Federal Government to Cut GHG Emissions 28% by 2020
President Obama announced that the federal government-the largest energy consumer in the U.S. economy-will achieve a 28% reduction in its greenhouse gas (GHG) emissions by 2020.
The president issued the Executive Order on October 5, 2009, requiring each federal agency to submit by January 4 a 2020 target for reducing its GHG emissions from its estimated 2008 baseline. The new target is the aggregate of those set by 35 federal departments and agencies.
As a next step, the Office of Management and Budget will validate and score each agency’s sustainability plan, assuring a long-term return on investment to the U.S. taxpayer. To ensure accountability, progress will be measured and reported to the public annually. See the White House press release and the Executive Order (PDF 87 KB).
Achieving the target will reduce federal energy use by 205 million barrels of oil, while avoiding $8-11 billion in energy costs by 2020. Agencies are already taking actions such as installing solar arrays, tapping landfills for renewable energy, putting energy management systems in federal buildings, and replacing older vehicles with more fuel-efficient hybrid models. See a White House compilation of federal projects that are helping to meet the GHG reduction target (PDF 313 KB).
DOE Requests $2.4 Billion for Renewable Energy, Efficiency in FY 2011
On February 1, President Obama unveiled a $28.4 billion budget request for DOE for fiscal year (FY) 2011, including $2.36 billion for the DOE Office of Energy Efficiency and Renewable Energy (EERE).
The proposed budget aims to reduce energy use, boost renewable energy sources, and strengthen clean energy research. The budget request for EERE represents a 5% increase over FY 2010, not counting funds provided through the Recovery Act.
The budget includes substantial increases for many EERE programs:
– 53% increase for wind energy
– 43% increase for the Weatherization and Intergovernmental program
– 32% increase for the Federal Energy Management Program
– 25% increase for geothermal energy
– 22% increase for solar energy
It also includes $57.5 million for facilities and infrastructure at DOE’s National Renewable Energy Lab, including the completion of the Energy Systems Integration Facility.
It proposes $50 million for a new program called Regaining our Energy Science and Engineering Edge (Re-Energyse), an educational effort designed to guide students and workers to pursue careers in science, engineering, and entrepreneurship related to clean energy. And the budget asks for a 43% increase in funding for program direction and calls for nearly doubling the amount spent for program support.
The President’s budget typically represents a starting point for the Congressional appropriation process. See the DOE press release and text pages 25-31 (PDF pages 30-36) of the DOE Budget Highlights (PDF 4.2 MB) on the DOE budget and performance Web page.
In addition to funding EERE, the proposed DOE budget includes:
– $500M to support an estimated $3-5 billion in loan guarantees for renewable energy and energy efficiency projects
– $10M to support continued administration of the Advanced Technology Vehicles Manufacturing Loan Program.
– $35M for clean energy transmission and reliability
– $39.3M for Smart Grid R&D
– $40M for energy storage on the electrical grid
It includes $300 million for the Advanced Research Project Agency- Energy (ARPA-E), for transformational energy research that industry by itself cannot and will not support. ARPA-E received $15 million in initial DOE funding in FY 2009 as well as $400 million in Recovery Act funds. The budget also requests an additional $140 million for the Energy Frontier Research Centers program, including two new centers, and $107 million for Energy Innovation Hubs.
DOE will continue funding the three Energy Innovation Hubs introduced in FY 2010: fuels produced directly from sunlight; improving energy efficient building systems design; and creating a virtual model of an operating nuclear reactor. For FY 2011, DOE is proposing a new hub dedicated to batteries and energy storage. See text pages 2-3, 5-8, 18, 20-24, 32-34, and 53-55 (PDF pages 7-8, 10-13, 23, 25-29, 37-39, and 58-60) of the DOE Budget Highlights document.
Ag and Interior Departments Propose Boosts for Clean Energy Funding
The U.S. Departments of Agriculture (USDA) and Interior (DOI) are proposing to increase funding for renewable energy and energy efficiency programs in their budget requests for FY 2011.
For the DOI, the New Energy Frontier initiative includes:
– $73.3M for renewable energy programs, a 24% increase above 2010 funding levels.
– $19.8M for the Bureau of Land Management to review applications for renewable energy projects on public lands
– $34.9M for the Minerals Management Service for renewable energy activities on the Outer Continental Shelf
– $6.6M for U.S. Geological Survey to analyze and document the effects of renewable energy on wildlife populations
– $7M for the Fish and Wildlife Service to conduct endangered species consultations and help plan and design renewable energy projects that are friendly to wildlife.
– $5M for the Bureau of Indian Affairs to facilitate renewable energy development on tribal lands.
See the DOI press release, and pages DH-3 to DH-7 (PDF pages 1-5) of the proposed budget for the New Energy Frontier initiative (PDF 2.1 MB).
The USDA budget is harder to interpret because much of its funding is mandated by the 2008 Farm Bill. Of the discretionary funding, the budget proposes near-level funding of $39 million for the Rural Energy for America Program, although it shifts most of the funds to grants, resulting in $34 million in grants and an estimated $12 million in loan guarantees (supported with $5 million in federal funds).
The Farm Bill provides another $70 million, supporting an additional $36 million in grants and an estimated $73 million in loan guarantees. The budget proposes:
– $17M for the Biorefinery Assistance Program, enough to support $50 million in loan guarantees
– $85M for the Bioenergy for Advanced Biofuels program.
– $479M for the Biomass Crop Assistance Program
– $15M for the Forest Biomass for Energy Program (US Forest Service program)
– $5M for the Community Wood Energy Program (U.S. Forest Service program).
In terms of research, the proposed FY 2011 budget provides $10 million to establish five Regional Biofuels Feedstocks Research and Demonstration Centers, which will coordinate government research efforts to accelerate development and deployment of dedicated energy feedstocks.
The USDA budget also includes $34 million for a research initiative to develop cost-effective non-food feedstocks for biofuels.
See pages 16, 30, 35, 56, 58, 96, and 118 of the USDA Budget Summary and Annual Performance Plan for FY 2011 (PDF 1.78 MB).
But perhaps most significant is that the 2008 Farm Bill allows the USDA’s Rural Utilities Service (RUS) to provide loans for energy-saving efforts, including energy efficiency and renewable energy projects. The budget for the RUS Electric Programs includes $4.1 billion in loans, although it’s unclear how much of those loans may go to clean energy projects versus traditional transmission and distribution projects.
The USDA also notes that funding for several of its business programs, including the Business and Industry Loan Guarantee Program and Value-Added Producer Grants, will be available for clean energy projects. In addition, the Homeownership Loan and Loan Guarantee programs will provide financing for more energy efficient homes. See pages 16 and 60-61 of the USDA Budget Summary document.
DOE, EPA Join States to Speed Progress on U.S. Energy Efficiency
DOE and the U.S. EPA announced the creation of the State Energy Efficiency (SEE) Action Network to help states achieve maximum cost-effective energy efficiency improvements in homes, offices, commercial buildings, and industrial facilities by 2020.
Led by DOE and the EPA, the SEE Action Network will provide targeted technical assistance to states to reach national energy goals. The network will drive energy efficiency by using a broad set of goals from the National Action Plan for Energy Efficiency – a public-private initiative started in 2005 among utilities, utility regulators, and other partner organizations. Its goals range from establishing state-of-the art billing systems regarding consumer energy use to developing strong energy efficiency policies at the state level.
The initiative’s National Action Plan Vision for 2025: A Framework for Change, last updated in 2008, outlines strategies to cut the growth in U.S. energy demand in half, achieving $500 billion in net energy savings and substantial reductions in greenhouse gas emissions by 2025. The SEE Action Network aims to achieve those goals five years early. To kick off the new network, the SEE Action Executive Group will meet in early March. See the DOE press release and the Web sites for the SEE Action Network and the National Action Plan for Energy Efficiency.
DOT Awards $8 Billion for High-Speed Rail
The U.S. Department of Transportation (DOT) is awarding $8 billion in ARRA funds to 31 states across the country to develop the nation’s first high-speed rail service that will allow passengers to travel quickly between major cities. The awards are a down payment on developing or laying the groundwork for 13 new high-speed rail corridors.
Most of the funds will go toward developing large-scale, high-speed rail programs. For example, Florida is receiving up to $1.25 billion to develop a new rail corridor between Tampa and Orlando, with trains running up to 168 miles per hour, while California is receiving up to $2.25 billion for its planned project to connect Los Angeles to San Francisco and points in between with trains running up to 220 miles per hour. DOT is also proposing an additional $1 billion for high-speed rail in the FY 2011 budget, as part of a five-year plan to add $1 billion annually to the initiative. See the White House press release, the White House summary of awards (PDF 15 KB), and the DOT press release on the FY 2011 budget.
DOE Closes $1.4 Billion Loan to Nissan
DOE closed its $1.4 billion loan with Nissan North America to build an advanced battery manufacturing facility in Smyrna, Tennessee, and to retool the automaker’s existing Smyrna factory so it can build electric automobiles (EVs).
Nissan plans to use the loan to produce its EV, the LEAF. Nissan plans to ramp up production capacity to build 150,000 vehicles and 200,000 battery packs annually. The projects are expected to create up to 1,300 U.S. jobs and to conserve up to 65.4 million gallons of gasoline per year.
The Nissan announcement marks the third loan agreement signed by DOE with an advanced technology vehicle manufacturer, following a $5.9 billion agreement with Ford in September 2009 and a $465 million loan agreement with Tesla Motors on January 21. DOE has also signed a conditional commitment with Fisker Automotive to build plug-in hybrids by reopening a shuttered auto plant in Wilmington, Delaware. Tenneco is the first advanced technology component manufacturer to obtain a conditional commitment from DOE in October of last year.
Congress appropriated $7.5 billion to DOE to support up to $25 billion in loans to companies using U.S. factories to make cars and components that increase fuel economy at least 25% above 2005 fuel economy levels. DOE plans to make additional loans over the next several months to large and small auto manufacturers and parts suppliers up and down the production chain. See the DOE press release and the LEAF page on the Nissan Web site.
Under the Copenhagen Accord, 55 Countries Agree to Cut GHG Emissions
The Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) announced on February 1 that it has received national pledges from 55 countries to limit and reduce their GHG emissions by 2020.
The Copenhagen Accord, an agreement reached at the U.N. climate change conference, called for countries to submit their emissions targets by the end of January. The 55 countries represent 78% of global emissions from energy use. Among industrialized countries, the commitments come from Australia, Canada, Croatia, the European Union and its member states, Japan, Kazakhstan, New Zealand, Norway, the Russian Federation, and the United States. Commitments also came from 23 developing countries, including such major emitters as Brazil, China, India, the Republic of Korea, and South Africa.
However, it’s worth noting that many of the commitments, particularly those of the developed countries, hinge on similar commitments being made by other countries. They also use varying base years for comparison.
In the case of the US, the commitment is to reduce GHG emissions "in the range of 17%" below 2005 levels, "in conformity with anticipated U.S. energy and climate legislation, recognizing that the final target will be reported to the Secretariat in light of enacted legislation."
The next round of formal climate negotiations is scheduled for Bonn, Germany, at the end of May, although several countries have indicated their wish to see a quick return to negotiations with more meetings than the scheduled sessions. See the UNFCCC press release (PDF 68 KB) and the pledges from industrialized countries and developing countries.
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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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