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<title>October 2006: States Use Innovative Approaches To Promote Renewable
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<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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<p ALIGN="left"><b><u><br>
<br>
October 2006</u></b><font size="6"><b><br>
</b></font></p><b>
<font size="6">
<p>STATES USE INNOVATIVE APPROACHES TO PROMOTE RENEWABLE ENERGY</p>
<p align="left"></font><strong>by Robert Olson and
</strong>David J. Shulock<strong> -- Brown, Olson and Wilson, P.C.<font size="6"><br>
</font>
</strong>
</b><font size="6"><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
2006</em>/10/27)</font></p>
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<p ALIGN="LEFT">In effort to encourage increased use of renewable energy,
state governments are developing innovative approaches to increase
development of renewable energy sources such as wind, biomass, and solar
power.</p>
<p ALIGN="LEFT">Three separate incentives have emerged in California
recently. Proposition 87, the California Clean Air Initiative, is a measure
on the state’s November ballot that would impose a fee upon oil producers to
fund up to about $4 billion in renewables and other energy programs in the
next ten years. The fund would come from fees assessed on oil drilling in
the state paid by oil companies and would be on a sliding scale from 1.5% to
6% based on the price of oil. Once the $4 billion is raised, the fee would
end. The money raised would promote clean air technologies such as solar and
wind power and other renewables, energy efficiency technologies, and
conservation strategies. The goal is to reduce oil consumption by 25% over
the next decade. <br>
<br>
The second incentive was enacted on September 25, 2006, when California
Governor Arnold Schwarzenegger signed SB 107. This measure accelerates
compliance with the state’s renewable portfolio standard from 2017 to 2010.
The bill requires each retail seller to increase its total procurement of
eligible renewable energy resources by at least an additional 1% of retail
sales per year so that 20% of its retail sales are procured from eligible
renewable resources no later than December 31, 2010. The law includes a
flexible compliance provision intended to assist utilities to meet the
renewables goal. Included in these provisions is a measure that permits
renewable power produced outside the state to count toward the 20%
renewables goal if the power is delivered to an in-state location.</p>
<p ALIGN="LEFT">A third incentive is the Los Angeles Department of Water and
Power’s plan to issue a request for proposals for four 25- MW municipal
solid waste to energy projects, two 125-MW solar power projects, and a 50-MW
geothermal plant as part of its renewable portfolio standard master plan.
The city is requesting proposals from private developers to construct the
plants but eventually wants to take ownership and control of the plants to
speed up the development process. The LADWP hopes to have the plants up and
running by 2013. The objective is to meet an RPS goal, established by the
city council, to have 20% of its resources generated by renewables by 2010.</p>
<p ALIGN="LEFT">Louisiana currently does not have a renewable portfolio
standard but is looking to encourage greater use of renewables through green
pricing rules. With green pricing, customers may chose to buy renewable
energy that the utility has contracted for. The utilities would be required
to offer green electricity for a premium to those willing to pay the whole
cost. Two key issues facing the Louisiana Public Service Commission (PSC) is
whether it should require renewable power to come solely from in-state
generators and whether utilities would be allowed to buy renewable credits.
In response to the PSC request for comments on its staff recommendations
several industrial companies and the state’s farm bureau have asked the PSC
to promote in-state-produced biomass as a source of renewable energy.</p>
<p ALIGN="LEFT">Pennsylvania Governor, Edward Rendell, announced on October
5, 2006, that the state is investing $6.4 million in 16 clean energy
projects to stimulate the growth of clean energy technologies. The 16
projects will receive grants for a variety of clean fuels and green power
projects using sources such as solar, fuel cells, biofuel, landfill gas, and
biomass. The projects were evaluated on a variety of criteria, including
their ability to promote the state’s indigenous energy sources. The projects
will generate an estimated 15,720 megawatt hours of electricity and produce
the equivalent of enough natural gas to supply almost 2,500 homes for
a year. The projects also have the potential to produce 115 million gallons
of biofuel.</p>
<p ALIGN="LEFT">On September 25, 2006, Wisconsin Governor, Jim Doyle,
announced a plan to encourage development and use of renewable energy and
bioindustry in the state through a $450 million public and private
investment strategy, including nearly $80 million in funds from the state.
The program includes financial incentives such as bonds, tax credits, loans,
and grants for companies willing to invest in and develop new technologies
and renewable energy. The plan also includes a $20 million grant program for
companies and researchers developing new technologies to increase renewable
fuels. The plan follows on the heels of the Governor ’s announcement earlier
this year that the state’s goal is to generate 25% of its electricity and
25% of its transportation fuel from renewable fuels by 2025, and to capture
10% of the market share for renewable energy production by 2030.</p>
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<blockquote>
<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
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