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NASEO News

March 2004

U.S. Announces Major Clean Air Act Settlement with Santee Cooper

Posted: March 30, 2004

The Department of Justice and the Environmental Protection Agency, along with the State of South Carolina, on March 16, 2004, announced a major Clean Air Act settlement with the South Carolina Public Service Authority (Santee Cooper). The settlement resolves the federal government's claims that Santee Cooper violated the Clean Air Act New Source Review program at several of its plants by undertaking construction activities and increasing emissions of air pollution without installing required pollution controls. The settlement is expected to eliminate almost 70,000 tons of harmful air pollutants annually from four of Santee Cooper's existing coal-fired electricity generating plants in South Carolina. The settlement is consistent with a series of cases pursued by the federal government to bring the coal-fired power plant industry into full compliance with the New Source Review requirements of the Clean Air Act.

In addition to requiring Santee Cooper to reduce 37,500 tons per year of SO2 and 29,500 tons per year of NOx from its existing coal-fired units, the settlement requires Santee Cooper to improve its control of particulate matter (PM). The company will also pay a $2 million civil penalty, $700,000 of which will go to the State of South Carolina, and will spend at least $4.5 million to finance projects that are environmentally beneficial, including: $1.25 million for a South Carolina Land Conservation Project, $1 million for an Energy-Efficient Technologies Project, $1 million for a Demand-Side Management Project, $1 million for a Clean Diesel School Bus Project, and $250,000 to implement an Environmental Management System. Click here for more information.

State Performance Contracting Training Program

Posted: March 17, 2004

An in-depth State Performance Contracting Training Program will be held in Raleigh, North Carolina, April 22-23, 2004. The training’s focus is on performance contracting program development and implementation in public facilities. The training will provide sufficient and sound technical information, guidance, and resource materials to conceive, design, and implement a performance-based contract at state facilities utilizing third-party providers (ESCOs). Sessions include peer presentations about program successes in several states. Event sponsors include: the National Association of Energy Service Companies; Energy Offices of North Carolina, South Carolina, Florida, Alabama, and Kentucky; U.S. Department of Energy; NASEO; and others. For more information, click here.

Secretary Abraham Announces Energy Hog Campaign

Posted: March 15, 2004

On Tuesday, March 9, 2004, Secretary of Energy Spencer Abraham launched a national public service advertising campaign designed to make children and their parents aware of energy efficient behavior through a new spokes-villain, the Energy Hog, an energy waster. “The Energy Efficiency Campaign will raise public awareness of the benefits of making smart energy choices at home,” Secretary Abraham said. “By developing an appreciation for energy efficiency at an early age, children are able to make smart energy choices and encourage their parents to do the same.” The Energy Hog and the campaign were developed by the Advertising Council and Energy Outreach Colorado and are sponsored by DOE, The Home Depot, the North American Insulation Manufacturers Association (NAIMA), the National Fuel Funds Network, and the Colorado Governor’s Office of Energy Management and Conservation, all present for the launch. Nineteen State Energy Offices, in addition to Colorado, are also sponsors.

The campaign includes television, radio and Internet PSAs primarily targeted at children between the ages of eight and 13. Headlining the campaign is a reprehensible new villain, the Energy Hog, a computer generated creature that appears in the homes of families not using energy efficiently. The spots direct audiences to www.energyhog.org, where they can train to become Energy Hog Busters and learn fun and simple ways to use energy more efficiently. Per the Ad Council model, the PSAs will be distributed to media outlets nationwide and will run and air in advertising time and space that is donated by the media.

Kansas Hosts 9006 Workshops

Posted: March 7, 2004

The Kansas State Energy Program hosted two free public workshops to inform attendees about grants available under Section 9006 of the Farm Bill. The events met with great success and are an important means of getting the word out about this year’s 9006 program. The workshops encouraged advanced planning and project development to prepare for this year’s solicitation which will likely be released in early April. To access a copy of the press release on the Kansas event click here.

The U.S. Department of Agriculture’s 9006 program provides assistance to agricultural producers and rural small businesses for the purchase of renewable energy systems or for energy efficiency improvements. The notice of financial assistance for this fiscal year has not been published, but is expected in early April. Last year the program provided grants for up to 25% of the project’s eligible costs. The application deadline has yet to be announced, but it is expected the time line to apply will be fairly short. Planning and some engineering work should be started as soon as possible. More information on the 9006 program can be found under agriculture section of the Energy and Environmental Study Institute web site at www.eesi.org. 

Renewable Fuels Production Tax Credit Offered as Amendment to Jobs Bill

Posted: March 5, 2004

Senator Grassley this afternoon offered a second-degree amendment to the Jobs bill which extends by one year several tax provisions that have expired or are scheduled to expire to 2004. Four of those tax provisions are included in S. 2095, the energy bill. The major provision is the extension of the renewable fuels production tax credit until January 1, 2005. Chairman Domenici worked closely with Senators Grassley and Baucus on these tax credit extensions. He fully supports them. The inclusion of these four provisions in Chairman Grassley’s amendment will have no impact on the energy bill. The energy bill extends these and other tax credits for as much as ten years.

The four provisions in the amendment are:

Credit for electricity produced from certain renewable resources. Provides a tax credit for electricity produced from renewable resources, including wind, closed-loop biomass and poultry waste. Extends the placed-in-service date for qualified facilities by one year to include those facilities placed in service prior to January 1, 2005. Note: This is a one-year extension of present law.

Taxable income limit on percentage depletion for oil and natural gas produced from marginal properties. Extends the deduction for the depletion of oil and gas wells which is currently limited to 100% of the net income from the property in any year. Note: This is a one-year extension of present law.
Elimination of phaseout of credit for qualified electric vehicles. A 10-percent nonrefundable tax credit (maximum credit is $4,000) is available to buyers of qualified electric vehicles. The credit was scheduled to phase out between 2004 and 2006. The amendment eliminates the scheduled phaseout.

Elimination of phaseout for deduction for clean-fuel vehicle property. Certain costs of qualified clean-fuel vehicle property and clean-fuel vehicle refueling property may be expensed when such property is placed in service. The deduction for clean-fuel vehicle property was scheduled to phase out between 2004 and 2006. This amendment eliminates the scheduled phaseout.

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