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Energy Advisor Annual Report
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
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.
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
22. 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
23. 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%.
24. • 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
25. 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
27. Gallons of CNG Gallons of CNG dispensed at Utah’s public fueling stations
Months (Jan 2007-August 2009)
Graph provided by: Questar Gas
28. 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
29. 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.
30. 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.
31. 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.
32. 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.
33. 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
34. 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
35. UTAH ENERGY CHALLENGES
• AFFORDABLE ENERGY
• SUSTAINABLE ECONOMY
• STRENGTHEN ENERGY SECURITY
AND INDEPENDENCE
• REDUCE EMISSIONS
37. 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.
38. 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;
39. 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.
40. 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
41. 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
42. 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
43. 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
44. 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
45. 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)
47. 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
49. 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
50. 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