Complying with Act 141: Renewable Electricity Consumption

at State Facilities

Prepared by:

Jennifer Blonn, Erik Johnson

Hy Matz and Nicholas Sayen 

Presentation Outline

Act 141Purpose of ProjectAlternativesAssessment CriteriaAnalysisRecommendation

ACT 141

Governor Doyle’s Task Force on Energy Efficiency and Renewables

Published on March 31, 2006

State facilities must acquire 10 percent renewable electricity by December 31, 2007 and 20 percent by December 31, 2011

Purpose

To advise the Department of Administration in complying with the 2007 renewable electricity targets outlined in Wisconsin Act 141

Renewable Electricity Generation Background

Energy Independence & Global Warming

26 States have Renewable Fuel Portfolio Standards (RPS) for Utilities

6 States have Standards for State Facilities (as of February 2007)

Iowa, Maryland, New Jersey, Oregon, Pennsylvania, Wisconsin

Four Policy Alternatives

Source: Environmental Protection Agency in collaboration with the Department of Energy, the World Resources Institute and the Center for Resource Solutions

Alternative One: Purchase renewable electricity from local utilities that invest in IN-STATE resources to meet Act 141’s 2007 target

Four Policy Alternatives

Alternative Two: Purchase renewable electricity from local utilities that invest in OUT-OF-STATE resources to meet Act 141’s 2007 target

Alternative Three: Generate renewable electricity at state facilities

Alternative Four: Purchase renewable energy credits (RECs)

Evaluation Criteria

Goal Impact Category

Promote a Healthy Natural Environment in Wisconsin

Minimize Wisconsin’s Exposure to Harmful Pollutants

Minimize Wisconsin's Dependence on Out-of-State Energy Foster a Strong State Economy Maximize the Number of New State Jobs

Administrative: Minimize DOA Regulatory Oversight Costs

Maximize Feasibility Political: Maximize Political Support Based on Successful Adoption in Other States Promote Long-Term Cost Efficiency of Renewable Electricity Consumed in Wisconsin Maximize Efficiency

Minimize Dollar Cost per kWh Paid by DOA

Assumptions

Purchasing from Utilities & Self-Generation Rated ‘Good’

Purchasing RECs Rated ‘Poor’ because decreased conventional electricity

generation in the region will not result

Promote a Healthy Natural Environment in Wisconsin

Foster a Strong State Economy

Alternatives that utilize in-state generation Rated ‘Excellent’ for reducing Wisconsin’s dependence on out-of-

state energy & fostering job growth in Wisconsin

RECs Rated ‘Poor’ for reducing Wisconsin’s dependence on out-of-state

energy & fostering job growth in Wisconsin

Purchasing from utilities with electricity generated out-of-state

Performs similarly to RECs, but does slightly better in fostering job growth in Wisconsin

Maximize Feasibility

Purchasing from utilities Performs ‘Excellent’ with respect to minimizing DOA’s regulatory

oversight costs & maximizing political support based on adoption in other states

Self-Generation Performs ‘Poor’ in both feasibility impact categories

RECs Performs ‘Excellent’ in minimizing DOA’s regulatory oversight costs Performs ‘Fair’ in maximizing political support because it has a

limited track record of adoption in other states

Maximize Efficiency

Purchasing from utilities with in-state generation ‘Excellent’ in terms of minimizing cost per kWh & promoting

the long-term cost efficiency of renewable electricity in Wisconsin

Purchasing from utilities with out-of-state generation

‘Good’ in terms of minimizing cost per kWh & promoting the long-term cost efficiency of renewable electricity in Wisconsin

Maximize Efficiency

Self-Generation Rated ‘Poor’ in terms of minimizing cost per kWh Rated ‘Fair’ in terms of promoting the long-term cost

efficiency of renewable electricity in Wisconsin

RECs Rated ‘Good’ in terms of minimizing cost per kWh Performs ‘Poor’ in terms of promoting the long-term cost

efficiency of renewable electricity in Wisconsin

Recommendation

Purchase renewable electricity from local utilities that invest in IN-STATE resources to meet Act 141’s 2007 target

Promote a Healthy Natural Environment in Wisconsin: Good

Foster a Strong State Economy: Excellent

Maximize Feasibility: Excellent

Maximize Efficiency: Excellent

Recommendation

Not mutually exclusive Second: Local utilities, out-of-state resources Third: RECs Last: On-site generation

Questions