Just in time for the 2018 legislative session, a way to actually understand Virginia energy law

The sections of the Virginia Code devoted to energy law present a nearly impenetrable thicket to anyone who isn’t a lawyer—and indeed, to most lawyers as well. Sentences sometimes go on for pages without a break, with clauses wrapped in other clauses like a set of Russian nesting dolls. Words don’t always mean what they do in ordinary English, but you won’t know that unless you find your way to separate sections containing the surprise definitions. And references to “Phase I” and “Phase II” utilities seem deliberately calculated to confuse. (For the record, they mean Dominion and APCo.)

Lawyers are said to like complicated and obscure language because it ensures their services remain in demand, but I’ve never met a fellow lawyer who actually subscribed to this cynical view. Most believe we are all better off when laws are easy to understand, both so we can comply and, when necessary, make reforms. This is especially true when the laws are like Virginia’s: packed with favors to powerful monopolies and riddled with booby-traps for consumers. It’s hard to change a law if you can’t make head or tail of it to begin with.

So the law firm GreeneHurlocker deserves applause for its new guide to the Virginia Code’s electric utility laws. The 33-page booklet pulls together the major relevant code sections and annotates them in clear and concise English with virtual sticky notes. Principles of Electric Utility Regulation in Virginia is not a textbook or even a primer, but something more like a travel guide, complete with a map and signposts directing the traveler to sites of particular interest.

In announcing the release of the guidebook, GreeneHurlocker lawyer William Reisinger said the intent was to provide a sort of “’Cliffs Notes’ for some of the complicated utility statutes. We have no agenda with this document, other than to help demystify some of these laws and provide some useful background.”

They’ve succeeded. Those who are used to rummaging around the online version of the Code in search of the right section to answer a particular question will find the guidebook a huge timesaver. For others who don’t even know where to begin with the Code, it offers a way in.

Perhaps most importantly, for legislators and other leaders used to relying on lobbyists to tell them what is in the Code, the guidebook will make it easier for them to do their own research.

When I first saw the guidebook, I had a momentary fear (which was also a momentary hope) that it would put my own annual “Guide to wind and solar policy” out of business as a source for policy information. As it turns out, though, the two take very different approaches and are useful for different purposes.

So you may find a use for both, but in any case you will certainly want GreeneHurlocker’s guide.

Show up and be counted

Just in case you own neither a television nor a mailbox, don’t read a newspaper, only use your computer to watch videos of a Japanese cat with a thing for boxes, and never answer a telephone call from an unfamiliar number because it might be Rachel from Cardholder Services . . .

Tomorrow is Election Day in Virginia. Judging from the ads, politicians think you are most interested in which candidate has a hidden agenda of coddling violent gang members, or which one will dramatically lower our taxes simply by cutting the waste that every one of his predecessors somehow missed.

But I’d like to put in a plug for choosing candidates who support people over corporations, the public good over special interests, the environment over polluters, and the free market over monopoly. And if the candidates you’re choosing between don’t do any of those things as well as they should, vote anyway, because only by voting do you have the right to hold elected officials accountable.

The Virginia Chapter of the Sierra Club has endorsed candidates at the state and local level whose background and responses to questionnaires and interviews show they are most likely to support the environment in office. The endorsements are made by the chapter’s Political Committee and the volunteer Executive Committee, in consultation with members most knowledgeable about the issues and the candidates. As a non-partisan organization, the Sierra Club can and does endorse Republicans as well as Democrats, but the Republican vow of ignorance on climate change tends to make it hard to find ones the Club can endorse. (The standout exception is Republican Delegate Randy Minchew of Leesburg.)

A group called Activate Virginia has also compiled a handy list of candidates who have pledged not to take contributions from the likes of Dominion Energy, which has used its remarkable influence to enrich itself at the expense of consumers and lull even otherwise savvy leaders into supporting the expansion of fossil fuel infrastructure.

Personally, I find it pretty easy to know who to vote for. No serious candidate still denies that the planet is warming or that humans are causing it. (Regrettably, we have a lot of un-serious candidates.) Governor McAuliffe finally put in motion a proposed rulemaking that would lower carbon emissions from power plants. Ralph Northam has pledged to see it through if he is elected Governor. Ed Gillespie has pledged to kill it. Northam gets my vote.

New fracked gas pipelines will raise energy prices and commit Virginia to decades more of rising greenhouse gas emissions, while crowding out cleaner and cheaper renewable energies like wind and solar. Candidate for Lieutenant Governor Justin Fairfax opposes the pipelines, while Jill Vogel repeats the mindless “all of the above” pablum so popular with politicians who aren’t troubled by the difference between a mountaintop dotted with wind turbines and one blown up for its coal. Fairfax gets my vote.

Attorney General Mark Herring has been a champion for the environment and consumers in court and before the State Corporation Commission. His challenger John Adams has a cool name. Herring gets my vote.

For minorities and the poor, “cheap” energy comes at a high cost

Utilities and other energy companies often resist clean energy mandates and tighter environmental regulation, but they swear it’s not about their lost profits. No, it is their single-minded devotion to the public good that drives them to defend fossil fuel pollution. Only by fouling the air and water can they keep energy costs low, especially—cue the crocodile tears—for minorities and poor people. Guest blogger Kendyl Crawford weighs in with a closer look at the real effect of fossil fuels on the folks polluters say they care about.

Children from the Southeast Care Coalition make their point about the link between air quality and asthma.

Children from the Southeast Care Coalition make their point about the link between air quality and asthma.

By Kendyl Crawford

There is an old adage that goes, “When White America sneezes, Black America catches pneumonia.” It describes the way problems affecting the economy as a whole are magnified for African-Americans, whose place on the economic ladder is already tenuous. The same can be said for Latinos, recent immigrants, and members of low-income communities. And just as these Americans are the ones hardest hit by economic setbacks, so they are the ones who suffer most from an energy economy based on fossil fuels.

Worse, they are often used as pawns by fossil fuel companies who declare that poor people need cheap energy, without accounting for the true cost of that energy. And that true cost can be very high. Over half a million people in Virginia live within 3 miles of coal-fired power plants. Of this group, 52% are minorities and 34% are members of the low-income community. This doesn’t seem like much of a disparity until you realize that Virginia has a total minority population of 35% and a low-income population of 26%.

The fossil fuel industry has a long history of siting power plants strategically, avoiding upper class, white areas whose residents have the power and influence to be able to cry NIMBY (Not In My Back Yard). Communities with less political and economic power got stuck with the facilities—often along with other unwanted neighbors like highways, heavy industry, and waste dumps. In many cases, the communities were there first and then became the victims of zoning changes that gave the green light to polluting facilities. Residents ended up with higher environmental health burdens and lower home values, often with no compensating economic boost from the presence of the facility. The term for siting highly-polluting facilities in these communities now even has its own acronym: PIMBY, for “Put it In Minorities’ Back Yard.”

The 2014 NAACP Coal Blooded: Putting Profits before People report gave five Virginia power plants an F for their environmental justice performance, a grade based on how much a particular plant impacts both low-income and minority communities. The score takes into account the amount of sulfur dioxide and nitrogen oxides air pollution; total population within a three-mile radius of a facility; median income; and the percentage of minorities that make up the population in the close vicinity.

The NAACP report also gave a failing environmental justice performance score to Virginia’s largest utility, Dominion Resources. Dominion ranked as the 6th worst performing company in the U.S. and a “worst offender” in terms of environmental justice.

It’s not just coal. The Clean Air Task Force report Gasping for Breath highlights the fact that nationwide the oil and gas industry releases 9 million tons of pollution such as methane and benzene annually. Many of these toxic pollutants have been linked to cancer and respiratory disorders as well as increasing smog. Every summer there are 2,000 visits to the emergency room for acute asthma attacks and more than 600 hospital admissions for respiratory diseases that are directly related to the ozone smog that results from oil and gas pollution.

Not surprisingly, asthma takes its greatest toll on minorities. According to the EPA, black children are about four times more likely to die from asthma than white children. They are also twice as likely to be hospitalized for asthma. From 2001 to 2009, the asthma rate for black children increased almost 50%. African Americans, with lower rates of health insurance coverage, have fewer resources to manage these added stressors.

Latino children fare similarly poorly. Higher poverty rates and lower rates of insurance coverage mean Latino children have more severe asthma attacks than non-Hispanic white children and are more likely to end up in emergency rooms.

Of course, it’s not just minorities who suffer the harmful consequences of fossil fuels. Low-income people in general have fewer choices in where to live, have less access to health care, and often have little political power. In Virginia, this includes many residents of coalfields communities, whose families may have worked in coal mines for generations and yet have little to show for it.

Climate change will only increase the burden on minorities and low-income communities. For instance, many African American communities have historically been relegated to the least-valued land in a particular city or county, and this land is often low-lying. A recent article exposed the fact that when public housing is destroyed due to sea level rise, stronger storm surges and more extreme storms, it often doesn’t get rebuilt, forcing folks to relocate permanently.

Atmospheric warming will also lead to more health issues related to air pollution, which tends to increase with higher temperatures. But heat itself will take a toll, too, especially for those in substandard housing or who can’t afford air conditioning.

Most at risk will be those who work outdoors, among them construction workers, landscapers and farmworkers. Again, these are disproportionately minorities. Latinos make up about 48% of farm workers and almost 30% of construction workers in the U.S. As noted in the report Nuestro Futuro: Climate Change and U.S. Latinos, Latinos are already three times more likely to die from heat-related causes on the job than non-Hispanic whites. Climate change is expected to increase temperatures further. Hispanic communities are also generally located in areas of cities that are the hottest due to lack of vegetation and green spaces and the use of heat-trapping building materials.

These health impacts will be compounded by high poverty levels and low rates of health insurance. A Hispanic who is employed has less of a chance of having health insurance than a non-Hispanic person. When conditions like cardiovascular disease or diabetes are not treated and controlled, they can trigger visits to the emergency room after being exposed to extreme heat. Not to mention, language barriers can make it harder to obtain care.

Recent immigrants may also face greater difficulties following severe weather events, which are expected to increase in both frequency and intensity. Depending on their immigration status, disaster assistance may be hard to obtain or even completely unavailable.

So when utilities and fossil fuel companies urge our political leaders to keep energy costs low for the poor folks, we should recognize that what they really want is to keep profits high for themselves. They aren’t doing their customers any favors.

Kendyl Crawford is a Program Conservation Manager with the Virginia Chapter of the Sierra Club.

 

Dominion’s Own Model Shows that 15,000 MW of Solar Would Save Virginia Customers $1.5 Billion

powerhouse_six_1_megawatt_solar_array_ettp_oak_ridge_2016_courtesy-doeDominion Virginia Power has begun making good on its commitment to install 400 megawatts of solar in Virginia, a goal we have been cheering. Dominion argues its projects make economic sense. That leads us to wonder: if 400 MW makes economic sense, would more be even better? As guest blogger Will Driscoll reveals, we don’t need to speculate; Dominion ran the numbers. They just didn’t like the answer. 

By Will Driscoll 

Dominion Virginia Power modeled a resource plan with 15,000 megawatts of solar power, which it calculated would save Virginia customers $1.5 billion compared to a plan that includes a $19 billion nuclear reactor.  Yet when the company submitted its menu of resource options to regulators at the State Corporation Commission as part of its 2016 Integrated Resource Plan (IRP), it included the North Anna 3 nuclear plant while omitting the high-solar option.

The high-solar option only became public when attorneys Will Cleveland and Peter Stein of the Southern Environmental Law Center (SELC), representing an environmental coalition, asked the right questions during the discovery phase of the IRP proceedings.

Utilities in 33 states must periodically file an IRP.  The IRP is intended to define the least-cost set of resources that can meet forecasted electricity demand plus a reserve margin, while also meeting the state’s policy goals on renewables and efficiency.  Utilities use computer models to develop an IRP.

Dominion’s utility planning model generated the 15,000-megawatt solar option when the utility set no constraint on the amount of solar that could be added.

The high-solar plan would actually save Virginians much more than $1.5 billion, according to an expert witness in the IRP hearing, former Texas Public Utility Commissioner Karl Rabago.  The projected $1.5 billion in savings would be after Dominion’s projected $5.8 billion of solar integration costs (i.e., any costs needed to adapt the grid for a high level of solar).  Yet the $5.8 billion value “is at least 54 to 84 percent higher than the PJM high and low [integration cost] numbers that [Dominion] cites,” Rabago said.  Thus, “the overall savings … [with] a more reasonable approach to the integration costs would be much higher than $1.5 billion.” (PJM is a regional transmission organization that coordinates the movement of electricity through Virginia, Maryland, Delaware, New Jersey, Pennsylvania, Ohio, the District of Columbia, and parts of seven other states.)

To those who have followed the low and still-falling costs of utility-scale solar, it may not be surprising that solar, including any integration costs, would cost less than the proposed North Anna 3 nuclear reactor.  But to learn that Dominion’s own utility planning model presented that result to Dominion is a revelation.

To justify discarding the high-solar option, Dominion executive Robert Thomas said that “15,000 megawatts of solar… was a lot of land.” Yet data from the National Renewable Energy Laboratory show that this amount of solar would need only 0.4 percent of Virginia’s land area (i.e., 15000 MW times 7.9 acres per MW, divided by 27.376 million acres of land).  Mr. Thomas also said that the high-solar option “could create reliability issues,” yet high-renewables utilities in Iowa, South Dakota, California and Europe are highly reliable, thanks to accurate day-ahead weather forecasting and sophisticated utility “unit commitment” models that are also available to Dominion.

The State Corporation Commission, in its final order regarding Dominion’s IRP, did not mention the high-solar option.  The SCC approved the IRP as submitted, noting that “approval of an IRP does not in any way create the slightest presumption that resource options contained in the approved IRP will be approved in a future certificate of public convenience and necessity (“CPCN”), rate adjustment clause (“RAC”), fuel factor, or other type of proceeding governed by different statutes.”

SELC attorney Will Cleveland called on Dominion and the SCC to do better next time: “Citing ‘feasibility concerns,’ Dominion rejected and buried the high solar resource plan without any legitimate analysis of whether the plan was in fact feasible. Virginia ratepayers deserve the lowest-cost, cleanest energy available, and it is increasingly clear that means more solar, not more fossil fuels or nuclear. In the future, Dominion should not be allowed to dismiss the cheaper, cleaner resource plan without a full analysis.”

The environmental coalition represented by SELC consisted of Appalachian Voices, Chesapeake Climate Action Network, and the Natural Resources Defense Council.

Will Driscoll is a writer and analyst.  Previously he conducted environmental analyses for EPA, as a project manager for ICF Consulting.  His publications include the book Nonproliferation Primer (MIT Press).

Basic change in utility business and regulation is inevitable: Advanced energy is coming to all utilities, like it or not.

Photo credit: Sierra Club

Photo credit: Sierra Club

Occasionally I ask other people to write for this blog, not merely because I am lazy, but also because energy policy is such a broad topic that I sometimes overlook new developments and perspectives. This week guest blogger Jane Twitmyer takes a step back from the battle over our energy future to point out that the battlefield itself is shifting under our feet—a fact which, if ignored, could cost utility customers dearly.  –I.M.

A favorite utility narrative holds that the federal Clean Power Plan is the reason we must upgrade our electric utility system and reduce emissions from fossil fuels. Without it, we could continue to run our big coal and gas plants and leave unchanged the transmission grid that has served us so well. But the truth is, the EPA as ‘bully’ is a myth. A new report from the North American Electric Reliability Corporation (NERC) concludes “significant changes are occurring” in the way we generate and use electricity regardless of whether or not the Clean Power Plan, still under court challenge, is implemented. One change: NERC has tripled the amount of new renewable energy generation it predicts for next year.

NERC is just catching up with analysts and investment banks, who have been documenting the changes for several years. The Rocky Mountain Institute warns that grid-connected, solar-plus-battery-storage systems “will be economic within the next 10-15 years for many customers in many parts of the country,” undercutting utility sales and turning electricity markets “upside down.”

Investment analysts agree. CitiGroup predicts utilities could suffer a “50%+ decline in their addressable market.” Elon Musk, CEO of Tesla, just made an offer to buy SolarCity because he believes on-site generation will eventually supply a third of our total electricity, and will be accompanied by huge amounts of battery storage like Tesla’s Powerpack.

Musk believes electric cars will increase demand for electricity, but other analysts see energy efficiency lowering demand. Efficient buildings are given a central place in the new energy mix in the NERC report.

Using less energy, or increasing our energy intensity, will reduce demand significantly without creating the economic disaster we have been warned will occur. Minnesota found the state’s efficiency program returned $4 for every $1 invested, helping to create almost $6 billion in new economic output. One of Warren Buffet’s utilities expects to reduce demand enough to close a couple of old coal plants and still not need any new generation until 2028. The utility is financing those retrofits for its customers’ buildings.

E-Lab, a group at the Rocky Mountain Institute that works with all industry stakeholders to chart our electricity systems, also sees changes in grid management systems making delivery of electricity more efficient. Pilot projects using new technology with grid-regulating software and designed with a variety of regulatory changes and financing models are being tested all around the country.

Each kilowatt-hour supplied by a rooftop solar panel, stored in an on-site battery, or saved by an efficient building, means one less kilowatt-hour utilities must generate. This inevitable reduction in central grid demand is why the future isn’t just about switching resources, like burning gas instead of coal, or even building solar and wind farms. The future is about a re-imagined system that allows and encourages you and me and our local mall to make our own electricity on-site, feeding some of what we make into storage and some onto the grid, and allowing us to draw on the grid when we need to.

We have the technology to create the new system, and regardless of any new EPA rules, this is the right time to replace the old technology. In 2010, 70% of our coal plants and all of our nuclear facilities were more than 30 years old. Recently SNL Energy identified 21,357 MW of coal, gas and nuclear generation “at risk” of early closure through 2020, plants that are inefficient and no longer economic to run.

Here in Virginia, our utilities don’t seem to be getting the message. Dominion Virginia Power has chosen to put most of its new investment dollars into large-scale natural gas plants, not renewable energy. Five or six years ago natural gas was believed to be the ‘transition’ fuel that could take us from coal to renewables-based electricity. We now understand that methane, released when extracting and distributing gas, is 86 times more potent as a greenhouse gas than CO2 while it is in the atmosphere. In addition, methane emissions have been both underreported and inaccurately measured, raising concerns that the climate impact of natural gas may be far greater than originally thought. New methane rules are being developed that should give us a better picture of actual emission levels, but it is already clear that if natural gas is a bridge fuel, the bridge must be a short one.

With analysts predicting the transition to renewable energy will happen sooner rather than later, investing heavily in new gas plants carries a significant economic risk as well as a climate risk. Investors like UBS Bank believe too many large plants will be “structural losers,” assets whose use is diminished before they are paid for. Going forward, we will still need to use some measure of natural gas, but natural gas can no longer be labeled the ‘transition’ fuel.

Our utility systems are at a crossroad. One road requires our utilities, our regulators and our legislators to re-imagine our electricity system, rethinking the old monopoly rate regulations that reward centralized fossil fuel generation. This reimagined system will require a grid that is no longer the rigid one-directional distributer of electricity, but rather one that finds value in resources that generate and store electricity where it is used. If we fail to take that road, the alternative path will lead to ‘grid defection’: customers choosing to leave the grid and provide their own electricity by installing solar with batteries and retrofitting their buildings to use less. One thing is certain: a top down, monopolistic, state-regulated system is NOT the future.

As NERC concluded, changes to the energy mix, and to the level of demand, are happening with or without the Clean Power Plan. They are happening because it is time to rebuild our aging energy infrastructure. They are happening because the technology is now available to create an energy system that protects our air and our water as well as our atmosphere. And the changes are happening because a rebuilt system, designed as an interactive network, not a one directional, top-down grid, will actually be a cheaper system. It will be a system that is more reliable and more resilient, as well as more secure from storms and attack. That rebuilt system will serve Virginia’s electricity customers better without risk to our air, our water or our climate.

Jane Twitmyer is a renewable energy consultant and advocate.

 

Virginia’s energy future is up for discussion this Wednesday in Arlington

Visitors tour the solar installation on the roof of Wakefield HS in Arlington. Photo credit Phil Duncan

Visitors tour the solar installation on the roof of Wakefield HS in Arlington. Photo credit Phil Duncan

Those of you in Northern Virginia might be interested in attending a screening of the film “The Future of Energy” at the Arlington Cinema and Drafthouse on Wednesday, May 25 at 7:30 p.m. I will be leading a discussion of energy issues and the future of renewable energy in Virginia following the movie.

“The Future of Energy: Lateral Power to the People” is billed as “a positive film about the renewable energy revolution,” and “the people and communities leading the way towards a renewable energy future.” You can watch the trailer on the website of the Arlington Cinema and Drafthouse.

Arlingtonians for a Clean Environment (ACE) is hosting the screening. Tickets are $10, or $5 for students at the door. Doors open at 6:30, which is a good time to arrive if you want to order dinner and drinks and talk to some of the local environmental leaders who are attending.

ACE and the Sierra Club have teamed up on a campaign called “Ready for 100,” with a goal of leading Arlington and the city of Alexandria towards a goal of 100% renewable energy for the electric sector by 2035. ACE’s director, Elenor Hodges, and Dean Amel, Chair of the Mount Vernon Group of the Sierra Club, will be on hand to provide more information about the “Ready for 100” campaign. Arlington Energy Manager John Morrill will also be there to answer questions.

ACE is also working with VA-SUN on a new solar bulk-purchasing cooperative for Northern Virginia residents and businesses called the Potomac Solar Co-op and will have information available about it on Wednesday. An information session for the co-op is planned for June 8.

Arlington is already recognized for its leadership on clean energy, with groundbreaking projects like a net-zero-energy elementary school. But getting to 100% will take a truly determined, collective effort on the part of homeowners, businesses and local government. We will also likely need to see reforms to state policies and laws that currently present barriers to renewable energy. These state barriers affect all Virginians, so while Wednesday’s focus will be on Arlington, the discussion will be relevant to everyone who wants to see a clean energy future in Virginia.

Republicans find new way to stop McAuliffe moving forward on Clean Power Plan

Must not be a Virginia Republican. Photo courtesy of Glen Besa.

Must not be a Virginia Republican. Photo courtesy of Glen Besa.

Virginia Republicans have found a new way to obstruct development of a state plan implementing the federal Clean Power Plan: take away funding for it. A line inserted by House Republicans in the state budget will prevent the Department of Environmental Quality from using any funds “to prepare or submit” a state implementation plan unless the U.S. Supreme Court’s stay of the Clean Power Plan is released.

Governor McAuliffe is fighting back, but the approach he has taken is expected to fail in the face of Republican majorities in the House and Senate. He has responded by offering an amendment to the budget item, removing “prepare or” from the Republicans’ budget amendment. The result would retain the prohibition on submitting a state plan while the Supreme Court’s stay is in effect (a harmless prohibition since EPA won’t accept them for now anyway), but allows DEQ to continue developing the state plan.

McAuliffe’s amendment accords with his support for the Clean Power Plan and his pledge to continue development of an implementation plan even while the EPA rule is in limbo. He has already vetoed Republican-backed bills that would have required DEQ to submit any implementation plan to the General Assembly for approval before sending it to the EPA. These vetoes can only be overridden by a two-thirds majority, and Republicans don’t have the numbers.

But the budget amendment is doomed to fail. A governor’s budget amendment can be defeated by a simple majority vote. House Republicans are expected to vote in lock step to reject the amendment when the General Assembly reconvenes April 20.

Environmental groups had expected the governor to use a line-item veto to strip out the offending language. Doing so would have meant the Republicans couldn’t muster a two-thirds majority to overcome the veto. We’re told McAuliffe changed his approach on the advice of attorneys who felt a line-item veto invited a constitutional challenge. The result, though, is a loss for the Governor.

Worse, it means Virginia will lose time in crafting a plan to diversify and de-carbonize our electricity grid. As a coastal state on the front lines of sea level rise, Virginia has more to lose than almost any other state from our fossil fuel addiction. And for Virginia, compliance with the Clean Power Plan is so easy that it’s hard to listen to Republicans fuss without picturing tempests in teapots.

Obviously, Republican opposition to a plan to cut carbon is neither more nor less than an act of spite aimed at President Obama. But what have they gained with this maneuver? At most it’s a “win” for an old energy model built on obsolete coal plants owned by bankrupt corporations that have laid off thousands of workers and cut the benefits of retired miners while lavishing campaign cash on legislators and paying millions of dollars in executive bonuses. That’s not the kind of win you put on campaign posters.

The Sierra Club and other climate activists plan to call out the House Republican leadership for their budget maneuver with a rally at the Capitol at 10 a.m. on April 20, during the veto session. The event, fittingly, is called “Turn Up the Heat in the House.”