the jobs project 2010 strategy report - final

7/29/2019 The JOBS Project 2010 Strategy Report - Final

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2010StrategyReport


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1

INTRODUCTION

TABLEOFCONTENTS 1

EXECUTIVESUMMARY 2

THEJOBSPROJECTINBRIEF

3

ENERGYFUTUREINAPPALACHIA 5

OBJECTIVES 6

SMARTJOBS

SMARTTECH 7

SMARTSCHOOLS 11

SMARTGROWTH 13

SMARTMARKETS 15

SMARTSOLUTIONS 17

APPLICATIONS

INTEGRATIONOFSMARTJOBS 19

LONGTERMIMPACTSOFTHEJOBSPROJECT 21

RECOMMENDATIONS 23

SOURCES

_____APPENDIX

T

ableofContents


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2

Leadingscientistsfromaroundtheworld

recommendseveralmeasurestoaddressthe

issueofclimatechange. IntheUnitedStates,

thepushtowardlegislationwouldcreatea

regulatorymarketforindustrytoreduce

greenhousegasemissions,andinvestmentin

renewableenergyinfrastructureiswellunderway.Additionally,afederallymandated

renewableenergyportfoliostandard,if

instituted,wouldrequireeachstatetodiversify

energyproductionandincreaserenewabl

energycapacity.

e

Pendingmeasurestomitigatecarbon

production,coupledwiththeEPAsrecent

decisiontoholdandreview79permitsfor

surfaceminingcastsashadowoveramajor

jobsprovider

in

the

Central

Appalachian

region:thecoalindustry.Localandstate

governmentsarereliantontheseverance

taxesgeneratedbycoalextraction,but

minablecoalwilllikelyberestrictedbybothof

thesefederaldecisions. Thecommunitiesthat

willsufferthemostfromcurrentandpending

environmentalpoliciesarethosethataremost

dependentonthecoalindustryfortheir

survival.ThustheJOBSProjectseeksajust

transitionforCentralAppalachiathat

recognizes

the

sacrifices

made

by

coal

miners

forthepast150yearsandthatpreparesthem

forAmericasenergyfuture.

Itisclearthatmorediverseeconomicpathways

mustbecultivatedtomitigatethefuture

impactsupontheruraleconomieswhose

primarymeansofsubsistenceisexpectedto

decline.Factorsincludingclimatelegislation,

localtaxstructures,ruraltopography,andthe

finitesupplyofcoalintheregionwillguide

strategicplanningforanewenergyfuturein

Appalachia.

TheJOBSProjectispursuingsustainable

developmentthatconsidersthelongterm

socialandecologicaleffectsasamodelforthe

CentralAppalachiancommunitiesthatwillbear

theburdenofcarbonrelatedpolicies. This

reportisacollaborativeproposalthatprovides

anoverviewofourstrategicenergyplanforthe

coalfieldregionofCentralAppalachiafor2010.

ExecutiveSummary


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JOBSteamsprimaryfocusisinstitutional

developmentthroughthefosteringof

precedentsettingindividualprojectswith

considerationstobothreplicabilityandthe

efficienciesofintelligentclusteringandsystems

development. Wearepresentlyinvestigatingopportunitiesforthedevelopmentoflocally

ownedwindfarms,locallyownedbiomass

facilitiesandotherrenewableenergy(RE)

resources,aswellasintegratingenergy

efficiencyandsustainabledesignintoCentral

Appalachiasregionaldevelopmentplans.JOBS

alsoresearchesandadvocatesforfederaland

statepolicieswhichenableREtechnologiesand

sustainableindustrytoflourish. Wewill

cultivatenewindustrywithintheregion

throughstimulating

localized

natural

resource

basedeconomies.

Furthermore,ourmissionpromotesthe

productionanduseofREtechnologiesthat

createnewopportunitiesforcitizen

participation. Identifyingpartnersfromkey

arenaswithintheregionandofferingthe

buildingblocksforrenewableenergy

development,theJOBSProjectwillhelpto

guidearegionaltransitiontowardsclean,

reliable

energy,

long

term

employment,

economicdiversificationforcoalfield

communities,andindustrialgrowthintheRE

sector.

Ourstrategicpartnershipswillusearuralmodel

forlocallyownedREdeploymentthroughout

theCentralAppalachianregion,beginningwith

thecoalproducingcountiesinsouthernWest

Virginia. Creatingamulticountypartnership

andaregionalmodelfordevelopment,the

JOBSProjectispresentlydevelopingplansfora

20MW+wind

generation

facility,

and

exploring

pyrolysisbiomassopportunities.Thesepilot

projectswill(1)acceleratewidespread

commercializationofREinourtargetregion,(2)

contributetoaknowledgebaseofrenewable

energyimplementation,(3)createjobsfor

displacedworkersandcommunitiesduring

Americasenergytransition,and (4)stimulate

technologicalinnovationandcreateR&D

incentivesfor

RE

manufacturers

to

locate

in

CentralAppalachia.

TheJOBSProjectinBrief

Just&OpenBusinessesthatareSustainable

LocallyOwnedRenewableEnergy

LocallyownedREisdefinedbyitssizeand

ownershippattern.Bydefinition,thecategory

excludesREdevelopmentbycommercial

developersasprimaryowners.Locallyowned

REincludesprojectsownedbyemployees,local

investorsthroughtheformationofLLCs,or

publiclyfinancedprojectslikewind

developmentonamunicipalutility,school

district,countyjail,orhospital. Theseownersmaypartnerwithcommercialdevelopersfor

technicalorfinancialassistance.

LocallyownedREprojectsarecharacterizedby

broadbasedcitizenparticipationwhere

membersofthecommunityhaveafinancial

stakeinlocalenergyproduction. Typical

projectsvaryinsizebetween1100megawatts.

Projectsaredesignedforbulkpowergeneration

fedintothepowergridtosupplyenough

energyfor

thousands

of

homes.

When

RE

projectslikebiopowerandwindaredeveloped

locally,theeconomicadvantagesaccruetolocal

citizens. LocallyownedREprojectsincreasethe

localtaxbaseandemployavarietyoffinancing

structureswhichhavefeaturesdesignedto

stimulateentrepreneurship,encourageenergy

efficiency,andeffectivelyrevitalizerural

economiesinthelongterm.Severalstudies

haveshownlocalownershiptohavefargreater

economic,jobscreationandsocialbenefitsthan

absentee

ownership.

(Kildegaard

&

Myers

Kuykindall,2006;Bolinger,2001;GAO,2004)

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TheJOBSProjectinBrief

FinancialModels

Wearepresentlyexploringthefollowing

financialmodels:

ITCGrant:Wewillutilizethefollowingtax

creditforthelocallyownedpilotproject.

Section48oftheInternalRevenueCodeprovidesanInvestmentTaxCredit(ITC)for

certaintypesofcommercialenergyprojects,

includingsolar,fuelcells,andsmallwind

projects(allofwhichareeligibleforacredit

equalto30%oftheprojectsqualifyingcosts).

Ingeneral,theITCiscurrentlyavailableto

qualifiedprojectsthatareplacedinservice

priortotheendof2016.

TheITCisrealizedintheyearinwhichthe

projectbegins

commercial

operations,

but

vests

linearlyovera5yearperiod.Further,ifthe

projectqualifiesfortheITCitcanchooseto

applytotheTreasuryDepartmentforacash

grantthatisequalto30%ofthequalifiedcosts

oftheproject.Thiscashgrantisinlieuofthe

ITC.ThismeansthevalueoftheITCcanbe

realized,evenifthetaxpayercannottake

advantageofthecredit.

FlipModel:TheFlipmodelisabusiness

model,

typically

structured

in

the

form

of

a

LimitedLiabilityCompany(LLC),thatwas

pioneeredinMinnesota,thenationsleaderin

locallyownedwindprojects. TheFlipModel

providesamechanismforlocalinvestorswith

limitedtaxliabilitytopartnerwithcorporate

equityinvestorsthattakeadvantageofthe

FederalProductionTaxCredit(PTC).Local

investorscontributesomestartupcapitalto

performmostofthepredevelopmentand

developmentwork,andanoutside(tax

motivated)investorwithasignificanttax

liabilitycontributes

much

of

the

construction

capital.Generally,allocationofthePTCto

participantsintheLLCisproportionaltothe

levelofownershipintheLLC.Thetaxmotivated

investortypicallyownsasignificantportionof

theLLC,often99%,duringthefirsttenyearsof

theprojectsoperation,whenthePTCis

available.WhenthePTCexpiresthetax

motivatedinvestorautomaticallyflipsthe

majorityoftheirportionofthebusinessoverto

thelocalowner. Manyprojectshavebeen

developedinthismannerinthestateof

Minnesotaandthemodeliseasilytransferable

tootherstates.

SmartSustainablePractices

TheJOBSProjectrecognizesthefossilfuel

industryasamajorproviderofemployment

andapredictabletaxbasefortheCentral

Appalachianregion,yetthisindustryoftenlacks

theduediligenceofsustainablepractice.

Conversely,theJOBSprojectpromotesSmart

JOBS(analternativeterminologytogreen

jobs,)whicharecreatedthroughpatternsof

resourceusethataimtomeettheneedsofthe

presentgeneration

while

preserving

resources

forfuturegenerations,thatis,thecreationofa

naturalresourceeconomy.

TheSmartSchoolsandSmartTechnology

projectsareinformedbythetriplebottomline

ofsustainability,reflectedandimplemented

throughour,SmartGrowth(environment),

SmartMarkets(economic)andSmartSolutions

(social)programs.SmartJOBSmeansustainable

jobsthatwillenduretheboomandbust

realities

of

any

market,

in

this

case,

the

economicrealitiesofthecoalfieldregionin

CentralAppalachia.

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EnergyFutureforAppalachia

Historically,theCentralAppalachianregionhas

remaineddependentuponafewresource

extractionindustriessincethelate1860s.The

economicnatureoftheseindustriesandthe

isolatedterrainhascreatedseveralmono

economieswherethereislittletono

competitionoverwages(Boal,1995).Thisfostersanoncompetitivewagemarketthat

makesthesecommunitiessusceptibletothe

boomandbustrealitiesofthecoalindustry.

Thatis,whenthepriceofcoalishighwages

increaseandnewemployeesarehired. When

coalpricesdecrease,employeesusuallynew,

youngerredhatsarelaidoff,andareoften

unabletofindcomparablework,leadingtoa

generallackofstabilityinemploymentinthe

region.(Loannides&Pissarides,1985)

Furthermore,formorethanacentury,state

andlocalgovernmentsdependentoncoal

production,havereceivedadisproportionate

shareofseverancetaxesdrawnfromresource

extraction. Thiscreatesafinancialdependency

ontheseseverancetaxesthatstrengthensthe

presenceofthecoalindustryandhingesthe

operationsoflocalgovernmentsonprivate

interestsinaninherentlyunsustainable

manner. Withthependingshifttoaless

carbon

intensive

economy

as

well

as

mitigating

theenvironmentalfootprintofextraction(e.g.

EPAholding79permits),propertyaswellas

severancetaxeswillgraduallylesseninthe

coalfieldregionuntilthesefundsarenolonger

availableforsustaininglocalandstate

governments.

ToplaceCentralAppalachiansdependence

uponthecoalindustryinperspective,the

UnitedStatesDepartmentofEnergyprojectsin

theirAnnualEnergyOutlook2009thatthe

renewableenergy

sector

will

double

its

output

inthenext15years,whileinthesameperiod,it

predictsthatAppalachiancoalproductionwill

decrease(EIA,2009).ThepriceofAppalachian

coalcontinuestoincrease,whilethecoal

reservesintheregionaredwindling(USGS,

2009). Alreadystateandlocalgovernments

anticipatetheneedforeconomictransitionsin

viewofthethousandsofWestVirginiaminers

andconstructionworkerswhohavelosttheir

jobsin2009(WorkforceWV,2009). Settingthe

trendforworkforcedevelopmentoverthepast

tenyears,nearlysixmilliondollarshavebeen

investedincleantechnologyprojectsinWest

Virginia,yettotaljobsgrowthinthesectorislessthanonepercent.

Accordingto

2007

EIA

state

profile

data,

approximately1.5%ofWestVirginiaselectrical

generationisfromRE,andzeroisgenerated

fromcommunityownedRE.Thestatehas

enoughpotentialREresourcestoprovidea

muchmorediversifiedenergyportfolio.

TheDOEpredictsamorethandoublingofdomestic

capacityinthewindsectoroverthenext15years,

andmorethantenfoldincreaseinbiomasscapacity

(EIA,2009).

TheUnitedStatesDepartmentofAgriculture

informsthemodelofinvestmentinRE

infrastructureforruralcommunitiesthroughan

emphasisonbroadbasedcitizenparticipation

in

creating

strategic

plans

for

development

(USDA,2008). Buildingfromacommunitybase,

theruralcommunitiesofWestVirginiawill

followinthefootstepsofgroupslikeRichmond

Solarwhoworkcloselywithdiversepartnersin

Richmond,Virginia,includinglocalresidents,

thenonprofitsector,andsmallbusinessesto

fosteragreeneconomyandcreatepathways

togoodpayingjobsthroughthedirect

involvementofthecommunity.

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Objectives

TheJOBSProjectwillcatalyzealocallybased

efforttoexpandtheenergyportfolioof

electricalgenerationthroughlocallyowned

pilotREprojects,andthroughREeducationand

jobtraining. Datageneratedandmethodsused

willcontributetoacomprehensiverenewable

energystrategyforCentralAppalachiainwhichthelocallyownedREdevelopmentmodelis

replicated. JOBShasthefollowinggoals:

PlananddeployutilityscaleREsystemsandenergyefficiencythroughalocallybased

effortinsouthernWestVirginiatoprovide

clean,reliableenergyandeconomic

transitionthroughjobcreationandnew

opportunityforruralcommunities.

ImplementmultipleREtechnologies,includingsolar,wind,andbiopowerto

acceleratemarketadoptionofRE

technologiesanddistributedenergy

generationthroughoutCentralAppalachia.

DevelopacomprehensiveREstrategythroughlocalsteeringcommittees,locally

ownedLLCsandaregionaladvisoryboard

toensuresuccessfulREimplementationthat

canbe

replicated

to

bolster

local

Central

Appalachianeconomiesandmeetemerging

energyneeds.

Expandrenewableenergyknowledgethroughformalandinformaleducation

pathways,withattentiontothesocial,

economic,technical,environmental,and

policyissuesandopportunitiesforlocal

involvementinincreaseddeploymentofRE

technology.

Acceleratetheuseofacceptedsustainablestandardsandcertifications(e.g.,FSCand

LEED)toensurethatalldevelopment

throughoutCentralAppalachiaaddresses

theeconomic,socialandecologicalneedsof

specificregionasstructuredbythelocal

steeringcommitteesandcommunityLLCs.

CreatetechnologicalmeansforassessingdistributedruralREclustersinorderto

stimulateinnovation

and

manufacturing

of

REtechnologiesaswellasdevelopareadily

accessiblesustainabilityindex(Human

SustainabilityIndex)formeasuringCentral

Appalachiantransitiontoasustainable

economy.

Localizeallproductionstreamswhichincludebutarenotlimitedto:energy

production,foodconsumptionand

production,and

transportation

fuels.

Eachobjectivecanbeorganizedunderour

SmartJOBSprogram.Withinthisprogramthere

areasetoffiveworkinggroupstobestcapture

thetotalimpactandscopeofsustainableRE

deploymentwithintheregion. Bydeveloping

thesemodels,thekeyarenasinvolvedin

sustainableREdevelopmentarebroughtinto

focusforthepublic:

JOBS

Projects:

SmartTechnologyfocusesonREdevelopmentanddeployment.

SmartSchoolspromotesREeducation.JOBSPrograms:

SmartGrowthsetsandachieveshighstandardsforourprojectsenvironmental

impacts.

SmartMarketspromotestheeconomicmodelsnecessarytodevelopourprojects.

SmartSolutionsengagespeopletoinvestinrenewingtheirlives,andAmericandemocracy.

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SmartTech

Thisprogramfocusesonintegratingthetriple

bottomlineintohowREtechnologyisusedand,

moreimportantly,developed.Forthisreason,

distributedenergygeneration,employee

ownershipandparticipation, localownership,

andcollaborationwithlocalresearch

institutionsaretheessentialelementstotechnologicalinnovation.Bylinkingthe

employeesdirectlytotechnologicalinnovation,

wecanprovideanavenueforREtech

manufacturerstounderstandandusetherich

knowledgethatmanyworkerscanprovidein

ordertoinsuretheefficiency,durability,and

sustainabilityoftheirproducts,andinturn

ensurethesustainabilityofthelocalREfacility.

Byexpandingtheenergyportfoliothrough

biopowerandwinddevelopment,smallscale

REimplementation

will

contribute

to

a

comprehensiveREstrategyfortheregion.

Furthermore,adistributedenergysystemisan

efficient,reliableandecologicallysound

alternativetothetraditionalenergysystem.

Distributedenergyanddemandsideresources

(e.g.,locallyownedRE,PV,&solarthermal)are

avenuestoachievingthesecriticaltargets

(Cowart,2001).AccordingtoEPA,in2009

biopowerandwindmakesup53%ofAmericas

total

RE

production

(EPA,

2009).

PilotProjects:

Thefollowingaretwoworkingexamplesofour

communityownedpilotprojects.

Biopower:Thetargetareasforpilotprojectsfor

locallyownedbiopowerareMingo,Raleigh,and

MonroeCounty,WestVirginiabecausetherearelargequantitiesoffeedstockandcitizen

participationishigh. Eachbiopowerfacilitywill

processsecondarywoodwastefromthetimber

industry,eitherthroughadirectcombustion

systemtoproducesteamandelectricity,or

throughpyrolysis.Theelectricaloutputforthe

directcombustionfacilityisestimatedatan

80%efficiencyratetogenerateenough

electricitytopower1,200homes.Eachfacility

willrequireafeedstockofapproximately

37,800dry

tons

of

wood

residues

annually.

AccordingtoaWestVirginiaUniversitystudy,

thestateproduces2.41milliondrytonsof

woodresiduesperyear(Wang,2006). These

byproductsofthetimberindustryareabundant

withina50mileradiusofbothproposed

facilities.

WearepresentlyworkingwiththeMidAtlantic

Technology,Research&InnovationCenter

(MATRIC)inexploringpyrolysisasaviable

option

for

utilizing

biomass

feed

stocks.

This

is

a

viableoptionforCentralAppalachiabecauseof

itssmallenvironmentalfootprint,andits

productionofbiocharforreclamationof

surfacemines(Demirbas,2002).

Wind:Thetechnicalfeasibilityfor20MW+of

winddevelopmentinthesouthernpartofWV

intheGreatValleyanaturallowlandroute

runningnortheastsouthwestandlyingjust

inlandfromtheBlueRidgeMountainsand

SouthMountainisbasedonexistingnational

RenewableEnergy

Laboratory

(NREL)

wind

data,

preliminarysiteassessments,andconsultation

withWindustryexpertswhohavealonghistory

ofdevelopingsimilarwindfarms.Thewind

facilitywillgenerateelectricityatanestimated

38%efficiencyrate.

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SmartTech

Thedevelopmentprocessisdividedintoseveral

phases.Thefirstphaseinvolveswindresource

profiling,ensuringinterconnectionfeasibility,

andlocalcommunityandgovernmentoutreach.

Thenextphaseincludeslandagreements,wind

assessments,environmentalconsiderations,

permitting,andeconomicmodeling. Afterwindresourcesaredeterminedvia

anemometerdata,theidealconfigurations

regardingthesize,typeandmanufacturersof

turbinesisdetermined. Thispilotprojectwill

serveasamodelforfurtherwinddevelopment

throughoutCentralAppalachia.

SmartGridTechnology

Asmartgrid,accordingtotheregionalenergy

provider,AmericanElectricalPower(AEP),

bettermanages

peak

demand,

reduces

transmissionloss,ensuresloweroperating

costs,andallowscustomerstobettercontrol

energyusageandcosts.Theproposed

distributedenergyfacilitieswillenablepower

companiestobecomemorereadilyequipped

forsmartgridtransitionandwidespread

renewableenergyinvestment.

UndertheirSmartGridDemonstration

ProjectAEPoutlineshowimplementationof

smartgridtechnologywillenablewidespread

integrationofdistributedenergygeneration.

Thisprojectintegratesmultipleresourcetypes

atbothsystemandcustomerlevels.At

customerleveldemandresponsewillbe

achievedviadynamicrates,thermostatcontrol,

PHEVcharging,remoteconnect/disconnectand

demandreductiondevices).Atsystemlevel,

bothMWscaleenergystorageandkWscale

storagewillbeincludedalongwithPV,wind,

distributedgenerationandVolt/Var

management(EPRI,2009).

DistributedGeneration

Conventionally,powerplantshavebeenlarge,

centralizedunits.Anewtrendisdeveloping

towarddistributedenergygeneration,which

meansthatenergyconversionunitsaresituated

closetoenergyconsumers,andseveralsmaller

onesareusedinplaceofonecentralizedunit.

Powerproducingfacilitieslocatedinclose

proximitytotheconsumerreducetheamount

of

energy

lost

in

transmitting

power.

The

promotionofdistributedenergygenerationis

scalableandenablespowercompaniestomore

efficientlymanagepeakpowerperiods. By

creatingmoredistributedenergyfacilities,

powercompanieswillbecomemorereadily

equippedforwidespreadrenewableenergy

investment(Farrell&Morris,2009;Alanne&

Saaari,2004).Bydefinition,distributed

generationfacilitiesaredispersed,providing

enoughelectricitytomeetthelocalenergy

demandwhilealsoproducingasurplusfor

regionsunable

to

produce

their

own

energy

needs.PleaserefertoappendixAfortypical

benefitsandcostsassociatedwithdistributed

generation(Rawson,2004).

smartgridcanbenefitcustomersinourstate

andthroughout

the

nation

with

improved

electricitydeliveryandcosteffective

managementofenergyusage.

GovernorJoeManchin

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SmartTech

Innovation

Ruralcommunitiesarechallengedbytheirlow

populationdensity,lessadvancedtechnology

activities,lowerinnovativecapacity,andlimited

activitybase. Theabilitytostimulate

innovationrequiresthattheruralinfrastructure

includesroads,waterways,powergrids,andorganizationalstructuresthataretiedtoa

centralnucleus,thusprovidinganincubatorfor

newideasthatdrawsoncollectiveresourcesto

adapttochange. Collaborationsbetween

formalorganizations(nonprofitorganizations,

REcompanies)andinformalgroups(energy

generationemployees,communitymembers)

willcombineknowledgetoguidedevelopment

intheREsector,promotingopennessand

diminishingthelimitationsofregionalisolation

(ARC,2006).

Withthismodel,theprimarydriverof

innovationisconnectingthelivedexperiences

ofemployeestotheR&DprocessesofRE

technologydevelopment:theemployees

firsthandknowledgeoftheREproduction

processes(e.g.,O&M)willprovidevaluable

insightforimprovingREtechnology(e.g.,R&D)

(LangloisandRobertson,1991).Inturn,this

networkstructurewillstimulatesolutionbased

thinkingbyconnectingtheexperiencesofthe

REemployees

with

the

manufacturers

of

RE

technologies.(Mayer,2003)Thisopenforumfor

workersandcommunitymembersprovides

additionalinfrastructuretoinformandpush

forwardthinkingwithineconomically

disadvantagedandmountainousregions. The

employeescanbecomeacentralparttothese

ruralclustersthroughoutthelifecycleofa

particularREproject.Thesesoftnetworksof

experiencedlaborerscaneffectivelystimulate

innovation,inturndrawingindustryintothe

CentralAppalachianregion(Rosenfeld,2001;

Shigeo,1989).

Communitieswhoactivelypromotetheruralareaasonerichinnatural,cultural,andhuman

assetsfosterincreasedinvestmentinthe

region. Thesesamestrategieswhichengage

familiesandREemployeesineconomic

developmenthelptoincrease

entrepreneurship,improveeducation,and

provideruralcommunitieswithauniquemeans

ofcapitalizingonadvancedREtechnologies,

betterenablingtheirabilitytotakepartin

Americasenergytransition.

AnemometerLoanProgram

DesignedtohelpCentralAppalachiansmake

informeddecisionsaboutthesitinganduseof

windturbines,ananemometerloanprogram

willprovidecommunitieswithlocalizedwind

resourcedata. Weareworkingwithseveral

universitiesandtechnicalcollegesinorderto

siteanddevelopananemometerloanprogram

modeledontheestablishedprogramatSt.

FrancisUniversityinOhio. Asanemometer

equipment

is

among

the

many

expenses

for

sitinganddevelopmentofwind,thisloan

programwillhelpexpandongoingwind

developmentandsustainableuseofrenewable

energytechnologywithintheentireregion.

Thefutureofcoalandindeedofourtotal

energypictureliesinchangeandinnovation.

Infact,thefutureofAmericanindustrial

powerandoureconomicabilitytocompete

globallydependsonourabilitytoadvance

energytechnology.

SenatorByrd

SmartTechDevelopmentProcess

LocalLLCswilldevelopastandardrequestfor

proposal(RFP)processinordertosecureanRE

developer.TheRFPistheprimarydocument

thatenablesanassociationtoeffectively

markettheirREresource.Itisthisdocument

thatgives

the

local

investor

amuch

greater

senseofcontrol.TheRFPforcesthedevelopers

tocompeteanditweedsouttheperceived

projectgrabberswhooftentieup

development.

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SmartTech

ThemainobjectivesoftheRFParetocreate

andpresenttodevelopersthefollowing:

AmarketingplanwithREdataandlocalincentivesforREdevelopment;

Businessplancomponentsexpectedforinvestors,includingsigningbonuses,land

leasefees,royaltypayments,construction

payment,etc.

EachLLCdistributesanRFPtovariousRE

developersandreceivesseveralcompleted

proposalsfromdevelopers.Theproposals

garneredthroughtheRFPestablishalocally

basedpaymentfortheLLCmembersandthe

certaintythateveryoneintheLLCwillreceivea

pieceof

the

pie

when

the

project

goes

forward.LLCsseektohaveeveryoneinvolved

benefiteconomically,negotiatinghigher

paymentsfortheirpredevelopmentworkand

revenuesharingpayments.Moreover,

associationscanbettercoordinateeffortsto

improvefacilitysitingregulationsandretain

greatercommunitysupportandinvolvement.

TheJOBSProjectforeseesitsroleasalocally

basedorganizationthatprovidesparticular

services

to

the

LLCs

in

order

to

provide

interesteddeveloperswiththenecessarydata

theyrequiretomoveforwardwithdevelopinga

locallyownedREproject. JOBSalsoaccounts

forthesweatequitythatisinherentinlocal

stakeholderparticipationindevelopingRE

projectsandutilizesthisequityasabargaining

toolformaintainingthelocallyownedmodelas

thebasicframeworkforsustainable

developmentintheCentralAppalachianregion.

SmartTechDirector

TheSmart

Tech

director

of

the

JOBS

Project,

EricMathis,willorganizeanddirecteach

renewableenergyprojectsimplementation.

Mr.MathiswillmonitortheprogressofRE

developmentandreporttothecommunity

duringscheduledmeetings. Hewillalso

composeacomprehensivereportanddetailed

strategyforREdeploymentinCentral

Appalachiabasedoncommunicationswiththe

entireprojectteamandrecommendationsfrom

theadvisoryboard.Additionally,hewill

collaborativelydeveloptheOperation&

Maintenance(O&M)databaseandthevirtual

clusteringmaps(seepage19onintegration).

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SmartSchools

TheSmartSchoolsprogramintegratesRE

technologyandsustainabilityintoeducation

andencouragesinvestmentinrenewable

energyinfrastructureinordertoincreasethe

valueofschoolbuildingsinruralcommunities.

TheSmartSchoolsprogramwillhelptoidentify

fundingstreamsforphotovoltaic,solarthermal,biofuels,andwindenergytodemonstratethat

theschoolisaninnovativelearningtoolfor

projectbasedlearning. Theincorporationof

energymanagementstrategiesintothe

curriculumwillallowstudentsandteachersto

takeanactiveroleinmakingschoolsmore

energyefficientandeconomicallysustainable.

Theprogramwilloffertrainingopportunitiesto

teachersthroughNationalEnergyEducation

Development(NEED)

workshops

including

The

ScienceofEnergyandEnergyManagement.The

trainingwillbeavailabletoteachersacrossage

levelsandwillprovidestandardbasedlessons

andmaterialstoprovidehandson,project

basedlearningtoteach21stcenturyskillsin

renewableenergyeducation.

SmartSchoolswillalsointroducetheconceptof

RenewableEnergyInitiatives(REI)to

universitiesandlocalcommunitycolleges.In

the

REI

model,

a

small

green

fee

is

drawn

fromcollegetuitioninordertocreateafunding

streamforinvestmentinrenewableenergy

infrastructureforthecampusandtointegrate

thenewtechnologiesintothecurriculum.

InstitutionsofhighereducationinCentral

Appalachiawillalsobeencouragedtopurchase

renewableenergycredits(REC)tosupportlocal

REdevelopmentandtoserveasexamplesfor

theregionbypartakinginsustainablebusiness

practices.

EnergyCurriculum

K12:TheNationalEnergyEducationDevelopment(NEED)curriculumcoincides

withstatestandardstoserveas

supplementalinstructionforexistingmath

andsciencecourses. Thematerialexplores

thescienceofenergy,sourcesofenergy,

electricitygenerationandtransmission,

transportation,andenergyefficiencyand

conservationthroughoutvaryingtypesof

communitystructures(e.g.,homes,schools,

businesses,etc.). Thefourlevelsprimary,

elementary,intermediate,andsecondary

areupdatedwithadditionstoenhancethe

curriculumeachyear.NEEDtrainingforteachersisofferedbyenergeticeducators

whoshowcaseeffectiveclassroompractices.

CareerandTechnicalEducation:TheSmartSchoolsprogramwillexaminetrendsin

renewableenergydevelopmentwithinthe

regiontoguideworkforcedevelopment

curriculumincareerandtechnicaleducation.

SmartSchoolswillassistwithcareer

placementpredictionsandmake

recommendationsregarding

renewable

energyinstallationsandcurriculumto

preparestudentsforcareersinthegrowing

renewableenergyindustry.

HighSchoolPilotproject

ThispilotprojectforrenewableenergyinWest

Virginiawilldemonstratemultipletechnologies

includingsolarthermalinstallationstoprovide

hotwaterforthebuilding,windanda

demonstrativePVinstallation. NEEDwill

providematerials

for

instruction

and

teacher

traininginordertointegrateREtechnology

withintheexistingcurriculum.Thenew

infrastructurewillstimulateinterestthroughout

thecommunityandserveasamodelforschools

insurroundingareas.

Universities

Asaworkingexample,MarshallUniversityis

leadingthewaywhenstudentspassedWest

Virginiasfirstgreenfee,whichwillgenerate

roughly$90,000peryearforimplementing

varioussustainability

initiatives

on

the

universityscampus.Oneofthefirstinitiatives

wastohireasustainabilitycoordinatorand

developasustainabilitydepartmentwhichwill

belocatedwithintheUniversitysphysical

plant.Agroupofstudents,facultyandstaff,

calledtheGreeningMarshallCommittee,will

makerecommendationsforcampus

11


13/32

SmartSchools

sustainabilityprojects.OurSmartSchools

programispresentlycollaboratingwiththe

GreeningCommitteetoaidtheuniversityin

meetingitsmissionofsustainabilityby

encouragingthepurchaseofRECsfromlocally

ownedREprojects.Arecentquotefrom

HuntingtonNewshighlightsMarshall'scommitmenttosustainability:

StudentEnergyEfficiencyServices

Inthiscommunitybasedinitiative,anextra

curricularprogramwillbedesignedtotrainhigh

schoolyouth

to

provide

energy

efficiency

servicesthroughoutcommunities. Studentswill

participateintrainingsessionstolearnabout

energyefficiencyandhowtoreduceenergyuse

athomeandatwork. Theywilllearnto

performsimpleandeasilyreplicatedservices

suchasreplacingincandescentlightbulbswith

compactfluorescentorLEDlights,installingsink

aeratorsandlowflowshowerheads,caulking

windows,addingjacketstowaterheaters,and

cleaningrefrigeratorcoils. Afterprovidingthe

home

and

building

retrofits,

students

will

teach

homeownershowtoassesstheeconomic

benefitsofenergyefficiency.

REResources,Training,andTechAssistance

TheGreenBusinessAccelerator,awebbased

toolcreatedbyCEO,willoffersystemsand

resourcestoenablepeopleinlowincome,rural

communitiestoparticipateinopportunitiesfor

localeconomicdevelopment.Designedfor

regionalandlocalentrepreneursinthesmart

economyofCentralAppalachia,theresource

willprovideindustryspecificandgeneral

businesstrainingandtechnicalassistance

includingwebinars,blogs,fieldoutreach,and

renewableenergyworkforcedevelopmentinformationfromwithintheregion.Userswill

alsobenefitfromaGoogleEarthREdirectory,

interactivemarketingassistance,andupdates

onresearchandpolicy. Theonlinenetworkwill

providerelevanttrainingandinformation,and

promotesharingofadviceandexperiencevia

networking.DesignedbyCEOforthisproject,

theAcceleratorwillofferthefollowing

specificallytoRE:

Thisgoalismorethanjustwhattypeof

lightbulbswepurchaseorthevolumeof

paperwerecycleIamcertainthatthe

economic,socialandenvironmentalbenefits

ofasustainableMarshallUniversitywill

reachfarbeyondthephysicalboundariesof

ourcampusesandintoourcommunities,

regionand,

ultimately,

our

state.

Iam

excitedtoseetheeffectthatthis

departmentofficewillhaveontheentire

MarshallUniversityCommunity.

StephenJ.Koop,MarshallUniversityPresident

Jobsinformationandresources RErelatedjobpostings,classifiedadsand

targetedjobplacementservices

Industryspecificandgeneralbusinesstrainingandtechnicalassistance(regional

seminars,webinars,blogs,fieldoutreach).

Renewableenergybusinessnetworkthatcanhelpachieveeconomiesofscaleor

agglomeration,providerelevanttraining

andinformation,andpromotesharingof

adviceandexperiencevianetworking

opportunities.

GISbasedBusinessDirectorytoconnectcustomers.

Services,linkages,andresourcesforcommunitypartners.

Researchandpolicy. Indepthmarketingassistance.SmartSchoolsDirector

TheJOBSProjectsSmartSchoolsDirector,

JennyHudson,willpromoteREbyfacilitating

programs

with

schools

and

career

training

centers.Shewillhelptoguideworkforce

developmentintheREsectorandpromote

cleanenergysolutionsthroughREtechnology,

energymanagement,andefficiency. Ms.

Hudsonwillactivelyrecruitstudents,educators,

andadministratorswhocanfurthercontribute

12


14/32

todevelopmenteffortsandcommunityRE

activity.

TheSmartGrowthcoordinatorwillhelpanalyze

social,economicandecologicalconsiderations

tomitigateundesirableimpactsinrelationtoall

developmentplans.Theprogramfocuseson

severalavenuesforensuringsustainablegrowth:distributedenergygeneration,

integratingsustainablecertificationsintolocal

developmentplans,creatingattractive

communities,sustainingfairandcost effective

developmentplans,mixedlanduse,andthe

preservationofopenspaces.Thepilot

renewableenergyprojectswillestablishabase

forsustainabledevelopmentthroughout

CentralAppalachia.

DownstreamStrategies,anenvironmental

consultingfirminWV,willcoordinateeffortstogoaboveandbeyondstandarddevelopment

proceduresbyintegratingsustainability

standardsandindexesintoallofourprojects.

Additionally,themarketingofcarbonoffsets

andREcreditswillrequireduediligencein

ensuringthatsustainablepracticesareinplace.

Thefollowingareafewexamplesof

sustainabilitystandardsandindexesof

particularinterest:

LeadershipinEnergyandEnvironmental

Design(LEED):ThisGreenBuildingRating

System,developedbytheU.S.GreenBuilding

Council(USGBC),providesasuiteofstandards

forenvironmentallysustainableconstruction.

TheSmartGrowthcoordinatorwillinvestigate

theapplicationofthisstandardtoallofour

constructionprojects.

SmartGrowth

We

must

acknowledge

that

the

main

ingredienttoasuccessfulenergyfutureis

sustainability.Weneedtokeeplearning

howtooptimizetheuseofourresources,

becomemoreenergyefficient,and

minimizewaste.

GovernorJoeManchin

HumanSustainabilityIndex(HSI):Thepurpose

oftheHSIwillbetomeasurethetruelevelof

developmentandsustainabilityforanygiven

area. Ashumanactivityhasthegreatestimpactonthenaturalenvironment,andashuman

healthisdirectlycorrelatedwithenvironmental

health,anymeasureofhumansustainability

mustcombinemeasuresofeachinorderto

trulyrepresenthowsustainableagivenarea

anditsactiveindustriesare.Energyproduction

isthesinglemostinfluentialimpactonhuman

sustainability,andWestVirginiaisoneofthe

mostintenselyimpactedareas.

TheHSI

design

is

based

on

an

intensive

review

ofthemethodologiesandindicatorsofseveral

sustainabilityindexeswhichincludetheHuman

DevelopmentalIndex(HDI),theEnvironmental

SustainabilityIndex(ESI),theHuman

AppropriationNetPrimaryProductivityIndex

(HANPP)andtheEnvironmentalPerformance

Index(EPI). Inordertocreateaneasily

manageablesystemforgeneratingand

operatingtheHSIinterface,wewillidentify

appropriatesetsofenvironmental,economic

and

social

indicators

that

will

be

used

to

determinetheHSIdesignandtocreate

regionallyspecificHSImaps. Regionallyspecific

HSImapswillbegeneratedusingrelevantdata

inputsfromavarietyoflocal,regionaland

nationalsourcestobeenteredintotheHSI

database. TheHSIdatabasewillthenproducea

regionallyspecificGoogleEarthHSImap(see

mockupsinappendixB)thatwillhavethe

capabilitytoincorporateseveralcreative

features,includingdynamicstatistics,

interrelatedchartsandgraphs,community

videosand

photos,

dynamic

dashboard

pop

ups,informativelayers,andasustainability

scorecardwhichratesindividualregions(e.g.,

state,county,industry,etc.)byplacingthemin

arankedformat. TheHSIprogramcreatedfor

WestVirginia,andtherelatedsustainability

report,willserveasamodelforotherstates,

provinces,cities,counties,countriesor

13


15/32

SmartGrowth

continentsthatseeanadvantageinbeingapart

ofthisgloballyavailablemeasureof

sustainability.

Smartwood:AprogramoftheRainforest

Alliance,itoffersadiversesetofcertification

andverificationservicestoensurethe

sustainabilityofourbiomassprojects.ThisprogramwillaidourSmartGrowthcoordinator

inidentifyingandaddressinggapsinour

feedstocksuppliersforestpracticesusinga

stepbystepapproachthatleadstoFSC

certification.

StandardPermitting

DownstreamStrategieswillalsooversee

standardizedpermittingprocesseswhichwill

includeassessmentofairemissions,erosion

andsedimentation

from

construction,

post

constructionrunoff,potentialdischargesto

streams,andpotentialimpacttowetlands

including:

Airemissionsconsiderationswithbiopower

Landresourceconsiderations SoilImpacts EcosystemsImpacts ForestHealth ForestHarvestingGuidelines LandArea WaterResourceChallengesSmartGrowthCoordinator

EvanHansen,presidentofDownstream

Strategies,willoverseeREdevelopmentefforts

andensurethattheprojectplanswillsustain

growthandwillhelptodevelopasustainable

certificationprocessforwinddevelopment. He

willalsoparticipateinformingastrategyforthe

CentralAppalachianregionspecifictolocally

owned

RE

as

well

as

all

environmental

studies.

Additionally,hewillcollaborativelydevelopthe

O&Mdatabaseandthevirtualclusteringmaps

(seepage19onintegration).

14


16/32

SmartMarkets

TheSmartMarketsprogramencourages

innovativemarketbasedapproachesto

sustainablegrowth.Thevalueofaprojectis

calculatedbasedonthesocialand

environmentalimpactsinadditiontothenet

profit.Developmentinwind,biopower,and

renewableenergyeducationwillexpandtheexistingenergyportfolioandincreasethe

marketabilityoftheregiontoattract

investmentinthecommunityREsectorof

CentralAppalachia.

CarbonOffsets

Futurewindandbiomassprojectswill

tentativelygeneraterevenuestreamsthrougha

partnershipwith

NativeEnergy

to

market

forwardstreamHelpBuildcarbonoffsets,

whichwillprovidethecapitaltoinvestin

furtherREandenergyefficiencydevelopment

inCentralAppalachia.Purchasersofoffsetswill

notonlyprovideupfrontfinancialsupportfor

communityownedREfacilities,butwillalsobe

abletofollowtheflowofthemoneythatis

investedduetoNativeEnergystransparent

modelformarketingcarbonoffsets.Specifically,

thestorybehindthecustomersinvestment

willshowcasetheJOBSProjectsinitiativeto

introduceRE

to

coal

dependent

economies

who

haveotherwisesufferedthebruntofAmericas

insatiableneedforcarbonbasedelectricity.

NativeEnergyhashelpedtodevelopover16

projectsthroughtheirforwardstream"Help

Build"offsetsprogram. Thispartnershipwill

serveasanawarenesscampaigntothebroader

spectrumofconsumersincarbonandREC

markets.Ultimately,thesaleofthe

environmentalattributesofREgenerationwill

connectthecarbonoffsetorRECconsumer

withthecommunityREstoryinruralCentral

Appalachia,enablingtheconsumertodirectly

participateindiversifyingtheeconomiesofthe

coalfieldregioninCentralAppalachia.

CommunityRevolvingLoans

Apercentageoftheprofitsfromthelocally

ownedREdevelopmentwillbeheldintrustbya

newlyformedcommunityfoundation/revolving

loanfundwithfundingdistributionoversight

fromalocalsteeringcommittee.The

foundationwillbemissiondriventoaccelerate

themarketadoptionofscalablecommunityRE

technologythroughreinvestmentintheprivate

sectorand

community

structures

that

promote

opennesstoinnovation(education,

entrepreneurialtraining,communitylivability

projects,etc).Thedevelopmentofthe

foundation/revolvingloanfundwillbe

facilitatedbyalocalnonprofitorganization

theCenterforEconomicOptionsandalocal

investmentbusinessNaturalCapital

InvestmentFundwhowillprovideconsulting

forthecommunityandalsoserveasthe

administratorandfiscalagent.

Weneedtoexaminehowtoharnessour

abundantnaturalresourcestoproduce

cleaner,cheaperenergy.Isupportthe

developmentofnewsourcesofenergy

wind,solar,hydro,ornuclearpower as

additionalwaystoboostourenergy

independence.

SenatorJayRockefelleronEnergyPolicy

SmartMarketCoordinators

TheCenterforEconomicOptions(CEO)will

procureREexpertisefromconsultantsat

WindustryandAppalachianInstitutefor

RenewableEnergy(AIRE).CEOwillfacilitatethe

creationoffinancialmodelsforcommunity

investmentinREtominimizerisksand

maximizebenefitsforinvestorsandwillserveas

theadministratorandfiscalagentforalocally

ownedRErevolvingloanfundandpossiblya

communityfoundation. Inaddition,CEOwill

developworking

relationships

with

law

firms

andaccountingfirmstogainexperiencewithRE

developmentproceduresincludingdue

diligence,riskmanagement,REagreements,

policyandincentivestructures,andfinancial

models.

15


17/32

SmartMarkets

NaturalCapitalInvestmentFund(NCIF)will

provideawiderangeoffinancialservicesto

businesseslocatedineconomicallydistressed

urbanandruralcommunitiesinourtarget

region.NCIFwillprovideflexiblefinancingand

investmentsandtargetedtechnicalassistance

forourcommunityREprojects.

16


18/32

SmartSolutions

TheSmartSolutionsprogramisthecommunity

developmentinitiativeofourprojectthat

facilitatesdirectcommunityparticipationin

eachsmartprogramoftheJOBSProject.This

programpromotesproactiveapproachesto

economicdevelopmentandengagescitizensto

makepolicyrecommendationsandfinancialinvestments,andtomakeuseofthelocalRE

networksinordertofosterfurther

developmentplansandeconomicrevitalization

forCentralAppalachia.

PolicyDevelopment

AspartoftheSmartSolutionsprogram,the

JOBSProject,inconsultationwithWindustry,

hasdevelopedasetofpolicyguidelinesinorder

tobetteradvocateforfederal,stateandlocal

advancementof

locally

owned

RE.

In

order

of

priority,thepolicyrecommendationsare:

institutingafeedintariff;improvingproduction

incentives(particularlyofthefederal

ProductionTaxCredit);institutingcleanenergy

funds;increasingnetmeteringcaps;refining

renewableenergystandards;andprovidingnew

governmentfinancingschemes. Notonlywill

theJOBSProjectadvocateforthesepoliciesasa

centralpartofitscoremissiontodiversify

CentralAppalachia'senergyeconomy,the

policy

guidelines

will

also

serve

to

engage

communitymembersinthelargerpoliticaland

policyprocess. Particularlyafterthefirst

projectsarebuiltandcanbeusedasrealworld

examples,advocatingforimprovedpolicieswill

becomeanevenmorecentralactivityofthe

JOBSProject.

CommunityEvents

Communityeducationaleventscreateaforum

foroutreachanddiscussion,resultingin

increasedparticipationinrenewableenergyand

energyefficiency

projects.

The

following

are

someexamples:

EnergyIndependenceDay:ThisisanannualeventtocelebrateAppalachiaslong

historyasanenergyprovideraswellas

addressingCentralAppalachiasfuture

participationinenergyproduction.Atthe

annualeventin2009,WindustryCEOLisa

Danielsledacommunitywindworkshopto

discussthekeyplayersinREpartnerships

andtheimportanceoflobbyingforstate

andfederalsupport.Highschooleducators

andadministratorsattendedworkshopsby

SunCatcherDesignGroupforpassivesolarandateachertrainingsessionregardingRE

andefficiencyinschools. Nearly200local

residentsattendedandtheeventis

expectedtogroweachyear.

RETours:TheseCentralAppalachiantoursshowcasepowerproductionfacilities

throughouttheregion.Inpartnershipwith

localnonprofitsandschools,theJOBS

Projecthoststhesesemiannualtripsfor

coalfield

residents.

In

the

spring

of

2009,

participantsvisitedtwoutilityscalewind

farms,MountaineerWindEnergyandMt.

Storm,andbroughthomestoriestofriends

andneighborstospreadthemessagethat

energyfromwindisviableintheregion.

CollaborationandCommunityPlanning

REstrategiesforlocalownershipwillmore

likelybereplicatedwherelocalstakeholders

contributetotheREdevelopmentandshare

informationthrough

adiverse

set

of

community

andinstitutionalnetworks.Astrategyfor

distributedenergygenerationthroughout

CentralAppalachiadependsuponlocallyowned

biopower&winddevelopment,smallscaleRE

installationsforpublicbuildingsandenergy

efficiency. Theseprojectscatertotheexisting

renewableresourcesintheregion,while

demonstratingrealworldmodelsofRE

implementationthatcanbereplicatedinother

communitiesthroughoutCentralAppalachia.

CentralAppalachian

Advisory

Board

TheadvisoryboardforcommunityRE

developmentinCentralAppalachiawillinform

thestrategyforfutureinvestmentthroughthe

evaluationof localefforts. Adiverseboard

withmembersfromregionaluniversities,

governmentagencies,nonprofitorganizations,

andindustryexpertswill(1)attendanannual

17


19/32

SmartSolutions

meetingforlocallybasedREstrategyinCentral

Appalachia;(2)maintainopencommunication

withlocalsteeringcommitteesthroughelected

representativeswhowillattendadvisoryboard

meetings;(3)reviewmonthlyupdatesfromthe

steeringcommitteeregardingdevelopment

progress;and (4)contributetoacomprehensivereportanddetailedstrategyfor

locallyownedREdeploymentthroughout

CentralAppalachia.

LocalRenewableEnergySteeringCommittees

Thelocalsteeringcommitteewillfocusonfour

developmenteffortsincludinglocallyowned

windandbiopoweraswellasREeducation,and

energyefficiencyservicesandactivitiesmay

includethefollowingvolunteertasks:(1)

provideoutreach

for

RE

educational

events;

(2)

produceupdatesregardingprogresstowardsRE

developmentgoals;(3)publicizesuccesses;(4)

makerecommendationsregardingpoliciesand

incentivestogovernmentofficials;(5)actively

developtheparticipatoryaspectsoftheHSI;

and(6)documenttheprocessofRE

development. TheMingoCountycommittee

wasformedfromanexistinggroupofcitizens

whohavebeeninvolvedwiththeJOBSProject

since2007.

Thesteeringcommitteewillcontinueto

developrelationshipswithlocal,state,and

federalleaders. InJune,2009,President

ObamasCouncilonEnvironmentalQuality

(CEQ)invitedTheJOBSProjecttobring

communityrepresentatives,localdevelopment

authorities,REexpertsanddevelopersfromthe

privatesectortothenationscapitalfora

discussionaboutREimplementationinthe

coalfieldcommunitiesofCentralAppalachia. In

collaborationwithregionalnonprofits,the

steeringcommittee

will

continue

to

engage

decisionmakersateachlevelregardingRE

developmentinruralcommunities.

LocalLimitedLiabilityCompanies

Fromthesteeringcommitteesmentioned

above,someparticipantswillcometogetherto

createlocalized LimitedLiabilityCompanies

(LLCs).TheseLLCsareaninnovativemodelin

CentralAppalachiathatwilleffectivelyand

efficientlybringruralcommunitiestogetherto

supporteachotherandadvanceRE

development.TheLLCsprovideanapproachfor

localinvestorstobecomeproactiveinthe

developmentprocessandcapitalizeontheirlocalresourcesthroughacollaborativeeffort.

Developersseedirectbenefitsfromthelarge

blocksofinvestorstheycanworkwithfor

selectingthebestRElocations,stronginvestors

andlocalcommunitysupport,anddevelopment

stepsalreadycompletedsuchasfeasibility

studiesandlocalREregulations.

ThecreationofaLLCbeginswithagroupof

localinvestorsincloseproximitytooneanother

whoshare

an

interest

in

identifying

the

institutionalrequirementsfordistributedscale

REdevelopment.Theserequirementscanbe

identifiedastheamountofinvestmentneeded

tocreatealocallyownedREprojectaswellas

thelegalstructuresofsuchentities(e.g.,rules,

bylaws,articlesofincorporation). Oncethese

boundariesareidentified,theinitialgroupof

localinvestorsreachesouttoallcommunity

membersintheimmediateareatofoster

greatercommunityinterest.Eventuallyablock

of

investment

capital

is

assembled

among

severallocalinvestors.Theseinterestedparties

willacttogethertoexploretheirRE

developmentpotentialandtomarkettheir

resourcetodistributedscaleREdevelopers.

SmartSolutionsCoordinators

CommunitydevelopersfromtheJOBSProject

andAmericorpsVISTAworkerswillfacilitateRE

discussionandactivitywithinlocal

communities.Hostingeventsandcreating

energyrelatedprogramswillincreasethe

capacityof

the

RE

partnership

and

pave

the

way

foreconomicrevitalizationintherural

communitiesofCentralAppalachia.

18


20/32

IntegrationofSmartJOBS

Thefollowingisanexampleofintegratingall

aspectsoftheSmartJOBSprogramintoa

workingmodel:SmartTech,SmartSchools,

SmartGrowth,SmartMarkets,andSmart

Solutions.Inthecaseofourproposedbiopower

projectwearedevelopinganemergentR&D

program,basedonclusteringeffects,whichwillstimulatetechnologicalinnovation,industry

growthinboththeproductionaswellasthe

manufacturingsectors,acceleratedacceptance

ofthedistributedenergyproductionmodel,

andmanyotheroutlierswhichcannotbe

accountedforatthistimeduetothepioneer

statusoftheJOBSProject.

Clusteringeffectsarebasedonpatternsof

humancommunicationandinteractionswith

technologiesthat

lead

to

widespread

acceptanceofnewtechnology.Thesepatterns

areusuallyseeninurbanareasandtheJOBS

modelintendstoadapttheseeffectstoarural

setting.

Apyrolysisbiopowerfacilitywillrequireboiler

technicians(boilermakers)tomaintainand

repairsteamandhotwaterboilersystems,

equipmentandassociatedcontrols.Those

interestedin

pursuing

this

specialized

trade

typicallyobtaincertificationfromtechnical

schools,tradeschoolsorcommunitycolleges.

SomeoptionsincludetheBoilerOperatoror

BoilerTechniciancertificate.Boilertechnician

programsoftencontainanapprenticeship

component.Thisapprenticeshipwilloccurat

thefacilitiestheJOBSProjectispresently

developingthroughoutthestatethroughour

SmartSchoolsprogram.Uponcompletionof

theboilertechniciancertificate,students

usuallyqualifytositforlicensureexaminations.

Wearepresentlydevelopingeducational

pathwaysfromthesepositionswhichstimulate

interestswithintheeverydayinteractionsoftheemployeeandtheirspecifiedtasksandlinking

theseinteractionswithhighlyspecialized

technologicalR&Dprocesses.Iftheemployee

becomesinterestedinexpandingher/his

developedskillsinR&D,she/hecanthenapply

foraspecializedfieldofstudyofher/hischoice

atWestVirginiaUniversity'sforestryprogram.

WestVirginiaUniversityoffersanAssociateof

AppliedScience(AAS)degreeinBoiler

Engineering,FeedstockmanagementorEnergy

Technology.

Wearepresentlyexploringthefeasibilityof

theseeducationalpathwaysbydevelopinga

specializedO&Mdatabaseforcapturingreal

worldinteractionsand/or"suggestedtweaks"

bytheemployeeswithinvariousbiomass

processes(i.e.,harvestingtoenergygeneration)

intoavirtualclusteringmap(KMLformatin

GoogleEarth)whichwillsimulateurban

economiesofagglomerationbyspatially

locating

the

information

captured

by

the

O&M

database(TantallandGilding,1999).Thiswill

allowustobridgethegapsbetweentheRE

employees,WestVirginiaUniversity'sIndustries

oftheFutureBiomassProgram,MATRIC,

projectmanagers,andtechnology

manufacturers.Bybridgingthesegapswecan

begintostimulatecollaborationwithone

commongoal,technologicalinnovation.In

effect,thesevirtualclusterswillhavethesame

effectthateconomiesofagglomerationhave

withintheurbansetting.Thisclusteringeffect

essentiallystimulates

growth

in

manufacturing

andR&Dforaparticularsector,inthiscase

biopower(Saxenian,1994;ARC,2006).

TheSmartTechandSmartGrowthcoordinators

willplayanessentialroleincreatingtheO&M

databaseandvirtualclusteringmaps.TheO&M

databasewillnotonlyplayanimportantrolein

19


21/32

IntegrationofSmartJOBS

stimulatinginnovationbutitwillalsoaidin

developingnewapproachestosustainabilityvia

HSI.Bycollaborativelycreatingthisdatabase,

innovationwillbeintimatelyintegratedintothe

technologiessurroundingenvironmentsby

accountingforhowspecificchangesin

technologywillaffecttheareasinwhichtheywillbeoperating.Thevirtualclusteringmaps

willplayanessentialroleinaccountingforhow

innovationisrelatedtoitssocial,economicand

ecologicalenvironmentsbyaccountingforthe

technologieslifecycle. Specifically,theselife

cyclescapturetheavailablefeedstocks,local

skillsets,transportationinfrastructure,etc.

TheSmartMarketcoordinatorswilldevelopthe

locallyownedmodelforthisfacilityaswellas

developingemployee

ownership

models

(e.g.,

stockshares,profitshares,boardparticipation

etc.)inordertomaintainahighlevelof

employeeretentionandcommunitysupportof

theseprojects. Inturn,alltheseinteractions

willinformtheSmartSolutionscoordinatorsin

theireffortstoinfluencepolicy,organize

communityevents,andfurtherdevelopthe

localsteeringcommitteesandadvisoryboard.

Social&VirtualInteractions:

communicativenetworkclusters

viaadvisoryboard,SmartJOBS

program,O&MdatabaseandHSI.

Networkclusters:socialandvirtual

networksthatexistswithinRE

community

KEY:

20


22/32

LongTermImpactsoftheJOBSProject

TheUSDOEEnergyEfficiencyandRenewable

EnergyRecoveryPlanstatesthatinvestmentin

renewableenergyinfrastructurewillaccelerate

therateatwhichcosteffectivecleanenergy

technologiesaredeployed,bringingthemtothe

marketmorequickly,andmakingcleanenergy

choicesreadilyavailabletothepublic(DOE,2009). Thisprojectwillpromotethe

accelerationofmarketadoptionofwind,

biopower,andsolartechnologies.

Foreachutilityscaledevelopmentproject,the

feasibilityandlongtermimpactwillbe

determinedthroughmarketprojectionsto

enhancetheoverallprobabilityofinvestment

andthroughvariousmethodsformeasuringour

progress.

JobGrowth

Thisisprofoundlyunpredictableanddependent

uponmanyfactors;however,wecanconclude

thatlocallyownedwindcontributesmoreto

thelocaleconomythanprivatelyownedwind

farmsbykeepinginvestmentdollarsand

revenuesinthelocalcommunity,andittends

togeneratemorejobsaswell.Thesamecanbe

saidwithanylocallyownedREproject.A2009

studycomparedtheaverageemployment

impacts

of

locally

owned

wind

projects

with

the

impactsfromthefirst1,000MWofcorporate

ownedwinddevelopedinColoradoandIowa,

andfoundthatconstructionperiodjobimpacts

areasmuchas3.1timeshigherforlocally

ownedwindthanforcorporatewind,and

operationsperiodjobimpactsareasmuchas

1.8timeshigher(Lantz&Tegan,2009).

TaxBase

REhasthepotentialtoprovidesignificant

economicbenefitsonboththestateandlocal

level.On

the

state

level

in

West

Virginia,

wind

farmsgenerateBusinessandOperationstaxes,

thatis,forevery100MWofwinddevelopment,

thestatereceivesnearly$275,000peryear,

whichcanthenbeputtowardseducation,

hospitals,andimprovementsforroads.The

statealsoreceivescorporateincomeand

personalincometaxes,andthemoreREthatis

developedandthemorejobsthatarecreated,

thegreaterthetaxbenefittothestatewillbe.

Onthelocallevel,windpowergenerates

significanttaxrevenuesintheformofproperty

taxes,landownerrevenuesintheformoflease

payments,andjobsintheconstruction,

operation,andmaintenanceofthewindfarm.

WorkforceDevelopment

Iamnotashamedofcoal.Ahugepartof

ourbudgetisfromcoalseverancetaxes.

ArtKirkendoll,LoganCountyCommissionPresident

Thedevelopmentofbiopowerandwindenergy

facilitieswillcreateemploymentopportunities

inREoccupationswhilealsoincreasingcapacity

andexpertiseintheenergyrelatedfields

includingconstruction,permitting,PPA

agreements,andenvironmentalassessment. In

additiontothedirectjobscreatedinthe

developmentphase,REinvestmentincoalfield

communitieswillservetoemployarangeof

skilledworkersinthelongtermincluding

mechanics,electricalworkers,andboiler

technicians. Theprojectalsoanticipatesthedevelopmentofanarrayofancillarysmall

businessesrelatedtothelargerfacilities. These

businesseswillprovideadditionalemployment

andpropelthedevelopmentofcommunity

wealththroughtheiroperationsand

participationinthelocaleconomy.

PromoteLocalOwnership

InvestmentinlocallyownedREdevelopment

servestodiversifytheeconomiesofrural

communitiesby

adding

to

the

tax

base

and

providingnewtypesofincome. Thespreadof

knowledgeregardingthelocalbenefitsof

communityownershipwillencourage

replicationofthemodelandacceleratethe

marketadoptionofscalableREtechnology.

21


23/32

LongTermImpactsoftheJOBSProject

ExpandPublicKnowledge

Formalandinformaleducationalopportunities

includingREcurricula,onlinetools,andenergy

efficiencyoutreachwillfacilitatewidespread

knowledgeofREtechnology. Increasingpublic

awarenessandparticipationcontributetoa

senseofconnectionbetweenruralcommunitiesinCentralAppalachiaandcommunities

worldwidewhoareparticipatinginRE

initiatives. Partnershipswithsecondary

institutions,careerandtechnicalcenters,

workforcedevelopmentagencies,colleges,and

universitieswillhelptodefinecareerpathways

intherenewableenergysector.

PoliciesandIncentives

Local,state,andfederalgovernmentscanhelp

tomaximize

the

benefits

of

locally

owned

RE

planningandtoincreasethewidespread

marketabilityofREnationallyandinCentral

Appalachia.Educationforthepublicregarding

policyandincentivestosupportREwillbe

objectivewithrecommendationsbasedonthe

comprehensivedevelopmentstrategy.The

effortwillnotonlyempowercitizenstolobby

foracleanenergyfuture,butwillalsoeducate

decisionmakersregardingthebenefitsof

locallyownedREdevelopmentinruralCentral

Appalachia.

Minimizeriskforinvestors.

WindustryandAIREwillassisttheCenterfor

EconomicOptionsinadvisingcommunity

investorsregardingdetailedanalysisoftaxand

financialstructures,andduediligenceto

independentlyverifylocalLLCrepresentations

andinformation.CEOwillfacilitatecommunity

investmentatthelocallevel.Theanalyseswill

verifyagoodfaithefforttominimizerisks

earlyinthedevelopmentoftheprojectwithina

reasonabletimeframe

and

in

consideration

of

budgetaryconstraints.

22


24/32

Recommendations

Werecommendstateandfederalpoliciesthat

createamarketforlocallyownedREexpansion

withinCentralAppalachia.Withoutthe

developmentofmarketstherewillbeno

opportunityforlocalLLCstocapturetheirRE

resourceforenergyandreturnsignificant

dollarstotheirlocaleconomies.

REMarketDevelopment

FeedinTariffisuniversallyregardedasthebest(andmostproveninEurope,whereit

iswidelyused)waytospurlocallyowned

REdevelopment.

Financialincentivessuchasproductiontaxcredits(PTC),investmenttaxcredits(ITC)

andcleanrenewableenergybonds(CREBs)

withpreferencegiventolocalizedRE

projects.

Cleanenergyfundsthatprovidedirectfinancialsupporttolaunchastate'sfirst

fewlocallyownedREprojects.

Increasednetmeteringcaps.Ex: NJhasraiseditslimitto2MW,whichallowsfor

moreutilityscaleREprojectstoaccessnet

meteringfunds.

FederalandStateRenewableEnergyStandards(RES)thatbenefitlocallyowned

RE.

Resourceselectionregulationsthatrequireutilitiestoevaluateprojectsusingmultiple

factorsincludingcarbonemissions,

geographicdiversitybenefits,wateruse,

andeconomicimpact.

Productionpayments(directcashpayments)basedontheamountofenergy

produced. Theseincreaseprofitabilityand

encourageproduction,thesameasthePTC,

butthesetargetthosewithlesstax

appetite.

Deregulation

in

order

to

absolve

any

and

all

barrierstolocallyownedRE.

Aftermarketpoliciesareinplacesixadditional

policyingredientsareneededforthesuccessof

localLLCsandasmoothtransitiontoacarbon

neutraleconomy:(1)REresourcemeasurement

tools;(2)outreachprogramsproviding

educationonthemarketdriversandthe

economicsofREdevelopment;(3)a

streamlinedprocessforconducting

environmentalimpactstudiesanddetermining

otherlocationfactors;(4)transmissionpolicies

toexpandlinestoremoteruralareas;(5)

standardizedutilitycontracts;(6)simplifiedstatesiting/zoningprocess(7)equitabletaxes.

Specificpoliciesandprogramstoconsiderin

thesesixareasatthefederalandstatelevel

includethefollowing:

SupportforREResourceAssessments:

WindAnemometerLoanPrograms Windmeasurementstudiesusingsatellite

dataandotherassessmenttools.

Biopowerfeasibilitystudiesthatarereadilyavailable

to

the

public

USDAValueAddedProducerGrantprogramthatprovidesfundsforlandownersto

conductREfeasibilitystudies.

USDARuralEnergyforAmericaProgram(Section9007)thatwillmakefeasibility

studieseligiblein2010forgrantfunds.

REEconomicandMarketDriverAwareness:

Ruraloutreachprogramsthatprovideinformation

on

the

criteria

or

drivers

for

commercialscaleREdevelopmentandthe

economicsbehindagoodREproject

SupportforConductingEnvironmentalImpacts

andOtherLocationFactors:

Stateandfederalproceduresforstreamliningenvironmentimpactstudies

andloweringcostsforlocalLLCs.

TransmissionPolicies:

Renewable

Energy

Zones.

Identification

of

renewableenergygenerationdevelopment

zoneswithinformationaboutdevelopment

potentialandconstraintsforeachzone.

RenewableEnergyTransmissionCorridors.Identificationofrenewableenergy

transmissioncorridorswithinformation

23


25/32

Recommendations

StateSiting/ZoningProcess:aboutcapacityrequirementandconstraint

foreachcorridor. Statescansimplifythelocalzoninginordertostreamlinedevelopment. RenewableEnergyTransmission

Authorities.Establishtransmission

developmentauthoritiestofinancelines

dedicatedforrenewableenergyprojects.

Includelandownerandcommunity

representationonauthorities.

EquitableTaxes:

Duringthetransitiontoacarbonneutral

economythereareseveralmeasuresthatcan

betakenwhichwillpotentiallymitigatethe

negativeimpactsupontheCentralAppalachian

region.

InvestmentTaxCreditforTransmission.Createfederalandstateinvestmenttax

creditforrenewableenergytransmission

lines.

UnitemineralandsurfacetaxessimilartoTennessee

Fairtaxlegislationwhichdoesnotdistinguishbetweenlargeabsentee

landownersandrealproperty

USDAsRuralUtilityService.ExpandUSDARuralUtilityServicesroletoinclude

financingrenewableenergytransmission.

ServiceBenefitCharges/CostRecovery.Provideutilitieswithabilitytofinanceand

buildtransmission

to

renewable

energy

zonesinadvanceofprojectdevelopment.

Enableutilitiestoplaceaservicebenefit

chargeontocustomerstomake

transmissionimprovementsforfuture

renewableenergydevelopment.

DistributionSystemStudies.Distributionlinesandsubstationstudiesconductedon

ruralelectricassociationandmunicipal

utilitysystems.

LandownerTransmissionLineTaxCredit.Provide

annual

federal

or

state

tax

credit

forlandownerswithrenewableenergy

transmissionlines.

LandownerRoyaltyCompensationforTransmissionLines.Enableandcreate

modelsfortransmissiondevelopmentthat

compensatelandownersonannualbases

throughroyaltiesratherthanonetime

payments.

StandardizeUtilityContracts:

These

make

it

easier

for

community

wind

projectstogetinthedoorwithlarge

utilitiesandreducetransactioncosts

otherwiseassociatedwithreinventingthe

wheel. BothstateANDfederalgovernment

canrequirestandardizationand

simplificationofthisprocess.

24


26/32

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AppalachianRegionCommission.2006.SourcesofregionalGrowthinNonMetroAppalachia.Website:http://rtsinc.org/publications/pdf/appalachia.pdf

Boal,William.1995.TestingforEmployerMonopsonyinTurnoftheCenturyCoalMining.RandJournalofEconomics,Vol.26,No.3.

Bolinger,Mark.2001.CommunityWindPowerOwnershipSchemesinEuropeandtheirRelevancetotheUnitedStates.Website:http://eetd.lbl.gov/ea/EMP/reports/48357.pdf

Cowart,Richard,2001.EfficiencyReliability:TheCriticalRoleofDemandSideResourcesinPowerSystemsandMarkets.PreparedfortheNationalAssociationofRegulatoryUtilityCommissioners.

Demirbas,Ayhan.2002.AnOverviewofBiomassPyrolysis.EnergySources,24:474482. E.LantzandS.Tegen(2009).EconomicDevelopmentImpactsofCommunityWindProjects.April.

http://www.nrel.gov/docs/fy09osti/45555.pdf

ElectricPowerResearchInstitute,2009.AEPSmartGridDemonstrationProject:VirtualPowerPlantSimulators(VPPS).Website:

http://www.smartgrid.epri.com/pdfs/1020226AEPSmartGridProjectOverview.pdf

Farrell,JohnandDavidMorris.2009.EnergySelfReliantStates.NewRulesProject.Website:http://www.newrules.org/sites/newrules.org/files/ESRS.pdf

Ioannides,YannisandChristopherPissarides.1985.MonopsonyandtheLifetimeRelationbetweenWagesandProductivity.JournalofLaborEconomics,Vol.3,No.1.

KildegaardandMyersKuykindall,2006.CommunityVs.CorporateWind:DoesitMatterWhoDevelopstheWindinBigStoneCounty,MN?. UniversityofMinnesota. Website:

http://cda.morris.umn.edu/~kildegac/CV/Papers/IREE.pdf

Langlois,RichardandPaulRobertson.1991.NetworksandInnovationinaModularSystem:LessonsfromtheMicrocomputerandStereoComponentIndustries.ElsevierSciencePublishers.

Mayer,Heike.2003.CorporateRestructuringandTheCreationoftheInnovationMilieu:TheCaseofaSecondTierHighTechnologyRegion.PresentedataConferenceonClusters,IndustrialDistricts

andFirmstheChallengeofGlobalization.

Milbrandt,A.2005.AGeographicPerspectiveontheCurrentBiomassResourceAvailabilityintheUnitedStates.NationalRenewableEnergyLaboratory(NREL).TechnicalReportNREL/TP56039181.

Dec.

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NationalAcademyofSciences,NationalResearchCouncil.2007.Coal:ResearchandDevelopmenttoSupportNationalEnergyPolicy.Website: http://www.nap.edu/catalog.php?record_id=11977#toc

Rosenfeld,StuartA.2001.NetworksandClusters:TheYinandYangofRuralDevelopment.AreporttotheFederalReserveBankofKansasCity.(accessedApril3,2005).Website:

http://www.rtsinc.org/publications.html

Rawson,Mark.2004.DistributedGenerationCostsandBenefitsIssuePaper,PublicInterestsEnergyResearchCaliforniaEnergyCommission.

Saxenian,Annalee.1994.LessonsfromSiliconValley.TechnologyReview97.5. Shingo,Shigeo,1989. AStudyoftheToyotaProductionSystemfromanIndustrialEngineering

Viewpoint(ProduceWhatIsNeeded,WhenIt'sNeeded).ProductivityPress.

Tatnall,ArthurandAnthonyGilding.1999.ActorNetworkTheoryandInformationSystemsResearch.AustralasianConferenceonInformationSystems.

ThePewCharitableTrusts,2009http://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/Fact

Sheets/Clean_Economy_Factsheet_WestVirginia.pdf

UnitedStatesGovernmentAccountabilityOffice.2004.WindPowersContributiontoElectricPowerGenerationandImpactonFarmsandRuralCommunities.Website:

http://www.gao.gov/new.items/d04756.pdf

UnitedStatesDepartmentofAgriculture.2006.RuralDevelopmentStrategies:CommunityDevelopment.

Economic

Research

Service

Website:

http://www.ers.usda.gov/Briefing/RuralDevelopment/CommunityDevelopment.htm

UnitedStatesDepartmentofAgriculture.2008.RuralEconomicAreaPartnershipZones.RuralDevelopmentUSDA.Website: http://www.rurdev.usda.gov/rbs/ezec/Communit/reap.html

UnitedStatesDepartmentofEnergy.2009.EnergyEfficiencyandRenewableEnergyRecoveryPlan.Recovery.govWebsite:

http://www.recovery.gov/?q=content/programplan&program_id=7813#review

Wang,Jingxin,2006.BiomassResources,Uses,andOpportunitiesinWestVirginia.PreparedfortheWestVirginiaDevelopmentOffice.

WorkforceWestVirginia,anAgencyoftheDepartmentofCommerce.2009.StateUnemploymentRateat8.6PercentinJuly.Website: http://www.workforcewv.org/LMI/datarel/DRNEWS.pdf

27
http://www.nap.edu/catalog.php?record_id=11977%23tochttp://www.nap.edu/catalog.php?record_id=11977%23tochttp://www.rtsinc.org/publications.htmlhttp://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/FactSheets/Clean_Economy_Factsheet_WestVirginia.pdfhttp://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/FactSheets/Clean_Economy_Factsheet_WestVirginia.pdfhttp://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/FactSheets/Clean_Economy_Factsheet_WestVirginia.pdfhttp://www.gao.gov/new.items/d04756.pdfhttp://www.gao.gov/new.items/d04756.pdfhttp://www.ers.usda.gov/Briefing/RuralDevelopment/CommunityDevelopment.htmhttp://www.ers.usda.gov/Briefing/RuralDevelopment/CommunityDevelopment.htmhttp://www.rurdev.usda.gov/rbs/ezec/Communit/reap.htmlhttp://www.recovery.gov/?q=content/programplan&program_id=7813%23reviewhttp://www.recovery.gov/?q=content/programplan&program_id=7813%23reviewhttp://www.workforcewv.org/LMI/datarel/DRNEWS.pdfhttp://www.workforcewv.org/LMI/datarel/DRNEWS.pdfhttp://www.workforcewv.org/LMI/datarel/DRNEWS.pdfhttp://www.recovery.gov/?q=content/programplan&program_id=7813%23reviewhttp://www.rurdev.usda.gov/rbs/ezec/Communit/reap.htmlhttp://www.ers.usda.gov/Briefing/RuralDevelopment/CommunityDevelopment.htmhttp://www.gao.gov/new.items/d04756.pdfhttp://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/FactSheets/Clean_Economy_Factsheet_WestVirginia.pdfhttp://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/FactSheets/Clean_Economy_Factsheet_WestVirginia.pdfhttp://www.rtsinc.org/publications.htmlhttp://www.nap.edu/catalog.php?record_id=11977%23toc


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WhataretheBenefits?1 MitigationofMarket

Power Thevaluetothesystemfromreducingoutputfromhighmarginalproductioncostplants,mitigatingcapacityshortagesandcounteringthesellersmarketpower

2 AirborneorOutdoorEmissions TheeconomicincentivestoownersofcleanDGtechnologiesandthereducedhealthriskstosociety.Thepatternofemissionsfromoutdoororairborne

pollutantssuchasNOx,SO2,andothersfromcleanDGunitsthatareless

hazardousthanemissionsoftheconventionalplantsthatDGreplaces.

3 ReducedSecurityRisktoGrid

Thevalueofreducingtherelianceonthecentralgrid,makingthegridaless

appealingterroristtargetandreducingtheimpactofothergriddisruptions

4 ReliabilityandPowerQuality(Distribution

System)

Thevaluetotheutilityofavoidingoutagecostsandimprovingthequalityofthe

poweratornearcustomersites

5

Voltage

Support

to

ElectricGrid The

value

to

the

utility

of

providing

voltage/VAR

control.

Small

scale

generation

inthedistributionsystemcansupportvoltagebyinjectingreactivepowerthereby

improvingpowerqualityandloweringlosses.

6 EnhancedElectricityPriceElasticity

Thevalueofincreasingtheelasticityofelectricdemand,whichwilltendtolower

pricestothebenefitofallconsumers.

7 NIMBYOppositiontoCentralPowerPlants

andTransmissionLines

ThevalueofreducingtheNotinmybackyardsentimenttowardsthesitingof

newpowerplants.Oppositiontosmallscaleonsitefacilitiesislikelytobelessof

animpedimenttodevelopmentofDGthanofcentralstations.

8 LandUseEffects Thevalueofreducingfootprintorspaceneededbygeneration,transmissionanddistributioninfrastructure

9 AvoidedT&DCapacity Thefinancialvalueofavoiding ordeferringacapitalinvestmentintransmissionanddistributionsystemcapacity

10 SystemLosses Thevalueoftheenergysavedthroughreducedresistivesystemlosses.Energyislostwhenitistransmittedthroughwires.Thelargerthedistance,themorethe

lossesare.Sitingsmallscalegenerationclosetoloadlowerslosses

11 CombinedHeatandPower/Efficiency

Improvement

ThemonetarysavingsfromutilizingwasteheatfromtheDGincustomer

applicationstomeetheatingorcoolingneeds,increasingoverallefficiencyof

energyuse

12 ConsumerControl Thevalueofallowingcustomerstocontroltheirenergysourceandavoiddependenceonalargecentrallycontrolledsystem

13 LowerCostofElectricity

Thedifferenceforacustomerbetweenthecost ofpurchasingelectricityandthe

costofgeneratingelectricityonsite

14 ConsumerElectricityPriceProtection

Thevalueforcustomerofhavingtheabilitytolockinpricesfortheirenergy

requirementsforthelongterm

15 ReliabilityandPowerQuality(DGOwner)

Thevaluetothecustomerswithsensitiveloadsofavoidingoutagesand

improvingthequalityoftheirpower

16 AncillaryServices Thevalueofprovidingspinningreserve,regulation,orotherancillaryservices

AppendixA


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WhataretheCosts?1 UtilityRevenue

Reduction

Thereducedrevenuesthatautilitywillreceivefromacustomerthatisself

generatingelectricity

2 StandbyCharges Thechargesaselfgeneratingconsumerwillpaytheutilityfortherighttomaintain

agrid

interconnection

3 IncentivesforCleanTechnologies

Thecosttoratepayersandsocietyofgovernmentincentivestopromotetheuse

ofclean(e.g.,lowpollutantemissions)energygenerationtechnologies

4 NoiseDisturbance ThecosttopeopleofhavinganoisyDGunitcloseby5 IndoorEmissions ThehealthriskscausedtopeoplefromindooremissionsofDGunits

6 MaintainSystemReliabilityandControl

DistributedResources

Thesystem

cost

of

maintaining

grid

reliability

while

allowing

asignificant

(up

to

20%)penetrationofinterconnectedDGunits

7 EmissionsOffsets EnvironmentalpermittingfeespaidbytheownerofanoncleanDGunit8 AirborneorOutdoor

Emissions

Thecosttosocietyofhavingincreasedhealthrisks.Thepatternofemissions

fromoutdoororairbornepollutantssuchasNOx,SO2,andothersfromnonclean

DGunitsthataremorehazardousthanemissionsoftheconventionalplantsthat

DGreplaces

9 DERFuelDeliveryChallenges

ThenumberoftypicalDERunitsthatmightsubstituteforoneconventional

centralpower

plant

would

be

large.

Hence,

fuel

delivery

systems

must

be

extendedtobringfueltotheDERunitandthiswillcostratepayers

10 Equipment Thecostofalltheequipmentneededtogenerateonsite(e.g.,fuelcells,microturbines,ICengines,inverters,communicationsandcontrols,switchgear)

11 Interconnection(systemstudiesand

upgrades)

Thecosttostudytheinterconnectionfeasibilityaswellasthecostofupgrading

thedistributionsystemtoallowfortheinterconnection

12 Fuel Thecosts(fuel,delivery,storage)associatedwithfuelingtheonsitegenerator

13 Maintenance ThefixedandnonfuelvariablecoststooperateandmaintaintheDGsystem14 Insurance ThepremiumspaidtoinsureDGsystems,aswellastheincreasesinother

insurancepremiumsresultingfromrunninganonsitegenerationsystem

AppendixA


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AppendixB


31/32

AppendixB


32/32

AppendixB

TheHSIdesign,asitappliestoWestVirginia,

willsupplythemeansbywhichwespread

awarenessabouttheoverallimpactsofmono

industrialdependency,thusprovidingabasis

forarguingforatransitiontosustainable

economiesandrenewableenergyproduction.

ThedatafortheHSIwillbecollectedby

professionalfieldstaff,epidemiologists,and

analystsfromDownstreamStrategies(DS),

MarshallUniversitysCenterforBusinessand

EconomicResearch(CBER),WestVirginia

University,theWestVirginiaRuralHealth

ResearchCenter,REemployees,andlocalRE

developersandowners. Thedatawillthenbe

enteredintotheHSIdatabase,andwillbe

representedasenvironmental,economic,and

socialindicatorsofsustainability. Information

fromthe

data

clusters

will

be

available

through

theHSIformatanddisplayedwithintheGoogle

EarthmapwegenerateforWestVirginia.

WithintheHSIlayer,eachWestVirginiacounty

sublayerwillincludeadynamicdashboardpop

upandwillberepresentedbyacorresponding

GoogleEarthplacemarker.Thisdashboardwill

includedynamicHSIgraphsandchartsthat

allowforeasyreadabilityofcomplicateddata.

The"dynamicdashboard"interactswiththe

users

point

of

inquiry

and

changes

the

correspondinggraphsandchartsaccordingly

(see:Mockupsequences).Byembeddingthe

dashboardwithinGoogleEarth,userswillbe

abletovisuallycontextualizethedataasit

appliestotheGoogleEarthsatelliteimagesfor

WestVirginia.

TheHSIscorecardwillbepresentedonagraded

polygonscalewherebyuserswillbeabletogeo

spatiallycomparesustainabilityscoresbasedon

thevaryingheightsandcolorsofthecounty

shapedpolygons

as

viewed

in

aGoogle

Earth

flyover. TheopensourcefeatureoftheHSIwill

beaninteractiveelementembeddedinthe

dashboardpopupwhichlinksuserstorelevant

picturesandvideosuploadedbycommunity

memberswhohavebeendirectlyimpactedby

thecoalindustry.Theinterfacewillalsoallow

userstogeneratetheirownlocal,countylevel,

orregionallyspecificdescriptivesustainability

scorecardreportsofhowproposedorpotential

energyoreconomicdevelopmentinitiativeswill

impacttheirrespectivelevelofhuman

sustainability.

Additionaluses

of

the

geo

spatial

components

oftheGoogleEarthHSIapplicationwillafford

theuservisualcontextviaavarietyofmap

overlays,includinglayersrepresenting

informationfromtheWestVirginiaDepartment

ofEnvironmentalProtection(DEP)Surface

MiningandMountaintopRemovalPermits,the

EnvironmentalProtectionAgency(EPA)Toxic

ReleaseInventory(TRI),coalslurryinjection

sites,coalslurryimpoundments,HDIscoresby

country,andcomparativeanimatedscenarios

thatreveal

what

human

sustainability

levels

in

WestVirginiawilllooklikeifthecoalindustry

continuestogrow,orviceversa,ifthereisa

shifttorenewableandsustainableeconomies.

FurtherapplicationsoftheHSIprogramwill

includecrossindustrialanalysescomparingthe

impactsoftheRenewableEnergyIndustryand

theCoalIndustryinordertoshowthe

advantagesanddisadvantagesofboth

industries.TheonlineHSIGuidewillprovidea

usersmanualoftheHSIdatabase,thesocial,

economic,andenvironmentalcomponents,and

willalsoincludesampleHSIapplicationsand

basicuserskills,andwillbeavailableto

individuals,businesses,schools,local

organizations,andorganizationsworldwidevia

webbasedoutreach. Thedistributionofthe

HSIGuideisintendedtostimulateandmeasure

HSIusageandexpansion.

the jobs project 2010 strategy report - final

Documents