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Government Affairs Update, 10/15/2007

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Montreal Protocol Parties Agree to Reduction of HCFC Production, Consumption

The 191 Parties to the Montreal Protocol, meeting in Montreal on September 16-21, responded to proposals for reducing HCFC production and consumption by adjusting the HCFC phase-out schedule for developed and developing countries. The adjustments become effective immediately and do not require ratification by the Parties.

For developed countries, the decision of the Parties changes only one part of the schedule by increasing the reduction in 2010 from 65% to 75%. The decision leaves the remainder of the current HCFC phase-out schedule the same including the 2020 phaseout of HCFCs in new equipment and the final phaseout date of 2030 for HCFCs used for service.

For developing countries, the decision of the Parties changes several components of the schedule, including a 2030 phaseout of HCFCs in new equipment with capability to use HCFCs to service existing equipment until 2040. The changes include: (1) establishing a baseline from the average of 2009-2010 levels of production and consumption, (2) establishing an earlier freeze of consumption and production from 2016? to 2013, and (3) establishing interim HCFC reduction steps of 10% reduction in 2015, 35% reduction in 2020, 67.5% reduction in 2025, allowing for servicing an annual average of 2.5% between 2030 and 2040, and 100% phase-out in 2040.

The Parties agreed that funding for developing countries from the Protocol’s Multilateral Fund will be stable and sufficient to enable them to comply with the accelerated phase-out.

Also, as part of the agreement, it was agreed:

  • To encourage Parties to promote the selection of alternatives to HCFCs that minimize environmental impacts, in particular impacts on climate, as well as meeting other health, safety and economic considerations;
  • Multilateral funding criteria for HCFC alternatives will consider substitutes and alternatives that minimize other impacts on the environment, including on the climate, taking into account global-warming potential, energy use and other relevant factors;
  • To agree to address the possibilities or need for essential use exemptions, no later than 2015 where this relates to Developed countries, and no later than 2020 where this relates to Developing countries;
  • To agree to review in 2015 the need for the 0.5 percent for servicing provided for Developed countries, and to review in 2025 the need for the annual average of 2.5 percent for servicing provided for Developing countries and
  • To request the Technology and Economic Assessment Panel to conduct a scoping study addressing the prospects for the promotion and acceptance of alternatives to HCFCs in the refrigeration and air-conditioning sectors in Developing countries, with specific reference to specific climatic conditions and unique operating conditions, such as those as in mines that are not open pit mines.

EPA Programs Prevent Greenhouse Gas Emissions, Save Dollars

In 2006, EPA's climate protection programs prevented 70 million metric tons of carbon equivalent greenhouse gas emissions--up from 63 million in 2005, according to a new report. The report, "Energy Star and Other Climate Protection Partnerships 2006 Annual Report" includes highlights of savings from the government's Energy Star program. In 2006, Americans, with the help of Energy Star, avoided greenhouse gas emissions equivalent to those from 25 million automobiles in 2006--up from 23 million in 2005--while saving more than $14 billion on their energy bills. Americans also saved a significant amount of energy in 2006--170 billion kilowatt hours (kWh)--or almost five percent of the total 2006 electricity demand.

Other EPA climate protection programs have also had great accomplishments. A few accomplishments from 2006 highlighted in the report include:

  • Partners of EPA's Green Power Partnership—which marked its five year anniversary in 2006--purchased almost 7 billion kilowatt hours of green electricity.
  • The Climate Leaders Program grew to over 100 companies--representing more than eight percent of total U.S. greenhouse gas emissions--and three partners announced the achievement of aggressive greenhouse gas reduction goals previously set through the program.
  • EPA's methane programs and initiatives like the Landfill Methane Outreach Program helped minimize total U.S. methane emissions to more than 10 percent below 1990 levels.

The report details the environmental and economic accomplishments of these programs and outlines goals for 2007 and beyond.

Copies of the "Energy Star and Other Climate Protection Partnerships 2006 Annual Report" are available for download at http://www.epa.gov/cpd/annualreports/annualreports.htm or in hard copy by calling the Energy Star Distribution Center at 1-800-490-9198.


New Federal Energy Regulatory Commission Units Created

Spurred by the requirements of the Energy Policy Act of 2005, the Federal Energy Regulatory Commission (FERC) unveiled two new units: the Energy Innovations Sector and the Office of Electric Reliability.

Energy Innovations, a unit within the Office of Energy Market Regulation, will promote and manage FERC’s activities with regard to demand response, energy efficiency, distributed generation, renewable energy issues, greenhouse gas emissions policies and advanced technologies relevant to the transmission grid and wholesale markets.

The Office of Electric Reliability, formerly a division within the Office of Energy Markets and Reliability, will focus on the development and implementation of mandatory and enforceable reliability standards for the users, owners, and operators of the nation’s bulk power system.


Eight U.S. Utilities to Seek Greater Efficiency Investments

Eight U.S. utilities that collectively serve nearly 20 million customers in 22 states have committed to pursue a 50% increase in their energy efficiency investments and to form a new institute to support energy efficiency efforts. The eight utilities—Consolidated Edison Company of New York, Duke Energy, Edison International, Great Plains Energy, Pepco Holdings, PNM Resources, Sierra Pacific Resources, and Xcel Energy—are committed to seeking regulatory reforms and approvals within the next 10 years to increase their investment in energy efficiency by $500 million annually, to about $1.5 billion annually. This increased level of investment in energy efficiency will not only reduce carbon dioxide emissions by about 30 million tons, but it will also avoid the need for 50 500-megawatt peaking power plants.

The eight utilities also committed to the creation of a national institute for electric efficiency, which will develop regulatory models and convene energy efficiency conferences for utilities. The institute will be a part of the Edison Electric Institute, which represents the nation's investor-owned electric utilities, and will be open to both U.S. and international parties that share its commitment to energy efficiency. The utilities made the commitment as part of the Clinton Climate Initiative. See the press release (http://www.duke-energy.com/news/releases/2007092701.asp) and fact sheet (http://www.duke-energy.com/docs/CGI-Fact-Sheet.doc).


EPA Announces Acceptable ODS Substitutes

The U.S. Environmental Protection Agency published a determination of acceptability in its Protection of Stratospheric Ozone: Notice 22 for Significant New Alternatives Policy Program which appeared in the Federal Register. This Determination of Acceptability expands the list of acceptable substitutes for ozone-depleting substances under EPA’s Significant New Alternatives Policy (SNAP) program. The determinations concern new substitutes for use in the refrigeration and air conditioning sector. Details for the acceptable substitutes are available in the federal register notice (72 FR 56628) from http://www.gpoaccess.gov/fr.


ASHRAE Washington Fellow Placed in Senator Sanders’ Office

Purdue University professor Bill Hutzel, ASHRAE's 2007/2008 Congressional Fellow has been placed in Vermont Senator Bernie Sanders’ Office. Bill was selected by Senator Sanders’ office because of his knowledge of relevant energy issues, and based on the Senator's membership on the Senate Energy and Natural Resources Committee, as well as the Environment and Public Works committee. In addition, Senator Sanders serves on the following Senate Committees: Budget; Veterans Affairs; and Health, and Education, Labor, and Pensions. Bill will be the primary staffer in Senator Sander's office focusing on energy legislation. It is important to note that Bill was offered several positions in both the House and the Senate, but Senator Sander's Office appeared to be a best placement based on issues of importance to ASHRAE.

Senator Sanders was elected to the U.S. Senate in 2006 after serving 16 years in the House of Representatives. He is the longest serving independent member of Congress in American history. Elected Mayor of Burlington by 12 votes in 1981, he served four terms. Before his 1990 election as Vermont’s at-large member in Congress, Sanders lectured at the John F. Kennedy School of Government at Harvard and at Hamilton College in upstate New York.

The Almanac of American Politics has called Sanders a “practical’ and “successful legislator.” He has focused on the shrinking middle class and widening income gap in America that is greater than at any time since the Great Depression. Other priorities include reversing global warming, universal health care, fair trade policies, supporting veterans and preserving family farms.

Senator Sanders has sponsored several relevant bills and amendments in the 110th Congress relevant to ASHRAE members: S.AMDT.1515 to H.R.6, To establish energy efficiency and renewable energy worker training program; S.AMDT.1525 to H.R. 6, To require that not less than 30 percent of the hot water demand for certain new or substantially modified Federal buildings be met through the installation and use of solar hot water heaters; S.309, A bill to amend the Clean Air Act to reduce emissions of carbon dioxide, and for other purposes and directs EPA to promulgate requirements concerning the energy efficiency and peak load reduction of electricity suppliers and to establish a renewable energy credit program; and S.1201, A bill to amend the Clean Air Act to reduce emissions from electric power plants, and for other purposes and requires (1) each retail electricity supplier to implement programs to achieve improvements in energy efficiency and peak load reduction; and (2) the Administrator to establish targets to reduce peak demand and electricity use.

Copyright ©2008, American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.

 

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