Archive of State Stories

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.

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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.

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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.

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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.

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Updating a pathbreaking 2003 report, ILSR's March 2008 report, Driving Our Way to Energy Independence, describes how commercially available technologies today could transform our petroleum powered transportation system into one powered by electricity and biofuels. Provisions in the recently passed Energy Act could accelerate that transformation. With the adoption of complementary policies, the revolution in our transportation sector can generate an equally profound revolution in our electricity sector. Hundreds of thousands of locally owned wind turbines and solar electric arrays supplying flexible fueled, plug-in hybrid vehicles can allow tens of millions of Americans to become energy producers not just energy consumers.

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A new policy brief from Institute for Local Self Reliance criticizes the authors of two recent studies published in Science for advancing a conclusion not supported by their own studies. ILSR's paper notes that the vast majority of today’s ethanol production comes from corn cultivated on land that has been in corn production for generations. Since little new land has come into production, either directly or indirectly, the current use of ethanol clearly reduces greenhouse gas emissions.

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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.

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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.

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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.

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The California Solar Water Heating and Efficiency Act of 2007 (AB 1470), creates a 10-year program aimed at installing 200,000 solar water heaters in homes and businesses using a $250 million fund. The law authorizes the California Energy Commission to “impose the surcharge at a level that is necessary to meet the goal ...” The surcharge will be applied to natural gas consumption on a per Btu basis and is estimated that it will cost the average residential natural gas user an additional 13 cents per month. The bill was signed into law on October 12, 2007.

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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.

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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.

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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.

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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.

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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.

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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.

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In late April 2007, a new policy was put in place in Massachusetts that requires certain developers to "quantify the greenhouse gas (GHG) emissions generated by proposed projects and identify measures to avoid, minimize, or mitigate such emissions" The policy applies to developments requiring an Environmental Impact Report (EIR) that need an air quality permit, receive state funding or generate a significant number of new vehicle trips.

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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.

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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.

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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.

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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).

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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.

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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.

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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.

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Our January 2007 report looks at ten of the most visible and successful cities involved in global warming solutions and finds that reducing GHG emissions below 1990 levels will be a major challenge. Many cities will likely not meet their goals unless complementary state and federal policies are put in place very soon.

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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).

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Last week, the Internal Revenue Service (IRS) announced that 610 projects have been given the authority to issue Clean Renewable Energy Bonds (CREBs) to help finance renewable energy development across the country. State and local governments and municipal and cooperative utilities were eligible to apply.

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Last night, across the county, citizens' cast their votes on ballot initiatives ranging from renewable energy portfolio requirements to increasing taxes to fund global warming programs. The results were mixed.

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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.

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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!

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New York Governor George Pataki has signed legislation (Senate Bill 8349) that will limit the use of eminent domain by electric and gas corporations.

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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.

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Wisconsin Governor Jim Doyle announced a pilot program to demonstrate that four state university campuses can make their campuses completely energy independent within the next five years. University of Wisconsin - Green Bay, UW-Oshkosh, UW-River Falls and UW-Stevens Point will take part.

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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.

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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.

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Beginning January 1, 2007, a ruling by the California PUC establishes performance-based incentives (PBI) of up to 50 cents/kilowatt-hour over five years for solar energy systems greater than 100 kilowatts in size installed in businesses and other large facilities. For systems smaller than 100 kilowatts, incentives will be based on each system's estimated future performance although projects can opt-in for PBI payments.

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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.

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Hear ILSR vice president David Morris talking to Inside Renewable Energy on the successful campaign for a new law in Minnesota that requires the state to give priority to plug-in hybrid vehicles and to take steps toward establishing a flexible fuel vehicle industry.

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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.

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ILSR's David Morris believes that U.S. government programs supporting ethanol need to be refocused on farmers and local ownership and be broadened to include other renewable fuels. His opinion piece in today's New York Times is expanded here in a paper titled, The New Ethanol Future Demands a New Public Policy.

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A new law puts Minnesota on the path towards reducing its reliance on oil by embracing a transportation strategy based on flexible-fueled, plug-in hybrid electric vehicles (PHEVs).

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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.

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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.

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In two recent decisions, the Connecticut Department of Utility Control (DPUC) has provided a selection of incentives to encourage electricity customers to install on-site distributed generation projects. Incentives include lower back-up power charges, lower natural gas fuel charges and direct grants and payments to cover installation costs.

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Iowa's Governor has indicated that he will sign legislation passed this week calling for Iowa to have renewable fuels - ethanol and biodiesel - meet 25 percent of the state's motor fuel needs by 2020. The new renewable fuels standard relies on a 10 percent ethanol blends and a rapid expansion of E-85 (85% ethanol) infrastructure to get to the goal.

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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 government�s electrical needs by 2010. This new plan replaces the previous 100 percent goal that was expected to be met by 2025.

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The carbohydrate economy could transform agriculture as well as energy, reviving producer co-ops, and giving farmers a hedge against voilatile commodity prices. For the first time in 60 years, the carbohydrate economy is back on the public-policy agenda. It is an exciting historical opportunity, but one we should approach with deliberation and foresight.

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The Arizona Corporation Commission (ACC) has adopted rules to implement a new renewable energy standard requiring 15 percent renewables by 2025. The ACC voted to require that 30% of the renewable requirement in years 2011 and beyond must be met by local on-site renewable energy projects installed by homes and businesses.

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Audio from the second in a series of national teleconferences on the Clean Renewable Energy Bond (CREB) program is now available and the IRS has issued additional guidelines. The CREB program authorizes the issuance of up to $800 million in "tax credit" bonds by electric cooperatives, public power authorities, units of state and local government and tribal authorities for financing renewable energy projects.

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A recent column by Democratic Energy's editor, John Bailey, outlines how potential building projects in a $900 million bonding bill in Minnesota should be constructed so that there is no net increase in greenhouse gas emissions.

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Seven northeastern states have signed a Memorandum of Understanding (MOU) to implement a Regional Greenhouse Gas Initiative (RGGI). The MOU outlines the program to cap greenhouse gas emissions through 2014 and reduce emissions by 10 percent by 2019, including the framework for a Model Rule to be released in draft form in 90 days.

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Yesterday, the California Public Utilities Commission approved the California Solar Initiative, a comprehensive proposal that provides an additional $2.9 billion in incentives toward 3,000 MW of solar development over the next 11 years.

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The New Mexico Public Regulatory Commission (PRC) has ordered the state's largest utility, PNM, to pay 13 cents/kWh for the "green attributes" of interconnected solar photovoltaic systems under 10 kW. The program becomes effective as of March 2006 and has funding available for about 1.2 MW worth of solar projects over the life of the program.

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The California Public Utilities Commission released details of a $3.2-billion plan to generate 3,000 MWs of solar power in the state over the next 11 years. The initiative would cost the average residential customer about $7.00 per year. Incentives would be decreased from about $400 million in 2006 to just over $100 million in 2016.

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The Connecticut Clean Energy Fund has announced that it is accepting applications for its new on-site renewable distributed generation program. About $21 million is available to reduce the cost of clean, DG projects at commercial, industrial and institutional facilities.

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The California Public Utilities Commission held a workshop on November 17, 2005, to provide a summary of the findings and methodology used in the "Achieving a 33 Percent Renewable Energy Target" draft report. The CPUC is now seeking comments on the plan from interested parties.

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Ontario's Premier, Dalton McGuinty, has directed the Ontario Power Authority and the Ontario Energy Board to prepare a standard offer approach by the end of the year for clean distributed generation. The new rules will be designed to encourage homeowners, farmers, schools and community co-ops to build renewable energy systems and sell excess clean electricity back to the grid at standard pricing.

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The multi-year legislative effort to establish the nation's most agressive solar power initiative was killed in committee on the last day of California's legislative session.

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The Oregon Department of Energy, in an effort to help local and county governments, has drafted a model ordinance for siting energy projects that are not subject to state-level review. Although still a work in progress, the model ordinance's concepts could serve the interests of cities and counties nationwide.

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More than a dozen states along with New York City have banned together and filed a lawsuit against the U.S. Department of Energy for falling 6-13 years behind in adopting efficiency standards that were mandated by Congress.

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The State of New York is the latest of a number of states that have moved beyond Federal requirements for energy efficiency by establishing standards for a variety of everyday items.

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Legislation in Texas has doubled the state's commitment to renewable energy development and a report on California's efforts indicates progress on meet its 20 percent renewable portfolio standard (RPS) years earlier than required.

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The Connecticut legislature has sent the Governor a bill that calls for on-site distributed generation to meet a growing portion of the state's electricity supply.

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Since Massachusetts established their interconnection standards for distributed generation projects in February 2004, 105 projects have been approved and about 40 others are under review.

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A new analysis from the Institute for Local Self-Reliance concludes that the Minnesota 1994 biomass mandate, rather than jump-starting a new industry using new energy crops, has become little more than a very costly waste-to-energy program.

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Under a new law, utilities in Nevada will now be able to count electricity savings from energy conservation programs as meeting the state's renewable energy portfolio standard (RPS).

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Residents and businesses in Washington state will now have strong incentives to install on-site energy projects and purchase equipment built by in-state manufacturers.

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Minnesota's Governor signed a bill into law that could result in a requirement that the state's gasoline supplies contain 20 percent ethanol (E-20). If the rules go into effect, it would double the current 10 percent ethanol blends that are now standard throughout the state.

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A report released by the Energy Foundation and Navigant Consulting, Inc. describes the vast market potential for rooftop solar photovoltaic systems (PV) on a state-by-state basis.

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By executive order, Iowa's Governor has established a renewable portfolio standard for state operations that will lean heavily on in-state renewable energy sources.

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We received a question on the whether or not states like New Jersey have authority to enact more stringent rules on mercury emissions from power plants than what the Environmental Protection Agency (EPA) issued recently. Dr. Dave on our staff provides the answer.

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Under a law enacted in 2002, communities in California were alllowed to aggregate electric utility customers and take control over their electric system. Three years later, implementation plans are being developed or under consideration by about two dozen California cities.

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Governor Schwarzenegger has put his muscle behind a new rule to put solar electric systems on a million rootops over the next 13 years.

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An alternative to traditional production payments and tax incentives has been introduced in Minnesota as a way to support renewable energy development.

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California's Public Interest Energy (PIER) Program has received a final report that provides an analysis of the impacts, costs and timelines for distributed generation interconnection in California.

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If California meets its solar electric power goals they will overwhelmingly beat the expected photovoltaic (PV) installations in the six states (and Washington DC) that have solar power requirements.

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A recent report done for the Vote Solar Initiative shows that on-peak solar electricity has a value of between 23 and 35 cents per kilowatt-hour.

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California's largest electric utilities have been ordered to include CO2 costs between $8-25 per ton when evaluating the economics of future energy resource additions.

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