Virginia Energy Patterns and Trends (VEPT) and Opportunities Under the Carbon Management Initiative Michael Karmis, Director Virginia Center for Coal and Energy Research, Virginia Tech Joint Meeting, Commission on Electric Utility Restructuring and the Virginia Coal and Energy Commission, Richmond, Virginia, September 8, 2004

Outline Virginia Energy Patterns and Trends: Process and Progress. Energy and Electricity Projections: Sources and Updates. Carbon Management: Status and Opportunities.

Virginia Energy Patterns and Trends (VEPT) A comprehensive database of the energy industries of the Commonwealth. On-going project of the Virginia Center for Coal and Energy Research (VCCER), sponsored by the Virginia Department of Mines Minerals and Energy (DMME) and the U.S. Department of Energy.

VEPT Goals Serve as an authoritative reference source for data and information on energy production, distribution/transportation, consumption and use in Virginia. Serve as an information and learning resource to the legislature and the general public on the energy economy of the commonwealth. Provide information that can assist and support choices by energy companies, government entities, consumers and the general public.

VEPT Look and Functionality Over 400 Data Tables, Charts, Maps and Figures. Links, Links, Links! Pages are generated using dynamic code reading from a central database, i.e. –Flexible –Simple to update

VEPT Use VEPT is a unique state resource, offering a single access point to comprehensive energy data. Over 200,000 hits (550 per day) in FY01. Most were from Virginia agencies (i.e. DMME and VT) In FY03, almost 700,000 hits (1,900 per day) AOL and RoadRunner users are now the most frequent visitors, indicating high public use. The Coal, Gas and Electric sections of VEPT have always been the most popular hits.

VEPT Data Sources Major Sources: –Energy Information Administration (EIA), US DoE –Virginia Department of Mines Minerals and Energy (DMME) Division of Mines Division of Gas and Oil Division of Mineral Mining Other Sources: –State Corporation Commission (SCC) –Virginia Employment Commission (VEC) –Virginia Department of Environmental Quality (DEQ)

VEPT Data Format Data presented in interrelated categories: –Energy Overview, Coal, Electricity, Natural Gas, Petroleum, Renewable Energy, Energy Education and Carbon Management Data analysis: – Data grouping –Accuracy checks –Comparison between sources –Reformatting –General narratives

Carbon Management Narrative Fuel Cells Carbon Emissions Categorized Links

Education Section Quick source of energy information for Virginia teachers and students

VEPT Current Initiatives Printer friendly options Downloadable data in CSV format Complete XML-based architecture Multimedia videos in energy education Continued evaluation and update, as data sources become available

VEPT Contact Information Steve Schafrik, Research Associate (540) Margaret Radcliffe, Project Manager (540) Virginia Center for Coal and Energy Research (0411), Virginia Tech, Blacksburg, VA 24061

EIA/DOE Energy Projections

U. S. Electricity Generation by Fuel (billion kilowatt-hours)

Virginia Electricity Generation by Fuel (2002)

Electricity Market Module Regions (EMM)

Projected Electricity Generation for EMM Regions ( )

Projected Electricity Generation for the USA and EMM Regions ( )

Virginia and the “PJM” Regional Transmission Organization (RTO) Greater access to a broader area of power generation Power optimally dispatched over a much larger region with associated increases in efficiency Reduction in the price of generation capacity Greater load diversity Improved reserve sharing across the region The net effect is that Virginia companies will not need to build or contract with as much capacity under PJM

Carbon Sequestration and the Global Climate Change Initiative The goal of the Global Climate Change Initiative (GCCI) is to reduce greenhouse gas intensity by 18% to Capturing and permanently storing gases that contribute to global climate change (Carbon Sequestration) is a key component of GCCI. Geographical differences in fossil fuel and sequestration sinks across the US dictates that regional approaches will be required to address sequestration of CO 2.

The Seven Carbon Sequestration Regional Partnerships The partnerships include more than 140 organizations spanning 33 states, three Indian nations and two Canadian provinces. They include participants from industry, organizations, state agencies, universities and associations

The Southeast Regional Carbon Sequestration Partnership (SECARB) The SECARB is led by the Southern States Energy Board. The SECARB will pinpoint CO 2 sources and sinks as well as transport requirements for eleven states, and enter these data into a geographic information system database.

The Southeast Regional Carbon Sequestration Partnership Partners Southern States Energy Board Tennessee Valley Authority (TVA) Public Power Institute (PPI) Massachusetts Institute of Technology Mississippi State University (MSU) Diagnostic Instrumentation Analysis Laboratory (DIAL) Winrock International Electric Power Research Institute Geologic Survey of Alabama Advanced Resources International Applied Geo Technologies Augusta Systems Inc. RMS Research Susan Rice and Associates The Phillips Group RMS Research Interstate Oil and Gas Compact Commission Southern Company Duke Power Tampa Electric Company Progress Energy SCANA Center for Energy and Economic Development North American Coal Corp. Clean Energy Systems, Inc. VCCER, Virginia Tech Marshall Miller and Associates Industrial Partners

Southeast Regional Carbon Sequestration Partnership/Virginia VCCER is providing project coordination and management. VCCER and Marshall Miller and Associates (MMA) are working together to analyze the potential for carbon sequestration within the Commonwealth of Virginia (technical and socio-economic issues). A team form the Colleges of Agriculture and Life Sciences and Natural Resources, at Virginia Tech, is addressing terrestrial sequestration models. Industrial partners have contributed cost-sharing funds and include major coal, utility and land holding companies. Industrial sponsorship satisfies the cost-sharing commitment to DOE, under this proposal.

Legislation Issues for Voluntary Carbon Management Throughout the United States, state legislators have taken the lead in drafting and advancing legislation to assist in facilitating voluntary GHG and carbon management activities in their states. –Development of studies and creation of advisory bodies on carbon management (e.g., Idaho and South Dakota) –Adoption of voluntary GHG and carbon emissions registries (e.g., California, Georgia, and New Hampshire) –Passage of legislation to encourage terrestrial sequestration activities (e.g., Oklahoma).

Example from the State of Georgia Georgia's Carbon Sequestration Registry Act, Senate Bill 356 was passed during the 2004 legislative session. The Act: –E stablishes a statewide Carbon Sequestration Registry on CO 2 terrestrial storage in agriculture and forestry. –This storage, or sequestration, offsets greenhouse gas emissions that arise from sources such as factories and automobiles. –The registry can promote the development of a carbon credit market. –Georgia has the potential of becoming an attractive market for carbon transactions.

Global Climate Change Initiative (GCCI) DoE Carbon Sequestration-PHASE II Project Guidelines Soon Some Demonstration Sites Creation of New Partnerships Significant Cost-sharing Virginia Opportunity: New Coal-Fired Power Plant as a CO 2 Demonstration Site

Finding effective means of sequestering carbon can help coal remain a major component in meeting our energy needs!