New Ohio Law Expected to Spawn 5,000-7,000 MW Wind Market

April 29, 2008 from American Wind Energy Association (AWEA)


by Hans Detweiler, AWEA Washington, D.C., United States [RenewableEnergyWorld.com]


Following unanimous Senate concurrence with an Ohio House bill, legislation to establish a 12.5%-by-2025 renewable electricity standard (RES) is headed to the desk of Governor Ted Strickland (D). The governor is expected to sign the bill on May 1st, but has offered no public statement regarding the final legislation.


"As Ohio goes, so goes the nation."
-- Erin Bowser, Environment Ohio

Assuming that wind energy constitutes 75%-95% of the 12.5% standard, the bill would establish a market for between 5,000 MW and 7,000 MW of new wind capacity by 2025. Annual mandatory benchmarks begin with 0.25% in 2009 and 0.5% in 2010, then add 0.5% per year through 2014, followed by an additional 1% per year through 2024. In terms of early-year impact, a reasonable estimate for new megawatts induced by the legislation for 2012 (ostensibly built by end of 2011) would be 650-750 MW.


Inclusion of specific annual requirements in the bill was a major accomplishment for the American Wind Energy Association (AWEA) and AWEA members, as an earlier bill that passed the Senate last fall included no such benchmarks. Following the advocacy of the wind industry, strong early-year benchmarks became a priority for Speaker Jon Husted (R), who then championed them and ensured their inclusion in the final bill. Companies particularly active in the effort included Babcock & Brown, Gamesa, GE, Horizon, Iberdrola, Invenergy, JW Great Lakes, Owens-Corning, and Webcore. "Early year benchmarks were not in the picture when we engaged this legislation in February," said an AWEA state legislation and policy spokesperson. "Industry did a great job of coming out publicly to support the early annual standards, and that public involvement paid off."


The legislation also has national significance. Ohio, as a major industrial state, ranks fourth in power consumption (behind only Texas, California, and Florida) and this market will move the needle nationally for renewable energy. The legislation can also be expected to jump start interest in wind manufacturing in Ohio's world-class manufacturing sector, which may bring advantages of scale and cost to the whole industry. Furthermore, 25 states plus the District of Columbia have previously enacted mandatory renewable energy standards, so Ohio's addition to this group means that a majority of all states now have such standards. "As Ohio goes, so goes the nation," said Erin Bowser of Environment Ohio.


The renewable energy provisions are generally consistent with national best practices following efforts by Speaker Husted to improve the bill. The bill contains strong enforcement provisions, including "alternative compliance payments" of not less than $45 per megawatt hour (MWh), and requires that at least half of the energy used to satisfy the standard be generated in Ohio (the other half can be from outside Ohio if delivered into the state). The bill also includes a force majeure clause patterned on Pennsylvania's, a small solar set-aside that ramps up gradually to 0.5% by 2025, and a 3% cost cap provision. The wind industry's only reservation with the bill was the cost cap provision, which may require close attention during regulatory implementation.


To find the actual legislation, go to Section 4928.64 of the bill, available at: http://www.legislature.state.oh.us/bills.cfm?ID=127_SB_221


Hans Detweiler is manager of state legislation and policy at the American Wind Energy Association.

This article first appeared in Wind Energy Weekly.

INDIANA SURVEY: HOOSIERS WOULD PULL PLUG ON DUKE ENERGY’S PROPOSED COAL-FIRED POWER PLANT IN EDWARDSPORT

Survey of 600 Indiana Adults Shows Strong Preference for Clean Energy, More Conservation & Energy-Efficiency; About 6 in 10 State Residents Would Be More Likely to Support Political Candidate Who Opposes Edwardsport Plant.

INDIANAPOLIS, IN.///April 22, 2008///Support in Indiana for plans by Duke Energy to build a dirty coal-fired power plant at Edwardsport is weak, according to a scientific survey of 600 state residents conducted by the Opinion Research Corporation (ORC) for the independent Civil Society Institute, a nonprofit and nonpartisan think tank located in Newton, MA.

The survey found that four out of five Indiana residents (80 percent) – 76 percent of Republicans, 85 percent of Democrats and 81 percent of Independents -- agree that “Indiana should focus on increased energy efficiency and conservation steps and more use of sustainable energy to reduce demand for electricity before it goes ahead with a new coal-fired power plant.” Fewer than one in four (18 percent) disagree.

Other key Indiana survey findings include:

• Three out of four Indiana residents (75 percent) would pick clean wind or solar energy if they “could decide where to invest money in new electric power generation for Indiana.” Fewer than one in five (16 percent) would pick nuclear and just 7 percent favor coal as the power source.
• About six out of 10 Indiana residents (58 percent) -– including an equal number of likely voters --would be more likely to vote for “a candidate for public office who spoke out against Duke Energy's planned coal-fired plant for Indiana.”This support for power plant opponent candidates includes majorities of Republicans (50 percent), Democrats (66 percent) and Independents (57 percent).
• Nearly three out of four Indiana residents (75 percent) would oppose “the building of another coal-fired power plant in Indiana if they knew it would result in additional mercury contamination and carbon dioxide pollution, which scientists believe contribute to global warming.” Over half (53 percent) of residents would strongly oppose such construction, which would be favored by only one in four state residents. Only 31 percent of Republicans, 16 percent of Democrats and 22 percent of Independents would support such construction.
  

Civil Society Institute Senior Fellow Gail Pressberg said: “Duke Energy clearly does not have the support of Hoosiers when it embraces a 19th Century solution like coal to deal with the challenges of a 21st Century world that requires clean energy solutions that create new jobs and cut global warming pollution. Indiana residents know that Jim Rogers is on the wrong track in relying on a dirty power source at the same time that more far-sighted utilities and the state governments that regulate them are canceling plans for coal-fired power plants.”

Grant Smith, executive director, Citizens Action Coalition of Indiana, Indianapolis, IN., said: “The public understands that going forward with construction of the Edwardsport coal gasification plant would be a financial disaster for ratepayers and an ecological travesty. It is simply unethical and irresponsible for Duke Energy CEO Jim Rogers to pursue completion of the Edwardsport plant due to extravagant costs to ratepayers in these difficult economic times, the lack of any technology that can control carbon dioxide emissions, and the availability of cheaper, cleaner options that can easily meet electric demand in Duke’s monopoly territory and create many more jobs than a coal plant. The public just isn’t buying Rogers’ self-serving coal-now-and-forever spin.”

OTHER SURVEY FINDINGS

Opinion Research Corporation Senior Researcher Graham Hueber said: “It is clear from the survey that Indiana residents are looking ahead to a future of cleaner energy. For example, nearly nine out of 10 Hoosiers (86 percent) agree with the following statement: ‘A national energy strategy based on a 'phasing in' of new technologies and a phasing out of carbon based energy sources would require specific actions. America should commit to a five-year moratorium on new coal-fired plants and, instead, focus on aggressive expansion of wind, solar and other renewable energy sources. Tax and other incentives should be provided for all new construction to help reduce energy consumption. Homeowners should get incentives to make their homes more energy efficient to help reduce energy demands.’”

Other key Civil Society Institute survey findings for Indiana include the following:

• Likely voters favor more conservation/energy efficiency over power plant construction by a margin of 79 percent to 19 percent.
• Four out of five Indiana residents (80 percent) say they are “concerned about the possible ill health effects -including asthma, heart problems and mental retardation in children --that could be experienced by you, your family members and others as the result of increased pollution from a new coal-fired power plant in Indiana.”Fewer than one in five state residents (19 percent) say they are not concerned by such health issues.
• About nine out of ten Indiana residents (84 percent) – including a bipartisan 80 percent of Republicans, 88 percent of Democrats and 87 percent of Independents -- agree with the following statement: "A sound energy policy is central to solving some of the most urgent problems facing our country. An energy policy that promotes energy efficiency and sustainable power would encourage innovation, create new green jobs and make for a stronger economy. It also allows the U.S. to disentangle itself from unstable and hostile regions of the world while also reducing harmful greenhouse gas emissions.“
• Roughly nine out of 10 Indiana residents (89 percent) “think it is time for the leaders of our nation to start thinking in terms of the concept of a ’new industrial revolution, ’one that is characterized by the orderly phasing out of fossil fuels and the phasing in of clean, renewable energy sources -many of which are available now, such as wind and solar for electricity, hybrid and clean diesel technologies for cars.”
• Over four out of five Indiana residents (81 percent) agree that “the effects of global warming require that we take timely and decisive steps for renewable, safe and clean energy sources. We need transitional technologies on our path to energy independence. There are tough choices to be made and tradeoffs. We cannot afford to postpone decisions since there are no perfect options."
• Over four-fifths of Indiana residents (83 percent) have little (15 percent) or no (68 percent) awareness of “plans by Duke Energy to build a new coal-fired power plant at Edwardsport in Indiana.” Only 17 percent say they are aware, with just 4 percent “very aware.”
  

For full findings from the new survey, go to http://www.civilsocietyinstitute.org/.

SURVEY METHODOLOGY

Results are based on an Opinion Research Corporation survey for the Civil Society Institute consisting of telephone interviews conducted among a representative sample of 602 adults age 18 and over, living in private households, in the state of Indiana. Interviewing was completed during the period of April 4-7, 2008. All completed interviews were weighted by two variables: age and gender, to ensure reliable and accurate representation of the adult population. The margin of error is plus or minus 4 percentage points for the sample of 602 adults. Smaller sub-groups will have larger error margins.

ABOUT THE CIVIL SOCIETY INSTITUTE

The nonprofit and nonpartisan Civil Society Institute (http://www.civilsocietyinstitute.org/) is a Newton, Massachusetts-based think tank that serves as a catalyst for change by creating problem-solving interactions among people, and between communities, government and business that can help to improve society. Since 2003, CSI has conducted more than 15 major national and state-level surveys on energy and global warming issues. The Civil Society Institute also is a of the Citizens Lead for Energy Action Now (CLEAN) campaign at http://www.cleanenergyaction.net/. CSI is the organizer of both 40MPG.org (http://www.40mpg.org/) and the Hybrid Owners of America (http://www.HybridOwnersofAmerica.org).

CONTACT: Ailis Aaron Wolf, (703) 276-3265 or aawolf@hastingsgroup.com.

EDITOR'S NOTE: A streaming audio replay of the news event will be available on the Web at http://www.civilsocietyinstitute.org/ as of 5 p.m. CDT/6 p.m. EDT on April 22, 2008.

Cantwell-Ensign Clean Energy Amendment Derailed

From Solar Nation

Clunk! Roller Coaster off the Rails
The House puts its foot down

Roller coasters have, by design, a multitude of ups and downs, but it's comforting even to thrill-seekers to know they rarely become completely derailed. The roller coaster that represents the latest iteration of the Congressional energy bill, however, has finally done that.

The news from Washington is that the House of Representatives has no intention of moving forward with the "Cantwell-Ensign" clean energy provisions that the Senate made part of their comprehensive housing bill in early April. House Democratic leadership does not believe:

• that energy provisions should be included in housing legislation;
• that energy matters should be part of any future 'Economic Stimulus'-type legislation; and
• that bills with tax titles should be passed with no identified source of funding.

Unfortunately, those three characteristics well describe the clean energy amendment that Senators Cantwell and Ensign succeeded in attaching to the housing bill.

This is, to say the least, a disappointment, particularly after the efforts of solar citizens helped to produce the overwhelming (88-8) Senate passage of the amendment. But for the short term, it seems there will be no useful activity on Capitol Hill that will promote the tax credits for clean energy or energy efficiency that we know are so important. And that doesn't mean these measures will never again be a part of the economic equation; what it means is that those congresspersons who firmly believe the measures are necessary must find other legislative vehicles to carry them through the House, Senate and the White House.

Will this happen this year? At this point we can't tell you. There is talk of lumping the clean energy tax credits in with other credits and deductions in a broad-based 'extenders' bill, but nothing concrete has yet emerged. We do know that the attention of Congress in an election year tends to veer toward campaigns and polls instead of legislation as November approaches, so we're hoping for action earlier rather than later.

As always, we'll keep you posted.

RENEWABLE ENERGY: Senate passes bill with tax credit extensions, but endgame uncertain

Reprinted from Greenwire.

RENEWABLE ENERGY: Senate passes bill with tax credit extensions, but endgame uncertain (04/10/2008)

by Ben Geman, Greenwire senior reporter
(See http://www.eenews.net/gw/)

The Senate voted 88-8 today to include roughly $6 billion worth of renewable energy and efficiency tax credits in a major housing bill the chamber passed shortly thereafter, but it remains unclear how or when a deal with the House may emerge.

The amendment, sponsored by Sens. Maria Cantwell (D-Wash.) and John Ensign (R-Nev.), extends credits for wind, solar and other renewable energy projects that are set to expire at year's end.

The Cantwell-Ensign plan was included in a bill aimed at addressing the subprime mortgage crisis that the Senate passed 84-12. However, the White House yesterday attacked several provisions in the Senate plan, and the House is crafting its own housing bill.

The bill includes a one-year extension of the renewable power production tax credit that wind developers call essential to continued growth and an eight-year extension of the solar investment tax credit. It also provides one- or two-year extensions of credits for efficient homes and buildings, and several years' worth of credits for the manufacture of energy-efficient dishwashers, clothes washers and refrigerators.

But the measure does not include revenue-raising provisions to offset the costs, which sets up a potential collision with House Democrats who want to adhere to pay-as-you-go rules. Cantwell, speaking before the vote, urged colleagues in the other chamber to adopt the Senate plan and referred to it repeatedly as a "stimulative" measure.

Congress approved -- and President Bush signed -- an economic stimulus plan earlier this year that was not offset. Cantwell wants colleagues to see the renewable energy credits in the same light, arguing they will preserve and create "green jobs" and prevent billions of dollars in renewable-sector investments from drying up.

The House in late February approved a much larger energy tax package that included renewable power, efficiency, biofuels and other provisions. The costs are offset by repealing tax breaks for large oil companies. But this approach -- which the House has endorsed repeatedly over the past year -- has faltered in the Senate amid GOP-led filibusters and faces White House veto threats.

"This is our bipartisan chance to have renewable energy in this country in a big way," Ensign said before the vote.

Nonetheless, earlier this week, a spokesman for House Speaker Nancy Pelosi (D-Calif.) said in an e-mail, "We are committed to pay-as-you-go in our effort to restore our nation's fiscal responsibility and strongly support the House-passed legislation."

Cantwell, before the vote, said continued wrangling over offsets would jeopardize renewable energy projects by creating uncertainty about the tax credits. Investment in wind power projects has plunged in the past when lawmakers have allowed the production tax credit to lapse.

She argued that passage of the current plan would provide breathing room to work on revenue sources to support longer-term extension of renewable energy and efficiency incentives. "We have plenty of time for the rest of the year to really talk about how we are going to make green energy tax credits a priority in our nation's tax code so this industry can really take off and provide the certainty and predictability we need," she said.

Before approving the Cantwell-Ensign plan, lawmakers rejected a proposal by Sens. Lamar Alexander (R-Tenn.) and Jon Kyl (R-Ariz.) to extend the renewable production tax credit for two years, rather than one, but lower the value of the credit for wind projects. The vote was 15-79.

Meanwhile, Sen. Max Baucus (D-Mont.) told reporters Tuesday that he will probably unveil an energy tax package he is crafting next week. The senator -- who wants to include as-yet-unspecified offsets -- said the package would be "significant" when asked about the size. Baucus said it will probably be included in a broader tax package he is preparing.

Solar Nation Asks for Calls to Sen. Lugar & Sen. Bayh to Co-Sponsor Cantwell-Ensign Clean Energy Tax Stimulus Act of 2008

FROM SOLAR NATION--

Yesterday (Thursday, April 3, 2008), Senators Cantwell and Ensign introduced a bipartisan bill, the Clean Energy Tax Stimulus Act of 2008 into the U.S. Senate. It contains much of what we've been fighting for, over the past year, and by TODAY (Friday, April 4, 2008) it needs a total of 61 senators to co-sponsor it, to ensure passage.

Wait a minute--haven't we been here before? If you follow Solar Nation, you'll remember there's already a bill answering to this description that passed the House in February and is waiting its turn in the Senate.

This is true, but the chances are that that bill won't pass the Senate, since funding for it is still slated to come from the oil and gas industry, a feature that has doomed similar bills twice before.
The Cantwell/Ensign bill, on the other hand, is a pared-down version with a much smaller price tag of $7 billion, which:

• extends the investment tax credit for commercial solar power installations for 8 years
• extends the residential solar investment tax credit for one year and
• removes the current $2000 credit cap
  
• removes the exemption on utilities for claiming these tax credits
• allows the tax credit to offset alternative minimum tax
  
• extends incentives for energy efficiency improvements
  

This is the bill that has the best chance of keeping Solar alive until (and if) Congress can pass a stronger bill next year; in fact, among the 23 co-sponsors it already has, there are some senators who have been steadfast hold-outs to past energy bills.

Please call :

Sen. Lugar's office 202-224-4814; and

Sen. Bayh's office 202-224-5623.

Ask them to sign on to the Cantwell/Ensign bill as a co-sponsor.

Can you make a call to their office TODAY and urge them to get on board?

Business & Environmental Groups Urge Sen. Lugar to Support Tax Incentives for Renewable Energy

3 April 2008

SENT VIA E-MAIL

The Honorable Richard Lugar
U.S. Senate
306 Hart Senate Building
Washington, DC 20510-1401

Dear Senator Lugar:

As a coalition of businesses and environmental organizations, we urge you to pass bipartisan legislation as soon as possible that extends federal tax incentives for energy efficiency and renewable energy technologies and consumer purchases of energy efficient products. These critically important incentives have expired or will expire at the end of this year and must be extended immediately to avoid significant harm to the developing clean energy industries in the United States.

We urge extension of incentives for renewable energy production, energy efficiency in commercial buildings, investment in solar electric systems, use of efficient home heating and cooling equipment, production of efficient home appliances, construction of efficient new homes, efficiency retrofits to existing homes, and consumer purchases of energy efficient products. The technologies produced by these industries play a vital role in reducing global warming pollution, creating new high-wage American jobs, spurring economic growth and saving consumers and businesses money on their energy bills.

It is essential for the development of clean technology industries that extensions of the efficiency and renewable energy tax incentives remain effective for multiple years. Congress has historically extended the clean energy incentives in one or two-year increments, which creates a boom-bust cycle for the technologies covered by the incentives. This cycle undermines the efficient development of the clean energy technology industries into mature industries.

It is critical for the sustained development of the clean energy technology industries that efficiency and renewable energy tax incentives be promptly extended. The delay in extending these provisions is already discouraging investment decisions today for clean energy projects that will be completed in 2009 or later. According to a recent study by Navigant Consulting, failure to promptly extend renewable energy tax incentives places at risk 116,000 jobs in the wind and solar industries and more than $19 billion in clean energy investment.

America is on the cusp of a new, clean energy economy. Extending efficiency and renewable energy tax incentives is critical to promoting the transition to this economy. They will help get us started on solving the global warming problem, reduce energy prices for consumers and create new high-wage jobs. We urge you to do everything you can to ensure prompt passage of legislation with significant bipartisan support that adopts long-term extensions of the efficiency and renewable energy tax incentives and can be enacted into law this spring.

Sincerely,


Laura Ann Arnold, President
Indiana Renewable Energy Association

3M
AIA Indiana Chapter
American Council for an Energy-Efficient Economy
American Solar Energy Society
BOSCH
Bright Idea Energy Services, Evansville, IN
Dow Chemical Company
Duke Energy
ECI Wind & Solar, Fairmount, IN
Green Way Supply, Indianapolis, IN
Home & Mobile Energy, Middlebury, IN
Hoosier Chapter of the Sierra Club
Hoosier Environmental Council
Horizon Wind
Indiana Wildlife Federation
Indy Solar Works, LLC, Indianapolis, IN
Inovateus Development, South Bend, IN
Inverde, Fishers, IN
Johnson Controls
Kyocera
Macy's
Morton Energy, Evansville, IN
National Association of State Energy Officials
National Small Business Association
Oerlikon
Polyisocyanurate Insulation Manufacturers Association
PPG Industries
Reinforcing Services, Markle, IN
Solar Systems of Indiana, Bloomington, IN
SPI Industries, South Bend, IN
Spirax Sarco, Inc
Sun Rise Solar, St. John, IN
Sun Wind Power Inc., Floyds Knobs, IN
Sunvention, Greencastle, IN
US Green Building Council - Indiana Chapter
USA Solar & Wind Inc.
WaterFurnace

If you agree with us, please send your own letter to Sen. Richard Lugar.
senator.lugar@lugar.senate.gov