Weekly Clean Energy Roundup:November 23, 2005

News and Events

• DOE to Set Schedules for Appliance Standards by January 2006
• DOE, ASE Provide Information on Energy Efficiency Tax Credits
• Ford Begins Full-Scale Production of Mercury Mariner Hybrid
• Ormat Commissions 20-Megawatt Geothermal Power Plant in Nevada
• Federal Agencies Publish New Hydropower Licensing Rules
• New Wave Energy Prototypes Deployed in Hawaii and New Jersey

DOE to Set Schedules for Appliance Standards by January 2006

DOE announced last week that it will set schedules for all appliance rulemaking activities no later than January 31st, 2006. DOE held a public meeting on November 15th to invite comments on standards scheduling issues, and will develop its schedule after considering those comments. As required by the Energy Policy Act of 2005 (EPACT 2005), DOE’s plan and rulemaking schedules will be reported to Congress by February 8th, 2006. See the DOE press release.

On October 18th, DOE issued a final rule to codify 15 new appliance standards prescribed by EPACT 2005. Currently, DOE is working on another “en masse” rulemaking to clarify and codify the test procedures specified by EPACT 2005. DOE is also continuing progress on previous high-priority rulemakings, including new standards for distribution transformers, residential furnaces, and boilers. The rulemakings are managed by the Appliances and Commercial Equipment Standards Program, part of the DOE Office of Energy Efficiency and Renewable Energy.

DOE, ASE Provide Information on Energy Efficiency Tax Credits

DOE and the Alliance to Save Energy (ASE) have compiled Web-based information on how consumers can reduce their federal income taxes in 2006 and 2007 by making their homes more energy efficient and purchasing fuel-efficient vehicles. Under the Energy Policy Act of 2005, consumers can save up to $500 in taxes in 2006 and 2007 by installing certain energy-efficiency upgrades to existing homes. In addition, consumers and businesses can save up to $3,400 on taxes by buying energy-efficient hybrid-electric or diesel vehicles. Although the Internal Revenue Service (IRS) has not yet issued specific guidance for consumers on how to claim the income tax credits, the ASE Web pages offer the latest information based on the new energy law. The Web pages will be updated on a continuing basis as the IRS makes new details available. See the ASE press release and Web page.

DOE and ASE are also part of the Tax Incentives Assistance Project (TIAP), which has launched a separate Web site to give consumers and businesses additional information about tax incentives for energy efficiency products and technologies. TIAP is sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field. See the ASE press release and the TIAP Web site.

States may also offer tax incentives and funds for energy efficiency improvements, which can usually be combined with federal tax credits to yield significant savings. ASE’s new State Energy Efficiency Index can help consumers and businesses find out about the energy efficiency policies in their state. In addition to tax credits and funds, the site lists appliance standards, building codes, transportation initiatives, other relevant legislation, and cap and trade programs for air emissions. See the ASE’s State Energy Efficiency Index.

Ford Begins Full-Scale Production of Mercury Mariner Hybrid

Ford Motor Company announced last week that it has started full-scale production of the Mercury Mariner Hybrid at its Kansas City Assembly Plant in Missouri. Initial production started in October, and the vehicles are starting to arrive in dealer showrooms, according to Ford. The Kansas City plant now produces two hybrid vehicles: the Ford Escape Hybrid and the Mercury Mariner Hybrid. The plant accommodates the installation of the hybrid components?including a temperature management unit, electric battery pack, in-dash electrical outlet, regenerative braking system, power cables, electronic power assist steering, DC-to-DC converter, Atkinson-cycle engine, and an electronically controlled continuously variable transmission?at normal production line speed. See the Ford press release.

According to the Mercury Mariner Hybrid Web site, Ford is offering the 2006 model at a manufacturer’s suggested retail price (MSRP) of $29,840, about $4,200 more than a four-wheel-drive Mercury Mariner with similar options. The hybrid version achieves 50 percent better fuel economy than the standard version in city driving?33 miles per gallon (mpg) versus 22 mpg?and 11.5 percent better fuel economy in highway driving (29 mpg vs. 26 mpg). That’s a 30 percent improvement overall, based on combined city and highway fuel economies (31.1 mpg vs. 23.6 mpg).

The Internal Revenue Service (IRS) announced in early November that Ford’s two hybrid vehicles are eligible for a federal tax deduction of up to $2,000. The deduction also applies to hybrids manufactured by Lexus, Toyota, and Honda. See the IRS press release and list of eligible vehicles.

Ormat Commissions 20-Megawatt Geothermal Power Plant in Nevada

Only eight months after breaking ground, Ormat Nevada Inc. has commissioned a new 20-megawatt geothermal power plant in Nevada. According to Ormat, the plant is the first geothermal facility built in the state under Nevada’s renewable portfolio standard (RPS) legislation, which set minimum requirements for the generation of electricity from renewable energy sources. See the Ormat press release.

Another company working to develop Nevada’s geothermal sources is Nevada Geothermal Power, Inc. The company has been drilling geothermal wells at its site in Pumpernickel Valley, about 30 miles east of Winnemucca in north-central Nevada. As of last week, the company had completed four wells with partial funding from DOE. Although the hottest well produced temperatures of only 178 degrees Fahrenheit, the company plans to extend that well deeper into the geothermal resource next year. The company is also negotiating with Nevada utilities on a power contract for its proposed 30-megawatt Blue Mountain Geothermal Project, to be located west of Winnemucca. The company is seeking permits to drill seven production wells at the site. See the November 2nd and November 15th press releases from Nevada Geothermal Power.

Renewable energy goals are also driving a new $200 million project to boost power transmission from California’s Imperial Valley to Los Angeles. The “Green Path Project” will upgrade existing transmission lines and create new interconnection points, allowing greater access to geothermal energy and other renewable energy sources. According to the Los Angeles Department of Water and Power (LADWP), the project will benefit residents and businesses in Los Angeles, Imperial, San Diego, and Riverside Counties. See the LADWP press release.

Federal Agencies Publish New Hydropower Licensing Rules

The departments of the Interior, Commerce, and Agriculture announced last week new Interim Final Rules for licensing hydropower projects while protecting threatened and endangered fish species, water quality, and federal and tribal resources. The rules are mandated by the Energy Policy Act of 2005 (EPACT 2005) and mark the first time that the three departments have established joint procedures for dispute resolution regarding hydropower licensing. The new licensing process remains open to license applicants and other parties, including tribes, states, other governmental units, and nongovernmental organizations, such as environmental groups.

The rules enable hydropower license applicants and other parties to request trial-type hearings on disputed issues of material fact, such as whether fish were historically present in a river, during which the parties will be able to present evidence and question witnesses. The rules also allow applicants and other parties to submit alternative conditions or prescriptions for consideration by the respective federal departments, which will accept them unless the federal department makes specific findings as to why they cannot. For instance, a utility applicant might propose ways to lower its costs while still protecting critical resources.

As mandated by EPACT 2005, the new rules are now in effect and apply to all current and future license proceedings. They were published in the Federal Register on November 17th, and the public will have 60 days to review and submit comments, which could result in revised Final Rules. See the press release from the U.S. Department of Interior and see the published rules on the U.S. Environmental Protection Agency Web site.

New Wave Energy Prototypes Deployed in Hawaii and New Jersey

Ocean Power Technologies, Inc. (OPT) announced last week that it has deployed its 40-kilowatt PowerBuoy wave energy converters off the coasts of both Hawaii and New Jersey. The Hawaii project is located approximately 0.6 miles off the coast of Oahu, where the ocean depth is about 100 feet. Installed under contract with the U.S. Navy, the device will be monitored in support of a proposed wave energy station. The New Jersey project was installed under a contract with the New Jersey Board of Public Utilities, in support of a proposed megawatt-scale wave energy plant. The PowerBuoy technology employs the bobbing motion of a buoy to drive an electrical generator. See the OPT press release (PDF 95 KB) and Web site.

A company in Australia is also claiming success with its wave energy device. Energetech announced in early November that a sea trial of its device produced 20 percent more power than expected. Energetech uses a “floating water column,” a floating device with an enclosed air space. When waves pass the device, the rising and falling water level drives air out and then back into the airspace, driving a turbine to produce power. See the Energetech press release (PDF 61 KB), report (PDF 107 KB), and Web site.

++++