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Energy Policy (3-08-10) 
Energy policy incorporates a wide range of issues. Many of which are important to the geoscience community, including exploration and discovery, research and development related to fossil fuels and alternative energy resources, resource development on public lands, environmental concerns, and climate change. Nuclear energy, nuclear waste disposal and non-proliferation issues are also key issues in energy policy. However, due to their complexity, the AGI Government Affairs Program maintains a separate page for nuclear policy. Policymakers are working to better integrate policy for all forms of energy resources. The 111th Congress and the new Administration will continue to consider energy policy as a major area of concern, and essential for economic growth, national security, international relations, energy efficiency, sustainability, and overall quality of life. Besides working on comprehensive energy policy, policymakers will also continue on policy from the 110th Congress tackling how to best meet the energy needs of Americans while considering other natural resources, such as the global climate, water, soils and ecosystems. House Committee Seeks Information on Fluids Used in Hydraulic Fracturing(2/10) The chemicals used in hydraulic fracturing are not regulated, however there is a voluntary agreement between Halliburton, BJ Services and Schlumberger Technology Corporation with the Environmental Protection Agency (EPA) restricting use of diesel-based fluids. After the first letter writing campaign by Waxman, Halliburton and BJ Services responded that 807,000 and 2,500 gallons respectively of diesel-based fluids were used in their fracturing ventures—potentially violating the EPA agreement. In the most recent letters, Halliburton and BJ services received requests for more chemical information, as did Schlumberger Technology Corporation and many smaller companies. Copies of the letters are available here. Obama Announces an Interagency Task Force on Carbon Capture and Storage (2/10) The task force will be named within 180 days of this announcement and then begin developing a comprehensive plan to develop cost-effective CCS within 10 years, with 5-10 commercial demonstration projects online by 2016. The task force will look at coordinating existing administrative authorities and programs, including building international collaboration on CCS. Obama named comprehensive energy and climate legislation as the largest incentive for CCS, and this task force will prepare for the low carbon energy transition and spur investments into CCS in the near future.
Interior Launches Oil and Gas Leasing Reforms (1/10) The full press release is available from DOI. House Passes Energy and Water Research Bill (12/09) The bill has now goes to the Senate Energy and Natural Resources Committee for consideration. DOE Announces $366 Million for 3 Energy Innovation Hubs (12/09) The Department of Energy (DOE) plans to invest up to $366 million to establish and operate three new Energy Innovation Hubs focused on: 1) fuels from sunlight, 2) energy efficient building design, and 3) computer modeling and simulation of advanced nuclear reactors. Each hub will receive $22 million the first year and up to $25 million per year for the following four years. The goal is for a multidisciplinary team of researchers to conduct high-risk research in a single area to accelerate research and commercial deployment of highly promising energy-related technologies. “The DOE Energy Innovation Hubs represent a new, more proactive approach to managing and conducting research. We are taking a page from America’s great industrial laboratories in their heyday,” said Energy Secretary Steven Chu. The centralized and focused hubs will be complemented by the Energy Frontier Research Centers (EFRC) and Advanced Research Projects Agency-Energy (ARPA-E). The EFRCs work on collaborations to make an easier transition from basic science research to game-changing discoveries. ARPA-E funds diverse research with the potential for high reward that would otherwise be too risky for industry or other programs to fund. Originally Chu wanted eight hubs, but Congress felt they were too redundant and only allocated money for one. However, Chu shuffled existing money around to ultimately fund these three, though at a reduced starting budget from the orignial $35 million. Information on the implementation plan and strategy for managing the hubs is on the DOE Energy Innovation Hubs web site: http://hubs.energy.gov International Report on Energy Outlook (11/09) Within the IEA scenario, demand for fossil fuels is projected to peak in 2020, however, fossil fuels will still contribute about 70 percent of global energy in 2030. The financial crisis reduced oil demand in 2009, but also led to a $90 billion cut in investments in oil and gas exploration and development. This may lead to fewer supplies to meet growing demand and thus higher prices in the future. Natural gas is predicted to play a significant role in transitioning to a low-carbon energy economy. The huge boost in North American unconventional gas discoveries and production (primarily oil shale) makes natural gas a “transition fuel” to a clean energy economy in this world outlook. DOE Awards $151 Million in First Round of ARPA-E Projects (11/09) In response to the original call for ARPA-E proposals in April, about 3,600 concept papers were submitted. Of those, ARPA-E requested full applications for 300 proposals and ultimately selected 37 for funding. This first round is only a portion of the $400 million President Obama announced for ARPA-E as part of the American Recovery and Reinvestment Act, or “stimulus” funds. A second round of proposal solicitations will begin soon, but no timelines have been announced yet. For more information and a full list of the awards, please visit the ARPA-E website. EESI Briefing on Human Behavior and Energy Use (11/09) Representative Brian Baird (D-WA) deemed the quickest and easiest fix to energy use to be changing human behavior, calling a 20 percent reduction in 20 weeks completely attainable. Doug McKenzie-Mohr, a psychology professor and founder of Community-Based Social Marketing, talked of the misconceptions in human behavior. McKenzie-Mohr said people are not solely driven by economic self-interest. He recommended tackling behavior changes which have a higher probability of participation even if they have less of an overall reduction in energy usage. Gene Rodrigues, Director of Energy Efficiency for Southern California Edison, agreed saying it was all about engagement. Southern California has such successful energy efficiency programs because they have an engaged public. Richard Andres, Energy Chair for the National Defense University, showed that the military is making “energy culture” part of their energy strategies. They see being greener as a money-saver, a life-saver, and something that will be passed onto civilians and help change the entire U.S. energy culture. Karen Ehrhardt-Martinez, chair of the BCEE Conference, pointed out that people really want to conserve energy, they just need some help in achieving their goals, keeping in mind that there are many different motivators to get people to change behavior. EESI Creating Jobs in Appalachia Briefing (10/09) Pope, Taube, and Unger spoke about the money saved and jobs created by taking energy efficiency into consideration. The EIA projects energy consumption to grow by 28 percent by 2030 in the Appalachian Region, which is much higher than the 19 percent projection for the U.S. average. The report found that an energy efficiency initiation could potentially create over 77,000 jobs as well as reduce energy consumption in the region “by up to 24 percent by the year 2030.” Pope said the ARC is interested in energy for economic development and “not for energy’s sake.” Worth talked about the green efforts at community colleges. She said that every community college is improving the energy efficiency of their campuses, making sustainability part of their curriculum, and “expanding industry and workforce partnerships to rapidly train much of the nation’s “greening” workforce.” New DOE Plan for Clean Energy Loans (10/09) To help with this, DOE has created a new loan guarantee program called Financial Institution Partnership Program (FIPP). According to DOE, the goal of FIPP is to “leverage the human and financial capital of private sector financial institutions by accelerating the loan application process while balancing risk between DOE and private sector partners participating in the program.” State Surveys Get $17.79 Million in DOE Geothermal Grants (10/09) In the grant announcements, AZGS will receive $17.79 million of the funds over three years on behalf of the coalition to populate the NGDS. Most of the other projects announced are also expected to contribute their data to the NGDS. For more information on the announcement and projects funded, read the press release on the DOE website. DOI Releases Review of Oil and Gas Leases in Utah (10/09) In January, a temporary injunction was issued by a federal district court against the 77 sites in Utah after environmental groups challenged the sales. Many of the sites are located near national parks, or other sensitive lands. In February, DOI withdrew the leases and ordered a thorough review of the sites. Measure Proposes a New Oil and Gas Leasing Agency (10/09) House Natural Resources Chairman Nick Rahall (D-WV) disagrees and introduced a bill of his own (H.R. 3534) that would consolidate the energy programs of both the Bureau of Land Management (BLM) and MMS into one office at DOI in charge of onshore and offshore oil and gas leasing. Rahall says this bill will also give more authority to DOI’s inspector general. Secretary Ken Salazar agrees that an office is needed within DOI to collaborate between BLM and MMS, but it is yet to be seen how to best set up and carry this out. House Bill Aims to Provide $250M for Clean Tech Start Ups (10/09) Despite the growth in interest for clean technology, lending in the sector has been hit hard by the recession. Studies show that investment fell by over half throughout the past year. Proponents of the bill noted the potential economic benefit to be unleashed by the investment. The funds will be administered through established venture capital firms. This system was commended by supporters in business and government for the potential efficient and effective investment that can be made by professionals. The strict stipulations of the bill, however, may prove to be an issue in the venture capital community. A mandate to spend the fund within five years may be too quick as many capital venture funds last 10 or more years. The stipulations for experience and fund success could also prevent talent laden young firms from participating in the program. Solar R&D Bill Passes House (10/09) EESI “Zero Energy” Homes Briefing (10/09) Zio, King, and Colliver gave talks about the Solar Decathlon. The goal of the Decathlon is to build “attractive, fully functional 800 square-foot homes…that operate completely and independently on the electric grid.” King said the decathlon not only educates students, but also professionals, builders, and architects. Colliver stated that the objectives of the Decathlon are to demonstrate that net-zero energy homes are not only possible, but feasible, and that these houses can be marketable. He called the experience of being a project leader the “most exciting opportunity in [his] 30 years of teaching.” Poch and Stanton talked about ways that someone could cheaply improve the efficiency of an already existing building. Poch suggested the addition of a bio-based cool roof system, low-height insulations, and liquid thermal barriers. Stanton said that solar technologies are becoming more and more affordable as the rate of manufacturing increases. He added that since last year, the production of solar panels have increased by 80 percent and that the prices have gone down by 50 percent. Forum on the Perils of Energy Sprawl (10/09) Alexander spoke of the Nature Conservancy paper titled, “Energy Sprawl or Energy Efficiency: Climate Policy Impacts on Natural Habitat for the United States of America” (PDF). The paper warns that production of renewable energies such as wind power, biofuels, and solar could potentially require a landmass larger than Nebraska. It recommends four ways for policymakers to approach this problem: 1) concentrate on energy conservation, 2) place renewable energy technologies in already developed sites to decrease energy sprawl, 3) make carbon regulation flexible for coal and nuclear plants, and 4) give thought to the site selection of the energy projects. Alexander gave suggestions on how the country can reach its carbon goals with the least environmental damage. Alexander urged that the country rethink nuclear power, calling it the most compact form of renewable energy. He advised that the U.S. should, over the next 20 years, build 100 nuclear power plants as well as electrifying half of the cars and trucks being driven. He also recommended the placement of solar panels on rooftops in order to use already developed space. Alexander ended his speech by referring to Al Gore's documentary "An Inconvenient Truth", calling nuclear power the “inconvenient solution” to an “inconvenient problem.” The transcript for Senator Alexander’s speech can be found here. Competing Energy Bills Emerge in the House (9/09) The CLEAR Act would create a new Department of the Interior (DOI) agency to govern oil and gas leasing on federal lands, a task currently split between the Bureau of Land Management (BLM) and Minerals Management Service (MMS). It would pressure industry to quickly develop their leases and would add new fees. It also makes changes to offshore development rules, includes a commercial wind and solar leasing program, and boosts funding for ocean conservation and land acquisition H.R. 2227 is a bipartisan bill with wide support from Republicans and conservative Democrats in the House. It includes the Bush Administration plan for the outer continental shelf, which expands leasing into areas off all coasts. The revenue from offshore production, which Murphy estimates to increase to at least $2 trillion with the expanded area, would be distributed to states and various reserves. The reserves include a renewable energy fund to promote alternative energy development, an environmental restoration reserve, and a clean coal and carbon capture technology fund. The CLEAR Act, while garnering some support, has many industry groups concerned about the proposed fee increases and environmentalists worried about a disconnect between the proposed leasing office and the land management side. Some moderates prefer the provisions in H.R. 2227, but have not expressly opposed the CLEAR Act. House Passes Wind Energy and Advanced Vehicles Bill (9/09) With a vote of 312-114, the House passed the Advanced Vehicle Technology Act (H.R. 3246) to provide $3 billion over five years for research and development of advanced vehicle technologies. Most of the prescribed technology is fuel efficiency and energy related. Approved amendments included adding recreational vehicles and farm equipment, public-private partnerships, reporting requirements, and expand the scope of technologies. The rejected amendment, proposed by Representative Paul Broun (R-GA), would have cut the bill by $700 million. Broun argued that existing funding programs are addressing these needs. Despite the bill’s cost, House Science and Technology Committee Chair Bart Gordon (D-TN) said it would aid in stimulating the economy and developing the next generation of vehicles. DOI to Eliminate Royalty-in-Kind Program (9/09) The American Petroleum Institute is opposed to terminating the royalty-in-kind program because they think the program is cost-effective and reduced paperwork. The DOI’s Minerals Management Service has expressed similar views, saying the program simplifies royalty collections, keeps down administrative costs, and curtails conflicts with energy companies. Regardless, Salazar said a secretarial order to end the royalty-in-kind program will be issued within the next few weeks. UN Estimates Cost for Renewables in Developing World (9/09) The report recommends a “Global Sustainable New Deal”, modeled on the one that drove the U.S. out of the Great Depression. This “New Deal”, according to the report, will require large-scale investment that will not easily be supported by developing nations. Funding will likely come largely from public funding, like a global investment program, in conjunction with partnerships, incentives, and innovative financing options. Another important requirement is the transfer of key renewable energy technology from those nations possessing the scientific and technical capital to help less developed nations. These recommendations are founded on the disproportionate degree to which developing nations will be exposed to the potential hazards of climate change. The report was assembled by the Department of Social and Economic Affairs of the UN Secretariat, and is published annually. The report argues that the combined management of climate change adaptation and planned economic development in developing regions will improve the environment as well as the economic outlook and stability of developing countries. The responsibility of developed and developing nations to address climate change will be discussed this December at the UN Climate Change Conference in Copenhagen. This report will provide some basis for discussing the costs of developing a new climate change treaty to follow the Kyoto Protocol. The survey is available here. Algae-Based Biofuels Gain Congressional Favor (8/09) Congress’ interest is sparked by investment in algae-based biofuels by industry giants, small start-ups, and Native American tribes. This year, Exxon Mobil and Dow Chemical announced investments in algae-based biofuels, and a frenzy of smaller companies have demonstration projects across the country. The Southern Ute tribe in Colorado is contributing about one third of the capital and free use of their natural gas rich land to partner with Solix Biofuels. Solix proposes using the waste streams from natural gas processing plants to grow algae for fuel. The growing algae trend will likely makes its way into the energy bill discussions this fall. NY Times article on the Southern Ute tribe algae investment: Funds Announced for Energy Frontier Research Centers (8/09) The EFRCs will work on advances in renewable energy, transportation, energy efficiency, electricity storage and transmission, clean coal and carbon capture and sequestration, and nuclear energy. These centers are part of Energy Secretary Steven Chu’s plan to spur innovation that will reduce greenhouse gas emissions and lessen U.S. reliance on foreign oil. Funding for these centers comes mostly from the American Recovery and Reinvestment Act of 2009, but $100 million is from the DOE fiscal year 2009 budget. DOI Fast Tracks Renewables on Public Land (8/09) Large-scale solar energy projects may not move as quickly as DOI hopes, as concerns over the impacts arise. Environmental and conservation groups are worried that the large projects and the long transmission lines needed to connect the power plants to the urban areas will destroy endangered species’ habitats. Industry is also concerned about developing in the rain parched west, where getting water rights to cool their systems may be difficult. DOI does not have similar study zones planned for wind or geothermal. IEA Warns Of "Oil Crunch" in Next 5 Years (8/09) The comments were made on June 29, 2009 after the IEA released an update to its medium-term forecast for oil demand. The IEA is comprised of energy experts from its 28 member countries and conducts energy research as well as advises the 28 countries on energy policy. The organization focuses on the “Three E’s”, energy security, economic development, and environmental protection. More details about the IEA’s medium-term oil forecast are available here. FutureGen to Proceed to Design Stage (7/09) In June 2008, President Bush discontinued support for the project. Since then DOE has reassessed that decision and reached an agreement to complete a preliminary design, a revised cost estimate and a funding plan. This announcement does not commit DOE to any actual construction yet. If the plans are approved, DOE will contribute $1 billion from stimulus funds with an additional $1.4 billion coming from the FutureGen consortium, revenues from electricity sales, and other sources yet to be identified. More information about FutureGen is available at http://fossil.energy.gov/programs/powersystems/futuregen/ DOE Begins Looking at ARPA-E Proposals (7/09) ARPA-E has received about 3,500 concept papers for the $150 million available from the stimulus package passed earlier this year. The number of concepts exceeded industry expectations and demonstrates the large capacity for energy innovation in the nation. ARPA-E will notify those who submitted concept papers by July 28, 2009 if they think the concepts are feasible and the applicant should proceed. Full proposals are due by August 28, 2009. ARPA-E is planning to offer further solicitations in the future. For more information please visit the ARPA-E website at: http://arpa-e.energy.gov/ Court Clarifies Ruling On Offshore Drilling (7/09) Leasing in the Gulf of Mexico and other areas will proceed according to the five year leasing plan, while the DOI will work to fix the problems with the offshore leasing around Alaska. The DOI will provide periodic updates on their progress to ensure sufficient scientific and environmental analysis for potential offshore leasing in the Chukchi, Beaufort and Bering Seas. Hydraulic Fracturing Debated In Congress (7/09) Hydraulic fracturing has been used by the industry for over 50 years to aid in drilling for difficult to recover gas reserves. Some say the chemicals mixed with the sand and water to break up the rocks are harmful to groundwater. After Congress was assured the process was safe, it was removed from the Drinking Water Act. Since then several contaminated sites have been found near gas wells, but the Environmental Protection Agency (EPA) now has limited authority to investigate. Congress wants to reinstate EPA authority and held hearings to assess the situation, while industry references studies showing that state oversight is sufficient and federal regulations will only hamper exploration. The PDF of the API study is available here: Senate Introduces Offshore Revenue Sharing (7/09) Energy and Natural Resources Chairman Jeff Bingaman (D-NM) argued against revenue sharing, pointing out that the OCS is a federal resource. Murkowski’s staff indicated she will try and add this bill as an amendment to the climate and energy legislation moving through the Senate. If energy and climate change are combined into one comprehensive bill this amendment could draw some offshore drilling supporters, but is likely insufficient to sway staunch opponents to the climate change bill. Murkowski has urged that energy be considered separately from climate legislation, despite the two being merged in the House bill. The debate resumed this year after last summer’s high gas prices and lapse in the OCS drilling ban. Interior Secretary Ken Salazar is still working to develop his OCS policies for the Gulf of Mexico and Alaska after Congress let the 18 year moratoria expire. Senator Byron Dorgan (D-ND) has already tried to add language to widen the OCS leasing areas in the Senate energy bill, causing tension with Senator Bill Nelson (D-FL). S. 1517 includes similar widening language along with the revenue sharing plan. The full text of S. 1517 is available from Thomas: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:s1517: House Committee Approved Four Energy R&D Bills (7/09) The full text of each of the four bills can be found on Thomas at: The New Energy Economy and Energy Storage Briefing (7/09) Nocera is the Henry Dreyfus Professor of Energy and Professor of Chemistry at the Massachusetts Institute of Technology. His research involves using water instead of batteries to store power. He described this technology as a process similar to photosynthesis that uses solar energy to split water molecules into oxygen and water and then recombined the gases in a fuel cell. He claimed that batteries will never be efficient enough to sustain the quantities of energy storage needed for successful renewable energy because batteries are less energy dense compared to the chemical bonds of the water molecule. While his research is not complete and the technology is a long way from being commercially available, Nocera stated that water is the future of energy storage technology and there is no way to stop it. Masiello, the KEMA innovation director, spoke of more short term solutions for energy storage, including batteries, super capacitors, compressed air, and pumped hydro-electric storage. He talked about the reliability assurance that batteries could provide for communities as local stationary storage systems, and concluded with some policy issues that still need to be worked out, like who owns the energy being stored. Hayes Nomination Approved, Utah Lease Report Released (6/09) Salazar has evaluated the lease auction of concern, under the leadership of Hayes, and released a report on June 11, 2009. The report outlines the flaws in the procedure and inaccurate information that caused Salazar to cancel 77 leases in Utah this February, which in turn started the outcry from Senator Bennett. The report concludes that some of the leases could be reinstated, while others should not be leased for various environmental and legal reasons. The full report on the 77 Utah leases is available from DOI: http://www.doi.gov/utahreport/ GOP House Energy Bill (6/09) The Republicans claim that the American Energy Act is an all inclusive bill that will help to clean up the environment without unnecessary taxes and without sending jobs overseas. The bill would expand all types of energy production, including drilling on the outer continental shelf and in the Arctic coastal plain. The money from the leasing of these federal lands would be used to establish a Renewable and Alternative Energy Trust Fund that provides financial assistance for renewable, alternative, and unconventional energy programs. Renewable energy expansion would also be supported with tax credits for people using or investing in renewable energy sources. Nuclear energy would be expanded with a proposal to bring 100 new nuclear reactors online in the next 20 years. The oil shale lease program that leases federal lands to private companies for the research and development of oil shale production would be reinstated, and lastly, the bill would streamline the refinery permitting process. The American Energy Act has been referred to the House Natural Resources Committee Subcommittee on Energy and Mineral Resources. Energy Bill Passes Senate Committee (6/09) Details of the bill of particular interest to the geosciences community include measures for: clean energy technology development, energy innovation and workforce development, to increase domestic production and assessment of oil and natural gas, to increase production of renewable energy on public lands, to assess nuclear waste management and to understand and develop strategies regarding the energy-water nexus. The various parts of the measure are available for review at the Senate Energy and Natural Resources Committee website. Republicans Introduce Oil Shale Development Bill (6/09) The PIONEER Act would reinstate the Research, Development, & Demonstration (RD&D) leasing that Secretary of the Interior Ken Salazar removed in February. In January, the former administration had proposed a second round of RD&D leasing, where federally owned land is leased to private companies for oil shale production. Under the PIONEER Act, the Secretary of the Interior would be allowed to temporarily reduce royalties, fees, rentals, bonus, or other payments for these leases. Lamborn believes that oil shale development cannot be accomplished without the incentives for private companies to engage in oil shale production. The bill would also establish the guidelines published by the Bureau of Land Management (BLM) as rules for the investment and development of commercial oil shale production on federally owned lands. While the technology needed for commercial extraction of the oil shale is several years away, the BLM regulation will provide for the development of technologies to efficiently extract the oil in an environmentally safe way. House Introduces Deep Seabed Mineral Resources Bill (6/09) Coal Reserves Overestimated According to USGS Study (6/09) USGS Arctic Oil and Gas Assessment Published in Science (6/09) Interior Secretary Reports on Carbon Capture Storage (6/09) The full report (PDF) is available from the DOI. Reducing Greenhouse Gas Emissions through Improved Manufactured Housing (6/09) Currently, there are over two million units in the U.S. that low-income families call home despite unhealthy living conditions created by the lack of safety in these homes and inefficiency in energy use, causing them to have high energy bills they can ill afford. H.R. 1749 has been introduced to provide owners of pre-1976 units with a $7,500 rebate to leverage with state funding to purchase a new Energy Star qualified manufactured home. The bill is a provision in the American Clean Energy and Security Act of 2009 (H.R. 2454) and Sen. Jon Tester (D-MT) plans to introduce companion legislation in the Senate. The need to replace these homes was highlighted at the briefing with one example of a pre-1976 mobile home which when replaced with an Energy Star manufactured home reduced the owner’s electricity usage from 6,000 kilowatts per month to only 1,600 kilowatts per month. The power points from the speakers at the briefing are available on the EESI briefing page. ACS Briefing on “Enabling Renewable Energy: Building a Bigger Battery” (6/09) Forest Biomass as a Renewable Energy Source in the United States (6/09) To qualify for the market, renewable biomass must not deplete forest resources and be readily re-grown. The use of the biomass resource cannot degrade the ecological potential to produce a sustained yield from that resource. All development options need to include different avenues through which forest owners can participate, as well as safeguards for certain critical private and federal lands. If this market generates more demand for biomass, a higher pace of thinning for fire hazards and forest health as well as a greater supply from traditional sources like pulpwood will likely be required to meet the need. In addition, questions remain due to how biomass fits in with the Renewable Fuels Standard of the Energy Independence and Security Act of 2007 which provides challenges in developing a renewable biomass energy market. There is a need to move toward incentives and outcomes that are consistent with the interaction of energy, forest, agriculture, environmental, and carbon policy. Forests can serve as an important resource to mitigate climate change, but they must be managed in such a way so that they are carbon sinks and not carbon sources. The power points from the speakers at the briefing are available on the EESI briefing page. EIA Releases 2009 Energy Outlook Report (5/09) The key projections note that world oil prices could swing from $50 to $200 per barrel of oil through to 2030; there might be no growth in U.S. oil consumption because of increasing oil prices, fuel efficient vehicles and the use of biofuels; and there might be more limited growth in coal-fired power plants and much higher growth in natural gas-fired power plant than previously predicted because of greenhouse gas emission reductions. Overall energy consumption is projected to increase by 0.5 percent per year through 2030 and fossil fuels will account for more than 75 percent of all consumption with nuclear, biofuels and renewables accounting for about 25 percent. Overall electricity demand is projected to increase by 1 percent annually from 2007 to 2030 and the demand will be met by nearly the same proportion of energy resources for electricty with the most noticeable increase from renewable energy resources (47 percent from coal, 18 percent from nuclear, 14 percent from renewables and 20 percent from natural gas for the 2030 reference case). The full report, summaries, and supplemental material are all available online: Senate Energy Bill Proceeds Slowly (5/09) Another part of the energy bill is a measure limiting liability for carbon capture and sequestration projects. The Department of Energy Carbon Capture and Sequestration Program Amendments Act of 2009 (S. 1013) would authorize the Secretary of Energy to carry out a program to demonstrate commercial application of integrated systems for long-term geological storage of carbon dioxide (more than one million tons of carbon annually) without liability. Parties must obtain certification that they are complying with state and federal drinking water protection requirements and conduct tests to verify carbon is not escaping. The bill would also allow the Secretaries of Agriculture and Interior to authorize projects on federal lands. A large number of amendments and significant additional debate is expected on many parts of the legislation and the committee has already missed their self-imposed deadline of the Memorial Day recess to complete the bill. Even if the bill passes the committee, there is considerable uncertainty about when it might be considered by the full Senate. Majority Leader, Senator Harry Reid (D-NV) has indicated that health care legislation will be considered before energy legislation. The House is not considering an energy bill similar to the Senate’s though there is some overlap of sections with the House climate change and energy bill (H.R. 2454). Please visit the Senate Energy and Commerce’s Energy Bill 2009 web page for the full text and drafts of the different parts of this legislation at: http://energy.senate.gov/public/index.cfm?FuseAction=EnergyBill.2009 Tar Sands And Oil Shale Are Examined On The Hill (5/09) The power points and audio recording of the briefing are available on the EESI briefing page. For information on the CERA study to determine the needs and priorities of the tar sands industry, read the study overview. Senate Working on Energy and Water Bills (4/09) The 21st Century Energy Technology Deployment Act (S.949) would implement reforms to the Department of Energy (DOE) loan guarantee program, including creating a new “Clean Energy Investment Fund” to allow collected costs and payments be used to support more technology deployment. The bill would also create a new entity housed in DOE, the Clean Energy Deployment Administration (CEDA), with strong financial expertise and with a specific purpose to create an attractive investment environment for the development and deployment of new clean energy technologies. Once the Secretary and the Administrator of CEDA agree it is ready, the Clean Energy Investment Fund becomes the seed fund for the new entity. The Restoring America’s Manufacturing Leadership through Energy Efficiency Act of 2009 (S. 661) would implement programs at DOE to help manufacturers and industry develop energy efficient technologies through loans and public-private partnerships for the development of new technologies. The Energy and Water Integration Act of 2009 (S. 531) directs the Secretary of Energy to have the National Academy of Sciences conduct an in-depth analysis of the impact of energy development and production on U.S. water resources. It requires the Secretary to conduct a study to identify the best available technologies and related strategies to maximize water and energy efficiency in the production of electricity by each type of generation. It also requires the Secretary to develop an Energy-Water Research and Development Roadmap and the Administrator of the Energy Information Administration to conduct an assessment of energy consumption in various sectors of the economy that are associated with the acquisition, treatment, or delivery of water. The bill also directs the Secretary of the Interior to conduct a study to evaluate the quantities of energy used in water storage and delivery operations in major reclamation projects; and to operate, manage, and maintain the Brackish Groundwater National Desalination Research Facility in Otero County, New Mexico, to carry out research, development, and demonstration activities to develop technologies and methods that promote brackish groundwater desalination as a viable method to increase water supply in a cost-effective manner. American Chemical Society hosts briefing on “Understanding the U.S. Energy Profile” Dr. Robert Fri of the National Research Council first presented an overview of national security implications associated with U.S. dependency on fossil fuels. Fri identified 2 “security” issues, one of “national” security and the other “economic” security. He stated that “national security is the least well understood but the most thought about part of the energy question,” especially in regards to shaping foreign policy. In terms of economic security, Fri indicated that with 85 percent of the U.S. energy supply based on fossil fuels and billions of dollars exported each year for oil economic security is highly vulnerable to price shocks on the global markets as evident from the massive 2008 fluctuation in oil prices. Fri bluntly stated that “energy independence isn’t going to happen” because fossil fuels are commodities traded in global markets, but that the U.S. can reduce its dependency on foreign sources of fossil fuels, which could help buffer the nation from geopolitical instability and wild market fluctuations. Dr. Howard Gruenspecht, Acting Administrator of the Energy Information Administration, presented a summary of current sources and uses within the U.S. energy profile along with impacts a carbon cap-and-trade system would have on consumer prices for electricity, oil, and natural gas. Gruenspectht also shared various benefits/conflicts to different approaches intended to simultaneously enhance energy security and reduce carbon emissions. For example, improving vehicle fuel efficiency in the U.S. would be a win-win situation by reducing demands of foreign imports and also reduce carbon emissions, whereas carbon capture and sequestration has the benefit of removing carbon that would otherwise enter the atmosphere, but is also energy and water intensive, so is a win-lose situation. Dr. Scott Tinker, the Texas State Geologist and President of the American Association of Professional Geologists (AAPG), presented the current state of fossil fuel use in the U.S. and abroad, and noted several important trends in the fossil fuel arena likely to impact the nation’s energy portfolio. Tinker stated that energy transitions take time and are limited by scale, and that fossil fuels are essential for the U.S. in the next 20-30 years as a bridge to the new technologies and renewable sources which will replace fossil fuels. Tinker indicated that based on his analysis of global trends “the world has and will use coal,” but stated emerging technologies in carbon capture could reduce global carbon emissions. He also indicated that the U.S. only has about 3 percent of the total world petroleum reserves, and a significant portion of this 3 percent is found in limited access areas. To conclude his presentation, Tinker urged that fossil fuels are not immediately taken of the nation’s energy strategy, stating that “proposed fossil energy policies will likely exacerbate an already poor situation.” Dr. Allan Bard professor at the University of Texas-Austin, provided an overview on the current state of renewable energies in the U.S. energy portfolio. As of 2007, Bard stated that 9 percent of U.S. energy sources came from renewable sources, and of that nine percent, hydroelectric power provided 70 percent. Bard also shared some of the challenges with renewable energies, including new transmission infrastructure and the continual generating capacity of sources such as solar and wind, which Bard stated are only 28 and 40 percent reliable respectively. Supporting Dr. Tinker’s statement that energy transitions can often take long periods of time, Bard presented a somewhat sobering example of the difficult challenges in the renewable energies sector as defined in a new Department of Energy analysis on the future of wind energy. Bard indicated that for the nation to get 20 percent of its electricity from wind by 2030, 13 wind turbines would need to be installed every day across the nation for the next 21 years, an ambitious goal that would still leave upwards of 60 percent of the nation’s electricity derived from fossil sources. (03/09) Brookings Calls for a New Bold Approach to Energy Research National Association of State University and Land Grant Colleges (NASULGC) president Peter McPherson stated at the event that “the Brookings proposal is exceptionally clear about just how unsustainable our way of life has become and the challenges we face in completely restructuring energy production, distribution, and use to fit within the natural limits of our climate and environment.” McPherson further added that “Perhaps the report’s most important point is that energy research, technology development, and commercialization are grossly underfunded, by as much as an order of magnitude. We are talking about the need for a large influx of new resources, not simply a reallocation of what we already have.” Although the Brookings proposal involves a paradigm shift to the approach of solving energy problems in the United States, McPherson emphasized the need for the shift to occur internationally as well. He sees the Obama Administration playing an important role in the transfer abroad of both technologies and paradigms shifts in terms of energy use. (02/09) DOE Report Calls for a “Game-Changing” Shift in Energy Development The report emphasized that BES must lead U.S. energy research efforts in the direction of new discoveries and pool together “dream teams” of highly educated talent and give them the most advanced tools to increase the rate of discovery. The report tasks BES with leading a national effort to recruit the best talent through workforce development and early career programs to inspire young talent nationwide to strive to be the discoverers and innovators for tomorrow’s energy solutions.(02/09) President Bush Issues Directive on Arctic Policy It would also be prudent for the U.S. to ratify the United Nations Convention on the Law of the Sea if the U.S. wishes to make claims to parts of the Arctic seabed and review the claims of other nations. President Bush has supported the ratification of the treaty, but conservative Republicans have blocked the ratification in the Senate so far. The treaty allows for cooperation on resources of the seas, both the waters and the seabed and has a process for judging the claims of nations for seabed extensions of their continental shelf. If a nation can show that the seabed is part of their continental shelf then they are entitled to the resources. The nations that determine these claims include the nations who have signed the treaty. (01/09) Energy policy, a hot topic on Capitol Hill, has become coupled with the issue of climate change as policymakers focus attention on conservation, efficiency and alternative energy options. In his 2007 State of the Union address, President Bush presented the nation with an ambitious new energy plan that focused on increasing fuel economy and alternative fuel availability, warning that the nation's dependency on foreign oil makes us vulnerable. President Bush urged Americans to "reduce gasoline usage in the United States by 20 percent in the next ten years." Achieving the President's "twenty in ten" goal, however, demands a dramatic increase in the availability of alternative energy sources. The President challenged lawmakers and private industry to replace 15 percent of U.S. gasoline consumption with alternative fuels by 2017. Congress held many committee hearings in early 2007 to discuss energy issues. There was a significant emphasis on the need for increased investment in energy-related research and development (R&D), including reports published by the Government Accountability Office and National Academies. The 110th Congress’ work on energy issues culminated in the passage of the omnibus Energy Independence and Security Act of 2007 (H.R. 6), which was signed into law (Public Law 110-140) in December 2007. The law increases vehicle fuel efficiency standards and provides other conservation, efficiency and alternative energy provisions that legislators thought were missing from the previous congress' major energy law, the Energy Policy Act of 2005 (also H.R. 6). The Energy Independence and Security Act also authorizes funds for research and development (R&D), some of it in the geosciences. Legislators continued to consider energy issues throughout the second session of the 110th Congress in 2008 and some additional energy bills were introduced. Energy issues were often discussed in relation to climate change legislation and Congress seemed prepared to consider energy policy that dealt with climate change. However, skyrocketing oil prices in the summer of 2008 shifted the emphasis to supply and demand issues. President Bush lifted the executive ban on expanding offshore drilling in an effort to pressure Congress to end the moratorium on new offshore drilling that is normally part of the Interior appropriations bill. This caused significant acrimony in Congress and shut down the appropriations process. On July 23, 2008 the U.S. Geological Survey (USGS) released an assessment of undiscovered oil and gas resources north of the Arctic Circle of which 84 percent occurs in offshore areas. The estimates of 90 billion barrels of oil and 1,669 trillion cubic feet of natural gas were determined using a geology-based probabilistic methodology and account for 13 and 30 percent of the world’s undiscovered oil and gas resources, respectively. The study included resources considered technically recoverable using existing technologies, but did not include economic factors, the presence of permanent sea ice or oceanic water depth in the determination. This has spurred renewed attention to the Law of the Sea Treaty, furthered the offshore drilling efforts and searches for unconventional fossil fuels (such as oil shales or gas hydrates). In September of 2008 the House approved a bill (H.R. 6899) that would expand offshore drilling as well as incentives for alternative energy. At about the same time, a bipartisan group of senators referred to as the “gang of 10” began discussing compromise legislation that would allow some more offshore drilling combined with more funding for alternative energy. The gang grew to a super gang of as many as 22 senators who participated in an unusual all-day energy summit held by the Senate Energy and Natural Resources Committee with the support of Senate leadership. Although an energy bill has yet to be introduced in the Senate as a result of these discussions, the framework has been laid for the 111th Congress to move forward with energy legislation. General background information on the issues surrounding energy policy that Congress has been working on is available from several Congressional Research Service (CRS) reports. Addition information on energy legislation in the 110th Congress is available at http://www.agiweb.org/gap/legis110/energy.html.
Sources: AGI's Monthly Review, DOE, E&E Daily Contributed by Corina Cerovski-Darriau, Government Affairs staff; Clint Carney, 2009 AGI/AAPG Spring Intern; Stephanie Praus, 2009 AGI/AIPG Summer Intern; Rachel Potter, 2009 AGI/AIPG Summer Intern; Mollie Pettit, 2009 AGI/AAPG Fall Intern; and Joey Fiore, 2009 AGI/AIPG Summer Intern Background section includes material from AGI's Energy Policy Pages for the110th Congress. Please send any comments or requests for information to AGI Government Affairs Program. Last updated on March 8, 2010. |
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