A new section has been introduced to the US Senate’s energy bill that would provide loan guarantees to companies that build new “clean energy” projects.
Written by Sen Pete Domenici (R-NM), Congress’ top nuclear power advocate, and Sen Jeff Bingaman (D-NM), one of its biggest renewable energy supporters, it would establish an Energy Loan Guarantee Fund to aid carbon capture and sequestration projects, coal gasification and advanced nuclear plants, renewable energy facilities, and efficient electric transmission and distribution technologies.
In another development, the Senate Energy Committee adopted an amendment to the energy bill which establishes a renewable fuels standard (RFS) of 8 billion gallons by 2012. Offered by Sens. Jim Talent (R-MO), Tim Johnson (D-SD), Byron Dorgan (D-ND) and Ken Salazar (D-CO), the amendment passed on a strong, bipartisan voice vote.
The amendment establishes an RFS that begins at 4 billion gallons in 2006 and increases to 8 billion gallons in 2012. Senator Maria Cantwell (D-WA) added an amendment to count each gallon of cellulosic ethanol as 2.5 gallons toward meeting the RFS. In addition, she inserted a provision to set aside up to 250 million gallons of RFS demand for cellulosic ethanol beginning in 2013.
Under the program, if ethanol use during the summer or winter season falls below 35% of the total RFS, the Department of Energy would promulgate regulations to create a seasonal floor at 35% of total use. Senator Diane Feinstein (D-CA) added an amendment that would exempt California from any future seasonal requirement. However, her amendment does not reduce the overall RFS or the annual RFS requirement for any entity.
And Senators Blanche Lincoln (D-AR) and Jim Talent (R-MO) introduced a Senate stand-alone bill to extend the biodiesel federal excise tax credit to 2010 (The existing incentive expires in 2006).
Reps. Kenny Hulshof (R-MO) and Earl Pomeroy (D-ND) are introducing a House version of the bill this week.
“Agri-biodiesel” fuels such as soybean oil receive a penny per percentage point of biodiesel blended with petroleum diesel, while other sources such as recycled cooking oil receive a half-penny.
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Secretary of Energy Bodman announced $64 million in research and development projects to make hydrogen fuel cell vehicles and refueling stations available, practical and affordable for American consumers by 2020.
70 hydrogen research projects have been selected to focus on fundamental science and enable revolutionary breakthroughs in hydrogen production, and storage in addition to new fuel cell technologies. Recipients include academic institutions, industry, and national laboratories..
The following projects address the five technical focus areas identified during the Department of Energy’s May, 2004 workshop on “Basic Research Needs for the Hydrogen Economy”:
Novel Materials for Hydrogen Storage (17 projects, $19.8 million over three years): On-board hydrogen storage has been identified as a key technology. Research projects include complex hydrides; nanostructured and novel materials; theory, modeling, and simulation; and state-of-the-art analytical and characterization tools to develop novel storage materials and methods.
Membranes for Separation, Purification, and Ion Transport (16 projects, $12.3 million over three years): Novel membranes are needed to selectively transport atomic, molecular, or ionic hydrogen and oxygen for hydrogen production and fuel cell applications. Research addresses integrated nanoscale architectures; fuel cell membranes; and theory, modeling, and simulation of membranes and fuel cells.
Catalyst Design at the Nanoscale (18 projects, $15.8 million over three years): Catalysts convert solar energy to chemical energy, produce hydrogen from water or carbon-containing fuels such as coal and biomass, increase efficiency in hydrogen storage. Research areas include innovative synthetic techniques; novel characterization techniques; and theory, modeling, and simulation of catalytic pathways.
Solar Hydrogen Production (13 projects, $10 million over three years): Conversion of sunlight to hydrogen by splitting water is a major enabling technology. Projects address nanoscale structures; organic semiconductors and other high performance materials; and theory, modeling, and simulation of photochemical processes.
Bio-inspired Materials and Processes (6 projects, $7 million over three years): esearch includes enzyme catalysis; bio-hybrid energy coupled systems; and theory, modeling, and nanostructure design.
In another development, Secretary of Energy Samuel Bodman and Agriculture Secretary Mike Johanns announced a Memorandum of Understanding (MOU) between the Department of Energy (DOE) and Department of Agriculture (USDA) to develop more cost-effective production of hydrogen from biomass resources, as part of the $1.2 billion Hydrogen Fuel Initiative.
DOE and USDA experts will meet regularly to share information on technologies and activities related to reducing the cost of chemically converting biomass to hydrogen.
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A bipartisan amendment to the energy bill was approoved in the Senate Energy & Natural Resources Committee to improve the licensing process for the nation’s 1,600 non-federal hydropower projects.
It was offered by Senator Larry Craig (R-ID) and was adopted by a unanimous voice vote. Committee Chairman Pete V. Domenici (R-NM) and Senators Gordon Smith (R-OR), Maria Cantwell (D-WA) and Dianne Feinstein (D-CA) cosponsored the amendment.
The provisions allow a hydropower project licensee or any other party to a licensing proceeding to offer cost or power-saving alternatives to the mandatory operating conditions.
If an agency determines the proposed alternatives meet the existing statutory requirements for environmental and resource protection, and will result in significant cost or power savings, the alternatives will be accepted by the federal agency.
An agency must document that it gave “equal consideration” to the effects of the conditions adopted and alternatives rejected on energy supply, distribution, cost, flood control, navigation, water supply, air quality and other aspects of environmental quality.
Over half of the U.S. hydropower capacity – nearly 300 projects with over 30,000 MW of capacity in 44 states – is up for renewal by 2018.