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Southern States Energy Board Southern States Energy Board 2006 2006 “Emerging Technologies “Emerging Technologies “Emerging Technologies “Emerging Technologies “Emerging Technologies for America’s Energy for America’s Energy for America’s Energy for America’s Energy for America’s Energy Security” Security” Security” Security” Security” “Emerging Technologies “Emerging Technologies “Emerging Technologies “Emerging Technologies “Emerging Technologies for America’s Energy for America’s Energy for America’s Energy for America’s Energy for America’s Energy Security” Security” Security” Security” Security” Annual Report Annual Report Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board Southern States Energy Board

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Page 1: “Emerging Technologies for America’s Energy Security”msa.maryland.gov/megafile/msa/speccol/sc5300/sc5339/...The Honorable Haley Barbour, Governor Senator Thomas E. King, Jr

Southern States Energy BoardSouthern States Energy Board

20062006

“Emerging Technologies“Emerging Technologies“Emerging Technologies“Emerging Technologies“Emerging Technologiesfor America’s Energyfor America’s Energyfor America’s Energyfor America’s Energyfor America’s EnergySecurity”Security”Security”Security”Security”

“Emerging Technologies“Emerging Technologies“Emerging Technologies“Emerging Technologies“Emerging Technologiesfor America’s Energyfor America’s Energyfor America’s Energyfor America’s Energyfor America’s EnergySecurity”Security”Security”Security”Security”

Annual ReportAnnual ReportSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy BoardSouthern States Energy Board

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1 Southern States Energy Board

3 2005-2006 Board Membership

5 Value-Added Services to Member States

7 Report of the Chairman

13 Event Photographs, 2005-2006

19 Current Programs & Activities

19 American Energy Security

22 Carbon Management

24 Clean Coal and Energy Technologies

26 Water for Energy

26 Biobased Products and Bioenergy Development

29 Environmental Technology Development, Deployment and Training

29 Pipeline Safety and Infrastructure

31 Radioactive Materials: Emergency Response and Transportation Planning

33 Regional Recycling Market Development

33 Electric Utility Program

34 Energy and Environment Legislation

34 Industry Partnerships

35 Sources of Support

37 Selected Reports & Publications

41 SSEB Staff

43 Frequently-Used Acronyms

Contents

Annual RAnnual RAnnual RAnnual RAnnual Report 2005eport 2005eport 2005eport 2005eport 2005

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Southern States Energy Board

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“Through innovations in energy and environmental policies, programs andtechnologies, the Southern States Energy Board enhances economic development

and the quality of life in the South.”

The Southern States Energy Board (SSEB) is a non-profitinterstate compact organization created in 1960 and estab-lished under Public Laws 87-563 and 92-440. The Board’smission is to enhance economic development and the qualityof life in the South through innovations in energy andenvironmental policies, programs and technologies. Sixteensouthern states and two territories comprise the membershipof SSEB: Alabama, Arkansas, Florida, Georgia, Kentucky,Louisiana, Maryland, Mississippi, Missouri, North Carolina,Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas,U.S. Virgin Islands, Virginia and West Virginia. Each jurisdic-

tion is represented by the governor and a legislator from theHouse and Senate. A governor serves as the chair andlegislators serve as vice-chairman and treasurer. Ex-officionon-voting Board members include a federal representativeappointed by the President of the United States, the SouthernLegislative Conference Energy and Environment Committeechair and SSEB’s executive director, who serves as secretary.

SSEB was created by state law and consented to byCongress with a broad mandate to contribute to the economicand community well-being of the southern region. The Boardexercises this mandate through the creation of programs in the

fields of energy and environmental policy research, develop-ment and implementation, science and technology explorationand related areas of concern. SSEB serves its membersdirectly by providing timely assistance designed to developeffective energy and environmental policies and programs andrepresents its members before governmental agencies at alllevels.

The Southern States Energy Board's long-term goals areto:

● perform essential services that provide direct scientificand technical assistance to state governments;

● develop, promote and recommend policies andprograms on energy, environment and economicdevelopment that encourage sustainable development;

● provide technical assistance to executive and legislativepolicy-makers and the private sector in order to achievesynthesis of energy, environment and economic issuesthat ensure energy security and supply;

● facilitate the implementation of energy and environ-mental policies between federal, state and localgovernments and the private sector;

● sustain business development throughout the region byeliminating barriers to the use of efficient energy andenvironmental technologies; and

● support improved energy efficient technologies thatpollute less and contribute to a clean global environ-ment while protecting indigenous natural resources forfuture generations.

1Annual Report 2006

Southern States EnerSouthern States EnerSouthern States EnerSouthern States EnerSouthern States Energy Boardgy Boardgy Boardgy Boardgy Board

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Southern States Energy Board2

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2005-2006 Board Membership2005-2006 Board Membership2005-2006 Board Membership2005-2006 Board Membership2005-2006 Board Membership

2005-2006 Board Membership

The list of members below reflects officials serving onthe Board as of June 20, 2006. For a current roster, pleasecontact the SSEB staff or visit our website at www.sseb.org.

Executive CommitteeChairman, 2004-2006The Honorable Ernie Fletcher, Governor of Kentucky◆

Chairman-ElectThe Honorable Joe Manchin, III, Governor of West Virginia◆

Vice ChairmanSenator John C. Watkins, Virginia◆

TreasurerRepresentative Myra Crownover, Texas◆

Members, Executive CommitteeThe Honorable Kathleen Babineaux Blanco, Governor of Louisiana◆The Honorable Matt Blunt, Governor of Missouri◆Senator Jimmy Jeffress, Arkansas◆Senator Jeff Rabon, Oklahoma◆Representative Harry Geisinger, Georgia◆Representative John Raymond Reeves, Mississippi◆

Federal RepresentativeThe Honorable Brian C. Griffin★

Secretary to the BoardMr. Kenneth J. Nemeth, Executive Director, Southern States Energy Board★

Southern Legislative Conference Energy and EnvironmentCommittee ChairSenator J. Chris Ullo, Louisiana▼

Members of the BoardAlabamaThe Honorable Robert Riley, GovernorSenator Jimmy W. HolleyRepresentative Locy "Sonny" BakerRepresentative Lynn Greer, House AlternateRepresentative Pete B. Turnham, Emeritus, House Alternate

ArkansasThe Honorable Mike Huckabee, GovernorMr. Shane Khoury, Office of the Governor, Governor’s AlternateSenator Jimmy Jeffress◆The Honorable Bill H. Stovall, III, Speaker of the House of Representatives

FloridaThe Honorable Jeb Bush, GovernorMr. Alexander Mack, Florida Energy Office, Governor’s AlternateSenator Lee ConstantineRepresentative Kenneth W. “Ken” Littlefield

GeorgiaThe Honorable Sonny Perdue, GovernorMr. Jimmy Skipper, Attorney at Law, Sumter County, Governor’s AlternateSenator Doug StonerRepresentative Harry Geisinger◆

KentuckyThe Honorable Ernie Fletcher, Governor◆Mr. Stan Cave, Office of the Governor, Governor’s AlternateSenator Robert StiversRepresentative Rocky Adkins

3

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Southern States Energy Board4

LouisianaThe Honorable Kathleen Babineaux Blanco, Governor◆Mr. Scott Kirkpatrick, Office of the Governor, Governor’s AlternateSenator Max MaloneRepresentative Wilfred Pierre

MarylandThe Honorable Robert Ehrlich, Jr., GovernorMr. Frederick Davis, Maryland Energy Administration, Governor’s AlternateSenator John HaferDelegate Dereck E. Davis

MississippiThe Honorable Haley Barbour, GovernorSenator Thomas E. King, Jr.Representative John Raymond Reeves◆

MissouriThe Honorable Matt Blunt, Governor◆Mr. Ken McClure, Office of the Governor, Governor’s AlternateSenator Kevin EnglerRepresentative Rex Rector

North CarolinaThe Honorable Michael F. Easley, GovernorMr. Larry Shirley, State Energy Office, Department of Administration, Governor’s AlternateSenator David W. HoyleRepresentative Joe Hackney

OklahomaThe Honorable Brad Henry, GovernorThe Honorable David S. Fleischaker, Secretary of Energy, Governor’s AlternateSenator Jeff Rabon◆Representative Dennis Adkins

Puerto RicoThe Honorable Anibal Acevedo Vilá, GovernorDr. Javier A. Quintana, Puerto Rico Department of Natural & Environmental Resources, Energy Affairs Administration, Governor’s AlternateSenator Carlos DiázRepresentative Severo Colberg Toro

South CarolinaThe Honorable Mark Sanford, GovernorMr. Austin Smith, Office of the Governor, Governor’s AlternateSenator John C. Land, IIIRepresentative Robert “Skipper” Perry, Jr.

TennesseeThe Honorable Phil Bredesen, GovernorSenator Jerry W. CooperRepresentative Gary Odom

TexasThe Honorable Rick Perry, GovernorMr. Michael L. Williams, Railroad Commission of Texas, Governor’s AlternateSenator Kip AverittRepresentative Myra Crownover◆

U.S. Virgin IslandsThe Honorable Charles W. Turnbull, GovernorMr. Bevan R. Smith, Jr., Virgin Islands Energy Office, Governor’s Alternate

VirginiaThe Honorable Tim Kaine, GovernorDr. Michael Karmis, Virginia Center for Coal and Energy Research, Virginia Tech, Governor’s AlternateSenator John C. Watkins◆Delegate Harry R. Purkey

West VirginiaThe Honorable Joe Manchin, III, Governor◆Dr. Patrick Esposito, Sr., Energy Advisor, Governor’s AlternateSenator William R. Sharpe, Jr.Delegate Harold K. Michael

Federal RepresentativeThe Honorable Brian C. Griffin★

Secretary to the BoardMr. Kenneth J. Nemeth, Executive Director★

Southern Legislative Conference Energy and EnvironmentCommittee ChairSenator J. Chris Ullo, Louisiana▼

◆Executive Committee Members★Ex-Officio, Non-Voting Executive Committee Members▼The Board’s by-laws provide that the Southern Legislative ConferenceEnergy and Environment Committee chair serves as a non-voting ExecutiveCommittee Member.

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VVVVValue-Added Seralue-Added Seralue-Added Seralue-Added Seralue-Added Services to Member Statesvices to Member Statesvices to Member Statesvices to Member Statesvices to Member States

5Value-Added Services to Member States

Participation by all member jurisdictions in the SouthernStates Energy Board Compact is critical not only to the statebut also to the region. All of the activities of the Board, asdescribed in this Annual Report, benefit the southern regionin the development of a sound economy, proper utilizationand diversity of energy sources and increased industrialization,while providing for protection of the environment to ensurepublic health, safety and welfare. SSEB often undertakesstate-specific projects with those same goals in mind.

Listed below are value-added services SSEB memberstates and its citizens receive as members of the Compact.

● SSEB obtains funding for state and regional projects atthe request of its membership, committees andworking task forces. This funding provided to ourstates generally is far in excess of appropriations paidto SSEB by its members.

● SSEB negotiates collective funding for member stateson programs that support energy and environmentalresearch, education and training, technology develop-ment, regulatory reform and other key issue areas.

● SSEB funds the direct participation of state officials inprojects and activities in order to enable states toremain current on new programs, trends and technolo-gies while decreasing the impact of travel on memberstate budgets.

● SSEB works directly with businesses and industries onspecific economic development projects that createand sustain jobs and expand the economy.

● SSEB provides regional forums, conferences andworkshops in member states that stimulate andpromote economic development, while facilitating peerand professional development.

● SSEB conducts training and other professionaldevelopment activities that address energy andenvironmental programs and technologies.

● SSEB conducts research and recommends solutions tospecific issues on request of member state officials andbusinesses.

The development of energy markets will remain central indetermining the long-term health of our Nation’s economy.For this reason, we need to strongly consider a path thatenables us to balance the importation of foreign energysources with the use of domestic sources of energy fornational security purposes.

A diverse portfolio of fuels and new and innovativetechnologies is needed to ensure a stable and sustainableenergy future in our country; a future that is devoid ofelectricity blackouts and long lines at the gas pump. TheSouthern States Energy Board, as a governmental energy andenvironmental organization, serves as a regional catalyst,delivering policies, programs and innovative technologies toprovide the advances necessary to determine a bright, eco-nomic future in the southern region.

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Southern States Energy Board6

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Report of the Chairman 7

The Southern States Energy Board is celebrating its 46th year of service tothe southern region. Formed by the governors and legislatures of the South in1960 to focus on issues affecting energy, environment, science, space andtechnology development, the Board’s initial emphasis targeted nuclear energy, asplans to construct power plants escalated in the region. President John F.Kennedy was an early supporter of the Board and indicated his support in aletter written during July of 1962. While the emphasis and mission of theBoard has been expanded and altered over the years by its membership, itscommitment to enhance economic development and the quality of life in theSouth remains.

Global economic growth, spiraling energy costs, expanding homelandsecurity concerns, natural disasters and the war in Iraq have combined to place aheavy burden on the federal budget, and this has affected the costs of goodsand services throughout the country. Never before has the United States facedsuch a multiplicity of challenges on an international scale.

To enable America to remain competitive with other nations, PresidentGeorge W. Bush focused on energy issues during his State of the Union addressearlier this year. The President’s message is a strong warning to all of us that wemust act quickly to reduce our Nation’s growing dependence on foreign oil. Heannounced the Advanced Energy Initiative, a 22 percent increase in clean energyresearch focused on zero emission coal-fired power plants, a resurgence ofnuclear power and solar and wind technologies. To change the way we powerour automobiles, the President recommended additional battery research forhybrid and electric cars and pollution-free vehicles powered by hydrogen.

Even before the President’s address, the Southern States Energy Board unanimously approved an American Energy Security study atour Annual Meeting on August 29, 2005. The Board requested that the study focus on soaring energy prices, energy security and theshortages of liquid transportation fuels available throughout the country. I have been an active and enthusiastic supporter of this study,and the Commonwealth of Kentucky was the first state to make a financial contribution to this important national effort. The goal of theBoard’s study is to implement federal legislation that will address the fiscal, tax, legislative and regulatory reforms necessary to ensureaffordable, quality liquid transportation fuels for the American public.

While the Board agreed that the country does not face an “energy crisis,” it is apparent that a shortage of viable liquid transportationfuels is being exacerbated by four oil-related risks to our economy. First, we face an expanding dependence on oil supplies delivered to usby unstable and unfriendly foreign countries. America consumes 22 million barrels of oil per day, and 67 percent of that total powers thetransportation sector of our economy. Second, many experts have predicted that world oil supplies soon will peak and begin a steadydecline. Third, we face inexorable competition for oil from huge, developing countries such as China and India. And fourth, last year’shurricanes demonstrated just how vulnerable our energy infrastructure is and how easily supplies can be disrupted. Even more daunting isthe fact that oil is being used as an international weapon by terrorists, and that is a threat that can be eliminated if we act as a Nation to doso.

Report of the ChairmanReport of the ChairmanReport of the ChairmanReport of the ChairmanReport of the Chairman

The Honorable Ernie Fletcher, GovernorCommonweath of Kentucky

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Southern States Energy Board

The architect of the Southern States Energy Board’s American Energy Security study is Mr. Robert Addington of my state, Kentucky.Mr. Addington is an educator, technology developer, coal miner and a principal in The Addington Companies, which maintains substantialcoal mining holdings in a number of southern and western states. Mr. Addington’s philosophy is a simple one: America must begin atransition to the use of indigenous resources for its liquid transportation fuels or face a future of energy insecurity, supply disruptions andescalating costs for foreign sources of oil.

The American Energy Security study examines our energy vulnerabilities as a Nation, and targets coal-to-liquids (CTL), biomass andoil shale as indigenous fuels that almost immediately can change the future course of the country, if we have the national will to do so.The land area of the United States supports more than 25 percent of the world’s coal resources; 2.1 trillion barrels of oil equivalent fromreserves of domestic oil shale; and over 1.5 million barrels of oil per day from biomass resources, much of which are located in thesouthern region of our country. Today, with our new zero emission and industrial ecology-based technologies, we can utilize thesepotential energy sources without polluting our environment through the dispersion of greenhouse gases.

A primary objective of our study is to replace approximately five percent of imported oil each year for 20 years beginning no laterthan 2010. A key to this plan will require the construction of multiple liquid fuel plants each year, some of which are underway.

The Southern States Energy Board recommends that the following capital funding policies be implemented to encourage the privatesector to step forward on a massive scale. The specific fiscal, tax, legislative and regulatory recommendations presented below are alldesigned to encourage private sector commitments to seize this opportunity and provide for America’s security and economic energyfuture. Our suggested policies are summarized as follows:

● extend the $0.50 per gallon Alternative Liquid Fuels Excise Tax Credit;

● provide accelerated cost recovery to alternative fuel plant owners;

● incentivize refining of alternative liquid fuels;

● provide explicit DOE authority and appropriations for loan guarantees;

● fund the Military Alternative Fuels Testing and Development Program;

● authorize and fund military purchases of alternative fuels under long-term contract;

● eliminate the $10 million cap for tax exempt industrial development bonds;

● provide regulatory streamlining for the production of alternative liquid fuels;

● establish a self-sustaining government corporation to provide market risk insurance;

● expand the Strategic Petroleum Reserve (SPR) program to include alternative liquid fuels products;

● provide incentives for existing ethanol plants to convert to coal; and

● provide incentives for enhanced oil recovery (EOR) and enhanced coalbed methane recovery using carbon dioxide (CO2) capturedfrom alternative fuel plants.

Funding for our study came from the Commonwealth ofKentucky; the U.S. Department of Defense (DoD); PeabodyEnergy; the National Mining Association; the Association ofAmerican Railroads; Rentech Corporation, the U.S. Departmentof Energy (DOE) and Southern States Energy Board.

Key to the implementation of this program are complimen-tary efforts aimed at the use of advanced coal technologies. TheSouthern States Energy Board’s Chairman-Elect, Governor JoeManchin, III, of West Virginia, developed a coal conversioninitiative that is unique to the Nation. This plan includes thesiting of “polygen” plants that generate electricity but also canprovide opportunities for carbon sequestration, coal-to-liquids,biomass conversion, process chemicals and hydrogen. A PublicEnergy Authority for siting these facilities is administering theprogram. Governor Manchin’s innovative approach forms thebasis of a cooperative effort between government and industryin the southern region, and the Southern States Energy Boardapplauds its success.

8

The Honorable Joe Manchin, III, Governor of West Virginia, announces his coalconversion initiative at a press conference on October 13, 2005.

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The President’s Global Climate Change Initiative is a major endeavor to reduce greenhouse gas intensity by 18 percent by the year2012. In tandem with this presidential initiative, the Southern States Energy Board is managing the Southeast Regional Carbon Sequestra-tion Partnership, known as SECARB, to explore the best approaches for capturing, storing, using and disposing of carbon dioxide andother greenhouse gases throughout the southern region. SECARB is one of seven partnerships supported by the U.S. Department ofEnergy and over 80 businesses, industries, academic institutions and government entities in the South. Its aim is to develop the infrastruc-ture necessary to validate and deploy carbon sequestration technologies.

During Phase I, the SECARB partners examined sources and sinks in the region most suited for terrestrial and geologic sequestrationoptions. Phase II of this program began in October of 2005 and is a four-year effort of diverse field tests to utilize captured carbondioxide for enhanced oil recovery along the Gulf Coast; determine options for sequestering carbon in saline reservoirs in the MississippiSalt Basin; test sequestration opportunities in the Black Warrior Basin of Alabama; scrutinize coal fields in Kentucky, Virginia and WestVirginia for enhanced coal bed methane recovery; and further evaluate formations for potential sequestration in Florida, Georgia, NorthCarolina, South Carolina and Tennessee. The field tests also will validate corresponding infrastructure approaches related to monitoring,measurement and verification (MMV); regulatory regimes; permitting; and public education and outreach.

Interest in the development of new, clean energy technologies is a priority for government/industry partnerships in the South. Threesouthern states, Texas, West Virginia and Kentucky, have applied to provide sites for FutureGen, the President’s $1 billion near-zeroemissions coal plant that will sequester carbon and other greenhouse gases.

The SSEB Committee on Clean Coal and Energy Technologies Collaboration is a partnership promoting the production and use ofthe region’s coal resources, in cooperation with the U.S. Department of Energy. Comprised of state, federal, academic and industryofficials focused on domestic and international coal issues, the Committee focuses on the use of coal for energy and electricity and thetechnologies that power cleaner fossil energy systems. During this year, the Committee’s domestic agenda includes coal mine safetylegislation; technologies for converting coal-to-liquids; new gasification technologies; carbon sequestration; coal bed methane recovery; anda new vision for educating the coal miner of the future.

An aging coal mine workforce in the South is anemerging issue of paramount importance to the coalindustry. With miners averaging 50 years of age, itonly will be a few years before the industry faces amassive manpower shortage. To stem this seriousproblem, I established the Kentucky Coal Academy todevelop a professional career path incentive for newminers with modern education facilities and newsimulator training equipment. Other states, includingVirginia and West Virginia, are pursuing similarapproaches to secure a viable and productive coal industry in the future.

As part of its international mission, the Committee on Clean Coal and Energy Technologies Collaboration has continued to supplyU.S. expertise to the Industrial Estate Authority of Thailand in its application of clean coal technologies and advanced power systems;resource recovery for industrial ecology projects such as gypsum waste processing and ash utilization; emissions controls for power plantsat industrial estates; reverse trade missions; and partnerships with Thai universities. Increasing market opportunities and removing barriersto deployment of U.S.-based clean energy technologies is a primary objective.

In 2001, the Southern States Energy Board established the Southern States Biobased Alliance. Members of the Alliance from eachstate include a gubernatorial appointee and a member of the state legislature. The mission of the Alliance is to develop and promote theuse of biomass, bioenergy, biofuels and biobased products to foster a regional industry and boost rural economies. Emphasis on projectsstimulated by the Alliance is on energy, agriculture and forestry. The Southern States Energy Board also serves as the manager and fundingagent for the Southeastern Biomass State/Regional Partnership, in cooperation with the U.S. Department of Energy. Some of theinnovative projects initiated in the past year include the development of a liquid biofuels plant for the state of Alabama; the creation of theFlorida Biomass Network to identify production capacity; petroleum fuels reduction and increased use of ethanol through the Trust for theFuture in Tennessee; grease biodiesel to power campus vehicles at the University of Puerto Rico; marketing biomass residues from cornand cereals in Missouri; a North Carolina biomass waste exchange that trades biobased products; and a landfill biogas utilization programin the U.S. Virgin Islands. Many of these insightful partnerships are administered by state energy offices that are strongly supporting thechallenge to develop and use renewable fuels to decrease the Nation’s dependence on imported oil.

The Southern States Energy Board and its Associate Member, the Nuclear Energy Institute, are cooperating on a publication fordecision-makers highlighting the re-emergence of nuclear power plant siting in the southern region and across the country. Today nuclearpower supplies 20 percent of our Nation’s energy needs and current plants are highly recognized for their contributions to air quality aswell as their extremely high operational efficiencies. In 2005, the 45 operating nuclear reactors in the SSEB region helped avoid emitting

9Report of the Chairman

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Southern States Energy Board10

some 305 million tons of CO2, 1.4 million tons of sulfur oxide,and 480 thousand tons of nitrous oxide. At present, morethan 19 plants nationally are in the early planning stages, with12 of these in the Southern States Energy Board memberstates. A number of nuclear plants are being uprated as well,adding some 4,600 megawatts nationwide since 1977, resultingin additional electrical generation from assets currently inplace. Recently, the Board’s Vice-Chairman, Senator JohnWatkins of Virginia, authored an editorial advocating anincreased role for nuclear fission in Virginia’s future energystrategy. The Senator’s premise is that the continued use ofnuclear energy is essential in sustaining the Nation’s economicgrowth and the quality of life in the region. This resurgencewill be possible and less expensive than the last generation ofreactors due to new plant design and safety features, early sitereview and banking, a streamlined licensing and regulatoryprocess and increased environmental benefits.

The Southern States Energy Board’s committees ontransuranic waste and radioactive materials transportation arecommitted to working with the U.S. Department of Energy toensure safe movement of shipments throughout the regionand that states are adequately prepared in the event of anincident. Training is a major emphasis of the committees during this year. Alabama, Georgia and Texas participated in radioactivematerials accident exercises to test the preparedness level of their first responders. West Virginia will host a similar exercise in October of2006. Both committees received Transportation Routing Analysis Geographic Information System (GIS) training at the U.S. NuclearRegulatory Commission headquarters earlier this year. Familiarity with routing will help the states to better understand the rail and highwayrouting selection process for impending shipments of spent fuel and high-level radioactive waste. The committees also have collaboratedwith DOE’s Environmental Management Office to conduct commodity flow surveys. These assessments provide a snapshot of thecategories of materials moving along major transportation corridors in the region. In the near future, SSEB’s Radioactive MaterialsTransportation Committee will administer funding and technical assistance to states in support of shipments conducted under the NuclearWaste Policy Act. All of these activities and forms of training will enhance the states’ abilities to support shipments from commercialreactors in the South to the national repository.

The Board’s ongoing regional transportation planning also coordinated the re-routing of transuranic waste shipments followingHurricane Katrina. These shipments were re-routed from their origin at the Savannah River Site (SRS) in South Carolina to their destina-tion near Carlsbad, New Mexico, to avoid transport through Alabama, Mississippi and Louisiana. Preparation for shipments of transuranicwaste from DOE’s eastern sites led to the incorporation of Maryland, Virginia and West Virginia into SSEB’s Transuranic Waste Transpor-tation Working Group. These states will receive funding in Fiscal Year 2007 for program development and equipment purchasing for thiscampaign.

All members of the Southern States Energy Board strongly support the work of their state energy offices. These valuable agenciesare among the few on-the-ground resources to increase energy efficiency for residential, business and other consumers by educating thepublic on strategies to reduce consumption while helping develop alternative energy and renewable energy resources. A recent study by theU.S. Department of Energy’s Oak Ridge National Laboratory found that every dollar spent by states and territories to support their 2002activities helped to save $7.22 in annual energy costs. Those savings and value per federal dollar are even greater today in light of currentenergy prices.

Energy conservation and efficiency have been high on the agendas of southern states, and the fuel crisis during this year has acceler-ated aggressive policy-making in the South. The Southern States Energy Board has provided strong support for these measures. Ken-tucky, Virginia and Florida have introduced new energy conservation and efficiency plans developed in partnership with state energyoffices, and Georgia has a draft energy strategy out for review.

The Missouri General Assembly passed legislation this year to require a 10 percent ethanol blend in most gasoline; gave consumers ahybrid vehicle tax credit; and called for statewide standards for using renewable energy. The Oklahoma Legislature also provided taxbreaks to businesses using renewable energy. New Florida legislation exempts sales and use taxes on items related to hurricane prepared-ness. The Commonwealth of Puerto Rico is considering tax incentives for the development of solar and wind energy as well as a netmetering program.

The Honorable Ernie Fletcher (center), Governor of Kentucky serves as SSEB’sChairman. Seated on his right is SSEB Board Member Mr. Jimmy Skipper ofGeorgia. Senator John C. Watkins of Virginia, SSEB’s Vice-Chairman, is seated toGovernor Fletcher’s left.

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Ernie FletcherGovernorCommonwealth of KentuckyChairman, Southern States Energy Board

11

All of these important efforts prove, once again, the value of an organization like the Southern States Energy Board to the southernregion. It is important to note that the Board has generated more than $58 million in economic benefits which spread across our 16 statesand two territories. I urge you to carefully review this Annual Report and its remarkable record of success!

Report of the Chairman

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Southern States Energy Board12

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Event Photographs, 2005-2006

Event Photographs, 2005-2006Event Photographs, 2005-2006Event Photographs, 2005-2006Event Photographs, 2005-2006Event Photographs, 2005-2006

Ms. Cynthia Oliphant (left), former Director of theTennessee Energy Division, and Mr. Paul Burks (right) ofthe Georgia Environmental Facilities Authority arerecognized during the SSEB 45th Annual Meeting inGreensboro, Georgia, for their service to the Board.

Dr. Robert Hirsch, Senior Energy Program Advisor toScience Applications International, presents “Peaking WorldOil Production and the Road to Energy Futures” tomembers of the Board.

Representative Rocky Adkins, Kentucky, participates in theBoard’s 45th Annual Meeting.

Mr. Michael L. Williams of the Railroad Comission of Texas,and Governor Rick Perry’s Alternate to the Board,participates in the Board meeting.

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Southern States Energy Board 45th Annual MeetingAugust 27-29, 2005 - Greensboro, Georgia

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Southern States Energy Board

Southern States Energy Board 45th Annual MeetingAugust 27-29, 2005 - Greensboro, Georgia (cont.)

Event Photographs, 2005-2006

Senator John C. Watkins of Virginia facilitates discussionbetween SSEB Electric Utility Task Force members.Senator Watkins serves as co-chair of the Task Force.

PJM Interconnection was highlighted in Mr. W. Scott Miller’spresentation to the Board’s Electric Utility Task Force.

Mr. Lawrence Mansueti, with the U.S. Department ofEnergy, provides an outlook on electricity delivery andenergy reliability in the South.

Dr. Stanley Blazewicz, Director of Navigant Consulting,delivers a presentation on microgrids during the SSEBElectric Utility Task Force meeting.

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Mr. Lindsay Thomas of AGL Resources in Atlanta focusesthe SSEB’s Associate Members’ attention on the prospectsof liquefied natural gas and outer continental shelfdevelopment in the South.

Mr. Gregory Pauley of American Electric Power interactswith SSEB Associate Members.

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Event Photographs, 2005-2006

Event Photographs, 2005-2006

Mr. Ralph Smith of the U.S. Department of Energy’sCarlsbad Field Office briefs the SSEB Associate Memberson transuranic waste shipments in the South.

Dr. Michael Karmis, Virginia Center for Coal and EnergyResearch, Mr. Scott Kirkpatrick, Office of the Governor ofLouisiana, and Mr. Ken McClure, Office of the Governor ofMissouri, interact with SSEB’s Associate Members.

Mr. Larry Shirley (left), North Carolina State Energy Office,and Mr. Herbert Wheary, Dominion, participate in the SSEBAssociate Member Meeting.

Mr. Mark Crews, Southern Company, contributes to thediscussion during SSEB’s Associate Members meeting.

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Southern States Energy Board 45th Annual MeetingAugust 27-29, 2005 - Greensboro, Georgia (cont.)

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Event Photographs, 2005-2006

Representative John Raymond Reeves, Mississippi, presentsrecent activities of the Southern States Biobased Alliance toSSEB members in Mobile, Alabama. Representative Reevesserves as co-chair of the Alliance along with Mr. John Daviesof the Kentucky Division of Renewable Energy and EnergyEfficiency (not pictured).

Ms. Jeanelle McCain of Progress Energy facilitates the SSEBAssociate Members meeting as Chair in Mobile, Alabama.

Mr. Morry Markowitz, Senior Director of External Affairs atEdison Electric Institute, briefs the SSEB AssociateMembers on the status of the federal energy bill in Mobile,Alabama.

Mr. Randy Eminger, Center for Energy and EconomicDevelopment, summarizes the federal energy bill before theBoard’s legislative members in Mobile, Alabama.

Southern States Energy Board Briefing to Legislative Member andAssociate Members Meeting, July 30, 2005 - Mobile, Alabama

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Event Photographs, 2005-2006

The Honorable Joe Manchin, III, Governor of WestVirginia, holds a press conference to unveil his coalconversion initiative on October 13, 2005.

Dr. Patrick Esposito, Sr., West Virginia’s Energy Advisor,states his support of Governor Manchin’s Coal ConversionInitiative.

West Virginia Coal Conversion Initiative Press ConferenceOctober 13, 2005 - Charleston, West Virginia

Event Photographs, 2005-2006

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American Energy SecurityOn August 29, 2005, at its 45th Annual Meeting, the

Southern States Energy Board unanimously approved theAmerican Energy Security study. The purpose of the study isto examine the undue burden currently being placed on ourliquid transportation fuels through foreign oil imports and todetermine a means to provide for energy security and indepen-dence to ensure fuel price stability and future economicprosperity.

Energy security and the price of petroleum fuel supplieshave been a dominant theme in the news over the past year.Escalating prices of oil above $75 per barrel have given rise toa number of legislative calls for alternative methods ofreducing the Nation's dependence on foreign oil supplies anddrastically increasing the use of our domestic resources byproviding petroleum substitutes fortransportation fuel. The President, in his2006 State of the Union address, calledfor the United States to drastically reduceits dependence on foreign oil, particularlyfrom the Middle East. With imports ofover 12 million barrels of foreign oil perday, the United States is economicallyvulnerable to the price and quantity ofoil available. The SSEB study hasdetermined that this Nation faces fourserious oil-related risks: (1) excessivedependence on the Organization ofPetroleum Exporting Countries (OPEC)and on other unstable foreign oilsuppliers; (2) conventional oil supplies are not meetingdramatic increases in world demand; (3) rapidly increasingglobal competition for oil from China, India and otherdeveloping nations will further stretch supplies; and (4) supplydisruptions from natural disasters (and potential terrorism).

The American Energy Security action plan and studyresults will focus on the rapid development of an alternativeoil and liquid fuels production base in America utilizing ourvast domestic resources including coal, oil shale and biomass.

CurCurCurCurCurrent Prent Prent Prent Prent Programs & Activitiesrograms & Activitiesrograms & Activitiesrograms & Activitiesrograms & Activities

Current Programs & Activities 19

The plan also willemphasize the needfor increasedtransportation fuelefficiency, sensibleenergy conservationand improveddomestic enhancedoil and coal bedmethane recoveryprograms usingcarbon dioxide.

One goal of theSSEB study is to show how America can replace approximatelyfive percent of U.S. imported oil each year for 20 years,beginning in the next five years. A key component of this plan

will be construction of multiple alterna-tive liquid fuel plants each year. Severalimportant factors in this approach toenergy independence include, first, thefact that the United States has significantquantities of alternative oil resourcesrivaling the total worldwide conventionaloil reserves. Trillions of tons of Ameri-can coal, oil shale and renewable biomassresources are available to be converted topremium quality liquid fuels usingexisting and rapidly emerging technolo-gies. Second, by producing environmen-tally superior transportation fuels fromnear-zero emissions plants that canrecycle, utilize and sequester CO2, the

United States can be an example for the world, in particular therapidly expanding energy production capabilities of China andIndia. Liquid fuels produced from coal, oil shale and biomasshave very low sulfur, low particulate and nitrogen oxidesemissions and higher performance characteristics than theirconventional distillate counterparts. In addition, the plants

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that produce the liquids can be capable of capturing carbon.Third, the SSEB study will focus primarily on the rapiddevelopment of coal/oil shale/biomass-to-liquid fuelsproduction. Finally, commercial enhanced oil recoverysuccesses using CO2 flooding suggest that American oil andgas production can be dramatically increased using thesemethods. Miscible CO2 flooding can revitalize certain matureoil fields. In addition, the study will support CO2 injectioninto coal and oil shale deposits in an emerging technology thatcan increase natural gas production from these sources. Atpresent, limited availability of CO2 supplies severely constrainsthis production-enhancing technique. However, the liquidsplants will produce and capture large quantities of CO2 thatcan be used by oil and gas producers for this purpose. Notonly can the CO2 be put to a positive use and sequesteredbeneath the earth's surface, the petroleum residuals generatedby oil and gas producers can be upgraded to liquid fuels in thenew carbon-to-liquids plants.

Commercial coal-to-liquid fuels technologies have existedfor decades. Sasol, a South African company, currentlyprovides almost 30 percent of that country's liquid fuel needsthrough coal conversion in the open market. Sasol wascreated with support from the government to decreasedependence on foreign oil, and the company quickly outgrewits need for government assistance. Embarking on a nationalmission to achieve energy independence can reduce the risk ofsupply and lower oil prices, and it also should facilitate anindustrial boom, create jobs, foster new technology, enhanceeconomic growth and establish a reliable domestic energy baseon which to rebuild domestic industries for global competi-tion.

Congressional legislation will be needed to implement theAmerican Energy Security study, and discussions are underwaywith members of Congress to achieve success. The followingmeasures are target issues.

Extend the $0.50 Per GallonAlternative Liquid Fuels Excise TaxCredit

The Safe, Accountable, Flexible, Efficient TransportationEquity Act: A Legacy for Users, SAFETEA-LU 2005extension, provides a $0.50 per gallon excise tax credit forcertain alternative liquid fuels, including CTL products. Thisincentive is set to expire in 2009, before any major new coal-to-liquids and oil shale plants (for example) can come online.Its extension through 2020 and the inclusion of oil shaleproducts will provide “real” market incentive to futurealternative liquid fuel plant developers.

Provide Accelerated Cost Recovery toAlternative Fuel Plant Owners

Authorization for 100 percent expensing in the year ofoutlay for any alternative liquid fuel plants begun by 2020 isrecommended. This will provide a substantial tax incentive tobuild alternative fuels manufacturing capacity, with the

government recapturing the deferred taxes in the early years ofa plant’s operation.

Incentivize Refining of AlternativeLiquid Fuels

We recommend the extension of the now temporaryexpensing allowance for equipment used in refining to 100percent of any required additions to existing refineries neededto handle domestic alternative liquid fuels products (see theEnergy Policy Act of 2005, or EPAct2005, § 1323). Thisincentive will redirect refinery owners to domestic and awayfrom imported feedstock sources.

Provide Explicit U.S. Department ofEnergy Authority and Appropriationsfor Loan Guarantees

The Energy Policy Act of 2005 establishes a loan guaran-tee program within the U.S. Department of Energy. However,the Office of Management and Budget’s view is that theFederal Credit Reform Act of 1990 contains a requirementpreventing the DOE from issuing any loan guarantees untilthey have an authorization, including a loan volume limitation,in an appropriations bill. It is recommended that Congressprovide explicit authorization in the form of a federal loanfacility to support the first approximately 100,000 barrels perday of new commercial production capacity (ten 10,000 bpdplants +/-) for coal-to-liquids, biomass-to-liquids and oil shale-to-liquids facilities. Additionally, it is recommended thatCongress provide appropriations for technologies demonstra-tion, as provided in EPAct2005.

Fund the Military Alternative FuelsTesting and Development Program

The U.S. Department of Defense has a developmentprogram underway to evaluate, demonstrate and certify turbinefuels from alternative energy resources for use in tacticalvehicles, aircraft and ships. Fuel sources include Fischer-Tropsch (F-T) fuels made from domestic coal, refined fuelsderived from oil shale kerogen and renewable/biobased fuels.The ultimate goal is to develop a single Battlefield Use Fuel ofthe Future (BUFF). At the center of this development effort isa DoD fuel testing program. Congress should fully fund thiscritical program through FY2013. The military need isapproximately $500 million over a five to six-year period,beginning in 2007.

Authorize and Fund MilitaryPurchases of Alternative Fuels UnderLong-term Contract

Total oil consumption by U.S. military forces is approxi-mately 400,000 barrels per day. Through the development ofBUFF specifications, it is believed that a substantial portion ofthis requirement can be met with domestically producedalternative liquid fuels. The DoD desires to enter into long-

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term contracts for the purchase of alternative fuels made in the UnitedStates from domestic resources. This is part of DoD’s Total EnergyDevelopment Program (TED), with a stated mission to “catalyzeindustry development and investment in [alternative] energy resources.”Congressional support is encouraged for DoD’s TED program,including extending its long-term contracting capabilities from five to aslong as 25 years. Appropriate and necessary authorizations and fundingshould be given high priority. DoD fuel purchases under long-termcontracts can help establish a foundation on which to build a newalternative fuels industry, and secure, high quality U.S.-made alternativeliquid fuels will help our military.

Eliminate the $10 Million Cap for TaxExempt Industrial Development Bonds

To encourage investment, certain pollution control and solid wastedisposal facilities currently are not included in the $10 million limit ontax exempt Industrial Development Bonds (IDBs). It is recommendedthat alternative liquid fuels production facilities be added to this list ofactivities having no tax exempt IDB size limits. This will lower the costof capital to build new alternative liquid fuels processing projects andenable expansion of existing ethanol and biodiesel plants.

Provide Regulatory Streamlining for theProduction of Alternative Liquid Fuels

In order to facilitate the rapid scale-up of alternative liquid fuelsproduction capabilities in the United States, regulatory changes arenecessary. Standardizing, simplifying and expediting the permittingprocess for manufacturing/processing facilities, mines,agricultural operations andnecessary infrastructure iscrucial. Below are a fewrecommendations in this veryimportant area.

● Standardize, simplify andexpedite permitting andsiting with joint federal,state and local processes,policies and initiatives.

● Make appropriate federal,state and local governmentsites available for alternativeliquid fuels manufacture,including Base Realignmentand Closure (BRAC)military sites.

● Exempt initial alternativeliquid fuels processing facilities from New Source Review (NSR) andNational Ambient Air Quality Standards (NAAQS) offset require-ments.

● Encourage local leadership to modify approaches to zoning andother land use and business regulations, to accommodate thestrategically important new activities of alternative energy harvestand manufacture.

● Prioritize, expand and promote the impressive reforestationwork being done to dramatically accelerate the rate of treegrowth by creating optimal soil conditions at reclaimedmine sites.

Establish a Self-sustainingGovernment Corporation to ProvideMarket Risk Insurance

Congress is encouraged to establish the Strategic EnergySecurity Corporation (SESC), a self-funding, self-sustaininggovernment corporation. The SESC is proposed to administera new, “fuel-neutral,” alternative liquid fuels market insuranceprogram to protect against predatory pricing by OPEC andothers. More details on the SESC initiative are provided in theAmerican Energy Security study.

Expand the Strategic PetroleumReserve Program to IncludeAlternative Liquid Fuels Products

Stockpiling crude oil in a centralized location has itslimitations. Crude oil needs to be refined to be useful. Thelogistics of moving SPR crude to refineries having availablecapacity and then transporting the refined products tolocations in need is cumbersome and takes time. There areonly four centrally located SPR storage sites in the UnitedStates; two in Texas and two in Louisiana. All four sites are

centrally situated on theGulf Coast, making themvulnerable to naturaldisaster and also toenemy attack.

Congress shouldexamine the feasibility ofpurchasing and storing“finished” alternative fuelproducts such as dieselfuel, jet fuel, heating oiland ethanol at a numberof locations strategicdispersed throughout theUnited States, as anextension of the SPRprogram. Fischer-Tropsch wax producedfrom coal, biomass andperhaps even oil shalemay be an ideal productfor this purpose. The F-

T process is capable of making a biodegradable wax as analternative to producing diesel and jet fuels. This wax has avery long shelf life and can be upgraded to superior qualityfuels much more quickly and inexpensively than crude oil. Ingeneral, a variety of alternative fuels could be purchased by theSPR under long-term contract to control costs and to helpestablish a vibrant, rapidly expanding alternative fuels industry.

U.S. Senator Jim Bunning of Kentucky holds a press conference on June 22, 2006,announcing Senate Bill 3325, the “Coal-to-Liquid Fuel Promotion Act of 2006.” Duringthis announcement, Senator Bunning refers to the Act as a “three-part, comprehensiveeffort to create a vibrant domestic coal-to-liquid fuel market.”

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Congress should authorize the sale of portions of the crudeoil currently in storage on the open market to fund availablealternative fuels purchases.

Provide Incentives for ExistingEthanol Plants to Convert to Coal

Until very recently, natural gas was the ethanol plant fuelsource of choice for process heat and electricity. With therecent escalation in natural gas prices, new ethanol plants areopting for coal-firing. Like crude oil, limited domestic naturalgas supplies have necessitated increasing imports of this fuelas liquefied natural gas (LNG) to produce ethanol. Topromote energy efficiency and lower energy imports, Congressshould consider providing for 100 percent expensing in theyear of outlay for the cost of converting ethanol plantscurrently using natural gas to domestic coal, if the new plant isin service by 2010.

Provide Incentives for Enhanced OilRecovery and Enhanced Coal BedMethane Recovery Using CO2Captured From Alternative FuelPlants

The capture and use of the CO2 from alternative liquidfuel plants can greatly expand domestic oil production fromexisting oil fields and enhance methane recovery from coalbed methane operations. To lower the barriers to expandeduse of CO2 injection, the following actions should be consid-ered:

● exclusion of oil production from the Alternative MinimumTax (AMT);

● increase the investment tax credit to 50 percent;

● provide federal royalty and severance relief until theinvestment in CO2 injection is recovered; and

● provide access to federal and state lands for the construc-tion of CO2 pipelines.

Additional RecommendationsIssues and policy options related to the prioritization and

catalyzing of a new domestic alternative liquid fuels industryare extremely complex and important. The policy recommen-dations provided in the American Energy Security study arebelieved to be crucial to the success of a comprehensivenational initiative for alternative fuels harvesting and manufac-turing. The American Energy Security study partners aredeveloping additional policy options for states.

For additional information regarding the AmericanEnergy Security study, please visit the partner’s website atwww.americanenergysecurity.org.

Carbon ManagementSoutheast Regional CarbonSequestration Partnership

During this year, the Southern States Energy Board iscompleting work on Phase I of the Southeast Regional CarbonSequestration Partnership research initiative. The two-yearPhase I study utilized a regional approach to determine whatoptions exist for sequestering carbon dioxide, should such aprogram be needed in the future. SECARB, which is managedby SSEB, is one of seven regional partnerships working withthe U.S. Department of Energy. SECARB and the otherregional partnerships work with the National Energy Technol-ogy Laboratory (NETL) to assess issues related to the capture,transport, storage and use of carbon dioxide emissions fromfossil fuel sources.

The SECARB territory initially encompassed a nine-stateregion including the states of Alabama, Arkansas, Florida,Georgia, Louisiana, Mississippi, North Carolina, SouthCarolina and Tennessee. In March of 2004, Texas and Virginiawere added to the region. In March of 2005, portions ofKentucky and West Virginia were included in the SECARBPhase II work plan.

Phase II is a four-year field verification program, with theU.S. Department of Energy providing $14.3 million in fundingand SECARB partners providing over $5.6 million.

SECARB has completed the screening of potentialsources and sinks for carbon sequestration. The findings revealthat potential sources of CO2 emissions are located throughoutthe region, with large coal-fired power plants being the mostprominent emitters. Also, the findings demonstrate that theregion has numerous and diverse terrestrial and geologic sinksthat could serve as the most promising sinks for sequesteringCO2.

SECARB’s Phase II work focuses on the most promisingopportunities for geologic sequestration within the region thatpromote the development of a framework and infrastructurenecessary for the validation and deployment of carbonsequestration technologies. Phase II refines Phase I conceptsand begins to validate, through field testing, sequestrationtechnologies and corresponding infrastructure approachesrelated to regulatory, permitting and outreach. The multi-partner collaborations developed during Phase I continue inPhase II.

Phase II consists of three diverse field tests broken downinto phases aligned with project definition, design, implementa-tion, operations and closeout/reporting; continued character-

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ization of regional sequestration opportunities; andcross-cutting services in education and outreach,regulatory and permitting, monitoring, measure-ment and verification, geographical informationsystems and project management. SECARB willdevelop best practices manuals to support regionaltransferability and wide-scale deployment.

The field tests are:

G1 - A Gulf Coast Stacked Storage Project thatbuilds upon the Gulf Coast Carbon Center of TheUniversity of Texas Bureau of Economic Geology’sexperience managing the Frio Basin Project andinvestigates a stacked sequence of hydrocarbon andbrine reservoir intervals, where enhanced oilrecovery with CO2 can serve as an economic driverin establishing the CO2 infrastructure;

G2-A and G2-B - A Coal Seam Project for validation of sequestra-tion opportunities in the Central Appalachian Basin and the BlackWarrior Basin, where CO2 enhanced coal bed methane recoveryoperations can add economic value and where unmineable coals canprovide sequestration opportunities; and

G3 - A Saline Aquifer Test Center Project that focuses on validatinggeologic storage in close proximity to a Southern Company coal-firedpower plant (part of the Electric Power Research Institute’s Test Centerprogram) located in the Mississippi Salt Basin and separated from theGulf Coast Salt Basin by the Wiggins Arch (Field Tests G1 and G3 arelocated in distinctly different saline sinks).

Each field team has assumed responsibility for the technical scopeof work, local education and outreach, permitting, MMV and maintain-ing the validation test’s schedule and budget. Each team contributesnew information to the continued characterization of the region. Inaddition, a task has been dedicated to integrating field data and fillinggaps in regional characterization data sets. Data and tools developed inthe continued characterization task will be incorporated into a relationaldatabase and GIS.

All three field tests, the continued characterization project and thecross-cutting functions support the FutureGen Initiative by validatingtechnologies and identifying locations throughout the region that couldsupport future full-scale geologic sequestration deployment opportuni-ties. FutureGen is a highly efficient and technologically sophisticatedcoal-fired power plant that will produce both hydrogen and electricityand achieve near-zero emissions by utilizing carbon sequestrationtechnologies.

Three SSEB member states, Kentucky, Texas and West Virginia, areamong the seven states that submitted site proposals to the U.S.Department of Energy and the FutureGen Industrial Alliance in acompetition to host the $1 billion research facility.

To learn more about SECARB, please visit our website atwww.secarbon.org.

Mr. Sean Plasynski of the National Energy Technology Laboratory, Mr.Dwight Evans of Southern Company and Mr. Ed Stephens of theTennessee Valley Authority provided welcoming remarks to theparticipants (left to right). On January 18-19, 2006, SECARB partnershosted more than 70 representatives from the energy industry for thepurpose of briefing them on Phase II activities and gaining support forand stakeholder involvement in the program.

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Clean Coal and EnergyTechnologies

The Southern States Energy Board’s Committee on CleanCoal and Energy Technologies Collaboration is one of theBoard’s most active government/industry partnerships.Comprised of state, federal, academic, business and industryofficials, the Committee pursues domestic and internationalprograms that are intended to increase the use of coal andpromotes innovative technologies that power cleaner fossilfuel systems.

During the past year, the Committee’s domestic agendafocused on the education of the coal workforce of the future.The importance of coal as a resource for the southern regionis apparent. For every million tons of coal produced, 130miners are employed. Millions of dollars in severance taxesare generated across the South, and the region supports someof the lowest electric rates in the Nation. Rising coal pricesare continuing to provide a strategic advantage to the econo-mies of southern states by spawning additional businesses thatdiversify and improve the quality of life.

But a clear reality is that our coalindustry workforce is aging. The averageminer has reached 50 years of age, andmore than half of the workforce will faceretirement in the next five to seven years.Lack of education and training programsand no career path incentive for newminers has placed the human resourcescomponent of the industry at a precariouscrossroads. Changes need to be made tomodernize facilities and equipment and toentice younger workers to enter a new

mining industry that is intent on providing them incentives tocareers with a future.

The Commonwealth of Kentucky met this challenge inthe past year through the creation of the Kentucky CoalAcademy. A model program worthy of adaptation by statesacross the country, the Kentucky Coal Academy will designcareer pathways for miners with state-of-the-art equipment;develop short-term training; assess employer needs; providescholarships to deserving students; offer academic curriculaleading to college and advanced degrees; and provide market-able and transferable skills to its students through the Ken-tucky Community and Technical College System. As one of itscomponents, a Kentucky Junior Coal Academy program willbegin educating and interesting high school students in theirpotential roles in a new U.S. coal industry. Southern StatesEnergy Board members, including Governor Ernie Fletcher,Senator Robert Stivers and Representative Rocky Adkins wereinstrumental in the formation of this unique educationalapplication in January of 2006. Former SSEB Governor’sAlternate, Dr. Bill Higginbotham, is serving as the newPresident of the Academy.

Of continuing importance to SSEB’sCommittee on Clean Coal and Energy Tech-nologies Collaboration are coal mine safetyissues. The Sago Mine disaster and othersimilar incidents during this year have re-doubled efforts to improve safety measures sothat tragedies such as these cannot occur in thefuture. A number of states, including WestVirginia and Kentucky, have taken legislativeaction to provide tracking and communicationdevices for miners; increased evacuationtraining; new mine rescue teams; lifeline cablesfor escape; and increased training on the use ofself-rescuers, among other safety measures.

The SSEB Committee on Clean Coal andEnergy Technologies Collaboration also beganto examine the domestic policies and technolo-gies needed to develop an alternative oil

Sago Mine in Upshur County, West VirginiaPhoto courtesy of the West Virginia Office of Miners’ Health Safety and Training.

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production industry in thesouthern states. Entirebusiness and industrysectors in the region aresuffering from high fuel andfeedstock prices includingairlines, package and fooddelivery, trucking, automanufacturing and petro-chemicals, among others.To survive, many Americancompanies are building newplants offshore, along withthe supporting research anddevelopment facilities,causing the loss of jobs,intellectual property and taxbase. In order to reversethis trend, business andindustries must be offered along-term solution. Theseunprecedented risks can be

mitigated if a commitment is made to produce our own fuels.

The international activities of the Committee are con-ducted in cooperation with the U.S. Department of Energy’sOffice of Clean Energy Collaboration. This cooperativepartnership examines opportunities toexport coal and clean coal technologiesto developing countries in cooperationwith U.S. companies interested ininternational business. In 2002, theSouthern States Energy Board and theIndustrial Estate Authority of Thailandsigned a Memorandum of Agreementto explore measures to improve andenhance the economic and environ-mental performance of Thai industrialestates. This has led to trade missionsand reverse trade missions, visits toindustrial estates, cooperative venturesbetween U.S. and Thai partners,international conferences and work-shops and eco-industrial developmentproposals to turn waste streams intoproductive resources by providingsolutions to environmental damage andstimulating markets for new products.The goal is the continued involvementof southern U.S. manufacturing andservice industries in finding solutionsto industrial problems throughinternational business.

The Thai Federation of Industry sponsored a trademission to the United States in May 2006, with the SouthernStates Energy Board serving as host for the site visits anddiscussions. A framework was established for a clean coal/advanced energy symposium to be conducted in Thailand later

in the year. Representatives from the Thai Department ofEnergy Development and Efficiency expressed their interest ina bilateral instrument with the Southern States Energy Boardto promote clean coal technologies in selected manufacturingsectors in Thailand.

The General Environmental Conservation Company(GENCO) of Thailand provides waste management servicesto industrial firms in the Kingdom. GENCO identifiedgasification as one of a number of process technologies toproduce electricity and other products to eliminate its currentbase of wastes collected from firms at its industrial estates. Incooperation with the Southern States Energy Board, GENCOplans to conduct a feasibility study to explore the option of co-firing coal with municipal and industrial wastes to produceenergy and useful commodities. SSEB’s goal is to identify andwork with motivated American firms desiring to participate inthe project and supply equipment and services.

Through the International Working Party on Fossil Fuelsof the World Energy Council and the International EnergyAgency, the Southern States Energy Board is examining theintellectual property issues associated with the deployment ofcarbon sequestration technologies. This will provide directbenefits to the international Carbon Sequestration LeadershipForum as the 21 countries involved in the Forum seek todetermine ways to share carbon capture, storage, utilizationand disposal technologies to curb the release of greenhouse

gases into the atmosphere. Ms.Barbara McKee of the U.S. Depart-ment of Energy chairs the Interna-tional Working Party on Fossil Fuelsand is a member of SSEB’s Commit-tee on Clean Coal and EnergyTechnologies Collaboration.

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Water for EnergyThe Southern States Energy Board and the University of

Tennessee continue to collaborate with the U.S. Departmentof Energy’s National Energy Technology Laboratory on waterfor energy research. Energy security and diversity concernshave factored into SSEB’s assessment of the energy-waterinterface. Emphasis is placed on regional efforts to deployclean coal technologies, such as gasification, and the associatedwater needs of these technologies. Water use and watersupply concerns exist within the region and will impact energyfacility development along with recreational use, industrial anddomestic consumption and agricultural practices. Findingsuitable locations for new power plants and industrial facilitiesthat require water and energy is a challenge for SSEB memberstates.

The objectives of the water for energy program includeassisting scientists, engineers and decision-makers to acquireand disseminate useful water data; promoting regional waterconservation and end-use efficiency by public and privateusers; and educating decision-makers and the public onregional water issues. Technology development and policysolutions must balance the water needs of the energy industrywith other industrial, commercial and residential requirements.At the same time, we must protect the aquatic environmentand continue to provide quality recreational opportunitieswithin waters of the southern region.

Biobased Products andBioenergyDevelopment

The U.S. Department of Energy’s regional biomassenergy program was revamped in 2003 and identified as theNational Biomass (State/Regional) Partnership. It is dividedinto five regional partnerships, and the Southern States EnergyBoard is the host organization for the Southeast. Under theauspices of SSEB, the Southern States Biobased Allianceserves as the lead regional body for state and regional partner-ship activities. The state biomass coordinators act as thetechnical arm of the Alliance in determining state-specificactivities and providing technical assistance at the state andlocal level.

Southern Biobased AllianceFormed in July 2001, the Southern States Biobased

Alliance works in an advisory capacity to the Southern StatesEnergy Board, addressing the development of biobasedproducts and bioenergy within the southern region. TheAlliance has developed a formal mission to provide leadershipand develop strategies that will foster a biobased industry andboost rural economies in the southern states. The Alliancemembers are gubernatorial appointees who are state legislatorsrepresenting SSEB member states and representatives of thepublic or private sector who are active in energy, environment,

agriculture and forestry issues. Currently, Representative JohnRaymond Reeves, Mississippi, and Mr. John Davies, KentuckyDivision of Renewable Energy and Energy Efficiency underthe Office of Energy Policy, serve as the co-chairs of theAlliance. In addition, Mr. Davies serves as the state representa-tive for the Southeast with the National Biomass Partnership.

Upon its inception, the Alliance established goals to guidethe group in building public/private partnerships that advancethe economy of the region through unique state, local andindustry networks. These goals provide regional leadership tothe Southern States Energy Board and its member statesthrough:

● Alliance meetings and activities that foster communication,coordination and collaboration among members to enhancedevelopment of a biobased industry in the region;

● recommendation of policies and programs that fosterdevelopment of a biobased industry in the region;

● identification of strategies that stimulate markets forbiobased products and technologies;

● providing electronic access to information, public forumsand appropriate links to facilitate information transfer onbiobased products and bioenergy; and

● advancing research, development and demonstration ofbiobased technologies and promoting the use of thosetechnologies.

Key activities are focused on stimulating markets forbiobased products and bioenergy. Learning about policies andincentives in other states, both in the South and in otherregions, is integral to determining the proper approaches thatwill stimulate economic development.

In conjunction with the regional steering committeemeeting, the Southern States Biobased Alliance sponsored aworkshop in July 2005 for participants to examine the impactof biomass-related policies and incentives. The impetus of theworkshop was the completion of a study funded through theNational Energy Technology Laboratory entitled An Assess-ment of Biomass-related State Programs and Policies. Thisanalysis considers a broad range of policies and incentivesthroughout the United States and examines their impact on thebioenergy and biobased product industry.

A number of national and regional organizations cospon-sored the workshop resulting in a broad cross-section ofstakeholder representatives participating in a dynamic forum,exchanging ideas and sharing practical experiences. Attendeesincluded state legislators, state energy office directors, stateofficials, industry representatives, foresters, farmers andacademia.

The goal of the forum was to stimulate discussion amongstate government policy-makers and other biomass stakehold-ers to collaborate on the development and implementation ofbiomass-related incentives. States are leading the way to fosterand stimulate markets for bioenergy and biofuels. The

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dialogue among the regional leaders participating in the forumpresented many observations related to policies and incentives.

One of the highlights of the workshop was a tour of EastKentucky Power Cooperative’s Bavarian Landfill Plant inBoone County on July 13. This plant is the first in Kentuckyto produce electricity from methane gas from decayingmunicipal waste. The U.S. Environmental Protection Agency(EPA) estimates as many as 500 additional landfills could cost-effectively tap methane as an energy source, producing enoughelectricity to power one million homes across the country.

Economic circumstances and development goals varyamong southern states. Meanwhile, rural economies across theSouth suffer from slowed production and a decrease in thevalue of farm crops. At the same time, our country’s demandfor energy and continuing increase and dependency on foreignenergy sources is jeopardizing our economic security. TheSouth has 214 million acres of forest land, primarily owned byprivate landowners, and over one-third of America’s farmland.Our region has potential for renewable, expandable andsustainable sources of energy as well as chemical feedstocks.

Southeastern State/RegionalBiomass Partnership

The regional biomass energy program was created byCongress in 1983 under the Energy and Water DevelopmentAppropriations bills PL 97-88 and PL 98-50. The enablinglegislation instructed the U.S. Department of Energy to designits national program to workwith states on a regional basis,taking into account regionalbiomass resources and energyneeds. The five regionalprograms, working withrepresentatives in all 50 states,Puerto Rico, the U.S. VirginIslands and the District ofColumbia hosted primarily byregional governors’ organiza-tions, are recognized nation-ally for their combinedexperience related to biomasstechnologies and policies.

In 2002, DOE integratedall the biomass activities underthe Office of the BiomassProgram (OBP). As part ofthe reorganization, theSouthern States EnergyBoard, the Coalition ofNortheastern GovernorsPolicy Research Center, Inc., the Council of Great LakesGovernors, the Western Governors’ Association and DOEdeveloped objectives for a State/Regional Biomass Partnershipthat redefines the former DOE Regional Biomass EnergyProgram. The goal of the Partnership is to work cooperatively

with the DOE/OBP to facilitate the increased use ofbioenergy and biobased products through coordinated federal,regional and state outreach, education and technical assistanceprograms.

Similar to all the regional partnerships, the SoutheasternBiomass State/Regional Partnership is structured to providestate and regional grants to accomplish specific goals related toeducation, outreach and technical assistance. As before, theSoutheastern Partnership includes Alabama, Arkansas, Districtof Columbia, Florida, Georgia, Kentucky, Louisiana, Missouri,Mississippi, North Carolina, Puerto Rico, South Carolina, U.S.Virgin Islands, Virginia and West Virginia.

In support of the goals of the National Biomass State/Regional Partnership, a technology matrix is being prepared forthe national Partnership and states. Listings of the followingwill be developed as part of the matrix:

● major types of biomass feedstocks;

● potential energy end-use and applications;

● potential biofuel products; and

● biomass conversion technologies that are commerciallyavailable.

The technology matrix will allow users to match end-useapplications and biomass feedstocks with specific characteris-tics to appropriate conversion technologies. Ultimately, thiswill increase bioenergy development intensity.

In January 2006, theSoutheastern State/RegionalBiomass Partnership metjointly with the Northeastregion. The purpose of thisinterregional activity was toexchange ideas and lendexpertise among states andregions.

A number of stategrants were awarded during2005 to continue outreachand education on biomass atthe state and local level.Some state projects are listedbelow.

Alabama is developing aliquid biofuels plan that willincrease the biofuels aware-ness and knowledge base ofstate policy-makers and serveas a guide for future state

investment in the development of the biofuels industry inAlabama.

Southern States Biobased Alliance interim co-chairs, Representative JohnRaymond Reeves of Mississippi (right) and Mr. John Davies of theKentucky Division of Energy Efficiency and Renewable Energy (left),provide opening remarks during a July 2005 forum entitled “BuildingBioenergy and Biobased Industries: A Workshop on DevelopingEffective Biomass-Related Policies and Incentives.”

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Arkansas is organizing and conducting a workshop onenergy and value-added products from biomass as it relates tobiomass utilization in the state and the region.

Florida is creating a portfolio of biomass resource mapsand identifying installed and potential biomass energyproduction capacity in the state. Additionally, the FloridaEnergy Office seeks to create a Florida Biomass Network thatwill assist with strategic planning for its biomass program andprovide advice on specific biomass projects in the state.

Georgia is forming a Biomass Task Force that will “assesthe state of the industry” including research, development anddemonstration as well as commercialization efforts to developa strategic “roadmap” for future biomass development in thestate.

Kentucky is working with County Extension agents in aprocess that will result in the location, development anddistribution of decision aids that will allow their clientele toreduce energy consumption, consider alternative energysources and receive guidance on grant applications.

Louisiana is documenting biomass use and potentialenergy in the state for stakeholders who share an interest indeveloping efficient energy systems for the economies ofLouisiana.

Missouri is investigating the procurement and marketingstrategies that industries based on crop residue and energycrops can utilize with a focus that will provide a uniqueperspective that may be applied to all bio-processors of newagricultural biomass products and technologies.

North Carolina will facilitate permanent establishmentof the North Carolina Biomass Council to provide consulta-tion to the North Carolina Energy Policy Council, the StateEnergy Office and the North Carolina General Assembly onimplementation of bioenergy studies and demonstration

projects through the establishment of a biomass deploymentroadmap for the state.

Puerto Rico is developing market data on availability,quality and cost of biomass solid waste feedstock, determiningPuerto Rican market applications, conducting engineeringanalysis for scale-up and for economic feasibility of variousbiomass energy technologies and building an information baseon feedstock versatility, with the objective of reserving apercentage of electric power generation and diesel fuelconsumption for electricity and biodiesel produced from localapplications.

South Carolina is providing public and private sectordecision-makers with economic and environmental metricsneeded to foster production of energy in South Carolina fromwaste water sewage, poultry waste and waste grease.

Tennessee is analyzing economic benefits of reducingpetroleum imports and moving to a more biobased fuel systemto help Tennesseans understand how biofuels have a positiveimpact on the state.

U.S. Virgin Islands is assessing the feasibility of collec-tion and cleaning of the landfill biogas to insure the greatestpossible use of available biogas resources in the territory.

Virginia will conduct workshops that will increaseawareness and understanding of small-scale biodiesel produc-tion as well as the opportunities, hazards and considerations ofusing biodiesel.

West Virginia is developing a conceptual biorefinery andconfigurations to lay a foundation for detailed economicanalysis of the feasibility of a biorefinery in the state.

Other state projects are in the planning stages to receivefunding through the Southeastern State/Regional BiomassPartnership. At the time of the printing of the AnnualReport, proposed projects are under review.

Southeast RegionalBiomass EnergyFeedstockPartnership

The President’s new biofuels initiativecalls for resources intended to enableethanol produced from sources other thancorn starch to become cost competitive by2012. This will require lowering the costsof feedstocks as well as driving advances inconversion technologies. The Southeastholds enormous potential to develop andadvance lignocellulosic biomass through itson-going and future research.

SSEB is working with the Sun GrantInstitute, DOE, U.S. Department of

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Agriculture (USDA), The National Biomass Partnership and others inleading a series of regional biomass energy feedstock partnershipworkshops. This initiative is part of the DOE/USDA research toadvance the development of lignocellulosic biomass and a biorefineryindustry. The first of these regional workshops was held in Knoxville,Tennessee, on May 10-12, 2006, with the intent of organizing aSoutheast Regional Biomass Energy Feedstock Center.

The Southeast steering committee identified a number of initialparticipants to begin strategizing how to sustain an on-going dialogueand technical transfer of research in the region. Through this partner-ship, a “virtual” feedstock center is envisioned as a means to shareresearch and policy needs as the Southeast focuses on fostering a“biorefinery” industry. In order to develop this industry, the use ofstraw, grasses and forest product residues and resources has highpotential as biomass energy feedstocks in the southern states.

A recent DOE/USDA study determined that the United States hasthe potential to supply the estimated one billion tons of feedstocksneeded annually to achieve the DOE goal of replacing 30 percent ofcurrent U.S. petroleum transportation fuel consumption with renewablebiomass. By organizing a partnership of this type, research can beginfocusing on the processing of these high cellulose and hemicellulosematerials, which is critical and a major challenge to the development ofefficient biorefineries.

Organizing regional partnerships is the best approach to evaluatingspecific regional barriers, both technical and non-technical. TheSoutheast Biomass Energy Feedstock Partnership can accelerateadvancing technology, policy analysis and investment in the region.With a growing decline in the production capacity of the paper industryand traditional farm crops, the Southeast is positioned to contributesignificantly to achieving national goals, thereby increasing America’senergy and economic security.

SSEB maintains an active website for the Southeastern BiomassState/Regional Partnership (www.serbep.org).

Environmental TechnologyDevelopment, Deploymentand Training

The Southern States Energy Board, as a founding member of theInterstate Technology and Regulatory Council (ITRC) in 1995, contin-ues to promote the various components of the ITRC program andensure that SSEB member organizations such as state energy offices aretaking part in and taking advantage of the low-cost, first-rate trainingand documents offered by ITRC. The ITRC now has over 65 docu-ments available for use at no charge to regulators, technology expertsand vendors, academicians and others. The most recent releases includethree guidance documents entitled Property Revitalization - LessonsLearned from BRAC and Brownfields; The Use of Direct Push WellTechnology for Long-term Environmental Monitoring in GroundwaterInvestigations; and Real-time Measurement of Radionuclides in Soil:Technology and Case Studies. Currently over 15 teams of experts areworking on specific environmental remediation issues to help to easethe transition from technological solution to practical implementationthroughout the states. Some of the most recent topics taken on by

ITRC teams include arsenic in groundwater, methyl tertiary-butyl ether, more commonly referred to as MTBE, and otherfuel oxygenates and vapor intrusion.

ITRC consists of representatives from 43 states that workto eliminate barriers and reduce compliance costs, making iteasier to use new technologies and helping states maximizeresources. The ITRC fosters better decision-making withinstate environmental agencies and enhances the understandingof these technologies both within public communities and theenvironmental industry through free or low-cost informationaland training resources. Environmental topics of interestnationwide are addressed by teams of experts formed andsupported through the ITRC support system. These teamsdevelop state-of-the-art regulatory guidance documents,training sessions and other technical publications aimed atvarious segments of the public, private and regulatory sectors.Currently, training is conducted in over 30 topics either asinternet-based training or in classroom settings.

ITRC continues to build the environmental community'sability to expedite quality decision-making while protectinghuman health and the environment. Globally, almost 30,000participants worldwide have been trained using ITRC devel-oped training. During this fiscal year, training opportunitieshave been afforded to almost 3,000 participants from statesrepresented by the Southern States Energy Board. As theITRC network continues to grow, knowledge is enhancedthereby easing implementation of environmental remediationactivity throughout the Nation.

Pipeline Safety andInfrastructureHigh Consequence Areas forNatural Gas TransmissionLines

In accordance with the 2002 Pipeline Safety ImprovementAct, natural gas transmission pipeline operators are required toidentify and more frequently inspect “high consequence areas,”where incidents or accidents could have disastrous effects forlocal communities. The Act also requires pipeline operators tocommunicate with emergency planners and local first respond-ers to provide a better understanding of the potential conse-quences if a pipeline is compromised and develop a plan ofaction to mitigate damages and impacts in the community.

During 2004 and 2005, the U.S. Department of Transpor-tation, the National Association of State Fire Marshals and theSouthern States Energy Board partnered to encourage pipelineoperators and emergency responders to interact regarding thespecial challenges faced by local communities where largepopulations and pipelines intersect. In the past, pipelines oftenwere built at the outskirts of a community, enabling a moreisolated response if an incident occurred. But today, numerouscommunities have expanded beyond the original proportions

Current Programs & Activities

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expected by planners, creating a situation where manypipelines intersect, transcend and encompass developed areas.

The program created by the partners was pilot tested inAlabama, Arizona, Kentucky and Louisiana. A textbook,instructor’s guide and DVD on pipeline emergencies weredeveloped by the Partnership to provide a curriculum foremergency responders from public safety and industrialorganizations. The Partnership continues to distribute andshare this curriculum in training sessions with fire servicepersonnel throughout the country.

Liquefied Natural GasThe Electric Power Research Institute announced during

2004 that 55 new liquefied natural gas terminals are projected,proposed, planned or scheduled to be built in the UnitedStates, ushering in a greater quantity of imported fuel that willbe expected to play a major role in the Nation’s economy.Due to the existing infrastructure and the availability of deepports in theSouth, it isprojected thatthe majority willbe located inour region.

In light ofthese develop-ments, and inaccordance withits Partnershipfor PipelineSafety with theNationalAssociation ofState FireMarshals andthe SouthernStates EnergyBoard, the U.S.Department ofTransportationidentified theneed for a risk assessment of safety and security issuesregarding the vulnerability of and potential homeland securitythreats to liquefied natural gas technologies and facilities.Four of the six existing LNG terminals in the United Statesare located in Southern States Energy Board member jurisdic-tions.

A comprehensive safety and security planning tool forLNG facilities was designed by the partnership and augmentedby additional comprehensive training materials. Briefings forstate emergency planners, local fire service officials and LNGfacility representatives were pilot tested and a trainingprogram devised in LNG basics and safety, communications,security measures, local issues based on topography andemergency response, etc. A community outreach program

targeted state and local legislators, businesses, civic and opinionleaders. Local fire service leaders and state emergency re-sponders were trained to use and teach from the pipelineemergencies materials that have been developed and arementioned above. Following the pilot testing phase, the projectwas expanded to other regions and facilities so that new andemerging terminals can share in the benefits of the program.

Georgia Study Committee onLiquefied Natural GasInfrastructure, Security andReliability

Passed during Georgia’s 2005 legislative session, HouseResolution 92 established a bipartisan Joint House and SenateStudy Committee on liquefied natural gas infrastructure. Whilethe committee’s original intent was to focus on LNG infra-

structure, itspurview quicklyexpanded to covernatural gasdelivery, transpor-tation, security andreliability acrossthe state andthroughout theSoutheast. Duringa meeting inSeptember of2005, the JointStudy Committeeestablished anAdvisory Commit-tee comprised ofindustry andorganizationsspecializing inLNG-relatedissues. ThisAdvisory Commit-tee was chaired by

Representative Harry Geisinger of Georgia, who also serves asan Executive Committee member on the Southern StatesEnergy Board. Other members of the Advisory Committeewere representatives from Atlanta Gas Light, SCANA,Southern Natural Gas, two public service commissioners,Georgia Natural Gas, Georgia Power, British Petroleum andthe Southern States Energy Board, among many others. Intotal, the Advisory Committee was composed of twenty-fivevoting members, two of which represented the SSEB. TheAdvisory Committee held four meetings, and the Joint StudyCommittee held two meetings. The Advisory Committeepresented three recommendations to the Joint Study Commit-tee, all of which were adopted. These included 1) introducinga resolution supporting offshore inventory; 2) encouraging theGeorgia Public Service Commission (PSC) to allow AGL

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Resources to seek long-term contracts; and 3) discouraging addi-tional statutes on cost recovery. Adoption of these recommenda-tions resulted in the passage of Senate Bill 209, which amends theOfficial Code of Georgia by allowing the Georgia PSC 90 days aftera hearing to issue a commission order regarding a gas supply plan oradjustment factors filed by a gas utility. If the Georgia PSC doesnot respond, positively or negatively, within this time period, theplan or adjustment is considered approved by operation of law.

Radioactive Materials:Emergency Response andTransportation PlanningHigh-level Radioactive WasteTransportation

With the ever-increasing focus on nuclear power, the SouthernStates Energy Board’s Radioactive Materials Transportation Com-mittee continues to be at the forefront of shaping policy and makingdecisions related to best practices for the safe, efficient and effectivetransport and storage of the Nation’s spent fuel and high-levelradioactive waste. Furthermore, the Committee, whose membershipincludes regional, gubernatorially-appointed state emergencyresponse planners, radiological health professionals and other stateagency officials, is engaged with the U.S. Department of Energy’sOffice of Civilian Radioactive Waste Management (OCRWM) toaddress specific issues relevant to the development of the firstfederally designated repository for spent fuel and high-level radioac-

tive waste, knownas YuccaMountain,located approxi-mately 100 milesnorth of LasVegas, Nevada.

Throughoutthe past year, theCommittee hasbeen active ininvolving Boardmembers indecisionssurroundingnuclear issues. InOctober 2005,the Committeeco-sponsored,with the NationalConference ofState Legislatures,a Yucca Moun-tain Tour andBriefing designed

to specifically inform and engage state legislators about theproposed repository. The Board was represented by legislatorsfrom Arkansas, Florida, Georgia, Maryland, Mississippi andMissouri. The Committee has provided additional opportunitiesfor state involvement through its ongoing participation in theDOE Technical External Coordination Working Group meetings,which are designed to facilitate dialogue between DOE andinterested parties regarding radioactive waste transportation.Through this endeavor, SSEB staff, as well as representatives fromthe states of Alabama, Arkansas, Florida, Louisiana, NorthCarolina, South Carolina, Tennessee and Texas, interact withfederal officials and participate in topic groups related to securityissues, shipment routing and state funding.

In other activities, the Committee is in the process ofupdating the SSEB Spent Fuel and High-Level Radioactive WasteTransportation Handbook, which acts as a reference guide forthe southern states to use when dealing with nuclear waste and itstransportation.

Transuranic WasteTransportation

For the past 17 years, the Southern States Energy Board hasmaintained a cooperative agreement with the U.S. Department ofEnergy's Carlsbad Field Office to develop policies and procedurestowards the aim of safely transportating shipments of transuranic

(TRU) waste to the Waste Isolation Pilot Plant (WIPP) nearCarlsbad, New Mexico. The planning arm of SSEB responsiblefor implementing the task is its Transuranic Waste TransportationWorking Group. The Working Group representatives are guber-natorial appointees each specializing in an area of expertise suchas transportation planning, radiological health or emergencyresponse. The current roster of states participating on this

A Yucca Mountain Project scientist tests for watermovement in rock inside Yucca Mountain.Photo courtesy of the U.S. Department of Energy.

Drums of transuranic waste are stacked in a disposal room where salt willeventually flow and permanently encapsulate the containers.Photo courtesy of the U.S. Department of Energy.

Current Programs & Activities

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committee are Alabama, Arkansas, Georgia, Kentucky,Louisiana, Maryland, Mississippi, Missouri, Oklahoma, SouthCarolina, Tennessee, Texas, Virginia and West Virginia.

Foreign Research ReactorSpent Nuclear Fuel

The U.S. Department of Energy has partnered with theSouthern States Energy Board since 1994 to safely transportforeign research reactor spentnuclear fuel from countriesabroad to both the SavannahRiver Site and the IdahoNational Laboratory (INL). Thereturn program is a part of theU.S. government’s non-prolifera-tion policy to ensure the materialwill not be diverted into weaponsof mass destruction. The originof this policy dates back to theAtoms for Peace Program in the1950's, during which the UnitedStates agreed to take backforeign research reactor spentnuclear fuel which was loaned toforeign nations to promotepeaceful applications of nuclearenergy.

SSEB’s involvement in theprogram formalized from thecreation of an ad hoc committeeto assist in the transportationplanning for two urgent reliefshipments of foreign spent fuel. After the successful comple-tion of these shipments, the Department adopted their officialpolicy concerning the return of these materials which led tothe development of SSEB’s Foreign Research Reactor SpentNuclear Fuel Transportation Working Group and the Cross-Country Transportation Working Group (CCTWG).

Since their formation, these committees have assisted thetransportation planning process by informing their stateagencies and local officials about the program, coordinatingwith the shippers and state officials to develop a transporta-tion plan and identifying first responder needs. DOE is in itstenth year of the 13-year return program and relies heavily onthe efforts of the SSEB committees to implement detail-oriented planning for safe and secure transport.

Shipments of this material are conducted by the modesof highway or rail. The majority of the shipments enter theUnited States via the southern region and are stored at SRS orINL depending on the fuel type. If the fuel must be shippedcross-country to Idaho, the CCTWG coordinates with DOEto develop a transportation plan for movement from SRS toINL. SSEB membership in the CCTWG is composed of thestates of Georgia, Kentucky, South Carolina and Tennessee.

These states are a part of the transportation corridor forDOE’s primary and alternate routes.

To date 34 shipments have been received at the SavannahRiver Site, 28 of which have entered the United States throughthe Naval Weapons Station Charleston in Charleston, SouthCarolina. Throughout the DOE complex, the transportationof foreign fuel has been widely recognized as a model programfor federal/state collaboration. SSEB’s participation in thiscampaign through its member states has laid the foundation for

conducting shipments in a safe anduneventful manner.

To assist with preparation forthese shipments, SSEB issuessubgrants in excess of $1 millionper year to states along the initialshipping corridor from the SRS inAiken, South Carolina, to WIPP.This funding supports equipmentpurchases, emergency responsepreparedness activities, publicoutreach programs, shipmenttracking and other planningactivities in each state. The conceptof regional transportation planninghas been and continues to be thefactor behind the success of thisprogram. In this spirit, theWorking Group assisted DOE inselecting an alternate transportationroute post Hurricane Katrina toalleviate the depleted resources ofAlabama, Mississippi and Louisiana.By working cooperatively, the

southern states where able to divert the shipments alonginterstates in Georgia, Tennessee, and Arkansas beforereconnecting with the primary route in Texas. In early 2006,the primary Interstate-20 corridor was re-opened, and 165shipments are expected to traverse the region during thiscalendar year.

The WIPP facility has received over 4,555 shipments ofcontact-handled (CH) transuranic waste since opening onMarch 26, 1999. SRS, which began shipping in 2001, has madeover 600 shipments and is steadily approaching one millionmiles of highway transport. Currently SRS sends approxi-mately four to six TRU shipments per week to WIPP. The OakRidge National Laboratory, another major DOE laboratory inthe South, could begin shipping CH-TRU waste towards theend of the year. In addition, ORNL and SRS will beginshipping remote-handled (RH) TRU waste in early 2007.

In addition to planning efforts for major DOE laborato-ries, the TRU Working Group has facilitated transportation ofthe waste from DOE’s Small Quantity Sites (SQS) as well.Three SQS, which are located in the northeastern section ofthe United States, led to the incorporation of Maryland,Virginia and West Virginia into the TRU Working Group.

Foreign Spent Nuclear Fuel being removed from a shippingcask, resting at the bottom of a water-filled basin at theSavannah River Site.Photo courtesy of the U.S. Department of Energy.

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Transuranic waste from the Knolls Atomic Power Laboratory andSeparation Process Research Unit in upper state New York and theBettis Atomic Power Laboratory in Pennsylvania will utilizetransportation routes through the three southern states. SSEBissued subgrants to each state in the amount of $150 thousand peryear to initiate training programs and preparedness activities inanticipation of the shipping campaign.

Southern EmergencyResponse Council

Formed in 1972, the Southern Emergency Response Council(SERC) exists as a formalized emergency response agreementamong the southern region to respond in case of a radiologicalincident. SERC representation is comprised of the 14 signatorystates of the Southern Agreement for Mutual State RadiologicalAssistance, including Alabama, Arkansas, Florida, Georgia,Kentucky, Louisiana, Mississippi, Missouri, North Carolina,Oklahoma, South Carolina, Tennessee, Texas and Virginia.

The Southern Agreement for Mutual State RadiologicalAssistance is implemented through the Southern Mutual RadiationAssistance Plan (SMRAP). Created as a blueprint for coordinatingradiological emergency assistance capabilities among participatingstates in the southern region, SERC representatives review, reviseand administer SMRAP on an annual basis to reflect changes instate emergency response capabilities and equipment. Thisdocument outlines the mutual aid agreement, the implementationprocess, emergency responsecontacts and available state resources.

An annual SERC meeting is heldby SSEB to provide members with aforum to discuss matters related toSMRAP. Furthermore, SSEBoperates as the regional coordinatorfor the testing of SMRAP activationprocedures during joint power plantexercises between the states. Thegroup convened in San Diego,California, for the 2006 meeting.The major topic of discussion washow to integrate the SMRAPinformation with data maintained bystates’ Department of Homeland Security.

Regional RecyclingMarket Development

The Southern States Waste Management Coalition was createdby resolution of the Southern States Energy Board in 1992. Areasof interest include waste minimization, source reduction, recycling,composting, waste to energy, land filling and re-fill/re-use.

In cooperation with the U.S. Environmental ProtectionAgency’s Region IV office, the Coalition launched the RecycleGuys campaign in 2001. Created in 1997 by the South CarolinaDepartment of Health and Environmental Control, the Recycle

Guys are animated characters featured in a series of public serviceannouncements (PSAs) to promote recycling and energy conserva-tion. Their message is conveyed in a variety of video clips andradio spots.

During Phase I of this program, the states of Alabama,Florida, Georgia, Kentucky, Mississippi and Tennessee wereawarded funding through the Southern States Energy Board toadopt the existing South Carolina Recycle Guys model by purchas-ing three public service announcements. Phase II of the RecycleGuys campaign began in 2003 and was extended through December2006. Participants include the eight EPA Region IV states ofAlabama, Florida, Georgia, Kentucky, Mississippi, North Carolina,South Carolina and Tennessee. The current funding for Phase II ofthe regional campaign is used to strengthen the state campaigns bypurchasing cable television air time for the Recycle Guys PSAsadopted during Phase I, purchasing additional Recycle Guys PSAsor financing other Recycle Guys promotional activities identified bythe state Recycle Guys campaign coordinators. The Recycle Guyscampaign continues its recognition as a key component to theregion’s public and political awareness activities. Outside the SSEBregion, several states, communities and universities have adoptedthe campaign. Further, the South Carolina Department of Healthand Environmental Control reports that they have sent educationalmaterials for distribution to recycling coordinators in the countriesof England and Ireland.

In light of budget and travel restrictions within state and localgovernments, a portion of the Phase II funding is allocated to travel

reimbursement awards. These awards are necessary to obtain stateand local officials’ involvement in important national and regionalrecycling meetings.

Electric Utility ProgramElectric utility customers are experiencing some of the largest

price increases in decades. This is due in part to the rising cost offuels and the expiration of rate caps in states that have chosen tooperate in a competitive market. For a number of years, the electricutility industry has experienced dramatic changes in the way theyconduct business. Today, the utility industry is a blend of competi-tion and regulation. Three of the member states of the SSEB,along with a number of other states nationally, are operating in a

The Recycle Guys appear in a series of public service announcements promoting recycling and energy conservation.Graphic courtesy of the South Carolina Department of Health and Environmental Control

Current Programs & Activities

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competitive retail market. The remainder of the states hascontinued in a regulated rate environment.

The Energy Policy Act of 2005 enacted changes in theelectric utilities industry. Mandatory and enforceable reliabilityrules now reside with the federal regulatory body as opposedto states. While states have the authority for siting transmis-sion infrastructure, the federal government can authorize thesiting if it is not done in a timely manner. With the broadenedresponsibilities at the Federal Energy Regulatory Commission,there appears to be increasing movement towardregionalization.

The Electric Utility Task Force, composed of SouthernStates Energy Board members, was established in 1997. TheTask Force provides a regional forum for the southern statesto exchange knowledge and ideas on an ever changing electricutility industry. SSEB’s Vice Chairman, Senator John C.Watkins of Virginia, and Dr. Patrick R. Esposito, WestVirginia Energy Advisor and Governor Joe Manchin’sAlternate to the Board, serve as co-chairs of the Task Force.

Energy andEnvironmentLegislation

The Southern States Energy Board’s Energy and Envi-ronmental Legislative Digest is an annual publication, whichhighlights legislative trends in the South. For more then 20years, SEEB has published the Digest as a research tool andreference guide for state legislators, their staffs and industry tofind, develop and refine laws in their respective states andterritories.

This year’s Digest was redesigned to provide the Boardwith a more useful reference document for their futurelegislative endeavors. This new design highlights specific issueareas that held particular significance during this currentlegislative session. Additionally, the document still maintainsits original form in referencing passed significant energy andenvironmental-related legislation in the southern states.

During 2006, SSEB members signed more than 500energy and environmental bills into law. Energy-relatedlegislation focused primarily on coal, fuel issues and utilities.Environmental measures addressed emergency management,eminent domain and land management and conservation.Legislation in the South reflects a deep commitment by policy-makers to protecting our environment and ensuring safe,reliable and efficient energy for this region.

Industry PartnershipsThe Southern States Energy Board works closely in

partnership with its Associate Members to foster economicdevelopment in the southern region. Founded in 1984, theAssociate Members represent the region’s leading energy andtechnology providers and contribute invaluable expertise onthe economic and social implication of federal and state

During a briefing to legislative members of the Board, SenatorJohn C. Watkins of Virginia presents legislative highlights andtrends from the SSEB member states’ 2005 sessions. SenatorWatkins serves as Vice-Chairman of the Board.

energy and environmental policies. These activities are integralto providing a balanced and responsible approach to environ-mental regulation that is economical and efficient.

During this past year, the Associate Members discussedthe challenges and possible solutions of implementing theEnergy Policy Act of 2005. The Associate Members also haveaddressed matters related to electric utility issues such as the re-emergence of the nuclear industry and grid modernization;state responses to energy emergencies; energy security; low-income home energy assistance; air quality; carbon manage-ment; natural gas supply and infrastructure; water for energy;and state energy and environmental legislation.

Associate MembersAGL ResourcesAmerican Electric PowerAssociation of American RailroadsBP America, IncorporatedCenter for Energy and Economic DevelopmentChevronTexaco CorporationComposite Technology CorporationDominionEast Kentucky Power CooperativeEdison Electric InstituteEntergy ServicesFlorida Power & Light CompanyNational Coal CouncilNational Mining AssociationNuclear Energy InstituteOld Dominion Electric CooperativePeabody EnergyPraxair, IncorporatedProgress EnergyRentech, IncorporatedSantee CooperSCANASouthern Company (The)TECO Energy, Inc.TXU CorporationTennessee Valley Authority

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Sources of SupportSources of SupportSources of SupportSources of SupportSources of Support

Core funding for the Board comes from the appropria-tions of its 18 member jurisdictions. Each member’s share ofsupport is determined by a formula written into the originalCompact. The formula uses relative state population, percapita income and equal shares as factors. The Board has notrequested an increase in state appropriations since 1987.

The Board also is authorized to accept funds from anystate, federal agency, interstate agency, institution, person, firmor corporation provided those funds are used for the Board’spurposes and functions. This year, additional support wasreceived for special projects fromresearch grants, cooperative agree-ments and contracts from the U.S.Army Tank-automotive and Arma-ments Command’s Alion Science andTechnology Corporation, U.S.Department of Agriculture, U.S.Department of Energy, U.S. Depart-ment of Transportation, U.S.Environmental Protection Agencyand various other funding sources.

In addition, SSEB maintains anAssociate Members programcomprised of industry partners whoprovide an annual contribution to theBoard. Membership includesorganizations from the non-govern-mental sector, such as corporations,trade associations and publicadvocacy groups. The AssociateMembers program provides anopportunity for public officials andindustry representatives to exchangeideas, define objectives and advanceenergy and environmental planningto improve and enhance the South’swell-being.

Alabama ......................................... $32,572

Arkansas ......................................... $31,027

Florida ............................................ $47,212

Georgia ........................................... $35,782

Kentucky ........................................ $32,197

Louisiana ........................................ $33,817

Maryland ........................................ $37,192

Mississippi ..................................... $29,077

Missouri ......................................... $36,247

North Carolina ............................. $37,042

Oklahoma ...................................... $32,512

Puerto Rico ................................... $25,597

South Carolina .............................. $31,372

Tennessee ....................................... $34,267

Texas ............................................... $55,402

U.S. Virgin Islands ........................ $25,297

Virginia ........................................... $38,362

West Virginia ................................. $28,732

Sources of Support

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Selected Reports & PSelected Reports & PSelected Reports & PSelected Reports & PSelected Reports & Publicationsublicationsublicationsublicationsublications

Selected Reports & Publications

Energy and EnvironmentInformation

Annually, numerous requests for specific technical andpolicy information occur from SSEB members, state andfederal government officials, legislators and other parties,including the general public. SSEBprovides direct technical and analyticalsupport to its constituents on a varietyof energy and environmental issuesfacing the region.

SSEB also maintains a website,accessible at www.sseb.org, that servesas a primary link to energy and environ-mental resources on the internet.Visitors can quickly link to a variety ofdata and download the latest SSEBpublications. A list of SSEB’s fre-quently requested publications areprovided on the following page.

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Southern States Energy Board

American Energy Security Study. July 2006.This study provides an approach for America to establish energy security and independence through the production of alternativeoil and liquid fuels from our vast domestic resources that include coal, biomass and oil shale. The study also emphasizes the needfor improved domestic enhanced oil recovery programs using carbon dioxide, increased voluntary transportation fuel efficiencyand sensible energy conservation.

Annual Report 2006. July 2006.This report contains a statement by SSEB Chairman Ernie Fletcher, Governor of Kentucky, updates on SSEB programs andactivities, Board members and staff listing.

An Assessment of Biomass-related State Programs and Policies. July 2005.The analysis considers a broad range of policies and incentives throughout the United States amd examines their impact on thebioenergy and biobased product industry. This study was funded by the National Energy Technology Laboratory.

Assessment of Opportunities to Co-locate Ethanol-from-Cellulose Plants at Coal-Fueled Power Plants in the Southeastern U.S.July 2002.Co-locating ethanol-from-cellulose plants near coal-fired power plant projects can result in advantages for both facilities. Thisassessment provides a list of plants and highlights important siting criteria.

Coal: The Indispensable Energy Resource, a Compendium of Vital Information About Coal and the Southern Region. Septem-ber 1997.This special report assesses the coal industry’s presence and contribution to the southern region so that policy-makers can utilizethe information in assessing the growth of their state’s economy.

Coal, Clean Coal Technology and Advanced Power Systems: U.S. Opportunities in Brazil. September 1999.The U.S.-Brazil Coal and Clean Coal Technology Export Package (1) identifies coal and clean coal technology needs for Brazil; (2)summarizes actions that have been taken, are planned or are suggested to position U.S. companies to win projects; and (3)provides points-of-contact and other information that may be of value to companies interested in positioning themselves to sellgoods and services to the Brazilian coal and power industries. The compilation of information and ideas is a resource forcompanies to develop their individual Brazilian marketing strategies.

Coal Regulatory Legislation in the Southern States: 1995-2003. September 2003.SSEB member states’ regulations on the utilization of our coal resources are detailed in this summary document. Included arebrief descriptions of laws enacted with regard to coal and minerals in the southern states during the 1995-2003 legislativesessions. This list is requested frequently from agencies that develop legislation affecting the industrial use of coal and theregulation of environmental quality within their states.

Compendium of Energy Task Forces in the Southern States. January 2002.This is an ongoing compilation of information on the energy task forces in the southern region. It includes reports prepared bythese task forces, as well as executive orders, press releases and meeting summaries.

Economic Benefits of Recycling in the Southern States. August 1996.The Southern States Waste Management Coalition initiated this study on the economic activity associated with recycling in theSouth. It provides information that can be used to promote investment in the regional recycling industry. Analysis considers theemployment and value-added by processing materials recovered from the municipal solid waste stream and using these materialsin manufacturing.

Energy and Environment Legislative Digest 2006. July 2006.The legislative digest is an annual synopsis compilation of representative energy and environmental quality legislation enacted bySouthern States Energy Board member jurisdictions. This edition summarizes the laws from the 2006 legislative sessions andincludes an introduction by John C. Watkins, Senator of Virginia and SSEB Vice-Chairman.

Energy Offices in the South. December 2001.The organizational structure, function and scope of state energy offices in the southern region are provided in this 2001 report.The information proves useful to southern lawmakers, their staffs and all parties interested in energy matters in the South.

Selected Reports & Publications

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Energy Policy in the South - Integrating Energy, Environment, and Economic Development: A Balanced and ComprehensiveApproach. September 2001.Prepared for the Southern Governors’ Task Force on Energy Policy, this document was approved by the southern governors onAugust 7, 2001. It contains five key principles and policy options for a southern regional energy policy.

Household Products Management: A Resource Guide for Managing Household Products and Household Hazardous Waste.1999.This guide assists officials who are responsible for the safe management of household product waste and advises residents aboutproper disposal of these products. It is designed for the use and distribution by local governments that do not have householdhazardous waste collection programs and experience in managing household product waste or household hazardous waste.

Industry Survey Final Report - Developing State Policies Supportive of Bioenergy Development. July 2004.Biobased industry officials were surveyed to determine the impact of existing and/or lack of polices on efforts to develop, deployor use biobased technologies or products. Although this survey was focused on industry, in some cases questionnaires were sentthroughout North America to trade associations, and a few questionnaires were sent to selected government officials andacademia throughout North America. The survey asked for comments on the effectiveness of the existing policies and programsand asked to suggest changes in the existing policies and programs or suggest new policies and programs that are needed. Thesurvey also asked those suggesting changes or new policies and programs to explain the rationale for their suggestions.

Integrated Management of Municipal Solid Waste: A Handbook for Local Officials. January 1995.Local officials often face important issues when managing municipal solid waste systems. This handbook answers the questionsthat solid waste managers must ask when developing an integrated solid waste management system and refers the reader to moredetailed information about solid waste management techniques found in the Southern States Waste Management Coalition’sdatabase of solid waste information.

Integration of Systems and Technologies for Clean Coal Power and Industrial Symbiosis in Thailand. January 2004.This report is a product of a three-year cooperative effort, led by the Southern States Energy Board, to promote U.S. systems andtechnologies for clean fossil power and industrial symbiosis in Thailand’s industrial estates.

Nuclear Energy: Cornerstone of Southern Living, Today and Tomorrow. July 2006.New nuclear power plants will be essential to continued prosperity in the South as electricity demands rise rapidly in the fast-growing SSEB states. As stated in this report, nuclear power provides a reliable, economical, carbon-free source of electricity tohelp fuel strong economic growth in the states of the Southern States Energy Board.

Pay-As-You-Throw Programs in the South: Summaries of Existing Unit Pricing Programs for Municipal Solid Waste Collec-tion. June 1997.A product of the SSWMC, this document contains a brief compilation of the programs in the SSEB region as of June 1997. It isintended as a quick reference for local officials interested in PAYT.

Processing Recyclables for Markets: A One-Stop Commodity Guidebook for Local Governments. February 1995.The goal of this guidebook is to assist local leaders and other processors of recyclable commodities in developing processing andmarketing systems that are appropriate, efficient and sustainable. State and local officials throughout the region use this docu-ment on a regular basis.

Southeastern Regional Technology Deployment Workshop: Results and Lessons Learned. September 1999.Following the Southeastern Regional Technology Deployment Workshop in 1999, SSEB compiled a list of results and lessonslearned. The finding are documented in this summary, consisting of (1) background information on the setup of the southeast-ern workshop; (2) a list of incentives and recommendations for deploying innovative technologies at DOE sites; (3) a list of thelessons learned from the southeastern workshop; and (4) results from the post-workshop survey.

Southern Mutual Radiation Assistance Plan (SMRAP). December 2005 (2006 edition available in December).This annual publication contains the general provisions of the Southern Mutual Radiation Assistance Plan, which provides amechanism for coordinating radiological emergency assistance capabilities among participating states. It is updated annually bythe Southern Emergency Response Council, for which SSEB serves as secretariat.

Tires and Solid Waste to Electricity: A Review for Missouri Department of Natural Resources. November 2005.The use of tire-derived fuel (TDF) to produce energy is a viable source of electrical power generation. At the direct request ofthe state of Missouri, SSEB prepared this report on the technical aspects of converting tires and solid waste to electricity; thestatus of TDF and municipal solid waste to energy legislation for state programs; electric utility issues; and specific opportunitiesfor the state of Missouri.

Selected Reports & Publications 39

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SSEB StaffSSEB StaffSSEB StaffSSEB StaffSSEB Staff

Kenneth J. NemethExecutive Director and Secretary to the [email protected]

Kathryn A. BaskinManaging [email protected]

Cloyce B. BrackettPolicy Analyst, Nuclear [email protected]

Joan T. BrownSenior Accounting [email protected]

Carolyn C. Drake, Ph.D.Director, SSEB Washington, D.C. [email protected]

Monica A. FluellenStaff [email protected]

Gary P. GarrettSenior Technical [email protected]

Leigh T. ParsonGrants and Accounting [email protected]

Kathy A. SammonsAssistant Director, Business [email protected]

Kimberly A. SamsManager, Program [email protected]

Brian M. SernulkaLegislative [email protected]

Canissa N. SummerhillStaff [email protected]

Christopher U. WellsAssistant Director, Nuclear [email protected]

Adjunct StaffPhillip C. BadgerTechnical Advisor on [email protected]

Gerald R. Hill, Ph. D.Senior Technical [email protected]

Gregory F. MartinTechnology Management [email protected]

Mark A. ShillingSpecial [email protected]

Chester B. SmithTechnical [email protected]

C. Michael SmithSenior Policy [email protected]

41SSEB Staff

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FFFFFrequentlyrequentlyrequentlyrequentlyrequently-Used Acronyms-Used Acronyms-Used Acronyms-Used Acronyms-Used Acronyms

Following is a list of acronyms frequently used in theAnnual Report.

AMT Alternative Minimum TaxBRAC Base Realignment and ClosureBUFF Battlefield Use Fuel of the FutureCCTWG Cross-country Transportation Working GroupCH Contact-handledCO2 Carbon DioxideCTL Coal-to-LiquidDoD U.S. Department of DefenseDOE U.S. Department of EnergyEOR Enhanced Oil RecoveryEPA U.S. Environmental Protection AgencyEPAct2005 Energy Policy Act of 2005F-T Fischer-TropschFERC Federal Energy Regulatory CommissionGIS Geographic Information SystemIDB Industrial Development BoardINL Idaho National LaboratoryITRC Interstate Technology Regulatory CommissionLNG Liquefied Natural GasMMV Monitoring, Measurement and VerificationNAAQS National Ambient Air Quality StandardsNETL National Energy Technology LaboratoryNSR New Source ReviewOBP Office of the Biomass ProgramOCRWM Office of Civilian Radioactive Waste

ManagementOPEC Organization of Petroleum Exporting CountriesORNL Oak Ridge National LaboratoryPSA Public Service Announcement

PSC Public Service CommissionRH Remote-handledSESC Strategic Energy Security CorporationSECARB Southeast Regional Carbon Sequestration

PartnershipSERC Southern Emergency Response CouncilSMRAP Southern Mutual Radiation Assistance PlanSRS Savannah River SiteSSEB Southern States Energy BoardSPR Strategic Petroleum ReservesSQS Small Quantity SitesTDF Tire-derived FuelTED Total Energy DevelopmentTRU TransuranicUSDA U.S. Department of AgricultureWIPP Waste Isolation Pilot Plant

Frequently-Used Acronyms 43

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NotesNotesNotesNotesNotes

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NotesNotesNotesNotesNotes

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AlabamaArkansasFloridaGeorgiaKentuckyLouisianaMarylandMississippiMissouri

North CarolinaOklahomaPuerto Rico

South CarolinaTennessee

TexasU.S. Virgin Islands

Virginia

West Virginia

Southern States Energy Board6325 Amherst Court, Norcross, Georgia 30092

[email protected] www.sseb.org

(770) 242-7712 (770) 242-9956 fax1 (770) 242-0421 fax2

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