LJWorld: “Legislators urged to require utilities to use more renewable energy sources”
January 21, 2009
From Lawrence Journal-World, by Scott Rothschild:
Topeka — Wind energy advocates and rural officials Wednesday urged the Legislature to require utilities to increase electric generation through renewable sources, saying it would boost the state’s economy.
“Enacting this legislation will foster a boom in wind energy development in Kansas,” Dan Hartman, who was representing the Northwest Kansas Regional Energy Collaborative, said in submitted testimony to the House Energy and Utilities Committee.
House Bill 2013 would establish a renewable portfolio standard that would require that each public utility produce at least 10 percent of its electricity from renewable energy sources by 2012; 15 percent by 2016 and 20 percent by 2020.
There is currently a voluntary goal of renewable energy, but supporters of the bill say a statutory requirement is needed to entice wind developers and manufacturers of wind turbines. A majority of states have similar requirements.
Hartman said Kansas has the potential to become the “Saudi Arabia” of wind energy.
Without the renewable requirement, Kansas is losing out to other states in the development of wind farms, supporters of the bill said.
Dan Nagengast, executive director of the Kansas Rural Center, said that the legislation would promote community-owned wind projects.
“I believe a strong RPS (renewable portfolio standard) is the best key we have readily available to enhance our rural economy,” he said.
Tom Thompson, a spokesman for the Kansas chapter of the Sierra Club, said the group supported the proposal because it would result in a reduction in carbon dioxide emissions.
But Thompson said if the renewable energy bill was later linked to approval of more carbon dioxide emitting coal-burning power plants, then the Sierra Club would oppose the measure.
“That would defeat much of the purpose of many of these bills,” Thompson said.
The Legislature has been fighting for more than a year over whether to build two 700-megawatt coal-fired electric power plants in southwestern Kansas. The project has been vetoed by Gov. Kathleen Sebelius, who has objected to the plants’ annual emission of 11 million tons of carbon dioxide, cited by many scientists as a cause of climate change.
David Springe, consumer counsel of the Citizens’ Utility Ratepayer Board, spoke against the renewable energy standard, saying it could make energy more expensive for ratepayers.
“Each utility system is different from a resource perspective and from a finance perspective. Arbitrarily dictating the level and time of adding resources, regardless of cost or other considerations, is not in the interest of consumers,” Springe said.
“Every good idea seems to come out of ratepayers’ pockets,” he added.
Mark Schreiber, a spokesman for Westar Energy, which is the largest electric utility in Kansas, said the company supported the proposal and believes it can meet the requirements.
Currently, Westar produces about 300 megawatts of wind energy, which represents 6 percent of its peak load, Schreiber said. To meet the 2012 proposed requirement, Westar would have to produce an additional 200 megawatts of renewable capacity.
State Rep. Tom Sloan, R-Lawrence, said other issues had to be considered, such as the availability of transmission lines to transport wind-generated electricity, and whether municipally owned utilities should be included in the bill, which as of now they aren’t.
“There are several other issues that are not addressed in this bill,” Sloan said.
State Rep. Don Myers, R-Derby, asked whether it wouldn’t be better to let the market decide how much wind power should be built in Kansas rather than establishing a requirement.
Joe Spease, chief executive officer of Windsohy of Overland Park, said the requirement would help ensure financing for wind projects.
The committee took no immediate action on the bill. A renewable portfolio standard also is part of Sebelius’ energy plan.
Green Economy: What’s in it for Kansas?
January 21, 2009
Across the country—in the media; in boardrooms, think tanks, and community organizations; in local and state government; in Congress and the White House—people are talking about the economic promise of clean energy. A new report from GREEN for ALL- Greener Pathways puts jobs at the heart of today’s conversation.
About 80,000 U.S. workers are employed in the wind industry today, in jobs as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, services, and more. Wind power’s recent growth has accelerated job creation, particularly in manufacturing, where the share of domestically manufactured wind turbine components has nearly doubled in three years, expanding from 25%-30% in 2005 to 50% in 2008 (AWEA).
From 2001-2007 Kansas lost nearly 11,000 traditional manufacturing jobs. According to a recently released report from the Renewable Energy Policy Project (REPP) a national renewable energy program would provide significant benefits to Kansas manufacturing – generating $1.97 billion in investment, spurring innovation in 425 existing Kansas manufacturing firms, and creating 11,491 new jobs. Kansas manufacturers could become major components suppliers, making billions and driving the new energy economy. Turbine and component part production can re-energize our flagging Kansas economy.
The first thing any city, county, or state should do to prepare its workforce for the Green
Economy is to understand the lay of the land. Basic labor market studies can identify occupations and skills in demand and the training resources in place—or not—to supply them.
In metal and plastic manufacturing, this might include union apprenticeship and pre-apprenticeship programs, supported by the recently formed Kansas chapter of the Blue Green Alliance or state-sponsored workforce initiatives in advanced manufacturing. Indeed, green workforce development cannot occur in isolation from traditional industries and skill sets for occupations within those industries.
Employers from the manufacturing industries poised to build America’s wind infrastructure are not demanding “green manufacturing workers,” but workers with traditional machining skills who also have the most up-to-date training in advanced manufacturing techniques. Skills we have right here in Kansas! Even employers who more narrowly focus on delivering a service centered on a particular green technology, say wind turbine operation and maintenance, will require certified electrical or engineering technicians who have received, in addition to wind-specific mechanics, a thorough grounding in mathematics, computer systems, hydraulics, and electrical circuitry.
Wind Energy Jobs
- Installation – skilled workers who install turbines do many familiar tasks: driving trucks to deliver heavy industrial equipment; pouring concrete to build massive foundations; operating cranes—though this part is clearly more exhilarating than your garden-variety lift assignment—to hoist the turbine towers onto the foundations, the nacelles onto the towers, and the rotors onto the nacelles. These are green construction and transportation jobs.
- Wind technician for O/M – a new green job with both fresh knowledge and traditional skill sets. Some community and technical colleges steer potential clean energy technicians through engineering, industrial, and technological science pathways, while others are experimenting with dedicated renewable energy training programs. In Kansas, Cloud County Community College currently offers a wind technician program.
- Manufacturing - In wind turbine manufacturing, recommended skills include mathematics, blueprint reading, computer programming, metalworking, and drafting. Jobs require a wide range of on-the-job and vocational training. Workforce professionals believe the most practical strategy is to train workers with a broad skill set in traditional metal manufacturing.
A national energy policy that provides energy security and stabilizes climate change will create a huge demand for both more renewable energy and cycles of technology innovation. The right set of policies and incentives, a federal Renewable Energy Standard, a state Energy Efficiency Resource Standard and tax credits for personal investment in solar, wind and geothermal, can revitalize the manufacturing sector and train Kansans to fill the jobs this fast-growing sector will create.
Let’s put our dollars and our policies to work immediately – let’s create the next great American economy based on efficient, clean energy. If we accept this challenge we will be tackling our economic, energy and climate crises all at the same time.
~Dorothy Barnett, CEP
Harris News: “Energy debate shaping up differently this session”
January 21, 2009
From Harris News:
Energy debate shaping up differently this session
By Chris Green
TOPEKA — The debate over energy policy in the Kansas Statehouse figures to unfold at a more deliberate pace this year than it did during last year’s heated legislative session.
Energy issues remain a hot topic among state officials, including the continued debate over allowing the construction of two coal-fired power plants near Holcomb.
With the state facing a $1 billion deficit, reworking the state’s beleaguered budget is taking precedence over other topics, lawmakers said.
“We’re going to concentrate our efforts on the budget over the next few weeks and the majority of the session,” said Senate Utilities Committee Chairman Pat Apple, R-Louisburg.
Lawmakers must close a $186 million gap in the current year’s budget in the coming weeks before moving on to pass a balanced budget for fiscal year 2010, which begins in July.
But that doesn’t mean, however, that energy debates will be put entirely on the back burner in Topeka this year, after dominating last year’s session.
Apple said he hopes to see legislation setting out a comprehensive energy plan introduced in his chamber by mid-February.
Although the economy is in “crisis mode” and the budget “a disaster,” House Energy and Utilities Committee Chairman Carl Holmes, R-Liberal, said his committee still has work to do this session.
That includes a hearing scheduled for Wednesday on legislation that would mandate that electric utilities produce a certain percentage of their power from renewable sources, such as wind.
“Even though the budget issue is a major focus, all of the other committees are working on their various subject matters,” Holmes said.
Holmes also said he didn’t know when his chamber might take up the lingering issue of whether to allow Sunflower Electric Power Corp. to build two coal-fired power plants in southwest Kansas.
Answering questions
Even with the state’s budget crunch, both chambers of the Republican-led Legislature and Democratic Gov. Kathleen Sebelius have set their sights on passing energy-related measures this session.
Sebelius has already announced plans to pursue several initiatives, including a renewable energy mandate, which are designed to help the state boost its production of renewable energy and bring more “green” jobs to Kansas,
The governor also says it doesn’t make sense for lawmakers to revive legislation clearing the way for the coal plants, which her administration blocked in 2007. That’s because of the possibility, she said, that new carbon emission regulations could be enacted under a new president, ones which might affect the use of coal power.
Last year, the Senate overturned Sebelius’ vetoes of legislation that would have Sunflower’s plants, although the House narrowly fell short of an overriding her decision.
House Speaker Mike O’Neal, R-Hutchinson, said last week that his chamber is taking a different approach by using a more open process to draft its energy bills this year.
Some critics have derided the process by which last year’s bills allowing Sunflower’s plants were drafted, arguing they were initially drafted behind closed doors.
O’Neal said he thought allowing more input from all lawmakers this year would increase the chances that legislation authorizing Sunflower’s plants could withstand a gubernatorial veto this year.
Some of the lawmakers who voted against last year’s energy bills did so because the process by which legislation was put together left them with too many unanswered questions, O’Neal said.
“I think we’ll have those individuals there now once they understand fully and get all their questions answered,” O’Neal said.
Already, the House Energy and Utilities Committee has voted to introduce 26 bills, including renewable energy mandates and net metering, a proposal allowing customers to sell renewable power back to utilities at retail rates.
But only about half of those proposals had been drafted for review, though, as of Monday. Several of the proposals, including a renewable portfolio standard and net metering, failed because they were packed with legislation allowing Sunflower’s $3.6 billion Holcomb expansion.
House Utilities Committee Vice Chairman Forrest Knox, R-Altoona, said he believed the committee would attempt to conduct hearings on as many of the 26 bills as possible this session, as well as other measures that might crop up.
Notes from House Energy and Utilities – RPS day
January 21, 2009
Summary: Testimony was heard on HB 2013 (.pdf), on a Renewable Portfolio Standard (RPS).
- If you would like to find your legislator and contact them about any specific piece of legislation, click here.
- For specific bill tracking, check out KNRC.
- For questions on the legislative process, call the Kansas Legislative Hotline – 1-800-432-3924, or check out the legislature’s website.
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Today is the hearing on HB 2013, a bill on a Renewable Portfolio Standards (RPS). Full room!
Meeting called to order. Lots of testimony today.
Chairman Holmes – regarding the five member subcommittees. They will meet Fridays from 8:30 to noon in 783 Docking (for most part – and not this Friday). Committees are (1) renewables, Rep. Knox will chair (2) greenhouse gases, Rep. Moxley will chair (3) KCC legislation, Vern will chair, (4) Energy Efficiency – Rob Olson will chair – all this after committee leaders meet to decide details.
All energy committee members invited to sit in on subcommittees, but only subcommittee members can vote and make motions. Hearings will happen in subcommittees, too, if subject matter has already been covered in main committee.
Bill introduction – Rep. Sloan for Rep. Gatewood and independent telephone companies, re party line notification requirement.
Hearing opens
Proponents
Dan Hartman, NWKS Regional Energy Collaborative – 17 counties in NW KS
Emphatic support for codified RPS – key foundation for economic development of NW KS, and developing our wind. We need this legislation in place to grow our economies and stabilize our communities. Introduces Thomas County Commissioners who came with him to lend support.
Kimberly Gencur-Svaty, Wind Coalition
Almost every wind developer in KS is a member of our coalition. All of them have compelling stories about how wind farms help economic development. Every dollar spent locally turns over seven times before leaving Ellis and Lincoln counties where Smoky Hills wind farm is. Huge capital investments for these counties. These projects mean a lot to these communities. We also had tornado this summer – wheat crops were lost – and income from turbine leases helped bridge that gap. Wind helps farmers diversify. Wind Coalition fully supports RPS, sends strong signal, says KS is open for business. 1000MW of wind development in KS has already brought $1 billion of investment to state.
Melissa Dublin, Revisor’s Office – briefs bill, RPS requirements. Notes coal generation provision.
Some things to know about net metering
January 21, 2009
We are getting this question a lot – how do you know if a net metering bill is a good one, or a bad one (or somewhere in between)?
44 states and Washington DC all have statewide net metering policies. Kansas does not. However, not all net metering policies are worth the paper they are written on.
And the fate of net metering in Kansas will turn on a few crucial points. First, who REALLY wants net metering? The general argument against the policy is that it benefits rich people who can afford solar panels and wind turbines. However, there seems to be a rising swell of people who can’t afford to install renewables WITHOUT net metering to at least help reimburse their costs.
Second, is net metering a subsidy? If so, is it a bad one – especially when it comes to helping farmers, schools and businesses offset energy costs during difficult economic times? Are the public policy benefits of energy security, energy independence, etc., worth the subsidy?
And last, regarding the burdens of net metering policies, are those burdens equally spread across all utilities? Rural co-ops and munis might have very different perspectives on net metering than investor-owned utilities.
CEP thinks that ultimately, the answer to the net metering question is only going to be solved by Kansans putting their heads together and figuring out what works. When you do, here’s some research that CEP put together a few months back. We’re sharing it here with you here just to give you a place to start.
BTW – if you want to know anything at all about renewable policy this session, here is the best resource – the extremely easy to use Database of State Incentives for Renewables and Efficiency – http://www.dsireusa.org.
And finally, a little known fact – interconnection standards are a critical part of net metering. (You can have the best net metering policy in the world, but if you can’t hook up to the grid economically, effectively, and safely, then what good does that policy do you?)
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Interconnection Standards
- How can a simple, standard, streamlined interconnection process for small generators be created?
- What are the regulatory barriers that restrict fair customer access to the grid by creating high costs and time delays – excessive standards for safeguards, grid upgrades, operating restrictions, insurance requirements, application lengths, etc.
- Are utilities required to process interconnection applications within a reasonable time?
- FERC has already adopted voluntary federal interconnection standards for systems under 2 megawatts (MW).
- Are there hidden costs allowed that will put additional burdens on customer-generators – such as high standby charges, back-up rates, or unnecessary requirements for insurance?
- Do different interconnection standards apply for different sizes and designs of generators? Different generators should be recognized as having varying levels on the system, from minimal to higher impact.
- When smaller and simpler generators are standardized according to national certifications (IEEE or UL), there should there be a streamlined application. Larger projects may need additional review.
- If there are application fees, do they differ with size of installation?
EPA, Clean Energy, State Best Practices, State Guide to Action “Interconnection Standards,” http://www.epa.gov/cleanenergy/documents/gta/guide_action_chap5_s4.pdf
Fair Net Metering
- Net metering is defined as when customers sell back their excess power through their interconnection to the grid using a single, bi-directional meter.
- What utilities are required to participate? Are there different rules for rural electric cooperatives and munis?
- For net excess generation (NEG), what reimbursement rate represents a fair price? Some percentage of avoided cost? Time of use? Retail? A combination? Is the agreed upon price credited to the bill, or is an actual check issued? Example: In many states, utilities credit the customer’s next bill at the retail rate, but at the end of the year purchase the excess at avoided cost rate. Oregon credits the customers’ bill at retail, and each March credits the excess to weatherization and low-income assistance programs.
- Is there a time limit to credits, or do they expire? Is credit banking possible, so customers can offset their costs during the high use times of year (works for irrigation)?
- Policy goals – what are the technologies and installation types that the legislation is meant to encourage? Small wind for homes, farms, and schools? Solar panels for businesses? Etc.
- Are there hidden costs that will create disincentives for customers? For example, standard installations come with a shut-off switch. However, when a utility requires a redundant external shut-off switch to be installed at customer expense, the cost for that alone can range up to $6,ooo, which is a significant disincentive.
- Is there a maximum size for net metering systems? Are there differences for residential and commercial installations? Is there an appeals process for larger systems? Examples: Idaho – 25 kW residential, 100 commercial, Maine – 100 kW, Minnesota – 40 kW, Ohio – no limit, Texas – 50 kW, Washington state – 25 kW, California – 1 MW
- If new meters are required, who pays for them? CO – “If a customer-generator does not own a single bi-directional meter, then the utility must provide one free of charge. Systems over 10 kilowatts (kW) in capacity require a second meter to measure the output for the counting of renewable-energy credits (RECs).” (DSIRE)
- What forms of renewables are eligible? (Usually wind, solar photovoltaics, possibly methane capture)
- Are there restrictive aggregate caps for how much net metering is allowed onto a system? If there is a limit, is there an appeals process?
- Are there reporting requirements for utilities, in order to judge the effectiveness of the policy?
Interstate Renewable Energy Council (IREC), Table of State and Utility Net Metering Rules, last updated December 2007, http://www.irecusa.org/fileadmin/user_upload/ConnectDocs/December_2007_NM_table.doc
Rusty Haynes, IREC, “Net Metering and Interconnection Trends,” 2007, http://www.dsireusa.org/documents/PolicyPublications/IREC%20Updates%20&%20Trends%2020071.pdf
— Maril Hazlett, www.climateandenergy.org


