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Energy Update, June 27

October 25, 2016

In the States

HI – Governor David Ige, and Dennis McGinn, Assistant Secretary for the Navy for Energy, Installations and Environment, signed a Memorandum of Understanding (MOU) between the State of Hawaii and the Department of the Navy focused on the reduction of greenhouse gases, fossil fuel usage, energy efficiency, water consumption, the use of renewable energy and the use of alternative fueled vehicles. According to Governor Ige, the MOU “allows us to capitalize to the greatest extent possible our combined wisdom, resources and experience to achieve greater energy efficiency, security, economic vitality and carbon reduction.” The Department of the Navy and the Department of Defense are the biggest customers of Hawaii’s electric utility and have an enormous impact on Hawaii’s economy. This agreement comes as Governor Ige and the Hawaii legislature are in the midst of creating policy framework to develop offshore wind energy technology, something that Hawaii is not previously known for. However, in conjunction with its solar energy industry, Hawaii is making progress towards its goal of producing all of its electricity from renewable resources. Navy Hawaii Sign Memorandum of Understanding  – Defense Video Imagery Distribution System and  Navy Hawaii Sign Memorandum of Understanding – Hookele News

MA – Charlie Baker is pushing for state lawmakers to act on key bills on energy and jobs before the two-year legislative session ends on July 31st. The energy bill would spur Massachusetts’s larger state power companies to sign long-term contracts to purchase hydropower from Canada if passed. In addition, the energy bill would incentivize offshore wind development in Massachusetts. Baker hopes concerns about the budget deficit will not have a negative impact on policy being passed, "this is one of those bills that absolutely positively has to make it through," said Baker.  Already, about $5 billion dollars in projects in Springfield Massachusetts are set to be announced, or are currently underway according to Rick Sullivan, CEO of the Western Massachusetts Economic Development Council. Sullivan announced the news at a developer’s conference in Massachusetts attended by approximately 300. Baker strived to use the summit to convince developers who attended that western Massachusetts is a “good place to be” and can compete with other parts of the country. Gov. Baker Urges Legislative Action on Energy, Jobs BillsWAMC NORTHEAST PUBLIC RADIO

OH – As a result of an initiative started by Governor John Kasich, 59 percent of all rules that have been reviewed by the Common Sense Initiative Office that have had a “visible impact” on business in the past, have been amended or rescinded. In 2010 Governor John Kasich created an agency to streamline rules and regulations that impact Ohio’s business environment. Thus far the Common Sense Initiative has been making significant progress. A meeting attended by Lieutenant Governor Mary Taylor, Public Utilities of Ohio Commissioner Beth Trrombold, which was held at the offices of the Toledo Regional Chamber of Commerce, included a discussion about Ohio’s rapidly evolving energy landscape and how regulatory changes have affected it. Fifteen years ago, coal-fired electric generation dominated Ohio’s energy footprint, but now it is made up of nearly 50 percent natural gas and renewables. With natural gas prices so low, “the temptation is to go all in on natural gas,” said Trrombold. Lieutenant governor tells of aid to businessThe Blade

NY – Governor of New York Andrew Cuomo has proposed the Clean Energy Standard, (CES) a clean energy agenda that calls for 50% of the state’s electricity to come from renewable energy resources by 2030, as well as a mandate for a 40% decrease in carbon emissions in the same time frame. The CES is critical for upstate New York where many of the state’s power plants reside. The Battle Group recently reported that nuclear power from upstate New York accounts for "more than $3 billion toward GDP of New York State, provides 25,000 jobs and pays almost $150 million in taxes, locally and statewide." The CES includes subsidies to keep open several upstate nuclear power plants that are at risk of closing because of low electricity prices driven down by Natural Gas. The CES also includes substantial investments in wind and solar power. Good News from Diablo Canyon – The New York Times and Cuomo’s energy goals need support – The Democrat & Chronicle

Regional

California Governor Jerry Brown, plans to expand the state’s electrical grid. The plan seeks to connect California’s electric system to its western neighbors. (Washington, Oregon, Idaho, Wyoming, Utah and California) When wind is blowing in a neighboring state, the electricity generated by windmills there can be sent to places in California where there is less wind production. A regional approach is thought to be more effective and cost efficient according to Robert Weisenmiller, Chairman of the California Energy Commission. “Much of California and the West is operating under an outdated operating model,” said Weisenmiller. “The question is not why we do this, but how we approach regionalization.” Regionalizing the grid could save customers up to $9 billion in the first 20 years according to California officials. It would also put the state in a better position to generate 50 percent of its electricity from renewable sources by 2030. Part of the plan is to combine the California Independent System Operator (CalISO) with Oregon-based electricity producer PacifiCorp. Since April of 2015 the two have been in talks exploring the feasibility of joining together. Not everyone is in favor of the merger however, “in weighing whether to support PacifiCorp’s participation, I will look at the proposal and the evidence to determine if I believe this is in the best interest of Wyoming ratepayers… as of today, I’m not convinced this is in the best interest of Wyoming” said Governor Mead of Wyoming. Plan for regional power grid raises hopes, doubts -The San Diego Union-Tribune and Brown wants to resurrect a plan to expand the state’s power grid, but some say it’s not that simple – The Los Angeles Times

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