=================================================
EREN NETWORK NEWS -- June 19, 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
           NAFTA Commission Calls for Carbon Trading, Renewable Energy
           DOE Aims to Buy Nearly 5 Percent Green Power by 2005
           BLM Finds Renewable Energy Potential in 11 Western States
           Shell to Develop Multi-Megawatt Fuel Cells for Oil Platforms
           EPA Launches Energy Star Rating for Hotels
           Successful Test of Solar-Grade Silicon Production Process
           Wind Energy, Cogeneration Developer Files for Bankruptcy

*Energy Facts and Tips
           U.S. Struggles to Upgrade its Electrical Transmission System

*About this Newsletter


----------------------------------------------------------------------
NEWS AND EVENTS
----------------------------------------------------------------------
NAFTA Commission Calls for Carbon Trading, Renewable Energy

The countries of North America should develop a carbon emissions
trading system and promote renewable energy and energy efficiency,
according to a report issued on Monday by the Commission for
Environmental Cooperation (CEC). The CEC was established by Canada,
Mexico and the United States to build cooperation among the partners
in implementing the environmental accords included in the North
American Free Trade Agreement (NAFTA). The new report,
"Environmental Challenges and Opportunities of the Evolving North
American Electricity Market," was prepared for the CEC by an expert
advisory board.

The board specifically recommends forming a North American fund to
promote the adoption of best available emission control
technologies, energy efficiency measures, and energy conservation
within the NAFTA countries. It also urges the NAFTA countries to
promote the development and use of renewable energy through
increased market-based incentives and funding. And in addition to a
carbon emissions trading system, the board recommends continent-wide
trading systems for emissions of sulfur dioxide and nitrogen
dioxides. See the CEC press release at:
<http://www.cec.org/news/details/index.cfm?ID=2483>.

See the full report, as well as nine background papers (including
one on renewable energy) and comments from the three governments, on
the CEC Web site at:
<http://www.cec.org/pubs_docs/documents/index.cfm?ID=842>.

The United States is committed to expanding energy trading with its
North American neighbors and to strengthening North American energy
markets. The North American Energy Working Group, formed to help
meet these commitments, issued its first report last week. "North
America -- The Energy Picture" presents an overview of the energy
situation on the continent. See the DOE press release, with a link
to the full report, at:
<http://www.energy.gov/HQPress/releases02/junpr/pr02101.htm>.

A North American trading system for carbon emissions would represent
a significant step toward addressing climate change issues and (as
noted in the CEC report) would promote energy efficiency and
renewable energy. Although President Bush has rejected the Kyoto
Protocol, which would have mandated some form of carbon emissions
trading, the United States is taking action at the federal and state
levels to address climate change. According to the Pew Center on
Global Climate Change, the business community is also doing its
part. See the June 11th report, "Climate Change Activities in the
United States," on the Pew Center's Web site at:
<http://www.pewclimate.org/projects/us_activities2.cfm>.


DOE Aims to Buy Nearly 5 Percent Green Power by 2005

DOE intends to draw on renewable energy sources to provide at least
140 million kilowatt-hours of electricity for the department by
2005, Energy Secretary Spencer Abraham announced last week. That
represents nearly 5 percent of DOE's electricity use, which totaled
about 3 billion kilowatt-hours in 1999.

DOE will also help people throughout the West buy green power by
offering a "green tags" program through its Western Area Power
Administration, which markets federal hydropower in 15 western
states. The program will allow Western's customers to support
renewable energy projects by buying their environmental attributes,
while the actual power from the projects will be sold into the
traditional power market.

Speaking at the 13th Annual Energy Efficiency Forum at the National
Press Club in Washington, D.C., Secretary Abraham noted that DOE
used 43.5 percent less energy in 2002 than it did in 1985, and
expects to further increase its energy efficiency by 2 percent per
year in the years ahead.

Secretary Abraham noted that high-efficiency lighting using solid-
state light-emitting diodes, or LEDs, shows significant potential
for future energy savings. To advance LED lighting technology,
Secretary Abraham announced that DOE will soon formalize a new
partnership with industry for the development of next-generation
solid-state lighting.

See Secretary Abraham's June 12th speech on the DOE Web site at:
<http://www.energy.gov/HQDocs/speeches/hqspeeches.html>.

Do you know any leaders in the green power field? Consider
nominating them for the Green Power Leadership Award, sponsored by
DOE, the U.S. Environmental Protection Agency (EPA), and the Center
for Resource Solutions. Nominations are due June 28th. See the EPA
Web site at:
<http://www.epa.gov/greenpower/gpleadership/gpleadership.htm>.


BLM Finds Renewable Energy Potential in 11 Western States

The Bureau of Land Management (BLM) recently issued its draft report
on the renewable energy resource potential for power production on
federal lands. The report notes 64 public land areas in 11 western
states that have a high potential for power production from one or
more renewable energy sources, and of those, 19 land areas in
6 western states could draw on three or more renewable energy
sources.

The report, prepared in partnership with DOE's National Renewable
Energy Laboratory, examined the potential for power production using
concentrating solar power, photovoltaic solar power, biomass power,
wind energy, and geothermal energy. As part of the report, BLM
identified 31 "top-pick" geothermal energy sites located in 17 land
areas in five western states.

The BLM released the report for public comment in May, and comments
are due by July 12th. See the draft report on the BLM Web site at:
<http://www.blm.gov/nhp/spotlight/energy/>.


Shell to Develop Multi-Megawatt Fuel Cells for Oil Platforms

The Royal Dutch/Shell Group of Companies has launched a project in
Norway to explore multi-megawatt fuel cells. Shell is partnering
with Aker Kvaerner and Statkraft on the $125 million project, which
is expected to be finished in 2010. Shell intends to develop fuel
cells as large as 10 to 20 megawatts in capacity, which could
provide the power needs of offshore oil or gas platforms. See the
June 10th press release on the Shell Web site at:
<http://www2.shell.com/home/Framework?siteId=media-en>.

While Shell looks to the future, today's fuel cell companies
continue to advance their products. H Power Corporation installed a
4.5-kilowatt fuel cell system at Yellowstone National Park in early
June. The propane-fueled system provides power to ticket kiosks and
an office at the west entrance to the park, and its waste heat will
be used for space heating. H Power recently sold 50 500-watt systems
to Energy Co-Opportunity, an energy services cooperative. See the
H Power press releases at:
<http://www.hpower.com/cgi-bin/pr.cgi?idPressRelease=67> and
<http://www.hpower.com/cgi-bin/pr.cgi?idPressRelease=66>.

Another fuel cell company, Plug Power Inc., announced yesterday that
its 5-kilowatt fuel cell system has been certified for grid
interconnection in California. The Plug Power system is the first
fuel cell system certified by the California Energy Commission. See
the June 18th press release on the Plug Power Web site at:
<http://www.plugpower.com/news/>.


EPA Launches Energy Star Rating for Hotels

The U.S. Environmental Protection Agency (EPA) announced last week
its latest Energy Star product, a rating system for hotels. Hotels
can use Energy Star tools to benchmark their performance on a scale
from 1 to 100. Top-performing hotels can earn the Energy Star label.
In its announcement, the EPA named the Courtyard Indianapolis
Capital, owned by White Lodging Services Corp., and the Sheraton
Boston Hotel, owned by Starwood Hotels and Resorts Worldwide, as the
first two hotels to earn the label. Energy Star is a joint project
of DOE and the EPA. See the EPA press release at:
<http://www.epa.gov/epahome/headline_061202.htm>.

See also the Energy Star for Hospitality Web site at:
<http://yosemite.epa.gov/Estar/business.nsf/webmenus/Hospitality>.


Successful Test of Solar-Grade Silicon Production Process

AstroPower, Inc. announced last week that the initial tests of its
proprietary purification process to produce solar-grade silicon were
successful. The company has entered into a joint development
agreement with Elkem to convert quartz into silicon, providing a
dedicated source of silicon at the purity level needed for the
production of solar cells. The process should help relieve the solar
cell industry of its reliance on scrap silicon from the
semiconductor industry, which has constrained the growth of the
industry. AstroPower expects the new process to reach full
industrial scale in 2005. See the AstroPower press release at:
<http://www.astropower.com/press_releases.htm>.


Wind Energy, Cogeneration Developer Files for Bankruptcy

York Research Corporation, a developer of cogeneration and wind
energy facilities, filed for Chapter 11 bankruptcy early this month.
York developed the 46-turbine Big Spring Windpower Project in Texas
in 1999, a project that earned the company the coveted Powerplant
Award from Power Magazine. Problems began to appear in late October
2001, when the company defaulted on some of its bonds and admitted
to using project income for general corporate purposes, in violation
of the provisions governing the bonds. The company has since been
fighting off bankruptcy filings by its creditors. To see the
June 7th bankruptcy announcement, select "SEC Filings" at:
<http://199.230.26.96/cgi-bin/ir/york/keystat.html>.

See also the York press release page at:
<http://www.prnewswire.com/micro/YORK>.


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ENERGY FACTS AND TIPS
----------------------------------------------------------------------
U.S. Struggles to Upgrade its Electrical Transmission System

The U.S. electrical transmission system -- sometimes described as
the largest machine in the world -- is an engineering marvel,
providing a reasonably reliable source of power, with multiple
backup systems, to the entire lower 48 states. When it works as
planned, it tends to get taken for granted, but when it fails, it
gets people's attention very quickly. One part of the system that
received a lot of attention in the past year is called Path 15, a
bottleneck in the transmission of power between northern and
southern California. That bottleneck is partly to blame for rolling
blackouts in northern California in early 2001, and that is why DOE
was pleased when the Federal Energy Regulatory Commission approved a
plan last week for a project to relieve that bottleneck. See the DOE
press release at:
<http://www.energy.gov/HQPress/releases02/junpr/pr02103.htm>.

Unfortunately, the Path 15 bottleneck is just one of many
modernization projects needed in the country's transmission system.
In May, DOE released a report containing 51 recommendations for
modernizing the U.S. transmission system. Many of the
recommendations aim to encourage investment in the system and to
help prevent bottlenecks. See the DOE press release at:
<http://www.energy.gov/HQPress/releases02/maypr/pr02080.htm>.

Long Island has the misfortune of being one of the geographic areas
now facing transmission constraints. Two of the island's major
transmission lines failed recently, and although one is back in
service, the other is still undergoing repairs. That cuts the Long
Island Power Authority's ability to import electrical power by about
500 megawatts. Meanwhile, a new cable running across Long Island
Sound may not be available until late July. To cope with the
problem, the power authority announced yesterday that it will
install 200 megawatts of temporary emergency stand-by generators for
use as a last resort to keep Long Island's lights on. See the Long
Island Power Authority (LIPA) press release at:
<http://www.lipower.org/newscenter/pr/2002/june18_02_a.html>.

Wind power may eventually help out Long Island, if supporters of
the Long Island Offshore Wind Initiative are successful. The
initiative is holding a symposium in Smithtown on June 25th. See the
initiative's Web site at: <http://www.lioffshorewindenergy.org/>.


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ABOUT THIS NEWSLETTER
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If you have questions or comments about this
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