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Energy Advisor Annual Report

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Annual Report by the Utah Energy Advisor presented to the state legislature in November 2009.

Annual Report by the Utah Energy Advisor presented to the state legislature in November 2009.

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  • 1. Utah Energy ENERGY ADVISOR’S ANNUAL REPORT 2009 Presented to the UTAH STATE LEGISLATURE NATURAL RESOURCES, AGRICULTURE & ENVIRONMENT INTERIM COMMITTEE, 10/21/09 and the PUBLIC UTILITIES AND TECHNOLOGY INTERIM COMMITTEE, 11/18/09 Dianne R. Nielson, Ph.D. Governor’s Energy Advisor http://www.energy.utah.gov
  • 2. ENERGY ADVISOR’S ANNUAL REPORT 2009 OBJECTIVES OF REPORT • Review Utah’s energy resources production and consumption • Identify actions and challenges to energy development, extraction, production, refining, and transportation in 2009 • Consider the long-term issues and trends in Utah Energy
  • 3. UTAH ENERGY GOALS • AFFORDABLE ENERGY • SUSTAINABLE ECONOMY • STRENGTHEN ENERGY SECURITY AND INDEPENDENCE • REDUCE EMISSIONS
  • 4. www.geology.utah.gov
  • 5. www.geology.utah.gov
  • 6. www.geology.utah.gov
  • 7. UTILITY-SCALE ELECTRICITY PRODUCTION IN UTAH 2008 Preliminary Coal 38,130,000 mWhr Crude Oil 29,000 mWhr Natural Gas 7,259,000 mWhr Nuclear Hydroelectric 278 mWhr Geothermal 43 mWhr Biomass 7 mWhr Wind 19 mWhr Solar Electricity Production 2007 45,373 GWhr Electricity Production 2008 46,466 GWhr Fossil Fuels 82% Natural Gas 16% Renewables 2% www.geology.utah.gov
  • 8. Utah Electricity Production in 2008 by Fuel Type Renewables incl. Hydropower 2% Natural Gas 16% Coal 82% Based on data from www.geology.utah.gov
  • 9. Rocky Mountain Power - Pacificorp Electricity Generation Capacity by Fuel Type March 2006 September 2009 Net megawatts owned, in operation or under construction.
  • 10. NOAA, 2009
  • 11. Energy Strategy • Diversify Energy Portfolio of Renewables and Nonrenewables • Improve Energy Efficiency • Improve Environmental Quality and Reduce Emissions • Develop Transmission and Transportation • Encourage Energy Security and Independence • Promote Economic Development • Maintain Quality of Life
  • 12. Continue Meeting Energy Production Needs in Utah • Support Oil Shale Leasing, and joint lead the Unconventional Fuels Task Force with DOE & Other States • Work to resolve gas development environmental issues in Nine Mile Canyon/West Tavaputs • Participant on Uintah Basin Oil and Gas partnership (UBOGCG) • Support transmission and pipeline planning and review in Utah
  • 13. 20% of Utah’s Electricity Generated from Renewable Energy by 2025 • UREZ Phase I & II • Co-chaired WREZ I for WGA • Commissioned study on clean energy green jobs • Work with SEP & UCE on model ordinances for renewable energy • Work with EDCUtah and GOED to bring additional energy development to Utah
  • 14. Spanish Fork Wind Power Plant Photo courtesy Rocky Mountain Power • Spanish Fork City, Utah County. August 2008 • 9 Turbines produce: 18.9 mW capacity • School district receives $1.267 million in first 20 years of the project. $112,000 property tax payments. • 12 long term jobs, additional jobs during construction • Construction Cost: $4.78 million • Annual emission offsets: 115,000 lbs. CO2; 88,000 lbs. SO2; 241,000 lbs. NOx; • Estimated power for 6,100 average homes • Wind farm site still used for culinary water source and gravel mining • Utah Senate District 27, Utah House District 66
  • 15. Milford Wind Corridor Photo courtesy of Rob Adams • Beaver and Millard Counties. Construction Phase 2009 • 203 mW plant, with up to 4 phases possible • Estimated $2.5 million property tax payments annually for 20 years • 10-15 ongoing jobs; 225 on-site jobs during construction • Estimated $23 million subcontracts for UT companies • Annual emission offsets: 220,000 tons CO2; 389 tons NOX; 303 tons SO2 • Milford Wind estimated power: 44,000 homes with 1st phase • Wind farms require almost no water, and emit no mercury • Located in an identified Utah Renewable Energy Zone (UREZ) • Utah Senator District 28, Utah House Districts 68 & 73
  • 16. Blundell Geothermal Plant • Milford, Beaver County. July 1984 Photo courtesy Rocky Mountain Power • 34 mW Capacity • Rocky Mountain Power clean energy plant • 22 permanent jobs • Annual emission offsets: 204,000 T CO2 • Serves electricity needs of more than 25,000 average residential customers • First geothermal power plant in the U.S. outside of CA • Utah Senate District 28, Utah House District 73
  • 17. Orrin G. Hatch Thermo Springs Photo courtesy of Raser Technologies • Beaver County. November 2008, built in 6 months. • 10 mW capacity in 2008; up to 235 mW future development • Used local contractors, engineering, and labor. • 6 ongoing jobs; 70 construction jobs • Construction and development costs: $58 million • Annual emission offsets: 60,000 tons CO2 • Raser estimated power at full development: 267,000 homes • Raser’s technology enables production at lower temperatures and shallow sites • Utah Senate District 28, Utah House District 73
  • 18. 2009 Blue Sky Funded Community-based Projects • Three Peaks Elementary School, Iron County • 7.3 kW Wind Project • UT Senate District 28, UT House District 72 • Ecker Hill Middle School, Summit County • 1.7 kW Solar Project • UT Senate District 26, UT House District 25
  • 19. Blue Sky Funded Community-based Projects •East High School, Salt Lake County •1.7 kW Solar project •UT Senate District 7, UT House District 25 •Hogle Zoo, Salt Lake County •10.8 kW Solar Project •UT Senate District 7, UT House District 28 •Clark Planetarium, Salt Lake County •25 kW Solar Project, Educational Module Shown •UT Senate District 2, UT House District 24
  • 20. 20% Improvement in Energy Efficiency by 2015 • Established Public/Private Partnership UBEES (Utah Building Energy Efficiency Strategies) • Energy Efficiency in the State Vehicle Fleet • Co-developed, with DAS, Think!Energy Utah, state employee energy efficiency • Awarded NGA Policy Academy Energy Efficiency for developing energy strategies for buildings • Promote and fund Energy Code Training for building inspectors
  • 21. State of Utah Fleet • Individual agencies right-sized 116 vehicles over the past 2 years. • State vehicles traveled over 2.8 million miles less in fiscal year 2009 than in fiscal year 2007. This is reduction of nearly 3.5%.
  • 22. • The “Think! Energy Utah” program is a self awareness challenge to all state employees to make an impact in our energy efficiency in the following areas: – Our workplaces – Our transportation – Our homes
  • 23. Meet PM2.5 and Ozone Standards and Reduce Greenhouse Gases Emissions to 2005 Level by 2020 • Reduce emissions from transportation • Implement CNG I-15 Corridor Plan and work with EPA on CNG conversions • Work with USTAR on Carbon Capture and Sequestration • Encourage Landfill Gas Utilization
  • 24. I-15 CNG Corridor Legend:
  • 25. Gallons of CNG Gallons of CNG dispensed at Utah’s public fueling stations Months (Jan 2007-August 2009) Graph provided by: Questar Gas
  • 26. Utah’s DOE FY 09 Clean Cities Grant • Funding goes towards –10 new CNG stations with various owners, including the state of Utah –6 CNG Upgrades (State of Utah) –3 Biodiesel –3 L/CNG (CH4 Energy and UPS (2)) –Questar Gas 18 CNG station upgrades –Questar Gas 6 new CNG stations –Incremental cost reduction for alternative fueled vehicles
  • 27. State of Utah Fleet • The state fuel network has increased the amount of alternative fuels available to our fleet. • Use of biodiesel alone is up nearly tenfold from 2007. • Alternative fuels along with reductions in miles and fuel have resulted in a CO2 reduction of 3,700 metric tons, equal to 672 vehicles off the road.
  • 28. Idle Free Awareness Week Image from: http://www.idlefree.utah.gov/ • Governor Herbert, Mayor Becker, Mayor Coroon, Mayor Billings, and Mayor Godfrey all signed the Idle Free Awareness Week joint declaration on September 21, 2009 at Mountain View Elementary School.
  • 29. Idle Free Awareness Week • Every citizen can similarly improve our state’s air quality if they turn off their vehicles whenever they are going to idle more than 10 seconds.
  • 30. School Bus Drivers Achievements • In the 2008 school year 3,000 school bus drivers in Utah reduced their combined idling time by 21 minutes per day per bus. • This produced an air quality benefit of preventing 5,000 lbs. of particulate matter emissions and improved our state’s air quality.
  • 31. Clear the Air Challenge cleartheairchallenge.org 19,412 Total Trips Eliminated cleartheairchallenge.org = 1,085,286 Miles Saved = $629,466 Saved = 1,860,495 Pounds of Emissions Reduced
  • 32. Other Accomplishments • Quarterly Energy Forums on traditional and renewable energy • Fund and Coordinate with the Energy Emergency Planner • Work on regional transmission boards • Serve on various advisory boards such as: Envision Utah, Industrial Advisory Board, and Institute for Clean and Secure Energy. • Work on energy with rural development representatives Utah Energy
  • 33. UTAH ENERGY CHALLENGES • AFFORDABLE ENERGY • SUSTAINABLE ECONOMY • STRENGTHEN ENERGY SECURITY AND INDEPENDENCE • REDUCE EMISSIONS
  • 34. Additional Information The following information provides more details on energy resources and energy issues in Utah.
  • 35. UTAH ENERGY POLICYPolicy Utah Energy UCA 63M-4-301 Utah will: • Have adequate, reliable, affordable, sustainable, and clean energy resources; • Promote development of nonrenewable resources; • Promote development of renewable resources; • Promote study of nuclear power; • Promote development of resources and infrastructure reducing dependence on international energy sources; • Pursue energy conservation, energy efficiency and environmental quality; • Streamline regulatory processes; • Encourage expedited federal action; and • Provide an environment for stable consumer prices.
  • 36. Energy Advisor’s Duties The Governor's Energy Advisor shall: • Advise the governor on energy-related matters; • Review and propose updates to the state's energy policy; • Promote as necessary: (i) Development of cost-effective energy resources both renewable and nonrenewable; and (ii) Educational programs, including programs supporting conservation and energy efficiency measures; • Coordinate across state agencies to assure consistency with state energy policy, including: (i) State Energy Program’s federal assistance for energy-related projects for state agencies and members of the public; (ii) Division of Homeland Security’s energy emergency powers; (iii) Energy emergency plan annual review and the maintenance; (iv) Low-income consumers' access to energy services; • Coordinate with the Division of Homeland Security to test energy emergency plan and share information among state agencies, political subdivisions, public utilities and other energy suppliers, and other relevant public sector persons;
  • 37. Energy Advisor’s Duties (cont.) The Governor's Energy Advisor shall: • Coordinate with requisite state agencies to study: (i) Creation of a centralized state repository for energy-related information; (ii) Methods for streamlining state review and approval processes for energy-related projects; and (iii) Development of multistate energy transmission and transportation infrastructure; • Coordinate energy-related regulatory processes within the state; • Compile and make available information about federal, state, and local approval requirements for energy-related projects; • Act as the state's advocate before federal and local authorities for energy-related infrastructure projects or coordinate with the appropriate state agency; and • Help promote the Division of Facilities Construction and Management's energy efficiency improvements in state buildings.
  • 38. COAL PRODUCTION IN UTAH Production – mines in Carbon, Emery, and Sevier Counties* 2007 24,288 tsT (10 mines) 2008 24,275 tsT (9 mines) Price 2008 $26.39 Coal Use • Electric Utility • Industrial • Residential/Commercial Key Issues • Impacts of carbon reduction and diversified electricity generation • Operational carbon capture and sequestration with electricity generation (Greenhouse Gas reduction) • Other Coal to Energy technologies (eg., coal-to-liquids) • Mine safety *Utah Geological Survey http://geology.utah.gov
  • 39. CRUDE OIL PRODUCTION IN UTAH Production 2007 19.7 million barrels 2008 22.0 million barrels Drilling Permits Oil and Gas 2007 permits 1552 2008 1359 Crude Oil Use Transportation Fuel Industrial Key Issues • Price • Exploration/Production Air Pollution • Reduction of Greenhouse Gases • Energy security • New pipeline 2008 Economic Report to the Governor Utah Geological Survey www.geology.utah.gov
  • 40. OIL SHALE AND TAR SANDS IN UTAH Resource – Oil Shale Potential Economic Resource* 77 billion barrels Utilization Transportation Fuel Industrial Key Issues • Moratorium on BLM review • Leasing • Baseline Air Quality Study • Reduction in Air Pollutants • Reduction of Greenhouse Gases • Energy Security • Unconventional Fuels Reports – completed • Production/Refining Technology * Utah Geological Survey www.geology.utah.gov
  • 41. NATURAL GAS PRODUCTION IN UTAH Production Natural Gas 396.8 billion cubic feet (bcf) Coalbed Methane 76.7 bcf Natural Gas Utilization Electric Utility Transportation Industrial Residental/Commercial Heating Key Issues • Price • Reduction in Air Pollutants • Reduction of Greenhouse Gases • Energy security • Pipeline Right-of-Ways 2008 Economic Report to the Governor Utah Geological Survey www.geology.utah.gov
  • 42. RENEWABLE ENERGY RESOURCE PRODUCTION IN UTAH Production 2008 2% of electricity generation Renewables Use Electric Utility Distributed Energy Use Ground Source Heating and Cooling Key Issues • Price • Identifying resources and concentrations of renewables to meet electricity demand in Utah and exported power • Transmission • Energy security 2008 Economic Report to the Governor Utah Geological Survey www.geology.utah.gov
  • 43. GREENHOUSE GAS EMISSIONS About 87 percent of U.S. greenhouse gas emissions come from energy production and use, as shown in the left pie chart. The right pie chart breaks down these emissions by greenhouse gas. (NOAA, 2009)
  • 44. UTAH GREENHOUSE GAS EMISSIONS Nicholas Institute, 2009
  • 45. Current Actions – the following are not dependent on Electricity Sector GHG C/T or Regulation; all supported with state and federal funds and programs Energy Efficiency Energy Conservation Renewables Clean Fossil & Nuclear Clean, Efficient Vehicles Alternative Vehicle Fuels Energy Building Codes New Infrastructure Trained Workforce Efficient Permitting Incentives and Tax Credits Loan Guarantees Renewable Portfolio Standard Public Participation CO2 Sequester/Commercialize Private Sector Initiatives New Transmission and Access State Initiatives Maintain Air Quality Standards Maintain Water Standards Adaptation Envisioning Leadership Collaboration
  • 46. I-15 CNG Corridor Legend:
  • 47. Utah’s DOE FY 09 Clean Cities Grant • Partners’ contributions – Cost share from partnership • Approximately 28.5% of funding coming from federal funds ($14.9 million) and 71.5% Utah’s partners match • Total match from UT partners: $37,458,715 – 365 new and retained jobs – Purchase of 678 new alternative fueled vehicles
  • 48. Utah’s DOE FY 09 Clean Cities Grant • Benefits to Utah –Displacement of approximately 3.9 million gallons of petroleum annually –Emission reduction of 7,036,836 pounds of CO2 equivalent, based upon DOE calculation –A pro-active second Clean Cities Coalition office based in Washington County

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