EERE: Automaker Loans, Recovery Act Funds, and Offshore Wind Power Leasing

A weekly newsletter from the U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE). The EERE Network News is also available on the Web at: www.eere.energy.gov/news/enn.cfm June 24, 2009 News and Events Clean Energy Emphasized at the Americas Energy and Climate Symposium DOE Awards $8 Billion in Loans for Advanced Vehicle Technologies DOE Delivers $453 Million in Recovery Act Funds for Weatherization DOE Awards $49 Million for Clean Energy in Michigan and Iowa Offshore Wind Power Leases Issued for Delaware and New Jersey Coasts Report: Demand Response Could Cut U.S. Peak Power Demand by 20% Energy Connections Copenhagen Report: "Climate Inaction is Inexcusable"

News and Events Clean Energy Emphasized at the Americas Energy and Climate Symposium Energy efficiency and renewable energy were the major focus of energy ministers and other government leaders from throughout the Americas last week, as they converged on Lima, Peru, for the Americas Energy and Climate Symposium. At the symposium, U.S. Energy Secretary Steven Chu announced a Low Carbon Communities Program, which will assist countries in developing energy efficiency and renewable energy programs that will reduce the carbon footprint of their urban communities. Through the initiative, DOE will partner with participating countries to develop building energy standards and to adopt modern urban planning strategies, including transit-oriented development. DOE will provide technical assistance and limited funding to help achieve those goals. Energy leaders also announced the development of a Regional Energy Efficiency Center, supported by Peru, and a Regional Wind Center, supported by Mexico. The symposium was the first major energy event after the Summit of the Americas in April, where President Barack Obama announced the formation of the Energy and Climate Partnership of the Americas (ECPA). The president invited all Western Hemisphere countries to be part of a united effort under the ECPA, and since then, the regional response has been overwhelmingly positive across all five elements of the ECPA: energy efficiency, renewable energy, cleaner fossil fuels, critical infrastructure, and energy development to help alleviate poverty. The Americas Energy and Climate Symposium took place on June 15 and 16 and was hosted by the Government of Peru. See the symposium announcement from the Institute of the Americas and the DOE press release. DOE also announced on Tuesday that Energy Secretary Chu has signed a Memorandum of Cooperation with Minister Marcelo Tokman of the Chilean National Energy Commission to further collaboration between the two nations. The memorandum establishes an institutional framework between Chile and the United States, allowing DOE to provide its technical expertise in support of a new Renewable Energy Center in Chile. The new center will work to identify developments and best practices in renewable energy technologies from around the world, disseminating its findings within Chile and throughout the region. The two countries will also collaborate on other high-priority energy issues, including energy efficiency technologies and the establishment of two pilot solar power projects in northern Chile. See the DOE press release. DOE Awards $8 Billion in Loans for Advanced Vehicle Technologies Energy Secretary Chu announced the loans to Ford employees in Detroit, Michigan. Credit: DOE DOE announced $8 billion in conditional loan agreements on Tuesday for Ford Motor Company; Nissan North America, Inc.; and Tesla Motors, Inc. to fund the development of advanced vehicle technologies. The loan commitments include a $5.9 billion loan to Ford for upgrading factories in five states to produce 13 more fuel-efficient models, a $1.6 billion loan to Nissan to build advanced electric vehicles and advanced batteries, and a $465 million loan to Tesla Motors to manufacture its new electric sedan. These are the first conditional loans released under DOE's Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which is using an open, competitive process to provide about $25 billion in loans to companies that produce cars or vehicle components in the United States. To qualify, companies must propose projects that increase fuel economy to at least 25% above 2005 fuel economy levels. Ford Motor Company will receive its loans through 2011, using the funds to upgrade its engine plants in Dearborn, Michigan; Cleveland, Ohio; and Lima, Ohio, and to upgrade its transmission plants in Livonia, Michigan; Sterling Heights, Michigan; and Sharonville, Ohio. Ford will also upgrade its assembly plants in Chicago, Illinois; Louisville, Kentucky; Dearborn, Michigan; Wayne, Michigan; and Kansas City, Missouri, converting two of the truck factories into assembly plants for cars. In addition, the Ford loans will finance advances in traditional combustion engines and electrified vehicles and help raise the fuel efficiency of more than two dozen popular models. Nissan aims to manufacture a cost-competitive electric vehicle with a lithium-ion battery pack in Smyrna, Tennessee, and plans to eventually reach a production capacity of 150,000 vehicles per year. Tesla Motors will use its funding to finance a California-based manufacturing facility for the Tesla Model S sedan, an all-electric sedan that can be recharged at a conventional 120-volt or 220-volt outlet. Production will begin in 2011 and ramp up to 20,000 vehicles per year by the end of 2013. See the DOE press release and the ATVM Loan Program. DOE Delivers $453 Million in Recovery Act Funds for Weatherization DOE delivered more than $453 million in funds from the American Recovery and Reinvestment Act to 14 states and the District of Columbia last week, allowing those states to dramatically expand their weatherization assistance programs. The programs improve the energy efficiency of the homes of low-income families, helping the families to lower their energy bills. The new funds will help the states achieve their collective goal of weatherizing 165,000 homes, creating new green jobs while helping to reduce greenhouse gas emissions. States may spend up to 20% of the funds to hire and train new workers. In addition to the District of Columbia, DOE delivered the funds to California, Delaware, Florida, Maryland, Montana, Nebraska, Nevada, North Carolina, North Dakota, Ohio, South Carolina, South Dakota, Utah, and West Virginia. The new funds represent 40% of the total weatherization funds available to those states under the Recovery Act and follow the award of 10% of the funds in March to support planning and ramp-up activities. The states join Arizona, Kansas, Mississippi, and Oregon in receiving half of the funds available to them under the Recovery Act. The second half of the weatherization funds will be released when the states meet the reporting, oversight, and accountability milestones required by the Recovery Act. Details on the funds awarded to each state, as well as the weatherization goals set by each state, can be found in the DOE press release. See also the Web site for DOE's Weatherization Assistance Program. DOE Awards $49 Million for Clean Energy in Michigan and Iowa DOE announced on Monday its award of more than $49 million in American Recovery and Reinvestment Act funding to support energy efficiency and renewable energy projects in Michigan and Iowa. Under DOE's State Energy Program, states have proposed plans to prioritize energy savings, create or retain jobs, increase the use of renewable energy, and reduce greenhouse gas emissions. Michigan will receive more than $32.8 million to focus on four three-year goals: reducing energy use in public buildings by 20% by 2012, creating markets for renewable energy systems, establishing green communities, and creating green jobs. Iowa will receive more than $16.2 million to expand the Building Energy Smart Iowa Program, including funds for workforce training and public information projects. Iowa plans to provide grants of up to $100,000 to public, private, and non-profit entities across the state for energy training, with monitoring provided by Iowa Workforce D evelopment. The funds are part of the Obama Administration's national strategy to support job growth while making a historic down payment on clean energy. The Recovery Act appropriated $3.1 billion to the State Energy Program, giving priority to achieving national goals of energy independence while helping to stimulate local economies. For Michigan and Iowa, the new funds represent 40% of the State Energy Program funds available to them under the Recovery Act, following an initial 10% of the funds that were awarded to support planning activities. The second half of the funds will be released when the states meet the reporting, oversight, and accountability milestones required by the Recovery Act. See the DOE press releases for the funding awarded to Iowa and Michigan. Offshore Wind Power Leases Issued for Delaware and New Jersey Coasts The new exploratory leases may spur the development of offshore wind power in the United States. Credit: GE Energy The U.S. Department of the Interior issued five exploratory leases on Tuesday for wind power development off the coasts of Delaware and New Jersey. The first-ever federal leases for offshore wind power in the United States were awarded to Deepwater Wind, LLC; the Delaware and New Jersey subsidiaries of Bluewater Wind LLC; and the New Jersey subsidiary of Fishermen's Energy LLC. The leases authorize data gathering activities, allowing for construction of meteorological towers on the Outer Continental Shelf at sites that range from 6 to 18 miles offshore. (Back in 2002, Cape Wind Associates received approval from the U.S. Army Corps of Engineers to erect a meteorological tower off the coast of Massachusetts, but the federal process at that time did not involve a lease.) The new leaseholders will share their data with the Interior Department's Minerals Management Service (MMS) to help the agency evaluate future offshore wind power proposals. See the Interior Department press release, the MMS Renewable Energy Program Web site, and for reference, the Cape Wind press release from 2002. The exploratory leases are a key step for a number of proposed projects, including one off the coast of Delaware and four off the coast of New Jersey. Bluewater Wind proposes to build a 450-megawatt (MW) wind power facility off the coast of Delaware and a 350-MW wind power facility off the coast of New Jersey. Other New Jersey projects include a 330-MW wind power facility proposed by Fishermen's Energy and a 350-MW project proposed by Deepwater Wind and PSEG Renewable Generation, under a partnership called Garden State Offshore Energy. Report: Demand Response Could Cut U.S. Peak Power Demand by 20% The extensive use of demand response could potentially cut the peak power demand in the United States by up to 20% in the next decade, according to a new report from the Federal Energy Regulatory Commission (FERC). Demand response gives utilities the ability to cut large commercial and industrial loads and to control other customer's use of air conditioning, refrigeration, and other large electrical appliances. For instance, demand response could cause your air conditioner to delay its next cycle or to cycle less often in times of high demand, usually in exchange for a credit on your power bill. More sophisticated means of demand response include the use of smart meters and "dynamic" utility pricing that varies with demand, so that customers are motivated to reduce or delay their electrical use during times of peak demand. The new FERC report examines four scenarios: business as usual, which follows current trends in demand response; expanded business-as-usual, in which all states offer demand response programs, more customers participate, smart meters are partially deployed, and 5% of customers choose dynamic pricing; the "achievable participation" scenario, in which everyone has smart meters, dynamic pricing is the default, and other demand response programs are available for those who opt out of dynamic pricing; and the full participation scenario, which is an estimate of how much cost-effective demand response would take place if everyone had smart meters and participated in dynamic pricing, with help from such devices as "smart" thermostats and appliances that respond to utility prices. FERC acknowledges that the full participation scenario is more a measure of what is possible to achieve rather than what is practically achievable. Looking ahead to 2019, the FERC report projects a 38-gigawatt (GW) reduction in peak load under business as usual, equal to 4% of the projected peak load; an 82-GW peak load reduction under expanded business-as-usual, equal to 9% of peak load; a 138-GW peak load reduction under the achievable participation scenario, equal to 14% of peak load; and a 188-GW peak load reduction under the full participation scenario, which yields a 20% reduction in peak load. The full participation scenario results in essentially no growth in U.S. peak power demand over the next decade. In this scenario, much of the load savings is achieved through dynamic pricing, combined with smart devices. The FERC report also includes a state-by-state breakdown of the four scenarios, providing a guide for legislators and utility commissioners as they evaluate their policy options for demand response. See the FERC press release and the full report (PDF 16 MB). Download Adobe Reader.

Energy Connections Copenhagen Report: "Climate Inaction is Inexcusable" The most up-to-date report on climate science notes that global temperatures, sea levels, and frequency of extreme weather events are all increasing beyond the patterns of natural variability within which our contemporary society and economy have developed. That doesn't bode well for the future of global economies and of civilization itself, nor on the ecosystems that our civilization depends on, unless global societies rise to meet the challenge of climate change. The report, based on a scientific congress held in Copenhagen in March, is an attempt to update the 2007 synthesis report from the Intergovernmental Panel on Climate Change (IPCC), which has already become outdated. For instance, the IPCC report acknowledged a lack of understanding of the dynamic processes that cause polar ice to melt, so the report left those effects out and projected a sea level rise of up to 59 centimeters (23 inches) by 2100. New observations have nearly doubled that projection to one meter, or 39 inches, an increase that would threaten many islands, shorelines, and low-lying wetlands. The report also provides updates on our understanding of ocean surface temperatures and heat content, indicating that ocean warming is about 50% greater than the IPCC had reported. The new report also notes the rapid reduction in Arctic sea ice in the summer. It also notes that a decreasing amount of carbon dioxide emissions are removed by natural "carbon sinks" on land and in the ocean, thereby amplifying the effect of future carbon dioxide emissions. Meanwhile, new studies have shown that societies and ecosystems are highly vulnerable to even modest levels of climate change, and a global temperature rise of more than 2°C above pre-industrial levels will cause "major societal and environmental disruptions." To help mitigate these disruptions, the world must limit its greenhouse gas emissions through such measures as heavily promoting energy efficiency while shifting to low-carbon energy sources, such as renewable energy. The report also identifies the eastern half of the United States as one of two critical agriculture centers for the future of the world. Given the availability of a wide range of tools and approaches to deal with climate change, the report concludes that "inaction is inexcusable." See the press release from the Potsdam Institute for Climate Impact Research and the full re port (PDF 5.6 MB). Download Adobe Reader.

This newsletter is funded by DOE's Office of Energy Efficiency and Renewable Energy (EERE) and is also available on the EERE Web site. If you have questions or comments about this newsletter, please contact the editor, Kevin Eber. This service is provided to you at no charge by DOE's Office of Energy Efficiency & Renewable Energy (EERE). Visit the Web site at http://www.eere.energy.gov.

 

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