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Energy Update: February 2, 2018

In the States

AZ – A member of the Arizona Corporation Commission (ACC) proposed a “clean energy overhaul that would put the state at the front of the pack” among other clean energy-focused states. Developed by ACC member Andrew Tobin, the Energy Modernization Plan seeks an 80 percent clean energy target by 2050 in addition to a 3,000 megawatt energy storage target for 2030 – both goals, in essence, would put Arizona ahead of California and New York, which currently lead all states in terms of renewable energy and storage targets. Tobin has asked for the ACC to consider his plan during their next meeting on February 6. "We’re not trying to get on the train; we're trying to be the engine in the train," said Tobin. "This is Western people doing things and setting lofty goals and reaching them." If Tobin’s plan is voted on and accepted by the ACC, staff will begin a formal year-long rulemaking and stakeholder engagement process. AZ regulator proposes biggest storage, clean energy targets yetGTM


IA – NextEra Energy, a Florida-based company, announced it may shutter Iowa’s only nuclear power plant by the end of 2025. NextEra officials believes it main customer, Alliant Energy, will not renew its purchasing contract from NextEra’s Duane Arnold Energy Center in Palo, which is located northwest of Cedar Rapids. Alliant’s current contract goes through 2025, though the Energy Center is licensed to operate until 2034. The Energy Center current employs 600 people and started operations in 1975. “The cost of wind energy right now has really dropped as well as the cost of natural gas to be at levels where they are competitive and have never been before. We are continuing to pursue different options for our customers to make sure that they get the best value,” said an Alliant spokesman. Iowa nuclear plant may close in 2025The Gazette


NJ – Governor Phil Murphy announced his plans for New Jersey to rejoin the Regional Greenhouse Gas Initiative (RGGI), a regional cap-and-trade program that includes nine northeast states. The Governor signed an executive order to rejoin the pact after former Governor Chris Christie exited RGGI in 2011. The executive order directs state officials to “immediately begin negotiations with RGGI member states, and the Department of Environmental Protection will start determining the rules and guidelines needed to rejoin RGGI within 30 days.” According to the Governor’s office, the state lost almost $300 million in revenue by not participating in RGGI. “Pulling out of RGGI slowed down progress on lowering emissions and has cost New Jerseyans millions of dollars,” said Governor Murphy, “[funds] that could have been used to increase energy efficiency and improve air quality in our communities.” Murphy direct NJ to rejoin RGGIThe Observer


NY – Governor Andrew Cuomo released his plan to develop a $6 billion offshore wind industry. The Governor, by 2030, would like New York to have ocean-based wind farms producing 2.4 gigawatts of electricity, roughly the equivalent of about five fossil fuel-burning power plants. The Governor’s offshore wind industry roadmap focuses on a 16,000 square-mile section of the Atlantic Ocean. The state will seek offers from wind farm developers beginning this year, first with an offering for projects totaling 800 megawatts. The funding for the projects will be derived from fees, known as compliance obligations, imposed on nuclear power plant owners. Governor Cuomo also announced his plans to use $15 million for workforce training programs related to the offshore wind energy plan. "We are encouraged by this development opportunity for New York's independent power generators, but the details matter," said Gavin Donohue, president and CEO of the Independent Power Producers of New York. State sees 5K jobs from offshore wind farm pushThe Albany Times-Union


WA – Governor Jay Inslee officially rejected proposals to build an oil-by-rail terminal for the Port of Vancouver. Concurring with the unanimous decision of the Energy Facility Site Evaluation Council, Governor Inslee said the project increases “the risk of a catastrophic earthquake, oil spills in the Columbia River, and fires or explosions.” The project, which was to be developed by Vancouver Energy, was slated to serve as a transfer point for up to 360,000 barrels of crude oil daily while creating several hundred temporary and permanent jobs. “When weighing all of the factors considered against the need for and potential benefits of the facility at this location, I believe the record reflects substantial evidence that the project does not meet the broad public interest standard necessary for the Council to recommend site certification,” Governor Inslee said. Vancouver Energy has 30 days to appeal the Governor’s decision. Inslee rejects Port of Vancouver oil terminalPortland Business Journal


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