Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Policy Drivers For Renewable Energy Development (00287740)


Published on

Policy Drivers for Renewable Energy Development, The Future of Oregon’s Water Supply & Management
Portland, Oregon – March 17, 2011

  • Be the first to comment

  • Be the first to like this

Policy Drivers For Renewable Energy Development (00287740)

  1. 1. Policy Drivers For Renewable Energy Development Dustin T. Till Marten Law 503.243.2200 <ul><li>The Future of Oregon’s Water Supply & Management </li></ul><ul><li>Portland, Oregon – March 17, 2011 </li></ul>
  2. 2. Revenue Streams for Small Hydro Projects <ul><ul><li>Electricity – PURPA </li></ul></ul><ul><ul><ul><li>Requires utilities to purchase power if the cost is less than the utilities avoided cost of generation or acquisition </li></ul></ul></ul><ul><ul><li>Renewable Energy Credits (RECs) </li></ul></ul><ul><ul><ul><li>Commodity of Renewable Portfolio Standards (RPSs) / Clean Energy Standards (CESs) </li></ul></ul></ul>
  3. 3. Discussion Points <ul><li>Federal Climate Change Policy </li></ul><ul><li>Regional Cap-and-Trade Programs </li></ul><ul><li>Renewable Portfolio Standards / Clean Energy Standards </li></ul><ul><li>Treatment of Hydro Under West Coast RPSs </li></ul>
  4. 4. Federal Climate Policy – Cap and Trade is Dead <ul><li>American Clean Energy & Security Act </li></ul><ul><ul><li>Narrowly Passed House in June 2009 </li></ul></ul><ul><ul><li>Large Industrial Sources – 25,000 MtCO2e </li></ul></ul><ul><ul><li>17% Reduction in GHG Emissions by 2020 </li></ul></ul><ul><ul><li>Majority of Allowances Distributed for Free </li></ul></ul><ul><ul><li>15% RES </li></ul></ul><ul><li>Companion Bills in Senate </li></ul><ul><ul><li>Kerry - Lieberman </li></ul></ul>
  5. 5. What Cap and Trade Looks Like Courtesy of U.S. Chamber of Commerce
  6. 6. Federal Direct Regulation of GHGs <ul><li>EPA’s Clean Air Act Regulations </li></ul><ul><ul><li>Massachusetts v. EPA, 127 S. Ct. 1438 (2007) </li></ul></ul><ul><ul><li>Endangerment Finding </li></ul></ul><ul><ul><li>Mobile Source Emission Standards </li></ul></ul><ul><ul><li>Clean Air Act Tailoring Rule </li></ul></ul><ul><li>Legal Challenges </li></ul><ul><li>Congressional Challenges </li></ul>
  7. 7. Regional Climate Policy – Long Live Cap and Trade <ul><ul><li>23 states and four Canadian providences are participating in some capacity in the three regional GHG trading programs </li></ul></ul><ul><ul><li>Account for over half of the United States’ GDP and over 37 percent of the United States’ GHG </li></ul></ul><ul><ul><li>Regional Greenhouse Gas Initiative </li></ul></ul><ul><ul><ul><li>Only operative cap-and-trade program in U.S. </li></ul></ul></ul><ul><ul><ul><li>Applies to electric utilities </li></ul></ul></ul><ul><ul><ul><li>2009-2014 – stabilize emissions </li></ul></ul></ul><ul><ul><ul><li>2014-2018 – reduce emissions by 2.5% per year </li></ul></ul></ul><ul><ul><ul><li>Allowances trading at $1.89 </li></ul></ul></ul>
  8. 8. Western Climate Initiative <ul><li>7 States and 4 Provinces </li></ul><ul><li>15% below 2005 by 2020 </li></ul><ul><li>All economic sectors </li></ul><ul><li>25,000 MtCO2 Threshold </li></ul>
  9. 9. WCI – California and New Mexico <ul><li>Only 2 states ready to implement WCI in 2012 </li></ul><ul><li>California </li></ul><ul><ul><li>AB-32 </li></ul></ul><ul><ul><li>CARB Rules </li></ul></ul><ul><ul><li>25,000 MtCO2e threshold </li></ul></ul><ul><li>New Mexico </li></ul><ul><ul><li>Participation Contingent on California </li></ul></ul>
  10. 10. Renewable Portfolio Standards <ul><li>Principal driver of renewable energy development </li></ul><ul><li>30 states binding RPS requirements </li></ul><ul><li>7 States with RPS “goals” </li></ul><ul><li>Market-based compliance </li></ul><ul><li>RECs and TRECs </li></ul>
  11. 11. Renewable Portfolio Standards- Federal <ul><li>Currently, No Federal RPS </li></ul><ul><li>President Obama’s CES </li></ul><ul><ul><li>80% by 2035 </li></ul></ul><ul><ul><li>Would include traditional renewable resources, and “clean” energy resources like clean coal, nuclear, and natural gas </li></ul></ul><ul><ul><li>Consumer Price Protections & Regional Equity </li></ul></ul><ul><li>Prior Legislative Proposals </li></ul><ul><ul><li>ACES </li></ul></ul><ul><ul><li>ACELA </li></ul></ul><ul><ul><li>PECPA </li></ul></ul>
  12. 12. Renewable Portfolio Standards- States <ul><li>30 States with Mandatory RPS / 7 with RPS “Goals” </li></ul><ul><li>Oregon </li></ul><ul><ul><li>PGE, PacifiCorp, & EWEB </li></ul></ul><ul><ul><ul><li>5% 2011; 15% by 2015; 20% by 2020; 25% by 2025 </li></ul></ul></ul><ul><ul><li>Other Utilities – 5% or 10% in 2020 (depending on size) </li></ul></ul><ul><ul><li>Goal – 8% of RPS Compliance from Small-Scale Projects (<20 MW) by 2025 </li></ul></ul>
  13. 13. Oregon RPS (con’t) <ul><li>What Resources Qualify as “Renewable”? </li></ul><ul><ul><li>Wind, Solar, Tidal / Ocean, Geothermal, Some Biomass, Some Hydro </li></ul></ul><ul><li>Compliance </li></ul><ul><ul><li>20% through TRECs (50% for large COUs through 2020) </li></ul></ul>
  14. 14. California RPS <ul><li>Primary Driver of Western Renewable Energy Markets </li></ul><ul><li>2 RPS Standards </li></ul><ul><ul><li>Legislative – 20% by 2010 (IOUs Only) </li></ul></ul><ul><ul><li>Regulatory – 33% by 2020 (IOUs and COUs) </li></ul></ul><ul><li>Treatment of TRECS </li></ul><ul><ul><li>CPUC Lifted Moratorium on Use of TRECs In January 2011 </li></ul></ul><ul><ul><li>25% of Compliance Obligation </li></ul></ul><ul><li>Legislative Proposals </li></ul><ul><ul><li>Expand RPS to 33% and Incorporate COUs (Senate Bill 2X) </li></ul></ul>
  15. 15. Treatment of Hydro <ul><li>Oregon </li></ul><ul><ul><li>Pre-1995 Facilities </li></ul></ul><ul><ul><ul><li>Efficiency upgrades made after Jan. 1, 1995 </li></ul></ul></ul><ul><ul><ul><li>Certified Low-Impact Hydro (50 aMW per year) </li></ul></ul></ul><ul><ul><li>Post-1995 Facilities </li></ul></ul><ul><ul><ul><li>Located outside of certain state, federal, or NW Power & Conservation Council protected areas </li></ul></ul></ul>
  16. 16. Treatment of Hydro, con’t <ul><li>California </li></ul><ul><ul><li>Small Hydro </li></ul></ul><ul><ul><ul><li>Pre-2006: <30 MW, located in-state or satisfies out-of-state RPS standards </li></ul></ul></ul><ul><ul><ul><li>Post-2006: <30 MW, cannot “cause an adverse impact on instream beneficial uses or a change in the volume or timing of streamflow.” </li></ul></ul></ul><ul><ul><li>Separate standards for conduit and efficiency upgrades </li></ul></ul><ul><ul><li>Proposal – run-of-river hydro projects in B.C. </li></ul></ul>
  17. 17. Treatment of Hydro, con’t <ul><li>Washington </li></ul><ul><ul><li>Limited to efficiency upgrades without increased diversions and impoundments </li></ul></ul><ul><ul><li>New hydro facilities are not currently included in the Washington RPS </li></ul></ul>
  18. 18. Questions? <ul><li>Thank you for attending. </li></ul><ul><li>For additional information on </li></ul><ul><li>today’s topic, please contact: </li></ul><ul><li>Dustin T. Till </li></ul><ul><li>503.241.2641 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul>