Energy issues in Maine's 2019 legislative requests

With the 129th Maine Legislature convened for its first regular session, the Office of the Revisor of Statutes has released a list of the titles of proposed legislation timely submitted by legislators. While the text of most of these legislative requests has not yet been publicly released, the preliminary list of working titles of over 2,000 precloture legislator bills suggests the scope of issues that will come before the Maine State Legislature in 2019. On energy matters, themes emerging from this list include reforms to Maine's renewable portfolio standard; efforts to reduce greenhouse gas emissions; incentives for microgrids, renewable energy and electric vehicles; and changes to energy efficiency standards for most newly constructed buildings.

Based on the working titles and legislative committee assignments, a number of bills will propose changes to Maine's renewable portfolio standard or other laws regarding renewable energy. Among others, these bills could include:

• LR 26, An Act To Update Maine's Renewable Energy Policy (Spkr. Gideon of Freeport)
• LR 82, An Act To Update the State's Renewable Energy Goals (Rep. Berry of Bowdoinham)
• LR 119, Resolve, To Establish a Working Group To Develop a Stand-alone Renewable Energy Certificate Program for the Biomass Industry (Sen. Carpenter of Aroostook)
• LR 403, An Act To Diversify Maine's Energy Portfolio with Renewable Energy (Rep. Hubbell of Bar Harbor)
• LR 845, An Act To Encourage the Use of Renewable Energy (Sen. Lawrence of York)
• LR 872, An Act To Extend to December 31, 2020 the Deadline for Community-based Renewable Energy Projects To Become Operational (Rep. Higgins of Dover-Foxcroft)
• LR 1034, An Act To Establish a Green New Deal for Maine (Rep. Maxmin of Nobleboro)
• LR 1123, An Act To Repeal the 100 Megawatt Limit on Power Generation (Rep. Hanley of Pittston)
• LR 1405, An Act To Clarify the Definition of "Renewable Capacity Resource" (Rep. Babine of Scarborough)
• LR 1431, An Act To Study Transmission Solutions To Enable Renewable Energy Investment in the State (Rep. Berry of Bowdoinham)
• LR 1470, An Act To Modernize Maine's Renewable Portfolio Standard (Sen. Lawrence of York)
• LR 1558, An Act To Increase Maine-based Energy Sources (Pres. Jackson of Aroostook)
• LR 1616, An Act To Reform Maine's Renewable Portfolio Standard (Sen. Vitelli of Sagadahoc)
• LR 1803, An Act To Benefit Maine Consumers, Businesses and Communities through Expanded Renewable Energy (Sen. Dow of Lincoln)

Other bill titles suggest possible proposed changes to other aspects of Maine's renewable policy, such as Maine's version of net metering or rules governing community solar projects:

• LR 15, An Act To Eliminate Gross Metering (Rep. Berry of Bowdoinham)
• LR 299, An Act To Replace Net Energy Billing with a Market-based Mechanism (Rep. O'Connor of Berwick)
• LR 404, An Act To Protect Ratepayers from Gross-metering Costs (Rep. Hubbell of Bar Harbor)
• LR 535, An Act To Eliminate the Cap on Solar Energy Generation Farms (Sen. Miramant of Knox)
• LR 536, An Act To Require Transmission and Distribution Utilities To Purchase Electricity from Renewable Resources at Certain Prices (Sen. Miramant of Knox) 
• LR 1259, An Act To Eliminate Restrictions on Community Solar Projects (Rep. Higgins of Dover-Foxcroft)
• LR 1621, An Act To Expand Community-based Solar Energy in Maine (Sen. Sanborn of Cumberland)

Several more bill titles appear designed to expand opportunities for microgrids or other local private sales of electricity:

• LR 18, An Act To Allow Microgrids That Are in the Public Interest (Rep. Devin of Newcastle)
• LR 213, An Act To Authorize Businesses Located Adjacent to Electric Power Generators To Obtain Power Directly (Rep. Campbell of Orrington)
• LR 1464, An Act To Allow the Direct Sale of Electricity (Sen. Woodsome of York)

Beyond a direct focus on renewable energy, several bill titles address Maine's participation in the Regional Greenhouse Gas Initiative or efforts to reduce fossil fuel use:

• LR 254, An Act To Develop a State Energy Plan To Provide a Pathway to a Fossil-free Energy Portfolio (Rep. Devin of Newcastle)
• LR 1493, An Act To Ensure the Regional Greenhouse Gas Initiative Trust Fund Continues To Promote Energy Efficiency and Benefit Maine Ratepayers (Rep. Wadsworth of Hiram)

At least three bill titles call for increased incentives for electric vehicles:

• LR 862, An Act To Provide Purchase Rebates for Battery Electric Vehicles and Fuel Cell Electric Vehicles (Rep. Ingwersen of Arundel)
• LR 1380, An Act To Encourage Municipalities, State Agencies, Colleges and Universities To Adopt Electric Vehicles (Rep. Ingwersen of Arundel)
• LR 1687, An Act To Create an Electric Vehicle Tax Credit (Sen. Chenette of York) 

At least five bill titles address the Maine Uniform Building and Energy Code:

• LR 561, An Act To Amend the Maine Uniform Building and Energy Code (Rep. Kessler of South Portland)
• LR 537, An Act To Strengthen the Maine Uniform Building and Energy Code (Rep. Caiazzo of Scarborough)
• LR 619, An Act Regarding the Maine Uniform Building and Energy Code (Rep. Ingwersen of Arundel)
• LR 866, An Act To Amend the Laws Governing the Maine Uniform Building and Energy Code (Rep. Rykerson of Kittery)
• LR 1743, An Act Regarding the Application and Administration of the Maine Uniform Building and Energy Code (Rep. Fecteau of Biddeford) 

Experience suggests that most of these legislative requests will result in printed bills, and will be given public hearings before legislative committees before votes by the House and Senate.

NECPUC 2018 energy symposium

New England utility regulators have gathered in Maine for the 71st annual symposium of the New England Conference of Public Utilities Commissioners.

NECPUC is a non-profit corporation which provides regional regulatory assistance on matters of common concern to public utilities commissions of the six New England states. Its board of directors is composed of public utilities commissioners from the six New England states. NECPUC meets regularly throughout the year and sponsors an annual symposium on regulatory issues.

NECPUC holds its 71st annual symposium in Cape Neddick, Maine, from May 20-23, 2018. The agenda for the 2018 NECPUC event includes programs focused on topics affecting the New England utility landscape. For the energy sector, these include a plenary session on wholesale markets and how consumers are impacted by "reliability-centric market challenges," as well as a panel on advancing electric vehicle infrastructure in New England. Another set of panels focuses on how to analyze, regulate, and manage risks of high-impact, low-frequency events like cybersecurity attacks or extreme weather. Other panels cover water, telecommunications, and natural gas topics.

Speakers scheduled to appear include Maine Governor Paul LePage and Federal Energy Regulatory Commission Commissioner Robert Powelson, as well as commissioners from numerous state public utilities commissions.

NH electric vehicle charging stations and utility status

As electric vehicles become increasingly popular, New Hampshire utility regulators have opened an investigation into the legal and regulatory issues implicated by the potential resale of electricity by electric vehicle charging stations.

On November 20, 2015, New Hampshire utility Liberty Utilities (Granite State Electric) Corp. d/b/a Liberty Utilities (Liberty) filed a tariff amendment to permit the resale of electricity for EVC stations, which the Public Utilities Commission docketed as Docket No. DE 15-489.  In a supporting technical statement, Liberty noted tariff language that currently prohibits the resale of electricity by most customers.  In Liberty's view, that prohibition forces owners and administrators of charging stations to charge in other manners, such as an hourly flat rate. 

On December 18, the Commission took two actions relating to the regulation of electric vehicle charging stations.  First, the Commission issued an Order of Notice announcing an investigation into the legal and regulatory issues implicated by the resale of electricity by electric vehicle charging stations.  The Commission made participation mandatory for the state's electric distribution utilities, and directed Commission staff to file a report by February 26, 2016, setting forth its conclusions and recommendations with respect to the sale of electricity to, and the resale of electricity by, EVC stations.  The Commission docketed this investigation as IR15-510.

Liberty pointed to "eighteen states that have adopted, through regulatory changes or legislation, exceptions for the resale of electricity for electric vehicle charging stations, including Maine and Massachusetts."  For example, a 2015 Maine law exempts an electric vehicle charging station provider from being considered a competitive electricity provider, and allows charging station providers to install an electrical submeter and to charge a submeter user only for kilowatt hours used,

Second, the Commission issued Order No. 25,852 in the Liberty docket on December 18, 2015, suspending the Liberty tariff amendment to permit Commission Staff (Staff) to complete the IR15-510 investigation.

Pursuant to the December 18 Order of Notice, legal memoranda are due from all electric distribution utilities and other interested persons on or before January 22, 2016.  Commission staff are scheduled to hold a stakeholder technical session on February 9, 2016. 

North America's largest battery energy storage online

A California public utility has brought the largest battery energy storage in North America online.  Funded partially by federal stimulus funds, Southern California Edison's Tehachapi Wind Energy Storage Project is designed to demonstrate the effectiveness of large-scale battery storage systems.

Southern California Edison Company is the largest electricity supply company in Southern California.  As part of the U.S. Department of Energy's implementation of the American Recovery and Reinvestment Act of 2009, the utility won funding to develop a major battery energy storage system (or BESS).  The Tehachapi Wind Energy Storage project consists of an array of lithium-ion batteries capable of storing 32 megawatt-hours, deliverable as an 8 megawatt stream of energy for 4 hours.  The LG Chem batteries rely on the same lithium-ion cells installed in battery packs for General Motors’ Chevrolet Volt electric vehicle, and feature 608,832 individual battery cells arrayed in 10,872 battery modules and 604 battery racks.  Along with two 4MW/4.5MVA smart inverters, the project will be housed in a 6,300 square foot facility sited at SCE's existing Monolith substation.

Of the project's $49,956,528 total budget, half will be paid for by SCE, while federal funds will cover $24,978,264.  In return, the project will examine whether and how the battery energy storage system improves grid performance and helps integrate wind and other large-scale variable energy resourced generation.  Project performance will be measured by 13 specific operational uses, most of which either shift other generation resources to meet peak load and other electricity system needs with stored electricity, or resolve grid stability and capacity concerns that result from the interconnection of variable energy resources.  These uses include: providing voltage support and grid stabilization; decreasing transmission losses; diminishing congestion; increasing system reliability; deferring transmission investment; optimizing renewable-related transmission; providing system capacity and resources adequacy; integrating renewable energy (smoothing); shifting wind generation output; frequency regulation; spin/non-spin replacement reserves; ramp management; and energy price arbitrage.  In addition, the project will demonstrate how lithium-ion battery storage can provide nearly instantaneous back-up capacity, minimizing the need for fossil fuel-powered back-up generation.

Between technological advances and a series of recent policy decisions, battery energy storage could be poised for rapid growth.  For example, in 2011 the Federal Energy Regulatory Commission issued Order No. 755, requiring the grid operators in organized markets to compensate battery energy storage systems and other fast-ramping frequency regulation resources based on the actual service they provide.  Last year's Order No. 784 required public utilities to take into account the speed and accuracy of regulation resources such as batteries.  Meanwhile, batteries are hoped to help balance into the grid large amounts of energy from intermittent renewable resources such as solar and wind projects.

After two years, the Tehachapi Wind Energy Storage Project will have completed its initial demonstration run.  Will the project lead to greater deployment of battery energy storage systems in the U.S.?

Vermont, Quebec announce electric vehicle corridor

Will a newly announced electric vehicle charging corridor in Vermont and Quebec lead to more electric vehicles in the region?

Solar panels on the roof of the Farm Barn at Shelburne Farms, in Shelburne, Vermont.

Electric vehicles are receiving increased interest, as drivers and policymakers look for ways to reduce the use of gasoline in the transportation sector.  For pure plug-in cars, the vehicle's range and the logistics of recharging the vehicle's battery are critically important.  Electric vehicle manufacturers try to address range anxiety through technological advances, while policymakers focus on ensuring that drivers have access to conveniently-spaced recharging infrastructure.

Today Vermont Governor Peter Shumlin and Quebec Premier Pauline Marois unveiled the first sites of the Vermont-Québec Electric Charging Corridor.  The 138-mile corridor will eventually connect Burlington, Vermont to Montreal, Quebec, using existing highways including I-89 and Canadian routes A-10, 104 and 133.  The plan calls for over the development of over 20 charging stations along the way.  Some stations are already in place, including charging stations in Sharon, Montpelier, South Burlington and Waterbury.

How quickly charging stations can recharge batteries depends on the technology used.  According to the U.S. Department of Energy's Plug-In Electric Vehicle Handbook, light-duty vehicle charging stations can be broken into three categories.  Level 1 stations offer 2 to 5 miles of added driving range per hour of charging.  Level 2 stations provide 10 to 20 miles of added range per hour of charge.  Much more expensive Level 3 or "DC fast charging" stations can add 60 to 80 miles of range in 20 minutes of charging.

Level 2 stations are proposed for the Vermont-Quebec corridor.  These stations will allow electric vehicle drivers to top off their batteries at the stations, and possibly to fully recharge their batteries overnight.  While the charge rate is still significantly slower than refilling a conventional vehicle's tank with gasoline, Vermont and Quebec hope that the cost and environmental benefits of electric vehicles will drive their greater adoption.

Energy implications of fiscal cliff deal

Congress enacted the American Taxpayer Relief Act of 2012 on January 1, 2013.  The bill's primary purpose was to stave off the so-called fiscal cliff by extending tax cuts and unemployment benefits.  The bill also included a variety of energy-related provisions, including extensions of tax credits for producers of biofuels and renewable electricity.  These policies will shape business activity in 2013.

The most prominent energy provisions in the act extend and modify incentives for producing renewable electricity.  One extended the production tax credit for wind.  The production tax credit is worth 2.2 cents per kilowatt hour of electricity produced for a 10-year period from a wind facility.  While the production tax credit had previously been available only to wind facilities placed-in-service by the end of 2012, the new legislation extends the credit to any facility that begins construction before the end of 2013 to claim the 10-year credit.  This provision is estimated to have a net of cost $12.109 billion over ten years but was seen by some as essential to continued investment in renewable energy facilities.  A parallel provision extended the investment tax credit in lieu of production tax credit, which gives a tax credit equal to 30 percent of eligible investment in renewable facilities in the year that the facility is placed-in-service. Facilities must begin construction by the end of 2013.  This provision is estimated to cost $135 million over ten years, suggesting Congress thinks the investment tax credit will be applied to about $450,000,000 in qualified investments.

Other provisions extended credits for energy-efficient improvements to existing homes, plug-in electric vehicles and alternative vehicle refueling property, producing cellulosic bifuel, biodiesel and renewable diesel.

The extension of the renewable electricity credits will stimulate growth in an industry that has suffered from uncertainty over their renewal.  Their previously-scheduled 2012 end led to a rush of construction to enable projects to qualify for the tax credits, but fewer new projects were announced in 2012 as they appeared unable to be placed in service before the deadline.  The credits' renewal will likely lead to a similar scramble to complete at least some construction financing and begin construction in 2013.  This in turn may mean busy caseloads for state environmental and energy permitting authorities, as developers pursue permits to enable construction to begin this year.  Projects able to start construction in 2013 will be eligible for either the production tax credit or the investment tax credit, even if construction takes several years.  This feature may help offshore wind and other projects with long construction times, if they can get the permits to start work this year.

Electric vehicle pilot program proposed in Maine

A pilot program proposed by a Maine utility could lead to more electric vehicles on the road.  Central Maine Power Co. has asked the Maine Public Utilities Commission to approve its Electric Vehicle Pilot Project No. 2, which includes a limited number of grants to help customers purchase or lease an electric vehicle. 

As described in CMP's June 21 filing with the Commission, the electric vehicle pilot project consists of grant funding, CMP promotion of electric vehicles, and the collection of data on vehicle usage.  CMP envisions issuing cash grants of up to $15,000 each to ten selected organizations located in CMP’s service territory.  These organizations, selected through a public solicitation process, could use these grants to help them purchase or lease ten electric vehicles.  Each organization can also apply a portion of the grant toward the purchase and installation of a Level 2 (208V or 240V) rapid charging station, if it so chooses.

The project arises out of a requirement approved by the Commission as part of the settlement of a 2008 case over CMP's Maine Power Reliability Program, or MPRP.  As part of a deal allowing CMP to invest $1.4 billion in transmission infrastructure in its territory, the Commission required CMP to develop a process for pilot projects to facilitate the increased use of hybrid and electric cars in Maine, and to promote the storage of renewable and other energy generated off-peak to replace fuels with greater climate impacts.  Using off-peak electricity to power transportation could both save money for consumers and allow the utility to make more full use of its transmission and distribution grid.

Specifically, the stipulation required CMP to bring forward at least three pilot projects to facilitate the increased use of hybrid and electric cars by the end of 2012.  CMP's first pilot project entails integrating a limited number of electric vehicles into CMP's fleet.  This project, which is currently being implemented, is designed to give the utility first-hand experience with EVs, in a manner that minimizes costs and risks.

If approved, CMP's second project would introduce ten vehicles into the broader community.  The utility has said that its objective is to build awareness and lessen consumers' concerns by getting more of the new EV models into the public's hands.  Its ultimate stated goal is to create interest and "buzz" about EVs, particularly among innovative early adopters who would be most likely to purchase an EV.

A third phase is still under development, but CMP has said it will propose reducing barriers to EV use through education, participate in the development of public charging infrastructure, and assess a lower off-peak rate for EV charging.

The Maine Public Utilities Commission is reviewing CMP's proposal and is expected to issue its decision later this year.

May 16, 2011 - DOE loan guarantee program ramping down

The U.S. Department of Energy's loan guarantee program for renewable energy is preparing to run out of funding and shut down.  Last month, I noted how the Department's "1705" loan program uses loan guarantees to help energy projects get lower-cost financing.  Through the 1705 program, created and funded through the 2009 federal stimulus act, the Department committed $11 billion to support 19 projects ranging from nuclear power to solar, wind to transmission, biofuels to energy efficiency.  Continued funding for the loan guarantee program for 2011 was in doubt during the recent wrangling over the federal budget, but survived the cutting -- through September 30, 2011.

Now, DOE is preparing to close out the 1705 program.  With stimulus act funding expiring September 30, 2011, DOE is pushing to get the funding out the door -- and to turn away applicants who are not yet far enough along in the process.  Because project construction must also commence by September 30, DOE is screening out applicants it deems unlikely to meet that deadline.  While DOE's other loan programs -- the 1703 program for certain clean technologies and the Advanced Technology Vehicle Manufacturing program for fuel-efficient transportation -- will remain in operation, the apparent end of the 1705 program will close the book on an innovative federal incentive for renewable energy development.

April 14, 2011 - California establishes 33% renewable energy standard

California established a 33% renewable energy standard this week when Governor Jerry Brown signed Senate Bill 2X.  That bill creates a legislative mandate that California utilities and other electric service providers must source 33% of the electricity they sell to retail consumers from renewable resources.  The Governor's signing ceremony followed the bill's passage by each chamber of California's legislature with a majority vote - 26-11 in the Senate and 55-19 in the Assembly.

Electric vehicle charging station, Burlington, Vermont.

California's new 33% RPS law is not its first renewable electricity standard.  The California Legislature had previously enacted an RPS that required utilities to source 20% of their electricity from renewables. In fact, California has already had a 33% RPS.  After legislation increasing the renewable mandate failed to pass at the end of the last decade, in September 2009 Governor Schwarzenegger raised the RPS to 33% by executive order.

SB 2X also relieves some jurisdictional uncertainty over the RPS.  California's original legislative 20% RPS was administered by the California Public Utilities Commission, but Governor Schwarzenegger's  Executive Order gave the California Air Resources Board authority over the additional RPS mandate beyond 20%.  SB 2X restores the CPUC's authority over the RPS, giving it a mandate to develop rules implementing the shift.

December 17, 2010 - $184 million in grants for vehicle efficiency R&D

Improving vehicle energy efficiency is a key component of our federal energy strategy.  Of particular interest to businesses developing transportation efficiency technology, yesterday Secretary Chu announced a new funding opportunity.  DOE is putting up $184 million in grant funding for R&D into a variety of vehicle energy efficiency topics.



This vehicle powered by BioDiesel.

 The Funding Opportunity Announcement provides fairly standard federal contracting procedures, such as the use of the existing FedConnect and grants.gov infrastructure for tracking and applying.  Letters of intent are due by January 18, 2011, with applications due by February 28, 2011.

September 16, 2010 - electric vehicles; Sugarloaf's efficient snowmaking

Today, a look at several recent articles about electric vehicles.  First, an article by Tom Walsh entitled "Why electric cars aren’t right for Mainers — right now".  He cites the high price of electricity in Maine, which he attributes in part to deregulation and the ISO New England price-making methodology in which all resources are paid the clearing price of the last resource needed to cover load.

Second, a counterpoint by Milt Gross, who suggests that electricity is still much cheaper than gasoline in his experience, even when customers choose (as he did) to source their power from 100% renewable competitive electricity providers -- something empowered by deregulation.

Finally, a pair of letters to the editor about alternative energy: one supporting wind power as a constructive solution to energy and environmental problems, and another urging for the development of a hydrogen fuel market powered by renewable hydropower.

Maine ski area Sugarloaf is continuing to install high-efficiency snowmaking equipment, in addition to proposing a terrain expansion onto Burnt Mountain.

September 1, 2010 - vehicle energy efficiency; federal renewable power?

A stone wall, forgotten in the woods in Bath, Maine.  Most stone walls in New England were built between 1750 and 1850; in 1940, a United States government survey estimated that there were more than 250,000 miles of stone walls in New England -- almost all built by manual labor and power from draft animals, during a time of lower energy intensity.

 
From the vehicle energy efficiency department: the U.S. Environmental Protection Agency and Department of Transportation are jointly revising vehicle window stickers for the 2012 model year. This Wired article describes one option they are considering: assigning new vehicles letter grades for fuel efficiency.  (Examples from the article: Nissan Leaf: A+.  Plug-in Toyota Prius: A.  Toyota Camry: B-.)  Electric vehicles appear more likely to play a larger role in transportation in years to come.

Some may recall the day in 1979 when President Jimmy Carter installed solar panels on the roof of the White House.  They didn't stay there long; President Reagan removed them in 1986.  By 1990, they were donated to Unity College in Maine.  Now, Bill McKibben and others are taking the solar panels to Washington in an effort to convince President Obama to install solar or other renewable generation at his house -- not to mention the federal government's role as the nation's largest energy consumer.

I watched this week's deliberations of the Maine PUC as the Commissioners conditionally approved Central Maine Power's plan to upgrade a section of its 34.5 kV transmission line to 115 kV.  The reason?  To let power from Record Hill Wind LLC's project reach the grid.  The Commission required the wind developer to make a three-month prepayment to CMP of all construction costs, and report to the Commission quarterly as the project moves forward.

Island issues: I've written before about the difficulties of ensuring a water supply on island communities -- both potable water for drinking and any old water for firefighting.  Monhegan, for example, has a culture that is purposely very alert to fire danger.  Today's news has an example of why: fire destroyed a home on Pole Island in Quahog Bay in Harpswell -- despite valiant efforts by firefighters, neighbors and volunteers.

August 16, 2010 - renewable energy standards and goals

NPR has an interesting set of graphics today illustrating the diversity of U.S. states' policies on renewable energy.  As we saw last month, the U.S. does not have a federal-level renewable energy standard, or even a specific goal for renewable development defined in terms of capacity (megawatts, or more realistically gigawatts).

The first factory built-to-order solar-powered integrated electric-vehicle charging station has been unveiled in Korea: the SunPods SP-300.  The unit, also known as the "EV Plug-N-Go", was first displayed at International Green Energy Expo Korea 2010 in Deagu, South Korea.