Green Engineering: A Legislative Perspective IEEE-USA 2008 Annual Meeting April 2008 Indianapolis Bill Williams Senior Legislative Representative IEEE-USA

Green Engineering Discussion Outline: About IEEE-USA Overview of Energy Policy Committee Background and History of Renewable Energy Development Energy Legislation in the 110 th Congress Barriers to Alternative Energy EPC Action Policy Resources

About IEEE-USA IEEE-USA - Representing the unique interests of IEEE members in the United States Staff of 23. Office in Washington, DC. Over 750 active volunteers. Five program areas include Career/Member Services, Professional Activities, Government Relations, Communications, Public Awareness

Who is IEEE-USA Government Relations Department 4 GR Representatives Grassroots Press Relations Support Staff

About IEEE-USA Government Relations Committees Career and Workforce Policy Committee Committee on Communications Policy Committee on Transportation and Aerospace Policy Critical Infrastructure Protection Committee Government Fellows Committee Intellectual Property Committee Medical Technology Policy Committee Research and Development Policy Committee Energy Policy Committee

Made of Representatives from: Utility Companies Academics Entrepreneurs Consultants NERC Department of Energy Federal Energy Regulatory Commission

Energy Policy Committee My Background: Navy Nuclear Power Congressional Staff – worked on members personal staff for House Energy and Commerce Committee IEEE-USA since 2000 Issues: Energy Policy Transportation and Aerospace Research and Development

One definition: Energy derived from resources that are generally not depleted by human use, such as: Sun Wind Water Movement Renewable Energy Source: Congressional Research Service

Energy crisis of the 70s spurred the federal government to enact renewable energy policies: Energy Tax Act of 1978 – 4 cents/gallon excise tax exemption for ethanol blended into gasoline Public Utility Regulatory Policies Act (PURPA) of 1978 – required electric utilities to purchase electricity produced from renewable resources History and Background Source: Congressional Research Service

PURPA Goals: To reduce oil use by encouraging the use of renewable energy for power production Encourage the use of renewable energy Spur competition to help keep prices down History and Background Source: Congressional Research Service

This was largely successful; especially in California: In the Early 1980s, influenced by PURPA and state and federal incentives, California launched commercial deployment of wind and solar energy Early large scale wind farms in particular were the results of these state and federal policies History and Background Source: Congressional Research Service

Today California has three major wind farms: Altamont Pass Tehachapi (near Bakersfield) San Gorgonio (near Palm Springs) Over 13,000 wind turbines In 2004, wind energy in California produce 4.3 million kilowatt-hours of electricity In 1995, this was 30 percent of the entire worlds wind energy production History and Background Source: American Wind Energy Association

Key factors for California wind boom: High winds near coastal cities which correlate fairly well with peak a/c demands in the summer 15% federal energy credit 15% investment credit 50% state energy credit State mandates History and Background Source: Congressional Research Service

San Gorgonio Pass Source: Wikipedia

Texas wind energy boom driven largely by Plentiful land Plentiful wind Favorable business and permitting climate Texas Senate Bill 7, passed in 1999, mandating a Renewable Portfolio Standard of 2,000 MW of additional renewable energy by 2009 That was met by 2005! Since SB 7 was passed, wind energy development in Texas has quadrupled History and Background Source: State Energy Conservation Office

Texas now has is the leader in wind power production: Texas has 4,356 MW of installed capacity California has 2,439 MW of installed capacity 16,800 MW Nationwide 48 billion kwh Enough to serve 4.5 million households 1 percent of U.S. electricity supply History and Background Source: American Wind Energy Association

Wind energy by states in installed MW: History and Background Source: American Wind Energy Association

Global wind power capacity has escalated to over 90,000 Megawatts in The growth in wind power capacity was nearly four times the growth in nuclear power capacity. History and Background Source: GWEC; Worldwatch

Early 1990s the Persian Gulf War and emerging concern about global warming re-ignited interest in renewable energy policy: In 1992 the US signed the UN Framework Convention on Climate Change. Signed into law the Energy Policy Act of 1992 Made Permanent the 10 % business investment tax credit for solar and geothermal equipment Created a new renewable electricity tax credit of 1.5 cents per Kilowatt-hour History and Background Source: CRS

Significant barriers still exist to widespread penetration of renewable energy resources Wind Pros Free (if available) Reasonable cost. Well suited to rural areas. Barriers to Renewable Energy

Wind Cons: Limited to windy areas. Limited to small generator size; need many towers. Need expensive energy storage (e.g. batteries) Can affect endangered birds. NIMBY! (Not in My Back Yard) Barriers to Renewable Energy

Solar Pros: Sunlight is free when available Barriers to Renewable Energy

Solar Cons: Limited to southern areas of U.S. and other sunny areas throughout the world (demand can be highest when least available, e.g winter solar heating) Does require special materials for mirrors/panels that can affect environment Current technology requires large amounts of land for small amounts of energy generation Barriers to Renewable Energy

Consumers NOT willing to pay more European Commission estimated that it would cost $220 per month per house on average to significantly cut greenhouse gases. When asked how many in the United States would be willing to pay this amount: Completely likely – 2% Very likely – 4% Fairly likely – 8% Somewhat likely – 16% Not likely at all – 71% Barriers to Renewable Energy Source: Harris Interactive

Conditions converging to push renewable energy legislation again: Global warming War in the Middle East Record high oil and gas prices Approaching $120/Barrel Gas over $3.50 average in US Renewable Energy in the 110 th Congress Source: CRS

Renewable Energy is Still a Hot Topic on the Hill More than 280 bills on energy efficiency and renewable energy have been introduced in the 110 th Congress About 1/3 focus on renewable fuels About 1/3 provide incentives for investment, energy production, fuel use, or fuel reduction DOEs FY2009 budget request seeks $1,025 million for DOEs Energy Efficiency and Renewable Energy (EERE) programs Renewable Energy in the 110 th Congress

Last year Congress passed and the President signed into law the Energy Independence and Security Act of 2007: Increased Corporate Average Fuel Economy (CAFE) Standards to 35mpg by 2020 Increased bio-fuel production Improved efficiency standards for appliance and lighting Included incentives for Plug-In Hybrid Electric Vehicles Included provisions for Smart Grid Implementation Did NOT enact a Renewable Portfolio Standard Did NOT contain extension of renewable tax credits Renewable Energy in the 110 th Congress

Renewable Energy is Still a Hot Topic on the Hill Congress still trying to find a way to pass legislation extending the renewable energy tax credits Problem is PAYGO (Pay-as-you-go) rules requiring offsets for any new spending Congress wants to rescind oil company tax credits to pay President has promised a veto, saying that would raise gas prices and hurt consumers Renewable Energy in the 110 th Congress

Reality: Nothing (major) likely to get done this year Lame duck President Contentious election year Divided Congress Ideological divisions even within the parties Not enough time Congress will punt on most major issues, including funding bills until the next Congress Renewable Energy Outlook

Energy Policy Committee Priority Issues and Activities: Energy Independence Plug-in Hybrid Electric Vehicles Fuel Diversity Clean Fuels Smart Grid

Energy Policy Committee Plug-In Hybrid Electric Vehicles Standard hybrid vehicle with a rechargeable battery A plug-in vehicle could get up to 100 miles per gallon of gasoline. The cost of an electric gallon of gas is estimated to be less than $1.00 per gallon. Batteries available now offer from 20 to 200+ mile ranges Every additional 10 miles of vehicle range in electric mode adds about $1,000 to the cost. Source: Plug-In America

Energy Policy Committee Smart Grid Definition: Using the power of broadband communications and advanced computing to upgrade the electric power grid so that it can operate more efficiently, reliably and safely. Uses two-way, broadband communications, advanced sensors and computers to improve the efficiency, reliability and safety of power delivery and use. Mandated by the Energy Independence and Security Act of 2007 (EISA) Source: Smart Grid Alliance

Helped pass legislation recognizing one single standard for interconnection of distributed generation (IEEE 1547), making it easier for DG owners to connect to the electric grid Worked with a coalition to pass legislation creating a North American Electric Reliability Council (NERC) with the authority to set reliability standards and enforce them Working with other stakeholders to implement Smart Grid Provisions of Energy Independence and Security Act How IEEE-USA is Making a Difference

Plug-In Hybrids: Accelerating Progress 2007Co-sponsored the Plug-In Hybrids: Accelerating Progress 2007 symposium in September attended by 140 including U.S. Senator Maria Cantwell of Washington State, former CIA Director R. James Woolsey, and FERC Commissioner Jon Wellinghoff GridWeek 2008 Co-sponsoring GridWeek 2008 in September with other stakeholders to develop and promote the Smart Grid agenda and to educate on strategies and deployment of Smart Grid How IEEE-USA is Making a Difference

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For more information on EPC Activities, go to For More information on the Electric Grid go to Energy Policy Committee Resources

Position Statements The following energy policy-related positions have been adopted by IEEE-USA: Plug-in Hybrid Electric Vehicles Advanced Nuclear Power Research and Development Benefits of Increased Electrification Electric Power Reliability Organization Energy Efficiency Existing Nuclear Power Plants Fusion Energy Research & Development Hybrid Electric Vehicles and Electric Transportation Photovoltaic Technology Development Principles for a Restructured Electric Industry Standards for Interconnection of Distributed Energy Resources Solar and Other Renewable Energy Technologies Energy Policy Committee Resources

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Contacts For More Information Bill Williams (Aerospace, Energy, R&D, Transportation Policy Issues) or Deborah Rudolph (Communications, Medical Technology Policy, Critical Infrastructure) or Vin ONeill (Career/Workforce issues, Licensure and Registration, PreCollege Education) or Russ Harrison (Grassroots) or Erica Wissolik (Intellectual Property, Government Fellowships, WISE Interns) or