Introduction The race toward a clean-energy future is underway, and those nations that lead will reap enormous economic benefits. With the right investments and smart policies, the United States can be among them, a top player in the emerging global low-carbon economy. The just-elected 112th Congress will be quite different—and much more conservative—than the 111th Congress that enacted major health care and financial reforms but failed on clean energy legislation. As we can see, there were a number of bipartisan proposals to address these challenges over the past two years.
ACES, ACELA, APA Bills After the election day hurricane that replaced moderate legislators with conservatives it's clear that global warming solutions will need to meet certain criteria - -similar ideas that previously had significant bipartisan support, significant support from business, and little impact on the federal deficit
Three sets of clean energy objectives, abstracted from the house and senate bills have fairly broad bipartisan support: reducing oil consumption, investing in renewable and efficient energy solutions that create jobs; and new protections to prevent future BP oil disasters
The BP oil disaster and rising oil prices are reminders that the United States must dramatically reduce its oil use to enhance energy security and economic prosperity. Americans currently spend $1 billion per day on oil imports, and one out of every five barrels of oil consumed in the United States comes from countries the State Department classifies as “dangerous or unstable .” Natural gas trucks CAP estimates that converting a significant portion of medium and heavy trucks and buses to natural gas could save 1.2 million barrels of oil per day by 2035. Electric cars The Electric Vehicle Deployment Act, S. 3442 and H.R. 5442 , would speed the transition to electric vehicles by creating a $400 million pilot program to help up to 15 communities create electric vehicle recharging infrastructure for plug-in hybrid and all electric vehicles, such as the Chevrolet Volt and Nissan Leaf.
One of the easiest and most cost-effective ways to reduce pollution and save money is to simply use less energy in our homes and businesses. Homestar and Building Star would provide incentives for homeowners and building owners to invest in simple and effective energy savings measures that will lower electricity bills and return these savings to families’ or businesses pockets. These incentives will also create thousands of jobs in energy efficiency technology sales and installation . Federal and State & Local Incentives for tax paying home and building owners include : Federal and NC Tax Credit for cost of panels and installation You must have the tax liability but the credit can be carried over. Maximum Federal: $10,500 Maximum State: $ 9,000 Chatham County Rebate Program
Other nations, particularly Spain, Germany and China have invested significant resources and adopted policies that would boost their domestic clean energy industries. This has also helped them create an export market for these new technologies. The key to successfully restoring markets is to send clear policy signals that create investment certainty. A commitment to reducing carbon emissions is the first and best signal that a country is serious about moving toward low-carbon electricity and fuel solutions. The United States risks falling out of the running to lead this 21st century industry if we do not invest more in this field.
GREEN BANK An independent Clean Energy Deployment Administration or “green bank” would provide capital - loans, guarantees, and credit enhancements - to help companies successfully traverse the so-called “valley of death” to take new technologies from successful R&D to deployment. CEDA funds would provide this capital and leverage $10 in private capital for every $1 of public investment. CEDA has bipartisan support in the House and Senate. It was included in ACES and ACELA in slightly different forms
TRANSMISSION A missing ingredient in U.S. efforts to generate more renewable electricity and manufacture more clean energy technology is our aging system of transmission lines. Electricity congestion currently costs the eastern United States $16.5 billion each year . Additionally, transmission lines must be enhanced and expanded to transfer clean electricity from wind turbines in North Dakota to factories in Illinois. Studies of three comparable large-scale projects show that on average new transmission lines create about 14 jobs per mile of transmission…
. … as well as funding for education in science, technology, and math that will help prepare students to become leaders in the low-carbon economy.
RENEWABLE ELECTRICITY STANDARD Thirty states have a renewable electricity or portfolio standard, or RES, including North Carolina. STATE CLEAN ENERGY PROGRAMS Congress should allow states to set long-term, pre-determined, cost-based rates at which renewable electricity generators can sell their power to utilities. These renewable energy payments—sometimes called “feed-in tariffs”—create the transparency, longevity, and certainty in policy that makes financing renewable energy possible. ACES includes a provision (Section 102) to clarify that states have this right. The Let the States Innovate on Sustainable Energy Act, S. 3923, has similar language
North Carolina’s leaders adopted the REPS law because they learned that using renewable energy resources inside North Carolina and finding more ways to save energy would cost our citizens less than simply building more coal, nuclear and natural gas power plants to meet our growing electricity needs The REPS will achieve these goals by promoting energy efficiency measures while incorporating renewable energy resources into the fuel mix used for generating the electricity we use. Should the US Congress enact a federal renewable energy standard (ES), Session Law 2007- 397 says our leaders must implement whichever law is stronger – either the state law or a new federal law.
By combining energy efficiency and renewable energy, NC would experience a maximum potential electricity rate increase of less than 1%. Energy efficiency has been proven to be a low-cost, method for reliably reducing electricity demand. Many energy efficiency measures, if implemented by businesses independent of regulated utilities, can be cheaper than current retail electricity rates.
North Carolina’s market for renewable energy cannot thrive without a functional and usable interconnection standard and netmetering. Net metering …in essence, allows the owner’s electric meter to roll backwards. The billing arrangement lets your excess electricity roll over for one year
Also, the REPS law declares a REC generated from a renewable resource cannot be counted by both programs – it may be applied to either the REPS or to NC GreenPower, but not to both
REPS will produce unprecedented economic benefits to North Carolina, enabling the state to: Avoid nearly $500 million in costs for new coal, natural gas and nuclear power by investing in North Carolina renewable sources and efficiency Eliminate the need for at least 1,800 megawatts of coal and nuclear power plants Make it more transparent to connect a renewable energy system to the electricity grid Reduce cumulative greenhouse gas emissions by approximately 125 million metric tons between 2007 and 2020
By satisfying the REPS and passage of additional sustainable energy policies, North Carolina is likely to become the Southeast economic leader in the green energy economy and maintain a high quality of life for North Carolina citizens for generations to come. The public can participate in the rulemaking process by writing letters to the NC Utilities Commission at 4325 Mail Service Center, Raleigh, NC 27699-4325. The three most important issues to stress in personal correspondence to the NCUC: Transparency • To develop sufficient renewable energy to satisfy the REPS requirements as cheaply as possible, competition needs to exist. This competition will only happen with transparency in renewable energy markets and limits on how much renewable energy is owned and operated by regulated utilities. Energy Efficiency • in the adopted rules, only the utilities can produce energy efficiency RECs. There is no competition allowed among North Carolina’s hundreds of energy efficiency companies to meet the REPS requirement through energy efficiency programs Ensuring Compliance The passage of the REPs in 2007, RE & EE Requirement are now the law in North Carolina
According to the U.S. Bureau of Labor Statistics Green jobs are defined as:: Jobs in businesses that produce goods or provide services that benefit the environment or conserve natural resources. Jobs in which workers’ duties involve making their establishment’s production processes more enviromentally friendly or use fewer natural resources. . Which breaks down to six areas:
Green Energy Jobs & Business Opportunities Continue to provide diverse employment for people of all skill levels and educational backgrounds in every region of our state. The emerging renewable energy and energy efficiency industries have expanded rapidly in recent years and further expansion is expected in 2011…. … .which will be driven by increasing consumer demand, the on-going implementation of North Carolina’s energy policies, and additional venture capital infusions
Manufacturing accounts for nearly one-third of the renewable energy and energy efficiency jobs (est. 3959) in North Carolina and remains the largest source of employment for the third consecutive year. Firms conducting R&D account for the second largest portion of employment with nearly 2963 of all estimated jobs
Given the recently-passed renewable energy manufacturing tax credit, current manufacturing facilities can re-tool, transition, and grow into the sustainable energy industries. This retooling could create even more green jobs, but more importantly, on-going manufacturing layoffs could be prevented in the future.” The overlapping focus areas between manufacturing and research and development indicate North Carolina is strongly positioned to develop and scale-up emergent technologies The state’s comparative advantage is further enhanced by the presence of a skilled workforce, prominent research and educational institutions, a robust transportation infrastructure, a high quality of life, and well regarded business climate.
Energy Policy: Global, National, Local
Energy PolicyIntroduction By 2020, clean energy will be one of the world’s biggest industries, totaling as much as $2.3 trillion. Other countries made huge investments to seize the economic opportunity provided by the evolving transition from fossil-based energy to renewable, low-waste electricity and fuel. These investments were a result of intentional public policies, which in turn provided a strong stimulus for new public and private investment in new clean-energy markets, infrastructure, and human resources. Potential still exists, for bipartisan cooperation between President Obama and the new Congress on reducing oil use, investing in clean energy technologies and jobs, and preventing future oil disaster.
Energy PolicyTopics Potential Bipartisan National Energy Policy North Carolina Energy Policy - NC’s Reps (Session Law 2007-397) North Carolina Sustainable Energy Association (NCSEA), 2010 Renewable Energy & Energy Efficiency Industry Census
Energy PolicyObjectives Summarize the key issues in the Bipartisan National Energy Policy, NC’s REPS (Session Law 2007-397) and NCSEA 2010 Renewable Energy & Efficiency Census Analyze the above policies’ and the census findings for their implications for and potential impact on renewable energy investments, technologies, and jobs in North Carolina. Identify gaps, disconnects, connections, synergies in the policies and research presented Generate your own policy and business solutions and ideas Generate additional topics for review and discussion.
Energy Policy House and Senate Bills - PendingU.S. House of Representatives - U.S. Senate - ACELA Senators John Kerry and JoeACES Lieberman - APAThe American Clean Energy and The American Clean Energy The American Power ActSecurity Act of 2009 (H.R. 2454 or Leadership Act (S.1462 or ACELA) (APA) was introduced byACES) passed the House on June 26, passed the Senate Energy and Senators John Kerry (D-Mass.)2009 by a vote of 219 to 212. ACES Natural Resources Committee on and Joe Lieberman (I-Conn.) tocombines standards and incentives to June 17, 2009. ACELA is an energy the Senate on May 12, 2010.promote clean energy and energy bill that contains many energy The long-awaited climate billefficiency technologies with a firm policies similar to ACES, but does would establish a greenhousecap on greenhouse gas emissions. not include a greenhouse gas gas pollution reduction program pollution reduction program. and encourage developmentThe American Council for an Energy of nuclear power, offshore oilEfficient Economy (ACEEE) estimates ACEEE estimates that, in 2030, the and gas drilling, coal, cleanthat, in 2030 alone, the energy energy efficiency provisions in transportation, and, to a lesserefficiency provisions in ACES could ACELA could reduce energy extent, energy efficiency andreduce energy consumption by about consumption by about 4.3 quads, renewable energy.8.8 quadrillion BTU, avoid about 539 avoid about 65 MMT of carbonmillion metric tons (MMT) of carbon emissions, and save about $36emissions, and save about $62 billion billion in net consumer savings, orin net consumer savings, or $486 per about $240 per household.household.
Bipartisan National Energy Policy Reduce oil consumption Invest in renewable and efficient energy solutions that create jobs Building Efficiency Incentives Investments in Renewable Electricity & Jobs Green Bank Transmission Clean Energy Exports Renewable Electricity Standard & State Clean Energy Programs New protections to prevent future BP oil disasters
Bipartisan National Energy PolicyREDUCE OIL CONSUMPTION & IMPROVEENERGY SECURITY Natural gas trucks: create more than 100,000 direct manufacturing and labor jobs & more than 450,000 indirect jobs…National Gas Industry estimate. Electric cars: speed the transition to electric vehicles by creating a $400 million pilot program to create electric car recharging infrastructure for plug- in hybrid and all electric vehicles, such as the Chevrolet Volt and Nissan Leaf
Bipartisan National Energy PolicyBuilding Efficiency Incentives & JobsIncentives for homeowners and building owners to invest inenergy savings measures to lower electricity bills & create jobs inenergy efficiency technology, sales, and installation. Two proposedprograms include: HOME STAR (Cash for Caulkers): 168,000 jobs over two years primarily in construction and manufacturing. The program would help 3 million families save $9 billion on their electricity bills over a decade, and it would reduce global warming pollution equivalent to taking 615,000 cars off the road BUILDING STAR: cover 30 percent of the cost of installing energy efficiency technologies in commercial and apartment buildings, Reduce energy bills by over $3 billion annually. Create 150,000 to 200,000 jobs over the next two years
Bipartisan National Energy PolicyINVESTMENTS IN RENEWABLE ELECTRICITY & JOBS Spain and Germany & China, have invested significant resources and adopted policies that would boost their domestic clean energy industries. Markets: Expanding markets and driving demand for new clean and efficient energy products and services Financing: Investing across the full value chain of clean-energy solutions: research, development, commercialization, production, and deployment—needed to meet demand Infrastructure: Revitalizing and reinvesting in the physical and human capital infrastructure upon which the clean-energy transformation— like all major industrial transformations in the past—will ultimately be built New policies to continue to grow the clean energy sector are needed as The American Recovery and Reinvestment Act renewable energy programs funds are spent.
Bipartisan National Energy PolicyGREEN BANK An independent Clean Energy Deployment Administration (CEDA) or “green bank” would provide loans, guarantees, and credit enhancements to help companies successfully traverse the so-called “valley of death” to take new technologies from successful R&D to deployment. CEDA has bipartisan support in the House and Senate. It was included in ACES and ACELA in slightly different forms CEDA funds would provide this capital and leverage $10 in private capital for every $1 of public investment.
Bipartisan National Energy PolicyTRANSMISSION Electricity congestion currently costs the eastern United States $16.5 billi . Transmission lines must be enhanced and expanded to transfer clean electricity from wind turbines in North Dakota to factories in Illinois. Building transmission lines can also create thousands of jobs. Example - building the 20,000 miles of new transmission we need could create 280,000 new jobs.
Bipartisan National Energy PolicyCLEAN ENERGY EXPORTS America’s global competitiveness will partly depend on development and deployment of renewable and efficient energy technologies that we can export to other countries. Clean Energy Exports would provide $85.6 billion over five years for research, development, and deployment of new technologies across a range of industries, including clean energy.
Bipartisan National Energy PolicyRENEWABLE ELECTRICITY STANDARD & STATECLEAN ENERGY PROGRAMS RES - Renewable electricity or portfolio standard. RES requires electric utilities to generate a specific amount of power from renewable sources such as wind, solar, geothermal, biomass and other emerging Technologies. A national RES would increase demand for these clean electricity sources and help speed their commercialization at scale Feed-in-Tariffs - Congress should allow states to set long-term rates at which renewable electricity generators can sell their power to utilities. Creates the transparency, longevity, and certainty in policy that makes financing renewable energy possible.
North Carolina Energy Policy NC’s REPS (Session Law 2007-397)North Carolina became the 25th state in the nation – and the first inthe Southeast – to enact a mandatory renewable energy and energyefficiency portfolio standard or REPS. The REPS requires North Carolina’s three investor-owned utilities – Duke Energy Carolinas, Progress Energy Carolinas and Dominion North Carolina Power – to generate at least 12.5% of their electricity from renewable energy and energy saved through efficiency by 2021. Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement. A utility may meet the REPS requirements by generating its own renewable energy, by purchasing electric power from another renewable energy facility, or by purchasing renewable energy certificates (RECs) generated from renewable energy resources An investor-owned utility may also meet the REPS requirement by reducing energy consumption through energy efficiency measures. In the early years of the standard – years 2012 through 2018 – electric utilities have the option to meet up to 25% percent of the REPS requirement through measurable energy efficiency programs.
North Carolina Energy Policy NC’s REPS (Session Law 2007-397)Renewable Energy Solar electric (known as “photovoltaic” or “PV”). Solar thermal hot water,Wind, Geothermal, Tidal energy and biomass resources NC has a technical potential for 13,000 megawatts (MW) of new renewable energy generation with a practical potential of at least 3,400 MW (this number does not include solar power, which would more than double this amount).Energy Efficiency Insulation, sealing leaks, High R value Building Envelope, Energy Efficient Appliances, Programmable Thermostats, siting, shading NC’s electricity needs could be reduced by 14% by 2017 using energy efficiency measures.
North Carolina Energy Policy NC’s REPS (Session Law 2007-397)Connecting to the Electricity GridThe REPS law required the North Carolina Utilities Commission(NCUC) to establish an interconnection standard for renewableEnergy facilities up to 10 MW in size.Interconnection standards and net metering are important to theDevelopment of renewable energy resources. An interconnection standard is the technical rules for customers to connect their renewable energy system to the electric grid. Net metering is a billing arrangement that allows the owner of a renewable energy system to offset their electricity consumption and sell or contribute the excess electricity to the electric grid for the utility to sell to other customers.
North Carolina Energy Policy NC’s REPS (Session Law 2007-397)NC GreenPower vs. NC’s REPS NC GreenPower is a non-profit organization that accepts voluntary contributions through utility bills to develop renewable energy resources in the state. Carolina’s REPS is a mandatory requirement and NC GreenPower is a voluntary program. Citizens interested in supporting renewable energy above and beyond the REPS law can contribute to the voluntary NC GreenPower program or directly purchase RECs when they become available.
North Carolina Energy Policy NC’s REPS (Session Law 2007-397)NC’s REPS: Renewable Energy Resources, Investments & JobsThe retention and creation of thousands of green jobs across NorthCarolina is one of the largest benefits of the REPS. As a result, NorthCarolina: Is a leader in solar energy and currently ranks 7th among US states in the amount of required solar energy generation Will have roughly 300 megawatts of new solar power installations by 2018 Will realize more than $2.5 billion in new renewable energy investments by 2018 and $350 million in energy efficiency investments by 2021 Employ more than 4,000 North Carolinians at good wages due to sufficient in- state renewable resources and unutilized energy efficiency potential
North Carolina Energy Policy NC’s REPS (Session Law 2007-397)NC’s Future Energy Needs: Costs & PolicyPolicymakers must go beyond Session Law 2007- 397 to evaluate NC’s futureEnergy portfolio and set policy that will result in the lowest cost and reliablemix of energy resources for North Carolina and that also deliver the greatestjob creation investment, economic development and environmental benefitspossible.What you Can doThe public can participate in the rulemaking process by writing letters to theNC Utilities Commission at 4325 Mail Service Center, Raleigh, NC 27699-4325.The three most important issues to stress in personal correspondence to theNCUC are: Transparency Energy Efficiency Ensuring Compliance
North Carolina Sustainable Energy Association (NCSEA) 2010 Renewable Energy & Energy Efficiency Industry CensusWhat is a Green Business, The North Carolina Sustainable Energy Green Job? Association’s (NCSEA) 2010 Renewable Energy & Energy EfficiencyEnergy from renewable sources Industry Census surveyed firms operating in the first two categories – renewable energy and energy efficiencyEnergy efficiency industries.Pollution reduction and removal The purpose of the census is to document ongoing Employment trendsGreenhouse gas reduction and industry dynamics within theseRecycling and reuse markets.Natural resource conservation andenvironmental complianceEducation and training, and publicawareness
North Carolina Sustainable Energy Association (NCSEA) 2010 Renewable Energy & Energy Efficiency Industry CensusAccording to the 2010 Renewable Energy & Energy EfficiencyIndustry Census, released by NCSEA: The renewable energy and energy efficiency industries in North Carolina consist of over 1,100 firms Renewable energy and energy efficiency firms conservatively generate more than $3.5 billion in annual revenue from North Carolina business activities The majority of firms and employment occur at firms focused on energy efficiency and building sciences. Renewable energy and energy efficiency firms maintain a presence in all 100 NC counties
North Carolina Sustainable Energy Association (NCSEA) 2010 Renewable Energy & Energy Efficiency Industry CensusPrimary Business Type Estimated Jobs Primary Business Estimated Jobs Focus EmploymentResearch and 2,963 Solar 1351developmentManufacturing 3,959 Wind 1195High performance 1,622 Biomass 644building or retrofittingRenewable energy 269 Hydroelectric 273systems retailer ordistributorRenewable energy 1,395 Geothermal 215systems installer, designer, or developerPower generation owner 1,420 Smart Grid 927or operatorEducation, services and 866 Energy Efficiency or 7362consulting Building Sciences Energy Storage 563 including fuel cells
North Carolina Sustainable Energy Association (NCSEA) 2010 Renewable Energy & Energy Efficiency Industry CensusHighlights of 2010 Industry Census The renewable energy and energy efficiency industries currently support 12,500 full-time equivalent employees (FTEs) in North Carolina, a 22% increase from 2009 Manufacturing accounts for nearly one-third of the renewable energy and energy efficiency jobs (est. 3959) in North Carolina and remains the largest source of employment for the third consecutive year Within manufacturing, the largest number of firms focus on energy efficiency or building sciences followed by solar energy. Firms conducting R&D account for the second largest portion of employment with nearly 2963 of all estimated jobs Within R&D, energy efficiency or building sciences and solar energy were the two primary focus areas of with smart grid and biomass tied for third
North Carolina Sustainable Energy Association (NCSEA) 2010 Renewable Energy & Energy Efficiency Industry CensusGoing ForwardNorth Carolina’s renewable energy and energy efficiencyindustries have potential for strong employment growth andregional leadershipLong-term success will depend on an integrated approach topublic policy and market development, greater certainty inpolicy and continued advancements in workforce and consumereducation
Opportunities, FYIs2012 Energy Efficiency Building Code which would improve efficiency standardsBy 30%. Mark your calendar: Nov. 17 & Dec. 13-14 meetings Building CodeCouncil,elected officials and other interested groups. Beginning at 9am at the Dept.Of Insurance (322 Chapanoke Rd. downstairs classroom, Room 100) in RaleighNC Capital Access Program: Gov. Bev Perdue recently announced a new smallbusiness lending Initiatives. All businesses located in NC with 500 or feweremployees are eligible for loans under The program. The maximum loan amount is$5 million. Bev. Perdue highlighted our states successful green energy businessesas a perfect candidate for these funds.Progress Energy Carolinas will begin offering incentives to North Carolinaresidential customers who install and own solar photovoltaic (PV) systems at theirhomes in January 2011. The SunSenseSM Solar PV program will provide upfrontrebates of $1,000 per kilowatt of capacity and monthly bill credits of $4.50 perkilowatt for PV systems installed after the launch date (forsystems sized from 2 to10 kilowatts).Federal and North Carolina renewable energy tax credits also exist to make yourrenewable energy system purchase more affordable. Find information on available federal andstate tax credits on NCSEA’s website atwww.energync.org/resources/taxcredits
Links and ResourcesNorth CarolinaNorth Carolina Sustainable Energy Association (NCSEA) www.ncsea.org2010 Renewable Energy & Energy Efficiency Industry Censushttp://energync.org/assets/files/2010%20Industry%20Census.pdfCitizens Guide to the NC REPS http://energync.org/resources/publications/ncsea-publications/North Carolina Utilities Commission: www.ncuc.net REPS Rulemaking: Docket No. E-100, Sub113Interconnection Standards: Docket No. E-100, Sub 101Net Metering: Docket No. E-100, Sub83RECs Tracking System: Docket No. E-100, Sub 121NC State Solar Center, Database of State Incentives for Renewable and Efficiency(DSIRE):www.dsireusa.orgNC State Solar Center, DSIRE Solar http://www.dsireusa.org/solar/index.cfm?ee=1&RE=1&spf=1&st=1NC Green Power: www.ncgreenpower.orgDuke Energy Interconnection Process, Checklist and Forms:http://www.duke-energy.com/customerOwned generation/nc-interconnection-information.aspProgress Energy Interconnection Process and Forms:http://www.progress-energy.com/environment/ras/interconnectionprocedures.asp
Links and ResourcesNationalCenter for American Progress http://www.americanprogress.org/lCooperation or Confrontationhttp://www.americanprogress.org/issues/2010/11/cooperation_or_confrontation.htmlOut of the Runninghttp://www.americanprogress.org/issues/2010/03/out_of_running.htmlInvesting in Clean Energyhttp://www.americanprogress.org/issues/2010/11/investing_clean_energy.htmlAlliance to Save Energy, http://ase.org/resources/comparison-aces-acela-and-apaCalifornia’s Global Warming Law AB 32 http://gov.ca.gov/index.php?/fact-sheet/4445/http://www.ucsusa.org/assets/documents/global_warming/economic-impacts-of-ab-32.pdfThe American Council for an Energy Efficiency Economy - The American Power Act andEnhanced Energy Efficiency Provisions: Impacts on the U.S. Economyhttp://www.aceee.org/research-report/e103The Skeptical environmentalist http and Cool it - http://www.amazon.com/BjørnLomborg/e/B001H6WWF2/ref=ntt_athr_dp_pel_1