Utilities slow to meet standards toward goal of reducing reliance on coal, researchers say.
September 17, 2010
By Dan Gearino
Signed in 2008 by Gov. Ted Strickland, Senate Bill 221 requires investor-owned electric companies such as American Electric Power to generate 25 percent of their electricity from advanced or renewable sources by 2025.
Two years after it was enacted, a state energy law has led to more jobs and cleaner air.
But the law is too easy to flout and isn't ambitious enough in its goals, according to a report from Policy Matters Ohio, a nonprofit research group.
"This is a great law, and we have to make sure to enforce it," said Amanda Woodrum, a researcher in the group's Cleveland office. "It's critical to make sure utility companies follow through."
Signed in 2008 by Gov. Ted Strickland, Senate Bill 221 requires investor-owned electric companies such as American Electric Power to generate 25 percent of their electricity from advanced or renewable sources by 2025.
Of that total, 12.5 percent must come from renewable sources, such as wind and solar. The companies have rising benchmarks each year for renewable and solar energy.
Supporters of the law hoped to reduce the state's reliance on coal and attract jobs related to renewable energy. In exchange for meeting the requirements, utilities gained greater freedom to raise prices.
Policy Matters lists statistics from other sources about the reduction in pollution and the likelihood of new jobs.
For example, the authors cite a 2008 study by the Center for American Progress that predicted the creation of 3,600 direct and indirect jobs this year related to the law. The report also cites several examples of job growth, such as DuPont's continuing expansion in Circleville to make solar-power components, leading to 70 new jobs.
For all the enthusiasm tied to the law, its supporters have had their share of disappointments.
"I think we are making strides, and that's what you need to look at - the total picture," said Terri Flora, spokeswoman for AEP Ohio. At the same time, AEP continues to rely heavily on coal.
Other utilities have not been as decisive with solar power, and Policy Matters wants regulators to take a firm hand when deciding whether to issue fines, which is the penalty allowed by the law.
Among the other recommendations:
• Expand the energy standards to require greater efficiency by natural gas utilities.
• Convene a state panel to study biomass power and determine whether that source of energy, from burning plant matter, is truly renewable and efficient.
• Simplify the utilities' reporting of compliance, requiring each company to issue a five-page summary about the programs, costs and results.
Flora said Policy Matters' recommendations might have merit, but they also likely will lead to higher costs for customers. "When you're looking at anything, you need to have a balance between the rate impact and the requirements," she said.
Why 25x'25 Is Good for Agriculture and Forestry
ReplyDelete25x'25: Growing our Energy Future-Solutions from the Land
American farms, ranches and forests, our working lands, are well positioned to make significant contributions to the development and implementation of new energy solutions. Long known and respected for their contributions to providing the nation's food and fiber, an emerging opportunity exists for crop, livestock, grass and horticultural producers, as well as forest land owners, to become major producers of another essential commodity-energy.
Consider these facts:
• The current petroleum-based energy paradigm is no longer sustainable.
• Our nation and the world are looking for new energy solutions.
• Energy, economic development, national security and environmental quality are inextricably linked.
Corn and soybean producers have shown how the agricultural sector can become modern-day energy providers. But America's farms, forests and ranches can play a much larger role in providing renewable forms of energy. "Home grown" energy solutions offer tremendous potential for producers, landowners and processors to capture income; for rural communities to prosper; and for the nation to lessen its dependence on foreign oil.
Through emerging technology, farmers, ranchers and woodland owners can:
• Produce biomass and turn plant residues, processing byproducts and animal wastes into value-added energy feedstock and bio-based products.
• Generate electricity by harnessing wind and solar energy and capturing and converting biogas emissions.
• Dramatically increase the production of liquid transportation fuels.