QUICK NEWS, 7-1: IT’S DEAL/NO DEAL ON SENATE BILL; EXPECT NEEDED WIRES; MUCH LESS DRILL BABY DRILL; ALGAE BIOFUELS ROADMAP

IT’S DEAL/NO DEAL ON SENATE BILL
Mild climate bill still a tough sell
Darren Samuelsohn and Coral Davenport (w/Kendra Marr), June 30, 2010 (Politico)

"President Barack Obama and key Senate Democrats signaled…they can live with a climate bill that falls far short of the economywide cap-and-trade plan Obama campaigned on…[but it’s] not clear…they can pass one.

"Even a watered-down Democratic climate proposal still faces something between skepticism and outright hostility from most Senate Republicans — and the Democrats will need at least one, and probably a few, of them to get a bill through the Senate…Sen. Lindsey Graham (R-S.C.) said he had doubts that [the watered-down] utility-only proposal [discussed by Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.)]…could get enough traction, given competing interests and the short calendar before the elections…"

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"…[President Obama reportedly] insisted during the West Wing meeting that he wants to put a price on carbon emissions but acknowledged the difficulty of persuading other senators to go along on provisions that GOP leaders are quick to dub a “national energy tax.” … White House press secretary Robert Gibbs…said he wouldn’t disagree…[about] the administration’s willingness to budge from the sweeping, economywide approach…

"All 23 senators attending the meeting spoke about their preferences for energy and climate legislation, including Majority Leader Harry Reid (D-Nev.) and Energy and Natural Resources Committee Chairman Jeff Bingaman (D-N.M.), lead author of a bill establishing a nationwide renewable electricity standard and of a draft plan covering greenhouse gas emissions from power plants."

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"Among the Republicans, only Maine Sens. Olympia Snowe and Susan Collins endorsed the concept of setting mandatory caps on carbon emissions. Collins favored a bill she has co-authored with Sen. Maria Cantwell (D-Wash.) that would auction off the bulk of her plan’s emission allowances, with three-quarters of the revenue recycled back to taxpayers. But Snowe made perhaps the biggest waves when she suggested moving toward a utility-only approach [and moved toward the bargaining table]…[O]ther Republicans…wouldn’t rule out a utility-only approach, even if they had their doubts about its chances…

"Suggestions from the White House and Senate Democrats that they’ll scale back their ambitious climate bill are sure to draw fire from all sides of the climate debate…Some moderate Democrats aren’t even interested in going that far…And some of the far left environmental groups don’t like the idea all that much either…Reid is planning a mid-July floor debate on the energy and climate bill, before the Senate begins the confirmation debate on Supreme Court nominee Elena Kagan…]He] has not yet made any decisions on the size and scope of the packag…"


EXPECT NEEDED WIRES
Electricity Transmission Infrastructure; Market Drivers and Barriers, Emerging Technologies, Key Industry Players, and Worldwide Growth Forecasts
David Barry and Clint Wheelock, June 30, 2010 (Pike Research)

"The electric transmission grid is a crucial component of modern society…[T]ransmission is the foundation that supports activity in virtually all areas of the energy sector. In order to reap the full benefits of renewable energy and smart grid technologies, the capacity and information-carrying ability of transmission systems must be increased substantially. Indeed, the global economy will be inhibited if the grid cannot keep pace with technology advances, changing demographics, and the competitive energy markets.

"… [I]nvestment in the [U.S.] transmission infrastructure is a critical priority… Considering that support for transmission development has spanned 20 years and four presidential administrations, it seems likely that this policy trend will continue…Pike Research’s analysis finds that four market drivers have the most impact on the development of transmission projects…[1] Reliability/capacity enhancements…[2]Renewable portfolio standards (RPS)…Economic projects…Replacement of infrastructure…"

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"However, opposition to new transmission projects is common. The biggest obstacles are issues related to siting new lines and the allocation of project costs… [T]his issue will continue to be problematic. With regard to cost allocation, some progress has been made…Pike Research believes that the FERC will replace its current case-by-case cost allocation approach with a more consistent formula by the end of 2011."

"The same forces that are stimulating overall investment in the electric power industry have fueled technological innovation in…several key transmission technologies…[1] Extra high-voltage and ultra high-voltage lines…[2] High-voltage direct current…[3] High-temperature superconducting cable and electronic components…[4] Fault current limiters…[5] Power electronics…[6] Wide area monitoring systems and phasor measurement units…"

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"Public policy, market forces, and technological innovation have all…[made transmission] more competitive and more adaptable…[and] there is a greater emphasis on specialized applications…The transmission market varies significantly by region. In some areas, huge amounts of capital are being spent to modernize and expand…Pike Research forecasts that the worldwide transmission market will grow by a compound annual growth rate (CAGR) of 1.5% during the forecast period (2010-2020). The majority of this growth will occur during the first half of the period, leading to modest or even declining growth rates for some regions in the second half of the period.

"In the United States, the electric power industry has committed substantial resources to expand and modernize its grid. Pike Research forecasts an overall growth rate for transmission expenditures of 1.3% for the period from 2010 to 2020. The CAGR for the first half of the forecast period is expected to be 3.5%, reflecting the nation’s commitment to renewable energy and competitive wholesale energy markets."


MUCH LESS DRILL BABY DRILL
Public Opinion Snapshot: Public Turns Against Offshore Drilling
Ruy Teixiera, June 28, 2010 (Center for American Progress)

"The gulf oil spill disaster is starting to take a serious toll on public support for offshore drilling…[I]n February of this year, 63 percent of the public supported more offshore drilling as a policy response to address our energy needs, compared to 31 percent who were opposed. Today a majority of the public—52 percent—opposes offshore drilling, and support has fallen to 44 percent."

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"Compare those views on allowing more offshore drilling to the robust support for requiring that new homes and buildings meet higher efficiency standards (78 percent), for increasing federal funding for research on wind, solar, and hydrogen technology (75 percent), and for spending more on subway, rail, and bus systems (64 percent)."

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"The public is sending a clear message here about their priorities for meeting our energy needs. Let’s hope policymakers are listening."


ALGAE BIOFUELS ROADMAP
DOE Sees Long Road Ahead for Algae Fuels
Jenny Mandel, June 29, 2010 (NY Times)

"Biofuels squeezed from the cells of purpose-grown algae hold promise to help meet the country's need for non-petroleum fuels, but the technology is at an early stage and will require years of development to reach commercialization, the Energy Department said…

"DOE's National Algal Biofuels Technology Roadmap…aims to summarize the state of technology today and point to directions for future work, dives into great detail on the biology of various kinds of algae, means of cultivating and harvesting them, and how they can be processed into fuel."

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"The paper offers little guidance on what strategies hold the most promise to replace petroleum-derived fuels in the long term. But it paints a picture of the extensive research that will be needed to do so…[It] suggests that many years of both basic and applied science and engineering will likely be needed to achieve affordable, scalable, and sustainable algal-based fuels…

"Al Darzins, a contributor to the report and group manager with the National Bioenergy Center at the National Renewable Energy Laboratory, stressed… that algae is far less developed, technologically, than biodiesel fuel or corn ethanol…He pointed to the need for work on robust strains of algae and genetically enhanced strains to optimize qualities useful in fuel production, as well as in devising growth systems like open ponds or closed containers that will allow for inexpensive algae 'farming.'"

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"…[R]esearchers are working on building comprehensive life-cycle models of algae fuel production that can be customized for economic analyses on various approaches…[T]hey will help scientists focus on the most difficult and expensive parts of the process in search of ways to have the largest and most immediate impact on the overall economics of fuel production.

"One of the most promising characteristics of algae-based biofuels is the potential to create "drop-in" fuels that would work seamlessly with the existing transportation infrastructure -- unlike ethanol, which cannot be transported in gasoline pipelines or used at full concentration in conventional engines…Liquid fuels also pack more energy per unit of volume than do batteries, making them preferable in some respects for vehicles and…indispensable for some kinds of transportation like heavy trucks, railroads and aircraft…"