Secure State Energy Actions 2010 UPDATE

Size: px
Start display at page:

Download "Secure State Energy Actions 2010 UPDATE"

Transcription

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 Rate Realignment Residential and Commercial: state developed code based on 1992 MEC, mandatory statewide Decoupling in natural gas markets; one electric utility decoupled Several utility rebate programs exist throughout the state provided by separate rural electric cooperatives Financial Incentives Loans, Rebates, Taxes, Bonds, Etc. Provides up to $1 million in tax credits for individuals and small businesses investing in Energy Star compliant equipment Offers homeowners and small business owners a state income tax credit, up to $100, for the purchase of ENERGY STAR rated equipment as of January 1, 2009 Offered more than $8 million to county and city governments for lighting and structural retrofits Promotes energy efficiency and conservation through ongoing education and outreach programs (compact fluorescent light bulb give-aways, anti-idling events, and energy conservation education); Purdue University s TAP Energy Efficiency Services program is educating large, industrial commercial, and institutional energy users on energy efficiency and conservation Clean Electricity Net Metering and Interconnection Standards Advanced Coal and Clean Coal Three levels of interconnection standards; investor-owned utilities are required to offer net metering to residential customers and K-12 schools for solar, wind and hydroelectric projects with a maximum capacity of 10 kw Utilities are required to offer net metering to customers who generate their own electricity from renewable sources and buy back the surplus electricity of the renewable energy producers (SB 300) Provides financial incentives for clean coal projects using Illinois Basin coal or gas including clean coal at new or existing facilities and advanced technologies that reduce air emissions from existing facilities; also allows a coal gasification investment tax credit Offers residential homeowners a rebate for installing geothermal heat pumps; Established the Geothermal Conversion Revolving Loan Fund (HEA 1669) Financial Incentives Loans, Rebates, Taxes, Bonds, Etc. Systems that generate energy using solar, wind, hydropower or geothermal resources including geothermal heat pumps are exempt from property tax; provides tax incentives to encourage capturing methane gas from Indiana landfills and utilizing it to generate electricity; Indiana has granted companies $190 million in tax-exempt certificates to upgrade and construct low emission facilities The Alternative Power and Energy (APE) Grant Program provides a matching fund grant to non-profit, public and commercial entities to support the purchase and installation of alternative energy systems that offset fossil fuel usage and encourage public education (provided over $700,000 for the purchase of alternative energy systems) The Indiana Office of Energy Development (OED) offered $879,000 in grants to support the expansion of alternative energy technology; the Alternative Power and Energy Grant Program (APE) projects are to be fully constructed and operating by May 31, 2010 The actions taken from July 2008-May 2010 are listed in bold and blue, below the information included in the original 2008 report. 54 Clean and Secure State Energy Actions

4 Category Actions Being Taken Alternative Fuels & Vehicles Consumption Targets/Renewable Fuel Standards Infrastructure Enhancement and Evaluation Participant in Midwest Energy Security and Climate Stewardship Platform Plan; establishes shared goals for the Midwest region: produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012; increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025; reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025 Maintains 102 E85 and 13 B20 biofuel pumps along the I-65 corridor as part of the U.S. DOE s Clean Cities Program Established a Biofuels Corridor, open as of October 2008, runs from Lake Michigan to the Gulf of Mexico AFV manufacturers are eligible for tax credits of up to 15% of the qualified investment for which the credit is claimed; offers a production tax credit of $0.125 per gallon of ethanol produced; offers a biodiesel production tax credit of credit of $1.00 per gallon Grants of up to $5,000 are available toward the purchase of new E85 refueling equipment or the conversion of existing equipment to allow for E85 refueling Financial Incentives Loans, Rebates, Taxes, Bonds, Etc. An E85 retailer is entitled to a credit against the state gross retail tax in the amount of $0.18 per gallon of E85 sold Municipal corporations or special taxing districts are entitled to a monthly E85 incentive payment if at least 75% of the motor fuel purchased Biodiesel blenders located in Indiana are entitled to a credit of $0.02 per gallon A fuel retailer that distributes blended biodiesel for retail purposes is entitled to a credit of $0.01 per gallon Lead By Example Appliance/Equipment Efficiency Building Efficiency Green Power Purchasing Five new state buildings have been constructed to LEED energy efficient certification standards An Executive Order signed in June 2008 stated that all new state building construction and renovations should be completed with the highest energy efficiency that is cost-effective, based on life-cycle cost analyses; locallysourced and historic materials were to be given additional value in the analyses; the building construction standards are to be based on nationally recognized standards such as ENERGY STAR, LEED, Green Globes or equivalent State buildings located in Marion County, which encompasses Indianapolis, will purchase 10% of their energy from renewable energy resources by 2010; the state Strategic Energy Plan released in 2006 calls for increasing the percentage to 25% by 2025; the Indiana Department of Corrections is creating a wind-powered generator to help power a prison facility Provides a price preference of 10% for the purchase of qualifying fuels; a state governmental body or educational institution must purchase bio-based products whenever possible; the state fleet includes 1,196 E85 Flex-Fuel vehicles and 1,889 diesel vehicles capable of using biodiesel; Indiana is leading the development of a $1.3 million development of a Bio-fuels corridor from Gary, IN to Mobile, AL Allotted $10.1 million to convert hundreds of state and city vehicles to run on alternative fuels; the Indiana DOT will convert many light-duty trucks to run on bi-fuel propane and dump trucks to run on compressed natural gas; state educational institutions are required to purchase E85 blends and biodiesels; the state educational institutions are now eligible for the E85 fueling station grant program The actions taken from July 2008-May 2010 are listed in bold and blue, below the information included in the original 2008 report UPDATE 55

5 Category Alternative Fuel and Vehicle Fleets Actions Being Taken Provides a price preference of 10% for the purchase of qualifying fuels; a state governmental body or educational institution must purchase bio-based products whenever possible; the state fleet includes 1,196 E85 Flex-Fuel vehicles and 1,889 diesel vehicles capable of using biodiesel; Indiana is leading the development of a $1.3 million development of a Bio-fuels corridor from Gary, IN to Mobile, AL Allotted $10.1 million to convert hundreds of state and city vehicles to run on alternative fuels (HEA 1554) The Indiana DOT will convert many light-duty trucks to run on bi-fuel propane and dump trucks to run on compressed natural gas State educational institutions are required to purchase E85 blends and biodiesels The state educational institutions are now eligible for the E85 fueling station grant program GHG Emissions GHG Policies Midwestern Regional Greenhouse Gas Reduction Accord observer Clean Energy RD&D Partnerships, Grants, Awards, and Dedicated Funding Requires that the Center for Coal Technology Research investigate the use of coal bed methane as a renewable energy source and in the production of renewable and alternative fuels; the Energy Center at Purdue University is working on developing coal into combustible gases and liquids; the Indiana Twenty-First Century Research and Technology Fund provides grants and loans to support proposals for economic development in areas including alternative fuel technologies and fuel efficient vehicle production Biomass and algae production systems required to be included in utility forecasting Green Economic Development Task Force, Workforce Development, Incentives, Analysis, Etc. Participant in the Platform for Creating and Retaining Midwestern Jobs in the New Energy Economy Other Environmental Stewardship Program CLEAN Communities Program The Indiana Comprehensive Local Environmental Action Network (CLEAN) Community Challenge is a voluntary recognition program for local Indiana government; CLEAN helps communities take steps to plan, develop, and implement a quality of life plan; this plan includes gathering input and support from the community and local businesses The Indiana Comprehensive Local Environmental Action Network (CLEAN) Community Challenge is a voluntary recognition program for local Indiana government; CLEAN helps communities take steps to plan, develop, and implement a quality of life plan; this plan includes gathering input and support from the community and local businesses The actions taken from July 2008-May 2010 are listed in bold and blue, below the information included in the original 2008 report. 56 Clean and Secure State Energy Actions

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