CleanTechLaw: Developments in Renewable Energy Law and Cleantech Policy

Utah: Bill seeks up to 75 percent tax credit for alternative energy

2012-02-24T16:56:00.001-08:00

A Utah Senate committee approved a bill Friday that would specify state tax credits for alternative-energy producers and shift the program to the new Office of Energy Development.

SB65, sponsored by Sen. Stuart Adams, R-Layton, would award credits starting at 20 percent and going up to 75 percent for 20 to 30 years, depending on the duration of a project’s energy production. It would apply to everything from renewables to oil shale, tar sands and nuclear.

Matt Pacenza of HEAL Utah said the bill appears to favor larger projects with longer development times, such as the proposed Green River nuclear plant that his group opposes. He said it also would do more for large oil-shale mines than for rooftop solar panels.

Adams said tying the credit to years of production is simply meant to reward development that brings Utah the most jobs. The bill passed the Senate Transportation, Public Utilities and Technology Committee unanimously.

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Australia Launches Clean Technology Investment Program

2012-02-22T00:27:00.000-08:00

This week, the Australian Government launched a program that will provide $1 billion in funding for manufacturers to improve energy efficiency and reduce pollution.

The Clean Technology Investment Programs will provide grants to help manufacturers buy new plant and equipment which cuts their energy costs or reduces carbon pollution.

The Industry and Innovation Minister, Greg Combet, launched the $800 million Clean Technology Investment Program and the $200 million Clean Technology Food and Foundries Investment Program - part of the Government's Clean Energy Future package.

They will support jobs and provide incentives for manufacturers to become more efficient, more competitive and more sustainable. Eligible manufacturers can apply for funding under the programs from today, by filling out an application here.

The Government also announced that hit would change co-contribution requirements to make the grant programs more attractive for small and medium-sized firms. Manufacturers with turnovers of less than $100 million requesting funding under $500,000 will now only have to match the government grants on a dollar for dollar basis. For all other grants under $10 million, applicants will be required to contribute $2 for every $1 from the Government. For grants of $10 million or more, applicants will be expected to make a co-contribution of at least $3 for each $1 of Government support.

Projects that can be supported include switching to less carbon intensive energy sources or installing new manufacturing equipment, processes and facilities to reduce energy consumption and carbon emissions.

Information sessions on the Clean Technology Programs will be held around Australia from next month. For more information visit www.ausindustry.gov.au.

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Florida Senate panel OKs renewable energy bill

2012-02-21T15:52:00.000-08:00

Years of gridlock on renewable energy in the state Capitol could be easing as a bill moves through the Florida Senate that would grant tax breaks and other incentives for alternative power production.

The bill is perhaps even more notable for what it doesn’t include: the potential for power companies to raise rates.

The legislation unanimously passed its second Senate test, the Agriculture Committee, on Monday. The success so far has left renewable energy supporters hopeful of more progress.

“It’s a modest bill but it still moves the issue along” after years of inaction, said Susan Glickman, of the Southern Alliance for Clean Energy, after the Senate Agriculture Committee’s favorable vote.

The legislation allows local governments to devote some local sales tax money collected for infrastructure improvements to energy efficiency programs, such as Sarasota County’s rebate for efficient air conditioners and other products.

The bill also provides annual tax breaks of up to $500,000 for utilities that build solar projects and other renewable energy developments, and up to $1 million for companies that create renewable fuels like ethanol.

Electric vehicle charging stations would have fewer permitting hurdles under the legislation.

Efforts to promote solar, biofuels and other renewable energy programs have consistently failed in the Legislature in recent years partly because of pressure by Florida Power & Light to make energy reform a vehicle for rate increases.

When Agriculture Commissioner Adam Putnam took responsibility for pushing the energy bill this year, he stripped it down to a simple list of tax breaks and other renewable incentives that do not touch on electric rates.

That did not stop FPL from trying to amend the bill on Monday. But the FPL-backed amendment was withdrawn in the face of opposition, clearing the way for passage.

Sen. Andy Gardiner, R-Orlando, who is sponsoring the legislation in the Senate on Putnam’s behalf, called it a “first step” after years of being “bogged down.”

Left unsaid was FPL’s heavy influence on past energy bills that led to significant opposition from lawmakers worried about rate increases.

The amendment FPL pushed Monday would have forced the Public Service Commission to make rate decisions based on improvements at individual power plants.

But opponents said the amendment essentially gave FPL a way to bypass the standard rate approval process.

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Wash. State Senate passes biomass bill

2012-02-20T08:00:00.000-08:00

The Legacy Biomass Bill (SB 5575) has passed through the Washington State Senate with an overwhelming majority vote of 45-1.

The bill, sponsored by State Senator Brian Hatfield, D-Raymond, will alter a 2006 initiative that excluded biomass facilities in operation before 1999 from being considered renewable energy producers. If passed by the House, the bill will also include materials such as yard waste, food waste, food processing residues and black liquor generated from the pulping and wood manufacturing process as eligible biomass products that would help meet the 2006 Initiative 937. The initiative called for public utility providers with 25,000 or more customers to meet energy conservation targets while using renewable energy resources, or to purchase renewable energy credits. Under I-937, large utility providers much generate at least 3 percent of their output from renewable energy, and 9 percent by 2016. Hatfield’s bill will start in 2016.

SB 5575 would allow facilities in operation before 1999 that produce energy with one of the newly added biomass sources to qualify for 937.The bill is the culmination of a five-year work period recognizing that the quest for renewable energy is as much about maintaining jobs as it is about energy, according to Hatfield. He said the bill will help electric utilities and major industries in the state’s rural communities reduce the cost associated with I-937. “It will allow biomass generation—power generated from wood waste—to qualify as a power source that can be used by electric utilities to more cost effectively meet their obligations under I-937,” he said. He added that it will sustain industries that include people who harvest timber and transport it in trucks to mills, people who work at the mills, and those who buy power from the electric utilities.

“We must maintain our state’s commitment to renewable energy,” said State Senator Kevin Ranker, D-Orcas Island, and the chairman of the Senate Committee on Energy, Natural Resources and Marine Waters. “This proposal better fits the energy, economic and ecological needs of our state. We have the chance to make changes that not only reward the pursuit of renewable energy, but also make the law more efficient for businesses.”

Hatfield praised the bill’s inclusion of black liquor, and hog fuel, as a qualified renewable biomass product, pointing to the Longview Fiber facility that may save up to 1,000 jobs by using black liquor as a biomass feedstock for potential electricity generation. A portion of the bill also allows industrial customers who earned renewable energy credits prior to 1999 to sell those credits back to their utilities providers.

Ranker also recently voiced his support for SB 5343, a bill that would exempt certain power generators from Clean Air Act requirements. Through the bill, generators fueled solely by biogas produced from anaerobic digesters would be exempt, as long as the biogas contains less than 0.1 percent sulfur, the aggregate heat input to the generator does not exceed 10 million Btu per hour, and the generator is not located in a federally designated nonattainment area for hazardous air pollutants.

“Anaerobic digesters are an exciting form of renewable energy that recognizes the important contributions agriculture is making to our communities and to our future,” Ranker said. The bill passed the Senate by a vote of 41-6.

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US Virgin Islands Launches 15-Year Energy Policy to Reduce Fossil Fuel Use 60%

2012-02-20T01:04:00.001-08:00

Targeting new, emerging technologies in locations and environments where they can make the greatest impact makes a lot of sense, and when it comes to renewable energy, island communities, cities, and states fit the bill. A clean, renewable energy movement is afoot in Hawai’i, where proponents are laying out a path to a 100% renewable energy future. A similar initiative is underway in the US Virgin Islands.

Like Hawai’i, the USVI — at great and increasing costs — depends on oil imports to produce most of its electricity, nearly 100% of it in the case of the USVI. As a result, the Caribbean island territory’s 110,000 residents pay some $0.47 per kilowatt-hour (kWh) for electricity — some 4-5x more than consumers in the continental US. USVI residents also depend on foreign oil to produce freshwater via seawater desalination.

USVI Governor John P. de Jongh Jr. and his administration are trying to change all that. Working with the DOE’s National Renewable Energy Laboratory (NREL) and the Interior Dept., de Jongh has crafted a planning framework, the goal of which is to reduce fossil fuel use on the islands by 60% in the next 15 years.

The USVI depends on tourism for some 80% of its economic activity. Tourists from other climates tend to really like their a/c. That makes reducing fossil fuel usage even more of a challenge, one that requires active support and participation all along the electricity production and consumption value chain — from consumers to power producers. Not the least among them is efficiently integrating a mix of intermittent, renewable energy resources into the grid and assuring a ready supply of high-quality electrical power. Another key aspect of achieving the program’s aims is winning lasting support from the islands’ residents and businesses.

The rewards are numerous, substantial, and lasting, however. Success in the USVI would not only yield multiple, long-term benefits economically, socially, and environmentally, but it would also lead to replicating the means and methods in the continental US.

“What we’re attempting to do is integrate every large portion of renewable energy into our system,” said Karl Knight, director of USVI’s Energy Office and a board member of the Virgin Islands Water and Power Authority, in an NREL press release. “Think of it as a pilot for how to integrate renewables as a large proportion of the grid.”

NREL has worked with USVI government, utilities, and public and private groups to map the island territory’s renewable energy potential in order to craft a workable plan that would result in renewable energy resources meeting its electricity needs by 2025. The plan calls for building out a mix of six different technologies. By far, the single largest source of potential fossil fuel reduction will come from another source, however — energy efficiency improvements.

The high cost of using oil to produce electricity and freshwater has put increasing strain on residents’ pocketbooks, low-income residents, and retirees, in particular. Their reduced personal income and spending has also constrained economic development.

“If the rate is going to be 40 cents a kilowatt hour or more, it shapes the type of business that’s willing to locate in the Virgin Islands,” Knight elaborated. “Our total dependence on oil for power generation in an era of expensive crude oil is having a huge impact.”

The USVI burns 2.6 million barrels of oil every year to generate electricity and desalinate seawater. Reducing this 60% by 2025 can be achieved by the following mix of renewable energy and energy efficiency improvements, according to the USVI-NREL plan:

2 percent biomass

3 percent landfill gas

3 percent solar

6 percent wind

8 percent waste-to-energy

38 percent energy efficiency

“We think 60 percent is very realistic,” Knight said. “The government established that goal in collaboration with NREL and the Island Nations global partnership. They challenged Gov. de Jongh to be aggressive in his goal-setting and he took them up on it. We established the aggressive goal because we spend so much on energy. The only thing that people in the Virgin Islands talk about is the size of their electric bills.”

Improving the energy efficiency of the USVI electric utility is the most cost-effective, “low-hanging fruit” that should be taken advantage of, explained NREL’s Karen Petersen. Other measures that “will help immensely” are as simple as turning off lights in buildings and lowering the air conditioning in tourist hotels. “We’re working to create a whole cultural shift,” Petersen said. “They’re very conservative in their use of energy because of need, but it doesn’t necessarily revolve around an environmental ethic.”

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Maryland gov lobbies lawmakers for offshore wind

2012-02-19T23:11:00.000-08:00

Maryland's governor lobbied lawmakers personally Tuesday for one of the key pieces of his environmental agenda, a reworked offshore wind power bill modeled on a New Jersey law.

The bill follows one that was killed the year before by lawmakers over concerns about costs. That bill would have mandated utilities enter long-term contracts with offshore wind power producers. The current bill establishes requirements for offshore wind power production, but does not require mandatory contracts.

Gov. Martin O'Malley still faced lengthy questioning about how much it would cost utility customers. O'Malley told members of the Senate Finance Committee the bill did require the state to "make a couple of bets."

"If you believe climate change is real and the cost of fossil fuels is going to go up, this is a smart hedge," O'Malley said.

If not, the public is protected in the bill, O'Malley said.

Those safeguards will ensure the average residential customer won't see their bill increase more than $2 a month and commercial customers won't see their bills increase more than 2.5 percent.

And the governor noted the health benefits of cleaner wind energy and potential savings from transmission grid congestion charges on imported out-of-state electricity if the wind power is coupled with an offshore transmission backbone. That could mean the overall cost could be lower than $2 a month for residential consumers, the governor said, noting the average residential bill contains about $4 a month in congestion fees.

Mark McDougall, senior vice president for external affairs at the Southern Maryland Electric Cooperative, which serves 150,000 customers in four southern Maryland counties, said safeguards in the bill that limit power costs to $200 a megawatt would mean an increase of $6.50 a month for SMECO customers. MacDougall said he was concerned whether the caps would function as supporters say they will.

SMECO spokesman Tom Dennison told the committee that the utility believes the bill will siphon resources away from its investments in other renewable energy technologies.

O'Malley told the lawmakers the state could not reach its renewable energy goals of 20 percent of all energy use by 2022 without offshore wind energy.

Sen. Allan Kittleman later asked three officials in O'Malley's administration whether the state had set the standard too high.

"Why, if we know it's going to cost so much, why can't we just scale this back and say it's going to be 15 percent?" Kittleman said.

By being an early adopter of the technology, Maryland could be in a position to develop suppliers and manufacturing companies in the state, said Malcolm Woolf, the head of the Maryland Energy Administration. He noted the state currently gets nearly 40 percent of its electricity from out of state.

Woolf said he would "rather have the fuel diversity on our grid, the jobs on our grid and the tax base here."

Public Service Commission Chairman Doug Nazarian later appeared before the committee, testifying that the bill does not contain costs caps, but calls for projections on the eventual cost of wind power. If a project can make it through the disqualification process, Nazarian said he felt it would get built.

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Obama Budget Would Cut $40 Billion in Fossil-Fuel Credits

2012-02-19T01:36:00.000-08:00

President Barack Obama, who pledged an “all of the above” energy strategy that included fossil fuels, renewed his proposal to cut more than $40 billion in tax breaks for oil, gas and coal producers in the next decade to spend more for conservation and alternate energy.

“We need to reduce our dependence on foreign oil by ending the subsidies for oil companies and doubling down on clean energy that generates jobs and strengthens our security,” Obama said today in a speech on at Northern Virginia Community College in Annandale, Virginia.

Republicans sided last year with companies including Exxon Mobil Corp. (XOM) of Irving, Texas, and ConocoPhillips (COP) of Houston, to push back Obama’s repeal of the fossil-fuel breaks, saying U.S. jobs would be lost as producers denied the credit would move operations overseas.

The budget, which boosts spending to add jobs in the short term while reducing the deficit over a decade, will trigger election-year sparring. The proposal borrows heavily from a package of tax increases and spending cuts Obama offered in September. Spending for energy efficiency and alternate energy would rise 25 percent.

‘Remain Difficult’

Winning support in the U.S. Senate “to single out the oil and gas industry will remain difficult,” Whitney Stanco, senior policy analyst at New York-based Guggenheim Securities LLC, said today in a note to clients today. The prospect for repealing tax credits for fossil fuels “will likely increase if Congress makes progress on comprehensive corporate tax reform,” she said.

The U.S. Energy Department’s 2013 budget, for the year starting Oct. 1, provides $27.2 billion in overall spending authority, a 3.2 increase over the current year, according to a summary. A loss for fossil fuels will boost U.S. aid for renewable energy and conservation programs, reflecting Obama’s commitment to alternative sources of energy amid Republican criticism.

‘All-Out’

Obama said in his State of the Union address in January the U.S. needed an “all-out, all-of-the-above” strategy on energy.

The plan calls for a $4.75 billion cut in tax credits for oil companies in 2013, including repeal of $3.49 billion in so- called intangible drilling costs, for a savings of $38.6 billion by 2022. The budget shows cuts equal about 1 percent of domestic oil and gas revenue in the next 10 years.

“The president’s 2013 budget plan returns to the well of bad ideas and back tracks on his State of the Union commitment,” said Jack Gerard, chief executive officer of the American Petroleum Institute in Washington, on a conference call with reporters.

Scott Slesinger, legislative director of the Natural Resources Defense Council, said the “forward-thinking” budget proposal would create jobs and protect the environment.

The Energy Department budget includes $12 million for research that would reduce risks associated with hydraulic fracturing for natural gas in shale formations. The process, called fracking, uses a mixture of water, chemicals and sand injected underground to free trapped gas. The Interior Department budget includes a $13 million increase for the U.S. Geological Survey to work with agencies on fracking studies.

Offshore Royalties

While the technique has driven up domestic production and reduced prices for natural gas, environmentalists say it poses a risk to drinking water sources.

The Interior Department’s 2013 budget projects royalties from offshore oil and gas production to remain flat at $5.86 billion in 2013. The department is proposing inspection fees on federal lands and waters, which would collect $48 million, fees for non-producing oil and gas leases, to raise $13 million, and royalties on silver, gold and copper production. Those fee proposals were included in last year’s budget.

Obama’s budget would cut tax preferences for coal, valued at $235 million in 2013 and $2.88 billion by 2022. The tax benefits include letting companies expense exploration and development costs.

Fossil-Fuel Aid

The budget would fund research in fossil-fuel energy, primarily for carbon capture and storage programs, at $421 million in 2013, a 21 percent reduction from current spending.

Last year, the president requested authority for an additional $36 billion in loan guarantees for nuclear energy, which Congress denied. The budget for 2013 didn’t renew the request.

“The 2013 budget does not include any additional loan authority or appropriated credit subsidy as the program will focus on deploying the significant amount of remaining resources appropriated in prior years,” according to the budget document.

The coastal oil-producing states of Louisiana, Texas, Mississippi, Alabama, California and Alaska face a $200 million cut in an Interior Department conservation and preservation program to protect fish and wetlands. The six states failed to use about $540 million out of $1 billion provided in 2007-2010, according to the Obama’s budget plan.

“States have been slow to obligate funding,” today’s budget proposal said. “In a period of severe fiscal restraint, leaving these unobligated funds in an account where they are not being deployed is no longer defensible.”

Energy Research

Among programs benefiting in Obama’s Energy proposals is the Advanced Research Projects Agency-Energy, which would get $350 million in 2013, an increase from $275 million in 2012. Secretary Steven Chu has described ARPA-E as a “swing for the fences” program that supports research into cutting edge clean energy innovation.

“We’re very focused on saving money by saving energy,” Chu said at a department briefing.

Energy efficiency and renewable energy would get $2.27 billion, an increase from $1.81 billion, under the budget proposal.

The spending includes money for solar-energy research as part of Chu’s SunShot Initiative to make solar competitive with other fuel sources without subsidies by 2020. Solar energy would get $310 million in the budget, from $289 million in 2012.

The budget would also increase spending to develop and promote technologies to cut the energy use of buildings. That program would get $310 million in the proposal, an increase from $219 million.

Pipelines, NRC

An advanced manufacturing program to help industries cut their energy use also sees an increase, from $116 million in 2012 to $290 million.

Pipeline safety budget got a 70 percent, or $64 million, increase under the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration plan for 2013.

The president requested $1.05 billion for the Nuclear Regulatory Commission, a 1.5 percent increase from last year’s budget. The proposal includes a $9.7 million increase for reactor safety, primarily for costs to implement regulations developed as a result of meltdowns at Japan’s Fukushima Dai-Ichi plant last year. The NRC expects to recover about 88 percent of its budget authority from industry fees, according to the regulator.

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70% of Americans oppose federal subsidies for fossil fuels

2012-02-19T01:28:00.003-08:00

A survey by the Yale Project on Climate Change Communication shows that about 70% Americans oppose federal subsidies for the fossil fuel industry (coal, oil, and natural gas), including majorities of republicans, democrats, and independents.   

This is good news for the Obama Administration, which is expected to repeal more than $4 billion a year in subsidies for the fossil fuel industry.   Currently, the U.S. government provides about $10 billion a year in subsidies to the fossil fuel industry.

In his new proposed federal budget, President Obama called on Congress to repeal subsidies for the fossil fuel industry, arguing that these “inefficient fossil fuel subsidies…impede investment in clean energy sources and undermine efforts to address the threat of climate change."

Here are some other interesting findings in the the Yale report:

70 percent of Americans say global warming should be a very high (12%), high (25%), or medium (33%) priority for the president and Congress, including 44 percent of registered Republicans, 72 percent of Independents and 85 percent of Democrats.

90 percent of Americans say developing sources of clean energy should be a very high (30%), high (35%), or medium (25%) priority for the president and Congress, including 82 percent of registered Republicans, 91 percent of Independents, and 97 percent of Democrats.

54 percent of Americans say that a candidate’s views on global warming will be either the “single most important issue” (2%) or “one of several important issues” (52%) in determining their vote for President next year, including 39 percent of registered Republicans, 55 percent of Independents, and 65 percent of Democrats.

65 percent of Americans support a revenue neutral carbon tax that would “help create jobs and decrease pollution,” including majorities of registered Republicans (51%), Independents (69%), and Democrats (77%).

60 percent of Americans support a $10 per ton carbon tax if the revenue were used to reduce federal income taxes, even when told this would “slightly increase the cost of many things you buy, including food, clothing, and electricity.” This policy is supported by 48 percent of registered Republicans, 50 percent of Independents, and 74 percent of Democrats.

49 percent of Americans support a revenue neutral carbon tax if the revenue was instead returned to each American family equally as an annual check. Only 44 percent support this policy if the revenues were instead used to pay down the national debt.

69 percent of Americans oppose federal subsidies to the fossil fuel industry, including 67 percent of registered Republicans, 80 percent of Independents, and 68 percent of Democrats.

54 percent of Americans oppose subsidies to the ethanol industry to make fuel from corn, including 56 percent of registered Republicans, 65 percent of Independents, and 49 percent of Democrats.

Public support remains high for regulating carbon dioxide as a pollutant (73%), signing an international treaty to cut emissions (66%), and requiring electric utilities to produce at least 20% of their electricity from renewable energy sources, even if it costs the average household an extra $100 a year.

Despite ongoing concerns about the economy, 66 percent of Americans say the U.S. should undertake a large (26%) or medium-scale effort (40%) to reduce global warming, even if it has large or moderate economic costs.

85 percent of Americans (including 76% of registered Republicans, 83% of Independents, and 90% of Democrats) say that protecting the environment either improves economic growth and provides new jobs (54%), or has no effect (31%). Only 15 percent say environmental protection reduces economic growth and costs jobs.

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Renewable advocates support Florida energy bills

2012-02-18T10:00:00.001-08:00

Advocates of conservation and renewable sources such as solar and biomass are supporting what sponsors are calling "modest" energy legislation in the belief that even a small start would cause those efforts to snowball.

A bill (HB 7117) that cleared the House Finance and Tax Committee on Wednesday and a similar measure (SB 2094) that's moving through the Senate wouldn't set specific goals such as the 20 percent level for renewables by 2020 once envisioned by former Gov. Charlie Crist.

Instead, the bills include such provisions as restoring tax exemptions and credits that expired in 2010, consideration of fuel diversity by the Public Service Commission when deciding whether to permit new power plants and a study on the effectiveness of an existing

Susan Glickman, a lobbyist for the Southern Alliance for Clean Energy, said her organization would prefer a more aggressive approach such as the targets 30 other states have adopted, but she said the legislation nevertheless would "start the conversation."

"When you get some of these projects on the ground it starts to just demonstrate that the projects are doable and the costs are feasible and in fact that energy efficiency and many new renewables cost less than traditional generation like a new nuclear power plant," Glickman said.

Rep. Scott Plakon, a Longwood Republican sponsoring the House bill, said it was drafted in consultation with Gov. Rick Scott and Agriculture Commissioner Adam Putnam.

It reflects many of the recommendations Putnam made after the Legislature last year shifted responsibility for overseeing Florida's energy policy from the governor's office to the Department of Agriculture and Consumer Services.

Plakon said his bill protects existing utility customers from paying higher rates to finance renewable energy and conservation projects while still looking out for future generations.

"This bill we believe provides the proper balance of those two things and the analytical framework for the PSC to move forward to giving us a nudge towards renewable energy," Plakon said.

Glickman acknowledged Florida lawmakers have no appetite for setting targets but noted the costs of renewable energy and conservation have dramatically declined since other states began taking that approach.

That should enable them to stand on their own with state help such as the tax credits and exemptions, Glickman said. She said there already are about $1 billion worth of Florida biofuels projects in the pipeline.

The House bill's study of the Florida Energy and Conservation Act would include a comparison with other states. Glickman said it will show Florida is lagging behind other states and force it to take a hard look at ways to promote efficiency.

Another provision focuses on the state's consumer advocate. It would move the Office of Public Counsel from under the Legislature to the governor and Cabinet. That panel also would get the power to remove the public council at any time.

Each chamber's version has one more committee stop before it can go to a floor vote.

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Vermont: Committee starts over on renewable power bill

2012-02-17T12:00:00.000-08:00

Legislation that would require utilities to purchase green energy will go back to the drawing board, according the chair of the House Committee on Natural Resources and Energy.

The bill, H.468, would have required utilities to purchase 80 percent of their power from qualifying renewable sources in 2025.

The bill set out ambitious goals for utilities, but after weeks of testimony, the second draft eased these qualifications by requiring 75 percent renewables by 2032. Thirty-five percent of those would have to come from “new” generation that came online after Dec. 31, 2004.

That draft, Rep. Tony Klein, D-E. Montpelier, said, is history.

“Where it would end up is by 2032 we would have a renewable portfolio standard, which would make all the techno geeks and academics happy,” he said. “Would it do anything? Not in my estimation. In my estimation we need to move faster. We need to move further.”

Klein’s bill would require utilities in Vermont to purchase renewable energy and retire the renewable energy credits. Under current law, utilities have to meet a percentage of their electric load from renewable energy projects. Power companies in Vermont can then sell the renewable energy credits. Other states require utilities to retire the credits.

The result is lower rates, but because utilities in Vermont are double dipping, the power is considered “brown” power — even if it comes from something like a wind turbine. This is a result of selling the credits or “environmental attributes.”

Utilities and some business groups have lobbied for the ability to keep these credits. Requiring utilities to retire them in the state will raise costs for ratepayers, they claim.

The renewable energy bill has seen somewhat of a softening in recent weeks. Klein said he plans to go back to the original version of the legislation.

Klein said he plans to propose that “new” renewables include projects that go online in 2012, not 2005, and that by 2025 utilities carry 30 percent of these “new renewables” in their portfolio.

Klein said he plans to propose another “standard offer” for small renewable energy projects that will guarantee long-term contracts between producers and utilities.

Environmental groups have questioned what the Legislature plans to do about energy from large-scale hydroelectric projects like those in Quebec. Vermont is the only state in New England that does not distinguish between small and large hydroelectric projects and deems both types “renewable.”

Klein proposes limiting the “new renewable” category for these dams to those online after 2012 and limiting the amount of what a utility can claim in its portfolio as an even smaller percentage of that “green” power.

“Hydro-Quebec is never going to be able to build a new dam and say all the power they are selling to Vermont came from that dam,” Klein said.

The concern among environmentalists has been that energy from Hydro-Quebec would essentially flood the New England market and produce an abundance of cheap renewable energy credits, undermining the entire accounting system for renewable energy credits.

As for these renewable energy credits, which utilities currently sell in large part to Massachusetts or Connecticut, they must be paired with the electricity at least for new projects, Klein said.

Klein said people should expect new proposals soon.

“We were not happy with the first two drafts,” he said. “They were way too complex, way too long and they did not deliver enough.”

While Klein and his committee got kudos from some local businesses at a press conference Thursday by Renewable Energy Vermont, at least one business group said the legislation goes too far.

Bill Driscoll, vice president of the Associated Industries of Vermont, said the proposed legislation raises cost and reliability concerns.

Excluding Hawaii and Alaska, Driscoll said, commercial industrial electric rates are already more expensive than most other states.

“Why are we trying to make things more expensive and more risky for businesses,” he said.

With Vermont’s small size and limited industry, Driscoll said, it absorbs more carbon than it emits. That’s according to a study by the Douglas administration three years ago.

With programs like the standard offer, Vermont already has a great deal of renewable generation, Driscoll said, and more small renewable projects can lead to reliability issues in addition to the increased costs.

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Court ruling may bring PACE back from the dead

2012-02-16T10:03:00.003-08:00

By: Sarah Mier, Cleantech Law Partners

The PACE program, once a beacon of hope for property owners looking to scale the initial hurdle of upfront costs to install energy efficiency and upgrade retrofit programs, now has a shot of escaping termination.

This savior comes in the form of a court ruling against the Federal Housing Finance Agency (FHFA). The court alleges FHFA did not provide adequate notice to stakeholders before pulling the plug on the program.

This is good news for property owners in the midst of initiating programs that counted on PACE funding and for supporters who seek to keep the useful funding afloat.

PACE has generated sizable excitement amongst community planners and commercial developers since its inception. Just a week before the announcement regarding PACE’s termination, San Diego based Figtree Energy Resource Company announced the offering of $725,000 to fund energy efficiency and renewable energy projects in four different California cities. Californians, under Assembly 81, have the right to enter into these types of contractual assessments against their properties to tap into funding for both energy and water retrofits. Not all states have legislation that supports PACE-type loans. In total, 27 states actively utilized PACE programs.

The loans, typically repaid over twenty years, finance solar panels, insulation, HVAC systems and other improvements. The benefits of the PACE program apply to a wide variety of entities. Therefore the program finds supporters across the spectrum, including labor unions, Fortune 500 companies and environmental groups alike.

The recent FHFA decision is not the first time the agency has acted to limit or effectively end the program’s reach. Currently PACE programs almost exclusively apply to commercial buildings, after a ruling in 2010 regarding Fannie Mae and Freddie Mac’s ability to underight mortgages for residential homes with PACE loans. In short, FHFA did not want PACE loans to trump residential mortgages. At the time supporters of the program actively urged FHFA to reconsider, however as lenders of over half of American mortgages, Fannie Mae and Freddie Mac’s position held consideration sway. Following FHFA’s guidance, the pair issued a “lender guidance letter” urging against the combination of mortgages and PACE loans. The result? Only a few cities, including Babylon, New York and Sonoma, California have kept residential programs alive.

Now the public again has a chance to try to put a stop to the next move by FHFA to effectively end the PACE program. The legal decision allows for a 60 day public comment period on the benefits of the program(ends March 26th). In this time, PACE supporters hope that enough feedback will roll in to prove FHFA’s actions against the program should be reversed.

Source: Sarah Mier, Cleantech Law Partners

Renewable industry leaders call for production tax credit extension

2012-02-16T00:00:00.000-08:00

Executives from the hydropower, geothermal and biomass industries have called upon the U.S. Congress to extend the production tax credit through 2016 for hydropower, geothermal and biomass.

The executives are calling for the immediate passage of the American Renewable Energy Production Tax Credit Extension Act of 2011 (H.R. 3307), which covers renewable technologies. The bill has bipartisan support. It was introduced by U.S. Representatives Dave Reichert (R-WA) and Earl Blumenaeur (D-OR) .

"The hydropower industry supports jobs and low-cost clean energy around the country," says NHA executive director Linda Church Ciocci. "Our industry has huge potential to contribute even more to America's economy and clean energy future. This is why it is so urgent that Congress keep in place the policies that support renewable energy growth."

The call to action was accompanied by a letter to Congressional leaders, which noted that the approaching expiration of the tax credit in 2013 is already leading to a decline in new projects and construction.

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U.S. Senator Bingaman pushes to renew renewable energy tax credits

2012-02-15T00:00:00.000-08:00

Senator Jeff Bingaman (D-NM), Chair of the Senate Energy and Natural Resources Committee, is trying to get the renewable energy tax credits renewed as part of the payroll tax cut bill.

He also wants the energy efficiency incentives for homeowners renewed which expired at the end of 2011.

In an editorial on The Hill, Bingaman says:

On Renewable Energy tax credits:

Failure to extend tax incentives for clean energy now will result in jobs lost, reduced U.S. manufacturing competitiveness in a growing, multitrillion-dollar market and a blow to our economic recovery. Despite recent years of solid growth, several industries - including the wind, biofuels and energy efficiency sectors - have already begun cutting workers. Unless Congress acts immediately, more layoffs are inevitable.

Recent economic data confirm how manufacturing is driving America's economic recovery. The Bureau of Labor Statistics showed the economy gaining 243,000 jobs last month - 50,000 of them in the manufacturing sector. Clean energy plays an mportant role in creating new jobs and greater energy production.

U.S. wind capacity has reached 42,000 megawatts - enough to power 10 million homes. Over the last four years, wind has accounted for more than 35 percent of all new generating capacity, second only to natural gas.

These clean-energy jobs are made in America. As a recent Congressional Research Service report detailed, the United States now has more than 420 wind-component manufacturing facilities in 43 states. The domestic content of wind turbines installed in the United States is now greater than 65 percent. This means more U.S. manufacturing jobs today and a robust domestic supply chain that will keep the industry here for years to come.

On Energy Efficiency Credits

Incentives promoting energy efficiency have profoundly positive effects. Energy efficiency improvements, from homes to buildings to industrial sites, provide steady construction jobs that save Americans money and that cannot be exported.

Read his full editorial.

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In another editorial on The Hill, Senator Jeanne Shaheen (D-NH) urges the Senate to bring her national energy efficiency bill to the floor for discussion.

The Energy Savings and Industrial Competitiveness Act (S. 1000) passed by a strong margin in committee, 18-3 last year.

She says:

Efficiency is the cheapest and fastest way to start addressing our energy needs. Through widespread adoption of stronger efficiency standards that rely on commercially available technology, we can reduce energy use while creating jobs at the same time.

Our broad-based bill has strong backing from the business community.

First, it creates immediate jobs for construction trades. Businesses and homeowners alike need experts in heating and cooling systems, window replacement and computer-controlled thermostats. The demand for these building improvements will support manufacturers of heating systems, windows, computers and thermostats, as well as the experts it takes to install them.

Second, the bill helps manufacturers save money and stay competitive with overseas producers. Along with targeted financing, our proposal provides technical support and training for producers to improve the efficiency of their supply chains.

Third, the bill encourages updating national model building codes through incentives to states.

Read her editorial here.

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California adopts revolutionary new clean car standards

2012-02-14T00:00:00.000-08:00

On January 27, 2012, the California Air Resources Board (“ARB”) notched a potential victory in the battle against greenhouse gas (“GhG”) emissions. In a unanimous vote, ARB adopted the Advanced Clean Cars (“ACC”) regulatory package, which is a program designed to deliver cleaner air, reduce GhG emissions, and help build the market for fuel cell and battery-electric vehicles. At the opening of the ARB hearing on this historic vote, Mary Nichols, ARB Chairman, predicted:

This program will make the cleanest cars and the new technologies commonplace. The Advance Clean Cars package will help clean our air, help us fight climate change, and perhaps most important for the average citizen, save thousands of dollars over the life of the vehicles. It also gives us the ability to brag that we are the clean car capital of the world.

The robust ACC program combines various automotive regulations into a package of standards and initiatives applicable to model years 2015-2025. The ACC program is designed to address two important environmental and public health threats – climate change and unhealthy levels of smog and particulate pollution – by substantially reducing, and potentially eliminating, heat-trapping emissions. The program is composed of three separate, yet equally important prongs: Zero Emission Vehicle Program, LEV III Standards, and Clean Fuel Outlet Program.

Zero Emission Vehicles Program

First, the ACC program touts the Zero Emissions Vehicle (“ZEV”) regulation as the “technology forcing piece” of the package. This regulation requires a minimum number of battery electric, fuel cell electric, and plug-in hybrid vehicles to be sold in California. The anticipated target for this regulation is 1.4 million ZEV by 2025, accounting for 15% of the new vehicles sold. Future emissions-reduction efforts will need to be even more ambitious, as ARB predicts that 87% of the cars on the road will need to be ZEV to achieve the goal of reducing GhG emissions to 80% below 1990 levels by 2050. The plug-in hybrid car is the presumed transitional model for the next twenty years.

The new ZEV regulation simplifies the method for credit allocation based on zero emission ranges. Automobile manufactures will receive 1.5 credits for 100-mile battery electric vehicles and 3.5 credits for 300-mile fuel-cell electric vehicles. The credit allocation method also allows automobile makers to bank ZEV credits indefinitely for use in later years.

Additionally, a special provision has been adopted that will allow automobile manufacturers to overcomply with GhG fleet standards (as discussed below) to offset ZEV requirements for 2018-2022. However, in order to be eligible, manufacturers must buy a certain percentage each of the four years.

"These robust, zero-emission vehicle standards will provide the market assurance automakers and the energy industry need to transform the electric vehicle in to a mass-market success," said Don Anair, senior engineer with the Union of Concerned Scientists' Clean Vehicles program. "This landmark initiative will strengthen California's emerging electric vehicles industry, creating jobs and making zero-emission vehicles more affordable for consumers."

LEV III Standards

The second piece of the package is ACC’s LEV III regulations that control soot, smog-causing pollutants and GhG emission. LEV III aims to reduce fleet average emissions of new passenger cars, light-duty trucks, and medium duty passenger vehicles to super ultra-low-emission vehicle levels by 2025. In addition, the life durability requirements for vehicles have been increased from 120,000 to 150,000 miles. LEV III regulations also implement zero fuel evaporative emission standards for passenger cars and light-duty trucks, and more stringent evaporative standards for model year 2017-2025 medium-duty vehicles. Furthermore, GhG emissions will be reduced to 166 grams per mile – a 34% reduction from 2016 levels – and the standard will be achieved through more efficient drive trains and engines, the use of stronger and lighter materials, and other, already existing technologies.

These regulations were developed over the past three years through extensive coordination with the federal government and the automobile industry itself. This cooperative effort included a joint fact-finding process with shared technical and engineering studies. The program has been designed to harmonize with and parallel the federal rules proposed by the Obama administration in the summer of 2011.

Clean Fuels Outlet Program
Finally, the third prong of the program is the Clean Fuels Outlet (“CFO”) regulation, which is intended to ensure that ultra-clean fuels, like hydrogen, are available to meet vehicle demands associated with the special ZEV "overcompliance" provision. The CFO regulation ensures that adequate fueling infrastructure will be available by requiring construction of alternative fuel stations. This requirement is triggered when there are 20,000 alternative fuel vehicles using a particular fuel. The regulation also includes a modification that lowers the activation trigger to 10,000 vehicles for air basins. This is intended to complement auto manufacturers’ early commercialization plans to market fuel cell vehicles. The regulation does include a penalty provision for manufacturers’ noncompliance, if ARB is able to substantiate a claim that the manufacturer(s) knowingly falsified a report.

Currently automobile manufacturers, industrial gas suppliers, non-government organizations and the State of California are negotiating a Memorandum of Agreement (“MoA”) to support up to 100 clean fuel stations as an alternative to the CFO. If the MoA process is successful, then the requirement to build clean fuel stations will end. However, if the MoA process does not succeed, then the CFO requirements remain in force.

End Results

In hard numbers, by 2025, the ACC program is designed to deliver:

34% decrease in GhG emissions from cars including a 52 million-ton reduction of GhG emissions by 2025 and a cumulative 870 million-ton reduction of GhG through 2050;
1.4 million ZEV and plug-in hybrid vehicles on Californian roads by 2025;
1 in every 7 new cars sold in California will be a ZEV or plug-in hybrid (roughly 15.4%);
$5 billion savings for California drivers in operating costs; and
75% reduction in smog-forming emissions.

Other ACC Program Benefits

Not only is the ACC program expected to benefit California air quality, the program is also designed to increase State revenue. ARB analysts estimate that the program will save Californians $22 billion through 2025. Even after paying for the clean car technology, individual consumers are projected to save $4,000-$6,000 over the average life of a car sold in 2025. Specifically, the added cost of the technological improvements will be fully recovered from fuel savings in approximately the first three years of the car’s ownership. In addition, by 2025, the program is projected to create 21,000 new jobs across the State as consumers spend less on gas and more on other consumer goods. It remains to be seen whether these projections will materialize.

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Renewable energy can augment dwindling resources

2012-02-13T00:00:00.000-08:00

What will we do when petroleum fuel gets even more ridiculously expensive and hard to find?

That scenario may be more likely than you think.

“If we are lucky, and there are no sizeable collapses or wars, we probably have 10-12 years of a fairly broad peak in petroleum production in which to get our act together to start looking at the next plan down the road,” said Charles Woodward, who owns Natural Resource Co., Victor, ID.

Woodward spoke at an energy efficiency workshop at the Driggs City Center, sponsored by the Snake River Alliance.

“There are no more surpluses or energy cushions,” he said. “There is no place we can buy more petroleum at a reasonable price if somebody decides to shut off the tap. As production no longer meets demand, we will experience significant price increases for all petroleum products.”

Changes in the oil situation will most likely have an impact on transportation fuels.

“If oil and gasoline become extremely expensive, what you'll see is fuel switching, which will drive up the costs of other sources which can be converted,” he said. “It will just spread the pain. All energy sources are linked somewhat, economically.”

Small communities, including mountain locales, can be particularly vulnerable to drops in petroleum fuel production.

“Any community, which doesn't have good jobs nearby to support its people, will probably lose those people as they move to places where they can live close to where they work,” Woodward said.

“It's also going to affect the tourism scene tremendously, as fuel goes out of sight. It's going to require big changes toward public transportation.”

How can we run a society with less transportation fuel and with less liquid fuel? One answer is alternative, renewable energy sources.

“The Teton Valley has seen a recent influx of projects related to energy efficiency and renewable energy. Stimulus-related grants have allowed Driggs and Victor to install energy-efficient street lighting, and both communities have solar projects in the works,” said Liz Woodruff, energy policy analyst for the Snake River Alliance.

“What people need is services — hot showers, a refrigerator to keep their food cold, a house that's comfortable and warm. They're not interested in gallons of propane or kilowatt hours. They need services,” he said.

But people need to learn how to obtain the services they need as effectively and efficiently as possible.

“We need to look at how we use energy, how much do we each use, and the philosophies of energy use.” Woodward said.

He suggested doing a personal energy audit.

“Figure out all the ways you use energy; all the different types of energy: liquid fuel, gas, electricity. Figure out your average monthly cost. How much of what you're spending is really useful, and how much is waste? Figure out what you want to do differently so you have a better level of sustainability.”

Americans love to consume, and they love to have excess of everything, according to Woodward.

“But in the new frugality we're experiencing right now, people are downsizing,“ he said.

The average size of an American home being built prior to the building bust was 3,500 square feet, said Woodward. Last year, it was 1,500 square feet.

Beyond sustainability, in some situations, homes can be designed or retrofitted to produce enough energy to not only be off the grid, but also to sell back to the grid.

Technologies such as solar and wind energy and heat pumps can either produce energy or use energy much more effectively.

"A heat pump gives you three times as much heat for your kilowatt hours as an electric baseboard heater. It increases your heating efficiency tremendously," Woodward said.

Since 2000, solar electric modules have gone mainstream and have come down in price fairly significantly.

“Now one can have their own power-producing equipment, wind or solar, and sell back to the grid,” he said. “Most people aren't net producers, they're net consumers, but they can pay down their bill by producing some of their own power.”

Regarding statewide energy policy, Woodruff said, “we are looking to promote policies that would enable financing for renewable energy and energy-efficiency technology on homes and businesses. This could be done through on-bill financing or some other legislative approach related to city or county government.

“We will continue to work with local governments in the Teton County area to increase interest in finding policy solutions to financing issues.”

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Ga. Senate could consider proposal designed to encourage more renewable energy investment

2012-02-11T22:25:00.000-08:00

Georgia lawmakers have introduced legislation designed to encourage private investment in renewable energy sources like solar power.

Supporters of Senate Bill 401 say it is designed to allow customers and firms to use common financing mechanisms to fund new power generation facilities.

They say the bill could help Georgia boost the number of solar panels and other renewable energy sources across the state.

The bill was introduced by state Sen. Buddy Carter, a Republican from Pooler, and several other co-sponsors.

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Ohio: Jordan wants to scrap energy benchmarks

2012-02-10T22:15:00.000-08:00

State Sen. Kris Jordan, R- Powell, testified last week on a proposal to eliminate benchmarks designed to encourage the use of alternative energy in Ohio.

His proposed legislation would repeal Ohio's Alternative Energy Portfolio Standard, which requires 25 percent of the state's energy to come from advanced and renewable resources by 2025.

"It is my strong conviction that the choice of energy supply should come from the demands of the free market, and not from policy makers and environmental lobbyists," Jordan said.

The proposed legislation, Senate Bill 216, had its first hearing Wednesday before the Ohio Senate Energy and Public Utilities Committee.

Jordan, who represents Richland County as part of the 19th Senate District, said the state's alternative energy benchmarks should be "revisited to ensure competitive energy pricing for our constituents."

The benchmarks were approved with broad bipartisan support and signed into law by former Gov. Ted Strickland in 2008. They require at least 12.5 percent of electricity sold in Ohio to be from renewable energy resources -- including wind, hydro and biomass -- and at least 0.5 percent to be from solar by 2025. The remainder can be generated from advanced energy resources, including nuclear, clean coal and certain types of fuel cells. In addition, at least one half of the renewable energy used must be generated at facilities in Ohio.

Utility companies are able to purchase qualifying renewable energy credits to help meet the requirement. They face penalties for not complying with alternative energy benchmarks that ramp up each year until 2025.

The company behind a proposed north central Ohio wind farm is seeking a utility company to buy its electricity. The state board that certifies construction plans for energy facilities approved an agreement Jan. 23 that authorized the 91-turbine wind farm along the Crawford and Richland county line.

The state has certified nine wind farms across Ohio, totaling 662 turbines and 1,251 megawatts of generating capacity.

Wind farm construction is expected to start in north central Ohio in 2013 or 2014, the project manager said.

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Santa Monica grants residents green power via sustainability bill of rights

2012-02-10T22:09:00.000-08:00

If you're feeling enslaved to the third smoggiest metropolitan area in the country, perhaps you should pack up and move to Santa Monica, a city promising green rights to its residents.

Santa Monica City Council voted in favor of a Sustainability Bill of Rights last month, which will be incorporated into the existing Sustainable City Plan in the late summer or early fall of 2012. The Bill of Rights grants individuals green liberties, including the following:

- Clean, affordable and accessible water from sustainable water sources.

- A sustainable energy future based on renewable energy sources.

- A sustainable natural climate system unaltered by fossil fuel emissions.

- Sustainable, comprehensive waste disposal systems that do not degrade the environment.

- Clean indoor and outdoor air, clean water and clean soil that pose a negligible health risk to the public.

- A sustainable food system that provides healthy, locally grown food to the community.

The resolution "declares City recognition for the fundamental rights of natural communities and ecosystems to exist, thrive and evolve" and "supports effectuating these rights by modifying local law and policy as needed to better protect and sustain the natural environment for current and future generations," per the City Council report.

Green LA Girl says financial impacts have not been defined and will likely come with a cost.

The Bill of Rights was discussed during the latest LA Bioneers meeting where speaker Shannon Biggs of Global Exchange noted that 140 U.S. communities have passed similar ordinances and are successfully banning environmentally destructive actions like fracking, water withdrawal, factory farming and uranium mining.

This natural rights movement "is based on the belief that Earth is a community whose members are humans, other animals, plants, rivers, streams end eco-systems and that all members of the community must have rights to ensure the sustainability of the whole," according to the City Council report. Per the Bill of Rights, individuals are also permitted to sue in the name of nature.

Heal the Bay lists additional Bill of Rights requirements as:

- 100% self-sufficiency in development of a local water supply by 2020.
- 100% sustainable net renewable energy used in the City by 2020.
- 50% increase by 2020 in total miles of bike paths and bike lanes over 2005 levels.
- 25% of the food sold in the City originating from sustainable food systems.

Who Decides, Santa Monica? has been covering the Bill of Rights, and you can read their coverage here.

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Renewable energy incentives lure California solar firm to Connecticut

2012-02-08T05:19:00.000-08:00

California-based solar energy services company is the first to take advantage of Connecticut's efforts to encourage the development and use of renewable energy sources.

SolarCity, based in San Mateo, Calif., will announce today in a press release that it is expanding into Connecticut to provide a less-expensive way for residential and business customers to install and benefit from solar power.

Connecticut will be the 12th state plus the District of Columbia in which SolcarCity operates, joining four others in the Northeast -- Massachusetts, New Jersey, New York and Pennsylvania. SolarCity has leased an office in Hartford, its 26th operations center, and will fill positions locally, officials said. They did not say how many people they will hire.

SolarCity is expanding to Connecticut in large part due to the efforts of the state—through programs at Connecticut Clean Energy Finance and Investment Authority (CEFIA) and the Department of Energy and Environmental Protection (DEEP) to promote, develop and invest in clean energy and energy efficiency projects.

Effective July 1, 2011, the Connecticut Clean Energy Fund became part of the newly created Clean Energy Finance and Investment Authority (CEFIA). CEFIA’s mission is to promote, develop and invest in clean energy and energy efficiency projects in order to strengthen Connecticut’s economy, protect community health, improve the environment, and promote a secure energy supply for the state. As the nation’s first full-scale clean energy finance authority, CEFIA will leverage public and private funds to drive investment and scale-up clean energy deployment in Connecticut.

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KPMG Refuses to Publish Controversial Green Energy Report

2012-02-08T01:14:00.000-08:00

KPMG is refusing to publish the full findings of a controversial study examining the cost of the government's green energy policies, which was originally used as a basis for a series of media reports attacking the cost of renewable energy.  The preliminary findings of the report, dubbed "Thinking about the Affordable," were made public last November.
They claimed Britain could meet its 2020 carbon reduction targets more cost effectively by building nuclear and gas-fired power stations instead of wind farms.

The report was seized on by critics of the government's green agenda and also formed the basis of a number of media reports, including a BBC Panorama special that attacked the cost of renewable energy subsidies.

The preliminary findings of the report suggested the UK could save more than $50bn by ditching plans for a massive expansion in wind power capacity and instead focusing on nuclear and gas capacity.

It was the first of a series of studies that have been published during the last few months, claiming wind power is too unreliable and costly to provide an effective means of keeping the lights on while reducing carbon emissions.

Trade body RenewableUK slammed the KPMG study as inaccurate on the grounds it had failed to consider the full lifetime and operating costs of new conventional power plants. Green campaigners have also repeatedly called upon KPMG to publish the full version of the report and disclose its methodology.

But Sorrelle Cooper, a spokeswoman for KPMG, told BusinessGreen that the company had decided not to release the full report as researchers had deemed it was "ripe for misinterpretation".

Cooper acknowledged that a leaked press release, obtained by the Sunday Times, BBC's Panorama and BusinessGreen, had opened the study up to accusations of bias, which had also been a factor in the team's decision not to publish. Cooper also admitted there had been mishandling of the release of the report, maintaining that the draft press release had been leaked, although she refused to provide further details on how it had been made public. She also maintained that KPMG had close ties with the green energy industry, was not "anti-wind" and had last week been involved in a major wind farm deal.

But a spokesman from RenewableUK said that while it had met with KPMG since the preliminary findings were published, it stood by its original concerns over the report's methodology. "We welcome the decision by KPMG not to release this report. The methodology they used did not properly compare with how power generation systems function in the real world," he said.

"KPMG needs to be made more aware of the benefits of wind energy. The cost is just $15 per household per year, according to the independent regulator Ofgem. Gas hit a three-year high of $1.20 per therm in Britain on February 3 as a result of the cold snap across Europe. We have to get off the fossil fuel hook to stop our energy bills escalating."

KPMG's reluctance to release the report will be seized on by green and renewable energy campaigners who have in recent months been forced to defend renewable energy policies from a series of reports about the cost of green energy, which they regard as misleading and inaccurate.

Renewable energy industry insiders expressed disappointment that KPMG was unwilling to release the controversial research, despite the fact that the preliminary findings had already been used to shape the current debate on energy policies. Critics are also likely to ask questions over the BBC's willingness to use an incomplete report as the basis for one of its flagship current affairs programmes.

The news will also provide a boost to incoming energy and climate change secretary Ed Davey, who has already been forced to defend the government's wind energy policies from a group of around 100 Conservative MPs who last week wrote to David Cameron complaining that support for wind farms is proving too costly.

The news comes just days ahead of the broadcast of an ITN Tonight programme on the cost of green policies, due to air on Thursday 9 February, which has sparked fears among green groups that flagship renewable energy policies will again come under attack

Keith Allott, head of climate change, WWF-UK, said KPMG's decision provided further evidence that the cost of renewables was becoming an increasingly emotive issue. "The whole issue of energy bills and renewable energy has been whipped up into a media storm over recent months, with scant regard to the real evidence base," he said.

"The Daily Mail has run three corrections to lead articles which tried, erroneously, to blame green policies for the increase in consumer bills. KPMG's report led to a Sunday Times article and informed a very skewed BBC documentary on renewables, but now it seems that it may never see the light of day. We urgently need to inject some integrity and honesty back into this debate."

In related news, the BBC posted a clarification notice on its website last week about the controversial Panorama programme.

"While the film focussed on government energy policy going forward - and the associated costs - we feel it worth repeating that the rise in current energy bills is predominantly linked to the increase in winter gas prices," said the BBC in a statement. It added that it would have been "helpful" if this point had been made more clear to the audience.

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Arizona Democrats push renewable energy bill

2012-02-08T00:00:00.000-08:00

Give money to schools to install solar panels on their roofs. Eliminate extra paperwork for homeowners seeking to install panels on their roofs. Endorse a plan that encourages utilities to invest in the state’s renewable energy industry. These are just a few proposals from House Democrats who have either designed or revived initiatives this session to promote renewable energy, despite anticipated opposition from Republicans.

Chad Campbell, D–Phoenix, the House minority leader, introduced this session’s most sweeping renewable energy bill, HB 2298, which would allow cities and counties to create renewable energy improvement districts.

Improvement districts are currently formed for the construction or operation of traditional projects such as roads or waterworks. These districts may levy taxes or issue bonds for their improvements.

“This is a way to allow people who might not be able to get access to the capital you need for solar installations to do that with very low risk. It’s job creation. It’s raising property values,” Campbell said. “Not pushing renewable energy development or investment is very shortsighted and makes no economic sense.”

Under his bill, renewable energy improvement districts would be formed if all real property owners within the proposed area sign a petition and submit it to the municipality for consideration.

The improvements could be on public or private real estate or buildings, and the government wouldn’t be able to require anyone to participate.

Campbell pulled the bill from the House Energy and Natural Resources Committee agenda on Jan. 23 after learning about opposition from the Arizona Bankers Association.

Stacey Langford, the group’s vice president, raised concerns about mortgage holders. She said improvement districts would change the status of home liens, or legal claims or holds on property.

Campbell said he doesn’t consider that concern valid.

“You’re increasing the value of the property and the value of the area, but the banks only care about the bottom line,” he said.

Campbell said he plans to work to address the group’s concerns and revive the bill, which first garnered support when it was introduced in 2009 by Rep. Lucy Mason, R–Prescott.

Bret Fanshaw, an advocate for Environment Arizona, said that to get renewable energy bills taken seriously, Democratic legislators often need Republican allies to put their names on them.

“In the same breath, Republicans will say, ‘We can’t subsidize renewable energy, but we need to find ways to get loans for nuclear energy,’” Fanshaw said. “Democrats are up against this idea from the conservative side that they should let the markets decide.”

Other renewable energy bills have yet to be assigned to committees or have yet to be scheduled for committee hearings.

Rep. Daniel Patterson, D–Tucson, introduced a resolution, HCR 2002, to support the Arizona Corporation Commission’s efforts to adopt a statewide feed-in tariff to boost solar energy production.

Proponents say feed–in tariffs encourage utility companies to support the renewable energy industry by offering long–term contracts to renewable energy developers.

The resolution suggests that the tariff be adopted through a pilot program targeting schools, nonprofits and government institutions. It notes that those institutions have held off adopting solar energy because they aren’t eligible for the federal renewable energy tax credit.

“This is an area where we need to be more competitive,” Patterson said. “It’s something that people in Arizona understand more than most politicians.”

A bill introduced by Rep. Ruben Gallego, D-Phoenix, is intended to speed up the process of creating municipal renewable energy incentive districts.

Currently, county boards of supervisors can designate these incentive districts, or areas where the board must adopt a plan to encourage the construction and operation of renewable energy equipment.

Under HB 2243, the Arizona Commerce Authority would grant money to municipalities through its Arizona Competes Fund to help defray the administrative costs of issuing solar permits. The municipalities would have to guarantee that solar permits would be issued within six weeks of receiving an application.

“Cities don’t have the capabilities to set up the administrative side to get these districts built fast,” Gallego said.

Farley’s bill would create a state solar grants program fund for schools to install solar panels. The money would be continuously appropriated from Arizona Commerce Authority and be administered by the Department of Education.

“The bill sends a message to every solar energy company in the world that we are serious about renewable energy,” he said. “I would hope that my Republican colleagues, with their professed emphasis on jobs, would support this.”

The bills:

• HB 2298

Author: Rep. Chad Campbell, D-Phoenix.

Provision: Would allow local governments to create renewable energy improvement districts.

• HCR 2002

Author: Rep. Daniel Patterson, D-Tucson.

Provision: Would express the Legislature’s suppoet for feed-in tariff program by the Arizona Corporation Commission.

• HB 2258

Author: Rep. Steve Farley, D-Tucson.

Provision: Would create a solar school grant program.

• HB 2243

Author: Rep. Ruben Gallego, D-Phoenix.

Provision: Would provide state money to defray administrative costs of issuing solar permits for cities and towns in renewable energy improvement districts.

• HB 2085

Author: Rep. Eddie Ableser, D-Tempe.

Provision: Would establish renewable energy and energy efficiency requirements for state buildings and owners of space leased to state operations.

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Alaska Legislators mull $500 million renewable energy fund extension

2012-02-06T00:00:00.000-08:00

Since its inception in 2009, Alaska's Renewable Energy Fund has funneled tens of millions of dollars to renewable energy projects across Alaska. To date, 21 projects have been completed and, with the projects in the pipeline, it is estimated that projects funded by the program could save Alaskans 11.6 million gallons of fuel per year in 2016.

Sponsored by Reps. Thomas, Peggy Wilson, and Millett with Austerman, Edgmon, Herron, Miller and Peterson, House Bill 250 seeks to extend the fund, at $50 million annually, under the management of the Alaska Energy Authority to 2023. The fund is currently set to fold in 2013. Passing the bill this year would allow AEA to continue to manage the fund and renewable energy developers could count on funds to continue to flow uninterrupted.

To identify ways to increase efficiencies in the process used in the program, the Energy Authority has commissioned an independent evaluation by Vermont Energy Investment Company. Selected via a competitive process, Vermont is assisted by the Alaska Center for Energy and Power to provide information and recommendations.

AEA Executive Director Sara Fisher-Goad said current funding of the administration and management of the fund was adequate going forward.

Fisher-Goad said successful renewable energy infrastructure in Alaska requires planning and diverse technologies.

"No silver bullet is going to solve the rural energy problems," she said.

By 2013 the program will be displacing 3.5 million gallons annually with a total savings for the program of around $6 million, said Alternative Energy and Energy Efficiency Deputy Director Peter Crimp said while testifying to the committee Tuesday.

"Substantial saving to be sure," Crimp said.

Public testimony was overwhelmingly in favor of passing the renewable energy fund extension. Supportive call-in testimony came from Chris Rose, executive director of the Renewable Energy Alaska Project, Gene Therriault, vice president of resource development of the Golden Valley Electric Association, Clay Koplin, chief executive officer for Cordova Electric, Walter Rose, energy specialist at Kawerak Inc., Yukon River Inter-tribal Watershed Council Project Manager David Messier and Lisa Herbert, executive director of the Fairbanks Chamber of Commerce.

Cordova Electric's Koplin said his town is now on 80 percent hydroelectric this year thanks in part to funds from the REF. Upgrades to an existing power plant reduced rates by 13 percent, Koplin said.

Koplin said extending the renewable energy fund would give other communities a chance to benefit like Cordova.

“We really have a future,” Koplin said. "And we want to extend the program so other communities can get the funds to build their futures.”

REAP's Chris Rose said extending the fund would give energy companies the assurance they need to plan well into the future.

Twenty-one projects are up and running, but the Energy Authority's selection rate for funding is fairly low. About two-thirds of the applications submitted to AEA are recommended against.

Deputy Director Crimp said 80 percent of the rejections were due to projects that were not ready to move ahead in the time frame of the original fund program.

"We were cognizant of public’s desire to make the money work in the shortest time frame,” Crimp said.

Committee substitute for House Bill 250 Version D was moved without objection. The bill, introduced on Jan. 6, is next scheduled to be heard in House Finance Committee. The Committee has yet to schedule a hearing.

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Renewable Energy Development Authority soon in Bangladesh

2012-02-05T00:00:00.000-08:00

A bill on formation of a new authority for the promotion of renewable energy across the country may be placed in the current session of parliament, Power Ministry sources said, reports UNB. According to the sources, the Cabinet in its meeting on December 19 last approved in principle a draft law titled 'Renewable Energy Development Authority (SREDA) Act 2011'.

As per the government plan, the proposed SREDA will be a core central organisation to promote, develop and monitor the renewable energy activities in the country. At present, different organizations, including Power Development Board (PDB), Rural Electrification Board (REB), Local Government Engineering Department and other government agencies, private sector and NGOs are working on promotion of renewable energy in Bangladesh. But, there is no central authority to monitor or coordinate their activities.

The use of renewable energy is growing fast worldwide. But in Bangladesh, its progress is very slow. So far, Bangladesh has been to generate 70 MW renewable energy while India 20,000 MW.

The government planned to add 500 MW of renewable energy to the country's power generation within the next two years. But non-existence of a core authority, the activities in this sector is not getting momentum.

"We hope, SREDA will play a role to successfully coordinate and monitor the renewable energy activities," said a senior official at the Power Division of Power and Energy Ministry.

After Cabinet's initial approval, the Power Division last month sent the draft law to the Law Ministry for its final vetting."Now the draft is at the law ministry and officials there are working on it. We're in close contact with the Law Ministry for any clarification," said Tapos Kumar Roy, Additional Secretary to the Power Division. He said the Power Division is hopeful of getting back the draft with the ministry's vetting within the next 10 days.

After receiving the law ministry's clearance, the Power Division will again place it before the Cabinet for the final approval, officials said.

"As soon as we receive the Cabinet's final nod, we'll move to parliament to place it as a bill in the current session," said

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Washington: Clallam Public Utility District gives nod on renewable-energy bills

2012-02-04T14:03:00.001-08:00

The Clallam County Public Utility District has echoed an earlier signal that power providers shouldn’t have to buy expensive renewable energy their customers don’t need.

Commissioners this week adopted a resolution supporting state House Bill 2682 and Senate Bill 6418, which allow utilities to delay purchasing renewable energy before they need more supply.

The companion bills have the same summary language as House Bill 2124 and Senate Bill 5964, which the PUD endorsed in a resolution last August.

The PUD has an interest in the legislation because of requirements in the Washington Energy Independence Act, which 52 percent of voters approved in 2006 as Initiative 937.

The state law requires utilities such as the Clallam County PUD with more than 25,000 customers to get incrementally more of their electricity from renewable sources. This year’s 3 percent target increases to 9 percent in 2016 and to 15 percent by 2020.

Hydropower, which supplies the PUD and most of the Pacific Northwest, is not considered renewable under I-937.

“After spending much of December talking to our customers about rate pressures, the common question from customers was ‘what are we doing to change the mandates,’” said Doug Nass, PUD general manager.

“The No. 1 thing we want to change in the current law is the requirement that we buy before need — that is, we should not be mandated to replace low-cost, clean hydropower with more expensive renewable energy, which would then result in unnecessary higher rates for our customers.”

The PUD gets its electricity from the Bonneville Power Administration and its hydroelectric dams on the Columbia and Snake rivers.

“Clallam PUD is also experiencing minimal load growth, and our projections suggest no real change in this,” Nass said.

“So, under the current law, if we experience minimal load growth, as we are in this economy, we are then required to replace that very affordable clean power with power that is three to four times more costly — even if we don’t need the power.”

In adopting the resolution, the commissioners emphasized the need for local control, PUD spokesman Michael Howe said.

The resolution states that the “Energy Independence Act interferes with the ability of local, elected utility commissioners to govern the utility in the best interests of its customers.”

House Bill 2682 was introduced by Rep. Terry Nealey, R-Dayton. It was referred to the House Environment Committee on Jan. 24.

Senate Bill 6418, introduced by Sen. Brian Hatfield, D-Raymond, was referred to the Senate Energy, Natural Resources and Marine Waters Committee on Jan. 23.

“The legislation supported by this resolution does not change the intent of the original initiative,” Nass said. “It simply allows for greater local control and adapts to the current economic climate where load growth is very slow and our customers struggle to make ends meet.

“It really doesn’t make much sense to purchase power that is three to four times more expensive than the clean, renewable hydropower we have now if we don’t need it.”

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Life After the 1603 Grant: The Road Ahead

2012-02-02T00:41:00.000-08:00

In 2009, the federal government passed ARRA, and the 1603 Investment Tax Credit (ITC) cash grant program with it. The program effectively transformed what was traditionally an investment tax credit into a cash grant, awarded by the treasury, within 60 days of commercial operation. It was perhaps the single most important piece of legislation for solar in recent history that spurred huge growth in the sector, recently estimated to be 69 percent year over year. In January 2012, the 1603 ITC cash grant expired as did the ability for developers and investors to secure the cash grant in lieu of a tax credit.

So what’s next? Well, let’s take a look.

Part I: Looking Back

Under the Emergency Economic Stabilization Act of 2008, a 30 percent tax investment credit for qualifying renewable energy projects was extended through 2016, allowing owners of solar projects to offset 30 percent of a solar system’s cost through tax credits. So long as a system owner had enough tax liability over the course of five years, he or she would be able to deduct 30 percent of the system’s gross cost from their federal taxes.

Because most solar project companies or developers working on commercial and utility-size PV projects do not generate enough taxable profit on their balance sheets to utilize the 30 percent tax investment credit (ITC), they had to seek a financial intermediary with the necessary tax liability to buy a stake in the project company and monetize these tax credits, what is commonly referred to as “tax equity investors.” Tax equity investors are companies with large balance sheets, traditionally banks and more recently larger corporations, which purchase tax credits to shelter otherwise taxable income, while also providing an essential financing tool for large renewable projects.

In 2007, the Solar Energy Industries Association (SEIA) estimated there were up to 28 tax equity investors, primarily financial institutions led Morgan Stanley, JP Morgan and others. However, the collapse of Lehman Brothers and the financial crisis of 2008 effectively ended most of these companies participation in the tax equity market for renewables. Several companies, such as AIG and Prudential, departed the tax equity market entirely because of bankruptcy or uncertainty about whether they would have sufficient taxable income.

II. The 1603 Program

In response, President Obama approved the Section 1603 Cash Grant Program (as part of the American Recovery and Reinvestment Act of 2009), to effectively stabilize renewable energy market by providing $1.9 billion in cash grants in lieu of tax credits. Under the 1603 Program, owners of a renewable energy system could simply apply for a cash grant to cover 30 percent of the system’s cost, regardless of their tax liability.

The 1603 Program catalyzed the solar market, with approximately 80 percent of solar projects opting for the cash grant, driving growth of 104 percent between 2009 and 2010 in the United States. As of mid-August 2011, 87 percent (2,095) of the 2,410 cash grants awarded under the 1603 program were provided to solar energy projects (although only 27 percent of the nominal value if these grants). Since October of 2010, the federal government has invested over a billion dollars in solar projects through the 1603 Grant Program.

Unfortunately for the solar industry, the Section 1603 Program expired at the end of 2011, and it appears highly unlikely that it will ever be renewed. With the expiration, interested parties without the necessary tax liability will again have to rely on tax equity investors to fully monetize the ITC. The problem is twofold: (i) the tax equity market has not yet fully recovered and there are only an estimated 10 to 15 investors looking for tax equity deals and (ii) integrating tax equity into deal structures will significantly increase transaction costs, raise the costs of development, and potentially limit smaller deal sizes.

The result will be a bottleneck in 2012-13, where a substantial number of solar developers and other interested parties look to construct or own commercial-sized solar system, but only a select few can secure the requisite tax equity financing. This will mean a number of projects will not be developed, and those projects that do secure tax equity will see increased yields. Some projects are likely to seek safe harbor under the 1603 Program by securing five percent of the total costs of the system, but this strategy brings with it its own challenges.

So now, as we look towards the horizon, what’s next? What will happen to this 80 percent of the industry opting for the cash grant? Companies like Sungevity, Sanyo and Vivent are quickly lining up tax equity for the upcoming year, and some believe market growth will slow by up to 50 percent in the second half of 2012. Might these challenges be mitigated by solar modules priced below $1.10/watt? What creative solutions will our industry implement to meet these financing challenges?

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