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Energy Update, June 10

October 25, 2016

In the States

IL – Exelon, a national utility company, plans to shut down two nuclear power plants in Illinois after the company’s efforts to receive a bailout from the state legislature failed. The power plants include the Clinton Power Station in Clinton, Illinois and the Quad Cities Generating Station in Cordova, a small town located on the banks of the Mississippi River. According to Exelon’s CEO, Chris Crane, the power plants lost $800 million over the last seven years thanks to a “slowing demand for electricity and a flood of cheap natural gas.” The power plant closings puts a little more than 4,300 jobs at risk, including 1,500 plant workers who may be able to transfer to other company locations. “The premature closures of Clinton and Quad Cities continue an alarming trend – our nation is losing top-performing nuclear power plants due to flawed electricity market conditions,” said Marvin Fertel, chief executive of the Nuclear Energy Institute, an industry trade group. “In the process, we are moving farther away from achieving our nation’s ambitious clean air commitments.” Exelon to close two nuclear plants in IllinoisThe New York Times

MA – The state legislature passed a measure requiring the Commonwealth’s utilities to enter into long-term contracts to buy 1,200 megawatts of Canadian hydro-electricity and offshore wind energy. If signed into law, the bill, which also requires utilities to determine the cost-effectiveness of these renewable energy sources, is projected to help the state derive 20% of its electricity from renewable sources. Governor Charlie Baker said he supports the bill’s mission, noting that several nuclear and fossil fuel power plants are shutting down, and that the Commonwealth needs to a develop a “proactive strategy to solving [these issues] collaboratively.” Governor Baker said all New England states need to continue working together to address their energy needs, pointing to an earlier multi-state clean energy request for proposal issued by Massachusetts, Connecticut, and Rhode Island. State lawmakers considering bill that would boost renewable energyWWLP and Baker: Power drain points to need for energy plan soonThe Lowell Sun

MD – Governor Larry Hogan vetoed the Clean Energy Jobs Act, which would have expanded the state’s renewable portfolio standard (RPS). The RPS currently calls for 20% of Maryland’s electricity to be produced via renewable sources by 2022. The measure raised the RPS to 25% by 2020, which according to the legislation’s proponents would have resulted in 1.3 gigawatts more of clean energy. In his veto message, Governor Hogan said “This legislation is a tax increase that will be levied upon every ratepayer in the state, and for that reason alone, I cannot allow it to become law.” The Governor noted that the increased RPS would tax state ratepayers an additional $49 million to $196 million by 2020. Advocacy groups and others supporting the bill have suggested the General Assembly, which finished its 2016 session in April, may seek to override the Governor’s veto. Governor vetoes clean energy bill, views it as taxThe Dispatch and Maryland governor vetoes renewable energy billSI News

NE – Testifying on behalf of the Governors’ Biofuels Coalition before the Environmental Protection Agency (EPA) in Kansas City, Governor Pete Ricketts expressed his support of efforts to maintain the nation’s Renewable Fuel Standard (RFS). The Governor also asked the EPA to scuttle a proposed decrease in the renewable volume obligation (RVO) for the second consecutive year. “The Renewable Fuel Standard is one of the most successful energy policies adopted by Congress,” said Governor Ricketts in his testimony. “The RFS laid a foundation for biofuels to provide consumers with renewable fuel choices in a market controlled by the petroleum industry.” Governor Ricketts said the biofuel industry supports close to one million jobs and stimulates investments in states, including his native Nebraska. “A strong RFS,” noted Governor Ricketts, “means more jobs here at home, greater energy security, and a cleaner environment.” Ricketts calls on EPA to fulfill RFS promiseKTIC and Nebraska’s governor wants EPA to maintain the RFSBrownfield News

Federal and Regional

The Interior Department is expanding its offshore wind energy program to New York, adding more than 81,000 acres of the Atlantic Ocean available for wind energy leases. The section off the New York coast, which is called the New York Wind Energy Area, is on the outer continental shelf, approximately 11 miles south of Long Island. The area is expected to generate at least 700 megawatts of energy, or enough to power a conservative estimate of 245,000 homes. "These are significant steps for our federal offshore renewable energy program," said Secretary of the Interior Sally Jewell. Once the leasing sale is completed, New York will become the 11th state that is either interested or participating in an offshore wind energy leasing project in collaboration with the federal government. Interior expands offshore wind program to New YorkThe Washington Examiner

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