A weekly newsletter from the U.S. Department of Energy's (DOE) 
<http://www.eere.energy.gov/>Office of Energy Efficiency and 
Renewable Energy (EERE).

February 04, 2004

<#news>News and Events

<#6623>President's Budget Retains Funds for Energy Efficiency, Renewable Energy
<#6624>DOE Budget Proposal Boosts Hydrogen Fuel Initiative Funding
<#6625>2005 Budget Includes Tax Credits for Renewables and Energy Efficiency
<#6622>DOE and States to Jointly Fund 13 Energy Efficiency Projects
<#6626>Twelve States Form Alliance to Leverage Clean Energy Funds
<#6621>EnergySmart Schools Program Earns School Board Association Endorsement

<#energy>Energy Connections

Voluntary U.S. Greenhouse Gas Reductions Increased in 2002



News and Events

President's Budget Retains Funds for Energy Efficiency, Renewable Energy

 
The President's Cabinet received a budget briefing on Monday morning.
Credit: Eric Draper, White House

President Bush released his proposed federal budget for fiscal year 
(FY) 2005 on Monday. The proposed budget increases defense spending 
by 7 percent and homeland security spending by nearly 10 percent, 
while holding the growth in all other spending to 0.5 percent. In 
light of the tight fiscal constraints, DOE's Office of Energy 
Efficiency and Renewable Energy (EERE) faired well: the FY 2005 
budget request for EERE is $1.25 billion, a $15.3-million increase 
over the comparable funding level in FY 2004, or about a 1.2 percent 
increase. That proposed budget increase includes a 4.8 percent 
increase in funding for the renewable energy programs, while holding 
energy efficiency funding essentially level (a 0.2 percent decrease). 
As noted in the EERE "Budget-in-Brief" for FY 2005, DOE allocates 
more funding for energy efficiency and renewable energy than it does 
for any other energy activity. See the 
<http://www.whitehouse.gov/news/releases/2004/02/20040202-4.html>White 
House budget briefing, a 
<http://www.whitehouse.gov/infocus/budget/index.html>summary of the 
overall federal budget proposal, and the 
<http://www.whitehouse.gov/omb/budget/fy2005/>full budget proposal, 
all of which are posted on the White House Web site. EERE's 
"Budget-in-Brief"-a detailed examination of EERE's proposed budget 
for FY 2005-is available on the 
<http://www.eere.energy.gov/office_eere/budget.html>EERE Web site.

According to EERE's detailed budget justifications, by 2025 its 
programs could yield more than $100 million in annual energy savings, 
a reduction of about 200 million metric tons in annual carbon 
emissions, a savings of about 2 million barrels of oil per day, and 
an annual reduction in natural gas consumption of more than 1.5 
quadrillion Btus. The programs could also avoid the need for some 
150,000 megawatts of new conventional power capacity, while 
increasing the flexibility and diversity of our electricity system 
and helping to avoid power shortages. See the budget justifications 
on the <http://www.eere.energy.gov/office_eere/budget.html>EERE Web 
site.

DOE is also working to assure that its taxpayer's dollars are well 
managed. Secretary of Energy Spencer Abraham noted last week that DOE 
was recently ranked first among cabinet-level agencies in 
implementing the President's Management Agenda (PMA), which aims to 
make agencies results-oriented organizations. The top ranking by the 
Office of Management and Budget reflects DOE's maximum use of human 
resources and efforts to integrate performance assessments into its 
budget requests, as well as its use of competitive outsourcing, 
E-Government, and improved financial management. See the 
<http://www.energy.gov/engine/content.do?PUBLIC_ID=14845&BT_CODE=PR_PR 
ESSRELEASES&TT_CODE=PRESSRELEASE>DOE press release.

DOE Budget Proposal Boosts Hydrogen Fuel Initiative Funding

 
President Bush and Energy Secretary Abraham inspect a fuel cell vehicle.

When the White House and Secretary of Energy Spencer Abraham unveiled 
DOE's proposed budget for fiscal year (FY) 2005 on Monday, both 
placed special emphasis on the President's Hydrogen Fuel Initiative. 
President Bush first announced the initiative during last year's 
State of the Union Address. The 2005 proposed budget includes $228 
million for the initiative, an increase of about $69 million, or 43 
percent, above 2004 funding. See the White House's 
<http://www.whitehouse.gov/omb/budget/fy2005/energy.html>summary of 
the proposed DOE budget.

Hydrogen holds the promise of an ultra-clean and secure energy option 
for America's future, and DOE will be at the forefront of 
implementing the President's Hydrogen Fuel Initiative in 2005. DOE's 
proposed FY 2005 budget for the initiative includes $173 million for 
the Office of Energy Efficiency and Renewable Energy (EERE); $9 
million for the Office of Nuclear Energy, Science and Technology; $16 
million for the Office of Fossil Energy; and $29 million for the 
Office of Science. The proposed FY 2005 budget also includes $0.8 
million for the U.S. Department of Transportation (DOT). This 
combined effort of four DOE offices and the DOT will support the 
continued development of technologies for clean hydrogen production 
and commercially viable hydrogen-powered fuel cells that power cars, 
trucks, homes, and businesses without the harmful effects of 
pollution or greenhouse gases. See the 
<http://www.energy.gov/engine/content.do?PUBLIC_ID=14860&BT_CODE=PR_PR 
ESSRELEASES&TT_CODE=PRESSRELEASE>DOE press release.

2005 Budget Includes Tax Credits for Renewables and Energy Efficiency

President Bush's proposed budget for fiscal year 2005 includes tax 
incentives totaling $4.1 billion through 2009 to spur the use of 
clean renewable energy and energy-efficient technologies. The tax 
incentives include credits for the purchase of hybrid and fuel-cell 
vehicles and residential solar heating systems. Tax credits are also 
included for energy produced from landfill gas and electricity 
produced from renewable energy sources, such as wind and biomass, and 
from combined heat and power systems. All of these incentives are 
included in energy legislation currently pending in the Congress. See 
the White House's 
<http://www.whitehouse.gov/omb/budget/fy2005/energy.html>summary of 
the proposed DOE budget.

DOE and States to Jointly Fund 13 Energy Efficiency Projects

DOE announced on January 30th that 13 new energy efficiency projects 
have been selected for funding under the innovative State 
Technologies Advancement Collaborative (STAC). DOE will provide more 
than $7 million for the projects, to be matched with nearly $10 
million provided by state governments. Many of the projects are 
multi-state collaborations, so the 13 projects actually involve 31 
states. For instance, New York and New Jersey are contributing to a 
project to increase the energy efficiency of heating and cooling 
systems in the Northeast; Illinois and Ohio are helping to develop a 
protocol for energy-assessment audits at chemical plants; and North 
Carolina, South Carolina, and Georgia are demonstrating new services 
that provide electricity to trucks parked at truck stops, allowing 
truckers to shut off their engines. Parked trucks use a considerable 
amount of energy, since truckers typically idle their engines to 
maintain power to their cabs. See the 
<http://www.energy.gov/engine/content.do?PUBLIC_ID=14846&BT_CODE=PR_PR 
ESSRELEASES&TT_CODE=PRESSRELEASE>DOE press release.

The National Association of State Energy Officials (NASEO) will 
manage the STAC projects. DOE, NASEO, and the Association of State 
Energy Research and Technology Transfer Institutions established STAC 
in November 2002. See the <http://www.naseo.org/stac/>STAC Web page 
on the NASEO Web site.

Truck idling is also being tackled by DOE's Advanced Vehicle Testing 
Activity, which has awarded project grants to Caterpillar Inc. and 
Schneider National Inc. The companies will investigate technologies 
that heat and cool truck cabs while the engines are shut down. DOE is 
awarding more than $550,000 to the two companies, which will spend at 
least twice that amount on the research projects. According to 
industry experts, truck idling consumes more than 800 million gallons 
of fuel each year. See the 
<http://www.nrel.gov/news/press/2004/0404_truck_idling.html>press 
release from DOE's National Renewable Energy Laboratory.

Twelve States Form Alliance to Leverage Clean Energy Funds

Seventeen "clean energy" public funds from 12 states across the 
country banded together last week to promote clean energy projects 
and companies through a new non-profit organization called the Clean 
Energy States Alliance (CESA). CESA expects the clean energy funds 
from the 12 states-California, Connecticut, Illinois, Massachusetts, 
Minnesota, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode 
Island, and Wisconsin-to total $3.5 billion over the next decade. 
CESA will launch a number of joint initiatives to promote solar 
energy, wind power, fuel cells, and other clean energy technologies, 
combining the power of many states for more effective strategies 
while reducing the costs of individual state programs. See the 
<http://www.cleanenergystates.org/index.html>CESA Web site and CESA's 
January 29th press release 
(<http://www.cleanenergystates.org/library/Press/CESA%20Press%20Releas 
e%20-%2001.29.04.Final.pdf>PDF 145 KB). 
<http://www.adobe.com/products/acrobat/alternate.html>Download 
Acrobat Reader.

EnergySmart Schools Program Earns School Board Association Endorsement

The Board of Directors of the National School Boards Association 
(NSBA) have unanimously endorsed DOE's EnergySmart Schools program. 
Secretary of Energy Spencer Abraham accepted the official endorsement 
on January 28th during a meeting at DOE headquarters. DOE is the 
first federal agency to receive an endorsement from the association. 
See the 
<http://www.energy.gov/engine/content.do?PUBLIC_ID=14842&BT_CODE=PR_PR 
ESSRELEASES&TT_CODE=PRESSRELEASE>DOE press release.

The EnergySmart Schools program focuses on saving money for U.S. 
schools through reduced energy use, while creating a healthier and 
more learning-friendly classroom environment. According to DOE, about 
25 percent of the energy used in U.S. schools is wasted because of 
energy inefficiency in their systems and operations. For a typical 
school, this amounts to about $100,000 in expenses for wasted energy 
each year. While improving energy use in schools and bus fleets, the 
EnergySmart Schools program also contributes educational materials 
that allow students to learn about energy efficiency and renewable 
energy, a combination that earned kudos from the NSBA for its 
"holistic approach." In addition, the NSBA endorsement reflects 
EnergySmart Schools' production of "Energy Design Guidelines for High 
Performance Schools," a seven-book series of guidelines tailored to 
specific climate zones. See the 
<http://www.energysmartschools.gov>EnergySmart Schools program Web 
site.



Energy Connections

Voluntary U.S. Greenhouse Gas Reductions Increased in 2002

More than 228 U.S. companies and other entities voluntary cut the 
equivalent of 265 million metric tons of carbon dioxide emissions in 
2002, according to the DOE's Energy Information Administration (EIA). 
The entities also took actions that indirectly avoided the equivalent 
of 79 million metric tons of carbon dioxide emissions, while 
sequestering 7 million metric tons of carbon dioxide. In addition, 
reductions equal to 17 million metric tons of carbon dioxide were 
reported via a form that doesn't distinguish between direct and 
indirect emissions cuts. Altogether, the 2,027 voluntary projects 
represent 3.9 percent of all U.S. greenhouse gas emissions, up from 
3.2 percent in 2001. EIA summarized the results in its report, 
"Voluntary Reporting of Greenhouse Gases 2002," released on January 
30th. See the <http://www.eia.doe.gov/neic/press/press228.html>EIA 
press release, or go directly to either the summary report 
(<http://www.eia.doe.gov/oiaf/1605/vrrpt/pdf/summary.pdf>PDF 120 KB) 
or the full report 
(<http://www.eia.doe.gov/oiaf/1605/vrrpt/pdf/0608(02).pdf>PDF 1.0 
MB). <http://www.adobe.com/products/acrobat/alternate.html>Download 
Acrobat Reader.

Meanwhile, the Chicago Climate Exchange (CCX)-billed as the world's 
first multinational and multi-sector market for reducing and trading 
greenhouse gas emissions-announced on Monday that its January trading 
volume was 82,800 metric tons of carbon dioxide, more than double the 
trading volume in December 2003. According to the CCX, more 
participants traded greenhouse gas emissions in January, and they 
exchanged larger lots. See the CCX press release 
(<http://www.chicagoclimatex.com/news/pdf/CCXPressRelease020204-Jan04T 
radingResults.pdf>PDF 13 KB).



This newsletter is funded by DOE's 
<http://www.eere.energy.gov/>Office of Energy Efficiency and 
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