The Current - March 2010
Articles In This Issue:
- Power Play: Legislators Wrestle with Clean Energy Bills
- Energy Pioneers: Two Industry Leaders Discuss How to Build an Offshore Wind Inustry
- Blown Away: Home Owner Gets Extraordinary Results from Wind Turbine
- Clean Technology Incubator Opens
- Wind Power: An Important Component of a Balanced Energy Portfolio
- Funding Efficiency: PACE Loans Come to New Jurisdictions
- Energizing a New Workforce: Training Programs Focus on Clean Energy
- Good for You - and the Environment Too: How Honest Tea Gave Back Through Renewable Energy Credits
"The Current" newsletter series IS MADE POSSIBLE THANKS TO Pepco HOLDINGS INC:
Power play
Legislators Wrestle with Clean Energy Bills
With less than a month left in the 2010 General Assembly session, Maryland legislators are still debating bills that could boost the state’s solar energy use, facilitate offshore wind developments, create tax incentives for electric cars, fund more energy efficient housing, support biofuel developments, and advance other clean energy objectives.Legislators have shown a growing interest in clean energy issues this session, said Donald Hogan, an attorney specializing in legislative issues and an advisor to MCEC. The newly created Green Caucus has attracted more than 40 members from the Senate and House of Delegates, he said. It has also facilitated discussions between legislators and clean energy experts from industry, nonprofits, and government agencies.
The legislature, however, has not yet passed major clean energy bills drafted by Gov. Martin O’Malley and various legislators.
For example, a bill that would amend the Property Assessed Clean Energy (PACE) loan program encountered strong opposition in the Senate Finance Committee, Hogan said. PACE programs are created by local governments and provide homeowners with low-interest loans to make energy efficiency upgrades to their houses. The bill would enable local governments to place a tax lien on a household that failed to make loan payments.
“The bankers do not like the bill,” Hogan said. Specifically, bankers are objecting to the fact that such a tax lien would take priority over any lien placed by a mortgage company.
Some Senators, he added, also raised concerns that low-income families might take out PACE loans, become unable to make payments, and subsequently lose their homes.
PACE loans, however, are fairly small “and the intent of the program is to structure these to make sure that the loan-to-value ratio is very good, that the person has good credit history and is up-to-date on the payment of their bills and their mortgage,” Hogan said. “We’re not looking to make loans to people with questionable credit histories.”
House and Senate subcommittees have held hearings of the governor’s clean energy bills, but not yet forwarded them to the full House and Senate for votes. Those bills would:
Accelerated Maryland’s Solar Renewable Portfolio Standard. Currently, Maryland is required to increase its solar energy use from 0.005 percent of all energy used in-state in 2008 to 2 percent in 2022. Existing legislation, however, requires relatively slow growth in solar energy use up until 2017. The governor’s bill would accelerate the required adoption of solar energy in 2011-2017. It would also increase the Alternative Compliance Payment, a penalty that electricity providers must pay if they fail to meet solar energy requirements.
Extend the Renewable Energy Production Tax Credit. This program, which offers Marylanders a state income tax credit for generating renewable energy, is set to expire at the end of 2010. The governor’s bill would extend the program through 2014.
Enable Offshore Wind Developments. The governor’s bill aims to facilitate offshore wind power developments by eliminating certain regulatory hurdles and uncertainties. Specifically, it would permit some developers to lay submerged/buried energy lines from offshore wind facilities to land, passing through the beach erosion district. It would also give the Public Service Commission jurisdiction over those lines.
Promote Plug-in Electric Vehicles. To entice Marylanders to buy electric cars, the governor’s bill would exempt such purchases from the vehicle excise tax for three years. The exemption, which would be capped at $2,000 per vehicle and limited to one vehicle per person or 10 vehicles per company, is expected to cost $270,000 in fiscal 2011. It would be funded by proceeds from the Regional Greenhouse Gas Initiative
The Maryland Clean Energy Center has endorsed all of the governor’s clean energy bills, as well as bill that would amend the PACE program.
The 2010 session of the Maryland General Assembly is set to end April 12.
energy pioneers
Two Industry Leaders Discuss Building an Offshore Wind Industry
Peter Mandelstam, founder and president of NRG Bluewater Wind, has a few hefty items on his to-do list.
In the next six to nine months, he must find a suitable shipyard to build a $160-million turbine-installation vessel. He must close a deal with an energy services firm to manufacture 150 offshore turbines, preferably at a U.S. site. To secure essential development permits, his firm must satisfy a raft of federal and state regulations, even though some haven’t been written yet. And Mandelstam needs to prepare to compete for power purchase agreements that could total several hundred megawatts. And those are just some of the top-priority items.
NRG Bluewater Wind is preparing to build this region’s first offshore wind energy project – the Mid-Atlantic Wind Park. Sited 13 miles off the coast of Rehoboth Beach, the park is currently slated to supply 200 megawatts to Delmarva Power customers in Delaware, another 38 megawatts to municipalities on the peninsula, and 55 megawatts to the University System of Maryland.
But officials from Bluewater – and other companies vying for a slice of the offshore wind market – say they are building much more than ships, turbines, and transmission lines.
“We are not looking to build a wind farm. We are looking at building a whole new industry,” said Jean-Paul Crouzoulon, vice president of operations with Areva Renewables North America in Bethesda.
That industry has the potential to be large. Construction of the Mid-Atlantic Wind Park would create 500 direct jobs and generate several hundred million dollars in earnings for contractors and workers along the supply chain, according to NRG Bluewater Wind. Facility operations and maintenance would sustain another 80-100 permanent positions.
Turbine manufacturing would trigger additional job creation, Crouzoulon said. Studies in Europe have concluded that a factory, which produces 100 wind turbines a year, supports 6,000 jobs throughout the supply chain, he said.
Companies, such as NRG Bluewater Wind, are pressed to begin offshore development soon. Bluewater’s current schedule for the Mid-Atlantic Wind Park would see shore-side work begin in 2013 with offshore installation and project completion happening in 2014.
And companies are proposing to build other offshore wind facilities beyond the Mid-Atlantic Wind Park. NRG Bluewater Wind has proposed constructing a wind park 12 miles off Ocean City’s beach, which could generate enough power to fully supply 136,000 Maryland households.
However, “to create this industry, we will need both certainty and passion,” Crouzoulon said.
Government and industry leaders will need to make multiple, large, simultaneous advances in clean energy regulations, purchase contracts and infrastructure in order to kick start the offshore wind industry in Maryland and the Mid-Atlantic, Crouzoulon said.
For example, the region currently does not have any turbine-installation vessels (TIVs). Used as the base for installing offshore turbines, TIVs are outfitted with ‘legs’ that jack the ship up to 165 feet out of the water and turn it into a stable construction platform in the middle of the ocean.
“And there is no port in Maryland that is equipped to build these vessels,” said Mandelstam, who is currently searching for a company to supply two TIVs to the Mid-Atlantic Wind Park project.
Similarly, the region does not have any turbine manufacturing facilities. The world’s leading turbine factories are all located in Europe.
Areva, which is headquartered in France, is vying for the contract to supply turbines to Bluewater’s Mid-Atlantic Wind Park.
“Assuming the industry takes off, we will manufacture the turbines in the U.S.,” Crouzoulon said. “Some of our competitors think they can ship turbines from Europe. We have a different approach. We will localize manufacturing somewhere along the northeast coast because that is where we believe the projects will be.”
The region, Mandelstam added, currently doesn’t have any offshore wind technicians in its workforce. Consequently, NRG Bluewater Wind recently held discussions with DelTech in Delaware and the University of Maryland about funding training programs for future offshore wind technicians.
Putting all the necessary pieces in place to create an offshore wind industry will require coordination and courage from governments, corporations, educational institutions, financial institutions and others, Crouzoulon said.
“When you are building an industry, you need to bring all the stakeholders around the table because no one can more forward without the others. It’s an effort that has to move forward as a collective,” he said. “And we can’t approach this with small, narrow thinking. We will miss steps. But if you take it big – look at the big picture and have big passion – this country could enjoy a very robust wind industry, especially in this part of the country.”
Blown Away
Homeowner Gets Extraordinary Results with Wind Turbine Project
At some point during a campaign to block the expansion of a coal-fired power plant, Charles County resident Ken Robinson decided to fight fire with wind.
As president of the Swan Point Property Owners Association, Robinson had long tracked the environmental performance of Mirant Corp., which operated the Morgantown Generating Plant across the river from his neighborhood. He also fought Mirant’s planned expansion of the Morgantown facility.
While researching energy issues, Robinson learned about a tantalizing option to reduce his personal need for grid power and facilities like the Morgantown plant. He began laying plans to install a single wind turbine on his riverfront property.
“It was a real challenge,” he said. But today, Robinson is drawing roughly 50 percent of his home’s power from his turbine and championing efforts to create similar projects around the state. He is advising homeowners and business owners about the benefits and limitations of turbines, working to kick off an experiment with dockside turbines, and pressing state and local officials not to overlook the potential of small wind projects.
“I’ve sort of become Johnny Windmill Seed,” Robinson said.
His decision to erect a turbine on his property – a windy point between the Potomac River and Cuckold Creek – thrust Robinson into a role as a clean energy trailblazer.
County officials had never received an application to install a residential wind turbine, and didn’t have a process in place to assess it, Robinson said. They opted to treat the request like an application to build an accessory structure, such as a barn, but further insisted that Robinson get approval from the Chesapeake Bay Critical Area Commission and secure a zoning variance from the Charles County Zoning Board.
Over the course of five months, Robinson secured all the requested approvals, including one from the Southern Maryland Electric Cooperative.
“The ironic thing is when we got our variance approved, the final page of the document basically said, by the way, you didn’t need a variance,” he said.
Last March, about 200 neighbors, colleagues, state officials and members of a local elementary school’s green club stood on Robinson’s point while a draft horse named King hoisted the 33-foot Skystream into place.
“Now, I am always looking to see if the turbine is spinning,” Robinson said. “It’s been a year since it has gone up and the thrill hasn’t gone yet.”
The Skystream, he said, has outperformed expectations. Robinson had expected the turbine to cover about 35 percent of his home’s energy needs. The Skystream, however, has been generating more than 1,000 kw hours per month, covering about 50 percent of his energy needs on average and periodically making the household 100 percent energy self-sufficient.
The structure has weathered high winds, including gusts exceeding 50 mph during February’s blizzards, without damage.
“But probably the best survival story was from last July when we had a low-lying, serious thunder storm,” Robinson said. “I watched the turbine get hit by lightning 11 times. It was pretty scary. After the storm ended, it was as calm as could be, so I had no idea if the turbine was still functioning or not. But when I woke up the next morning, it was spinning just fine.”
The wind project, including a 700-foot power line from the turbine to his house, cost Robinson $23,000. He received a $6,000 grant from the state and a $6,000 federal income tax credit to offset the cost of the turbine. He anticipates the turbine will pay for itself in about five years.
“I’m the only one locally who has done this. But I figure within the next year or two, wind turbines are going to become much more mainstream,” said Robinson, who has advised several other individuals about installing a turbine.
Dr. Carlos Fernandez-Bueno is president of Potomac Wind Energy in Dickerson, the supplier and installer of Robinson’s turbine. He suggests that Maryland could make much greater use of small wind projects.
Siting, he said, is critical to a project’s production and its financials.
“The first thing I ask people is what do you see when the sun set? If they say, ‘I can see into the next county,’ that’s good,” Fernandez-Bueno said. Open expanses with western exposure tend to get ample wind, he said.
Turbines, which have fairly small footprints, can fit easily onto many sites, including home sites, farms, industrial properties, and community properties.
“I have a 25-acre farm, and I have 10 turbines on my property. The horses don’t mind,” Fernandez-Bueno said.
Both Robinson and Fernandez-Bueno are urging state and local governments to establish clear, streamlined procedures for vetting small wind projects.
The two are also currently seeking state approval to begin a small wind experiment. They are proposing to mount a modified Skystream turbine onto a pier. (The turbine would be shortened from 33 feet tall to 21 feet.)
Windy coastlines are naturally good locations for wind power sites, Robinson said. “Maryland is filled with so many piers and shorelines that if this trial works, it could revolutionize renewable energy in the state.”
Clean energy technology incubator opens
Opening Reception Scheduled for Tuesday, March 30
The Clean Energy Technology Incubator (CETI) at the University of Maryland Baltimore County will host its grand opening March 30.
The gathering, scheduled for 4-6 p.m. in the main seminar room of bwtech@UMBC South (Incubator and Accelerator), will include remarks by UMBC President Freeman Hrabowski, Baltimore County Executive Jim Smith, bwtech@UMBC Executive Director Ellen Hemmerly, and Maryland Clean Energy Center Executive Director Katherine Magruder.
Bjorn Frogner, CETI’s Entreprenuer-in-Residence, will host a panel discussion about “Opportunities and Challenges to Starting a New Business in the Clean Energy Market: What Entrepreneurs and Investors Need to Know.” Panelists will include Tim Brennan, a professor of public policy at UMBC; Kathleen Turano, CEO of Plant Sensory Systems; Peter Kelly-Detwiler, senior vice president of load response for Constellation Energy; and a representative from the Maryland Energy Administration.
CETI – a joint venture by bwtech@UMBC and the Maryland Clean Energy Center – is currently looking for early stage companies to become tenants in the incubator. Clean energy entrepreneurs are encouraged to attend CETI’s grand opening to learn more about its services and to connect with other entrepreneurs and experts in the clean energy sector.
To RSVP for the grand opening, please contact Stacy Cotter at scotter@umbc.edu by March 25.
ENERGY WISE INFO From Pepco and Delmarva Power
WIND POwEr: AN IMPORTANT COMPONENT OF A BALANCED ENERGY PORTFOLIO
Pepco and Delmarva Power, both members of the Pepco Holdings, Inc. family of companies, share PHI’s commitment to providing customers with affordable electric power from renewable sources.
Maryland law requires Pepco and Delmarva Power to increase every year the proportion of energy from renewable resources in their total power supplies. As a matter of fact, the required percentages are scheduled to increase significantly over the next several years in each jurisdiction where PHI operates. Wind power qualifies as renewable energy in each of these jurisdictions, and is also one of the more economical renewable energy resources in the mid-Atlantic marketplace. As a result, PHI’s utility companies are working hard to include as much cost-effective wind energy in their renewable energy supply portfolios as possible.
At present, electricity from renewable sources such as wind is generally somewhat more expensive per kilowatt hour than power generated by traditional methods. And as renewable portfolio requirements increase, the price may also increase to meet the rising demand. However, there are some signs that technological advances may exert downward pressure on production costs. While it is difficult to predict the net impact of these factors on prices for renewable energy, PHI companies are working to ensure the lowest possible costs to customers. For example, in Delaware, Delmarva Power issued a competitively bid request for proposals (RFP) for the provision of land-based wind energy. Designed to find the lowest price for wind energy, the RFP enabled Delmarva Power to sign contracts with a number of wind power suppliers, including two major wind farms in western Maryland.
One method of minimizing costs to individual consumers that shows particular promise is to “socialize” those costs across as wide an area as possible. Therefore, PHI supports the recent agreement by Maryland, Virginia and Delaware to explore regional approaches to increasing the availability of wind energy. PHI also is planning construction of new backbone electric transmission -- the Mid-Atlantic Power Pathway (MAPP) -- which, once regulatory approval and other required licenses and permits are obtained, will help ensure the reliability of the power grid and provide a gateway for land- and ocean-based wind power and other renewable energy to reach our customers.
In conclusion, facilitating and providing access to ample supplies of renewable power from both local and distant sources will help PHI to achieve its core goals of sustainability, reliability and cost-effectiveness for the communities it serves.
Pepco and Delmarva Power, public utilities owned by Pepco Holdings, Inc. (NYSE: POM), provide safe and reliable energy to approximately 719,000 customers in Maryland. PHI welcomes the opportunity to join the Maryland Clean Energy Center in providing Maryland electric customers with the information they need to conserve energy, lower their electric bills and help create a clean and safe environment for Maryland. A member of the Maryland Green Registry, PHI is ranked number 134 in Newsweek magazine’s Greenest Big Companies in America, published October 2009.
funding efficiency
PACE Loans Coming to New Jurisdictions
and the City of Frederick to create loan programs that would cover the cost of making local homes more energy efficient.The Property Assessed Clean Energy (PACE) loan programs, which are expected to go into operation later this year, will provide low-interest loans to homeowners to cover the cost of conducting whole-house energy audits and completing recommended home improvements, such as sealing ductwork and installing insulation. In some jurisdictions, PACE loans may also cover the cost of installing clean energy systems on highly efficient houses. Unlike consumer loans, each PACE loan is tied to the property, not the individual homeowner, and repaid through a special assessment.
Courtney Billups is a program management consultant with MCEC who is working to initiate PACE programs throughout the state. The center, he said, is striving to give local governments an easy and inexpensive way to join PACE.
“We have to recognize the time we are in,” Billups said. “Financial directors in most jurisdictions haven’t seen a fiscal situation like this in 20-30 years. Most of them have never seen a fiscal situation like this. And unfortunately with property assessments going down, it will be two or three years before jurisdictions will be back on sound financial footing. So we realize that many local jurisdictions don’t have the general fund dollars to put into these types of programs or the human resources to administer them.”
Consequently, MCEC is distributing $3.3 million from the American Recovery and Reinvestment Act (the federal stimulus package) to local jurisdictions who create PACE programs. Center officials last year awarded $325,000 to the City of Annapolis for its loan program, and expect to partly fund Montgomery County’s program later this year.
MCEC is also offering to serve as a centralized administrator for PACE programs throughout the state. The center, Billups said, is honing standardized legislation and loan documents that local jurisdictions can use. It is also developing a software package that will enable loan administrators, local governments, homeowners, contractors and energy auditors to complete loan applications, monitoring and reporting online.
“Jurisdictions have been very receptive to this approach,” Billups said, adding that MCEC is currently talking with several other counties and cities about creating PACE programs. “We want to provide opportunities to jurisdictions to have viable energy efficiency and clean energy programs. And this is an opportunity for jurisdictions to do something new and take credit for it without having to put up the dollars or the human resources.”
Billups predicted that consumer demand for PACE loans will likely increase in the next few years as energy prices rise.
“We are going to face huge escalations in energy prices,” he said. “The recession has muted those prices for now. But as soon as the economy picks up, you are going to see these energy rates start spiking again.”
energizing a new workforce
New Training Programs Focus on Clean Energy and Efficiency
At Hagerstown Community College, Margaret Spivey points to a single hire as a small, but concrete sign that employers really want staff with clean energy skills.
Spivey, the college’s director of technology and computer skills, had been developing an alternative energy degree program. The program isn’t scheduled to begin until fall 2010, but the college opened one session of its introductory class (an overview of alternative energy technologies) this spring.
“One student, who had some background in the trades, put on his resume that he was taking this introduction to alternative energy course and he was actually hired based on that,” Spivey said. “That’s one small success story. But for the first semester, that said a lot.”
Throughout the state, colleges, universities, trade unions, and others have started developing and scheduling classes in clean energy and energy efficiency. The weak economy and anemic job market meant that some programs experienced slow starts. But organizers say employer interest is growing in clean energy programs and fueling the promise of future job openings for specialists in energy auditing, solar installation, geothermal systems, wind power, and other clean energy technologies. That prospect is prompting many educators to expand their clean energy training programs.
Here is a sampling of some available courses. Check for more posted on our website.
Hagerstown Community College. College officials have just finished developing an Alternative Energy Technology degree. The 65-credit program would cover photovoltaic, wind and geothermal systems, as well as fundamentals of electricity, plumbing, HVAC, welding, motors, spreadsheets, technical writing, and safety issues.
The college has created certificate programs in solar, wind and geothermal energy.
Construction and Energy Technologies Education Consortium (CETEC). This coalition of community colleges hosts training programs statewide in weatherization tactics, building energy analysis, building envelope, HVAC, and renovation/repair/lead paint. Since its inception last July, the program has graduated nearly 400 students.
Penny Jung, CETEC’s weatherization project director, said demand for those classes and their graduates might increase as utilities fully implement their energy efficiency programs, the federal government releases more money for weatherization of low-income homes, and congress passes the ‘cash for caulkers’ program.
Frederick Community College. In addition to serving as a hub for CETEC training, Frederick Community College has developed a solar power program. It is also working to expand its energy training center to include a pressure house where students could learn to conduct pressure door tests and address efficiency problems identified by them.
David Croghan, associate vice president of learning and dean of continuing education and customized training, said the college is striving to meet an expected rise in the need for weatherization experts, home energy auditors, and solar technicians. College officials, however, are having difficulty predicting exactly how many clean energy experts will be needed in the near future.
It’s not like when a company comes to town and opens a call center and instantly needs 250 workers,” Croghan said. “When we talk to employers [about clean energy jobs], they say they might hire two or three people in the next year. So one of the things we have to be careful of is training 750 solar technicians for 75 jobs.”
Independent Electrical Contractors-Chesapeake. Executive Director Grant Shmeltzer said the IEC has adopted a two-pronged approach to educating members about clean energy. First, it created a lecture series, informing contractors about clean energy technologies and business opportunities arising from them. Second, it has started hosting training programs for certification in energy efficiency and solar power, and is about to begin training programs in wind energy, solar thermal, and energy efficient lighting.
Many contractors, Schmeltzer said, are eager to expand their work to include energy efficiency and clean energy services, and to master the details of various incentive programs so they can advise clients on how to get the best return-on-investment from their energy upgrades.
Towson University. The university’s continuing education and online courses include classes in alternative energy options, photovoltaic systems, solar hot water heating, energy efficiency design for architects, energy efficiency auditing software, HERS home energy analysis training, and weatherization energy auditing.
Anne Arundel Community College. Amid a raft of environmentally conscious programs, Anne Arundel has created an Alternative and Sustainable Energy Systems Certificate. The program covers the fundamentals of energy use, heating and cooling systems, and clean energy options, as well as preparing students to gain RESNET Energy Rater certification.
Governor’s Workforce Investment Board. Having landed a $5.8-million grant from the federal Department of Labor, GWIB is about to begin multiple green economy training programs, including a solar energy program designed to train 480 solar technicians in the next three years.
Bernard Reynolds, GWIB’s industry initiative coordinator, said state officials don’t know exactly how many clean energy jobs are on the horizon. However, the Maryland Energy Administration estimates that every $1 million invested in the clean energy sector generates 73 jobs. “And once the economy turns around in some way, shape or form, that job growth will be there,” Reynolds said.
Good for you - and the environment, too
How Honest Tea Gave Back Through Renewable Energy Credits
In 2008, Honest Tea decided to create a new green tea. Consumers had been requesting another green tea and we had come up with a delicious recipe with jasmine flowers.
At about the same time, our friends at Clean Currents engaged us in a discussion of renewable energy credits (RECs). Together, we began exploring how Honest Tea could be part of the effort to support cleaner energy.
While we may know a lot about tea, we were just beginning to understand our energy use and how to better manage it. Partnering with Clean Currents, we were able to work with our suppliers to gain a better understanding of the environmental impact of our supply chain. Clean Currents compiled data on our suppliers, analyzing everything from tea leaves, glass bottles and organic cane sugar to the shipment of raw materials and finished goods. The whole process took about two months as we delved deep into everything it took to make a bottle of Jasmine Green Energy.
Take plastic bottles, for example. With Clean Currents’ help, we were able to calculate the emissions generated by producing the plastic resin for 600,000 bottles, manufacturing the bottles themselves, and transporting the bottles to our production facility. The end result showed that 427,000 pounds of carbon dioxide were created along the production chain for our Jasmine Green Energy Tea.
Once we had that information, we worked with Clean Currents to identify a wind farm to direct our renewable energy credits to. We found a small power cooperative in Waverly, Iowa which powers approximately 120 homes. The RECs, which Honest Tea purchased to offset our production of carbon dioxide, funds the production of wind energy, effectively reducing the amount of carbon dioxide and other pollutants emitted into the atmosphere.
Identifying our emissions was just the beginning. The next step we took was to identify what steps along the production chain created the largest carbon footprint. We took one major step in reducing our carbon footprint when we set up production on both coasts. And this year, we launched a new plastic bottle that uses 22 percent less plastic, resulting in a reduction of 1 million pounds of resin and lightening every truckload by 500 pounds.
We recognize that RECs are only part of the answer. But with every new flavor we brew in the Honest kitchen, we continue to explore how we can make beverages that minimize our impact on the environment. Now that’s a sip in the right direction.
--Submitted by Honest Tea