December 2010 Energy Future Update

National
U.S. Legislation Extends, Reduces Energy Efficiency Tax Credits
On December 17, 2010, President Obama signed legislation renewing Bush-era tax cuts that included an extension of home energy efficiency improvement tax credits. The extension allows individuals to receive tax credits for installing qualifying energy efficient windows, doors, water heaters, roofs, insulation, heating and air-conditioning units and biomass stoves at principal residences. The legislation, while extending the tax credits, also reduces them. Installations that occurred before the end of 2010 were eligible for a tax credit equal to 30 percent of the homeowner's cost, up to $1,500. In 2011, the cap is reduced to $500, and the credit percentage varies depending on what improvement is made. The tax bill also includes a one-year extension of a renewable energy grant program and tax credits for ethanol and alternative vehicle fuels.

Maine
Efficiency Maine Awards Energy Efficiency Grants to Paper Mill
According to a news release published December 13, 2010, Efficiency Maine has awarded four energy grants to Twin Rivers Paper for energy efficiency projects. The energy grants, totaling $1.3 million, were awarded to the mill through a competitive application process. Two of the grants will be used to fund heat recovery projects, reducing the mill’s fossil fuel consumption by approximately one million gallons of oil per year. The remaining two grants will fund upgrades to nearly 40 high efficiency drives throughout the facility, reducing electrical consumption by six million kWh each year for the next 10 years. Grant funds for the two heat recovery projects are provided by the American Recovery and Reinvestment Act. Funding for the equipment updates was made possible by the Regional Greenhouse Gas Initiative (or RGGI).

Massachusetts
State and Federal Approvals Appealed for Massachusetts Cape Wind Project
On December 13, 2010, four groups met the deadline to appeal the Massachusetts Department of Public Utilities' (DPU) approval of Cape Wind's $2.7 billion power-purchase deal with National Grid. The groups each filed challenges with the Supreme Judicial Court, claiming violations of the state's Green Communities Act, high costs to consumers, and lack of competitive bidding. The state Executive Office of Energy and Environmental Affairs expects the court to uphold the DPU's ruling. Cape Wind's key federal approval remains in the U.S. District Court in Washington, D.C. With the December 13, 2010 appeals, the project's final state and federal approvals are now delayed in court.

National
Environmental Defense Fund Analysis Shows Increases in Biomass Energy
On December 15, 2010, Environmental Defense Fund (EDF) released analysis that shows biomass energy is growing. According to EDF forestry experts, publicly available data on investments in biomass energy contradicts claims by the National Alliance of Forest Owners that the inclusion of biomass emissions in the U.S. EPA's Clean Air Act greenhouse gas permitting program hinders renewable energy development. Using data from Forisk Consulting, EDF calculates that existing and announced wood bioenergy projects increased during the past year by nearly 35 percent, from 112 projects to 151 projects, across 11 southern states: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia.

National
Greenhouse Gas Management Institute Releases Workforce Needs Assessment Results ( web page references the need for professionals charged with measuring, accounting, auditing, and managing GHG emissions with high levels of competency and ethical standards.)
According to an article published December 16, 2010, the Greenhouse Gas Management Institute has released the results of their second annual Greenhouse Gas/Climate Change Workforce Needs Assessment survey. The report summarizes the responses to a 55-question survey from over 1,000 greenhouse gas professionals from around the world that measure and manage greenhouse gas emissions. Building on the inaugural survey in 2009, the latest results show an emerging market in almost desperate need of trained workers but also a market that is still immature with many facilities unprepared for coming mandatory disclosure requirements and concerns of a public with little understanding of climate change. The report is available online at: http://ghginstitute.org/research/survey/.

National
General Electric Study Finds Wind Energy Could Supply a Quarter of New England’s Electricity Needs
On December 17, 2010, GE Energy Applications & Systems Engineering released a study that shows wind has the potential to supply up to 24 percent of New England's annual electricity needs by 2020. The figure would require a more than 44-fold increase over the amount of wind power now generated in the region. There are not nearly enough proposed wind farms to capture that much power and delivering it would require spending $19 to $25 billion for new transmission lines. The two-year New England Wind Integration Study measured wind potential and aimed to determine exactly what is needed to link future wind power producers to the grid. The study is available online at: http://www.iso-ne.com/committees/comm_wkgrps/prtcpnts_comm/pac/reports/2010/newis_report.pdf.

National
Federal Energy Regulatory Commission Approves Midwest Transmission Proposal
On December 16, 2010, the Federal Energy Regulatory Commission (FERC) approved a proposal that removes barriers to the development of much-needed transmission lines that will help maintain the reliability of the transmission grid and deliver cleaner and cheaper energy to consumers across the Midwest. The proposal, offered by the Midwest Independent Transmission System Operator Inc. (Midwest ISO) and its stakeholders, proposes to create a new category of transmission projects, called multi value projects, to recognize the regional benefits of qualifying transmission projects for the purpose of cost allocation. The proposal is expected to aid in the development of renewable energy.

National
U.S. Departments of Energy, Interior Identify Public Land Solar Energy Potential
On December 16, 2010, the U.S. Departments of Energy and the Interior released a comprehensive analysis that identifies areas of high solar potential on public lands in six western states. The “Draft Solar Programmatic Environmental Impact Statement” evaluates public lands in Arizona, California, Colorado, Nevada, New Mexico, and Utah for environmentally sound, utility-scale solar energy production. The study identifies nearly 700,000 acres of land as proposed Solar Energy Zones. Public comments on the report will be accepted until March 17, 2010. The full study and maps of Solar Energy Zones are available for download at: http://solareis.anl.gov/index.cfm.

National
U.S. Department of Energy Finalizes Loan to World's Largest Wind Farm
On December 16, 2010, the U.S. Department of Energy (DOE) announced that it has finalized a partial loan guarantee of $1.3 billion to support the Caithness Shepherds Flat project, an 845-megawatt wind generation facility in Oregon. Caithness Energy estimates that the project will employ 400 construction workers and 35 operators, and once complete will be the world’s largest wind farm. The wind farm becomes the sixth project of its kind to be supported by the American Recovery and Reinvestment Act and to receive a loan guarantee under the Financial Institution Partnership Program.

Utah
HEAL Utah Report Provides Renewable Energy Roadmap for Utah
On December 14, 2010, HEAL Utah released a report finding that Utah could satisfy much of its energy demand with solar, wind, and geothermal power. The group commissioned an expert and a board of advisers to project Utah's energy demands for the next 40 years. The study says the key to maximizing renewable power is storing energy for times when demand is high. The report is available online at: http://healutah.org/blueprint.

Nevada
U.S. Department of the Interior Approves Nevada Solar Energy Project
On December 20, 2010, Secretary of the Interior Ken Salazar approved the Crescent Dunes Solar Energy Project, the ninth large-scale solar facility approved as part of the administration’s initiative to encourage rapid and responsible development of renewable energy on U.S. public lands. The concentrated solar power plant will produce 110 megawatts. The project, proposed by SolarReserve's Tonopah Solar Energy, LLC of Santa Monica, California, is sited on approximately 2,250 acres administered by the Bureau of Land Management (BLM) in Nye County, Nevada. The plant will use concentrated solar thermal “power tower” technology and have thermal energy storage capability.

Pennsylvania
Pennsylvania Redevelopment Assistance Program Funds Hospital Biomass Energy
On December 15, 2010, Evangelical Community Hospital officials announced receipt of a $1 million grant through the Pennsylvania Redevelopment Assistance Capital Program, which will be used to help cover the estimated $4.6 million cost of a biomass energy system. The hospital will install a biomass energy system that will burn wood and generate power for the hospital. The wood will come from manufacturers within 10 miles of the hospital that are looking to dispose of wood scraps, as well as other similar producers.

Ohio
Ohio Regulators Certify SMART Papers as Renewable Energy Generating Facility
On December 21, 2010, the Public Utilities Commission of Ohio certified SMART Papers as an eligible renewable energy resource generating facility. The certification helps the papermaker reduce its use of coal up to 50 percent, or 50,000 tons annually, providing a new source of renewable energy to Ohio and the Midwest electricity grid by the end of 2011. Most of the coal will be replaced by cellulosic fuel pellets at the company's co-generation plant. The pellets are manufactured from non-recyclable paper and biomass materials that would otherwise go to a landfill.

Ohio
Ohio Awards Waste to Energy Funding
According to an article published December 13, 2010, the Ohio Department of Development has awarded $10 million to 11 Ohio projects that will transform waste to electricity, fuel and other byproducts. The funding was part of the $96 million in federal stimulus funding allocated to Ohio through the State Energy Program. The funding will be used for projects such as anaerobic digesters and gas collection systems.

New York
U.S. Department of Energy Completes Loan Guarantee for New York Energy Storage System
On December 23, 2010, U.S. Department of Energy Secretary Steven Chu announced that a $17.1 million loan guarantee has been finalized for an energy storage system at the New York AES Westover facility. The loan guarantee will support the construction of a 20 megawatt (MW) energy storage system using advanced lithium-ion batteries. The AES project, located in Johnson City, New York, will provide a more stable and efficient electrical grid for the state's high-voltage transmission network. The project will allow more renewable energy sources like solar and wind to contribute to the electrical grid. The AES technology can help reduce carbon dioxide emissions by 70 percent compared to frequency regulation provided by fossil energy suppliers.

Illinois
Illinois Commerce Commission Approves Renewable Energy Procurement Agreements
On December 15, 2010, the Illinois Commerce Commission approved Ameren Illinois' 20-year renewable source electricity procurement agreements. The Illinois Renewable Standard law requires Ameren Illinois to procure 7 percent of its electricity supply from renewable energy sources in 2012, 15 percent in 2015, and 25 percent by 2025. Under the agreements, Ameren Illinois will purchase 600,000 megawatt-hours of wind and solar power per year for 20 years, providing electricity customers with significant protection against anticipated future increases in the price of renewable power.

Idaho
Idaho Public Utilities Commission Approves Anaerobic Digester Sales Agreement
On December 20, 2010, the Idaho Public Utilities Commission approved a sales agreement between Idaho Power Company and AgPower Jerome LLC, for a 4.5 megawatt (MW) anaerobic digester project to be built near Jerome, Idaho. The project, which includes three 1.6 MW turbines, is a Qualified Facility under the provisions of the federal Public Utility Regulatory Policies Act (PURPA). Under the agreement, AgPower will be paid approximately $80.05 per megawatt-hour in the first year of operation, with a project online date of January 1, 2012. By the 20th year of the agreement, project developers would be paid approximately $128.31 per MWh.

California
California Energy Commission Approves Two Solar Energy Projects
On December 15, 2010, the California Energy Commission (CEC) granted final approval to two solar projects totaling 650 megawatts of capacity. The Commission approved licensing of the 500-megawatt Palen Solar Power Project and the 150-megawatt Rice Solar Power Project, both in Riverside County. Both projects require final approval from the federal Bureau of Land Management before they can begin construction. With this decision, the CEC has licensed nine solar projects with a total of more than 4.1 gigawatts of capacity.

California
Federal Judge Temporarily Halts California Solar Power Plant
According to an article published December 16, 2010, a federal judge has decided to temporarily halt work on a Tessera Solar plant under development in west Imperial County, California. The plant was approved by Secretary of the Interior Ken Salazar on October 5, 2010, having already been approved by the California Energy Commission and the U.S. Bureau of Land Management. The Quechan Indian Tribe filed a lawsuit in an attempt to prevent construction on the plant, as the public lands on which it is planned are within the traditional territory of the Quechan Tribe and contain cultural and biological resources of significance to the tribe, its government, and its members. U.S. District Judge Larry Burns ruled the federal government failed to adequately consult the tribe before approving the planned solar plant, which is slated for tribal lands in the Imperial Valley.

California
California Energy Commission Approves Desert Renewable Energy Project Guide
On December 16, 2010, the California Energy Commission approved a guide for developing renewable energy projects in the desert. The “Best Management Practices and Guidance Manual: Desert Renewable Energy Projects,” was developed by the California Energy Commission, the California Department of Fish and Game, the U.S. Bureau of Land Management (BLM) and the U.S. Fish and Wildlife Service (USFWS). The manual provides recommendations to improve the timely review of renewable power projects planned for the desert, and includes methods for considering impacts on cultural resources, exceptional and rare plants, unique species, and other desert resources. The manual is available for download at: http://www.drecp.org/documents/index.html.

Texas
Texas Commission Approves Clean Coal Power Plant Air Quality Permits
On December 14, 2010, the Texas Commission on Environmental Quality approved air quality permits for a proposed $3.5 billion clean coal power plant in West Texas. The Tenaska Trailblazer Energy Center is expected to capture 85 to 90 percent of carbon dioxide emissions. The captured carbon dioxide will be transported by pipeline to oilfields in West Texas, where it will be used to boost petroleum recovery by an estimated 10 million barrels annually. The plant will have a net generating capacity of 600 megawatts and use a cooling technology that reduces water use by 90 percent. The plant could become the first large utility-scale power plant in the world to capture such a high percentage of carbon dioxide emissions.

Arizona
Arizona Siting Committee Approves Solar Energy Project
On December 14, 2010, SolarReserve announced it has received two Certificates of Environmental Compatibility (CEC) from the Arizona Power Plant and Transmission Line Siting Committee for its Crossroads Solar Energy Project. The 150-megawatt Crossroads Solar Energy Project and associated transmission line will use an advanced molten salt, power tower technology and will have the ability to store 10 hours of solar energy and generate electricity on demand, even after the sun goes down. The cases are listed separately under Arizona Corporation Commission (ACC) docket numbers 155 and 156 for the generator tie line and the power plant, respectively. Both cases will go before the ACC commissioners for final approval and SolarReserve expects to receive the final Certificate of Environmental Compatibility in early 2011.

Arizona
U.S. Department of Energy Finalizes Loan to Arizona Solar Generation Plant
On December 21, 2010, U.S. Department of Energy Secretary Steven Chu announced that a $1.45 billion loan guarantee has been finalized for Abengoa Solar Inc.'s Solana project, the world's largest parabolic trough concentrating solar plant. Located near Gila Bend, Arizona, the 250-megawatt (MW) project is the first large-scale solar plant in the United States capable of storing energy generated by the solar energy system. The Department of Energy’s Loan Programs Office has issued loan guarantees or offered conditional commitments for loan guarantees to support 16 clean energy projects, totaling nearly $16.5 billion. Additional information is available online at: http://lpo.energy.gov/.

California
California Regulators Approve Energy Efficiency Payments for Utilities
On December 16, 2010, the California Public Utilities Commission approved customer payments to utilities as incentives for increasing energy efficiency and decreasing customers' energy consumption. The California Public Utilities Commission approved payments of $29.1 million to Pacific Gas and Electric Co., $24.1 million to Southern California Edison, $ 5.1 million to San Diego Gas & Electric Co., and $9.9 million to Southern California Gas Co., for energy efficiency activities from 2006 to 2008. The incentives are intended to encourage utilities to embrace energy efficiency as a core part of their business model by aligning the utility profit motive with the broad deployment of energy efficiency measures.

California Approves Start of $4 Billion High-Speed Rail Line
December 8
The California High-Speed Rail Authority Board has decided to begin construction of a high-speed rail corridor in the Central Valley. The line will eventually link Los Angeles and the San Francisco Bay Area.

San Francisco Begins Quest for 100% Renewable Energy
December 7
San Francisco Mayor Gavin Newsom announced a $250,000 grant awarded to San Francisco from the Sidney Frank Foundation to develop an implementation plan over the next 12 months to generate 100% of San Francisco's electricity from renewable sources by 2020.

Air Force Academy Breaks Ground on 6 MW Solar Array
November 30
The Air Force Academy has broken ground on a 6 MW solar system that will provide up to 15 percent of its energy needs. SunPower Corp. will sell the power to Colorado Springs Utilities, which will deliver it to the Academy under a 25-year PPA.

National
World Resources Institute Releases Report, Tool on Federal Climate Actions
On December 16, 2010, the World Resources Institute (WRI) released a new tool that allows users to navigate U.S. greenhouse gas emissions by sector and see what federal agencies are doing to reduce them. The tool was developed based on the research of the WRI report, "Reducing Greenhouse Gas Emissions in the United States Using Existing Federal Authorities and State Action". The report describes the relevant legal authorities available to the Executive branch under the Clean Air Act and other federal laws. The report analyzes potential scenarios for climate change action in the coming months and years. The U.S. Environmental Protection Agency, the U.S. Department of Energy, and the U.S. Department of Transportation have already taken a number of steps to reduce GHG emissions or prepare for future reductions. WRI developed the tool to help track those activities.

National
U.S. Department of Agriculture Accepting Applications for Carbon Sequestration Demonstration Projects
According to an article published December 24, 2010, the U.S. Department of Agriculture's Natural Resources Conservation Service has announced the availability of grants to support large-scale demonstration projects that will reduce greenhouse gas emissions and promote carbon sequestration on private lands. The conservation service is making $5 million available through the Conservation Innovation Grant. Applications are due by February 11, 2011. The application is available online at: www.grants.gov/.

California
California Air Resources Board Approves Statewide Cap and Trade Program
On December 16, 2010, the California Air Resources Board (CARB) voted to establish a cap on statewide greenhouse gas emissions and create a broad-based carbon trading program. California’s Global Warming Solutions Act requires the state to reduce emissions to 1990 levels by 2020, or approximately 15 percent from 2010 levels. The cap established by CARB will apply to over 600 major industrial plants in the state. The plan would cap each plant’s emissions in 2012 and gradually lower the cap over eight years.

California
U.S. Fish and Wildlife Service Finds Wolverine Endangered Due to Climate Change
On December 13, 2010, the U.S. Fish and Wildlife Service (FWS) concluded a 12 month study finding that wolverines should be placed on a list of candidates for Endangered Species Act protection. The FWS study found that the primary threat to wolverines was climate change. Now that the wolverine is on the list of endangered species candidates, its status will be reviewed annually until rulemaking to propose the species for protection occurs. A copy of the finding is available at: http://www.fws.gov/mountain-prairie/species/mammals/wolverine.

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