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Energy Update, March 12, 2010

March 12, 2010

In the States

DE – Governor Jack Markell has proposed an extension and expansion of existing law that would increase the use of renewable energy within the State.  Current law dictates that Delmarva Power must obtain 20% of its electricity from renewable sources by 2019; the proposed changes would require that other utilities comply, that 30% of electricity come from renewable sources by 2029, that preference be given to renewable energy producers within Delaware, and other minor changes.  The Governor hopes these changes will prompt more “green” jobs in the State as well as more home-based solar power production.  Markell pushes for renewable energy in DelawareThe News Journal

VA – Governor Bob McDonnell has signed legislation that endorses the Federal government allowing oil and gas drilling off Virginia’s coastline.  The plan that Governor McDonnell endorsed would funnel royalties to the State, though some of this funding would be directed to the Virginia Coastal Energy Research Consortium, a partnership between industry, government, and universities to research and develop renewable energy.  McDonnell signs offshore energy bills Virginian Pilot and Virginia Coastal Energy Research Consortium

WY – Governor Dave Freudenthal has signed three bills into law that will centralize control over wind farm development and impose a new tax on electricity produced by wind.  The new laws will require a tax of $1 per megawatt of wind power, place a moratorium on using eminent domain laws to take private land for power lines, and extend permitting authority for the State over those power lines.  The Governor praised the legislature for passing the bills, saying that the wind energy industry is welcome in the State, but only if it pays its way.  Gov signs 3 wind bills into lawCheyenne Tribune

Regional and National News

Two Democratic Governors joined a group of 18 Republican Governors in sending a letter to the Congressional leadership asking that Congress keep the Environmental Protection Agency (EPA) from imposing regulations on greenhouse gases.  The Governors wrote that the EPA is unable to fully consider the economic effects of the regulations, which the Governors believe would place heavy administrative burdens on state environmental agencies, prove costly to consumers, and have a devastating impact on state economies and jobs. The EPA has responded to the Governors, dismissing the premise that regulatory action would necessarily weaken the economy.  Several pieces of legislation, introduced in Congress by members of both parties, would delay or eliminate the ability of EPA to regulate greenhouse gases; those in favor of a delay have been encouraged by the Governors’ letter, while supporters of the EPA have been relatively silent on the matter.  US Governors ask Congress to stop EPA RulesWall Street Journal and Governors’ letter to Congressional leadershipGulf Coast News and EPA defends greenhouse gas capsPolitico

Four Democratic Senators have called for a halt to stimulus spending on wind farm projects on the grounds that too much of the money has been sent outside the United States.  The Senators specifically cited a potential project by a company that has not yet applied for stimulus funds, but has signaled that it might install wind turbines manufactured in China.  Union leaders have supported the Senators’ position, while the Obama Administration has disputed it, as has the project manager for the referenced wind initiative, who said at least 70% of each turbine would be fabricated and assembled in the United States.  The American Wind Energy Association has also disputed the claims of the Senators, saying that 53%-63% of the value of equipment bought with stimulus funds has come from within the United States, and that 50,000 jobs would be lost if grants were suspended.  Four Democratic Senators aim to halt stimulus wind projectWashington Post

President Barack Obama met with several members of his administration and a bipartisan group of 14 Senators to discuss concerns about a potential energy bill that would include caps on carbon emissions.  The President offered concessions on nuclear power and drilling for oil and gas while emphasizing the importance of capping carbon emissions.  The Senators attending the meeting represented diverse viewpoints.  Senator Jay Rockefeller of West Virginia, for example, made it clear that any proposal must include safeguards for coal and Senator Sherrod Brown of Ohio remarked on the importance of job creation.  Senator LeMieux of Florida dismissed the possibility of supporting a cap on carbon, focusing instead on promoting nuclear power, and Senator Lugar of Indiana, who also said he was unlikely to support putting a price on carbon emissions, announced he has begun drafting legislation to promote nuclear power and clean coal technology, as well as stricter auto fuel efficiency standards.  Obama, key Senators make their pitch for climate and energy billNew York Times

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