Colorado Getting $4.7M from Stimulus for Appliance Rebates

Colorado will get $4,739,253 in federal stimulus funds for a rebate program to promote the purchase of energy-efficient appliances.

The money -- to be distributed through the state -- will be paid to those who buy appliances rated under the federal "Energy Star" program, according to a joint announcement from Colorado's two U.S. senators, Mark Udall and Michael Bennet.

"The state will determine how to structure the rebate program," the senators' announcement said.

The appliance rebate program was authorized by Congress in 2005 but was not funded. The stimulus program -- formally known as the American Recovery and Reinvestment Act of 2009 -- appropriated $300 million for the program.

Colorado and other states must tell federal officials by Oct. 15 how they plan to distribute the rebates in their own states, including which appliances will be covered, how large the rebates will be and how old appliances will be recycled. The states' initial application for the money is due Aug. 15.

(Source: denvernews@bizjournals.com)

Stimulus Money May Finally Flow To Green Energy

It's been a long time coming, but green Colorado Energy businesses are about to get their promised boost from the economic stimulus package that President Obama signed into law in February.

The Secretary of Treasury on Thursday announced rules that will finally allow developers of wind, solar, biomass and other green energy projects to apply for a total of $3 billion in federal grants to cover upfront project costs. The funding, part of the American Recovery and Reinvestment Act, will be critical to boosting the fortunes of limping green industries like wind power, where total installations in 2009 will likely fall 40% below last year as a result of the broad economic downturn.

Large wind projects depended heavily on tax-equity investors during the wind power boom from 2006 to 2008. Institutional investors such as now-defunct Lehman Brothers ( LEHMQ - news - people ), as well as Goldman Sachs ( GS - news - people ) paid for big clean energy projects in return for 30% federal tax credits. But damaged banks won't be paying taxes for years to come and have abandoned the green energy business, leaving developers to look for new sources of investment.

Under Treasury Department guidelines, the Department of Energy will disburse cash grants worth 30% of upfront costs for projects that start construction by the end of 2010. The funds could make projects particularly attractive for developers of small- to medium-sized projects that can be financed via a company's balance sheet, or by cash-rich utilities such as a Florida Power and Light ( FPL - news - people ), which through its NextEra Energy subsidiary is a leading developer of both wind and solar projects.

The grants could boost the fortunes of companies like turbine manufacturers General Electric ( GE - news - people ), Vestas and Siemens ( SI - news - people ), while solar module makers SunPower ( SPWR - news - people ) and First Solar ( FSLR - news - people ) could also gain business.

But the funding may do little to help independent developers of large projects in Colorado that traditionally relied on tax-equity financing. Businesses will receive funding from the Treasury program two months after a project begins operation, meaning that companies will need bridge financing in some cases.

In 2006 the federal government provided $550 million in tax credits to 450 clean energy businesses. The stimulus grants could offer a stronger tail wind: The Treasury estimates that 5,000 renewable businesses will partake of its latest offering.

A stimulus package such as the one proposed would affect companies like Heartland Energy Colorado. There will be a bigger incentive to use more environmentally friendly techniques by domestic oil companies in the future.

Article Source: Andy Stone

The History of Natural Gas (Part 4)

Andrew Carnegie, the steel magnate, promoted the use of natural gas in steelmaking.  Natural gas became the fuel of choice not only for steel mills, but also glassmaking plants breweries, businesses, homes and a crematorium.  Hundreds of natural gas companies were formed to sell gas to municipalities in Pennsylvania, West Virginia, Ohio and Indiana with a local supply of natural gas.  Some of these gas fields were rapidly depleted, forcing a switch back to manufactured gas.  Early customers were simply charged a monthly rate for a hookup without a means to measure the amount of gas consumed.  When meters were eventually installed, a new business sprang up: renting “gas dogs” to greet meter readers on their days of visitation.

John D. Rockefeller entered the natural gas business in 1881.  True to form, through mergers with existing pipeline companies and expanding their business activities once they were under his control, Standard Oil established a major market presence in the gas-producing states in Appalachia.  Rockefeller’s success at monopolization led to the passage of the Hepburn Act in 1906, which was intended to give the Interstate Commerce Commission (ICC) regulatory authority over interstate natural gas pipelines, even though very few existed at the time.  In the end, the Hepburn Act exempted natural gas and water pipelines from regulatory oversight, but growing concern over Rockefeller’s hold on the oil industry led to the U.S. Department of Justice filing suit under the Sherman Antitrust Act against Standard Oil.  Curiously, in the Standard Oil breakup in 1911, the company’s natural gas properties and activities remained intact within Standard Oil of New Jersey, enabling the company to maintain its standing as a major natural gas player in the Midwest and Northeast and, eventually, the Southwest.

Heartland Energy Colorado is one of the top hydrocarbon-based energy providers in the USA. They have many drilling locations throughout the country and remain one of the top producers of US oil & gas companies. For more information on Heartland Energy Colorado, see Heartland Energy Development Corporation online.

(Source: "Energy for the 21st Century." Nersesian)

The History of Natural Gas (Part 3)

George Westinghouse, inventor of the compressed-air railroad brake, became interested in natural gas and decided to drill.  He selected, of all places, his backyard and, lo and behold, he struck natural gas as one might expect for the rich to get richer.  He became one of the largest gas distributors in Pittsburgh, and relied on the natural gas produced from on hundred wells in and around Pittsburgh, including his backyard. 

Westinghouse was well versed in the dangers associated with natural gas such as gas users not turning off their gas appliances (lamps, stoves, heaters) when natural gas pipelines were shut down for repair of breaks and leaks.  When pipeline service was restored, a nearly odorless and colorless gas seeped into homes and shops, threatening to kill those within from asphyxiation, fire or explosion. 

Westinghouse put his experience with compressed air to good use and originated a number of patents for enclosing main gas lines in residential areas with a conducting pipe to contain gas leaks, introducing pressure regulators to reduce gas pressure before it entered residences and commercial establishments, and cutoff valves to prevent any further flow of gas once pressure fell below a set point.

These improvements made Pittsburgh the center of the natural gas industry by the late 1880s, with 500 miles of pipeline to transport natural gas from surrounding wells to the city and another 230 miles of pipeline within the city limits.  

Heartland Energy Colorado is one of the top hydrocarbon-based energy providers in the USA. They have many drilling locations throughout the country and remain one of the top producers of US oil & gas companies. For more information on Heartland Energy Colorado, see Heartland Energy Development Corporation online.

(Source: "Energy for the 21st Century," Nersesian)

Full Speed Ahead for Large Solar Projects in Colorado and the West

LAS VEGAS – Under initiatives announced Monday by Secretary of the Interior Ken Salazar and U.S. Senator Harry Reid (D-NV), federal agencies will work with western leaders to designate tracts of U.S. public lands in the West as prime zones for utility-scale solar energy development, fund environmental studies, open new solar energy permitting offices and speed reviews of industry proposals.

The Interior Department is setting aside 676,048 acres for solar study zones, one of several steps it is taking to fast-track the development of solar energy on public lands. According to Interior Secretary Salazar, the federal actions will enable 13 commercial-scale solar plants to be under construction by the end of next year, creating 50,000 jobs.

“President Obama’s comprehensive energy strategy calls for rapid development of renewable energy, especially on America’s public lands,” said Secretary Salazar. “This environmentally-sensitive plan will identify appropriate Interior-managed lands that have excellent solar energy potential and limited conflicts with wildlife, other natural resources or land users. The two dozen areas we are evaluating could generate nearly 100,000 megawatts of solar electricity. With coordinated environmental studies, good land-use planning and zoning and priority processing, we can accelerate responsible solar energy production that will help build a clean-energy economy for the 21^st century.”

“It’s about time to make the permitting process more efficient and provide greater guidance to solar developers,” Rhone Resch, president of the Solar Energy Industries Association, said in a statement.

Under one initiative, 24 tracts of Bureau of Land Management-administered land located in six western states — Arizona, California, Colorado, Nevada, New Mexico and Utah, known as Solar Energy Study Areas, would be fully evaluated for their environmental and resource suitability for large-scale solar energy production. The objective is to provide landscape-scale planning and zoning for solar projects on BLM lands in the West, allowing a more efficient process for permitting and siting responsible solar development.

Nearly 21,000 acres in the San Luis Valley of Colorado are being set aside for solar projects that could generate up to 4,100 megawatts of electricity — equal to 10 medium-size coal-fired power plants, according to federal estimates.

The BLM and the Energy Department filed a notice now available on the Federal Register, announcing the availability of maps that show the areas to be analyzed in their joint programmatic environmental impact statement and soliciting public comment. The federal agency also it will continue processing existing renewable energy applications within and outside the zones while the broader environmental analyses take place. The agency will continue accepting applications, but any filed after June 30th will be subject to applicable decisions made from the environmental analysis.

Those areas selected would be available for projects capable of producing 10 or more megawatts of electricity for distribution to customers through the transmission grid system. Companies that propose projects on that scale in areas already approved for this type of development would be eligible for priority processing. The BLM may also decide to use alternative competitive or non-competitive procedures in processing new solar applications for these areas.

Currently BLM has received about 470 renewable energy project applications. Those include 158 active solar applications, covering 1.8 million acres, with a projected capacity to generate 97,000 megawatts of electricity. That’s enough to power 29 million homes, the equivalent of 29 percent of the nation’s household electrical consumption.

As part of this initiative, the BLM will segregate the study areas from new mining claims and other actions initiated by third parties under public land laws. This temporary 2-year segregation will give BLM time to complete its environmental review and make a determination on solar energy zones. It will not affect rights established prior to the temporary segregation. The public will have the opportunity to comment on these proposed solar energy study areas during the environmental reviews before any final decisions are made. The evaluation is expected to be completed in late 2010.

An ongoing federally-funded environmental evaluation of potential solar energy development on public lands in 6 Western States, known as the Solar Programmatic Environmental Impact Statement, or PEIS, will be expanded to include an in-depth analysis of the potential impacts of utility-scale solar energy development on public lands in the 24 Solar Energy Study Areas. This enhancement will be supported by additional federal funding under the American Recovery and Reinvestment Act.

This expanded evaluation, a collaborative effort with the Department of Energy, will allow the Bureau of Land Management to take a close look at each study area to determine where it makes sense to develop large-scale solar projects in an environmentally responsible way. Colorado companies proposing solar energy projects in designated areas would be able to “tier” to this study, using it as part of their environmental impact studies for site-specific projects, which are required by the National Environmental Policy Act.

Reported by Ann Rascalli

Additional information on the BLM’s renewable energy program is available at www.blm.gov.