================================================= EREN NETWORK NEWS -- August 7, 2002 A weekly newsletter from the U.S. Department of Energy's (DOE) Energy Efficiency and Renewable Energy Network (EREN). <http://www.eren.doe.gov/> =================================================
Featuring: *News and Events Proposed Federal Rules for Power Markets to Help Renewables Government, Private Organizations Push Grid Interconnection States and Cities Launch Renewable and Efficiency Programs DOE Releases Energy Design Guidelines for Schools NREL Updates Design Software for Energy Efficient Buildings Ethanol Production Increases; USDA Confirms Energy Benefit San Diego Wins U.S. Competition for its Regional Energy Plan *Site News Hawaii Natural Energy Institute *Energy Facts and Tips Manufacturing Energy Use Grew Slower Than GDP in the 90s *About this Newsletter Editor's Note: Due to an extended local power outage on Tuesday, this issue of the EREN Network News was delayed by a day. We apologize for the inconvenience. ---------------------------------------------------------------------- NEWS AND EVENTS ---------------------------------------------------------------------- Proposed Federal Rules for Power Markets to Help Renewables New rules for electric power markets were proposed last week by the Federal Energy Regulatory Commission (FERC), the federal agency that regulates the transmission and wholesale sales of electricity in interstate commerce. FERC's proposed "standard market design" aims to achieve fair and open transmission access for power generators and intends to "open doors for demand-response providers and other energy service companies...and enhance opportunities for new technologies such as generation, renewables, efficiency and grid measures." The rules are also intended to prevent abuses of the power market previously carried out by energy traders such as Enron Corporation. Connecting to the electrical grid and selling power on a day-to-day basis are among the many nuts-and-bolts activities required to make renewable energy projects successful. Unfortunately, some electrical grid operators have rules that make such grid connections difficult and set rates that seem to discriminate against intermittent power sources like wind power. That combination is a one-two punch that hampers the development of renewable energy resources in the United States. The new FERC rules include measures intended to eliminate those barriers for renewable energy sources. The new rules are also intended to encourage technologies that reduce energy use. FERC will accept comments on the proposed rules until mid-October, and intends to phase in the plan over the next two years. See the "Standard Market Design Activities" under "Featured Topics" on the FERC Web site at: <http://www.ferc.gov/>. One example of the types of rules that hamper renewable energy development is the case of DOE's Bonneville Power Administration (BPA), which until recently charged a penalty of up to $100 per megawatt-hour for power generators that failed to deliver power on schedule. Since future wind power generation cannot be predicted accurately, the penalty discouraged wind power development in BPA's service territory. In late July, BPA announced a new rate proposal that will remove the penalty for wind power, requiring wind generators to pay only the cost of providing the power from other power sources. The new rate proposal requires approval from FERC. See the July 25th press release on the BPA Web site at: <http://www.bpa.gov/Corporate/KC/home/nreleases/press.cfm>. Government, Private Organizations Push Grid Interconnection While the FERC rules apply to large power generators and wholesale power markets, similar barriers to connecting to the electrical grid exist for homeowners and business owners that wish to generate their own power. Such so-called "distributed generation" sources -- including solar power, small wind turbines, fuel cells, microturbines, and other power technologies -- have the potential to contribute significantly to U.S. energy needs while boosting the reliability and security of our power supplies. Thankfully, a number of government and private organizations have been working at a variety of levels to lower barriers to grid interconnection. In late July, for instance, the National Association of Regulatory Utility Commissioners (NARUC) released a report that includes model procedures and agreements for grid interconnection that could be adopted by each state. DOE funded the report, which intends to catalyze the development of distributed generation policies by states. It provides a model for uniform interconnection standards that are not unduly burdensome or expensive, yet still ensure safety and system reliability. See the NARUC report, in Adobe PDF format only, at: <http://www.naruc.org/Programs/dgia/dgiaip_final.pdf>. >From the utility perspective, distributed generation presents potential safety problems as well as a possible source of degraded power quality. Analyzing the possible impacts of a distributed generation source on a power system is not always straightforward, which is why the Electric Power Research Institute (EPRI) stepped in back in May with software that will help make it easy for utilities. EPRI also established a facility for testing new distributed energy technologies in June. See the May and June announcements by selecting "News Releases" on the EPRI Web site at: <http://www.epri.com/corporate/discover_epri/news/index.html>. California is one of many states encouraging distributed generation. In June, the California Energy Commission (CEC) issued a "Distributed Generation Strategic Plan," which aims to make distributed generation an integral part of the California energy system. See the strategic plan and related documents on the CEC Web site at: <http://www.energy.ca.gov/distgen/strategic/strategic_plan.html>. California also offers an example of how utilities can create barriers to distributed generation: in early June, the Los Angeles Department of Water and Power (LADWP) decided that it needed to enhance its training for electrical workers and update its procedures for connecting solar power systems to its electrical grid. In the meantime, it padlocked any new solar power systems installed through its Solar Power Incentive Program, preventing any use of the electricity generated by the systems. The utility anticipates resolving the situation next week, at which point it will arrange to reconnect the systems. See the LADWP announcement at: <http://www.ladwp.com/whatnew/solaroof/solarnotice.htm>. States and Cities Launch Renewable and Efficiency Programs The states of California and Wisconsin and the cities of Los Angeles and Portland have recently launched new programs to encourage the use of energy efficiency technologies and the installation of renewable energy projects. In California, the California Power Authority (CPA) launched its "Public Leadership Solutions for Energy" (PULSE) program on July 11th. PULSE is a low-interest loan fund for California public agencies installing energy efficiency improvements or clean on-site power generation. The CPA is seeking expressions of interest from public agencies by the end of this month. The authority is also seeking small manufacturers interested in below-market financing for similar types of projects. See the July 11th and 17th press releases on the CPA Web site at: <http://www.capowerauthority.ca.gov/MediaRelease/default.htm>. See also the PULSE program Web page at: <http://www.capowerauthority.ca.gov/financing/PULSE.htm>. In Los Angeles, the Los Angeles Department of Power and Water (LADWP) is offering rebates as high as $500 through the end of this year for customers who purchase Energy Star appliances and energy saving products. The rebates apply to a wide range of products. LADWP is also offering $750,000 in co-funding for projects that demonstrate new, innovative, energy efficiency technologies. Proposals are due August 30th. See the LADWP press releases at: <http://www.ladwp.com/whatnew/dwpnews/072902.htm> and <http://www.ladwp.com/whatnew/dwpnews/080602.htm>. In Portland, the Climate Trust is providing $1 million in funding to improve the energy efficiency of apartments and commercial buildings. Over the next five years, the Portland Office of Sustainable Development will use the Climate Trust funding to work with the owners of over 12,000 apartment units and about 40 commercial buildings statewide to improve energy efficiency. The funds will come from power plant developers: Oregon legislation requires new power plants to offset their carbon dioxide emissions through payments to the Climate Trust. See the press release, in Adobe PDF format only, on the Portland Office of Sustainable Development Web site at: <http://www.sustainableportland.org/news_climate_trust.pdf>. In Wisconsin, the Focus on Energy Renewable Energy program is offering cash incentives, low-interest loans, and grants for a wide variety of renewable energy projects. For those interested in the renewable energy field, scholarships are also available. See the August 7th press release under the "Renewable Program" heading on the Wisconsin Focus on Energy Web site at: <http://www.wifocusonenergy.com/pressRelease/pressRelease.jsp>. DOE Releases Energy Design Guidelines for Schools DOE released last week six books that complete the "Energy Design Guidelines for High Performance Schools," a series of seven publications that will help school districts save millions of dollars on annual utility bills by designing energy efficient schools compatible with regional climates. The first set of guidelines, released in February, is tailored to hot and dry climates. The new books address the following climates: hot and humid, temperate and humid, cool and humid, cold and humid, cool and dry, and temperate and mixed. DOE also released the "National Best Practices Manual for High Performance Schools," which provides engineering and architectural specifications and other details on how to apply the guidelines. See the DOE press release at: <http://www.energy.gov/HQPress/releases02/julpr/pr02154.htm>. For the full guidelines, see the EnergySmart Schools Web site at: <http://www.eren.doe.gov/energysmartschools/>. NREL Updates Design Software for Energy Efficient Buildings DOE's National Renewable Energy Laboratory (NREL) released an update of its popular Energy-10 software last week. The design program allows architects to watch detailed simulations of how their building will use energy and shows ways to reduce energy consumption. The software simulates a year of hour-by-hour operations and displays annual, monthly, or hour-by-hour energy performance graphs. It also helps analyze the contributions of approaches such as daylighting, passive solar heating, and natural ventilation. The new Energy-10 Version 1.5 contains seven upgrades, including a discounted cash-flow evaluation of a building over its lifetime and a more powerful graphing package. NREL collaborated with DOE's Lawrence Berkeley National Laboratory and the Berkeley Solar Group to produce the update. See the NREL press release at: <http://www.nrel.gov/hot- stuff/press/2002/3102_new_design_tool.html>. The Sustainable Buildings Industry Council (SBIC) distributes the Energy-10 software. See the SBIC Web site at: <http://www.sbicouncil.org/enTen/index.html>. If the newest data from the 2000 U.S. census can be trusted, the United States needs more architects to use Energy-10. According to the census figures, only 47,069 U.S. homes were heated with solar energy in 2000, down from 54,536 homes in 1990. It's unclear, however, if people using passive solar energy may consider their homes to use no fuel for heating. In 1990, the census lists 543,907 homes that used no heating fuel; that rose to 731,506 in 2000. The census also appears to allow only one answer, which might prompt solar home residents to claim their backup heating source. See the 2000 census results on the U.S. Census Bureau Web site at: <http://censtats.census.gov/data/US/01000.pdf>. More data and comparisons to 1990 are available on the Web site at: <http://www.census.gov/Press-Release/www/2002/demoprofiles.html>. and <http://factfinder.census.gov/servlet/BasicFactsServlet>. Ethanol Production Increases; USDA Confirms Energy Benefit The U.S. ethanol industry continues to boom, with record production in June -- up 13 percent from June 2001 -- and lots of new capacity coming online. In the past two weeks, the Renewable Fuels Association (RFA) has announced the completion of two major ethanol plant expansions and one new plant, totaling 67 million gallons per year in new production capacity. The new farmer-owned Adkins Energy plant in Illinois has the capacity to produce 40 million gallons of ethanol per year and includes a co-generation facility to produce steam and electricity for the plant. See the RFA press releases at: <http://www.ethanolrfa.org/press.shtml>. Meanwhile, Philips Petroleum Company has stopped blending MTBE in the gasoline it sells through its 1,500 stations under the "76" brand in California, with the exception of some racing gasoline sold in limited locations. The company continues to provide a small amount of MTBE-blended gasoline to independent gasoline stations. The move makes the "76" brand the first large gasoline retailer selling only ethanol-blended gasoline in the state. See the Philips Petroleum press release at: <http://www.phillips66.com/newsroom/NewsReleases/rel399.html>. The U.S. Department of Agriculture (USDA) also has good news for the ethanol industry: a new USDA study found that ethanol produces 34 percent more energy than is used in growing and harvesting the corn and distilling it into ethanol. Going against claims that ethanol production consumes more energy than it produces, the report concludes that the net energy value of corn ethanol has become positive in recent years due to technological advances in ethanol conversion and increased efficiency in farm production. See the USDA press release at: <http://www.usda.gov/news/releases/2002/08/0322.htm>. DOE continues to develop technologies that will boost the energy yield of ethanol from corn and other feedstocks. DOE's "Bridge to the Corn Ethanol Industry" initiative aims to expand the number of feedstocks used, including making use of corn waste products (called "corn stover"). See the initiative Web site at: <http://www.ott.doe.gov/biofuels/cornbridge.html>. San Diego Wins U.S. Competition for its Regional Energy Plan The San Diego Regional Energy Office won the U.S. Competition for Metropolitan Energy Design in late July. The city's winning energy plan focuses on a region-wide planning process and a first-of-its- kind, comprehensive assessment of the region's gas and electric energy infrastructure. Energy self-reliance was the overall goal for the city's planning process, which began with a focus on conservation and efficiency strategies to reduce the demand for energy, and then addressed the role of distributed generation technologies such as solar and fuel cells. In addition, the plan highlights a variety of clean transportation strategies and energy efficient land use plans to reduce energy-related emissions, curb urban sprawl, and revitalize the region's commercial centers. The Gas Technologies Institute (GTI) sponsored the competition with support from DOE. The energy plan will now serve as the official U.S. entry to the International Competition for Sustainable Urban System Design, competing against entries from seven other countries. The winning plan will be announced at an international conference on sustainable urban design in Tokyo, Japan, in June 2003. See the January 24th press release from GTI at: <http://www.gastechnology.org/pub/news/index.asp>. Feeling left out? There's an upcoming opportunity to learn from the winners: As a culmination of the competition, GTI is also sponsoring the first-ever conference devoted exclusively to sustainable metropolitan energy planning. "Energizing America's Cities: Developing Sustainable Energy Solutions," will be held September 19th and 20th in Chicago. See the GTI conference Web site at: <www.gastechnology.org/energizeamerica>. ---------------------------------------------------------------------- SITE NEWS ---------------------------------------------------------------------- Hawaii Natural Energy Institute <http://www.hnei.hawaii.edu/> Since 1974, the Hawaii Natural Energy Institute has coordinated the research and development (R&D) of the island's renewable energy resources. Its current R&D efforts include thin films, biomass technologies, ocean energy, and electrochemical power systems. ---------------------------------------------------------------------- ENERGY FACTS AND TIPS ---------------------------------------------------------------------- Manufacturing Energy Use Grew Slower Than GDP in the 90s A recent comparison of manufacturing energy consumption surveys from 1994 and 1998 should that U.S. manufacturing energy use grew much slower than the gross domestic product (GDP) over that time period. The comparison, performed by DOE's Energy Information Administration (EIA), found that the GDP for manufacturing grew 5 percent annually during the four-year period, while energy consumption only increased 1.8 percent per year. Even counting the use of energy products as a manufacturing raw material -- such as using oil to make petroleum products or using coal to make steel -- yields a growth rate of only 2.4 percent per year, still much smaller than the GDP growth rate. The report notes that some of the slow growth in energy use is due to a shift from energy-intensive manufacturing to less energy- intensive high-tech industries. But the report also credits energy- efficiency improvements as a partial cause of the slow growth in energy use, specifically citing industry participation in DOE's Industries of the Future. See the report on the EIA Web site at: <http://eia.doe.gov/emeu/mecs/trends/94compare98.htm>. For more information about Industries of the Future, see the Industrial Technologies Program, part of the reorganized Office of Energy Efficiency and Renewable Energy, on the EREN Web site at: <http://www.eren.doe.gov/industrial.html>. ---------------------------------------------------------------------- ABOUT THIS NEWSLETTER ---------------------------------------------------------------------- You can subscribe to this newsletter using the online form at: <http://www.eren.doe.gov/news/subscribe/>. This Web page also allows you to update your email address or unsubscribe to this newsletter. The Energy Efficiency and Renewable Energy Network (EREN) home page is located at <http://www.eren.doe.gov/>. If you have questions or comments about this newsletter, please contact the editor, Kevin Eber, at [EMAIL PROTECTED] ------------------------ Yahoo! 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