Wednesday, November 14, 2007

Energy Bill Notes

Sklar, S. (2007). "Lessons from the political process: Energy Bill Woes." Renewable Energy Access website: (accessed 14 Nov 2007).
  • Pelosi says house intends to pass energy bill by end of week of 11/17/07
  • CAFE increase passed by senate in June: 35 mpg average for domestic fleet by 2022 (meaning all cars made in USA or all cars driven here?)
  • RPS failed in a Senate vote but is included in the House bill. Low (non-existent) budgetary impact of RPS is hailed. Compared to wind PTCs, which could cost $1 billion/year.
  • Union of Concerned Scientists leads coalition of national environmental groups in pushing for national RPS. Electric utilities trade group, EEI, lobbying against.
  • Solar and fuel cell industries pushing for longer expansion of ITC (what can ITC be used for?). Only 2 years in EPACT05 - industries say it isn't long enough for large generation plants.
  • Technologies disregarded in EPACT05 that may be again: small wind, ground coupled heat pumps, solar daylighting, combined heat and power, and water energy (such as freeflow hydropower, tidal, wave and ocean currents and thermal)
  • Talks about legality of the "offsets" - which appear to be taxes or royalties collected on oil and gas leases, but not described in detail here.
  • When the PTC was first renewed in Dec 1999, poultry-waste facilities were included with wind and closed-loop biomass as facilities eligible for the tax credit. Power generated through offgasing of poultry waste?
Lacey, S. (2007). "U.S. Energy Bill - Early Christmas Present or Lump of Coal." Renewable Energy Access website:
(accessed 14 Nov 2007).
  • According to this author, the RPS and all tax provisions were removed from the bill so it could be passed before Thanksgiving
  • "The renewable portfolio standard, which would set a target of getting 20-25% of the nation's electricity from renewable resources by 2025, will no longer be in the bill."
  • Mentions this REE&E jobs report from ASES, which Heidi said is similar to the Apollo jobs report in presenting a lot of big numbers and not explaining where they came from.

UCS (2007). "Clean Energy Update - 09/2007." Union of Concerned Scientists website: (accessed 14 Nov 2007).
  • House apparently passed an RPS with a 220-190 vote - not yet law.
  • "If passed into law, the Udall-Platts-Gonzalez renewable electricity standard would require large, investor-owned utilities to acquire 15 percent of their power from clean, renewable sources like solar, wind or biomass by 2020."
  • Lowered 20 percent to 15 percent, allowed states to meet 1/4 through EE
  • UCS and PIRG publicized environmental and jobs benefits. Says a 15% std would save consumers a total of more than $16 billion by the year 2020.
  • Issue seems to be getting the Senate and House bills to agree. Senate bill does not include RPS (it was blocked) and House bill does not include CAFE stds.
Clayton, M. (2007). "In Big U.S. Energy Bill, Who Will Pay?" Christian Science Monitor, 7 Nov 2007. CSM website: http://www.csmonitor.com/2007/1107/p01s01-wogi.html?s=yaho (accessed 14 Nov 2007).
  • Want to give bill to Bush to sign before xmas - need to reconcile House and Senate versions and avoid veto
  • RPS and CAFE stds controversial parts. Stds requiring more ethanol in gasoline, tougher efficiency standards for lighting and appliances, and the PTC have "broad legislative support."
  • To be paid for by repealing tax incentives to oil and gas industries, to tune of $16 bill (House version) or $32 bill (Senate).
  • Half the states already have RPSs, some stricter, but states that don't complain that regional differences aren't being taken into account (Southern Company, ATlanta-based utility company)
  • The 35 mpg CAFE std by 2020 is a 40 percent increase
  • Letter from Allan Hubbard, director of the president's National Economic Council, said senior advisers would recommend presidential veto for any RPS and if separate CAFE stds for cars and light trucks were not included
  • Says 35 mpg CAFE std would cut US oil use by 2.5 million barrels per day and save 495 MMT of CO2 emissions. 15% RPS would save 36 MMT of CO2. But this is assuming overall demand doesn't rise! Not much historical evidence for supposing it won't.

Kho, J. (2007). "Renewable Tax Credit and Portfolio Standard Could Get Cut From Energy Bill," Greentech Media website: http://www.greentechmedia.com/articles/renewable-tax-credit-and-portfolio-standard-could-get-cut-from-energy-bill-283.html (accessed 14 Nov 2007). 11 Nov 2007.
  • Senate Majority Leader Harry Reid and House Majority Leader Nancy Pelosi discussing taking PTC and RPS out of energy bill.
  • "Stricter fuel economy standards for vehicles also might be endangered as Reps. Barron Hill, D-Ind., and Lee Terry, R-Neb., sent a letter Friday saying they wouldn't support such standards"
  • RE stocks dropped: Evergreen Solar (NSDQ: ESLR) shares dropped 11.84 percent to $14.08 per share Friday, SunPower Corp. (NSDQ: SPWR) shares fell 9.4 percent to $128.66 per share and Suntech Power fell 5.6 percent to $61.55 per share. The WilderHill Clean Energy Index, which tracks U.S. clean-energy stocks, dropped 5.19 percent Friday to 252.09.
  • Quotes from representatives of the solar industry say that industry will not die in U.S., but because of state standards and business from overseas.
Snow, N. (2007). "Energy bills would cost $1 trillion, 5 billion jobs, study says." Oil and Gas Journal, 14 Nov 2007. Available online at http://www.ogj.com/display_article/312060/7/ONART/none/GenIn/1/Energy-bills-would-cost-$1-trillion,-5-billion-jobs,-study-says/ (accessed 14 Nov 2007).
  • American Petroleum Industry-commissioned study finds proposed energy bills could cost 5 billion jobs and drain $1 trillion from US economy. [Almost as many jobs as there are people in the world!] Study performed by CRA International. Update: Checked the api.org website, and the correct number is there: 5 million.
  • Study examined "potential economic impacts of requiring a 10 million b/d reduction from projected 2030 US oil consumption, the use of 36 billion gal/year of renewable transportation fuels by 2022, and more than $15 billion in increased oil and gas industry taxes over 10 years."
  • CRA's study used the US Energy Information Administration's 2007 Annual Energy Outlook as a starting point and did not assume higher oil prices.
  • Authors point out shortcomings of using ethanol as substitute: uses fossil fuel to produce, 70% efficiency of gasoline, effects on food supply

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