solar panels are sexy, though maybe not your best bet in New England

Thursday night in the Department of Health Auditorium saw an epic Community Review Meeting to discuss the ARRA-Non-Utility Scale Renewable Program…

In English, there’s eight and a half million dollars that Rhode Island is looking to channel to projects that involve wind, hydro, solar, biomass generation of electricity or heat. That is, as long as they’re created by “any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character.” Wait, that’s the least restrictive definition I’ve ever heard!

Eligible projects would be designed to primarily meet the energy needs of the end-user, located on property owned or controlled by end-user, and it’d be nice if it generated less than ten megawatts per hour.

Way rigorous notes + draft rules/regulations available for download here.

RFP will be ready for submissions by November 16th, applications will be due December 10th, and dollars out on January 1, 2010.

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The first public hearing was held on 5/4/09, hosted by Energy Review Team for the Rhode Island State Energy Program, also Office of Energy Recovery and Reinvestment, commentary mine.

ppt available for download: http://stac.ri.gov/files/0000/0134/OERR_Energy_Review_Team_May_4_Final.ppt

You’ve been warned.

Co-Chairs – Jeff Seemann, also co-chair of STAC, and also Andy, introduced as “Director” of Office of Energy “Research” and at that Andy made faces at the guy sitting next to him.

Their role: to direct federal energy stimulus, and now Jeff is introducing the first public forum. $$ must be wisely invested.
Introduce members:
Tom Ahern, administrator of Public Utility Commission
Kevin Flynn – Division of Planning for RI State
Farley
Sam Krasnow – EERMC
________ – RIEDC
Narleen Shallcross
Beth Codder – House Policy Analyst
_____ – Senate Policy Director

and  staff volunteering time:
Janet Keller, Dan Karrit, Kristen Coogan, Christine Smith

operating procedure is on website -> adopted last Thursday -> stac.ri.gov/innovation/sep
The outline is already there. Everything is on a tight timetable.
1) Set up a process to get $$ to flow into RI + address details and concerns
new starting line (for all those who have submitted unsolicited proposals), and will be an RFP process in place. Guided by public transparency
This team is advisory to the OEResources and the OERecovery & Reinvestment – provide those with a recommendation, then they go to governor who has final say
by 5/12/09 – draft State Energy Plan, and apply to Nat’l DOE
by 6/17/09 – finalize SEP, solicit proposals, recommend 10% of the funding, application criteria
then – 40% of the funding allocated w/ DOE approval
then - final 50% can be allocated
Jeff emphasizes again – this is process development -> details are still vague. RFP for bulk of this $$.
Two v. large + v. general buckets -> extreme flexibility -> would suggest that first 10% goes to existing energy programs.

Federal Guidance to spending $23.9 mil through SEP
req. 1) create jobs. 2) energy cost savings. 3) reduce dependence on imports. 4) reduce enviro impact
rec. 5) transform markets 6) program sustainability 7) leverage other funds
Andy takes over: this Does Not Include EE block grants -> 14.5 mill.
Five million to the ten largest municipalities, 60% of 9.5 to 29 smallest municipalities, and 40% of 9.5 to state energy programs.

Public submits no proposals by May 12
draft of SEP. Opportunity for comments and review … solicit public comments.
Q -> 10% of funding for recommendations -> will that be open to public comment?
A -> no answer for that yet.

Ken: talking about the development of the energy plan. What will be counted?
jobs. energy savings. enviro benefits. reduced dependence on foreign fuels. proposals need numbers here to be justified.
I. so where are we now?
RI has the lowest energy consumption per capita of any state. Two reasons 1) no heavy industry to speak of (nationally industry is 35% of consumption, in RI is 12%) and 2) as a more northerly state, there is reduced AC load in summer months.
Breakdown in RI energy consumption. 33% is residential. 30% is transportation (more stats: RI average commute is 23.5 min. Nationally is 25.5 min. Nationally 75% of commuters in single occupancy vehicles, RI is 80% -> we’re below nat ave in public transit, walking and carpooling)
25% commercial
12% industrial
Fed says to achieve 25% efficiency by 2012. Cannot ignore transportation
Q -> what are the numerator and denominator in 25% efficiency?
A -> Hoping to get to 1990 levels.

energy cost savings: $/BTU is 4th highest in the country. $25.25 (prob wrong number) / million BTU. Three higher are Hawaii, MA and CT. Nat ave is $17. but compared to our neighbors, their per capita income is way higher (if RI is $37000, MA is $46000 and CT in the 50Ks), so a metric that compares as proportion of income makes us look bad.
an imperative to reduce energy costs in RI
- our state is not an energy producer
- home heating oil -> 42 to 46% use, vs 8% nationally. Also for heating, nationally 1/3 use elect, we’re much lower.
All the Energy generating capacity in the state is Natural Gas. Every $ we spend there leaves the state economy.

II. where are we going?
trendline is up for energy consuption, and also anticipates rising energy cost. Together = “a rather sobering situation”
Fed recommended metrics are very relevant to our situation.
Devise ways to produce energy cost savings
Indigenous sources of energy. Renewable projects are attractive on a number of counts.
Our housing stock is very old. Pre-1940 is about 30%, then 25% are from ‘40 to ‘59. then 25% from ‘70 to ‘89.
New building permits are $1900-$2000/yr. Great deal of energy efficiency will not be in new construction, but in retrofitting.
Dispersion of population and Land Use 2025
Demand is rising but is outpaced by peak load rise. Interest in AC is likely to rise.
Under developed markets for renewables, etc. We do not want a boom/bust cycle.

III. where do we want to go? -> Federal Guidance points 1 – 7

IV. how to get there?
1) EE investments. 2) Building Codes. 3) Renewable Energy investments. 4- Energy as a sector of economy, energy business stimulus…

Q&A
? – are you coordinating with workforce development funds? what about communities like municipalities?
Ken – yes on both. need job training and systems in place.

? – you talked about leveraging funds ~ ESCRO + long term loan support – is there a provision to create long term contracts/ loan guarantees?

? – energy cost savings -> are those aggregate or in $/KwH?
answer – BTU/$ invested. Not just electricity and gas, but also home heating.

? Eugenia -> RGGI among others, will that RFP process be folded in?
Andy gets up to say “Good Question.”
also $ for Low Income Weatherization + also 20 milll for that.
Friday is a public hearing on that -> see Julie for details

?-> that weatherizing, does that include municipal facilities?
answer – No.
Ken – let’s review the pots of money. 1) DSM funds – breaks down into energy investment and energy conservation -> began in early ’90s and law in ‘96.
2) Renewable Energy Standard -> 2004
3) Least Cost Procurement -> 2006
4) federal funds. All these are not integrated statutorily, but would aim towards complementarity while appreciating that each has its own logic.

? Sen. Miller -> public transportation, does this mean RIPTA? what can we expect 24 mil to do?
answer – there are other pots of money too, some have already been allocated or starting the process, like hybrid buses and retrofit diesel engines.

? I-am-RI-taxpayer – concern with expanded state budget since one of the goals is program sustainability
answer – thank you.

? – transport authority/agency creation

? Annie -> can some of those first 10% of funded programs go towards heating oil programs?

? -> can you set up an RFP for that first 10% of funding?

? Karina -> can there be some language/criteria on equity? heating oil is one example, but also the gap above “low-income” and all others who fall through cracks

? building codes and USGBC

? homeowners installing residential solar and wind, I like to look to individuals, can money go towards an incentive program of this kind?

? ESCO guy – can some $$ or state resources go to provide resources to understaffed agencies? stuff moves so slowly in RI.
Andy – we’re trying to fill 9 positions right now, balancing time with this process and those interviews.

? is rate decoupling a requirement for any of this legislation?
neither Andy nor Ken think so

? no draft RFP is needed? public comment on that piece?
Janet says there’s already a draft, prob no dramatic changes, that’s not public (yet?) but it exists.

? me – who can I email my comments to later?
any of staff/listed on SEP contact page. Dan volunteers.

? tax incentives for home offices or outside the box transportation solutions?

? Joe -> what is the logic of the council being only advisory when there is so much effort put into public/transparent/fair processes… and then it goes to Governor’s desk and he can do something political
laughter. Jeff – “when called, I will serve.” and “I wouldn’t do it…” and prob neither would anyone else “if I didn’t think we’d be appropriately influential”
expecting their recs to be taken real seriously.

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