Energy & Water

The bill:  Securing Energy Infrastructure Act 

The author: Angus King (I-ME)

What the bill does: 

• 2-year pilot program within the National Laboratories to study covered entities and identify new classes of security vulnerabilities, and research and test technology – like analog devices – that could be used to isolate the most critical systems of covered entities from cyber-attacks.

• Require the establishment of a working group to evaluate the technology solutions proposed by the National Laboratories and to develop a national cyber-informed strategy to isolate the energy grid from attacks. Members of the working group would include federal government agencies, the energy industry, a state or regional energy agency, the National Laboratories, and other groups with relevant experience.

• Require the Secretary of Energy to submit a report to Congress describing the results of the program, assessing the feasibility of the techniques considered, and outlining the results of the working groups’ evaluation.

• Define “covered entities” under the bill as segments of the energy sector that have already been designated as entities where a cyber-security incident could result in catastrophic regional or national effects on public health or safety, economic security, or national security.

The Hill | ‘Crash Override’ malware heightens fears for US electric grid

S.79 115th Congress (2017)

Angus King | King Legislation to Protect America’s Energy Infrastructure from Cyber-Attacks Gains Momentum

Michigan’s Attorney General charged Michigan’s Health and Human Services Director with the following 2 felonies:

• involuntary manslaughter
• misconduct in office for “for allegedly instructing his staff to stop an analysis that would have helped to determine the cause of the outbreak”

Michigan’s Attorney General also charged Michigan’s chief medical executive with 2 crimes:

• obstruction of justice by “threatening to withhold funding for a study into the outbreak”
• lying to a police officer

In total, 15 current or former state or city officials have been charged.

The Hill | Michigan health director charged with involuntary manslaughter

A Fuel Fix article, Texas lack of statewide metering policy slows adoption of rooftop solar, that examines the adoption of solar in El Paso makes these popints about Texas solar energy policy:

• non-competitive electric providers in Texas are competing with their own customers who produce solar energy
• Statewide metering policy would 
  • improve adoption of solar energy in Texas
  • restore the differences in competitive and noncomeptitive electric markets

The Dallas Morning News Editorial, The best reason Texas needs a business plan for clean energy: It worked before, makes the following key points for its argument:

• It worked in the 1990s when the state “pulled together experts from industry, government, universities, and consumer and environmental groups, and they created a strategic planto clean up the air and boost the economy”
• Texas has vast renewable energy potential
• Texas renewable energy potential is available economic capital, use it

90% of Pecos County property tax revenues are based on oil and gas industry.

During the oil bust, property tax revenues in Pecos County declined, but are being filled by wind and solar energy projects. Such as:

•  100 megawatt solar project should be $30 million property tax revenue/year
•  Solar Energy Industries Association estiamtes utility size solar projects in Texas will double in 2017

Houston Chronicle | Big solar projects potential boon for rural areas

Grid Security Consortium: Illinois’ Cyber Resilient Energy Delivery Consortium 

• universities
• national labs
• private industry

Goals of the Cyber Resilient Energy Delivery Consortium:

• bolster the security and reliability of a power grid
• build public trust in the system

Is there a state agency connection between the Consortium and the State of Illinois? Yes, the Illinois Commerce Commission created the Office of Cybersecurity and Risk Management

How is the Consortium funded?

• $22.5 million in Department Of Energy  funding
• $5.6 million in recipient cost-sharing

Midwest Energy News | Illinois partnership looks to build trust in grid through cybersecurity research 

Investor owned utilities have  13 community solar programs representing 91 MW of capacity.

Municipal power has  22 programs with a combined 29 MW capacity.

Electric cooperatives have 63 programs with a 43 MW capacity.

National Renewable Energy Labortatory makes these predictions about community solar by 2020 2ill:

• be between 32% to 49% of the overall distributed PV market
• represent between $8.2 billion and $16.3 billion in cumulative investment

Utility Dive | What makes a successful utility-led community solar program?

North Carolina Legislature is moving a solar reform bill, House Bill 589, that will:

• changes how PURPA is enforced in North Carolina
• sets up a system of competitive bids for new solar construction
• designed to give utilities more say in where and when projects will be built
•  requires rebates to customers who install rooftop solar on their homes and businesses

Charlotte Business Journal | Solar reform bill moves to the N.C. Senate

Why are pipelines seen as the referendum issue in the campaign for Virginia’s next Governor?

• pipeline projects unite disparate groups. several recent pipeline projects have spurred action by activists on all sides:
  • envrionmentalists
  • wildlife groups
  • private property rights groups
• election timing. its one of the first governor races since the 2016 presidential election
• jobs there’s conflicting feelings as to whether pipelines bring more jobs, or for the tourist areas where the pipelines will traverse cause a loss of tourism jobs.

The Franklin News Post | Virginia governor’s race ‘a referendum on pipelines’

Kansas City Power & Light operates in both Kansas and Missouri. How each of the states has regulated its thermostat DSM project shows the different regulatory models:

Kansas regulators are in the process of review:

• modest program
• regualtors are focused on a lengthy debate over how the program’s benefits are calculated
• KCPL is trying to bring the Missouri regulatory structure that allows for the capitlization of both kW and kWh energy efficiency value

Missouri regulatory framework allows for:

• the program is going swimmingly
• offering hefty customer rebates
• innovative regulatory model that allowed for the program to be rolled out under the Missouri Energy Efficiency Investment Act (MEEIA) which allowed the utility to recover its investment by accounting for multiple value streams beginning in 2014
• Missouri’s structure “allows them to capitalize on both the kW — the capacity value delivered through the Nest thermostat — as well as the kWh energy efficiency value,”

Utility Dive | KCP&L thermostat program shows how regulatory design can make or break DSM

Hawaii’s HB 1593 will:

• reduce oversight in order to speed the loan process for energy storage
• sets up a 2 year rebate program to incentivize energy storage that is installed concurrently with solar panels
• potentially increases internal rates of return between 110 basis points and 140 basis points
• could incentivize between 75 MWh and 300 MWh of storage in Hawaii

Utility Dive | Maryland, Hawaii turn to storage incentives as state markets gain momentum

Where is this happening? Pennsylvania

What’s the legislation in Pennsylvania? HB 1412

What does PA’s HB 1412 do?

• Pilot program allowing utilities to earn a rate of return on the cost of constructing microgrids
  • Utlities would be able to propose, develop & profit from microgrids and energy storage
• Allow for wholesale participation in markets with the benefits accruing to customers
• Within 5 years, the PA’s PUC has to issue a report answering this question:
  • Whether there are “circumstances under which the ownership, development and deployment of energy storage and microgrids by electric distribution companies may be in the public interest.”
  • The issuance of the report triggers a 2 year rule making period.

Utility Dive | Pennsylvania bill would allow utilities to earn returns on microgrids, storage

5 States are home to pending proposals by utilities to employenergy storage solutions:

• Texas
• Maine
• Massachusetts
• North Carolina
• Utah

NC Clean Energy | 50 States of Grid Modernization

• One Cypress Energy has a deal to use its Port of Brownsville terminal to supply gasoline, diesel and other refined products to customers in Reynosa and Matamoros.
• Howard Energy partners is building 2 pipelines linking the Eagle Ford Shale  to Monterrey
• Valero Energy Corp is investing $200 million to build 3 storage terminals for refined products in northeastern Mexico

San Antonio Business Journal | San Antonio companies landing lucrative energy deals in Mexico

Rep. Landgraf touts Texas newly passed grant program for local governmental entities purchaseing natural gas powered vehicles by saying:

• helps create jobs in the Permian Basin
• allows Texas Emissions Reductions Program funds to be used to convert state fleets to natural gas vehicles
• supports  increased natural gas production in Texas
• good for the economy- no new taxes or fees under this bill

Odessa American | Landgraf touts Texas Fuels bill

Background: Ohio is looking for way to protect its nuclear generation. To protect the nuclear plant, Ohio is considering a fee for utility customers. 

Since a fee to subsidize nuclear is a hard sell, the author is proposing a familiar amendment: A one time opt-out option for all customers.

Why is this a familiar amendment? Ohio tacked on a similar opt-out provision for a renewable bill 

WKSU | Ohio Lawmaker Floats the Idea of a Customer Opt-Out of FirstEnergy’s Proposed Nuclear Subsidies

The Court: Texas Supreme Court

What’s the issue: Whether trespass occurs  on Land B when a Mineral Owner drills horizontally from its landA, through Land B owned by another, to its landC. 

Is it the mineral owner of LandB or the surface owner of Land C that gets to negotiate this? The surface owner. The mineral owner does not “possess the specific place or space where the minerals are located” 

The decision: No trespass

Lightening Oil Company v. Anadarko E& P Offshore LLP  NO. 15-0910 

• 11 cross border transmission lines from US to Mexico
• Mexico wants to expand beyond 11
• 2 Successful examples
  •  A combined cycle plant in Mission, Texas. It sends 100 percent of the electricity it generates to Mexico
  • A wind-generated electricity for the California grid is being imported from Baja California
• 1000+ American jobs will be rooted in Mexico-US cross border transmission

Fronteras | Mexico Energy Reform Spurs Larger Scale Cross-Border Electricity Transmission

State:  Missouri

The economic development goal: 

• return jobs
• help a region of the state that’s suffered economically since a major aluminum smelter closed last year

What lure do the companies need to move into the economically repressed area of Missouri?

• a cheaper electric rate with a longer contract than is allowed under current law

What’s the opposition say? Doing this would allow electric companies to raise rates on residential customers

AP | Missouri Lawmakers Power up for Electric Special Session

State: Ohio

The legislative protection of coal generation plants: subsidies to ensure the plants operate even when it costs more to operate than price of electricity

How long will the subsidy be in effect: As long as the coal plants are operational

Is this the first time Ohio has subsidized coal plants? No, this bill assists 2 plants owned by Ohio Valley Electric Corp. Existing subsidies are in place for coal plants owned by American Electric Power & FirstEnergy

Did any policy issues bubble up during this process? yes, legislators explained that the subsidies were not re-regulation of the deregulated market

Columbus Dispatch | Bill in Ohio House would permanently subsidize 2 coal-fired power plants

According to E&E News, Cyber raises threat against America’s energy backbone, there are no requirements to disclosure a cyber threat unless 1 of 2 other laws are triggered:

• if the hack triggers safety or environmental rules

What disclosure did the Houston company make? Enterprise Products Partners LP, based in Houston, warned investors that there is a possibility that “one or more facilities or electronic systems that we own or that deliver products to us” could be damaged by a cyberattack, severe weather or other disruption.

Nevada Governor Sandoval (R) has before him the following package of energy sotrage bills:

• Senate Bill 204 directs state regulators to consider requiring utilities to purchase energy storage in the next couple of years’=

• Senate Bill 145 establishes an incentive program for energy storage within the state’s solar program. It would also create incentives for the development of electric vehicle charging infrastructure.

• Assembly Bill 223 directs utilities to develop efficiency and conservation plans, with at least 5% dedicated to low-income customers. 

• Senate Bill 314 makes changes to the siting of wind turbines to ensure uniformity of standards.

  Utility Dive | Nevada lawmakers pass bills for storage incentives, possible mandate

Renewables are pushing back against a Department of Energy grid study because:

• the study is built on a false premise that renewables are responsible for the retirement of coal and nuclear plants that, threby putting grid reliability at risk
• the study should include public comment with more energy industry input
• operators of renewables are effectively integrating renewable power onto the grid and changes to baseload power are driven by challenges from low-priced natural gas, which has made coal and nuclear plants less competitive

Which renewable energy groups have signed onto this position?

• American Council on Renewable Energy
• American Wind Energy Association
• Solar Energy Industries Association
• Advanced Energy Economy

The Hill | Renewable groups push back on Energy Department electric grid study

Mexico’s energy agency has an American fostering relationships with electric providers in the US: Chicago-born Jeff Pavlovic is managing director of Electric Industry Coordination at SENER — Mexico’s energy secretariat.

3 Cross Border Elecricity Projects highlighted:

• Frontera combined cycle plant in Mission, Texas
• San Diego-based Sempra Energy is bringing in wind-generated electricity for the California grid from Baja California
• Starting to build a stronger interconnection between Nogales, Sonora and Nogales, Arizona

“If Texas gives us electricity more cheaply, I would buy it,” said Mexico City resident Jose Aviña in Spanish.

Fronteras | Mexico Energy Reform Spurs Larger Scale Cross-Border Electricity Transmission

University: California State University

Battery storage sought: software-driven energy storage services  a 1 MW / 4.2 MWh system to be housed on campus in Carson

Will there be integration? Yes, in coordination with battery storage in a Los Angeles campus,  there will be a total of 2 MW / 6.2 MWh &  will eventually be paired with solar generation

Electric Light and Power | Stem to install energy storage system at CSU Dominguez Hills

City: San Jose adopted community choice aggregation (CCA), giving its residents more options than PG&E

The caveats on community choice in San Jose:

• San Jose Clean Energy must  provide at least one option with 10% more renewable energy than PG&E’s power mix
• San Jose Clean Energy must offer a 100% greenhouse gas-free option.
• After multiple notifications, Residents will be auto-enrolled in San Jose Clean Energy but can opt back into PG&E

By 2020s, California’s retail load will contain:

• 85% of retail load could be supplied through CCAs, rooftop solar and direct access providers.

Mercury News | San Jose City Council approves new community choice energy plan, the largest in California

3 Ways to improve oil and gas industry data at the Railroad Commission:

• Fully Fund the Railroad Commission
• Improve the accessibility and clarity of RRC data
• Fully staff and update archaic data storage and management systems

Why do researchers want access to better data?  To better understand the efficiency of the oil and gas industry

TribTalk | Kate Willyard, Texas A&M Student | The need for better Texas oil and gas industry regulatory data

The Utility: Vermont’s Green Mountain Power

What battery is Green Mountain Power installing? 

• Tesla’s industrial Powerpacks are being installed on utility land
• Tesla’s home Powerwall 2s are being installed for up to 2,000 customers

How are the powerpacks and walls being used? For large-scale “grid-smoothing” installation including:

• to back up the grid instead of charging up diesel plants
• the powerpacks and powerwalls are rechaged at night when power usage is low

How did the idea start? During a power outage affecting 15,000, 3 customers with power walls never lost power.

Engadget | US utility offers clients cheap Tesla batteries for grid backup

Attorney General Opinion KP-0148 tells us:

• New school buildings are commercial buildings.
• Commercial buildings fall under subsection 388.003(b) of the Health and Safety Code 
•  subsection 388.003(b) of the Health and Safety Code requires that the International Energey Conservation Code is  the energy code for use in this state for all other residential, commercial, and industrial construction.

​Why is this important right now? The opinion requestor points out that legislative intent  was that the International Energy Conservation Code was to only apply to residential construction.

State: Oklahoma

The legislative trend to curb protestors at critical infrastructure: levy steep fines or prison time against people convicted of trespassing at a critical infrastructure facility to impede operations. That includes pipelines, refineries, chemical plants, railways and other industrial sites.

penalties: Range from $1000 with possibly 1 year in jail to $100,000 and possibly 10 years in jail.

Governing | New Oklahoma Law Could Mean Heavy Fines, Jail Time for Pipeline Protesters

The Court Ruling in March:  A  unanimously declared that neither sportsmen nor landowners had a superior right when non-meandered waters move over private land

the state:  South Dakota

What did the South Dakota Game, Fish and Parks Commission do after the March court ruling? Closed public access to some, or all, of 25 lakes and sloughs

What does nonmeandered water mean?  “Non-meandered is a legal reference to impermanent water bodies that government survey crews in the late 1800s declined to designate as permanent water bodies in what was Dakota Territory”

The legislative fixes:

• Authorizing the game commission to decide regulations for specific bodies of water
• Limiting landowner liability
• Authorizing game commission staff to negotiate with individual landowners.

Capital Journal | Legislators hint at June special session on non-meandered water

Which entities filed the white paper at the Texas PUC?  Calpine & NRG

What are Calpine & NRG seeking? changes to the pricing and settlement rules in the power market administered by ERCOT 

What Texas based facts does the White Paper rely on? “noticeable decline in energy prices since 2014″ due to low natural gas prices and higher penetration of subsidized wind”

• natural gas prices are at the lowest level in 15 years

Why are NRG and CALPINE seeking a change in pricing and settlement rules? Texas Generators profit is seen in scarcity events.

Outgoing PUC Chair Nelson spoke publicly about the decrease in scarcity wind due to subsidized wind 

Utility Dive | NRG, Calpine propose market fixes to avoid ‘subversion’ of ERCOT model

Why is this gaining attention? A fatal explosion in a flow line near a Colorado neighborhood

How are flow lines regulated?

• Generally most states may only regulate digging, backfilling, leaks, and spills
• Only California regulates the pressure of these lines & requires submission of detailed maps of small oil and gas pipelines in populated areas
• Pennsylvania has pressure-testing rules for “well development pipelines” that carry frack water to sites, but not for  gathering pipelines 

What information are some saying Colorado regulators should have about these lines?

• Where most flow lines are located
• The location of flow lines in areas with intense home development

E&E News | Most states don’t regulate lines linked to Colo. explosion

Mexico is continuing the process of deregulating its energy market.

The next round of reforms will focus on:

•  oil and gas production deregulation
• reforms will be a five-year plan
• reforms will open up 509 exploration and production blocks and 82 production fields both offshore and onshore

Houston Chronicle | Mexico moving ahead with energy market reforms, official says

Add Ohio to the list of states permitting drilling on state park lands.

Has the issue been defeated by the legislature previously?  Yes, during 2015 the bill was defeated.

How did Ohio legalize drilling on state park lands? By providing for state park land drilling in the state budget.

Cleveland.com | Ohio budget bill could force parks to allow oil and gas drilling

The Texas Supreme Court ruling in Sabine Oil & Gas Corp., v. El Rucio Land and Cattle Co. Inc. et al., case number 14-0979 has this implication for the railroad commission:

• The Railroad Commission does not have exclusive jurisdiction over contamination and remediation.

What is the statutory linguistic issue in the powers granted to the Railroad Commission?

• exclusive jurisdiction is not granted to the agency with terms like “​sole authority” & “solely responsible”

What’s the background? A landowner claims radioactive contamination on his land. The land owner was awarded $22.7 million in arbitration & that was confirmed by a lower court.

What 3 points did the Texas Supreme Court make?

•  Texas Railroad Commission can only decide nonjudicial issues
• RRC doesn’t have exclusive jurisdiction over the claims of landowner
• The $22.7 million award and judgment should not be vacated.

Law 360 | Texas Justices Say RRC Lacks Sole Claim To Sabine Fight

A hypothetical hack triggering a blackout in North America that is estimated to leave 93 million people without power  could cost anywhere from $21 billion to $71 billion in damages.

Harvard Business Review | Smart Cities Are Going to Be a Security Nightmare

The Opposition: The American Petroleum Institute (API) is opposing subsidies to nuclear power plants. 

The States considering new nuclear subsidies:  Pennsylvania & Ohio

The States that have created nuclear subsidies:  New York & Illinois

Arguments supporting nuclear power subsidies:

• nuclear power provides high-paying jobs in rural areas
• helps combat air pollution and climate change because they produce emission-free electricity. 

Wall Street Journal | Oil-Gas Lobby Opposes State Subsidies for Nuclear Power Producers

State: North Carolina

What mandate deos North Carolina want to eliminate? renewable energy portfolio standard

Why eliminate the renewable energy portfolio standard? it has cost the state more than estimated, including:

• $1.6 billion in tax credits to renewable energy in the last 7 years
• Plus, increased energy prices

Who opposes the bill? North Carolina Sustainable Energy Association

What are the opponent arguments? saved customers $162 million

What language would replace the  renewable mandate ? that energy will be procured “in a manner that is consistent with the development of the least cost mix of generation.””

North Carolina HB 745 (2017)

State: South Carolina

What triggered a bill to reign in power plant costs?  A nuclear power plant with cost overruns of billions and years behind schedule

The Legislation: South Carolina’s H 4022 (2017)

How does South Carolina try to tighten power plant costs?

• Gives an oversight agency, like OPUC,  more powers to “petition the Public Service Commission for orders modifying returns on equity to be applied to future rates,” along with other measures meant to protect consumers
• Requires utilities to prove rate increases are necessary

What are supporters saying? Its not drastic, ” its re-balancing”

Utility Dive | As Summer bills soar, South Carolina mulls bill for tighter rules on power plant costs

State: California

The Energy Storage Bill: SB 700 (2017)

What does California’s SB 700 do for the installation of energy storage systems?

• require utilities to collect funds from ratepayers to establish an Energy Storage Initiative
• The Energy Storage Initiative would worl in tandem with California’s existing Self Generation Incentive Program and the California Solar Initiative
• Funding will run through 2027
• 25% of the funds will go to low income communities and to job training

The goal of SB 700:  incentivize the adoption of solar-plus-storage systems

Utility Dive | California Senate committee clears bill for new energy storage rebate program

The Researchers identified a grid vulnerability:  that hackers could shut down parts of an electric grid.

The vulnerability would have allowed  “attackers to gain remote control of GE protection relays, enabling them to “disconnect sectors of the power grid at will.”

The issue is being addressed with software patches.

Reuters | GE fixing bug in software after warning about power grid hacks

Chapter 313 helps the energy industry by:

• It is the state’s single most important economic development program that allows Texas to compete for many new industrial and energy-related projects
• its transparent process that requires reporting and progress monitoring with the reports open to the public
• It is the catalyst for development of wind energy capacity in Texas

Chapter 313 projects by the numbers:

• 311: total number of 313 agreements signed through 2015
• $146 Billion: lifetime investment of 313 agreements
• $80 billion in investment has been brought to the state
• 50,000 jobs have been created
•  $2 billion in personal income has been added

The bills impacting Chapter 313 agreements:

•  Senate Bills 1026 & 1027, creating barriers to renewable generators being able to access the law’s incentives
• House Bill 445 and S.B. 277, which are directed specifically at wind facilities located near military facilities
• S.B. 600, which would eliminate the tax altogether

Daily Energy Insider | Chapter 313 in Texas puts energy fight in the school yard

The legislation: SB 1392 , a committee substitute to SB 1392 

Senator Perry on his SB 1392:  All the districts should join hands and sing.    “We’ve got all these little micro-managers running around on the same aquifer, that performs the same way, the same geology, recharges the same, uses the same, and we got different sets of rules,”- Sen. Perry

The groundwater district opposition believes this bill will lead to:

• loss of local control
• loss of private property rights
• more control for urban areas
• water exportation

Houston Public Media | Groundwater Districts Fear Loss of Local Control With Proposed Changes

How much access does a condemning entity have to survey land before eminent domain proceedings begin?

That’s the million dollar question before the Virginia Supreme Court. 

Is this a new issue percolating in the state courts? No, land owners near Big Bend are tacking a similar legal issue of the Pecos Pipeline and courts in California are grappling with the issue.

The Daily Progress | Virginia Supreme Court takes first look at pipeline survey law through two appeals

State: North Carolina

The competing interests: Military installations and property owners who can put their property to a highest and best use by leasing land to wind generation

The 2 legislative options:

•  2 year moratorium and study
• Ban wind 30 mile radius around military installations, which failed to recieve an affirmative vote in committee. 

New Bern, NC  Sun Journal | Windmill legislation remains up in the air

Colorado legislators are tackling stranded coal assets by:

• creating ratepayer-backed commercial bonds with a AAA rating
• that allow  utilities to refinance retiring coal plants
• and allow utilities to pass those savings back to the community

Colorado  HB17-1339 (2017) 

Utility Dive | Colorado lawmakers eye bond markets to help stranded coal assets

• 1st Quarter rig count up 40%
• Employment up by 9,000
• Doubling of drilling permits to 3,250
• More than 50%  increase in average crude prices

Fuel Fix | Oil and gas numbers boom; ‘A new cycle of expansion,’ expert says

Capacity markets: Ensure grid reliability by paying participants to commit generation for delivery years into the future.

PRO: 

• guaranteed revenue for energy generation
• encourage aspirational capacity
  • aspirational capacity refers to meeting state mandated renewable goals

CON:

• capacity mandates by the state give a competitive advantage to renewables who access incentives
• “ capacity markets remain vulnerable to price depression as a result of out-of-market subsidies”

Energy-only markets: Pay generators only when they provide power on a day-to-day basis. 

PRO:

• more efficient
• customers don’t pay for energy generation that won’t be called on for power
• protect competition
• promise of high prices during energy scarcity, incentivizes generators to build new plants and keep them ready to operate.
  • ​scarcity pricing has not been triggered when renewable capacity has filled the gap

CON:

• increasingly unstable in low cost energy production
• discourage generators from building new power plants without the guaranteed revenue of a capacity market
• relies on electric demand growth

Utility Dive | The great capacity market debate: Which model can best handle the energy transition?

What are the details of the Arizona-nrothern Mexico transmission tie?

•  300 MW direct current interconnection
• operational in 2019
• three-mile, 138-kV transmission line starting in Nogales

Utility Dive | Arizona-Mexico transmission tie could be complete by 2019

State:  Oklahoma

Wind tax credit repeal legislation: Oklahoma HB 2298 (2017)

The nuts and bolts of the wind credit repeal bill:

• Credits would end July 1 2017
• Supported by wind energy industry which is staking out the claim that it is the firs tindustry to work to end their own tax credits

Utility Dive | Oklahoma poised to roll back wind incentives — with the industry’s support

State: Maryland

The Tax credit details:

• 30% tax credit for the deployment of energy storage technologies
• the tax credit runs from 2018 through 2022
• capped at $5,000 for residential storage
• capped at $75,000 for commercial projects
• commercial projects also have an overall cap on credits awarded of $750,000 per year
• applies to these types of energy storage:
  • battery
  • mechanical storage
  • thermal storage

Maryland Senate Bill 758 (2017)

Utility Dive | Maryland passes 30% energy storage tax credit for residential, C&I installations

State: Florida

Legislative Fix: 

• Increase a reservoir capacity
• Stop overflows of toxic “guacamole water” into the state’s rivers and streams

The Eminent Domain issue:

•  Eminent domain authority amendments failed
• SB 10 prohibits the use of eminent domain

FLORIDA SB 10 (2017)

Florida Politics | Senate approves plan to fix Lake Okeechobee, end algae invasions

• Improved Technology.
  • ​$9 million to improve its information technology in its $44.9 million  supplmental requst
  • Houston Chronicle | Energy agency’s technology is in a time warp
• Quake Science.
  • ​$3.4 million from Texas lawmakers to continue operating a network of seismographs installed over the past two years
  • Ft. Worth Star Telegram | Lawmakers, scientists seek millions to study Texas earthquake data

What do these two funding requests have in common? Technology & Science for 2016.

Texas House Bill 2395 By Collier requires:

• schools must conduct  water testing 
• remediation of water sources testing positive for lead
• requires results must be posted online

California Assembly Bill 746 requires: 

• requires testing of school water sources
• schools would be required to inform parents and staff of water test results
• requies to shut off any water source that exceed EPA lead levels 

• New York
  • for its  Reforming the Energy Vision that incentivizes deployment of DERs and demand management as an alternative to traditional infrastructure
• California
  • for its integration of  DERs since 1998
• Minnesota
  • for its  grid reforms in vertically integrated markets
• Massachusetts
  • for its grid modernization that  focuses on making the system more efficient and resilient through a number of separate dockets, rather than one overarching utility reform proceeding 
• Rhode Island
  • for its  Power Sector Transformation

Utility Dive | The top 5 states for utility grid modernization and business model reform

• ” concerns over how the grid operator uses “reliability unit commitment” dispatching to maintain reliability”
• Public Utility Commission of Texas regulator Ken Anderson said at the meeting, “I view RUCs as a market failure or a failure by the operators, one or the other,”
• The new reliability desk was first reported this week by Platts after the ERCOT board meeting.

Utility Dive | Texas regulators voice concern over wind’s impact on ERCOT market, reliability

• Mexico is importing huge amounts of piped U.S. natural gas
  • 4.1 Bcf/d and mostly from Texas
• pipeline capacity to export to Mexico will expand by nearly 50% to 11 Bcf/d by summer
• 20 gas pipelines that enter Mexico from the U.S.
• Mexico’s demand for US fuels is growing nby 3-5% per year
• Mexico is also the main source of U.S. LNG,

Forbes  |  Mexico Is Also Importing U.S. Liquefied Natural Gas

Georgia Legislature passed House Bill 413 which crafted an eminent domain compromise for privately owned pipelines that:

• requires a 2 step permit process
  • Permit #1 is environmental and for the length of the entire pipeline
  • Permit #2 is from the Georgia DOT that grants a public need permit to authorize eminent domain
• the permits can be appealed by citizens when the permits are granted

Savannah Morning News | Georgia lawmakers pass compromise pipeline bill

State: Ohio

background: 9 years ago Ohio dopted renewable energy standards

The rational for removing the renewable energy standards: 

• Wind & solar comapnies don’t need the assistance. wind and solar power no longer need the assistance of a state law forcing power companies to support and sell green energy
• Utilities should decide their efficiency programs themselves. It dilutes the requirement that traditional electric utilities reduce peak demand by developing energy efficiency programs for their customers

What does the future of the bill look like in Ohio?

• Gov. Kaisich is expected to veto
• Opposition includes:
  • Ohio Conservative Energy Forum
  • WIRE-Net, a Cleveland-based manufacturing-focused economic development organization

What arguments are made against HB 114’s repeal of renewable standards?

• stops innovation
• curbs economic development
• harms Ohio’s ability to compete with Texas

Ohio House Bill 114 (2017)

Cleveland.com | Ohio House kills state renewable energy standards

• Going digital will be te largest transformation since Thomas Edison
• “Digitalization could squeeze an additional $387 billion from existing electricity assets by managing them better.”
• “digital tools and data analysis to the world’s electric grids could create $3.3 trillion in net economic value over the next 10 years by increasing efficiency and reliability”

As for a message in Texas: “failing to encourage innovation, Texas risks falling behind states that invest in tools that boost efficiency, increase reliability and generate clean energy.”

Houston Chronicle| Texas needs to do better at looking ahead on electricity

State: Michigan

What prompted the net metering study?  What types of rules should be promulgated based on a 2016 bill signed by Republican Governor that required:

• preservation of retail net metering
• tackling efficiency
• tackling demand response
• increasing the state’s renewable energy goal to 15% by 2021.

So what exactly is Michigan’s PUC rulemaking looking to do?

• create new tariffs for distributed renewable projects no larger than 150 kW, generating up to 100% of a customer’s annual use
• “new rules that will allow customers participating in a net metering programs approved before the new tariff to continue to receive service under the terms and conditions of that program for up to 10 years from the date of enrollment.”
• Projects 20 kW and below will qualify for traditional net metering rates
• Projects up to the limit of 150 kW, will utilize a modified rate
• Renewable credits will be owned by the customer
• Application fees cannot exceed $50
• Ccustomers bear all interconnection costs.

Utility Dive | Michigan starts studying costs of distributed generation

• 2nd consecutive quarter with stronger energy activity
• Business activity index is robust at 41.8
• input costs and selling prices — reflected expansion on a quarterly basis

NGI Shale Daily | Dallas Fed Reports Optimism — and Activity — Rising for Oil, NatGas Operators

Background on net metering in Nevada:

• 2015 Nevada’s PUC eliminated net metering
• 2015 Nevada’s PUC set a lower rate with fees
• After the lower rate & fees, the Nevada PUC sets up grandfathering in existing solar customers

What the Legislature is considering in 2017:

• Assembly Bill 270 requires a:
  •  base export rate of at least $0.09/kWh
  • a $0.02/kWh value on the environmental benefits
• AB 270 goals are to:
  • help grow clean energy jobs
  • boost renewable energy industry which decreased after the 2015 PUC action 

Utility Dive | Nevada lawmakers consider bill to restore retail net metering

• El Paso Energy attempted a monthly minimum charge for residential users of solar, wind turbines or battery storage. The charge was denied by the Texas Public Utility Commission.
• “Nationwide, regulators have rejected comparable requests from many utilities.“
• Oncor is asking the Texas Public Utility Commission for similar residential monthly charges of roughly $40.

What do advocates of solar, wind and battery storage say?

• The fee will discourage investment

What support do companies offer requesting the monthly charge?

• these customers cost the utility about $1.6 million in 2016
• the monthly charge is about paying for the electric grid

Dallas Morning News | The new Oncor is going after a new target: Texas homeowners with solar panels

State: California

The legislation: California AB 1405 (2017)

How it works: 

• Defines a four hour peak-load time period around the hour of each day that exhibits the highest peak demand

•  Directs state regulators to determine the percentage of clean kilowatt hours each electric utility delivers.

• In 2020, requires the California Public Utilities Commission to to ensure each utility increases the percentage of clean peak resources it delivers every 3 years for at least 15 days per month. 

Where did this blue state idea come from? A red state- Arizona. The Arizona state consumer advocate proposed tweaks to the state renewable portfolio standard (RPS) that could maximize the value of new capacity by adding a timing

Utility Dive | California bills propose ‘clean peak’ standard to boost renewables deployment

State: Utah

The legislation:  Utah House Bill 23 (2017) 

How Utah phased out solar tax credits:

• rooftop solar tax credit will be phased out by 2021
• the current $2000 tax credit will be reduced by $400 starting in 2018
• $400 annual reduction will continue until the phase out is complete

Utility Dive | Utah governor signs bill to phase out solar tax credit

State: Florida

Utility Project at issue: An 88 mile Florida Light & Power transmission line

The Legislation: Opponents say it overturns a 3 judge ruling requiring the project to follow local development rules by exempting utilities from development regulation

Florida SB 1048 (2017)

Miami Herald | City officials from Miami-Dade urge legislators to reject FPL transmission line bill

• free market means competition throughout the state, not ” single utilities serving wide swaths of Texas”
• Texas has low electricty rates, but the 5th highest energy bills in the US
• Texas current deregulation distorts “balancing energy supply and demand through fluctuating wholesale prices”
• According to a Girddy survey, 42% of Houstonians “want improvements in transparency, timeliness and accuracy of rate and energy usage information”
• Texans should have mobile access to more “demand response” of their electricty needs

Trib Talk | Gregory Craig CEO of Griddy | It’s time to deliver on the promise of electricity deregulation

Is oli & gas development near schools like selling alochol? or, like sexually oriented businesses?

Senate Bill 1868 & House Bill 3403  both seek to limit oil & gas development near schools.

Senate Bill 1868 sets up this regulatory system:

• public hearings for drilling within 1,500 feet of a school or daycare

 House Bill 3403sets up this regulatory system:

• allows municipalities the right to decide whether or not oil and gas companies can drill within 1,500 feet of a school

Fuel Fix | Two bills seek to limit drilling near schools and provide public notice

Ft. Worth Star Telegram | Bill seeks to reclaim local control over oil and gas drilling near schools

State: Connecticut

The legislative benefit: Reclassifying nucelar as a renewable

State: Illinois

The legislative benefit for nuclear: State funding of $325 million a year for 2 nuclear plants

Utility Dive | Connecticut bill would protect Millstone nuke by classifying it as a renewable resource

The pension: CALPERS

The water bank: Willow Springs Water Bank

How does the water bank operate?

• It’s a collection of Los Angeles-area water agencies
• The LA agencies pay fees to store water
• The water stored  bolsters supplies during dry periods

Who: The retired head of Michigan’s Health and Human Services Epidemiology Department

The plea bargain: No contest to  a charge of willful neglect of duty

The sentencing: 1 year probation

Are there more criminal charges coming? Yes, 7 others face crimes up to tampering with evidence

Governing | Ex-Health Official Sentenced to Probation for Flint Water Crisis

What problem is fixed by small modular reactors? The impact of Federal repeals of incentives for wind and solar on renewable energy generation in non-attainment areas.

What is a small modular reactor? 

• a small modular reactor is nuclear energy
• that is a fraction of the size of existing nuclear power plants
• can be built/installed quickly
• less expensive to operate
  • a 50-megawatt SMR has 1/20th as much fuel as a typical nuclear plant
• safer to operate

Do small modular reactors exist?  NuScale, an Oregon-based nuclear company, is seeking certification of an SMR to the Nuclear Regulatory Commission 

How much power is generated? 12 modules generate 600 megawatts

FuelFix | Commentary: An important new electricity source for Texas

Where: Dimmit County

Who: Alphabet Energy Inc.

What is Alpahebet Energy Inc. doing? Using a thermoelectric generator that converts waste heat from flares into electricity at an oil well

What the company says about cost:  cost-competitive with diesel generators and other power sources

San Antonio Business Journal | Tech company turning natural gas flares into electricity in Eagle Ford (slideshow)

The report: by the World Economic Forum, The Future of Electricity: New Technologies Transforming the Grid Edge

What technology is considered part of the sharing economy? Grid Edge Technology

What is Grid Edge Technology? Smart and connected technologies at the end of the electric power grid, such as:

• distributed storage
• distributed generation
• smart meters
• smart appliances
• electric vehicles

Why is this compared to the sharing economy? Because it puts the consumer in charge by:

• producing their own electricity
• storing their own electricity
• consuming electricity at a cheaper time
• selling electricity back to the grid

Modern Diplomacy | Power to the People: How the Sharing Economy Will Transform the Electricity Industry

• Shift chain of command. Florida’s consumer advocate will report to the Attorney General
• Change Appointments to utility commission. Require geographic/regional appointments
• Term Limits for Commissioners.  2- 4 year terms max.

Florida Municipal Electric Assoc. | House Proposes Changes in Utility Regulation

News Service of Forida | House targets changes in utility regulation

Utility Dive | Florida subcommittee advances bill to revise utility regulation

• Homeland Security says Energy has the highest security flaws of all industries
• Gulf waters provide an opportunity for unprotected wireless signals that can hack the concerntration of energy facilities on the Gulf Coast
• Energy Equipment designed decades ago without security features
• “Efforts over the years to link computer networks to devices that monitor pressure or control valves have exposed operations to online threats”
• Oil & gas aren’t subject to the stricter cybersecurity measures required for power, chemical and nuclear facilities

AP | Hackers Drawn to Energy Sector’s Lack of Sensors, Controls

Oil Price.com | Texas Oil Companies Exposed To Major Cyber Threat

The power management tool: virtual power plants

What is a virtual power plant? A way to manage green power and feed it into the power grid as needed

How do virtual power plants operate?

•  By using communication and control technology
• To make a bunch of distributed energy assets act like one big energy asset

Wallstreet Journal | How California Utilities Are Managing Excess Solar Power

The pipeline name:“EPIC” pipeline — which stands for Eagle Ford, Permian, Ingleside and Corpus

The pipeline details:

• 730-mile
• oil carrying pipe
• from West texas to the Gulf of Mexico
• transport  590,000 barrels a day barrels per day of crude oil and condensate
• more than half the size of the Keystone XL pipeline extension that TransCanada Corp. has been trying to build since 2012
• funded by private equity investors

The companies behind the project:

• San Antonio-based midstream company TexStar
• Texas-based midstream company Ironwood Midstream Energy Partners
• Stamford, Connecticut-based commodities trader Castleton Commodities International

Corpus Christi Caller Times | 730-mile pipeline bound for Corpus Christi

The Company: E.ON

The Texas project: The Texas Waves energy storage projects in Pyron and Inadale

The business trend: battery storage for wind energy

The amount of energy that can be stored: Batteries will hold 20 megawatts of power

2017 Goal: 2 large-scale storage solutions providing 9.9 MW of energy to the Texas grid

UPI | German company to store wind energy in batteries in Texas

What regulators are saying:

• 74% of regulators saw “flexibility” for utilities as a benefit of the cloud
• 70% saw it helping utilities keep up with technology changes
• 61% indicated it will give utilities better access to applications

Regulatory common ground:

• Federal Energy Regulatory Commission (FERC) Uniform System of Accounts (USOA) as a rationale for treating cloud computing like onsight software
•  May 2016 New York Public Service Commission order allowing utilities to earn a rate of return on prepaid SaaS subscriptions.
• Illinois is is leading the only regulatory proceeding in the U.S.examining the value of software as a service (SaaS) and cloud computing to utilities.

Utility Dive | Utilities, regulators find common ground in reforms to encourage cloud computing

Why did the earthquake risk decline? “fewer felt earthquakes occurred in 2016 than in 2015”

Are  there caveats on the decrease? 

• ““The forecast for induced and natural earthquakes in 2017 is hundreds of times higher than before induced seismicity rates rapidly increased around 2008,”
• Texas has an enhanced hazard from induced seismicity
• The decrease in Texas earthquake activity is liekly due to a decrease in injection wells

USGS | New USGS Maps Identify Potential Ground-Shaking Hazards in 2017

Dallas Morning News | Are earthquakes gone from our area for good?

State: Arizona

The result of the rooftop solar rate case in Arizona: new rooftop solar customers would be paid $0.129/kWh for excess energy exported to the grid

The details:

• export rate declines 10% annually for new rooftop solar systems
• customers lock in rates for 10 years at sign up
• Solar energy consumed by end users themselves would be valued at about $0.105/kWh
• offset rate would be lower for demand charge rate options, likely between $0.096 and $0.078/kWh
• time-of-use rates
• residential demand charges
• 20-year grandfathering period

Utility Dive | Arizona Public Service, solar industry reach critical rate case settlement

Consumers benefit from Mexico’s deregulated energy market by:

• enhanced energy security
• energy resiliency from this integrated production platform
• Mexico’s growing export market has helped U.S. producers survive
• Increased exports to Mexico frees up capital to ensure oil and gas exploration and production

The Hill | Energy Policy Research Foundation| US consumers benefit from energy integration with Mexico, Canada​

Eminent Domain and the Plains States go together like Coffee and Fika. 

What’s the new twist in eminent domain legislation in Nebraska? 

• Preventing public utilities from using eminent domain to aquire privately owned electric generation or transmission facilities.
• Not giving private developers eminent domain authority

Are these intra-industry eminent domain fights du rigor in Nebraska? Yes, in 2016, Nebraska passed a bill to prevent public power districts’ authority to use eminent domain to seize renewable energy facilities

Does the 2017 bill have any carrots for private electric companies? Yes

• Deregulation 
•  if certain benchmarks are met, it will exempt privately developed electric generation/ transmission facilities from review by the Nebraska Power Review Board

Nebraska LB 547 (2017)

Unicameral Update | Bill would shield private electric facilities from eminent domain

State: Utah 

The Legislation: Phase out current solar tax credit, reducing it by $400 in year one, until a complete phase out on 1.1.2022.

The current tax credit for solar: $2,000 credit 

The selling point: Adds  $5.4 million to public education funding 

Utah’s House Bill 23 (2017) 

Salt Lake Tribune | Legislature sends governor bill to phase out solar income-tax credit

• District heating & cooling. Centralizing heating & cooling via a main source allowing a central plant to be advanced to use more sustainable and clean forms of fuel
• Tree power.  Using waste from the forest industry to generate heat and power
• Geothermal heating to capture body heat.  Heating public buildings by using human generated heat.

Sweden.se | 7 EXAMPLES OF SUSTAINABILITY IN SWEDEN

The water way: Upper San Saba River

The Management Plan delegation at issue: Granting a private board the power to regulate all diversions from the Upper San Saba River 

What did the Attorney General Opinion Say? 

• Maybe it goes too far, maybe not. It’s a question of fact for the courts. 
• There’s a 8 part test from the TX Supreme Court to figure this out.
• In that test, that some of the board members may have a pecuniary interest weighs against a constitutional delegation, but there 7 other equally important factors.

KP-0133

What CPS Entity is rescuing animals at power plants? Worthwhile Animal Rescue Mission (WARM), a non-profit founded by CPS in 2011

Do they work with breed specific rescues? Yes, they transfer rescued animals to breed specific rescue organizations for home placement or transfer an animal to a no-kill shelter

How many animals have been helped since 2011? 203

How do CPS employees contribute? By volunteering with WARM  to help animals that have been abandoned near power plants 

San Antonio Express News | CPS Energy’s nonprofit rescues stray animals found at power plants

Where: Michigan

What are lawmakers saying in Michigan about smart meters? 

• This is a property rights issue. Property owners have a property right in rejecting smart meters without any cost to the property owner.
• This is a data security issue. A more connected world means invitations for hackers.

Michigan HB 4220 (2017)

Advocacy Group: Texas Energy Advocates Coalition

TEAC is based in : San Antonio

Founded by: Kym Bolado with Shale Magazine

TEAC’s purpose: connect regular people & members of the business community with the energy industry.

First ever TEAC day at the Texas Capitol: February 22, 2017

San Antonion Business Journal | SA-based group to hold Citizens for LNG & Energy Day at state capitol

The Companies involved: Howard Energy Partners, Watco, Ferropuerto Midstream

The transportation project: Rail from Houston to Aguascalientes in North Central Mexico

Completion Date: November 2017

The products carried through the terminal:  gasoline, diesel and liquefied petroleum gas

Tank Terminals | Mexican Company to Build Fuel Rail, Storage Terminal in Mexico

Where: North Dakota

The bills:

• Criminalize the wearing of masks for adults, most of the time
• Increase penalties for rioting
• Increase penalties for trespassing

The catalyst: The protests at Dakota Access pipeline

Bismark ND | Daily Journal | North Dakota Senate OKs bills aimed at pipeline protesters

In 2016, here’s how the import-export picture looked like between the U.S. and Mexico

• U.S. energy exports to Mexico tallied $20.2 billion
•  U.S. energy imports from Mexico tallied $8.7 billion
• 9% of crude imports into the US come from Mexico
• Crude imports were approximately 588,000 barrels per day
• U.S. sent 849,000 barrels per day of petroleum products to Mexico
• U.S. imported only 87,000 barrels of petroleum products per day from Mexico
• Natural gas exports tallied 3.8 billion cubic feet per day

Midland Reporter Telegram | US exports more energy products to Mexico than it imports

A report in Nature Energy by Robert Fares and Michael Webber says that:

• battery storage system could reduce peak power demand by 8% to 32%
• battery storage system could reduce peak power injections by anywhere from 5% to 42%
• storage inefficiencies increase annual energy consumption on average by 324 kWh to 591 kWh per household
•  storage indirectly increases emissions of carbon dioxide by 153 to 303 kilograms, of sulfur dioxide by 0.03 to 0.20 kg, and of nitrogen oxide by 0.04 to 0.26 kg per household.

The data is based on home usage in Austin, TX.

Yes, you read that correctly, energy storage inefficiencies increase energy consumption under current capacity and storage.

Utility Dive | Residential storage can undercut benefits of rooftop solar, says new study

In the States:

• American Wind Energy Association passed conventional hydropower dams to become the largest source of renewable electricity capacity in the U.S
• Wind is the 4th largest power source overall
• There’s a catch on the #1 ranking, if you take into account both conventional hydroelectric dams & pump storage power hydropower remains #1 renewable in the US

In Europe:

• Wind surpassed coal to be Europe’s #2 power source
• Wind accounts for 16.7% of Europe’s power
• #1 power source in Europe is natural gas

The Hill | Wind tops nation in renewable energy capacity for first time

FuelFix | Wind power surpasses coal in European energy market

State:  New York

Data sharing requirement: New York’s  Reforming the Energy Vision

What former FERC Chair Jon Wellinghoff​ Says: “The sharing of distribution-level data by New York utilities can fundamentally change the way utilities and third-parties operate not just in New York, but throughout the whole country,” 

The goals of utility data sharing: more clean resources and cut consumer costs

The concerns about data sharing:  utility data privacy issues & sharing infrastructure data around airports and other high risk facilities

Utility Dive | How utility data sharing is helping the New York REV build the grid of the future

A bill in California calls for public funds to be divested from interests in Dakota Access Pipeline. CALPERS wants to keep these investments whcih include investments in Wells Fargo.

What argument is offered against divestment?

• ““Investors that divest lose their ability as shareowners to influence the company to act responsibly”

Also this week, Seattle voted to divest from Dakota Access Pipeline.

Sacramento Bee | CalPERS wants to keep investments in Dakota Access pipeline

4 Regional Chairs of the Texas Energy Caucus.

The Chair of East Texas: Jay Dean

Longview News Journal | Jay Dean chosen as leader of energy caucus