MIDWESTERN ENERGY INFRASTRUCTURE ACCORD

Transcription

1 MIDWESTERN ENERGY INFRASTRUCTURE ACCORD 2009

2 MIDWESTERN ENERGY INFRASTRUCTURE ACCORD We cmmit t develping a rbust energy infrastructure t psitin the Midwest as America s leader in fstering energy security, reducing greenhuse gas emissins, and spurring jbs and investment in lw-carbn energy develpment and technlgy manufacturing, and we have the fllwing pririty areas fr infrastructure develpment: Expansin f electric transmissin capacity in supprt f renewable energy develpment and distributed generatin; Adptin f smart grid technlgies and capabilities; Cmmercial build-ut f carbn capture and strage (CCS); and Deplyment f refueling systems fr bifuels and ther advanced lw-carbn transprtatin fuels. 2

3 Electric Transmissin Capacity Expansin WHEREAS, electric transmissin expansin is essential fr the Midwest t meet the Midwestern Gvernrs Assciatin (MGA) reginal renewable electricity targets f 10 percent by 2015, 20 percent by 2020 and 30 percent by 2030; and WHEREAS, the Reginal Generatr Outlet Study (RGOS) Phase I and II are currently being undertaken by the Midwest Independent System Operatr ( Midwest ISO) in cllabratin with the MGA, the Suthwest Pwer Pl (SPP) and ther stakehlders t shw what upgrades and expansins f the regin s transmissin system are necessary t meet thse MGA targets; and the Eastern Intercnnectin Planning Cllabrative Transmissin Study is being dne in cnjunctin with PJM Intercnnectin, the Midwest ISO and ther eastern reginal transmissin peratrs t utline transmissin needed fr the eastern planning regin; and WHEREAS, the RGOS Phase I and II wrk grups, in cllabratin with MGA states, are identifying highcapacity Renewable Energy Znes (REZ) in each MGA state fr renewable energy develpment; and WHEREAS, the five-state Upper Midwest Transmissin Develpment Initiative, the Organizatin f Midwest ISO States Cst Allcatin and Reginal Planning (CARP) wrk grup and the Midwest ISO s Reginal Expansin Criteria and Benefits (RECB) III cst-allcatin task frce are wrking with the MGA t develp a bradly supprted prpsal fr equitable apprtinment f the csts f reginal transmissin imprvements, and recmmendatins frm these three grups are frthcming; NOW, THEREFORE, BE IT: RESOLVED, that we appreciate the nging cperatin between the MGA, Midwest ISO and SPP in undertaking reginal transmissin analyses, and the Eastern Intercnnectin Transmissin Planning Cllabrative dne in cnjunctin with PJM, Midwest ISO, and thers. We supprt the current Phase I and Phase II f the Midwest ISO s RGOS study that will utline transmissin investments needed t meet the MGA gal f btaining 10 percent f electricity cnsumed in the regin frm renewable surces by 2015, as well as prviding indicative results fr transmissin expansin needed t meet the MGA s renewable electricity targets f 20 percent by 2020 and 30 percent by 2030; and be it further RESOLVED, that we recgnize that the designatin f high-capacity Renewable Energy Znes in each state thrugh the Midwest ISO s RGOS Phase I and II studies will help reach the abve renewable electricity gals; and be it further 3

4 RESOLVED, that we supprt nging effrts by the MGA, Midwest ISO, SPP, utility regulatrs, utilities, transmissin wners and peratrs, and ther stakehlders t develp a cst-allcatin frmula that fairly apprtins the csts f new transmissin investments amng generatrs, transmissin wners and peratrs, and utility custmers thrughut ur regin; and be it further RESOLVED, that we urge the abve-mentined parties t prpse a cst-allcatin frmula by December 2009 fr Midwest ISO RECB III task frce cnsideratin and that, upn Midwest ISO review, and in cnsultatin with the SPP, the MGA can see a final decisin by January Adptin f Smart Grid Technlgies and Capabilities WHEREAS, smart grid technlgies have the ptential t enhance reliability, custmer service, and grid integratin f renewable energy; reduce peak lad and cnsumers energy csts; and enable efficient use f existing transmissin and distributin thrugh imprved distributed energy strage and adptin f plug-in hybrid electric vehicle technlgies; and WHEREAS, greater understanding is needed f the effects that smart grid technlgies will have n reducing cnsumers energy use and n rates fr lwer-incme cnsumers; and WHEREAS, the federal gvernment has annunced smart grid initiatives and funding pprtunities, smart grid pilt prgrams are nging in several Midwestern states, and the regin can benefit by accelerating adptin f effective smart grid technlgies by investr-wned, municipal and cperative utilities; NOW, THEREFORE, BE IT: RESOLVED, that we will establish by December 2009 a reginal cllabrative thrugh the MGA invlving relevant state fficials, utility, and ther stakehlders t: Develp a standard, Midwest-wide understanding f a smart grid; Determine, based n studies and the results f new and existing Midwestern pilt prjects, the effect f smart grid technlgies n emissins reductins and cnsumers energy cnsumptin; Recmmend effective means t prepare fr the integratin f electric vehicle technlgies int the smart grid, including apprpriate rate designs and the means t enable custmerwned electric vehicles t tre and supply pwer t the grid; Recmmend ptins t address the specific needs f lwer-incme cnsumers; 4

5 Define reginal prtcls fr measurement and verificatin f smart grid pilt prjects; Recmmend hw t maximize energy efficiency and emissins reductins frm smart grid prgrams; and Cnvene a Midwestern smart grid event that wuld present results f the abve studies and final recmmendatins frm the cllabrative; and be it further RESOLVED, that the smart grid cllabrative will reprt t the MGA with final recmmendatins by December Cmmercial Build-Out f Carbn Capture and Strage WHEREAS, carbn capture and strage (CCS) represents a key cmpnent f the brader prtfli f ptins fr reducing greenhuse gas emissins, and the Midwest has extensive il and gas and deep saline frmatins with significant ptential fr gelgic strage f CO 2 ; and WHEREAS, sme U.S. states have existing authrities and a track recrd f successfully managing the transprt, injectin and undergrund strage f CO 2 and ther gases, and further state and prvincial leadership will help infrm the develpment f an effective CCS regulatry framewrk at the federal level; and WHEREAS, the MGA has established reginal gals fr cmmercial deplyment f key advanced cal technlgies with CCS between 2012 and 2015 and fr incrpratin f CCS int all new calbased energy facilities by 2020; and WHEREAS, enhanced il recvery (EOR) using CO 2 captured frm cal gasificatin, natural-gas prcessing, and ethanl and fertilizer plants has been prven t be a fully cmmercial, safe and effective prcess in the Midwest and arund the wrld fr extending the prductin f il and gas fields and fr enabling lng-term gelgic strage f CO 2 ; and WHEREAS, cmmercial-scale strage f CO 2 in deep saline frmatins has been demnstrated successfully in the Nrth Sea, and prmising smaller-scale strage tests are underway in the Midwest; and WHEREAS, analysis undertaken fr the MGA suggests the ptential t use 530 millin metric tns f captured CO 2 t prduce 2.2 billin barrels f therwise unrecverable dmestic il in the Midwest, while achieving a significant net CO 2 reductin ver imprted il; and WHEREAS, CO 2 EOR can prvide a near-term revenue stream fr CO 2 capture and transprt, thus helping finance the build-ut f a pipeline infrastructure needed fr future lng-term strage f CO 2 in higher-capacity deep saline frmatins; 5

6 NOW, THEREFORE, BE IT: RESOLVED, that we will strive t secure the siting and permitting f at least ne multi-jurisdictinal CO 2 pipeline by 2012, cmmercial scale CO 2 capture at key demnstratin prjects between 2012 and 2015, and incrpratin f CCS int all new cal-based energy facilities by 2020; and be it further RESOLVED, that we applaud the imprtant prgress made by several MGA jurisdictins tward meeting the critical near-term MGA gal f achieving by 2010 a cnsistent state/prvincial statutry and regulatry framewrk acrss the Midwest fr CO 2 transprt, injectin, strage, liability and lng-term site stewardship; and be it further RESOLVED, that we recgnize the need fr a phased cmmercial CCS-deplyment strategy: Thrugh 2020, fcused primarily n CO 2 EOR and assessment f ptential future CO 2 strage in saline frmatins, and including: A CO 2 trunk pipeline frm the Midwest t the Gulf Cast serving a cluster f cmmercial capture prjects in Illinis, Indiana and Ohi; and Individual cmmercial capture prjects and assciated pipeline infrastructure in Kansas, Michigan, Missuri and Nrth Dakta; After 2020, expanding t strage in deep saline frmatins and linking all MGA jurisdictins int a cmmn CO 2 pipeline netwrk that prvides cmmercial facilities in Iwa, Minnesta and Wiscnsin access t strage pprtunities nt available within their state bundaries; and be it further RESOLVED, that we will appint thrugh the MGA, by December 2009, a reginal CCS task frce cnsisting f fficials frm relevant agencies, with participatin and input frm stakehlders, and tasked with the fllwing respnsibilities: Review emerging CCS legislatin in MGA jurisdictins and the MGA Legal and Regulatry Inventry fr Carbn Capture and Strage & Analgues and the MGA Tlkit fr Carbn Capture and Strage: Statutry and Regulatry Issues and implement immediate steps needed t accmplish the develpment and harmnizatin f state/prvincial CCS statutry and regulatry plicies by 2010; Review and infrm the develpment f legislatin and regulatins emerging frm the federal level, ensuring that federal prgrams d nt preempt states that chse t develp cmprehensive CCS regulatry prgrams; Review and implement, as apprpriate, recmmended actins frm the MGA Renewable Electricity, Advanced Cal and CCS Advisry Grup, including: 6

7 State incentives fr CCS deplyment t cmplement existing and prpsed federal incentives; Establishment f publicly regulated state and/r gelgic basin-wide CO 2 sequestratin utilities t prvide cmmercial energy and ther facilities with a cmprehensive and predictable CO 2 strage slutin; and Preliminary siting f Gulf Cast and ther CO 2 trunk lines t plan the build-ut f a reginal pipeline netwrk; and be it further RESOLVED, that the task frce present final recmmendatins t the MGA by June 2010, with legislative recmmendatins regarding establishment f a CCS regulatry framewrk t be finalized sner as necessary. Deplyment f Refueling Systems fr Bifuels and Other Advanced Lw- Carbn Transprtatin Fuels WHEREAS, the Midwest has the greatest ptential f any regin in America fr bth the prductin f bifuels and the prductin f renewable and lw-carbn electricity and hydrgen t pwer the future fleet f plug-in hybrid and fuel-cell electric vehicles; and WHEREAS, the MGA has established reginal gals that bifuel blends and ther lw-carbn advanced transprtatin fuels be available at 15 percent f retail fueling statins by 2015, 20 percent by 2020 and 33 percent by 2025, and that at least 50 percent f transprtatin energy cnsumed in the regin will be supplied by reginally prduced bifuels and ther lw-carbn advanced transprtatin fuels by 2025; and WHEREAS, widespread availability f the retail and fleet refueling infrastructure prvides a necessary cmplement t federal and state incentives fr the prductin f bifuels and ther advanced lw-carbn transprtatin fuels; NOW, THEREFORE, BE IT: RESOLVED, that we will jintly launch a reginal initiative t accelerate the develpment f a refueling infrastructure fr E85, bidiesel, ther advanced bifuels, blender pumps, hydrgen refueling, and electric vehicle recharging; and be it further 7

8 RESOLVED, that the MGA will cnvene an inter-agency wrking grup cnsisting f fficials frm relevant agencies, tgether with participatin and input frm stakehlders, including refiners, distributrs and marketers f fuels, t cnsider and implement, as apprpriate, recmmended actins frm the MGA Biecnmy and Transprtatin Advisry Grup, including: Creatin f a clean-fuel retailers prgram that includes mechanisms t expand retail distributin f bifuels and advanced lw-carbn fuels thrughut the regin, such as: Financial incentives fr infrastructure develpment and deplyment; Public recgnitin and incentive payments fr retail and whlesale utlets fr attainment f fuel sales benchmarks; and Public educatin effrts that include prviding clear definitins f what cnstitutes qualifying fuels and vehicles, mapping f qualifying refueling statins in the Midwest, and publicly spnsred branding with a Clean Fuel lg fr qualifying retailers and vehicles; and Incentives and ther plicies t increase the quantity f bifuels and ther advanced lwcarbn transprtatin fuels used in state/prvincial fleet vehicles; and be it further RESOLVED, that the wrking grup be cnvened by January 2010 and reprt back t the MGA with final recmmendatins by December Crdinatin and Implementatin WHEREAS, successful lnger-term implementatin f the abve-mentined initiatives and related MGA plicy recmmendatins will require sustained attentin frm, and crdinatin amng, relevant state and prvincial fficials with nging respnsibility fr verall plicy and prgram implementatin; NOW, THEREFORE, BE IT: RESOLVED, that we invite reginal assciatins representing utility regulatry cmmissins, energy ffices, departments f agriculture, envirnmental regulatry agencies, ther executive branch agencies as apprpriate, and legislative assemblies t wrk with the MGA t rganize a reginal meeting f state and prvincial fficials and leaders in 2010 t identify ways t encurage interjurisdictinal and inter-agency cperatin and help crdinate the implementatin f the abve recmmendatins and initiatives, tgether with recmmendatins in the MGA s Platfrm fr Creating and Retaining Midwestern Jbs in the New Energy Ecnmy and the MGA s Energy Security and Climate Stewardship Radmap: Advisry Grup Recmmendatins. DONE, this 7th day f Octber, 2009, in Detrit, Michigan. 8