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Energy Update, November 25, 2009

In the States

AZ – Governor Jan Brewer has announced that up to 400 high-paying jobs will go to Arizona residents as a result of the State’s renewable energy tax incentive program.  The Chinese solar energy company Suntech will begin operations in the State in January when the incentives go into effect with an initial investment of between $13 and $17 million, and continue to build facilities in the next few years.  The Governor also said she is in talks with other large-scale renewable energy companies who have expressed interest in starting operations in the State.  Brewer: addition of Chinese solar firm shows impact of tax creditsAZCapitolTimes.com

CA – The State of California has taken a big step toward implementing a broad-based State cap-and-trade program ahead of any potential action by the US Congress on federal climate change legislation.  Draft rules issued this week by the California Air Resources Board would require major sources of air pollution, including power plants, refineries, and concrete factories to being reducing emissions in 2012.  The State’s goal is to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020.  Beginning in 2015, emissions from industrial and transportation fuels would also be subjected to reductions.  The draft rule does not specify how to allocate permits allowing companies to emit carbon dioxide and other GHGs, which is one of the most contentious issues being debated at the federal level.  The chairwoman of the Air Resources Board, Mary D. Nichols, has stated that her preference is for all permits to be auctioned.  Governor Arnold Schwarzenegger has said the new rules will help California address a serious environmental problem while allowing companies flexibility in meeting the State’s clean-air goals.  California takes step to limit emissionsNew York Times

ME – Governor Jon Baldacci was present at the dedication of three new offshore wind turbines that are now producing power for communities on the Fox Islands off the coast of Maine.  The project is the largest community-owned wind production facility on the east coast and the largest off-shore wind farm in New England.  The turbines were welcomed by the communities, who currently  pay twice the national average for electricity sent from the mainland, but now have a cleaner, more affordable method of energy production.  New England community wind project goes online, begins powering islands off MaineClean Edge News

OR – Governor Ted Kulongoski is seeking recommendations from two State agencies on the efficacy of the Business Energy Tax Credit after the Oregonian newspaper determined that some lawmakers had downplayed the cost of this incentive before its passage in 2007.  The Governor’s office has expressed concern over the cost, saying that the State should only be as generous with the tax credits as is necessary to encourage growth in the clean energy sector, which is the goal of the credits.  State legislators will take up the issue again in the next legislative session after a previous measure, a much lower cap on the tax credits, was vetoed by the Governor earlier this year.  Governor orders review of Oregon energy tax creditsThe Oregonian

National News

Senator Jim Webb (D-VA) announced he will not support cap-and-trade legislation in its current form and unveiled a climate bill he authored with Senator Lamar Alexander (R-TN).  Senator Webb expressed disapproval of the cap-and-trade concept and the burdens such an approach might impose on US business vis-à-vis China.  Instead of imposing restrictions on greenhouse gas emissions and establishing a market for pollution credits as the current bill would, the Webb-Alexander bill would provide up to $100 billion in loan guarantees for clean energy production, mainly to nuclear power plants, as well as $750 million per year for alternative fuel research and development.  US Senators unveil bill to double nuclear powerReuters and Jim Webb bails on cap-and-tradePolitico

The US Department of Energy has announced $683 million in new stimulus money for clean energy programs.  The newly announced funds will provide $620 million to support 16 regional smart grid demonstration projects in 21 states and 16 utility-scale projects to help store renewable energy, $45 million for a new facility that will be able to test the next generation of wind turbines (expected to be too big for current domestic facilities), and $18 million in grants to support small business innovation in clean energy technology.  The DOE and USDA have also announced $28.4 million in continued investment to increase the yield and efficiency of biomass and other biofuels.  DOE Awards $620 Million for Smart Grid and Energy Storage ProjectsEERE News and Secretary Chu Announces $45 Million to Support Next Generation of Wind Turbine DesignsEERE News and Recovery Act Announcement: DOE to Invest $18 Million in Small Business Clean Energy Innovation ProjectsEERE News and USDA-DOE Make Available $4 Million for Biomass Genomics ResearchUS Department of Agriculture and DOE and USDA Select Projects for more than $24 Million in Biomass Research and Development GrantsUS Department of Energy

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