Week of February 5, 2001
Green Power and Market Research News
A Weekly Electronic News Service from Western's Renewable Resources Program Covering Green Power, Renewable Energy and Market Research Strategies
http://www.es.wapa.gov/renew/

Green Power

California Power Crisis: Impacting the Green
A national green power non-profit has pooled industry experts and resources to provide an accurate overview of the California energy crisis and its effect on green power choice in the state. The Center for Resources Solutions in San Francisco has put together a striking summary of facts that affected California's green power market and also has recruited leading energy authorities to document events leading to the California energy crisis.  Facts for the media can be can be found on the CRS web site:
http://www.green-e.org/media/index.html  , and web site at:  http://www.green-e.org/media/crisispaper.pdf   .  A list of "The Top Ten Factors that Affected California's Green Power Market" can be viewed at  http://www.green-e.org/media/topten.pdf  .   A "California Green Power Update" that went out to green power industry advocates can be viewed at  http://www.green-e.org/media/update.pdf  .  Source:  Business Wire 2/8/2001 via Power Marketers.com 2/8/2001

California Marketers Continue to Struggle
According to a recent article in the San Francisco Chronicle, the few remaining green power marketers in California are struggling to meet their customers needs given skyrocketing wholesale power prices. One of the companies, Commonwealth Energy Corp., is still providing a 5% rate discount to its customers because it locked in fixed prices for its power supplies. Other marketers have been buying power on the volatile spot market. According to the newspaper, Green Mountain Energy has been inundated with calls from consumers looking for lower rates but the company has started turning away new customers and is recommending that its existing customers return to their default suppliers.  Monthly Green Power Marketing Update,  prepared by Blair Swezey and
Lori Bird,  National Renewable Energy Laboratory 2/6/2001

East Coast Losing Clean Power Marketers
As a result of sharp increases in wholesale power costs triggered by higher natural gas prices, some alternative providers, including those that have offered clean or green power options, are exiting retail power markets in several Northeast and Mid-Atlantic states. According to an article in the Asbury Park Press, AES Power Direct became the latest marketer to announce that it will return its customers to their default suppliers. The company will turn back more than 15,000 customers in New Jersey, including those that were purchasing its environmentally friendly power offering. The company is also no longer accepting new customers in Pennsylvania.  Utility.com is another casualty of "soaring wholesale rates," according to a recent article in the Pittsburgh Post-Gazette. The company has informed its 30,000 Pennsylvania customers that they must select an alternative provider or be returned to their default supplier. Utility.com is also returning customers in other parts of the country, including California, where it was supplying green power.  Monthly Green Power Marketing Update,  prepared by Blair Swezey and
Lori Bird,  National Renewable Energy Laboratory 2/6/2001
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For more information: http://www.eren.doe.gov/greenpower/   or   http://www.thegreenpowergroup.org/
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Renewable Energy Technologies

Wind Power Development Gains Interest in Montana
Oil field pumps near Melstone stopped bobbing recently when the electricity it took to run them jumped from $30 an hour to $200.  But the cheap electricity needed to pull Central Montana crude from deep below the ground could soon return if a Billings man is successful in tapping the state's largest untapped energy resource — wind.  Plans are being developed to use up to 30 generators salvaged from a California wind farm to produce power for less than a nickel a kilowatt hour at the remote oil field, said David Healow, a Billings anesthesiologist and proprietor of Montana Marginal Energy.  "The thing about Eastern Montana is there's wind everywhere," Healow said. "But the wind resource has never been developed here."  Healow brought the first utility-scale wind generators to Montana 15 years ago. The four generators sitting on a grassy hill outside Livingston continue to produce enough power every year to supply electricity to about 50 typical homes. Although Healow generates the power, he must sell it to the Montana Power Company, which owns the power lines. In 1998, he signed a 10-year contract with MPC to sell his wind power for 2.2 cents per kilowatt. At this rate, it's barely a break-even venture, he said.  "It's just entertainment," he said. "I'm a farm kid. It's farming."  With rising electricity prices, the entertainment is becoming more serious.  Healow recently installed a wind generator next to Planet Lockwood, a local casino and restaurant. The business will soon get two-thirds of its power from the generator. Power from the wind generator will be sold to the business at 5 cents per kilowatt, which is a savings of 1.5 cents over current rates, Healow said.  Healow also has a permit to install a turbine at Desperados, a Billings nightclub.  Interest in wind power is surging. Healow said he has always believed that Montana would be the perfect place to develop wind power.  "My dad was a farmer. He used to always complain there was no winter crop," Healow said. "Wind is a perfect winter crop. And the worse the weather is, the better the crop."  With few people and lots of wide open spaces, the windy plains of Eastern Montana are some of the nation's best real estate for wind farms, according a 1998 report from the U.S. Office of Technology Assessment. Turbines could be erected without disrupting current grazing or wheat operations and electricity could be produced for less than 6 cents per kilowatt hour, the report stated.  The Fort Peck Tribe recently completed a feasibility study for a 200-megawatt wind farm in northeastern Montana. This would create enough electricity for about 10,000 homes and good-paying jobs for between 30 to 40 "windsmiths."  "We're about as close as you can get without actually building it," said Stoney Anketell, coordinator for the tribe's Wind Energy Project.  The tribe began looking into wind power in 1994 after it received a $250,000 grant from the U.S. Department of Energy. The tribe used the money to identify two sites that had average annual wind speeds of about 19 mph. To be commercially viable, the site needs to have average speeds of 15 mph, Anketell said.  "Every mile per hour above that is profit," he said. "Depending on the size of the wind farm, it could be millions."  The tribe hopes to erect up to 200 wind turbines, each would be 200-feet tall and produce more than 1 megawatt of electricity. The tribe is working with potential investors right now. An outside group  would own the turbines to take advantage of federal tax incentives — worth about 1.7 cents per kilowatt hour on wind energy — but the tribe would have an ownership stake and would earn royalties off each turbine. Using the latest technology, the turbines could sell electricity for about 4 cents per kilowatt hour and still make a profit. Current utility rates are closer to 7 cents per kilowatt, and are expected to rise  another 20 percent in coming months, Anketell said.  "Wind power just makes great sense now," he said. "This could be a great source of income for rural Montana, especially with the price of wheat what it is. We can harvest a crop of wind and still farm around these wind turbines. You can grow two crops and one lasts all year long."  Unlike the old towers, which were a lattice-work of steel girders, the towers being considered by Fort Peck would be sleek tubes.  The old towers were called "Cuisinarts of the sky" by some environmental groups for providing attractive, yet deadly nesting sites for birds. Bird deaths would also be minimized because the towers would not be located in funnel-like canyons — as they are in California — where raptors commonly soar. The blades of the turbines would be larger and turn more slowly than earlier wind generators.  Construction on the wind farm could begin as early as this summer, depending on financing and the outcome of a study by the Western Area Power Administration, which would handle transmission of the power over its 8,000 miles of power lines.  Gerald Wegner, regional manager of WAPA, said a complex       computerized study must be done to analyze if the existing power grid could handle the additional power being proposed by the Fort
Peck project.  With the latest power price increases, the work load for WAPA's transmission study group has surged by nearly 1,000 percent, he said. Much of the interest is from entrepreneurs wanting to develop wind power on the northern Great Plains. before any widespread wind power development occurs in Montana, more access needs to be provided to the power grid, Healow said. "We still have a difficult time getting access because the folks who control the grid are unstinting in their scrutiny of how they grant access," he said. "They're painstaking about this process."  Healow compared accessing the power grid today to trying to use
the Internet in the late 1980s. The Internet existed, but there was no easy access in the way of search engines or easy-to-use software.  "The on-ramps to the grid are relatively difficult to navigate,"  Healow said. "... My fantasy with the grid is you would be able to come on as a generator as easily as you come on as a customer."  Source: James Hagengruber, Billings Gazette, jhagengruber@billingsgazette.com .

MTBE Phase-out Increases Demand and Production of Ethanol in Golden State
The Renewable Fuels Association (RFA) today announced that the Golden Cheese Company of California started producing ethanol in January from cheese whey residue left from cheese processing.  Golden Cheese becomes the second ethanol producer in California.  The increasing production and use of ethanol in California will be a major topic at the RFA sponsored National Ethanol Conference in Las Vegas on February 18-20th.  The RFA is excited to see Golden Cheese join the ranks of California ethanol producers, said Eric Vaughn, president of the RFA.  As MTBE is phased-out and replaced with ethanol in California, we are committed to growing the California ethanol industry.  Golden Cheese is a great example of a farmer-owned cooperative converting an agriculture waste product into a renewable fuel.  This is great for California consumers and the environment.  We're very proud that Golden Cheese is the newest member of the RFA.  The Golden Cheese Company, a division of Dairy Farmers of America, is
located in Corona, California and employs 375 people.  They process 5 million pounds of milk per day into cheese.  Cheese whey, a residual product of this process, is then converted into ethanol.  While Golden Cheese had produced ethanol for over 10 years beginning in the mid-1980s, production had been halted due to the lack of an ethanol market in California.  Golden Cheese restarted production this month in response to the growing California ethanol market resulting from the phase-out of MTBE.  Golden Cheese creates enough cheese whey to produce 5 million gallons of ethanol per year.  We're excited to see the ethanol market grow in California, said Don Bradford, president of the Golden Cheese Company of California.  Ethanol provides an opportunity to convert waste products into fuel.  At the same time, we create jobs, add to California's tax base, and help produce a clean fuel that doesn't hurt our drinking water.  The Golden Cheese Company is proud to be a part of the growing ethanol industry.  We're also looking
forward to working with the California Renewable Fuels Partnership to promote switching from toxic MTBE to safe ethanol.
To learn more about the National Ethanol Conference, ethanol or the RFA, please visit its web page at:  www.ethanolRFA.org .
Source: RFA News 2/1/2001.

GEOTHERMAL
"Energy Department Advancing Geothermal in the West," by staff of the Geothermal Energy Association. [21 Department of Energy-private sector partnerships are described in a table format.] Geo-Heat Center Quarterly Bulletin, December 2000, at
http://geoheat.oit.edu/bulletin/bull21-4/art5.pdf  , scroll to article title.  Source: Energy Newsbriefs 1/15/2001.

High Electricity Prices Could Boost Wind Energy
Wind energy officials in California are optimistic that California's ongoing electricity shortage will be a boon for wind energy in the
state. Currently, wind energy only accounts for 1.5 percent of California's total energy pool.  "We think we may be seeing the renaissance of wind energy," said Enron Wind senior vice president Robert Gates. The company has wind turbines at wind farms in Altamont, Tehachapi and the San Gorgonio Pass.  However, not all energy officials agree with Gates. Some officials noted that the state's wind energy facilities suffer from neglect and are in need of repair. In addition, some believe that the cost of producing wind-powered electricity is "still too prohibitive."  Energy officials in California first began to examine wind energy during the oil embargo of the 1970s. Federal grants helped build wind farms such as the Altamont Pass facility, which houses 5,000 turbines capable of producing about 550 megawatts. However, after prices for natural gas-generated electricity fell to between two and three cents per kilowatt hour (kWh), officials were unable to convince public utilities to purchase wind energy at prices as high as 15 cents per kWh.  Wind energy officials noted that as wind turbine technology has improved, prices for wind energy have dropped to between four and six cents per kWh. Prices for natural gas-derived electricity are currently averaging 17 cents per kWh.  "The windmills work great," said University of California professor of energy and society Daniel Kammen. "They're very cost effective."  Contact: AWEA, web site   http://www.awea.org  .  Source: AWEA Wind Energy Weekly
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For more information on Renewable Resources go to:  http://www.eren.doe.gov/repis/
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Outreach, Education & Reports

The New Passive Solar Heating Model of Natural Resources Canada' s Now Available Free
Renewable energy technology (RET) projects are not routinely considered by planners and decision-makers at the critically important initial planning stage.  The RETScreen® Renewable Energy Project Analysis Software has been developed to help address this barrier.  RETScreen International is a renewable energy awareness, decision-support and capacity building tool developed by the CANMET Energy Diversification Research Laboratory (CEDRL) with the contribution of over eighty five (85) experts from industry, government and academia. The core of the tool consists of a standardised and integrated renewable energy project analysis software that can be used world-wide to evaluate the energy production, life-cycle costs and greenhouse gas emission reductions for various types of renewable energy technologies (RETs). Each RETScreen renewable energy technology model (e.g. Solar Water Heating Project, etc.) is developed within an individual Microsoft® Excel spreadsheet "Workbook" file. The Workbook file is in-turn composed of a series of worksheets. These worksheets have a common look and follow a standard approach for all RETScreen models. In addition to the software, the tool includes: product, weather and cost databases; an online manual; a Website; project case studies; and a training course.  Download the software for free at:  http://retscreen.gc.ca/ang/menu.html  .

SEC Announces Launch of New Website
The Sustainable Energy Coalition (SEC) recently announced it has launched a new website designed to help individuals instantly
find experts on a wide range of energy issues. The site will locate experts in the fields of renewable energy technologies, energy
efficiency and climate change.  The website will feature information on new technologies and timely news on energy and related issues, including weekly updates and links to breaking news.  SEC is comprised of more than 30 national businesses, environmental, consumer and energy policy organizations. SEC was founded in 1992 and promotes increased federal support for energy efficiency and renewable energy technologies and reduced federal support for unsafe or polluting energy resources.
Members of SEC advocate federal energy policies that will lead to a cleaner environment, safe reliable energy technologies and a
secure, prosperous future for Americans.  Source: U.S. Newswire 1/29/2001 via EIN Renewable Energy Today 2/1/2001.

Texas Renewable Energy Education Campaign Officially Launched
A long-awaited media campaign to educate Texans about the benefits and potential of renewable energy was launched last week.  About 30 people met for a day-long charrette to design the campaign, under the theme "Renewable Energy--The Infinite Power of Texas."  This effort continues the campaign  begun back in 1997 when the State Energy Conservation Office (SECO) funded development of an informational video narrated by Dan Rather, along with a printed brochure, fact sheets and an interactive web site.  Under this new round of funding, SECO will support widespread dissemination of information materials and key campaign messages to Texans.  Pam Groce, SECO Renewable Energy Program Manager, said the 2001 campaign will focus on placing new public service announcements on radio and TV stations throughout the state, updating the existing fact sheets and web site, creating new renewable-energy lesson plans for teachers and participating in renewable energy-related events.  CSG Services Inc., of Texas has been selected by SECO as the prime contractor for implementing the campaign. CSG Services is a leading national provider of energy efficiency and renewable energy solutions to commercial, industry and government clients.  For more information about the campaign, contact Steve Wiese of CSG Services at 512.327.6830 x 104 steve.wiese@csgrp.com , or Pam Groce of SECO at  512.463.1889,  pam.groce@cpa.state.tx.us .  Source: Going Solar E-Newsletter 2/7/2001

DR Workshop Sponsored by Western and the U.S. Department of Energy's Federal Energy Management Program
A workshop on distributed energy resources, sponsored by the U.S. Department of Energy's Federal Energy Management Program
(FEMP), will be held on Mar 6-8, 2001 in Anaheim at the Anaheim Hilton Hotel located at 777 Convention Way, Anaheim, CA 92802, (800) 222-9923.  The series is sponsored by: Anaheim Public Utilities, Bonneville Power Administration, City of San Jose, Emerald PUD, Energy Co-Opportunity, Enron, IBEW, Silicon Valley Power, USDOE (FEMP) Western Area Power Administration.  To register for the workshop contact the conference coordinator at:  571-212-8373 or gnelson181@aol.com .
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For more information on Educational Resources go to: http://www.thegateway.org
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News from Washington

President George W. Bush’s Energy Policy
During the Presidential campaign, George W. Bush released his Energy Policy Plan. The plan consists of six themes:
-Protecting the environment and promoting alternative energy sources
-Assisting low-income households with their energy bills
-Addressing short term supply threats
-Promoting development of U.S. oil and gas resources
-Prioritizing energy security as part of the U.S. foreign policy
-Fulfilling the electricity demands of the new economy
The main priority in the Bush energy policy is to fulfill the electricity demands of the immediate future. The Bush energy policy also strongly promotes alternative energy sources. In particular, the use of renewables including alternative fuels is encouraged. Bush plans to use bid bonuses from exploration in ANWR and other federal lands to fund basic research on alternative fuels. In addition, $1.4 billion will be allocated in tax credits over ten years for electricity from renewables and alternative fuels. Mapping the President’s views on supporting alternative fuels, Senate Republicans will be launching a bill on February 4, 2001. The Bill, sponsored by Senator Frank Murkowski among others, promotes the use of alternative fuel vehicles by awarding the users access to rush-hour commuter lanes (refer to the full story in “In the News” section). Link to the full Bush Energy Policy at: http://www.georgewbush.com/issues/energy.html  .  Source: February 2001 - Biobased Products and Bioenergy Newsletter

New Secretary of Energy - Secretary Spencer Abraham
On January 20, 2001, Spencer Abraham was sworn in as the 10th Secretary of the U.S. Department of Energy.  In a January 18, 2001, hearing of the Committee of Energy and Natural Resources, Secretary Abraham identified five priority areas. These included:
-Increasing the domestic production of energy in an environmentally responsible manner
-Increasing the use of renewable energy
-Decreasing the reliance on imported oil
-Conserving fossil fuels
-Reducing energy-related pollution
Link to the Secretary’s entire testimony at:  http://energy.senate.gov/hearings/107-1/full_committee/abraham/abraham.htm  .
Source: February 2001 - Biobased Products and Bioenergy Newsletter
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For more information on legislative activities go to: http://www.kannerandassoc.com/fedenergybills.html
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Marketing & Market Research

U.S. Census Bureau Information
Looking for U.S. Census Bureau information, check out   http://www.census.gov/  .  The Annual Capital Expenditures Survey is part of a comprehensive program designed to provide more detailed and timely information on capital investment in new and used structures and equipment by nonfarm businesses. The survey is based on a sample of approximately 34,000 companies with one or more employees and approximately 12,000 non-employers. The survey results are reported for 97 separate industry categories based on 2-digit and selected 3-digit Standard Industrial Classification (SIC) codes.  For more information see web site at:
http://www.census.gov/csd/ace/index.html  .

STAT-USA Internet, A Service of The U.S. Department of Commerce
STAT-USA/Internet, a service of the U.S. Department of Commerce, is the site for the U.S. business, economic and trade community, providing authoritative information from the Federal government.  State of the Nation -- Access this area for current and historical economic and financial releases and economic data. Stay informed with direct access to the Federal Government's wealth of information on the U.S. Economy.  http://www.stat-usa.gov/  .
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For more information on marketing and research go to:  http://www.nrel.gov/analysis/emaa/index.html
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Grants, RFPs & Other Funding News

California Adds $404 Million in New Energy-Saving Programs
California Governor Gray Davis announced last week that the state will spend more than $800 million this year to encourage energy efficiency and electrical load reductions.  A new program, funded at $404 million, will augment the $424 million in programs already being carried out through the California Energy Commission and the Public Utilities Commission. The new program includes an additional $75 million in rebates for consumers who replace inefficient appliances, $50 million to improve energy efficiency in state
buildings, and $50 million for reflective lighting and roofs, improved shading, and other measures for commercial buildings. See the Governor's February 1st press release by selecting "Press Releases" at: http://www.governor.ca.gov/state/govsite/gov_pressroom_main.jsp  .  Source: EREN Network News 2/7/2001

DOE Announces Agriculture Biobased Products Team R&D Solicitation
On January 29, 2001, the U.S. Department of Energy’s Idaho Operations Office issued a solicitation for 3 to 5 cooperative awards for innovative cost-shared research, development and demonstration of technologies in the bioproducts industry. Funding of up to $1.5 million each year will be provided for each award, with a duration of approximately 3-5 years. The proposal will address a minimum of three out of the four areas identified in the Technology Roadmap for Plant/Crop-Based Renewable Resources 2020, which include plant sciences, production, processing, and utilization. Proposals are due by March 28, 2001. Link to the solicitation at: http://e-center.doe.gov/  .  Source: February 2001 - Biobased Products and Bioenergy Newsletter

USDA Announces $30 Million in Investment in Rural America
On January 17, 2001, USDA announced the availability of $30 million from its Fund for Rural America. The fund supports research, education and development efforts in rural communities. Out of the $30 million, $10 million will be used for rural development strategies. Some of the many strategies include establishing a format for sharing biomass and ethanol information resources, and developing market development programs. The remaining $20 million in funds is planned for programs promoting business and economic development, outreach efforts, cooperative developments, and natural resource and conservation efforts. In addition, up to $600,000 will be available for proposals that address rural community vitality and increased economic development including locally-grown, value-added processing facilities. Link to the press release at: http://www.usda.gov/news/releases/2001/01/0019.htmSource: February 2001 - Biobased Products and Bioenergy Newsletter

Environmental Intern Program
The Environmental Protection Agency’s Office of Environmental Justice is inviting applications to provide on the job training at EPA or other facilities for college and university students interested in careers in environmental protection.  $500K available, student stipends range from $400 – $700 a week.  Responses due 2/23/01.  For more info, contact Linda Smith, EPA, at (202) 564-2602 or see the Federal Register notice.  (Federal Register 1/8/01). The Seattle Regional Office of the U.S. Department of Energy 1/22/2001.

Energy Biosciences
The U.S. Department of Energy invites preapplications for research funding in the Energy Biosciences program area.  Areas of interest include, but are not limited to, basic biochemical, genetic and physiological investigations that may contribute towards providing alternate fuels, petroleum replacement products, energy conservation measures as well as other technologies related to DOE programs.  Preapplications due 3/1/01, formal apps due 6/13/01.  For more info, contact Ms. Pat Snyder, DOE, at (301) 903-2873.  (Federal Register 1/3/01).  The Seattle Regional Office of the U.S. Department of Energy 1/22/2001.
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For more information on funding solicitations go to: http://www.access.gpo.gov/nara/index.html
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