Thank you Chairman Schuler, and members of the committee for the opportunity to speak with you today about Senate Bill 221. My name is Erin Bowser and I am the Director of Environment Ohio, a non- profit, environmental advocacy organization.  First I want to thank Governor Strickland and his staff as well as all of the committee members and their staff who have dedicated so much time and effort to crafting energy policy for Ohio’s future.  Today I will again focus specifically on the advanced energy standard component of Senate Bill 221. 

Regarding the sub-bill , we applaud your decision to keep the requirement that utilities obtain at least 12.5% of their electricity from clean, renewable energy sources like wind and solar by 2025.  Regarding the advanced sources, we were disappointed to see that the 80 percent carbon-capture and sequestration requirement for advanced coal was removed, and that power generated from future nuclear power plants could be counted as an advanced energy resource. 

One change in the senate sub-bill that I would like to focus on today and urge you to re-consider before voting has to do with enforcement of the advanced energy requirement.  The original bill did not include specific or strong enforcement mechanisms such as benchmarks or penalties to ensure that utilities would comply with the renewable energy requirement, however it did leave the door open for the Public Utility Commission of Ohio to establish its own criteria for how it would enforce the standard between the time legislation was enacted and 2025. Now, the changes to the language in the sub-bill make the advanced energy requirement un-enforceable until 2025.

As the committee prepares for the final introduction of amendments and a vote, I urge you to consider including stronger enforcement language that either specifically sets out annual or bi-annual benchmarks for compliance with the renewable energy requirement or that sets out a point in time at which we should be at the half-way mark for developing renewable energy, or, at the very least that directs the Public Utilities Commission of Ohio to enforce the standard on an annual basis starting no less than one year after the enactment of this legislation.  Attached please find the compliance schedules for twenty-five other renewable energy standards that have been enacted across the country.  Of the twenty-six standards in place in the United States, only one (Iowa) does not include specific benchmark requirements. 

Furthermore, I have heard and respect the arguments of some who are opposed to setting specific benchmark requirements, however, I urge you to consider the middle ground between strict annual benchmarks and having no compliance schedule or enforcement mechanism in place until the year 2025.  With so much to gain with regard to new economic opportunities, protecting existing jobs and creating new ones in the renewable energy industry we should strive to enact a policy that will put us on an equal playing field with the other twenty-five states that have enacted standards.  In-state generation of renewable energy would be a significant signal to renewable energy businesses worldwide that Ohio is actually working towards creating a profitable market for their products which will entice them to consider growing their business in Ohio.  If however we are slow to generate in-state renewable energy we could continue to be passed up by businesses that go to neighboring states like Pennsylvania and Illinois. 

In conclusion, we urge you to consider including some enforcement mechanism that will ensure the swift development of in-state renewable energy generation within the next two to five years not the next ten to fifteen. 

Thank you for the opportunity to testify today, I would be happy to respond to any questions that you have.

 

ATTACHMENT

Twenty-five states and the District of Columbia have a renewable energy standard.  Out of these twenty-six standards, only one (Iowa) does not have specific benchmarks for compliance.  For more information please go to www.dsireusa.org .

 

1)ARIZONA - Standard:15% by 2025

COMPLIANCE SCHEDULE
·  2006: 1.25%  

·  2007: 1.50% (5% DR)  

·  2008: 1.75% (10% DR)  

·  2009: 2.00% (15% DR)  

·  2010: 2.50% (20% PV)  

·  2011: 3.00% (25% DR)  

·  2012: 3.50% (30% DR)  

·  2013: 4.00% (30% DR)  

·  2014: 4.50% (30% DR)  

·  2015: 5.00% (30% DR)  

·  2016: 6.00% (30% DR)  

·  2017: 7.00% (30% DR)  

·  2018: 8.00% (30% DR)  

·  2019: 9.00% (30% DR)  

·  2020: 10.00% (30% DR)  

·  2021: 11.00% (30% DR)  

·  2022: 12.00% (30% DR)  

·  2023: 13.00% (30% DR)  

·  2024: 14.00% (30% DR)  

·  2025: 15.00% (30% DR)  

 

2) CALIFORNIA: California’s Renewables Portfolio Standard (RPS) program requires retail sellers of electricity to increase their sales of eligible renewable-energy resources by at least 1 percent of retail sales per year, so that 20% of their retail sales are served with eligible renewable energy resources by 2010. Governor Schwarzenegger has set a longer-term state goal of 33% by 2020, and currently the California Public Utilities Commission (CPUC) and the California Energy Commission (Energy Commission) are considering ways to achieve that goal.  

 

3) COLORADO: Standard - Investor-owned utilities: 20% by 2020; Electric cooperatives: 10% by 2020; Municipal utilities serving more than 40,000 customers: 10% by 2020;

Compliance Schedule for the IOUs:

3% of its retail electricity sales in Colorado for the year 2007;  

5% of its retail electricity sales in Colorado for the years 2008-2010;  

10% of its retail electricity sales in Colorado for the years 2011-2014;  

15% of its retail electricity sales in Colorado for the years 2015-2019; and  

20% of its retail electricity sales in Colorado for the year 2020 and for each following year.

 

4) CONNECTICUT: 20% by 2020.

COMPLIANCE SCHEDULE

On and after 1/1/06: 2.0% Class I

On and after 1/1/07: 3.5% Class I  

On and after 1/1/08: 5.0% Class I   

On and after 1/1/09: 6.0% Class I   

On and after 1/1/10: 7.0% Class I   

On and after 1/1/11: 8.0% Class I  

On and after 1/1/12: 9.0% Class I   

On and after 1/1/13: 10.0% Class I  

On and after 1/1/14: 11.0% Class 1  

On and after 1/1/15: 12.5% Class I   

On and after 1/1/16: 14.0% Class I   

On and after 1/1/17: 15.5% Class I   

On and after 1/1/18: 17.0% Class I   

On and after 1/1/19: 18.5% Class I   

On and after 1/1/20: 20.0% Class 1  
 

5) DELAWARE: Standard:20% by 2019

COMPLIANCE SCHEDULE

On and after 6/1/08: 1.5% (0.011% PV)  

On and after 6/1/09: 2.0% (0.014% PV)  

On and after 6/1/10: 5.0% (0.018% PV)  

On and after 6/1/11: 7.0% (0.048% PV)  

On and after 6/1/12: 8.5% (0.099% PV)  

On and after 6/1/13: 10% (0.201% PV)  

On and after 6/1/14: 11.5% (0.354% PV)  

On and after 6/1/15: 13% (0.559% PV)  

On and after 6/1/16: 14.5% (0.803% PV)  

On and after 6/1/17: 16% (1.112% PV)  

On and after 6/1/18: 18% (1.547% PV)  

On and after 6/1/19: 20% (2.005% PV)  

 

6) District of Columbia: Standard:11% by 2022

COMPLIANCE SCHEDULE

In 2007, 1.5% from "tier one" resources; 2.5% from "tier two" resources; and 0.005% from solar energy  

In 2012, 4.0% from "tier one" resources; 2.5% from "tier two" resources; and at least 0.066% from solar energy  

In 2017, 6.5% from "tier one" resources; 1.5% from "tier two" resources; and at least 0.192% from solar energy  

In 2022 and beyond, 11% from "tier one" resources; 0% from "tier two" resources; and at least 0.386% from solar energy

 

7) HAWAII: Standard:10% by December 31, 2010; 15% by December 31, 2015; and 20% by December 31, 2020 (including existing renewables)

10% of its net electricity sales by December 31, 2010;  

15% of its net electricity sales by December 31, 2015; and  

20% of its net electricity sales by December 31, 2020.

 

8) ILLINOIS: Standard:25% by 2025 Technology Minimum:75% wind

COMPLIANCE SCHEDULE

2% by June 1, 2008  

4% by June 1, 2009  

5% by June 1, 2010  

6% by June 1, 2011  

7% by June 1, 2012  

8% by June 1, 2013  

9% by June 1, 2014  

10% by June 1, 2015  

11.5% by June 1, 2016  

13% by June 1, 2017  

14.5% by June 1, 2018  

16% by June 1, 2019  

17.5% by June 1, 2020  

19% by June 1, 2021  

20.5% by June 1, 2022  

22% by June 1, 2023  

23.5% by June 1, 2024  

25% by June 1, 2025

 

9) IOWA- requires its two investor-owned utilities -- MidAmerican Energy and Alliant Energy Interstate Power and Light -- to contract for a combined total of 105 megawatts (MW) of their generation from renewable-energy resources, including small hydropower facilities.  COMPLIANCE SCHEDULE – no specific compliance schedule.

10) MAINE - 10% new resources by 2017 COMPLIANCE SCHEDULE

1% by 2008  

2% by 2009  

3% by 2010

4% by 2011  

5% by 2012  

6% by 2013  

7% by 2014  

8% by 2015  

9% by 2016  

10% by 2017  

11) MARYLAND – Standard Tier 1: 9.5% in 2022 and beyond; Tier 2: 2.5% in 2006 through 2018 Technology Minimum:2% solar electric in 2022 as part of the Tier 1 requirement. Suppliers also receive 110% - 120% credit for wind and 110% credit for methane during a specified timeframe.

COMPLIANCE SCHEDULE:

Year   Solar  Other Tier 1  Tier 2

 
2006       0              1.0            2.5

 
2007       0              1.0            2.5

 
2008       0.005      2.0            2.5

 
2009       0.01        2.0            2.5

 
2010       0.025      3.0            2.5

 
2011       0.04        3.0            2.5

 
2012       0.06        4.0            2.5

 
2013       0.1          4.0            2.5

 
2014       0.15        5.0            2.5

 
2015       0.25        5.0            2.5

 
2016       0.35        6.0            2.5

 
2017       0.55        6.0            2.5

 
2018       0.9          7.0            2.5

 
2019       1.2          7.5            0

 
2020       1.5          7.5            0

 
2021       1.85        7.5            0

 
2022+    2.0          7.5            0

 

12) MASSACHUSETTS: Standard:1% new renewables in 2003, increasing to 4% in 2009 (plus 1% each year after 2009)

COMPLIANCE SCHEDULE

1.0% by 2003  

1.5% by 2004  

2.0% by 2005  

2.5% by 2006  

3.0% by 2007  

3.5% by 2008  

4.0% by 2009  

an additional 1.0% each year afterward until DOER ends additional requirements.

 

13) MINNESOTA – Standard Xcel Energy: 30% by 2020 / Other utilities: 25% by 2025

COMPLIANCE SCHEDULE for “OTHER” UTILITIES

12% by 12/31/2012  

17% by 12/31/2016  

20% by 12/31/2020  

25% by 12/31/2025

COMPLIANCE SCHEDULE FOR XCEL

15% by 12/31/2010  

18% by 12/31/2012  

25% by 12/31/2016  

30% by 12/31/2020

 

14) MONTANA: Standard 15% by 2015 COMPLIANCE SCHEDULE- 5% in 2008; 10% in 2010; 15% in 2015

15) NEVADA Standard:6% in 2005, rising to 20% by 2015 Technology Minimum:5% of the energy portfolio must be solar

COMPLIANCE SCHEDULE

% Renewables/Efficiency -- Date  
6% ---------------------------- 2005 and 2006  
9% ---------------------------- 2007 and 2008  
12% -------------------------- 2009 and 2010  
15% -------------------------- 2011 and 2012  
18% -------------------------- 2013 and 2014  
20% -------------------------- 2015 and thereafter  

16) NEW HAMPSHIRE Standard -23.8% by 2025

COMPLIANCE SCHEDULE

                2008       2009       2010       2011       2012       2013       2014       2015       2025

 
Class I        0.0% 0.5%      1%          2%          3%          4%          5%          6%          16%(*)

 
Class II       0.0% 0.0%      0.04%    0.08%    0.15%    0.2%      0.3%      0.3%      0.3%

 
Class III      3.5%                 4.5%      5.5%      6.5%      6.5%      6.5%      6.5%      6.5%      6.5%

 
Class IV       0.5%                1%          1%          1%          1%          1%          1%          1%          1%

 

17) NEW JERSEY – Standard 22.5% by 2021 (2.12% from solar; 17.88% from other Class I renewables; 2.5% from Class II or additional Class I renewables)

COMPLIANCE SCHEDULE

6/1/04 - 5/31/05: Solar – 0.0100%; Class I – 0.740%; Class II – 2.5%; Total – 3.2500%  

6/1/05 - 5/31/06: Solar -- 0.0170%; Class I – 0.983%; Class II – 2.5%; Total – 3.5%  

6/1/06 - 5/31/07: Solar – 0.0393%; Class I – 2.037%; Class II – 2.5%; Total – 4.5763%  

6/1/07 - 5/31/08: Solar – 0.0817%; Class I – 2.924%; Class II – 2.5%; Total – 5.5057%  

6/1/08 - 5/31/09: Solar – 0.1600%; Class I – 3.840%; Class II – 2.5%; Total – 6.500%  

6/1/09 - 5/31/10: Solar – 0.2210%; Class I – 4.685%; Class II – 2.5%; Total – 7.406%  

6/1/10 - 5/31/11: Solar – 0.3050%; Class I – 5.492%; Class II – 2.5%; Total – 8.297%  

6/1/11 - 5/31/12: Solar – 0.3940%; Class I – 6.320%; Class II – 2.5%; Total – 9.214%  

6/1/12 - 5/31/13: Solar – 0.4970%; Class I – 7.143%; Class II – 2.5%; Total – 10.14%  

6/1/13 - 5/31/14: Solar – 0.6210%; Class I – 7.977%; Class II – 2.5%; Total – 11.098%  

6/1/14 - 5/31/15: Solar – 0.7650%; Class I – 8.807%; Class II – 2.5%; Total – 12.072%  

6/1/15 - 5/31/16: Solar – 0.9280%; Class I – 9.649%; Class II – 2.5%; Total – 13.077%  

6/1/16 - 5/31/17: Solar – 1.1180%; Class I – 10.485%; Class II – 2.5%; Total – 14.103%  

6/1/17 - 5/31/18: Solar – 1.3330%; Class I – 12.325%; Class II – 2.5%; Total – 16.158%  

6/1/18 - 5/31/19: Solar – 1.5720%; Class I – 14.175%; Class II – 2.5%; Total – 18.247%  

6/1/19 - 5/31/20: Solar – 1.8360%; Class I – 16.029%; Class II – 2.5%; Total – 20.365%  

6/1/20 - 5/31/21: Solar – 2.1200%; Class I – 17.880%; Class II – 2.5%; Total – 22.5%

 

18) NEW MEXICO Standard:Investor-owned utilities: 20% by 2020;
Rural electric cooperatives: 10% by 2020

COMPLIANCE SCHEDULE -Interim standards of 10% by 2011 and 15% by 2015. The bill also establishes a standard for rural electric cooperatives of 10% by 2020 (see below). Furthermore, utilities are to set a goal of at least 5% reduction in total retail sales to New Mexico customers, adjusted for load growth, by January 1, 2020.  

19) NEW YORK Standard: 24% by 2013

COMPLIANCE SCHEDULE

2006       Increase: .81%      Total: 19.93%

2007       Increase: 1.66%   Total: 20.65%

2008       Increase: 2.5%      Total: 21.38%

2009       Increase: 3.31%   Total: 22.10%

2010       Increase: 4.13%   Total: 22.83%

2011       Increase: 4.95%   Total: 23.55%

2012       Increase: 5.75%   Total: 24.48%

2013       Increase: 6.56%   Total: 25.00%

Source: PSC Order Regarding Retail Renewable Portfolio Standard, Appendix D, Table 1. September 24, 2004.

20) NORTH CAROLINA Standard - 12.5% of 2020 retail sales by 2021 for investor-owned utilities
10% of 2017 retail sales by 2018 for electric cooperatives and municipal utilities

COMPLIANCE SCHEDULE

2010 0.02% from solar  
2012 3% (including 0.07% from solar + 0.07% from swine waste + 170,000 MWh from poultry waste)  
2013 3% (including 0.07% from solar + 0.07% from swine waste + 700,000 MWh from poultry waste  
2014 3% (including 0.07% from solar + 0.07% from swine waste + 900,000 MWh from poultry waste)  
2015 6% (including 0.14% from solar + 0.14% from swine waste + 900,000 MWh from poultry waste)  
2018 10% (including 0.20% from solar + 0.20% from swine waste + 900,000 MWh from poultry waste)  
2021 12.5% (including 0.20% from solar + 0.20% from swine waste + 900,000 MWh from poultry waste)  

21) OREGON Standard:Large utilities: 25% by 2025

COMPLIANCE SCHEDULE

5% by 2011  

15% by 2015  

20% by 2020  

25% by 2025

 

22) PENNSYLVANIA Standard:18% during compliance year 2020-2021 (8% Tier I and 10% Tier II)

**The PUC adopted the following compliance schedule:

06/01/06 - 05/31/07: Tier I (including solar) - 1.5%; Tier II - 4.2%; Solar PV - 0.0013%  

06/01/07 - 05/31/08: Tier I (including solar) - 1.5%; Tier II - 4.2%; Solar PV - 0.003%  

06/01/08 - 05/31/09: Tier I (including solar) - 2.0%; Tier II - 4.2%; Solar PV - 0.0063%  

06/01/09 - 05/31/10: Tier I (including solar) - 2.5%; Tier II - 4.2%; Solar PV - 0.0203%  

06/01/10 - 05/31/11: Tier I (including solar) - 3.0%; Tier II - 6.2%; Solar PV - 0.0325%  

06/01/11 - 05/31/12: Tier I (including solar) - 3.5%; Tier II - 6.2%; Solar PV - 0.0510%  

06/01/12 - 05/31/13: Tier I (including solar) - 4.0%; Tier II - 6.2%; Solar PV - 0.0840%  

06/01/13 - 05/31/14: Tier I (including solar) - 4.5%; Tier II - 6.2%; Solar PV - 0.1440%  

06/01/14 - 05/31/15: Tier I (including solar) - 5.0%; Tier II - 6.2%; Solar PV - 0.2500%  

06/01/15 - 05/31/16: Tier I (including solar) - 5.5%; Tier II - 8.2%; Solar PV - 0.2933%  

06/01/16 - 05/31/17: Tier I (including solar) - 6.0%; Tier II - 8.2%; Solar PV - 0.3400%  

06/01/17 - 05/31/18: Tier I (including solar) - 6.5%; Tier II - 8.2%; Solar PV - 0.3900%  

06/01/18 - 05/31/19: Tier I (including solar) - 7.0%; Tier II - 8.2%; Solar PV - 0.4433%  

06/01/19 - 05/31/20: Tier I (including solar) - 7.5%; Tier II - 8.2%; Solar PV - 0.5000%  

06/01/20 - 05/31/21: Tier I (including solar) - 8.0%; Tier II - 10%; Solar PV - 0.5000%

 

23) RHODE ISLAND Standard:16% by 2020  COMPLIANCE SCHEDULE: the requirement begins at 3% by the end of 2007, escalates by 0.5% per year through 2010, then by 1% per year from 2011 through 2014, and finally by an additional 1.5% per year from 2015 through 2019.

24) TEXAS Standard:2,280 MW by 1/1/2007, increasing to 5,880 MW by 1/1/2015

COMPLIANCE SCHEDULE

2,280 MW by 1/1/2007  

3,272 MW by 1/1/2009  

4,264 MW by 1/1/2011  

5,256 MW by 1/1/2013  

5,880 MW by 1/1/2015

 

25) WASHINGTON Standard -15% renewables by 2020 and all cost-effective conservation

COMPLIANCE SCHEDULE

At least 3% percent of its load by 1/1/2012, and each year thereafter through 12/31/2015;  

At least 9% of its load by 1/1/2016, and each year thereafter through 12/31/2019; and  

At least 15% of its load by 1/1/2020, and each year thereafter

26) WISCONSIN Standard - 10% by December 31, 2015.

COMPLIANCE SCHEDULE

·         For the years 2006, 2007, 2008 and 2009, each utility -- including municipal utilities -- may not decrease its renewable-energy percentage below the utility's average renewable-energy percentage for 2001, 2002 and 2003.  

·         For the year 2010, each utility must increase its renewable-energy percentage by at least two points above the utility's average renewable-energy percentage for 2001, 2002 and 2003.  

·         For the years 2011, 2012, 2013 and 2014, each utility may not decrease its renewable-energy percentage below the utility's renewable-energy percentage for 2010.  

·         For the year 2015, each utility must increase its renewable-energy percentage by at least six points above the utility's average renewable-energy percentage for 2001, 2002 and 2003.  

·         For each year after 2015, each utility may not decrease its renewable-energy percentage below the utility's renewable-energy percentage for 2015.