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 Renewable Energy (EERE) and is also available on the <http://www.eere.energy.gov/news/>EERE news page. You can <http://www.eere.energy.gov/news/about.cfm>subscribe to the EERE Network News using our simple online form, and you can also <http://www.eere.energy.gov/news/changes.cfm>update your email address or <http://www.eere.energy.gov/news/unsubscribe.cfm>unsubscribe online. 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