fuel efficiency and reduce the greenhouse-gas emissions of cars and light-duty trucks of model years 2012 through 2016. The rules will reduce the lifetime oil consumption of those vehicles by 1.8 billion barrels. That will mean eliminating more than a billion barrels of imported oil, assuming the current ratio of domestic production to imports does not improve. At today’s oil prices, we are talking about saving 78 billion dollars on buying oil from other countries. In the process, the rules will eliminate nearly a billion metric tons of greenhouse-gas pollution.

Each of my colleagues here can describe other steps that this Administration has already taken to make America’s economy stronger by getting it running on clean energy.

Even as the President and the members of his Cabinet move forward under existing authority, we continue urging Congress to pass a new clean-energy law. Only new legislation can bring about the comprehensive and integrated changes that are needed to restore America’s economic health and keep the nation secure over the long term.

This Committee held its July 7 hearing shortly after the House of Representatives passed the American Clean Energy and Security Act. So I took the opportunity to echo President Obama’s request that the Senate demonstrate the same commitment that we had seen in the House to building a clean-energy foundation for a strong American economy.

The introduction of the Clean Energy Jobs and American Power Act on September 30 shows that the Senate is responding to the President’s call to action. I commend you, Madame Chairman, and Senators Kerry and Kirk, for introducing that bill. I applaud the many other Senators, including members of this committee, who contributed meaningfully to the introduced legislation. And I thank Senator Graham for joining with Senator Kerry in a recent statement that reminds us all that giving America control over its own energy destiny can and should be a bi-partisan mission.

Earlier this year, EPA ran the major provisions of the House clean-energy legislation through several economic computer models. When it comes to the specifications that the models can detect, the Clean Energy Jobs and American Power Act is very similar to the House legislation. Nevertheless, EPA has examined the ways in which the Senate bill is different and determined which of the conclusions reached about the House-passed bill can confidently be said to apply to the Senate bill as well.

EPA delivered the result of that inquiry to the Committee last Friday, and the members can review the report in detail. But let me just state three of the projections about the House bill that EPA feels confident also apply to the Clean Energy Jobs and American Power Act.

First, the legislation would transform the American economy from one that is relatively energy inefficient and dependent on highly-polluting energy production to one that is highly energy efficient and powered by advanced, cleaner, and more domestically-sourced energy.

Second, the legislation would bring about that transformation at a cost of less than 50 cents per day per American household in 2020.

Third, the finding that regional cost differences would be small applies to the Senate bill just as it did to the House legislation.

The American people have waited decades while our nation has become increasingly dependent on foreign energy sources; while our global competitors create the clean energy jobs of tomorrow; and while we fail to safeguard the wellbeing our children and grandchildren.

I think Americans want reform that harnesses the country’s can-do spirit. I think they want to fuel long-term economic recovery with a wise investment that sparks a clean-energy transformation in our economy and that protects our children and grandchildren.

The Clean Energy Jobs and American Power Act is a significant milestone on the road to that reform. There of course remains road ahead, and there are many Senators on and off this Committee who have tremendous value to add. Thank you for your continuing work, and for inviting me to testify today.

Maryland PSC Versus Constellation Energy Group

It is being reported that the Maryland Public Service Commission (PSC) staffers are suggesting that Constellation Energy Group (CEG) should transfer up to $400 million in equity into BGE to improve the utility's financial standing. PSC staff is not proposing ratepayer credits because some analysts have pointed out that ratepayer credits could adversely affect BGE's finances.

Constellation has offered to invest up to $250 million in BGE, but only if it's necessary. The company if offering to delay requests for rate increases, and is offering regulators a choice: it will either forgo $22.5 million in anticipated future rate increases, or give customers one-time credits on their bills totaling the same amount.

But that amount is far lower than the credits sought by O'Malley, which amount to 10 percent of a household's annual bill and could cost more than $200 million. The governor also wants Constellation to contribute $50 million to $100 million to a program that helps lower-income residents pay their utility bills. (Balt Sun, 10/27/09)

BGE Receives $200 Million Federal Stimulus Grant

Baltimore Gas and Electric Company (BGE) will receive a $200 million federal stimulus grant as part of $3.4 billion in national "smart grid" funding. The BGE grant is one of 100 nationwide selected for federal funding by the Department of Energy out of a total of 400 applications submitted earlier this year. BGE plans to invest $251 million in the project, bringing the price tag of the first phase to $451 million. The company announced earlier this year that it expects to spend a total of $2.6 billion over the life of the project.

The federal grant, from the $787 billion stimulus program that President Barack Obama signed into law in February, will be used to help install 2 million advanced power meters for BGE customers. A total of 400,000 in-home devices will allow customers to better manage electricity use as part of the initial project, according to Obama administration officials. Energy department officials estimate that the federal money will begin flowing to the projects within the next 60 days. (Balt Sun, 10/27/09)

EPA Releases Analysis Of Boxer/Kerry Climate Legislation

The U.S. Environmental Protection Agency (EPA) released its detailed economic analysis of The Clean Energy Jobs and American Power Act (Boxer/Kerry, S. 1733) that found no significant change in the estimated cost to American families, compared with H.R. 2454, the Waxman-Markey legislation passed this summer by the House of Representatives.

EPA's analysis of the House bill estimated the overall impact on the average household would be 22 to 30 cents per day ($80 to $111 per year).

EPA's Economic Analysis

EPA To Issue New Air Pollution Rules For Power Plants

According to court documents, the Environmental Protection Agency (EPA) has agreed to issue new air-pollution rules for coal- and oil-fired power plants by November 2011. A consent decree released late Thursday follows a lawsuit filed by medical associations and environmental organizations against the EPA in December, alleging the agency was not drafting new power-plant emission rules fast enough as required by the Clean Air Act.

At issue were final "maximum achievable control technology" emission standards for hazardous air pollutants such as mercury, arsenic, cadmium, other heavy metals, acid gases and dioxins. (WSJ, 10/24/09)