The Energy and Treasury departments released eagerly awaited guidance Thursday to help renewable energy project developers apply for roughly $3 billion in stimulus funds, which experts say will open the market to many technologies that weren’t economically feasible before. The departments released the guidance, terms of conditions and a sample application, although applications won’t be accepted until next month.

The rules are a major step that will spur private sector investment in clean energy and move the U.S. closer to President Barack Obama’s goal of doubling renewable energy capacity in three years, according to Matt Rogers, a Department of Energy (DOE) senior advisor charged with implementing ARRA funding. “By getting these rules out there and making it clear how to apply we’re hoping this will bring that private capital back from the sidelines and into the market quickly,” Rogers said during a conference call with reporters Thursday.

The tax grants will offset between 10 percent and 30 percent of the project’s cost, depending on the technology type. Construction must begin by the end of 2010 and the projects must be placed into service by 2017 at the latest for certain types of technologies.

The Treasury Department expects the program will benefit some 5,000 projects, and seems ready to boost funding from an estimated $3 billion if demand warrants an increase. Credit termination date and credit percentage, by project type Under this temporary program, developers who previously qualified for the production tax credit can now opt for the investment tax credit, which is based on the cost of the project, not the amount of electricity to be generated. Those eligible to claim the investment tax credit may then elect to receive a direct payment, rather than having the credit paid over 10 years and based on the amount of electricity generated. Cash grant recipients must agree to give up future tax credits.

Credit termination date and credit percentage, by project type

Under this temporary program, developers who previously qualified for the production tax credit can now opt for the investment tax credit, which is based on the cost of the project, not the amount of electricity to be generated. Those eligible to claim the investment tax credit may then elect to receive a direct payment, rather than having the credit paid over 10 years and based on the amount of electricity generated. Cash grant recipients must agree to give up future tax credits.

EPA (Washington, D.C.)—The EPA published a proposed mandatory Green House Gas reporting rule in the Federal Register / Vol. 74, No. 68 / Friday, April 10, 2009 pages 16447-16731. This rule calls for mandatory reporting of GHG emissions by direct emitters and suppliers of fuels and industrial gases. The agency foresees the first reporting period to begin in January 2010, with the first reports due in March 2011. The rule-making process…

“Start[s] with anthropogenic emission sources in the U.S. GHG Inventory and IPCC Guidelines…review[s] existing methodologies and reporting programs (e.g., CARB, Acid Rain Program/RGGI, The Climate Registry, 1605b, Climate Leaders, fuel quality and vehicle programs, etc.)….Apply[s] screening criteria to identify source categories to be included in the rule…Develop[s] reporting methodologies for selected emission source categories…Established cross-Agency workgroup to develop rule.”

The rule-making process will consider using EPA for verification, but the agency is considering comments for other options including third-party, or no verification.

Source: www.epa.gov/airmarkt/…/docs/…/GHG%20MRR%20Presentation.ppt (Reliability 7 )

June 30, 2009

cars.com— It is likely that by 2010 plug-in electric cars will be available for $30,000-$100,000. The major obstacle preventing widespread Electric Vehicle (EV) production is the limited battery charge capacity. Because battery technology has not evolved to the point where a battery can hold the same amount of energy as a tank of gas, most EV cars will be equipped with gas/ethanol powered generators. These generators act as a safety measure to prevent the EV car from shutting off if the battery’s charge runs out. Currently, all hybrids and EVs run on Nickel-metal Hydride batteries. However, it is likely that future EV car batteries will use lithium-ion batteries instead, because, “They’re smaller and have a higher power density,” said Nick Cappa, Chrysler’s advanced technology spokesman.

“The cost of electricity used in an electric car is claimed to be as cents on the dollar when compared to gasoline.”

EVs produce no CO2 since they do not burn fossil fuels in a combustion engine. However, EVs are often charged using energy obtained from burning fossil fuels. Unless an EV is charged using power from renewable energy sources (i.e. solar, wind etc…) it will still have a carbon footprint. Even when charging an EV from a power source derived from fossil fuels “life-cycle analyses of electrical generation suggest a greenhouse gas reduction of 47 percent over the equivalent amount of gasoline.”

The federal government offers a tax credit of $2,500-$7,500 for consumers buying EV cars.

Three EV cars are now on the market: Tesla’s Roadster ($101,500), Mini’s model E (leases for a one year trial period of $850/month) and Myers’s NmG (under $30,000). Because of limited production numbers, there are waiting lists for buyers.

There are 24 different EV cars slated for production by 2012.

Sources: http://www.cars.com/go/crp/buyingGuides/green/article.jsp?channel=green&id=buyingElectric

http://www.cars.com/go/crp/buyingGuides/green/article.jsp?channel=green&id=goGreen2008#electric

(Reliability: 9 )

CDP (London)—The Carbon Disclosure Project (CDP) is an independent not-for-profit organization which holds the largest database of corporate climate change information in the world. Numerous U.S based companies report their carbon emissions and risk with the CDP, including:
Ace Ltd, Admiral Group, Aetna Inc., AFLAC, Allstate, Ambac Financial Group, American International Group, Inc., Aon Corporation, Assurant, Inc., Chubb Corporation, Cincinnati Financial Corporation, Genworth Financial, Inc., Hartford Financial Services, Lincoln National Corporation, Loews Corporation, Marsh & McLennan Companies, Inc., MBIA Inc., MetLife, Inc., Progressive Corporation, Torchmark Corporation, Travelers Companies. Inc, and Unum Group.

The CDP also reports a Carbon Disclosure Leadership Index each year. Both Travelers Companies. Inc, and Hartford Financial Services ranked in the index in 2008.

Source: http://www.cdproject.net/ (Reliability 7 )
—

cars.com— According to cars.com the two most effective ways of limiting fuel consumption and reducing carbon output are car pooling and public transportation. Car pooling with family, friends or neighbors can reduce daily fuel consumption by 50%. Using fewer vehicles to transport more people not only reduces carbon output but also decreases traffic congestion.

Reducing a vehicles weight by removing extra objects or passengers improves fuel economy.

Accelerating slowly will consume less fuel then “Jack rabbit starts and full-throttle acceleration.” “Most vehicles are most efficient when cruising in their top gear at a relatively low speed.” When cruising in its top gear, a car’s fuel economy is directly proportional to its wind resistance. The more aerodynamic a car is, the less drag it has. An increase in drag causes a decrease in fuel efficiency. Removing luggage/ski racks and after market add-ons such as bug deflectors, window wind deflectors and sunroof wind deflectors increases aerodynamics and fuel efficiency. Because higher speeds cause the effects of wind resistance on fuel economy to be greater, it is more efficient to drive with the windows up and the AC on at higher speeds. At speeds below 35-40 mph there is little difference in the amount of fuel consumed by using AC or driving with the windows down.

Maintaining proper tire pressure as defined by a car’s manual (not the tire wall) improves fuel efficiency. Regular engine tuning (checking oxygen sensors and air filters etc…) also increases fuel efficiency.

Lower octane fuel is more economical than higher octane fuel. Even if a car’s manual ‘recommends’ higher octane fuel there aren’t “any long-term [penalties]” for using cheaper/lower octane fuel. “Technically, this makes the car less efficient, but not to a degree that negates the cost savings from the cheaper fuel grade.”

Source: http://www.cars.com/go/advice/Story.jsp?section=fuel&subject=fuelTips&story=mpgSave&referer=advice&aff=national

(Reliability: 9 )

EPA (Washington, D.C.)—The Environmental Protection Agency’s Climate Leaders program is an EPA industry-government partnership that helps companies develop comprehensive climate change strategies. Participating companies complete a corporate-wide inventory of their greenhouse gas emissions, set goals for GHG emission reduction and submit reports to the EPA.

Source: http://www.epa.gov/climateleaders/index.html (Reliability 7 )

So, why isn’t it fueling airliners and cars around the world?

Because of the financing valley of death – the difficulty that experimental projects, no matter how encouraging, have in obtaining the considerable investment needed for a commercial launch.

With the financial crisis drying up funding for new green technologies even further, lawmakers are recognizing the need to step into the breach.

A movement of lawmakers, energy companies and environmental groups is now promoting the creation of a federal green bank that would finance clean energy and energy efficiency projects.

Two bills for a green bank are currently being considered by committees in the House of Representatives:

A proposal by Reps. Jay Inslee (D-Wash.), John Dingell (D-Mich.) and Bart Gordon (D-Tenn.) to create a Clean Energy Deployment Administration was attached to the American Clean Energy and Security (ACES) bill, headed for a floor vote this summer. It would provide direct funding and also working with lenders to ensure outside support for clean tech businesses that otherwise would not be able to secure funding.

Rep. Chris Van Hollen (D-Md.) introduced a similar bill to the House Ways and Means Committee last month for a government-owned Green Bank that would fund clean energy and energy efficiency projects.

Van Hollen’s Green Bank would have an initial capitalization of $10 billion through the Department of Treasury Green Bonds, with a maximum limit of $50 billion.

To put that in perspective, the Green Bank would start out at a level that is close to half of the total that was invested in new renewable energy projects in the United States last year. According to the 2009 Renewables Global Status Report released by Renewable Energy Policy Network for the 21st Century, in 2008, about $24 billion was invested in new projects, 20% of the worldwide total. The Inslee bill doesn’t doesn’t specify a funding level for the CEDA proposal.

The poor economy makes a green bank especially necessary, says Reed Hundt, co-chairman of the Coalition for the Green Bank, a consortium that includes a variety of organizations such as the Pickens Plan, the Natural Resources Defense Council, the Department of Energy and companies including General Electric.

“Between now and 5-10 years from now, in this long time period, there is no reasonable prospect of significant new capital investment in new energy capacity in transmission in the United States,” Hundt says.

“That’s because of three things: Number one, the decline in the economy. When the economy is smaller, we use less electricity. You don’t make new capacity when you’re using less. Number two, there is no financing available. Companies can’t borrow money. And number three, if there was any demand for new capacity, the companies would not be ale to make money on their investments unless prices were raised 10%-20%. This is for any kind of energy at all – whether it’s coal or natural gas or LNG for anything.”

Both bills would provide financing for a variety of emerging energy technologies – including nuclear and carbon capture and storage projects, which are controversial with environmentalists who say nuclear isn’t clean because it creates radioactive waste and that CCS still uses dirty coal.

Van Hollen’s proposal specifies that nuclear projects could only receive money after all money previously appropriated for nuclear has already been spent, effectively forestalling any support nuclear for a long time.

The CEDA would support CCS and nuclear, but its focus would be to fund technologies that “will stabilize greenhouse gases, diversify our nation’s energy portfolio and increase energy efficiency,” Inslee spokeswoman Torie Brazitis says.

Despite the possibility of CCS and nuclear being funded, Hundt says that if a green bank provides financing clean energy at low cost, the country can create alternative energy capacity every year regardless of fluctuations in the economy without raising prices.

One way it would achieve this is with a renewable electricity standard, which is a requirement for utilities to obtain a certain percentage of their power from renewable sources.

“I think if we have a green bank, then we’re going to be able to get the votes in Congress for a renewable electricity standard, because there will be a way for companies to meet an RES, to build new capacity without raising prices or going broke,” Hundt says.

Environmental players have championed the idea.

Al Gore endorsed Van Hollen’s proposal and the Coalition for Green Bank. Inslee’s provision to add the Clean Energy Deployment Agency to the climate change bill was popular in the Energy and Commerce committee, passing by 51-6.

Gillian Caldwell, campaign director of 1Sky, a non-profit organization advocating government action to stem global warming, says 1Sky supports a green bank, along with a price on carbon.

“We need to be underwriting the clean energy of the future, particularly renewable energy that is plentiful in this country – whether it’s wind, solar or geothermal,” Caldwell says.

“The growing trend towards corporate social responsibility and socially minded investment is important. If we get the price on carbon right, you’ll see private capital flowing in the direction of a clean energy economy.”

See also:

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