EERE: Tax Credits for Clean Energy Manufacturing, plus Energy Efficiency Funds

A weekly newsletter from the U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE). The EERE Network News is also available on the Web at: www.eere.energy.gov/news/enn.cfm January 13, 2010 News and Events President Obama Awards $2.3 Billion for New Clean Energy Manufacturing DOE to Award $187 Million to Improve Car and Truck Fuel Efficiency DOE to Award $47 Million to Boost IT and Telecom Energy Efficiency DOE Announces Additional Energy Efficiency Enforcement Action to Protect Consumers DOE to Support Clean Energy Projects in Costa Rica and the Caribbean Labor Department Awards $155 Million to Support Green Jobs Energy Connections EIA Sees Gasoline Hitting $3 per Gallon by Summer

News and Events President Obama Awards $2.3 Billion for New Clean Energy Manufacturing President Obama announced on January 8 the award of $2.3 billion in Advanced Energy Manufacturing Tax Credits for clean energy manufacturing projects across the United States, provided as part of the American Recovery and Reinvestment Act. The tax credits will go to 183 energy enterprises in 43 states involved in manufacturing components and systems relating to renewable energy, energy efficiency, and other clean energy technologies. Next-generation wind turbine blades, smart meters, and double-reflective glass for solar panels are among the designated products produced by the companies. The investment tax credits, worth up to 30% of the cost of each planned manufacturing project, will leverage private capital for a total investment of nearly $7.7 billion in U.S. high-tech manufacturing. President Obama said that the awards will "help close the clean energy gap" between the United States and other countries, while creating jobs and reducing carbon emissions. The projects were competitively selected through a merit review process, and the companies chosen say they will create more than 17,000 jobs. While projects selected for this tax credit generally must be placed in service by 2014, about a third of them will be completed in 2010. Qualifying manufacturers will produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. For example, to boost the smart grid, Itron, Inc. is making one of the first smart meters for the residential market that provides built-in, two-way communications and a remote on/off switch, giving customers more choice while enabling utilities to provide higher reliability at lower cost. Manufacturers of solar photovoltaic modules and components garnered about 40% of the tax credits, including more than $400 million for materials and component manufacturers such as AE Polysilicon Corp.; Dow Corning; DuPont; Hemlock Semiconductor Corp.; PPG Industries, Inc.; REC Silicon; Solaicx; and Wacker Polysilicon North America LLC, plus more than $500 million for both established and up-and-coming solar cell and module manufacturers like Abound Solar, Inc.; Amonix, Inc.; BP Solar International, Inc.; First Solar, Inc.; Konarka; Miasole; Nanosolar; Schott Solar, Inc.; Sharp Electronics Corp.; Spire Semiconductor, LLC; Stion Corporation; Suniva, Inc.; SunPower Corporation; Suntech; United Solar Ovonic, LLC; and Xunlight Corporation. See the DOE press release, the tax credit fact sheet, and the full list of projects (Excel 115 KB). DOE to Award $187 Million to Improve Car and Truck Fuel Efficiency DOE announced on January 11 that it will award more than $187 million, including $100 million in American Recovery and Reinvestment Act funds, to nine projects to improve fuel efficiency for heavy-duty trucks and passenger vehicles. With a private cost share of 50%, the funding will support nearly $375 million in research, development, and demonstration projects across the country. Currently, the transportation sector accounts for 28% of total U.S. energy use, and by 2030, these new vehicle technologies could save more than 100 million gallons of gasoline and diesel fuel per day, reducing carbon emissions from on-road vehicles by 20%. Peterbilt recently introduced aerodynamic versions of two of its highway trucks, providing an estimated 12% fuel savings. Under the new DOE funding, Cummins will add new fuel-saving technologies to one of Peterbilt's aerodynamic tractor-trailers. Credit: Peterbilt Three of the nine projects will focus on cost-effective measures to improve the efficiency of Class 8 long-haul freight trucks by 50%. These projects will receive more than $115 million in funding to develop and demonstrate systems-level fuel efficiency technologies by 2015, including technologies to improve aerodynamics, reduce engine idling, recover waste heat to increase engine efficiency, achieve improved combustion, and incorporate hybrid electric systems into truck powertrains. For example, Cummins Inc. will get nearly $38 million to build a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling. The remaining six projects, totaling more than $71 million, will support efforts to increase the fuel economy of passenger vehicle engines and powertrain systems. The goal is to develop engine technologies that, on their own, will improve the fuel economy of passenger vehicles by 25%-40% by 2015. In this area, Ford Motor Company will receive $15 million to achieve a 25% fuel economy improvement with a gasoline engine in a 2010 sedan using such approaches as engine downsizing, turbocharging, direct injection, and a novel exhaust aftertreatment system. Chrysler Group LLC and General Motors Corporation will also receive awards. See the DOE press release. DOE to Award $47 Million to Boost IT and Telecom Energy Efficiency The growing energy use of data centers is causing many companies to seek new ways to save energy. Credit:©iStockphoto.com/Felix Alim DOE announced on January 6 that it will award more than $47 million in American Recovery and Reinvestment Act funds for 14 projects across the country to improve energy efficiency in the information technology (IT) and communication technology sectors. The Recovery Act funds will be matched by more than $70 million from private industry. This DOE initiative is underway because the rapid growth in the data processing, data storage, and telecommunications industries has led to an increase in electricity consumption. IT and telecommunications facilities account for approximately 120 billion kilowatt hours of electricity annually, equaling 3% of all U.S. electricity consumption. Advances in the sectors' energy efficiency can produce energy and cost savings while reducing carbon pollution. The new funding is for research, development, and demonstration projects in three subject areas: equipment and software projects, focused on the core components such as servers and networking devices, as well as software to optimize energy use; technologies aimed at cutting both the power loss and heat generation that occurs as electricity moves through server-based systems; and advanced cooling technologies. For example, one company, Power Assure, Inc., which is getting $5 million, estimates its new power management software could cut energy use by 50% in large server farms by turning servers off and on when needed. Another company, Federspiel Controls, will use a $584,000 grant to develop a new dynamic cooling system that employs variable fan speeds, adjustable air inlets, and wireless temperature sensors to monitor and adjust temperatures in data centers. The company estimates that cooling systems typically account for 25% of a data center's energy use. See the DOE press release, the list of awardees (PDF 17 KB), and DOE's Industrial Technologies Program Web site. Download Adobe Reader. In addition to the new funding, DOE's Lawrence Berkeley National Laboratory (LBNL) is working directly with Silicon Valley companies to demonstrate energy-efficient data center technologies, such as temperature sensors embedded in servers to control cooling, modular cooling systems, and dynamic cooling systems connected to wireless sensors. LBNL is providing technical assistance to the Silicon Valley Leadership Group with funding from the California Energy Commission. According to a recent analysis by Frost & Sullivan, there is a growing interest in energy efficiency solutions for data centers as companies look for ways to cut costs during the economic downturn. For an average company, Frost & Sullivan estimates that IT infrastructure accounts for 5%-10% of the company's total energy consumption. See the press releases from LBNL and Frost & Sullivan. DOE Announces Additional Energy Efficiency Enforcement Action to Protect Consumers DOE announced on January 7 that it has entered into a Consent Decree with Haier America, thereby resolving an investigation into whether Haier violated DOE's energy efficiency standards. DOE's investigation led Haier to determine that a parts defect caused certain freezers to consume more energy than was represented to consumers, possibly violating DOE's energy efficiency standards and the Energy Star requirements for freezers. As part of the Obama Administration's commitment to enforcing energy efficiency, the Consent Decree obligates Haier to notify affected consumers, repair defective units, extend the warranty by one year, and pay a voluntary contribution of $150,000 to the U.S. Treasury. During the investigation by DOE's Office of General Counsel, Haier voluntarily identified the freezer parts defect and took immediate steps on its own to remedy it. Haier's cooperation with the DOE investigation was critical in reaching the Consent Decree, the first ever entered into by DOE to enforce minimum energy efficiency standards. DOE encourages all manufacturers to follow Haier's example. The Consent Decree covers standalone upright freezers sold between December 2008 and August 2009, although not all of the units will necessarily be affected by the parts defect. The following freezer models are covered: HUF138EA, HUF138PB, HUF168EA, and HUF168PB. Under the legal agreement, Haier will expand its efforts to inform consumers about potential defects in previously distributed freezers and will correct any identified defects at their expense. See the DOE press release and the Consent Decree (PDF 161 KB). Download Adobe Reader. DOE also announced on January 12 that it has received certifications for more than 600,000 residential appliances in 15 different product categories in response to its enhanced energy efficiency enforcement efforts. DOE recently informed manufacturers that they had until January 8 to submit correct energy-use data to DOE before aggressive enforcement actions would be taken. The certification data provided by 160 different manufacturers will allow DOE to review manufacturers' compliance with minimum energy efficiency standards and to take action to ensure that products are delivering the energy and cost savings required by law. DOE will aggressively pursue all manufacturers that have failed to comply with the certification requirements or that are selling products are in violation of energy efficiency standards. See the DOE press release. DOE to Support Clean Energy Projects in Costa Rica and the Caribbean DOE announced on January 8 that it has selected three initial projects under the Low-Carbon Communities of the Americas (LCCA) program, which was launched in June 2009 to assist countries in Latin America with sustainable energy market transformation initiatives. The three projects include an energy efficiency center in Costa Rica, a project to study and install small wind turbines on the Caribbean island of Dominica, and a broader effort to create low-carbon communities in the Caribbean. The Costa Rican energy efficiency center will train professionals in energy efficient technologies and auditing procedures and help expand the technical knowledge base and capabilities of countries across Central America. The project will bring together DOE; the Natural Resources Defense Council; ICE Grupo, Costa Rica's electricity and telecommunications group; and the University of Costa Rica. In Dominica, small wind turbines will be examined in terms of available technologies, economics, feasibility, commercialization strategies, and impacts on the electrical grid, leading to the pilot installation of turbines and a public information campaign. Dominica is also part of a broader effort in the Caribbean, under which the Organization of American States and selected Caribbean governments will enable participating countries to expand the development and use of renewable energy and energy efficiency systems, helping to increase the sustainability of their energy supplies while reducing carbon emissions. The project will also involve the island governments of Antigua and Barbuda, The Bahamas, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. Through the LCCA program, DOE invited countries to submit proposals for collaboration in areas including renewable energy development and building and industrial energy efficiency. DOE's National Renewable Energy Laboratory, along with other national laboratories, will provide technical assistance to countries receiving support under the initiative. See the DOE press release. Labor Department Awards $155 Million to Support Green Jobs The U.S. Department of Labor announced on January 6 nearly $100 million in green jobs training grants authorized by the American Recovery and Reinvestment Act. The latest round of funding, part of a larger $500 million Recovery Act initiative, will support job training programs to help dislocated workers and others to find jobs in green industries and related occupations. A total of 25 projects will receive grants ranging from approximately $1.4 to $5 million, and about $28 million of the total will support projects in communities impacted by auto industry restructuring. Training activities funded through this grant program will be individually tailored based on occupations and skills identified as in demand in local areas around the country. Training programs will seek to prepare workers for a range of careers, including hybrid electric auto technicians, weatherization specialists, wind and energy auditors, and solar panel installers. See the Labor Department press release and the full list of grantees (PDF 233 KB). Download Adobe Reader. In November, the Labor Department announced two other categories of grant awards totaling $55 million under the larger Recovery Act initiative: State Labor Market Information Improvement grants and Green Capacity Building grants. The Green Capacity grants, totaling $5.8 million, will increase the training capacity of 62 current Labor Department grant recipients through a variety of strategies, and will offer training opportunities to help individuals acquire jobs in expanding green industries. These grants will help serve underserved communities. And the State Labor Market Information Improvement grants, totaling $48.8 million, will support the collection and dissemination of labor market information, and will enhance the labor exchange infrastructure to provide career opportunities within clean energy industries. Grantees will be able to employ strategies that enable job seekers to connect with green job banks and help ensure that workers find employment after completing training. See the Labor Department press release and the full list of grantees (PDF 390 KB).

Energy Connections EIA Sees Gasoline Hitting $3 per Gallon by Summer A slow but steady growth in U.S. gasoline consumption is expected to drive prices at the pump for regular-grade gasoline above $3 per gallon by spring or summer, according to DOE's Energy Information Administration (EIA). The EIA's latest "Short-Term Energy Outlook," released on December 12, projects that regular-grade gasoline prices will average $2.84 per gallon in 2010, rising to $2.94 per gallon in 2011. Retail prices for diesel fuel will also escalate, averaging $2.98 per gallon in 2010 and $3.14 per gallon in 2011. Meanwhile, crude oil prices actually fell in December 2009, averaging only $74.50 per barrel, although prices were back up to $79 per barrel by the end of the month. The EIA expects crude oil spot prices to weaken over the next few months before regaining strength, gradually rising to $85 per barrel by the end of 2011. See the EIA's "Short-Term Energy Outlook."

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