Secure State Energy Actions 2010 UPDATE

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1 Clean and Secure State Energy Actions 2010 UPDATE

2 The National Governors Association (NGA), founded in 1908, is the instrument through which the nation s governors collectively influence the development and implementation of national policy and apply creative leadership to state issues. Its members are the governors of the 50 states, three territories and two commonwealths. The NGA Center for Best Practices is the nation s only dedicated consulting firm for governors and their key policy staff. The NGA Center s mission is to develop and implement innovative solutions to public policy challenges. Through the staff of the NGA Center, governors and their policy advisors can: Quickly learn about what works, what doesn t and what lessons can be learned from other governors grappling with the same problems; Obtain specialized assistance in designing and implementing new programs or improving the effectiveness of current programs; Receive up-to-date, comprehensive information about what is happening in other state capitals and in Washington, D.C., so governors are aware of cutting-edge policies; and Learn about emerging national trends and their implications for states, so governors can prepare to meet future demands. For more information about NGA and the Center for Best Practices, please visit ACKNOWLEDGEMENTS This report was authored by Rachel Escobar and Sue Gander of the National Governors Association Center for Best Practices (NGA Center), with writing and research assistance from Greg Dierkers, Devashree Saha, Andrew Kambour, and Katherine George, also of the NGA Center.

3 Category Actions Being Taken Energy Efficiency Building Energy Codes Utility Demand-Side-Management Utility Rate Realignment Financial Incentives Loans, Rebates, Taxes, Bonds, Etc. Residential and Commercial: 2003 IECC mandatory for jurisdictions that do not adopt their own code and for state-owned and -leased facilities The Oklahoma Corporation Commission had initiated a rulemaking on demandside management encompassing both gas and electric utilities; interested parties are currently participating in a collaborative process facilitated by the Regulatory Assistance Project; the collaborative will submit comments to the Oklahoma Corporation Commission by October 1, 2008; the Commission anticipates adopting rules by November 1, 2008 Incentive of 25% of net savings available for programs for which energy savings can be estimated and 15% of the costs for programs that do not produce savings such as educational or marketing programs Revenue recovery mechanisms available on a case-by-case basis The Oklahoma Department of Commerce has established a loan/lease fund for public and non-profit K-12 schools to improve energy efficiency: Category One funding will pay for technical and energy audits, the development of Energy Management Plans, and any professional services that contribute to the planning and design of energy reduction systems and measures and Category II funding covers the actual acquisition and installation of energy conservation measures Offers an income tax credit for eligible expenditures to contractors for energy efficient homes or manufactured homes; offers a revolving loan fund for local governments to make energy efficient improvements to government buildings Allows for Property Assessed Clean Energy (PACE) financing (SB 668) Clean Electricity Renewable/Alternative Energy Portfolio Standards and Goals Net Metering and Interconnection Standards Advanced Coal and Clean Coal Financial Incentives Loans, Rebates, Taxes, Bonds, Etc. Set goal calling for 15% of electricity to be generated from renewable energy sources such as wind, solar, and geothermal by 2015 (HB 3028, Oklahoma Energy Security Act) Requires investor-owned utilities and electric cooperatives under the commission s jurisdiction to file net-metering tariffs for customer-owned renewable-energy systems and combined-heat-and-power (CHP) facilities up to 100 kw in capacity The Oklahoma Carbon Sequestration Act establishes requirements to document and quantify efforts on agricultural and nonagricultural land within the state to enhance the ability of the state s landowners to participate in carbon dioxide emissions marketing or trading systems A state income tax credit is available to producers of electric power using renewable energy resources from a zero-emission facility; offers an income tax credit to the manufacturers of small wind turbines (up to 50 kw) Income tax credit for 40% of the installation of a wind energy and/or photovoltaic energy system on residential and nonresidential property for tax years 2010 to 2014 The actions taken from July 2008-May 2010 are listed in bold and blue, below the information included in the original 2008 report UPDATE 129

4 Category Actions Being Taken Alternative Fuels & Vehicles The Alternative Fuels Loan program provides 0% interest loans to help convert government-owned fleets to operate on alternative fuels; offers low-interest loans to convert private fleets to alternative fuel vehicles Financial Incentives Loans, Rebates, Taxes, Bonds, Etc. Provides a motor fuel excise tax exemption for individuals who produce and utilize biofuels; provides a one-time income tax credit for 50% of the cost of converting a vehicle to operate on an alternative fuel, or for 50% of the incremental cost of purchasing a new Original Equipment Manufacturer alternative fuel vehicle (AFV); provides a tax credit for up to 50% of the cost of installing refueling infrastructure for AFVs; biodiesel (B100) and ethanol production facilities are allowed a per gallon tax credit for production of biofuels; a retailer of ethanol-blended fuel may claim a motor fuel tax credit for each gallon of ethanol fuel sold; Extended the tax credit for purchase of alternative fuel vehicle Lead By Example Appliance/Equipment Efficiency Standards Building Efficiency Alternative Fuel and Vehicle Fleets Requires state agencies to develop energy efficiency and conservation plans with provisions for purchasing energy-efficient products and vehicles that use alternative fuel sources (HB 3394) All new state-owned buildings or major renovations must meet minimum LEED standards (HB 3394) Revolving loan fund available to local governments to make energy efficient improvements for government buildings State agencies, boards and commissions are required to appoint an Energy Efficiency Coordinator All school and government vehicles may be converted to operate on an alternative fuel, and all school districts should consider only purchasing school vehicles which have the capability to operate on an alternative fuel; requires all school and government vehicles capable of operating on an alternative fuel to use the fuel whenever possible Authorized the construction and operation of alternative fueling infrastructure by the State Fleet Management Division Clean Energy RD&D Partnerships, Grants, Awards, and Dedicated Funding The Oklahoma Bioenergy Center (OBC) was created in 2007 and is a fouryear, $40 million research initiative focused on achieving the competitive and sustainable production of advanced liquid biofuels in Oklahoma; the OBC is a collaboration of the University of Oklahoma, Oklahoma State University and the Samuel Roberts Noble Foundation; the OBC will establish production-scale demonstration fields totaling more than 1,300 acres for cellulosic energy crops, including sorghum and switchgrass; in addition to the demonstration fields, the OBC will conduct research on crop production and development, conversion technologies and harvest collection and transportation of energy crops; external contributors to the OBC include Abengoa Bioenergy, Idaho National Laboratory, Ceres, Inc., and Hitch Enterprises, Inc.; the Oklahoma Biofuels Development Act was created to encourage the processing, market development, promotion, distribution, and research of fuels derived from grain, ethanol or ethanol components, biodiesel, bio-based lubricants, co-products, or by-products Created the Clean Energy Independence Commission; reports to the Secretary of Energy The actions taken from July 2008-May 2010 are listed in bold and blue, below the information included in the original 2008 report. 130 Clean and Secure State Energy Actions

5 Category Actions Being Taken Green Economic Development Task Force, Workforce Development, Incentives, Analysis, Etc. Establishing and implementing an energy efficiency and renewable energy worker training program in 2009 (HB 1682, Green Jobs Act) Other Energy Independence Act Clean Energy Independence Commission Created County Energy District Authorities to oversee grants, energy audits, and other energy security functions Created a commission of representatives from government agencies, private energy industries, and public and private universities to address a variety of energy issues The actions taken from July 2008-May 2010 are listed in bold and blue, below the information included in the original 2008 report UPDATE 131

6 NGA Center Divisions The NGA Center is organized into five divisions with some collaborative projects across all divisions. Economic, Human Services & Workforce focuses on best practices, policy options, and service delivery improvements across a range of current and emerging issues, including economic development and innovation, workforce development, employment services, research and development policies, and human services for children, youth, low-income families, and people with disabilities. Education provides information on best practices in early childhood, elementary, secondary, and postsecondary education. Specific issues include common core state standards and assessments; teacher effectiveness; high school redesign; science, technology, engineering and math (STEM) education; postsecondary education attainment, productivity, and accountability; extra learning opportunities; and school readiness. Environment, Energy & Transportation identifies best practices and provides technical assistance on issues including clean energy for the electricity and transportation sectors, energy and infrastructure financing, green economic development, transportation and land use planning, and clean up and stewardship of nuclear weapons sites. Health covers a broad range of health financing, service delivery, and coverage issues, including implementation of federal health reforms, quality initiatives, cost-containment policies, health information technology, state public health initiatives, and Medicaid. Homeland Security & Public Safety supports governors homeland security and criminal justice policy advisors. This work includes supporting the Governors Homeland Security Advisors Council (GHSAC) and providing technical assistance to a network of governors criminal justice policy advisors. Issues include emergency preparedness, interoperability, cyber-crime and cyber-security, intelligence coordination, emergency management, sentencing and corrections, forensics, and justice information technology.

7 John Thomasian, Director NGA Center for Best Practices 444 N. Capitol Street, Suite 267 Washington, DC