Contact Us

444 N. Capitol St. NW
Washington, DC 20001


Phone: 202-624-1478
Fax: 202-624-1475

Blog posts : "cap and trade"

Energy Update, January 13, 2012

January 13, 2012

In the States

CA – Governor Jerry Brown has proposed using half of the estimated $1 billion in revenues from the State’s cap-and-trade auctions to reduce California’s $9.2 billion deficit.  Funds from the cap-and-trade program are required to be spent on projects related to greenhouse gas emissions; the Governor has said that the money sent to the general fund will pay for existing greenhouse gas-related projects.  Some business groups oppose the move, saying that it is not authorized by the cap-and-trade law, and have said they will challenge the State in court if a budget passes in which auction proceeds pay for general fund projects.  Brown sees $500 million cap-and-trade fees for California budgetBloomberg and Gov. Brown’s cap-and-trade spending plan angers businessesLos Angeles Times

ME – In remarks to wood product industry representatives, Governor Paul LePage expressed his support for a proposed natural gas pipeline into central Maine.  Governor LePage said that while the State "is not in a position where it can help fund a pipeline," he assured companies interested in investing in the project that he would help streamline the approval process.  "There is a lot we're doing to try to encourage some natural gas here," he said.  During an earlier radio address, Governor LePage also said he does not endorse a citizens’ initiative to strengthen the State’s renewable energy portfolio, saying “It’s not good and I’m going to be fighting it all year.”  Governor LePage also vetoed a bill that passed the House and Senate unanimously that would have tightened energy efficiency standards for new state buildings; the veto, however, was later sustained.  LePage pledges to tackle energy costs to improve business climateBangor Daily News and LePage supports natural gas projectPortland Press Herald and Maine Senate sustains LePage vetoesLewiston Sun Journal

VA – Governor Bob McDonnell has unveiled his 2012 energy policy agenda that he says will help the State become the “Energy Capital of the East Coast.”  One of his proposals would direct $500,000 to wind energy research to help companies develop offshore wind farms when the federal government leases areas off the coast.  Another proposal would help fund conversion of some State vehicles to alternative fuels.  Other initiatives include strengthening oversight of wells and pipelines and increased investment in energy efficiency programs.  The Governor also called on the federal government to open up offshore areas to oil and gas exploration and drilling.  Va. Gov. McDonnell outlines energy agenda; slams U.S. limits on off-coast oil, gas explorationWashington Post

WV – Governor Earl Ray Tomblin’s office announced his administration is focusing on promoting the development of natural gas and coal resources rather than state initiatives to begin or expand renewable energy projects.  The Governor’s Chief of Staff, Rob Alsop, said that the Governor believes that natural gas will not only be a good source for energy, but its by-products will reinvigorate the manufacturing sector as well.  On wind power, Alsop said that it can be successful only with federal tax incentives and that state programs have little effect.  Governor’s office: State energy focus on gas and coalState Journal 

Federal News

President Barack Obama has signed a bill into law that will increase regulations on pipelines, following a series of pipeline bursts that have killed and injured people as well as caused environmental and property damage.  The new law, passed with bipartisan support, will require automatic valves where “feasible,” increase the number of pipeline inspectors, and increase the maximum fine for safety violations from $1 million to $2 million.  Obama signs pipeline safety law - UPI

Go Back

Energy Update, September 9, 2011

September 9, 2011

In the States

GA – Governor Nathan Deal has written a letter to the U.S. Nuclear Regulatory Commission in support of a $14 billion nuclear power plant planned for his State.  The Commission will meet on September 27th to decide whether to approve the project, which would be the first new U.S. nuclear power plant in a generation.  Governor Deal said that the plant would create jobs and increase and diversify the State’s energy supply to meet the needs of a growing population.  Ga. Gov. Deal supports new nuclear plant – Spartanburg Herald Journal

NH – New Hampshire’s Senate failed to override Governor John Lynch’s veto of a withdrawal from the Regional Greenhouse Gas Initiative (RGGI), the Northeast’s regional cap-and-trade program.  The repeal passed the legislature and was vetoed by Governor Lynch, but it fell just one vote short of the two-thirds majority required to override the veto. Earlier in the year, the Senate proposed a reform bill that the House rejected in favor of an outright repeal bill.  RGGI supporters claimed that maintaining membership in the program is a national security issue because of the large sums of money being sent to hostile foreign countries for energy imports and political instability caused by global warming.   They also argued that a withdrawal would only eliminate the State’s income from the sale of tax credits, not the higher electricity rates resulting from the initiative.  Those favoring a veto described the cap and trade program as an “income redistribution ploy” and the House leadership pledged to bring back a new repeal bill next year.  State upholds Lynch veto blocking RGGI repeal – New Hampshire Union Leader

Federal News

The U.S. Energy Department has announced that it will guarantee, in part, a $344 million loan to SolarCity, which will use the funds to double the amount of rooftop solar energy in the United States.  As many as 160,000 rooftops of military housing developments in 33 states will be fitted with solar panels that will be installed, owned, and operated by SolarCity, generating as much as 371 megawatts of electricity.  The guarantee is expected to significantly lower capital costs.  DOE to offer loan guarantee for solar rooftop project – Washington Post

According to an audit by the U.S. Energy Department, nearly one in three dollars authorized by federal stimulus legislation for Energy Efficiency and Conservation Block Grants (EECBG) has not been spent.  As of last month, $879 million of those funds remained unspent and another $500 million had been committed by state and local governments, but had not been fully expended.  The Energy Department acknowledged that the money was slow to get to projects, but that they had made significant progress in the past year: just $270 million was spent at this time in 2010 compared to $1.4 billion this year.  The Department also says that the grants have created 5,400 jobs.  But the Inspector General for the Department, who released the report, said that the slow pace of spending is counter to the purpose of the stimulus funding, and that if the money is not spent soon, it should be returned to the Treasury.  Energy Department audit says nearly $900M for efficiency grants to states, cities, goes unspent – Washington Post

Go Back

Energy Update July 30, 2010

July 30, 2010

In the States

CA – Governor Arnold Schwarzenegger has written to the chair of the California Air Resources Board asking her to postpone a vote on creating a renewable portfolio standard (RPS) of 33% by 2020 that was expected to happen before July 31.  The Governor vetoed legislation last year that would have created the same RPS on the grounds that it did not the State’s regulatory process to speed up the introduction of renewable forms of energy and did not sufficiently allow for electricity produced from  renewable energy sources located outside California.  Soon after that, the Governor signed an executive order requiring the Board to vote on an RPS with regulatory reforms and out-of-state electricity measures in place.  He has asked for the Board to postpone consideration of the RPS because the legislature is close to passing legislation that he would sign, and he wants to give them more time to do so.  Schwarzenegger asks Calif. regulators to delay 33% RPSNew York Times

MD – Governor Martin O’Malley has signed an executive order requiring the Department of Natural Resources to develop a long-term electricity report to be completed by December 2011.  The report is expected to provide data that will be used to determine where and how energy should be produced over the next 20 years.  No major new electric power plants or transmission lines have been built since 1990, when the last such report was produced.  Maryland’s population has grown by about 1 million since then, while energy consumption has increased by 25 percent.  The report will look at an array of potential energy sources, including fossil fuels, nuclear power, and renewable electric generation sources.  It will also consider ways to increase the reliability of electricity as well as potential conservation and efficiency measures.  State’s future energy needs targeted by GovernorGazette.net

MI – As much as a million gallons of crude oil leaked from a 30-inch-wide pipeline under the Kalamazoo River in Marshall Township on July 27, sending a 20-mile slick along the river, killing birds, fish, turtles, and other animals in its path, and releasing benzene into the air.  Although the pipeline has since been shut down, health officials have recommended evacuating 50 homes nearby and for others to not use well water for fear of contamination.  Cleanup crews are trying to keep the oil from reaching Lake Morrow, something State officials contend has already occurred, but which representatives for Enbridge Energy Partners, the owner of the pipeline, insist has not yet happened.  Governor Jennifer Granholm has expressed concern over the strength of the cleanup response, which officials say could take months.  Regulators warned company on pipeline corrosion – New York Times and Michigan oil spill prompts evacuations, finger-pointingWall Street Journal and Oil spill near Kalamazoo River causes stench, messDetroit Free Press

NY – Governor David Paterson has signed three new energy-related bills into law.  One bill allows the Secretary of State to establish energy efficiency standards for some appliances that were not previously regulated.  Another allows consumers to pay back loans for energy efficiency home upgrades on their gas bill.  Still a third bill adds kinetic energy storage devices, such as compressed air storage, that generate less than 80 megawatts, to the definition of an alternative production facility.  This will help facilitate the use of such production facilities and improve the efficiency of the State’s electric power system.  Governor Paterson signs three bills to advance clean energy agenda and forty-five other bills into lawHamptons.com

Regional News

Governors Deval Patrick of Massachusetts and Donald Carcieri of Rhode Island have signed a Memorandum of Understanding (MOU) that will allow the two States to collaborate on offshore wind energy projects off the coast of their border, near Martha’s Vineyard.  The MOU covers a specific area of common interest; however, the States will not have to collaborate on any projects outside that area.  The goal of the MOU is to determine a strategy through which disputes over offshore wind energy development in the area will be resolved before a project is proposed, providing guidance to developers and fostering cooperation between the two States.  Massachusetts and Rhode Island team up on offshore windBrighterEnergy.org

The Western Governor’s Association has written a letter to the US Congress recommending that they authorize the additional $36 billion in loan guarantees for nuclear energy development requested by President Obama.  In the letter, the Governors wrote that the loan guarantees could help to fund 6-9 additional nuclear reactors and would also spur private sector investment, which would create jobs as well as cleaner energy.  New nuclear power plant development urged by GovernorsPowerGen Worldwide

National News

In a not-unexpected change of course, Senate Majority Leader Harry Reid (D-NV) has announced that the Senate will not take up legislation that includes any cap on greenhouse gas emissions this year.  Some supporters of climate charge legislation, including Senators John Kerry (D-MA) and Joe Lieberman (I-CT), vowed to continue pushing for a bill, while others expressed doubt that passing such legislation would be possible between the August recess and November elections.  Majority Leader Reid has unveiled a $15 billion energy bill that would remove the $75 million cap on oil companies’ liabilities to communities after an oil spill, allow for federal regulation of hydraulic fracturing (a partially unregulated process used to obtain natural gas), provide more infrastructure and R&D support for electric vehicles, and use rebates and loan guarantees to increase the number of vehicles that run on natural gas and improve the energy efficiency of homes.  The legislation, as proposed by Majority Leader Reid, also does not include a renewable portfolio standard (RPS) that would require a certain percentage of energy produced in the US to come from renewable sources, a measure that has support from many Democratic Senators.  Some Senators are also contending Majority Leader Reid’s assertion that there are not enough votes to pass cloture with an RPS.  An initial test vote on the bill is set for the first week in August.  Democrats pull plus on climate billPolitico and Energy bill, focusing on conservation, can’t shake calls for RESNew York Times and Reid’s energy bill revives fight over hydraulic fracturingCQ Politics and Energy bill would end oil claims capWall Street Journal and The Clean Energy Jobs and Oil Company Accountability Act Bill Text [pdf]Senate Majority Leader Harry Reid

Go Back

Energy Update, February 12, 2010

February 12, 2010

In the States

AZ – Governor Jan Brewer has announced that Arizona will no longer fully participate in the Western Climate Initiative, citing potential higher costs for consumers.  The Governor signed an executive order effectively withdrawing the State from the planned cap-and-trade system and ordering the Department of Environmental Quality to review a plan to place more regulations on vehicle emissions.  Although these two programs will not be implemented, the State is not fully withdrawing from the Initiative, and will continue to work with other States to promote solar energy, limit pollution by setting smart growth policies, and taking steps to adapt to climate change.  The State is also continuing a program to make its entire state vehicle fleet hybrid, low-emission, or alternative fuel by 2012.  Arizona quits Western climate endeavorArizona Republic

MA – Governor Deval Patrick’s recently announced new plans to curb greenhouse gas emissions.  When combined with measures he and others have already put into place, these proposals would result in an 18.6% decrease in emissions from 1990 levels by 2020, according to a new draft report by the Eastern Research Group.  The Global Warming Solutions Act, signed by the Governor in 2008, requires Massachusetts to lower greenhouse gas emissions 10% to 25% by 2020.  The Governor cited the move toward reducing emissions as good for the environment and the economy, saying “[o]ur investments in energy efficiency and renewable energy are creating jobs and reducing greenhouse gas emissions dramatically.”  Mass. to meet gas reduction targetBoston Globe and Draft Report to Climate Protection and Green Economy Advisory Committee [pdf]Eastern Research Group

WY – Governor Dave Freudenthal is proposing stricter regulations on the wind power industry, including an excise tax of $3 per megawatt hour, and more restrictions on land use and zoning that would make building wind turbines and producing wind energy more expensive.  The Governor said that the wind energy industry “remains a profit-oriented business that should be treated the same as other energy producers."  Gov.: Tax wind powerStar-Tribune

State of the States – Most Governors have given a State of the State address, and many of them have included energy issues in their speeches.  Some of these are highlighted below.  The full text and summaries of all of the State of the State addresses can be found on the Stateline.org website.

CT – Governor M. Jodi Rell proposed eliminating the sales tax on “machines, equipment, tools, materials, supplies, and fuels used in renewable energy and green technology” in her annual State of the State address.  She also proposed a loan forgiveness program for students who get certain degrees related to renewable energy or health and choose to stay and work in the State. 

MI – Governor Jennifer Granholm said the Federal economic stimulus has helped the State make investments in clean energy and “take us from the rust belt to the green belt” in her State of the State address.  The Governor also said that several billion private sector dollars have been invested in building electric cars, batteries, wind turbines, and solar cells resulting in the creation of tens of thousands of new jobs.

NV – In his State of the State address, Governor Gibbons said that his office is working to promote solar, wind, and geothermal energy as well as research and development for new green technologies.  The Governor noted economic and environmental benefits, saying these industries would create long-term high-paying jobs. 

National News

President Barack Obama met with a bipartisan group of 11 Governors recently to discuss the future of energy.  While the President underscored the need to produce more biofuels, especially ethanol, and cleaner coal, Governor Gregoire of Washington expressed interest in nuclear power, Governor Rounds of South Dakota asked for help in developing biofuels resources in the Midwest, and Governor Beshear of Kentucky praised Obama’s interest in clean coal and expressed concern over cap-and-trade proposals.  Also in attendance were Governors Riley of Alabama, Baldacci of Maine, Schweitzer of Montana, Strickland of Ohio, Bredesen of Tennessee, Douglas of Vermont, Manchin of West Virginia, and Freudenthal of Wyoming.  Governors talk energy with ObamaStateline.org and Wash. Gov. says nuclear energy must be consideredSeattle Post-Intelligencer and Rounds says he pushed for SD in energy meetingKTIV.com and Kentucky Gov. Beshear praises Obama clean-coal initiativeCourier-Journal

More than 200 companies, including some major energy companies, have combined efforts to promote the passage of a Senate climate change bill this year.  Leaders from the companies and business groups have cited the need to compete with China, reduce dependence on foreign oil, and reduce carbon emissions as all worthy goals that can be achieved through climate change legislation.  In the Senate, Senators Kerry, Lieberman, and Graham are working together to craft legislation that will attract Republicans and Democrats.  President Obama has also shown a willingness to compromise to pass a bill this year: he proposed allowing more nuclear power in his State of the Union address, requested more Federal loans to build nuclear power plants in his FY2011 budget, and asked Secretary of Energy Steven Chu to address the issue of nuclear fuel and waste.  Coming together on climate billPolitico

Go Back

Energy Update, December 31, 2009

December 31, 2009

In the States

MS – Governor Haley Barbour discussed the future of energy in Mississippi at a meeting of energy policy experts, calling energy “the lifeblood of the world’s economy.”  He cited a potential new lignite coal power plant with carbon capture and sequestration technology and the possibility of two solar power companies beginning manufacturing in the state as positive steps.  Barbour: Energy is lifeblood of the world’s economyMississippi Business Journal

NY – Governor David Paterson has said that a new plan released by the State Energy Planning Board will help shape legislation to make New York a leader in clean energy.  The plan calls for greater efficiency in new building codes, requiring energy audits in home sales to encourage efficiency upgrades, and increasing the proportion of energy created by solar, wind, and natural gas.  The Governor has stated a goal for the State to meet 45% of its energy needs through reducing energy demand and increasing renewable energy.  State energy plan promotes clean, efficient alternativesNew York Times

VA – Governor-elect Bob McDonnell has sent a letter to US Interior Secretary Ken Salazar asking that the federal government move quickly to lease ocean-floor parcels off of Virginia’s coastline for oil and natural drilling, currently scheduled for 2011.  Governor Tim Kaine asked Secretary Salazar for a delay of the same leases earlier this year.  The Governor-elect believes a lack of movement in the past year and interference from federal politicians could further impede the process, which a 2005 study suggests could create up to 2,500 new jobs.  McDonnell wants offshore drilling in 2011Virginian-Pilot

Regional, National, and International News

Copenhagen Climate Talks – President Barack Obama and four other world leaders shaped a final accord at the UN Framework Convention on Climate Change meeting.  To the disappointment of representatives from many smaller countries, the document is not a binding pledge with firm targets for reducing greenhouse gases, but a non-binding statement of intention.  The accord aims to reduce greenhouse gas emissions, limit a rise in global temperature by two degrees Celsius, and for richer countries to provide aid of $30 billion over the next three years – and up to $100 billion per year by 2020 – to poorer countries.  There were many issues of contention between the countries during the meeting, to the point where some called for another, smaller conference, but the accord represents a small step forward in halting and mitigating climate change.  A grudging accord in climate talksNew York Times

US Cap-and-Trade Policy – At least six moderate Senate Democrats have asked President Barack Obama to hold off on cap-and-trade legislation next year.  The Senators cited the economy, a contentious health care debate, and election-year politics as reasons to hold off on another sweeping legislative change.  The While House has signaled that it is committed to cap-and-trade legislation, but there are other proposals currently being discussed by Senators, including setting a price on carbon emissions and capping emissions only for power plants.  Senate Democrats to W.H.: Drop cap-and-trade - Politico

Northeast and Mid-Atlantic US – The Governors of 11 Northeastern and Mid-Atlantic States have signed a memorandum of understanding to require reductions in the carbon content of fuel through a multistate low-carbon fuel standard (LCFS).  The mandatory requirement will not rely on a single technological resource, not will it fundamentally change the fuel used in automobiles, but will make the fuel used emit less carbon.  According to proponents, higher-carbon sources of fuel such as tar sands will be discouraged by the agreement, while alternative energy and low- or no-emissions vehicles will be favored.  Signatories to the agreement include Governors M. Jodi Rell (CT), Jack Markell (DE), John Baldacci (ME), Martin O’Malley (MD), Deval Patrick (MA), John Lynch (NH), Jon Corzine (NJ), David Paterson (NY), Ed Rendell (PA), Donald Carcieri (RI), and Jim Douglas (VT).  Governors take aim at carbon in fuelNew Haven Register

2009 Energy Review – Much advancement has been made in energy technology over the past year.  New technologies are allowing the recovery of natural gas, which is cleaner burning than coal, from places previously thought economically impossible, increasing its availability by 39%.  Clean coal technology has begun to be implemented on a larger scale, including power plants, and researchers are finding potential in less expensive carbon capture strategies.  Similar movement has occurred for biomass and cellulosic ethanol, which are now more viable as a replacement for gasoline and oil due to discoveries this year.  New technologies are creating potential for lighter batteries that will hold a greater charge, bringing plug-in hybrid and electric autos closer to reality.  The year in energyTechnology Review

Go Back

Energy Update, December 11, 2009

December 11, 2009

In the States

MA – The first phase of Governor Deval Patrick’s plan to install 250 megawatts of solar-generating capacity by 2017 was so successful that it ran out of money more than a year ahead of schedule and allowed for the installation of more solar panels than originally anticipated.  The $68 million program called Commonwealth Solar provided homeowners and businesses with nearly half the funds to purchase and install solar systems.  The program exhausted its funds in just less than two years and allowed for the purchase of solar panels that can generate 29 megawatts of electricity.  $68m in solar rebates goes fastBoston Globe

MD – A law passed last year at the urging of Governor Martin O’Malley requires the State of Maryland requires utilities to obtain 20% of their electric power from renewable sources.   The sale of two alternative energy projects to utility companies should help them achieve this goal.  Constellation Energy will take over a $140 million, 28-turbine wind farm project that already has received state approval, while CPV Renewable Energy Company will install a solar energy facility next to a natural gas power plant.  Garrett, Charles to get wind, solar power plants Baltimore Sun

MT – Governor Brian Schweitzer’s goal of increasing the State motor fleet’s gas mileage to 30 miles per gallon has already been achieved, more than a year ahead of schedule.  The fleet’s mileage stands at 31.6 miles per gallon and will be increased to at least 34.2 miles per gallon in the coming year due to increases in hybrid vehicles.  Montana’s large size and rural nature requires state officials to travel long distances, so raising mileage requirements has a substantial budgetary impact.  State on track to surpass fuel goalBillings Gazette

OR – Governor Ted Kulongoski says that the subsidies offered to the wind and solar energy industries should be phased out after vetoing a similar measure earlier this year.  The Governor changed his mind after commissioning and receiving a report by two department directors who determined the most generous subsidies of up to $10 million for wind and $20 million for solar projects are no longer required in order to keep alternative energy companies investing in the State.  The State legislature is expected to explore phasing out the subsidies when it begins a special session in February.  Kulongoski changes course, supports phase-out of wind energy tax creditThe Oregonian

Regional and National News

Climate change legislation – Senators John Kerry, Lindsey Graham, and Joe Lieberman have released an outline of the “tripartisan” legislation that the three of them have been working on for the past month.  The outline says that the plan should reduce pollution to “in the range of 17 percent below 2005 levels” in the “near term” and “approximately 80 percent below 2005 levels” would be “a long term target.”  The outline suggests the way to do this is to drill and refine more domestic oil and natural gas, establish a national regulatory system for reducing carbon emissions, encourage nuclear and clean coal development, and create incentives for green jobs for blue-collar workers, and maintaining carbon offsets for farmers.  Senators release ‘basic framework’ of climate billCQ Politics and Letter to President Obama and Framework for Climate Action and Energy Independence in the US SenateSenators John Kerry, Joseph Lieberman, and Lindsey Graham

The Senate Energy Subcommittee held a hearing this week on nine energy- and climate-related bills that could create more funding for the Department of Energy’s efforts to develop more advanced alternative energy.  Five of these bills have already passed the House and would authorize $3 billion in funds for vehicle technologies (HR 3246), $2 billion for solar energy research and development (HR 3585), $200 million for a wind energy research program (HR 3165), $20 million for research parks at which scientists can perform energy-related research (HR 2729), and grants for training designers to incorporate energy efficiency into buildings (HR 957).  The four remaining Senate bills would provide loans for manufacturers to increase energy efficiency or produce clean energy technology (S 1617), authorize $500 million for wind energy research and development (S 2773), expand current ethanol research and development programs (S 737), and provide a monetary prize for researchers that develop a way of taking carbon dioxide out of the air (S 2744).  Research panel to take up carbon capture, biofuels, research billsNew York Times

Governors Donald Carcieri (R-RI) and Jack Markell (D-DE) recently told attendees at a wind energy conference that they support offshore wind projects in their states.  Governor Carcieri said land-based and offshore wind power should be expanded and   the federal government should strengthen its renewable energy policy.  He also said  his state is moving as fast as it can to get an offshore wind project off the ground, and that “a failure to invest in renewable resources ... in today’s economic climate would verge on irresponsibility.”  Governor Markell spoke about efforts in Rhode Island to promote alternative energy, praised the Obama administration for its promotion of wind energy, and said a “steady stream of projects year after year” is needed to ensure the viability of the industry.  Seize the breeze: Carcieri urges speed in development of offshore wind projectsProvidence Journal

Go Back

Energy Update, November 25, 2009

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

Go Back

Energy Update, October 30, 2009

October 30, 2009

In the States

AK – Governor Sean Parnell is attempting to boost the state’s economy through increased traditional energy production.  He has met with Interior Secretary Salazar and other officials about drilling for fossil fuels offshore, which the Governor says could create 35,000 jobs.  He is also working on a $30 billion natural gas pipeline that would send fuel to the lower 48 states and create thousands of more jobs.  Palin successor focuses on energy agendaWall Street Journal

CA – Governor Arnold Schwarzenegger has signed two solar renewable bills into law.  One new law will require utilities to pay consumers for any excess electricity produced by a home alternative energy installation such as a solar panel.  Utilities must begin paying such consumers a rate to be determined by the Public Utilities Commission in early 2011.  The other law requires utilities to pay higher rates for electricity generated from small alternative energy producers, also known as a feed-in tariff.  Both of these measures are expected to help the state achieve its goal of obtaining 33% of its energy from renewable sources by 2020.  California passes feed-in tariff for solar energyCooler Planet and California expands its rules for feed-in tariffs and net metering – EERE News 

CO – As the debate over national energy legislation continues, the role of nuclear energy has emerged as a major concern.  Electricity produced with nuclear energy is virtually carbon-free which makes it attractive as an alternative to the more expensive renewable options such as solar or wind.  Governor Bill Ritter and other state officials have said that they support nuclear power and increased mining for uranium, of which Colorado is a major producer, as long as it is done in a manner that is safe for both mine workers and the environment.  Colorado in crosshairs of nuke boom if climate bill sparks uranium revivalColorado Independent

WY – Governor Dave Freudenthal talked with lawmakers from other western States this week to discuss energy issues particular to the region.  In response to a suggestion from some representatives that there be more cooperation between States regarding permitting and siting of interstate power lines, the Governor pointed out that such cooperation runs counter to the foundation of interstate relations, namely competition for economic development and human and natural resources.  He also expressed frustration that Wyoming creates power for other States from coal and natural gas while at the same time some of these States are touting new restrictions on carbon emissions.  Wyo. governor talks energy with Western lawmakersIdaho Statesman

Regional and National News

President Barack Obama has announced the largest-ever investment in the American energy grid, $3.4 billion in grants to 100 electric companies, which will be used to upgrade the grid to be more dependable and efficient.  Specifically the funds will, when combined with $4.7 billion in private investment, purchase 2.5 million smart meters, one million in-home energy displays, hundreds of thousands of smart devices for homes, 200,000 smart transformers, as well as hundreds of grid sensors and substations.  Combined, these improvements to the grid will allow rate-payers to save energy and money, operators to better monitor and administer electricity, and utilities to respond to outages more quickly, while creating tens of thousands of jobs needed for manufacturing and installing the new products.  US electrical grid gets $3.4 billion jolt of stimulus fundingWashington Post and President Obama announces $3.4 billion to spur smart electric gridsEERE News

The Senate Environment and Public Works committee conducted hearings this week on the cap-and-trade bill sponsored by Senators Kerry and Boxer (S.1733) that would lower emissions from power plants and other polluters more than 80% below 2005 levels by 2050.  Committee Chairwoman Barbara Boxer has pledged to hold a markup on the bill next Tuesday while Republican committee members, who have said the process is moving too hastily, have pledged to boycott such a meeting, effectively preventing it from beginning.  Republican committee members have said they would like more information from the Environmental Protection Agency and the Congressional Budget Office before holding a markup.  According to one already completed EPA analysis, the Senate cap-and-trade bill is “quite similar” to the House version, varying only slightly in the amount of allowed pollution and costs.  Senate climate markup set for Tuesday but will any Republicans show?New York Times and Economic impacts of S.1733: The Clean Energy Jobs and American Power Act of 2009Environmental Protection Agency

Go Back

Energy Update, October 2, 2009

October 2, 2009

In the States

CA – This week, Governor Arnold Schwarzenegger hosted the Global Climate Summit 2, which gathered over 1,200 participants from across the U.S. and the world to help discuss climate change issues and influence national policy in their countries prior to the UN summit planned for Copenhagen, Denmark in December.  California officials also hoped the summit would allow other governments to see what the state has accomplished and build on its achievements in negotiating a new global climate change pact at that meeting.  Topics included how to decrease energy usage, how to obtain cleaner energy, and how to best offset greenhouse gas emissions.  Schwarzenegger leads governors’ summit on global warmingChristian Science Monitor and Climate summit delegates like state’s planned carbon trading marketLos Angeles Times

NC – In a letter to US Secretary of Interior Ken Salazar, Governor Bev Perdue indicated she may be willing to consider offshore oil and gas drilling depending on the amount of reserves located off North Carolina’s shore and whether a panel of scientists and engineers she plans to assemble indicate drilling can be done safely and without hampering offshore wind energy development.  Governor Perdue commented on a draft proposal prepared by the Bush administration, which would allow certain sites to be explored for possible extraction of fossil fuels.  The Governor would also like more information on the share of oil and gas revenues the State could expect to receive.  Secretary Salazar has indicated he is likely to scale back the proposal before presenting it to President Obama and Congress prior to final approval.  Perdue indicates she’s open to offshore drillingWinston-Salem Journal

PA – Governor Ed Rendell spoke at a news conference to covey the importance of clean energy to Pennsylvania’s financial and environmental goals.  He cited the State’s $900 million of investment since 2003, an energy portfolio standard that mandates the development of alternative energy sources, energy conservation laws, and adoption of the California Clean Car Rule to reduce emissions from mobile sources as actions that have helped reduce greenhouse gas emissions and created thousands of new jobs.  The Governor also expressed support for more research on carbon capture and storage technologies.  Rendell calls for clean energy developmentPittsburgh Post-Gazette

TX – Governor Rick Perry voiced strong opposition to federal climate change legislation during a meeting with State business and political leaders.  The Governor said that Texas has done well in balancing the interests of business and the environment and that new federal mandates on carbon emissions and other climate changing pollution would raise the prices of many everyday products for consumers and eliminate 200,000 to 300,000 jobs in the State.  He suggested the Federal Government should follow Texas’ lead by expanding the nation’s alternative energy portfolio, reducing the cost of alternative energy forms like solar and wind, and promoting investment in technology that captures emissions of carbon dioxide rather than institute a cap-and-trade policy.  Texas governor voices opposition to climate billAustin American-Statesman

WV – Governor Joe Manchin gave a speech to the US Chamber of Commerce in which he noted that while coal may create pollution, coal-producing states such as West Virginia have helped build a vibrant American economy.  The Governor believes that the pending House cap and trade legislation, in its current form, will cost too many jobs and that there may be ways to reduce greenhouse gas emissions by recycling carbon dioxide into a useful product.  He also raised concerns about the potential for newly created alternative energy industry jobs moving offshore if production costs prove to be too high in the US.  Manchin calls for energy balanceCharleston Daily Mail

Regional and National News

Attracting renewable energy manufacturing plants and workers is less difficult for states that have generous incentive programs than for those that do not.  Some states provide millions of dollars in tax and other incentives for companies to build such facilities – which produce not only renewable energy technology but high-paying and high-skill jobs – while other state provide little or none.  With renewable energy becoming a key component of economic development, states are competing to provide more generous subsidies in return for new clean energy investment and jobs.  Clean-energy jobs touch off bidding wars between statesUSA Today

Senators John Kerry and Barbara Boxer have introduced the Senate’s version of climate change legislation.  Many details are missing from the bill as it is currently written, though the two sponsors say it will be deficit-neutral.  The bill would require a reduction in carbon emissions to 20% below 2005 levels by 2020 and 80% below 2005 levels by 2050 through a cap-and-trade mechanism, cleaner coal technologies, natural gas, and nuclear energy production, more solar and wind energy production, and increased energy efficiency.  Republican leaders have already voiced opposition to the bill, calling it a tax on families and small businesses while environmental advocates have expressed mixed reactions.  Boxer, Kerry launch campaign to pass Senate cap-and-trade billNew York Times and Overview [pdf], Section-by-section summary [pdf], and Bill text [pdf] for S.1733 – Clean Energy Jobs and American Power Act

To date, more than $1 billion in stimulus funds has already been spent on clean energy projects, including $550 million that was just awarded for new renewable energy production (in lieu of tax credits), $300 million for energy conservation efforts in public housing projects, and $36 million for energy efficiency projects in Pennsylvania.  An additional $410 million in stimulus funds have been recently announced, including $161 million for a wind power transmission line, $144 million to advance the smart grid, and $106 million for Energy Efficiency Community Block Grants.  Treasury, Energy surpass $1 billion milestone in Recovery Act awards for clean energy projectsEERE News and U.S. Treasury and DOE award $550 million for renewable energy projectsEERE News and HUD grants $300 million in Recovery Act funds for green housingEERE News and DOE delivers $36 million to Pennsylvania for energy efficiency projectsEERE News and Recovery Act helps to fund transmission line for Montana wind powerEERE News and DOE announces $144 Million in Recovery Act funding for the smart gridEERE News and Obama administration delivers more than $106 million for energy efficiency and conservation projects in nine statesEERE News

Go Back

Energy Update, August 7, 2009

August 7, 2009

In the States

DE – Governor Jack Markell has signed two bills into law that he says will spur new green collar jobs.  The new laws will require more energy efficient homes and office buildings, encourage zero net energy buildings, and require utilities in the state to reduce energy consumption by 15% in just five years, by 2015.  Governor Markell signed legislation earlier this year promoting home solar and wind energy.  Markell signs landmark energy legislationDelaware Business Ledger

OR – Governor Ted Kulongoski has signed several climate change bills that will lower greenhouse gas emissions in the state.  The new laws require that new power plants be at least as clean as natural gas, new buildings are more energy efficient, and emissions are reported by more polluters.  They also authorize a low carbon fuel standard, and grants for energy efficiency projects.  Governor signs climate change legislationPortland Business Journal

The nation’s Governors agreed to support a goal of requiring new and renovated buildings to be carbon-neutral by 2030 at the National Governors Association Annual Meeting.  The goal is promoted by the American Institute of Architects and endorsed by the US Conference of Mayors and the National Association of Counties. Governors call for carbon-neutral buildings by 2030New York Times

Regional and National News

The Cash for Clunkers program, which provides car-buyers with $3,500 to $4,500 in incentives to trade in gas-guzzlers for cars with much better gas mileage, is running out of its $950 million in stimulus funds.  The House and Senate have passed a $2 billion extension of the program to keep it going.  $2B in clunkers cash on way, senators sayDetroit Free Press and “Cash for Clunkers” gets a $2 billion boostNew York Times

Senate Majority Leader Harry Reid and the chairs of five committees have agreed to get a cap-and-trade bill out of committee by September 28.  Senators have cited several impediments to quick passage of the bill, though, including the complexity of the pending health reform legislation, negative impacts on coal- and manufacturing-heavy states, and spending any additional money after the stimulus and health reform.  Some Senators have stated that it is unlikely that the bill will be passed this year, and will only be harder to push next year as difficult votes are harder to make in election years.  Climate bill may fall by the waysidePolitico

President Obama and other administration officials traveled throughout the country on August 5 to announce the recipients of $2.4 billion in stimulus grants for the development of battery powered vehicles.  The President visited Indiana and Vice President Biden was in Michigan – those two states received the majority of the funds – while other cabinet members traveled to North Carolina, Florida, and Pennsylvania to announce grants in those states.  The grants will fund 50 projects in 25 states.  Obama back in Indiana with message and aidNew York Times and Electric cars get plug from ObamaCharlotte News and Observer

International News

At a two-day meeting between the Obama administration and Chinese officials, the US and China entered into an agreement that states each country’s desire to deal with the climate issue, though no real specifics emerged.  The memorandum of understanding cited climate change as a challenge to be combated by transitioning to a low-carbon economy through “domestic action and international cooperation.”  At the meeting, both countries said their relationship on the subject would be positive and mutually beneficial. US, China end talks with smiles but no progress on climate changeLos Angeles Times and US-China memorandum of understanding to enhance cooperation on climate change, energy and the environment US Department of State

Go Back

Energy Update, June 26, 2009

June 26, 2009

In the States

ME – Governor Baldacci has signed a new law that will establish a six-year pilot program that will allow individuals and groups to sell renewable power to the Public Utilities Commission at a fixed rate for up to 20 years, with the goal of encouraging small renewable energy projects.  The law also allows for energy to be bought in blocks by investors and consumers.  Baldacci signs law prompting smaller energyKennebec Journal

OR – The state’s legislature has passed some – but not all – of the energy-related legislation that was on the agenda for this session.  A bill that would create a low-carbon standard for fuel sold in Oregon has passed, but a bill that would guarantee that emissions will be 10% below 1990 levels by 2020 has not.  Some pending bills would reverse existing clean energy legislation, such as a bill that would decrease tax credits for alternative energy producers that easily passed the House, though Governor Kulongoski’s office has said that the Governor will not “allow any rollback.”  Many green-friendly bills don’t make the cut in OregonOregonian and Update: Bill to cut carbon emissions from gasoline, diesel fuel, gains approval - Oregonian

SD – South Dakota currently produces 237 megawatts of electricity with wind power and has some of the greatest potential for more, but only if transmission lines are upgraded to carry more alternative energy.  The state’s electricity grid has not been updated since the 1970s.  The Obama administration has designated $11 billion in stimulus funds to upgrade the nation’s electric grid and private companies have invested billions more to build the needed transmission lines.  While these improvements will allow more wind power to be created in South Dakota’s rural areas and used in populated centers, as well as lessen the chances for interruptions in the power supply, much more investment is needed to sufficiently expand transmission capacity.  Wind power blocked by ‘glass ceiling’Argus Leader

Regional and Federal News

The Regional Greenhouse Gas Initiative completed its fourth auction, selling 30.8 million pollution allowances for $3.23 each for a total of $104 million.  The 10 states in the Initiative have so far sold over 110 million allowances for a total of $366.5 million that will be used to weatherize homes, perform energy efficiency audits, help small businesses lower energy usage, and other uses.  Auction raises $104 M for renewable energyRutland Herald

Automakers Ford, Nissan, and Tesla will receive a total of $8 billion in order to retool their factories to build electric vehicles and battery packs and increase fuel efficiency.  Business leaders say tens of thousands of jobs will be created by the loans, which are part of the $25 billion in loans approved for automakers by Congress in 2007.  The cap-and-trade legislation currently being discussed in Congress contains a provision to double the loans to $50 billion.  The Energy Department is working with GM and Chrysler, who must get out of bankruptcy before being eligible for the loan.  3 automakers get loans to build more efficient carsWashington Post

The Senate Energy and Natural Resources Committee has voted 15-8 to pass what has been called a compromise between Republicans and Democrats on energy and climate change policy.  The legislation would require that utilities obtain 15% of their energy from renewable energy by 2021, but would not put a cap on the amount of greenhouse gases polluters could emit.  The bill would also allow drilling for oil within 45 miles of coastlines, provide incentives for carbon capture and storage, expand the national petroleum reserves, and increase funding for clean energy technology and training.  Senate panel approves energy billNew York Times

American Clean Energy and Security Act

On Friday, June 26, the House of Representatives passed the American Clean Energy and Security Act, written by House Energy and Commerce Committee Chairman Henry Waxman and promoted by President Obama by a vote of 219-212.  The legislation would limit emissions to 17% below 2005 levels by 2020 and 80% below 2005 levels by 2050.  Additional language was added the night before the vote, including additional emission allowances for rural electric cooperatives, authority for the US Department of Agriculture to determine agricultural offsets for farmers, and a number of other provisions benefiting specific industries.

During the debate, one point of contention between parties was the cost of the bill to rate-payers.  The Environmental Protection Agency estimates that the average household will pay an additional $80-$111 per year by 2020, while the Congressional Budget Office estimates the average household will pay an additional $175 per year by 2020, with those in lowest-income homes saving $40 per year due to rebates.  Republicans estimated that the average household would pay an additional $3,100 per year.

Another issue revolved around the efficacy of the provisions.  Supporters of the bill claimed that up to 1.7 million jobs would be created through the creation of clean energy infrastructure while opponents claimed millions of jobs would be lost in closing small businesses and manufacturers that cannot afford the additional costs.  Supporters also asserted that the reductions in emissions would stem or reverse global climate change, while opponents generally questioned the effectiveness of the legislation in the absence of international cooperation and the degree to which climate change poses a near-term threat.

Go Back

Energy Update, June 12, 2009

June 12, 2009

In the States

KS – Governor Mark Parkinson has announced an agreement that will result in  up to $800 million being spent on building new electric transmission lines that will send the power generated by Kansas’ wind turbines to other areas and states.  The lines are expected to be completed by 2013 and will carry 765,000 volts.  Kansas governor announces deal on transmission linesKansasCity.com

OK – One of the 26 new laws signed by Governor Brad Henry includes a plan to increase the availability of compressed natural gas to state vehicle fleets and consumers throughout the state.  Under the new law, the Department of Central Services will be authorized to build stations that dispense the alternative fuel for government vehicles.  These stations would also be open to the public unless a private station offers natural gas at a nearby location.  Governor signs alternative energy billTulsa World

VT – Governor Jim Douglas allowed a bill to become law without his signature that would establish feed-in tariffs for small wind, solar, and methane power operations that send power back to the grid.  Qualifying producers will receive 12 to 30 cents per kilowatt hour for the energy they produce, though that rate may be adjusted by the Vermont Public Service Board.  Vermont first to pass renewable energy feed-in lawBiomass Magazine

WY – One company has applied for and received a permit from the Bureau of Land Management to explore new ways of recovering an estimated 1.5 trillion barrels of oil from oil shale deposits.  The deposits were abandoned more than 30 years ago after it was determined that the process for extracting the oil would require more energy than would be produced by the oil that was recovered.  The companies involved, Anadarko Petroleum Corp. and General Synfuels International, believe they can improve the efficiency and eco-friendliness of the process.  Wyo. gets oil shale projectCasper Star Tribune

Federal and World News

In response to both the expected new rules requiring – and current incentives encouraging – more energy to be produced from renewable sources, several utilities in the Southeast and Midwest are building power plants that will use biomass for fuel.  Biomass plants are expected to create about half of the country’s renewable energy by 2030, and hundreds of millions of dollars have been invested in recent years.  Biomass is considered nearly carbon-neutral as the burning process produces only as much carbon as the biomass would if it had decomposed naturally.  It’s also a dependable source of energy that can be fed continuously into a furnace.  Though in the past biomass plants have used mostly waste material for fuel, some of the new plants will grow crops specifically for this purpose.  Biomass power generates tractionWall Street Journal

During a meeting of a bipartisan group of Southern Governors, some warned that the proposals being discussed in Congress now would increase the cost of fuel and electricity and negatively affect the economy.  Mississippi Governor Haley Barbour said that industries will move to countries with fewer restrictions, producing no impact on greenhouse gases and a negative impact on the economy.  West Virginia Governor Joe Manchin said “"If we don't have reliable low-cost energy, we will no longer be a political power.”  Offering another perspective, Arkansas Governor Mike Beebe asserted that a new energy policy provided the opportunity for states to create jobs and noted that Arkansas had attracted four foreign companies that make components for wind power.   Governors warn energy plan could stifle growthThe Washington Post    Separately, Governor Rick Perry and other elected Texas officials met with energy leaders and discussed the proposed cap-and-trade legislation that has passed the US House Energy and Commerce Committee.  Governor Perry said the bill “could wreck our traditional energy industry and put a very serious dent in our economy," and warned that “every American that uses any source of energy would see their bills go up.”  Texas blasts federal efforts to flight global warmingWall Street Journal

A group of representatives from a range of public and private interests that was convened in 2007 at the request of Governors from six Midwestern states and the premier of Manitoba have produced a list of recommendations that would lower carbon emissions in those states to 20% below 2005 levels by 2020 and 80% below 2005 levels by 2050.  The plan now calls for a regional cap-and-trade system to be established if the federal government does not create a national program by 2012.  Group sets greenhouse gas goals        – Topeka Capital-Journal

While the Democratic House energy bill, the American Clean Energy and Security Act (H.R. 2454), has passed the Energy and Commerce Committee, it awaits further consideration by several other committees before a vote by the full House.  For more information on the provisions of this bill, the online environmental news source, Grist, provides a concise summary: Everything you always wanted to know about the Waxman-Markey energy/climate bill–in bullet points - Grist

Meanwhile, House Republicans have released an outline of their proposal, the American Energy Act, which focuses on developing domestic energy sources such as nuclear power, and drilling for fuel offshore and in the Arctic.  The bill would also extend tax credits on renewable energy and cut red tape for new nuclear plants and refineries.  While it contains no limits on greenhouse gases, Republican leaders say tax credits would incentivize energy producers to use more renewable sources without raising costs for consumers.  House GOP offers nuclear-loaded energy billWashington Post and Summary of the American Energy Act [pdf]American Energy Solutions Group (House Republicans)

Of the $250 billion invested in new energy capacity in 2008, $140 billion went to clean energy investments and $110 billion was invested in fossil fuels, according to a report issued by the United Nations Environment Program.  Much of the investment growth in clean energy came from developing countries, while such investments grew only 2% in Europe and fell 8% in the US.  The report cites the ineffectiveness of tax credits during economic downturns among the reasons for the drop in investments in the US.  Clean energy funding trumps fossil fuelsNew York Times

Go Back

Energy Update, August 8, 2008

August 8, 2008
In The States

FL – Florida Power & Light’s Sunshine Energy Program, ostensibly designed for ratepayers to voluntarily fund alternative energy projects, has been shut down by the State’s Public Service Commission after an audit revealed that only 20% of contributions went towards its purported goal. Regulators and lawmakers expressed outrage at the program, claiming that its spending did not meet the wishes of its contributors. State shutters FPL ‘green’ programMiami Herald and Florida PSC terminates FPL’s Sunshine Energy ProgramRenewable Energy World

KY – Governor Beshear has ordered regulations to be written that would allow small, low-speed electric vehicles to be operated on public roads in Kentucky. The move is expected to help attract an electric car manufacturing company to build a plant in the state. Beshear authorizes electric cars on state roadsLouisville Courier-Journal

MA – Governor Patrick signed legislation which exempts cellulosic ethanol from the State’s gasoline excise tax and increases the amount of biodiesel required to be blended in with regular diesel at all of the diesel pumps and heating oil in Massachusetts. Massachusetts enacts advanced biofuels billRenewable Energy World

MD – Several measures are being taken in Maryland with the goal of creating a more sustainable transportation infrastructure. Specifically, Governor O’Malley announced the construction of four new E-85 pumps which will allow consumers to burn less fossil fuel, a mandate for the state’s vehicle fleet to use a blend of 5% biodiesel and more ethanol, a request for guidelines which will allow for more electric vehicles more quickly, and a public awareness campaign for public transit. State announces plans for more sustainable transportation fuel systemSouthern Maryland Online

ME – Maine’s State Solar Incentive Program, which provides $500,000 annually in rebates to rate-payers who install solar power and solar hot water systems on their homes, ran out of money on June 20. There will be no more money available for rebates for the next two years under the current plan. The owner of a solar energy company in Maine has suggested that a new solar rebate plan be added into a proposal to spend $3 billion over 10 years to insulate Maine’s homes. Mainers go solar, snap up systems that make heat as the sun shinesPortland Press Herald

TX – A proposal by NRG Energy Inc to build a coal-fired power plant in Texas is no longer being opposed by environmental groups after the company offered a compromise. In exchange for the groups not continuing their fight against the plant, NRG has agreed to either capture or offset half of its carbon emissions. The company will also support either a large-scale solar energy project or an energy efficiency program in the state. Green groups drop opposition to Texas coal plantReuters.com

WI - Governor Doyle expressed support for the Midwest Regional Greenhouse Gas Reduction Accord, a plan involving nine States and two Canadian provinces which would impose a cap-and-trade system on greenhouse gases. The Governor cited inaction on the federal government’s part to stem climate change as motivation to move forward with the plan. The group could begin reducing greenhouse gas emissions by 2012. Doyle advocates regional emissions planMilwaukee Journal Sentinel

Regional News

The Western Climate Initiative (WCI), which includes seven States and four Canadian provinces, has released a draft on how it plans to implement a regional cap-and-trade system for greenhouse gas emissions. The draft plan would begin monitoring emissions in 2010, capping industrial emissions in 2012, and would add other emissions in 2015. Unlike the Regional Greenhouse Gas Initiative in the Northeastern US that regulates only electric utilities, the WCI would regulate greenhouse gasses from several sources. Under the current plan, individual states would decide whether to hand out or auction off credits and polluters could write off up to 10% of their emissions by investing in offsets such as planting trees. Group proposes climate-saving strategySeattle Post-Intelligencer and U.S.-Canada carbon trading group eyes 2012 startReuters and Western states, provinces put together an emissions strategyOregonian

Despite the dramatic increase in talk of offshore oil drilling recently, there is little chance that such drilling would occur on the West Coast, even if Congress were to lift its ban on the process. The Governors of California, Oregon, and Washington have signed on to an action plan for the Pacific which opposes offshore drilling and promotes the health of the waters on the coast. 3 West Coast Governors oppose new offshore drillingLos Angeles Times

National News

The presidential candidates have been both touting their own and condemning each others’ energy plans recently. John McCain has called for the construction of 45 new nuclear power plants by 2030; Barack Obama has also called for more nuclear energy, but not without first studying how to deal with security of the fuel and disposal of waste. Sen. McCain recently reversed his earlier opinion and now enthusiastically endorses offshore oil drilling. Sen. Obama expressed doubts that it would help gas prices but that he is willing to compromise on the issue if a drilling bill also included alternative energy production and other green programs. Sen. Obama also proposed tapping the Strategic Petroleum Reserve in order to tamp down gas prices in the short term. McCain at nuclear plant highlights energy issueNew York Times and Obama, in new stand, proposes use of oil reserveNew York Times

For the fourth time this year, Congress has failed to pass legislation providing $18 billion tax credits for the production of alternative energy and energy efficiency products. The bill passed the House in May and most Senators agree with the tax credits. The National Governors Association sent a letter to Congress signed by all 50 Governors expressing support for a five-year extension of the credits. However, disagreements over how to pay for it have prevented it from going to the Senate floor for debate. Republicans disagree with the Democrats’ plan to offset the costs by postponing a tax break for multinational companies and preventing hedge fund managers from deferring some overseas profits. The alternative energy industry has expressed to Congress that if the bill was not passed this time, many projects would halt due to uncertainty in funding. President Bush has threatened a veto if the bill is passed with the Democrats’ offsets. Solar, wind tax credits stalledSan Jose Mercury News and GOP blocks action on tax, renewable energy packageAssociated Press and Stalling our energy futurePolitico and 50 out of 50 Governors call for a renewable energy tax credit extensionIndustry Week

Go Back

Energy Update, June 18, 2008

June 5, 2008
In The States

CA
– Supporters of an alternative energy ballot initiative have gathered enough signatures to put it on the ballot this fall, and has been certified by the Secretary of State. Initiative 07-0066 will require the state’s utilities to generate 20% of their power from alternative energy by 2010, 40% by 2020, and 25% by 2050. Four more measures make fall ballotSacramento Bee (free registration required)

FL
– New solar plants are being proposed in Florida in response to high fuel costs. One utility in the state is attempting to build a new solar concentration plant which would become the largest in the state, creating 75 megawatts. This is still significantly less power than is created with traditional power plants. Other projects include traditional solar cell plants, creating a total of 35 megawatts. FPL seeks OK for large solar plant in Martin, with 2 more in wingsPalm Beach Post

MN –
A new law in Minnesota requires that all diesel sold in the state be made up of a blend of 80% regular diesel and 20% biodiesel by 2015. There are a series of steps, however, that must be met before that happens. Every three years, the legislature must approve of an increase in biodiesel blend, first to 5% (up from the current 2%) in May 2009, then to 10% and then 20%. The legislature will determine whether to raise the biodiesel mandate by evaluating supply and demand of the product. Also, 5% of the fuel must come from non-traditional resources such as algae or waste oil. Minnesota Passes B20 MandateRenewableEnergyWorld.com

UT
– State Department of Environmental Quality Director Rick Sprott is distributing a plan to help Utah lower its carbon emissions while not creating new restrictions or mandates on businesses or individuals. Sprott used examples of greater efficiency, such as in autos or coal plants, and iterated that the plan is not a mandate, but is only to guide future policy decisions. State setting greenhouse gas goalsDeseret News

National News


The US Senate has voted to debate the Climate Security Act legislation (S. 3036) which would impose a cap-and-trade system on emissions which contribute to global warming. The first day of debate focused on the cost of implementing the bill, a major concern in the veto threat. Talks quickly broke down, however, when Majority Leader Harry Reid moved to introduce Sen. Barbara Boxers substitute amendment. To protest a different issue, Minority Leader Mitch McConnell asked that the bill be read aloud, causing a four-hour wait before talks could begin again. Senate Republicans also expressed concern at the speed with which the bill was moving, saying that the importance of the legislation requires lengthy debate and many amendments.
Senate moves ahead on climate billCQ.com (subscription) and Statement of administration policyExecutive Office of the President and Senate debate on climate legislation stallsCQ.com (subscription)

A bi-partisan majority passed legislation in the US House (HR 6049) that would both create new and extend existing tax breaks totaling over $55 billion for individuals, businesses, and energy producers. Thirty-five House Republicans and all but one Democrat voted for the bill. Many Republicans opposed it because it does not extend the Alternative Minimum Tax patch and it includes pay-go provisions. The bill includes billions in tax relief for renewable energy production which, if nothing is done, would expire at the end of 2008. If signed into law, the tax incentives would expire at different times: wind energy production incentives would expire in 2009 while solar, geothermal, and other clean energy production tax breaks would expire at the end of 2011. Tax breaks for homeowners who install solar technology would be extended to 2014. Other uses for this money include projects for carbon capture, energy efficiency, and conservation, and various tax breaks and credits for education and homeowners. This tax break is not offset by a reduction in tax breaks for oil and gas companies, making it potentially more appealing to the Senate.
House votes to extend tax breaks to individuals, businessesCQ.com (subscription) and House-passed legislation to extend tax breaks faces uncertain future - CQ.com (subscription) and US House passes renewable energy tax credit extension billrenewableenergyworld.com and Summary of H.R. 6049: Renewable Energy and Job Creation Act of 2008 (pdf)US House Ways and Means Committee

After dozens of hearings as chair of the House Select Committee on Energy Independence and Global Warming, and a year of crafting legislation, Sen. Edward Markey will introduce a cap-and-trade bill next week which would decrease American carbon emissions even more than the Lieberman-Warner legislation. The new bill would cut greenhouse-gas emissions by 85% by 2050, auction nearly all pollution credits, and use half of the estimated $8 trillion in proceeds to subsidize energy costs for low- and middle-income households and the other half to promote alternative energy.
Markey unveils sweeping new global warming billBoston Globe and Markey unveils sweeping climate change legislationPolitico and Executive summary of Rep. Markey’s climate legislation (pdf)Congressman Markey’s Website

Go Back

14 blog posts