Weekly Clean Energy Roundup:November 30, 2005

News and Events

• DOE Web Site Aids Energy Savings in Gulf Coast Reconstruction
• BP to Double its Investment in Renewable Energy
• California Energy Policy Looks to Efficiency and Renewable Energy
• Northeastern States Adopting Greenhouse Gas Rules for Vehicles
• Four Governors Order Their States to Save Energy, Use Biofuels
• Biodiesel Production Expected to Triple in 2005

Site News

Dallas Zero Energy Home

Energy Connections

EIA Report Says Solar Manufacturing Grew Significantly in 2004

News & Events

DOE Web Site Aids Energy Savings in Gulf Coast Reconstruction

DOE launched a Disaster Recovery and Building Reconstruction Web site last week as part of its continuing effort to support hurricane victims in the Gulf Coast. The new Web site encourages cost-effective, durable, and energy-efficient reconstruction in areas devastated by recent hurricanes. It provides resources and information for consumers, builders, contractors, and state and local officials, and also links to a wide range of guidelines, fact sheets, and case studies developed by DOE and other federal agencies and organizations. See the new Disaster Recovery and Building Reconstruction Web site.

DOE is also working closely with Gulf Coast state energy offices and their partners to provide resources, training, and technical assistance. A key component of the states’ recovery efforts is their partnership with the National Association of State Universities Land Grant Colleges (NASULGC) and in-state extension services to provide training workshops on achieving energy efficiency and storm resistance while rebuilding. These workshops will combine NASULGC’s ability to deliver educational programs with DOE’s national network of building scientists, energy analysts, and builder training professionals. The Disaster Recovery and Building Reconstruction Web site will provide information on the workshops as it becomes available. See the DOE press release.

Since the hurricanes, a number of organizations have noted the benefits of energy-efficient, green rebuilding in the afflicted areas of the Gulf Coast. An analysis by ICF Consulting found that a $900 million investment in energy efficiency for rebuilding the 310,353 destroyed homes to Energy Star standards would pay for itself in just 7.5 years. The finding led the company to suggest the Energy Star requirements as a minimum standard. Meanwhile, the U.S. Green Building Council, the Enterprise Foundation, Habitat for Humanity, the Trust for Public Land, and others worked together at the recent Greenbuild Conference and Expo in Atlanta, Georgia, to launch a number of initiatives to help incorporate green building into the Gulf Coast rebuilding plans. See the press releases from ICF Consulting and the U.S. Green Building Council.

BP to Double its Investment in Renewable Energy

BP announced Monday that it plans to double its investment in renewable energy to create a new power business called “BP Alternative Energy.” The new business will manage an investment program in solar, wind, hydrogen, and gas turbines that could amount to $8 billion over the next ten years. In the first phase of that program, BP plans to invest $1.8 billion over the next three years, spread roughly evenly among the four energy technologies. BP currently provides 10 percent of the global market for solar photovoltaic power, with enough manufacturing capacity to produce 100 megawatts of solar devices each year, a capacity that BP intends to double by the end of 2006.

For wind power, BP’s investment will go towards new large wind power facilities, possibly including a 200-megawatt facility in the United States in 2007. BP’s hydrogen investments will go towards a previously announced project in Scotland to generate hydrogen from natural gas, generate power from the hydrogen, and pump leftover carbon dioxide into a depleted oil reservoir. BP Alternative Energy will be based in the United Kingdom and will initially employ about 2,500 people around the world. See the BP press release.

California Energy Policy Looks to Efficiency and Renewable Energy

The latest energy policy report from the California Energy Commission (CEC) places a heavy emphasis on energy efficiency and renewable energy sources. Noting that the development of new renewable resources has been slower than anticipated, the CEC recommends simplifying, streamlining, and expediting the state’s Renewable Portfolio Standard process. The report also says the state needs to focus on repowering aging wind facilities to increase the amount of renewable generation from these prime sites, while addressing the current barriers to integrating intermittent wind resources into the state’s transmission system.

With the need to aggressively bring new generation online, the CEC also recommends new incentives and requirements for greater use of combined heat and power systems. In terms of transportation fuels, the report concludes that California must “vigorously support the rapid development and availability of alternative fuels so that their air quality and petroleum replacement benefits can be realized.” Overall, the report reaffirms the order of priorities set by Governor Schwarzenegger’s Energy Action Plan in meeting the state’s supply needs: energy efficiency first, followed by demand response and renewable energy. See the CEC press release < /A>and the energy policy report.

The CEC has also issued the latest update on its Renewable Energy Program, which passed its seven-year anniversary in June. According to the report, the New Renewables Facilities Program has resulted in 47 projects that are currently online and producing electricity, representing 488 megawatts of new renewable capacity. The Emerging Renewables Program has helped to support 13,823 new systems, which generate about 55 megawatts of distributed capacity. The CEC has also certified 427 facilities as eligible for the state’s Renewable Portfolio Standard. The facilities represent 6,400 megawatts, of which 517 megawatts is proposed new capacity from 13 planned facilities. See the CEC quarterly update (PDF 209 KB) and the Renewable Energy Program Web page.

Northeastern States Adopting Greenhouse Gas Rules for Vehicles

Most of the states in the Northeast are currently working to adopt regulations to limit greenhouse gas emissions from new vehicles. The proposed rules duplicate new regulations adopted in late September by the California Air Resources Board. Beginning with Model Year 2009, the rules set limits for the total greenhouse gas emissions that new vehicles can emit per mile. The rules tighten each year, and by 2016, greenhouse gas emissions from lighter vehicles will be cut by one-third, while greenhouse gas emissions from heavier vehicles will be cut by about one-quarter. The federal Clean Air Act allows only California to set tougher vehicle emissions standards than the federal standard, but other states are allowed to implement the same rules as California.

Vermont and New York State were first to follow California’s lead, adopting the new rules in early November. In Massachusetts and Maine, the deadlines for public comments on the proposed rules passed in October. In Rhode Island, Governor Donald Carcieri announced the proposed changes in October, and a public meeting is being held today. See the press release from the New York State Department of Environmental Conservation; the announcement and supporting documents from the Vermont Department of Environmental Conservation; the public comment period announcement (PDF 58 KB) and supporting document (PDF 245 KB) from the Massachusetts Department of Environmental Protection; the proposed regulation and announcements from the Maine Department of Environmental Protection; the press release from Governor Carcieri, and the announcement of the public hearing and comment period from the Rhode Island Department of Environmental Management.

Four Governors Order Their States to Save Energy, Use Biofuels

Governors throughout the country have been wielding their powers of executive order in recent weeks, as state agencies in Wisconsin, Minnesota, and Texas have been ordered to save energy and New York state agencies have been ordered to use biofuels. Last week in Wisconsin, Governor Jim Doyle ordered the state’s executive branch agencies to hold their energy use to minimum practical levels and directed the Secretary of Administration to issue energy conservation guidelines. In Minnesota, Governor Tim Pawlenty ordered all state agencies to cut energy use in state-owned buildings by 10 percent over the next year. And in Texas, Governor Rick Perry has ordered state agencies to submit energy conservation plans by tomorrow. See the executive orders from Governor Doyle, Governor Pawlenty and Governor Perry.

In New York, Governor George Pataki issued an executive order last week that requires all state agencies and public authorities to increase their purchase and use of biofuels for heating their facilities and fueling their vehicles. The order mandates that by 2007, biodiesel must supply 2 percent of the fuel used in the state fleet, increasing to 10 percent by 2012, at which time biodiesel will also supply at least 5 percent of the heating fuel used in state buildings. See the governor’s press release.

Biodiesel Production Expected to Triple in 2005

The National Biodiesel Board (NBB) announced in early November that it anticipates 75 million gallons of biodiesel production in 2005, three times as much as produced in 2004. NBB credits a federal tax incentive, state legislation, and a diesel shortage for the rise in demand. According to NBB, there are currently 45 biodiesel production plants, each averaging about 6.5 million gallons per year, although some of the latest plants weigh in with capacities at about 30 million gallons per year. To keep up with growing demand, developers have proposed building another 54 biodiesel plants. See the NBB press release (PDF 27 KB).

A number of companies have announced biodiesel production plans in recent months. TexCom, Inc. is planning to build two plants?each with a capacity of 30 million gallons per year?in the Texas cities of Seabrook and Corpus Christi. Both plants will produce biodiesel from soybean oil and both should be operating by the end
of 2006. Archer Daniels Midland Company (ADM) plans to build a 50-million-gallon-per-year facility in Velva, North Dakota, producing biodiesel from canola oil. See the October 3rd and November 10th press releases from TexCom and the ADM press release.

Site News

Dallas Zero Energy Home

This Web site highlights a demonstration home built for DOE’s Building America program, which conducts research to find energy-efficient solutions for new and existing housing. The home, located in Dallas, Texas, incorporates solar energy, proper ventilation, air sealing, insulation, and other features to reduce its net annual energy costs to zero. See the Dallas Zero Energy Home Web site.

Energy Connections

EIA Report Says Solar Manufacturing Grew Significantly in 2004

The U.S. manufacture of both solar thermal collectors and solar photovoltaic power devices surged in 2004, according to DOE’s Energy Information Administration (EIA). An EIA report released last week shows a 23 percent growth in 2004 in shipments of solar thermal collectors, a market heavily dominated by low-temperature collectors for applications such as water heating. Florida and California lead the domestic market for solar thermal collectors. One reason for the growth in sales: the price dropped 24 percent from 2003 levels, to $2.43 per square foot in 2004.

The report also found a 66 percent increase in shipments of solar photovoltaic cells and modules, to more than 181 megawatts of solar power capacity. Domestic shipments increased 61 percent, to more than 78 megawatts. Both imports and exports increased, with nearly 103 megawatts going overseas and nearly 48 megawatts entering the country. The EIA credits the growth to plant expansions, a new Sharp facility in Tennessee, and innovative technologies. One sign of that innovation is a doubling in thin-film solar shipments, to nearly 22 megawatts of capacity. Grid-interactive electricity generation became the dominant end-use of the solar cells and modules, reaching a market share of 71 percent in 2004, up from 39 percent in 2003. See the report, “Solar Thermal and Photovoltaic Collector Manufacturing Activities 2004.”

Among the recent indicators of the surging growth in solar power: Hemlock Semiconductor Corporation, the world’s leading producer of polycrystalline silicon, is citing solar power demand as the reason for an expansion of its plant in Hemlock, Michigan. The expansion will increase the production capacity of the plant by 50 percent by January 2009. Work on the expansion will start in December and will cost up to $500 million. Hemlock Semiconductor is a joint venture of Dow Chemical Company and two Japanese firms. See the Dow press release.

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