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FOR IMMEDIATE RELEASE

USCHPA URGES CONGRESS TO CORRECT ADMINISTRATION'S DOE FY 2008 BUDGET REQUEST

BETHESDA, MD, February 15, 2007 --/WORLD-WIRE/-- Our nation faces unprecedented energy challenges in the years ahead, as we grapple with the economic and environmental results of our central station-dominated electricity system, which is connected to end users through miles of transmission wires. Numerous studies at the U.S. Department of Energy and elsewhere have quantified the substantial economic, environmental and national security benefits that result from locating more efficient generation closer to these loads.

Clean, distributed generation units would lower energy use and greenhouse gas emissions and increase system reliability. Unfortunately, the Administration's proposed fiscal year 2008 budget is severely lacking in support for distributed generation. It is not only silent on critical demand-side applications, but actually proposes eliminating support for clean and efficient distributed energy technology and systems development and application.

The 2008 proposed budget represents a total shift in program direction, eliminating $56.6 million spent in 2006 on distributed energy resources and re-programming the remaining $25.7 million for electric grid support services.

The request includes no funding for customer-based, on-site distributed generation or combined heat and power (CHP) research, development or deployment efforts.

The United States Combined Heat and Power Association (USCHPA) urges the 110th Congress to correct this critical oversight and pass needed appropriations legislation with adequate funding for local, clean heat and power technology development, system improvements and applications. The Association further requests a return to the fiscal year 2006 level of funding for distributed energy and combined heat and power programs. The Association supports re-drafted language for the department's FY 2008 budget, as shown below:

The Department of Energy's Distributed Energy Program has supported cost-effective research and development aimed at improvements in the performance, environmental signature, and reliability of distributed generation technologies and systems.

Specific technology development goals address gas turbines, microturbines, engines, desiccants, chillers, heat exchangers, combustion systems capable of utilizing renewable biomass/biogas fuels, high reliability local energy networks, advanced interconnection and communications equipment, continuing improvements to the first generation of highly-efficient integrated energy systems, and a network of CHP Regional Application Centers (RACs).

The program was funded at $60.6 million. We request an equal level of funding in fiscal year 2008.

This program currently resides in the Office of Electricity Delivery and Energy Reliability (OE). The proposed 2008 budget eliminates funding of distributed generation program elements and focuses exclusively on electric transmission and distribution system integration of renewable and distributed energy systems. There is no funding for efficient customer-based distributed energy development.

There has been a track record of success of in customer-based technologies and systems (e.g., packaged integrated energy systems, low-emission technology development, advanced reciprocating engines, microturbines and gas turbines).

We recommend utility and electricity supply-side elements of the program continue to reside in DOE's Office of Electricity Delivery and Energy Reliability (OE). We recommend that demand-side distributed energy development and energy efficient elements of the program that are targeted at energy-intensive manufacturing sectors, commercial building sectors, federal facilities and residential facilities be substantially increased from zero to 2006 levels and shifted to the Department's Office of Energy Efficiency and Renewable Energy (EERE) to complete the job that has been started.

"Local clean heat and power systems are a critical element in the portfolio of solutions to address energy security, climate change and our nation's competitiveness through energy efficiency," said Sean Casten, Chair of the USCHPA. "Continued investment will ensure that a key solution to our pressing energy issues is available. It is important that Congress recognize the positive contributions of clean, distributed energy technologies and demand efficiency on energy and climate policy."

The United States Combined Heat and Power Association (USCHPA) is an association of nearly 100 companies, organizations and individuals in the clean, distributed energy equipment and services industries. USCHPA promotes energy security, environmental stewardship and energy efficiency through the use of clean and efficient distributed energy technology and energy policy that fosters the use of clean heat and power systems (CHP) as a major source of electric power and thermal energy in the United States.

For information about USCHPA, visit our website, www.uschpa.org.

CONTACT:
Paul Bautista
Interim Executive Director, USCHPA
301-320-2505
paul.bautista@comcast.net

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