clean energy policy jesse kharbanda – executive director, hoosier environmental council ray...
TRANSCRIPT
Clean Energy Policy
Jesse Kharbanda –
Executive Director, Hoosier Environmental Council
Ray McCormick – Farmer & Vice President for the Indiana Association of
Soil and Water Conservation Districts
Tom Conway – Regional Program Manager for the Blue
Green Alliance
The Landscape of Energy The Landscape of Energy Issues in 2011Issues in 2011
Jesse Kharbanda
Executive Director
Hoosier Environmental Council
November 6, 2010
In Montana's Glacier National Park only 27 of the 150 glaciers which existed in 1910 remain today and they will be gone in only 20 years.
Unfortunately the fight for Unfortunately the fight for clean energy won't be easy clean energy won't be easy
at all...at all...• Status Quo & Stubborn Myths
– “Nuclear is cheap”
– “We can't run our businesses on wind power”
– “We're out of power!”
• Old School Economic Development
– Don't worry about the environment
– Or small businesses...
Our GoalsOur Goals
• Back policies that definitively achieve a net benefit for Hoosiers
• Oppose policies that don't...
Making an Impact this Making an Impact this Session? Really??Session? Really??
• Two positive opportunities:
– Property Assessed Clean Energy (PACE) Bonds
– Renewable Electricity Standard (RES)
• And also a need to be very cautious:
– Trackers
– CWIP
PACE Legislation
Opportunity #1Opportunity #1
As energy saving, cost-minded, environmentally conscious
homeowners & businesspeople, we dream of..
Using clean energy...Using clean energy...
General Barriers to General Barriers to On Site Clean EnergyOn Site Clean Energy
• Technical assistance
• Interconnection standards
• Net metering
• Money
• Hard Knocks
PACE: Solves Key ProblemsPACE: Solves Key Problems
• Property Assessed Clean Energy
• Funds raised from bond sale used to give loans to pay for upfront capital
• Borrowed funds stay with the property
Most Appealing AspectMost Appealing Aspect
Energy bill savings > Incremental cost
Net savings, greater cash flow
PACE: Becoming Reality PACE: Becoming Reality for a Communityfor a Community
State legislation PACE program design
City Council voting on PACE Bond
issuance PACE funds to beneficiaries
Clean Energy Investment
PACE Program DesignPACE Program Design
• DOE Guidelines• Local design– Eligibility– Interest rates– Safeguard details
• Uniformity effort– Renewable Funding
PACE from the Lens of PACE from the Lens of
Different StakeholdersDifferent Stakeholders
Home and Business Owner Home and Business Owner PerspectivePerspective
• Voluntary
• Application• Nature of improvement
(whole; part; appliances); dollar range
• Financial information
• Receives PACE funds
• Works with certified contractor
Energy ContractorEnergy Contractor
• Qualified auditor
• Licensed contractors
• Qualified quality assurance professional
MunicipalityMunicipality• Votes to establish
program
• Establishes assessment district
• Issues bonds
• Issues PACE funds
• Admin costs rolled into consumer loan
• Collected on same day as property taxes
In a NutshellIn a Nutshell
A Thought Through Program
PACE MapPACE Map
Preliminary ResultsPreliminary Results
• In one city alone
– 1,000 retrofits
– 60% lower delinquency rate
Federal SituationFederal Situation
State DevelopmentsState Developments
• 22 states have passed PACE authorizing language
– Including neighbors
• Discussions with Indiana legislators; interest by Governor's office
PACE Needs Your SupportPACE Needs Your Support
• Public awareness campaign
– Letters to editor
• Legislator awareness
– Emails to legislators
– Emails to mayors
[email protected], PACE
Enormous Potential…Enormous Potential…
• Majority of U.S. homes built pre-1980
• Indiana on-site renewable systems
The Great Opportunity if The Great Opportunity if Barriers Truly FallBarriers Truly Fall
• Can avoid building multi-billion dollar power plants
– Minnesota's example (under R Gov!)
• Can create thousands of new jobs in Indiana
• RAEL study
Opportunity #2Opportunity #2
Renewable Electricity Standard
RES DiagramRES Diagram• Renewable projects
require hundreds of millions in capital.
• Investors will be more likely to site projects where there is guaranteed income.
• By carving out part of the electricity market for renewables, RES provides investment certainty
And this pans out…And this pans out…
70% of
investment in
wind power
occurs in
states with an
RES.
#1: Jobs and Investment#1: Jobs and Investment
• ~6,000 jobs in construction, operation and maintenance
• $7 billion in investment
Texas Installed Wind Capacity
Pre-1999: 42 MW
2006: 2,768 MW
2008: 5,000+ MW
2010: 10,000 MW
Source: Ken Donohoo, ERCOT; SPP
#2: Reduced energy costs#2: Reduced energy costs
Mitigates rising costs from coal power, federal carbon rules
#3: Enhanced Rural #3: Enhanced Rural DevelopmentDevelopment
• Lease payments for hosting:– Substation– Access Road– Simply being located
between turbines
• Renewable energy investments can generate county benefits.
#4: Revitalization of #4: Revitalization of ManufacturingManufacturing
The Basic ChallengeThe Basic Challenge
• RES as a vehicle for...
– Enshrining the status quo
– Old school economic development
• We may have to accept some realities, in exchange for significant gains to renewable power
Fight for the best possible Fight for the best possible billbill
• Minimize the role of non-renewables
• Focus trackers narrowly
RES Needs Your SupportRES Needs Your Support
• Public awareness campaign
– Letters to editor
• Legislator awareness
– Emails to legislators
– Emails to mayors
[email protected], RES
Carbon Control TrackersCarbon Control Trackers
Nuclear CWIPNuclear CWIP
Denbury CO2 PipelineDenbury CO2 Pipeline
Stay Informed & InvolvedStay Informed & Involved
• www.facebook.com/hecweb
• www.hecweb.org
– Questions
– Comments
– Tell Us How You Want to Get Involved
Let's Never Forget the Let's Never Forget the StakesStakes