Reid hopes to pick up Republican votes for a pared-down energy bill

U.S. Senate Majority leader Harry Reid reviews his notes as he waits for Britain’s Prime Minister David Cameron to arrive for a meeting on Capitol Hill in Washington July 20, 2010. Reuters

WASHINGTON, August 31 (Reuters) – Senate Majority Leader Harry Reid said he hoped to pick up Republican votes for a pared-down energy bill after the midterm congressional elections.

"Maybe after the elections we can get some more Republicans to help us on these issues," Mr. Reid, a Democrat, told reporters in a teleconference on Tuesday.

But passing any major legislation this year will be an uphill struggle. With Republicans eyeing gains in the November 2 elections, Democrats may face fierce campaign opposition on all major initiatives.

The modest energy bill that Mr. Reid introduced in late July sought to reform oil drilling after the massive BP P.L.C. crude oil leak in the Gulf of Mexico. It also included incentives for energy efficiency in homes and alternative vehicles fueled by natural gas and electricity.

Mr. Reid said at the time that there were no Republican votes for climate measures such as a cap-and-trade market on greenhouse gases or a renewable electricity standard, which would require utilities to generate minimum levels of power from sources such as wind turbines and solar cells. The bill would require 60 votes to pass.

Still, Mr. Reid was hopeful some Republican senators may have more freedom to vote for the bill after the elections in which they may regain control.

"We are bound to come back on a lame duck and we are going to continue working on it," he said about the bill. "We will see if we can come up with something before the end of the year."

After the Senate returns from recess on September 13, it will have four weeks before breaking again for the elections. During that time energy will vie with other big-ticket items such as military funding and tax policy.

Adding a Renewable Energy Standard back to the bill could help bring some Republicans to support the bill.

Mr. Reid said he had two Republican senators who would be willing to consider voting for a bill that had a RES in it.

Within the next week he will set a time to speak to those senators, Mr. Reid said. He did not say how many Republican or Democratic senators could be lost by adding an R.E.S. to the legislation.

There was little chance cap-and-trade would make it back into the bill, however. "It doesn’t appear so at this stage," Mr. Reid said.

Renewable Energy Mandates

Laws strengthen homeowners’ solar installation rights and direct utilities to meet existing solar purchasing deadlines

A million Recovery Act grant was recently rewarded to Illinois to fund the first phase of the 62-megawatt Rockford solar project.

Illinois’s solar power scene is headed for brighter times after Governor Pat Quinn passed two laws on Tuesday that strengthen homeowners’ solar installation rights and direct utilities to meet existing solar purchasing deadlines.

House Bill 6202 amends rules established under the Illinois Power Agency Act and the Public Utilities Act that obliged the power industry to begin acquiring solar energy as part of their renewable energy portfolio in 2015.

The bill authored by Representative William Burns of Chicago and Oak Park Senator Don Harmon pulled the date ahead to 2012.

The new law further requires the power industry to purchase at least 0.5 percent of its total power production from solar by June of that year, 1.5 percent by 2013, 3 percent by 2014 and 6 percent by 2015.

On the residential front, the Homeowner’s Solar Energy Act assures the right of individual homeowners to install solar energy panels on their homes as long as they follow specific guidelines.

Previously, homeowners’ associations could prevent their members from mounting solar panels in their property. The bill was sponsored by Representative Sara Feigenholtz of Chicago and Senator Michael Noland of Elgin.

“Solar energy is the wave of the future, and it is important that our public utilities and homeowners are able to more easily increase their use of solar energy,” said Mr. Quinn, who signed the bills into law during a ceremony held at the University of Illinois.

A million Recovery Act grant was recently rewarded to Illinois to fund the first phase of the 62-megawatt Rockford solar project.

The solar power plant will initially produce 28 megawatts of electricity upon completion and offset an average of 10,000 tons of carbon dioxide emissions annually.

Renewable Energy Mandates

Laws strengthen homeowners’ solar installation rights and direct utilities to meet existing solar purchasing deadlines

A million Recovery Act grant was recently rewarded to Illinois to fund the first phase of the 62-megawatt Rockford solar project.

Illinois’s solar power scene is headed for brighter times after Governor Pat Quinn passed two laws on Tuesday that strengthen homeowners’ solar installation rights and direct utilities to meet existing solar purchasing deadlines.

House Bill 6202 amends rules established under the Illinois Power Agency Act and the Public Utilities Act that obliged the power industry to begin acquiring solar energy as part of their renewable energy portfolio in 2015.

The bill authored by Representative William Burns of Chicago and Oak Park Senator Don Harmon pulled the date ahead to 2012.

The new law further requires the power industry to purchase at least 0.5 percent of its total power production from solar by June of that year, 1.5 percent by 2013, 3 percent by 2014 and 6 percent by 2015.

On the residential front, the Homeowner’s Solar Energy Act assures the right of individual homeowners to install solar energy panels on their homes as long as they follow specific guidelines.

Previously, homeowners’ associations could prevent their members from mounting solar panels in their property. The bill was sponsored by Representative Sara Feigenholtz of Chicago and Senator Michael Noland of Elgin.

“Solar energy is the wave of the future, and it is important that our public utilities and homeowners are able to more easily increase their use of solar energy,” said Mr. Quinn, who signed the bills into law during a ceremony held at the University of Illinois.

A million Recovery Act grant was recently rewarded to Illinois to fund the first phase of the 62-megawatt Rockford solar project.

The solar power plant will initially produce 28 megawatts of electricity upon completion and offset an average of 10,000 tons of carbon dioxide emissions annually.

Renewable Energy Mandates

Governor Rell vetoes legislation aiming to bolster use of renewable energy in the state

Connecticut has one of the highest electricity rates in the continental United States.

Connecticut Governor Mary Jodi Rell has vetoed a clean energy legislation that aimed to bolster the use of renewable energy in the state, saying that she doubted it could cut one of the highest electricity rates in the continental United States.

Senate Bill 493 sought to reduce average electricity costs by 15 percent and promote renewable energy through a number of ways. For instance, it proposed to give incentives to people who deploy solar photovoltaic systems in their homes.

It will also mandate electric companies to enter into long-term agreements with large-scale photovoltaic developers and pay for the solar energy produced by the systems.

In line with this, the state’s Department of Public Utility Control will be required to evaluate the feasibility of installing PV systems on state facilities. A new division under the department would also be created to be in charge of procurement, conservation, renewable energy and research.

The bill also seeks to implement a program for energy conservation, as well as load management projects for energy consumers in municipalities targeted for economic revival.

The proposed law also wants to lay down energy efficiency standards for consumer electronics such as compact audio players, televisions, DVD players and DVD recorders.

However, Ms. Rell, a Republican, said that the proposed energy reforms could replicate considerable mistakes stemming from the passage of the deregulation law in 1998 that did not ease rising energy prices.

“The legislation, as well-intentioned as it is, would likely result in higher utility bills for consumers and, at time when taxpayers simply cannot afford bigger government, creates another state bureaucracy,” she reasoned.

“In the midst of both this great recession and our well-known state budget challenges I cannot ask our already overburdened and overtaxed residents and businesses to bear the additional burden of costs associated with this bill.”

Ms. Rell also expressed her concern over the lack of transparency and critical public input leading up to the passage of the bill by the state’s General Assembly at the end of the legislative session. She pointed out the absence of a public hearing that would have allowed the public and industry representatives to testify on the bill.

Meanwhile, supporters of the energy bill voiced disappointment over Ms. Rell’s decision, saying that the state’s consumers would now have to wait longer to be free of some of the United States’ highest power rates.

“Connecticut has the highest electric rates in the lower 48 states, and thanks to this veto, ratepayers will now have to wait even longer for relief,” said Senator John Fonfara, co-chair of the General Assembly’s Energy and Technology Committee.

Mr. Fonfara defended the legislative process that led to the passage of the bill, stressing that it incorporated input from various experts and selected ideas from previous energy legislation.

“Connecticut still has a great need for energy reform. The effort to lower electric rates, promote renewable energy, and grow green jobs and businesses will not stop with today’s veto,” he said.

Attorney General Richard Blumenthal likewise blasted the governor’s action. “Businesses and consumers demanded action. The governor delivered inaction, killing crucial legislation while providing no plan or proposal,” he said.

Renewable Energy Mandates

Germany can source 20 percent of energy from renewables by 2020 instead of 18 percent

Germany already surpassed the renewable energy target of 12 percent even before the 2010 deadline.

Germany could raise the stakes even higher by sourcing 20 percent of its gross energy consumption from renewable energy sources by 2020 instead of the targeted 18 percent, according to an action plan presented by the Federal Ministry of Environment.

The action plan further outlines that, by the next decade, renewable energy will account for 15.5 percent of the energy used in the heat and cooling sector; 38.6 percent in electricity; and 13.2 percent in transportation.

However, the expansion figures and the overall 19.6 percent mark are only estimates and do not constitute new targets of the federal government. Aside from the legally binding 18 percent target, Germany also mandates that renewable energy must account for 30 percent in electricity use and 14 percent in the heat sector by 2020.

Still, the country is on the right path toward achieving its renewable energy target, as it currently sources 10 percent of its gross energy consumption from renewables. Renewable energies also accounted for 16.1 percent of its electricity consumption as of 2009.

According to a report by the Federal Statistical Office, entitled the 2010 Indicator Report on the German Sustainability Strategy, Germany already surpassed the renewable energy target of 12 percent even before the 2010 deadline.

The country was also able to attain a 22.4 percent reduction in its greenhouse gas emissions in 2008, exceeding its national target of a 21 percent reduction by 2010 based on 1990 levels.

“The continuously increasing share of renewable energies in energy consumption shows that renewable energy sources are a driving force here. The more renewable energy we use, the larger the decrease in gases which are harmful to the climate,” said Norbert Röttgen, environment minister.

While Germany intends to decouple energy consumption from economic growth, these efforts were not enough to decrease the use of resources needed to reach the target of doubling productivity between 1994 and 2020. On the contrary, productivity increased by only 39.6 percent as of 2008.

The report also advises to improve usage of limited land resource, although the country reduced its land consumption from 120 hectares per day between 1993 and 1996 to 104 hectares in 2008. But this still falls short from the strategy’s target to achieve daily land consumption of 30 hectares by 2020.

“The road to the renewables era is ambitious and technically demanding. We need a significant increase in energy efficiency if we are to reach our goals,” Mr. Röttgen said.

He added that Germany must expand its electricity grid and storage capacities to prepare for the anticipated boom in the offshore wind energy industry and the growing electricity trade.

The country’s national renewable energy action plan is part of the reporting obligations set by the European Union’s renewable energy directive.

Renewable Energy Mandates

Democrats narrowly push through election-year response to BP’s massive oil spill in Gulf of Mexico

Drill ships and response vessels work in the Gulf of Mexico off the Louisiana coast line while attempting to drill relief wells at the Deepwater Horizon Oil Spill wellhead. Reuters

WASHINGTON, July 30 (Reuters) – The House of Representatives approved on Friday the toughest reforms ever to offshore energy drilling practices, as Democrats narrowly pushed through an election-year response to BP’s massive oil spill in the Gulf of Mexico.

Passing the bill as the House leaves for its six-week recess gives lawmakers the opportunity to return home boasting they reined in Big Oil and held BP responsible for the worst offshore oil disaster in United States history.

The vote was 209-193 on the bill supported by President Barack Obama.

But first, Gulf Coast Democrats won an amendment ending the federal moratorium on deepwater drilling for oil companies that met new safety requirements.

The Obama administration’s moratorium would end in November. By the time the full Congress completes action on this offshore drilling bill – and it is uncertain that it will – it could be November or later.

A similar offshore drilling bill is pending in the Senate, without the House’s new provision to end the drilling moratorium. But it was unlikely that measure would pass before that chamber begins its summer recess on August 6.

House Republicans warned the bill would slash United States oil and gas production in the Gulf of Mexico, a major supplier of domestic energy, and cut high-paying drilling jobs.

"The Obama moratorium on deepwater drilling has already costs thousands of jobs and this bill will eliminate even more American energy jobs, making it harder and more expensive to produce both energy on and offshore," said Republican Representative Pete Sessions.

"It will drive American companies out of the Gulf," said Republican Representative Kevin Brady. "This is a choice between American energy workers and foreign oil."

Democrats said the bill would make offshore drilling safer for workers, while also protecting the environment and Gulf Coast business from future oil spills like the one caused by BP that damaged wetlands and hurt the region’s fishing and tourism industries.

"This legislation is about safety, about establishing new safety standards, safety for the workers on the rigs," said House Speaker Nancy Pelosi.

"If you want to apologize for Big Oil, go right ahead, but the American people are not on your side on this one," Democratic Representative Jim McGovern told his Republican colleagues during a long day of debate.

Before passing the bill, the House also approved an amendment to help smaller oil companies compete for Gulf of Mexico drilling projects under the proposed reforms. The amendment would let them pool their resources in demonstrating they have the financial resources to deal with potential oil spills.

The House vote on the bill was close, as several Democrats representing districts with strong oil industry interests joined Republicans in opposition.

Representative Gene Green, from the oil industry-dominated city of Houston, was one of those Democrats. "There are a lot of things in there that have nothing to do with safety of offshore drilling operations,” he told reporters.

A sticking point in the Senate is opposition from Republicans and some moderate Democrats to removing all liability limits oil companies would face for economic damages stemming from the BP disaster and any future spills.

Current law requires companies to only cover up to million for damages to local economies. The BP spill could end up costing billions of dollars in lost tourism, fishing and other Gulf Coast revenues.

BP has said it would pay for all costs related to the spill, but many lawmakers worry that the company could put victims through years of litigation.

The Senate energy bill has an added component: new incentives to encourage more natural gas-powered trucks and electric vehicles to clean up the environment. It also provides billion to help improve home energy efficiency.

But Senate Democrats abandoned attempts to attach climate change provisions that would have set mandatory limits on some companies’ carbon dioxide emissions.

Senate leaders plan to hold a test vote next Wednesday to gauge support for the bill, according to a Democratic aide. But Republicans, and possibly some moderate Democrats, might block a full debate, forcing senators to take it up in September.

The House also approved a separate bill on Friday to give whistle-blower protection to workers who report violations in offshore drilling rules.

Renewable Energy Mandates

European Commission lays down schemes for sustainable biofuels to help E.U. reach renewable energy target

Biofuels made from raw materials of tropical forests, recently deforested areas, drained peatlands and wetlands will be banned.

The European Commission has laid down certification schemes for sustainable biofuels that will help the European Union reach its 20 percent renewable energy target.

According to the commission, the framework for the certificates will be applicable to both local and imported biofuels. The certificates will help implement the bloc’s requirements for biofuels, and is expected to curb substantial carbon emissions as part of its 2009 renewable energy directive.

Each member state needs to achieve individual national targets for the overall share of renewable energy, as well as a 10 percent target share of renewable energy in the transport sector.

"In the years to come, biofuels are the main alternative to petrol and diesel used in transport, which produces more than 20 [percent] of the greenhouse gas emissions in the European Union. We have to ensure that the biofuels used are also sustainable,” said Günther Oettinger, the commissioner responsible for energy.

The framework wants to ensure that only the sustainable biofuels are used across the 27-nation bloc. Independent auditors will be tasked to check the entire production chain – from the farmer and the mill to the trader and fuel supplier – to ensure reliability and protect against fraud.

Biofuels made from raw materials of tropical forests, recently deforested areas, drained peatlands and wetlands will be banned. The scheme explicitly rules out the conversion of a forest to a palm oil plantation in its sustainability requirements.

Lastly, the scheme will only promote biofuels with high greenhouse gas savings of 35 percent compared with petrol and diesel. This threshold will climb to 50 percent in 2017 and 60 percent in 2018.

“Our certification scheme is the most stringent in the world and will make sure that our biofuels meet the highest environmental standards. It will have positive effects also on other regions as it covers imported biofuels,” Mr. Oettinger said.

While filling stations are not required to mark the end product with a label, they can do so for promotional purposes.

The commission said that the most important biofuels today are bioethanol made from sugar and cereal crops and biodiesel from vegetable oils. The share of biofuels from the overall transport fuel consumption went up from 0.5 percent in 2003 to 3.4 percent in 2008.

Renewable Energy Mandates

Puerto Rico enacts laws to fuel the development of its renewable energy sources

The United States Department of Energy reveals that Puerto Rico is endowed by class 3 winds capable of supporting utility-scale generation.

Puerto Rico on Wednesday enacted two laws to fuel the development of its renewable energy sources.

Governor Luis Fortuño signed the Act for a Public Policy for Energy Diversification through Sustainable and Alternative Renewable Energy which establishes a renewable portfolio standard for all energy providers in its territory.

Mr. Fortuño also signed the Green Energy Incentives Act to offer short, medium and long-term economic incentives for renewable energy projects.

The energy diversification act requires energy suppliers to make renewable energy account for 15 percent of their energy mix by 2020, leading to 20 percent by 2028.

Power suppliers can use renewable energy certificates each representing 1 megawatt-hour of electricity to help them comply with requirements.

Certificates can be bought, sold, traded and transferred through the North American Renewable Registry.

Jose Ramon Perez-Riera, Puerto Rico’s secretary for economic development and commerce, said certificates have helped incentivize the cost-effective establishment of renewable energy facilities in other places.

Mr. Perez-Riera will sit on a renewable energy commission that the energy act creates to oversee compliance of power providers to the new standards.

The enacted incentives will be supported by a Green Energy Fund which unifies Puerto Rico’s existing renewable energy incentives into a single funding mechanism.

It will provide million for renewable energy facilities in 2011 and 0 million over the next 10 years.

The Energy Affairs Administration will offer cash rebates of up to 60 percent for individuals and 50 percent for companies who establish renewable energy projects not exceeding 1 MW in capacity.

The funding will be sustained by existing vehicle taxes and fines collected by the renewable energy commission from power providers that fail to comply with the energy diversification act.

Puerto Rico has added 75 MW of wind energy to its domestic portfolio with the Pattern Santa Isabel Wind Project. The United States Department of Energy reveals that Puerto Rico is endowed by class 3 winds capable of supporting utility-scale generation.

Puerto Rico’s Department of Economic Development and Commerce said petroleum currently represents 69 percent of the United States territory’s local energy mix. Natural gas comprises 16 percent, coal 15 percent and renewables only 1 percent.

"Renewable energy policies and sound economic incentives are key to attract players of all sizes that can contribute to the creation of a renewable energy industry in Puerto Rico, jumpstart competition and be an active part of the solution,” said Mr. Perez-Riera.

Renewable Energy Mandates

Maryland governor signs into law two clean energy bills that promote green jobs and sustainability

Both bills are critical components to Governor Martin O’Malley’s 2010 energy agenda, which aims to increase renewable energy production and tax credits for the state’s residents.

Maryland Governor Martin O’Malley has signed into law two more clean energy bills included in a series of five that seek to promote green jobs and sustainability in the state.

House Bill 464 and Senate Bill 277 will be enforced as the Maryland Clean Energy Incentive Act of 2010 while a renewable energy portfolio standard for solar energy will also take effect.

Mr. O’Malley said both laws are critical components to his 2010 energy agenda, which aims to increase renewable energy production and tax credits for the state’s residents.

“Energy touches every aspect of our lives from the cost of heating our homes to sustaining our resources for future generations,” he said.

“Each element of our energy agenda is structured to provide resources and incentives for our families and workforce, create jobs and fuel innovation as we continue to strive for a Maryland that is truly [smart, green and growing],” he continued

Mr. O’ Malley also signed into law last week the motor vehicle excise tax and high occupancy vehicle lanes bills that promote the use of electric vehicles by offering incentives to consumers to switch to green transportation.

The Clean Energy Incentive Act extends a clean energy tax credit to offset the state income tax for electricity produced by qualified clean energy facilities from certified energy sources until December 31, 2015.

The tax credit is based on the amount of kilowatt-hours generated by a qualified renewable energy system. The credit grants .85 per kWh of clean energy and .50 for each kWh of electricity produced from cofiring a clean energy source with coal. In addition, the bill makes the tax credit refundable.

Meanwhile, the renewable energy portfolio standard aims to accelerate solar development in Maryland by increasing the percentage requirements for solar energy from 2011 to 2016. The new mandate calls for 5 percent of the state’s energy mix to be sourced from renewable sources, with at least 0.05 percent from solar energy, in 2011.

The percentage will increase annually until 2016, when the state’s renewable energy requirement would reach 12.7 percent, with 0.5 percent coming from solar.

Some experts see the new standard as a reason for utilities to increase their solar capacities than what was previously required.

Furthermore, the legislation also raises the penalty for utilities that fail to meet renewable requirements. A shortfall in solar requirements would warrant a penalty of .40 for each kWh in 2011 and 2012 – a .05 increase from the previous rate of .35. The penalty from 2013 to 2016 also increased to .35 cents from the previous rate of .25.

Renewable Energy Mandates

Oklahoma places itself among states that have legislated clean energy mandates

The new law requires state power producers to derive 15 percent of their energy from renewable energy sources by 2015.

Oklahoma finally placed itself among states that have legislated clean energy mandates after Governor Brad Henry signed House Bill 3028 into law.

H.B. 3028, or the Oklahoma Energy Security Act, was introduced by House Speaker Chris Benge to drive the state to develop renewable energy, especially wind, solar and geothermal power.

The bill recently passed the state’s House unscathed with an overwhelmingly favorable 91-2 vote.

The new law requires state power producers to derive 15 percent of their energy from renewable energy sources by 2015. The bill also features a provision which allows electricity generators to make use of energy efficiency measures to meet the 2015 objective.

“This legislation advances our nation’s energy security, improves the environment and enhances Oklahoma’s economic development potential,” said Mr. Henry.

The law aims to strengthen the state’s electric grid capability to allow transmission of wind power from wind farms across the state. The state legislature will partner with the Oklahoma Corporation Commission, which manages public utilities, and the North American grid reliability organization Southwest Power Pool to develop a blueprint for transmission grid improvement in the state.

“Without adequate transmission capacity, Oklahoma may miss an opportunity to provide clean energy for the region,” said Bobby Wegener, the state’s energy secretary.

“A more robust transmission system will increase reliability for all customers and allow clean Oklahoma power generation to serve the electricity needs of Oklahomans and others throughout the country,” he added.

In addition, the new legislation aims to maximize the development of the local natural gas industry by establishing a natural gas energy standard.

The law establishes a goal of constructing one fuelling station of compressed natural gas for every 100-mile stretch along the interstate highway system by 2015 and for every 50-mile stretch by 2025.

The governor said that the standard will position natural gas as the preferred fuel for electricity generation in the state. He added that the law will position the state as a potential area for investment by important players in the alternative energy industry.

“With the passage of this legislation, alternative energy manufacturing companies will take a closer look at locating in Oklahoma,” Mr. Henry said.

Oklahoma now joins 35 other states which currently implement their own forms of statewide renewable energy standards.

Renewable Energy Mandates