Midwestern Governors’ Energy and Jobs Accords Rolf Nordstrom Executive Director GREAT PLAINS INSTITUTE Mid-America Regulatory Conference June 7, 2010

Non-partisan, non- profit corporation based in Minneapolis 12 years old Mission: to accelerate transition to a sustainable and low- carbon energy system. The region we serve

Great Plains Institute Working on tomorrow’s energyh solutions with today’s leaders World needs solutions that are: Pro-people. Pro-business. Pro-environment. Founded on the belief that...

Great Plains Institute Working on tomorrow’s energy solutions with today’s leaders A “Think & Then Do” Tank Consensus policy Applied Research Outreach & Education Technology Demonstration

Developing an opportunity-oriented Midwestern Response... To the perfect storm of energy volatility, manufacturing & job loss.

Consensus Upper Midwest Roadmap Released June 2007

PTP Roadmap = seeds for pan- Midwestern Governors Accords –Co-chairs: WI Gov. Doyle & MN Gov. Pawlenty –MGA footprint + Manitoba –Staffed by Great Plains Institute and others November 14-15, 2007

Steering Committee of Governors’ Energy Advisors Midwest Governors Association Energy Security & Climate Stewardship Platform 2007 Energy Security & Climate Stewardship Platform 2007 Setting Table for New Energy Ecomomy Energy Efficiency Advisory Group Renewable Electricity & Advanced Coal w/CCS Advisory Group Bioeconomy & Transportation Advisory Group Jobs in the New Energy Economy Advisory Group Nov Oct. 2009

Goals in MGA Energy Roadmap

Energy Efficiency Goal “Meet at least 2% of regional annual retail sales of natural gas and electricity through energy efficiency improvements by 2015, and continue to achieve an additional 2% in energy improvements every year thereafter” Measured annually from baseline of rolling average of previous three years’ retail sales.

Bioenergy & Transportation Goals by 2025 : 1.Increase availability of low-carbon fuels by 10-fold. 2.Reduce fossil fuel inputs to biofuels by half. 3.Meet half the region’s transportation demand with biofuels and other low-carbon fuels.

Renewable electricity goals 10% by % by % by As of May 2009, MISO has ~8000 MW of wind on line 2.Need 25,000 MW to meet region’s RPS’s 3.30% target = 75,000 – 100,000 MW

Advanced Coal w/CCS Goals By 2012: A multi-jurisdiction CO2 pipeline sited and permitted. By 2015: Commercial IGCC with CO2 capture using both eastern & western coals (MGA states have 25% of U.S. recoverable reserves). By 2020: all new coal plants have CCS. By 2050: entire coal fleet is transitioned to CCS.

Midwestern Energy Infrastructure Accord Critical infrastructure elements necessary to achieve MGA energy & jobs goals: 1. Regional Transmission 2. Alt. fueling infrastructure 3. CO 2 mgmt. infrastructure 4. Coherent SmartGrid development

Sample Recommendations Most relevant to utility commissioners...

Energy Efficiency Recommendation Make it profitable for regulated utilities to achieve energy efficiency, including cost recovery.

Energy Efficiency Recommendation Require new public buildings to substantially exceed codes in force at the time of construction. a)20% of all government buildings should be re-commissioned and improved to meet or exceed current energy codes by 2015 b)An additional 3% of buildings improved annually in each subsequent year.

Renewable Electricity Recommendation Support cost allocation formula for regional transmission that equitably distributes costs among all Midwest ISO electric customers. Including acceptable percentage of costs allocated to generators and transmission operators.

Renewable Electricity Recommendation Every utility commission should have authority to take regional benefits into account when considering transmission lines.

Advanced Coal w/CCS

Advanced Coal w/CCS Recommendation Every MGA jurisdiction should strive to have a comprehensive statutory framework for CO2 transport, injection and storage in place by 2010: –Authority and appropriate mechanisms to enable acquisition of transportation corridors for pipelines. –Long-term storage in oil and gas and deep saline formations (including property rights, financial responsibility and liability for long-term site stewardship).

Advanced Coal w/CCS Recommendation Establish carbon storage utilities operating on an inter-jurisdictional, geologic basin- wide scale.

Governor Strickland’s 2010 “Chair’s Agenda” for MGA 1. Improving investment environment in Midwest & improving access to capital. 2. Ensuring region's workers have necessary skills for advanced energy jobs.

How can we be most helpful to your state?

Possible Next Steps 1.Briefings for fellow regulators and/or state energy officials in your state. 2.“Mini-Roadmaps” tailored to your state using our Energy Choice Simulator computer model.Energy Choice Simulator Sample Output from the Simulator

To track this work

Rolf Nordstrom Executive Director Thank You!