Showing posts with label energy. Show all posts
Showing posts with label energy. Show all posts

Wednesday, November 2, 2011

Committee takes comment on Idaho's Energy Plan

On Wednesday, consumer associations, conservation organizations and private individuals gathered to offer testimony to the legislative interim committee on Energy, Environment and Technology on the draft 2012 energy plan.


The Reality of Renewable Energy Credits
Annie Black, a Boise resident and former Idaho Power employee and regulatory consultant offered testimony on  renewable energy credits (RECs) and advocate for transparency with rate payers


Black is concerned that Idaho's energy conversation should be about where our energy is coming from.  She refers specifically to what she says is a difference in the generation of fuel mix and the power delivered to Idaho Power customers.  When local rate payers believe that the energy they consume is renewable energy, they don't realize the credits for those renewables have been sold to other states that have renewable energy portfolios.


The question, Black admits, is largely academic, but with one of the tenants of the plan being energy awareness on behalf of consumers, it's an important point.

"​Geothermal and wind energy aren't making it to my electrical outlet because Idaho Power is required to sell renewables. ... stripping RECs from renewables by selling them to other states fundamentally changes how we consider the environmental benefits.  ​If you think you are getting geothermal or wind energy as a part of your fuel mix, you're not alone," Black says.  "RECs have muddied up the waters.  We need to differentiate between generational fuel mix and delivery fuel mix."

​Representative Wendy Jaquet tried to clarify: "You're saying that if I really want to promote green energy in my state, I should be wanting to know where those RECs are going and generate a dialogue about where my energy is coming from?"


Black concurred, "what I'm saying is let's be all on the same page. I'm advocating that if we are selling our renewable energy in the state, we should be aware of it."

Representative Reed DeMordaunt wondered about the renewable energy market in Idaho.
"Isn't this about getting about getting more people to check the REC box on their power bills?"  


Black noted that in her tenure at Idaho Power, the utility came forward to the PUC and asked for the opportunity to offer a component of renewables in their deliverable energy.  The PUC decided against this, Black says, specifically saying "we don't have a REC market in Idaho."


Advocating for Seniors
Lynn Young of AARP Idaho says her organization wants to ensure consumers have access to affordable energy.  While she says  the plan cites affordability it fails to address it in a substantial manner.  She says older americans devote a higher percentage f their income on home heating.  about 1 in every 4 of low income seniors spend 15% or more of their income in home energy.  


"Some of our seniors have to make regular decisions between paying their utilities or prescriptions, and end up exposing themselves to chronic health conditions and premature death due to exposure to heat and cold."

Young recommended appointing a consumer advocate.  Senator Elliot Werk wondered if the Public Utilities Commission considers their staff to be advocates for the consumers. 


"The PUC does the work they've been given to do," Young said, "but we don't believe they carry a role to be an advocate for the consumer. We feel a need to have the same representation that other groups have."

She noted Idaho is one of eight states nationwide and the only one in the west that doesn't have a consumer advocacy office. 


Ben Otto of the Idaho Conservation League served on the energy conservation task force of the ISEA.  He, too, advocates for the idea of a specific consumer advocate.  In his job, he says he frequently intervenes to represent residential customers to advocate on efficiency and conservation.  The system for reimbursing intervenors is cumbersome and drawn out, leaving individuals at a disadvantage compared to large corporations and other organizations that have specialists and lawyers at their disposal.


Conservation Groups Weigh In, Question Public Process
From the standpoint of the Idaho Conservation League, Otto highlighted specific areas of priority for the legislature to put real policies into place: tax incentives, regulatory policy and energy efficiency.


"The potential for efficiency is vast, the price is right, it addresses critical issues such as energy independence for Idaho," he said.

Lisa Young, of the Snake River Alliance noted that her organization objected to the informal nature of the revisions made to the first draft of the Idaho Energy Plan at an early October meeting.

Public Utilities Commissioner Paul Kjellander noted that, despite the lack of a public record of comments made at the meeting, in his opinion nothing underhanded had taken place.  


"We may not have seen minutes only because there hasn't been a subsequent meeting of the board.

Regarding the plan itself, the nuclear watchdog agency pointed out several specific points of interest:
- The treatment of energy efficiency in the latest draft of the plan, wherein language describing energy efficiency as of the  "highest priority" was downgraded to "high priority" where "cost effective."
- The removal of language on incentives for renewables 
- The removal of policy recommendation that would encourage customer owned combined heat/power source development
- Language specific to monitoring and exploring all advanced energy technology

Transportation Group: Don't Forget Community Planning
Heather Wheeler, director of the Community Transportation Association of Idaho (CTAI) outlined energy efficiencies and fuel conservation measures that should be incorporated into the plan:


Petroleum and transportation - restore natural gas purchase of high efficiency and alternative fuel vehicles to the plan.


Incentives - restore language that encourages alternative fuel and conservation of fuels to drive the market toward meeting energy efficiency goals.


Don't delete language about local transit tax options  - which will greatly decrease fuel consumption.


Don't delete recommendations that focus on conservation through community and transit planning.  Idaho should encourage land use planning that reduces vehicle miles traveled.



Interim Committee reviews recommendations, extends comment period
The committee took these and more than 80 other comments logged online into consideration the following morning as they went through each recommendation of the draft 2012 plan.   The committee will continue the discussion at their November 21st and 22nd, and has extended the public comment period through to November 18.


Among several areas of particular concern during the meeting was language regarding transmission.  Senator Werk described transmission's role in the Draft Energy Plan as akin to the act of capturing a bridge in a battle - a small act, but critical to accomplishing broader objectives.


"it's interesting to look at the proposed language, which is limited to what the utilities should be doing ... where it should be focused on broader policy implications," he said.


Also discussed was language concerning the priority level of efficiency and conservation, incorporating renewables where cost effective, and keeping language as broad as possible to allow for incorporation of new technologies, recognizing the role they play in a robust energy portfolio with conventional resources.


The subject of local option taxes for transportation projects was discussed as well, with policy makers noting that this subject is likely to come up in the upcoming session.


A local option tax bill failed to pass the House in 2009.  Although supported by many legislators, the bill's provision that such option taxes require a two-thirds vote rather than a simple majority was something several potential supporters of the bill sited as their reason for voting against it.


Comments on the 2012 Draft Energy Plan can be emailed to Mike Nugent of the Legislative Services Office at mnugent@lso.idaho.gov by 5 pm, November 18.

Friday, February 11, 2011

House committee hosts energy efficiency symposium

Representative Wendy Jaquet organized an energy conservation symposium to present to the House Environment, Energy, and Technology Committee this week, with speakers presenting on energy conservation efforts.

Rocky Mountain Power, which supplies power to customers in Utah, Wyoming and Idaho focuses on energy efficiency and peak reduction programs, including significant outreach to residential customers. In 2010, reductions in peak demand equaled the equivalent of power from a 160 mWh wind farm. For every dollar invested in energy efficiency, Rocky Mountain Power officials estimate their customers save between $2.50 and $2.70 over time.

Idaho Power is also focusing on residential customers through energy efficiency programs. Residential customers represent about 37% of their customer base, and about 83% of the total annual mW consumption.

John J. Williams of BPA noted that cost of conservation has decreased over the years. The highest source of power in the northwest is hydro, the second is coal and the third, he said, is conservation. Conservation efforts to date have resulted in enough electricity to serve all of Idaho and Montana in 2009.

Bruce Fulsom with Avista noted his company seeks to offer very specific and deep programs that are meaningful to customers but also broad so that they are accessible to various customers. Conservation is the least expensive new resource, which is why they’ve focused efforts to help customers use less of their product through rebates, energy audits and communication.

McKinstry is a company that has been involved in design/build projects for the past 50 years. For the past 10 years, they have been involved in energy efficiency projects. Last year they participated in $20 million worth of energy retrofitting projects in Idaho, employing more than 300 local subcontractors. Their projects also represent savings figures in terms of reductions in operating costs for their customers, and annual reductions in carbon emissions.

Paul Kjellander of the Idaho Office of Energy Resources updated the committee on stimulus funding projects, including energy efficiency audits in schools. The dollars saved, he says, are on behalf of the tax payer. In addition, he says, 15,000 Idahoans took part in the appliance rebate program that will conclude next month. The total savings was about $1.4 million. More information about stimulus funding programs is available online at www.energy.idaho.gov.

Tuesday, September 8, 2009

Legislative Energy, Environment and Technology Interim Committee Updates

The Joint Energy, Environment and Technology Interim Committee met early this month for updates on transmission projects, a proposal for the establishment of Energy Independence Districts, how projects utilizing woody biomass are progressing (or aren’t), and how the Governor’s Office of Energy Resources is poised to utilize stimulus funding.

Transmission Project Siting
Ron Williams from LS Power updated the Committee on the progress of two transmission projects that will form a regional transmission hub through southern Idaho and that together represent more than 1,000 miles of transmission: The Southwest Intertie Project (SWIP) and the Overland Intertie Project (OIP). The SWIP will be the most advanced high voltage project in the west. Construction on this $1 billion capital investment project is slated to begin next year. It will provide a connection to areas southwest of Idaho where renewable energy generation is available. The OIP represents east/west transmission to and from points in eastern Wyoming.

LS Power is still engaged in siting both of these projects and is including public input in an alternate routing study currently underway. The preferred route is through the site established through right of way established through the Gateway West Transmission Plan.

Energy Independence Districts
Reporting on behalf of the Idaho Department of Commerce, Lane Packwood described a legislative initiative the department is developing for residences and small businesses to finance renewable energy projects. Their intention is to remove financial barriers to consumers – who want to retrofit their properties – by developing a framework for property secured municipal financing. Packwood noted that 12 other states have established laws allowing municipalities to establish local improvement districts. Such districts would be opt-in rather than geographically defined, and would allow for a tax assessment on the property to finance improvements at a much lower interest rate and longer term than traditional financing.

Senator Kate Kelly noted that her biggest concern is the constitutionality of the proposed legislation, although Packwood asserted that at least 4 other states had similar concerns regarding constitutionality and found ways to address them.

Senator Kelly remained skeptical. “What we have seen, time after time, is the legislature doing something creative with the constitution,” she said, “and seeing it challenged in court.”

Woody Biomass
If you have been tracking the developments of this committee for a while, you may be wondering about whether anything has developed with the utilization of woody biomass as a renewable resource. Examples of woody biomass projects in Council and Kellogg have been touted as successful: heating schools and other public buildings at a fraction of the cost and emissions of coal or fuel oil.

Experts note, when looking at all other sources of renewable energy combined, biomass is the only renewable energy source that can close the gap in the 25’x25’ initiative: a nonpartisan public policy initiative to get 25 percent of our energy from renewable resources like wind, solar and biofuels by the year 2025. Idaho is participating in the initiative as a part of the 2007 state Energy Plan.

Several members of the committee have expressed concern for the lack of development in this area. Who is coordinating efforts? Among the issues to be resolved is access to biomass material – which can be expensive to gather, bundle and haul. Jim Reilly of the Intermountain Forest Association noted that a lack of technology is not the impediment to this sector, and that there are small forests that could supply the market, plus substantial fiber available on federal lands. The problem is the gridlock that keeps those lands from contributing to this market. The best opportunities in the biomass industry come from improving the efficiencies in moving biomass from the forest to the power plant.

Representative Eric Anderson voiced extreme frustration with the red tape associated with accessing biomass material on federal lands.

“You should be paying people to take dead and dying material out of the forest, not charging them a permit fee,” he said to US Forest Service’s Andy Brunelle.

The committee elected to draft a letter to the Governor’s Office of Energy Resources, strongly encouraging it to take a lead on the woody biomass issue. They also voted to send a letter strongly encouraging the Idaho Department of Lands to grant stewardship grants for access to fuel sources for periods of ten years or more.

Stimulus Money to Fund Energy Audits for Schools
The committee heard from the Governor’s Office of Energy Resources about their plans to utilize $30 million in stimulus funding to conduct energy audits on each of the 700 schools in Idaho. The state has until 2015 to conduct the audits and make the repairs. The OER has recruited Maria Barratt from the Department of Financial Management to oversee the management of the stimulus funding. Thus far, the OER has contracted with licensed engineers from across the state to conduct the audits.

Is It a Resolution or isn’t it?
Senator Elliot Werk submitted draft copy for a concurrent resolution that would clarify responsibilities outlined in the 2007 Energy Plan and ask for a detailed report from the Office of Energy Resources every two years.

The 2007 Energy Plan was established before the OER, which has the responsibility for energy planning, policy and coordination in the state of Idaho and should, says Senator Werk, be held accountable for addressing the plan and how they’re spending stimulus funds.

Some discussion was held as to whether a concurrent resolution was the proper vehicle for this message, or if a letter outlining expectations would be more appropriate. Senator Patty Anne Lodge wondered if the committee should be asking the agencies to add to their already considerable workload.

Representative Wendy Jaquet pointed out that this committee has fallen short of its duties by not outlining specific accountabilities to the Public Utilities Commission as aligned with the Energy Plan.

Co-chair George Eskridge noted that Idaho could expect to receive federal mandates. “We’re in a far more serious position than we were two years ago,” he said. “All we’re asking for is a report.” The committee will invite the PUC to present at the next meeting on their alignment to the Energy Plan and on efforts to establish shareholder incentives to meet efficiency targets.

Who should pay for new growth?
House Bill 52 was introduced last year, which would allow the PUC to assign some of the costs of utility development to new growth. Upon its introduction, it was met with opposition from realtors and contractors who had no input in its development. Representative Bert Stevenson noted that they’re planning to reintroduce the bill, inviting opponents to submit their input. The Supreme Court has ruled that new growth can’t be responsible for paying all of the costs for new utilities. Legislation going forward needs to address how the partial costs of construction could be allocated to new growth.

Codification of the Office of Energy Resources
The Office of Energy Resources is currently a creature of the Governor’s executive order which has approximately the force of law but not quite, according to Senator Kelly. If the office is codified, it would be continued from one administration to another. Senator Kelly has met with Director Kjellander and David Hensley of the governor’s office and got a lot of input from them. Senator Kelly asked for input from the committee on her draft proposal to codify the Office of Energy Resources.

Renewable & Energy Conservation Tax Credit
John Watts made a presentation on a piece of legislation for one of his clients: Renewable & Energy Conservation Tax Credit. It has been through three drafts so far.

Thirty-nine other states have a renewable energy tax credit.

It’s a proposed 35% investment tax credit on facilities located in Idaho for con-generation facilities. Some with no taxable income could pass the credit along to someone else who can use the tax credit. This is not to exceed $20 million on overall project cost.

The program would reside within the Office of Energy Resources and be financed by taking 5% for administration. Investors could re- capture 7% per year.

Other Stimulus Projects
Ken Eckland for Office of Energy Resources outlined the projects that are being funded with stimulus funds:
- Energy tune-ups for energy efficiency: $17 million

- Pilot project on solar roofs for five schools. $2,750,000. A consultant will audit to make sure the most competitive projects are funded.

- Renewable Energy Enterprise Zones Project forming private-public partnerships for renewable energy projects: $1,500,000

- Micron Technology LED conversion to produce LED lighting at its existing Boise facility. The research and development is on track to convert the lines that have been shut down to produce light emitting diodes. DOE approached Micron for a proposal: $5 million.

- Competitive block grant for smaller cities and counties: $5.5 million. OER is encouraging cities and counties to team up for projects.

- Methane gas project: $1.15 million.

- Building code upgrades: $500,000.

- Biomass: $500,000.

- PV Solar: $300,000.

The next meeting of the Energy, Environment and Technology Interim Committee has been scheduled for October 21st and 22nd.

Friday, May 1, 2009

Renewable Energy Enterprize Zones: a concept for another time?

H122: Renewable Energy Enterprise Zones: A concept ahead of its time, it is still in committee
This legislation will stimulate economic growth by creating Renewable Energy Enterprise Zones (REEZ). A REEZ is a limited geographic region in which specific renewable energy resources are promoted for development. This legislation identifies appropriate incentives and tax benefits designed to stimulate development of resources and distribution systems necessary to bring the energy to market. A REEZ would only be created in areas where local officials and private investors are willing to offer financial, technical, and physical infrastructure support.

Monday, March 9, 2009

25x25 and energy - ICIE's Saturday Summary 3/7/09

J. Read Smith, a farmer from St. John, Washington and Co-chairman of 25X’25 explained to the House Agricultural Affairs Committee recently what that organization hopes to accomplish. The organization’s goal is for America's farms, forests and ranches to provide 25 percent of the total energy consumed in the United States by 2025, while continuing to produce safe, abundant, and affordable food, feed and fiber.

Presently, six to seven percent of our power comes from renewables. About half of that amount is from hydropower. The other half is from biomass and other renewables. Increasing our energy from renewables could result in $700 billion in economic development and 5 million new jobs in rural America.

Smith pointed out that we need all the energy we can get. He discussed the option of community wind development that could be a smaller, decentralized compliment to larger projects.

For more information, check out the website at http://www.25x25.org/