Talking Green

Tim Kaine's Green Initiatives: Renew Virginia

A follow up to previous post on Tim Kaine's green initiatives, 'Renew Virginia.' Kaine kicked off campaign last Thursday meeting with his economic development team and energy-related business owners to "..discuss strategies for attracting renewable energy companies to the Commonwealth, and unveiled plans to form interagency task force and create an energy marketing plan to attract green jobs to the Commonwealth," according to information on the website. Tom Farrell, the CEO of Dominion Power was among the 10 business leaders in attendance. Good or bad thing?

What's in Renew Virginia package, via Virginia.gov.

• Under the leadership of Secretary of Commerce and trade Patrick O. Gottschalk, an Interagency Task Force for Energy Project Recruitment will work with the Virginia Economic Development Partnership to build Virginia’s compelling case for renewable energy-related businesses. The task force will include state agencies, university research centers, and federal laboratories based in Virginia.  
• The Governor has tasked VEDP with assembling an aggressive marketing plan for promoting Virginia’s business case for new investments and employment generating projects in renewable energy production and energy efficiency projects. 
• The Governor’s 2009 legislative package, which will be unveiled in the coming weeks, will improve energy conservation, encourage green businesses to relocate to the Commonwealth, and help create a customer base for those already present.
•  Through his roles as Chairman of the Chesapeake Bay Executive Council and of the Southern Governor’s Association, Governor Kaine has pledged to work for more aggressive policies for Bay cleanup, and to create a dialogue within the Southern States on ways to reduce greenhouse gas emissions and how our natural resources can be an asset for the nation in the area of energy independence.

This is long due for Virginia. Even though, the initiatives looks like work-in-progress. It's better late than never, no?

Because Virginia kinda behind Maryland in terms of  renewable energy productions, energy efficiency projects and other of smart green choices.

The Money Quote..

...it's right-on-the money quote on energy efficiency.

The energy efficiency improvements we identified would require additional annual investments of 170 billion US dollars over the next 13 years. But those investments would generate a return of more than 900 billion US dollars annually by 2020, thanks to reduced energy use. That’s an average annual rate of return of 17 percent based on a long-term oil price of 50 US dollars per barrel – the returns would be even greater with higher oil prices.

- from Economic opportunities in a low-carbon world

2.5 M Jobs and Green Stimulus

IN A NUTSHELL, what Obama's 2-year plan (transcript here) is for reviving the current (in the tank) Bushonomy.. via Bloomberg.

“It will be a two-year, nationwide effort to jumpstart job creation in America and lay the foundation for a strong and growing economy,” Obama said. “We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels; fuel-efficient cars and the alternative energy technologies that can free us from our dependence on foreign oil and keep our economy competitive in the years ahead.”

Sounds like the long due windfall for the renewable energy industry - is finally here.

Obama is not alone in recommending rebuilding green infrastructure. Deutsche Bank also recommends green economic stimulus.. via Green Wombat.

Deutsche Bank (DB) recommends a green infrastructure bank focus on energy efficiency, the transmission grid, renewable energy and public transportation. The green bank would dispense federal funding, make grants to states and cities, issue loans to governments and companies, underwrite public and private bonds, and provide tax credits for public and private projects.

No mentioned of price tag yet for this kind of stimulus on DB report. But, look like it would be much lower than the $700 bil bailout.

Soros Thumbs Up Green Economy..

George Soros on Bill Moyer's Journal (h/t GreenBiz), says that 'consumption' was the engine of the US and world economy. (couldn't agree more!) High consumption gets us to piling on debts. You just have to see the debt trap.. it's priceless.  Now that consumerism is dead (..well sort of), we need a new engine for the economy.

Yo Soros, you're spot on.

And the Soros' version for pulling us out of the rut is: The green economy!

Come to think of it.. uhm - maybe that's why the Senate bailout bill was padded up with tax breaks among others for the renewables energy. The train of thought behind this bailout bill..maybe this: IF we never ever see the $700 billion taxpayers money.. at least the green economy (and renewables) will balance it up.

Sort of hedging the investment...

Here is his MONEY QUOTE, via PBS.

Putting more money in, building infrastructure, converting to green technology. 

FULL version of the show after the jump...

Spin Your Electricity Backwards, Virginia

PART 2
(Continuation )

Virginia

The net metering incentives in Virginia is not that straight and simple. There are wrinkles in the incentives.

• Type of renewable sources qualify for net metering covers a whole range of sources, i.e. solar thermal electric, PV, wind, biomass, hydroelectric, geothermal, muni solid waste, tidal and wave energy.
• It applies not only for residential but also institutional, commercial, non-profit, state and local government.
• The limit on size: for residential is 10 kW (kilowatts) and non-residential up to 500 kW.
• Excess is credited to the following month's bill at retail rate; or either granted annually or credited the following month. Via DSIRE.

For example, if a customer-generator bought 1,500 kilowatt-hours (kWh) from a utility during the first 11 months of the annual period, and then generated 2,000 kWh of excess electricity in the 12th month, the customer could carry forward 1,500 kWh to the following month, and the remaining 500 kWh would be granted to the utility.

• Under legislation enacted in 2007 (HB 2708 of 2006), the net-metered customer required to enter a power purchase agreements (PPA).
• Only customers of investors-owned (public co. like Dominion Power), and cooperatives eligible to apply for net meter but not municipal utilities.

This is where it gets interesting. Unlike DC and MD, the net-metered energy is available on first-come first-served basis until "..[t]he rated generating capacity owned and operated by customer-generators reaches 1% of an electric distribution company's adjusted Virginia peak-load forecast for the previous year."

Incentive and Rebate Programs

1) Arlington County Green Building Incentive to encourage the development of enviromentally-friendly buildings in Arlington based on Leadership in Energy and Environmental Design (LEED).

2) Property tax exemption for passive solar space heat, passive solar heat, solar water heat, solar thermal electric and photovoltaics (PV). We pay taxes for our property that includes cars. Here is how it works. Each locality allows to exempt or partially exempt solar energy equipment or recycling equipment from 'property tax.'

The following cities in N.Va jurisdiction that offers the tax exemption: Alexandria, Fairfax, Falls Church, Loudoun, Prince William. (Arlington does not offer this?).

3) Property tax asssessments which allow localities to assess the property of tax of energy-efficient buildings at a reduced rate.

Virginia defines energy efficient building as:

"...any building that exceeds the energy efficiency standards of the Virginia Uniform Statewide Building Code by 30%; meets performance standards of the Green Globes Green Building Rating System, the Leadership in Energy and Environmental Design (LEED) System or the EarthCraft House Program; or qualifies as an Energy Star home under federal Energy Star criteria."

The reduced rate tax assessments applied to: Residential, non-residential, industrial, low-income residential, agricultural and institutional.

4) 100% Sales tax exemption for energy-efficient products (must meet Energy Star reqs) on products up to $2,500. This tax exemption is good until 7/1/2012. Eligible technologies include: washer/dryer, dishwasher, refrigerators, freezers, dehumidifiers, ceiling fans, AC, programmable thermostats.

For other incentives here.

Having all kinds of incentive, rebate programs is one thing. Reaching the tipping point is another story. You'll be surprised to know how many of the professionals working the real estate industry have little or some knowledge to a degree about energy-efficiency techniques or conservation.

So, in a way the $4+ gas and Dominion Power 18% rate increase is good, because it forces people to make living style adjustments.

Cross-posted at Urban Trekker

Net Metering + Energy Incentives for DC Region (pt.1)

Cross-posted at Urban Trekker.

So you want to have your electricity meter spinning backwards. Here is an idea for you: Net metering. The idea of net metering is to install renewable sources for your home generation (small wind, solar power, etc.) and whatever excess you have will be credited back to your utility bill. Via Wiki.

Net metering is an electricity policy for consumers who own, generally small, renewable energy facilities, such as wind or solar power, or uses vehicle-to-grid systems. "Net", in this context, is used in the sense of meaning "what remains after deductions" -- in this case, the deduction of any energy outflows from metered energy inflows. Under net metering, a system owner receives retail credit for at least a portion of the electricity they generate.

Net metering is a renewable energy incentive provided by your state and the Feds. By way of Energy Act of 2005, all public utilities are now "..[R]equired to make available upon request net metering to their customers."

Each state regulates its net metering policy differently. The five states which offer net metering  friendly policies are: California, Maryland, Colorado, New Jersey, and Pennsylvania. Maryland has a Gov who is a big proponent of energy savings, alternative energy - so that helps.

Let's see what DC region has to offer.

District of Columbia

• Net metering is available to residential and commercial customer-generators with systems powered by renewable sources (Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric), combined heat and power (CHP), fuel cells and microturbines, with digester gas, and hydroelectric power.
• Limit on size is 100 KW. According to AWEA, homes use approximately 9,400 kilowatt-hours (kWh) of electricity per year (or 780kWh per month).
• Excess is credited to customer's next bill at utility's retail rate.
• Offers 'interconnection standard' for net metering.
• PEPCO is the only electric company delivering the services in the District.

DC is also offering state grant on its 'Renewable Energy Demonstration Project (REDP)' The DC Energy Office is looking for homeowners on its fourth solicitation round. They're offering $9,000 for renewable energy project. Deadline for filing application is August 15, 2008.

Maryland

• After it's been expanded four times, the net metering enacted in 2007 raised the maximum capacity of all eligible systems from 200 kW to 2 MW. The rules apply to all utilities. The plus is - system leased, owned by residents or businesses, schools and governments that generate using solar, biomass, or wind resources are eligible also eligible for net metering.
• Excess is credited at retail rate and carried over to customer's next bill. After 12 mos. excess is granted to utility co. at 'no' compensation to the customers. (ditto with Virginia).

Other incentives for homeowners include among other things:

1) property tax exemption if you live in Anne Arundel county when you have installed system i.e. solar water heater, solar space heat and photovoltaics (PV),

2) clean energy production credit (personal) that offers Marylanders a state income tax credit for electricity generated by 'qualified sources (keyword!)' of 0.85 cents per kWh and 0.50 cents per kWh for electricity generated from co-firing qualified sources with coal (mix sources),

3) state rebate program for geothermal heat pumps of up to $3,000 (residential) and $10,000 (commercial),

4) property tax exemption for solar water heat and photovoltaics,

5) solar energy grant program of up to $3,000 for solar water heater and $2,500 per kWh up to $10,000 for photovoltaics,

6) statewide special property assessment for solar heating and cooling systems,

and more incentives here.

Montgomery county has also clean energy rewards program which gives rebate to homeowners if they switch to clean energy of up with rebates of up to 1 cent/kWh for residential with max. limit of 20,000 kWh/year. Basically you're buying REC (renewable energy credit - and this deserves another post).

::

Note: We'll continue with Virginia tomorrow.

Resources and links:

Retail electric restructuring in DC

Energy Facts and Programs + Maryland Energy Administration

DSIRE

Feed-in-Tariff Introduces in Congress

Finally, feed-in-tariff made its way to Congress! A lone member of the House, Rep. Jay Inslee (D-WA), introduces a piece of legislation in support of feed-in-tariff. Renewable Energy Wolrd reports, that the 'Renewable Energy Jobs and Security Act' has three main tenets: a guarantee to interconnect to renewables to the grid with uniform standard; mandatory purchase requirement through long-term contracts with fixed tariffs; and a rate recovery through a regional cost sharing and systems benefit charge.

So far, Inslee able to get three co-sponsors for the legislation. He needs more House members to join the bandwagon.

There's no better way to push renewable energy production than FIT now. I meant, like in Virginia, Dominion Power just received the permit to build a massive 'coal fired plant' in Wise County from the state and we (payers) have to chip in for it? Come on. It is 'no' brainer. If we have to pay for another power plant (for the sake of it), why can we offer clean, renewable, alternative and progressive plan like FIT.

For success, you don't have to look far. Look at Germany's success. (Feed-in-tariff is the piece of legislation that help catapulted Germany to become the leader in renewables)

The Germans introduced the FIT in 1999 and tweaked it in 2004, since which time things have gone mad. FITs have now been adopted in 19 EU countries, and 47 worldwide, but not in Britain. German renewables firms are now world beaters and the German economy has been strengthened, not weakened, by a rush into renewables. [via Guardian]

In the US, there are six states that have introduced feed-in-tariff so far: California, Illinois, Michigan, Minnesota, Rhode Island, and Hawaii - with eight others tinkering about introducing its own incentive pricing.

Obviously, in an election year, this bill might or might not gain traction. It all depends on how much support will it get. So stay tuned (for further development).

:: Renewable Energy Jobs and Security Act [.pdf]

Dream On

SOME alternative energy execs had this dream: Oil crunch! At $135 record price, it is not hard for one to think that one day people will wake up, ditch their cars and walk. I do. Thus, oil demand tumbles. They're thinking about the potential, the growth explosion that eventually will take place for renewables.

Since it's subscription base, here is a gist of the story on Reuters.

While most companies are watching soaring oil prices with an eye on rising costs some renewable energy executives are licking their lips at the prospect of  "spectacular" growth.

Oil sped above $135 to a new record for a third straight day on Thursday. That and new forecasts of a higher floor price has some alternative energy suppliers dreaming of an era of peak oil when global crude output starts to fall.

--
Analysts and industry officials have predicted for decades that the world's oil output may soon plateau but oil companies have downplayed the "peak oil" theory. BP data suggest the world has proven oil reserves of 1.2 trillion barrels, enough to sustain current output for 40 years.

Ain't happening anytime soon. Here is the thing. So long as oil cos. have their hands deep on it, it's hard to give up the sweet smell of oil.

Maryland Passes Energy Efficiency Initiative

Maryland nails it. They understand the very important nature of energy efficiency. Because there's been so much talk out there on other alternative source of energy like solar and wind, but it left out the-not-sexy energy efficiency.

Maryland General Assembly passed Gov. O'Malley energy legislative package namely - EmPower Energy Efficiency Act of 2008 (HB 374 and SB 205). The energy  efficiency initiative when fully implemented will be the most ambitious energy-efficiency legislation in the nation: $5.7B in electricity savings, prevent the need to build 3 large power plants, avoid using 10 billion kWh in 2015, and add 8,000 new 'green collar' jobs.

The two most important bills moving through the Assembly, via Renewable Energy World.   

The first bill makes the state's goal to reduce per capita electricity consumption 15% by 2015. This target, known as an energy-efficiency resource standard, will require the state's electric utilities to achieve 10% savings by 2015 and the Maryland Energy Administration (MEA) to oversee programs to meet the remaining 5%.

The second bill establishes a Strategic Energy Investment Fund supported by the proceeds of upcoming auctions of the state's carbon dioxide emission allowances. About half of this new fund, which is expected to reach US $100 million or more per year, is to be spent on programs to reduce energy consumption.

This legislative package also include requirement for energy-efficient and environmentally friendly design and material for new state buildings, public schools and doubles the requirement of the state's renewable portfolio standard (RPS) to 20% by 2022.

:: view Maryland Energy Investment Fund - RGGI [pdf]

Thinking FIT (feed-in-tariff)

Germany has proven the effectiveness of feed-in-tariffs model for renewable economix to work without causing some serious ding in people's out-of-pocket expenses. Look at the figures, it speak for itself. Via World Future Council.

• 214,000 new jobs created,
• 97 million tonnes of CO2 emissions avoided in 2006 through renewables,
• 11.8% share of total gross electricity consumption from renewable sources in 2006,
• 21.6 billion euros total turnover in 2006 (building and operation),
• 8.7 billion euros investments per year
• reduction of around 5.4 euros worth of environmental damage per household per month

The kicker: Shared costs among users. The total costs for all the achievements - only around 1.5 euros (or approximately $3) or a cup of Starbucks' latte - per household per month!

image: World Future Council

Herman Scheer, member of German's Bundestag (he is the reason why Germany's renewable productions went through the roof!) said, "...that there are 3 things need to happen for a feed-in-tariff to work." (video clip on 'Payback Time' for more info for benefits on feed-in-tariffs).

1. Guarantee access regardless the size supplier business (everyone included)
2. Guarantee price
3. No limitation for production

Let's see the kind of policies working to promote the growth of renewable energy in the US. The three policies currently at work at the Federal level come in some variation of 1) capital subsidies, grants or rebates 2) investment or other tax credits and 3) energy production payments or tax credits. The tax credit (subsidy) is the big thing for renewables. That's why, when I was at WIREC 2008, I heard from almost all of the conference panelists yacking about the extension.

For one, we don't have a 'national' renewable portfolio standards as of yet here. There is a US Senate bill S.2642 in the making introduced by Sens. Klobuchar, Snowe and Cantwell in the finance committee. This bill (if survives the floor) has the provisions we've been waiting for: national energy renewable standards , extension of tax credit and energy tax credits. In the meantime, a number of states are leading the way in renewable portfolio standards. Twenty-nine US states (and the District of Columbia) have renewable portfolio standards or some might call it 'quota' policies. Most RPS targets between 5-20 percent of a state's energy mix have to come from renewable sources such as wind, solar, biomass, etc. Each state has different renewable energy policies. For info on states that have RPS, check out DSIRE site, here.

In our backyard (DC-MD-VA): Maryland calls for 2% solar in 2022, while DC targets a variety of renewable sources 11% by 2022, and Virginia is voluntary (you know how it goes with voluntary). Good news - Virginia opens a docket for new interconnection rule. Let's see what happens after that.

There is no doubt that for now RPS is the kind of policy which will promote the growth in commercial renewable energy market.

According to REN 21, the two most important policy development happened at the Federal level in 2006-2007 was PTC (production tax credit) and national open access transmission rule, in which "[T]he rule creates a new category of transmission service, called 'conditional firm' service, which recognizes the intermittent nature of some renewable sources. The imbalance charges, which reflect differences between scheduled and actual energy, must account for renewables' limited ability to forecast or control output." You can't forecast the output of energy from renewable sources like sun or wind, unless it is coming from 24/7 sources (like waste, earth or water).

Challenges to get FIT going in the US has something to do with states' policies on net metering and interconnection rule. Net metering is somewhat feed-in-tariffs lite. The net metering thing has to be more aggressive to equal the power of FIT.

A few observations (without going too much on the specifics).

• If the US want to see explosive growth in the renewable energy, it has to include participation from small or independent suppliers (home owners, condo associations parking lots?). It's not enough to only help large RE suppliers to grow. The tipping point for renewable energy massive explosion in growth lies in the feed-in-tariffs.
• People always talk about how-much-is-going-to-cost-me? The cost (or burden) for implementation of feed-in-tariffs is shared among all utility users. Shared responsibility that means no need for tax increases! What a concept. The key is education by the masses.
• Solution to spur the US economy to be competitive in the world again should include this kind of master plan: Ties in feed-in-tariffs with other policies at the federal and states levels, such as PTC, cap-and-trade (hold your breath on this), RPS, regional climate initiatives and voluntary carbon market. The potential is there. Think about the number of jobs created in the US. All those closed manufacturing shops.. can open their doors again for business in renewables! Hello?

Like Herman Scheer said, "guarantee access and price" to reach the tipping point in domestic renewable production. The argumentation for this to work comes down to the 'political will' of our legislators. Because 'they' have the power to make it happen.

Sources: Feed-in-Tariffs Boosting Energy for Our Future, REN21 2007: Global Status Report.

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