Show Me the Money (and the Light): $37 Million for Solid State Lighting
The Department of Energy today announced the award of more than $37 million in American Recovery and Reinvestment Act funds to 17 projects supporting solid-state lighting core research, product development, and domestic manufacturing.
Solid-state lighting, which uses light-emitting diodes (“LEDs”) and organic light-emitting diodes (“OLEDs”) instead of incandescent bulbs, has the potential to be ten times more energy-efficient than traditional incandescent lighting.
Lighting needs account for almost one-quarter of the total electricity used in the United States today. Those needs could be reduced by as much as one-third by 2030 if cost-effective solid-state lighting is adopted on a national basis.
Link to the full story and the list of selected projects: http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=287
Show Me the Money: $47 Million for Efficiency in IT & Communications
Today Energy Secretary Chu announced that the Department of Energy will award $47 million for 14 nation-wide projects that will support the development of new technologies improving energy efficiency in the information technology (IT) and communications sectors – specifically, data processing, data storage, and telecommunications industries. The increase in energy consumption in these sectors is a direct corollary of the industries’ brisk expansion. Improving energy efficiency will provide significant energy and cost savings.
Zino Green Investment Forum
The ZINO Society, a Seattle-based angel investment group, announced last week that its annual “ZINO Green Investment Forum” would be held on March 4, 2010, at the McKinstry Innovation Center in Seattle. Up to fifteen early-stage companies in “green tech, clean tech, and sustainable products or services” will be selected by the ZINO Green screening board to present their businesses to angel investors and business leaders attending the investment forum. Finalists will be selected to compete for a $50,000 award from ZINO’s investment fund.
Last year’s winner of ZINO Society’s $50,000 GreenFund award was Hydrovolts, the developer of a hydrokinetic turbine. After winning the award last year, Burt Hamner, CEO of Hydrovolts, stated that “Our new technology makes it possible to generate renewable energy from fast water currents that could not be tapped before, using a really novel turbine design. It’s a challenge to explain [our technology] quickly and the presentation, coaching and business model feedback we received from ZINO Society members was incredibly helpful.” Hydrovolts went on to win the 2009 Clean Tech Open National Sustainability Award.
Stoel Rives has been a proud sponsor of The Zino Society since its inception.
The application to apply to present at ZINO Green may be found at https://angelsoft.net/angel-group/zino-society. More information about the event is available at ZINO’s website http://www.zinosociety.com/calendar/1143/ or by contacting Rob Brown at r.brown@zinosociety.com or 206-621-0466.
U.S. Department of Energy Announces Final Rule Amending Regulations for Loan Guarantee Program
On December 7, 2009, Energy Secretary Steven Chu announced the issuance of a final rule amending the October, 2007 Final Regulations implementing the Loan Guarantee Program under Section 1703 of Title XVII of the Energy Policy Act of 2005 (the "Section 1703 Program"). The amendments implemented through the final rule were first identified in a Notice of Proposed Rulemaking and Opportunity for Comment issued by the Department of Energy ("DOE") on August 7, 2009. The comment period for the proposed amendments ended on September 22, 2009; the comments received by the DOE from the industry and other interested parties were largely supportive of the proposed amendments.
In a nutshell, the amendments to the regulations outlined in the final rule are designed to:
- provide flexibility in the determination of an appropriate collateral package to secure the guaranteed loan obligations;
- eliminate the requirement that the Secretary receive a first priority lien on all project assets as a condition for obtaining the loan guarantee;
- facilitate collateral sharing and related intercreditor arrangements with other project lenders; and
- provide a more workable interpretation of certain statutory provisions regarding DOE's treatment of collateral that is more consistent with the intent and purposes of Title XVII.
By way of background, the impetus for the amendments to the regulations arose from what could be characterized as a "stalled" effort to actually provide the loan guarantees contemplated under the Section 1703 Program. This stalled effort was due to the fact that, among other things, the regulations did not provide enough flexibility to allow for a wide variety of ownership and financing structures needed for the types of projects that could have benefitted from the Section 1703 Program. The Section 1703 Program is focused on (1) encouraging commercial use in the U.S. of new or significantly improved energy-related technologies, and (2) achieving substantial environmental benefits. Through this program, the DOE believes that the commercial use of these technologies will help sustain and promote economic growth, produce a more stable and secure energy supply and economy for the U.S. and improve the environment.
EPA's Region 10 Awards over $1.6M to Portland to Reduce Diesel Emissions
Similar to the July 21, 2009 U.S. Environmental Protection Agency's ("EPA") Region 5 award, EPA's Region 10 has awarded over $1.6 million to reduce emissions from Portland municipal fleet vehicles and construction contractor equipment. The funds are provided under the American Reinvestment and Recovery Act of 2009 ("ARRA") National Clean Diesel Funding Assistance Program. Under this funding competition, EPA Region 10 received over 49 grant applications requesting over $80 million to help fund clean diesel emission projects.
In addition to reducing diesel emissions from municipal fleet vehicles and construction contractor equipment, this project will fund installation of fuel operated heaters--and idle reduction technology--on 247 vehicles in Portland and Multnomah County diesel fleets as a strategy for reducing diesel emissions while also decreasing fuel costs and climate pollution.
EPA estimates that this award will create or sustain an estimated 34 manufacturing and local installation jobs and will help Oregon municipalities and their contractors decrease operating costs by achieving fuel savings.
EPA Awards More Than $5.7M to Reduce Diesel Emissions and Create Jobs
Today, the US. Environmental Protection Agency (the "EPA") Region 5 has awarded millions of American Recovery and Reinvestment Act of 2009 ("ARRA") dollars to the Wisconsin Department of Commerce and the American Lung Association of the Upper Midwest for the reduction of diesel emissions. The funds are provided under the ARRA National Clean Diesel Funding Assistance Program under which EPA Region 5 had received 81 grant applications requesting more than $211 million to help fund clean diesel emission projects.
To the American Lung Association, EPA Region 5 awarded $3.7 million for on-road and non-road diesel projects that will reduce diesel emissions for 502 vehicles in 22 public and private fleets, including school buses, long-haul trucks, short-haul trucks, construction vehicles and municipal vehicles. Technologies include repowers (engine replacement with cleaner engines), retrofits, and idle reduction. For information on the American Lung Association of the Upper Midwest, visit www.lungum.org.
To the Wisconsin Department of Commerce, EPA Region 5 awarded $2 million to help heavy-duty diesel truck owners reduce idling time. Using the Wisconsin Department of Commerce's Diesel Truck Idling Reduction Grant Program as a platform, this funding will help heavy-duty diesel truck owners purchase and install EPA-verified idle-reduction technologies. Technologies include auxiliary power units and generator sets, battery air conditioning systems, thermal storage systems, and fuel-operated heaters. At least 444 trucks will be impacted. For more information about the Wisconsin Department of Commerce program, visit commerce.wi.gov/bd/BD-CA-Diesel-Grant-Program.html.
ARRA alloted the National Clean Diesel Campaign a total of $300 million, of which the National Clean Diesel Funding Assistance Program received $156 million to fund competitive grants across the nation. ARRA also included $20 million for the National Clean Diesel Emerging Technology Program grants and $30 million for the SmartWay Clean Diesel Finance Program grants. For information about EPA's clean diesel initiatives, visit www.epa.gov/cleandiesel
Western Governors Consider Regional and National Polices Regarding Global Climate Change
At the Western Governors' Association Annual Meeting on June 15, 2009, the Western Governors heard a sobering and candid report from Secretary of Energy Steven Chu, which, at its core, indicated that climate change is real and happening faster than scientists previously warned. According to Secretary Chu, "the news is getting scary . . . but the most scary thing in my mind is the [scientific] observations. People can be entitled to their own opinions, but they are not entitled to their own facts." A few of the observations cited by Secretary Chu included the following:
- Loss of 1/2 of the Northern polar ice cap in the last 10 years
- Sea level rise
- 40% of the British Columbia pine is dead
- Extreme water stress in the Western United States (with exception to the Pacific Northwest) as a result of decreased snow pack and changing weather patterns
Secretary Chu was particularly concerned with the continued melting of the permafrost in the Northern Hemisphere, which he predicted could have "runaway effects" due to the massive release of CO2 and methane from the biomass that has accumulated over time.
President of the World Bank, Robert B. Zoellick, also participated in the discussion on climate change, indicating that the rule making that will be necessary for implementing climate change policies will stay with us for decades and will be some of the "toughest negotiations" he has ever seen. Mr. Zoellick stressed the importance of having the Governors plugged into the rule making process since this will be the framework that the states will have to live with. There was also an acknowledgment among the group that the farmers and ranchers are skeptical about climate change, but that this is a key stakeholder group that needs to be part of the equation. Governor Bill Richardson commented that the key will be the creation of a carbon offset market that will work. Secretary of Agriculture, Tom Vilsack, concurred indicating that a carbon offset market will be critical to the survival of rural communities.
The climate change discussion continued during the morning session on June 16, 2009, following presentations from Dr. Susan Shirk, Director of the University of California Institute on Global Conflict and Cooperation, University of California, San Diego, and Eric Heitz, President of The Energy Foundation. The presentations focused on the potential for the United States and China to jointly lead the way forward in Copenhagen and beyond with respect to global climate change policies. However, some of the challenges cited by Dr. Shirk and Mr. Heitz included:
- China and the U.S. have used each other as reasons not to commit to climate change policies
- China believes the U.S. and other developed countries should lead the way in implementing climate change policies
- While there is an opportunity for increased relations between the U.S. and China, we could also see China balk due to suspicions that the U.S. is trying to slowdown the Chinese economy
- Both countries have domestic policies that will need to be managed
- Some of China's provincial governments prefer to concentrate on economic growth versus policies that will slow that growth
- China is trying to bring 1 billion people out of poverty
Despite these challenges, the key in achieving success with China will be to understand and build on China's motivations, which include, among others, resolving local water and air pollution issues that have given rise to health concerns and China's desire to be the world leader in green technology development.
Eric Heitz debunked the myth that "China is not doing anything on clean energy or climate change" by demonstrating that China has already adopted an ambitious suite of clean energy policies. According to Mr. Heitz:
- China made a $12 billion investment in renewable energy in 2007
- In 2005, China initiated a renewable portfolio standard that resulted in doubling installed wind capacity in 2006, and which doubled again in 2007
- China has initiated its own "green stimulus" package by commiting $221 billion (which of 5% of China's 2008 GDP) in furthering "green technology"
- China is positioning itself to be a competitor in the world auto market through the manufacture of electric vehicle
During this discussion, the Western Governors identified a WGA initiative aimed at working with the Chinese provincial governments and an organized trip to China to engage in those efforts. President Obama's appointment of Governor Jon Huntsman as the ambassador to China, will certainly be instrumental in setting the ground work for the WGA's work in China.
On a final note, the Western Governors adopted two important policy resolutions aimed Global Climate Change Policies:
- Western Governors' Association Policy Resolution 09-2 (Supporting the Integration of Climate Change Adaptation Science in the West)
- Western Governors' Association Policy Resolution 09-3 (Regional and National Policies Regarding Global Climate Change)
Annual Meeting of the Western Governors' Association: June 14-16, 2009, Park City, Utah
The Western Governors' Association ("WGA") will hold its annual meeting in Park City, Utah on June 14-16, 2009. Based on a review of the Agenda posted to the WGA's website, the focus of the meeting will be on developing regional and global strategies for addressing important issues related to energy resources, climate change and water. I will be attending the annual meeting this year and reporting on the outcome of discussions on the following topics:
On June 14, 2009, there will be a panel discussion on policies and technologies to address water use in an era of declining water supplies due to climate change. Panelists include: Dr. Peter H. Gleick, co-founder and president of the Pacific Institute; Professor Eilon Adar, Zuckerberg Institute for Water Resources, Ben-Gurion University of the Negev; Doug Miell, Principal, Miell Consulting; Cameron J. Brooks, Ph.D., Director of Solutions and Business Development for IBM Corporation's Big Green Innovations initiative.
On June 15, 2009, Secretary of Agriculture Tom Vilsack, Secretary of the Interior Ken Salazar, Secretary of Energy Steven Chu and FERC Chairman Jon Wellinghoff will provide their perspectives on developing large amounts of clean energy in the West and the transmission lines needed to bring it to market. Following their remarks, they and the Governors will have the opportunity to discuss what cooperation is needed between states and the federal government to accelerate progress. An outline of discussion points that might be expected from the Governors during this session could include topics addressed in the letter dated May 1, 2009 from the WGA to the Senate Energy & Natural Resources Committee.
In addition, there will be a panel discussion on international, U.S. and regional strategies for addressing climate change. Panelists for this discussion include: Robert B. Zoellick, President of The World Bank; Joan Ruddock, British Member of Parliament and Parliamentary Under Secretary of State for Energy and Climate Change; Steven Chu, Secretary of Energy; and Nancy Sutley, Chair of the White House Council on Environmental Quality. Attendees at the conference will also have the opportunity to hear a briefing from Dr. Jane Lubchenco, Administrator of National Oceanic & Atmospheric Administration, on "Creating a National Climate Service."
On June 16, 2009, Susan Shirk, Director of the University of California Institute on Global Conflict and Cooperation, University of California, San Diego, will be a Keynote speaker, followed by a panel discussion on ways national and subnational governments can cooperate to expedite the deployment of new technologies and policies to address energy and climate change. Panelists include: Eric Heitz, President of The Energy Foundation; Susan Shirk, Director of the University of California Institute on Global Conflict and Cooperation; Charles Freeman, Freeman Chair in China Studies at the Center for Strategic and International Studies.
The meeting is being hosted by Utah Governor and Western Governors' Association Chairman Jon M. Huntsman, Jr., and his wife Mary Kaye and Lt. Governor Gary Herbert. Expected at the meeting are eleven Western Governors and three Western Canadian Premiers and 500 attendees including Obama Administration officials, other VIPs and industry and non-governmental leaders from around the West, across the country and around the world.
