Complying with Act 141: Renewable Electricity Consumption at State Facilities

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Complying with Act 141 Renewable Electricity
Consumption at State Facilities

• Prepared by
• Jennifer Blonn, Erik Johnson
• Hy Matz and Nicholas Sayen 

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Presentation Outline

• Act 141
• Purpose of Project
• Alternatives
• Assessment Criteria
• Analysis
• Recommendation

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ACT 141

• Governor Doyles Task Force on Energy Efficiency
  and Renewables
• Published on March 31, 2006
• State facilities must acquire 10 percent
  renewable electricity by December 31, 2007 and 20
  percent by December 31, 2011

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Purpose

• To advise the Department of Administration in
  complying with the 2007 renewable electricity
  targets outlined in Wisconsin Act 141

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Renewable Electricity Generation Background

• Energy Independence Global Warming
• 26 States have Renewable Fuel Portfolio Standards
  (RPS) for Utilities
• 6 States have Standards for State Facilities (as
  of February 2007)
• Iowa, Maryland, New Jersey, Oregon, Pennsylvania,
  Wisconsin

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Four Policy Alternatives

• Source Environmental Protection Agency in
  collaboration with the Department of Energy, the
  World Resources Institute and the Center for
  Resource Solutions
• Alternative One Purchase renewable
  electricity from local utilities that invest in
  IN-STATE resources to meet Act 141s 2007 target

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Four Policy Alternatives

• Alternative Two Purchase renewable
  electricity from local utilities that invest in
  OUT-OF-STATE resources to meet Act 141s 2007
  target
• Alternative Three Generate renewable
  electricity at state facilities
• Alternative Four Purchase renewable energy
  credits (RECs)

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Evaluation Criteria
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Promote a Healthy Natural Environment in
Wisconsin

• Assumptions
• Purchasing from Utilities Self-Generation
• Rated Good
• Purchasing RECs
• Rated Poor because decreased conventional
  electricity generation in the region will not
  result

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Foster a Strong State Economy

• Alternatives that utilize in-state generation
• Rated Excellent for reducing Wisconsins
  dependence on out-of-state energy fostering job
  growth in Wisconsin
• RECs
• Rated Poor for reducing Wisconsins dependence
  on out-of-state energy fostering job growth in
  Wisconsin
• Purchasing from utilities with electricity
  generated out-of-state
• Performs similarly to RECs, but does slightly
  better in fostering job growth in Wisconsin

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Maximize Feasibility

• Purchasing from utilities
• Performs Excellent with respect to minimizing
  DOAs regulatory oversight costs maximizing
  political support based on adoption in other
  states
• Self-Generation
• Performs Poor in both feasibility impact
  categories
• RECs
• Performs Excellent in minimizing DOAs
  regulatory oversight costs
• Performs Fair in maximizing political support
  because it has a limited track record of adoption
  in other states

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Maximize Efficiency

• Purchasing from utilities with in-state
  generation
• Excellent in terms of minimizing cost per kWh
  promoting the long-term cost efficiency of
  renewable electricity in Wisconsin
• Purchasing from utilities with out-of-state
  generation
• Good in terms of minimizing cost per kWh
  promoting the long-term cost efficiency of
  renewable electricity in Wisconsin

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Maximize Efficiency

• Self-Generation
• Rated Poor in terms of minimizing cost per kWh
• Rated Fair in terms of promoting the long-term
  cost efficiency of renewable electricity in
  Wisconsin
• RECs
• Rated Good in terms of minimizing cost per kWh
• Performs Poor in terms of promoting the
  long-term cost efficiency of renewable
  electricity in Wisconsin

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Recommendation

• Purchase renewable electricity from local
  utilities that invest in IN-STATE resources to
  meet Act 141s 2007 target
• Promote a Healthy Natural Environment in
  Wisconsin Good
• Foster a Strong State Economy Excellent
• Maximize Feasibility Excellent
• Maximize Efficiency Excellent

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Recommendation

• Not mutually exclusive
• Second Local utilities, out-of-state resources
• Third RECs
• Last On-site generation

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Questions