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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

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