THE COUNCIL OF STATE GOVERNMENTSssl.csg.org/dockets/28cycle/28ES/28ESsslcmtteeagend… · Web viewThe reports shall include summaries of accomplishments, including expenditures, research

THE COUNCIL OF STATE GOVERNMENTSSUGGESTED STATE LEGISLATION SUPPLEMENTSUSTAINABLE ENERGY

Docket 28ESFinal - September 11, 2007

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THE COUNCIL OF STATE GOVERNMENTSSUGGESTED STATE LEGISLATION SUSTAINABLE ENERGY SUPPLEMENT

ABOUT THIS SUPPLEMENT

“The reality of periodic oil shortages, erratic fluctuations in gas prices, threats to our economy and security, and growing environmental concerns illustrate ... the need for immediate action.”

-- Gov. Brad Henry, CSG President, 2007

As our nation’s energy needs expand, and competition for resources from foreign governments continues to grow, low-cost oil reserves will diminish and become more difficult to discover and bring to market. In addition, policymakers have highlighted the economic, environmental and national security consequences of relying on oil, natural gas and coal for the majority of our electricity generation and liquid fuel needs. National attention therefore has focused on achieving sustainable energy.

However, achieving sustainable energy is not without its challenges. Renewable energy sources currently supply only 6 percent of our energy needs, and the United States imports 60 percent of its oil from foreign sources, many of which are hostile to our nation. There are, however, steps state and local leaders can take to reduce our dependence on traditional sources ofenergy and promote clean, secure, and economically viable energy.

But to achieve these goals policymakers must take a multifaceted approach that stresses the importance of sustainable energy to their constituents and promotes renewable energy, energy efficiency, the clean use of traditional sources and conservationism.

The CSG Committee on Suggested State Legislation is producing this Supplement to the 2008 Volume of Suggested State Legislation as part of Gov. Henry’s initiative as President of theThe Council of State Governments in 2007. Generally, the legislation in this supplement:

addresses the need for a balanced energy portfolio, explores the best practices in achieving abundant, economic, clean, and secure

energy in the 21st century, and highlights how state policymakers can help promote sustainable energy within

their communities.

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THE COUNCIL OF STATE GOVERNMENTSSUGGESTED STATE LEGISLATION SUSTAINABLE ENERGY SUPPLEMENT

OVERVIEW

The prevalent view among experts is that the world could reach peak oil production capacity in the next 10 to 40 years. Likewise, natural gas supplies are projected to last about 50 years. Given these predictions and the push to reduce dependence on foreign energy sources, alternative fuels such as ethanol, biodiesel and hydrogen are gaining prominence.

Compared with the rest of the world, people in the United States use large amounts of energy, electronic devices, food, paper and natural resources. However, especially as gas prices increase in this country, Americans are starting to pay more attention to energy conservation.

States play a central role in managing natural resources and protecting the environment, including promoting energy conservation and renewable energy. Indeed, many states are taking action to promote alternatives to oil and other fossil fuels. Several states offer incentive programs to encourage the purchase of alternative fuel vehicles, the conversion of vehicles to run on biofuels, and the installation and operation of fueling facilities to serve these vehicles. States are looking at alternative energy not only as a power source, but also to fuel economic development. However, as this industry grows, so does the need for best practices, model solutions and incentives.

STATE SOLUTIONS

States’ Options to Encourage Energy Conservation – (Excerpted from Resource Management: Sustaining Our Future - Trends in America: Navigating Turbulence to Success: 2005)

States are promoting energy conservation in a number of ways, including developing standards to increase the energy efficiency of appliances and lighting. In addition, some states are concentrating on increasing the efficiency of whole buildings through their green building initiatives.

Promoting Energy Efficiency

In July, New York enacted the Appliance and Equipment Energy Efficiency Standards Act of 2005. The measure establishes energy efficiency standards for appliances not included in the National Appliance Energy Conservation Act of 1987. New York’s law sets energy efficiency standards for ceiling fans and light kits, furnace air handlers, commercial washing machines, commercial refrigerators, freezers and icemakers, floor lamps, unit heaters, reflector lamps, large packaged air conditioning equipment and other commercial and household items. The Act also calls on the state to develop energy efficiency standards for consumer products while they are in standby mode.127

California’s law focuses on lighting. Beginning in October 2005, all new homes built in the state must meet new rules that save at least 30 percent of an average home’s lighting costs. This will be accomplished by requiring that fluorescent light fixtures provide at least half the light in kitchens. Also, bathrooms, garages, laundry rooms and utility rooms must be lit by fluorescent lights or incandescent lights with motion sensors.128

Also, the California Public Utilities Commission recently agreed to spend $2 billion over the next three years to provide consumer rebates of up to $600 for Energy Star appliances, Energy audits, design assistance and equipment rebates designed to increase energy efficiency.

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State officials hope for a $5 billion decrease in energy costs for homes and businesses and to eliminate the need to construct three power plants.129

Some states are combining efficiency efforts with an emphasis on renewable energy. In July 2005, Illinois adopted a Sustainable Energy Plan that calls for energy efficiency and renewable energy portfolio standards. The energy efficiency standard requires utilities to develop and implement programs that reduce electricity consumption 10 percent by 2008 and 25 percent by 2015. Utility companies must assist their customers in investing in energy-saving equipment and other technologies.130

In April 2005, Iowa Gov. Thomas Vilsack issued an executive order mandating state agencies to increase their operational energy efficiency and renewable energy use. The executive order requires state facilities to reduce their energy use 15 percent by 2010 through energy efficiency measures. It also calls for the procurement of hybrid or alternative-fuel vehicles for non-law enforcement state vehicles.131

Promoting Green Buildings

Some states are leading by example in terms of energy-efficient building. The headquarters for New York’s Department of Environmental Conservation, for example, is designed for optimal energy performance, and is expected to cost approximately 40 percent less per year to operate than a typical building its size. More than half the cost of materials used in the construction was spent on recycled supplies. And 20 percent of the materials were manufactured within 500 miles of the site, which cut down on emissions released while transporting them.

The building that houses California’s Environmental Protection Agency is also a model of green building principles. It maximizes natural light and uses special glass to conserve energy, and employs super high efficiency/low-mercury lighting tubes and perimeter light sensors that dim the lights in bright sunlight. The building uses solar panels, low-flow toilets, and special paints and carpets that minimize or eliminate harmful emissions. Among other features, it has 25 electric vehicle charging stations and the capacity to add a natural gas powered fuel cell.

The California Public Utilities Commission approved in September 2005 funding of $230 million annually for the next three years for a Green Building Initiative to reduce energy consumption in government buildings by 20 percent.132

Washington passed a law in 2005 mandating that any new construction or remodeling of state buildings of more than 5,000 square feet must achieve Silver LEED (Leadership in Energy and Environmental Design) ratings.133 Various types of laboratory facilities, hospitals, pumping stations, and research facilities are the only exemptions. The Silver LEED rating is the third highest rating for high-performance sustainable buildings, after Platinum and Gold.

New York’s Green Buildings Initiative encourages building owners and developers to design, construct and operate buildings that are more in harmony with the environment. Executive Order 111 further builds on this initiative by directing state agencies to be more energy efficient and environmentally aware by setting new energy efficiency goals and practices, following guidelines for the construction of green buildings, procuring energy efficient products, purchasing power from renewable sources, procuring clean fuel vehicles and involving the participation of other governmental entities. Additionally, New York is among the first states in the nation to offer a tax incentive program for developers and builders of environmentally friendly buildings.134

New York’s Green Building Tax Credit Program was signed into law in 2000. Since its inception, the program has issued $25 million in tax credits for seven buildings. The law was

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amended in 2005 to provide an additional $25 million in funding for up to $2 million in tax per qualified building.135

As cited in Resource Management: Sustaining Our Future- Trends in America: Navigating Turbulence to Success: 2005

127Gov. George Pataki Press Release. 2005. “Governor signs law improving energy efficiency of appliances and electronic equipment” [online]. [Cited 20 October 2005]. Available from World Wide Web: <http://www.ny.gov/governor/ press/05/july29_3_05.htm>

128California Energy Commission. 2004. “2005 Building Energy Efficiency Standards” [online]. [Cited 20 October 2005]. Available from World Wide Web: <http://www.energy.ca.gov/title24/2005standards/2004-11-04_400-03-001-F.PDF>

129US Department of Energy. 2005. “California Approves $2 Billion for Energy Efficiency” [online]. EERE Network News, 2005. [Cited 20 October 2005]. Available from World Wide Web: <http://www.eere.energy.gov/news/news_detail.cfm?news_id=9406>

130Illinois Commerce Commission. 2005. “Resolution to Adopt Sustainable Energy Plan for Illinois” [online]. [Cited 20 October 2005]. Available from World Wide Web: <http://eweb.icc.state.il.us/e-docket/reports/view_file.asp?intIdFile=148072&strC=bd>

131Gov. Thomas Vilsack. 2005. “State of Iowa Executive Order Number Forty-One” [online]. [Cited 20 October 2005]. Available from World Wide Web: <http://www.governor.state.ia.us/legal/41_45/EO_41.pdf>

132US Department of Energy. 2005. “California Approves $2 Billion for Energy Efficiency” [online]. EERE Network News, 2005. [Cited 20 October 2005]. Available from World Wide Web: <http://www.eere.energy.gov/news/news_detail. cfm?news_id=9406>

133Gov. Christine Gregoire Press Release. 2005. “Gov. Gregoire signs bill for first-in-nation environmental building standards” [online]. [Cited 20 October 2005]. Available from World Wide Web: <http://www.governor.wa.gov/news/news-view.asp?pressRelease=52&newsType=1>

134State submission from Ed Ingoldsby, New York State Division of the Budget.135New York State Department of Environmental Conservation. “New York State Green

Building Initiative” [online]. [Cited 20 October 2005]. Available from World Wide Web: <http://www.dec.state.ny.us/website/ppu/grnbldg/#current>

CSG ACTIONS

The 16-state Southern Legislative Conference of The Council of State Governments adopted the following policy positions about energy at its July 2007 meeting in Williamsburg, Virginia: 1. POLICY POSITION REGARDING FEDERAL RENEWABLE PORTFOLIO STANDARDS

Background

The production of electricity using renewable energy sources has become more commonplace recently. In fact, over 20 states and the District of Columbia have adopted renewable portfolio standards (RPS) programs based on their available resources. Nonetheless, there is increasing pressure to adopt mandatory renewable portfolio standards at the federal and state level. Despite current state RPS activity, Congress is considering adopting a federal RPS mandate.

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A federal mandate fails to recognize the significant differences among the states in terms of available and cost-effective renewable energy resources, and the impact on consumers’ electric bills.

Not all states have abundant traditional renewable energy resources or have them located close enough to the load to render them cost effective. This is especially true in the South. Moreover, some traditional resources such as wind face resistance because there is frequent opposition to building huge wind turbines, concerns over cost impacts for additional transmission needed and reliability concerns. As a result, wind energy projects are delayed and, in some cases, cancelled. In other cases, the availability of other renewable resources, such as geothermal, are even more limited.

The states that have adopted RPS programs not only have more resources available to them, they have also included resources in their definitions of eligible renewable resources that are not included in the mandate currently being discussed in Congress. Such resources include power produced from solid waste, hydroelectric facilities, and coal waste. Some states even include expenditures on demand-side management or alternative compliance payments.

Recommendation

Because availability and cost-effectiveness of renewable energy resources vary widely among the states and regions, decisions regarding RPS programs should be left to the states, and available and cost-effective renewable energy resource options should be considered.

The Southern Legislative Conference of The Council of State Governments urges Congress to expressly allow each individual state to determine how renewable energy can be reliably and cost effectively utilized within that state and forwards its position to the president of the United States and the secretary of energy.

Adopted by the Southern Legislative Conference, July 17, 2007, Williamsburg, Virginia.

2. POLICY POSITION IN SUPPORT OF NUCLEAR POWER AND REFORM AND FULL FUNDING OF THE YUCCA MOUNTAIN REPOSITORY PROGRAM

Background

Currently, the United States generates 20 percent of its electricity from nuclear power. In the South, nuclear power makes up 19.3 percent of energy generation. New emission-free nuclear power plants are essential to help meet growing demand for electricity and to preserve the fuel and technology diversity that is the strength of the U.S. electric supply system. No other source of electricity can provide the combined benefits of nuclear energy: large amounts of reliable and low-cost electricity, long-term price stability, and clean air benefits.

Nuclear power plants generate electricity to serve one in five homes and businesses in the United States. The U.S. Department of Energy (DOE) forecasts that electricity demand in the United States will increase by 50 percent by 2025. The South is the fastest growing region of the country. According to the Nuclear Regulatory Commission, 24 of the 25 expected applications for new reactor licenses will be in the 16 member states of the Southern Legislative Conference.

In 2002, the United States Congress approved, and the President signed into law, legislation establishing Yucca Mountain in Nye County, Nevada, as the site for the development of a repository for the disposal of spent nuclear fuel (SNF) and high-level waste (HLW). Nationally, there are 121 sites in 39 states which are currently storing SNF and HLW destined for geologic disposal at Yucca Mountain. Regionally, there are 45 reactors at 25 sites, in 13 of

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the 16 Southern Legislative Conference (SLC) states. According to 2002 population figures, in those states, 24.4 million people live within 50 miles of a nuclear power plant.

The Nuclear Waste Policy Act of 1982 requires the DOE to build and operate a specially designed disposal facility for SNF and HLW from commercial and defense activities. The federal Nuclear Waste Fund (NWF) was established by Congress in 1982 and is funded by electricity customers to pay for the disposal of used nuclear fuel from commercial power plants. Since 1983, electricity consumers have committed more than $26 billion in fees to the NWF. Congress’s current budgetary process is taking consumer money from the NWF and using it for other, unrelated programs. The federal government defaulted on its obligation to begin moving used fuel from power plants in 1998. In addition, over the past 11 years, Congress has provided $1.23 billion less than the program has requested. Recently, the U.S. House of Representatives approved full funding of $494.5 million for the Yucca Mountain in FFY 2008. The Senate Appropriations Committee approved $446.1 million for FFY 2008, almost $50 million less than what was requested by the DOE.

While the government remains in default, electricity consumers are paying millions of dollars for additional on-site storage in addition to the $26 billion already committed to the repository program.

Recommendation

The Southern Legislative Conference of The Council of State Governments (SLC) urges federal and state policymakers to espouse regulatory, legislative, and fiscal policies that support:

reaffirmation of support for the development and funding of Yucca Mountain, as the repository for the disposal of high-level waste and spent nuclear fuel;

the review of the 77,000 metric ton limit to allow use of the mountain’s full capacity, as determined by technical experts;

support management of land in and around the repository that is most advantageous to the proper operation of the Yucca Mountain program;

mitigation of regulatory risks associated with the deployment of new advanced reactors;

investment stimulus to support new nuclear plant construction; funding for nuclear energy research and development, including engineering and

design work for advanced reactor designs; and reform of the Nuclear Waste Fund by restoring the fund to its original budgetary

status; thus ensuring that fees paid by electricity customers are used solely to pay for the used fuel management program.

The Southern Legislative Conference of The Council of State Governments forwards its position to the president of the United States, members of Congress and the secretary of energy.

Adopted by the Southern Legislative Conference, July 17, 2007, Williamsburg, Virginia.

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CSG COMMITTEE ON SUGGESTED STATE LEGISLATION

Monday, November 12, 20072:30 – 5:30 p.m.

ENERGY SUPPLEMENT – PART I

- SUGGESTED STATE LEGISLATION DRAFTS- LEGISLATION FROM PAST SSL DOCKETS

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SUGGESTED STATE LEGISLATION SUSTAINABLE ENERGY SUPPLEMENT(Includes SSL drafts, recent state legislation, and legislation from recent SSL dockets)

Docket Numbering System:26 = Miscellaneous docket category; 28ES = docket 28 (Energy Supplement); 01 = Item number within category03-28ES (Energy Supplement – Supply/Generation) or 03-28ESC (Energy Supplement - Conservation) orItems on SSL dockets within last 5 years (e.g., 03-28B, 28A, etc.)

*Some bills could be listed under the Energy Supply/Generation category or the Energy Conservation Category.

ITEM NO. TITLE SOURCE ACTION

ENERGY SUPPLY/GENERATION

Suggested State Legislation

Transmission Authority (2007 SSL)Alternative Energy Portfolio Standards (2006 SSL)Electric Transmission Facilities: Recovering Costs forConstruction and Upgrading (2006 SSL)Biodiesel Fuel (2004 SSL)Ethanol Production Incentive (2004 SSL)Hydrogen Research and Development (2002 SSL)

Past Suggested State Legislation Docket Items

03-28B-01 Alternative Fuel Sales NY03-28B-02 Solar Energy Systems CA03-28B-03 State Energy Plan VA03-28B-04 Renewable Fuels Production Accountability LA03-28B-05 Governmental Aggregation of Retail Electric Loads OH03-28A-01A Biofuels IA03-28A-01B Alternative Fuels WA03-28A-01C Ethanol LA03-28A-02 Alternative Fuel Tax Credit NYHB 299 Transporting Fuels (docket 28A) KY03-27B-02 Biobased Products AR03-27B-04 Sustainably Priced Energy Enterprise Development VT03-27A-01A Renewable Energy Industries - Tax Credits WA03-27A-01B Tax Credits For Solar Energy WA03-26A-01 Default Electricity Supply Procurement Process MT03-25C-01 Electrical Corporations: Procurement Plans CA03-24C-01 Renewable Fuels Development Program IL03-24A-02 Renewables Portfolio Standard Program CA03-23C-01 Gasoline Price Caps HI

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03-23A-02 Power Plant Siting CA03-23A-03 Expediting Applications for Power GeneratingFacilities NY03-23A-04A Energy Facility Siting – Short Term OR03-23A-04B Energy Facility Siting – Long Term OR03-23A-05 Performance-Based Efficiency Contracts OK03-23A-06 Coal Rights Act IL03-22C-02 Energy Security and Reliability MN

ENERGY CONSERVATION


Energy Conservation (2008 SSL)Conservation of Energy and Natural Resources in the Design ofState Building Projects (2007 SSL)Shielded Outdoor Lighting (2006 SSL)Clean Energy Incentives (2002 SSL)

Past Suggested State Legislation Docket Items

03-27B-01 Energy Efficiency Standards for Certain Products NJ03-26B-02 High Performance Public Buildings WA03-25A-01 Improvement of Energy Efficiency InState-Funded Construction ME03-24A-05 Climate and Rural Energy Development Center WA03-23A-01 California Consumer Power and ConservationFinancing Authority CA

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ENERGY SUPPLY/GENERATIONSuggested State Legislation

Transmission Authority (2007 SSL)

This Act creates a state-owned authority to facilitate developing electric power lines and substations.

Submitted as:North DakotaChapter 406 of 2005Status: Enacted into law in 2005.


(Title, enacting clause, etc.)

Section 1. [Short Title.] This Act may be cited as “An Act To Provide For A State Transmission Authority.”

Section 2. [State Transmission Authority.] There is created a [state transmission authority], which shall be governed an [industrial commission].

Section 3. [Definitions.] As used in this Act:A. “Authority” means the [industrial commission] acting as the [state transmission

authority].B. “Commission” means the [industrial commission].C. “Industrial Commission” means [insert definition.]D. “Notice of intent” means the notice to the [authority] indicating willingness to

construct transmission facilities contemplated by the [authority] or to provide services fulfilling the need for such transmission facilities.

E. “Project area” means the geographic area in which construction of a transmission facility contemplated by the [authority] is likely to occur.

F. “Transmission facilities” means electric transmission lines and substations, and related structures, equipment, rights of way, and works of public improvement, located within and outside this state, excluding electric generating facilities.

Section 4. [Purposes.] The [state transmission authority] is created to diversify and expand the state economy by facilitating development of transmission facilities to support the production, transportation, and utilization of [insert state] electric energy.

Section 5. [Powers.] The [authority] has all powers necessary to carry out the purposes of this Act, including the power to:

A. make grants or loans and to provide other forms of financial assistance as necessary or appropriate for the purposes of this Act;

B. make and execute contracts and all other instruments necessary or convenient for the performance of its powers and functions under this Act;

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C. borrow money and issue evidences of indebtedness as provided in this Act;D. receive and accept aid, grants, or contributions of money or other things of value from

any source, including aid, grants, or contributions from any department, agency, or instrumentality of the United States, subject to the conditions upon which the aid, grants, or contributions are made and consistent with the provisions of this Act;

E. issue and sell evidences of indebtedness in an amount or amounts as the [authority] may determine, but not to exceed [eight hundred million dollars], plus costs of issuance, credit enhancement, and any reserve funds required by agreements with or for the benefit of holders of the evidences of indebtedness for the purposes for which the [authority] is created under this Act, provided that the amount of any refinancing shall not be counted toward such [eight hundred million dollar] limitation to the extent it does not exceed the outstanding amount of the obligations being refinanced;

F. refund and refinance its evidences of indebtedness;G. make and execute interest rate exchange contracts;H. enter lease-sale contracts;I. pledge any and all revenues derived by the [authority] under this Act or from a

transmission facility, service, or activity funded under this Act to secure payment or redemption of the evidences of indebtedness;

J. to the extent and for the period of time necessary for the accomplishment of the purposes for which the [authority] was created, plan, finance, develop, acquire, own in whole or in part, lease, rent, and dispose of transmission facilities;

K. enter contracts to construct, maintain, and operate transmission facilities;L. consult with the [public service commission], regional organizations, and any other

relevant state or federal authority as necessary and establish reasonable fees, rates, tariffs, or other charges for transmission facilities and all services rendered by the [authority];

M. lease, rent, and dispose of transmission facilities owned pursuant to this Act;N. investigate, plan, prioritize, and propose corridors of the transmission of electricity;O. participate in and join regional transmission organizations; and P. do any and all things necessary or expedient for the purposes of the [authority]

provided in this Act.

Section 6. [Coordinating Planning Transmission Facilities and Notice.]A. The [authority] shall coordinate its plans for transmission facilities with regional

organizations having transmission planning responsibilities for the project area.B. Before exercising its powers to construct transmission facilities granted to it in this

Act, the [authority] shall publish in a newspaper of general circulation in this state and in a newspaper in the project area, a notice describing the need for transmission facilities contemplated by the [authority]. Anyone willing to construct the transmission facilities or furnish services to satisfy the needs described in the notice have a period of [one hundred eighty days] from the date of last publication of the notice within which to deliver to the [authority] a notice of intent. After receipt of a notice of intent, the [authority] may not exercise its powers to construct transmission facilities unless the [authority] finds that exercising its [authority] would be in the public interest. In making such a finding the [authority] shall consider factors including economic impact to the state, economic feasibility, technical performance, reliability, past performance and the likelihood of successful completion and ongoing operation.

C. The [authority] may require a person giving a notice of intent to provide a bond and to submit a plan for completion of the transmission facilities or commencement of services within a period of time acceptable to the [authority]. If no person submits an adequate plan or bond as

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required by the [authority], the [authority] may proceed with contracting for construction of the facility described in the [authority’s] published notice.

Section 7. [Authority May Participate Upon Request.] The [authority] may participate in a transmission facility through financing, planning, joint ownership, or other arrangements at the request of a person giving a notice of intent.

Section 8. [Evidences of Indebtedness.] A. Evidences of indebtedness of the [authority] must be authorized by resolution of the

[industrial commission] and may be issued in one or more series and must bear such date or dates, mature at such time or times, bear interest at such rate or rates of interest per year, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without the state, and be subject to such terms of redemption, with or without premium, as such resolution or resolutions may provide. Evidences of indebtedness of the [authority] are to mature not more than [forty years] from the date of issue. Evidences of indebtedness of the [authority] may be sold at such time or times and at such price or prices as the authority determines.

B. Evidences of indebtedness and grants, loans, or other forms of financial assistance issued by the [authority] are payable solely from:

1. revenues that may be received by the [authority] from transmission facilities, services, or activities funded under this Act with the proceeds of the [authority’s] evidences of indebtedness, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining such transmission facilities except depreciation.

2. amounts received by the [authority] under loans authorized under this Act.3. revenues received by the [authority] under this Act from any source other than

general tax revenues.C. The evidences of indebtedness are not subject to taxation by the state or any of its

political subdivisions and do not constitute a debt of this state within the meaning of any statutory or constitutional provision and must contain a statement to that effect on their face.

D. The [authority] may establish and maintain a reserve fund for evidences of indebtedness issued under this Act.

E. There must be deposited in the reserve fund:1. all moneys appropriated by the legislative assembly to the [authority] for the

purpose of the reserve fund. 2. all proceeds of evidences of indebtedness issued under this Act required to be

deposited in the reserve fund by the terms of any contract between the [authority] and the holders of its evidences of indebtedness or any resolution of the [authority].

3. any lawfully available moneys of the [authority] which it may determine to deposit in the reserve fund.

4. any moneys from any other source made available to the [authority] for deposit in the reserve fund or any contractual right to the receipt of moneys by the [authority] for the purpose of the fund, including a letter of credit, surety bond, or similar instrument.

F. The [authority] must include in its biennial request to the [office of the budget] the amount, if any, necessary to restore any reserve fund established under this section to an amount equal to the amount required to be deposited in the fund by the terms of any contract or resolution approved by the [commission].

G. Any pledge of revenue made by the [industrial commission] as security for the [authority’s] evidences of indebtedness is valid and binding from time to time when the pledge is

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made. The revenues or other moneys so pledged and thereafter received by the [authority] are immediately subject to the lien of any such pledge without any physical delivery thereof or further act, and the lien of any such pledge is valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the [authority], regardless of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be filed or recorded, except in the records of the [authority].

H. The [authority] is authorized and empowered to obtain from any entity of the state, any department or agency of the United States of America, or any nongovernmental insurer any insurance, guaranty, or liquidity facility, or from a financial institution a letter of credit to the extent such insurance, guaranty, liquidity facility, or letter of credit now or hereafter available, as to, or for, the payment or repayment of, interest or principal, or both, or any part thereof, on any evidences of indebtedness issued by the authority pursuant to this Act, and to enter into any agreement or contract with respect to any such insurance, guaranty, letter of credit, or liquidity facility, and pay any required fee, unless the same would impair or interfere with the ability of the authority to fulfill the terms of any agreement made with the holders of its evidences of indebtedness.

I. After issuance, all evidences of indebtedness of the [authority} are conclusively presumed to be fully authorized and issued under the laws of the state, and any person or governmental unit is estopped from questioning their authorization, sale, issuance, execution, or delivery by the [authority].

J. When the [authority] has issued evidences of indebtedness and pledged the revenues of the transmission facilities for the payment thereof as herein provided, the [authority] shall operate and maintain the transmission facilities and shall impose and collect fees and charges for the services furnished by the transmission facilities, including those furnished to the [authority] itself, in the amounts and at the rates as are fully sufficient at all times to:

1. pay the expenses of operating and maintaining the transmission facilities;2. provide a debt service fund sufficient to assure the prompt payment of principal

and interest on the evidences of indebtedness at maturity; and3. provide a reasonable fund for contingencies as may be required by the

resolution authorizing the evidences of indebtedness.

Section 9. [Public Service Commission Jurisdiction and Consultation.]A. The [authority] and the transmission facilities built under this Act, until sold or

disposed of by the [authority], are exempt from the provisions of [insert citation]. Upon sale or disposal by the [authority], transmission facilities built under this Act are subject to the provisions of [insert citation].

B. The [authority] shall consult with the [public service commission] with respect to the rates charged by the [authority] for use of its transmission facilities and such rates must thereafter be considered just and reasonable in proceedings before the [public service commission] pursuant to [insert citation].

C. The [authority] shall conduct its activities in consultation with transmission providers, wind interests, the [Lignite Research Council], and other people having relevant expertise.

Section 10. [Bonds as Legal Investments.] The bonds of the [authority] are legal investments which may be used as collateral for public funds of the state, insurance companies, banks, savings and loan associations, investment companies, trustees, and other fiduciaries which may properly and legally invest funds in their control or belonging to them in bonds of the [authority]. The [state investment board] may invest in bonds of the [authority] in an amount specified by the [state investment board].

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Section 11. [Disposal of Transmission Facilities.]A. Before becoming an owner or partial owner of a transmission facility, the [authority]

shall develop a plan identifying:1. the public purposes of the [authority’s] ownership;2. conditions that would make the [authority’s] ownership no longer necessary for

accomplishing those public purposes; and3. a plan to divest the [authority’s] ownership interest as soon as economically

prudent once those conditions occur.B. For transmission facilities that are leased to another entity by the [authority], at the end

of the lease, absent default by the lessee, the [authority] shall convey its interest in the transmission facilities to the lessee.

C. For transmission facilities that are owned by the [authority] without a lessee, the [authority] shall divest itself of ownership as soon as economically prudent in accordance with the divestiture plan developed pursuant to subsection A.

Section 12. [Exemption from Property Taxes.] Transmission facilities built under sections 1 through 11 of this Act are exempt from property taxes for a period determined by the [authority] not to exceed the first [five taxable years] of operation; after this initial period, transmission lines of [two hundred thirty kilovolts] or larger and the transmission lines' associated transmission substations remain exempt from property taxes but are subject to a per mile tax at the full per mile rate and subject to the same manner of imposition and allocation as the per mile tax imposed by [insert citation] without application of the discounts provided in that subsection.

Section 13. [Biennial Report to Legislative Council.] The [authority] shall deliver a written report on its activities to the [legislative council] each [biennium].

Section 14. [Severability.] [Insert severability clause.]

Section 15. [Repealer.] [Insert repealer clause.]

Section 16. [Effective Date.] [Insert effective date.]

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Disposition:

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590591592

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CSG policy task force recommendations to The Committee on Suggested State Legislation: 2008 Energy Supplement

( ) Include in Volume( ) Reject( ) No action

Comments/Note to staff:

SSL Committee Meeting: 2008 Energy Supplement

( ) Include in Volume( ) Reject


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Alternative Energy Portfolio Standards (2006 SSL)

This Act provides for the sale of electric energy generated from renewable and environmentally beneficial sources, for the acquisition of electric energy generated from renewable and environmentally beneficial sources by electric distribution and supply companies and for the powers and duties of the state public utility commission.

The Act establishes a two-tiered portfolio standard to ensure that in 15 years, a percentage of all of the energy generated in the state comes from clean and efficient sources. Tier I requires a percentage of electricity sold at retail in the state to come from traditional renewable sources such as solar photovoltaic energy, wind power, low-impact hydropower, geothermal energy, biologically derived methane gas, fuel cells, biomass energy or coal-mine methane. Part of the Tier I electricity must come from solar photovoltaic cells. Tier II requires some of the electricity to be generated from waste coal, distributed generation systems, demand-side management, large-scale hydropower, municipal solid waste, generation from pulping and wood manufacturing byproducts, and integrated combined coal gasification technology.

Submitted as:PennsylvaniaSB 1030Status: Enacted into law in 2004.


Section 1. [Short Title.] This Act may be cited as “The Alternative Energy Portfolio Standards Act.”

Section 2. [Definitions.] As used in this Act:A. “Alternative energy credit” means a tradable instrument that is used to establish,

verify and monitor compliance with this Act. A unit of credit shall equal one megawatt hour of electricity from an alternative energy source.

B. “Alternative energy portfolio standards” means standards establishing that a certain amount of energy sold from alternative energy sources is included as part of the sources of electric generation by electric utilities within this state.

C. “Alternative energy sources” shall include the following existing and new sources for the production of electricity:

(1) solar photovoltaic or other solar electric energy. (2) solar thermal energy.(3) wind power. (4) large-scale hydropower, which shall mean the production of electric power by

harnessing the hydroelectric potential of moving water impoundments, including pumped storage that does not meet the requirements of low-impact hydropower under paragraph (5).

(5) low-impact hydropower, consisting of any technology that produces electric power and that harnesses the hydroelectric potential of moving water impoundments, provided such incremental hydroelectric development:

(i) does not adversely change existing impacts to aquatic systems; (ii) meets the certification standards established by the Low Impact

Hydropower Institute and American Rivers, Inc., or their successors;

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(iii) provides an adequate water flow for protection of aquatic life and for safe and effective fish passage;

(iv) protects against erosion; and (v) protects cultural and historic resources.

(6) geothermal energy, which shall mean electricity produced by extracting hot water or steam from geothermal reserves in the earth's crust and supplied to steam turbines that drive generators to produce electricity.

(7) biomass energy, which shall mean the generation of electricity utilizing the following:

(i) organic material from a plant that is grown for the purpose of being used to produce electricity or is protected by the Federal Conservation Reserve Program (CRP) and provided further that crop production on CRP lands does not prevent achievement of the water quality protection, soil erosion prevention or wildlife enhancement purposes for which the land was primarily set aside; or

(ii) any solid nonhazardous, cellulosic waste material that is segregated from other waste materials, such as waste pallets, crates and landscape or right-of-way tree trimmings or agricultural sources, including orchard tree crops, vineyards, grain, legumes, sugar and other crop by-products or residues.

(8) biologically derived methane gas, which shall include methane from the anaerobic digestion of organic materials from yard waste, such as grass clippings and leaves, food waste, animal waste and sewage sludge. The term also includes landfill methane gas.

(9) fuel cells, which shall mean any electrochemical device that converts chemical energy in a hydrogen-rich fuel directly into electricity, heat and water without combustion.

(10) waste coal, which shall include the combustion of waste coal in facilities in which the waste coal was disposed or abandoned prior to [July 31, 1982], or disposed of thereafter in a permitted coal refuse disposal site regardless of when disposed of, and used to generate electricity; or such other waste coal combustion meeting alternate eligibility requirements established by regulation. Facilities combusting waste coal shall use at a minimum a combined fluidized bed boiler and be outfitted with a limestone injection system and a fabric filter particulate removal system. Alternative energy credits shall be calculated based upon the proportion of waste coal utilized to produce electricity at the facility.

(11) coal mine methane, which shall mean methane gas emitting from abandoned or working coal mines.

(12) demand side management consisting of the management of customer consumption of electricity or the demand for electricity through the implementation of:

(i) energy efficiency technologies, management practices or other strategies in residential, commercial, institutional or government customers that reduce electricity consumption by those customers;

(ii) load management or demand response technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand; or

(iii) industrial by-product technologies consisting of the use of a by-product from an industrial process, including the reuse of energy from exhaust gases or other manufacturing by-products that are used in the direct production of electricity at the facility of a customer.

(13) distributed generation system, which shall mean the small-scale power generation of electricity and useful thermal energy.

D. “Alternative energy system” means a facility or energy system that uses a form of alternative energy source to generate electricity and delivers the electricity it generates to the

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distribution system of an electric distribution company or to the transmission system operated by a regional transmission organization.

E. “Commission” means the state [public utility commission]. F. “Cost recovery period” means the longer of:

(1) the period during which competitive transition charges under [insert citation] (relating to competitive transition charge) or intangible transition charges under [insert citation] (relating to approval of transition bonds) are recovered or the period during which an electric bonds) are recovered; or

(2) the period during which an electric distribution company operates under a state Public Utility Commission-approved generation rate plan that has been approved prior to or within [one year of the effective date of this Act], but in no case shall the cost recovery period under this Act extend beyond [December 31, 2010].

G. “Customer-generator” means a nonutility owner or operator of a net metered distributed generation system with a nameplate capacity of not greater than [50 kilowatts] if installed at a residential service or not larger than [1,000 kilowatts] at other customer service locations, except for customers whose systems are above [one megawatt and up to two megawatts] who make their systems available to operate in parallel with the electric utility during grid emergencies as defined by the regional transmission organization, or where a microgrid is in place for the purpose of maintaining critical infrastructure, such as homeland security assignments, emergency services facilities, hospitals, traffic signals, wastewater treatment plants or telecommunications facilities, provided that technical rules for operating generators interconnected with facilities of an electric distribution company, electric cooperative or municipal electric system have been promulgated by the Institute of Electrical and Electronic Engineers and the state [public utility commission].

H. “Department” means the [department of environmental protection] of the state. I. “Electric distribution company” means the term shall have the same meaning given to it

in [insert citation] (relating to restructuring of electric utility industry).J. “Electric generation supplier” has the same meaning given to it in [insert citation]

(relating to restructuring of electric utility industry). K. “Force majeure” means that upon its own initiative or upon a request of an electric

distribution company or an electric generator supplier, the [state public utility commission], within [60 days], shall determine if alternative energy resources are reasonably available in the marketplace in sufficient quantities for the electric distribution companies and electric generation suppliers to meet their obligations for that reporting period under this Act. If the [commission] determines that alternative energy resources are not reasonably available in sufficient quantities in the marketplace for the electric distribution companies and electric generation suppliers to meet their obligations under this Act, then the [commission] shall modify the underlying obligation of the electric distribution company or electric generation supplier or recommend to the [general assembly] that the underlying obligation be eliminated.

L. “Municipal solid waste” includes energy from existing waste to energy facilities which the [Department of Environmental Protection] has determined are in compliance with current environmental standards, including, but not limited to, all applicable requirements of the Clean Air Act (69 Stat. 322,42 U.S.C. § 7401 et seq.) and associated permit restrictions, and all applicable requirements of the Act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste Management Act.

M. “Net metering” means measuring the difference between the electricity supplied by an electric utility and the electricity generated by a customer-generator, when the renewable energy generating system is intended primarily to offset part or all of the customer-generator's requirements for electricity.

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N. “Regional transmission organization” means an entity approved by the Federal Energy Regulatory Commission (FERC) that is created to operate and manage the electrical transmission grids of the member electric transmission utilities as required under FERC Order 2000, Docket No. RM99-2-000, FERC Chapter 31.089 (1999) or any successor organization approved by the FERC.

O. “Reporting period” means the [12-month period from June 1 through May 31]. A reporting year shall be numbered according to the calendar year in which it begins and ends.

P. “Retail electric customer” has the same meaning given to it in [insert citation] (relating to restructuring of electric utility industry).

Q. “Tier I alternative energy source” means energy derived from:(1) solar photovoltaic energy;(2) wind power;(3) low-impact hydropower;(4) geothermal energy;(5) biologically derived methane gas;(6) fuel cells;(7) biomass energy; or(8) coal mine methane.

R. “Tier II alternative energy source” means energy derived from: (1) waste coal;(2) distributed generation systems; (3) demand-side management; (4) large-scale hydropower; (5) municipal solid waste; (6) generation of electricity utilizing by-products of the pulping process and wood

manufacturing process including bark, wood chips, sawdust and lignin in spent pulping liquors; or

(7) integrated combined coal gasification technology. S. “True-up period” means the period each year from the end of the reporting year until

[September 1].

Section 3. [Alternative Energy Portfolio Standards.] A. General compliance and cost recovery.

(1) From the effective date of this Act through and including the [15th year] after enactment of this Act, and each year thereafter, the electric energy sold by an electric distribution company or electric generation supplier to retail electric customers in this state shall be comprised of electricity generated from alternative energy sources, and in the percentage amounts as described under subsections (B) and (C).

(2) Electric distribution companies and electric generation suppliers shall satisfy both requirements set forth in subsections (B) and (C); provided, however, that an electric distribution company or an electric generation supplier shall be excused from its obligations under this section to the extent that the [commission] determines that force majeure exists.

(3) All costs for:(i) the purchase of electricity generated from alternative energy sources,

including the costs of the regional transmission organization, in excess of the regional transmission organization real-time locational marginal pricing, or its successor, at the delivery point of the alternative energy source for the electrical production of the alternative energy sources; and

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(ii) payments for alternative energy credits, in both cases that are voluntarily acquired by an electric distribution company during the cost recovery period on behalf of its customers shall be deferred as a regulatory asset by the electric distribution company and fully recovered, with a return on the unamortized balance, pursuant to an automatic energy adjustment clause under [insert citation] (relating to sliding scale of rates; adjustments) as a cost of generation supply [insert citation] (relating to duties of electric distribution companies), in the [first year after the expiration of its cost recovery period]. After the cost recovery period, any direct or indirect costs for the purchase by electric distribution of resources to comply with this section, including, but not limited to, the purchase of electricity generated from alternative energy sources, payments for alternative energy credits, cost of credits banked, payments to any third party administrators for performance under this Act and costs levied by a regional transmission organization to ensure that alternative energy sources are reliable, shall be recovered on a full and current basis pursuant to an automatic energy adjustment clause under [insert citation] as a cost of generation supply under [insert citation].

B. Tier I and solar photovoltaic shares.(1) [Two years] after the effective date of this Act, at least [1.5%] of the electric

energy sold by an electric distribution company or electric generation supplier to retail electric customers in this state shall be generated from Tier I alternative energy sources. Except as provided in this section, the minimum percentage of electric energy required to be sold to retail electric customers from alternative energy sources shall increase to [2%] [three years] after the effective date of this Act. The minimum percentage of electric energy required to be sold to retail electric customers from alternative energy sources shall increase by at least [0.5%] each year so that at least [8%] of the electric energy sold by an electric distribution company or electric generation supplier to retail electric customers in that certificated territory in the [15th year] after the effective date of this subsection is sold from Tier I alternative energy resources.

(2) Of the electric energy required to be sold from Tier I sources, the total percentage that must be sold from solar photovoltaic technologies is for:

(i) years 1 through 4 - 0.0013%; (ii) years 5 through 9 - 0.0203%; (iii) years 10 through 14 - 0.2500%; and(iv) years 15 and thereafter - 0.5000%.

(3) Upon commencement of the beginning of the [6th reporting year], the [commission] shall undertake a review of the compliance by electric distribution companies and electric generation suppliers with the requirements of this Act. The review shall also include the status of alternative energy technologies within this state and the capacity to add additional alternative energy resources. The [commission] shall use the results of this review to recommend to the [legislature] additional compliance goals beyond year [15]. The [commission] shall work with the [department] in evaluating the future alternative energy resource potential.

C. Tier II share.(1) Of the electrical energy required to be sold from alternative energy sources

identified in Tier II, the percentage that must be from these technologies is for: (i) years 1 Through 4 - 4.2%; (ii) years 5 Through 9 - 6.2%;(iii) years 10 Through 14 - 8.2%; and(iv) years 15 And Thereafter - 10.0%.

D. Exemption during cost-recovery period.(1) Compliance with subsections (A), (B) and (C) shall not be required for any

electric distribution company that has not reached the end of its cost-recovery period or for electric generation supplier sales in the service territory of an electric distribution company that

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has not reached the end of its cost-recovery period. At the conclusion of an electric distribution company's cost-recovery period, this exception shall no longer apply, and compliance shall be required at the percentages in effect at that time. Electric distribution companies and electric generation suppliers whose sales are exempted under this subsection and who voluntarily sell electricity generated from Tier I and Tier II sources during the cost-recovery period may bank credits consistent with subsection (E)(7).

E. Alternative energy credits. (1) The [commission] shall establish an alternative energy credits program as

needed to implement this Act. The provision of services pursuant to this section shall be exempt from the competitive procurement procedures of [insert citation] (relating to procurement).

(2) The [commission] shall approve an independent entity to serve as the [alternative energy credits program administrator]. The [administrator] shall have those powers and duties assigned by [commission] regulations. Such powers and duties shall include, but not be limited to, the following:

(i) create and administer an alternative energy credits certification, tracking and reporting program. This program should include, at a minimum, a process for qualifying alternative energy systems and determining the manner credits can be created, accounted for, transferred and retired.

(ii) submit reports to the [commission] at such times and in such manner as the [commission] shall direct.

(3) All qualifying alternative energy systems must include a qualifying meter to record the cumulative electric production to verify the advanced energy credit value. Qualifying meters will be approved by the [commission] as defined in paragraph (4).

(4) (i) An electric distribution company or electric generation supplier shall comply with the applicable requirements of this section by purchasing sufficient alternative energy credits and submitting documentation of compliance to the [program administrator].

(ii) For purposes of this subsection, one alternative energy credit shall represent one megawatt hour of qualified alternative electric generation, whether self-generated, purchased along with the electric commodity or separately through a tradable instrument and otherwise meeting the requirements of [commission] regulations and the [program administrator].

(5) The alternative energy credits program shall include provisions requiring a reporting period as defined in section 2 for all covered entities under this Act. The alternative energy credits program shall also include a true-up period as defined in section 2. The true-up period shall provide entities covered under this Act the ability to obtain the required number of alternative energy credits or to make up any shortfall of the alternative energy credits they may be required to obtain to comply with this Act. A force majeure provision shall also be provided for under the true-up period provisions.

(6) An electric distribution company and electric generation supplier may bank or place in reserve alternative energy credits produced in [one reporting year] for compliance in either or both of the [two subsequent reporting years], subject to the limitations set forth in this subsection and provided that the electric distribution company and electric generation supplier are in compliance for all previous reporting years. In addition, the electric distribution company and electric generation supplier shall demonstrate to the satisfaction of the [commission] that such credits:

(i) were in excess of the alternative energy credits needed for compliance in the year in which they were generated and that such excess credits have not previously been used for compliance under this Act;

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(ii) were produced by the generation of electrical energy by alternative energy sources and sold to retail customers during the year in which they were generated; and

(iii) have not otherwise been nor will be sold, retired, claimed or represented as part of satisfying compliance with alternative or renewable energy portfolio standards in other states.

(7) An electric distribution company or an electric generation supplier with sales that are exempted under subsection D may bank credits for retail sales of electricity generated from Tier I and Tier II sources made prior to the end of the cost-recovery period and after the effective date of this Act. Bankable credits shall be limited to credits associated with electricity sold from Tier I and Tier II sources during a reporting year which exceeds the volume of sales from such sources by an electric distribution company or electric generation supplier during the [12-month] period immediately preceding the effective date of this Act. All credits banked under this subsection shall be available for compliance with subsections B and C for no more than [two reporting years] following the conclusion of the cost-recovery period.

(8) The [commission] or its designee shall develop a registry of pertinent information regarding all available alternative energy credits, credit transactions among electric distribution companies and electric generation suppliers, the number of alternative energy credits sold or transferred and the price paid for the sale or transfer of the credits. The registry shall provide current information to electric distribution companies, electric generation suppliers and the general public on the status of alternative energy credits created, sold or transferred within this state.

(9) The [commission] may impose an administrative fee on an alternative energy credit transaction. The amount of this fee may not exceed the actual direct cost of processing the transaction by the alternative energy credits administrator. The [commission] is authorized to use up to [5%] of the alternative compliance fees generated under subsection F for administrative expenses directly associated with this Act.

(10) The [commission] shall establish regulations governing the verification and tracking of energy efficiency and demand-side management measures pursuant to this Act, which shall include benefits to all utility customer classes. When developing regulations, the [commission] must give reasonable consideration to existing and proposed regulations and rules in existence in the regional transmission organizations that manage the transmission system in any part of this state. All verified reductions shall accrue credits starting with the passage of this Act.

(11) The [commission] shall within [120 days] of the effective date of this Act develop a depreciation schedule for alternative energy credits created through demand-side management, energy efficiency and load management technologies and shall develop standards for tracking and verifying savings from energy efficiency, load management and demand-side management measures. The [commission] shall allow for a [60-day] public comment period and shall issue final standards within [30 days] of the close of the public comment period.

F. Alternative compliance payment. (1) At the end of each program year, the [program administrator] shall provide a

report to the [commission] and to each covered electric distribution company showing their status level of alternative energy acquisition.

(2) The [commission] shall conduct a review of each determination made under subsections B and C. If, after notice and hearing, the [commission] determines that an electric distribution company or electric generation supplier has failed to comply with subsections B and C, the [commission] shall impose an alternative compliance payment on that company or supplier.

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(3) The alternative compliance payment, with the exception of the solar photovoltaic share compliance requirement set forth in subsection B2, shall be [$45] times the number of additional alternative energy credits needed in order to comply with subsection B or C.

(4) The alternative compliance payment for the solar photovoltaic share shall be [200%] of the average market value of solar renewable energy credits sold during the reporting period within the service region of the regional transmission organization.

(5) The [commission] shall establish a process to provide for, at least [annually], a review of the alternative energy market within this state and the service territories of the regional transmission organizations that manage the transmission system in any part of this state. The [commission] will use the results of this study to identify any needed changes to the cost associated with the alternative compliance payment program. The [commission] may raise the cost defined in this Act. If the [commission] finds that the costs associated with alternative compliance payment program must be changed, the [commission] shall present these findings to the [legislature] for legislative enactment.

G. Transfer to sustainable development funds.(1) Notwithstanding the provisions of [insert citation] (relating to disposition,

appropriation and disbursement of assessments and fees) and [insert citation] (relating to disposition of fines and penalties), alternative compliance payments imposed pursuant to this Act shall be paid into the state’s [sustainable energy funds], created under the [commission’s] restructuring orders under [insert citation] (relating to restructuring of electric utility industry). Alternative compliance payments shall be paid into a [special fund] of the [state sustainable energy board], established by the [commission] under [insert citation], and made available to the [regional sustainable energy funds] under procedures and guidelines approved by the [state energy board].

(2) The alternative compliance payments shall be utilized solely for projects that will increase the amount of electric energy generated from alternative energy resources for purposes of compliance with subsections B and C.

H. Nonseverability. The provisions of subsection (A) are declared to be nonseverable. If any provision of subsection (A) is held invalid, the remaining provisions of this Act shall be void.

Section 4. [Portfolio Requirements in Other States.] If an electric distribution supplier or electric generation company provider sells electricity in any other state and is subject to renewable energy portfolio requirements in that state, they shall list any such requirement and shall indicate how it satisfied those renewable energy portfolio requirements. To prevent double-counting, the electric distribution supplier or electric generation company shall not satisfy this state’s alternative energy portfolio requirements using alternative energy used to satisfy another state's portfolio requirements. Energy derived only from alternative energy sources inside the geographical boundaries of this state or within the service territory of any regional transmission organization that manages the transmission system in any part of this state shall be eligible to meet the compliance requirements under this Act. Electric distribution companies and electric generation suppliers shall document that this energy was not used to satisfy another state's renewable energy portfolio standards.

Section 5. [Interconnection Standards for Customer-Generator Facilities.] The [commission] shall develop technical and net metering interconnection rules for customer-generators intending to operate renewable onsite generators in parallel with the electric utility grid, consistent with rules defined in other states within the service region of the regional

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transmission organization that manages the transmission system in any part of this state. The [commission] shall convene a stakeholder process to develop statewide technical and net metering rules for customer-generators. The [commission] shall develop these rules within [nine months] of the effective date of this Act.

Section 6. [Health and Safety Standards.] The [department] shall cooperate with the state [department of labor and industry] as necessary in developing health and safety standards, as needed, regarding facilities generating energy from alternative energy sources. The [department] shall establish appropriate and reasonable health and safety standards to ensure uniform and proper compliance with this act by owners and operators of facilities generating energy from alternative energy sources as defined in this Act.

Section 7. [Interagency Responsibilities.]A. [Commission] responsibilities.

(1) The [commission] will carry out the responsibilities delineated within this Act. The [commission] also shall, in cooperation with the [department], conduct an ongoing alternative energy resources planning assessment for this state. This assessment will, at a minimum, identify current and operating alternative energy facilities, the potential to add future alternative energy generating capacity, and the conditions of the alternative energy marketplace. The assessment will identify needed methods to maintain or increase the relative competitiveness of the alternative energy market within this state.

B. [Department] responsibilities. (1) The [department] shall ensure that all qualified alternative energy sources

meet all applicable environmental standards and shall verify that an alternative energy source meets the standards set forth in section 2.

C. Cooperation between [commission] and [department]. (1) The [commission] and the [department] shall work cooperatively to monitor

the performance of all aspects of this Act and will provide an annual report to the [legislature]. The report shall include at a minimum:

(i) the status of the compliance with the provisions of this Act by electric distribution companies and electric generations suppliers;

(ii) current costs of alternative energy on a per kilowatt hour basis for all alternative energy technology types;

(iii) costs associated with the alternative energy credits program under this Act, including the number of alternative compliance payments;

(iv) the status of the alternative energy marketplace within this state; and(v) recommendations for program improvements.

Section 8. [Rural Electric Cooperatives.] Each rural electric cooperative operating within this state shall offer to its retail customers a voluntary program of energy efficiency and demand-side management programs, as a means to satisfy compliance with the requirements of this Act.




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1012101310141015101610171018101910201021102210231024102510261027102810291030103110321033103410351036

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Disposition:

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Electric Transmission Facilities: Recovering Costs for Construction and Upgrading (2006 SSL)

This Act authorizes the state corporation commission to approve inclusion in retail electric rates of regulated electric utilities, electric cooperatives, and municipal electric utilities those costs associated with the construction or improvement of electric transmission facilities under certain circumstances. The bill covers costs for construction or upgrading of electric lines with an operating voltage of at least 115 kilovolts. Electric cooperatives and municipal electric utilities would be subject to the jurisdiction of the corporation commission for implementation of the Act.

The corporation commission could approve inclusion of the specified costs in retail utility rates if the commission finds:

That a regional transmission organization has identified the construction or upgrade as appropriate for reliability of the electric transmission system or for economic benefit to transmission owners and customers; and

A state agency has determined that the project will provide measurable economic benefit to electric consumers in the state that would exceed anticipated project costs.

The commission could approve recovery of project costs in retail electric rates only if those costs would not otherwise be recovered.Comment:

This Act is reported to be the first to provide statutory authority for a public utility commission, based on a recommendation by a regional transmission organization, to assign full cost-recovery charges to all beneficiaries for an economic development-based transmission project. Economic development projects are all proposed non-system reliability transmission lines (e.g. to move low cost power to high cost areas, or to serve some types of new loads or generation). The significance of this bill is that it requires that approval of a transmission project by a regional transmission organization shall constitute a rebuttable presumption of the appropriateness of such a project, and recovery of unassigned costs for the project shall be assessed and collected from all beneficiaries.

Submitted as:KansasHB 2045Status: Enacted into law in 2005.


Section 1. [Short Title.] This Act may be cited as “An Act to Cover the Cost of Building and Upgrading Electric Transmission Facilities.”

Section 2. [Definitions.] As used in this Act: (1) ‘‘Appurtenances’’ means all substations, towers, poles and other structures and

equipment necessary for the bulk transfer of electricity. (2) ‘‘Commission’’ means the state [corporation commission]. (3) ‘‘Construction or upgrade of an electric transmission facility’’ means construction or

upgrade of an electric line, and appurtenances with an operating voltage of 115 kilovolts or more.

29

1068

10691070107110721073107410751076107710781079108010811082108310841085108610871088108910901091109210931094109510961097109810991100110111021103110411051106110711081109111011111112111311141115

29

Section 3. [Criteria for Recovering Costs.](1) Upon application, the [commission] may authorize recovery of costs associated with

the construction or upgrade of an electric transmission facility if the [commission] finds that: (A) A regional transmission organization has identified such construction or

upgrade as appropriate for reliable operation of the integrated electric transmission system; or for economic benefits to transmission owners and customers; and

(B) A state agency has determined that such construction or upgrade will provide measurable economic benefits to electric consumers in all or part of this state that will exceed anticipated project costs; and

(2) Such costs are not being otherwise recovered. (3) The [commission] shall review an application for recovery of costs pursuant to this

section in an expedited manner if the application includes evidence that expedited construction or upgrade of the electric transmission facility will result in significant, measurable economic benefits to electric consumers in this state. Recommendation or approval of construction or upgrade of an electric transmission facility by a regional transmission organization shall constitute a rebuttable presumption of the appropriateness of such construction or upgrade for system reliability or economic dispatch of power.

(4) In determining whether to approve recovery of costs pursuant to this section the [commission] may consider factors such as the speed with which electric consumers in this state will benefit from the transmission facility and the long-term benefits of the transmission facility to electric consumers in this state, or both, and whether such factors outweigh other less costly options. An application for recovery of costs pursuant to this section shall include such information as the [commission] requires to weigh such factors, including, but not limited to, information regarding estimated line losses, reactive power and voltage implications and long-term economic and system reliability benefits.

(5) Any recovery of costs authorized by the [commission] pursuant to this section shall be assessed against all electric public utilities, electric municipal utilities and electric cooperative utilities receiving benefits of the construction or upgrade and having retail customers in this state. Each such utility’s assessment shall be based on the benefits the utility receives from the construction or upgrade. In determining allocation of benefits and costs to utilities, the [commission] may take into account funding and cost recovery mechanisms developed by regional transmission organizations and shall take into account financial payments by transmission users and approved by the Federal Energy Regulatory Commission or regional transmission organization. Each electric public utility shall recover any such assessed costs from the utility’s retail customers in a manner approved by the [commission] and each electric municipal or cooperative utility shall recover such assessed costs from the utility’s retail customers in a manner approved by the utility’s governing body.

(6) All money collected by a utility from assessments authorized by the [commission] pursuant to this section shall be paid quarterly by the utility to the transmission operator or owner designated by the [commission].

(7) Notwithstanding any other provision of law to the contrary, electric municipal utilities and electric cooperative utilities shall be subject to the jurisdiction of the [commission] for the limited purpose of implementing the provisions of this section.




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Disposition:

31

11651166

31







32

11671168116911701171117211731174117511761177117811791180118111821183

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Biodiesel Fuel (2004 SSL)

This Act establishes regulations for selling biodiesel fuel. Biodiesel is a clean-burning fuel made from domestically produced renewable fats and oils such as soybean oil or recycled cooking oils. It is registered as a fuel and fuel additive with the Environmental Protection Agency and meets standards from the California Air Resources Board and American Society for Testing and Materials.

Submitted as:ArizonaChapter 104 of 2002 Status: Enacted into law in 2002.



Section 1. [Short Title.] This Act may be cited as “An Act Regulating the Sale of Biodiesel Fuel.”

Section 2. [Definitions.] As used in this Act:(1) “Biodiesel” means a diesel fuel substitute that satisfies all of the following:

(a) Is produced from nonpetroleum renewable resources if the qualifying volume of nonpetroleum renewable resources meets the standards for California diesel fuel as adopted by the California Air Resources Board pursuant to 13 California Code of Regulations Sections 2281 and 2282 in effect on January 1, 2000.

(b) Meets the registration requirement for fuels and additives established by the Environmental Protection Agency pursuant to Section 211 of the Clean Air Act.

(c) The use of the diesel fuel substitute complies with the requirements listed in 10 Code of Federal Regulations Part 490, as printed in the Federal Register, Volume 64, Number 96, May 19, 1999.

(d) Is sold, offered or exposed for sale as a neat product or blended with diesel fuel.

(2) “Department” means the [state department of weights and measures].(3) “Diesel” means a refined middle distillate for use as a fuel in a compression-ignition

internal combustion engine.(4) “Director” means the [director of the department of weights and measures].(5) “Person” means both the plural and the singular, as the case demands, and includes

individuals, partnerships, corporations, companies, societies and associations.

Section 3. [Prohbitions Against Selling Biodiesel Fuel.] (1) A person shall not sell or offer or expose for sale biodiesel that is not tested or does

not meet the specifications established by the American Society for Testing and Materials (ASTM) D6751 or any blend of biodiesel and diesel fuel that is not tested or does not meet the specifications established by ASTM D975 and that contains sulfur in excess of [five hundred parts per million] for use in areas as defined in [insert citation].

(2) A person that blends biodiesel that is intended as a final product for the fueling of motor vehicles shall report to the [director] by the [fifteenth day of each month] the quantity and

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11851186118711881189119011911192119311941195119611971198119912001201120212031204120512061207120812091210121112121213121412151216121712181219122012211222122312241225122612271228122912301231

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quality of biodiesel shipped to or produced in this state during the preceding month. A person who supplies biodiesel subject to this subsection shall report the following by batch:

(a) The percentage of biodiesel in a final blend.(b) The volume of the finished product.(c) For neat biodiesel, the results of analysis for those parameters established by

ASTM D6751.(d) For biodiesel blended with any diesel fuel, the results of the analysis of the

following motor fuel parameters as established by ASTM D975:(I) Sulfur content.(II) Aromatic hydrocarbon content.(III) Cetane number.(IV) Specific gravity.(V) American Petroleum Institute Gravity.(VI) The temperatures at which ten per cent, fifty per cent and ninety per

cent of the diesel fuel boiled off during distillation.(3) The report required by subsection 2 of this section shall be on a form prescribed by

the [director] and shall contain a certification of truthfulness and accuracy of the data submitted and a statement of the supplier's consent permitting the [department] or its authorized agent to collect samples and access records as provided in rules adopted by the [department]. A corporate officer who is responsible for operations at the facility that produces or ships the final product shall sign the report.

(4) A person shall label dispensers at which biodiesel is dispensed in such a manner as to notify other persons of the volume percentage of biodiesel in the finished product.




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34

Disposition:

35

126112621263

35







36

12641265126612671268126912701271127212731274127512761277127812791280

36

Ethanol Production Incentive (2004 SSL)

This Act establishes a countercyclical financial incentive for the production of ethanol in any newly constructed ethanol production plants. This Act is based upon a North Dakota law that implemented the first program in the nation to create a market-based support system for the growing ethanol industry.

Submitted as:North DakotaSB 2222Status: Enacted as Chapter 57 in 2003.



Section 1. [Short Title.] This Act may be cited as “An Act to Establish Ethanol Production Incentives.”

Section 2. [Definition.] In this Act, "eligible facility" means an ethanol production plant constructed in this state after [July 31, 2003].

Section 3. [Ethanol Production Incentive - Calculation and Payment.] The [agricultural products utilization commission] shall provide [quarterly] to each eligible facility a production incentive based on the average [state] price per bushel of corn received by farmers during the quarter, as established by the state [agricultural statistics service] and the average [state] rack price per gallon [3.79 liters] of ethanol during the quarter, as compiled by the American Coalition for Ethanol. The amount payable as a production incentive must be calculated by including the sum arrived at under subsection 1 of this section with the sum arrived at under subsection 2.

1. a. If the average quarterly price per bushel of corn is above [one dollar and eighty cents], for each [one cent] by which the quarterly price is above [one dollar and eighty cents], the [agricultural products utilization commission] shall add to the amount payable under this section [one-tenth of one cent] times the number of gallons of ethanol produced by the eligible facility during the quarter.

b. If the average quarterly price per bushel of corn is [one dollar and eighty cents], the [agricultural products utilization commission] shall add [zero] to any amount payable under this section.

c. If the average quarterly price per bushel of corn is below [one dollar and eighty cents], for each [one cent] by which the quarterly price is below [one dollar and eighty cents], the [agricultural products utilization commission] shall subtract from the amount payable under this section [one-tenth of one cent] times the number of gallons of ethanol produced by the eligible facility during the quarter.

2. a. If the average quarterly rack price per gallon of ethanol is above [one dollar and thirty cents], for each [one cent] by which the average quarterly rack price is above [one dollar and thirty cents], the [agricultural products utilization commission] shall subtract from the amount payable under this section, [two-tenths of one cent] times the number of gallons of ethanol produced by the eligible facility during the quarter.

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b. If the average quarterly rack price per gallon of ethanol is [one dollar and thirty cents], the [agricultural products utilization commission] shall subtract [zero] from any amount payable under this section.

c. If the average quarterly rack price per gallon of ethanol is below [one dollar and thirty cents], for each [one cent] by which the average quarterly rack price is below [one dollar and thirty cents], the [agricultural products utilization commission] shall add to the amount payable under this section [two-tenths of one cent] times the number of gallons of ethanol produced by the eligible facility during the quarter.

Section 4. [Subsidy Limitations.] The [agricultural products utilization commission] may not distribute more than [one million six hundred thousand dollars] annually in payments under section 3 of this Act. No eligible facility may receive state ethanol payments that exceed a cumulative total of [ten million dollars]. Change in ownership of an eligible facility does not affect the [ten million dollar cumulative total] allowed to be paid to that eligible facility under this section.

Section 5. [Ethanol Production Incentive Fund - Continuing Appropriation.] There is created in the [State Treasury] a special fund known as the [Ethanol Production Incentive Fund]. The [Fund] consists of transfers made in accordance with section 7 of this Act and deposits made in accordance with section 8 of this Act. All money in the [Fund] is appropriated on a continuing basis to the [agricultural products utilization commission] for use in paying ethanol production incentives under sections 3 and 4 of this Act and section 6 of this Act.

Section 6. [Duration and Limitation of Ethanol Plant Production Incentives.] 1. An ethanol plant that was in operation before [July 1, 1995], and which has a

production capacity of fewer than [fifteen million gallons (56781000 liters)] of ethanol may receive up to [six hundred thousand dollars] in production incentives from the state for production in a fiscal year. An ethanol plant that was in operation before [July 1, 1995], and which produced [fifteen million (56781000 liters) or more gallons] in the previous fiscal year is eligible to receive an equal share in up to [three hundred thousand dollars] in production incentives from the state in a fiscal year.

2. The [agricultural products utilization commission] shall determine the amount of production incentives to which a plant is entitled under this section by multiplying the number of gallons of ethanol produced by the plant and marketed to a distributor or wholesaler by [forty cents]. The [commission] shall forward the production incentives to the plant upon receipt of an affidavit by the plant indicating that the ethanol is to be sold at retail to consumers. The affidavit must be accompanied by an affidavit from a wholesaler or retailer indicating that the ethanol is to be sold at retail to consumers. Within [ninety days] after the conclusion of the plant's fiscal year, the plant shall submit to the [budget section of the legislative council] a statement by a certified public accountant indicating whether the plant produced a profit from its operation in the preceding fiscal year, after deducting the payments received under this section.

Section 7. [Distribution of Registration Fees Collected.] Any money in the [Registration Fund] accruing from license fees or from other like sources, in excess of the amount required to pay salaries and other necessary expenses, in accordance with the [legislature’s] appropriation for such purposes, must be promptly deposited in the [Highway Tax Distribution Fund] which must be distributed in the manner as prescribed by law. The [state treasurer] shall transfer annually from the [Highway Tax Distribution Fund] to the [Ethanol Production Incentive Fund] an amount equal to [forty percent] of all sums collected for the registration of farm vehicles

38

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38

under [insert citation] that no transfer may be made in an amount that would result in the balance of the [Ethanol Production Incentive Fund] exceeding [five million dollars].

Section 8. [Refund of Tax for Fuel Used for Agricultural Purposes - Reductions.] Any consumer who buys or uses any motor vehicle fuel for an agricultural purpose on which the motor vehicle fuel tax has been paid may file a claim with the [commissioner] for a refund under [insert citation]. The amount of the tax refund under this section must be reduced by [seven cents] per gallon [3.79 liters] except for those fuels used in aircraft or with respect to refunds claimed by aircraft fuel users. [One cent] per gallon [3.79 liters] withheld from the refund must be deposited in the [Ethanol Production Incentive Fund].




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1378137913801381138213831384138513861387138813891390139113921393

39

Disposition:







40

13941395139613971398139914001401140214031404140514061407140814091410141114121413

40

Hydrogen Research and Development (2002 SSL)This Act establishes a program to promote hydrogen as an energy resource.

Submitted as:HawaiiSB 1435 SD 1Status: Enacted into law as Act 283 in 2001.



Section 1. [Short Title.] This Act may be cited as “An Act to Establish a Private-Public Partnership to Promote and Support Hydrogen as an Energy Resource.”

Section 2. [Legislative Findings.] Scientists have recognized hydrogen as a potential source of fuel for many years. Currently, hydrogen is used in industrial processes, rocket fuel, and spacecraft propulsion. With further research and development, hydrogen could competitively serve as an alternative source of energy for fueling vehicles and generating electricity.

Recognizing the potential of hydrogen fuel, the United States Department of Energy and the private sector have for several years funded hydrogen research and development programs. The federal government alone allocates an average of $18,000,000 annually for hydrogen research and development. Currently, the market capitalization of fuel cell companies that rely on hydrogen as its fuel source is in excess of $10,000,000,000.

The [Legislature] finds that this state represents an excellent site to attract government and industry investment in hydrogen. Major advantages include:

(1) The availability of indigenous renewable resources, including geothermal energy;

(2) The excellent research capabilities at the [state university]; (3) This state’s location for trade opportunities; (4) This state’s high transportation fuel costs; and (5) Significant progress in hydrogen research and development in this state.

In addition, the [Legislature] recognizes that large-scale hydrogen use for transportation can be competitive this decade that fleet and military transportation have the largest potential for hydrogen and fuel cell use.

On the national level, advancements are taking place to develop technologies that will utilize hydrogen as a fuel source. Major companies are investing in the development of fuel cells for both stationary and mobile power. Automakers are projecting the commercial availability of fuel cell powered vehicles that could be fueled by hydrogen within this decade. Significant amounts of investments are being made to develop fuel cells and other distributed generation technologies.

With its traditional high fuel costs and a wealth of renewable energy resources, this state could attract these advanced technology development companies for research and development, testing, and deployment. These factors can lead to the development of a hydrogen-based economy where this state produces more of its own environmentally clean fuels, thus reducing its

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41

dependence on fossil fuels, and resulting in job growth, reduced pollution, and a more robust state economy.

Therefore, the [Legislature] finds that the state should do more to continue efforts to enhance hydrogen use in it.

Section 3. [Hydrogen Public/Private Partnership: Establishment](a) There is established within the [department of business, economic development, and

tourism], for administrative purposes only, the Hydrogen Public/Private Partnership to support and promote hydrogen use in this state. The [state university] shall provide assistance to the [department].

(b) The [department] shall invite the participation of, and representatives from, the following entities to the partnership:

(1) The state, including the [state university] and any of its entities, as appropriate;(2) The counties;(3) The federal government, including the military;(4) The utilities;(5) The private sector; and (6) The environmental community.

(c) The [department], with the assistance of the Partnership, shall:(1) Sponsor a stakeholder workshop with interested parties to review and critique the

state’s hydrogen plan;(2) Evaluate and adopt policy options to promote industry investment in hydrogen

infrastructure;(3) Initiate pilot projects to install multi-megawatt electrolyzers to produce hydrogen from

indigenous resources in the state; (4) Conduct a comprehensive evaluation and market study for the production of

hydrogen;(5) Conduct engineering assessments of biomass or wind energy pathways for

hydrogen; (6) Initiate pilot projects that include distribution of hydrogen produced in the

state;(7) Initiate discussion of tax incentives for investors; and(8) Conduct assessments of potential cost benefits to consumers and recommend ways to

educate consumers about the benefits of hydrogen fuel.(d) The [department] shall submit annual reports regarding the partnership to the

[Legislature] no later than [twenty (20)] days prior to the convening of each regular session. The reports shall include summaries of accomplishments, including expenditures, research projects funded, and external funding received.

Section 4. [Appropriations.] There is appropriated out of the general revenues of this state the sum of [insert amount] or so much thereof as may be necessary for fiscal year [insert date] to support hydrogen research and development efforts; provided that funds shall be made available under this Act on the basis of [one (1)] dollar of general revenues for every [insert amount] dollars from the federal government or the private sector. The sum appropriated shall be expended by the [department of business, economic development, and tourism] for the purposes of this Act.

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Disposition:







43

1507150815091510151115121513151415151516151715181519152015211522152315241525152615271528152915301531

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ENERGY SUPPLY/GENERATIONPast Suggested State Legislation Docket Items

03-28B-01 Alternative Fuel Sales NY

This Act authorizes motor fuel franchise dealers to obtain alternative fuels from a supplier other than a franchise distributor.

Submitted as:New YorkA11868 (became Chapter 410 of 2006)Status: Enacted into law in 2006.

Comment:

FOR IMMEDIATE RELEASE:July 31, 2006 GOVERNOR SIGNS LEGISLATION TO PROHIBIT “EXCLUSIVITY” FUEL CONTRACTS THAT PREVENT SERVICE STATIONS FROM SELLING RENEWABLE FUELS

New Law Will Help Make E85, Biodiesel and Other Alternative Fuels Accessible to Motorists

Governor George E. Pataki today announced he has signed legislation that will prohibit the use of “exclusivity” contracts between fuel distributors and gas stations that have limited the availability of renewable fuels for consumer use in their vehicles.

The new law will exempt renewable fuels from the provisions of any future motor fuel franchise agreements between fuel providers and retail service stations. Under these agreements, service stations are not allowed to purchase or sell fuels from a source other than the main distributor. Since most major petroleum fuel distributors do not offer E85 or other renewable fuels in New York State, many service stations are contractually prohibited from offering renewable fuels to their customers. With the Governor’s signing of this bill into law, future contracts cannot prohibit or discourage a service station from selling alternative fuels.

“Renewable fuels provide an opportunity for us to significantly reduce our dependence on imported petroleum, and this new law will help to increase the use of renewables by allowing service stations to sell these clean, homegrown fuels,” Governor Pataki said. “The ‘exclusivity’ agreements serve no purpose other than protecting the interests of fuel providers at the expense of motorists who want to use E85, biodiesel or other renewable fuels. This year, we have taken significant steps to increase the production and use of alternative fuels, and I am pleased to sign this bill to provide a viable alternative to high-priced gasoline.”

Senator Charles Fuschillo, who sponsored the bill in the Senate, said, “Use of renewable fuels should be encouraged to promote cleaner energy and reduce our dependency on foreign oil. Thanks to this new law, all service stations across the state will be able to purchase and sell these environmentally friendly fuels. I applaud Governor Pataki for enacting this important measure, which will go a long way towards increasing the use of clean, renewable fuel sources.”

Assemblyman Robin Schimminger, the bill’s Assembly sponsor said, “With the increase in gas prices over the last year, many consumers are increasingly looking for less costly and more

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http://ssl.csg.org/dockets/28cycle/28ES/0328b01ny.pdf

environmentally sound ways to fuel their vehicles. This new law will allow retail service stations to have more flexibility in obtaining alternative fuels, providing motorists with a greater array of choices at the pump.”

Assembly Republican Leader James Tedisco said, “I am proud to stand here today with Governor Pataki as New York takes another step toward providing alternative fuels to motorists. Alternative Fuels are vital to our nation’s goal of eliminating our dependence on foreign oil. This legislation will also make it more feasible for people to purchase cars that run on alternative fuels. I applaud the Governor for this great effort to help motorists save money, improve our economy, strengthen our environment and bolster national security.”

The new law applies to E85 (85 percent ethanol, 15 percent gasoline), biodiesel fuel, hydrogen, and compressed natural gas (CNG). Distributors who violate the law by entering into “exclusivity” contracts will be subject to a penalty of $1,000. If the distributor does offer renewable fuels, they are allowed, under franchise agreements, to require the stations to use their brands. The law takes effect immediately and applies to all subsequent franchise agreements.

Peter R. Smith, president and CEO of the New York Energy Research and Development Authority (NYSERDA), said, “Making more alternative fuel options available to consumers help drive our transportation sector toward clean, renewable sources of fuel. New York continues to lead the way in developing and deploying cleaner alternative fuels while working to lessen our dependence on imported petroleum. Governor Pataki's new legislation will greatly increase the options for consumers to make energy and environmentally smart decisions for their transportation needs.”

State Agriculture Commissioner Patrick H. Brennan said, “For the sake of our economy, environment and national security, a domestic renewable fuels industry is a must, and our farmers have the capacity and know how to grow crops for making New York a leader. By prohibiting contracts that exclude or limit the sales of renewable fuels, Governor Pataki is making sure that consumers have the option to get what they want – local, homegrown fuels.”

There are an estimated 200,000 flex fuel vehicles registered in New York State, and automakers have announced their intentions to dramatically increase their production of these vehicles, which can run on E85 or gasoline. However, at the present time there are only a few services stations in the State where drivers can purchase renewable fuels. By prohibiting “exclusivity” contracts, the State will eliminate a barrier to renewable fuel access. The New York State Thruway Authority has announced plans, first proposed by Governor Pataki, to install renewable fuel pumps at all 27 Thruway travel plazas. A groundbreaking for the first of these pumps was held on July 13, 2006, at the New Baltimore Plaza south of Albany. The pump is expected to be operational this fall.

In his State of the State Address, Governor Pataki proposed a broad-based energy independence plan to boost the production and use of renewable fuels, increase energy efficiency, and promote research and technology to help decrease our dependence on imported energy. Some of the initiatives proposed by the Governor and passed by the Legislature include:

the elimination of all State taxes on renewable vehicle fuels; a $10 million grant program to assist private sector gas companies install

renewable fuel pumps; a renewable fuel production tax credit; $20 million for the development of a pilot cellulosic ethanol plant; $5 million to develop hydrogen fueling stations across the State;

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a $5 million competitive grant program for start-up companies that are developing or deploying the next generation of vehicle batteries, propulsions systems, and lightweight vehicle parts and components; and

the expansion of the State’s Empire Zones program to provide tax breaks to clean energy enterprises regardless of where they are located in New York State.

Disposition:







46

1623162416251626162716281629163016311632163316341635163616371638163916401641164216431644164516461647

46

03-28B-02 Solar Energy Systems CA

California state law required the State Energy Resources Conservation and Development Commission (Energy Commission) to expand and accelerate development of alternative sources of energy, including solar resources. Existing law required the Energy Commission to develop and adopt regulations governing solar devices, as defined, designed to encourage the development and use of solar energy and to provide maximum information to the public concerning solar devices.

This Act requires beginning January 1, 2011, a seller of production homes, as defined, to offer the option of a solar energy system, as defined, to all customers negotiating to purchase a new production home constructed on land meeting certain criteria and to disclose certain information. The bill requires the Energy Commission to develop an offset program that allows a developer or seller of production homes to forgo the offer requirement on a project by installing solar energy systems generating specified amounts of electricity on other projects. The bill requires, not later than July 1, 2007, the Energy Commission to initiate a public proceeding to study and make findings whether, and under what conditions, solar energy systems should be required on new residential and nonresidential buildings and to periodically update the study thereafter.

Under existing law, the state Public Utilities Commission (PUC) had regulatory authority over public utilities, including electrical corporations. Existing law required the PUC, on or before March 7, 2001, and in consultation with an Independent System Operator, to take certain actions, including, in consultation with the Energy Commission, adopting energy conservation demand-side management and other initiatives in order to reduce demand for electricity and reduce load during peak demand periods, including differential incentives for renewable or super clean distributed generation resources. Pursuant to this requirement, the PUC has developed a self-generation incentive program to encourage customers of electrical corporations to install distributed generation that operates on renewable fuel or contributes to system reliability. Existing law required the PUC, in consultation with the Energy Commission, to administer, until January 1, 2008, a self-generation incentive program for distributed generation resources in the same form that existed on January 1, 2004, subject to certain air emissions and efficiency standards.

In a PUC decision, the PUC adopted the California Solar Initiative, which modified the self-generation incentive program for distributed generation resources and provides incentives to customer-side photovoltaics and solar thermal electric projects under one megawatt. This bill requires the PUC, in implementing the California Solar Initiative, to authorize the award of monetary incentives for up to the first megawatt of alternating current generated by an eligible solar energy system that meets the eligibility criteria established by the Energy Commission. Thebill authorizes the commission, prior to the establishment of eligibility criteria by the Energy Commission, to determine the eligibility of a solar energy system, as defined, to receive monetary incentives. The bill requires that awards of monetary incentives decline at a rate of an average of at least 7% for each year following implementation, and be zero by December 31, 2016.

This Act requires the PUC, by January 1, 2008, to adopt a performance-based incentive program, as specified. The bill requires that the PUC, by January 1, 2008, and in consultation with the Energy Commission, require reasonable and cost-effective energy efficiency improvements in existing buildings as a condition of providing incentives for eligible solar energy systems. The bill requires the commission to require time-variant pricing for all ratepayers with a solar energy system. The bill prohibits costs of the program from being recovered from certain

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customers and would require the commission to ensure that the total cost over the duration of the program does not exceed $3,350,800,000, consisting of 3 specified program components.

This legislation authorizes the PUC to award monetary incentives for solar thermal and solar water heating devices, in a total amount up to $100,800,000. The bill would prohibit the PUC from allocating more than $50,000,000 for certain research, development, and demonstration. The bill requires that by June 30, 2009, and by June 30 of every year thereafter, the PUC submit to the Legislature an assessment of the success of the California Solar Initiative program, that includes specified information.

This Act requires the Energy Commission, by January 1, 2008, and in consultation with the PUC, local publicly owned electric utilities, and interested members of the public, to establish and thereafter revise eligibility criteria for solar energy systems and to establish conditions for ratepayer funded incentives that are applicable to the California Solar Initiative.

The bill requires the Energy Commission to adopt guidelines for solar energy systems receiving ratepayer funded incentives at a publicly noticed meeting. The bill, upon establishment of eligibility criteria by the Energy Commission, prohibits ratepayer funded incentives from being made for a solar energy system that does not meet the eligibility criteria. The bill requires the Energy Commission to make certain information available to the public, to provide assistance tobuilders and contractors, and to conduct random audits of solar energy systems to evaluate their operational performance.

This Act requires all local publicly owned electric utilities that sell electricity at retail, on or before January 1, 2008, to adopt, implement, and finance a solar initiative program, as prescribed, for the purpose of investing in, and encouraging the increased installation of, residential and commercial solar energy systems. The bill requires a local publicly owned electric utility to make certain program information available to its customers, to the Legislature, and to the Energy Commission on an annual basis beginning June 1, 2008.

Existing law required electric service providers to develop a standard contract or tariff providing for net energy metering, and to make this contract available to eligible customer generators, upon request. Existing law required all electric service providers, upon request, to make available to eligible customer generators contracts for net energy metering on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer generators exceeds 0.5% of the electric service provider’s aggregate customer peak demand.

This requires the PUC to order electric service providers to expand the availability of net energy metering so that it is offered on a first-come-first-served basis until the time that the total rated generating capacity used by all eligible customer-generators exceeds 2.5% of the electric service provider’s aggregate customer peak demand. The bill requires the PUC, by January 1, 2010, in consultation with the Energy Commission, to submit a report to the Governor and Legislature on the costs and benefits of net energy metering, wind energy co-metering, and co-energy metering to participating customers and nonparticipating customers and with options to replace the economic costs of different forms of net metering with a mechanism that more equitably balances the interests of participating and nonparticipating customers.

Existing law, the Contractors’ State License Law, provided for the licensure and regulation of contractors by the Contractors’ State License Board. This Act requires the board to review and, if needed, revise its licensing classifications and examinations to ensure that contractors authorized to perform work on solar energy systems have the requisite qualifications to perform the work.

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Submitted as:CaliforniaChapter 132 of 2006Status: Enacted into law in 2006.

Comment:

Office of the Governor08/21/2006 GAAS:549:06 FOR IMMEDIATE RELEASESchwarzenegger Signs Legislation to Complete Million Solar Roofs Plan

Concluding a two-year effort to help make California the nation’s leader in solar energy, Gov. Schwarzenegger signed SB 1 by Senator Kevin Murray (D-Los Angeles), putting the finishing touches on the Governor’s Million Solar Roofs Plan.

“When I ran for governor, I vowed to make the environment the centerpiece of my administration and turn back the clock on pollution,” said Gov. Schwarzenegger. “My Million Solar Roofs Plan will provide 3,000 megawatts of additional clean energy and reduce the output of greenhouse gasses by 3 million tons which is like taking one million cars off the road. I want to thank Sen. Kevin Murray for his hard work in helping me make California the leader on solar power again.”

Last year, the Governor asked the California Public Utilities Commission (CPUC) to implement his Million Solar Roofs plan. Dubbed the California Solar Initiative by the CPUC, the plan will lead to one million solar roofs in California by 2018.

Specifically, SB 1 implements the portions of the Million Solar Roofs plan that the CPUC does not have the authority to mandate, including:

· Expanding the Program: The current implementation of the Million Solar Roofs plan only applies to customers of Pacific Gas and Electric, Southern California Edison and San Diego Gas and Electric. SB 1 expands the program to customers of the municipal-owned utilities such as SMUD and LADWP.

· Crediting Consumers for Excess Power Produced: Consumers who install solar panels on their homes and businesses can sell excess energy back to power companies for credit on their monthly bills. This credit is a key incentive for consumers to install solar panels. Currently, the cap on the number of customers who can use this option is .5 percent. SB 1 raises this to 2.5 percent. Raising the ceiling will provide part of the needed financial incentive to bring more solar power on to the grid.

· Making Solar Power a Standard Item on New Homes: SB 1 would require a developer of more than 50 new single family homes offer the option of a solar energy system to all customers beginning January 1, 2011. One million solar roofs will greatly increase the state’s rooftop solar energy capacity, providing the output equivalent of five modern electric power plants. This program’s 3,000 megawatt goal, taken together with other aggressive solar initiatives such as

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requiring utilities to acquire 20 percent of the power used within the state from renewable sources, will make California once again a world leader in solar power.

Since taking office, the Governor has made it a priority to develop a self-sustaining solar industry for California. In 2004, he introduced the Million Solar Roofs Initiative, which included $2.9 billion in incentives to homeowners and building owners who install solar electric systems.

Disposition:







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03-28B-03 State Energy Plan VA

This Act establishes an energy policy for the state Commonwealth and directs the Division of Energy of the Department of Mines, Minerals and Energy, in consultation with the State Corporation Commission, Department of Environmental Quality, and Virginia Center for Coal and Energy Research, to prepare, by July 1, 2007, a ten-year comprehensive Virginia Energy Plan to implement the Commonwealth's energy policy. As part of the Energy Plan, the Division of Energy and other agencies shall develop a system for measuring the extent to which parcels are suitable for the siting of wind or solar energy facilities. After July 1, 2007, upon receipt of a recommendation from the Department of General Services, a local governing body, or a parcel's owner that a parcel is a potentially suitable location for such an energy facility, the Division shall analyze the parcel's suitability.

The measure also provides that it is the Commonwealth's policy to support federal efforts to determine the extent of natural gas resources 50 miles or more offshore and to support the inclusion of the Atlantic Planning Areas in the federal Mineral Management Service's draft environmental impact statement for natural gas exploration 50 miles or more off the Atlantic shoreline. It is declared to be the policy of the Commonwealth to support federal efforts to examine the feasibility of off-shore wind energy being utilized in an environmentally responsible fashion.

Other elements of the bill: require Dominion Virginia Power to apply for annual fuel factor adjustments to its

electricity rates commencing July 1, 2007, and allow the SCC to require that 40% of any increase in fuel tariffs for the year 2007-2008 be deferred and recovered during the period from July 1, 2008, through December 31, 2010;

create a state personal income tax deduction for 20% of the sales tax paid on certain energy efficient equipment or appliances, up to $500 per year;

require state agencies to ensure that the design and construction of state-owned buildings comply with energy standards to be established by Department of General Services;

establish a Clean Coal Technology Research Fund, to be administered by the Virginia Center for Coal and Energy Research and used to finance research initiatives at state institutions of higher education and to encourage qualified state educational institutions to apply for federal grants to finance a center of excellence for advancing new clean coal technologies;

direct the Commonwealth Transportation Board to encourage the use of biodiesel and other alternative fuels, to the extent practicable, in vehicles used to provide public transportation;

create the Virginia Coastal Energy Research Consortium, to include Old Dominion University, the Virginia Institute of Marine Science, the Virginia Tech Advanced Research Institute, James Madison University, and Norfolk State University, to serve as an interdisciplinary study, research, and information resource on coastal energy issues;

prohibit community associations from enacting any provisions restricting solar power or the use of solar energy collection devices on units or lots that are part of the development, except to the extent provided in the applicable instruments, declaration or rules, and authorizes community associations to prohibit or restrict the installation and use of such solar energy collection devices on the common elements or common areas;

state that it is the policy of the Commonwealth to support federal action that provides for increasing the Corporate Average Fuel Efficiency standards;

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establish a program of grants of 0.85 cents for each kilowatt hour of electricity produced by a corporation from certain renewable energy resources;

establish a program of grants for 15% of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators, up to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators;

exempt from property taxation any certified pollution control equipment and facilities used in collecting, processing, and distributing landfill gas and other gas recovered from waste products; require the State Corporation Commission and Secretary of Natural Resources to develop, by December 1, 2006, a proposal for a coordinated review of permits for any energy project that requires an environmental permit and a certificate of public convenience and necessity; and

sunset the provisions of the bill that establish the clean coal technology research fund, Coastal Energy Research Consortium, Renewable Electricity Production Grant Program, and Photovoltaic, Solar, and Wind Energy Utilization Grant Program if they are not funded by July 1, 2009.

Submitted as:VirginiaChapter 939 of 2006Status: Enacted into law in 2006.

Disposition:







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03-28B-04 Renewable Fuels Production Accountability LA

This Act provides that beginning on July 1, 2006, there shall be a presumption that renewable fuel plants which operate in the state and which derive ethanol from the distillation of corn shall use as feedstock at least 20% of the corn crop harvested in the state. It requires that the minimum percentage in succeeding years be at least the same as the percentage of corn used nationally to produce renewable fuels as reported by the USDA’s Office of the Chief Economist. Beginning on July 1, 2006, there shall be a presumption that renewable fuel plants operating in the state which derive biodiesel from soybeans and other crops shall use as feedstock at least 2.5% of the soybean crop harvested in the state. It requires that the minimum percentage of harvested soybeans presumptively used to produce renewable fuel in facilities in the state be the same percentage of soybeans used nationally to produce renewable fuel as reported by the USDA's Office of the Chief Economist. As to additional crops used in production of renewable fuels at facilities in the state, there is a presumption that such plants will use crops harvested in the state in a percentage rate at least equal to the percentage of the crop's usage nationally in the production of renewable fuels as reported by the USDA's Office of the Chief Economist.

Submitted as:LouisianaAct 656 of 2006Status: Enacted into law in 2006.

Disposition:







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03-28B-05 Governmental Aggregation of Retail Electric Loads OH

This Act requires that any governmental aggregation of the retail electric loads of mercantile commercial customers be done on an opt-in (prior, affirmative individual consent) basis and prohibits a governmental aggregation from including such mercantile loads in an automatic, opt-out aggregation.

It prohibits governmental aggregators from including in any retail electric aggregation the accounts of customers who have opted out of the aggregation, buy electricity from another competitive supplier, have a special contract with an electric distribution utility, are not located within the governmental boundaries, or appear on the Do Not Aggregate List authorized under the Act.

The Act requires the state Public Utilities Commission (PUCO) to establish and maintain a Do Not Aggregate List relating to governmental, retail electric aggregation.

Submitted as:OhioAm. H. B. No. 85Status: Enacted into law in 2006.

Disposition:







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03-28A-01A Biofuels IA

According to an Iowa Legislative Fiscal Note:

This Act creates three income tax credits related to renewable fuels, sunsets an existing ethanol income tax credit, and provides for a renewable fuel infrastructure grant program. The bill also establishes renewable fuel percentage thresholds and provides for a contingent gas tax schedule in instances where the threshold is not achieved.

The Act: Establishes an income tax credit of five cents per gallon for each retail gallon of

ethanol sold in the state from January 1, 2006, through December 31, 2025. From 2006 though 2010, the credit is available for each gallon. From 2011 through 2025, the credit is available for an amount less than the full gallons sold. For this credit, the term “ethanol” refers to the gallons of pure ethanol sold as components of any blend of gasoline.

Establishes an income tax credit for each gallon of E85 (a combination of petroleum gasoline and ethanol, where the ethanol percentage is between 70.0% and 85.0% of the combined product). The credit is equal to twenty-five cents per gallon beginning calendar year 2006, and declines to zero by calendar year 2020.

Establishes an income tax credit of three cents per gallon for retail biodiesel fuel sold in the state from January 1, 2006, through December 31, 2012. To qualify for the credit, a retailer’s diesel sales for the tax year must be at least 50.0% biodiesel. If the 50.0% threshold is achieved, the retailer earns a tax credit of three cents per gallon for all gallons of biodiesel sold that tax year.

This bill sunsets a 2.5 cents per gallon income tax credit for ethanol gallons sold in excess of 60.0% through an individual retail location.

The intent of the ethanol tax and infrastructure incentives in this bill is to increase the gallons of ethanol consumed in gasoline. If E10 and E85 fuels deliver lower gas mileage than unblended gasoline, moving to a larger percentage of those fuels will increase the total number of gasoline gallons consumed. Since the gas tax is collected on a per-gallon basis, increasing the number of gallons will increase the yield of the gas tax, as long as the per-gallon tax rate is the same for E85, E10, and unblended gasoline.

The Act creates a Renewable Fuels Infrastructure Fund to provide financial assistance to people installing E85 and biodiesel dispensing equipment. For retail locations, the assistance shall be in the form of a grant equal to not more than 30.0% of the installation cost or $30,000, whichever is lower. For biodiesel terminal facilities, the assistance is in the form of a cost share grant that shall not exceed the cost of the improvements.

Iowa legislative staff reports the bill assumes the following: Gasoline sales will increase 1.0% per year through calendar year (CY) 2025. Over the course of a year, E85 will average 79.0% ethanol content. The supply of vehicles able to operate on E85 gasoline (flex-fuel vehicles) will

meet or exceed the available E85 fuel supply. The average gas mileage achieved with E10 is 2.35% lower than unblended

gasoline and the gas mileage achieved with E85 is 20.0% lower (a vehicle achieving 25.0 mpg on unblended will achieve 24.41 mpg on E10 and 20.00 mpg on E85).

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The infrastructure and per-gallon tax incentives for ethanol sales will create sufficient retail incentive and consumer demand for E10 and E85 and the statewide total ethanol gallon percents will just equal the thresholds (key determination periods) as specified in the Bill.

Tax credits from sales for a calendar year are assumed to be redeemed in the next fiscal year (CY 2006 credits are redeemed FY 2007).

Diesel sales will increase at an average annual rate of 3.75%. The miles per gallon achieved with diesel and B02 biodiesel are similar. The infrastructure incentives in the Bill will be utilized and several terminals will

be upgraded over the three years. Significant investment in retail facility upgrades is not necessary for biodiesel. At all price levels of biodiesel and diesel, the 3.0 cent per-gallon tax credit will

produce B02 biodiesel prices lower than the comparable pure diesel price. Tax credits from sales for a calendar year are assumed to be redeemed in the next

fiscal year (CY 2006 credits are redeemed FY 2007). According to Iowa legislative staff, the creation of three new renewable fuel income tax

credits, along with the sunset of the current ethanol credit, is projected to reduce retailer’s net income tax liability each year through FY 2018. The projections, by tax credit and by year, are provided in Table 1. The credits will also reduce local option income taxes owed by individuals subject to the tax to the extent that the retailers are limited liability companies (LLC) or other business forms where the profits are taxed through the owner’s individual income tax return. The impact on local option income tax for schools cannot be determined, but will be minimal in FY 2007 and FY 2008.

Submitted as:IowaHF 2754Status: Enacted into law in 2006.

Comment:

Governor Vilsack Signs Renewable Fuels Legislation Iowa set to lead the nation in production of renewable fuels

In a ceremony on the west steps of the state capitol, Governor Tom Vilsack signed several pieces of legislation designed to grow Iowa's renewable energy and bio-energy industries. Included in the legislation were bills designed to promote wind, solar, and new uses for soy-based products.

“In January, I asked legislators to make a long-term commitment to my vision of making Iowa the nation’s leader in renewable fuels production,” said Vilsack. “This legislation will help propel our nation into an era of clean energy and renewable fuel use that eases our dependence on foreign oil," Vilsack said. “With our continuing progress, Iowa is set to become the leader in research, development, and distribution of all forms of renewable energy.”

Currently, Iowa has twenty-five refineries with the capacity to produce over 1.5 billion gallons annually. There are four ethanol refineries and two major expansions under construction with a combined annual capacity of 425 million gallons. In addition, Iowa has six biodiesel

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refineries with a combined annual capacity of more than 100 million gallons either in operation or under construction.

03-28A-01B Alternative Fuels WA

This Act prescribes minimum renewable fuel content requirements and fuel quality standards in an alternative fuels market. The bill finds that it is in the public interest to establish a market for alternative fuels in the state and declares an intent for consumers to have a choice of fuels and to encourage and promote the development, availability, and use of a diversity of renewable fuels and fuel blends ranging from fuels composed of no renewable content to completely renewable fuels.

Submitted as:WashingtonChapter 338, Laws of 2006Status: Enacted into law in 2006.

Comment:

Office of Governor Christine GregoireFOR IMMEDIATE RELEASE - March 30, 2006Contact: Governor's Office, 360-902-4111

Governor Gregoire Signs Bill Making Washington First in Nation to Require Alternative FuelsMeasure sets requirement that two percent of diesel and gasoline sold in Washington be comprised of alternative fuels

Governor Chris Gregoire today in Moses Lake signed into law a measure she requested that will require fuel suppliers to ensure that two percent of the diesel and two percent of the gasoline they provide for sale is biodiesel and ethanol, beginning in December 2008 (SB 6508).

“We are moving Washington forward as a leader of a dynamic, 21st century industry,” said Governor Gregoire. “Alternative fuels will help bridge the rural and urban divide in Washington: we can grow these crops in eastern Washington, crush the seeds in places like Moses Lake and ship them across the Cascades for use in busses in Seattle, Tacoma and Olympia.”

Biodiesel and ethanol will also lead to cleaner air - they reduce emissions and do not contribute to climate change.

Washington spends $25 million a day on oil, much of it imported from foreign countries. The bill ensures that the state will lead the way toward energy independence by requiring 20 percent of the state's diesel needs to be met with biodiesel by 2009.

For information on all bill action, please visit Governor Gregoire's website or the Washington Legislature website.

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03-28A-01C Ethanol LA

This Act: Establishes minimum ethanol and bio-diesel content standards for gasoline and

diesel. Provides that the establishment of specifications for use of renewable fuels in

Louisiana is a matter of public policy. Provides that within six months after monthly production of denatured ethanol

produced in the state equals or exceeds an annualized production volume of 50 million gallons, 2% of the total gasoline sold by volume in the state shall be either denatured ethanol or an alternate renewable fuel.

Provides that within six months after monthly production of bio-diesel produced in the state equals or exceeds an annualized production volume of 10 million gallons, 2% of the total diesel sold by volume in the state shall be either bio-diesel or an alternate renewable fuel.

Provides that within six months after monthly state production of an alternate renewable fuel capable of substituting for ethanol and bio-diesel equals or exceeds an annualized production volume of 20 million gallons, 2% of the total motor fuel sold by volume in the state shall be the alternate renewable fuel produced from domestically grown feedstock.

Provides that blenders and retailers have six months to meet the minimum content requirements and that that the state Commission on Weights and Measures may waive or extend the six-month time period upon a finding that the quality or supply of bio-diesel or ethanol is insufficient to allow blenders or retailers to meet the minimum content requirements.

Exempts aviation fuels from the minimum ethanol and bio-diesel requirements. Provides that retailers shall not be required to purchase or sell ethanol or bio-

diesel. Provides that fuels containing ethanol or bio-diesel shall not be required to be sold

in ozone nonattainment areas. Provides that the commissioner shall adopt rules and regulations requiring

incentives to compensate for any costs associated with achieving the minimum ethanol and biodiesel standards.

Submitted as:Louisiana Act 313 of 2006Status: Enacted into law in 2006.

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Disposition: 03-28A01A







Disposition: 03-28A-01B





( ) Include in Volume( ) RejectComments/Note to staff:

Disposition: 03-28A-01C






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03-28A-02 Alternative Fuel Tax Credit NY

This Act establishes an “Alternative Fuel Incentive Fund.” This fund would promote the research, development and usage of alternative energy fuels. Under the Act, state sales tax derived from the portion of the price of motor and diesel motor fuel between $1 and $2 per gallon would be deposited into this new, dedicated fund.

The Act provides a $500 credit against personal income tax and corporate franchise tax toward the purchase of a hybrid or fuel flexible vehicle. It also establish a credit for up to 30 percent of the costs for installing or converting a refueling facility to sell alternative fuels.

Submitted as:New York A11062 Status: Enacted into law in 2006.

Disposition:







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HB 299 Transporting Fuels (docket 28A) KY

This Act: directs the state Office of Energy Policy to develop a strategy for production of

transportation fuels from fossil energy resources and biomass, plus encouragement of renewable energy sources; directs the Office of Energy Policy to report findings and recommendations to the Governor and General Assembly; and

directs the state Finance and Administration Cabinet to require bidders for government construction contracts to include consideration of energy efficient HVAC systems, including geothermal; name these provisions the Kentucky Energy Security National Leadership Act.

Submitted as:KentuckyHB 299 (Enrolled version)Status: Enacted into law in 2006.

Disposition:







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03-27B-02 Biobased Products AR

This Act directs state agencies to give preferences toward buying biobased products. The Act directs the state purchasing agency to develop guidelines for agencies to use to buy such products.

Submitted as:ArkansasAct 542 of 2005Status: Enacted into law in 2005.

Disposition:







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03-27B-04 Sustainably Priced Energy Enterprise Development VT

This Act establishes requirements of the state's retail electricity providers with respect to the use of new renewable energy sources. In particular, it requires that each retail electricity provider supply an amount of energy equal to its total incremental energy growth between January 1, 2005 and January 1, 2012 through the use of electricity generated by new renewable resources. (Note that since the focus is on growth of demand, incentives for conservation are implicitly encouraged and are of equal value.) It provides that the retail electricity provider may meet this requirement through eligible new renewable energy credits, new renewable energy resources with renewable energy credits still attached, or a combination of those credits and resources. New renewable energy is defined to include increases in efficiency or output from existing sources, provided that in the case of combustion, the system must result in an incrementally higher level of energy conversion efficiency or significantly reduced emissions.

This Act also provides a number of conditions on the imposition of the requirement: No retail electricity provider shall be required to provide in excess of a total of 10

percent of its calendar year 2005 retail electric sales with electricity generated by new renewable resources;

A retail provider may obtain an exemption from the requirement if the retail electricity provider demonstrates and the public service board determines that compliance with the standard would impair the provider's ability to meet the public's need for energy services after safety concerns are addressed, at the lowest present value life cycle cost, including environmental and economic costs;

In lieu of or in addition to purchasing tradeable renewable energy credits to satisfy the portfolio requirements, a retail electricity provider in this state may pay to a renewable energy fund established by the public service board an amount per kilowatt hour as established by the board, or the board may require any proportion of this amount to be paid to the Energy Conservation Fund; and

In the case of members of the Vermont Public Power Supply Authority, portfolio requirements may be met in the aggregate.

The Act requires the state public service board to issue progress reports to the general assembly, with respect to the state’s load growth, the use of renewable energy credits, the implementation of the Sustainably Priced Energy Enterprise Development (SPEED) program, an assessment of the supply portfolios of the state retail electricity providers and the resources available to meet new supply requirements likely to be triggered by the expiration of major power supply contracts, and other specified matters.

This Act also creates the SPEED program. The SPEED program is to encourage the in-state development of renewable sources of electricity, which are referred to as "qualifying SPEED resources" as well as the development of certain combined heat and power facilities that may consume nonrenewable sources of fuel, as long as the system meets specified requirements, which include a requirement that the system as a whole have total system efficiency of at least 65 percent.

Under the SPEED program, the public service board may: Designate an agent to purchase and resell electricity generated by the project; Allow the developer of a SPEED resource that is one megawatt or less to sell that

power under a long term contract that is established at a specified margin below the hourly spot market price;

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Encourage retail electricity providers to secure long-term contracts for renewable energy that are anticipated to be below the long-term market price, over the lives of the projects;

Make available to retail electricity providers for purchase through the SPEED program, on a pro rata basis, a specified portion of the power generated under the program;

Create a mechanism by which a retail electricity provider may establish that it has a sufficient amount of renewable energy, or qualifying resources in its portfolio so that equity requires that the retail electricity provider be relieved from provisions that would require the purchase of SPEED power; and

Release an applicant from meeting a requirement in state law that there be established a need for the facility.

The Act provides that if the board finds that the amount of renewable energy SPEED resources coming into service after January 1, 2005, but prior to January 1, 2013, exceeds total statewide growth in demand during the period of time between January 1, 2005 and January 1, 2012, or if it finds that the amount of qualifying SPEED resources exceeds 10 percent of total statewide load for calendar year 2005, the portfolio standards established under this act shall not be in force. In this determination, electricity produced at all facilities owned by or under long-term contract to Vermont retail electricity providers, whether it is generated inside or outside Vermont, that is new renewable energy shall be counted. If by July 1, 2012, the board determines that the goals have not been met, the portfolio standards shall go into effect in one year. The act makes SPEED resources eligible for VEDA funding.

The Act requires the public service board to establish or adopt a system of tradeable renewable energy credits for renewable resources that may be earned by electric generation qualifying for the renewables portfolio standard. The Act allows the public service board and department to encourage certain efficient combined heat and power facilities, and to allow retail electricity companies credit for efforts taken to encourage efficient combined heat and power facilities, by the state's efficiency utility. The bills repeals a $17.5 million cap on the expenditures that may be made by the efficiency utility and provides that the amount of the charge shall be reviewed for unrealized energy efficiency potential and shall be adjusted as necessary in order to realize all reasonably available, cost-effective energy efficiency savings. It allows the board to exempt a customer from the charge during a particular year if the customer demonstrates that, during the preceding year, it implemented an extraordinary amount of cost-effective energy efficiency at the customer's own expense or incurred extraordinary costs on those measures and got no reimbursement for those measures. It requires the board to consider the retail rate impacts of the actions taken by the efficiency utility.

This legislation also requires that on or before September 1, 2006, the public service board shall establish by rule or order standard provisions, including applicable fees that are required to cover the total cost of interconnection to be paid by the qualified distributed generator, for agreements providing for interconnection between the facilities of a retail electricity provider under the jurisdiction of the board and the facilities of a qualified distributed generator.

This Act expresses state policy that is to be urged by the state before the New England Independent System Operator, and in proceedings before the Federal Energy Regulatory Commission, and before other tribunals. The policy would be that all available resources - transmission, strategic generation, targeted energy efficiency, and demand response resources - should be treated comparably in analysis, planning, and access to funding. The policy would provide that the principal criterion for approving and selecting a regional transmission solution should be whether it is the least-cost solution to a system need on a total cost basis.

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The bill establishes requirements with respect to transmission planning within the state, requiring VELCO and its co-owners to submit ten-year plans. The objective of the plans shall be to identify the potential need for transmission system improvements as early as possible, in order to allow sufficient time to plan and implement more cost-effective nontransmission alternatives to meet reliability needs, wherever feasible. It also would identify the demand or supply parameters that generation, demand response, energy efficiency, or other nontransmission strategies would need to address to resolve the reliability deficiencies identified. It establishes a public meeting process pursuant to which a utility preparing the plan would present a draft of the plan and facilitate a public discussion to identify and evaluate nontransmission alternatives. Before the department of public service takes a position before the board concerning the construction of new transmission or a transmission upgrade with significant land use ramifications, the department shall hold one or more public meetings with the legislative bodies or their designees of each town, village, or city that the transmission lines cross, and shall engage in a discussion with the members of those bodies or their designees and the interested public as to the department's role as public advocate.

This Act requires the department of public service on or before January 1, 2006 to investigate and report to specified legislative committees with respect to matters, including the extent to which an aggressive regionwide implementation of energy efficiency and renewable energy programs might affect the price of spot market power in the New England ISO through the effect of those programs on bid prices, where the clearing price of the electric market is reduced due to reduced electric demand.

The Act allows the public service board to embark on performance-based ratemaking on its own motion or on motion of the department of public service, and not only at the request of the utility. It makes it clear that these programs may offer incentives, decreasing the extent to which the financial success of distribution utilities between rate cases is linked to increased sales to end use customers and may be threatened by decreases in those sales.

The Act requires the department of public service to report back to the general assembly with recommendations regarding a statewide energy code for commercial buildings. The act requires the public service board to report to the legislature with an explanation of the results of any alternative form of regulation approved by the board, and if no such form has been approved, an explanation of why no such form has been approved. It requires biennial reports to the legislature from the board on how the state might best continue to meet its energy goals, including whether the state should meet its load growth over the succeeding 10 years, up through 2023, by a continuation of the SPEED program.

Under the Act, a person may become a member of a cooperative by purchasing and paying the cooperative for renewable energy certificates or other environmental attributes associated with the generation of electricity.

It requires the department of public service to report to the general assembly by January 15, 2006 with recommended procedures and efforts and initiatives to date concerning the involvement of the public in the development and siting of wind energy facilities. It requires the department of public service to study and make recommendations on the feasibility of establishing grant programs for new renewable generation systems on farms. And finally, it requires the public service board and the department of public service to report to the general assembly by no later than January 15, 2006 and again by no later than January 15, 2007 with respect to the net revenue loss and the net revenue gain to ratepayers, utilities, and state-based

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generators as a result of any tariff relating to locational generation capacity; and the options available to mitigate the cost impacts of any such tariff.

Submitted as:VermontAct 61 Status: Enacted into law in 2005.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0327b04vt.pdf

03-27A-01A Renewable Energy Industries – Tax Credits WA

This Act directs that any individual, business, or local governmental entity, not in the light and power business or in the gas distribution business, may apply to the light and power business serving the situs of the system, each fiscal year beginning on July 1, 2005, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system installed on its property that is not interconnected to the electric distribution system. No incentive may be paid for kilowatt-hours generated before July 1, 2005, or after June 30, 2014.

The Act specifies that when light and power businesses serving eighty percent of the total customer load in the state adopt uniform standards for interconnection to the electric distribution system, any individual, business, or local governmental entity, not in the light and power business or in the gas distribution business, may apply to the light and power business serving the situs of the system, each fiscal year, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system installed on its property that is not interconnected to the electric distribution system and from a customer-generated electricity renewable energy system installed on its property that is interconnected to the electric distribution system. Uniform standards for interconnection to the electric distribution system means those standards established by light and power businesses that have ninety percent of total requirements the same. No incentive may be paid for kilowatt-hours generated before July 1, 2005, or after June 30, 2014.

Submitted as:Washington Chapter 300, Laws of 2005Status: Enacted into law in 2005.

Comment:

CSG environmental policy staff report that this feed-in credit legislation is particularly relevant to the larger renewable energy effort in the U.S. because it reflects a new policy approach for the state-based promotion of clean energy.

Denis Hayes, founder of Earth Day, former director of the federal Solar Energy Research Institute and current President of the Bullitt Foundation, described SB 5101 "as the most important solar legislation ever introduced in any American state legislature."

Brief Description: Providing incentives to support renewable energy.

Sponsors: Senate Committee on Water, Energy & Environment (originally sponsored by Senators Poulsen, Morton, Fraser, Rockefeller, Pridemore, Regala, Hewitt, Kline, Kohl-Welles, Brown and Oke).

Senate Committee on Water, Energy & EnvironmentSenate Committee on Ways & MeansHouse Committee on Technology, Energy & CommunicationsHouse Committee on Finance

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http://ssl.csg.org/dockets/28cycle/28ES/0327a01awa.pdf

Background: A recent report by the Washington State University Energy Program recognized the solar

electric industry as one of the state's important growth industries. The businesses in this industry have been increasingly expanding and relocating their operation elsewhere. The report indicates that additional incentives for the solar electric industry are needed in recognition of the unique forces and issues involved in business decisions in this industry.

The public utility tax is the state's business tax on the gross receipts of public and privately-owned utilities. It has five different rates, depending on the specific utility activity. Proceeds from the public utility tax go primarily to the state general fund.

Utilities are required to allow customers to utilize net metering systems. Allowable systems include electrical production facilities that: (1) use solar, wind, or hydropower; (2) have a generating capacity of 25 kilowatts or less; (3) are located on the customer's premises; (4) operate in parallel with the electrical utility's distribution and transmission system; and (5) are intended primarily to offset part or all of the customer's electricity requirements. Such systems are required to include equipment that meets applicable safety, power quality, and interconnection requirements. The Utilities and Transportation Commission (for investor-owned utilities) or the governing body (for a consumer-owned utility) may adopt additional safety, power quality, and interconnection requirements.

Summary: Investment cost recovery incentives are authorized to support renewable energy projects.

Individuals, businesses, or local governments who generate electricity, on their own property, with an anaerobic digester or a wind or solar energy system may apply to their light and power business for the incentive payment.

The cost recovery incentive payment is available for systems that are not interconnected to the electric distribution system. Once uniform interconnection standards are adopted by light and power businesses serving 80 percent of the total customer load in the state, the cost recovery incentive payment is also available for systems that are interconnected. Uniform standards have 90 percent of total requirements the same.

The applicants must submit a request for a system certification to the Department of Revenue (DOR) and the Climate and Rural Energy Development Center at Washington State University. The DOR must advise the applicant whether their system qualifies for the incentive program. The DOR may consult with the climate center in making its decision on eligibility.

The incentive is calculated off a base rate of 15 cents for each kilowatt hour of energy produced. That rate is adjusted based on where the equipment or components were manufactured. The incentive rate is multiplied by the following factors:

1) for customer-generated electricity produced using solar modules manufactured in Washington State: two and four-tenths;

2) for customer-generated electricity produced using a solar or a wind generator equipped with an inverter manufactured in Washington State: one and two-tenths;

3) for customer-generated electricity produced by an anaerobic digester, other solar, or by using a wind generator equipped with blades manufactured in Washington State: one;

4) for all other customer-generated electricity produced wind: eight-tenths.The payments are capped at $2,000 per year for each individual, household, business, or

local government.

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Each light and power business is allowed a credit against its public utility tax for incentive payments paid to applicants. The credit is limited to one quarter of one percent of its taxable power sales, or $25,000, whichever is greater. If incentive requests exceed the amount of credit available, the power and light business must prorate the payments.

A manner in which utilities may assess interest if excess payments are made to persons that generate electricity is established. Utilities are required to repay taxes, with interest, against which credit was claimed for excess payments made to persons that generate electricity.

DOR must conduct a study from existing sources of data and report the impact of the incentives to the legislature by December 1, 2009.

This program is effective beginning July 1, 2005, and expires July 1, 2014.

03-27A-01B Tax Credits for Solar Energy WA

This Act directs that beginning October 1, 2005, upon every person engaging within the state in the business of manufacturing solar energy systems using photovoltaic modules, or silicon components of such systems; as to such people the amount of tax with respect to such business shall, in the case of manufacturers, be equal to the value of the product manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of 0.2904 percent.

In addition, beginning October 1, 2005, upon every person engaging within the state in the business of making sales at wholesale of solar energy systems using photovoltaic modules, or silicon components of such systems, manufactured by that person; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the solar energy systems using photovoltaic modules multiplied by the rate of 0.2904 percent.


Comment:

According to Washington legislative staff:

Background: A recent report by the Washington State University Energy Program concluded that while

the solar electric industry is rapidly developing in both the domestic and global markets, solar electric corporations are leaving the state. It further concluded that the dramatic growth experienced by Washington's solar electric market cannot be maintained without further incentives that recognize the unique forces and issues involved in the solar industry.

Most manufacturing businesses in the state pay the general manufacturing business and occupation (B&O) tax of 0.484 percent times the value of their product. Special B&O tax classifications and rates have been enacted by the legislature to address specialized situations, such as the semiconductor manufacturer classification, enacted in 2003, to create incentives for the semiconductor industry.

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http://ssl.csg.org/dockets/28cycle/28ES/0327a01bwa.pdf

Summary: The B&O tax for businesses manufacturing solar energy systems or the silicon

components of these systems is set at a rate equal to the value of the product multiplied by 0.2904 percent until June 30, 2014. Taxes paid in manufacturing these systems is granted as a B&O tax credit.

Businesses claiming the credit under this program must file annual reports with the Department of Revenue (DOR) detailing employment, wages, and health and retirement benefits.

DOR must conduct a study from existing sources of data and report the impacts of this Act to the legislature by December 1, 2013.

Disposition: 03-27A-01A







Disposition: 03-27A-01B







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03-26A-01 Default Electricity Supply Procurement Process MT

This Act: Requires the state public service commission to adopt rules to establish criteria

that guide the default electricity supply procurement process; Provides objectives for the default supplier for default supply planning, portfolio

management, and resource procurement process; Requires a default supplier to develop a procurement plan; establishing

requirements for comment by the public and the commission action on a default supplier procurement plan; requiring that any default electricity supply purchase made in compliance with a commission-approved procurement plan be recovered in default electricity supply rates providing a process for default supply procurement filings and commission approval;

Requires the commission to establish an electricity cost recovery mechanism for prudently incurred electricity supply costs;

Requires the commission to require a default supplier to offer multiple service options; and,

Requires a default supplier to offer its customers the option of purchasing a product composed of certified environmentally preferred resources.

Submitted as:MontanaSB247Status: Enacted into law in 2003.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0326a01mt.pdf

03-25C-01 Electrical Corporations: Procurement Plans CA

This Act inaugurates a process with the state Public Utilities Commission (PUC) by which an investor-owned utility (IOU) may obtain a determination that its proposed electricity procurement expenses will be deemed reasonable, and therefore recoverable from ratepayers, before the procurement expenses are incurred.

This Act states findings and declarations regarding providing guidance to electrical corporations and the commission for the procurement of electricity and electricity demand reductions by an electrical corporation and providing for review by the commission of procurement plans of electrical corporations.

The bill requires the commission to review and adopt a procurement plan for each electrical corporation in accordance with elements, incentive mechanisms, and objectives set forth in the bill.

The legislation authorizes the commission to engage an independent consultant or advisory service to evaluate risk management and strategy. The commission must adopt appropriate procedures to ensure the confidentiality of any market sensitive information submitted in an electrical corporation's proposed procurement plan or resulting from or related to its approved procurement plan, and to determine the impact of a proposed divestiture on an electrical corporation's procurement plan.

The Act allows an electrical corporation that serves less than 500,000 retail customers within the state to file with the commission a request for exemption from the provisions of the bill. It requires the commission to grant the exemption upon a showing of good cause.

Submitted as:CaliforniaAB 57Status: Enacted into law in 2002.

Comment:Press Release (California Office of the Governor) 04/28/2004 Governor Schwarzenegger Announces Electricity Priorities

Governor Arnold Schwarzenegger today called on the California Public Utilities Commission (PUC) to rapidly implement reforms to California's electricity market. The Governor stated his strong support for measures that will encourage new energy investments so that California can realize reliable power supplies and lower expenses.

"Enacting these measures will encourage investment in California's energy infrastructure, ensure long-term electricity reliability and reduce the likelihood of blackouts," said Governor Schwarzenegger. "I encourage the PUC to move quickly to adopt this regulatory framework so that California's consumers and businesses can begin to realize the benefits of lower electricity costs and stable energy supplies."

In a letter sent to the California Public Utilities Commission today outlining his objectives on energy policy, Governor Schwarzenegger called on the PUC to fully implement Assembly Bill 57 (Chapter 835 of 2002) which is designed to correct some of the key flaws of California's electricity market design.

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http://ssl.csg.org/dockets/28cycle/28ES/0325c01ca.pdf

Disposition:







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03-24C-01 Renewable Fuels Development Program IL

Generally, this Act provides up to $15 million a year in grants for financial assistance for the construction, modification, alteration or retrofitting of plants in the state that have a production capacity of at least 30 million gallons of renewable fuel per year.

Specifically, this Act: Provides that the state Director of Commerce and Community Affairs shall establish a

grant program known as the Illinois Renewable Fuels Development Program, which shall provide financial assistance for the construction, modification, alteration or retrofitting of renewable fuel plants that have an annual production capacity of no less than 30,000,000 gallons of renewable fuel per year and that are built in Illinois;

Provides that the Department must give preference to applicants that use Illinois agricultural products in the production of renewable fuel at the plant for which the grant is being requested;

Provides that the recipient of a grant must enter into a project labor agreement; Provides that, subject to appropriation, the Director is authorized to award up to

$15,000,000 in the aggregate in grants to eligible participants; Amends the Prevailing Wage Act; Provides that "public works" also includes all projects financed in whole or in part

with funds from the Department of Commerce and Community Affairs under the Illinois Renewable Fuels Development Program Act for which there is no project labor agreement;

Deletes from the definition of "public body" a requirement that the body be authorized by law to construct public works or to enter into any contract for the construction of public works;

Provides that the wage for a tradesman performing maintenance is equivalent to that of a tradesman engaged in construction;

Requires contractors and construction managers to post, at a location on the project site of the public works that is easily accessible to the workers engaged on the project, the prevailing wage rates for each craft or type of worker or mechanic needed to execute the contract or project or work to be performed; and

Provides that the failure to post a prevailing wage rate is a violation of the Act.

Submitted as:IllinoisPublic Act 093-0015Status: Enacted into law in 2003.

Disposition:






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03-24A-02 Renewables Portfolio Standard Program CA

This Act establishes a Renewables Portfolio Standard Program. The program requires that a retail seller of electricity, including electrical corporations, community choice aggregators, and electric service providers, purchase a specified minimum percentage of electricity generated by eligible renewable energy resources, as defined, in any given year as a specified percentage of total kilowatt hours sold to retail end-use customers each calendar year (renewables portfolio standard).

The Act requires the PUC to implement the renewables portfolio standard for electrical corporations, if funds are made available as described. Each electrical corporation is required to increase its total procurement of eligible renewable energy resources by at least 1% per year so that 20% of its retail sales are procured from eligible renewable energy resources. If an electrical corporation fails to procure sufficient eligible renewable energy resources in a given year to meet an annual target, the electrical corporation would be required to procure additional eligible renewable resources in subsequent years to compensate for the shortfall, if funds are made available as described. An electrical corporation with at least 20% of retail sales procured from eligible renewable energy resources in any year will not be required to increase its procurement in the following year.

The law requires the state PUC to direct electrical corporations to prepare within 90 days of being deemed creditworthy, and to review and update as necessary, renewable energy procurement plans that are sufficient to satisfy its obligations under the renewables portfolio standard. The PUC would must adopt rules within 6 months of the effective date of these provisions, for electrical corporations establishing a process for determining market prices of electricity from renewable generators pursuant to specified criteria, a process for rank ordering and selection of least-cost and best-fit renewable resources to fulfill program obligations, flexible rules for compliance that permit electrical corporations to apply excess procurement in one year to subsequent years, or inadequate procurement in one year to the following 3 years, and standard terms and conditions to be used by electrical corporations in contracting with renewable electricity generators. The PUC must review and accept, modify, or reject each electrical corporation's renewable procurement plan 90 days prior to the commencement of renewable procurement by the electrical corporation. The PUC must review and accept, modify, or reject renewable solicitations by electrical corporations and proposed contracts by electrical corporations with renewable electricity generators. The PUC must allow an electrical corporation to recover, in rates, electricity procurement and administrative costs associated with long-term contracts reasonably incurred consistent with a renewable energy procurement plan approved by the PUC.

The Act requires the state Energy Commission to certify eligible renewable energy resources, to design and implement an accounting system to verify compliance with the renewables portfolio standard by retail sellers, and to allocate and award supplemental energy payments to cover above-market costs of renewable energy.

This law provides that an application of an electrical corporation for a certificate for the construction of new transmission facilities, that are necessary to facilitate achievement of the renewable power goals, shall be deemed to be necessary by the PUC in determining to issue a certificate of public necessity and convenience. It requires the PUC to take all feasible actions to ensure that the transmission rates established by the Federal Energy Regulatory Commission are fully reflected in any retail rates established by the commission.

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This law requires the governing board of a local publicly owned electric utility to be responsible for implementing and enforcing a renewables portfolio standard, as described, and to annually report to its customers upon expenditures of public goods funds on public purpose programs, thereby imposing a state-mandated local program. The Act authorizes any nonutility power generator using renewable fuels that entered into a contract with an electrical corporation specifying fixed energy prices for output prior to December 31, 2001, to elect an additional 5 years of fixed energy payments at a level to be determined by the PUC.

Submitted as:CaliforniaChapter 516, 2002Status: Enacted into law in 2002.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0324a02ca.pdf

03-23C-01 Gasoline Price Caps HI

This Act increases the efficiency in the use of the state’s energy resources by instituting measures to reduce the price of gasoline at the wholesale and retail level. It improves energy management in state facilities by requiring agencies to comply with certain energy efficiency standards, strategies, criteria and practices, which will save taxpayer dollars and reduce emissions. More specifically, the bill establishes gasoline price caps effective July 1, 2004. It requires the state Department of Business, Economic Development and Tourism (DBEDT) to analyze fuel prices and conduct audits under the Petroleum Industry Reporting Act. DBEDT is also required to conduct extensive analysis and develop a comprehensive report with recommendations before the 2003 Legislative session on further legislation that may be needed regarding the gasoline markets and price controls.

Submitted as:HawaiiSB 2179, S.D. 2, H.D. 1., C.D. 2Status: Enacted into law in 2002.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0323c01hi.pdf

03-23A-02 Power Plant Siting CA

This Act creates a framework to accelerate the development of electrical generation while maintaining environmental protections against degradation of air quality. This Act contains provisions intended to accommodate increased construction and operation of power plants, including an expedited process for certifying "repowering projects" and temporary "peaker" power plants, and a reduced time frame for local jurisdiction's review of power plant applications.

DG is on-site generation owned by the customer and used to meet some or all of that customer's energy needs. DG can be used as backup power, to meet base or peak load needs, or to sell to adjacent sites in an "over-the-fence" transaction." For a customer that owns a DG unit that is connected to the utility distribution system, on-site generation is complemented by power purchased through, and delivered by, the utility. Under law, grid-connected DG customers pay a standby charge to the utility to reserve the capacity need to serve that customer. The standby charges are based on the installed capacity of the DG unit. This Act waives conditionally, for a period of 10 years, standby charges imposed by electrical corporations on customers who have installed non-gas-fired distributed generation equipment five megawatts or smaller that commence operation by September 1, 2002. It provides a five-year exemption for gas-fired generation units.

This Act requires the state air resources board (ARB) and local air districts to take various actions regarding expedited retrofit of power plant pollution controls, emission reduction credits, and the payment of emission offset fees and the posting of bonds in lieu of obtaining actual offsets.

Specifically, this Act: Limits to 45 days and 100 days, until January 1, 2004, a local jurisdiction's time

for initial review and final review, respectively, of an application submitted to the state energy commission (CEC) for a power plant project.

Requires CEC, as part of its written decision of a power plant application, to discuss the project's public benefits, and, as part of its final report, to address whether property tax revenue generated from the project is sufficient to support related local infrastructure and services.

Specifies that CEC siting decisions are subject only to state supreme court review and not to the appellate court review process to which state public utilities commission (CPUC) decisions are subject.

Requires CEC to issue its final decision for certifying “repowering" projects within 180 days instead of the 12 months allowed for power plant modifications.

Extends, from August 1, 2001 to December 31, 2002, the date by which temporary "peaker" power plants must be in service so as to qualify for the four-month siting process.

Requires, until January 1, 2004, the ARB and local air districts to: 1. Requires ARB to implement a program for "expedited retrofit" of power

plant pollution controls for all generating facilities already subject to retrofit requirements;2. Requires ARB to implement an expedited statewide program for

"identification and banking" of emission reduction credits for power plants and natural gas transmission facilities;

3. Requires each air district to adopt an expedited program for permitting of standby or distributed generation facilities and natural gas transmission facilities;

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Authorizes payment to air districts of mitigation fees for a new power plant in lieu of obtaining actual emissions offsets, when the owner or operator of the plant has shown that offsets are not available. Mitigation fees are to be used first to secure emission reductions from comparable stationary sources; and,

Waives conditionally, for a period of 10 years, standby charges imposed by electrical corporations on customers who have installed non-gas-fired distributed generation equipment five megawatts or smaller that commences operation by September 1, 2002. Provides that the waiver for gas-fired units shall only apply until June 1, 2006.

Permits a gas corporation, until June 1, 2002, to exercise the power of eminent domain to condemn any property for the purpose of competing with another entity in the offering of natural gas and services related to natural gas.

Submitted as: CaliforniaCH 12 of 2001Status: Enacted into law in 2001.

Disposition:







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03-23A-03 Expediting Applications for Power GeneratingFacilities NY

This Act provides for expedited consideration of application for siting or modifications of major electric generating facilities that result in reduced emissions. The Act requires proceeding on an application for the modification of an existing major electric generating facility, or siting a new major electric generating facility near an existing facility to be completed in all respects within 6 months, when such modification or siting shall result in at least a 75% reduction in the rate of emissions, on a pounds per megawatt-hour basis, of oxides of nitrogen, oxides of sulfur and particulate matter; authorizes and extension of such deadline by 3 months under certain circumstances.

Submitted as:New YorkA8952Status: Enacted into law in 2001.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0323a03ny.PDF

03-23A-04A Energy Facility Siting – Short Term OR

This Act amends state law to expedite the review and siting of power plants in the state. Generally, the Act speeds the development of environmentally sound renewable power generation by:

Raising the size limit for wind, solar and geothermal power plans under state siting review from 25 megawatts to 35 average megawatts;

Requiring six-month review for all renewable power plants less than 100 average megawatts;

Waiving the requirement that a developer of a renewable power plant demonstrate compliance with certain state siting review standards; and

Exempting expansions at sites of wind power plants that begin operation by Dec. 31, 2001, from state siting review.

Specifically, the Act: Allows the state public utility commission (PUC) to provide for the use of

arbitration to resolve valuation disputes relating to electric company investments; Changes jurisdiction of state energy facility siting council (EFSC) for renewable

energy resources from 35 peak megawatts to 35 average megawatts; Defines process for determining average megawatts; Removes renewable energy plant from “electric power generating plant” definition

and authorizes EFSC to implement the new definition of renewable; Defines “temporary energy generating facility,” and “standby generation facility;” Creates exemptions from site certification requirements for temporary energy

generating facilities and standby generation facilities that meet certain requirements; Places limits on the operation of these facilities to no longer than 24 months after

the date of first commercial operation or January 2, 2006, whichever is earlier; Prohibits EFSC from granting an exemption after July 1, 2003; Changes the level at which a power plant can qualify for expedited review from

EFSC to those with an average generating capacity of 100 megawatts or less; Exempts certain siting standards from ability of EFSC to approve or deny an

application for a renewable energy facility; Specifies that EFSC may apply standards developed in regards to any siting

standard to impose conditions on a site certificate issued for any energy facility; Removes requirements that investments by electric companies that fit into the

categories of “economic utility investment” and “uneconomic utility investment” be made prior to the date an electric company offers direct access to businesses;

Exempts an electric company that satisfies its public purpose funds obligations from requirements that it provide a commercial energy conservation services program;

Requires electric utility companies to collect $10 million per year for low-income energy bill payment assistance, and

Suspends consideration of energy generation areas by EFSC in regards to site certificate for a renewable power facility until December 31, 2001.

Submitted as:OregonChapter 134 of 2001Status: Enacted into law in 2001.

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http://ssl.csg.org/dockets/28cycle/28ES/0323a04aor.pdf

Comment: Oregon Chapters 134 and 683 of 2001 are part of a comprehensive legislative package that Oregon enacted to ensure that the state does not have energy shortages.

03-23A-04B Energy Facility Siting – Long Term OR

Generally, this Act: Expedites the siting review process for demonstrably low-impact gas-fired power

plants; Requires qualifying plants be located near an existing industrial or energy facility

and must comply with local land use regulations; Requires that qualifying plants need no more than three miles of associated

transmission lines and new natural gas pipelines outside of existing rights-of-way; Requires that qualifying plants must need no new water right or a water right

transfer; Requires that qualifying plants must use methods of wastewater disposal that do

not require new or significantly amended permits; Allows the potential for extending a temporary plant’s operation; Requires a plant owner to apply for a state site certificate; Amends air-quality statutes to remove retroactive penalties that hinder a qualifying

temporary plant in its application for a permanent site certificate; Streamlines the siting review process by all state agencies; Requires state agencies to complete timely review, if necessary, by hiring

contractors with funding from the applicant; Ensures that state agency reviews occur simultaneously rather than sequentially; Prohibits local governments from imposing taxes on any power plant generation;

and Provides local governments the option to offer enterprise zone property-tax

exemptions for new power plants.Specifically, the Act: Expedites licensing of large energy facilities; Reduce the use of nonrenewable energy resources in state facilities; Certifies solar heating and cooling system installers; and Deletes the state public utility commission’s (PUC) authority to offer incentives

for an electric utility to divest its generating plants or facilities.The Act exempts temporary (up to two-year operation) energy generating facility and

standby generation facility meeting certain criteria from the requirement to obtain a site certificate until July 1, 2003. It requires the state energy facility siting council (EFSC) to provide funding to state agencies and cities or counties required to contract with other entities in order to comment on site applications, and eliminates automatic stay upon legal appeal of a non-renewable energy facility, except for appeal to the state supreme court, based upon certain criteria. It limits the time for the court to adjudicate appeal to six months and limits scope of review. It imposes fee to be paid by applicants seeking expedited siting review and provides land-use planning requirements and expedites the siting review process for demonstrably low-impact gas-fired power plants, effective March 31, 2001. The Act requires a state agency to condition its comments for siting review on a determination by the EFSC or other state agency, where land-use compatibility review has not been completed.

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It permits the state office of energy (OOE) to waive fees and reviews for a state agency that demonstrates energy conservation greater than 20% of building code requirements. It requires all state facilities constructed or renovated after June 30, 2001 to exceed conservation provisions in building code requirements by 20%. It requires state agencies to reduce nonrenewable energy consumption by 10% from amount used in calendar year 2000, and directs state agencies that fail to achieve and maintain 10% reduction on and after June 30, 2003 to submit biennial conservation plans to OOE. Permits the state department of administrative services, in consultation with the OOE, to establish procurement standards for energy efficient equipment.

The law deletes the state public utilities commission’s authority to offer incentives for an electric utility to divest its generating plant or facility.

It disallows installing solar heating and cooling systems without journeyman plumber certification or a specialty registration from the state plumbing board and specifies that connecting such a system to a potable water source requires plumber certification. The Act requires the state plumbing board to establish standards and requirements for a solar heating and cooling installation specialty registration and to impose civil penalties not to exceed $5,000 for violations. Provisions become operative July 1, 2002. The law requires the state department of consumer and business services, with approval of the board, to set standards for solar heating and cooling systems.

Submitted as:OregonChapter 683 of 2001Status: Enacted into law in 2001.

Disposition: 03-23A-04A







Disposition: 03-23A-04BCSG policy task force recommendations to The Committee on Suggested State Legislation: 2008 Energy Supplement





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03-23A-05 Performance-Based Efficiency Contracts OK

This Act authorizes state agencies and universities to enter into performance-based efficiency contracts aimed at reducing energy consumption or lowering operating costs in state buildings.

Submitted as:OklahomaHB 1869 (enrolled version)Status: Enacted into law in 2001.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0323a05ok.pdf

03-23A-06 Coal Rights Act IL

This Act clarifies the rights of joint owners of coal in the state, to promote and preserve the value of coal reserves in the state, and to maximize the recovery of coal through the orderly and efficient development of coal reserves for the benefit of all joint owners in a fair and equitable manner.

Submitted as:IllinoisPublic Act 390 of 2001Status: Enacted into law in 2001.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0323a06il.pdf

03-22C-02 Energy Security and Reliability MN

This legislation establishes security and reliability as fundamental goals of the state’s energy and utility policy. Energy security is defined as "ensuring that the state's energy sources are:

diverse; to the extent feasible, produced in the state; environmentally sustainable; available to consumers at affordable and stable rates or prices; and above all, reliable." Reliability is defined as ensuring that adequate resources and infrastructure are in place,

and are planned for, to ensure that energy services to Minnesota consumers remains dependable, efficient and secure.

To accomplish these goals, the legislation re-engineers the way that infrastructure is planned for in the state, allowing public participation in utility planning procedures early in process and requiring the state to conduct both long term comprehensive statewide resource planning (the "energy security blueprint"), and planning for shorter term infrastructure needs (the state transmission plan).

In addition, the process for applying for and receiving infrastructure approvals is streamlined. Incentives for conservation and renewable energy are provided for, as well as for high efficiency, low emission distributed generation resources, such as fuel cells and micro-turbines. Customer protections and service standards are updated.

Concerning the essential energy infrastructure, this Act: rewrites the Power Plant Siting Act; provides for a State Transmission Plan; reforms the Certificate of Need statute; and establishes a Reliability Administrator.Concerning distributed energy resources, this Act: makes changes to the state's Conservation Improvement Program; provides for renewable energy goals and customer rate options; requires the development of distributed generation interconnection standards; and requires investment in renewable and distributed generation facilities.The Act provides: residential customer protections; distribution reliability standards and authority; authority to form utility joint ventures; and a requirement that the state conduct comprehensive energy planning.It also: requires an energy security blueprint and a state transmission plan; establishes position of reliability administrator; provides for essential energy infrastructure; modifies provisions for siting, routing, and determining the need for large electric

power facilities; regulates conservation expenditures by energy utilities and eliminating state pre-

approval of conservation plans by public utilities; encourage regulatory flexibility in supplying and obtaining energy;

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regulates interconnection of distributed utility resources; providing for safety and service standards from distribution utilities;

clarifies the state cold weather disconnection requirements; authorizes municipal utilities, municipal power agencies, cooperative utilities, and

investor-owned utilities to form joint ventures to provide utility services; and eliminates the requirement for individual utility resource plans.

Submitted as:MinnesotaChapter 212 of 2001Status: Enacted into law in 2001.

Disposition:

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ENERGY CONSERVATIONSuggested State Legislation

Energy Conservation (2008 SSL)This Act enables the state development finance authority to enter into agreements with

federal agencies to finance energy conservation measures. An energy conservation measure is an improvement or equipment that would create operational or energy cost savings.

Submitted as:KansasHB 2169Status: Enacted into law in 2007.



Section 1. [Short Title.] This Act shall be cited as “An Act to Permit State and Federal Agencies to Finance Energy Conservation Measures.”

Section 2. [Definitions.] As used in this Act:(A) ‘‘Authority’’ means the [state development finance authority] created by [insert

citation]. (B) “Bonds’’ means any [bonds, notes, debentures, interim certificates, grant and revenue

anticipation notes, interest in a lease, lease certificate of participation] or other evidences of indebtedness, whether or not the interest on which is subject to federal income taxation, issued by the [Authority] pursuant to this Act.

(C) ‘‘Energy conservation measure’’ means an energy study, audit, improvement or equipment which is designed to provide energy and operational cost savings at least equivalent to the amount expended by a participating state or federal agency for such energy study, audit, improvement or equipment over a period of not more than [30 years after the date] such improvement or equipment is installed or becomes operational, as the case may be.

(D) ‘‘Federal entity’’ means the government of the United States of America or any bureau, department, instrumentality or other agency of the federal government.

Section 3. [State Development Finance Authority Permitted to Contract or Enter Agreement with a Federal Entity to Implement Energy Conservation Measures.]

(A) The [state development finance authority] is authorized to contract or enter into a finance, pledge, loan or lease-purchase agreement with a federal entity for an energy conservation measure as defined in [Section 2 of this Act] to facilitate the financing thereof or to provide security for the repayment of bonds authorized under this Act.

(B) Before executing any contract or finance, pledge, loan or lease-purchase agreement under this section, the affiliated energy conservation contractor shall provide to the participating federal and state agencies and the [state development finance authority] plans for the proposed energy conservation measures prepared by an engineer licensed to practice in this state. The energy conservation contractor shall also provide a report of the calculations showing the estimated energy and operational cost savings that would result from the proposed energy conservation measures.

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(C) The [state development finance authority] is hereby authorized to issue revenue bonds in amounts sufficient to pay the costs of energy conservation measures as defined in this Act for or on behalf of federal entities for facilities located in the state, and to contract with federal entities with respect to such energy conservation measures and such revenue bonds. The bonds, and interest thereon, issued pursuant to this section shall be payable from revenues derived from the use, lease, occupation or operation of the facilities for which such energy conservation measures are undertaken; any other revenues, appropriations, grants or moneys of a federal entity available therefore; or any combination thereof.

(D) Revenue bonds, including refunding revenue bonds, issued under this section shall not be an obligation of the state of this state and shall not constitute an indebtedness of the state, nor shall those constitute indebtedness within the meaning of any constitutional or statutory provision limiting the incurring of indebtedness.

(E) Revenue bonds, including refunding revenue bonds, issued under this section and the income derived therefrom are and shall be exempt from [all state, county and municipal taxation in the state except state estate taxes].

(F) The total costs of energy conservation measures for state facilities initiated by state agencies under this Act, for any fiscal year, exclusive of financing costs, shall not exceed the amounts approved for such energy conservation measures by the [state corporation commission].

(G) The [state corporation commission] is authorized to provide administrative support and resources available as requested by federal entities developing energy conservation measures under this Act. The [state corporation commission] may fix, charge and collect reasonable fees for any administrative support and resources or other services provided to the parties developing energy conservation measures under this Act.




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Conservation of Energy and Natural ResourcesIn the Design of State Building Projects (2007 SSL)

This Act encourages state agencies that are constructing new, or renovating existing, buildings to use either the Green Globes or Leadership in Energy and Environmental Design (LEED) sustainable building programs to assess the environmental attributes of the structure. The legislation also creates a Legislative Task Force on Sustainable Building Design and Practices to review and advise state agencies about “green” building practices.

Submitted as:ArkansasAct 1770 of the 2005 Regular SessionStatus: Enacted into law in 2005.


Section 1. [Short Title.] This Act may be cited as “An Act to Promote the Conservation of Energy and Natural Resources in the Design of State Building Projects.”

Section 2. [Legislative Findings.] It is found and determined by the [Legislature] that: (1) State-funded building projects have a significant impact on the environment of our

State, the economy, and the health and productivity of building inhabitants; (2) State government currently spends approximately [seventy million dollars] annually

for electricity and natural gas consumed in state buildings, and energy expenditures have been increasing at nearly [four percent (4%)] per year over the last [ten (10) years];

(3) It is incumbent upon this state government to lead by example to minimize energy use and environmental impact in state buildings;

(4) Innovations in building science, technology, and operations are available to maximize the economic utility of state-funded building projects and reduce energy costs, while achieving the best environmental performance, and while reducing adverse impacts on the environment; and

(5) (A) Incorporating principles of sustainability in building design will enhance efficient management of material resources and waste, protection of health and indoor environmental quality, reduce the longer term costs of construction and operation of state-funded buildings, and promote the use of appropriate state products in the buildings.

(B) In recognition of the economic, energy conservation, and environmental benefits of sustainable building design, it is in the best interest of this state to initiate a process to encourage improved building practices, to provide support and information to assist state agencies in carrying out the purposes of this Act, and to continue development of best building practices through a legislative task force to evaluate and report to the [General Assembly] the progress being made under this Act.

Section 3. [Definitions.] As used in this Act: (1) “Adaptive reuse” means the modification, to accommodate a function other than its

original intent, of any building site and existing inhabited structure; (2) (A) “Building project” means any inhabited physical structure and project

building site.

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(B) “Building project” does not include ancillary structures or buildings with temporary occupancy such as park restrooms, pavilions, storage facilities, or similar structures.

(C) “Building project” includes any structure in which any individual spends more than an hour of time within the structure, such as residences, offices, visitors’ centers, classrooms, administration buildings, etc.; (3) “Grant applicant” means any individual, institution, governmental jurisdiction, or other organization recognized by the granting department or agency as qualified to apply for financial assistance from any state department, agency, or office for the purpose of planning, designing, or constructing a new or rehabilitated building;

(4) (A) “Green Globes” means the online environmental assessment tool as developed by the Green Building Initiative as of December 2004.

(B) “Green Globes” allows designers, property owners, and managers to evaluate and rate buildings against best sustainable building design and practices, and integrate principles of sustainable architecture at every stage of project delivery in order to design and construct buildings that will be energy and resource efficient, achieve operational savings, and provide healthier environments in which to live and work;

(5) (A) “Leadership in Energy and Environmental Design” means the following building rating systems developed by the United States Green Building Council:

(i) LEED-NC 2.1, as it exists on January 1, 2005; (ii) LEED-EB, as it exists on January 1, 2005; or (iii) LEED-CI, as it exists on January 1, 2005.

(B) “Leadership in Energy and Environmental Design” allows designers, property owners, and managers to evaluate and rate buildings against best sustainable building design and practices, and integrate principles of sustainable architecture at every stage of project delivery in order to design and construct buildings that will be energy- and resource-efficient, achieve operational savings, and provide healthier environments in which to live and work;

(6) “Newly designed construction project” means any building and its building site for which a contract has been entered into beginning [July 1, 2005], to construct a building and building site improvements as outlined in Leadership in Energy and Environmental Design or Green Globes rating systems;

(7) “Project building site” means all property associated with a building, including the defined legal description of the property or the defined project limits;

(8) (A) “Project limits” means the physical boundaries of a construction project within which all construction activity must occur.

(B) “Project limits” includes material and equipment storage space, lay down or prefabrication space, clearing, grubbing, and drainage improvements;

(9) “Project team” means the persons or individuals representing the state agency or owner, professional design consultants, and building contractor, if a contractor is determined prior to design;

(10) “Proposed construction project” means all building construction projects in the conceptual planning stages for which a design contract has been executed after [July 1, 2005];

(11) “Public and private partnerships” means any private development that uses state money to assist in the planning, design, or construction of a building project, such as a building project providing economic incentives for development;

(12) “Public funding” means federal or state funds that are allocated for a state building project;

(13) “Rehabilitation project” means any building project involving the modification or adaptive reuse of an existing facility in which [twenty-five percent (25%)] or more of the physical structure, façade, or interior space of a facility is being changed or modified;

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(14) “State agency” means all departments, offices, boards, commissions, and institutions of the state, including the [state-supported institutions of higher education];

(15) “State building project” means any inhabited physical structure and project building site in which:

(A) A state agency secures the design or construction contract; and (B) Public funding is used in whole or in part to design or construct the project;

and (16) “Sustainable” means that:

(A) A building integrates building materials and methods that promote environmental quality, energy conservation, economic vitality, and social benefit through the design, construction, and operation of the built environment;

(B) A building merges sound, environmentally responsible practices into [one (1)] discipline that looks at the environmental, economic, and social effects of a building or built project as a whole; and

(C) The design encompasses the following broad topics:(i) Efficient management of energy and water resources; (ii) Management of material resources and waste; (iii) Protection of environmental quality; (iv) Protection of health and indoor environmental quality; (v) Reinforcement of natural systems; and (vi) Integrating the design approach.

Section 4. [State Standards.] (a) If a state agency decides to pursue either the Leadership in Energy and Environmental

Design certification or the Green Globes certification, the standards of this section shall apply for the purpose of this state’s building projects.

(b) (1) Use of the Leadership in Energy and Environmental Design rating system shall be with the following supplemental provisions specific to this state’s building projects:

(A) Under LEED Credit EQ 4.4, [one (1) point] shall be awarded for the use of composite wood and agrifiber products if the architect or responsible party provides appropriate documentation that the products are third-party certified as meeting the American National Standards Institute standard requirements, ANSI A208.1 for Particleboard Standard and ANSI A 2808.2 for MDF, for formaldehyde emissions or contain no added urea-formaldehyde;

(B) Under LEED Credit MR 4, [one (1) point] shall be awarded when the sum of postconsumer recycled content plus [one-half (1/2)] of the preconsumer recycled content constitutes at least [ten percent (10%)] of the total value of the materials in the project. A [second point] shall be awarded if the sum of postconsumer recycled content plus [one-half (1/2)] of the preconsumer content constitutes at least [twenty percent (20%)] of the total value of the materials in the project. The valuation is to be determined by using the LEED-NC letter template;

(C) Under LEED Credit MR 6, [one (1) point] shall also be awarded for the use of renewable, bio-based materials for [five percent (5%)] of the total value of all the products used in the project that are either residuals of or products grown or harvested under a recognized sustainable management system, such as the Forest Stewardship Council, the Sustainable Forestry Initiative Program, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor’s or manufacturer’s certification documentation must be provided;

(D) Under LEED Credit MR 7, [one (1) point] shall also be awarded for the use of renewable, bio-based raw materials certified in accordance with [one (1) or more]

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premier certification programs for environmental management for [fifty percent (50%)] of the total value of all bio-based materials and products used in the project. Certification programs include, but are not limited to, the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor’s or manufacturer’s certification documentation must be provided;

(E) Under LEED Innovation in Design Credit 1.1, [one (1) point] will be awarded if [five percent (5%)] or more of the mass of all building materials used are carbon sequestering bio-based products managed under a recognized sustainable management plan; and

(F) Under LEED Innovation in Design Credit 1.2, [one (1) point] will be awarded for the use of bio-based materials derived from multiple credible certified sources supported by an environmental management system certified under the International Organization for Standardization standard ISO 14001, including the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor’s or manufacturer’s certification documentation must be provided.

(2) Use of the Green Globes rating system shall be with the following supplemental provision specific to this state’s building projects:

(A) An additional [fifteen (15) points] shall be awarded if [five percent (5%)] or more of the mass of all building materials used are carbon sequestering wood bio-based products; and

(B) [Fifteen (15) points] will be awarded for the use of bio-based materials derived from multiple credible certified sources supported by an environmental management system certified under the International Organization for Standardization standard ISO 14001, including the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor’s or manufacturer’s certification documentation must be provided.

Section 5. [Application to State Building Projects.] State agencies conducting or funding a public building project or rehabilitation project are encouraged to refer to and should utilize whenever possible and appropriate the Leadership in Energy and Environmental Design or Green Globes rating systems referred to in this Act.

Section 6. [Legislative Task Force on Sustainable Building Design and Practices.] (a) The Legislative Task Force on Sustainable Building Design and Practices is

established to: (1) continue to review, discuss, and advise on issues related to sustainable design

and practices for buildings; (2) monitor case study projects and evaluate performance and outcomes relevant

to high performance building strategies; (3) serve as a reference for educational resources; and (4) ask for a review of sustainable building design and practices performed by

state agencies. (b) (1) The task force shall be composed of no more than [twenty (20)] members. The

number of members shall be determined by agreement between the [Chair of the Senate Interim Committee on Public Health, Welfare, and Labor and the Chair of the House Interim Committee on Public Health, Welfare, and Labor].

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(2) The [Chair of the Senate Interim Committee on Public Health, Welfare, and Labor and the Chair of the House Interim Committee on Public Health, Welfare, and Labor] shall appoint the membership pursuant to procedure agreed upon by the chairs.

(3) The task force shall include members of the [General Assembly] and members of the public.

(4) The cochairs of the task force shall be members of the [General Assembly]. One (1) cochair shall be a member of the [Senate] and one (1) cochair shall be a member of the [House of Representatives].

(c) The legislative members of the task force shall be entitled to mileage and per diem at the same rate as for attending other legislative committees.

(d) The task force shall receive staff support from the [Bureau of Legislative Research]. (e) The task force shall expire on [July 1, 2007], unless continued by an Act of the

[General Assembly].

Section 7. [Emergency Clause.] It is found and determined by the [General Assembly] of this state that there is a need to incorporate energy and natural resource conservation measures into state buildings and state-funded buildings; that this Act will assist the state to provide better use of natural resources, and that this Act is immediately necessary because of the need to incorporate standards into new construction. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health, and safety shall become effective on [July 1, 2005].




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Shielded Outdoor Lighting (2006 SSL)

The purpose of this Act is to conserve energy and preserve the environment through the regulation of outdoor lighting fixtures. The Act directs that no public funds shall be used to install an outdoor lighting fixture unless it is shielded and no state funds shall be used for the installation of a shielded or unshielded mercury vapor outdoor lighting fixture. It requires the state department of environmental quality to promulgate regulations prohibiting any person or entity from knowingly placing or disposing of lights containing mercury in a landfill after January 1, 2008. It requires electric public utilities in the state to offer a shielded lighting service option.

Submitted as:ArkansasAct 1963 (2005)Status: Enacted into law in 2005.



Section 1. [Short Title.] This Act may be cited as “An Act to Encourage the Use of Shielded Outdoor Lighting.”

Section 2. [Purpose.] The purpose of this Act is to conserve energy and preserve the environment through the regulation of outdoor lighting fixtures.

Section 3. [Definitions.] As used in this Act: (a) “Outdoor lighting fixture” means an automatically-controlled, outdoor artificial

illuminating device, whether permanent or portable, used for illumination or advertisement, including searchlights, spotlights, and floodlights, whether for architectural lighting, parking lot lighting, landscape lighting, billboards, or street lighting; and

(b) “Shielded” means a fixture that is covered in a manner that light rays emitted by the fixture, either directly from the lamp or indirectly from the fixture, are projected below a horizontal plane running through the lowest point on the fixture where light is emitted.

Section 4. [Shielding: Prohibitions, Exemptions.] (a) After [January 1, 2006]:

(1) (A) No public funds shall be used to install an outdoor lighting fixture unless it is shielded.

(B) The provisions of subdivision (a)(1) of this section shall not apply to a municipally owned utility if the municipal employee responsible for procurement determines that the cost of acquiring a shielded outdoor lighting fixture will be more expensive than the alternative after comparing:

(i) The cost of the fixtures; and(ii) The projected energy cost of the operation of the fixtures;

(C) No state funds shall be used for the installation of a shield or unshielded mercury vapor outdoor lighting fixture.

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(2) The [Department of Environmental Quality] shall promulgate regulations prohibiting any person or entity from knowingly placing or disposing of lights containing mercury in a landfill after [January 1, 2008].

(3) (A) Each electric public utility shall offer a shielded lighting service option.

(B) Not later than [January 1, 2006], each electric public utility shall file an application with the [Public Service Commission] to establish a schedule of rates and charges for the provision of a shielded lighting service option to the utility’s customers.

(C) The [Public Service Commission] shall require each electric public utility to inform its customers of the availability of the shielded lighting service.

(b) This Act does not apply to acquisitions of: (1) Incandescent outdoor lighting fixtures of one hundred fifty watts (150W) or

less or other light sources of seventy watts (70W) or less;(2) Outdoor lighting fixtures on advertisement signs on interstate or federal

primary highways; (3) (A) Outdoor lighting fixtures existing and legally installed before the

effective date of this Act. (B) However, if an existing outdoor lighting fixture exempted from the

provisions of this Act under subdivision (b)(3)(A) of this section needs to be replaced, the acquisition of the replacement outdoor lighting fixture shall be subject to the provisions of this Act;

(4) Navigational lighting systems at airports or other lighting necessary for aircraft safety; and

(5) Outdoor lighting fixtures that are necessary for worker safety at farms, ranches, dairies, or feedlots or industrial, mining, or oil and gas facilities.

Section 5. [Penalties.] Violations of this Act are punishable by a warning for a first offense and a fine of [twenty-five dollars] minus the replacement cost for each offending outdoor lighting fixture for a second or subsequent offense or for an offense that continues for [thirty calendar days] from the date of the warning.

Section 6. [Enforcement.] This Act may be enforced by a town, city, or county of this state by seeking injunctive relief in a court of competent jurisdiction.

Section 7. [Provisions Supplemental.] The provisions of this Act are cumulative and supplemental and shall not apply within a town, city, or county of this state that by ordinance has adopted provisions restricting light pollution that are equal to or more stringent than the provisions of this Act.




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Clean Energy Incentives (2002 SSL)

This Act exempts clothes washers, dishwashers, room air conditioners, and refrigerators that meet or exceed applicable federal Energy Star efficiency guidelines; and energy efficient heating and cooling equipment and fuel cell electric generating equipment, from the state sales and use tax. The draft allows a motor vehicle excise tax credit for qualified electric vehicles and hybrid vehicles and a credit against the state income tax for specified solar energy property and for electricity produced from qualified energy resources.

The state energy administration, in consultation with manufacturers, retailers, and public interest groups, is required to develop voluntary labeling and public information materials to identify products eligible for the tax incentive provided for by the Act.

Submitted as:MarylandHB 20 (enrolled version)Status: Enacted as chapter 296 of 2000.



Section 1. [Short Title.] The Act may be cited as “The Clean Energy Incentive Act.”

Section 2. [State Sales and Use Tax: Exemptions for Certain Appliances.](a) The state sales and use tax does not apply to the sale of the following electric

appliances that meet or exceed the applicable Energy Star efficiency requirements developed by the United States Environmental Protection Agency and the United States Department of Energy:

(1) A clothes washer purchased on or after [July 1, 2000], but before [July 1, 2003];

(2) A room air conditioner purchased on or after [January 1, 2001], but before [July 1, 2004]; or

(3) A standard size refrigerator purchased on or after [July 1, 2001], but before [July 1, 2004].

(b) The state sales and use tax does not apply to the sale, on or before [July 1, 2004], of:(1) A fuel cell that:

(i) generates electricity and heat using an electrochemical process;(ii) has an electricity-only generation efficiency greater than [thirty-five

(35) percent; and(iii) has a generating capacity of at least [two (2)] kilowatts;

(2) A natural gas heat pump that has a coefficient of performance of at least [1.25] for heating and at least [.70] for cooling;

(3) An electric heat pump hot water heater that yields an energy factor of at least [1.7];

(4) An electric heat pump that has a heating system performance factor of at least [7.5] and a cooling seasonal energy efficiency ratio of at least [13.5];

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(5) A central air conditioner that has a cooling seasonal energy efficiency ratio of at least [13.5]; or

(6) An advanced natural gas water heater that has an energy factor of at least [0.65].

Section 3. [Definitions: Qualified Electric Vehicles, Qualified Hybrid Vehicles.] As used in this Act:

(1) “Automobile” means a 4-wheeled vehicle propelled by fuel that is manufactured primarily for use on public streets, roads, and highways, other than for use exclusively on a rail or rails, and is rated at not more than [eight thousand five hundred (8,500)] pounds Unloaded Gross Vehicle Weight.

(2) “Excise tax” means the tax imposed under [insert citation].(3) “Maximum available power” means the maximum value of the sum of the heat

engine and electric drive system power or other non-heat energy conversion devices available for a driver’s command for maximum acceleration at vehicle speeds under [seventy-five (75)] miles per hour.

(4) “Qualified electric vehicle” has the meaning stated in Section 30 of the Internal Revenue Code.

(5) “Qualified hybrid vehicle” means an automobile that meets all applicable regulatory requirements; meets the current vehicle exhaust standard set under the national low-emission vehicle program for gasoline-powered passenger cars; and can draw propulsion energy from both of the following on-board sources of stored energy:

1. gasoline or diesel fuel; and2. a rechargeable energy storage system.

Section 4. [Tax Credit: Qualified Electric Vehicles, Qualified Hybrid Vehicles.](a) (1) Except as provided in subsection (d) of this Section, a credit is allowed against

the excise tax imposed for a qualified electric vehicle or a qualified hybrid vehicle.

(2) Subject to the limitations under subsections (b) and (c) of this Section, the credit allowed under this Section equals [one hundred (100)] percent of the excise tax imposed for a vehicle.

(3) The credit allowed under this Section does not apply to a vehicle titled on or after [July 1, 2004].

(b) For a qualified electric vehicle, the credit allowed under this Section may not exceed [two thousand (2000)] dollars.

(c) (1) For a qualified hybrid vehicle that has a rechargeable energy storage system that provides at least [five (5)] percent of the vehicle’s maximum available power, subject to paragraph (2) of this subsection, the credit allowed under this Section may not exceed:

(i) [two hundred fifty (250)] dollars if the vehicle’s rechargeable energy storage system provides at least

(ii) [five (5)] percent but less than [ten (10)] percent of the maximum available power;

(ii) [five hundred (500)] dollars if the vehicle’s rechargeable energy storage system provides at least [ten (10)] percent but less than [twenty (20)] percent of the maximum available power;

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(iii) [seven hundred fifty (750)] dollars if the vehicle’s rechargeable energy storage system that provides at least [twenty (20)] but less than [thirty (30)] percent of the maximum available power; or

(iv) [one thousand (1,000)] dollars if the vehicle’s rechargeable energy storage system that provides at least [thirty (30)] percent of the maximum available power.

(2) If a qualified hybrid vehicle actively employs a regenerative braking system that supplies to the rechargeable energy storage system at least [twenty (20)] percent of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event, the maximum credit amount determined under paragraph (1) of this subsection shall be increased by:

(i) [one hundred twenty-five (125)] dollars if the vehicle’s regenerative braking system supplies to the rechargeable energy storage system at least [twenty (20)] percent but less than [forty (40)] percent of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event;

(ii) [two hundred fifty (250)] dollars if the vehicle’s regenerative braking system supplies to the rechargeable energy storage system at least [forty (40)] percent but less than [sixty (60)] percent of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event; or

(iii) [five hundred (500)] dollars if the vehicle’s regenerative braking system supplies to the rechargeable energy storage system at least [sixty (60)] percent of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event.

(d) A credit may not be claimed under this Section for a vehicle unless the vehicle is registered in the state or for a qualified electric vehicle unless the owner has already met any state or federal laws or regulations governing clean-fuel vehicle or electric vehicle purchases applicable during the calendar year in which the vehicle is titled.

(e) (1) The [motor vehicle administration] and the [state energy administration] jointly shall adopt regulations to administer the credit under this Section.

(2) The regulations adopted under this Section shall specify the testing and calculation procedures to be used to determine whether a vehicle meets the qualifications for a credit under this Section.

(f) On or after [October 1] of each year, the [motor vehicle administration] shall certify to the [comptroller] the total amount of credits allowed under this Section against the excise tax for the preceding fiscal year.

Section 5. [Definitions: Photovoltaic Property, Solar Energy Property, and Solar Water Heated Property.] As used in this Act:

(1) “Photovoltaic property” means solar energy property that uses a solar photovoltaic process to generate electricity and that meets applicable performance and quality standards and certification requirements in effect at the time of acquisition of the property, as specified by the [state energy administration].

(2) “Solar energy property” means equipment that uses solar energy to generate electricity, heat or cool a structure or provide hot water for use in a structure, or to provide solar process heat. “Solar energy property” does not include a swimming pool, hot tub, or any other energy storage medium that has a function other than storage.

(3) “Solar water heating property” means solar energy property that when installed in connection with a structure, uses solar energy for the purpose of providing hot water for use within the structure; and meets applicable performance and quality standards and certification

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requirements in effect at the time of acquisition of the property, as specified by the [state energy administration].

Section 6. [Tax Credit: Photovoltaic Property, Solar Energy Property, and Solar Water Heated Property.]

(a) An individual or a corporation may claim a credit against the state income tax for a taxable year as provided in this Section for the costs of solar water heating property or photovoltaic property placed in service during the taxable year.

(b) (1) Subject to the limitations under paragraph (2) of this subsection, the credit allowed under this Section includes [fifteen (15)] percent of the total installed cost of photovoltaic property or solar water heating property.

(2) The credit allowed under this subsection may not exceed [two thousand (2000)] dollars for each system for photovoltaic property; and [one thousand (1000)] for each system for solar water heating property.

(c) (1) The total amount of the credit allowed under this Section for any taxable year may not exceed the state income tax for that taxable year, calculated before application of the credits under this Section, but after application of the other credits allowable under this subtitle.

(2) The unused amount of the credit for any taxable year may not be carried over to any other taxable year.

(d) Except as otherwise provided in this title, for purposes of determining the state taxable income, the basis of property with respect to which the credit under this Section is allowed shall be its basis for federal income tax purposes.

(e) The credit under this Section may not be claimed for property placed in service before [July 1, 2000] or after [December 31, 2004].

Section 7. [Definitions: Qualified Energy Resources, Qualified State Facility.] As used in this Act:

(a) (1) (i) Except as provided in subparagraphs (ii) and (iii) of this paragraph, “Qualified Energy Resources” has the meaning stated in Section 45 of the Internal Revenue Code.

(ii) “Qualified Energy Resources” includes any solid, nonhazardous, cellulosic waste material that is segregated from other waste materials and is derived from:

1. Any of the following forest-related resources, not including old-growth timber:

a. Mill residues; b. Pre-commercial thinnings; c. Slash; or d. Brush; 2. Waste pallets, crates, and dunnage and landscape or right-of-way

trimmings, not including unsegregated municipal solid waste and post-consumer waste paper; or 3. Agricultural sources, including orchard tree crops, vineyard,

grain, legumes, sugar, and other crop by-products or residues. (iii) “Qualified Energy Resources” includes methane gas resulting from the

anaerobic decomposition of organic materials in a landfill or wastewater treatment plant. (2) (i) Except as provided in subparagraph (ii) of this paragraph, “Qualified

State Facility” means a facility located in the state that primarily uses Qualified Energy Resources to produce electricity and is originally placed in service on or after [January 1, 2001], but before

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[January 1, 2005], or produces electricity from a Qualified Energy Resource that is co-fired with coal and initially begins co-firing a Qualified Energy Resource on or after [January 1, 2001] but before [January 1, 2005], regardless of when the original facility was placed in service.

(ii) “Qualified State Facility” does not include a qualified facility that claims a tax credit under Section 45 of the Internal Revenue Code that is originally placed in service before [January 1, 2002], or if Section 45 of the Internal Revenue Code is amended to extend the applicability of the credit under that Section, that is originally placed in service during the time period specified in Section 45 of the Internal Revenue Code for eligibility for the credit under that Section.

Section 8. [Tax Credit: Qualified Energy Resources, Qualified State Facility.](a) (1) Except as provided in paragraph (2) of this subsection, an individual or

corporation may claim a credit against the state income tax for a taxable year in an amount equal to [eighty-five (85)] cents for each kilowatt hour of electricity:

(i) produced by the individual or corporation from qualified energy resources at a “Qualified State Facility” during the [10-year] period beginning on the date the facility was originally placed in service; or in the case of a facility that produces electricity from a qualified energy resource that is co-fired with coal, the date of the initial co-firing; and

(ii) sold by the individual or corporation to a person other than a related person, within the meaning of Section 45 of the Internal Revenue Code, during the taxable year.

(2) If the electricity is produced from a Qualified Energy Resource that is co-fired at a facility that produces electricity from coal, the credit is [five (5)] cents for each kilowatt hour of electricity produced from the qualified energy resource instead of [eighty-five (85)] cents.

(b) If the credit allowed under this Section exceeds the state income tax, any unused credit may be carried forward and applied for succeeding taxable years until the earlier of (1) the full amount of the credit is used; or the expiration of the 10th taxable year after the taxable year in which the credit arose.

Section 9. [Voluntary Labeling and Public Information for Clean Energy Tax Credits.] The [state energy administration], in consultation with manufacturers, retailers, and public interests groups, shall develop voluntary labeling and public information materials to identify products eligible for the tax incentives provided under this Act.




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Disposition:







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ENERGY CONSERVATIONPast Suggested State Legislation Docket Items

03-27B-01 Energy Efficiency Standards for Certain Products NJ

This Act requires the state Board of Public Utilities (BPU), in consultation with the Commissioner of Environmental Protection, within one year, to establish minimum energy efficiency standards for the following types of new products sold, offered for sale, or installed in the state:

Commercial clothes washers; Illuminated exit signs; Low-voltage dry type distribution transformers; Torchiere lighting fixtures; Traffic signal modules; and Unit heaters.The Act does not apply to: New products manufactured in the State and sold outside the State; New products manufactured outside the State and sold at wholesale inside the

State for final retail sale and installation outside the State; Products installed in mobile manufactured homes at the time of construction; and Products designed expressly for installation and use in recreational vehicles.The law provides that, within two years of the effective date, no new product of a type set

forth in the bill may be sold or offered for sale in the State unless the energy efficiency of the new product meets or exceeds the minimum energy efficiency standards. The Act directs that no new products of the types specified in the language of the bill may be installed in the state unless the energy efficiency of the new product meets or exceeds the efficiency standards set forth in the regulations adopted pursuant to the bill.

The bill defines certain commercial refrigerators and freezer equipment, sets their minimum efficiency standards and testing procedures, and provides that they have to meet such standards to be offered for sale or installed in the state on or after January 1, 2010. The Act defines certain commercial air conditioning and heating equipment, sets their minimum efficiency standards and testing procedures, and provides that they have to meet such standards to be offered for sale or installed in the State on or after January 1, 2010.

Under the bill, manufacturers of new products specified in the bill must certify that such products are in compliance with the provisions of the bill. The bill also establishes a civil penalty not to exceed $250 for noncompliance.

Submitted as:New JerseyChapter 42 of 2005Status: Enacted into law in 2005.

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http://ssl.csg.org/dockets/28cycle/28ES/0327b01nj.pdf

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03-26B-02 High Performance Public Buildings WA

This bill finds that public buildings can be built and renovated using high-performance methods that save money, improve school performance, and make workers more productive. High-performance green buildings are proven to increase student test scores, reduce worker absenteeism, and cut energy and utility costs. The bill declares that state-owned buildings and schools be improved by adopting nationally recognized standards for high performance green buildings and allowing flexible methods and choices in how to achieve those standards.

This Act declares that public agencies and public school districts must document costs and savings to monitor this program and ensure that economic, community, and environmental goals are achieved each year, and that an independent performance review be conducted to evaluate this program and determine the extent to which the results intended by this act are being met.

This legislation requires that all major facility projects of public agencies receiving any funding in a state capital budget shall be designed, constructed, and certified to at least the LEED Silver Standard. It requires public agencies and public school districts to monitor and document ongoing operating savings resulting from major facility projects designed, constructed, and certified as required under the Act.

This bill provides that public agencies shall report annually to the department on its major facility projects and operating savings.

The legislation provides that the joint legislative audit and review committee, or its successor legislative agency, shall conduct a performance review of the high-performance buildings program established under the Act. The performance audit must include, but not be limited to:

(1) The identification of the costs of implementation of high performance building standards in the design and construction of major facility projects subject to the Act;

(2) The identification of operating savings attributable to the implementation of high-performance building standards, including but not limited to savings in energy, utility, and maintenance costs;

(3) The identification of any impacts of high-performance buildings standards on worker productivity and student performance; and

(4) An evaluation of the effectiveness of the high-performance building standards established under this act, and recommendations for any changes in those standards that may be supported by the committee's findings.

The bill directs the committee to make a preliminary report of its findings and recommendations on or before December 1, 2010, and a final report on or before July 1, 2011.

Submitted as:WashingtonChapter 12 of 2005Status: Enacted into law in 2005.

Disposition:


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03-25A-01 Improvement Of Energy Efficiency In State-Funded Construction ME

This Act directs the state Bureau of General Services, in consultation with the state Energy Resources Council and the state Public Utilities Commission, to by rule require that all planning and design for the construction of new or substantially renovated state-owned or state-leased buildings and buildings built with state funds, including buildings funded though state bonds or the state Municipal Bond Bank:

Involve consideration of architectural designs and energy systems that show the greatest net benefit over the life of the building by minimizing long-term energy and operating costs;

Include an energy-use target that exceeds by at least 20% the energy efficiency standards in effect for commercial and institutional buildings; and

Include a life-cycle cost analysis that explicitly considers cost and benefits over a minimum of 30 years and that explicitly includes the public health and environmental benefits associated with energy-efficient building design and construction, to the extent they can be reasonably quantified.

Submitted as:MaineChapter 497 of 2003Status: Enacted into law in 2003.

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0325a01me.pdf

03-24A-05 Climate and Rural Energy Development Center WA

This Act creates a state Climate and Rural Energy Development Center as a clearinghouse for climate change and clean energy activities in the state.


Comment:

Disposition:







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http://ssl.csg.org/dockets/28cycle/28ES/0324a05wa.pdf

03-23A-01 California Consumer Power and ConservationFinancing Authority CA

This Act creates the California Consumer Power and Conservation Financing Authority (CPCFA) and authorizes the authority to issue up to $5 billion in revenue bonds to finance electricity generation projects, natural gas transmission and storage projects, and energy efficiency programs.

Specifically, this Act: Creates the CPCFA to be governed by a five-member board of directors consisting

of four gubernatorial appointees (confirmed by the Senate and serving staggered terms) and the state treasurer.

Establishes that the purposes of the authority are to:A. Finance, purchase, lease, own, operate, acquire, or construct generating

facilities to supplement private and public sector power sources currently in operation or under development. The CPCFA could finance projects on its own or through joint ventures with public or private entities. (The CPCFA may not invest in nuclear facilities or develop additional hydroelectric facilities without legislative authorization.)

B. Finance energy efficiency programs administered by the CEC, the state public utility commission (PUC) and other qualifying entities.

C. Finance retrofits and/or expansions of existing power plants for energy efficiency and environmental improvements.

D. Achieve adequate energy reserve capacity in the state within five years of the effective date of the bill.

Authorizes the CPCFA to finance natural gas transportation or storage projects as recommended by the PUC and pursuant to a needs analysis to be prepared by the PUC within 90 days of the effective date of the bill.

Requires all generation projects financed by the CPCFA to provide electricity to state consumers at the costs of generating that power, including the cost of financing the project. (The power can be sold outside the state at just and reasonable rates if it is not needed or if it is financially advantageous to the state's consumers to do so.)

Authorizes the CPCFA to have employees and contractors, adopt rules, and exercise the power of eminent domain.

Authorizes the CPCFA to issue up to $5 billion in revenue bonds for the stated purposes, but limits the amount available for energy efficiency programs to $1 billion.

Specifies that neither the full faith and credit nor the taxing power of the state or any local agency is pledged for payment of principal and interest on the bonds.

Establishes a special fund for expenditure of bond proceeds and collection of revenues by the CPCFA. All monies in the fund are continuously appropriated, except for the CPCFA's annual operating budget, which is subject to appropriation in the Budget Act.

Requires the CPCFA to apportion its operating costs among participating parties and, for that portion of its costs associated with the CPCFA's own enterprises, to recover those costs within the generation-related charges.

Requires the CPCFA, in consultation with the state energy commission (CEC) and the Independent System Operator, to submit an Energy Resource Investment Plan to the governor and the legislature within 180 days of the effective date of the bill.

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Requires the CPCFA to report annually to the governor and the legislature on its activities and expenses.

Prohibits the CPCFA from financing or approving any projects on or after January 1, 2007.

Requires the Bureau of State Audits to evaluate, by January 2005, CPCFA's effectiveness, including a recommendation as to whether the authority is needed beyond January 2007.

Submitted as: CaliforniaCH 10 of 2001Status: Enacted into law in 2001.

Comment: California legislative staff report:

“This bill creates a CPCFA based on the model of the New York Public Power Authority (NYPA). This bill requires that all generation facilities constructed using financing from CPCFA supply power to consumers at cost-based rates. This Act also allows for partnering with existing municipal power agencies to increase the availability of cost-based power. CPCFA is not envisioned as a "super" agency, but as an existing supply of native generation exercising existing powers of eminent domain as necessary. Providing additional electricity to California at cost-based prices and funding energy efficiency programs to reduce demand are the primary purposes of CPCFA. To accomplish each of these main objectives CPCFA would work in cooperation with existing agencies that currently oversee generation facility siting, ratemaking, and energy efficiency programs. CPCFA's authority will sunset in 2007, which is consistent with the bill's charter to provide adequate energy reserves for the state by 2006.

NYPA has performed similar functions to those envisioned in this bill for CPCFA, and NYPA has been in existence since 1931. NYPA generates 25% of New York's electricity through operation of 10 generating facilities and more than 1,400 circuit miles of transmission lines. In the past year and a half NYPA provided double-digit rate relief to governmental and long-term economic development customers, invested heavily in upgraded hydroelectric facilities, and more than 1,400 circuit miles of transmission lines. In the past year and a half NYPA provided double-digit rate relief to governmental and long-term economic development customers, invested heavily in upgraded hydroelectric facilities, and dramatically expanded investment in energy efficiency for schools and government buildings. NYPA also expanded fuel cell, solar power and microturbine projects to increase both generation and transmission capacity. In New York City alone there are three existing fuel cell systems generating 200 kilowatts each, as both back up energy sources for public hospitals and police precincts and as the primary energy sources for critical facilities, such as operating rooms, and more are planned for deployment later this year.”

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CSG COMMITTEE ON SUGGESTED STATE LEGISLATION

Tuesday, November 13, 20072:00 – 5:00 p.m.

ENERGY SUPPLEMENT - PART II

- NEW SUGGESTED STATE LEGISLATION DOCKET ITEMS AND RECOMMENDATIONS OF CSG ENVIRONMENT AND ENERGY TASK FORCE

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SUGGESTED STATE LEGISLATION SUSTAINABLE ENERGY SUPPLEMENT(Includes SSL drafts, recent state legislation, and legislation from recent SSL dockets)

Docket Numbering System:26 = Miscellaneous docket category; 28ES = docket 28 (Energy Supplement); 01 = Item number within category03-28ES (Energy Supplement – Supply/Generation) or 03-28ESC (Energy Supplement - Conservation) orItems on SSL dockets within last 5 years (e.g., 03-28B, 28A, etc.)

*Some bills could be listed under the Energy Supply/Generation category or the Energy Conservation Category.

ITEM NO. TITLE SOURCE ACTION

ENERGY SUPPLY/GENERATION

New Suggested State Legislation Docket Items

03-28ES-01 Surface Owners Protection Act NM03-28ES-02A Increased Renewable Energy Standards CO03-28ES-02B Renewable Energy Portfolio Standard NM03-28ES-02C Renewable Energy Standard NM03-28ES-02D Renewable Energy Standard MN03-28ES-02E Renewable Power CA03-28ES-03 Renewable Energy Transmission Authority NM03-28ES-04 Allowing the State to Procure Electricityon the Retail or Wholesale Market DE03-28ES-05 Geothermal and Solar Energy in State Buildings MN03-28ES-06 Refinery Revitalization OK03-28ES-07 Wind for Schools CO03-28ES-08 Energy Resource Zones Transmission Development CO03-28ES-09 Review and Approval of Proposed EnergyUtility Facilities WI03-28ES-10 Biofuels/Biomass OR03-28ES-11 Office of Energy Independence/Power Fund IA03-28ES-12 Wind or Solar Energy Systems Tax Credit LA 03-28ES-13 Nuclear Power Plants, Siting Permits, Property Tax Exemptions KS03-28ES-14 Lignite Development AR03-28ES-15 Sustainable Energy Utility DE03-28ES-16 Renewable Diesel Standards CA03-28ES-17 Power Agency Act Statement IL03-28ES-18 Incentives for Energy Independence KY

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ENERGY CONSERVATION

New Suggested State Legislation Docket Items

03-28ESC-01 Promote Municipal Energy Conservation ME 03-28ESC-02 Energy Cities IA03-28ESC-03A Appliance and Equipment Energy Efficiency Standards NY03-28ESC-03B Appliance and Equipment Energy Efficiency Standards AZ03-28ESC-04 Luminaires at State Agencies CT03-28ESC-05 Incentives for Installation of Renewable Energy Fixtures CO03-28ESC-06 Energy Efficiency and Renewable Energy Bonding NM03-28ESC-07 Replacing Incandescent Bulbs in State Buildings NJ03-28ESC-08 Tax Credits for Installing Alternative Energy Devices OR03-28ESC-09 Next Generation Energy MN03-28ESC-10 Solar Energy Technologies in Public Buildings OR03-28ESC-11 Energy Conservation in State Buildings NC03-28ESC-12A Limiting Restrictions on the Installation or Use of Solar Collectors NM03-28ESC-12B Limiting Restrictions on the Installation or Use of Solar Collectors NC

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ENERGY SUPPLY/GENERATIONNew Suggested State Legislation Docket Items

03-28ES-01 Surface Owners Protection Act NM

This Act establishes the duties and requirements to which oil and gas operators and surface landowners must adhere to negotiate surface access agreements and determine compensation for property damages from oil and gas operations. The Act provides for oil and gas operator bonding in certain circumstances and provisions limiting the applicability of the Surface Owners Protection Act for maintenance and ongoing production activities related to an existing oil or gas well and for oil and gas operations conducted within the scope of an surface access agreement entered into prior to July 1, 2007. It also contains provisions for attorney’s fees and costs for prevailing parties in court actions and treble damages if the court finds actions to be knowing and willful.

Specifically, this Act establishes a process requiring: oil and gas operators to compensate surface landowners for the use of a surface

landowner’s property and any damages sustained as a result of oil and gas operations; oil and gas operators to compensate tenants of surface landowners for any

leasehold improvements by repairing or replacing the improvements damaged as a result of oil and gas operations;

oil and gas operators to reclaim all surface lands directly affected as a result of oil and gas operations;

oil and gas operators to notify landowners in advance of contemplated oil and gas operations, provide specific information about the proposed operations and make an offer of compensation for the use of and damages to the surface resulting from he oil and gas operations;

specific timelines for surface landowners to take action on an oil and gas operator’s proposed surface use and compensation agreement;

a mechanism for oil and gas operators to enter a surface landowners property without a surface use and compensation agreement if a surety bond, letter of credit, cash or certificate of deposit is posted with a surety company or banking institution;

the surety bond, letter of credit, cash or certificate of deposit shall be for the benefit of and readily payable to the surface landowner for $10,000 per well location or a $25,000 blanket amount;

a mechanism for providing attorney’s fees and costs to surface owners in civil actions if the court finds that an oil and gas operator conducted operations without providing notice, outside of a surface use and compensation agreement without posting bonding or other surety, or operated outside the scope of an existing surface use and compensation agreement. Surface owners would also be liable for an oil and gas operators’ attorney’s fees and costs if they failed to exercise good faith in complying with the provisions of the Act or the terms of a surface use and compensation agreement;

the court would to also be able to assess treble damages if either the oil and gas operators or the surface owner’s actions were knowing and willful.

a statute of limitations for a surface owner to bring an action pursuant to the Surface Owners Protection Act within six years after the damage has been discovered, or should have been discovered, through due diligence, by the surface owner; and

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limits on the applicability of the Surface Owners Protection Act for maintenance and ongoing production activities related to an existing oil or gas well and for oil and gas operations conducted within the scope of a surface access agreement entered into prior to July 1, 2007.

This Act puts New Mexico in company with nine other states (Illinois, Kentucky, Montana, North Dakota, Oklahoma, South Dakota, Tennessee, West Virginia and Wyoming) that have modified the common law concerning an oil and gas operator's liability to surface owners by statute. The Act follows the general pattern of other states by providing surface owners a right to compensation while allowing oil and gas operators access on prescribed conditions.

Under the Act, the oil and gas operator could obtain immediate access by posting of a bond or other security in the amount provided, if the surface owner does not respond to the operator's proposal, or if negotiations are not successful.

Since the Act would apply to lands where the United States owned the minerals as well as to lands in State or private mineral ownership, an oil and gas operator drilling on federal mineral lands would, if it failed to secure a surface use agreement, have to comply with the bonding requirements of the Act as well as the existing BLM requirements described above.

Submitted as:New MexicoHB 827 of 2007Status: Enacted into law in 2007.

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http://ssl.csg.org/dockets/28cycle/28ES/0328ES01nm.pdf

03-28ES-02A Increased Renewable Energy Standards CO

This bill makes several statutory changes to a renewable energy initiative (Amendment 37) passed by state voters in 2004. Specifically, this Act expands the definitions of a "qualifying retail utility" to include all utilities, except municipally owned utilities (MOUs) serving less than 40,000 customers, and "eligible energy sources" to include recycled energy. The bill raises the standard for electricity generation from eligible energy sources for investor-owned utilities (IOUs) from:

3 to 5 percent for 2008 through 2010; 6 to 10 percent for 2011 through 2014; 10 to 15 percent for 2015 though 2019; and 10 to 20 percent for 2020 and after,

and establishes a new standard for electricity generation from eligible energy sources for rural electric cooperatives (RECs), and (MOUs) serving over 40,000 customers at:

1 percent for 2008 through 2010; 3 percent for 2011 through 2014; 6 percent for 2015 through 2019; 10 percent for 2020 and after.With regard to standard compliance, the bill establishes bonuses for certain types of

generation facilities. For all qualifying utilities, each kilowatt-hour of eligible electricity generated from a community-based project as defined in the bill will count as 1.5 kilowatt-hours. For RECs and MOUs, each kilowatt-hour generated from solar generation technologies that produce electricity before FY 2015-16 will count as 3 kilowatt-hours. However, utilities may take advantage of only one bonus for each kilowatt-hour of generated electricity.

For IOUs and MOUs, the maximum allowable retail rate impact from meeting the standard is raised from 1 to 2 percent of the total electric bill annually for each customer. The current opt-out provision for RECs is eliminated, and RECs are required to submit an annual report to the PUC on or before June 1 of each year. However, reports submitted by RECs are not subject to the same compliance report review process as those submitted by IOUs.

Finally, the bill allows utilities to develop and own as utility rate-based property up to 25 percent of total new eligible energy resources if these resources can be constructed at reasonable cost compared to the cost of similar eligible energy resources available on the market. If the utility shows that its proposal provides significant economic development, employment or energy security benefits, the utility is allowed to own between 25 and 50 percent of total new eligible energy resources. The bill was signed by the Governor and became law on April 27, 2007.

While this bill requires the Public Utilities Commission (PUC) to revise or clarify the existing rules promulgated for the implementation of Amendment 37, this requirement does not force any additional evidentiary hearings. The PUC is not precluded from holding such hearings, but such hearings would be discretionary, and accomplished within existing budgetary resources. Thus, the bill does not affect state or local revenue or expenditures and is assessed as having no fiscal impact.

Submitted as:ColoradoChapter 60 of 2007Status: Enacted into law in 2007.

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Comment:

OFFICE OF GOV. BILL RITTER, JR. FOR IMMEDIATE RELEASE:FRIDAY, MAR. 16, 2007Contact: Evan Dreyer, 720.350.8370

GOV. RITTER HAILS PASSAGE OF HALLMARK RENEWABLE ENERGY LEGISLATION

Gov. Bill Ritter today hailed the final passage of House Bill 1281, the legislative centerpiece of his 2007 renewable energy agenda for Colorado.

"I applaud lawmakers from both parties for their bipartisan cooperation and vision as they work to enact Colorado’s New Energy Economy," Ritter said. "In 2004, when Colorado voters overwhelmingly approved Amendment 37, we became the first state in the country to set renewable energy standards by citizen initiative.

"We’re making history yet again with HB 1281 by expanding those standards and continuing to establish Colorado as the nation’s renewable energy leader."

The governor congratulated lawmakers, investor-owned utilities, rural electric associations, environmental organizations, labor groups, consumer advocates and others for their collaborative efforts in shaping HB 1281.

"HB 1281 will help stimulate the rural areas at the heart of the New Energy Economy -- regions like the Eastern Plains and San Luis Valley where wind, sun and agriculture are abundant," Ritter said. "The bill will help us attract manufacturers of wind turbines and solar products. It also will stimulate research and development of emerging energy technologies.

"And by expanding our renewable energy production and consumption, we’ll reduce our reliance on foreign oil, which is good for our environment and our national security.

"I look forward to signing HB 1281 and the remainder of the New Energy Economy legislative package very soon," the governor added.

03-28ES-02B Renewable Energy Portfolio Standard NM

This Act bill mandates Rural Electric Cooperatives (RECs) to include 10% renewable energy into their supply. The existing Renewable Portfolio Standards (RPS) for independently owned electric utilities are increased to 25% by 2021. The Act adds energy efficiency programs into the RPS. RECs may increase fees to meet the requirements of the bill. The bill adds definitions for a municipality, renewable energy certificate, and renewable purchased power agreement in the Renewable Energy Act.

The Act includes a new requirement for the distribution cooperative to report to its membership a summary of its purchases and generation of renewable energy. This ensures the distribution of renewable energy education and membership awareness of the RPS.

This Act further requires that starting on January 1, 2009 all renewable energy certificates used to meet the renewable portfolio standard be registered with a renewable information system to create and track ownership of the certificates for verification and protection from multiple counting of the same renewable energy certificates.

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The legislation allows a PRC to open a docket for public utility applications for the purpose of identifying disincentives that discourage utility investment in energy efficiency and authorizes appropriate rule-making mechanisms to eliminate disincentives. RECs may also collect a renewable energy and conservation fee up to one percent of the customer’s bill, not to exceed $75,000 annually for any customer. These funds may only be spent on projects to promote renewable energy, load management or energy efficiency. The PRC would establish a financial incentive program to encourage public utilities to implement cost-effective energy efficiency programs. “Energy efficiency certificate" is defined. Energy efficiency certificates may used in the same manner as renewable energy certificates by a public utility for not more than 5% of the RPS.

Submitted as:New MexicoSB 418Status: Enacted into law in 2007.

Comment:

According to the Institute for Self-Reliance; Renewable Portfolio Standards - New MexicoUPDATE MARCH 2007:

“Senate Bill 418 was signed into law in March 2007 and added new requirements to the state's Renewable Portfolio Standard, which formerly required utilities to get 10 percent of their electricity needs by 2011 from renewables. Under the new law, regulated electric utilities must have renewables meet 15 percent of their electricity needs by 2015 and 20 percent by 2020. Rural electric cooperatives must have renewable energy for 5 percent of their electricity needs by 2015, increasing to 10 percent by 2020. Renewable energy can come from new hydropower facilities, from fuel cells that are not fossil-fueled, and from biomass, solar, wind, and geothermal resources.

In early March 2004, New Mexico Governor Bill Richardson signed into law a measure (SB 43) that requires investor-owned electric utilities to produce or buy increasing amounts of renewable energy. According to the new law, renewables must make up 5 percent of the utilities' sales by 2006, and 10 percent by the year 2011. The renewable energy measure puts into statute a Public Regulation Commission (PRC) rule that took effect last year. The law left a tiny hole that would allow utilities to ignore the new law through a provision for a PRC-established "reasonable cost threshold" beyond which a utility would not be required to add renewable energy to its energy supply portfolio.

Renewable energy is defined as electric energy generated from resources such as solar, wind, hydropower, geothermal or biomass, but does not include fossil fuel or nuclear energy. The “reasonable cost threshold,” is to be established by the PRC through hearings and research, by December 31, 2004. According to the Energy, Minerals and Natural Resources Department, studies have indicated that, while a “renewable portfolio standard” may slightly negatively impact electric rates in the short term (i.e. up to 10 years), its long-term impact will help to stabilize electric rates by diversifying the supply mix and, in effect, serve as a substitute for natural gas-fired electric power production.”

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http://ssl.csg.org/dockets/28cycle/28ES/0328ES02bnm.pdf

03-28ES-02C Renewable Energy Portfolio Standard NM

This bill establishes a requirement that investor-owned electric utilities meet a “renewable portfolio standard requirement” by having renewable energy comprise no less than 5 percent of retail sales by 2006, increasing 1 percent per year and leveling off at 10 percent by 2011. Renewable energy is defined as electric energy generated from resources such as solar, wind, hydropower, geothermal or biomass, but does not include fossil fuel or nuclear energy. For the most part, the bill places the existing Public Regulation Commission (PRC) Rule #573 into statute. PRC Rule #573 requires the above renewable portfolio standards, which do not apply to rural electric cooperatives or municipal electric utilities.

Furthermore, the purpose of the bill is to ensure the achievement of the “renewable portfolio standard requirement” is at a reasonable cost to the utility and subsequently the ratepayer. The bill sets the amounts of renewable energy the public utilities shall sell to retail customers by certain dates, allows public utilities to recover costs of complying with the bill through the ratemaking process, and protects public utilities and their ratepayers from renewable energy costs above a “reasonable cost threshold.”

The bill requires the PRC to establish the “reasonable cost threshold,” through hearings and research, by December 31, 2004. If the cost of renewable energy generation is above this PRC established level, the public utility will not be required to add renewable energy to its supply portfolio. The PRC is required to take into consideration specified factors that include: the impact on overall rates, diversity of the portfolio, reliability, and availability of resources, in setting thethreshold.

If good cause is shown, industrial and commercial customers can also be subject to a reduced “renewable portfolio standard requirement.” By September 1 of each year until 2012, a public utility would be required to file a report with the PRC on its purchases of renewable energy in the previous year, and show that its plans for future purchases are the least cost renewable resource. The PRC would then approve or modify procurement plans via hearings and the ratemaking process.

Lastly, language is included to reduce the Renewable Portfolio Standard (RPS) for nongovernmental customers at a single location or facility with consumption exceeding ten million kilowatt-hours per year (10,000,000 kwh/yr). This provision essentially covers the large consumers of electricity (i.e. manufacturers and other large businesses).

The number of kilowatt-hours of electricity from renewable sources procured for these customers is to be limited so that the additional cost of the RPS to each customer does not exceed the lower of 1 percent of that customer’s annual electric charges or forty-nine thousand dollars ($49,000).

This procurement limit criterion is then increased by 1/5 percent or ten thousand dollars ($10,000) per year until January 1, 2001, when it remains fixed at the lower of 2 percent of the customer’s annual electric charges or ninety thousand dollars ($90,000). Clarification is then provided that the preceding language in no way affects a public utility’s right to recover all reasonable costs of complying with the RPS. The Substitute also provides the PRC the authority to defer recovery of the costs of complying with the PRS, including carrying charges.

Submitted as:New MexicoSB 43 Status: Enacted into law in 2004.

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03-28ES-02D Renewable Energy Standard MN

This Act amends the state’s Renewable Energy Objectives (REO) that sets a target for 16 electric utilities in the state regarding the proportion of electric generation based on renewable resources, including wind, hydroelectric, biomass, and others. The current target is 10 percent of these utilities' retail electric sales - and statewide sales as well - generated from renewable sources by 2015. Utilities subject to the statute serve the vast majority of the state's retail electric customers. They include all investor-owned utilities, generation and transmission cooperatives and municipal power agencies; municipal utilities and cooperative electric associations are not covered by the law.

This Act accelerates the transition to renewable fuels is accelerated from the current target of 10 percent of retail sales by 2015. Beginning in 2012, all utilities subject to the statute, not just Xcel Energy, as at present, are required to meet the standards.

Under the Act, The Public Utilities Commission (PUC) is required to modify or delay the standard under certain conditions; must establish a system of tradable renewable energy credits; and may order compliance or impose financial penalties for non-compliant utilities.

This Act increases the size of hydroelectric facilities that may be counted towards a utility's Renewable Energy Objective (REO) or Renewable Energy Standard (RES) from 60 to 100 megawatts. The Act makes a "power district" subject to the standard.

The Act requires utilities to make a "good faith effort" to meet an REO of 7 percent by 2010. It sets mandatory standards for percentage of electricity that must be generated from eligible technologies, for all other utilities subject to the statute: for example, at least 25 percent of Xcel's 30 percent standard in 2020 must be generated by wind energy.

The Act requires the PUC to modify or delay the implementation of a standard if it determines such action is in the public interest. In evaluating that threshold, the commission is to consider:

impacts on utility costs, including competitive pressures on customers; effects on system reliability; technical concerns; delays in acquiring sites/routes due to rejection, or delays in permitting approval non-delivery of needed equipment; transmission constraints; and other statutory obligations of the commission or a utility. With respect to the first three factors, implementation may be modified or delayed only if

the commission finds these impacts are significant. For the other factors, circumstances must be beyond the utility's control.

A utility seeking a delay or modification must submit a plan for compliance with the standard in the same proceeding.

The Act requires the commission to establish a renewable energy credit trading system by January 1, 2008, and sets conditions regarding the credits. All utilities are required to participate in a credit-tracking system approved by the commission. Xcel Energy may not sell credits to other Minnesota utilities until 2021.

The bill requires the commission to regularly investigate compliance with the objectives and standards. It gives the commission discretionary authority to order a noncompliant utility to construct facilities or purchase energy or renewable energy credits to achieve compliance. If a

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utility does not comply with such an order, the commission may impose a financial penalty, not to exceed the cost of compliance.

The Act requires utilities to study and develop plans to enhance the transmission network so that the standards may be met. Utilities are to meet regularly with stakeholders experienced in transmission engineering and renewable energy generation, and are to submit a report to the commission by November 1, 2007 that:

identifies critical issues to be addressed; includes a comprehensive conceptual planning guide and specific transmission line

proposals necessary to support the standards; and contains a 5-year action plan that identifies specific actions that must be taken to

implement proposals and further develop transmission plans. The Act repeals a requirement that public and municipal utilities and cooperative electric

associations offer customers "green pricing" programs that allow them to choose to purchase renewable and high-efficiency, low-emissions, distributed energy for some or all of their energy demand, so long as these customers pay the full cost of obtaining energy from these sources. This section is effective January 1, 2010.

Submitted asMinnesotaChapter 3 / S.F. No. 4, Laws of MinnesotaStatus: Enacted into law in 2007.

Comment:

Energy - New Laws 2007 Renewable Energy Standard

Minnesota now has the most aggressive renewable energy standard in the United States, thanks to a new law sponsored by Rep. Aaron Peterson (DFL-Appleton) and Sen. Ellen Anderson (DFL-St. Paul). The law gradually increases the percentage of the state’s electricity coming from wind, solar, hydroelectric and other renewable sources to 25 percent by 2025. Xcel Energy, the state’s biggest power company, faces a tougher requirement of 30 percent by 2020.

Peterson said the law not only mandates cleaner energy production, but serves as an economic engine for rural Minnesota by enticing wind turbine manufacturers to the state.

“Right now, Minnesota imports more electricity than any other state. We need to keep more of our money at home, with an industry that will bring jobs and economic benefits to rural areas,” Peterson said.

The law grants authority to the Public Utilities Commission to enforce compliance, and also directs power companies to consult with the commission on a plan to make the necessary modifications to the state’s electric transmission infrastructure. It also includes a provision for a flexible renewable energy credit system, whereby companies that cannot meet the standard can purchase credits from companies that exceed them.

The law is effective Aug. 1, 2007.

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03-28ES-02E Renewable Power CA

Several different state statutes require investor-owned utilities (IOUs) to credit a customer’s annual utility costs for renewable power generated on the customer's property. These statutes vary by the type of customer and the renewable power generated. All generally require that the generators be sized to the customer’s electricity load and incidental excess power that is generated is kept by the utility free of charge. Only one program specifically requires that a customer receive compensation for excess renewable power generated however, it is restricted to water and wastewater agencies. As a consequence, a piecemeal approach to small-scale renewable power generation has been created.

Many customers have the ability to produce more electricity from renewable sources than they can use on site and the IOUs can technically contract for that generation. However, most small customers lack the resources necessary for that level of contract negotiation and the IOUs are limited in their ability to negotiate individual contracts for such small amounts of electricity. The proposed solution in this legislation is to require investor-owned utilities to purchase small-scale renewable energy produced by a customer and compensate the customer at the market price and under contract terms pre-determined by the California Public Utilities Commission (PUC).

This Act specifically: requires IOUs to file a tariff with the PUC for the purchase of renewable energy

produced by any customer which is less than 1.5 megawatts in size; sets the tariff at a market price for renewable electricity determined by the PUC; requires that the generation be interconnected and operated in parallel with the

electricity distribution grid and be strategically located near the electricity transmission system in a manner that optimizes the deliverability of electricity to load centers;

permits the IOU to count the renewable electricity purchased toward the IOU’s Renewables Portfolio Standard (RPS) requirements; and

caps the total amount of renewable electricity that can be sold statewide under the tariff at 1,000 megawatts.

Submitted as:CaliforniaSB 451Status: TYPE OF BILL : Active Non-Urgency Non-Appropriations Majority Vote Required State-Mandated Local Program Fiscal Non-Tax LevyLAST HIST. ACT. DATE: 07/16/2007LAST HIST. ACTION : Read second time. Amended. Re-referred to Com. on

APPR.COMM. LOCATION : ASM APPROPRIATIONSHEARING DATE : 07/25/2007

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03-28ES-03 Renewable Energy Transmission Authority NM

That Act creates a Renewable Energy Transmission Authority (Authority), a quasi-governmental agency to help facilitate the transmission and use of renewable energy. The Authority is authorized to:

hire an executive director and staff and set salaries; acquire, maintain, and operate eligible energy transmission facilities that, within

one year after beginning operation, produce at least 30 percent of the electric capacity from renewable energy sources;

issue and sell revenue bonds, known as renewable energy transmission bonds, and set their denomination, maturities, and rates of interest;

enter into agreements, contracts and partnerships that plan, acquire, maintain, operate, or lease eligible renewable energy facilities;

set rates for public utilities and other persons using facilities owned by the Authority; and

exercise the power of eminent domain for acquiring property or rights of way.Renewable energy is defined as electrical energy that is generated with low or zero

emission equipment or generated by solar, wind, hydropower, geothermal, non-fossilized fuel cells and biomass resources. Electrical energy produced by fossil fuels or nuclear energy is not considered renewable energy.

The bill creates two new funds in the state treasury. The “Renewable Energy Transmission Bonding Fund” would consist of revenues from operating or leasing facilities, fees, and interest earnings. The renewable energy transmission bonds would be repayable from the fund. Proceeds from the bonds will be appropriated to the Authority to finance or acquire electric transmission and storage facilities, and money in the fund will be pledged for bond debt service. On the last day of January 31 and July 30 of each year, the Authority will transfer the balance of the bonding fund, except for the amount needed for the next 12 months of debt service, to the newly created “renewable energy transmission authority operational fund.” This non-reverting fund would also consist of appropriated monies.

Renewable energy transmission bonds are exempt from state tax. Receipts from selling equipment or providing services to the Authority or any agent or lessee of the Authority may be deducted from gross receipts tax.

Section 4 (B) (8) provides the Authority with powers of eminent domain, pursuant to the Eminent Domain Code, for acquiring property or rights-of-way for public use if needed for projects, possibly including existing transmission facilities.

The Authority will be required to submit a report of its activities to the governor and legislature no later than December 1 of each year.

The bill also creates the Renewable Energy Transmission Oversight Committee, a joint interim legislative committee. Members of the committee will be chosen by the legislative council, and the legislative council will staff the committee.

Submitted as:New MexicoHB 188Status: Enacted into law in 2007.

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Comment:

Governor Bill Richardson Enacts Landmark Clean Energy Bills to Create Jobs, Keep Air CleanMarch 5, 2007Jon Goldstein 505-476-2248

SANTA FE -- Governor Bill Richardson today signed two major cornerstones of his clean energy agenda. Senate Bill 418 will dramatically increase New Mexico’s Renewable Portfolio Standard and our use of clean electricity. House Bill 188 creates a Renewable Energy Transmission Authority to promote clean energy jobs and help New Mexico both develop our clean energy resources and market them to other states.

“I am proud today to sign a bill that will quadruple New Mexico’s use of clean electricity by 2020,” said Governor Bill Richardson. “Promoting renewable electricity keeps our air clean and it will help New Mexico meet my aggressive greenhouse gas reduction goals. It will also help continue to create new jobs, like those at Advent Solar in Albuquerque, and aid ranchers who want to diversify into the lucrative wind energy market.”

In 2004 Governor Richardson signed New Mexico’s first Renewable Portfolio Standard into law. This mandated that 5% of New Mexico’s electricity come from renewable sources by 2006, increasing to 10% by 2011. Senator Michael Sanchez’s Senate Bill 418 requires that at least 15 percent of an electric utility\'s power supply come from renewable sources by 2015 and 20 percent by 2020.

House Bill 188 – sponsored by Representative Jose Campos -- establishes a Renewable Energy Transmission Authority that will help New Mexico export solar, wind and other renewable energy and further build our high-wage, and high-tech economy.

“The Transmission Authority and the Renewable Portfolio Standard work in combination to dramatically position New Mexico to develop our vast renewable energy resources,” said Joanna Prukop Cabinet Secretary for Energy, Minerals, and Natural Resources. “We’ve just positioned our state to become extremely competitive in all aspects of clean energy development and the benefits that come with it.”

Under Governor Richardson’s leadership, New Mexico has become the nation’s Clean Energy State. In the past few weeks alone Governor Richardson has signed a major, five state climate change agreement, announced a new Tesla electric car plant for Albuquerque and a biodiesel plant in Clovis, NM.

“I am proud that both these bills passed with bipartisan support,” said Governor Richardson. “That is because New Mexico is hungry for clean energy and the good jobs that come with this new industry.”

Disposition:


( ) Include in Volume( ) Reject( ) No actionComments/Note to staff:




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03-28ES-04 Allowing the State to Procure Electricityon the Retail or Wholesale Market DE

This Act gives the state Director of Management and Budget the authority and flexibility to allow the State to procure electricity in the retail or wholesale market subject to the approval of a detailed action plan by the Controller General.

Submitted as:DelawareHB 5Status: Enacted into law in 2006.

Disposition:







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03-28ES-05 Geothermal and Solar Energy in State Buildings MN

This Act requires the commissioner of administration to study geothermal and solar thermal applications for heating and cooling for building projects receiving state appropriations for capital purposes. The legislation expresses a preference for geothermal systems when practicable.


Disposition:







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03-28ES-06 Refinery Revitalization OK

The purpose of this Act is to encourage the expansion of refining capacity within the state by providing incentives for growth and by detailing an accelerated review and approval process of all regulatory approvals for certain idle refineries. Additionally, the act seeks to provide legal and technical assistance to state agencies, which may have resources that are inadequate to meet such permit review demands.

This Act: requires the Governor to request the Environmental Protection Agency to negotiate

with the Department of Environmental Quality for a Refinery Permitting Cooperative Agreement (RPCA);

authorizes the Executive Director of the Department of Environmental Quality and certain Indian tribes to sign the RPCA;

authorizes the Executive Director to accept consolidated applications and enter into certain memoranda of agreements;

authorizes the Executive Director to request financial, technical, legal, and other assistance from the federal government for certain purposes;

directs the Executive Director to coordinate all state, federal, tribal, and local authorizations and reviews;

directs the Executive Director to establish a schedule and preapplication process for refinery facility applications;

requires draft permits to be completed within certain time period; allows an applicant to pursue certain remedies if schedule is not met; stipulates the RPCA address the National Environmental Policy Act of 1969

compliance actions; provides for the preparation of a single environmental impact statement; requiring state agencies to cooperate with the Department in preparing an environmental impact statement;

provides for the appeal of state agency decisions or actions to a certain panel; directs the Corporation Commission to cooperate with the Federal Energy

Regulatory Commission on authorizations for crude oil or refined petroleum product pipeline facilities; authorizes the Commission to establish a schedule for state pipeline authorizations;

directs the Commission to issue an order authorizing certain actions relating to the pipeline facility;

authorizes the holder of a Commission order to acquire property through eminent domain in certain circumstances;

allows a taxpayer to treat certain costs of a qualified refinery property as a nonchargeable expense to a capital account;

provides for compliance with provisions if total output of an existing qualified refinery is increased by a certain percentage; and

allows certain refiners to take a deduction for certain sulfur regulation compliance costs.

Submitted as:OklahomaHB 2810 (enrolled version)Status: Enacted into law in 2006.Comment:

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This Act reportedly will reduce the average time it takes to process permits for proposed, new refineries from 10 to 5 years.

Disposition:







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03-28ES-07 Wind for Schools CO

This Act establishes the Wind for Schools Grant Program to fund wind energy projects at qualified public schools and community colleges. The program will be administered by the Officeof Energy Management and Conservation (OEMC), and the bill requires the OEMC to adopt policies for implementation of the program. The OEMC will accept and evaluate applications from qualified schools for grant money. The bill caps grant awards at $5,000 per school. In awarding grant money, the OEMC is required to consider, at a minimum, whether the qualified school will reduce its electricity costs by implementation of the project and has a plan in place to incorporate the project into its curriculum.

The OEMC is required to spend at least $50,000 to implement the program from the federal funds it receives. Finally, the bill prohibits the Governor's Office from seeking a supplemental appropriation for program implementation.


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03-28ES-08 Energy Resource Zones Transmission Development CO

This Act directs that on or before October 31, 2007, this bill requires Colorado electric utilities subject to rate regulation to undertake biennial reviews to designate areas of the state as "Energy Resource Zones" where transmission constraints hinder the delivery of electricity. The amended bill requires these utilities to develop and submit plans for the construction of additional transmission capacity in these zones to the Public Utilities Commission (PUC). The PUC is then required to grant or deny any necessary certificates of public necessity and convenience within 180 days if the PUC finds that the construction or expansion is required to ensure reliable delivery of electricity to consumers or enable the utility to meet the state's renewable energy standards and the present or future public convenience and necessity require such construction or expansion.

Utilities are allowed to recover costs during construction through a rate adjustment clause on any transmission facilities for which a certificate has been issued or for which it has been determined that no certificate is needed. The PUC is also required to approve cost recovery on thetotal balance of construction work currently in progress related to such transmission facilities.

Submitted as: Colorado Chapter 61 of 2007 Status: Enacted into law in 2007.

Comment:

The bill was signed by the Governor and became law on March 27, 2007. There are currently two investor-owned utilities that are subject to rate regulation in Colorado, Xcel Energy and Aquila Energy.

Disposition:







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03-28ES-09 Review and Approval of Proposed EnergyUtility Facilities WI

This Act relates to the siting and review of proposed energy utility facilities, such as electric power plants, electric transmission lines, and natural gas pipelines. It does the following:

Creates processes designed to coordinate, and thereby shorten, the review and approval of these facilities by the Department of Natural Resources (DNR) and the Public Service Commission (PSC).

Establishes expedited procedures for the DNR’s and PSC’s review and approval of certain transmission line projects on “recycled rights of way;”

Makes other changes in the DNR’s and PSC’s review processes relating to the PSC’s deadline for reviewing interstate projects, submission of transmission project plans to the DNR, PSC access to property for site investigations, and preference for siting power plants on brownfields;

Creates a state policy on the preferred locations for siting new transmission lines; Modifies existing incentive payments and aids for hosting a transmission line or

power plant; and Modifies the negotiating procedures for electric utilities under the eminent domain

law.

Submitted as:WisconsinAct 89 of 2003Status: Enacted into law in 2003.

Disposition:







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03-28ES-10 Biofuels/Biomass OR

This Act: allows income and corporate excise tax credit for agricultural producers and

collectors of biofuel raw materials (including forest or agriculture-sourced woody biomass, oil seed crops, grain crops, grass or wheat straw and animal rendering byproducts) used to produce fuel in Oregon. Specifies amount of credit per type of biomass;

allows income tax credit for consumers who purchase ethanol blended at 85 percent ethanol concentration and biodiesel blended at 99 percent biodiesel concentration for use in alternative fuel vehicles;

allows consumer tax credits for purchase of forest or agriculture waste or residue solid biofuel that contains 100 percent biomass (pellets) and biodiesel for home heating at 20 percent concentration of biodiesel;

sunsets the producer and consumer credits on January 1, 2013; expands local property tax exemption for energy production facilities that produce

ethanol, biofuel or verified fuel additives; creates standards for biodiesel, ethanol and other renewable diesel to be monitored

by Oregon Department of Agriculture. Requires Oregon Department of Agriculture to monitor biodiesel fuel production, and ethanol production capacity in Oregon to initiate minimum fuel blending requirements statewide for biodiesel and ethanol;

requires retail sellers of gasoline to sell only gasoline that contains at least 10 percent ethanol within three months after Oregon production of ethanol reaches 40 million gallons per year. requires retail sellers of diesel to sell only diesel that contains at least two percent biodiesel within three months after production of biodiesel in the state, using feedstocks from Oregon, Washington and Idaho, reaches five million gallons annualized for at least three months;

requires retail sellers of diesel to sell only diesel that contains at least five percent biodiesel within three months after production of biodiesel in the state, using feedstocks from Oregon, Washington and Idaho, reaches 15 million gallons annualized for at least three months. Excludes diesel fuel sold for use by locomotives, marine engines or home heating from the biodiesel fuel content requirements;

restricts proportion of methyl tertiary butyl ether (MTBE) and other gasoline additives;

maintains exclusive farm use status for on-farm biofuel production facilities; requires state-owned structures to use biofuel or direct-application electricity

generated from biofuel, where diesel is currently used, for stationary or back-up generation; and requires the Department of Energy to periodically conduct an impact study of the

biofuels program.

Submitted as:OregonHB 2210 (enrolled version)Status: Enacted into law in 2007.

Comment:

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Oregon Set to Adopt Aggressive Biofuels Incentives Press Release from Stoel Rives, Portland, Oregon

Oregon continues to distinguish itself in the renewable energy sector as it breaks ground in the area of biofuels. On June 20, the Oregon legislature passed one of the most aggressive biofuels incentive packages in the United States. It sets renewable fuel standards and provides major tax and production incentives for fuel retailers and processors to produce and sell biofuels and biomass. When combined with Oregon's existing Business Energy Tax Credit, the new legislation will result in one of the most robust incentive packages in the nation for the development of ethanol and biodiesel. Governor Ted Kulongoski, an enthusiastic supporter of renewable fuels, is expected to sign the legislation shortly at SeQuential Biofuels' retail station in Eugene, Oregon.

Oregon's biofuels legislation goes beyond just setting mandates; it also provides state income tax credits for producing or collecting biomass to produce biofuels, property tax exemptions in designated rural renewable energy development zones and income tax credits for consumers using biofuel blends or solid biofuels.

The legislation guarantees a market for biofuels in Oregon by requiring Oregon petroleum dealers to add biofuels into diesel and unleaded gasoline as state biofuel producers reach certain critical levels of production. After Oregon production of biodiesel from sources in Oregon, Washington, Idaho, and Montana reaches 5 million gallons per year, the Oregon Department of Agriculture (the "Department") will mandate that state petroleum dealers blend at least 2 percent biodiesel into market petroleum diesel. Once Oregon biodiesel production from regional sources reaches 15 million gallons per year, the percentage increases to 5 percent. Biodiesel produced from palm oil does not apply toward these percentages. For the ethanol industry, after state ethanol production reaches 40 million gallons per year, the Department will mandate that state petroleum dealers blend 10 percent ethanol into their unleaded gasoline.

Oregon’s biofuels legislation goes beyond just setting mandates; it also provides state income tax credits for producing or collecting biomass to produce biofuels, property tax exemptions in designated rural renewable energy development zones and income tax credits for consumers using biofuel blends or solid biofuels. Farmers and biomass collectors may claim their credit for the tax year in which they transfer the biomass to biofuel producers. The legislation provides a carryforward period of up to four years. Once the tax credit is claimed, the taxpayer may choose to use the credit or sell it to another taxpayer by a simple notice filed with the Department of Revenue. To be eligible for the tax credit, biomass must be produced or collected and used in Oregon as a feedstock for bioenergy or biofuel production. Biomass includes, but is not limited to, woody mass, canola, wheat, barley, triticale, straw, grass, camelina, flax, cooking oil or waste grease, yard debris, animal manure, and wastewater solids.

Producers of biofuels will receive state tax credits that can be used to finance up to 35 percent of a facility’s capital costs through the recently amended Oregon Business Energy Tax Credit ("BETC") program. On June 25, the legislature passed HB 3201 that would increase the BETC to finance up to 50 percent of a facility's capital cost, up to a maximum BETC of $10 million. The producer eligible for a BETC may choose instead to sell the BETC to another taxpayer for cash. Senate Bill 819, which was passed by the Oregon legislature on June 23 and is expected to soon be signed by Governor Kulongoski, is intended to revive the market for the sale of these credits, helping producers that need to monetize the BETC.

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The biofuels legislation also expands local property tax exemptions within a rural renewable energy development zone from $100 million to $250 million. Projects for the production of ethanol, biofuel or a verified fuel additive within the zone are eligible for the property tax exemption. No carryforward is allowed.

Individual consumers of biofuels are eligible for the Biofuel Consumer Income Tax Credit ("BCITC"), which allows an income tax credit of $0.50 per gallon of biodiesel (B99) or ethanol (E85) blended fuel up to a maximum of $200 per year for each Oregon registered vehicle owned or leased by the taxpayer. Individual taxpayers may also receive a BCITC of up to $200 per year for their purchase of biosolids prepared from forest, rangeland, or agriculture waste or residue. The BCITC is also available to consumers who purchase certain biodiesel blend fuels for home heating.

The legislation also sets technical standards for the composition of biodiesel and ethanol. In two years, the Oregon Department of Energy will conduct an impact study of the biofuels program, focusing on work force, environmental, and economic effects.

Oregon Governor Kulongoski Signs Biofuels LegislationMon, 07/09/2007 - 12:17 — admin Biofuels bill encourages renewable energy production and use throughout the state

July 3, 2007 -- Eugene – Kicking off Energy Independence Month, Oregon Governor Ted Kulongoski today was joined by legislators, environmental and agricultural leaders at a biofuels facility in Eugene to sign House Bill 2210, which creates a Renewable Fuel Standard and tax incentives for both consumers and producers of biofuels.

“These bills will not only create financial opportunities for Oregon’s agricultural sectors, but it will help reduce our green house gas emissions while creating thousands of jobs in rural Oregon,” said Governor Kulongoski. “Today is about signing legislation that creates a lasting environmental legacy for future generations.”

The Biofuels Bill was developed by the Biofuels Subcommittee of the Governor’s Renewable Energy Work Group that convened during the summer of 2006 and was part of the Governor’s energy independence agenda for the 2007 legislative session. House Bill 2210, coupled with Senate Bill 838, the Governor’s Renewable Portfolio Standard of 25 percent of Oregon’s electricity coming from renewable sources by 2025, will make Oregon’s commitment to renewable and alternative energy among the most ambitious in the nation.

“House Bill 2210 will do for the fuel sector what SB 838 will do for the electricity sector,” the Governor said referring to the renewable energy standard. “It will move Oregon significantly down the road to a renewable energy future, creating hundreds of millions – if not billions – of dollars of investment, and thousands of new high quality jobs around the state. And it will help Oregon reduce our greenhouse gas emissions and tackle global warming.”

The major components of House Bill 2210 include:

Renewable Fuels Standard:

All gasoline sold in the state must be blended with 10 percent ethanol after Oregon production of ethanol reaches 40 million gallons per year. All diesel fuel sold in the state must be blended with two percent biodiesel when the production of biodiesel from sources in the Pacific Northwest reaches a level of at least 5 million gallons per year. The biodiesel blending

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requirement increases to 5 percent when annual production reaches a level of at least 15 million gallons per year.

Tax Incentives:

For producers or collectors of biofuels feedstock: Including forest or agriculture-sourced biomass, oil seed crops, grain crops (excluding corn), grass or wheat straw and animal rendering byproducts.

For consumers of biofuels: Oregonians who purchase gasoline blended with an 85 percent ethanol concentration or biodiesel blended with a 99 percent concentration qualify for this tax credit. Additionally, Oregonians who use agriculture or forest waste pellets for home heating containing 100 percent biofuel also qualify.

This is in addition to the business energy tax credit available for biofuels refineries and farm based equipment.

The Governor also declared July as “Energy Independence Month” and encouraged Oregonians to reduce their carbon footprint. Leading by example, the Governor filled his alternative fuel state vehicle with E-85 biodiesel at SeQuential Biofuels Station, a Eugene gas station that offers biofuel blends for all gasoline and diesel-powered vehicles.

The Governor also highlighted that that since taking office, the state fleet has transitioned to more than 300 hybrids (close to 10% of its sedan fleet), 577 flex fuel vehicles that can run on E-85 and 178 compressed natural gas vehicles, comprising approximately 1/3 of the state motor pool. Under the Governor’s direction, the state also has committed to using a minimum 10 percent blend of biodiesel for its diesel fuel use with the Oregon Department of Transportation leading the way by using a B-20 blend in the Portland Metro area

“Today marks another step forward, but it is not the end,” the Governor continued. “We must build on the momentum of this year and create a truly more energy independent and renewable energy future for Oregon – both in the public and private sectors.”

A copy of the enrolled bill language can be found here:http://landru.leg.state.or.us/07reg/measures/hb2200.dir/hb2210.en.html

Other energy and climate change bills passed this session include:

Renewable Energy Standard: A Bold, Achievable Goal of 25% by 2025. The Governor won approval of his Renewable Portfolio Standard to require 25 percent of Oregon’s energy to come from renewable sources by 2025 – one of the most ambitious standards in the nation. [SB 838]

Alternative Energy Development: Investing in Oregon’s Future. The Legislature approved the Governor’s proposal to boost the Business Energy Tax Credit (BETC) on renewable energy systems from 35 percent to 50 percent and increase the credit cap from $10 million to $20 million. The BETC has been integral to attracting new energy projects to the state like Solarworld AG and Solaicx. The Governor also expanded the Residential Energy Tax Credit to encourage greater adoption of renewable energy technologies. [HB 2211, 2212]

Clean Diesel: Reducing Diesel Engines Pollution. The Governor’s proposal to fund the upgrading of old polluting diesel school bus and truck engines became a reality. The legislation provides millions of dollars to replace old diesel engines, reducing emissions and creating cleaner air. It

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also establishes a first-in-the-nation goal of reducing cancer risk from diesel emissions to less than one in a million. [HB 2172]

Climate Change: Combating Global Warming. The Governor supported and signed into law legislation that creates aggressive greenhouse gas reduction goals of 10% below 1990 levels by 2020; and 75% below 1990 levels by 2050. It also creates a Global Warming Commission and a university-level climate research center.[HB 3543]

A copy of the Governor’s proclamation for Energy Independence Month can be found here:http://governor.oregon.gov/Gov/pdf/energymonth.pdf

Source: Oregon Governor

Disposition:







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03-28ES-11 Office of Energy Independence/Power Fund IA

This Act creates the Office of Energy Independence, the position of Director of the Office of Energy Independence, the Iowa Power Fund Board, a Due Diligence Committee, and the Iowa Power Fund. Duties for the office, director, board, and committee are specified. Grants, loans, and investments and other financial incentives made from the fund are subject to approval by the board.

The director is required to develop an Iowa Energy Independence Plan, subject to approval by the board, with the assistance of the Department of Natural Resources (DNR) and in association with public and private partners selected by the director.

The Act specifies plan parameters, and provides that the options and strategies developed in the plan shall provide for achieving energy independence from foreign sources of energy, as defined in the Act, by the year 2025.

The Iowa Power Fund shall be used to further the goals of increasing the research, development, production, and use of biofuels and other sources of renewable energy, improve energy efficiency, and reduce greenhouse gas emissions, and shall encourage, support, and provide for research, development, commercialization, and the implementation of energy technologies and practices intended to reduce the state's dependence on foreign sources of energy and fossil fuels.

Moneys appropriated to the fund or otherwise deposited into the fund shall be used to provide financial assistance to entities in this state conducting business, research, or programs to accelerate research and development, knowledge transfer, technology innovation, and improve economic competitiveness, and to increase the demand for and educate the public about technologies and approaches, all in furtherance of the goals established for the fund. Eligibility criteria for grants or loans from the fund, to be established by the director, are set forth.

The director shall promote utilization across the state of the results of research, development, and commercialization activities receiving distributions from the Iowa Power Fund, and is authorized to negotiate provisions with fund applicants addressing issues relating to income generated from resulting patents, trademarks, licenses, or royalties.

The Act authorizes the Iowa Power Fund Board, with the assistance of the Office of Energy Independence and other appropriate state agencies, to provide financial incentives and adopt necessary rules for biomass, biorefinery, renewable energy, and energy efficiency projects. The incentives and rules must be primarily focused upon research, development, commercialization, and market development in connection with products from biorefineriesand renewable energy products, and additionally upon implementation of technologies and practices that improve energy efficiency and public education efforts relating to energy efficiency projects. The Act authorizes the board, office, and other state agencies to cooperate with federal agencies and participate in federal biomass programs.

The Act additionally modifies provisions of state law to facilitate assistance from the DNR with the preparation of the Iowa Energy Independence Plan. Educational programs and assessments of consumers' needs for information that are conducted pursuant to energy efficiency programs offered by electric and gas public utilities pursuant to Code Section 476.6 need not be cost-effective. Energy efficiency programs offered by rate-regulated gas and electric utilities are subject to approval by the Iowa Utilities Board.

The Iowa Utilities Board is directed to establish two energy efficiency studies, one related to energy efficiency plans and programs offered by gas and electric utilities pursuant to Code

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Section 476.6, and one related to consumer knowledge of energy use and energy efficiency and methods for increasing such knowledge and reducing consumer energy utilization.

Submitted as:IowaHF 918 (enrolled version) Status: Enacted into law in 2007.

Comment:

Wednesday, May 23, 2007Governor Culver Signs Historic Power Fund Into LawGovernor signs Power Fund policy in Ames; signs Power Fund appropriations in Cedar Falls

(Des Moines) Today, Governor Chet Culver declared, “Our 21st Century Iowa Expedition starts now!” and signed the historic $100 million Iowa Power Fund into law.

The Governor signed the Power Fund Policy Bill (HF 918) in the Food Sciences Building at Iowa State University in Ames. Later this afternoon, the Governor signed the Power Fund Appropriations bill (HF 927) in the Center for Energy & Environment Education at the University of Northern Iowa in Cedar Falls.

“Today, I believe, is the time for Iowa to take the lead in the race to become the energy capital of the world,” said Governor Culver. “The Power Fund is an exciting, forward-thinking plan that will coordinate our efforts as we explore our new energy frontier. By signing the Power Fund into law, we can create the jobs of the future in Iowa that will keep our kids at home where they belong. I believe the Power Fund is one of the most important pieces of legislation the Iowa legislature has passed in recent history, and I commend them for their efforts.”

The goal of the Power Fund is to invest in cutting edge research and development that is required in the new energy economy. This will create the jobs of the future and work to wean ourselves off foreign oil. More specifics on the Iowa Power Fund are below:

THE IOWA POWER FUND (HF 918):

Establishes the Office of Energy Independence. The Director of the Office of Energy Independence is appointed by the Governor. This person will, among other things: 1) Coordinate administration of the Fund; 2) Coordinate existing state and Federal energy policy programs; 3) Pursue new research investment funds from public and private sources; 4) Establish renewable energy performance measures; 5) Develop an Iowa Energy Independence plan.

WHO CAN APPLY?

Anyone working to research, develop, commercialize and implement new ways to wean ourselves off foreign oil through: 1) New types of renewable energy; 2) Emerging biofuels such as cellulosic ethanol; 3) Energy efficiency.

POWER FUND DUE DILIGENCE COMMITTEE

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Will consist of 7 members. These individuals will review recommendations that come before the Power Fund Board: Office of Energy Independence appointee with business expertise; Regents representative; DED representative; Iowa Energy Center representative; DED biotechnology commercialization representative; 2 members of the Power Fund Board.

POWER FUND BOARD

Will be made up of 11 members: IUB Chair or designee; DED Director or designee; DNR Director or designee; Secretary of Agriculture or designee; 7 appointees by the Governor (3-year terms; must be confirmed by Senate); In addition, there are 7 ex-officio members representing legislature, Regents, IA Association of Community College Presidents, and IA Association of Independent Colleges and Universities.

ESTABLISHES IOWA ENERGY INDEPENDENCE PLAN:

A Plan shall be developed by the Director of the Office of Energy Independence with the assistance of DNR and with public and private partners selected by the director. The plan shall provide options and strategies for reducing Iowa’s consumption of energy, dependence on foreign sources of energy, use of fossil fuels, and greenhouse gas emissions. This plan shall provide for achieving independence from foreign sources by 2025. The plan shall be submitted to the Governor and General Assembly by December 14, 2007.

ESTABLISHES ENERGY EFFICIENCY STUDY:

The Iowa Utilities Board (IUB) shall conduct a study of energy efficiency plans and programs offered by all natural gas and electric utilities to determine the status and effectiveness of such programs. Results of the study should be made to the General Assembly by January 1, 2008.

Disposition:







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03-28ES-12 Wind or Solar Energy Systems Tax Credit LA

This Act provides an individual income tax credit for the installation of a wind or solar energy system which may be carried forward for 10 tax years.

Submitted as:LouisianaAct 371 of 2007Status: Enacted into law in 2007.

Disposition:







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03-28ES-13 Nuclear Power Plants, Siting Permits, Property Tax Exemptions KS

This Act creates a property tax exemption for any new or expanded nuclear generation facility property. The property tax exemption applies from the time of purchase or commencement of construction through ten years after the completion of the new facility or expansion project. In order to qualify for the exemption, the construction must begin after December 31, 2006, and it must be within three miles of an existing nuclear reactor. For an expansion project, the capacity of the nuclear generation facility must be increased by at least 10.0 percent. This legislation removes the plant siting requirements for the construction of electric generation facilities, if the construction is within the three mile area surrounding an existing nuclear facility in the state.

The Department of Revenue indicates that the exemption in this Act would include land that may be purchased to construct a nuclear generation facility. If land that is currently on the tax rolls is purchased for the construction or expansion of a nuclear generation facility, then there would be a reduction in revenue during the exemption period for the statewide school levy and the state building levy. If no new land is purchased, then state revenues would not be affected, as the bill would exempt property that is not currently being taxed. The agency indicates that it is unable to estimate the potential fiscal effect on state revenue, because it does not know how much land would be purchased for the construction or expansion of a nuclear power generation facility.

Submitted as:KansasHB 2038 (Enrolled version)Status: Enacted into law in 2007.

Disposition:







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03-28ES-14 Lignite Development AR

This Act establishes a program at a university to: examine the feasibility of the use of lignite as a potential energy source; explore and utilize lignite as an energy resource including without limitation a

synfuels-based research program; develop public and private partnerships with other entities to develop the untapped

energy resource of lignite to stimulate the state’s economy; and develop practical applications for the use of lignite resources as an alternative

energy source.

Submitted as:ArkansasAct 641 of 2007Status: Enacted into law in 2007.

Disposition:







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03-28ES-15 Sustainable Energy Utility DE

This Act creates the Delaware Sustainable Energy Utility (SEU), a competitively selected nonprofit under contract to the Delaware Energy Office, to coordinate and promote the sustainable use of energy in Delaware. The SEU will use competitive markets and leveraged private-financing to deliver cost-effective end-use energy services that allow Delawareans to save 30% of their annual energy usage. The SEU will coordinate services that target residential, commercial, industrial, and transportation energy end-users in all energy markets, including electricity, heating fuels, green buildings, clean vehicles, customer-sited renewable energy, and affordable energy. The SEU will serve as a comprehensive statewide information clearinghouse, or the “one-stop-shop” for sustainable energy services in Delaware. The SEU will use competitively selected Implementation Contractors to deliver services.

This Act creates a Fiscal Agent to serve, under contract to the Energy Office, as the SEU’s “treasury.” The Act also creates an Oversight Board to ensure that the SEU meets responsibilities and performance targets enumerated in its contract with the Energy Office.

This Act creates initial performance targets for the SEU as well as evaluation and monitoring mechanisms to ensure that SEU energy savings are verifiable. The SEU may receive performance incentives such that if it exceeds program targets by 120% it will receive a bonus, and if it achieves less than 80% of program targets it will be penalized.

This Act gives the Delaware Energy Office, on behalf of the SEU, the authority to raise a series of special purpose tax-exempt bonds with a total value capped of $30 million between 2007 and 2015. Any such bonds may only be used to fund SEU contractors and programs. The State of Delaware will not be liable for repayment of any such bonds.

Submitted as:DelawareSB 18 Status: Jun 21, 2007 - SS 1 for SB 18 - Passed by House of Representatives. May 10, 2007 - SS 1 for SB 18 - Passed by Senate.

Disposition:







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03-28ES-16 Renewable Diesel Standards CA

This bill would require at least 2% of all diesel fuel sold or offered for sale in the state for use in internal combustion engines to contain renewable diesel fuel, as defined, no later than one year after a specified determination is made by the state board, and, no later than 2 years after the implementation of the 2% standard, would require at least 5% of all diesel fuel sold or offered for sale in the state for use in internal combustion engines to contain renewable diesel fuel. The bill would require the state board to, if necessary, adopt regulations to meet these standards. The bill would also permit the State Energy Resources Conservation and Development Commission to temporarily suspend those standards if fuel supplies are shown to be inadequate, as provided.

Sumbitted as:CaliforniaSB 140 Status: TYPE OF BILL : Active Non-Urgency Non-Appropriations Majority Vote Required State-Mandated Local Program Fiscal Non-Tax Levy

LAST HIST. ACT. DATE: 07/16/2007LAST HIST. ACTION : From committee: Do pass, but first be re-referred to

Com. on APPR. (Ayes 6. Noes 3.) Re-referred toCom. on APPR. Received July 13 pursuant to Joint Rule61(a)(10).

Disposition:






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03-28ES-17 Power Agency Act Statement IL

This Act creates the Illinois Power Agency with the following goals::(A) Develop electricity procurement plans to ensure adequate, reliable, affordable,

efficient, and environmentally sustainable electric service at the lowest total cost over time, taking into account any benefits of price stability, for electric utilities that on December 31, 2005 provided electric service to at least 100,000 customers in Illinois. The procurement plan shall be updated on an annual basis and shall include renewable energy resources sufficient to achieve the standards specified in this Act.

(B) Conduct competitive procurement processes to procure the supply resources identified in the procurement plan.

C) Develop electric generation and co-generation facilities that use indigenous coal or renewable resources, or both, financed with bonds issued by the Illinois Finance Authority.

D) Supply electricity from the Agency's facilities at cost to one or more of the following: municipal electric systems, governmental aggregators, or rural electric cooperatives in Illinois.

The Act provides discounts, refunds, and other relief totaling $1 billion for residential, nonprofit and small business consumers electricity rates.

The Act replaces the state’s reverse auction process concerning power. It encourages using new clean-coal technology that captures carbon, building renewable energy facilities, and building plants that use Illinois coal to produce electricity. The Act also encourages aggregated purchasing by municipalities on behalf of residents.

This Act prohibits power shut-offs for all-electric customers through Sept. 2007 and no shut-offs for all-electric customers in any year between Dec. 1 – March 31. It establishes certain Energy Efficiency Standards for utilities and financial penalties for failure to meet targets under the standards.

The Act directs that it is the policy of the state that electric utilities are required to use cost-effective energy efficiency and demand-response measures to reduce delivery load. It directs electric utilities to implement cost-effective energy efficiency measures to meet the following incremental annual energy savings goals:

(1) 0.2% of energy delivered in the year commencing June 1, 2008;(2) 0.4% of energy delivered in the year commencing June 1, 2009;(3) 0.6% of energy delivered in the year commencing June 1, 2010;(4) 0.8% of energy delivered in the year commencing June 1, 2011;(5) 1% of energy delivered in the year commencing June 1, 2012;(6) 1.4% of energy delivered in the year commencing June 1, 2013;(7) 1.8% of energy delivered in the year commencing June 1, 2014; and(8) 2% of energy delivered in the year commencing June 1, 2015 and each year thereafter.The Act permits utilities providing approved energy efficiency and demand-response

measures in the state to recover costs of those measures through an automatic adjustment clause tariff filed with and approved by the state public service commission. The tariff shall be established outside the context of a general rate case.

Submitted asIllinoisSB 1592Status: Enacted into law as Public Act 095-0481 in 2007.

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Comment: This bill is not in the bill packet because it is 210 pages.

NEWS ... from the Senate President, House Speaker & Attorney General FOR IMMEDIATE RELEASE July 23, 2007 President Jones, Speaker Madigan and Attorney General Madigan Discuss New Electric Rate Relief Package

PEORIA, IL --- Illinois officials Monday formally announced the details of an electric rate relief and reform package that will provide refunds and credits totaling $1 billion to consumers who were hard hit by increases after 10 years of frozen rates. In addition, a new agency will develop procurement plans and purchase electricity for utilities to ensure adequate, affordable, efficient and environmentally sustainable electric service for Illinois consumers.

The results of the negotiated settlement were presented in a series of news conferences throughout downstate Illinois led by Senate President Emil Jones, Jr., House Speaker Michael J. Madigan and Attorney General Lisa Madigan.

“After months of intense and often heated discussions with utility companies, generators, legislators, and the Attorney General’s office, we can declare a victory for consumers,” Senate President Emil Jones said. “That victory includes the continuation of reliable service in homes and businesses throughout Illinois and true rate relief.”

“The compromise represents the end of a long debate and implements a series of reforms that should benefit consumers in every region of the state,” Speaker Madigan said.

“This settlement includes significant rate relief for hard hit consumers, as well as long-term reforms that should help us protect Illinois consumers from future electric rate shocks,” Attorney General Madigan said.

The agreement will lead to legislation that includes: refunds and other relief totaling $1 billion for consumers formation of the Illinois Power Agency to purchase electricity on behalf of utility

customers and to create a public power system that sells electricity at cost to municipalities and rural electric coops

incentives to produce electricity from renewable resources and Illinois coal at new, environmentally-friendly plants

For additional details, please see the attached one-page fact sheet.For more information, please contact: Cindy Davidsmeyer at (217) 491-2023 for President

Jones; Steve Brown at (847) 922-5361 for Speaker Madigan; and Robyn Ziegler at (312) 814-3118 for Attorney General Madigan. General inquiries can be directed to Michael Weir in Springfield throughout the day at (217) 782-4040.

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RATE RELIEF & REFORM PACKAGE Fact Sheet

► Customer Rate Relief—residential, nonprofit and small business customers · $1 billion goes to rate relief for Illinois customers—½ in ComEd, ½ in Ameren service territories Ameren: discounts on 2007 bills ranging from 40 – 70% off the increase from 2006 rates

· additional credits for “all-electric” (electric space heating) customers · customers receive a lump-sum amount to reflect discounts going back to January 2007 and credits going forward until 2010, to phase in market rates · based on usage—the more electricity you use, the more you paid, the greater your rebate going backward and your credit going forward · most customers will receive rebate checks, those more than 60 days in arrears will have their rebates credited to their accounts · Ameren will waive all late charges for customers from January to September 2007 · targeted programs for seniors, LIHEAP, small businesses

ComEd: discounts on 2007 bills approximately 45% off the increase from 2006 · customers will receive a lump-sum amount, credited on their bills, to reflect discounts going back to January 2007 and credits going forward until 2010, to phase in market rates · discounts are based on usage so they are proportional · targeted programs for summer cooling assistance, seniors, LIHEAP, small business

► Illinois Power Agency (IPA) · replaces reverse auction · independent agency, not utilities, control purchase of electricity · IPA can build plants, or enter into agreements with private or governmental entities, to build plants and sell electricity at cost to governmental aggregators, municipalities, co-ops · preference for (1) new clean-coal technology that captures carbon; (2) renewable energy facilities; and (3) plants that use Illinois coal · construction of Illinois plants, using Illinois coal and indigenous renewable resources, means jobs · encourages aggregated purchasing by municipalities on behalf of residents

► Shut-offs: no shut-offs for all-electric customers through Sept. 2007; no shut-offs for all-electric customers in any year between Dec. 1 – March 31 ► Condo Rate Relief: Condo “common areas” will be charged at no higher than residential rate ► Renewable Portfolio Standard: IPA runs—mandated targets—cap on rate increase over previous year of 0.5% ► Energy Efficiency Standards: run by utilities and DCEO—financial penalties for failure to meet targets ► Utilities may build generation: (step toward re-integration) and sell into procurement process if least-cost alternative ► Declaration of Competitiveness: increases standard (33% of customers served by 3 or more ARES’s)

· larger business customers (usage > 400 kw) automatically declared competitive (majority have already left & would be declared competitive by ICC, anyway); utilities may seek to have customers with usage over 100 kw and under 400 kw declared competitive through expedited ICC process · ComEd customers over 100 kw but less than 400 kw and Ameren customers over 400 kw but less than 1 MW may continue to take service from utility through May 2010; ComEd customers over 400 kw and Ameren customers over 1 MW may continue to take service from utility through May 2008 · no residential, nonprofit or small business customer with demand < 100 kw may be declared competitive before 2012

► Ameren and ComEd may seek expedited ICC approval (continues process put in place in 1997) to merge, reorganize, or transfer assets

· terms and conditions of employment and, collective bargaining rights of employees are protected · cannot affect safety, reliability of service, or increase rates

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03-28ES-18 Incentives for Energy Independence Statement KY

This Act: provides a sales tax credit for energy-efficiency projects; expands a coal tax credit to alternative fuel facilities and gasification facilities; increases a cap for a biodiesel credit, establishes tax credits for ethanol and cellulosic ethanol; provides administrative direction for the ethanol credits; provides for a transfer of cap among the ethanol credits; encourages the state Finance and Administration Cabinet to use the LEED or

Green Globe rating systems and to incorporate ENERGY STAR products into state procurements;

encourages a review of utility usage in state-owned property; requires a strategy for a cleaner state vehicle fleet; establishes a Governor's Office of Energy Policy; allow the Governor's Office of Energy Policy to expend state funds for preliminary

work on sites; establishes the Kentucky Alternative Fuel and Renewable Energy Program and

fund; directs the Kentucky Legislative Research Commission staff to conduct a study on

energy-efficient building and design practices and a study on carbon dioxide management; establishes an energy technology career track program in schools; makes recommendations about creating a center for renewable energy research and

environmental stewardship; appropriates money to the Kentucky Geological Survey for carbon sequestration

and enhanced oil recovery research; appropriates money to a state Center for Applied Energy Research for alternative

fuel production technology research; appropriate money to the Kentucky Department of Education for an energy

technology career track program; and appropriates money to establish an energy projects economic development bond

pool.

Submitted as:KentuckyHB 1Status: Enacted into law in 2007.

Comment: This bill is not in the bill packet because it is 105 pages.

KENTUCKY VOICESEnergy legislation good for state's futureBy Jody Richards

Last month, the future of Kentucky's energy policy was unclear. Gov. Ernie Fletcher had convened the General Assembly to pass a laundry list of items that were inappropriate for

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consideration in an extraordinary session. The House adjourned, insisting the session be limited to truly urgent matters that could not wait until January.

The House led the way to an agreement with Fletcher and the Senate to focus the session on one critical issue: energy independence. According to a recent poll commissioned by the Lane Report, most Kentuckians who expressed an opinion on the matter were pleased the House adjourned the scattershot session so the legislature could focus on the challenges of energy policy.

The result of these focused efforts was a one-week session during which the legislature passed House Bill 1, a visionary framework for energy policy in Kentucky. The bill, which overwhelmingly passed both chambers, will pioneer new frontiers in jobs and technology for Kentucky, while creating opportunities for private companies and state government to be more energy efficient.

Kentucky's bold new energy strategy is not unlike other landmark initiatives, such as education reform. It will move our state forward in countless innovative ways. Such significant legislation will always attract critics, but just as energy is an evolving industry, HB 1 is an evolving policy and will assuredly be updated and refined as warranted.

To understand the importance of this move, one has to look at the issue with a statewide historical perspective. For decades, traditional economic development incentives have attracted manufacturing jobs to Kentucky. Those incentives have been successful and will remain in place.

But luring a new type of industry, one that thrives in coal-dependent regions, requires a new, multi-faceted approach.

That's why the bill offers incentives for everything from coal gasification, ethanol and biofuels production to wind, solar and hydropower. Anticipating strict federal carbon dioxide mandates, the bill requires facilities to make plans to manage the carbon that will be released by their operation.

Our energy policy also encourages the hiring of Kentucky residents; forgives student loans of young people who obtain science and engineering degrees necessary to fill the jobs; advances research and development at our universities; and promotes the protection of our environment in the process.

And it does so in a manner that protects Kentucky's investment. HB 1 looks to the future of the energy industry by enabling cutting-edge research. It sets aside $7 million for the Kentucky Geological Survey and the Center for Applied Energy Research to perfect carbon dioxide capture management.

Contrary to some news reports, this bill is not about attracting one project or one company. It's about attracting a new industry to Kentucky by providing a framework that can be tailored to different types of investments.

Tax incentives must be approved by the Economic Development Cabinet and the Kentucky Economic Development Finance Authority. Any incentives received up front will be tied to hiring Kentucky workers, and funds will be recouped once the plant is operating.

Recognizing that government should lead by example, the bill contains provisions to begin replacing the state auto fleet with hybrids and other alternative-fuel-powered vehicles. The legislation also begins incorporating energy efficient design standards in state buildings and inclusion of more "green" products in state office procurements.

Manufacturers are also eligible for tax rebates if they reduce energy consumption by 15 percent after the replacement of machinery.

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It is imperative that the United States begin ending its reliance on foreign oil. Political instability in oil-producing nations and its potential for funding terrorism play into the uncertainties of staying the course on oil consumption.

This legislation allows Kentucky to be at the forefront of promoting energy independence, but to do so without protecting our environment would be at our own peril.

In addition to providing $5 million for research and requiring carbon-capture readiness of any new alternative-fuel facility seeking incentives, the legislation creates the Center for Renewable Energy Research and Environmental Stewardship. This collaborative effort will bring together various public and private interests to promote energy efficiency and protection of our most hallowed resource: our planet.

Source: Lexington Herald Leader, August 29, 2007.This is merely a starting point. Future legislative sessions will continue improving on and expanding our policy as Kentucky leads the nation in the inevitable shift toward alternative and renewable fuels.

--------------------------------------------------------------------------------State Rep. Jody Richards is speaker of the House. This commentary was also signed by four other Democratic House leaders: Speaker Pro Tem Larry Clark, Majority Floor Leader Rocky Adkins, Majority Caucus Chairman Charlie Hoffman and Majority Whip Rob Wilke

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ENERGY CONSERVATIONNew Suggested State Legislation Docket Items

03-28ESC-01 Promote Municipal Energy Conservation ME

This Act establishes funding to provide grants to municipalities to identify cost-effective energy conservation measures and improvements to municipal buildings and municipal vehicle fleets to achieve energy savings. The bill provides for grants of up to $40,000 for 5 to 10 municipalities annually. The bill directs the state Municipal Bond Bank to administer the grants and directs the bank to develop criteria for the grants in consultation with the Public Utilities Commission and the Executive Department, State Planning Office. The bill requires that conservation measures and improvements in municipal buildings identified with grant funds be identified through a comprehensive energy audit performed by a licensed professional engineer. The bill requires the bank to report on the program every 2 years to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters.

Submitted as:MaineLD 645Status: Enacted into law in 2007.

Disposition:







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03-28ESC-02 Energy Cities IA

According to the Sierra Club, this Act “Provides for the establishment by the department of natural resources of an energy city designation. The objective of the designation shall be to encourage cities to develop and implement innovative energy efficiency programs. To qualify for designation as an energy city, the bill provides that a city shall submit an application including the submission of community-based plans for energy reduction projects, energy-efficient building construction and rehabilitation, and alternative or renewable energy production; efforts to secure local funding for those plans; involvement of local schools and community organizations; any existing or proposed ordinances encouraging energy efficiency and conservation, recycling efforts, and energy-efficient building code provisions and enforcement; and the organization of an energy day observance and proclamation with a commemorating event and awards ceremony for leading energy-efficient community businesses, groups, schools, or individuals. The bill provides that the department shall establish designation criteria by rule, and shall identify and publicize state grant and loan programs relating to energy efficiency. Additionally, the department is directed to develop a procedure for coordinating with other state agencies preferences given in the awarding of grants or making of loans to energy city designated applicants.”

Submitted as:IowaHF 773Status: Enacted into law in 2007.

Disposition:







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03-28ESC-03A Appliance and Equipment Energy Efficiency Standards NY

New York Article 16, Sections 102 through 16-108 was established by Appliance and Equipment Energy Efficiency Standards Act of 2005. This Article sets energy efficiency standards for items such as ceiling fans and ceiling light kits; furnace air handlers; commercial washing machines; commercial refrigerators, freezers and icemakers; torchiere lighting fixtures; unit heaters; reflector lamps; large packaged air-conditioning equipment, and other commercial and household items.

This law directs that no person shall sell, offer for sale, or install in the state any new product of the types enumerated in the Article (a) the product meets minimum energy performance standards adopted pursuant to this Article upon the effective date of such standards; and, if required by regulations promulgated pursuant to this Article (b) the manufacturer of such product certifies that the product meets said minimum energy performance standards.

Submitted as:New York Article 16, Sections 102 through 108Status: Established by legislation in 2005.

03-28ESC-03B Appliance and Equipment Energy Efficiency Standards AZ

The office of Energy Efficiency and Renewable Energy at the U.S. Department of Energy (DOE) sets energy efficiency standards for appliances including, clothes washers, clothes dryers, furnaces, pool heaters, water heaters, and refrigerators. Currently the DOE does not outline standards for the 15 appliances and related equipment specified in HB 2390 and, therefore, individual States can set energy efficiency standards. California, Connecticut, and Maryland have adopted minimum energy efficiency standards.

This Act establishes the minimum energy efficiency requirements for 12 specific appliances and supplies, including four that must meet the California minimum requirements. Specifically, this Act:

provides pertinent definitions for specific appliances and related equipment; specifies that the provisions apply to the products sold, offered for sale or installed

in this state; states that the provisions do not apply to products that are:

1. manufactured in this state but sold outside the state; 2. manufactured out-of-state and sold at wholesale in-state, for final sale and

installation outside the state; 3. installed in mobile homes at the time of construction;. and4. designed for installation and use in recreational vehicles. 5. located in a laundry facility that is a part of an apartment complex or

mobile home park;

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mandates that the following products’ standards meet the energy efficiency requirements as adopted by the California Legislature;

1. automatic commercial icemakers;2. commercial clothes washers;3. commercial refrigerators, freezers and refrigerator freezers, except

pulldown refrigerators with transparent doors may meet a requirement five percent lower than California regulations; and

4. single voltage external AC to DC power supplies; specifies that the energy efficient standards for the outlined products go into effect

January 1, 2008 unless the product is a commercial refrigerator, freezer, or refrigerator freezer or large packaged air conditioning equipment. For these products the date is January 1, 2010;

states that a person is guilty of deceptive trade practice if the person knowingly sells or installs an appliance that does not meet the applicable energy efficiency standards outlined in this bill;

allows the Attorney General to enforce the provisions of this bill and assess a civil penalty of not more than $500 per violation;

stipulates that the monies collected as civil penalties be deposited into the General Fund;

requires the Department of Commerce Energy Office to conduct a comparative review of the standards outlined in the bill and those of other states. The findings and recommendations shall be reported to the Speaker of the House, President of the Senate, and the Director of the Arizona State Library, Archives and Public Records; and

stipulates that manufacturers must provide written certification to the Department of Commerce stating that products sold meet efficiency standards outlined in this bill except for products already registered and published on a database in a state with like standards.

Submitted as:ArizonaChapter 226 of 2005Status: Enacted into law in 2005.

Comment:

ALLIANCE TO SAVE ENERGYState Energy Efficiency Index

Arizona - Arizona passed energy efficiency standards for twelve appliances and supplies, including four that must meet the California standards, on April 25, 2005. The standards take effect January 1, 2008.Click here for more information.http://www.azleg.state.az.us/DocumentsForBill.asp?Bill_Number=2390

California - California passed legislation in 2002 creating energy efficiency standards for 11 different products. The California Energy Commission established energy efficiency standards for 19 other products on December 15, 2004. The new standards will take effect in January, 2006 and

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will apply to a wide range of appliances including hot tubs, external power supplies, swimming pool pumps, and general service incandescent light bulbs.Click here for more information.http://www.energy.ca.gov/appliances/index.html

Connecticut - In May 2004, Connecticut passed legislation establishing minimum energy efficiency standards for eight products.

Hawaii - Although there are currently no state energy-efficiency appliance standards in Hawaii, the state government does require the use of energy-efficient appliances and equipment in state facilities.Click here for more information. http://www.capitol.hawaii.gov/hrscurrent/Vol03_Ch0121-0200D/HRS0196/HRS_0196-0011.htm

Maryland - In January 2004, a bill regulating energy efficiency standards for appliances was enacted. Both the Maryland Senate and the House of Delegates voted to override Governor Ehrlich’s (R) veto of the bill. The law establishes minimum energy efficiency standards for nine types of appliances, including ceiling fans and commercial clothes washers.Click here for more information.http://mlis.state.md.us/2003rs/billfile/hb0747.htm

Massachusetts - Massachusetts has established minimum energy-efficiency appliance standards for five appliances.Click here for more information. http://www.mass.gov/legis/laws/mgl/25b-1.htm

Minnesota - Minnesota has established minimum energy-efficiency standards for commercial heating, air conditioning, and ventilating equipment, motors, and fluorescent lamp ballasts.Click here for more information. http://www.revisor.leg.state.mn.us/arule/7676/

New Jersey - New Jersey passed legislation in March 2005 which sets energy efficiency standards on eight appliances.Click here for more information.http://www.njleg.state.nj.us/2004/Bills/PL05/42_.HTM

New York - A bill passed in July of 2005 sets minimum energy-efficiency standards for thirteen appliances.

Oregon - A law passed in July, 2005 establishing energy efficiency standards for eleven products, starting January, 2006.Click here for more information.http://www.leg.state.or.us/05reg/measures/hb3300.dir/hb3363.en.html

Rhode Island - A law passed in June, 2005 establishing minimum energy efficiency standards for thirteen appliances.

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Click here for more information.http://www.rilin.state.ri.us/Billtext/BillText05/HouseText05/H5307B.pdf

Washington - In May, 2005 Washington passed legislation creating state energy efficiency standards for twelve appliances, including commercial clothes washers and commercial refrigerators and freezers. Click here for more information. http://www.leg.wa.gov/wsladm/billinfo1/dspBillSummary.cfm?billnumber=1062 Analysis of the financial, energy and water benefits of these standards in Washington is provided in Section II of the following report: http://www.cted.wa.gov/_cted/documents/ID_1872_Publications.pdf. Legislation passed in April 2006 set minimum efficiency standards for eight additional types of commercial appliances, heating/cooling and lighting equipment sold within the state.Click here for more information. http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6840&year=2006

Disposition: 03-28ESC-03A







Disposition: 03-28ESC-03B







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03-28ESC-04 Luminaires at State Agencies CT

This Act directs that no state funds shall be used to install or replace a permanent outdoor luminaire for lighting on the grounds of any state building or facility unless:

the luminaire is designed to maximize energy conservation and to minimize light pollution, glare and light trespass,

the luminaire’s illuminance is equal to the minimum illuminance adequate for the intended purpose of the lighting, and

for a luminaire with a rated output of more than one thousand eight hundred lumens, such luminaire is a restricted uplight luminaire.

The Act exempts state prisons.

Submitted as:ConnecticutPublic Act No. 06-86Status: Enacted into law in 2006.

Disposition:







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03-28ESC-05 Incentives for Installation of Renewable Energy Fixtures CO

The bill allows a county, city and county, or municipality to offer either a property tax or sales tax credit or rebate to residential or commercial property owners who install a renewable energy fixture on their property. It defines a renewable energy fixture as any fixture, product, system, device, or group of devices that produce electricity from renewable energy sources, including photovoltaic, solar thermal, small wind, biomass, and geothermal systems.


Disposition:







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03-28ESC-06 Energy Efficiency and Renewable Energy Bonding NM

This Act establishes up to $20 million in bonds to finance energy efficiency and renewable energy improvements in state government and school district buildings. The bonds are exempt from taxation by the state. Any type of renewable energy system and most energy efficiency measures, including energy recovery and combined heat and power systems, are eligible for funding. Projects financed with the bonds will be paid back to the bonding authority using the savings on energy bills. A state energy efficiency plan will be developed by FY 2010 to identify the maximum on-site renewable energy generation possible (in combination with energy efficiency measures) to achieve a revenue-neutral plan.

Submitted as:New MexicoHB 32 (enrolled version)Status: Enacted into law in 2006.

Disposition:







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03-28ESC-07 Replacing Incandescent Bulbs in State Buildings NJ

This bill requires the Director of the Division of Purchase and Property in the Department of the Treasury, the Director of the Division of Property Management and Construction in the Department of the Treasury, and any State agency having authority to contract for the purchase of goods or services, within three years after the date of enactment of this bill into law, to replace all incandescent light bulbs used in State-owned buildings with compact fluorescent light bulbs whenever possible. Commencing three years after the date of enactment of this bill into law, the bill requires the purchase of compact fluorescent light bulbs for use in State-owned buildings to the maximum extent practicable.

This bill requires the Board of Public Utilities, within 30 days after the date of enactment of this bill into law, to undertake a public education and awareness campaign to inform businesses and homeowners of the benefits of compact fluorescent light bulbs.

Submitted as:New Jersey Assembly No. 3983 (enrolled version)Status:3/15/2007 Passed by the Assembly (78-1-0)6/21/2007 Passed Senate (Passed Both Houses) (37-0)

Disposition:







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03-28ESC-08 Tax Credits for Installing Alternative Energy Devices OR

This Act: expands and establishes new income tax credits; changes the corporate apportionment formula and exempts certain property from

taxation; expands the residential energy tax credit to taxpayers who purchase large solar

electric systems; increases the limit on the residential energy tax credit per solar electric system to

$3 per watt of installed output, up to 2,000 watts ($6,000); limits the total amount of the tax credit for the electric solar systems to not exceed

50% of the installed cost of the solar electric system; retains the current law annual limit on the residential energy tax credit of $1,500; applies to tax credits beginning tax year 2006; places a 10 year sunset on the tax credits; provides a corporate sales throwback exemption for sales that are shipped from a

public warehouse; narrows the scope of the sales throwback exemption to certain taxpayers with sole

activity in the state being storage of goods in a public warehouse or storing goods in a public warehouse and the presence of employees within this state solely for purposes of soliciting sales;

allows the Department of Revenue the ability to determine if a warehouse meets the definition of ‘public warehouse’ and is not used for tax avoidance purposes;

applies to tax years beginning after January 1, 2006; increases the maximum amount of the research and development tax credit to $2

million beginning January 1, 2006; makes the state earned income tax credit refundable beginning January 1, 2006; increases the percentage of the federal earned income tax credit to 6% beginning

January 1, 2008. places a 5 year sunset, January 1, 2011, on the refundability of the state’s earned income tax credit;

establishes a new personal income tax credit for volunteer emergency medical technicians (EMT) who have at least 20% of their total emergency medical technician services as a volunteer in rural areas service rural areas in the state;

provides a new definition of rural (areas that are at least 25 miles from any city with a population of 30,000 or more) for the new EMT personal income tax credit. Restricts the EMT tax credit to $250;

applies to tax credit certifications made by the Office of Rural Health beginning on or after January 1, 2006;

requires the Office of Rural Health to provide a report, no later than October 1, 2006, to the House and Senate Interim Committees on Revenue. Place a 5 year sunset on the new income tax credit;

changes the date reference for statute pertaining to the definitions of S corporations;

adds a section on who can represent taxpayers in a conference with respect to taxes;

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specifies that the Department of Revenue’s rules describing these individuals be consistent with federal law in effect on December 31, 2004;

changes the definition of “Internal Revenue Code (IRC)” as the federal IRC as amended and in effect on December 31, 2004;

re-establishes the state’s automatic connection to the federal definition of taxable income beginning on or after January 1, 2005;

connects the state definition for qualifying child to the federal definition for purposes of the working family child care and the personal exemption tax credit for a disabled child;

requires personal income taxpayers who claim sales taxes in lieu of income taxes as a deduction on their federal income taxes to add back the sales tax deduction in computing state income taxes;

requires the state to conform to federal law which does not allow a dividend deduction for certain dividends received;

conforms the state’s tax treatment of dividends received from foreign controlled corporations with federal law under the 2004 American Jobs Creation Act as well as in the future;

disconnects Oregon tax law from a provision contained in the 2004 American Jobs Creation Act, the qualified production activities subtraction;

disconnects Oregon tax law from the income exclusion of the federal subsidies for prescription drug plans contained in the 2003 Medicare Prescription Drug Act beginning January 1, 2008;

cancels interest or penalties for taxpayers with tax deficiencies that are attributable to the federal law connection changes in this Act;

specifies that if a refund is due, it will not be paid with interest; allows amended returns for changes in Oregon’s law due to federal tax law

changes for tax years before January 1, 2005; and takes effect 90 days after the end of the legislative session.

Submitted as:OregonSB 31Status: Enacted into law in 2005.

Comment:

According to the Database of State Incentives for Renewables & Efficiency, this Act:

"Enables homeowners and renters who pay Oregon income taxes are eligible for the Residential Energy Tax Credit if they purchase premium-efficiency appliances, heating and cooling systems, duct systems, closed-loop geothermal space or water heating systems, solar water and space heating systems, photovoltaics, wind, fuel cells, and alternative fuel vehicles and charging or fueling systems. Renewable Energy Incentives

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Photovoltaic (PV) systems are eligible for $3 per peak watt with a maximum limit of $6,000, up to 50% of the installed cost. (The maximum credit was increased from $1,500 as a result of SB 31, enacted in September 2005.) However, the amount claimed in any one tax year may not exceed $1,500 or the taxpayer's tax liability, whichever is less. Unused credits may be carried forward for five years.

Solar space and water heating systems, wind systems, and fuel cells are eligible for a credit of 60 cents per kWh saved during the first year, up to $1,500. Spa and pool heating systems are eligible for a tax credit of 15 cents per kWh saved, up to 50 percent of the cost, with a maximum tax credit of $1,500. Closed-loop geothermal systems for space or water heating are eligible for $300 to $900. Energy Efficiency Incentives

Only appliances recognized as premium efficiency by the Oregon Department of Energy are eligible for the tax credit. The Oregon Department of Energy keeps a list of qualifying appliances. The tax credit is the lesser of: (1) the amount listed for qualifying models, or (2) 25% of the net cost of the appliance. Performance-tested duct systems qualify for a tax credit of 25% of the cost of the work, not to exceed $250. The testing must be performed by a contractor certified by the Oregon Department of Energy.

Qualifying air-source heat pump systems are eligible for a tax credit of $300 to $500 when installed by a contractor from the list of certified contractors available from the Oregon Department of Energy.

Qualifying condensing furnaces and boilers are eligible for tax credits of $350 and $225. If the heat pumps and furnaces are connected to a performance-tested duct system, they are eligible for an additional $150 tax credit. Alternative Fuel Vehicles Incentive

Vehicles that run on alternative type of fuels qualify for a tax credit. Examples are electricity, natural gas, methanol, propane and hydrogen. Vehicles must be registered in the state of Oregon to operate on public roadways. An additional tax credit is available for installing a home charging or fueling system. The tax credit is 25 percent of the cost of the vehicle or device, not to exceed $750. The tax credit may be claimed for a vehicle and a charging or fueling system, for a total of $1,500.

This tax credit sunsets on December 31, 2015.”

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Disposition:







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03-28ESC-09 Next Generation Energy MN

The purposes of this Act are to bolster investments in renewable power, increase energy conservation and decrease the state’s contribution to global warming. In addition, the law establishes two overall energy goals for the state: to reduce per capita use of fossil fuels by 15 percent by 2015, and to derive 25 percent of the total energy used in the state from renewable power sources by 2025.

Global warming mitigation

Effective Aug. 1, 2007, the law calls for cutting the state’s greenhouse gas emissions to 15 percent below 2005 base levels by 2015, 30 percent by 2025 and 80 percent by 2050. The law requires several state agencies and a wide array of stakeholders to work together to come up with a “climate change action plan” that will identify and evaluate a broad range of greenhouse gas reduction strategies, assess the potential costs and benefits of the various options, including the potential cost to consumers, and recommend a course of action to the Legislature by Feb. 1, 2008.

The plan must also make recommendations on a proposed cap-and-trade system, whereby a cap would be placed on overall greenhouse gas emissions and power companies assigned “allowances” of emissions that they could trade with one another.

In addition, the law prohibits the construction of any power plants that would produce a net increase in carbon emissions after Aug. 1, 2009. The law states that unless "a comprehensive state law or rule … that directly limits and substantially reduces greenhouse gas emissions" is enacted and is in effect by that date:

no large fossil fuel-fired powerplant can be built in Minnesota; no utility can import electricity from a large fossil fuel-fired powerplant built in

another state that was not operating on Jan. 1, 2007; and no Minnesota utility can purchase electricity from an outstate utility under a

contract that exceeds 50 megawatts for a term of five years.

Energy conservation

The conservation portion of the law, which takes effect July 1, 2007, aims to save Minnesotans money while reducing the environmental impacts of energy consumption. The law contains a five-part conservation and efficiency strategy:

establishing a statewide energy conservation goal of 1.5 percent of annual retail electric and gas sales;

expanding and improving the state’s conservation improvement program; providing research and development and technical assistance to utility companies

through the Department of Commerce; increasing energy efficiency in state buildings; and removing financial disincentives for utility companies to promote energy

conservation by “decoupling” a utility’s revenue from its changes in energy sales.

Community-based energy development

The law also overhauls the state’s Community-Based Energy Development (C-BED) statutes by making a number of changes, including:

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expanding the types of projects that qualify for the program from wind only to include all renewable energy technologies, effective July 1, 2007;

increasing the financial benefits for communities that invest in renewable power by stipulating that at least 51 percent of the gross revenues from any power purchase agreement flow to owners and qualifying local entities;

encouraging utilities to make use of C-BED projects in meeting the state’s renewable energy standard; and

removing a 2.7 cents per kilowatt hour cap on the price utilities pay for energy from C-BED projects.

Other changes made include a statewide study of dispersed generation potential, a study of wind development property agreements and the establishment of a C-BED Advisory Task Force to be appointed by the Legislative Electric Energy Task Force.

Effective July 1, 2007, landlords are required to make sure residential for-rent properties are fitted with weather stripping, caulking, storm windows, and storm doors when any such measure “will result in energy procurement cost savings … that will exceed the cost of implementing that measure.”

Also included in the law is a study to be conducted by the Legislative Electric Energy Task Force on the potential economic and environmental costs of constructing a new nuclear power plant in the state. The study must compare those costs with the costs of constructing a coal power plant fitted with state-of-the-art carbon capture and sequestration technology. A report is due to the Legislature by March 1, 2008. This provision of the law is effective July 1, 2007.


Disposition:







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03-28ESC-10 Solar Energy Technologies in Public Buildings OR

This Act requires that public construction and reconstruction projects dedicate at least 1.5 percent of the total contract price for the use of solar energy technology. This applies to projects that exceed 50 percent of the value of the public building and only on projects where state funds are used either directly or indirectly. The measure directs contracting agencies, prior to entering into a public improvement contract, to prepare a written determination of whether the inclusion of solar energy technology on the project is appropriate. If the contracting agency determines that it is inappropriate, then the amount otherwise used for solar technology would be dedicated to a future public building project in addition to the 1.5 percent required by this measure.

Submitted as:OregonHB 2620 (Enrolled version)Status: Enacted into law as Chapter 310 of 2007.

Disposition:







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03-28ESC-11 Energy Conservation in State Buildings NC

This Act requires new State, university, and community college buildings and major renovations of these buildings to use energy and water efficient construction standards. The bill prohibits the state from acquiring by purchase buildings that did not meet applicable energy efficiency standards at the time of construction or renovation.

The Act Authorizes the Department of Administration to administer a program retrofitting existing state and university buildings with energy conservation measures that have a high return in energy savings and that require no significant expenditure of funds. It requires the Department to conduct energy audits every five years for State, and university buildings and require annual updates of state and university plans to manage utility use.

The bill requires life-cycle cost analysis to be commenced and certified at the schematic design phase of construction or renovation projects and be updated, amended and recertified as needed at later phases.

Submitted as:North CarolinaSB 668 Status: 08/02/2007 [S] Pres. To Gov. 8/3/2007

Disposition:







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03-28ESC-12A Limiting Restrictions on the Installation or Use of Solar Collectors NM

This Act prohibits a county or municipality from restricting the installation of a solar collector except that placement of solar collectors in historic districts may be regulated or restricted by a county or municipality.

The Act directs that a covenant, restriction or condition contained in a deed, contract, security agreement or other instrument, effective after July 1, 1978, affecting the transfer, sale or use of, or an interest in, real property that effectively prohibits the installation or use of a solar collector is void and unenforceable."

Submitted as:New MexicoSB 1031Status: Enacted into law in 2007.

03-28ESC-12B Limiting Restrictions on the Installation or Use of Solar Collectors NC

This Act provides that city ordinances, county ordinances, and deed restrictions, covenants, and other similar agreements cannot prohibit or have the effect of prohibiting the installation of solar collectors not facing public access or common areas on detached single-family residences.

Submitted as:North CarolinaSession Law 2007-279 Status: Enacted into law in 2007.

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Disposition: 03-28ESC-12A







Disposition: 03-28ESC-12B







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