Pickens Central Florida

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Comment by Roy R on December 5, 2008 at 6:43am

Job Creation, Energy Independence, Environmental Stewardship

The energy market has dominated headlines for as long as can be remembered. As we climb our way out of the current economic cycle, new leaders are created and new industries will lead the way back to a strong, robust economy. Those who look to the future of the energy market know that Renewable Energy is an industry that is boiling over with potential. A growing new Renewable Energy industry in Florida will create untold thousands of jobs, collect millions in local tax revenues, and bring us to the forefront of the national stage on energy independence and environmental stewardship.
Renewable Energy Payments are a policy mechanism that have proven to promote the fastest, cheapest, and most widespread growth of Renewable Energy anywhere in the world, with implementation in over 45 countries. Currently at least 8 states in the U.S. are considering a Renewable Energy Payment (also known as Feed in Tariff) policy mechanism. Today the State of Florida is positioning itself ahead of the curve and providing a beacon for the rest of the country to follow by considering this policy mechanism.
A Renewable Energy Payment (REP) provides a fixed contract to the producers of Renewable Energy. The contracts, which are fixed for typically twenty years, afford the producer the ability to borrow against a mandated, guaranteed payment from their utility company. Also, these contracts, which are transparent, simple to understand, and open for inspection, include long-term agreed upon prices that the utility company will pay the producers for the energy it buys. The prices are set high enough to be an incentive to new producers and encourage existing producers to maximize their capacity.
The key components to a proven successful REP model:
• Anyone can access the grid, democratizing the new market and allowing anyone to produce renewable energy.
• All producers will receive a fixed payment, at reasonable rate of return, for a fixed period of time, typically 20 years, for the renewable energy that they produce.
• There is no limit to the amount of renewable energy that can be produced.
• The contracts are transparent and simple to understand.
With these features included in the design, a Renewable Energy Payment policy would create a stable and competitive renewable energy marketplace. Imagine if homes, churches, schools, hospitals, condo associations and ranchers could all install solar, wind and other renewable energy sources on their rooftops or land and then produce energy and sell it to the utilities for profit.... It could completely transform our economic landscape. Floridians are owed the chance to participate in the Renewable Energy market with a level playing field, and Renewable Energy Payments are the single most effective way to make sure this happens.



The key results of a REP market include:

• Job Creation. All levels of jobs are created including high-skilled positions in engineering, manufacturing, agriculture, and electronics. Jobs in banking and finance, breathing life in to a lending industry.

• Stability and Investment Security. REP incentives also have massive appeal to investors and lenders. Unlike Renewable Energy Certificates (RECs) which have annually fluctuating values through a trading mechanism, REP incentives never change and never require any administration or additional cost. As long as the RE system is generating electricity it continues to make the system owner a guaranteed return on their investment.

• Stay at home revenue. With REPS, the revenue from producing renewable energy will stay in the county and state where it is produced. This will create "local wealth" and stimulate the local economy.

• Equality. REPs create a level playing field for all different sizes of renewable energy producers. It encourages individuals, small businesses and larger businesses to become renewable energy producers and rewards them all.

• Reduce Carbon Output. Burning fossil fuels releases 75% of the greenhouse gases that are heating the planet. It is estimated that by switching to renewable energy we can cut CO2 emissions in half by 2030.

• Stabilize Energy Costs. Communities that use locally produced renewable energy have more stable energy costs. Once the systems are set up, their renewable fuels such as sun and wind are low cost or free. Overall, energy costs will be more predictable and controllable, creating economic stability.

• Create Energy Security. Renewable energy production will lesson a community’s or nation’s vulnerability to increasing fossil fuel prices and will increase self-reliant economic growth. Those who install renewable energy the soonest will save the most. The costs for renewable energy are expected to decline due to economy of scale and technological progress.





REPs Basic Steps


1. Priority access to the grid over conventional fuel sources [prevents gaming from utilities inhibiting grid access] within [60] days for all systems

2. Purchase guarantee with standard offer contracts (SOC) with the local utility standardized by the Public Service Commission. Contracts shall be 20 years fixed price with an inflation escalator [makes projects financeable with low cost debt versus expensive equity – target should be >70% debt for most technologies]

3. The SOC will be the broadly the same for all system sizes under 20MW – with the intent that the SOC provides a speedy transparent method for a RE producer to sell power to the utility

4. Pricing will be determined by the PSC but would be based on cost plus reasonable profit
a. To mimic the regulatory returns that regulated utilities currently enjoy in Florida for fossil generation projects.
b. Pricing to be differentiated by system size to factor in economies of scale that typically reduce installed costs for larger systems
c. We recommend that the PSC include in its calculation of return all federal ITC and other benefits such as accelerated depreciation.
d. A pricing digression methodology would be employed whereby every [2 years] the PSC can alter prices for new RE producers to factor in changes in costs
e. REPs by utilities for RE would be allowed to be recovered in the normal regulatory adjustment mechanism via a RE surcharge that would be allocated to each customer bill. The surcharge would be allocated by the PSC state wide to ensure that all customers pay for RE not just those customers of any one IOU
















Renewable Energy Payments


REPs are a simple, elegant, and cost-effective mechanism for supporting large-scale RE deployments in aggressive timelines. Germany alone has deployed 12 times the RE as the US since 2001, even though they have 1/7th the population and have ¼ the renewable resources for solar and wind (RE breakdown: 46% wind, 24% biomass, 4% solar). The Germans have already achieved the implementation of RE which accounts for >15% of their total power generation resources.


Germany’s FIT Success Story (through 2007)
1. Total Grid Contribution:
a. Baseline of 6.6% in 2005
b. 15% achieved by 2007
c. New 27% goal by 2020
2. Wind: 20,000+ MW installed (30.5 TWh generated) [45%+ of market]
3. Solar: 5000+ MW installed (US had 250 MW in 2007) [4%+ of market]
4. Biomass: 27% of market
5. Hydro: 24% of market

Approximate Cost in Germany
1. ~$2.80 (USD) a month (price of a loaf of bread)
2. Total Policy Cost of $2.4. B dollars annually
3. Net Policy Benefit of $4.8 B dollars Annually


Benefits of the REP Policy
1. Costs the ratepayers ZERO ($0) if the market does not support
2. REQUIRES NO STATE GOVERNMENT ADMINISTRATION or tax credit support
3. Incentives are calculated around each RE technology’s cost structure and are adjusted on a set performance schedule
4. Supports all RE technologies equally or can be adjusted for weighted average
5. Will help lower grid electricity prices through widespread adoption of RE into the power mix with low/no fuel input costs over the long term
REP Policies – Overview

1. Florida should immediately begin to increase its proportion of solar and renewable energy. In doing so it will:

• Improve Florida’s energy security by reducing its dependence on imported fossil fuels
• Create a wealth machine from solar and renewable energy. New construction, installation, electrical, manufacturing and finance jobs emerge as we expand on and establish a vibrant solar and renewable industry in Florida
• Improve our environment now and for the future citizens of Florida

2. REPs greatly increase competition in the renewable electricity generating sector in Florida. REPs policies allow everyone to become a solar and renewable energy producer up to 20MW per project, encouraging residential, commercial and larger investment groups to invest in and participate in solar and other renewable energy production. Each producer is allowed to self generate renewable power and sell the power back to their local utility
3. Utilities have hitherto been reluctant to invest the time and resources in building out small scale renewables projects since it adds minimal benefit to their earnings per share. Conversely, smaller renewable projects are best done by households, local community groups (churches/schools), farmers and developers, commercial groups and renewables companies. These policies therefore encourage renewable generation competition, and allow for a more efficient matching of producer and renewable resources. REPs allow a vast deployment of sub 20MW solar and renewable energy projects by providing solar and renewable energy priority access to the transmission grid and requiring that the utilities buy whatever power is produced.
4. Cost – REPs require NO taxation, NO upfront state payments or subsidies; the cost of paying the renewables producers is passed through to all utility customers through the usual PSC rate recovery mechanism. Costs will only rise if these policies are successful in delivering rapid deployment of renewables. Caps can be introduced to manage the desired growth.
5. Market mechanism – the state policy framework allows the private sector and market forces to work and invest; unlike renewable energy credits, there is no need for any state administration.
6. The solar and renewable energy REPs policy requires that all solar and renewable energy generating technologies are part of the solution. It is required that all renewable energy technologies as defined in [section 366.91] Florida Statutes, become part of the comprehensive REPs policy.







Recent REP Headlines

Nov. 18th Rep. Law introduces a feed in style renewable energy project in Michigan

Nov. 12th Gainesville Moves Forward on Feed-in Tariff

Nov. 7th. "Nov 4th" was a great day for Renewable Energy

Oct. 20th: Florida conference looks at German solar experience

Minnesota Renewable Energy Feed-In Tariff Bill

Illinois: Renewable Energy Feed-in Tariff Introduced in House of Representatives

Feed-in Tariff for California First

Germany sets shining example in providing a harvest for the world

Solar World expands in Orgeon

Comment by Bill Tucker on October 9, 2008 at 9:46am

This is a response to a letter I sent Governor Crist,


Thank you for contacting Governor Charlie Crist. Governor Crist
appreciates your concerns about Florida's energy needs and asked that I
respond on his behalf.

Governor Crist recently met with Mr. T. Boone Pickens at the Clinton
Global Initiative to discuss renewable energy opportunities in Florida.
To date, Florida has taken a very proactive position to support
renewable energy, alternative fuels and other clean technologies such as
compressed natural gas. Since the creation of the Florida Renewable
Energy Technologies and Energy Efficiency Act in 2006, which includes
rebates, grants, and other economic incentives for energy investments,
Florida has contributed millions of dollars to stimulate research,
development and commercialization of renewable energy.

There are a number of solar energy projects under development in Florida
positioning it as the second leading state in the nation for solar
energy production. Additionally, a one megawatt solar panel system will
be installed on the Orange County Convention Center making it the
largest rooftop solar panel installation in the Southeastern United
States.

In addition, Florida is investing in wind technology. Florida Power and
Light is committed to the viability of large-scale wind generation in
Florida. Up to six utility-scale wind turbines will generate
approximately 13 megawatts of electricity. The second project,
constructed by Progress Energy, will look at small-scale wind energy
generation using turbines with a smaller capacity for businesses and
residences.

Like the Pickens Plan, Florida is currently considering all
transportation fuel options available, including compressed natural gas.
The Governor's Energy Office is also working with the state's Clean
Cities Coalitions to promote alternative fuels and advanced vehicles,
fuel blends, fuel economy, hybrid vehicles, and idle reduction. There
are currently 15 compressed natural gas stations in Florida that
primarily serve local government and private business fleets. This
office will continue to work with other interested parties to increase
the availability of compressed natural gas in the marketplace.

Thank you again for taking the time to contact Governor Crist. For
information about Florida's environmental policies and alternative fuel
initiatives, please visit www.myfloridaclimate.com and www.flgov.com.

Sincerely,


Warren Davis
Office of Citizen Services



To receive Governor Crist's weekly newsletter, "Notes from the Capitol,"
please visit www.flgov.com and click on "Subscribe to Notes from the
Capitol."

Comment by D.Thomas Laskowski on October 3, 2008 at 7:14pm

Problems with the natural gas is drilling piping and still not an endless supply. I'll repeat me earlier question. "Has anyone checked out http://alcoholcanbeagas.com/ seams more fesable than converting to natural gas"
I've checked this book out, lots to read. But not only is this something we can make but he has crops for everyone there that have nothing to do with the food chain. Something that can be done as a singular entity to collaboration. Remember before Henry Ford used peanut oil then gas he used moonshine to fire some of his first engines. What was old can be new again. The engine conversion with install is about $350 to $500. Low to no emissions, easy vehicles conversion, crops that don't disturb the food chain and made in the US. No brainier!!!

PLEASE lets talk about this!!!

Comment by Bill Tucker on September 30, 2008 at 3:34pm

This is a response I recieved from Senator Bill Nelson to a proposal about how the EPA could speed up the conversion kit approval process:



Dear Mr. Tucker:

Thank you for contacting me about increasing our nation's use of natural gas.

We must develop a long-term energy strategy that alleviates high energy prices and reduces our dependency on foreign oil while protecting our precious environment. The prices of home energy and gasoline have risen in recent months, leaving many struggling to afford driving to work and heating or cooling their homes.

Natural gas usage shows promise as way to lower energy prices and greenhouse gas emissions in the short term. Florida currently consumes over 894 billion cubic feet of natural gas each year, and most of Florida's counties have access to natural gas.

In the long run, however, we need to shift towards alternative energy and to drastically increase the efficiency of our cars, buildings, and appliances.

I will keep your views in mind as the Senate continues to consider ways to address America's energy problems. Please do not hesitate to contact me again.

Comment by Bill Tucker on September 30, 2008 at 3:25pm

This is a response I recieved from Senator Mel Martinez to a proposal about how the EPA could speed up the conversion kit approval process:

Dear Mr. Tucker:

Thank you for contacting me regarding the energy campaign of T. Boone Pickens. I appreciate hearing from you and would like to respond to your concerns.

Today, our nation is 66 percent dependent on foreign sources of energy. It is critical for our national security that we adopt an energy policy that promotes conservation and efficiency, increases domestic production, and diversifies the nation’s energy supply. Mr. Pickens has suggested that we generate 20% of our electricity from wind within ten years and that we replace petroleum with natural gas to fuel our vehicles to decrease our demand for foreign oil.

I agree with Mr. Pickens that the $700 billion a year our nation spends on foreign oil is unacceptable, but an "all of the above" approach is our best option for solving this energy crisis. I have consistently supported an environmentally responsible approach for oil and gas exploration in the Arctic National Wildlife Refuge (ANWR). I have also promoted coal-to-liquids technology, the development of cellulosic ethanol and other non-food-based renewable fuels, tax incentives for renewable energies, the expansion of nuclear power, and the extraction of vast oil shale deposits in America's West. To reduce demand, I have supported increases in fuel efficiency standards and investment in mass transit. Congress must encourage the utilization of all of our domestic energy resources and the development of new technologies.

Mr. Pickens has many good ideas, and I believe Congress needs to take up legislation to promote greater energy independence. Please be assured that I will keep your views in mind as we continue developing a competitive national energy policy. I am committed to working with my colleagues in the Committee on Energy and Natural Resources and the full Senate to promote renewable energy.

Again, thank you for taking the time to share your views with me. If you have any further questions or comments, please do not hesitate to contact me. In addition, for more information about issues and activities important to Florida, please sign up for my weekly newsletter at http://martinez.senate.gov.

Sincerely,

Mel Martinez
United States Senator

Comment by Bill Tucker on September 22, 2008 at 6:59am

Hello to all,
Let me start by thanking everyone who is part of the search for solutions to our collective independence from foreign oil and climate endangering use of gasoline and diesel vehicle fuel.
One of the largest obstacles locally to T. Boone’s plan is the lack of open to the public CNG fueling stations, and the fact that few if any are in the planning stages. To correct this and allow for Central Florida to become part of the solution to our collective problem, I am looking for assistance from legal and accounting professionals that would be part of a group to study the feasibility of establishing a not for profit corporation.
The not for profit corporation would be used to jump start the establishment of Central Florida CNG and Hydrogen fueling stations that would be open to the public. By establishing open to the public CNG and Hydrogen fueling stations the public would be encouraged to purchase or convert vehicles to CNG, and would allow companies like Honda to make available Hydrogen vehicles like the FCX Clarity. At present Honda is producing the FCX Clarity only in limited quantities and those vehicles will not be available anywhere in the southeastern U.S. because we have no open to the public Hydrogen fueling stations.
I am also looking for people with prior fund raising experience and volunteers that would be interested in pushing this agenda. Anyone who is interested in discussing this further is encouraged to contact me either by Pickens Plan email or forum post on the Local projects group forum “Starting a CNG fueling station”

Comment by Bill Tucker on September 15, 2008 at 10:58am

Hey I just recieved this email from Kevin Wiehle, he says he is an anyalst with the PSC and is writing after a discussion with Florida Senator Bill Posey's staff:

Mr. Tucker,



I am an analyst with the Florida Senate Committee on Communication and Public Utilities. I talked to Russ, Senator Posey’s aide, about these issues last Friday.



The proposed rule language being discussed at the PSC staff level right now is a preliminary draft. It may change significantly. It does sound like they are trying to balance all interests and create an RPS requirement that will provide an incentive for all producers of renewable energy.



Whatever the PSC ultimately does with an RPS rule will have to come to the Legislature for approval. Staff is aware of the issues you raise, and will keep them in mind during this process.



In the meantime, we are working on a report to identify issues and considerations policymakers should take into account when making any policy changes relating to electricity. This report is due on October 1, and will be released sometime after that. We will get a copy to Senator Posey’s office when it is released. You can obtain a copy online at http://www.flsenate.gov/Committees/index.cfm?Mode=Committee%20Publications&Submenu=2&Tab=committees.



Thanks for your interest and input.



Kevin Delete Comment

Comment by D.Thomas Laskowski on September 8, 2008 at 7:41pm

Has anyone checked out http://alcoholcanbeagas.com/ seams more fesable than converting to natural gas

Comment by Bill Tucker on September 8, 2008 at 1:34am

The first one was a responce from U.S. Senator Bill Nelson,
The second is from Bill Posey running for U.S. Congressional seat for my district. U.S. Senator Mel Martinez has not bothered to comment to telephone calls or emails. Delete Comment


Dear Mr. Tucker:

Thank you for contacting me regarding the need to develop alternative fuels and energy efficient technologies.

I believe the United States needs to become energy independent and reduce its greenhouse gas emissions, and I have been a staunch and consistent supporter of measures that increase the use of alternative sources of energy, including wind and solar power. I also voted numerous times to extend all current renewable energy tax credits.

We must develop new energy-efficient technologies in cars, appliances, and commercial buildings. I voted in favor of increasing fuel economy standards in cars and trucks, and I support researching the development of cars fueled by hydrogen and other sources of energy.

I appreciate the time that you have taken to be involved and informed about this matter. As we continue to discuss energy issues in the Senate, I will keep your views in mind. Please do not hesitate to contact me in the future.


Dear Mr. Tucker,

Thank you for taking the time to write.

I am not sure about the specific percentages, but give my whole hearted agreement to the need to reduce our nation's dependence on our enemies for fuel. And, the need to do whatever it takes to explore every reasonable alternative fuel source - solar, nuclear, hydrogen, wind, etc, as you indicated.

You and I are not the only ones outraged by congressional leadership's decision to put a vacation ahead of solving our energy problems. I believe they will soon regret their cavalier attitude.

Best regards,

Bill Posey Delete Comment

Comment by Bill Tucker on August 26, 2008 at 1:00pm

Check out this link and see what the "Green Chip Review" has to say about the Pickens Plan and global wind energy

http://www.greenchipstocks.com/newsletter.php?date=2008-08-26

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