Weekly Clean Energy Roundup: April 1, 2009

  • DOE: $3.2B in Energy Efficiency Block Grants
  • Cathy Zoi Nominated for the Assistant Secretary of EERE
  • Obama Launches International Climate Forum
  • Fuel Economy Standards Raised 2 mpg for Model Year 2011
  • Tesla Motors Unveils All-Electric Sedan
  • 2010 Honda Insight Goes on Sale, Under $20,000
  • EIA: High Oil Prices, GHG Controls Helps Clean Energy

    DOE to Award $3.2 Billion in Energy Efficiency Block Grants

    DOE announced last week that it plans to invest $3.2 billion in energy efficiency and conservation projects in U.S. cities, counties, states, territories, and tribal lands. The Energy Efficiency and Conservation Block Grant program, funded by the American Recovery and Reinvestment Act, will provide formula grants for projects that improve energy efficiency and reduce fossil fuel emissions. Funding is based on a formula that accounts for population and energy use, and to ensure accountability, DOE will provide guidance to grant recipients and require them to report on the number of jobs created or retained, energy saved, renewable energy capacity installed, greenhouse gas emissions reduced, and funds leveraged.

    The funding will support energy audits and energy efficiency retrofits in residential and commercial buildings, the development and implementation of advanced building codes and inspections, and the creation of financial incentive programs for energy efficiency improvements. The grant funds could also go towards transportation programs that conserve energy, projects to reduce and capture methane emissions from landfills, renewable energy installations on government buildings, energy-efficient traffic signals and street lights, combined heat and power systems, district heating and cooling systems, and other projects.

    Cities and counties will receive nearly $1.9 billion under the block grant program, while states and territories will receive nearly $770 million, and more than $54 million will flow directly to tribal governments. States will receive and administer funds for those counties and cities that are not large enough to qualify for direct DOE funding. In addition, up to $456 million will be made available for local energy efficiency projects under a separate competitive solicitation to be released at a later date. See the DOE press release and the Web site for the Energy Efficiency and Conservation Block Grant Program.

    Cathy Zoi Nominated for the Assistant Secretary of EERE

    President Obama announced last week his intent to nominate several individuals to key federal positions, including the selection of Cathy Zoi as the nominee for DOE’s Assistant Secretary for Energy Efficiency and Renewable Energy (EERE). Zoi is the founding chief executive officer of the Alliance for Climate Protection, which was established and chaired by former Vice President Al Gore. The Alliance leads a multimillion-dollar effort to emphasize the urgency and solvability of global warming. Zoi served as the Chief of Staff in the White House Office on Environmental Policy in the Clinton-Gore administration, where she managed the team working on environmental and energy issues. She has also served as a manager of the U.S. Environmental Protection Agency (EPA), where she pioneered the Energy Star Program.

    Zoi has also worked for several energy-focused organizations, serving as the group executive director at the Bayard Group, recently renamed Landis+Gyr Holdings, which is a world leader in energy measurement technologies and systems; as the assistant director general of the New South Wales EPA in Sydney, Australia; and as the founding chief executive officer of the New South Wales Sustainable Energy Development Authority (SEDA), a $50 million fund to commercialize greenhouse-friendly technology. Under her leadership, SEDA launched the world’s first nationwide green power program and the world¹s largest solar-powered suburb. See the DOE press release and Zoi’s biography on the Alliance for Climate Protection Web site.

  • President Obama also intends to nominate Dr. Steven Koonin as Under Secretary for Science at DOE. Dr. Koonin is currently Chief Scientist for BP, where he is responsible for guiding the company’s long-range technology strategy, particularly in alternative and renewable energy sources. Koonin joined BP in 2004 following a 29-year career at the California Institute of Technology as a professor of theoretical physics, including a 9-year term as the institute’s provost. He has served on numerous advisory bodies for DOE and its national laboratories, and for the Science Foundation and the U.S. Department of Defense. Koonin’s research interests have included theoretical and computational physics, as well as global environmental science. He did his undergraduate work at the California Institute of Technology and has a PhD from the Massachusetts Institute of Technology. See the DOE press release.

    President Obama Launches an International Climate Forum

    President Obama announced the launch of the Major Economies Forum on Energy and Climate, which will facilitate candid dialogue among key developed and developing countries regarding efforts to advance clean energy and reduce greenhouse gas emissions. The forum is meant to generate the political leadership necessary to achieve a successful outcome at the United Nations (U.N.) climate change negotiations to be held in Copenhagen, Denmark, this December.

    The U.S. is currently participating in a preliminary round of climate change talks in Bonn, Germany, and by the time of the Copenhagen meeting, the U.N. hopes to establish the framework for an international climate change agreement that will succeed the Kyoto Protocol. See details on the climate negotiations on the Web site of the U.N. Framework Convention on Climate Change.

    For the new forum, President Obama has invited leaders of 16 major economies and the Secretary General of the United Nations to designate representatives that will participate in a preparatory session at the U.S. Department of State on April 27-28 in Washington, D.C.

    This and other preparatory sessions will culminate in a Major Economies Forum Leaders’ meeting, which Italian Prime Minister Silvio Berlusconi has agreed to host in La Maddalena, Italy, in July. In addition to the U.S., the major economies include Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, South Africa, and the UK. Due to their role in the climate change negotiations, Denmark and the U.N. have also been invited to participate in the forum. See the White House press release.

    Fuel Economy Standards Raised 2 mpg for Model Year 2011

    The U.S. Department of Transportation (DOT) posted new, higher fuel economy standards for model year (MY) 2011 cars and light trucks last week. The new Corporate Average Fuel Economy (CAFE) standards are expected to raise the average fuel economy of cars and light trucks to 27.3 miles per gallon (mpg), an increase of 2 mpg over the average fuel economy for MY 2010. Over the life of the new vehicles, the change will save about 887 million gallons of fuel, cutting greenhouse gas emissions by 8.3 million metric tons. The new standards mark the first step in achieving the requirements of the Energy Independence and Security Act of 2007, which requires the average fuel economy of cars and light trucks to be at least 35 mpg by MY 2020.

    The new standards reclassify more than a million two-wheel-drive vehicles as passenger cars rather than trucks, a change that pull downs the average fuel economy of passenger cars. Still, the standards are expected to increase the average fuel economy of MY 2011 passenger cars to 30.2 mpg, up from 27.5 mpg, while raising the average fuel economy of light trucks (vans, pickups, and sport utility vehicles) to 24.1 mpg.

    While the new standards impose a range of fuel economies based on vehicle size, each manufacturer’s domestic passenger cars must also achieve a minimum average fuel economy of 27.8 mpg or greater. The standards were published in the Federal Register on March 30 and will take effect on May 29. Petitions for reconsideration must be received by May 14. See the DOT press release and the new standards (PDF 6.1 MB).

    To allow automakers sufficient time to meet the standards, DOT had to issue the new CAFE standards by March 30, which forced the agency to rely on analyses generated under the Bush Administration. The DOT is now formulating CAFE standards for the 2012 model year and beyond, based on an updated analysis of fuel-saving technologies, market conditions, and automaker plans for new vehicles. The DOT also plans to draw on the results of an analysis of fuel-saving technologies performed by the National Academy of Science (NAS). The committee formed to produce that report generated a 28-page "letter report" in February 2008 but has fallen behind schedule in its production of a final report, which is now planned for completion by September. See the NAS project Web page and the letter report.

    Tesla Motors Unveils the Model S, an All-Electric Sedan

    Tesla Motors, Inc. started taking orders last week for its Model S, an all-electric family sedan that seats seven and can travel 300 miles per charge. The company currently sells the Tesla Roadster, a hot two-seat electric "supercar," which starts at a base price of more than $100,000. Unlike the Roadster sports car, the Model S falls more in the luxury sedan category and is available at about half the cost: $57,400. But being battery-powered, all Tesla vehicles qualify for a federal tax credit of $7,500. The company points out that if gasoline prices return to $4 per gallon, the Tesla Model S will save enough money to place it on par with a gasoline-fueled sedan priced at $35,000.

    Tesla is currently accepting refundable deposits of $5,000 for the Model S and plans to start production in late 2011, with vehicle deliveries starting in 2012. The company is hoping to finance the construction of the Model S assembly plant using a $350 million federal loan from DOE’s Advanced Technology Vehicle Manufacturing Program.

    If the loan goes through, the Model S will be available with a variety of battery packs, yielding a range of 160, 230, or 300 miles. It can be recharged using a standard 120-volt outlet or a 240-volt outlet (the type used for electric dryers), but it can be recharged in only 45 minutes if the owner has access to a 480-volt outlet. The floor-mounted battery pack is also designed to be changed out in only a few minutes, allowing for battery-swap services like those proposed by Better Place. (See the article from this newsletter on Better Place’s plans for California and Hawaii.)

    The Tesla Model S gains a unique advantage from its floor-mounted battery pack: the vehicle has a trunk in back and a trunk in the front. And although its performance will fall short of the Roadster, it will be able to accelerate to 60 miles per hour (mph) in less than 6 seconds, with an electronically limited top speed of 130 mph. A sports version will cut the 0-60 mph time to less than 5 seconds. Like the Roadster, the Tesla Model S will channel its power through a single-speed gearbox. See the Tesla press release and the Model S Web page.

    2010 Honda Insight Goes on Sale for Less Than $20,000

    Honda began selling the 2010 Honda Insight last week at a manufacturer’s suggested retail price (MSRP) of only $19,800, making it the most affordable hybrid vehicle available in the U.S. Unlike its earlier two-seater namesake, the new Insight is a five-passenger hatchback sedan that combines a four-cylinder engine with a 10-kilowatt electric motor.

    The U.S. EPA estimates the Insight’s fuel economy at 40 miles per gallon (mpg) in the city and 43 mpg on the highway, for a combined fuel economy of 41 mpg. The Insight’s fuel economy features include a continuously variable transmission and a cylinder deactivation system. The base model Insight LX comes with plenty of bells and whistles, but for those people who want extra features, the Insight EX has an MSRP of $21,300.

    Perhaps the biggest attention-getter of the new Insight is its driver feedback system, which changes the color of the speedometer from green to blue as your driving habits become less fuel-efficient. The vehicle will literally keep score on drivers as they head down the road, and the car’s dashboard will display up to five green leaves, with the number of leaves proportional to the driver’s "green driving" score. But Honda doesn’t say if you can separate your score from that of your lead-footed spouse … probably not. See the Honda press release and the Honda Insight Web site.

    EIA: High Oil Prices, GHG Controls Would Help Clean Energy Grow

    The growth of renewable energy and renewable fuels in the U.S. will be significantly greater under scenarios involving high oil prices and stricter controls on greenhouse gas emissions, according to DOE’s Energy Information Administration (EIA). The EIA released its full "Annual Energy Report" yesterday, which includes an examination of alternate scenarios for the future of U.S. energy. (See the article from this newsletter on the reference case, which was released in mid-December 2008.)

    One alternate scenario involves oil prices that reach $200 per barrel by 2030, rather than $130 per barrel under the reference case. That higher price drives biofuel production up by about 10%, reaching 40 billion gallons in 2030. It also cuts the percentage of imported liquid fuels from 41% of U.S. fuel demand in 2030 in the reference case to only 30% of U.S. fuel demand in the case of high oil prices.

    Likewise, limits on greenhouse gas (GHG) emissions spur renewable energy production, particularly for electrical power supplies. Although the EIA report examines only one legislative scenario – the legislation proposed by Senators Lieberman and Warner in the 110th Congress – it found a strong shift toward renewable energy, nuclear power, and fossil fuels with carbon capture and storage under that scenario.

    In fact, the percentage of the nation’s electricity generated with non-hydroelectric renewable energy sources doubles with GHG controls, from a 9% share in 2030 in the reference scenario to an 18% share under the climate legislation. Note that the report doesn’t account for legislation signed after November 2008, so it doesn’t include the effects of the American Recovery and Reinvestment Act of 2009. See the EIA’s Annual Energy Outlook 2009.

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    Kevin Eber is the Editor of EREE Network News, a weekly publication of the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE).

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