U.S. Federal and Regulatory Developments
Senate panel to probe impact of MTBE phaseout, March 28, 2006, Reuters
A U.S. Senate panel will hear from Bush administration officials about possible gasoline shortages spurred by the oil industry's decision to remove a water-polluting additive from U.S. supplies. Because of fears of lawsuits for continuing to use MTBE, or methyl tertiary butyl ether, the industry is switching over to fuel ethanol, a move that oil refiners have said could boost prices and crimp supplies despite high commercial fuel stocks.
Energy Security
Official warns of unsecured nuclear reactors, March 27, 2006, USA Today
One-third of the world's 130 civilian nuclear research reactors lack security upgrades needed to prevent theft of materials that terrorists could use to build an atomic bomb, the chief U.S. nuclear proliferation official says. Linton Brooks, director of the National Nuclear Security Administration, said most of these reactors use highly enriched uranium, the easiest fuel used to make atomic bombs.
Testers Slip Radioactive Materials Over Borders, March 28, 2006, The New York Times
Undercover Congressional investigators successfully smuggled into the United States enough radioactive material to make two dirty bombs, even after it set off alarms on radiation detectors installed at border checkpoints, a new report says. The test, conducted in December by the Government Accountability Office, demonstrated the mixed progress by the Department of Homeland Security, among other federal agencies, in trying to prevent terrorists from smuggling radioactive material into the United States. Click here for the report, the highlights, and testimony.
Industry Developments
Oil & Natural Gas
As prices surge, oil giants turn sludge into gold, March 27, 2006, Associated Press
Heavy-duty oil-extraction projects are turning Fort McMurray, Alberta into the first great oil boom town of the 21st century. A Florida-size section of sandy soil beneath the boreal forest in this sparsely populated area of Northern Canada is loaded with bottom-of-the-barrel petroleum. These deposits were once dismissed as "unconventional" oil that couldn't be recovered economically. But now, thanks to rising global oil prices and improved technology, most oil-industry experts count oil sands as recoverable reserves.
Vague law and hard lobbying add up to billions for Big Oil, March 27, 2006, New York Times
For more than a decade, lawmakers and administration officials, both Republicans and Democrats, have promised there would be no cost to taxpayers for a program allowing companies to avoid paying the government royalties on oil and gas produced in publicly owned waters in the Gulf. But last month, the Bush administration confirmed that it expected the government to waive about $7 billion in royalties over the next five years, even though the industry incentive was expressly conceived of for times when energy prices were low.
Rule change allows drilling expansion, March 27, 2006, The Billings Gazette
Under rules changes implemented under the Energy Policy Act of 2005, oil and gas companies will be allowed to expand their operations in Colorado and Wyoming. The Mineral Leasing Act of 1920 had limited federal and oil and gas leases to 246,080 acres in any state.
The new rule expands the type of leases exempt from the limit and also exempts leases that are jointly administered by more than one company.
Refinery invests millions for cleaner emissions, March 27, 2006, Casper Star-Tribune
By June, all U.S. refineries must be able to produce diesel fuel that has at most 15 parts per million of sulfur for use by vehicles like buses and trucks that use the nation's highways. The goal is to cut the amount of sulfur dioxide coming out of tailpipes. The current cap is 500 parts per million, which was set about two decades ago. The change means that Frontier Oil Corp. refinery in south Cheyenne is investing about $14 million in its Cheyenne facility.
Gov, forests reach roadless accord, March 24, 2006, Casper Star-Tribune
In an apparent effort to protect roadless areas, Gov. Dave Freudenthal and the U.S. Forest Service have agreed not to approve any new oil and gas and mineral leases in roadless areas in two national forests. The agreement affects the Bridger-Teton and Shoshone national forests only until new forest plans, which are under way, are completed. But exactly what this means for lands set for lease sale is unclear.
Riding High on a Tide of Oil, March 28, 2006, The New York Times
With oil prices high again, Alberta is hopping once more, but with a twist. The skyline of Calgary, the business center of the province, is about to be altered by a large real estate project, and a big new jet runway to handle the influx of oil workers is already in place. The change is reflected in the very nature of the oil business here: once built around conventional drilling, in which independents played a major role, oil is now extracted through a heavy industrial process requiring huge capital investments.
State seeks remedy to oil glut, March 28, 2006, Casper Star-Tribune
Gov. Dave Freudenthal met with state energy officials and oil representatives to discuss potential remedies for depressed oil prices. Wyoming oil producers recently experienced a dramatic drop in prices for crude oil, as much as 32 percent compared to Texas. The depressed prices worry state officials because officials estimated Wyoming oil at $45 per barrel for the year, meaning actual tax revenue from oil could fall short if the situation persists.
Environmental groups challenge assessment on oilsands project, March 28, 2006, Calgary Herald
Several environmental groups are asking the Supreme Court of Canada to hear an appeal that would broaden the federal government's environmental review of a massive oilsands project in northern Alberta. Petro-Canada, which is the lead partner in the $5 billion project, said they went through a rigorous environmental assessment and approval process in 2002 with the province of Alberta that included reviews of emissions, effects on watersheds and even the socio-economic effects on local residents.
No easy answers to oil limits, March 29, 2006, Casper Star-Tribune
Refinery capacity is expected to return to normal by mid-April, but there may be no easy remedy for the vulnerability oil producers face in Wyoming and throughout the northern Rockies, according to the Wyoming Pipeline Authority. Although international oil producers are gushing with record profits, a steady 20-year decline in production in Colorado, Wyoming and Montana has allowed Canadian tar-sands oil to fill pipeline and refinery contracts in the region.
Coal
Clean-coal effort off to slow start, Mach 26, 2006, Knight Ridder Newspapers
Three years after he first announced it, the centerpiece of President Bush's plan to produce electricity from coal without adding to global warming is finally getting under way. But it's off to a small start. Critics say the effort, known as "FutureGen," is too little and too late. The goal of FutureGen is to demonstrate a new kind of electric power plant that will capture the carbon dioxide (CO2) emitted by burning coal and keep it out of the atmosphere permanently.
Study calls for US to make greater use of coal, March 23, 2006, Power Engineering
Additional use of coal for electricity generation would reduce domestic energy costs by 33 per cent according to a study released by the US National Coal Council. The study highlighted that the US has enough coal reserves to support 100 GW of new electricity generation capacity. According to the study, the US Energy Information Administration projects that energy consumption will increase 27 per cent through 2030 and while coal is an abundant source, the challenge will be in developing cost effective clean coal technology.
State sees less mercury in future, March 27, 2006, The News & Observer
Progress Energy's large Roxboro power plant north of Durham spews nearly 700 pounds of mercury into the air a year from burning coal, making it one of the state's largest sources of mercury. Scrubbers being installed at the plant to reduce smog and soot will have the extra benefit of reducing emissions of mercury, a toxic pollutant that contaminates fish and can damage children's nervous systems.
Mining
EPA exemptions at heart of dust-up, March 27, 2006, The Salt Lake Tribune
The federal government plans to exempt some big dust-makers from new air-pollution controls. Environmental groups, a University of Utah pollution researcher and regulators plan to raise their concerns with the U.S. Environmental Protection Agency. Growing evidence suggests particles, breathed in, wreak havoc with the heart and lungs. A growing body of research traces particle pollution to tens of thousands of hospitalizations and premature deaths each year.
Judge blocks permit for Rock Creek Mine, March 28, 2006, The Missoulian
A proposed copper and silver mine beneath the Cabinet Mountains Wilderness in northwestern Montana is being blocked, again, by a court decision. The state water-quality permit for the Rock Creek Mine would allow it to send too much arsenic into groundwater, violating the Montana Constitution's guarantee of a clean and healthful environment, a state judge ruled in a decision. The permit must be rewritten before the mine may move forward, District Judge Jeffrey Sherlock said.
New law may hamper Nevada mining watchdog group, March 28, 2006, Associated Press
The chief proponent of a new law cited by the state in trying to block a mining industry watchdog group's efforts to stop pollution from an old Nevada gold mine said that he didn't envision the law being used that way. Lobbyist Jim Wadhams said he pushed the legislation on behalf of independent insurance agents. His numerous clients include Newmont Mining Corp., but Wadhams said the mining industry wasn't involved in the effort to pass SB428. A review of committee testimony on the bill turned up no mention of the industry.
Gold mine pollution hearing scheduled, March 28, 2006, Las Vegas Review-Journal
The Nevada Environmental Commission plans to hold a hearing regarding claims by a mining industry watchdog group that a state agency failed to prevent pollution from a closed gold mine in Elko County from reaching the Humboldt River. The commission will hear an appeal filed by Great Basin Mine Watch that challenges the state Environmental Protection Division's oversight of the old Big Springs Mine, owned by the AngloGold Ashanti corporation.
Stumbo warns of legal action if water sullied, March 28, 2006, Lexington Herald-Leader
Attorney General Greg Stumbo threatened legal action to stop a Virginia mining company from polluting drinking water supplies in Eastern Kentucky. Consol Energy has applied for a permit from the Virginia Department of Mines, Minerals and Energy to discharge water from the company's Buchanan No. 1 mine into the Levisa Fork of the Big Sandy River. If issued, the permit would result in more than a billion gallons of mine water being released into Kentucky's waterways, about 40 miles upstream from Pikeville.
Nuclear
Yucca Mountain: Quality Assurance at DOE's Planned Nuclear Waste Repository
Needs Increased Management Attention, March 17, 2006, Government Accountability Office
Click here for the full report and click here for the highlights.
U.S. confronts issue of 'loose nukes' on several fronts, March 27, 2006, USA Today
Nuclear materials from Soviet warheads that once threatened U.S. cities are now helping to light them up. With little fanfare, U.S. utilities have been buying uranium that once sat in Soviet nuclear weapons to fuel civilian nuclear power reactors. The program supplies half the uranium used by U.S. nuclear plants which, in turn, generate 20% of all U.S. commercial power. That means, essentially, that one in every 10 light bulbs in America is powered by uranium that once sat atop a Russian missile.
Solar
Commission Proposes Reduction in California Solar Initiative Incentive, March 23, 2006, Solarbuzz.com
On March 20, 2006, the assigned Administrative Law Judge (ALJ) received notice from the Commission's Energy Division staff that 2006 solar PV project applications for CSI funds have exceeded the 50 MW trigger set forth in docket D.06-01-024. The total applications in hand as of March 9, 2006 total 91 Megawatts. T ruling provides notice to the parties that the 50 MW trigger has been reached and all applications in excess of the 50 MW threshold, up to the next trigger at 70 MW, will automatically receive the lower incentive payment of $2.50/watt.
Global Solar will be sold to investors, March 29, 2006, Arizona Daily Star
Tucson-based UniSource Energy Corp. has agreed to sell its local Global Solar Energy Inc. subsidiary to European investors who plan to boost the company's production of solar-electric material. The buyers are a European venture capitalist along with Germany-based Solon AG, which produces photovoltaic materials. The sale doesn't come as a surprise. Global Solar lost $12.5 million in 2004 and 2005 as part of Millennium Energy.
Utilities
U.S. States in CO2 Pact Eye Trees, Methane at Dumps, March 24, 2006, Reuters
Power plants in the U.S. Northeast who may face rules to cut carbon dioxide emissions could be allowed to save costs by methods such as planting trees and tapping landfills for methane, according to a draft plan by Northeastern states who have signed the country's first regional greenhouse gas plan. In the cap and trade market the RGGI envisions, the states would hand power plants CO2 emissions targets. If the plants cut emissions under those limits they would earn credits, or allowances, that they could sell to plants that chose not to cut emissions.
Xcel Energy Seeking 'Non-Wind' Renewable Energy for Southwest, March 24, 2006, Businesswire
Xcel Energy has issued a request for proposals for about 40,500 megawatt-hours of annual renewable energy or renewable energy certificates to be generated from renewable technologies other than wind turbines. The energy would serve customers of Xcel Energy's Southwestern Public Service Company. Eligible technologies are: solar, hydropower, geothermal, fuel cells that are not fossil-fueled, landfill gas and anaerobically digested waste biomass, and biomass.
Edison Moves to Reopen Big Desert Power Plant, March 28, 2006, Los Angeles Times
Under a proposed agreement with Edison, the Navajo nation and the Hopi tribe of northern Arizona would supply the 1,585-megawatt plant in Laughlin, Nev., with water from tribal lands and coal from the Black Mesa mine, which is owned by the tribes and operated by Peabody Energy Corp. In return, Edison and its partners in the Mohave power plant would make a series of payments to the tribes.
Duke says to close Cinergy deal April 1, March 27, 2006, Reuters
Duke Energy Corp. said it would complete its purchase of rival utility Cinergy Corp. on April 1, having accepted an order from the North Carolina Utilities Commission approving the deal. The deal has already been approved by shareholders, federal agencies and regulators in four other states. The merger, announced in May 2005, will create one of the biggest U.S. utilities, with about $70 billion in assets and operations in more than two-thirds of the United States and parts of Canada.
Pa. utility agrees to $125M settlement in thermal water pollution case, March 28, 2006, WasteNews.com
A Pennsylvania power producer will spend $125 million to cool discharge water from its York County, Pa., electric generation station under an agreement with the state. PPL Corp. agreed to a Pennsylvania Department of Environmental Protection consent order that requires the company to install cooling towers at its 1,485-megawatt Brunner Island power plant. The company also will pay a $183,386 civil penalty, which the DEP will use for river improvements.
New coal-burning power plant, March 26, 2006, The Paris (TX) News
A growing need for future electric capacity is leading to the development of a new 750-megawatt power plant in Southeast Oklahoma. Western Farmers Electric Cooperative in partnership with Brazos Electric Power Cooperative plans to construct the plant, a $1.2 billion investment. The construction site for the plant, known as Hugo 2, is adjacent to Hugo 1, WFEC’s existing plant near Fort Towson, Okla.
Wind
FirstEnergy will buy wind power, March 27, 2006, The Akron Beacon Journal
FirstEnergy Corp. announced that it has a 23-year agreement to buy 80 megawatts of wind power from a Pennsylvania wind farm. The Allegheny Ridge Wind Farm will be near Altoona, Pa., and is planned to have 40 turbines rated at 2 megawatts each. The farm is being developed by Gamesa Energy USA, a wholly owned subsidiary of Gamesa Group, a publicly traded Spanish wind-energy company with its North American headquarters in Philadelphia.
Audubon review supports wind farm, March 29, 2006, Boston Globe
The Massachusetts Audubon Society gave its preliminary blessing to a large-scale wind power project off Cape Cod, saying its studies show that turbine blades are not likely to cause significant harm to birds, as the group had once feared. Support from the environmental group is important because the threat to birds has emerged as a controversial aspect of the five-year-old proposal to turn stiff sea breezes into a source of electricity.
Energy - general
UW kicks off energy school effort, March 24, 2006, Casper Star-Tribune
Legislation establishing a School of Energy Resources at the University of Wyoming was signed by Gov. Dave Freudenthal and welcomed by UW President Tom Buchanan as both an opportunity and a challenge for the university. The new school is backed by a $12.1 million appropriation for its first two years, would cut across departmental lines and is expected to bring nationally and internationally known faculty members to the campus to teach courses and conduct research.
Renewable energy – general
Alternative energy firms expand in New York, March 26, 2006, Rochester Democrat and Chronicle
More than 40 companies from Niagara Falls to Ithaca are exploring some manner of renewable fuel technology, according to the Renewable Energy Network of Entrepreneurs in Western New York, or RENEW-NY, a group helping to promote and encourage such businesses. The companies range from those working on wind and solar power and fuel cell developers to businesses with innovative ways to dispose of industrial waste and capture the byproducts for power generation.
On the Ethanol Bandwagon, Big Names And Big Risks, March 26, 2006, New York Times
Can investors whose pockets are not as deep jump into the ethanol market? Yes, but they are taking a big risk. Picking long-term winners among the companies that make ethanol or, for that matter, develop other alternative energy technologies is a very uncertain business. The few public companies that focus on ethanol are typically unprofitable. Many ethanol companies are privately held, making them inaccessible to most investors.
Ethanol Crunch May Boost US Gasoline Prices, March 28, 2006, Reuters
In a few months gasoline at more than a third of US pumps will contain ethanol, renewable fuel made from crops like corn and sugar, bringing the world's biggest energy consumer a small step closer to reducing its dependence on foreign oil. But the road may be rocky for the nation's drivers, who are likely to face higher costs when they gas up their tanks for summer vacation season as farmers race to keep up with the expected surge in ethanol demand.
Michigan sets sights on ethanol to become an energy hotbed, March 29, 2006, Detroit Free Press
With growing uncertainty in the petroleum market and a national mandate to explore new areas of energy, the construction of at least four production plants could be a sign that Michigan plans to be a significant player in the creation of an ethanol corridor in the Midwest.
Michigan is among the nation's leading corn producers with more than 257 million bushels a year. The state has one ethanol plant in Caro, where Michigan Ethanol LLC makes 45 million gallons a year. But Michigan still is 11th in the nation in terms of overall production.
Carbon cloud over a green fuel, March 23, 2006, The Christian Science Monitor
Late last year in Goldfield, Iowa, a refinery began pumping out a stream of ethanol, which supporters call the clean, renewable fuel of the future. There's just one twist: The plant is burning 300 tons of coal a day to turn corn into ethanol, the first US plant of its kind to use coal instead of cleaner natural gas.
Xcel to increase renewable energy in Minnesota, March 27, 2006, Minneapolis/St. Paul Business Journal
Xcel Energy Inc. has agreed to accelerate its plans to expand its wind energy development in Minnesota. Minneapolis-based Xcel plans to secure as much as 500 megawatts of community-based energy development (C-BED) by 2010. The company said 300 megawatts of C-BED projects are underway in rural Minnesota, with implementation expected by 2007.
The commitment is a major step toward Gov. Tim Pawlenty's goal of 800 megawatts of C-BED in the state by 2010.
Conferences and Hearings
The Wall Street Green Trading Summit
April 4-5, 2006, Bloomberg Headquarters, 731 Lexington Avenue, NY, NY
Green Trading has become a mainstream market-driven solution with higher visibility than ever before. Increased focus and attention by hedge funds and venture capitalists have accelerated commercialization of clean technology, renewable energy and market-driven emissions solutions.
Getting Ready for the New Southwest Power Pool (SPP) Market
April 11, 2006, Marriott Denver City Center, Denver, CO
The goal of this one-day workshop is to prepare market participants for the new SPP market, which is planned to start on May 1, 2006.
Environmental Markets: A Leading Indicator?
April 23-25, 2006, Trump International Sonesta Beach Resort, Sunny Isles Beach, FL
This two-day conference will consist of our widely-accepted Emissions Trading 101 Workshop, thought-provoking presentations, essential networking opportunities, receptions, and an in depth panel discussion in an effort to fully examine the influence of environmental markets.
Flexible Power Contracting: Increasing Value and Reducing Risk
April 27-28, 2006, Radisson Plaza Lord Baltimore, Baltimore, MD
This workshop focuses on flexibility, or optionality, in power contracts. Optionality refers to the ability to adjust contract terms as events unfold and conditions change over time.
Western Power Supply Forum
May 8-10, 2006, Radisson Salt Lake City Downtown, Salt Lake City, UT
An opportunity to network with the West’s leading utilities, independent power producers and regulators to explore today’s problems and tomorrow’s potential solutions to the coming power generation shortfall!
International
Wind power 'ahead of predictions', March 27, 2006
Onshore wind farms will provide about 5% of Britain's electricity by 2010, according to the British Wind Energy Association (BWEA). In a new report, it says turbines are being installed faster than predicted. If this is correct, onshore wind farms will take the government halfway to its target of generating 10% of electricity from renewable sources by 2010. The report comes a day before the government unveils a major review of its climate change policies.
Most EU leaders back reviving nuclear power, March 27, 2006, The Guardian
The overwhelming majority of leaders at last week's European Union summit, including Tony Blair, strongly backed a revival of nuclear power as the answer to Europe's growing dependence on overseas supplies and to combat climate change. Only Germany and Austria explicitly rejected the nuclear option in secret summit talks, according to senior German diplomats, who pointed out that Angela Merkel, the chancellor and a trained physicist, favoured it personally but was bound by her Social Democrat coalition partners to reject it.
Japan's shaky nuclear record, March 24, 2006, BBC News Online
The decision by a Japanese court to order the closure of the country's newest nuclear reactor casts a shadow over the future of Japan's nuclear power industry. Japan, with few natural resources of its own to meet its high energy demand, is very reliant on nuclear power. But a string of safety scares has prompted analysts to ask whether Japan is over-reliant for its energy on a potentially dangerous industry.
UNIDO inaugurates major solar energy project in Gansu, March 26, 2006, Xinhuanet
The project of UNIDO International Centre for the Promotion and Transfer of Solar Energy Technology aims primarily to promote the exchange of solar technology and enhance international cooperation among developing countries in the field, by providing an information exchange platform and relevant training programs, in Lanzhou, capital of Northwest China's Gansu Province. Gansu Province, with abundant solar resources, is leading the research, development and application of solar energy technology in China.
Sweet energy path for Brazil, March 25, 2006, Chicago Tribune
If there were any doubt about ethanol's mainstream role as an alternative fuel in Brazil, it was wiped away this year. Brazil's ethanol producers welcomed the push that President Bush gave to alternative and renewable fuels during his State of the Union speech in January. It brought attention to the issue of renewable energy, not just from average Americans concerned about their country's future but also from international investors looking at Brazil's lucrative potential for ethanol production. Brazil's success with ethanol offers a stark comparison with the role of alternative fuels in the United States.
Britain Eyes Commercially Viable Clean Energy, March 27, 2006, Reuters
A new 1 billion pound (US$1.73 billion) energy research programme, wants to bring to market clean energy technologies. Energy supply is a hot topic as developed countries including Britain plan to overhaul ageing energy assets. The development of clean, domestic energy sources such as hydrogen cells and renewables is a priority to counter concerns over the security of fuel imports and the climate-change effects of burning conventional fossil fuels such as coal.
Cuba builds new power plants to ease energy shortages, March 26, 2006, Xinhua Newswire
Cuba is building new power plants in its capital Havana to save energy and ease the pressure of electric power shortages in summer. More than 3,000 new generators have been installed, said Cuban government officials, noting that the new plants will provide Havana, a city with a population of 11.2 million, with high quality power service in the sweltering summer season.
France's nuclear push transforms energy equation, March 28, 2006, The Wall Street Journal
France produces 78 percent of its electricity from nuclear power, more than four times both the U.S. share and the world average. The policy has slashed France's dependence on foreign energy and given it one of the lowest rates of greenhouse-gas emissions in the industrialized world. France's push hasn't been painless and isn't a panacea. The French government hatched and coddled a nuclear industry that has cost an estimated $120 billion. In doing so, the country has accepted risks. French plants have been hit by sporadic radiation leaks.