Energy Law

7 – Renewables

Fall 2014October 14, 2014

Alan Palmiter

Not for distribution- for study purposes only

Topic roadmap1. Renewables in the energy mix

– Compared to other energy sources– What is sustainable energy?

2. Renewables production / transmission– Wind, solar, geothermal– Transmission issues

3. Regulation of renewables– Permitting and siting– Development on federal land– Promotion (state, federal and international

levels)

4. Future of renewables– Part of energy mix– Distributed generation – International perspective

1. Nuclear power in energy mix

7

Energy Flow, 2011 (Quadrillion Btu) Energy Flow, 2013 (Quadrillion Btu)

7

http://www.eia.gov/totalenergy/data/annual/pecss_diagram.cfm

Energy Sources Uses

http://www.eia.gov/totalenergy/data/annual/perspectives.cfm

Energy Sources

(Click for video – 3.50 – 22.45 )

1. True or false? As a percentage, more renewable energy goes to producing electricity than to any other end use.

2. Which is true – a. Power production from hydro

power has increased every year since 2005.

b. Power production from renewable sources, other than hydro, has increased every year since 2005.

c. Power production from hydro power sources is at an all-time high.

d. Power production from renewable sources, other than hydro, has been flat.

3. Which is false -a. In 2011, wind turbines in the

United States generated about 3% of total electricity.

b. In 2011, oil accounted for more power generation in the United States than renewables.

c. Of all renewable sources of power, solar accounted for the largest percentage of electricity generation in 2011.

d. The United States accounts for 5% of the world’s population and ~20% of the world’s CO2 emissions.

4. True or false? Renewable energy can only be used to produce electricity.

Pop QuizRenewables in energy mix

Answers: 1-T / 2-b / 3-b / 4-F

EIA: Renewables production by state

2. Renewable energy production / transmission

(Click for video – 2:16)

Source: NREL- Link

(Click for video – 2:01)

Source: NREL- Link

(Click for video – 2:16)

Source: NREL- Link

(Click for video – 2:32)

Source: NREL- Link

Source: Wikimedia, Link

Transmission of Renewable Energy

Source: ERCOT, Link

Source: ISO/RTO Council, Link

Renewables

Pros: Zero emissions into the

atmosphere Reduces reliance on

fossil fuels - good for environment & energy security

Job stimulation If it can be harnessed,

potential is unlimited

Cons: Currently more expensive

than traditional power generation

Variable power production Requires regulatory

incentives to remain competitive (given current technologies)

Location constrained

RE Production• Wind, solar, geothermal – permitting

and citing at state and local levels• Hydro regulation unique – federal

government grants licenses• Interconnection – PURPA (also subject

to policies of utilities)• Green v. green -- federal env statutes

RE Transmission• Siting and permitting – state level• Regional operations

(interconnections / RTOs and ISOs)• Markets and practices – FERC

3. Regulation of renewables

Renewable Portfolio Standard (RPS)• requires utilities to use/procure

renewable energy/credits • Specified percentage of retail

electricity sales or generating capacity • specified schedule

Feed-in-Tariff (FIT)• performance-based incentives • cash payments based on KWHs

renewable energy

Tax Incentives• corporate tax incentives• personal tax incentives • property tax incentives

Promotion of Renewable Energy

1900 19901960 20201930

Renewables- timeline

Clean Water A

ct (1972)

Federal P

ower Act

(1920)

First u

tility sc

ale wind tu

rbine (1951)

Solar PV deve

loped (1954)

Public Utility

Regulatory Polici

es Act

(1978)

Clean Air Act

(1970)

Piedmont Envtl.

Council v. F

ERC (2009)

Federal P

ower Act

Amendments (1935)

Energy Policy

Act of 2

005

Energy Policy

Act of 1

992

Alexandra Klass

Elizabeth Wilson

Interstate Transmission Challenges for Renewable Energy: A Federalism Mismatch

• Challenge for renewables: transmission, transmission– Wind disbursed (rural)– Far from where used (urban)

• Regulation– Oil pipelines: eminent domain– Electric transmission: less so

• Proposal– Federal action unlikely– Coordinated state effort: wind

producers + power users– Enhanced authority to spread

transmission costs

No state approval for construction or for eminent domain

State approval before construction BUT NOT before eminent domain

State approval before construction AND before eminent domain

  NO eminent domain

Siting / Eminent Domain - Oil Pipelines

Tran

smis

sion

Transmission

Transmission

Transm

ission

  No state “certificate of need” for construction or for eminent domain

  State “certificate of need” before construction BUT NOT before eminent domain

  State “certificate of need” before construction AND before eminent domain

Siting / Eminent Domain – Power Transmission

WIND

Tran

smis

sion

Transmission

Transmission

Transm

ission

1. True or false? The federal government has the authority to site the construction of wind turbines on private land.

2. Which is false – a. Utilities need not purchase

electricity produced from renewable energy producers.

b. Renewable energy generation is typically can be sited anywhere.

c. The US electrical grid, a single system, stretches from coast to coast.

d. States regulate interstate power transmission markets and practices.

3. Which is true --a. A feed-in-tariff is a “demand side”

mechanism for promoting renewable generation.

b. A renewable portfolio standard is a “supply side” mechanism for promoting renewables.

c. A feed-in-tariff is a regulatory incentive for renewable power production.

d. A renewable portfolio standard is a free market mechanism for promoting renewable power production.

4. True or false? Transmission of wind generated power is likely to involve state coordination.

Pop QuizRenewables – regulation

Answers: 1-F / 2-A / 3-c / 4-T

4. Future of renewables

(Source: Fresh Energy- Link)

Europe Electricity from renewables (2010)

Source: European Commission, Eurostat, Link (2010)

Source: European Commission, Eurostat, Link

Europe Electricity from renewables (2000-10)

Energy federalism

Renewables Federal State

Production None (except offshore wind) State utility rules

Transmission FERC (interstate) States (intrastate)Regional Transmission Org

Distributed generation PURPA State and local

Incentives / subsidies Production tax credit Renewable portfolio stds

Feed-in tariffs

Class HypoThe Utilities Commission of the State of Serenity is considering whether and how to promote renewables in the state’s power grid. The Commission wants to promote local job-producing projects.

Please prepare comments to the Commission outlining your views on what the Commission should do. Consider legal ramifications.

Group 1: Sierra Club (seeking to promote renewable energy).

Group 2: Affordable Energy Group (concerned with impact of energy prices on low-income customers).

Group 3: American Legislative Exchange Council (ALEC).

The end