Transcript Carol Werner - Metropolitan Washington Council of Governments

Renewable Energy Policy
and Markets
Metropolitan Washington Council
of Governments
June 22, 2005
Carol Werner, Executive Director
Environmental & Energy Study Institute
122 C St. NW, Suite 630
Washington, DC 20001
Phone: (202) 662-1881 Fax: (202) 628-1825
www.eesi.org
Environmental & Energy
Study Institute (EESI)
Seeking Innovative Environmental and Energy Solutions
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Dedicated to promoting sustainable societies
through innovative policies on energy,
climate, transportation, agriculture, and
smart growth
Founded in 1984, by a bipartisan
Congressional Caucus
Provides timely information regarding
science, policy, and technologies
Organizes ~20 Congressional briefings a year
Builds coalitions and networks
Publishes 3 electronic newsletters
EESI Associates Program allows companies
and individuals to participate
Changing Policy Landscape – Local
and State Actions
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Nineteen states have Renewable Portfolio Standards (RPS)
Texas considering strengthening its RPS, California considering
accelerating its RPS timetable
Fifteen states have Public Benefit Funds (PBF) for renewable energy
165 Mayors calling for action on climate change, Climate Protection
Agreement endorsed by US Conference of Mayors .
West Coast Governors’ (WCG) Global Warming Initiative sets goal for
west coast states to become “global leaders in the development of
renewable energy and energy efficient technologies”
Western Governors’ Association (WGA) – 18 states joined by tribal
groups, Mexican border states, and Canadian provinces – goal to
develop 30,000 MW of clean energy by 2015 and a 20 percent
improvement in energy efficiency by 2020.
Northeast Regional Greenhouse Gas Initiative (RGGI) program design
underway – nine states
New England governors and Eastern Canadian Premiers Climate Change
Action Plan began August 2001 – six states and six provinces
Renewable Portfolio Standards
in 19 States
May 2005
ME: 30% by 2000
MN: 1,125 MW wind by 2010
NY: 24% by 2013
MA: 4% by 2009 +
1% annual increase
WI: 2.2% by 2011
IA: 105 MW
CA: 20% by 2017
RI: 15% by 2020
CT: 10% by 2010
*NJ : 6.5% by 2008
*NV: 15% by 2013
*CO: 10% by 2015
*PA: 18%¹ by 2020
*MD: 7.5% by 2019
*DC: 11% by 2022
*AZ: 1.1% by 2007
*NM: 10% by 2011
HI: 20% by 2020
State RPS
Non-punitive goal
TX: 2,880 MW by 2009
*Minimum requirement and/or increased credit for solar
¹ PA: 8% Tier I, 10% Tier II (includes non-renewable sources
Source: North Carolina Solar Center and IREC
Public Benefit Funds for Renewable
Energy in 15 States
$4 Billion by 2017
CA - $135 mil./yri
CT - $30 mil./yr
DE - $1.5 mil./yr
IL - $50 mil./10 yrsii
ME - ~$100,000*
MA - $150 mil./yr (over 5 yrs.)
MN - $16 mil./yr
MT - $14.9 mil./yriii
NJ - $69 mil.**
NY - $208 mil./5 yrsiv(R&D)
OH - $100 mil./10 yrs.v
OR - $10 mil./yr.
PA - Utility level Sustainable
Energy Funds
RI - ~$3 mil./yrvi
WI - ~$2.5 mil./yr***
iexpires
**6 months, Jan-June 2004, $358 mil. From
2001-2003
ivexpires 6/30/06
vexpires 2011
viup for review 2006
***varies per yr., $RE is 4.5% of $EE collected
1/1/07
iiexpires in 2007
*dependent on voluntary contributions
iiiexpires 12/31/05
Federal Policies: 2005
Senate Finance Committee Tax Package
 Extends Section 45 Renewable Production Tax Credit (PTC)
three years to 12/08.
 Drops solar PTC and adds solar Investment Tax Credit (ITC).
 Creates 30% ITC for residential solar hot water, photovoltaics,
and fuel cells. Capped at $2000 for solar.
 Increases business solar ITC from 10% to 30%.
 PTC for wind and closed-loop biomass, for eligible
producers, will continue for 10 years. PTC for geothermal,
open-loop biomass, small irrigation hydropower and MSW
will last for 5 years. Adds fuel cell PTC for 5 years.
 The JOBS Bill created volumetric excise tax credits for
ethanol and biodiesel. Tax package expands credit to other
alternative fuels, including all biomass-derived fuels.
 Extends biodiesel tax credit four years through 2010.
Federal Policies: 2005
Renewable Portfolio Standard (RPS)
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Sen. Bingaman (D-NM) offered an amendment for an RPS of 10%
renewable power by 2020 (passed Senate 52-48)
Sens. Kerry (D-MA) and Jeffords (I-VT) have filed an amendment
for a RPS of 20% renewable power by 2020.
Renewable Fuels Standard (RFS)
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5B gallon RFS by 2012 (approved in House Energy bill)
8B gallon RFS by 2008 in Senate Energy bill
Renewable Resource Assessment
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$10 million/yr in the House and Senate Energy Bills
Diesel Emission Reduction
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Biodiesel is an eligible fuel in the Diesel Emissions Reduction Act
of 2005, which funds diesel emission reduction strategies.
Federal Policies: 2005
Other Biofuel Incentives
 Sen. Obama (D-IL) introduced the E-85 Incentives Act (S. 918) as
an amendment to transportation bill, passed Senate May 17
 Rep. Kaptur (D-OH) amendment to require the Department of
Defense to conduct a study on the use of biodiesel and ethanol
fuels by the armed forces and defense agencies adopted in
National Defense Authorization Act for FY 2006 (HR. 1815)
Agricultural Appropriations
 House approved full $23 million for Sec. 9006, on floor June 2005.
 Full funding to the Sec. 6401 Value-Added Producer Grant
Program was restored to $40 million on the House floor
Energy & Water Appropriations for EERE
 House recommendation for DOE EERE FY06 is $25.4 million above
request, but $23.1 million below FY05 enacted.
Changing Policy Landscape - State
Sample of State Actions
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Minnesota Governor Tim Pawlenty signed into law a statewide mandate for
20 percent ethanol use on May 10, 2005, up from the existing 10 percent
requirement.
Washington Governor Christine Gregoire signed into law SB 5101 to
provide a 15¢ per kilowatt-hour incentive for small scale renewable energy
producers using solar, wind, or anaerobic digester technology. ( May 10,
2005)
Montana Governor Brian Schweitzer signed the State’s first biofuels
mandate for a ten percent ethanol blend in all gasoline sold by 2006.
North Dakota Governor John Hoeven signed a number of bills on April 22,
2005, including incentives for ethanol production include $3.25 million for
new and existing ethanol plants in the State, $1.35 million for the
expansion of existing plants, and a 20¢ per gallon tax credit for retail sales
of E85 (HB 1478), and (SB 2281) allowing ethanol and biodiesel plants to
earn a 30 percent investment tax credit .
Indiana Governor Mitch Daniels signed the biofuel bill, HB 1032, on April 1,
2005 which instructs the state government to run all state agency vehicles
on bio-based fuels, such as biodiesel, ethanol, or gasohol, when possible.
Changing Policy Landscape – New
Technologies and Public Awareness
Plug-in Hybrid Vehicles
 Plug-in hybrid vehicles can charge batteries using off-peak
base-load power, such as geothermal. When used with
biofuels these can drastically reduce imported oil demands
while cleaning the air.
For more
information Contact:
Carol Werner
(202) 662-1881
[email protected]
or
Fred Beck
(202) 662-1892
[email protected]
www.eesi.org