1998

The Magic Solution

Most of us have seen the infomercials in which a hyperactive salesman pitches a “no exercise, no dieting” weight-loss program. Most of us are also smart enough to know that losing weight requires some sweat and pain.

The Department of Energy (DOE), however, will have none of that. It is now pitching its own version of the all gain, no pain diet. Joe Romm, DOE’s principal deputy assistant secretary for energy efficiency and renewable energy said in a panel discussion sponsored by the Environmental Media Services, that the U.S. can achieve the reduction targets agreed to at Kyoto without reducing energy use and may even be able to increase energy use. “We can get the reductions not by using less energy, but by using cleaner energy,” he said.

Also on the panel was Nancy Kete, director for climate, energy and pollution programs at the World Resources Institute, pitching her own “eat more, weigh less” program. She admits that some jobs will be lost as a result of the Kyoto treaty, but overall there will be net gain in jobs if the U.S. becomes “more carbon efficient” (BNA Daily Environment Report, December 19, 1997).

Renewable Energy Mandates

The Energy Information Administration (EIA) has estimated in its report, Annual Energy Outlook 1998, that requiring utilities to derive 5 percent of their energy output from renewable energy sources would reduce emissions by 26 million metric tons between 1996 and 2020. A 10 percent mandate would reduce emissions by 62 million metric tons.

According to EIA Administrator Jay Hakes a renewable energy mandate “would require somewhat higher prices, but the impact does not appear large.” Hakes said that wind, geothermal, and biomass would benefit from such a mandate. Solar energy, however, would probably not benefit as a result of its relatively higher cost (BNA Daily Environment Report, December 19, 1997).

Taxes and Fuel Efficiency Standards Cannot Be Avoided

At a briefing for congressional staffers on Capitol Hill, Steve Plotkin, transportation analyst at the Argonne National Laboratory, stated that, “Without further market intervention, we are not going to achieve the goals” of the Kyoto protocol.

The Clinton administration has maintained that the U.S. can comply with the treaty at little cost using new technologies. This claim is based on a study completed last year by the five national laboratories. But, revealed Plotkin, “the study assumed all along that government would have to impose energy taxes or raise fuel economy standards to attain treaty goals.” Plotkin also said that he was “very pessimistic” that the U.S. can reduce emissions to 7 percent below 1990 levels by 2010 (Automotive News, December 22, 1997).

Ethanol Flop

A five-year experiment with ethanol-powered buses by the Greater Peoria Mass Transit District flopped. The Peoria government had purchased 14 ethanol buses to replace about one-third of its diesel-powered fleet. The transit district paid for fuel and maintenance.

The buses, however, were too expensive to operate. “When a part, such as a pump, goes down, you’ve got a one-of-a-kind engine, said Steve Tartar, spokesman for the transit district. “If we can’t get it, that bus sits.” Ethanol also costs about twice as much as diesel fuel.

The National Center for Alternative Fuels at West Virginia University analyzed 32 different ethanol projects, and concluded that “it’s not appropriate at this time to convert fleets to ethanol and too expensive to have multifuel fleets.” Ron Miller, vice president of Pekin Energy Co., who supplied ethanol to Peoria, said that ethanol competes with petroleum products which have “a lot of hidden subsidies which keep those prices artificially low” (Chicago Tribune, December 21, 1997).

Frederico Pena, Secretary of the Department of Energy has said that ethanol will play an important role in greenhouse gas reduction. “We are at the point where ethanol is ready to emerge as a major force in the market,” Pena said. Maybe the Clinton administration should reconsider wasting further subsidies on the ethanol boondoggle (21^st Century Fuels, November 1, 1997).

Japan’s Compliance Plan

The Japanese government has announced the breakdown of how it will of lower greenhouse gases by 6 percent below 1990 levels by 2010. Carbon sinks such as forests and vegetation will account for 3.7 percent; helping developing countries through technology transfers and cooperative projects, 1.8 percent; and emission reduction measures, 2.5 percent (Mainichi Daily News, December 31, 1997).

Japan’s Ministry of International Trade and Industry also plans to give subsidies to consumers who purchase “hybrid” cars. Consumers who choose to buy the Toyota Prius, the only hybrid on the market, will receive about 350,000 yen or about $2,700 (Asahi News Service, December 22, 1997).