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January - February 2002

Conservation Update



State Energy Offices Bulletin

Stories submitted by state energy offices about their projects.

California

California Helps Fund 300 Megawatts of Renewable Power

The California Energy Commission (CEC) has announced that nine new renewable-energy power plants will receive a total of up to $40 million through the state's financial incentives auction. The incentives were "auctioned" by requiring bidders to submit their preferred incentive in cents per kilowatt-hour, and the lowest bidders were selected. Winning bids ranged from 0.65 to 0.8 cents per kilowatt-hour and included a 30-megawatt waste tire plant, a 21-megawatt small hydropower plant, and seven wind plants totaling 249.2 megawatts. All of the projects are expected to start generating electricity in 2002. Of the 72 successful bidders from the CEC's first two auctions, 35 projects totaling more than 200 megawatts are now online.



Colorado

Two-Day Workshop Features Wind and Distributed Energy Resources

The Governor's Office of Energy Management and Conservation (OEMC), in conjunction with the U.S. Department of Energy (DOE), is presenting a first ever workshop of its kind in Colorado. "Colorado Wind & Distributed Energy: Renewables for Rural Prosperity" is being held April 8 - 9, 2002 at the Renaissance Hotel in Denver and will provide an educational forum on the latest innovative Wind and Distributed Energy technologies and products and services that are now available.

Attendees from the Greater Colorado area will learn about the rural economic benefits that can be achieved as a result of using these pioneering, efficient forms of power, and will include farmers, ranchers, rural cooperatives, municipal utilities, investor owned utilities, state and federal renewable energy organizations, and manufacturers of energy generating equipment. Other primary sponsors include the National Renewable Energy Laboratory (NREL) and the Western Area Power Administration (WAPA).

Topics will include rural economic development, innovative wind power technologies, biofuels, microturbines, fuel cell technology, solar water pumping, net-metering, energy rates, digester and equipment blending. Governor Owens has been invited to open the workshop by addressing the audience on Monday morning prior to the keynote address. "Renewable energy and energy conservation, along with the environmentally sound development of all our domestic resources, make sense on their own and, when coupled with Colorado's resources and ingenuity, the package becomes a win/win proposition," stated Rick Grice, Director of the OEMC. "I am particularly excited about the opportunities available to the rural and ag communities. Distributed generation coming off of biofuels, wind, solar, and other green sources greatly benefits the ag community, and Colorado as a whole."

During the workshop, exhibits will take place at the hotel and The Urban Farm at Stapleton, which will play host to various demonstrations on wind turbines, methane digesters, microturbines, fuel cells, biofuels, photovoltaic systems, and associated hardware. All demonstrations will be focused on technologies available today, to enhance the economic outlook as well as expand the energy and cash crop opportunities of Colorado's rural agricultural communities.

For workshop information and to register for attendance, visit the OEMC Web page, Calendar of Events, or call (800) 632-6662.



DOE

New Format for Conservation Update

After more than 20 years in its present format, Conservation Update is changing to an all-electronic format beginning next issue. We are making this and other changes after polling our readers in the fall of 2001 to see what you want from this newsletter. We will use the savings from no longer printing and mailing the newsletter to deliver more and better content.

New features you'll see starting in the April issue include:

Survey Results
More than 150 readers sent us responses to the paper and online version of the survey-a response rate of about 15%, which is considered very good. This means you are a motivated group of readers! There was overwhelming positive support for the content of Conservation Update dealing with energy-related projects in the states. More than 80% found the feature articles useful, and more than 70% said you followed up on a story you read in Conservation Update. Less than a third of our readers from state energy offices said you contribute stories, so we'll try to improve that participation ratio this coming year. The majority of you said you would prefer an online delivery via email and the Internet, and hence our format change. Three quarters of the respondents said bimonthly publishing was just right.

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Iowa

DNR Assesses Energy Potential from Iowa's Livestock Waste

A new study sponsored by the Department of Natural Resources has found that Iowa's livestock waste has the potential of supplying enough energy for 160,000 homes per year through methane energy recovery. With federal and state data about Iowa's livestock industry, the study used Geographic Information Systems to evaluate the amount of methane generated from animal waste in Iowa. Anaerobic digesting systems can trap methane to be converted into electricity and heat. Benefits include electricity generation, odor control, and avoided air emissions.

According to the study, the more than 24,000 tons of manure produced daily from feedlot cattle, dairy cows, swine, poultry, and turkeys could be converted to 32 trillion Btus per year, or almost 3 percent of the state's energy needs. The study also found that methane recovery is economically feasible for dairy operations with more than 5,000 cows, and swine farrow-to-finish and finishing operations with more than 20,000 sows or pigs. Barriers to the technology include the low economic return on systems, difficulties in obtaining financing to build systems, and the low rate paid for the sale of excess electricity.



Demonstration Project Studies Carbon Sequestration in Iowa

A new study sponsored by the Department of Natural Resources investigates the potential for carbon sequestration in Iowa as a way to decrease greenhouse gases in the atmosphere. The Center for Global and Regional Environmental Research at the University of Iowa conducted the carbon storage project and announced its results this summer.

According to the final report, several low-cost and feasible options are available to reduce Iowa's greenhouse gas emissions by 11.5 percent each year. The options include: increasing reforestation of native species, planting buffer strips, using hybrid poplar trees, growing more switchgrass, establishing prairie restoration, increasing wind power, and capturing methane. The project determined carbon management and sequestration could be a cost-effective strategy for reducing emissions. It also can improve water quality and enhance wildlife habitat.

See the complete report for the project.



Iowa's Newest Wind Farm Now Producing Electricity

Worth County in north-central Iowa is now home to 89 wind turbines that are producing electricity for Iowa and Wisconsin. As part of a joint project between Midwest Renewable Energy and Zilkha Renewable Energy of Denmark, the last of the turbines was installed Oct. 11. Known as the Top of Iowa Wind Farm, the 89 900-kilowatt turbines will produce about 80 megawatts of electricity per year, or enough power for 40,000 homes. Alliant Energy has signed an agreement to purchase the power. According to developers, the project cost $90 million to construct and will generate about $500,000 in annual tax revenue for Worth County. Additionally, 35 landowners will financially benefit from leasing space for turbines on their land.

Phase two of the Top of Iowa Wind Farm will include 88 additional turbines to be installed next spring.

The Worth County wind farm is the third major wind project in Iowa. Buena Vista County in northwest Iowa is home to 259 750-kilowatt wind turbines, and Cerro Gordo County in north-central Iowa has 56 750-kilowatt turbines.



Kentucky

KyNEED Completes Another Successful Year

The KyNEED Project completed a successful fall workshop season conducting eleven workshops across the state. In September, KyNEED held its first Student Leadership Training Workshop for student facilitators from Northern Kentucky, a workshop that is sure to become an annual event. Spring workshops are scheduled for three locations across the state. On July 8-11, 2002, KyNEED will host the first Kentucky Energy Conference for Educators. Twenty-four Kentucky teachers will travel by bus on a four-day learning experience, visiting energy sties in Eastern Kentucky. The conference is sponsored by the Kentucky Coal Council, the Kentucky Division of Energy, and American Electric Power.



Massachusetts

State Energy Office Releases Renewable Energy Regulations

The Division of Energy Resources (DOER) has released the "Renewable Energy Portfolio Regulation" mandated by the 1997 Electric Utility Industry Restructuring Act. Beginning in 2003, all retail electricity customers will receive a minimum percentage of their electricity supply from new renewable energy generation sources. The Act specifies that this percentage will increase from one percent in 2003 to four percent in 2009.

Governor Jane Swift said, "Our commitment to increasing the use of renewable energy will benefit Massachusetts' families and businesses by providing them with clean energy, cleaner air, and a safer, healthier environment."

DOER Commissioner David L. O'Connor said, "Renewable energy sources like solar, wind and biomass increase our fuel diversity and decrease our reliance on imported fuels. The RPS Regulation provides these benefits at the least cost to ratepayers."

The Final Proposed Regulation can be downloaded from the DOER Web site.



Michigan

Small Business Association of Michigan Receives Grant for ENERGY STAR® Promotion

A $75,000 state grant will enable the Small Business Association of Michigan (SBAM) to partner with several organizations to increase awareness of ENERGY STAR and energy efficient products. SBAM, which has membership of 8,000 businesses, is working in collaboration on the ENERGY STAR Promotion with Urban Options, a non-profit community agency aimed at improving the environmental quality of urban housing.

The state grant will be used to recruit at least five retailers and distributors to join the ENERGY STAR program, conduct retailer training sessions, distribute promotional materials to the media, work with business and consumer organizations to promote ENERGY STAR products to their members, and exhibit ENERGY STAR products.

"This ENERGY STAR promotion is particularly exciting because it is a partnership of Michigan non-profits and businesses working together to promote the economic and environmental benefits of energy efficient products," Michigan Department of Consumer & Industry Services Director (CIS) Kathleen Wilbur said. "Many home and business owners aren't aware that making even minor changes such as upgrading fluorescent lighting, insulating a hot water heater, or using a programmable thermostat can result in significant cost savings. This grant will enable the ENERGY STAR Promotion team to help consumers in identifying and selecting energy efficiency options."

SBAM and Urban Options will be recruiting additional corporate and non-profit entities to join as sponsors and partners of the ENERGY STAR promotion. Other confirmed partners include Dr. Debra Rowe, environmental consultant; Eco-Sensitive Design Study Group; Michigan Recycling Coalition; Michigan State University Extension Service; MSU Sustainability; Northern Lakes Economic Alliance; Quest Energy LLC; West Michigan Environmental Action Council; and West Michigan Sustainable Business Forum.

The grant is administered through the CIS Energy Office, which promotes energy efficiency and renewable energy resource development to Michigan's residents, businesses, and public institutions. Program activities are designed to encourage the use of new technologies and alternative fuels in buildings, industrial processes, vehicles and in power generation.



Workshops Enlighten Public on How Energy Efficient Church Saves $11,000 a Year

Through workshops and training sessions, funded by the U.S. DOE State Energy Program through the Michigan Department of Consumer and Industry Services, other churches and the public are learning how the St. Elizabeth Catholic Church in Wyandotte, MI, is saving $11,000 a year through energy efficiency improvements. The church, which recently received an Energy Star Community Award, followed a consultant's 1997 recommendations and installed a new boiler, more efficient lighting and air conditioning, and low-flow toilets. Plans are underway to install solar shingles on the rectory garage roof, and a solar thermal system, which should provide two-thirds of the rectory's hot water needs. According to Rev. Charles M. Morris, "The greatest piece of advice we can make to any congregation is to invest in a competent energy audit done by a reputable firm, and then follow through with the recommendations."



Minnesota

Minnesota Energy Conservation Program Receives International Acclaim

A Minnesota program that promotes designing energy-saving features into large buildings was recently recognized at an international meeting of scientists and policymakers as the "program most likely to meet the intent of the Kyoto Protocols in the shortest time." The Energy Assets program was cited at the biannual meeting of the European Council for an Energy Efficient Economy, which considered a total of 22 programs for the distinction. Programs from Norway, Great Britain, Germany and Japan were among the competitors.

Energy Assets is part of Xcel Energy's Conservation Improvement Program, which is overseen by the Minnesota Department of Commerce. The program provides professional energy resources to architects and engineers and financial incentives for businesses that implement the recommended energy-saving strategies.

"We are especially pleased that this program has received international recognition," said Commerce Commissioner Jim Bernstein. "Conservation and efficiency are critical components to Minnesota's energy future."

Energy Assets, as developed by the Weidt Group over many years, is achieving tremendous energy savings." The Weidt Group, an energy design consulting firm based in Minnetonka, operates the Energy Assets program and presented the report, "The Energy Assets Program and the Minnesota Design Community: Trends in Co-evolution." The report evaluated energy savings for buildings that were designed and constructed under the program.

Since the program started in 1993, 49 educational buildings and 54 office buildings, primarily in the Twin Cities metropolitan area, have implemented energy-saving features recommended by the program's experts.

Companies employing Energy Assets design features in their buildings include Medtronic World Headquarters, Scimed Lifesystems, ADC Telecommunications, and Hennepin County Public Safety.

Average annual incentives since 1995 total $800,000. This year, incentives are expected to total $1.9 million, with the incentive per building averaging $50,000. The incentive payments from Xcel Energy to building owners are in addition to free energy design assistance.

Program participants are saving an estimated total of $14 million annually in energy costs. The program has reduced peak electric demand by 54 megawatts, enough electricity to power approximately 54,000 homes.

There are also substantial reductions in greenhouse gas emissions and other air pollutants. Businesses and schools that incorporate the energy-saving features into their building designs see their investments paid back through reduced energy bills in an average of 1.04 years.



New Law Helps Consumers Save on Electricity Costs

A new Minnesota law is helping to reduce residential electricity bill by reducing the cost of lighting products for the home. The law, passed in 2001 by the Minnesota Legislature and signed by Governor Ventura, now eliminates state sales tax on the purchase of lighting fixtures and compact fluorescent lamps (CFLs) carrying the ENERGY STAR label. A single CFL will save more than $25 in energy costs over the bulb's lifetime, and changing the five most frequently used lights in a home could save $80 a year in electricity bills.

ENERGY STAR qualified CFLs and lighting products typically are up to 75 percent more efficient than standard products but give off the same light output and last up to 10 times longer than standard incandescent bulbs. A CFL used an average of four hours a day will not need to be changed for about five years.

Most energy-efficient fixtures do not cost more than standard fixtures. CFLs are initially more expensive than incandescent bulbs, but consumers see a quick return on their investment CFLs save money on energy bills and will outlast up to 10 standard light bulbs. And now, with the new Minnesota law, there is no state sales tax on the purchase of each CFL.

ENERGY STAR, jointly managed by the U.S. Environmental Protection Agency and the U.S. Department of Energy, permits consumers to easily identify energy-efficient appliances, electronics, office equipment, lighting, heating and cooling equipment, buildings, and homes.

Participating ENERGY STAR utilities in Minnesota are Dakota Electric Association, Minnesota Power, Rochester Public Utilities, Southern Minnesota Municipal Power Agency, and Xcel Energy.

To learn more about conserving energy, the Minnesota Department of Commerce Energy Information Center offers a free CD-ROM that includes Home Energy Guides about energy conservation and efficiency in the home.



Montana

Montana Creates Renewable Energy Revolving Loan Fund with Clean Air Fines

Montana Governor Judy Martz signed Senate Bill 506 on May 5, 2001, establishing a revolving loan fund to promote development of alternative energy sources. The fund will be managed by the Department of Environmental Quality and will be supported by penalties from clean air violations in Montana. Eligible alternative energy sources include wind, solar, geothermal, fuel cells, biomass, hydroelectric, and solid waste methane systems up to one megawatt in size. The new law also provides a 35% investment tax credit for businesses manufacturing alternative energy generating equipment, using energy from alternative energy generating equipment, or installing net metering equipment for connecting alternative energy generation systems to the electrical grid.

View the full bill text.



Montana Uses Energy-Saving Holiday Lights on Capitol Christmas Tree

The State of Montana used energy-saving LED (Light Emitting Diode) holiday lights for the Capitol Christmas tree this year. The LED holiday lights use about 99 percent less energy than larger, traditional holiday bulbs and last up to 100,000 hours when used indoors. The LED holiday lights were strung on the tree located in the Governor's Reception Room in Montana's Capitol building and featured in the state's tree lighting ceremony. The Montana Power Company donated the LED holiday lights to the state. The Northwest Energy Efficiency Alliance and the Montana Department of Environmental Quality assisted with the effort.

Over a 30-day period, lighting 500 traditional holiday lights will cost a Montana Power customer about $20.29 while the same number of LED lights costs only $0.20. Finally, unlike many other holiday bulbs if one bulb of the LED lights burns out the whole strand will stay lit.

Montana Power paid for the LED lights with Universal System Benefits dollars as a demonstration of this new high efficiency technology. The LED holiday lights are another example of how energy efficiency can be easily incorporated into of our everyday life," said Deb Martin Young, Montana Power's representative on the Northwest Energy Efficiency Alliance Board.



Utah

Utah Energy Office Purchases Wind Power

The Department of Natural Resources' Utah Energy Office has begun purchasing 100 percent of its electricity usage from clean renewable wind power. The pollution-free wind generated electricity is purchased through Utah Power's Blue Sky Program, a green pricing program that allows customers to choose to pay a bit extra for pollution-free wind power. This purchase is the first state agency purchase of wind power in the state of Utah.

Mike Glenn, Manager of the Utah Energy Office said, "It was an easy decision to purchase wind power, we support clean renewable energy sources and diversification of our electricity supply. Purchasing wind power demonstrates our support."

"By purchasing wind power we not only limit our impact on the environment, but we also help build the market for wind power development in Utah," says Christine Watson, Engineer with the Utah Energy Office Wind Program. "By being the first to purchase wind power, the Utah Energy Office is supporting this cutting edge technology. We hope many other state agencies and local businesses will follow our example and purchase wind power."

The Utah Energy Office sponsored a workshop entitled 'Utah Wind Workshop - Emerging Opportunities' to promote wind development in Utah. The workshop was held on October 1, 2001, at the Salt Palace in Salt Lake City. The workshop drew 400 attendees.