Green Policy

U.S. sets climate target ahead of summit29 Nov

President Obama is taking the goal of United States cutting 2005 emissions levels by 17% by 2020 to the climate talks in Copenhagen.  Hopefully China will take the lead and offer the same.  Although many feel this is not enough, it’s a start.  Found on msnbc.com.

WASHINGTON – President Barack Obama will attend the U.N. climate summit next month in Denmark, taking with him a target to reduce U.S. greenhouse gas emissions by 17 percent by 2020, the White House said Wednesday.

The pledge will not be part of a binding international treaty — the hopes for which have been dashed by the lack of a climate law coming out of Congress — but it will mimic the cuts passed by the House earlier this year. The Senate is still debating climate legislation.

“This provisional target” of 17 percent “is in line with current legislation in both chambers of Congress and demonstrates a significant contribution to a problem that the U.S. has neglected for too long,” the White House said in a statement.

Administration officials don’t want to repeat the mistake of the 1997 Kyoto climate accord, when the U.S. agreed to emission reductions but never implemented them because of strong political opposition at home. The U.S. never ratified the Kyoto agreement.

The president will attend the summit on Dec. 9 before heading to Oslo to accept the Nobel Peace Prize.

At least 75 world leaders will attend. Unlike Obama, most are expected to attend the final days of the Dec. 7-18 conference.

Cutting U.S. carbon dioxide emissions by one-sixth in just a decade would likely hike energy bills.

Carol Browner, Obama’s assistant for energy and climate change, cited a $173-per-year estimated cost in a briefing Wednesday — a figure for a family of four calculated by the Congressional Budget Office. Republicans say costs would be higher.

But slashing those emissions could save millions of lives, mostly by reducing preventable deaths from heart and lung diseases, according to studies published this week in The Lancet British medical journal.

Cabinet officials going as well
The White House also said a half dozen Cabinet officials including Energy Secretary Steven Chu and Commerce Secretary Gary Locke as well as the head of the Environmental Protection Agency — which is preparing regulations to cut greenhouse gases — will take part in the Copenhagen talks. It is the highest profile contingent of U.S. officials to ever take part in international climate negotiations.

Some environmentalists said they hoped the president’s trip would be more than ceremonial.

“The Copenhagen climate summit is not about a photo opportunity,” said Kyle Ash, climate policy adviser for Greenpeace USA. “It’s about getting a global agreement to stop climate chaos. President Obama needs to be there at the same time as all the other wold leaders.”

But others said the visit will reinforce the U.S. government’s shift on climate policy from that of the Bush administration, which rejected the 1997 Kyoto climate accords out of hand and over eight years steadfastly opposed broad mandatory reductions in greenhouse gases.

“It’s a clear signal to the world that we’re serious … that he is committed to this issue,” said Jake Schmidt, international climate director for the Natural Resources Defense Council. Schmidt cautioned not to expect Obama to “bring back the final deal” on climate, but he said it would help to establish momentum for an agreement next year.

Obama’s negotiating position for the talks in Copenhagen has been hampered by slow progress on a climate bill in the Senate.

The House bill sets a 17 percent reduction target for emissions by 2020 from 2005 levels. A Senate version aims for a 20 percent cut.

The European Union is pressing for more aggressive cuts and has pledged a 20 percent drop in its emissions compared to 1990 levels.

 Template, not treaty expected
The conference had originally been intended to produce a new global climate change treaty to replace the 1997 Kyoto Protocol.

However, hopes for a legally binding agreement have dimmed lately, with leaders saying the summit is more likely to produce a template for future action to cut emissions blamed for global warming.

While Obama himself tried to tamp down expectations during his eight-day trip to Asia earlier this month, he also called on world leaders to come to an agreement that has “immediate operational effect” and is not just a political declaration.

Capstone Stock News,Clean Technology

Two Capstone Clean Energy Product Development Projects Selected by the U.S. DOE and BIRD Foundation for Funding Grants27 Nov

New Capstone product to turn biomass into clean reliable energy.  There is a Midwest presence on the project with Packer Engineering and Argonne National Laboratory being involved.  The other project focuses on combining solar energy’s sustainable qualities with Capstone’s efficiency and power reliability.  Found on CNNMoney.com.

CHATSWORTH, Calif., Nov. 25, 2009 (GLOBE NEWSWIRE) — Capstone Turbine Corporation (Nasdaq:CPST) the world’s leading clean technology manufacturer of microturbine energy systems announced today that it has received notice of grant awards by the U.S. Department of Energy (DOE) and Israel’s Binational Industrial Research and Development (BIRD) Foundation to participate in two separate clean energy product development projects valued in excess of $3 million.

“Capstone is honored that both the U.S. Department of Energy and BIRD foundation have chosen to provide grants for potential future Capstone products as it further validates Capstone’s microturbine technology’s place in the emerging renewable energy and clean energy space,” said Darren Jamison, Capstone President and CEO. “I am pleased that two of our programs were selected, as they will lead to further product development and open up new markets for Capstone. These two programs are on our critical product path and could lead to billion dollar market opportunities,” added Jamison.

Capstone Flexible Fuel Microturbine

The grant award from the U.S. Department of Energy is to develop a more fuel flexible microturbine capable of operating on a wider variety of biofuels — mostly from biomass feedstock (agricultural crop waste), which when gasified becomes synthesis gas or syngas. Syngas has been identified by many offices of the DOE as a new “opportunity fuel” for future clean energy projects.

The two year project will total almost $3.8 million, with the DOE supporting the project with $2.5 million which includes the support of Argonne National Laboratory. Capstone is the prime contractor for this project and will rely on support from Argonne National Laboratory, University of California at Irvine, and Packer Engineering, Inc.

“We see increasing interest from customers with a need for an ultra clean generation product like our microturbine to convert biomass into electricity. Farm and industrial biomass wastes can be converted into a useable fuel using a variety of processes. Gasification is one such process, and this project provides the basis for Capstone to design a special fuel delivery system to handle these hydrogen rich synthesis gases,” said Jim Crouse, Executive VP of Sales and Marketing.

The project will focus on both the development of a clean syngas combustion system for the Capstone microturbine and a demonstration phase of this new microturbine using the fuel output of a farm waste gasifier being developed by Packer Engineering under a separate U.S. Department of Agriculture grant. Argonne National Laboratory will characterize the output of the Packer gasifier for a variety of feed stocks and will host the demonstration phase of the microturbine and gasifier system. The University of California at Irvine and Argonne will assist Capstone in the development and testing of the fuel delivery system for the microturbine. Capstone will provide the design and production expertise for the new fuel delivery system and will manufacture the new syngas microturbine product for sale to the general market. The initial focus is on Capstone’s C65 microturbine with integral heat recovery to achieve high overall efficiency as well as low emissions.

“The DOE was supportive of our C200 product and CARB certification of our C65 product operating on natural gas. Success on this project will allow Capstone to offer a new range of biofuels, which will help the nation meet its objectives for reducing greenhouse gas emissions, dependence on foreign energy sources, and criteria pollutants,” added Jamison.

Initial estimates show that a microturbine with an efficient gasifier using non-food crop residue as the fuel could supply a 600 acre farm with 65kW of power. There are 1.7 million such farms in the U.S., making this a sizeable market opportunity. Potential societal benefits from a 10-year installed base of such a microturbine and gasifier system are reduction in fossil fuel consumption of 441 trillion BTU/year (or the amount of fuel consumed by 6.1 million cars) as well as reduction in CO2 emissions of 31 million tons/year (or the amount released annually by 5.4 million cars).

Microturbine Powered Solar Concentrator System

In a milestone of U.S. – Israeli cooperation on clean energy technology development the U.S. Department of Energy and Binational Industrial Research and Development (BIRD) Foundation Energy Executive Committee have selected a product development effort by Capstone Turbine and Israel’s HelioFocus Ltd. The award of up to $800,000 is to further the development and commercialize a microturbine to produce electric power from concentrated solar energy.

HelioFocus has previously developed a proprietary solar receiver to convert concentrated solar energy into super heated air. That super heated air will be used to drive a specially-designed externally fired C65 Capstone microturbine to produce efficient solar power. The system will be designed with the option to use natural gas to provide continuous power to supplement the solar energy when it is not available.

“The ability for solar projects to generate energy more efficiently and at night is the value proposition driving this joint product development effort between HelioFocus and Capstone,” said Darren Jamison, Capstone President and CEO. “Efficiency is extremely important in solar power systems as a means to reduce size, space, and ultimately drive down installation costs,” added Jamison.

“There is a strong demand for viable solar power that is already ahead of what can practically be delivered today using existing solar technologies. The objective of the program is to achieve a high efficiency modular dish system that can be quickly and cost-effectively deployed for large scale projects,” said Jim Crouse, Executive VP of Sales and Marketing at Capstone. “We have already demonstrated excellent durability and reliability of our microturbines, and our UL listed power electronics allow simple interconnection with utility grids. This is a natural extension into the renewable energy space,” added Crouse.

The BIRD Energy Foundation is supported by funding from both the U.S. and Israeli governments with the mission to encourage cooperation between Israeli and American companies. They award grants in the form of risk-free loans that are to be repaid in the event that the products become commercial. Both HelioFocus in Israel and Capstone in the U.S. have been working together toward integrating their technologies to achieve a concentrated solar power system with high net efficiency.

Clean Technology

Four Seasons employs the latest recyclable: Heat17 Nov

A good basic explanation of the benifits and power of CHP.  Hotels are prime candidates for microturbine retrofits with their hgh hot water demand and constant energy needs.  Found on the Philadelphia Inquirer

By Sandy Bauers

Up on the roof at the Four Seasons Hotel, behind latticework meant to keep things pretty, three turbines are humming away, transforming the way the luxury hotel produces – and saves – energy.

They’re taking a waste product – heat – and reharnessing it as a resource.

Part of an overall greening effort at the hotel, the new “microturbines” will help reduce the Four Seasons’ energy bill 30 percent and halve its carbon footprint.

While this is the first installation of the technology in the city – Mayor Nutter will formally introduce it at a rooftop ceremony today – other hotels and universities are looking at it as well.

The “microturbines” use natural gas to generate 25 percent of the hotel’s electricity. The process also creates heat – in this case, an amount that would keep 275 average homes comfy all winter long.

But instead of venting the heat into the atmosphere, as usually happens, the hotel is putting the heat to work warming the water for all the showers, for the kitchen and laundry, for the hot tub and the indoor pool, kept at a tropical 85 degrees.

And there’s enough hot water left over to provide 15 percent of the hotel’s heat.

“We’re capturing and recycling wasted heat,” said Marvin Dixon, director of engineering for the hotel.

The effort turns the notion of waste heat on its head. In essence, the equipment is “a boiler that makes electricity simultaneously,” said Jeff Beiter, managing partner at E-Finity Distributed Generation L.L.C., of Wayne, the local sales rep for the equipment.

The Four Seasons microturbines cost $1.049 million. But the equipment is expected to pay for itself in three or four years, Dixon said.

Still, “it wasn’t all about savings,” Dixon said. “We were just as interested in doing it because of the impact on the environment.”

The microturbines are simply one of the latest incarnations of thinking that goes back to the origins of electric power generation. Manhattan’s Pearl Street Station, built in 1882 by Edison Electric Light Co., sold electricity and the accompanying thermal energy.

But gradually, electric power plants moved to rural areas, where there was no need for the excess heat. “So we built cooling towers, which dumped heat into the air,” said R. Neal Elliott, associate director for research at the American Council for an Energy-Efficient Economy, an advocacy group.

The efficiency of power generation actually declined, he said. Improved technologies brought small increases, but changes needed to meet subsequent environmental regulations wiped out the gains.

Today, about 60 percent of the energy in fuel used to generate power in the United States is lost as heat. An additional 7 percent is lost in transmission.

In contrast, the microturbine is 85 percent or more efficient, said Thomas E. Knudsen, president of Philadelphia Gas Works. “This is a powerful, powerful technology that we see with broad applications.”

Last December, a study by the Oak Ridge National Laboratory concluded that combined heat and power – a.k.a. CHP – “is one of the most compelling sources of energy efficiency that could, with even modest investments, move the nation strongly toward greater energy security and a cleaner environment.”

The Department of Energy recently lobbed recovery act funds at CHP, and the Environmental Protection Agency has formed a “partnership” to encourage its use.

About the time the Four Seasons system was revving up, a similar set of turbines from the same company – Capstone Turbine Corp., based in California – was being installed at the Bridge Business Center on the former Rohm & Haas site in Bristol Township.

There, the excess heat is used for heating and cooling air, partly to meet the large needs of a chemical research and testing laboratory, said Pete Krauss, senior vice president of the Keystone Redevelopment Group, which owns the property.

Capstone, founded in 1988, has sold more than 5,000 microturbines. The company incurred losses of $5.3 million last year – partly attributed to an increase in manufacturing costs for new, more powerful units – yet reported its revenue from microturbine shipments increased 40 percent, from $31.3 million to $43.9 million.

The Four Seasons project is the latest in a green initiative begun in 2005, reducing overall energy consumption by more than 20 percent since then.

The microturbines, which generate about 65 decibels from 10 feet away – roughly comparable to that of a vacuum cleaner – are hidden by latticework and raised beds of blueberries, winterberries, kiwis, and other edibles.

Nearby are rooftop gardens where the chef raises salad greens and herbs in compost made from food scraps.

Dixon commutes from his home in northern Chester County to the city in a truck that runs on the hotel’s used vegetable oil.

As he walks through the hotel, he cannot help but note the heat produced by the kitchen stoves. Or the laundry dryers and pressers.

To him, it’s all fuel, awaiting his attempts to capture it and feed it back into the loop.

Clean Technology,Environmental News

Dane County: Cow-power project moves forward11 Nov

Great news on the future of manure into energy applications.  A group of farmers are teaming up for a community digester that will not only help keep the lakes and rivers clean, but also produce $2 million in power a year.  This press release was found on WisBusiness.com

Clear Horizons Wins Approval for Next Phase of State’s First Community Manure Digester

The final decision on construction go-ahead is still a couple months away, but the Dane County Cow-Power Project has taken another major step forward. Dane County announced today that Wisconsin-based biogas energy developer Clear Horizons LLC. and their strategic partner SCC Americas have been selected to enter into negotiations for development of the Waunakee-area manure digester project.

Three Waunakee dairy farms are the first cluster of farms in Wisconsin to develop a community digester and one of a small number of digesters in the nation slated to remove much of the algae-producing phosphorous. Each dairy and Dane County has signed a letter of intent with Clear Horizons and SCC Americas.

“Our Cow-Power Project will help grow family dairies and help clean lakes in Dane County,” said Dane County Executive Kathleen Falk. “By focusing our efforts to reduce algae-producing phosphorus and create green electricity, our Cow-Power Project means clean lakes for our citizens to enjoy, reduced greenhouse gas emissions and local, good-paying green jobs.”

If given final approval, the project would be built and operated by Clear Horizons LLC. and SCC Americas, a worldwide developer of greenhouse gas emission reduction projects. Clear Horizons and SCC Americas will work with Dane County and the three area farms to develop a proposed design and schedule for project construction, and identify the best site and layout for the project.

The Dane County Cow-Power Project will be built by private and public funding. In addition to private financing provided by SCC Americas, project financing of $3.3 million to remove much of the phosphorus from the manure has been awarded by the State of Wisconsin as a result of Governor Jim Doyle’s request and the Legislature’s approval of $6.6 million for two community manure digesters that will aid Dane County’s efforts to clean up the lakes, strengthen the dairy industry and increase production of renewable energy.

Falk noted that 400 Dane County dairy farms and 50,000 dairy cows produce not only lots of milk that results in a $700 million dairy industry and 4,000 jobs, but over 2 billion pounds of manure each year that can harm area lakes and streams. Algae-producing phosphorus is the biggest cause of pollution that turns our lakes green, but for the first time Waunakee-area farms using a manure digester with advance separation technology will remove much of the phosphorus.

“When successful, this is a model that can be replicated throughout Wisconsin, the upper Midwest and the nation, “ Falk said.

Because of the methane released by untreated manure, digesters are also recognized for their contribution in controlling greenhouse gases. According to the county-funded Strand Associates Community Manure Management Plan, the potential methane emission reduction from eliminating the long-term lagoon storage of the manure is estimated at approximately 20,000 metric tons per year of equivalent CO2. This is equivalent to the CO2 emissions from driving approximately 50 million miles/year.

From a farming perspective, the digester substantially lessens the need to spread the manure on distant fields, which requires a lot of land and generates environmental problems, especially if spreading has to occur in the winter or spring. Importantly, the digester also significantly reduces the odor associated with manure.

“Our community digester will not only help ensure the future of family dairy farms, but also help keep phosphorous out of our lakes,” said Richard Endres, a Waunakee-area dairy farmer participating in the project.

It is estimated that the project will produce approximately $2-million of green electricity every year – enough energy to power over 2,500 homes in Dane County. Building the digester will create about 25 good-paying, green construction jobs while additional positions will be created to operate it.

Capstone Stock News

U.S. Commerce Secretary Locke Awards Capstone The President’s “E” Award For Excellence In Exporting06 Nov

CHATSWORTH, Calif., Nov 6, 2009 (GlobeNewswire) — Capstone Turbine Corporation (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it was awarded the President’s “E” Award for U.S. Exporters.  U.S. Commerce Secretary Gary Locke presented Capstone with the “E” Award during a ceremony held at the Commerce Department headquarters in Washington, D.C. 

“I’m a great believer in the ability of American companies and workers to compete anytime, anywhere in the world, on a level playing field. We’re here today to honor the people, firms, and organizations that produce and promote U.S. goods and services that support American jobs,” Secretary Locke said in a U.S. Commerce Department press release. “Trade has always been crucial to American prosperity. But, in today’s difficult economic times, with other drivers of growth like consumer spending lagging, it’s even more important for American industry to take advantage of every opportunity for export-driven growth.”

“Capstone is honored to be awarded the President’s “E” Award for U.S. Exporters in recognition of our strong sales overseas,” said Darren Jamison, Capstone Turbine’s President and CEO. 

“We have increased our export sales by 266% over the past four years,” said Jim Crouse, Executive Vice President of Sales and Marketing.  “Adding strong distribution partners across the world has enabled us to seize opportunities in markets in Europe, Latin America and Asia.”

The company also received a Certificate of Export Achievement from the U.S. Department of Commerce in 2008.  Capstone has been a delegate on several U.S. government trade missions over the years, including missions to China, India, and Vietnam. 

About the President’s “E” Award

The President’s “E” Award was created by Executive Order of the President on December 5, 1961, to afford suitable recognition to persons, firms, or organizations which contribute significantly in the effort to increase United States exports.  During World War II, more than 4,000 “E Pennants” were presented to war plants in recognition of production excellence.  The famous flag with the big “E” emblazoned on it became a badge of patriotism in action.  President Kennedy revived the World War II “E” symbol of excellence to honor and provide recognition to America’s exporters.  Thus, the “E” Award Program was established by Executive Order 10978 on December 5, 1961.

Winners of the “E” Award are authorized to fly the blue and white banner, to display the accompanying certificate of commendation which is signed by the Secretary of Commerce in the name and by the authority of the President, to wear and issue to employees an “E” lapel pin, and to refer to the award in their advertising.

Green Policy

Stimulus to fund factory energy saving upgrades03 Nov

A few programs receive money involving energy efficiency in factories.  Capstone is a great fit in factories becuase of their constant electrical and thermal need.

By Thomas Content of the Journal Sentinel

 

CleanTech Partners of Madison will receive up to $14.5 million in funding from the federal stimulus package to fund energy efficiency projects at Wisconsin paper mills and factories.

The state’s Office of Energy Independence will also receive $350,000 in another energy efficiency initiative targeting industry, the U.S. Energy Department said.

Wisconsin is slated to receive nearly 10% of the $155 million in industrial energy efficiency funds allocated nationwide.

The agency said this program from the American Recovery and Reinvestment Act targets the factory sector because manufacturing uses more than 30% of U.S. energy and is responsible for nearly 30% of U.S. emissions of carbon dioxide, the leading greenhouse gas.

CleanTech Partners is slated to implement 25 projects that will install energy efficient equipment in nine facilities across the state, DOE said.

Companies targeted for energy efficiency projects include pulp and paper mills, printing, corn milling, plumbing and small engine manufacturing, the agency said. Together these 25 projects are projected to save an estimated 1.21 trillion BTUs annually, increasing overall energy efficiency by 45%.

In addition, Wisconsin’s Office of Energy Independence will receive up to $350,000 to expand the Save Energy Now program, launched in 2007 as a federal-state-industry partnership.The funding will be used to help factories complete assessments to save on energy as well as launch training and outreach for the Save Energy Now program.

Details about the projects to be funded are subject to final negotiation between the Energy Department and the grant recipients, the agency said.

Green Policy

The Clock is Ticking — Are You Ready for the EPA’s New Green House Gas Reporting Requirements?01 Nov

Interesting new program the EPA might use to monitor companies’ and manufacturers’ green house gases.  This was provided by the law firm Nelson Mullins.

On January 1, 2010, many manufacturing facilities, facilities emitting green house gases
(GHGs)1, and suppliers of fossil fuels and industrial GHGs will, for the first time, be required to begin monitoring their emissions of GHGs. Then, on March 31, 2011, these companies must submit the first annual report to the US Environmental Protection Agency (EPA) on the emissions data collected during the prior year.

With the goal of understanding the origin of GHGs, EPA issued these fairly complicated and potentially expensive requirements in a final rule (Rule) on September 22, 2009 pursuant to EPA’s authority under the Clean Air Act to require reporting of GHG emissions (codified at 40 C.F.R. pts. 86, 87, 89, 90, 94, 98, 1033, 1039, 1042, 1045, 1048, 1051, 1054, and 1065).

You can access a copy of the Rule and related analysis and information from EPA at http://www.epa.gov/climatechange/emissions/ghgrulemaking.html.

Companies with facilities emitting or products related to GHGs may consider taking the following initial steps to evaluate appropriate measures related to the Rule. Those not in compliance with the Rule may be required to shutdown facilities and operations until compliance can be achieved.

Step 1-Determine Whether the Rule Applies to You

The Rule applies to a variety of categories of industries and types of facilities; however, in certain categories if the facilities do not emit more than a threshold amount they are exempt from the monitoring and reporting requirements.

Facilities Emitting GHGs:

  • Certain industrial facilities (17 different types2) must report GHG emissions regardless of the level that such facilities emit by facility.
  • Other specific facilities3 and those not identified in the Rule will only be required to report emissions if they emit in excess of 25,000 metric tons of CO2 equivalent (CO2e) annually from all stationary fuel combustion devices. It is specifically noted in the Rule that any CO2 emitted from the combustion of biogenic fuels is excluded from the applicability calculations for this category (however biomass-related emissions must be included in any report generated by a facility subject to the Rule and should be independently identified).

Suppliers of Fossil Fuels and Industrial GHGs:

  • All fossil fuel suppliers, except for suppliers of solid-based coal, are required to report annual amounts of fuel sold and applicable emissions. This includes producers, importers, and exporters of fossil fuels.
  • Suppliers of industrialized GHGs who supply more than 25,000 metric tons of CO2e products must report the numbers of such products sold in the market and related emissions. This includes producers, importers, and exporters of industrial GHGs.

Manufacturers of New Vehicles and Engines:

  • Makers of heavy-duty trucks and engines must report CO2 emissions beginning in model year 2011 (reporting on additional GHGs will be required for later model years).
  • One should keep in mind that some facilities subject to the Rule may be able to continue to maintain timing and substantive reporting consistent with other EPA programs, such as the Acid Rain Program, rather than pursuant to the Rule. Additionally, any research and development activities related to GHG emissions are not covered by the Rule.

Step 2-Readiness for the Start of Monitoring and Reporting in First Quarter 2010

  • Equipment Purchases and Installation-Facilities and companies subject to the Rule should be investigating and planning for the purchase and installation of required monitoring equipment. In fact, the EPA estimates that the expected cost to the private sector to comply with the Rule will be $115 million in the first fiscal year. The Rule does provide for the use of “best available” monitoring methods for the first quarter of 2010 and establishes an extension request process should facilities require additional time for purchasing or installing monitoring equipment.4
  • Processes and Procedures for Evaluating Data and Preparing Reports-Facilities subject to the Rule should begin proposing appropriate processes and procedures for assessing and evaluating data now. While this is an important aspect of determining applicability of the Rule, it will also be critical for preparing reports in a timely manner. Further, records of data and related reports must be maintained for at least three years. The annual reports, which will be submitted electronically, should include:
    • Total facility emissions (without emissions derived from combustion of biomass);
    • Total facility emissions derived from combustion of biomass;
    • Total emissions from all supply categories;
    • Emissions broken down for each type of category; and
    • Certain additional metrics and information (i.e. activity data, unit-based emissions) for particular categories.
  • Processes and Procedures for Informing Executives-While independent third-party auditing of collection and reporting methods is not required, similar to Sarbanes-Oxley certification requirements, the Rule requires senior executives to certify that reports were prepared in compliance with the Rule.

Step 3-Assessing Other Realities of Disclosure

  • Disclosure is Public-All information submitted pursuant to the Rule becomes public information, and, as such, will be available to competitors, suppliers, customers, advocacy organizations, and press agencies. Several larger purchasers and investors have begun tracking environmental and social performance data and weighing those considerations when selecting vendors and targets of investment. Further, recent case law suggests that claims against companies emitting large quantities of GHGs, previously not thought to be actionable given various constitutional and common-law obstacles, may be viable under the federal common law of nuisance.5 As such, the manner and information disclosed should be carefully assessed under the lens of determining its effect on marketing, business relationships, and potential claimants.
  • Federal Requirements Do Not Preempt State Requirements-Certain States have independent monitoring and disclosure requirements for GHGs and the Rule does not preempt State-level requirements or procedures. Therefore, companies subject to the Rule must meet the requirements of both the Federal and State regulations. Companies may consider implementing processes and procedures that generate the most overlap to develop raw data for each of the Federal and State-level requirements.
  • Once Subject to the Rule, Reporting Must Continue for a Period-Even where a company is no longer subject to the Rule because GHG emissions have fallen below the 25,000 metric ton threshold, such companies must continue reporting under the Rule. However, after a facility or company maintains 5 consecutive years of emissions below the threshold or 3 consecutive years with emissions of less than 15,000 metric tons, such party may forego reporting emissions to EPA. Additionally, no further reporting is required after the subject GHG processes and machines terminate operations.

1The gases considered “greenhouse gases” under the Rule are the “Kyoto gases”-carbon dioxide (CO2 ), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulfur hexafluoride (SF6), nitrogen trifluoride (NF3), and hydrofluorinated ethers (HFE).

2The types of facilities included in this category are Adipic Acid Production; Aluminum Production; Ammonia Manufacturing; Cement Production; Electricity-Generating Facilities; HCFC-22 Production; HFC-23 Destruction Processes; Lime Manufacturing; Manure Management Systems; Municipal Solid Waste Landfills; Nitric Acid Production; Petrochemical Production; Petroleum Refineries; Phosphoric Acid Production; Silicon Carbide Production; soda Ash Production; and Titanium Dioxide Production.

3The types of facilities included in this category are Ferroalloy Production; Glass Production; Hydrogen Production; Iron and Steel Production; Lead Production; Pulp and Paper Manufacturing; and Zinc Production.

4Requests for extensions must be submitted by January 30, 2010.

5Connecticut v. American Electric Power Co., — F.3d —-, 2009 U.S. App. LEXIS 20873 (2d Cir. Sept. 21, 2009).

Nelson Mullins’ Sustainable Agriculture and Energy Practice Group will continue to monitor information regarding the Rule and other legislative initiatives impacting and relating to the Agricultural or Energy industries, including updates on the American Clean Energy and Security Act of 2009 and the Clean Energy Jobs and American Power Act. You can find updates on this and other relevant topics at http://www.nelsonmullins.com./

If you have further questions about the Rule and how our professionals can assist you or generally relating to Nelson Mullins’ Agriculture and Energy Sustainability Practice Group, please contact Alexis Gilroy (202-712-2893), Bernie Hawkins (803-255-9581), Mike Bryan (843-720-4313), Chris Cushing (202-545-2974), David Harlow (919-877-3830), Ashley Cooper (843-534-4255), Reed Hollander (919-877-38), Helen Quick (202-712-2894), Congressman Ron Klink (202-712-2886), or Jack Smith (843-534-4309).

The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice on particular situations.

Clean Technology,Green Policy

FutureGen could cost state millions more than initially believed01 Nov

This was found on Pantagraph.com.

By Kurt Erickson

SPRINGFIELD — An experimental power plant planned for Mattoon could cost Illinois taxpayers tens of millions of dollars more than initially believed.

Illinois lawmakers are considering an arrangement that would require the state to purchase all electricity produced at the proposed FutureGen power plant — a coal-fired facility designed to operate with near-zero emissions.

Supporters say the deal would help FutureGen qualify for upward of $1 billion in federal grants that would help finance its construction.

But, it also could boost the cost of electricity for a state already struggling to pay its bills. Exactly how much of an increase was not clear Wednesday.

The lack of information left some lawmakers baffled.

“I’m amazed at that,” said state Sen. Dale Risinger, R-Peoria. “There are a lot of issues the state of Illinois is biting off with this.”

The state spends at least $82 million per year to power its office buildings and other state facilities.

Unlike traditional coal-fired plants, the FutureGen facility would pump carbon dioxide emissions into the ground, avoiding the release of pollutants into the atmosphere. For that reason, the cost to build the facility will be higher than a traditional coal-burning power plant.

But, FutureGen CEO Michael Mudd said the facility would operate on a not-for-profit basis and use federal dollars to reduce construction costs, potentially avoiding a hefty price spike for the state.

“I don’t think it will be a significant increase,” Mudd said.

State Sen. Dale Righter, R-Mattoon, said he was comfortable with FutureGen’s estimates and said he is initially supportive of the plan.

Consumer groups and some senators expressed concerned about the effect of the deal on Illinois taxpayers.

“We want to make sure the risks are minimized,” said David Kolata, executive director of the Citizens Utility Board.

Legislation laying out the agreement allows FutureGen to charge rates that reflect not only the cost to operate the plant but also prices that also include debt payments.

The legislation is House Bill 4182.

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