Arizona Lege Tries to Scuttle Solar; Colorado Works to Support It

Fast on the heals of the Arizona legislature’s attempt to pull support from in-state solar power generation, Colorado’s legislature passed a bill yesterday to boost dramatically the amount of electricity produced by renewable sources in their state.

The Arizona bill would have ended a state program requiring utilities to generate 15% of electrical power from renewable sources (such as solar and wind) by the year 2025. (The program is called the Renewable Energy Standard, or RES.) The bill was withdrawn, at least temporarily, following an outcry by the public, businesses and even the state’s largest utility.

Colorado Sees Daylight

Meanwhile, back at the Colorado legislature, House Bill 10-1001 was winding its way through committee hearings. On Monday, both houses of the Colorado legislature had passed the bill creating a RES of 30% of electrical power by 2020. (Or, twice as much renewable power as Arizona, five years sooner.)

In the highly competitive field of green jobs and technology, last month Arizona clearly fumbled the ball. The real damage is becoming apparent this month, as Colorado recovered the fumble and now heads down the field.

DOE Loans for Clean (maybe), Renewable (or not) Energy

From the Department of Energy, some good news and some bad news for renewable energy advocates.

First, the good news: The DOE released a list today of the dozen projects currently participating in the Department’s energy loan programs. The loans and guarantees total more $19 billion and will “create or save” 50,000 jobs, according to DOE figures. So, what could be bad about that? Nothing, unless you look carefully at the details. (Not that the DOE is trying to mislead anyone — it’s a matter of definitions.)

The Devil is in the Definitions

The Arizona state legislature recently tried to pass a bill that would have defined nuclear power as a “renewable” source of energy, despite federal regulations to the contrary. (I’ve written about the details elsewhere.) No such purposeful dis-information is contained in the information coming from Secretary of Energy Steven Chu’s office. It’s just that Chu, like his boss, defines “clean energy” very narrowly — referring only to sources that emit little or no-CO2.

Shippingport Atomic Power Station

This definition excludes the 2,200 tons of radioactive waste produced annually by the nation’s 104 nuclear power plants. A half century after the first commercial nuclear power plant went on-line (the Shippingport Atomic Power Station in Pennsylvania), there is still no long-term solution for what to do with this dangerous waste.

Still, even the enthusiastically pro-nuclear Secretary of Energy doesn’t claim nuclear is “renewable” since it runs on a fuel supply (uranium) that has to be mined and is finite.

Of the dozen loan recipients, nine are clearly renewable. One (Ford) is a combo — the loan goes “to transform factories…to produce more fuel efficient models,” according to the DOE (pdf file). The increased efficiency comes from a variety of changes, including adding electric vehicles (which can be “renewable” depending on the energy source) and design changes that allow more complete energy capture from combustion — which is a good thing, but doesn’t make it “renewable.”

In addition to the two nuclear power plants (operated by Southern Nuclear), one other project is clearly not renewable — or clean: the construction of a plant in Louisiana to produce activated carbon), used to remove mercury emissions from coal-fired power plants. Reducing mercury pollution is clearly a good thing. The coal industry also needs this technology because new, lower mercury emission standards are going into effect. But, is a project “clean” if it allows coal-fired power plants to continue emitting CO2? The DOE’s definition of “clean energy” is not just narrowly defined, it’s also a moving target.

Follow the Money

The DOE’s $19 billion dollar energy pie can be sliced in different ways. Here’s what that pie looks like based on the opening sentence of the DOE press release on the dozen projects: “The U.S. Department of Energy’s Loan Guarantee Program paves the way for federal support of clean energy projects…”

Chart 1 shows all monies as “Clean Energy” because it assumes DOE’s definition.

CHART 1

Chart 2 divides the DOE money based on renewable vs. non-renewable energy project.

CHART 2

[Note: As of Sunday (March 7), the DOE was unable to say how the $5.9 billion loan to Ford was divided between renewable and non-renewable projects. For that reason, Ford is not included in Chart 2.]

Substituting “renewable” for the ambiguous term “clean” gives a much different picture. Loan guarantees for renewable projects account for just over a third of DOE dollars. It’s instructive to look at a similar chart, with one difference — illustrating how funding for renewable energy stacks up against funding for nuclear power in this DOE program.

Chart 3 divides the DOE money based on renewable vs. nuclear power projects.

CHART 3

The non-renewable portfolio is almost entirely devoted to building twin nuclear power plants in Georgia, operated by Southern Nuclear. Removing the single other project in this category (the facility to produce activated carbon in Louisiana) has no effect on the whole number percentages of the renewable and non-renewable categories in Chart 2.

The point of this exercise is to underscore the importance of precision in discussing energy policy issues. In this debate, the words “clean” and “renewable” are often applied to the word “energy” as if they were synonymous. They aren’t.

Whether or not nuclear power should play a major role in our energy future is an enormously important question — but it’s not addressed here. In the DOE’s loan guarantee program, one form of energy is dominant: nuclear power.

Advocates of nuclear power will be happy with this arrangement. Renewable energy supporters, not so much.


Announced Projects in the DOE’s Loan Programs

  1. Solyndra, Inc. was awarded a $535 million loan guarantee (pdf) to manufacture innovative cylindrical solar photovoltaic panels that provide clean, renewable energy.

    Solyndra solar panel tubes


  2. Nordic Windpower USA has been offered a conditional commitment for $16 million (pdf) to support the expansion of its assembly plant in Pocatello, Idaho to produce its one megawatt wind turbine.

  3. Beacon Power, an energy storage company, has been offered a conditional commitment of $43 million (pdf) to support the construction of its 20 megawatt flywheel energy storage plant in Stephentown, New York that will help ensure the reliable delivery of renewable energy to the electricity grid.

  4. Red River Environmental Products has been offered a conditional commitment for $245 million (pdf) to build an activated carbon (AC) manufacturing facility near Coushatta, Red River Parish, Louisiana.

  5. Vogtle Electric Generating Plant (operated by Southern Nuclear) has been offered conditional commitments for a total of $8.33 billion in loan guarantees (pdf) for the construction and operation of two new nuclear reactors at the Alvin W. Vogtle Electric Generating Plant in Burke, Georgia.

    Vogtle Nuclear Power Plant


  6. BrightSource Energy, Inc. has been offered conditional commitments for more than $1.37 billion in loan guarantees (pdf) under the American Recovery and Reinvestment Act to support the construction and start-up of three utility-scale concentrated solar power plants.

  7. First Wind - Kahuku Wind Power has received a conditional commitment for $117 million to install twelve 2.5 MW wind turbine generators along with a battery energy storage system for electricity load stability.

    Wind turbines


  8. Sage Electrochromics has received a conditional commitment for $72 million to support the financing of the construction and operation of a 250,000 square foot, high volume manufacturing facility to produce SageGlass®, an energy-saving switchable window technology for commercial and residential use.

  9. Ford Motor Company has closed on a $5.9 billion loan (pdf) to transform factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce more fuel efficient models.

  10. Nissan has closed on a $1.4 billion loan (pdf) to produce electric cars and battery packs at its manufacturing complex in Smyrna, Tennessee. The loan will aid in the construction of a new battery plant and modifications to the existing assembly facility.

    Nissan Leaf, EV


  11. Tesla Motors has been offered a $465 million loan (pdf) to finance a manufacturing facility for the Tesla Model S sedan and to support a facility to manufacture battery packs and electric drive trains.

  12. Fisker Automotive has been offered a $528.7 million conditional loan (pdf) for the development of two lines of plug-in hybrids that will save hundreds of millions of gallons of gasoline and offset millions of tons of greenhouse gas emissions by 2016.

[Source: DOE press release via email, 5 March 2010]


Arizona’s Great Power Play: Plan B

Just When You Thought it Was Safe to Catch a Few Solar Rays

Needs Some Work

As I wrote here recently, the hasty demise of anti-solar House Bill 2701 raised more questions than it answered. One of those questions is: Why did Arizona’s Speaker of the House, Representative Kirk Adams (R), say that HB2060 was evidence that he and his colleagues support solar power and are “send[ing] a clear message to global industries: we want you in Arizona.”

Speaker of the House Kirk Adams

Speaker of the House Rep. Kirk Adams (R)

The bill he cited is about land conservation and state parks. It says nothing about renewable energy.

Speaker Adams didn’t return a call, but I reached a House Republican spokesperson and asked him for an explanation.

The bill, he said, may not mention renewable energy, but it shows support for parks and the environment. I pointed out that in his statement, Adams specifically said that HB2060 provides incentives for renewable energy. After a pause, the aide said he’d look into it.

Adams Takes a Mulligan: HB2676

Apparently, he did. Representative Adams’ Web-based press release has been updated. It still has Thursday’s date at the top, but the example of support for renewable power has been changed. The “solar friendly” bill is now listed as HB2676.

On his second try, Adams’ has grabbed what appears to be a plausible brass ring: HB2676. It’s titled: Energy Park Authority.

That sounds solar friendly — or at least supportive of renewables.

On the other hand, the Bush Administration’s “Healthy Forests Act” was a Luntzian device which would have been more properly titled “Leave No Tree Behind.” A measure of strict scrutiny is in order.

The official bill summary reads:

HB 2676 creates the Energy Park Authority (Authority), which administers monies primarily received from a new property class designation for electric generation facilities, in order to facilitate new transmission and renewable or noncarbon based generation facilities.

The bill has two items to please supporters of renewable energy. Under definitions, an Energy Park is defined as:

At least two renewable or noncarbon-based generation facilities and the associated transmission lines interconnected together that are codeveloped for the purposes of receiving incentives…

So far, so good.

Those familiar with the inside workings of the Arizona Corporation Commission — the single most powerful governmental ally of solar and renewable energy in Arizona — tell The Phoenix Sun that the worst part of HB2701 was the legislature’s attempt to destroy ACC’s independence — to take for itself, the commission’s ability to set energy standards and regulations.

No one who knows anything about Arizona politics would claim that if it had been up to the legislature, the state would have adopted a renewable energy standard of 15% by the year 2025.

Clear as Mud

HB2676 seeks to allay the fears of ACC supporters. It includes a clear statement on turf:

Nothing in this chapter diminishes the authority or jurisdiction of the Arizona Corporation Commission as provided by Article XV, Constitution of Arizona.

End of power grab?

Not so, says Sandy Bahr.

While [the bill] says there is no conflict with the powers of the Arizona Corporation Commission, it most certainly seems there is. The people who crafted it either have no idea how the current system works or are deliberately trying to create a big mess or both.

Sandy Bahr, Sierra Club

Bahr is the director of the Sierra Club’s Grand Canyon Chapter. She’s either an excellent advocate for the environment or a gadfly slowing down and sometimes stopping the important working of the Arizona legislature — depending on your outlook, ideology and, of course, who signs your paycheck.

Asked to explain her remarks, Bahr points out that the proposed Energy Park Authority would be responsible for power station siting decisions — a job now reserved for the ACC. It’s like proposing a new lawrequiring a panel of pet store owners to set air pollution standards — and inserting a section stating that nothing in the new law diminishes the authority of the Arizona Department of Environmental Quality.

Stalling in the Court

HB2676 would create a constitutional crisis that could take a year or two to be resolved. And during that period the ACC’s hands would be tied. Which is why Bahr thinks it’s possible that the “solar friendly” bill might be designed to create maximum chaos and choke the life out of the state’s solar industry.

Bahr also points to the makeup of the board of directors for the new Energy Park Authority, which would include a senator, a house member, someone from a regulated utility, an expert in transmission planning and a few other members. Looking a the list, Bahr poses a reasonable question:

“If [the Energy Park Authority] is going to be used for siting renewable energy,” she asks, “why no experts with backgrounds in renewable?”

For a bill that’s supposed to be a model of “renewable friendly” legislation, the bill has some other peculiarities. We’ll turn to them, tomorrow.

Then we’ll look at Plan C, which is the greatest threat to the future of solar power in Arizona. It’s also the one most likely to succeed.