Bush Adminstration Halts Petroleum Reserve Purchases

The purchases of crude oil for the Strategic Petroleum Reserve (SPR) were halted on May 16 by the U.S. Department of Energy. About 13 million barrels of crudewould have been delivered to the underground salt caverns in Louisiana and Texas between July and December. It has been speculated that buying 76,000 barrels a day of crude oil for the reserve was needlessly adding to upward pressure on prices. The reserve currently has 703 million barrels, or enough to replace U.S. oil imports for 52 days. The SPR capacity is 727 million barrels, but the Energy Policy Act of 2005 authorized the president to expand it to 1 billion barrels.

Global Nuclear Power Expansion Needs GNEP To Be Successful

The Washington Post published a disturbing article today that basically said the Middle East wants to 'go nuclear' for two reasons: 1) to hedge against a nuclear armed Iran, and 2) to sell oil instead of burning it in electricity generating power plants. Such implications for utilizing commercial nuclear power plants as a 'technology-driving' practice for building weapons facilities hurts the case for providing electricity by using these reactors. This is why the Global Nuclear Energy Partnership (GNEP) program is needed to provide adequate confidence by Israel, the United States, Russia, China and others that commercial development of nuclear power will be secure from proliferation of weapons programs to unstable states. GNEP provides a frameworkd for nations with secure nuclear capabilities to provide potential partner nations with nuclear facilities, fresh fuel and recovery of used fuel for recycling.

The article states that several countries in the Middle East are interested in building commercial nuclear reactors: Iran, Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain and Yemen. In Africa the list includes: Egypt, Nigeria, Libya, Algeria, Morocco and the kingdom of Jordan. Turkey is also interested in developing commercial nuclear power. Canada and Australia are even expressing interest in building enrichment facilities. Unfortunately, the article pointed out several precedents for commercial programs leading to weapons programs:

"Both India and Pakistan built nuclear devices using an industrial infrastructure built ostensibly for nuclear power. Taiwan and South Korea conducted weapons research under cover of civil power programs but halted the work after being confronted by the United States."

We understand that countries might find the GNEP program to represent a paternalistic intrusion into their sovereignty, but they must understand that the comfort of GNEP nations would be an excellent hedge against the possible unexpected destruction of facilities under construction. In particular, it would send the appropriate signal to Israel that its safety is secure within the context of not only global commercial nuclear power expansion, but particularly among Middle East countries.

Washington Suburban Sanitary Commission Goes Wind Power

The Washington Suburban Sanitary Commission (WSSC) has announced that it will buy one-third of its electricity from a Pennsylvania Wind Farm under a 10 year contract. The deal was brokered by Constellation Energy. WSSC provides drinking water to 1.8 million customers in the Washington, DC Metropolitan Area.

EPA Proposes Stronger Air Quality Standards for Lead

EPA is revising the nation's air quality standards for lead for the first time in 30 years, proposing to dramatically strengthen the standards to reflect the latest science on lead and health. The proposal recommends tightening the primary standard to protect public health by 80 to 93 percent. It would revise the existing standardof 1.5 micrograms per cubic meter of air to a level within the range of0.10 to 0.30 micrograms per cubic meter.

The agency is taking comment on alternative levels within a range from less than 0.10 to 0.50 micrograms per cubic meter. Since 1980, emissions of lead to the air have dropped nearly 98 percent nationwide, largely the result of the agency's phaseout of lead in gasoline. And average levels of lead in the air are far below the level of the 1978 standard. Lead in the air today comes from a variety of sources, including smelters, iron and steel foundries, and general aviation gasoline. About 1,300 tons of lead are emitted to the air each year, according to EPA's most recent estimates. Lead that is emitted into the air can be inhaled or, after it settles out of the air, can be ingested. Ingestion is the main route of human exposure. Once in the body, lead is rapidly absorbed into the bloodstream and can affect many organ systems.

More than 6,000 studies since 1990 have examined the effects of lead on health and the environment. Evidence from health studies indicates that lead in the blood can cause harm at much lower levels than previously understood. Exposure to lead is associated with a broad range of health effects, including harm to the central nervous system, cardiovascular system, kidneys and immune system. Children are particularly vulnerable: Exposures to low levels of lead early in life have been linked to effects on IQ, learning, memory and behavior. Lead also can cause toxic effects in plants and can impair reproduction and growth in birds, mammals and other organisms. EPA is proposing that the secondary standard, to protect the environment, be identical to the primary standard. EPA will accept public comment for 60 days after the proposal ispublished in the Federal Register. The agency will hold two publichearings on June 12, 2008: one in St. Louis and one in Baltimore. EPAmust issue a final decision on the lead standard by Sept. 15, 2008. Details about the proposal and public hearing information: http://www.epa.gov/air/lead

Emission Controls

Volatile organic compounds (VOC) and particulate matter (PM) can be controlled using two technologies: 1) Wet Electrostatic Precipitator (WESP) and 2) Regenerative Thermal Oxidizer. The WESP reduces the concentration of particulate matter in the gas stream to levls that are both acceptable for discharge to the atmosphere and suiable for treatment in downstream VOC control equipment. The RTO destroys VOCs with high-temperature combustion(1,500 degrees F).

With respect to air emission control, gases must be cleaned in order to meet local, state and federal environmental requirements. Treatment of these gases with the combined WESP/RTO system, right, results in a gas stream that exceeds all modern standards for the emission of particulate matter VOCs with a minimum of energy and maximum operational reliability

Operation of the wet device starts by spray quenching the gas stream to the wet-bulb temperature with recycled water. The quenching process serves two functions: first, the sprays serve to remove a large portion of the coarse particles that come from the dryer, and second, the resulting temperature reduction causes heavy organic vapors to condense into particles. After quenching, the gas stream passes upward into an array of discharge and collecting electrodes. Here, the electrostatic action takes over to charge, precipitate and remove over 90 percent of the remaining particles. Exiting the top, the clean gas is now suitable for treatment in the RTO.

The RTO system reduces the VOCs (including HAPs) by high-temperature combustion. Given the large volumes of gas to be treated, simply burning the gas stream at the required 1500˚F (as in a simple, direct-fired oxidizer) [is] economically unfeasible. Therefore, alternative energy-saving techniques [should be] employed. RTOs work by alternating the incoming gas stream through heat recovery beds prior to exposure to a 1500˚F combustion zone. These heat-recovery beds are filled with ceramic material that absorbs heat from the combustion chamber. Keeping the heat in these beds greatly minimizes the total energy expended. Typically, the temperatures rise from inlet to outlet of an RTO system is in the range of 75˚F, a far cry from the 1500˚F rise that would by required by a simple direct-fired oxidizer. Yet, the gas stream is exposed to the 1500˚F required for excellent VOC and HAP destruction.

(Source: Pollution Engineering magazine: "The Search for Economical Emission Controls")

Lieberman-Warner America's Climate Security Act of 2007

America's Climate Security Act (S. 2191), cosponsored by Senators Joe Lieberberman and John Warner, calls for a cap on greenhouse gas (GHG) emissions from most of the U.S. economy beginning in 2012, with a reduction of approximately 63 percent by 2050. Lieberman-Warner establishes a cap-and-trade system and proposes an initial auction of 26 percent of allowances in 2012, moving to an auction of almost 70 percent of the allowances by 2031. An offset provision in Lieberman-Warner allows an entity to meet up to 15 percent of its compliance obligations with specified domestic offsets.

Highlights of the Lieberman-Warner Bill:

[1] Emission allowances will begin in 2012 with a declining cap on GHGs to 2030. A GHG registry and a GHG emission allowance transfer system will be established for "covered facilities." Facilities in the electric power and industrial sectors are "covered" as are facilities that produce or import petroleum or coal-based transportation fuel or chemicals.

[2] Emission allowances will initially be given to load-serving entities that deliver electricity to retail consumers. An "Emission Allowance Account" will also be provided for covered facilities in the electric power and industrial sectors.

[3] A "Climate Change Credit Corporation" will auction emission allowances. Auction proceeds will be used for several programs including one for zero- or low-carbon energy technologies and one for advanced coal and sequestration technologies.

[4] Allowances can be traded. A board will oversee the national GHG emission market and can provide cost relief measures if it determines that "the market poses significant harm to the U.S. economy." A domestic offset program will be set up to sequester GHGs in agriculture and forests.

[5] The act also supports carbon capture and sequestration by amending the Safe Drinking Water Act to permit commercial-scale underground injection of CO2 and establishing a task force to study the cost implications of potential federal assumption of liability for closed geological storage sites. The Secretary of Energy will be required to study the feasibility of constructing geological CO2 sequestration facilities and pipelines for the transportation of CO2 for sequestration or enhanced oil recovery.

[6] The SEC will be required to direct securities issuers to inform investors of material risks related to climate change. An interagency group will be set up to determine whether foreign countries have addressed GHGs.

State Regional Greenhouse Gas Initiatives

(Electric Light & Power, Mar, Apr, 2008)

EPA Publishes Annual National Greenhouse Gas Inventory

The U.S. Environmental Protection Agency has released the national greenhouse gas inventory, which finds that overall emissions during 2006 decreased by 1.1 percent from the previous year. The report, Inventory of U.S. Greenhouse Gas Emissionsand Sinks: 1990-2006, is the latest in an annual set of reports that the U.S submits to the Secretariat of the United Nations Framework Convention on Climate Change, which sets an overall framework for intergovernmental efforts to tackle the challenge posed by climatechange. Each year since 1993, EPA’s experts have built a comprehensive inventory of U.S. greenhouse gas emissions. Our understanding of emission sources is paramount to combating climate change.

Total emissions of the six main greenhouse gases in 2006 were equivalent to 7,054.2 million metric tons of carbon dioxide. These gases include:

1) carbon dioxide,
2) methane,
3) nitrous oxide,
4) hydrofluorocarbons,
5) perfluorocarbons and
6) sulfur hexafluoride.

The report indicates thatoverall emissions have grown by 14.7 percent from 1990 to 2006, while the U.S. economy has grown by 59 percent over the same period.The decrease in emissions in 2006 was due primarily to a decrease in carbon dioxide emissions associated with fuel and electricity consumption. The following factors were primary contributors to this decrease:

compared to 2005, 2006 had warmer winter conditions, which decreased consumption of heating fuels, as well as cooler summer conditions, which reduced demand for electricity;

restraint on fuel consumption caused by rising fuel prices, primarily in the transportation sector; and

increased use of natural gas and renewables in the electric power sector.

EPA prepares the annual report in collaboration with experts from multiple federal agencies and after gathering comments from a broadrange of stakeholders across the country.The inventory tracks annual greenhouse gas emissions at the nationallevel and presents historical emissions from 1990 to 2006. The inventory also calculates carbon dioxide emissions that are removed from theatmosphere by “sinks,” e.g., through the uptake of carbon by forests,vegetation and soils.Information on the greenhouse gas inventory report

Nikola Tesla and Thomas Edison Made Electricity Useful

Nikola Tesla, left, and Thomas Edison, right, revolutionized American society by developing the first electricity distribution systems. Edison developed and promoted direct current (DC) and Tesla developed and promoted alternating current (AC) and they became rivals in commercializing their respective electrical systems. Tesla won. Unlike DC, AC could be stepped up to very high voltages with transformers, sent over thinner and less expensive wires, and stepped down again at the destination for distribution to users. Thomas Edison failed because he could not practically and economically send DC very far. Nikola Tesla developed and patented much of AC power generation and distribution technology used today.

Electricity

Edison's company established the first investor-owned electric utility in 1882 and his generating station's electrical power distribution system provided 110 volts DC to 59 customers in lower Manhattan. George Westinghouse and Edison became adversaries because of Edison's promotion of direct current for electric power distribution instead of the more easily transmitted AC system invented by Tesla and promoted by Westinghouse. George Westinghouse purchased Teslas patents and profited from them. Even with these patents, the company Edison founded, General Electric, is many times the size of Westinghouse. Telsa fell into relative obscurity, he is rarely mentioned in the history books. Nikola Tesla does not get the kind of recognition he truly deserves, even though he is the creator of polyphase transformers and machinery. Nikola Tesla is the real reason why we use 3-phase distribution.

Edison did not invent the first electric light bulb, but instead invented the first commercially practical incandescent light. Edison patented an electric distrubution system in 1880, which was essential to capitalize on the invention of the electric lamp. Nearly all of Edison's patents were utility patents but the phonograph patent was unprecedented as the first device to record and reproduce sounds. The key to Edison's fortunes was the telegraph. This allowed him to make his early fortune with the stock ticker, the first electricity-based broadcast system. Edison was also granted a patent for the motion picture camera. (Wikipedia: Tesla, Edison) (Madhu Siddalingaiah)

Maryland & Virginia Utilities Get Green Lights

The Virginia State Corporation approved on March 31, 2008 Dominion Virginia Power's plan to build a $1.8 billion 585-megawatt coal-burning power plant in Wise County, Virginia. Dominion has 2.3 million customers in the state. The commission designated the plant as a "conventional coal facility" instead of one that is "carbon capture compatible." The plant must still be approved by the Virginia Air Pollution Control Board. The plant was named "The Virginia City Hybrid Energy Center and the target date for operation is 2012. (The Washington Post)

The Maryland Public Service Commission has found 'no evidence' that Baltimore Gas and Electric and its parent company, Constellation Energy, colluded to charge higher prices in purchasing electricity for 1.1 million customers it served in 2005-06. Since electricity deregulation in 1996 electricity prices have been set in auctions held by utilities, which buy power from unregulated suppliers. The 2005-06 auction was the first since the rate caps that followed deregulation were removed. It resulted in a 72 percent increase in electric bills for BGE customers. Of course the deregulation was flawed because it kept caps on retail rates while releasing caps on wholesale rates. The investigation was to find out whether the auction was rigged because BGE paid much more for power than the cost to produce it and bought most of its electricity from its corporate parent. Hmmmm. (The Washington Post)

Center Promoting Brazil-PG County Sister City Partnership

The Center for Environment, Commerce & Energy (Center) is proposing a Sister City partnership between Pedreira City, located in São Paulo County, Brazil and Prince George's County, located just outside of Washington, D.C. The principle basis for the partnership will be a mentor/protege recycling program and a parallel environmental education program. Secondary partnership activities will include English and Portuguese education and sports. The partnership will promote soccer in Prince George's County and baseball and football in Pedreira. (Complete Program Description)

Prince Georges County Executive Jack Johnson below left and Pedreira Aerial View below right

Pedreira currently produces 25 tons of trash per year and the local population is still unfamiliar with separating trash from reuseable materials. Pedreira City seeks to develop strong recycling and environmental education programs in order for the community to have a program to protect their environment. Some materials previously thrown into the sanitary landfill are now being recycled, but it is not sufficient to reduce the waste. Pedreira City is seeking professionals that can help to organize the collection and reprocessing of recyclable materials, the dissemination educational information to the public and training programs.

The Center will promote this Sister Cities Program between Pedreira City (PC) and Prince George's County (PGC) in order to fulfill our commitment to 'think globally and act locally.' The Center was contacted by a representative of Pedreira's Selective Collection agency and we agreed to work together to promote a Sister City Recycling program between Pedreira City and Prince George's County. Pedreira city is a small city with approximately 40,000 people and many of its inhabitants are ready to work for a better world and environment. Prince George's County has about 900,000 inhabitants.

The Christie Todd Whitman Nuclear Power Conundrum

Christie Todd Whitman, left, seems to be missing in action on the front lines of the fight to renew construction of nuclear power plants. She is the former administrator of the EPA and former governor of New Jersey. She is cochair of a nuclear industry coalition created to promote nuclear power, but we have observed that she is MIA on numerous battle fronts. Maybe the industry is assuming the nuclear renaissance many are 'talking about' will be a walk-over. We think with a very shaky economy and a possible shift in national political leadership combined with increasing plant costs and the monolithic opposition of the entire environmental movement, that an extremely small bench of active individual environmentalist supporters cannot afford to have any players on the backbench. Let's see:

Nuclear Regulatory Commission hearings and meetings: No

Network Television News Programs: No

Major newspaper articles: No

Oyster Creek (New Jersey) License Renewal campaign: No

NEI Nuclear Notes Blog: Rarely

These are just a few of more examples we could cite. Considering the nonexistent environmental activist support for nuclear power, one would think that all troops would be completely engaged in outreach. Only two American environmentalists are actively supporting nuclear power: 1) Whitman and 2) Center President Norris McDonald. Again, Whitman's role seems to be quite limited, particularly compared to her Canadian co-chair. It is probably none of our business but since our outreach arm is fighting hard on the front lines to the extent we can, it is curious to us that Whitman is not utilized more in the numerous activities related to relicensing and pending proposals for new plant licenses. Just wondering.

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Angry About Our Failure To Reprocess Spent Nuclear Fuel

PRESIDENT'S CORNER. By Norris McDonald. For some unknown reason I woke up angry this morning about how our country seems to have gone soft on building state-of-the-art infrastructure. Even the Space Shuttle will be retired in 2010 and we do not have a replacement. But that is not the source of my frustration and anger. My anger originates from our country's slow pace of building new nuclear power plants, snail-like pace in licensing and opening Yucca Mountain and our country's refusal to reprocess spent nuclear fuel. France reprocesses its spent nuclear fuel. I visited their state-of-the-art facility late last year (see photo below). Well later with anger; something must be done and we have been doing it through the Nuclear Fuels Reprocessing Coalition (NFR Coalition). I am the Co-Founder and Co-Chairman of the coalition.

La Hague Nuclear Fuel Reprocessing Facility - Normandy, France

Standing feet above reprocessed nuclear fuel (I'm in the middle)

[Rest of tour party not members of NFR Coalition]

The Nuclear Fuels Reprocessing Coalition was established in 2004 to promote the construction and operation of nuclear fuels reprocessing facilities. NFR promotes reprocessing commercial spent nuclear fuel that is generated by commercial nuclear power plants. Reprocessing dramatically reduces the amount of high-level radioactive waste that would have to be stored in a geologic repository. We also support reprocessing plutonium and highly enriched uranium from nuclear warheads into fuel for use in commercial nuclear power plants.

The NFR Coalition is working to amend the Nuclear Waste Policy Act of 1982 with the Nuclear Waste Management Agency Act of 2008 to establish the United States Nuclear Waste Management Agency to manage all Federal and civilian spent nuclear fuel and high-level radioactive waste management programs currently under the control of the United States Department of Energy; to establish and operate low-level radioactive waste receipt, supplementary segregation, treatment and burial or monitored/retrievable storage facilities on a fee basis; and to promote spent nuclear fuel reprocessing as a viable technology to aid in achieving and maintaining our national security and National Energy Policy goals, and for its potential to significantly reduce the total volume of radioactive waste designated for disposal in a Federal geologic repository.

The importance of our proposal is clearly illustrated by recent events. In 2007 the U.S. Department of the Interior decided to disapprove the Goshute Private Fuels Storage LLC (PFS) lease and the use of public lands for an Intermodal Transfer Facility (ITF) in Utah. The ITF would have been a temporary facility to store spent nuclear fuel rods. The DOI was jointly sued by PFS (a consortium of eight electric utility companies) and the Skull Valley Band of Goshute Indians in the federal court. Utilities are also suing over the delay in opening Yucca Mountain.

The U.S. Court of Claims decided in favor of Xcel Energy (formerly Northern States Power) for the sum of $116.5 million in Xcel's lawsuit against the Department of Energy over the federal government's failure to open the Yucca Mountain nuclear storage facility on time. Northern States Power originally filed the suit in 1998. DOE failed to provide suitable off-site commercial spent nuclear fuel (SNF) disposal to the commercial nuclear utilities per the Nuclear Waste Policy Amendments Act of 1987; yet to date, over $30 billion dollars (including interest) has been paid into the Nuclear Waste Fund by the electric utility ratepayers.

Unfortunately, the projected date for completion of the geologic repository by the DOE to begin emplacement of SNF has recently been revised from 2010 to a new projected date of 2017, while the original Congressionally mandated date for having a geologic repository available was 1998. A fee of 1/10th of one cent (one mil) per kilowatt-hour of electricity generated by each nuclear power plant is paid into the fund. All settlements against the DOE are paid by the Judgement Fund, which is funded by our tax dollars. Understand why I am angry?

Russian Steelmaker Buys Old Bethlehem Steel Site

Severstal, Russia's largest steelmaker, run by billionaire Alexei Mordashov, is purchasing the Sparrows Point steel mill southeast of Baltimore for $810 million, fulfilling an antitrust mandate that Arcelor Mittal divest itself of the Mittal Steel plant. The purchase places Severstal among the five largest U.S. steel producers.

Sparrows Point is the only integrated flat-rolled steel plant on the East Coast and is the only such plant with its own deepwater port. Sparrows Point has a capacity of 3.6 million metric tons of crude steel and shipped 2.3 million metric tons of finished steel products in 2007. Mittal Steel, owned by Indian billionaire Lakshmi Mittal, merged with Luxembourg-based Arcelor in 2006 to form Arcelor Mittal, the world's biggest steel company. It agreed to relinquish the Baltimore plant to resolve Justice Department antitrust concerns.

Bethlehem Steel owned Sparrows Point from the early 1900s until the company declared bankruptcy. In 2003 the plant was purchased by International Steel Group (ISG), which merged with LTV Steel to create the largest U.S. steel producer. Mittal bought ISG for about $4.5 billion in 2004, merging it with his Ispat International and LNM Holdings. Then in 2006, Mittal merged with Arcelor, prompting the divestment. (The Washington Post)

Verizon & AT&T Win Government Airways Auction

The auction for cellphone airways space, overseen by the Federal Communications Commission (FCC), attracted a record $19.6 billion in bids. The top two bidders were the nation's two largest cellphone carriers: Verizon and AT&T. Verizon Wireless, a joint venture between Verizon Communications and the British telecom giant, Vodaphone Group.

Our Carbon Dioxide Reduction (CDR) Program

The Center for Environment, Commerce & Energy (Center) has established a Carbon Dioxide Reduction (CDR) Program to reduce greenhouse gas emissions from vehicles by recruiting companies and individuals to participate in a flexible work schedule that will primarily include telecommuting, but could also utilize other practices and technologies. Total emissions of carbon dioxide in the United States and its territories were 5,795.6 million metric tons in 2002, according to the Energy Information Administration . Carbon dioxide emissions from the transportation sector, at 1,849.7 million metric tons, accounted for 32.3 percent of total U.S. energy-related carbon dioxide emissions in 2002. (EIA)

The Carbon Dioxide Reduction Program is designed to reduce emissions of the primary greenhouse gas from vehicles by promoting the use of broadband telecommuting to take vehicles off of the road, thus eliminating the CO2 that would have otherwise been emitted during the drive to and from work. The Center will work with other companies, institutions and organizations to recruit participants for the program. The Center will partner with a primary partner companies (PCP) that are promoting a broadband-based climate change program to serve as a verification entity for our participant recruiting. The Center will market CDR Program allowances through our Carbon Mercantile Exchange (CMX)

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Verizon Examines Broadband For Climate Change Mitigation

Verizon is examing how broadband can be used to reduce global warming. Broadband is a transmission method where multiple pieces of data are sent simultaneously to increase the effective rate of transmission and can handle a wide range of frequencies that can be divided into channels. Broadband makes it possible to use multiple applications at once, such as email, surfing multiple websites using Windows, Skype webcam and text, editing a blog and uploading videos to YouTube all at the same time. Broadband makes it possible for you to work from home or even run a virtual office from home.

The Verizon Policy Blog has an article by Link Hoewing, Vice President, Internet & Technology Issues, that illustrates the possibilities for the wide adoption and use of broadband as an important tool in addressing major environmental issues like climate change. Mr. Hoewing identifies various studies that describe how broadband can be an effective tool for environmental protection. One study shows how:

"intelligent technologies" that more precisely calibrate energy use; make cars, appliances, buildings, airplane engines, and industrial processes more energy efficient; and assist in reducing the need for energy-intensive travel can significantly cut back on the use of carbon based fuels. Many of the examples in that report rely on broadband and communications networks to produce results.

Another study:

identifies ways in which broadband can reduce or avoid energy use – totaling up to 1 billion tons of greenhouse gas emissions - over the next 10 years.

Hoewing cites other studies that:

point to the positive and significant impacts widespread broadband deployment and use could have as part of the solution to our environmental problems. Indeed, as the strategy for achieving deep reductions in greenhouse gas is developed, it would make little sense to overlook the role of a national and global network that is, even today, changing the way we live, work and play—and how that has fundamentally effected energy usage.

President Bush Speaks At Renewables Energy Conference

Today, President Bush spoke to the Washington International Renewable Energy Conference and discussed the importance of renewable and alternative energy technologies to increasing America's energy security and addressing the long-term challenge of global climate change. The more sources of energy we have, the less influence any one of them, such as oil, has over the United States' security and prosperity. Renewable energies are some of the most promising new sources for energy because they are clean and because their supply can be regenerated. The Washington International Renewable Energy Conference brings together government, civil society, and private sector leaders to address benefits and costs of the global deployment of renewable energy technology.

In December, President Bush signed the Energy Independence and Security Act (EISA) of 2007, which responded to his "Twenty in Ten" challenge in last year's State of the Union Address to improve vehicle fuel economy and increase alternative fuels.

· The Renewable Fuels Mandate will increase the use of renewable fuels by 500 percent – requiring fuel producers to supply at least 36 billion gallons of renewable fuel in the year 2022.
· The Vehicle Fuel Economy Mandate specifies a national mandatory fuel economy standard of 35 miles per gallon by 2020, which will save billions of gallons of fuel and increase efficiency by 40 percent.

Additionally, the Act advances the following efficiencies:

· The Lighting Efficiency Mandate will phase out the use of incandescent light bulbs by 2014, and improve lighting efficiency by more than 70 percent by 2020.
· The Appliance Efficiency Mandate sets over 45 new standards for appliances.
· The Federal Government Operations Mandate will reduce the energy consumption of Federal Government facilities 30 percent by 2015. Additionally, all new Federal buildings will be carbon-neutral by 2030.

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U.S. EPA Launches Multimedia Portal

The U.S. Environmental Protection Agency has launched a new Multimedia Portal, which is its one-stop location for environmental video, audio/podcasts, and photography. The portal also includes interactive features such as “Ask EPA” and the Deputy Administrator's blog, “Flow of the River.” Another feature called"EPA in Action" goes behind-the-scenes; following the diverse jobs performed by the EPA workforce and examines some of the most pressing environmental issues facing our nation today.

Viewing video is integrated into the site using flash player, while photos of events and EPA work will be posted in a series of online galleries. Users may also subscribe to several podcast series or select from a number of individual podcasts featuring EPA experts and senior officials. This new multimedia portal is an important resource for the public, journalists, academia, local governments and the environmentalcommunity. The portal will help increase awareness of important news items through an intuitive, media-rich focus, rather than through traditional electronic print.

Center's Global Warming Safety Program for Elderly

The Center has established an Elderly Allowance Reserve Program (EARP) to address environmental equity concerns related to climate change. Emission trading programs could negatively impact low-income and elderly citizens via higher energy prices. These allowances would come from a special reserve, similar to the current Acid Rain Program Renewable Energy and Conservation Reserve, when the initial allowance allocation is made.

EARP allowances would be awarded to producers, utilities, automakers and others that undertake practices and programs designed to mitigate or prevent price shocks, increase the installation of pollution control equipment, promote community education and enhance health-related activities. Producers utilities and automakers could choose to work with organizations and businesses that conduct energy price equity activities related to climate change mitigation and reductions in emissions of carbon dioxide. The EARP should be included in any global warming or climate change legislation that Congress will consider.

As an alternative to legislation and as an insurance policy in case climate change legislation does not pass, the Center has developed a voluntary EAR Program (EARP) that provides a platform for utilities, automakers and communities to address and influence the energy cost issue. Any utility, automaker or citizen can: sell to, donate or purchase compliance allowances from, the voluntary EARP or otherwise support the EARP. The Center will meet with interested stakeholders to develop EARP projects. The Center will work to develop an emissions trading platform to directly facilitate exchanges. The Center EARP program will leverage allowances and resources to promote elderly energy equity practices and projects.

The Center will alert businesses, mayors, states, elder citizens groups, Congress and the general public about innovative methods for participating in this program, enhancing electricity production, auto emissions reductions and protecting constituent communities. Participation in the EARP will clearly show that a producer, utility or automaker is is willing to include EARP in the emission trading market. Allowances are fully marketable commodities. Once allocated, allowances may be bought, sold, traded, or banked for use in future years. Allowances may not be used for compliance prior to the calendar year for which they are allocated.

Court Strikes Down EPA Clean Air Mercury Rule

The U.S. Court of Appeals for the District of Columbia Circuit ruled that the EPA violated the Clean Air Act by attempting to implement the 2005 Bush administration Clean Air Mercury Rule that would have allowed a cap-and-trade program to reduce mercury emissions at electricity power plants. The court ruling strikes down the rule and means that big coal-burning utilities will have to install expensive mercury-reduction equipment at more of their power plants rather than rely on a fleet-wide trading program.

UPDATE (March 26, 2008): The Bush Administration has appealed the court ruling that struck down the U.S. EPA's mercury cap-and-trade plan. The earlier ruling by a three-judge panel of the D.C. Circuit Court of Appeals found the EPA violated the Clean Air Act when it enacted the mercury rule in 2005.

The Center opposed the Clean Air Mercury Rule because we knew it would lose in court. We supported the Clear Skies Initiative, which failed in Congress that would have mandated the Clean Air Mercury Rule. Without the law, we knew this attempt to implement the failed legislation at the regulatory level would fail. Now it could be years before the EPA can enact new rules on mercury.

The three-judge court unanimously ruled on Feb 8 that the government failed to consider the effect on public health and the environment. Mercury from power plants can contaminate seafood and can damage the developing brains of fetuses and young children. A "cap-and-trade" program allows power plants that fail to meet emission targets to buy credits from plants that did, rather than having to install their own mercury emissions controls. The rule was to go into effect in 2010 and would have required utilities to comply with overall limits that would reduce nationwide emissions by 70 percent by 2018. The nation's 1,100 coal-burning units emit about 48 tons of mercury each year, the largest unregulated U.S. source. The EPA rule vacated by the court would have set the cap at 38 tons per year by 2010 and 15 tons per year in 2018.

Seventeen states argued that the cap-and-trade system would endanger children near some power plants that pollute but use credits to do it legally. The states included New Jersey, California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Mexico, New York, Pennsylvania, Rhode Island, Vermont and Wisconsin. (Reuters) (AP)

Coal & Nuclear Vulnerable To Natural Ga$

The Washington Post and The New York Times had articles on increasing prices for electricity and a retreat on building new coal plants that has us concerned, particularly in a weakening economy. Combine the subprime crisis with increasing energy prices and cautious energy companies and we could really be in a big mess.

The New York Times:

Stymied in their plans to build coal-burning power plants, American utilities are turning to natural gas to meet expected growth in demand, risking a new upward spiral in the price of that fuel. With opposition to coal plants rising across the country the executives see plants fired by natural gas as the only kind that can be constructed quickly and can supply reliable power day and
night.

The Washington Post:

The story behind the electricity price increases begins in the late 1990s, when Virginia, Maryland and the District loosened their controls on the power industry. As in many other states, the idea was to let customers choose among power suppliers, creating competition that would push prices down. Power companies say they have been hit with higher costs, which had to be passed on to customers. The prices of natural gas and coal have increased sharply. And because the region needed to import electricity from other areas, utilities had to pay the power-line equivalent of highway tolls.

Nuclear power plants are now being projected to cost as much as $4 billion and if utilities are bristling at the increased upfront cost of coal plants imagine board room decisions on nuclear plants. Let's hope the nuclear industry can hold on to the subsidies for the first six plants or the nuclear renaissance could stall.

We think the coal, nuclear and natural gas industries are going to need to consolidate, or at least form expanded new consortia to build multiproduct power plants. If $4 billion is going to be spent for a power plant, it should be a nuclear/coal hybrid that produces hydrogen for fuel cells, oxygen for oxycombustion in coal plants that converts CO2 to gasoline via the Fischer-Tropsch method. A scrubber would still be needed for sulfur dioxide, nitrogen oxides and mercury (Selective Catalytic Reducer). The CO2 could be converted onsite or piped to other conversion facilities.

The nuclear part of the plant would be used to produce electricity and hydrogen via electrolysis (or high temperature electrolysis) or the sulfur-iodine cycle that would be used in the Fischer-Tropsch process and piped away to produce fuel cells. The oxygen from the electrolysis process will be piped to the coal part of the plant for use in the firebox. These processes need very high temperatures of about 900 degrees Celsius. (Full Description) And the consortia would need to partner with the natural gas pipeline companies to access their right of ways. The natural gas industry might not have a choice because although gas-fired power plants are cheaper to build, the gas simply is not available. Liquefied natural gas facilites are being rejected all over the U.S. Sounds like a new energy bill to us. Maybe the FutureGen and Nuclear Power 2010 programs should work together to explore the hybrid plant described above.

Federal Government Fiscal Year 2009 Budget Request

Environmental, Energy, Natural Resources & Agriculture

Environmental Protection Agency: $7.14 billion. (FY 2009 EPA Budget in Brief)

Department of Energy: $25 billion (FY 2009 DOE Budget in Brief)

Department of Interior: $10.7 billion (FY 2009 DOI Budget in Brief)

Department of Agriculture: $95 billion (FY 2009 DOA Budget in Brief)

FutureGen Clean Coal Project Cancelled

The Bush administration dropped its support for a $1.8 billion planned 275-megawatt coal-fired plant power plant designed to store greenhouse gases underground, because of ballooning costs. This decision comes about a month after the private partners in the project picked Mattoon, Illinois as the site for the project. Congress appropriated $108 million for the plant that was authorized by the Energy Policy Act of 2005, but the cost of the project has doubled and other technologies could be better. The Center would like to see a conversion plant that converts carbon dioxide into gasoline. FutureGen is one of the most advanced projects for determining whether emissions of carbon dioxide, a greenhouse gas, can be captured from coal-fired plants and stored, or sequestered, underground. The Center will examine whether CO2 to gasoline conversion qualifies for the FutureGen project. By contrast, the FutureGen project is a nonprofit venture that included 13 utilities and coal companies constructing of a plant that would turn coal to gas, strip out and store underground the carbon dioxide that contributes to climate change, and then burn the remaining gas to produce electricity and hydrogen.

The project is a joint venture between a private industry alliance, which would cover 26 percent of the cost and the Department of Energy, which was supposed to cover 74 percent. Half of the nation's electricity is produced by coal-fired plants so dealing with the carbon dioxide for is important for reducing this main greenhouse gas emission that is producing climate change. The cost was first estimated in 2004 at $950 million and the $1.8 billion final cost estimate assumed that construction costs escalate at a 5.2 percent annual rate. DOE has refused to issue a record of decision on the environmental impact statement, which blocks development of the project. DOE has decided to pay the cost of adding carbon capture and storage technology to new or existing coal plants bigger than 300 megawatts. (The Washington Post) (The Washington Post)

Compact Fluorescent Light Bulbs Come From China

China-born Ellis Yan, right, 53, owns Shanghai, China-based TCP Inc, the largest manufacturer of compact fluorescent light (CFL) bulbs sold in the U.S. About 200 million CFL bulbs were sold in 2006 and TCP provided 70% of those bulbs. GE and Sylvania are gearing up to compete with TCP and currently resell TCP bulbs under their names. TCP is currently the main supplier of CFLs to Home Depot and Wal-Mart. TCP has 3,000 employees.

Two big events have helped in the advancement of CFLs. One was the electricity crisis in California in 2001, which led to a huge conservation push that included replacing light bulbs. Second is the Energy Security and Independence Act of 2007, which phases out traditional incandescent light bulbs by 2012. Mercury is a concern in CFLs. About five milligrams of mercury are used in the typical bulb. A tiny amount of mercury is heated until it turns into gas that reacts with other gases to produce light. Mercury is toxic. (The Wall Street Journal, 12/27/07)

European Union Proposing New Global Warming Plan

The European Union plans to establish firm caps on emissions by 27 countries designed to reduce greenhouse gas emissions to 20 % below 1990 levels between 2013 and 2020. The reduction would be increased to 30 % if the United States and China signed binding climate change agreements. Of course this will not happen. This plan will auction 60 percent of the emissions permits initially and all of them by 2020. The previous cap-and-trade system did not auction credits. At least 20 % of E.U. energy has to be derived from renewable sources, including 10 percent from biofuels. The measures are similar to provisions to the Lieberman/Warner cap-and-trade bill, which would mandate a reduction by 2020 of about 20 percent below greenhouse gas emissions in 2005. The E.U. plan must still be approved by the European Parliament.

The Bush administration is hosting a second meeting of large economies this month in Honolulu, Hawaii to discuss initiatives on global warming. The administration also participated in the "Bali Roadmap" meeting organized by the United Nations Convention on Climate Change (UNFCCC) in December 2007 that is negotiating a new, post Kyoto Protocol (ends 2012) climate change agreement by 2009. The Energy Security and Independence Act of 2007 is projected to eliminate 6 billion metric tons of greenhouse gases because it raised auto fuel efficiency to 35 mpg. The U.S. and the E.U. have also proposed to the WTO to eliminate tariff and non-tariff trade barriers to clean technologies and services. The administration is working with Australia, India and China via the Asia-Pacific Partnership to promote technologies to reduce global warming.

Will Small Cars Sell To Save Money, Gasoline & Environment?

Tata Motors of India has introduced its new mini car, the Nano, left. It costs only $2,500. The car was created by Ratan Tata for the Tata Group. The four door vehicle can seat five people.

Mercedes-Benz has the Smart Fortwo micro car, right, which is now available in the United States. You see many of them in Paris already. The question is: Will Americans buy these very small cars in large numbers? (See SmartUSA)

GM Develops Plug-In Fuel Hybrid Electric Battery Vehicle

General Motors has developed the first zero-emission luxury car, the hydrogen- and battery-powered Cadillac concept car designed to run up to 100 miles per hour while emitting only water vapor. It is called the Cadillac Provoq (pronounced "provoke"). GM is now promoting the Chevrolet Volt, a plug-in hybrid and the Provoq. GM wants the Volt to be available by 2010. The Provoq has a 300-mile range.

Virginia Uranium Mining Possible

Walter Coles owns property in Chatham, Virginia in Pittsylvania County where he wants to mine uranium on a 200-acre site. Obviously the state and local residents are afraid that such mining could release radioactive material that could contaminate the area's land, air and source of drinking water. It is being estimated that there is approximately 110 million pounds of uranium located on the site that would be worth about $10 billion at today's uranium prices.

Virginia banned uranium mining in 1982. Virginia Uranium, owned by Mr. Coles is trying to persuade the General Assembly to approve a $1 million study that will explore whether uranium can be safely mined in Virginia. Virginia Uranium has already been granted a state permit to drill 40 holes to examine the material. The two uranium deposits found at the site begin at the ground's surface and run about 800 feet deep. The Center will withhold a decision on this project until the study is completed, but our preliminary assessment is that this does not look like it is a project we can support. (The Washington Post)

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)