Nation’s Should Build on Economy-Related Greenhouse Gas Cuts
Under the current economic slowdown, global CO2 emissions could fall 3% in 2009; the International Energy Agency (IEA) believes the world’s nations can build on this to avoid the future impacts of climate change. US emissions are expected to fall 5.9% in 2009.
To support ongoing climate negotiations, the IEA released an early excerpt of its World Energy Outlook 2009, which finds the economic slowdown has already put the world on a path to achieve 5% lower greenhouse gas emissions (GHG) in 2020 than they estimated just a year ago.
To achieve greater reductions and shift the world toward low-carbon energy sources, the IEA estimates that $10.5 trillion will need to be pumped into the global energy sector over the next 20 years. But the IEA estimates that fuel savings across industry, transportation, and buildings will total $8.6 trillion over the same time period, nearly equaling the investment.
The IEA scenario targets climate stabilization at the equivalent of 450 parts per million of CO2, even with higher emissions from developing countries. The IEA’s World Energy Outlook 2009 will be released November 10, but until then, see the IEA press release and the climate change excerpt from the report (PDF 4.3 MB).
DOE Awards $87M for Solar Research and Deployment
DOE announced on October 8 that it will award $87 million-$50 million of it from the ARRA-to support development of new solar technologies and rapid, large-scale deployment of solar systems.
Up to $17 million will go to five DOE national labs-Argonne National Lab, Los Alamos National Lab, the National Renewable Energy Lab (NREL), Oak Ridge National Lab, the Pacific Northwest National Lab, and Savannah River National Lab-for R&D on PV and concentrating solar technologies.
The remaining $70 million will support deployment of solar systems, including $37.5 million for seven projects that will model, test, and evaluate the impact of large amounts of solar PV power on the reliability and stability of the electrical grid; $10 million for 40 new Solar America Cities Special Projects, located in 16 cities, with the intent of addressing barriers to solar adoption in urban settings; and $27 million for nine colleges, universities, and local organizations to lead regional programs that will train instructors for solar installer training programs. These "train the trainer" programs will support both solar PV technologies and solar heating and cooling technologies. See the DOE press release and DOE’s Solar Energy Technologies Program Web site.
DOE Expands, Simplifies Loan Guarantees for Renewable Energy Projects
DOE announced October 7 that it will provide guarantees for up to $8 billion in loans for conventional renewable energy generation projects such as wind, solar, biomass, and geothermal power, as well as hydropower. DOE will draw up to $750 million in ARRA funds to support the new loan guarantees.
Past offers of loan guarantees for renewable energy generation projects have focused new or innovative technologies not in general use in the marketplace, but the new solicitation is geared toward more conventional renewable energy projects.
To speed up project financing, DOE will allow proposed borrowers and project sponsors to work directly with eligible lenders to gain financing. The lenders will then apply to DOE for partial, risk-sharing loan guarantees of no more than 80% of the maximum aggregate principal and interest during a loan term.
The new approach is one aspect of DOE’s new Financial Institution Partnership Program, which establishes a streamlined set of standards designed to expedite DOE’s underwriting process for loan guarantees. See the DOE press release, the full solicitation, and the DOE Loan Guarantee Program Web site.
USDA Loans $17.4M for Greensburg, Kansas, to Run on Wind Power
Greensburg, Kansas got a boost from the U.S. Department of Agriculture (USDA) on October 9, when the agency announced a $17.4 million loan for a 12.5 MW wind project that will provide power for the city.
Greensburg is in the process of rebuilding as a green community following a devastating tornado in May 2007 – the $23.3 million Greensburg Wind Farm is expected to help the city to meet its energy goal of 100% renewable energy.
The USDA loan will go to a subsidiary of John Deere Renewables with the remaining $5.8 million from an equity investment by Deere & Company. Kansas Power Pool – the municipal energy agency to which the city belongs – will buy the electricity generated by the Greensburg Wind Farm, supplying its wind power to Greensburg and surrounding communities.
In addition, NativeEnergy, Inc. will sell Renewable Energy Credits for about two-thirds of the wind farm’s energy output over the next 20 years. The 10-turbine Greensburg Wind Farm is expected to start producing power next year. See the USDA press release, the April 2009 announcement of the project by John Deere (PDF 332 KB), and NativeEnergy’s Greensburg Wind Farm Web page.
The wind farm is the latest phase in the community’s efforts to rebuild green. Only two weeks after the tornado destroyed 95% of the city’s houses, city officials called DOE for assistance. After meeting with officials, DOE opened a Greensburg office to advise residents and commercial users on sustainable rebuilding. DOE also committed a team of experts from NREL to conduct detailed studies, develop renewable energy and efficiency business strategies, and assemble various financing and ownership options to produce or procure renewable energy technologies. See the DOE press release and Web page on the Greensburg project.
Interior Department, California Launch Renewable Energy Initiative
Secretary of Interior Ken Salazar and California Governor Arnold Schwarzenegger signed an agreement October 12 to spur development of environmentally appropriate renewable energy on federal lands in California.
Among its major provisions, the Memorandum of Understanding (MOU) will establish a Renewable Energy Policy Group to guide the cooperative work; develop a strategy to identify areas suitable and acceptable for renewable energy development; identify renewable energy zones based on renewable energy development potential and environmental, wildlife, and conservation criteria; prioritize application processing for solar development in renewable energy zones; and coordinate with federal and state agencies to identify energy and transmission needs, as well as to designate transmission needs and corridors.
The MOU also commits the U.S. Department of the Interior and California agencies to develop a timeline for applicants to follow in order to meet incentive deadlines set by the Recovery Act. Secretary Salazar and Governor Schwarzenegger called the agreement "a model of federal-state initiative and cooperation." See the press releases from the Interior Department and Governor Schwarzenegger, as well as the full MOU (PDF 39 KB).
The Agreement follows the Interior Department’s opening of a new Renewable Energy Coordination Office in California on October 9. The department previously established similar offices in Arizona, Nevada, and Wyoming, along with renewable energy permitting teams in six other western states. These offices and teams support the speedy permitting of renewable energy projects and supporting power transmission projects on public lands. To lead the overall initiative, the Interior Department also established a National Renewable Energy Office at the Washington, D.C., headquarters of its Bureau of Land Management (BLM). See the Interior Department press release.
One successful conclusion to such federal and state cooperation occurred on October 12, as Secretary Salazar inaugurated Arizona’s first commercial-scale wind project. The Dry Lake Wind Power Project is located on a combination of BLM-managed federal lands, Arizona State Trust Lands, and private lands on the Rocking Chair Ranch in Navajo County.
The project required the cooperation of the Interior Department, the Arizona State Land Department, Navajo County, Rocking Chair Ranch, the project developers, and the Salt River Project, which has agreed to buy the power from the project. Phase I will generate 64 megawatts of wind power with 30 wind turbines. When fully constructed, the project could provide up to 378 megawatts of wind energy from 100 to 200 turbines. See the Interior Department press release.
DOE to Strengthen Enforcement of Energy Efficiency Standards
DOE announced on Tuesday three new steps to strengthen its ability to enforce energy efficiency standards. DOE has formed a new enforcement team within the Office of the General Counsel; established a program to randomly review manufacturers’ compliance with DOE certification requirements; and is publishing guidance that provides further details about DOE’s energy efficiency enforcement regulations.
In its new guidance, DOE confirms that under existing regulations, it can take enforcement action and assess civil penalties if a manufacturer fails to properly certify a covered product and retain records. Specifically, the agency clarifies that any failure to certify covered products according to DOE’s rules violates the Energy Policy Conservation Act of 1975 and DOE regulations. DOE will randomly select previously filed certification reports for review, request certification records as needed, and hold manufacturers accountable for failing to certify covered products according to DOE rules.
These new steps are part of the DOE’s ongoing effort to save energy for U.S. residents and businesses by clearing the backlog of energy efficiency standards for appliances and aggressively enforcing energy efficiency standards. This summer, DOE initiated investigations of alleged violations against both an air conditioner manufacturer and a freezer manufacturer. Both investigations are expected to be concluded shortly. See the DOE press release.
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EREE Network News is a weekly publication of the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE).
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