A Compilation of Renewable
Electric Activities in the States
Prepared for the NARUC Renewable and Distributed Resources Subcommittee
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Volume 11, No. 2 Summer 2002 State Activities
Florida
Legislature Calls for Renewables Study The legislature passed a bill (HB 1601), which calls for the PSC (in consultation with the Department of Environmental Protection) to conduct a study of Florida's renewable energy resources. The study is intended to describe public policy "options and mechanisms to encourage the increased deployment of renewables" within the state. The study is due to the legislature by February 1, 2003. The study requirement was included in a bill related to utility recovery of environmental compliance costs. Florida House Bill 1601 Calling for a Renewable Energy Study: http://election.dos.state.fl.us/laws/02laws/ch_2002-276.pdf (PDF Download: 100K) PSC Contact: David Jopling, (850) 413-6858 Illinois Governor Commits to Green Power Illinois Governor George Ryan marked Earth Day by issuing an executive order, which committed the state to buy green power for at least 5% of the electricity used by buildings owned or operated by agencies under the governor's control. The amount of renewable energy purchased will grow to at least 15% by 2020. The executive order defines "green power" as electricity generated from renewable sources such as wind, solar, organic wastes, and hydropower. It excludes the burning of municipal solid waste, wood waste, or tires. News Release on Illinois Governor's Green Power Executive Order: http://www100.state.il.us/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=1751 SBC Fund Provides Wind Project Support The Illinois Renewable Energy Resources Trust Fund is providing a $2.75 million grant toward the development of a new 50-MW wind project in the state. According to the Governor's Office, the project will add $50 million to the local tax base and provide $130,000 in annual lease payments to area landowners. Money for the trust fund comes from a system benefits charge (SBC) established in the state's 1997 electricity restructuring law. The surcharge raises about $10 million annually—50% funds renewables projects and the other half funds clean coal technology assistance. The grant program is administered through the Department of Commerce and Community Affairs (DCCA). Information on the Illinois Renewable Energy Grant Program: http://www.commerce.state.il.us/com/energy/alternate.html DCCA Contact: Rex Buhrmester, (217) 557-1925 Maryland PSC Issues Disclosure Requirement The PSC adopted rules requiring each electricity supplier or standard offer service provider to disclose to their retail customers uniform information about the environmental characteristics of the energy purchased by the customer. The environmental information must be published in a standardized label format as part of the customer's billing materials (or in other mailings determined by the PSC), and on customer contracts and marketing materials. The environmental information to be disclosed includes the fuel mix and air emissions associated with the generation of the electricity, and any other pollutants that the PSC may determine pose an environmental or health hazard. Maryland PSC Emissions Disclosure Rule Web Page: http://www.psc.state.md.us/psc/electric/emissiondisclosurerules.htm PSC Contact: Craig McDonnell, (410) 767-8076 Minnesota Solar Rebates Available The State Energy Office is administering a Solar Electric Rebate Program, funded by Xcel Energy, for grid-connected solar electric energy installations. The program will rebate between $2,000 and $8,000 per participant at a rate of $2,000 per kW. The money for the program is drawn from Xcel's Renewable Development Fund, which was established in legislation that authorized spent fuel storage at the Prairie Island nuclear power plant. Applicants can include residents, small businesses, nonprofits, schools, and local governments that are connected to the electrical grid. Minnesota Energy Office Solar Rebate Program Information: http://www.commerce.state.mn.us/pages/Energy/ModTech/solarmain.htm MN Energy Information Center: (651) 296-5175 New Hampshire State Enacts "Four Pollutant" Law Governor Jeanne Shaheen signed into law the Clean Power Act making New Hampshire the first state to legislatively require fossil fuel plants to reduce emissions of four pollutants, including sulfur dioxide, nitrogen oxide, mercury, and carbon dioxide (CO2). Operators of existing power plants can meet the reduction requirements by installing new emissions-control technology or purchasing emissions credits, or a combination of the two. The legislation also includes provisions to encourage energy companies to invest in energy efficiency and renewable energy. Governor Shaheen's Press Release on the New Hampshire Clean Power Act: http://www.state.nh.us/governor/media/050902clean.html Text of House Bill 284 - New Hampshire Clean Power Act: http://www.gencourt.state.nh.us/legislation/2002/hb0284.html New Jersey State Reaffirms Green Power Commitment The State of New Jersey reaffirmed its commitment to buy green power by entering into a contract with Green Mountain Energy Company to purchase a total of 113 million kWh of renewables-based electricity during a 15-month period. The green power purchase will represent 12% of the state government's total electricity needs with nearly 200 state facilities receiving green power under the deal. BPU Announces Project Awards The BPU announced $11.3 million in awards under a program to encourage the development of in-state, utility-scale renewable energy projects. The projects funded include wind energy (29 MW), landfill methane (4 MW), and solar photovoltaics (one MW). Project funding is in the form of production credits for completed projects on a ¢/kWh basis for a maximum period of five years and may include limited grants for design, permitting, or construction. The program is funded through the "societal benefits charge" created in the state's 1999 electricity restructuring law. New Jersey BPU Press Release on Renewables Project Awards: http://www.bpu.state.nj.us/wwwroot/communication/20-02.pdf (PDF Download: 122K) New Mexico State Enacts Renewables Incentives Governor Gary Johnson signed two bills creating incentives for alternative energy sources in the state. The first bill, SB 187, provides a state tax credit of 1.0¢/kWh for electricity generated from qualifying solar or wind systems of at least 20 MW in size. The second bill, HB 143, authorizes issuance of Industrial Revenue Bonds for electric generation projects—including wind energy facilities—sponsored by private companies and nonprofit organizations. The bill also allows the costs of certain wind generation equipment to be deducted from gross receipts. New Mexico Senate Bill 187 Providing for a State Renewables Tax Credit: http://legis.state.nm.us/Sessions/02%20Regular/FinalVersions/senate/S0187.html New Mexico House Bill 143 Providing for Industrial Revenue Bonds for Electric Generation Projects: http://legis.state.nm.us/Sessions/02%20Regular/FinalVersions/house/Hb0143.html State Energy Office Contact: Chris Wentz, (505) 476-3310 PRC Proposes New Renewables Rule The PRC has proposed a new rule to encourage the development of renewable energy in New Mexico. Under the rule, public utilities would be required to supply customers with an energy portfolio containing a progressively greater percentage of renewable energy sources, starting at 2% in 2003 and increasing to 5% in 2005 and 10% in 2007. Every utility also would be required to provide a green power service option to its customers. New Mexico PRC Proposed Renewable Energy Rule: http://www.nmprc.state.nm.us/3619proposedenergrl.pdf (PDF Download: 26K) PRC Contact: Maria Brito, (505) 827-6940 New York Energy Plan Boosts Renewables The State Energy Planning Board released the 2002 State Energy Plan, which stresses "increased energy diversity, with greater emphasis on renewable energy development and improved energy efficiency." The plan also includes the goal of reducing greenhouse gas emissions 5% below 1990 levels by 2010, and 10% below 1990 levels by 2020. The energy plan is developed to provide statewide policy guidance for energy-related decisions by government and private market participants within the state. While noting that renewable energy is more expensive to produce and purchase compared to energy from fossil fuels, the report states that the use of renewables "results in a number of benefits that are not easily quantifiable but are important to the State." These benefits include "avoidance of air pollutants from fossil fuel combustion and economic benefits arising from electricity price-hedging provided by renewable energy." The plan adopts an explicit renewable energy goal of increasing the share of renewable energy use 50% by 2020, which would increase renewable energy as a percentage of primary energy use from 10% currently, to 15% by 2020. To this end, the plan calls for a study of the feasibility of establishing a statewide renewable portfolio standard (RPS) for electricity generation. Link to New York State Energy Plan — June 2002: http://www.nyserda.org/sep.html For more information: (518) 862-1090, x3321 Oregon Energy Trust to Fund Wind Projects The Energy Trust of Oregon, an independent, nonprofit organization launched in March 2002, issued an RFP to develop up to 100 MW of new wind power in Oregon. The Energy Trust has established agreements with Portland General Electric (PGE) and PacifiCorp to sign long-term power purchase agreements with the successful bidder. The Energy Trust expects to pay up to $8.5 million to cover the difference between the cost of the wind power and the utilities' purchase price. However, the projects must come on line by December 31, 2003, in order to qualify for the federal production tax credit (see related story). The Energy Trust receives funding from the 3% public purpose charge established by the state's 1999 electricity restructuring law. Energy Trust of Oregon Web Site: http://www.energytrust.org/ Energy Trust Contact: Peter West, (503) 493-8888 Pennsylvania Renewables In State's Energy Plans Pennsylvania Governor Mark Schweiker has accepted recommendations from his Energy Task Force "that together would establish a Pennsylvania energy policy that comprehensively addresses all aspects of energy needs." The task force noted that while fossil fuels are expected to be a dominant energy source for the immediate future, it must be recognized that these are finite natural resources, and that efforts to promote the development and use of clean and energy-efficient technologies must be aggressively pursued. The task force called for an increase in the use of renewable energy to supplement traditional energy sources and to further diversify the state's energy portfolio in the long-term. Among the renewables-related recommendations are for the state to continue its commitment to purchase renewable and cleaner forms of electricity—the state currently purchases renewable energy to supply 5% of government power needs—and to encourage investments in renewable and alternative energy sources as a supplement to traditional energy sources. Pennsylvania Governor's Energy Task Force Recommendations: http://www.paenergy.state.pa.us/finalpolicy.htm Tennessee State Purchasing Green Power Tennessee Governor Don Sundquist announced that all state buildings in Nashville, including the governor's mansion, are obtaining a portion of their power from renewable sources, making Tennessee the first state government in the Southeast to purchase green power. The power is supplied through the Tennessee Valley Authority's Green Power Switch program, which utilizes wind, landfill methane, and solar resources. The state's green power purchase amounts to 720,000 kWh per year. News Release on Tennessee Government Green Power Purchase: http://www.state.tn.us/governor/apr2002/greenpower.htm Utah Net Metering Law Enacted In March, Utah became the 36th state to enact a net metering law. The law requires all electric utilities and cooperatives, except for municipal utilities, to grid-connect customers with solar, wind, small hydro-power, or fuel cell systems of up to 25 kW in size. If net metering results in excess customer-generated electricity during the billing period, the customer may carry forward a credit to offset purchases of electricity during future billing periods in the same year. Any unused credits expire at the end of the calendar year. Total customer participation is capped at 0.1% of the utility's 2001 peak demand. Utah Net Metering Bill: http://www.le.state.ut.us/~2002/htmdoc/hbillhtm/HB0007.htm Other ActivitiesOn March 9, President Bush signed into law an economic stimulus bill (H.R. 3090), which includes a two-year extension of the production tax credit (PTC) for new wind, closed-loop biomass, and poultry waste facilities. The PTC, originally created in the Energy Policy Act of 1992 and later extended to December 31, 2001, provides an inflation-adjusted tax credit of 1.5¢/kWh for electricity generated from qualifying projects. The new law extends the PTC retroactively from the end of 2001 to December 31, 2003. Economic Stimulus Bill (H.R. 3090) Containing PTC Extension: http://thomas.loc.gov/cgi-bin/bdquery/z?d107:h.r.03090: Farm Bill Includes Renewables Assistance Title IX of the Farm Security and Rural Investment Act of 2002 provides $115 million during a five-year period to support renewables development. The funds can be used to make low-interest loans, loan guarantees, and grants to farmers, ranchers, and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements. The grants cannot exceed 25% of a project's cost with a combined grant and loan (or loan guarantee) not to exceed 50%. The funding program will be managed by the U.S. Department of Agriculture. USDA Web Site for Farm Bill Information: http://www.usda.gov/farmbill/ Farm Bill Contact: Lisa Daniels (Windustry), (612) 870-3462 LBNL Examines RE Funds Progress Two reports from Lawrence Berkeley National Laboratory (LBNL) examine state experience with clean energy fund programs—16 states have established such funds, usually through a small surcharge on electricity bills. LBNL looked at programs to encourage utility-scale renewable energy projects and customer-sited photovoltaics (PV) systems. According to the LBNL researchers, clean energy funds have had varying success in supporting large-scale projects. Using grants, forgivable loans, and production incentives, state funds have allocated more than $265 million in support of a potential 1,500 MW of new renewable capacity. However, only a small fraction of this capacity has been built, often because developers have had difficulty finding buyers for their power. Regarding PV incentives, LBNL finds that "buy-down" programs have proven popular among state funds for a variety of reasons: they are relatively straightforward to implement, directly engage the public, impose minimal transactions costs on the system owner, and have the potential to provide quick and tangible results. With incentive levels ranging from roughly $2/W to as high as $6/W, about 24 MW of PV has been installed or reserved under state buy-down programs. LBNL Report on State Funds for Utility-Scale Renewable Energy Projects: http://eetd.lbl.gov/ea/EMS/reports/49667.pdf (PDF Download: 107K) LBNL Report on State Funds for Customer-Sited Photovoltaic Systems: http://eetd.lbl.gov/ea/EMS/reports/49668.pdf (PDF Download: 159K) LBNL Contact: Mark Bolinger, (510) 495-2881
This newsletter is prepared for the Renewable and Distributed Resources Subcommittee of NARUC's Energy Resources and the Environment (ERE) Committee to promote information sharing on state-level renewable electric activities.
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