Policy Drivers For Renewable Energy Development (00287740)
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Transcript of Policy Drivers For Renewable Energy Development (00287740)
Policy Drivers For Renewable Energy Development
Dustin T. TillMarten Lawwww.martenlaw.com503.243.2200
The Future of Oregon’s Water Supply & Management Portland, Oregon – March 17, 2011
Revenue Streams for Small Hydro Projects
• Electricity – PURPAo Requires utilities to purchase power if the
cost is less than the utilities avoided cost of generation or acquisition
• Renewable Energy Credits (RECs) Commodity of Renewable Portfolio Standards
(RPSs) / Clean Energy Standards (CESs)
Discussion Points
Federal Climate Change Policy
Regional Cap-and-Trade Programs
Renewable Portfolio Standards / Clean Energy Standards
Treatment of Hydro Under West Coast RPSs
Federal Climate Policy – Cap and Trade is Dead
American Clean Energy & Security Act
• Narrowly Passed House in June 2009
• Large Industrial Sources – 25,000 MtCO2e
• 17% Reduction in GHG Emissions by 2020
• Majority of Allowances Distributed for Free
• 15% RES
Companion Bills in Senate
• Kerry - Lieberman
What Cap and Trade Looks LikeCourtesy of U.S. Chamber of Commerce
Federal Direct Regulation of GHGs
EPA’s Clean Air Act Regulations• Massachusetts v. EPA, 127 S. Ct. 1438 (2007) • Endangerment Finding• Mobile Source Emission Standards• Clean Air Act Tailoring Rule
Legal Challenges Congressional Challenges
Regional Climate Policy –Long Live Cap and Trade
• 23 states and four Canadian providences are participating in some capacity in the three regional GHG trading programs
• Account for over half of the United States’ GDP and over 37 percent of the United States’ GHG
• Regional Greenhouse Gas Initiative
Only operative cap-and-trade program in U.S.
Applies to electric utilities
2009-2014 – stabilize emissions
2014-2018 – reduce emissions by 2.5% per year
Allowances trading at $1.89
Western Climate Initiative
7 States and 4 Provinces 15% below 2005 by 2020 All economic sectors 25,000 MtCO2 Threshold
WCI – California and New Mexico
Only 2 states ready to implement WCI in 2012 California
• AB-32• CARB Rules• 25,000 MtCO2e threshold
New Mexico• Participation Contingent on California
Renewable Portfolio Standards
Principal driver of renewable energy development
30 states binding RPS requirements
7 States with RPS “goals” Market-based compliance RECs and TRECs
Renewable Portfolio Standards- Federal
Currently, No Federal RPS
President Obama’s CES
• 80% by 2035
• Would include traditional renewable resources, and “clean” energy resources like clean coal, nuclear, and natural gas
• Consumer Price Protections & Regional Equity
Prior Legislative Proposals
• ACES
• ACELA
• PECPA
Renewable Portfolio Standards-States
30 States with Mandatory RPS / 7 with RPS “Goals”
Oregon
• PGE, PacifiCorp, & EWEB
5% 2011; 15% by 2015; 20% by 2020; 25% by 2025
• Other Utilities – 5% or 10% in 2020 (depending on size)
• Goal – 8% of RPS Compliance from Small-Scale Projects (<20 MW) by 2025
Oregon RPS (con’t)
What Resources Qualify as “Renewable”?
• Wind, Solar, Tidal / Ocean, Geothermal, Some Biomass, Some Hydro
Compliance
• 20% through TRECs (50% for large COUs through 2020)
California RPS
Primary Driver of Western Renewable Energy Markets
2 RPS Standards
Legislative – 20% by 2010 (IOUs Only)
Regulatory – 33% by 2020 (IOUs and COUs)
Treatment of TRECS
CPUC Lifted Moratorium on Use of TRECs In January 2011
25% of Compliance Obligation
Legislative Proposals
Expand RPS to 33% and Incorporate COUs (Senate Bill 2X)
Treatment of Hydro
Oregon
• Pre-1995 Facilities
Efficiency upgrades made after Jan. 1, 1995
Certified Low-Impact Hydro (50 aMW per year)
• Post-1995 Facilities
Located outside of certain state, federal, or NW Power & Conservation Council protected areas
Treatment of Hydro, con’t
California• Small Hydro
Pre-2006: <30 MW, located in-state or satisfies out-of-state RPS standards
Post-2006: <30 MW, cannot “cause an adverse impact on instream beneficial uses or a change in the volume or timing of streamflow.”
• Separate standards for conduit and efficiency upgrades
• Proposal – run-of-river hydro projects in B.C.
Treatment of Hydro, con’t
Washington• Limited to efficiency upgrades without increased diversions
and impoundments• New hydro facilities are not currently included in the
Washington RPS
Questions?
Thank you for attending.For additional information on today’s topic, please contact:
Dustin T. Till503.241.2641