Last week, Senators Jeff Bingaman (D-NM), Jeanne Shaheen (D-NH), Barbara Boxer (D-CA), and Dianne Feinstein (D-CA) introduced legislation (S. 3746) to amend the Energy Policy Act of 2005 to improve the loan guarantee program of the Department of Energy under title XVII of the Act.
See http://www.opencongress.org/people/show/300009_Jeff_Bingaman
Tuesday, August 17, 2010
Speculation on Contents of Oil Spill Bill Continues
After finding opposition and a shortage of votes for energy legislation that would deal with the oil spill and other disasters, Majority Leader Harry Reid has said he will once again bring altered legislation to the Senate floor next month. Reid is being lobbied by Democrats to add a renewable energy standard to the oil spill bill, and Sen. Tom Udall has said there could be as many as 62 senators ready to support it.
But Sen. Jeff Bingaman said last week he doubts Congress will pass anything before Election Day. "I think the Republicans are reluctant to support anything that might result in another signing ceremony between now and the election," he said.
White House energy and climate advisor Carol Browner said on NBC’s “Meet the Press” that there is still a chance to get climate legislation signed during the lame-duck session with cap-and-trade measures included.
But Bingaman disagrees. “I think it’s going to be difficult for the Senate to pass any kind of cap-and trade legislation … I’ve thought that all along.”
The Senate will be in recess until September 13, and the House will be in recess until September 14.
See http://www.politico.com/news/stories/0810/41025.html
But Sen. Jeff Bingaman said last week he doubts Congress will pass anything before Election Day. "I think the Republicans are reluctant to support anything that might result in another signing ceremony between now and the election," he said.
White House energy and climate advisor Carol Browner said on NBC’s “Meet the Press” that there is still a chance to get climate legislation signed during the lame-duck session with cap-and-trade measures included.
But Bingaman disagrees. “I think it’s going to be difficult for the Senate to pass any kind of cap-and trade legislation … I’ve thought that all along.”
The Senate will be in recess until September 13, and the House will be in recess until September 14.
See http://www.politico.com/news/stories/0810/41025.html
Kerry Bill Will Spur Clean Energy Production
Press Release, August 6, Washington DC — Senator John Kerry (D-Mass.) has introduced legislation to reduce our dependence on foreign oil and excite clean energy production and technology across the country.
The Clean Energy Technology Leadership Act of 2010 will provide tax incentives for clean energy manufacturing, renewable energy, and conservation.
“While we continue the fight to bring comprehensive energy legislation to the floor of the United States Senate, it’s essential that we take action to start moving in the right direction,” said Sen. Kerry. “Providing incentives for clean energy production will drive our economy forward and take us one step closer to reducing our carbon emissions and ending our dependence on foreign oil.”
The Clean Energy Technology Leadership Act of 2010 will:
• provide additional funding for the advanced energy manufacturing credit and uncap the credit for solar energy property, fuel cell power plans, and advanced energy storage systems, including batteries for advanced vehicles;
• extend and modify tax incentives for new energy efficient homes, nonbusiness energy property improvements, and energy efficient commercial buildings;
• encourage clean transportation by providing incentives for natural gas heavy vehicles;
• extend the excise tax credit for biodiesel and renewable diesel retroactively for 2010 and through 2012;
• modify the cellulosic biofuel tax credit to include algae based fuels;
• extend the credit for domestic manufacturers of energy appliances;
• provide an additional $3.5 billion for clean renewable energy bonds; AND
• extend the research and development tax credit retroactively for 2010 and through 2012 and provide an additional 10 percent credit for qualified advanced energy research expenditures.
The Kerry legislation would also extend through 2012 the Section 1603 tax grant program of the stimulus bill, a priority for many renewable energy companies. It also " clarifies that real estate investment trusts and public power would be eligible for the program," a fact sheet from the Senator's office states.
See http://kerry.senate.gov/press/release/?id=91fe4bab-d8bf-4239-9da4-815dab5228ef
The Clean Energy Technology Leadership Act of 2010 will provide tax incentives for clean energy manufacturing, renewable energy, and conservation.
“While we continue the fight to bring comprehensive energy legislation to the floor of the United States Senate, it’s essential that we take action to start moving in the right direction,” said Sen. Kerry. “Providing incentives for clean energy production will drive our economy forward and take us one step closer to reducing our carbon emissions and ending our dependence on foreign oil.”
The Clean Energy Technology Leadership Act of 2010 will:
• provide additional funding for the advanced energy manufacturing credit and uncap the credit for solar energy property, fuel cell power plans, and advanced energy storage systems, including batteries for advanced vehicles;
• extend and modify tax incentives for new energy efficient homes, nonbusiness energy property improvements, and energy efficient commercial buildings;
• encourage clean transportation by providing incentives for natural gas heavy vehicles;
• extend the excise tax credit for biodiesel and renewable diesel retroactively for 2010 and through 2012;
• modify the cellulosic biofuel tax credit to include algae based fuels;
• extend the credit for domestic manufacturers of energy appliances;
• provide an additional $3.5 billion for clean renewable energy bonds; AND
• extend the research and development tax credit retroactively for 2010 and through 2012 and provide an additional 10 percent credit for qualified advanced energy research expenditures.
The Kerry legislation would also extend through 2012 the Section 1603 tax grant program of the stimulus bill, a priority for many renewable energy companies. It also " clarifies that real estate investment trusts and public power would be eligible for the program," a fact sheet from the Senator's office states.
See http://kerry.senate.gov/press/release/?id=91fe4bab-d8bf-4239-9da4-815dab5228ef
Coal – Introduction and some quick facts
Introduction to coalCoal is classified as fossil fuel, and it is the main energy source for electricity production in the world. This however also means that coal is the main source of carbon emissions in the world meaning that coal significantly contributes to climate change issue. Coal is composed primarily of carbon along with variable quantities of other elements, mostly sulfur, hydrogen,
Tuesday, August 10, 2010
Viewpoint on the News - Iceland: Magma’s Investment in Economy Threatened
On occasion, the Geothermal Energy Weekly presents views of knowledgeable individuals on events in the news that do not necessarily represent the views of the GEA or its member companies. If you have an opinion you would like us to consider, email us at research@geo-energy.org.
Iceland: Magma’s Investment in Economy Threatened
by Auður Nanna Baldvinsdóttir, audurnanna@gmail.com
Magma Energy’s largest investment to date is now at risk of being blocked by the Icelandic government. Just a few days prior to the finalization of the purchase of geothermal power producer HS Orka, the Icelandic Minister of Economic Affairs sent Magma Energy a letter informing the company of a planned investigation into the legality of the investment by Magma’s Sweden-based subsidiary. The letter also states that the government intends to reverse the privatization that has already occurred in the Icelandic energy sector. This could mean the nationalization of private assets within a developed economy; a global rarity over the last 50 years.
Magma has been increasing its stake in the firm for several months now and the government has known of Magma’s plans to own the company in full for the last nine months. The decision to intervene in the transaction was only made when pop singer Björk held a press conference declaring her disapproval and then organized a petition demanding that the government prevent the purchase. Public debate was ignited and the Left-Green Party members of the governing coalition threatened to disband the ruling government if the investment was not stopped. The centrists agreed and the investigation was organized.
The opponents of the sale argue that Iceland’s resources should not be under the control of private companies and that Magma’s ultimate intent is to own all of Iceland’s energy resources. Magma’s chief executive in Iceland, Ásgeir Margeirsson, formerly of Geysir Green Energy, firmly denies such plans. He points out that Magma merely leases the geothermal resource from the municipalities for a 65-year time period.
The 260 million dollar deal also happens to represent the largest single foreign investment in the Icelandic economy since the economic collapse in the fall of 2008. Magma’s chief executive Ross Beaty told the Financial Times that he thought the investment would be welcome at a time of economic strife. HS Orka needs financing to complete expansions for the planned sale of electricity to a nearby Century Aluminum smelter. A Mitsubishi steam turbine sits unused in their turbine hall waiting for the required six additional production wells to be drilled. Magma is also preferred by HS Orka’s creditors to the previous owner, Geysir Green Energy, which was largely owned by bankrupt bank Glitnir.
The legal argument for the prevention of this particular transaction is that EU legislation stipulates that energy firms in Europe must be owned by European companies. Magma, a Canadian company, set up the Magma Energy Sweden subsidiary in Sweden to hold the HS Orka shares. Magma representatives state they followed the advice of the Ministry of Industry on how the holding should be structured.
Margeirsson told Fréttabladid, a local newspaper, that the company had not yet answered the letter but had expressed its intent to cooperate with the investigation. He said he found it difficult to imagine how the authorities planned on preventing the transaction and that Magma‘s directors are already considering their legal options, should the government somehow prevent Magma‘s investment in HS Orka.
Regardless of the merits of a publicly-held electricity system, forcing foreign investors out of an economy after having made considerable investments in good faith is the equivalent of a large “keep out” sign to international investors. The Icelandic government knew of Magma’s plans for nine months and did nothing. The largest single foreign investment in Iceland’s economy after its collapse has been thrown into uncertainty. As an Icelandic citizen, economist and energy professional, I hear echoes of the same attitudes that largely caused our economy to collapse in the first place; an unprofessional bureaucracy, unclear execution of policy, and an inability to make decisions.
http://www.geo-energy.org/updates.aspx
Iceland: Magma’s Investment in Economy Threatened
by Auður Nanna Baldvinsdóttir, audurnanna@gmail.com
Magma Energy’s largest investment to date is now at risk of being blocked by the Icelandic government. Just a few days prior to the finalization of the purchase of geothermal power producer HS Orka, the Icelandic Minister of Economic Affairs sent Magma Energy a letter informing the company of a planned investigation into the legality of the investment by Magma’s Sweden-based subsidiary. The letter also states that the government intends to reverse the privatization that has already occurred in the Icelandic energy sector. This could mean the nationalization of private assets within a developed economy; a global rarity over the last 50 years.
Magma has been increasing its stake in the firm for several months now and the government has known of Magma’s plans to own the company in full for the last nine months. The decision to intervene in the transaction was only made when pop singer Björk held a press conference declaring her disapproval and then organized a petition demanding that the government prevent the purchase. Public debate was ignited and the Left-Green Party members of the governing coalition threatened to disband the ruling government if the investment was not stopped. The centrists agreed and the investigation was organized.
The opponents of the sale argue that Iceland’s resources should not be under the control of private companies and that Magma’s ultimate intent is to own all of Iceland’s energy resources. Magma’s chief executive in Iceland, Ásgeir Margeirsson, formerly of Geysir Green Energy, firmly denies such plans. He points out that Magma merely leases the geothermal resource from the municipalities for a 65-year time period.
The 260 million dollar deal also happens to represent the largest single foreign investment in the Icelandic economy since the economic collapse in the fall of 2008. Magma’s chief executive Ross Beaty told the Financial Times that he thought the investment would be welcome at a time of economic strife. HS Orka needs financing to complete expansions for the planned sale of electricity to a nearby Century Aluminum smelter. A Mitsubishi steam turbine sits unused in their turbine hall waiting for the required six additional production wells to be drilled. Magma is also preferred by HS Orka’s creditors to the previous owner, Geysir Green Energy, which was largely owned by bankrupt bank Glitnir.
The legal argument for the prevention of this particular transaction is that EU legislation stipulates that energy firms in Europe must be owned by European companies. Magma, a Canadian company, set up the Magma Energy Sweden subsidiary in Sweden to hold the HS Orka shares. Magma representatives state they followed the advice of the Ministry of Industry on how the holding should be structured.
Margeirsson told Fréttabladid, a local newspaper, that the company had not yet answered the letter but had expressed its intent to cooperate with the investigation. He said he found it difficult to imagine how the authorities planned on preventing the transaction and that Magma‘s directors are already considering their legal options, should the government somehow prevent Magma‘s investment in HS Orka.
Regardless of the merits of a publicly-held electricity system, forcing foreign investors out of an economy after having made considerable investments in good faith is the equivalent of a large “keep out” sign to international investors. The Icelandic government knew of Magma’s plans for nine months and did nothing. The largest single foreign investment in Iceland’s economy after its collapse has been thrown into uncertainty. As an Icelandic citizen, economist and energy professional, I hear echoes of the same attitudes that largely caused our economy to collapse in the first place; an unprofessional bureaucracy, unclear execution of policy, and an inability to make decisions.
http://www.geo-energy.org/updates.aspx
GEA newsletter - National News 8/5
Sen. Tester Introduces S.3619 to Improve Geothermal Technology
On July 20 Senator Tester (D-MT) introduced S.3619 – “A bill to amend the Energy Independence and Security Act of 2007 to improve geothermal energy technology and demonstrate the use of geothermal energy in large scale thermal applications, and for other purposes.” The legislation would direct grants from the DOE to help state and local governments, universities, nonprofits and manufacturers in their development of geothermal energy technology through research and development of new equipment and methods.
“It’s time we spark innovation to develop these kinds of technologies that will create jobs in Montana and help secure American’s energy future,” Tester said in a statement. “Almost no other state can match Montana’s potential when it comes to renewable energy development. I’m going to keep fighting to make sure we reach that potential and rebuild Montana’s economy with energy jobs.”
The bill states that the Geothermal Technologies Program of DOE focuses on direct use of geothermal energy in the low-temperature geothermal energy subprogram and that the Building Technologies Program focuses on energy demand and energy efficiency, including geothermal heat pumps. It states that geothermal heat pumps and direct use of geothermal energy, especially in large-scale applications, can make a significant contribution to the use of renewable energy but are underrepresented.
The bill seeks to improve the components, processes, and systems used for geothermal heat pumps and the direct use of geothermal energy and to increase the energy efficiency, lower the cost, increase the use, and improve and demonstrate the applicability of geothermal heat pumps and the direct use of geothermal energy.
See http://www.opencongress.org/bill/111-s3619/show and http://www.votesmart.org/speech_detail.php?sc_id=580415.
Senate Redirects $1.5b of Loan Guarantee Funding To Education and Health Care
As an emergency measure, a $26 billion state aid bill passed by the Senate in a 61 to 39 vote. The bill also impacts $1.5 billion of funds set aside for renewable energy loan guarantees which were redirected to help state education and health programs facing imminent job cuts. The renewable funds, as well as others redirected from programs such as the Park Service and the Department of Defense, were used to offset the costs of the emergency bill. Reducing its deficit impact was critical to obtaining the vote needed in the Senate for passage.
Senate Majority Leader Harry Reid said that the Department of Energy was slow in getting the funds out to the loan guarantee programs where they will eventually meet their mark. "They have been, in my opinion, very, very slow in putting that money out," Reid said. "DOE has huge amounts of money they have not spent. ... There is no way with the way things have been working they are going to miss that billion and a half," he said.
Reid told press he cleared the offset with House Speaker Nancy Pelosi (D-Calif.) and had spoken with DOE before the vote. He added that the loan guarantee program funding would be replaced: "That money is just temporarily gone... We are going to take care of that," he said.
"This loan guarantee program is critical for many new geothermal and other renewable projects," said Karl Gawell, GEA's Executive Director. "We agree with Senator Reid that DOE has been moving forward with loan guarantees at a snail's pace, but hope the funds for the program are quickly restored. Helping teachers and health care shouldn't have to undercut producing clean energy and creating new jobs. We need all of the above for the economy and country to move forward."
See http://www.eenews.net/pm/.
Energy/Oil Spill Bill Sees Further Delay
Senate Democrats have again postponed a vote on an energy bill, which has become mostly an oil spill bill. The plans now are to return to the issue in September after the August congressional recess.
When they return, Democrats are likely to make some changes to the bill, though how many is unclear, as they attempt to formulate legislation that will win the necessary 60 votes needed for passage. Meanwhile many different energy interest groups continue working to affect its direction. Some of the key struggles over the recess
include efforts by energy majors pushing for the Senate to reconsider removing caps on liability for companies that cause oil spills, environmental groups urging support for a cap on carbon-dioxide emissions, and renewable groups working for a renewable electricity standard and tax credit extensions.
In the view of some Washington observers, the odds of any significant energy bill passing this year seem long, but the Senate Leadership has been leaving open the door to finding a way to 60 votes.
See http://www.nytimes.com/gwire/2010/08/05/05greenwire-fallout-begins-after-senates-failure-to-act-on-54000.html and http://online.wsj.com/article/SB10001424052748703748904575411170816612944.html.
GEA Las Vegas Utilities Workshop Attracts Geothermal Newcomers
Over 130 hundred representatives from various organizations braved the oppressive Nevada heat to attend the Geothermal Energy Associations (GEA) Geothermal Energy and Utilities, Co-ops and Public Power Workshop on July 22, 2010. The day-long workshop saw attendees and presenters coming from a variety of backgrounds within the geothermal energy industry in order to expound on and learn about the opportunities and obstacles facing the geothermal industry.
The workshop featured 10 different panels addressing a multitude of timely topics from investor and municipally owned utilities to other pertinent subjects such as transmission issues and analytical approaches to geothermal risk assessment. Karl Gawell, GEA Executive Director highlighted the dramatic growth of the industry; panelists on the Federal and State Support for Utilities and Renewables panel highlighted incentives for the development of geothermal energy. Dan Schochet of Ram Power spoke to the transmission developments that are needed to meet the growing need for clean geothermal energy in both Nevada and the greater West. Perhaps just as striking as the multitude of panel topics was the variety of organizations represented at the workshop. Newly developing sectors of the geothermal industry such as hydrocarbon and geothermal co-production companies were represented. State and government officials were represented and provided presentations on how their organizations support geothermal energy. Representatives from developers, law firms, and equipment suppliers also participated in the workshop.
The utility panels highlighted the growing importance of geothermal energy in the region. Dan Chase, Contract Negotiator, Renewable & Alternative Power, Southern California Edison noted that 17% of customers’ needs are met with renewable energy, of which 57% is provided by geothermal energy.
While the variety of organizations present at the workshop was significant its most impressive achievement was the number of newcomers in attendance. “It was gratifying to look at the attendance list for this workshop and see companies and organizations that we haven’t seen at our events before. That speaks not only to the importance of the workshops focused topic but also the increased recognition of geothermal energy as a viable source of clean renewable energy in Nevada and the region,” said GEA Research Associate Dan Jennejohn.
On July 20 Senator Tester (D-MT) introduced S.3619 – “A bill to amend the Energy Independence and Security Act of 2007 to improve geothermal energy technology and demonstrate the use of geothermal energy in large scale thermal applications, and for other purposes.” The legislation would direct grants from the DOE to help state and local governments, universities, nonprofits and manufacturers in their development of geothermal energy technology through research and development of new equipment and methods.
“It’s time we spark innovation to develop these kinds of technologies that will create jobs in Montana and help secure American’s energy future,” Tester said in a statement. “Almost no other state can match Montana’s potential when it comes to renewable energy development. I’m going to keep fighting to make sure we reach that potential and rebuild Montana’s economy with energy jobs.”
The bill states that the Geothermal Technologies Program of DOE focuses on direct use of geothermal energy in the low-temperature geothermal energy subprogram and that the Building Technologies Program focuses on energy demand and energy efficiency, including geothermal heat pumps. It states that geothermal heat pumps and direct use of geothermal energy, especially in large-scale applications, can make a significant contribution to the use of renewable energy but are underrepresented.
The bill seeks to improve the components, processes, and systems used for geothermal heat pumps and the direct use of geothermal energy and to increase the energy efficiency, lower the cost, increase the use, and improve and demonstrate the applicability of geothermal heat pumps and the direct use of geothermal energy.
See http://www.opencongress.org/bill/111-s3619/show and http://www.votesmart.org/speech_detail.php?sc_id=580415.
Senate Redirects $1.5b of Loan Guarantee Funding To Education and Health Care
As an emergency measure, a $26 billion state aid bill passed by the Senate in a 61 to 39 vote. The bill also impacts $1.5 billion of funds set aside for renewable energy loan guarantees which were redirected to help state education and health programs facing imminent job cuts. The renewable funds, as well as others redirected from programs such as the Park Service and the Department of Defense, were used to offset the costs of the emergency bill. Reducing its deficit impact was critical to obtaining the vote needed in the Senate for passage.
Senate Majority Leader Harry Reid said that the Department of Energy was slow in getting the funds out to the loan guarantee programs where they will eventually meet their mark. "They have been, in my opinion, very, very slow in putting that money out," Reid said. "DOE has huge amounts of money they have not spent. ... There is no way with the way things have been working they are going to miss that billion and a half," he said.
Reid told press he cleared the offset with House Speaker Nancy Pelosi (D-Calif.) and had spoken with DOE before the vote. He added that the loan guarantee program funding would be replaced: "That money is just temporarily gone... We are going to take care of that," he said.
"This loan guarantee program is critical for many new geothermal and other renewable projects," said Karl Gawell, GEA's Executive Director. "We agree with Senator Reid that DOE has been moving forward with loan guarantees at a snail's pace, but hope the funds for the program are quickly restored. Helping teachers and health care shouldn't have to undercut producing clean energy and creating new jobs. We need all of the above for the economy and country to move forward."
See http://www.eenews.net/pm/.
Energy/Oil Spill Bill Sees Further Delay
Senate Democrats have again postponed a vote on an energy bill, which has become mostly an oil spill bill. The plans now are to return to the issue in September after the August congressional recess.
When they return, Democrats are likely to make some changes to the bill, though how many is unclear, as they attempt to formulate legislation that will win the necessary 60 votes needed for passage. Meanwhile many different energy interest groups continue working to affect its direction. Some of the key struggles over the recess
include efforts by energy majors pushing for the Senate to reconsider removing caps on liability for companies that cause oil spills, environmental groups urging support for a cap on carbon-dioxide emissions, and renewable groups working for a renewable electricity standard and tax credit extensions.
In the view of some Washington observers, the odds of any significant energy bill passing this year seem long, but the Senate Leadership has been leaving open the door to finding a way to 60 votes.
See http://www.nytimes.com/gwire/2010/08/05/05greenwire-fallout-begins-after-senates-failure-to-act-on-54000.html and http://online.wsj.com/article/SB10001424052748703748904575411170816612944.html.
GEA Las Vegas Utilities Workshop Attracts Geothermal Newcomers
Over 130 hundred representatives from various organizations braved the oppressive Nevada heat to attend the Geothermal Energy Associations (GEA) Geothermal Energy and Utilities, Co-ops and Public Power Workshop on July 22, 2010. The day-long workshop saw attendees and presenters coming from a variety of backgrounds within the geothermal energy industry in order to expound on and learn about the opportunities and obstacles facing the geothermal industry.
The workshop featured 10 different panels addressing a multitude of timely topics from investor and municipally owned utilities to other pertinent subjects such as transmission issues and analytical approaches to geothermal risk assessment. Karl Gawell, GEA Executive Director highlighted the dramatic growth of the industry; panelists on the Federal and State Support for Utilities and Renewables panel highlighted incentives for the development of geothermal energy. Dan Schochet of Ram Power spoke to the transmission developments that are needed to meet the growing need for clean geothermal energy in both Nevada and the greater West. Perhaps just as striking as the multitude of panel topics was the variety of organizations represented at the workshop. Newly developing sectors of the geothermal industry such as hydrocarbon and geothermal co-production companies were represented. State and government officials were represented and provided presentations on how their organizations support geothermal energy. Representatives from developers, law firms, and equipment suppliers also participated in the workshop.
The utility panels highlighted the growing importance of geothermal energy in the region. Dan Chase, Contract Negotiator, Renewable & Alternative Power, Southern California Edison noted that 17% of customers’ needs are met with renewable energy, of which 57% is provided by geothermal energy.
While the variety of organizations present at the workshop was significant its most impressive achievement was the number of newcomers in attendance. “It was gratifying to look at the attendance list for this workshop and see companies and organizations that we haven’t seen at our events before. That speaks not only to the importance of the workshops focused topic but also the increased recognition of geothermal energy as a viable source of clean renewable energy in Nevada and the region,” said GEA Research Associate Dan Jennejohn.
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