A Compilation of Renewable
Electric Activities in the States
Prepared for the NARUC Renewable and Distributed Resources Subcommittee
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Volume 10, No. 3 Fall 2001 State Activities
California
PUC Suspends Direct Access On September 20, the PUC voted, by a 3-2 margin, to suspend retail direct access, which was a cornerstone of the state's 1996 electricity restructuring law. The action was in response to legislation enacted earlier this year calling for the PUC to suspend "the right of retail end use customers . . . to acquire service from other providers" until such time as the state has recovered the cost of power purchased to supply consumers during the recent power crisis. At one point, about 2% of California customers had switched to alternative suppliers, many of whom were selling green power. California PUC Order Suspending Direct Access: http://www.cpuc.ca.gov/WORD_PDF/FINAL_DECISION/9812.PDF CEC, CPA Support RE Development The California Energy Commission (CEC) announced that a third auction for financial incentives to support new renewable energy development yielded 300 megawatts (MW) of winning projects. The program is funded through the state's public benefits fund, which was initially established in the state's restructuring law and supports energy efficiency, renewable energy sources, and research and development of alternative energy supplies. The winning bidders will receive incentive payments of up to 1.5¢ for each kilowatt-hour (kWh) produced over the first five years of project operation. Previous auctions held in June 1998 and November 2000 resulted in awards totaling 1,000 MW of new renewable generating capacity. The newly created California Power Authority (CPA) also announced that it has entered into negotiations with project developers to purchase approximately 1,320 MW from new renewables development, comprised mainly of wind and biofuel. The CPA's stated goal is to sign contracts to acquire 1,000 MW of renewable energy by the summer of 2002. California Energy Commission Renewable Energy Program Web Site: http://www.energy.ca.gov/renewables/ California Power Authority Web Site: http://www.capowerauthority.ca.gov/ CEC Contact: Marwan Masri, (916) 654-4531 CPA Contact: Amber Pasricha, (916) 651-9750 Illinois Legislature Sets Renewables Goals Noting that "renewable forms of energy should be promoted as an important element of the energy and environmental policies of the State," the Legislature passed the Illinois Resource Development and Energy Security Act (Public Act 92-0012), a "broad-based $3.5 billion package designed to reinvigorate the Illinois coal industry and to strengthen the state's ability to provide electricity to its citizens." While primarily intended to address in-state coal industry needs, the law sets a goal for at least 5% of the state's energy production and use to be derived from renewable energy sources by 2010 and at least 15% by 2020. The law also provides for up to $500 million in revenue bond authorization to finance projects using renewable energy sources, such as wind and solar power. Illinois Public Act 92-0012: http://www.legis.state.il.us/publicacts/pubact92/acts/92-0012.html Massachusetts DOER Releases Draft RPS Rules The Massachusetts Division of Energy Resources (DOER) released draft regulations for implementing the state's renewable energy portfolio standard (RPS). As set forth in the state's electricity restructuring law, suppliers must provide 1% of their electricity from new renewables beginning in 2003, with the level rising by 0.5% each year to 4% in 2009 (SREN, Winter 1998). The proposed rules would apply to all electricity providers, including standard offer and default service. Suppliers would also be able to comply with the RPS by paying $50 per megawatt-hour (MWh) of obligation into the state's renewable energy development fund. Massachusetts Renewable Energy Portfolio Standard Web Page: http://www.state.ma.us/doer/rps/index.htm DOER Contact: Andrea Hattan, (617) 727-4732, x123 Minnesota Advisory Board Recommends RE Projects The advisory board to the state's Renewable Development Fund has selected eight renewable energy proposals for funding. The fund, which was established in the 1994 state law that authorized additional spent fuel storage at the Prairie Island nuclear plant, currently amounts to more than $16 million and will total about $8.5 million annually by 2003. The projects selected total more than 12 MW of power from a diverse set of renewable energy resources, including bio-methane, small hydro, and wind energy. Pending PUC approval, monies will also be provided to the State Department of Commerce to fund a rebate program for solar photovoltaic (PV) systems of up to 4 kW in size. Minnesota (Xcel Energy) Renewable Development Fund Web Page: http://www.xcelenergy.com/EnergyMarkets/EnergyMarketsRFPmain.asp Advisory Board Contact: John Lupo, (888) 547-9603 Nevada PUC Considers RPS Rules Pursuant to legislation passed earlier in the year, the PUC has initiated a rulemaking to establish a renewable energy portfolio standard for the state. The law calls for the state's investor-owned utilities to gradually increase the amount of power they buy or generate from renewable sources from a level of 5% of electricity sold in 2003 to 15% in 2013 (SREN, Summer 2001). Key legislative intent to be addressed is the determination of "just and reasonable terms and conditions" for the renewable energy contracts that a provider of electric service must enter into to comply with its portfolio standard. At the same time, pursuant to the RPS requirement, Sierra Pacific Power Company and Nevada Power Company each issued a Request for Proposals to solicit proposals for electricity generated from renewable fuel sources. The total amount of renewables requested is about 167 average megawatts (aMW) of capacity for 2003, rising to about 311 aMW for 2006, of which somewhat less than 10% must be solar-based. New Jersey BPU Orders Renewable Energy Programs In March, the BPU ordered a three-year program totaling more than $358 million in funding for new energy efficiency and renewable energy programs "that will help customers reduce energy use and lower their bills while developing renewable energy sources." Of this funding, 75% will go to the efficiency programs and 25% will be used to fund renewable energy projects. Funding will be collected through the "societal benefits charge" created by the state's 1999 electricity restructuring law (SREN, Winter 1999). The renewable energy funding will be divided between support for "grid supply" and "customer sited" renewable energy projects. The customer-sited project funding will provide rebates directly to customers or companies who install clean technologies such as fuel cells, solar electric systems, and wind generators in homes and businesses. New Jersey Clean Energy Fund Web Site: http://www.njcleanenergy.com New Mexico PRC Considers Substitute RE Rule The PRC has begun an inquiry into whether it should issue an interim rule to encourage the development of renewable energy in the state. The PRC had previously established a 5% renewables portfolio standard for all electricity providers to meet, with the RPS obligation tied to the start of electric retail competition (SREN, Summer 2000). However, implementation of that rule has been postponed by state legislation that delayed electricity restructuring for five years. New Mexico PRC Notice of Inquiry Into Renewable Energy: http://www.nmprc.state.nm.us/NI3619.pdf PRC Contact: Maria Brito, (505) 827-6940 New York Funding Available for Solar/Wind Projects The New York State Energy Research & Development Authority (NYSERDA) has funding available to support a variety of renewable energy activities. Current solicitations include proposals for the design and implementation of an initiative for photovoltaic (PV) education, outreach, and demonstration in New York State schools, and proposals to develop programs to market state-based renewable resources to New York consumers. NYSERDA is also soliciting proposals to explore and develop a regional environmental attribute certificate accounting and trading system (REACTS). The purpose of the system is to facilitate the sale and purchase of environmental attributes associ-ated with energy sold and purchased through the New York Independent System Operator (ISO) and through neighboring systems. NYSERDA Current Competitive Funding Opportunities Web Page: http://www.nyserda.com/rddopps.html NYSERDA Contact: John Saintcross, (518) 862-1090 x3384 North Carolina Utilities to Submit Green Pricing Tariffs Two investor-owned utilities, Carolina Power & Light and Duke Power, have committed to file green pricing tariffs by the end of the year as a result of a regulatory proceeding on the development of green power options in the state. The proceeding began as an investigation into the creation of a voluntary "green check-off" program through which retail electricity customers could contribute funds to increase renewable energy development. Currently under consideration is the development of a single statewide program that all utilities could offer to their customers. Link to North Carolina Green Pricing Proceeding (Docket E-100, Sub 90): http://ncuc.commerce.state.nc.us/docksrch.html Rhode Island State Extends System Benefits Charge Governor Lincoln Almond signed a bill extending the system benefits charge (SBC) for energy efficiency and renewable energy programs by five years. The SBC, which was established in the state's 1996 electricity restructuring law, is 2.3 mills/kWh (SREN, Fall 1996). The renewables portion of the fund is administered by a collaborative of state interests and has provided funding for a number of studies and activities focused on the development of landfill gas, wind energy, and PV systems. Recent activities include efforts designed to support the development of sustainable demand for "green power" among large and small customers in the state. PUC Contact: Al Contente, (410) 222-3500, x121 Vermont Energy Plan Calls for Efficiency, RE Governor Howard Dean unveiled a long-term energy plan "that blends highly efficient, small-scale power generation, the increased use of renewable energy sources, and stronger conservation efforts" to meet future growth in the state's electricity demand. The plan also calls on utilities to develop "green pricing" programs for their customers. To help achieve the plan's goals, the governor proposes to allocate $750,000 in oil overcharge funds to subsidize the use of renewable energy technologies. Vermont Long-Term Energy Plan: http://www.state.vt.us/psd/govenergyplan/GovEPlanWebPage.htm Contact: Christine Salembier, (802) 828-2321 Other ActivitiesNew England governors and eastern Canadian premiers adopted a Climate Change Action Plan that includes measures to increase energy efficiency in the region, increase the use of renewable energy, and decrease the impact of transportation. It also sets the groundwork for exploring a regional system of trading emissions credits for greenhouse gases. The agreement was adopted at the annual Conference of New England Governors and Eastern Canadian Premiers in August. The Plan sets a short-term goal of reducing greenhouse gas emissions to 1990 levels by 2010, and sets a mid-term goal of reducing the emissions to at least 10 percent below 1990 levels by 2020. New England Governors/Eastern Canadian Premiers Climate Change Action Plan: http://www.scics.gc.ca/pdf/850084011_e.pdf NEPOOL Selects GIS Contractor The New England Power Pool has selected the Automated Power Exchange (APX) to administer a new program that will help verify compliance with various environmental regulations in the six-state New England region. The program goal is to develop and operate an Internet-based generation information system (GIS) that will enable power generators, wholesale suppliers, and retail load-serving entities to efficiently track, manage, and report their compliance with state environmental standards that encourage increased renewable energy production and reduced emissions. Generators will track their fuel types and emissions, and transfer to power retailers electronic certificates that verify fuel types, emissions, and other characteristics. Generators, wholesale suppliers, and retailers will access their account statements and other information on an Internet portal, which will save time in record keeping and preparing compliance reports for the appropriate state agencies. Environmental regulations for power production set by individual states in New England include: renewable portfolio standards that set minimum renewable purchase levels for retailers; disclosure regulations that require electric retailers to describe the fuel source and other characteristics of the power that they sell; and cap programs that limit pollutant emissions. APX Press Release on NEPOOL Environmental Tracking System: http://www.apx.com/Pressinfo/Z_000738.htm EPA Launches Green Power Partnership On July 30, the U.S. Environmental Protection Agency (EPA) announced the Green Power Partnership, a new, voluntary program "aimed at boosting the market for power alternatives that reduce the environmental and health risks of conventional electricity generation." Twenty founding partners, including Fortune 500 companies, cities, universities, and other organizations, have committed to purchase a total of more than 280 million kWh of green power over the next year, enough to prevent about 200,000 tons of carbon dioxide emissions. EPA Contact: Kurt Johnson, (202) 564-3481 NREL Reports on Disclosure Policies To date, more than 20 states have adopted information disclosure policies that require electricity suppliers to provide information on generation fuel sources and, in some cases, air emissions. The National Renewable Energy Laboratory (NREL) has produced an on-line summary of state information disclosure requirements, which can be accessed on the Green Power Network at: http://www.eren.doe.gov/greenpower NREL Summary of State Environmental Disclosure Policies: http://www.eren.doe.gov/greenpower/disclosetxt.shtml NREL Contact: Lori Bird, (303) 384-7412
This newsletter is prepared for the NARUC Renewable and Distributed Resources Subcommittee to promote information sharing on state-level renewable electric activities. It is sponsored by the Office of Power Technologies of the U.S. Department of Energy.
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