MEA Delivers Strategic Electricity Plan to Keep Household Bills Down and the Lights On
Today, MEA released the Maryland Strategic Electricity Plan to promote affordable, reliable and clean energy. While many have been searching for a "silver bullet" that will solve all of Maryland's energy challenges, the truth is that no single step will address our most pressing electricity challenges. Rather, the "Maryland Strategic Electricity Plan" recommends a "silver buckshot" approach, a series of cumulative measures that together will enable Maryland to take control of its energy future.
In short, Maryland consumes more electricity than it generates, resulting in high prices and the threat of summer time shortages as early as 2011. The fundamental long-term answer is to decrease demand, increase supply and improve transmission.
Since the least expensive kilowatt is the one not needed, the Strategic Electricity Plan starts with a series of recommendations to reduce electricity demand. In addition to codifying Governor's EmPower Maryland targets to reduce per capita consumption 15% by 2015, the Plan suggests requiring utilities to meet specified energy savings targets and establishing a state-administered Strategic Energy Investment Fund to finance a range of programs, such as rebates for ENERGY STAR appliances, subsidized home energy audits and window air conditioner exchange programs. Other recommendations include green building incentives and disclosure of commercial and residential energy efficiency.
To increase supply, the plan encourages the PSC to require utilities to enter into long-term power purchase agreements for new generation. It also endorses strengthening the Renewable Portfolio Standard to require utilities to purchase a certain percentage of their power from clean, renewable sources. Other recommendations include expanding the solar and geothermal grant programs and exempting renewable energy systems from sales taxes.
The recommendations to the Governor provide a path for Maryland to lower electricity bills, keep the lights on, and take control of its energy future.
Maryland's Electricity Challenges
In December, MEA prepared a report to Governor O'Malley describing Maryland's electricity challenges. Everyone knows that Maryland has experienced dramatic hikes in electricity bills in the last three years. Less known is that Maryland is facing electricity supply shortages that could cause summer time blackouts as early as 2011. While dealing with high prices and the electricity shortage, Maryland also is working to transition away from fossil fuels to more sustainable, clean energy, which will help us meet our climate and environmental goals.
Following on recent testimony by the Public Service Commission (PSC) Chairman Steve Larsen before the Maryland General Assembly, MEA's report outlining the energy challenges Maryland needs to meet in the coming years. The Energy Challenges letter outlined Maryland's three most pressing electricity challenges:
- What are the challenges to keeping bills down?
- What are the challenges to keeping the lights on? and
- What are the challenges to keeping the environment healthy?
These challenges are addressed in the Strategic Electricity Plan presented to the Governor in early January.
 NOTE FROM DIRECTOR WOOLF
Maryland's energy challenges have never been greater, making this an exciting time to be at MEA. Fundamentally, we continue to consume far more electricity than we generate. Not only does this cause high prices, but we now face the possibility of summer time shortages as early as 2011 or 2012. This e-newsletter highlights some of the steps MEA is taking to address these challenges and promote affordable, reliable and clean energy.
First, after extensive outreach with hundreds of Marylanders, MEA developed a Strategic Electricity Plan to advise Governor O'Malley on potential legislative and other options in advance of the upcoming General Assembly. While there is no "silver bullet" that can solve our energy challenges overnight, the Strategic Electricity Plan highlights a series of specific policy options that can be viewed as "silver buckshot". By aggressively pursuing a series of measures to decrease demand and increase supply, we can keep our bills down, the lights on, and the environment healthy.
Second, this newsletter highlights some of MEA's continuing programs to promote solar, wind, geothermal, biomass and other renewable energies. For example, in the last several months, we distributed grants to almost a hundred households, co-sponsored several renewable energy promotion conferences, and launched new programs to promote biofuels and small scale wind energy systems.
The newsletter also discusses our energy efficiency efforts. As part of the EmPOWER Maryland program, we donated over 80,000 energy efficient bulbs to low income households, launched the Maryland Home Performance with ENERGY STAR program to train and certify contractors to improve whole house energy performance, and created a farm energy audit program to capitalize on energy efficiency opportunities in the agricultural sector. We also continued to provide zero interest loans to state agencies and below market loans to local governments and non-profits to provide energy efficiency.
Finally, MEA coordinated extensively with other organizations working to resolve Maryland's energy challenges. As discussed below, MEA has been actively engaged in local, state and national energy policy issues.
As always, we always appreciate ideas or suggestions on how we can promote affordable, reliable, and clean energy.
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Program Highlights
MDV-SEIA Solar Conference a Shining Success
Governor O'Malley addresses the MDV-SEIA Conference attendees in Annapolis. Photo taken by Albert Nunez, Capital Sun Group, Ltd.
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On November 30th, 2007, the Doubletree Hotel in Annapolis was buzzing with enthusiasm as over 300 attendees packed the conference rooms and exhibit areas. The first annual Maryland, DC, Virginia Solar Energy Industries Association (MDV-SEIA) event drew a wide variety of dignitaries and solar industry representatives. Governor Martin O'Malley provided an inspirational keynote address predicting that we were only at the beginning of significant growth of the solar industry in Maryland and the region.
BP America provided the Governor with a donation of $100,000 to be used for solar schools projects throughout the state. They also donated a second solar powered vehicle for use within the State's fleet. Senator Garagiola and Delegate Hecht were presented with Solar Champion Award from MDV-SEIA and the Special Recognition Award from the Interstate Renewable Energy Council for the successful passage of Senate Bill 595 and House Bill 1016. This legislation revised the Maryland Renewable Portfolio Standard (RPS) to include a requirement to increase the use of solar generation. This new legislation guarantees that Maryland will be one of the leading states in the country in developing new solar installations. Based on this new legislation, approximately 1,500 megawatts of solar capacity in Maryland are predicted to be installed by 2022.
The conference shows that the solar industry can become an economic engine for Maryland. The Maryland Public Service Commission is currently developing their regulations regarding the revised Renewable Portfolio Standard. The overwhelming response to an event put together in just 10 weeks demonstrated that the solar industry is ready to meet the needs for solar in Maryland. Companies from around the USA and Canada attended, with several considering opening new offices or relocating to Maryland.
Membership in MDV-SEIA now includes over 60 corporate or professional members and 35 associates or individual members, tripling the size of the association after just one event. This conference launched a more proactive association that will undertake more trainings and educational activities in addition to monitoring and responding to legislative priorities.
For more information, contact Tim LaRonde at 410-260-7539 or tlaronde@energy.state.md.us.
MEA Launches "Maryland Home Performance with ENERGY STAR"
MEA officially launched the Maryland Home Performance with ENERGY STAR program in November. Home Performance with ENERGY STAR is a contractor training and certification program that encourages contractors to diagnose and improve the performance, comfort, and energy efficiency of homes using a systematic whole-house approach. Although the program's marketing efforts are initially focused in Montgomery and Prince George's counties, contractors throughout the State are encouraged to participate.
The program has started off on a strong footing - two trainings have been held to date with more than 25 contractors participating. MEA is planning to hold more trainings in January and March 2008.
For more information about Maryland Home Performance with ENERGY STAR and network with other contractors, visit the program's website at www.marylandhomeperformance.org.
Pepco Energy Services Press Release
MEA Donates Over 80,000 Light Bulbs to Low-Income Homeowners
As part of Governor O'Malley's EmPOWER Maryland Initiative, MEA has shipped over 80,000 energy efficient compact fluorescent light bulbs (CFLs) to the Department of Human Resources' (DHR) local Social Service Offices and the Department of Housing and Community Development's (DHCD) Weatherization Agencies across the State. The CFLs are to be distributed to low-income utility customers seeking energy assistance and to homes being renovated through DHCD's Weatherization program.
In addition, MEA also donated 1,800 CFLs to Civic Works of Baltimore City. Civic Works will use the bulbs to change out incandescent bulbs of low- to moderate-income homes in Baltimore City as part of their "Project Light Bulb". Project Light Bulb is a three-month energy efficiency pilot program that began in December and is being facilitated by AmeriCorps members and staff at Civic Works, Baltimore's urban service corps. Project Light Bulb focuses on energy efficiency and conservation for 300 low-to-moderate income homeowners in two East Baltimore communities, Coldstream-Homestead-Montebello (CHM) and Belair-Edison.
CFLs are the fastest and easiest way to reduce energy bills and lower the environmental impact of consuming electricity. Since CFLs use only 25% the electricity of traditional bulbs, replacing just four CFLs could reduce a customer's annual utility bill by $60.
For more information, contact Ely Jacobsohn at 410-260-7089 or ejacobsohn@energy.state.md.us.
Windswept on Track for a Successful Start as a New Pilot Program
Having only launched in November 1, MEA has received dozens of calls inquiring about the new Windswept grant program. With limited funding the pilot program is due to fully expend its $15,000 seed money before the end of the physical year. Four applicants have qualified to date for their small wind energy system installations resulting in 7.2kW or 19,000 kilowatt hours annually of wind power.
MEA Primed To Distribute More Geothermal Heat Pump Grants Than Last Fiscal Year
After issuing 77 geothermal heat pump grants in FY 2007, MEA has already granted 63 grants in the first half of FY 2008. Under Maryland law, such grants are limited to $1,000 per system. These systems can save between 25 and 50 percent over regular heating systems and can also generate much of the hot water needed in a home. Fluid pumped through pipes in either vertical borings or horizontal trenches provides a source of heating or cooling in very quiet and efficient fashion, reducing the environmental impact of burning fossil fuels. MEA hopes to continue expanding the geothermal grant program in FY 2009.
To learn more about these systems, read the Department of Energy's Consumer Guide or visit the Environmental Protection Agency's ENERGY STAR Website.
For more information about the Geothermal Heat Pump Grant Program, contact Dave Cronin 410-260-7543 or dcronin@energy.state.md.us.
NEWS
4 Million Gallon Biodiesel Production Facility Opens in Princess Anne, MD
Greenlight Biofuels opened its first biodiesel facility on December 5, initially developed by Baltimore Biodiesel, in Princess Anne, Maryland. The multi-feedstock biodiesel plant has a production capacity of 4 million gallons annually and is expandable to 8 million gallons annually.
Read more
Eastern Landfill Gas Awarded $770,661 Clean Energy Production Tax Credit
Eastern Landfill Gas, LLC, a renewable energy project designed, built and operated by Pepco Energy Services, has been awarded a $770,661 tax credit under the Maryland Clean Energy Production Tax Credit Program for its landfill gas powered, electricity generation plant at Baltimore County's Eastern Sanitary Landfill. The plant will generate up to three megawatts (3 MW) of electricity by collecting and burning the methane gas emitted from the landfill. Burning the methane reduces the emission of greenhouse gases at a rate equal to removing 3,000 cars from Baltimore County's roads each year, while generating enough electricity to power 1,900 homes. Pepco plans to expand generation capacity by adding a fourth methane-powered generator in the future to this 200-acre project.
Read more
BP America Donates Second Solar Utility Vehicle to Department of General Services
| | BP America hands over the keys to DGS |
BP America recently donated a second Solar Utility Vehicle (SUV) to the State of Maryland. It will be used by the Department of General Services as a security vehicle around Annapolis. The BP SUV has 31 horsepower and boasts over 170 pounds of torque. The photovoltaic cells on the vehicle were manufactured at BP Solar's facility in Frederick, MD. The cells charge the vehicle's batteries which offer a quiet, clean, non-polluting means of transportation.
Capitol Online, "State House Cops Go Solar"
Funding Opportunities
Biofuel Grant Program
The Biofuels Grant Program is one way to increase the access to and usage of biofuels by Maryland consumers. This program will award grants for the installation of E85 and Biodiesel (minimum blends of B20) refueling infrastructure at commercial refueling stations. Fuels must meet ASTM specifications. Applications are due by January 8, 2008.
Clean Energy Production Tax Credit
The Clean Energy Production Tax Credit, enacted in 2006, offers Marylanders a state income tax credit for electricity generated by qualified resources of 0.85 cents per kilo-watt hour, and 0.50 cents per kilo-watt hour for electricity generated from co-firing a qualified resource with coal. These credits can be claimed over a period of five years. Annual tax credits cannot exceed one fifth of the initial credit certificate issued by MEA. This credit is available to individuals and corporations that build and generate electricity from qualified resources operational on or after January 1, 2006, but before January 1, 2011. For more information on the Clean Energy Incentive Tax Credit go to, www.energy.state.md.us/financial/renewable/cep_taxcredit.htm or email crice@energy.state.md.us.
Farm Energy Audit Program
MEA and various State, Local, Federal and private (EnSave) partners are currently accepting applications for farm energy audits in Garrett, Allegeny, Washington, Frederick and Carroll Counties. Audit costs are $250, but this is reimbursable to encourage implementation of the audit's recommendations. In addition, there is both State and Federal financial assistance available to help with audit recommendation implementation. For more information contact Chris Rice at MEA: crice@energy.state.md.us
http://www.energy.state.md.us/financial/transportation.htm
Renewable Fuels Incentive Board
The Renewable Fuels Promotion Act of 2005 created the Renewable Fuels Incentive Board. Designed to attract investment in the bio-fuels industry and to offer farmers additional market opportunities for their small grains and soybeans, the Act authorizes the award of up to a $0.20 per gallon financial credit for the production of qualifying renewable fuels.
The Act will give Maryland farmers an opportunity to realize additional value for their commodities. The Renewable Fuels Incentive Board, consisting of the Secretaries of Agriculture, the Environment, and Business and Economic Development and the Director of the Maryland Energy Administration, is now accepting applications for production credits from qualifying producers.
You can download a cover letter with more information about the program and an application for production credits from this website, or call Mark Powell at 410-841-5775 for more information. Please make sure to read the applicable cover letter, containing all pertinent program details, before submitting an application.
http://www.mda.state.md.us/md_products/renewable_fuels.php
Renewable Fuels Task Force
The Renewable Fuels Task Force was created by legislative mandate this past session. The Task Force will study ways to integrate biodiesel and other renewable fuels into the current mix of motor fuels, the effects this could have on related industries and potential hurdles that need to be overcome. The Task Force has met for the second time and will produce a report in early January 2008.
For more information contact Karen Fedor at MDA: 410-841-5773
Solar Energy Grant Program
The Solar Energy Grant Program provides funding for a portion of the costs to install certain qualifying solar energy systems. Grants are available to Maryland residents, businesses and local governments. The incentives are as follows:
- Solar water heating property: 20% of system costs up to a maximum grant amount of $2,000
- Residential photovoltaic property: 20% of system costs up to a maximum grant amount of $3,000
- Non residential photovoltaic property: 20% of system costs up to a maximum grant amount of $5,000.
The Maryland Energy Administration still has funds available for grants under the Solar Energy Grant Program. For applications and additional information, email meainfo@energy.state.md.us or call 1-800-72ENERGY.
Terminal Infrastructure Grant Program
This program will make awards for the installation of Biodiesel infrastructure at terminals in Maryland. Fuels must meet ASTM specifications. Grant amounts are available up to a maximum of $50,000 for terminal infrastructure. Grant amounts are determined according to the following formula:
Total Infrastructure Cost ($) x 50% = Maximum Grant Amount up to $50,000
For more information contact Chris Rice at MEA: crice@energy.state.md.us
Windswept Grant Program ***NEW***
The Windswept Grant Program began accepting applications for small scale wind energy systems from individuals, businesses and local governments as of November 1, 2007. This program helps offset a portion of the cost of small scale wind energy projects of at least 1 kW for residential properties and 1.5 kW for non-residential properties. Grant amounts are $1500/kw for a maximum grant amount of:
Residential Wind Systems: $3000
Nonresidential Wind Systems: $5000
Funding is limited, so apply now. For additional information, email meainfo@energy.state.md.us or call 1-800-72ENERGY.
Federal Funding Opportunities
U. S. Department of Energy Solid State Energy Conversion Alliance (SECA)
Request for Proposals: Now Open
Proposals Due: January 15, 2008
Funding available: $3,000,000 in total funding is anticipated for FY 2008
www.grants.gov
U.S. Department of Agriculture National Research Initiative Competitive Grants Program
Request for Proposals: Now Open
Proposals Due: Dates vary- See Solicitation
Funding available: $190,000,000 in total funding is anticipated for FY 2008
www.grants.gov
U.S. Department of Energy Solar America Initiative Market Transformation: Solar Cities 2008
Request for Proposals: Now Open
Proposals Due: January 10, 2008
Funding available: $2,400,000 in total funding is anticipated for FY 2008
www.grants.gov
ENERGY POLICY PROCEEDINGS
MEA Continues to Play Active Role in On-Going Commission Proceedings, Looking for Solutions Necessary to Meet Maryland's Impending Energy Challenges
In this past year, the Commission has undertaken the examination of a wide array of issues relating to Maryland's electricity supply, the prices Maryland residential customers pay for electricity, the wholesale markets in which Maryland's electric utility companies purchase their power supplies, and programs for low-income residents, such as the Electric Universal Service Program ("EUSP"). MEA has played an active role in these proceedings by providing expert analysis and testimony addressing these difficult issues. Although not all of the proceedings are ongoing, MEA remains a key party in the following proceedings:
PSC Case 9111-- Beginning with several utility filings in January 2007, the Commission opened an investigation of advanced metering technical standards, demand side management (DSM) cost effectiveness tests, DSM Competitive Neutrality, and recovery of costs of advanced meters and DSM programs. This Fall, the Commission ordered all electric companies to develop and submit comprehensive and aggressive energy efficiency, conservation and demand reduction plans designed to help achieve Governor O'Malley's EmPower Maryland initiative, developed in consultation with MEA, of achieving a 15% per capita reduction in statewide electricity consumption for all users by 2015. MEA has filed comments and participated in hearings related to the plans submitted by Maryland's electric companies. The proceedings in this case are ongoing, and MEA will continue to play a key role in the development of cost effective energy efficiency, conservation and demand reduction strategies for meeting the EmPower Maryland goals.
PSC Case 9117-- MEA continues to be an active participant in the Commission consideration of whether to use a "managed portfolio" process in lieu of competitive bidding to serve residential and small commercial customers standard offer service. Further, in September, the Commission opened a second phase of the case covering two topical areas pertaining primarily to residential and small commercial customers: (1) the potential solicitation of energy efficiency and conservation resources in conjunction with Standard Offer Service (SOS); and (2) the possible acquisition of additional installed capacity by Maryland utilities to avert potential service reliability problems. As with Phase I, MEA presented expert testimony on both issues. The testimony was examined before the Commission in November. However, as of the date of this issue, the Commission has not issued an order in either phase as its focus has been on preparing a report on Maryland's energy situation for the General Assembly. The Commission's report to the General Assembly recognized MEA's recommendation in Case 9117 that the Commission direct utilities to begin to plan for the acquisition of newly built generation to meet reliability needs. The Commission commented that "this testimony bolters the views of our consultants and adds to our confidence in this approach."
PSC Report on "Re-Regulation" Warns of Critical Electricity Shortage as Soon as 2011
In early December 2007, the Maryland Public Service Commission issued a series of interim reports to the General Assembly regarding options for "re-regulating" Maryland's electricity markets and for obtaining new generation and transmission resources in the State. The Commission warned that:
There is no ambiguity or room for serious dispute: unless steps are taken now, the State of Maryland faces a critical shortage of electricity capacity that could force mandatory usage restrictions, such as rolling black-outs, by 2011 or 2012. We face this crisis because Maryland sits in a highly congested portion of the regional electric transmission system (which makes it difficult to bring more power in) and because we use more electricity than is generated here. We can respond essentially in two ways: we can add more capacity, either through new generation or transmission, or we can reduce the amount of electricity we use. At the end of the day, we will need to do some of both. We cannot, however, do nothing.
The Commission highlighted the failure of deregulation to create price incentives for new generation or transmission and noted that capacity shortages and transmission constraints seriously disadvantage Maryland consumers. The Commission concluded that "it is not in the public interest to continue to rely exclusively on market forces to address Maryland's reliability concerns and the high wholesale electricity prices Marylanders pay." As such, the Commission discussed a series of potential options, including:
- forcing an increase in the available supply of electricity, both to ensure a reliable supply and to relieve some of the upward pressure on wholesale prices by directing Maryland's electric utilities to enter into new, long-term contracts to induce the electricity supply in Maryland unless existing or new generators substantially increase their committed electricity capacity supply;
- requiring the utilities to implement aggressive and cost-effective demand management and energy conservation programs, consistent with Governor O'Malley's EmPower Maryland initiative;
- ruling on whether, and if so how, the process by which utilities purchase electricity for Standard Offer Service ("SOS") customers could be modified to achieve better and more stable prices for ratepayers; and
- expanding the PSC's presence as an advocate at FERC, PJM and in other forums on behalf of Maryland's energy future, reasonable rates, and fairness in the wholesale electricity markets.
In addition to continuing to review the market performance as it relates to Maryland's consumers, the Commission has made recommendations concerning the viability and economic impact of a broad array of longer-term new generation, transmission, efficiency, and conservation options. In merit economic order, the options include:
- New and upgraded transmission to relieve congestion;
- Development of nuclear power;
- Add 1200 MW of additional power beyond that needed to maintain reliability;
- Look to renewables like wind for clean, carbon free power; and
- Encourage the full attainment of EmPower Maryland Goals
In the upcoming months, the Commission will consider a number of "re-regulation" options as well as an economic analysis of the costs and benefits of options for new electricity capacity in the state, including new transmission, conservation and demand management, and various types of new power sources, such as gas, nuclear, coal, and wind. Analyses of these issues were initiated by the Commission's consultants as part of the Commission's comprehensive review of status and forecasts for electric supply for Maryland.
MEA will continue to work with the PSC to develop, evaluate and implement these options. By combining the PSC's regulatory authority with MEA's experience promoting energy efficiency and renewable energy programs, Maryland plans to take control of our energy future.
CALENDAR
Public Meetings – "Use of Public Land for Wind Energy Generation"
The Maryland Department of Natural Resources (DNR) has begun soliciting input to help determine whether hosting wind power turbines and related infrastructure is an appropriate use for public lands. The public process is being initiated in part in response to a recent private proposal to lease property in Savage River State Forest for the siting of wind energy generators. For more information or to provide comment, visit http://www.dnr.state.md.us/sustainability/wpm/.
Public Meeting Dates:
- January 30, 2008, 6:30 p.m. to 9:00 p.m., College Auditorium, Garrett College, 687 Mosser Road, McHenry, MD, 21541
- January 31, 2008, 6:30 p.m. to 9:00 p.m., Room 161, 44 Calvert Street, Arundel Center, Annapolis MD, 21401. Street Parking or Parking Garage (fee) nearby.
425th General Assembly Session - Commencement
Begins January 9
Visit http://www.mlis.state.md.us/ for details.
Meet the Team
Brandon Farris
Director of Legislative Affairs
With experience at both the National and the State level, Brandon Farris was a great selection as MEA's first Director of Policy and Legislative Affairs. Although MEA's policy shop is in its infancy, they are dedicated to working with the legislature to find solutions to Maryland's energy challenges.
Brandon's policy career began in 2003 with the US House of Representatives, Committee on Agriculture. He handled Energy Policy for the committee, which included communicating with members of Congress, conducting nationwide hearings and working on renewable fuels legislation. In early 2007, Brandon moved to the National Governors Association as a legislative associate for the Natural Resources Committee. The Committee develops policy, plans and implements lobbying activities and serves as the principal liaison with Governors and policy makers in areas of water and air quality, energy, conservation and natural resources, and agriculture. Brandon served as the interim director of the Committee, until late 2007, when he joined MEA as the director of policy and legislative affairs, where he has been working on MEA's "Strategic Electricity Plan."
If asked he will tell you that he enjoys facilitating discussions on difficult topics and effectively communicating legislative priorities. He enjoys seeing firsthand how well crafted energy legislation can positively impact quality of life, such as lowering bills and creating much needed jobs. He also loves spending time with his wife Lorin, while both of them are working towards advanced degrees.
Brandon received a B.A. in History from the Virginia Military Institute, an M.A. in Government from the Johns Hopkins University and is currently working towards his J.D. from American University Washington College of Law. Brandon also served in the U.S. Marine Corps Reserves.
I encourage you to reach out to Brandon if you have any questions about MEA's legislative agenda.
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