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