RGGI Request For Proposals Issued

Regional Greenhouse Gas Initiative, Inc. (RGGI, Inc) is a nonprofit organization formed to provide technical and scientific advisory services to participating states in the development and implementation of the CO2 Budget Trading Program under the Regional Greenhouse Gas Initiative (RGGI). Information on the RGGI program is available at http://www.rggi.org/ .On December 20, 2007, RGGI, Inc. issued the following request for proposals (RFP): CO2 Emissions and Allowance Tracking System Implementation Services. The RFP is available at http://www.nescaum.org/ .

Interested proposers should read the document carefully.RGGI, Inc. anticipates entering into an agreement with the selected proposer on or about February 22, 2008. Responses to these RFPs must be received by RGGI, Inc. no later than 5 P.M. EST on January 22, 2008. Late proposals will not be considered. Faxed or e-mailed copies will not be accepted. Specific submittal instructions are described within the RFPs.

Interested proposers should note the following events and dates: Notice of Intent to Propose Form Due: January 3, 2008 Proposers' Conference Call: January 10, 2008Proposal Due Date and Time: January 22, 2008, 5PM EST Notification of Award: February 12, 2008 Contract Execution: February 22, 2008 Northeast States for Coordinated Air Use Management (NESCAUM) is facilitating communications with RGGI, Inc. for this RFP, and questions about the solicitation process, as well as the Notice of Intent to Propose Form, should be directed to the following: Charla Rudisill NESCAUM Phone: 617-259-2000 Fax: 617-742-9162 E-mail: rggi@nescaum.org

RGGI Program Overview: http://www.rggi.org/docs/program_summary_10_07.pdf

Public comments on the final allowance auction design study conducted for the New York State Energy Research and Development Authority (NYSERDA) and the RGGI Staff Working Group: http://www.rggi.org/auction.htm

Letter sent to U.S. Congress from Environmental and Energy Agency Heads in RGGI participating states outlining principles for the design of a U.S. federal greenhouse gas cap-and-trade program. A generic version of the letter is posted that was sent to individual members of Congress from RGGI state delegations, as well as Congressional leadership, and members of the Senate Committee on Environment and Public Works, House Committee on Energy and Commerce, and House Select Committee on Energy Independence & Global Warming: http://www.rggi.org/docs/rggi_letter_10_31_07.pdf

DOE Selects "Clean Coal" Demonstration Site

The U.S. Department of Energy's FutureGen Alliance named Mattoon, Illinois, as the site for a new $1.8 billion "clean coal" demonstration plant that will capture carbon dioxide and store it underground permanently. The FutureGen project, which also aims to eventually produce some hydrogen from coal, is expected to be online in 2012.

The plant in downstate Mattoon will be a joint venture between the U.S. Department of Energy and the FutureGen Alliance, a non-profit consortium of coal producers and energy generators. Downstate Illinois has the coal, the geology and the commitment needed to demonstrate this project. The Center supports this project. (Reuters, The Baltimore Sun)

Russia Sends Uranium Fuel To Iran Nuclear Power Plant

Russia sent enriched uranium fuel to Iran today to power the Bushehr nuclear power plant, left, which is expected to start producing electricity in about 6 months. Iran is a signatory to the Nuclear Nonproliferation Treaty (NPT), which guarantees the uranium fuel will be delivered under the control of the International Atomic Energy Agency (IAEA).

A recent U.S. National Intelligence Estimate (NIE) report concluded that Iran had halted efforts to develop nuclear weapons in 2003. Atomstryexport, the Russian contractor for Bushehr, built the plant. (The Washington Post, Wiki)

Yuan versus Dollar

Ever wonder about what they are talking about when there is a discussion on monetary policy regarding the Chinese yuan compared to the American dollar and its effect on the trade imbalance? Well without getting into it too deeply, Charles Wolf, Jr. of The Wall Street Journal writes:

"In 2005 the yuan was worth 12 U.S. cents. It is currently worth 13.5 cents (7.4 yuan per dollar). Many believe that if the yuan's exchange value were to increase further, perhaps to 17 cents or 18 cents, the bilateral imbalance between the two countries would be substantially reduced, if not eliminated...This reasoning, though plausible, is wrong. [the reasons why are involved] China's exports to the U.S. would thereby become more expensive in U.S. dollars and would therefore decrease, while China's imports from the U.S. would become less expensive in Chinese yuan and therefore would increase."

Wall Street Copying Our Center On Carbon Trading

The New York Mercantile Exchange parent Nymex Holdings and a group of Wall Street trading houses plan to launch an exchange for trading carbon dioxide emissions and other environmental products. The Chicago Climate Exchange launched in 2003. The Center launched its Green Carbon Bank (GCB) and Carbon Mercantile Exchange (CMX) in 2006. Nymex Holdings will call its service the Green Exchange and will offer environmental futures, options and swaps contracts.

Trading by the Green Exchange is expected to begin in the first quarter of 2008. The Regional Greenhouse Gas Initiative (RGGI) launches in 2009 and is a greenhouse gas reduction reduction program by nine Northeastern states. California also has a climate change program. Nynex will own 25% of the Green Exchange with the rest owned by Morgan Stanley, J.P. Morgan Chase and Credit Suisse Group. Richard Schaeffer will be CEO.

In addition to the Center, it appears that South Africa beat them to the concept and the name (South Africa Green Exchange).

(Source: The Wall Street Journal, Dec 12, 2007) (NPR Interview, Environmental Leader)

Saudia Arabia Wants To Build Nuclear Power Plants

There are currently no nuclear power plants in Saudi Arabia. Ali Saleh al-Barrak, head of Saudi Electricity Company wants to change that. He is pronuclear and wants to reduce the amount of petroleum used to generate electricity in his country. Saudi Arabai has 24 million people and the country uses 2 million barrels of oil per day (compared to 20 million per day in the USA).

Saudi Arabia has capacity to generate 31,000 megawatts of electricity. It is estimated that by 2012 Saudi Arabia will fire nearly 60% of its electricity with oil. According to the U.S. Department of Energy and the International Energy Agency, Saudi Arabia will consume more than a third of its own oil. Right now production stands at 11 million barrels per day. (The Wall Street Journal, DOE-EIA, IEA)

Communication From The White House

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET

STATEMENT OF ADMINISTRATION POLICY
H.R. 6 – Energy Independence and Security Act of 2007 (Reid Amendment)
(Rep. Rahall (D) WV and 198 cosponsors)

The Administration opposes the Reid substitute amendment, which fails to correct many of the highly objectionable provisions identified in previously-issued Statements of Administration Policy on H.R. 6. If H.R. 6 were presented to the President as modified by the Reid substitute amendment, his senior advisors would recommend that he veto the bill.

The Administration strongly opposes the amendment’s tax title, which would raise taxes in several ways that will increase energy costs facing consumers. More specifically, the Administration strongly opposes using the Federal tax code to single out specific industries for punitive treatment. Furthermore, the tax increases included in the Reid substitute amendment vastly exceed the amount necessary to offset the estimated revenue reductions arising from the bill’s fuel economy provisions. The Administration compliments the Senate for giving the Department of Transportation (DOT) the authority to establish a new CAFE standard, which would both improve fuel economy and reduce tailpipe greenhouse gas emissions.

The bill should clarify, however, that DOT should establish this single national regulatory standard, in consultation with the Environmental Protection Agency, and that neither agency should add additional layers of regulation. The Administration also supports an ambitious alternative fuel standard, which should include an effective safety valve, should be technology neutral, and should rely on market innovation instead of statutory prescription. The proposed legislation, however, is excessively prescriptive and fails these tests, picking and choosing among fuel types, and failing to include an adequate safety valve.

The Administration also retains several additional concerns previously outlined in the Statements of Administration Policy on the underlying bill. Congress should seize the current opportunity to enact bipartisan legislation to enhance American energy security and to achieve vital goals of the President’s “Twenty in Ten” initiative proposed more than ten months ago. The Administration urges Congress to put political considerations aside, to repair the repeatedly noted problems with the energy bill, and to send the President legislation that he can sign. [The White House sent it and we posted it]

USA & China Sign Environmental Agreement

China and the United States signed a 10-year agreement to work together on clean technology and sustainable natural resources. The countries also announced the completion of joint study on air pollution, efforts to increase the use of biowaste fuel, and a pledge to collaborate to stop illegal logging.

EPA Administrator Stephen Johnson is part of a U.S. delegation meeting with Chinese officials discussing trade, monetary, and environmental issues.

Dmitry Medvedev Backed By Putin To Rule Russia

Dmitry Medvedev, left, has been selected by Russian President Vladimir Putin, with Medvedev at right, to succeed him. Now there is just the matter of an election on March 2, 2008. Medvedev is chairman of the Russian state energy (natural gas) company Gazprom and has been there for 7 years. He is married and has one son.

Medvedev is a 42 year old lawyer and was born in St. Petersburg (known as Leningrad until 1991). Medvedev has never been elected to political office. He graduated from Leningrad State University's law school in 1987 receiving his Ph.D. in law in 1990. Much attention seems to be given to his 5 foot 4 height.

EPA Chief Stephen Johnson Visits China

From Dec. 10 to 15, 2007, EPA's official delegation will give a first-hand account of their trip through photos and diary entries which will be posted 2-3 times per day on EPA's Web site diary , which will be an account of the official EPA delegation's visit to China and the agency's efforts to foster global environmental cooperation through the Strategic Economic Dialogue (SED). Administrator Johnson will join Treasury Secretary Henry Paulson and other senior U.S. officials for the third cabinet level meeting of the SED.

This meeting will focus on integrity of trade, balanced economic development, energy conservation, financial sector reform, environmental sustainability, and advancing bilateral investment. The dialogue waslaunched by President Bush and President Hu in September 2006.

Visit EPA's Trip Diary from China to view daily updates from Administrator Johnson and his staff on their trip to China for the U.S.-China Strategic Economic Dialogue.

Contact: Andrew Wilkins, (202) 564-4355

And see Our 2007 Trip To China

Hotel Room Glasses

Are those glasses in your hotel room as clean as they look? Watch the video below and decide for yourself.

Electric Utiltiies Are Entering Twilight Zone

The U.S. Department of Energy (DOE) is reconsidering its decision to designate the mid-Atlantic region as a priority area for the placement of new high power lines. This is very bad news for consumers and utilities. DOE should stick to its guns. They must be getting serious heat from the states. The designated areas are "National Interest Electric Transmission Corridors." DOE will take more comments and act accordingly. Come on DOE. We need authority to blast through the selfish NIMBYs who don't want utility lines near them but want to use a ton of electricity every day.

Now the states are considering regulating utilities and that would be a disaster. First they convinced the utilities to divest their power plants back in the 1990s to stimulate competition, now legislatures are considering reversing directions and reregulating them to try to control price increases. The legislatures created this problem in the first place by freezing retail rates. This is just a mess. Regardless, keep deregulation. Just allow it to work. Get out of the way and let the market work.

Maryland Commission on Climate Change Report

Maryland is a signatory to the Regional Greenhouse Gas Initiative (RGGI) along with 12 other Northeastern states. The Maryland Commission on Climate Change (MCCC) wants to cap greenhouse gas emissions with a 90% reduction by 2050. The MCCC was created by Governor Martin O'Malley and includes state legislators, agency heads and environmentalists.

The draft report calls for reducing emission by 15 percent below the 2006 level by 2015. Virginia is considering reducing greenhouse gases by 30 percent by 2030.

New Environmental Legal Web Site For China

The U.S. EPA has launched the EPA - China Environmental Law Initiative Web site that will provide a forumfor sharing information and fostering an ongoing dialogue with China on environmental law.The Web site features information on new developments in Chinese environmental law, links to legal resources such as reports, articles, and the English text of many Chinese environmental laws, and an e-mail update service.

The URL for the Web site is: http://www.epa.gov/ogc/china/initiative_home.htm

Portions of the Web site have been translated into Chinese and are available on the EPA Chinese
Portal: http://www.epa.gov/chinese/simple/initiative.html

Voluntary Carbon Dioxide Offset Market Being Created

The Center is in the forefront of developing a voluntary carbon dioxide (CO2) trading market. Except that we have yet to convince a nuclear company to collateralize our Green Carbon Bank (click on the penguin). Whereas more traditional environmental organizations, other nonprofits and profit companies are basing their offsets on tradition renewable technologies, the Center is basing its offsets on emission free nuclear power. We also intend to market traditional offsets through our Carbon Mercantile Exchange (CMX).

A new Voluntary Carbon Standard (VCS) aims to certify the validity of voluntary offsets bought by those who want to reduce their planet-warming greenhouse gas emissions, or 'carbon footprint.' The VCS seeks to increase transparency and quality assurance in the unregulated voluntary market. The VCS wants businesses and other buyers to trust the offsets they buy. The VCS standard is endorsed by the International Organization for Standardization (ISO), which guarantees permanent emissions reductions that have been independently verified and incorporates a registry that prevents vendors from selling the same offsets twice. The VCS was developed after a two-year consultation including The Climate Group, the International Emissions Trading Assocation (IETA) and the World Business Council for Sustainable Development.

The Climate Group is a London-based coalition of environmentalists and businessmen working to establish a standardized, international marketplace for trading carbon emissions credits. The program aims to assure purchasers that the carbon credits they buy are genuine and truly represent a carbon-emission reducing project. Each credit represents an offset to a ton of carbon emissions. It is voluntary program and businesses are not required to buy offsets. However, not only is it good public relations for a company to offset their carbon emissions, if enough entities participate, significant reduction can be achived. The program establishes a single database to track the credits to ensure their authenticity. (MarketWatch, Reuters)

PetroChina Is The World's Largest Company

PetroChina, the main oil and gas producer in China, became the world's largest company after trading on the Shanghai Stock Exchange on November 5, 2007. Now they are bigger than Exxon Mobil.

PetroChina produced 1 billion barrels of oil in 2006 and had revenue of $92 billion. Jiang Jiemin is the chairman of PetroChina.

Congress Overrides Bush Veto of Water Resources Bill

The U.S. Senate voted 79-14 on Nov 8 to override last week's veto by President George W. Bush of a $23 billion water bill, HR 1495, the Water Resources and Development Act of 2007. On Nov 6 the House voted 361-54 with 138 Republicans joining 223 Democrats to override the veto. The bill also authorizes funding for hurricane protection in Louisiana and restoration of the Everglades in Florida. President Bush vetoed the measure because he believed it was too costly and would overtax the Army Corps of Engineers. It was the first veto override of his presidency. A two-thirds majority is needed to override a veto.

Although environmentalists and many Republicans united to support the water bill, not everyone thinks the veto override was a good idea. Michael Grunwald, senior correspondent for Time Magazine tells Grist magazine that they missed an excellent opportunity to use the water bill as leverage to reform the U.S. Army Corp of Engineers.

Congress Buys CO2 Offsets For Capitol Power Plant

The CEO of the U.S. House of Representatives purchased 30,000 tons of carbon dioxide (CO2) for $89,000 from the Chicago Climate Exchange (CCE). They appear to have paid a little more because the CCE price per ton for credits is now $2.00 per ton, which would be $60,000. House Speaker Nancy Pelosi has vowed to make the House green by the end of 2008. The CEO chose the CCE instead of another service that offers specific credits for specific technologies. Congress has yet to establish a mandatory carbon trading program for the country. (The Washington Post)

We have established a service to provide CO2 credits based on nuclear power. Our program is similar to the CCE in that it is voluntary. The Center is still trying to get a nuclear company to agree to provide carbon dioxide offset credits based on uprates, license renewals and construction of new nuclear power plants. The Center's credit sell for $10 per ton through our Green Carbon Bank. We hope to also offer nonnuclear credits through out Carbon Mercantile Exchange.

New Nuclear Plant Being Built In Liaoning Province

China is planning to build a new nuclear power plant, the Hongyanhe nuclear power station, located the Donggang Township, of Dalian's Wafangdian City, Liaoning Province. It will have six generating units, each with an installed capacity of one million kilowatts and is being built by the Liaoning Hongyanhe Nuclear Power Co Ltd.

The China Guangdong Nuclear Power Group Holdings Co Ltd and the China Power Investment Corporation will each hold a 45-percent stake, and the remaining 10 percent will be held by the Dalian Municipal Construction Investment Company.The project was approved by the National Development and Reform Commission in 2006. It is projected to cost 23 billion yuan (3.03 billion US dollars). China built its first nuclear power plant in east coastal Zhejiang Province in 1991. (ChinaDaily)

China Nuclear Power: Past, Present & Future

China started nuclear power operations in 1991, when Qinshan-I, a 300-megawatt (MW) pressurized-water reactor unit, independently developed by China, plugged into the grid. China plans to take its nuclear power capacity from about 9000 MW in 2007 to 40000 MW by 2020.

American Rivers-NOAA River Restoration Grants

Americn Rivers seeks proposals for river restoration project grants as part of its partnership with the National Oceanic and Atmospheric Administration (NOAA) Community-based Restoration Program. Program funding is provided through NOAA's Open Rivers Initiative, which seeks to enable environmental and economic renewal in local communities through the removal of stream barriers.

This Partnership funds stream barrier removal projects that help restore riverine ecosystems, enhance public safety and community resilience, and have clear and identifiable benefits to diadromous fish populations. "Diadromous" fish migrate between freshwater and saltwater during their life cycle. Examples include alewife, American eel, American shad, blueback herring, salmon, steelhead, shortnose sturgeon and striped bass. Projects in the Northeast (ME, NH, VT, MA, CT, RI), Mid-Atlantic (NY, NJ, PA, DE, VA, MD, DC), Northwest (WA, OR, ID), and California are eligible to apply. Projects located within the St. Lawrence/Great Lakes Basin are not eligible for funding in the December 2007 grant round.

Eligible applications will be evaluated based upon four priority criteria: (1) ecological merits of the project, (2) technical feasibility of the project, (3) benefits provided to the local community, and (4) financial clarity and strength of the application.

Grants are provided for three distinct project phases: Feasibility Analysis, Engineering Design and Construction. Average grants are $25,000 - $50,000. Successful applicants for one project phase will not be eligible to receive additional funding for that same project phase in future grant rounds. See the Funding Guidelines for additional details.

Applications are currently being accepted for the first cycle of fiscal year 2008 with a deadline of December 3, 2007. Applications for projects must be postmarked by the deadline for consideration in this funding cycle. Potential applicants should contact American Rivers to discuss potential projects prior to submitting an application. Applicants can expect notification about funding decisions in early March 2008.

NOTE: Our eligibility requirements and application content have changed. Obtain the Application for Financial Assistance and Funding Guidelines or contact us them the addresses below.

Contact: Serena S. McClain, American Rivers, 1101 14th Street, NW Suite 1400
Washington, DC 20005 Email: http://www.blogger.com/

The Downside of Ethanol

One blogger's take (Little Blog In The Big Woods).

MIT Greenhouse Gas Emissions Prediction & Policy Analysis

The MIT Emissions Prediction and Policy Analysis model is applied to an assessment of a set of cap-and-trade proposals being considered by the U.S. Congress in spring 2007. The bills specify emissions reductions to be achieved through 2050 for the standard six-gas basket of greenhouse gases. They fall into two groups: one specifies emissions reductions of 50% to 80% below 1990 levels by 2050; the other establishes a tightening target for emissions intensity and stipulates a time-path for a “safety valve” limit on the emission price that approximately stabilizes U.S. emissions at the 2008 level. A set of three synthetic emissions paths are defined that span the range of stringency of these proposals, and these “core” cases are analyzed for their consequences in terms of emissions prices, effects on energy markets, welfare cost, the potential revenue generation if allowances are auctioned and the gains if permit revenue were used to reduce capital or labor taxes.

Initial period prices for the first group of proposals, in carbon dioxide equivalents, are estimated between $30 and $50 per ton CO2-e depending on where each falls in the 50% to 80% range, with these prices rising by a factor of four by 2050. Welfare costs are less than 0.5% at the start, rising in the most stringent case to near 2% in 2050. If allowances were auctioned these proposals could produce revenue between $100 billion and $500 billion per year depending on the case. Emissions prices for the second group, which result from the specified safety-valve path, rise from $7 to $40 over the study period, with welfare effects rising from near zero to approximately a 0.5% loss in 2050. Revenue in these proposals depends on how many allowances are freely distributed.

To analyze these proposals assumptions must be made about mitigation effort abroad, and simulations are provided to illuminate terms-of-trade effects that influence the emissions prices and welfare effects, and even the environmental effectiveness, of U.S. actions. Sensitivity tests also are provided of several of the design features imposed in the “core” scenarios including the role of banking, the specification of less than complete coverage of economic sectors, and the development of international permit trading. Also, the effects of alternative assumptionsabout nuclear power development are explored. Of particular importance in these simulations is the role of biofuels, and analysis is provided of the implications of these proposals for land use and agriculture.

Finally, the U.S. proposals, and the assumptions about effort elsewhere, are extended to 2100 to allow exploration of the potential role of these bills in the longer-term challenge of reducing climate change risk. Simulations using the MIT Integrated System Model show that the 50% to 80% targets are consistent with global goals of atmospheric stabilization at 450 to 550 ppmv CO2 but only if other nations, including the developing countries, follow. (Source: MIT)

Inside The Beltway Climate Change Wonk Fight

Sport inside the Beltway. The right and left just love this competition. The left says Julie L. Gerberding's testimony was doctored by the Bush right to water down global warming information. CDC Director Gerberding submitted her Senate testimony to the White House Office of Management and Budget and word gets out that it was doctored down from 14 pages to four. WOW. Now here is a path to climate change solutions.

This sort of dance has happened before. It will happen again. Administration scientists say they are being repressed. The Administration then says they are simply trying to present a 'balanced view.' And around and around we go. The press jumps on it. Congress milks it. And we just have to wait for the next scientific report and it will start all over again. The CDC is part of the Department of Health and Human Services.

Members of the Standing Committee of the Political Bureau of the CPC Central Committee

China Congress Convenes

China's Communist Party Congress is meeting to make decisions about the next five years. President Hu Jintao addressed the Congress and spoke about economic growth and social protections. There are 2200 party delegates in the Congress.

The Communist Party will maintain its monopoly power and it will continue to allow China to develop its capitalist economy. We want to work with the Chinese Congress and the Hu Administration to promote environmental protection and economic growth.

Source：CHINADaily

CPC (Communist Party of China)

Members of the Political Bureau of the CPC Central Committee

Source：CHINADaily

CPC (Communist Party of China)

DOE Issues Final Regulations For EPAct Loan Guarantees

The U.S. Department of Energy (DOE) has issued (Oct 4) the final regulations for the loan guarantee program authorized by Title XVII of the Energy Policy Act of 2005 (EPAct). DOE’s action will pave the way for federal support of clean energy projects using innovative technologies and will spur further investment in these advanced energy technologies.

DOE has invited 16 project sponsors, who submitted pre-applications last Fall, to submit full applications for loan guarantees. These projects include advanced technologies involving the uses of biomass, fossil energy, solar, industrial energy efficiency, electricity delivery and energy reliability, hydrogen, and alternative fuel vehicles. Projects supported by loan guarantees will help fulfill President Bush’s goal of reducing our reliance on imported sources of energy by diversifying our nation’s energy mix and increasing energy efficiency. (More)

President Bush Threatens Veto On Energy Bill

President Bush is promoting a "Twenty in Ten" energy legislative package that would reduce gasoline consumption by 20 percent in ten years. The legislation was not adopted by Congress. The administration has subsequently offered a basic framework for an energy bill that would not compel the President's senior advisors to recommend a veto. Such a bill would:

1) Contain an ambitious alternative fuels standard comparable to that proposed by the President in his 2007 State of the Union.

2) Reform and strengthen the fuel economy standard for cars, and maintain separate, attribute-based standards for cars and light trucks, based on sound science, safety, and cost-benefit analysis.

3) Not reduce but instead increase domestic energy production.

4) Not raise taxes nor use the tax code to single out specific industries.

5) Not contain provisions (such as NOPEC) that encourage retaliation against American businesses abroad, discourage job-creating investment in the U.S. economy, and injure U.S. relations with other countries.

6) Not impose price controls that could bring back long gas station lines reminiscent of the 1970s.

7) Not expand the application of the Davis-Bacon Act prevailing wage requirements.

8) Not contain a Renewable Portfolio Standard.

(Actual Letter to Nancy Pelosi)

CLP Group Issues Environmental Reports

The CLP Group has developed a new online Sustainability Report (SR), as well as our Social and Environmental Report 2006 (SER).

New this year, CLP's online SR includes elements and indicators recommended in the Global Reporting Initiative's G3 Sustainability Reporting Guidelines. To complement their more concise SER 2006, it provides broader coverage of sustainability and greater depth on issues that are important to their stakeholders. It represents their new reporting milestone in creating a transparent and living report where you can find information that is updated regularly.

PJM Approves Pepco High Power Lines

PJM Interconnection, the operator of the mid-Atlantic region's electricity grid, has approved a 230-mile high-voltage power transmission line that would begin in Northern Virgina, cut across Southern Maryland, go under the Chesapeake Bay and end in New Jersey. The line would run adjacent to an existing power line. Now the $1 billion power line proposal by Pepco Holdings enters the public review phase. State regulators from Virginia, Maryland, Delaware and New Jersey will consider the power line and its environmental impact before allowing it to be built.

The addition of transmission lines could help lower "congestion fees" paid by customers in fast-growing regions such as Washington. North American Electric Reliability Corp., the power industry's watchdog and accountability group, released a report this week stating that the electric power industry in the mid-Atlantic region has failed to keep pace with long-term demand. The region will lose the Benning Road and Buzzard Point power plants in the District when they close in 2012. (The Wash Post/Times)

The power line proposals in the Washington region fall under the U.S. Energy Department's national interest designation. Therefore, they will test a new federal law that gives power companies authority to bypass state regulators and secure land through the federal government if their services are deemed vital to national energy interests. Pepco will host public meetings in coming months to discuss the proposal and gather public input. Pepco delivers electricity and natural gas to about 2 million homes and businesses in Delaware, Maryland, New Jersey, Virginia and the District.

Mid-Atlantic Region & West Designated Nat'l Power Corridor

The U.S. Department of Energy has declared an area from New York to Virginia to be a National Interest Electric Transmission Corridor (NIETC). This DOE designation gives the U.S. Federal Energy Regulatory Committion (FERC) eminent domain power to seize land needed for high power transmission lines. The NIETC was created by the Energy Policy Act of 2005 and gives FERC authority to override local opposition to the siting of transmission lines if a region's power needs are designated as reaching a "critical" level. FERC has made such a designation and now companies will look to DOE if states and local authorities stonewall all transmission plans.

The Center supports the NIETC designation and supported the EPACT of 2005. FERC will only grant eminent domain if utilities prove a serious need for a new line, that they have selected a reasonable location and they have encountered unacceptable delays. FERC will not offer automatic endorsement and we believe the agency will use the eminent domain powers responsibly.

DOE also designated nearly all of Southern California and parts of Arizona as "national interest" energy transmission corridors. Just as in the Mid-Atlantic region, this action allows federal regulators to approve new high-voltage towers and lets private utilities condemn homes and land even if a state agency will not. Six California jurisdictions in their entirety are designated as "national interest electric transmission corridors," including Los Angeles, Orange, San Bernardino, Riverside, Kern and San Diego counties.

Methane-To-Markets Report and Beijing Conference

The Environmental Protection Agency has released a report showing that the United States continues to provide significant support for the Methane to Markets Partnership to reduce emissions of methane, a greenhouse gas over 20 times more potentthan carbon dioxide. Current U.S. Methane to Markets projects, when fully implemented, will deliver estimated annual emission reductions equivalent to more than nine million metric tons of carbon dioxide.

The report, "U.S. Government Accomplishments in Supportof the Methane to Markets Partnership - September 2007," highlights U.S.accomplishments through 2006. Additional highlights from the report include: 1) More than 600 private-sector and non-governmental organizations internationally have signed on to participate in project development activities. This is an increase of more than 250 organizations in the past year. 2) In fiscal year 2006, the U.S. Government dedicated $12.9 million to Methane to Markets, bringing the total U.S. financial commitment to the partnership to more than $18 million since it started. 3) U.S. funding for partnership activities has leveraged public and private sector investment totaling over $261 million. 4) U.S. commitment to the partnership has continued to assist the rapid growth of the program, including the entry of two additional countries and the European Commission, bringing the total number of partners to 21.

Oct. 30 - Nov. 1 in Beijing: the U.S. will co-host with China's National Development and Reform Commission (NDRC) and other Chinese ministries and corporations the Methane to Markets Partnership Expo: A Forum for Projects, Technology, Financing and Policy. The U.S and 13 other countries launched the Methane to MarketsPartnership in 2004.

Dingell Floating Carbon Dioxide Legislation

House Energy and Commerce Committee Chairman John Dingell (D-MI) is proposing a $50 per ton tax carbon dioxide tax on petroleum and its products, coal, natural gas and other emitting products. He is also proposing a 50-cent per gallon tax on gasoline, jet fuel and kerosene. Dingell also wants to end the mortgage interest tax deduction for house over 3,000 square feet.

The money would increase the earned income tax credit to help low-income people to help offset higher energy prices. Yeah right. Where have we heard that before. And that's what poor people are looking for: a tax credit. Other revenues would go to the federal highway trust fund, with 40 percent going to mass transit and 60 percent to roads. The jet fuel fees would go into the federal airport and airway trust fund.

The Center opposes this plan because it would hurt poor people and the general economy. The Center has a policy of promoting that will create abundant energy supplies at reasonable prices. (Comment on the plan)

NRG Energy of Texas To Build New Nuclear Plant

NRG Energy has submitted the first complete application for a new nuclear power plant in 30 years. They want to build two units near Bay City, Texas. Each unit would be about 1,000 megawatts, or enough electricity for about 2 million homes. NRG wants the unit online by 2015. Each unit will cost about $3 billion.

Constellation has submitted an partial application (environmental report) to the Nuclear Regulatory Commission (NRC) to begin the process for getting approval to build two units adjacent to the Calvert Cliffs nuclear power plant. AAEA provided comments for that NRC meeting. (AP)

Marion Barry in China

Former Washington, DC mayor and current council member Marion Barry is in Nantong, China serving as the keynote speaker at the China Association of Mayors (CAM) conference. Mr. Barry is in China for five days. The CAM promotes the development of Chinese cities by sponsoring studies and networking among its membership, which is made up of mayors and vice mayors in China. When Mr. Barry was mayor he signed a sister city agreement between the Washington, DC and Beijing, which led to the construction of a friendship arch in Chinatown.

Convert Carbon Dioxide To Gasoline

The Center is promoting a process that would convert carbon dioxide into diesel fuel and gasoline, while producing hydrogen for fuel cell production.

We marry nuclear plants to coal plants that use pure oxygen combustion in the firebox to reduce the volume of stack gases. A scrubber would still be needed for sulfur dioxide, nitrogen oxides and mercury (Selective Catalytic Reducer). The nuclear plant (Pebble Bed Modular Reactor, Gen IV) is used to produce hydrogen via electrolysis (or high temperature electrolysis) or the sulfur-iodine cycle that will be piped away to produce fuel cells. The oxygen from the electrolysis process will be piped to the coal plant for use in the firebox. The hydrogen will also be mixed onsite with carbon dioxide from the coal plant stack in a water to gas shift to produce carbon monoxide, which will then be mixed with hydrogen using the gas to water shift in the Fischer-Tropsch process to produce a synthetic petroleum product (diesel fuel or gasoline). These processes need very high temperatures of about 900 degrees Celsius.

So carbon dioxide will be used from the coal plant to make a vehicle fuel while an adjacent nuclear plant will produce hydrogen for fuel cell production and oxygen for the coal plant firebox. The oxygen from the electrolysis will be used in the coal firebox to reduce the volume of emission gases by 80 percent, which represents nitrogen in the air. Excess carbon dioxide and CO2 from maintenance down times will be piped for sequestration. There will be little to no CO2 emitted from the coal plant because the gas will be used to make vehicle fuel. There will be CO2 released from vehicle use but these emissions would occur anyway from vehicle use.

We are still studying the energy penalties for these processes and the economics. If you have any input we would appreciate it. In the Fischer-Tropsch model pictured above the coal would be replaced with carbon dioxide. (Sources: Ken Schultz)

Judge Keeps Water From Yucca Mountain

U.S. District Judge Roger Hunt upheld Nevada's right to enforce its water laws and ruled that Nevada can shut off water that the U.S. Department of Energy says it needs for drilling at the proposed Yucca Mountain nuclear waste repository. The federal government can't ignore state limitations and continue using water for drilling test bore holes near the repository site. The order states that DOE "...has failed to demonstrate the necessity of its voracious water demands." The federal government kept increasing the scope of the drilling and its water needs - from about 15 bore holes to 80 and from 300,000 gallons of water to 3.5 million gallons. Judge Hunt did not decide the merits of the case, filed in August 2002. He denied the federal request for a preliminary injunction that would hindered the state from restricting water to the arid site.

The state will seek a contempt of court order if drilling does not stop. The judge rejected federal claims that scientists needed to test areas around the Yucca site to "meet congressional mandates" and demonstrate the suitability of the site for entombing 77,000 tons of radioactive waste now being stored at nuclear reactors in 39 states. The Energy Department once hoped to open the repository by 2010. But the projected opening date has been pushed back at least to 2017 by legal challenges, budget issues, political opposition and scientific controversies. Center President Norris McDonald is pictured at Yucca Mountain at the exit hole. (Associated Press)

The Money Needed To Build New Nuclear Plant in Maryland

Constellation says it would cost $4.5 billion to build a new nuclear plant adjacent to the two current reactors at Calvert Cliffs. Loan guarantees would still be needed to assure a build order. We're talking about loan guarantees even beyond those included in the Energy Policy Act of 2005. There is protection in that law, which protects the first six builders if a project is delayed due to no fault of the developer ($500 million for the first two and $250 million for the next four). Additional loan guarantees are being sought in the pending energy bill.

Calvert County's Board of County Commissioners is offering Constellation 15 years of tax breaks worth $300 million to help build the new reactor. Of course, county tax revenues from the plant would easily pay back these breaks in a few years, then the county revenues would be freee and clear. Nuclear industry proponents and the Bush administration want to expand the energy loan guarantee program that includes solar, biomass, nuclear and other energy projects, to $9 billion with $4 billion of that going to nuclear and clean coal. Expanding the loan guarantees for innovative technologies needs legislation because loan guarantees are limited by the Federal Credit Reform Act. A Senate bill would remove the limits while a House version excludes nuclear projects. Currently about 17 companies have plans to build 31 reactors and at $2 billion each is $62 billion in fiancing. (Wash Post)

EPA Proposes Flexible Air Permits

EPA is proposing changes to air quality permitting rules to provide increased flexibility and changes that would affect both EPA's operating permits and New Source Review (NSR) programs. Under the proposed changes to the operating permits program, a facility with a flexible permit would explain its operational plans and possible changes to those plans for the duration of the permit term typically 5 years. The state, local or tribal air quality permitting authority would include permit conditions to ensure protection of public health and the environment for all of those operating conditions. These flexible permits do not provide approval for operational changes not within the scope of conditions considered at the time of the permit application, and facilities would still be required to meet their requirements under the Clean Air Act.

The proposed revisions to the NSR program would govern when advance approvals of certain changes would be appropriate. EPA and states have been testing many of the flexible permittingapproaches for more than a decade. Based on the agency's evaluation of pilot projects, EPA expects that these proposed changes will promote significant environmental and economic benefits, while reducing administrative workload for both permitting authorities and facilities.

EPA will accept comment on this proposed rule for 60 days after it is published in the Federal Register. More about the proposal: http://epa.gov/nsr/actions.html#aug07
Information about EPA's New Source Review program: http://epa.gov/nsr/

Adam Werbach Goes From Sierra Club to Wal-Mart

Adam Werbach, left, gained some degree of fame by becoming the yougest president of the Sierra Club in 1996 at the tender age of 23. Of course he grew up and realized the Sierra Club, though not as extremist as some of the nuttier groups, is out of step with what is good for America. Now Mr. Werbach is consulting with Wal-Mart. Nothing wrong with that.

Werback designed the voluntary Personal Sustainability Project for Wal-Mart whereby the company's 1.3 million U.S. employees are each encouraged to take a step that will improve the environment.

Werbach's consulting firm: Act Now Full article from FastCompany.com, "Working With The Enemy"

Arcelor Mittal Sells Sparrows Point

Arcelor Mittal, left, the world's largest steelmaker, was forced to sell the Sparrows Point steel plant located in Baltimore by the Justice Department to preserve U.S. competition in production of tin-plated steel, used to make cans for food, aerosol sprays and paint.

Esmark, based in Chicago Heights, Illinois is headed by brothers James P. and Craig T. Bouchard and was founded in 2003. The Sparrows Point facility is the only fully integrated U.S. steel mill with direct ocean access. Sparrows Point accounted for 17 percent of Mittal's North American output and can produce about 3.9 million tons of steel products a year. The United Steelworkers Union, which represents about 2,500 Sparrows Point workers and about 15,000 retirees, must sign off on the ownership change under terms of its contract. (Wash Post)

Mandatory Electricity Reliability Standards

The Energy Policy Act of 2005 (EPAct2005) made electricity reliability standards mandatory and enforceable. The law authorized the creation of a self-regulatory 'electric reliability organization' to develop and enforce the standards. The U.S. Federal Energy Regulatory Commission (FERC) approve the North American Electric Reliability Council (NERC) as the enforcing organization on June 20, 2006. The requirements became active on June 18, 2007. The provision of the law was included in the legislation because of the massive blackout in 2003 that left 50 million people with electricity. NERC can now order corrective measures and fines from $1,000 to $1 million per day.

Standards relate to the planning and operation of the bulk power system and covers such areas as balancing customer demand with generation supplies, emergency operations, cyber security, vegetation management and disturbance reporting. More than 1,400 entities must comply with the NERC reliabiility standards. (Transmission & Distribution World)

Best Ethanol: Sugarcane From Brazil & USA Cellulosic

The U.S. Congress is considering raising the ethanol mandate from 7.5 billion gallons to 36 billion gallons. They want 20 of the 36 billion gallons to come from cellulosic (stalks, biomass) ethanol by 2022, which is more than six times the capacity of America's 115 ethanol refineries.

Some of the largest American ethanol companies and investors investing in Brazil are George Soros, Archer Daniels Midland and Cargill. Brazil also participates in the Interamerican Ethanol Commission with former Florida governor Jeb Bush. George Soros is backing a company in Brazil, Adecoagro, which plans to spend $1 billion to build three plants over the next five years. Goldman Sachs and Carlyle Group are also investing in new ethanol plants in Brazil. The import of Brazilian ethanol to the U.S. is constrained by the 51-cent per gallon subsidy paid to American corn ethanol producers and by the 54-cent per gallon tariff on imported ethanol. However, of the 680 million gallons of ethanol the U.S. imported in 2006, 500 million gallons came from Brazil.

There is also indirect pressure in Brazil to increase soy production in response to corn displacing soy for ethanol production in the United States. Bunge is one of the largest soy traders in Brazil and is headquartered in White Plains, N.Y. (Wash Post, Business, 7-31-07)

Natural Gas Plant & Nuke Plant Planned Near D.C.

Unistar has submitted a Combined Operating License (COL) application to the Nuclear Regulatory Commission (NRC) to build a 1,600-megawatt Evolutionary Power Reactor (EPR) at the current Calver Cliff's location, which is about 50 miles from Washington, DC. Unistar is a project of Constellation and France's nuclear power company Areva, which designed the EPR. Constellation has also agreed to partner with Electricite de France (EdF) to create Unistar Nuclear Energy to own and operate a fleet of EPR plants in the US and Canada.

Competitive Power Ventures is proposing to build a $400 million 600-megawatt natural gas-fired power plant in Waldorf, Charles County, about 25 miles from Washington, DC. The plant would provide electricity for about 600,000 homes. The plant would provide $2 million in annual revenue for the county. The 77-acre site was sold to CPV byAmerican Communities Properties Trust. (Wash Post, World Nuclear News)

China Hires France To Help Build Nuclear Plants

Beijing is signing an agreement with Paris to build two third-generation European Pressurized Water Reactors (EPR) nuclear reactors in China A letter of intent is to be signed by French nuclear group Areva, electrical giant EDF and their Chinese partner China Guangdong Nuclear Power Corp (CGNPC). CGNPC, based in the southern province of Guangdong, is the historic partner of Areva and EDF in China. It runs the Daya Bay and Ling Ao power stations, which the French companies helped to construct in the 1980s and 1990s.

It is being reported that the China-France contract is worth up to Euro 6 billion (US$8.25 billion). The cost of the first EPR built by Areva in Finland was estimated to be three billion euros. The two third-generation reactors will boost CGNPC's output by 3,200 megawatts. The deal must be ratified by French and Chinese authorities.

Westinghouse Electric Co -- Areva's main competitor for the supply of nuclear reactors to China signed deals to build four nuclear power plants in China. US, European and Russian suppliers of nuclear power technology have all been competing to get contracts in China, where as many as 32 nuclear plants are expected to be built by 2020. (CHINAdaily)

Wind Power For Beijing

The China Energy Conservation Investment Corporation, (CECI), a state-run company that promotes energy saving, started building a wind farm this year with a capacity of 200 megawatts at Zhangbei in North China's Hebei Province.

Beijing wants 20 percent of the electricity for the 208 Olympics to come from wind turbines.

China Gas Deal

China has signed an agreement import natural gas from Turkmenistan. China National Petroleum Corp will import 30 billion cubic meters of natural gas a year for 30 years. (The Wall Street Journal, 7-18-07)

Japan Nuclear Plant Withstands Earthquake

One of the world's largest nuclear facilities, owned by Tokyo Electric Power, withstood a 6.8 magnitude earthquake in Japan's northwest coast, but lost about 2 quarts of water from the spent fuel rod pool, which leaked into another supply of water and 315 gallons of that water were pumped into the sea. A fire also broke out at an electrical transformer at the site. All-in-all it appears that the facility was more than robust enough to withstand a powerful earthquake. Just as in the case of Three Mile Island, the design features worked. Nobody was killed or injured. Of course, because Tokyo Electric Power has a history of inaccurate or delayed reporting, we will probably have to wait to get the full picture. Nine people were killed and about 900 were killed in other parts of Northwest Japan due to the earthquake.

The Center takes any leak of radioactive material from nuclear plants very seriously. This facility should be thoroughly assessed and any damage repaired. Japan, like the U.S. should accelerate its program to resolve the spent fuel issue. The USA has Yucca and Japan reprocesses some of its spent fuel. The good news is that nuclear plants in Japan and the USA, and in other countries around the world, are built to withstand earthquakes. Japan has 53 nuclear power plants that provide between 30 and 40 percent of that country's electricity. The Nuclear Safety Commission and Japan Nuclear Safety Organization (JNES) oversee nuclear safety in Japan . The Japan Atomic Energy Agency is the central nuclear energy research organization. (The Washington Post) Photo: AP

Biologists Are Back 'In' Because of Biofuels

BP recently commissioned the Energy Biosciences Institute and dedicated $500 million to the Univ of California , Berkeley, Univ of Illinois at Urbana-Champaign and Lawrence Berkeley National Laboratory to develop biofuels. The new push for biofuels is putting biologists at the front of the corporate employment line. They are in demand for research and development on cellulosic ethanol made by breaking sown cellulose. Ethanol can be made easily from corn but is much harder to make from stalks and straw. Cellulosic ethanol is produced from such plant materials as rice straw, wood chips, switchgrass, poplar trees and corn stalks.

At companies such as Chevron Corp and ConocoPhillips, the geologists and petroleum engineers lack the skill to create biofuels. The companies now seek plant biologists, chemical engineers, molecular biologists, agronomists and geneticists for biofuels research. (The Wall Street Journal, 7-10-07)

Videos of the Center for Environment, Commerce & Energy

VIDEOS

Have you viewed the Center videos lately. Just click on the link above and enjoy videos from our trip to China and other exciting adventures in environmental protection.

Tomato Garden Greenhouse

Ford & Southern California Edison Partner On Plug-In Hybrid

Ford Motor Company and Southern California Edison are partnering to test plug-in hybrid vehicles. Ford will begin sending 20 plug-in Escape SUVs to Edison, which will deliver them to some of its 13 million customers in 11 central, coastal and southern California counties outside Los Angeles. The utility will measure data on the vehicle's range, durability, and impact on the power grid. Plug-ins can be charged in regular outlets. General Motors introduced its plug-in Chevrolet Volt earlier this year. Mass production has been held back by costs and battery technology that limit the vehicles' range.

The Center supports plug-in fuel cell hybrid electric vehicles as the best available technology to reduce gasoline consumption and global-warming greenhouse gas emissions. Combined with nuclear power plants no emissions are released into the atmosphere. Plug-in hybrids generally have batteries that power an electric motor with an internal combustion engine for use when the batteries run low. The Center favors replacing the internal combustion engine with a fuel cell.

Hydrogen Production

The Center supports electrolysis from nuclear power plants as the preferred alternative for producing hydrogen for a hydrogen economy. Of course, fossil fuels will always be a part of the U.S. economy. Electrolysis uses an electric current to separate hydrogen from oxygen in water. The Center is also promoting the use of burning coal in pure oxygen in the firebox to reduce the volume of gases targeted for sequestration. Nitrogen makes up almost 80 percent of that volume.

Right now about 95% of hydrogen production in the U.S. comes from natural gas. Hydrogen is produced using a process called natural gas reforming whereby high temperature steam (700-1000 C) under pressure causes a reaction with methane to separate the hydrogen, carbon monoxide and small amounts of carbon dioxide. Natural gas contains methane (CH4). Propane, ethanol and gasoline can also be used in this process.

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Bald Eagle Taken Off Endangered Species List

It is about time. Bill Clinton should have done it before he left office but was afraid to. Eagles are everywhere, even in the suburbs and around major development projects, such as the Woodrow Wilson Bridge replacement south of Washington, DC. So Interior Secretary Dirk Kempthorne has decided to take the raptor off of the Endangered Species List at a ceremony near the Jefferson Memorial on June 28.

The Endangered Species Act combined with a ban on DDT worked. DDT was successful in eliminating malaria as a problem in the United States and should be used in African countries to do the same. And then reduce its use or eliminate it once the malaria problem is solved. But we digress. It is now estimated that there are approximately 10,000 nesting pairs of bald eagles, including at least one pair in each of the 48 contiguous states. This compares to only 417 such pairs in 1963. The eagle's nesting habitat will still be protected.