Berkeley Financing Program Brings Renewable Energy Home
With the potential to become one of the nation's fastest spreading local renewable energy programs, the Berkeley city council last night voted unanimously to use the city's bonding authority to finance rooftop solar on residential properties. The city will pay the upfront costs and property owners will repay those costs over 20 years through a fixed amount, special assessment on their property tax bills. If a person moves, the solar system will stay at the property and the new owners will assume the remaining years of the assessment.
The next 20 years could generate as much as $1 trillion in new renewable energy investment in rural America. This new Ford Foundation-sponsored study by John Farrell and David Morris provides a policy roadmap for states and the federal government that would encourage modest-sized renewable energy facilities and local ownership. 
ILSR vice president, David Morris, responds to Al Gore's recent speech proposing a 10 year effort to move the United States to a 100% renewable energy electric system to address three major crises: the weak economy, catastrophic climate change and the dire national security problems inherent in our dependence on imported oil. Morris says that Gore got got two out of three right. A crash renewable electricity initiative would provide an immediate boost to our economy and could slow climate change, but it would do little to enhance our national security. Gore misses the key element of moving our transportation system to electricity. 
A study released this week in Minnesota shows there is an abundant opportunity for new community-based energy development (C-BED) throughout Minnesota. The study’s conclusions affirm those of a previous utility study that found that significant amounts of wind energy can be injected into the existing transmission system at costs far lower than building new transmission lines to more distant wind farms. 
Can residential rooftop solar compete with new utility-scale concentrating solar electric plants? Only if federal and state incentives are amended to level the playing field. This May 2008 report explores the economics of solar PV and concentrating solar and shows how local ownership is hindered unless government solar incentives change. 
A wind turbine can power up to 600 homes, but 600 homeowners can't get together to own a wind turbine. Why? Because federal law makes local ownership virtually impossible. The federal wind-energy incentives -- up for renewal this year -- discriminate against local ownership and favor absentee ownership. They also severely restrict the number of investors who can finance wind-energy generators.
A debate between advocates of distributed and centralized renewable energy systems is just beginning. It is overdue. Consideration of scale in renewable energy systems has been delayed in part because we first had to bring solar energy in all its forms to market, and in part because the distributed nature of renewable energy resources seemed inexorably to lead to their being harnessed in distributed fashion. Only recently have we begun to realize that a renewable energy future does not inevitably mean a decentralized energy future. 
A typical 2 megawatt wind turbine provides enough electricity for around 600 average American homes. So why is it nearly impossible for those same 600 households to pool their resources and own a wind turbine? A new policy brief by the Institute for Local Self-Reliance (ILSR) shows how removing two barriers to owning and investing in renewable energy projects can pave the way for true energy independence.
Regulations coming into force in April and May 2008 will bring a wealth of energy and environmental information to homebuyers in the United Kingdom. Potential buyers will get an Energy Performance Certificate and a mandatory comparison of the new home to the requirements contained in the UK's Code for Sustainable Homes as part of home information packets (HIPs) prior to purchasing the home. 
Updating a pathbreaking 2003 report, ILSR's March 2008 report, 
Last month the Internal Revenue Service today announced 312 projects that are now eligible to be financed with tax-credit bonds under the Clean Renewable Energy Bonds (CREB) program. Approximately, $477 million was available for this round of applications. The CREB program was created by the Energy Tax Incentives Act of 2005 and expanded under the Tax Relief and Health Care Act of 2006.
A new policy brief from the Institute for Local Self-Reliance concludes that universal dividends are a critically important tool to create the political will and public acceptance for a carbon cap. Universal dividends have the potential to hold harmless a large segment of consumers while we move to a low-carbon economy. Moreover, the universal dividend honors the principle that the sky belongs to all of us equally. Private investment in clean and efficient technologies will be driven by a carbon cap that leads to steady reductions over time of GHG emissions and carbon-based fuels.
Several European countries and the Canadian province of Ontario have recently adopted feed-in tariffs, a mandated, long-term premium price for renewable energy paid by the local utility company to renewable energy producers. A new study by the Institute for Local Self-Reliance (ILSR) shows how feed-in tariffs could turbocharge Minnesota’s renewable electricity standard, reduce costs, and spread the economic benefits across the state.
A new kind of hybrid uses less gas and more electricity. All-electric cars are already here. What will this mean for the road trip of the future? ILSR's David Morris plugs in and gives us a little history lesson of the Plug-in Hybrid Electric Vehicle (PHEV).
A survey in northern California reveals a wide range of fees assessed to homeowners that install on-site solar power systems. The Sierra Club's Loma Prieta, S.F. Bay and Redwood chapters compared the charges and fees in 131 municipalities. The report recommends on that a $300 fee is an appropriate ceiling level that would comply with state law. 
This column by ILSR's John Farrell argues that in their desire to expand renewable-energy production, activists and policymakers focus almost entirely on “more,” rather than “better.” Twenty-seven states have renewable-energy standards, requiring utilities to produce or sell 10, 20, even 30 percent of electricity from renewable sources in the next two decades. The U.S. House just passed an energy bill with a national renewable-energy standard and a drastically higher biofuels mandate. This tunnel vision on “more” overlooks the substantial benefits that local ownership can bring to our energy future. 
Through and attractive pricing arrangement, the Woodruff Electric Cooperative has enticed nearly 85 percent of area farmers to allow their irrigation systems to be shut off when electricity demand is high. The program certainly benefits the participating farmers but the other member owners also save since the cooperative can reduce its need to purchase expensive peak power during critical times of the year. 
Congress and most state legislatures have or are developing renewable energy policies with a single objective: get more renewables. Our new study, Wind and Ethanol: Economies and Diseconomies of Scale, finds that this single minded focus ignores the potential economic benefits from locally owned and more modestly scaled facilities. The focus should on better renewable energy projects not simply more.
The American Wind Energy Association (AWEA) recently released the results from their Small Wind Turbine Global Market Study, reporting that high up –front costs are preventing small wind systems from reaching their growth potential. The small wind industry has been experiencing annual growth in the range of 14-25% since 1985. AWEA says that Increased federal incentives could double the growth rate. 
The Interstate Renewable Energy Council (IREC) has issued the 5th edition of its Connecting to the Grid guide. The report and survey addresses new and lingering interconnection issues relevant to all distributed generation (DG) technologies. The guide hopes to assist state regulators and other government officials, as well as utility representatives, DG stakeholders and consumers interested in the development of state-level interconnection standards.
This column by David Morris and Peter Barnes argues for a three pronged strategy on climate protection. First, a comprehensive emission cap. Second, a carbon auction for suppliers of carbon fuels. And lastly, a universal and equal distribution of revenues from that sale. Three keys to an effective and equitable strategy to reduce global warming. 
On June 28, 2007, the Illinois Senate and House approved a joint resolution that adopts a policy that calls for carbon-neutral state buildings by 2030. They are the first state to address this particular green building initiative, a derivative of the Architecture 2030 Challenge, through a legislature. New Mexico's Governor Bill Richardson adopted a similar but weaker policy by executive order in January of 2006.
Laws recently passed by the states of Washington and Montana are creating greenhouse gas emissions standards for new power plants. The two states are relying on different approaches but each has C02 reduction from future coal plants as the primary goal. 
San Francisco's Mayor has approved a local power plan that could achieve a 51 percent renewable energy portfolio by 2017. The Community Choice Aggregation (CCA) plan creates an innovative new financial structure using municipal revenue bonds ("H Bonds") to make San Francisco energy independent and finance construction of a 360 megawatt solar power network and make investments in energy conservation efforts.
On May 7th, Washington's Governor signed a new law that effectively reverses a January 2007 Washington Supreme Court decision. The State Supreme Court ruled 5-4 that the Seattle municipal utility could not purchase carbon offsets with ratepayer money. This case originated from ratepayers that were protesting Seattle City Light's purchases of carbon offsets to counter the utility's greenhouse gas emissions. 
In mid-May, Los Angeles' Mayor announced a new climate change action plan that calls for the LA municipal utility to increase its renewable energy portfolio to reach 35 percent by 2020. This in combination with about 50 other proposed actions will work to reduce GHG emissions in the city of angels to 35 percent below 1990 levels by 2030. 
Responding to concerns and evidence put forward by solar power companies and advocates, Governor Schwarznegger has pledged to fix a flaw in California's Solar Initiative that has caused a reported 78 percent drop off in proposed photovoltaic installations in the state. A new law that took effect on January 1, 2007, requires interconnected solar projects that receive state incentives to accept "time of use" (TOU) electricity tariffs that can potentially add significant costs to the homeowner or business if their solar system's capacity can't cover all their electricity consumption.
In early April 2007, Waverly Light and Power's Board of Trustees approved a new residential rate structure designed to encourage energy conservation by charging customers higher rates as more electricity is used. This "inverted" rate is going into effect only during four summer months beginning July 1, 2007.
In January 2007, the California Public Utilities Commission (PUC) adopted an interim Greenhouse Gas (GHG) Emissions Performance Standard (EPS) in an effort to help mitigate climate change. The standard is a facility-based emissions standard requiring that all new long-term commitments for baseload generation to serve California consumers be with power plants that have emissions no greater than a combined cycle gas turbine plant. 
This March 2007 report from the California Energy Commission provides a nice state-based, how-to perspective on policy options to increase the use of small scale DG along with larger combined heat and power projects. California's roadmap is designed to increase the penetration rate of CHP and DG from 17 percent of 2004 peak capacity (56,435 MW) to over 25 percent by 2020 (expected peak demand of 70,776 MW). 
On April 2nd, the Internal Revenue Service issued a notice soliciting applicants for the next round of Clean Renewable Energy Bonds allocations. The CREBs program provides governmental entities, municipal and cooperatively owned utilities an incentive to develop renewable energy projects. Ultimately, an interest free financing tool, CREBs are a substitute for renewable energy production tax incentives that these entities are not able to use because of their tax exempt status. Applications must be filed by July 13, 2007.
A recent speech by ILSR Vice President, David Morris, focuses on ways to ensure that our nation's move to have 25 percent of our energy consumption come from renewable energy by 2025 will maximize the benefits to the communities in which these fuels are produced and harvested. 
As of today, 111 college Presidents have signed on to an initiative, The American College & University Presidents Climate Commitment, that commits their campuses to become carbon neutral. Second Nature, ecoAmerica and the Association for the Advancement of Sustainability in Higher Education (AASHE) initiated the campaign to leverage the unique responsibility and leadership that institutions of higher education can have in addressing global warming at the local level.
The Energy Policy Act of 2005 required that DOE, in consultation with the Federal Energy Regulatory Commission (FERC), conduct a study of the potential benefits of cogeneration and small power production. The final report, The Potential Benefits of Distributed Generation and Rate Related Issues that May Impede Their Expansion, is now open for public comment until April 2, 2007.
This year offers a rare historical opportunity for our nation to marry energy and agricultural policy objectives. The new 110th Congress will be revisiting the 2005 energy bill and reauthorizing the 2002 farm bill, giving congressional leaders the chance to link increased rural prosperity and energy security. Two reports released today will be useful guides.
A recent column by David Morris published on Alternet provides a review of George Monbiot's new book Heat: How to Stop the Planet from Burning. The book picks up where Al Gore left off on global warming, offering real solutions without sugar-coating the large personal sacrifices they will require.
The Interstate Renewable Energy Council (IREC), a group that has long been been tracking state-level developments related to net metering and distributed generation interconnection activities, has released its first monthly summary of state-level activities required under the federal Energy Policy Act of 2005 (EPAct 2005).
A modest tax incentive proposal in Boulder, Colorado, creates a solar renewable energy fund from local sales tax revenues on solar energy equipment. About one third of the revenues will go for partial sales tax rebates and the other two-thirds will go to upgrade and fund new solar projects in the city at low income and nonprofit organization sites.
In September 2006, the Whatcom County Council (Washington) voted to use $62,000 out of $85,000 in projected energy efficiency savings for purchasing a block of renewable energy for a $0.01 per kWh premium. The renewable energy credits from Puget Sound Energy will cover 100 percent of the electricity used in county operations in 2007. 
The Arizona Corporation Commission voted yesterday on the final rules for implementing a 15 percent renewable energy standard by 2025. The rules state that 30 percent of the renewable standard is to be derived from distributed energy resources – small-scale technologies located close to where energy is used, such as roof-top photovoltaic projects or solar hot water projects.
Citizens in cities and states across the country will be casting their votes on some interesting energy issues on November 7th. Ballot initiatives ranging from a renewable energy portfolio requirement in Grand Forks, ND to increasing taxes to fund global warming programs in Seattle, WA will give citizens an opportunity to decide directly which path their communities will take. Democratic energy in action!
The fact that a small portion of Public Service Company of Colorado's (Xcel Energy) ratepayers pay a "green premium" on their electric bills to support 60 MW of wind energy while 1000 MW of wind power costs will be spread over all customers is deemed to make "little sense." The PUC staff have proposed the elimination of Xcel's Windsource green power program and for the program's cost to be absorbed by the entire ratebase.
The Freedom Tower and other buildings on the redeveloped World Trade Center site will be partially powered from a suite of on-site fuel cell power plants totalling 4.8 MW. According to NY Governor Pataki, the buildings will meet LEED's gold standard for green buildings. 
Finding that wind power provides their customers and business with financial benefits rather than increased costs, Nodak Electric Cooperative announced that they have dropped their green pricing premium altogether for the 650 customers who signed up to purchase renewable energy.
In what is billed as the largest green power purchase yet by a state government, Pennsylvania has announced a minimum two-year commitment to buy enough renewable energy credits to cover about 20 percent of the state's internal electricity use. 
California has moved renewable energy and environmental responsibility to new levels with the passage of a solar power bill and two pieces of greenhouse gas emissions legislation. The solar power law raises net metering ceilings for utilities by five times from their previous levels. One climate bill will establish a cap on greenhouse gas emissions in California and could lead other states to take a similar step. The second climate bill establishes a greenhouse gas performance standard applicable to baseload power plants selling to the California market. 
The San Francisco Public Utilities Commission (SFPUC) has announced a plan to create San Francisco’s first neighborhood powered entirely by clean, renewable energy. The community would be on a 93-acre parcel at a site of the former Hunters Point Naval Shipyard, where Lennar/BVHP is about to begin construction of more than 1,600 new residential units and 300,000 square feet of commercial and retail space. 
The New York State Energy Research and Development Authority (NYSERDA) has issued guidelines for vendors to obtain funding under the New York State Plug-in Hybrid Electric Vehicle (PHEV) Technology Initiative. The goal of the program is to accelerate the conversion of the state's hybrid vehicle fleet (500-600 vehicles) into plug-in hybrids. 
London Mayor, Ken Livingstone, wants there to be at least one carbon neutral development project in each of the city's 32 boroughs by 2010. To that end, the London Energy Partnership has released an instructive paper titled, Toward Zero Carbon Developments - Supportive Information for Boroughs, that will provide the advice necessary to make it easier for the goal to be met and exceeded.
After passing referendums, six small communities in Iowa have filed regulatory petitions with the Iowa Utilities Board to drop their current electric supplier and form municipally-owned electric utilities. They will likely face strong opposition from Interstate Power and Light.
After supporters gathered more than 1.1 million signatures, California voters will see an interesting measure on the November 7, 2006, ballot. The "Clean Alternative Energy Act Initiative" would assess a 1.5-6.0 percent tax on oil companies operating in California to fund alternative fuels and renewable energy development. 
All UK central government departments and their agencies will be carbon neutral within six years in an attempt to model environmentally sustainable behavior to business and consumers. Once carbon neutrality is reached, the government has set an additional target to reduce carbon emissions from government offices by 30 percent by the year 2020.
Starting in June 2007, home buyers in England will be able to look at an energy performance certificate for the property before they purchase it. The assessment will advise consumers on which energy measures - ranging from insulation to solar panels - could cut carbon emissions from their home and improve their energy rating. 
States and consumers can benefit dramatically by enacting appliance and equipment efficiency standards that will save more energy than recently enacted Federal standards. A recent study provides the roadmap and the estimates on the impacts that new standards will have for each state.
The Utility Wind Integration Group (UWIG) has released of an assessment on the impact and issues related to the integration of wind energy into existing utility power systems. The key conclusion from the group is that they don't see any fundamental technical barriers to wind energy penetrations of up to 20 percent of system peak demand.
Under a compromise agreement, legislation was passed into law in May 2006 that requires Minnesota's largest coal-fired power plants to cut mercury emissions by 90 percent by 2015. Utilities were brought on board by allowing immediate recovery from ratepayers the cost of installing the necessary pollution control equipment.
With a stroke of the pen, Gov. Schwarzenegger signed an executive order (S-06-06) that establishes in-state production goals for ethanol - from 5 percent today to 75 percent by 2050. The order also requires in-state biomass electricity to meet 20 percent of the state's renewable energy requirements in the coming years.
The province of Ontario has directed two agencies to implement and develop the details and contracts for a Standard Offer Program that will make it easier and more cost-effective for businesses and entrepreneurs to sell power to the grid by setting a fixed price for small generation projects that use renewable energy.
Oregon's Governor Ted Kulongoski told the State Sustainability Board recently that he wants new renewable electricity in Oregon to supply 100 percent of the state governments electrical needs by 2010. This new plan replaces the previous 100 percent goal that was expected to be met by 2025.