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Virginia hearing examiner says renewable energy PPAs are legal, but will the ruling stick?

A third-party PPA made it possible to build this solar facility at the University of Richmond. Appalachian Power Company contends that a project like this would be illegal in its territory.

A third-party PPA made it possible to build this solar facility at the University of Richmond. Appalachian Power Company contends that a project like this would be illegal in its territory.

A hearing examiner for the Virginia State Corporation Commission recommended on August 31 that the SCC reject Appalachian Power Company’s proposed alternative to third-party power purchase agreements (PPAs) for renewable energy, concluding the program is not in the public interest. The parties will have three weeks to comment before the recommendation goes to the Commissioners for a final decision. The case is PUE-2015-00040.

The ruling against APCo’s proposed Rider RGP is less important to customers than the reasoning behind it. In addition to finding a myriad of faults with the proposal, the Hearing Examiner concluded it isn’t needed because PPAs are already legal under the Virginia Code. This is an outcome long sought by the solar industry and environmental groups, and one supported by the Attorney General’s Office of Consumer Counsel.

However, the Hearing Examiner’s report is merely a recommendation. Nothing is final until the Commissioners rule, and they could make a decision about Rider RGP without addressing the current legality of PPAs. Moreover, earlier this year, APCo proposed another program that it clearly hopes will nip in the bud any surge of PPA activity that might result from a decision in the present case. (I’ll get to that in a moment.)

The rejection of Rider RGP won’t disappoint any would-be customers. A long line of witnesses testified at the hearing on September 29, 2015 that APCo’s expensive and convoluted program would find no takers. As the Solar Research Institute summarized it, the proposed Rider RGP “would require a customer interested in a solar PPA to first pay for 100% of their service under the standard tariff, pay for 100% of the solar energy generated, pay a $30 program fee, and receive excess payments back through a Renewable Output Credit.” Oh, and they still wouldn’t be using renewable energy. (Note that although solar energy was the focus of the discussion for participants, the decision applies to other forms of renewable energy as well.)

The SCC staff made some suggestions to improve the program, but the hearing examiner, Deborah Ellenberg, concluded it was really beyond saving. Not only that, but the plain language of the Virginia Code makes third-party PPAs legal in the state already. Thus, there is no need for a utility-sponsored alternative.

Ellenberg pointed to two statutory provisions that support the legality of third-party PPAs. First, Virginia Code §56-577 A 5 provides that customers may purchase renewable energy from third-party sellers if their own utility does not offer a tariff for renewable energy. Specifically, customers may:

[P]urchase electric energy provided 100 percent from renewable energy from any supplier of electric energy licensed to sell retail electric energy within the Commonwealth . . . if the incumbent electric utility serving the exclusive service territory does not offer an approved tariff for electric energy provided 100 percent from renewable energy. . . .

Until now, APCo has offered only a green power program that sells RECs, which the SCC says doesn’t count.

The language of §56-577 sounds clear enough, but APCo and Dominion Power have maintained that this section only allows customers to go elsewhere if the other supplier can provide 100% of their electricity from renewable energy, something that can’t be done with a solar facility or a wind turbine.

This flimsy reading of the statute was the basis on which Dominion challenged a PPA at Washington and Lee University back in 2011. The issue was temporarily resolved two years later when Dominion and the solar industry agreed to a pilot program that now allows a limited number of PPAs in Dominion territory, under tight parameters that exclude residential customers. The program never applied in APCo territory, however—a sore point to customers there. APCo has clung to its reading of §56-577, regardless of the growing clamor for renewable energy in southwestern Virginia.

Ellenberg’s report flatly rejects the utility interpretation. If the SCC adopts her reading, any customer in APCo territory would be free to buy renewable energy from third-party suppliers, until APCo offers a qualifying program.

Ellenberg also cited Virginia’s net metering statute. Virginia Code §56-594 authorizes “customer generators” to enter into behind-the-meter PPAs with third parties that own and operate a renewable facility for the customer. Code §56-594 B defines an eligible customer generator for net metering purposes as “a customer that owns and operates, or contracts with other persons to own or operate, or both, an electrical generating facility that . . . uses as its total source of fuel renewable energy . . .” (emphasis added).

Interpreting this provision takes no special legal talent, surely. It would seem to cover residential and commercial facilities installed and owned by third-party developers, including the familiar no-money-down contract offered to residential customers by Solar City. But again, APCo and Dominion Virginia Power claim the Code doesn’t mean what it says. For more than five years they’ve backed up their position with threats of lawsuits, creating the kind of uncertainty that is toxic to development deals.

If the SCC’s final order endorses the hearing examiner’s finding that PPAs are currently legal, the result could be to open up the Virginia solar (and wind) market to large amounts of private investment statewide.

However, Ellenberg’s finding that PPAs are currently legal appears in her discussion but not in her recommendations to the commissioners; her recommendations are limited to the actions she proposes (rejecting or modifying the tariff). The SCC does not have to rule on the question of PPA legality in order to decide this case. Surely, though, it would be strange if it were to duck the opportunity now that the issue has been fully briefed. With solar a hot commodity across the state, the current legal limbo has become a significant economic drag that the SCC ought not to ignore.

As I mentioned, though, APCo still has one card up its sleeve. This spring it proposed a new tariff to offer its customers 100% renewable energy derived from existing wind, solar and hydro projects. The product appears to meet the condition of §56-577. If approved, it would slam shut the door that the Hearing Examiner just opened (or rather, that she said was open all along, if you had dared to go through it into the toxic miasma where gray-suited lawyers lay in wait). APCo’s request for approval of the tariff (PUE-2016-00051) is scheduled to be heard by the SCC on November 15, with comments due by November 8.

Solar advocates take a dim view of APCo’s move. The new tariff won’t build any new facilities; it simply shifts the burden of paying for existing renewable energy projects onto volunteers, at a significant premium. In today’s market, third-party developers can offer electricity generated by new solar projects at competitive prices. So APCo’s tariff looks less like an accommodation to its eco-conscious customers, and more like a maneuver to prevent anyone from building solar on its turf.

It’s high time the SCC put a stop to this anti-competitive behavior and let Virginians build solar projects with their own money. The Commissioners can follow the Hearing Examiner’s advice, or they can take a pragmatic approach and recognize that PPAs are really just a way to finance projects. They don’t turn solar developers into utilities, and APCo should stop wasting everyone’s time and money blocking private investment in a part of the Commonwealth that desperately needs it.

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The “fuel” that’s helping America fight climate change isn’t natural gas

You’ve heard the good news on climate: after a century or more of continuous rise, U.S. CO2 emissions have finally begun to decline, due largely to changes in the energy sector. According to the Energy Information Agency (EIA), energy-related CO2 emissions in 2015 were 12% below their 2005 levels. The EIA says this is “because of the decreased use of coal and the increased use of natural gas for electricity generation.”

Is the EIA right in making natural gas the hero of the CO2 story? Hardly. Sure, coal-to-gas switching is real. But take a look at this graph showing the contributors to declining carbon emissions. Natural gas displacement of coal accounts for only about a third of the decrease in CO2 emissions.

Courtesy of the Sierra Club Beyond Coal Campaign, using data from the Energy Information Agency.

Courtesy of the Sierra Club Beyond Coal Campaign, using data from the Energy Information Agency.

By far the biggest driver of the declining emissions is energy efficiency. Americans are using less energy overall, even as our population grows and our economy expands

Energy efficiency is sometimes called the “first fuel” because cutting waste is a cheaper and faster way to meet energy demand than building new power plants. Improvements in energy performance cut across all sectors of the economy, from industrial machines to home electronics to innovations like LED bulbs replacing famously wasteful incandescent light bulbs.

Energy efficiency’s stunning success in lowering carbon emissions should get more attention, and not just because it is cheaper than building new natural gas-fired power plants. Efficiency has no downsides. Natural gas has plenty. Indeed, when methane leakage from drilling and infrastructure is factored in, natural gas doesn’t look much like a climate hero at all.

And that’s not the full story. A growing share of the credit for carbon reductions also goes to non-carbon-emitting sources, primarily wind, and solar. Both sources exhibit double-digit growth rates. Wind power in the U.S. has grown from a little over 9,000 megawatts (MW) in 2005 to more than 74,000 MW by the end of 2015. In 2005, the solar market scarcely existed. By early this year, we had 29,000 MW installed.

The solar trend is particularly exciting because we are just starting to see the big numbers that result from solar’s exponential growth. In the first quarter of 2016, more solar came online in the U.S. than all other power sources combined. Analysts like Bloomberg New Energy Finance see solar becoming the world’s dominant energy source over the next 25 years, driving out not just coal but also a lot of gas generation as solar becomes the cheapest way to make energy.

For an inspiring look at how this will happen, check out this presentation by author Tony Seba. As Seba argues, solar isn’t a commodity like fossil fuels; it is a technology like computers and cell phones. When technologies like these take off, they take over. Seba refers to solar technology, battery storage, electric vehicles and self-driving vehicles as “disruptive” technologies that are advancing together to upend our energy and transportation sectors.

Another graph shows us how critical these advancements will be. The U.S. is on track to achieve President Obama’s goal announced last year of lowering carbon emissions 17% below 2005 levels by 2020, but we will need more aggressive measures to meet our Paris Agreement target of 26-28% below 2005 levels by 2025. After 2025, of course, we will have to cut greenhouse emissions even further and faster.

Slide4Given the urgency of the climate crisis, we don’t have the option of waiting around for the solar revolution to bankrupt the oil and gas industry and fossil-bound electric utilities. These companies will not go quietly; already they are maneuvering to lock customers into fossil fuels. Power producers are engaged in a mad rush to build natural gas plants, and wherever possible, to stick utility customers with the costs.

For Virginians who have felt especially under attack from fracked gas projects recently, this final graph shows it’s not your imagination: Virginia is second only to Texas in new gas plant development underway. And this graph captures only a fraction of the new gas that Virginia’s major utility, Dominion Virginia Power, wants to build. In presentations to state officials, it revealed plans for more than 9,000 megawatts of additional gas generating capacity.

Based on Energy Information Agency data. Chart excludes natural gas generating units already under construction as well as those scheduled to come online after 2020.

Based on Energy Information Agency data. Chart excludes natural gas generating units already under construction as well as those scheduled to come online after 2020.

Dominion and other gas-happy utilities are betting that once plants are built and consumers are on the hook, regulators won’t want to see them idled ten years from now just because renewable energy has made them obsolete.

Indeed, Dominion and other utilities, including Duke Energy, Southern Company, and NextEra in the Southeast and DTE Energy in the Midwest, even plan to use electricity customers to make money for the gas pipelines they are building, locking Americans further into gas.

This is madness. The only sound energy plan today is one that looks forward to an era of minimal fossil fuel use. It puts efficiency and renewables front and center, shifting natural gas and other fuels to supporting roles that will shrink over time.

The shift is inevitable. Delaying it means allowing the climate crisis to worsen, while sticking customers with higher bills for decades to come. That may suit some utilities just fine, but the cost is too high for the rest of us.

 

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Dominion executive speaks up on climate change. That turns out to be a bad thing.

Photo courtesy of Chesapeake Climate Action Network

Photo courtesy of Chesapeake Climate Action Network

In guest blogger Seth Heald’s last post here, he discussed the strange fact that top executives at Dominion Power don’t talk about climate disruption, even though it is a major driver of the tectonic shifts underway in the nation’s power sector. Many of us assumed the climate silence at Dominion means its executives want to avoid a subject that can be politically divisive.  Turns out some of them are talking–but not in a good way. Heald brings us the story.

As I’ve written elsewhere, senior Dominion executives and other electric utility officials tend to avoid mentioning climate change in their public discussions. Dominion Virginia Power president Bob Blue avoided that unpleasant topic in his keynote luncheon speech at a recent Virginia resiliency conference, a forum where one has to work to avoid mentioning climate change. That sort of climate silence at the corporate top leaves the public wondering what Dominion executives really think, or whether they think much at all, about climate change.

It may also leave other Dominion executives in doubt about where their company stands. Last month a curious letter to the editor appeared in the Richmond Times-Dispatch headlined “Actually scientists disagree about climate.” At first glance the letter seemed ordinary—reciting misguided climate-science denial arguments for not acting to reduce greenhouse-gas emissions. It complained about “alarmists” who (the letter claimed) refuse to acknowledge benefits of climate change. And it suggested that Americans devote “our limited dollars” to adapting to climate change rather than slowing it by reducing greenhouse-gas emissions.

Letters of this ilk appear with depressing regularity in the Times-Dispatch and many newspapers. They misrepresent the state of climate science, reciting talking points that can be found on any of a number of denialist websites, or heard at conferences sponsored by fossil-fuel funded groups such as the American Legislative Exchange Council (ALEC). That’s sad, but not unusual.

But this climate-science denial letter was different in one key respect—it was written by David Shuford, a vice president and deputy general counsel at Dominion Resources Inc., Virginia’s largest energy company and the commonwealth’s biggest emitter of climate-disrupting carbon dioxide. (Shuford’s letter did not note his Dominion connection).

Now that is noteworthy.

What’s more, the Times-Dispatch published a similar Shuford letter earlier this year in which he complained about climate change “warmists” who are “watermelons” (“green on the outside, red on the inside”).

As Dave Barry would say, I am not making this up—a senior Dominion executive really is making these arguments in the press.

A few years ago Shuford served as “Vice President – Policy and Business Evaluation, Alternative Energy Solutions” at Dominion. According to Dominion’s Citizenship & Sustainability Report, the company’s Alternative Energy group “drives innovation by researching and evaluating renewable and emerging energy technologies to assess their commercial viability and potential for building a more sustainable economy.” Virginia lags neighboring states in deploying clean energy such as solar and wind, in no small part because Dominion has opposed measures of the sort that have helped other states ramp up clean energy.

That makes Shuford’s letters all the more noteworthy.

I phoned Shuford at his Dominion office to be sure he had really written the recent letter. He confirmed he had, but was quick to emphasize that he wrote it on his own, that he did not purport to speak for Dominion, and that no one at Dominion had reviewed the letter before he sent it. The letter, he said, reflects his personal views.

In an odd sense, Shuford’s going public with his views is refreshing—we know where this Dominion executive stands on climate change. His views are ill-informed and dangerous for his industry, our commonwealth, our country, and our world, but at least we know what he thinks. Which Dominion executives disagree with Shuford? Are any of them willing to publicly refute his arguments and accurately inform the public about climate change?

Is Shuford an outlier at Dominion, or do his views perhaps align with what other company executives think? Dominion acknowledges on its website that climate change is a concern, but in the same paragraph notes its plans to use greenhouse-gas emitting coal and natural gas far into the future. The company’s website says it wants a national climate change policy to “be developed legislatively,” yet Dominion also financially supports ALEC, which has worked for years to misinform legislators about climate change and block efforts to reduce greenhouse-gas emissions. Many large corporations have left ALEC for that reason, including Virginia’s other big electric utility, AEP. But Dominion has stuck with ALEC.

What’s most offensive and cruel about Shuford’s recent letter is his suggestion that we focus solely on climate adaptation rather than reducing greenhouse-gas emissions. He seems unaware of the analyses showing that reducing emissions now is highly cost effective compared to the astronomical costs of adaptation without emission reductions. And I doubt that the adapting he’s thinking of includes helping poor people in the third world adapt to sea-level rise, floods, drought, disappearing glaciers, or extreme weather caused in large part by the developed world’s greenhouse-gas emissions. Nor does he seem aware that relying on adaptation alone essentially writes off the entire Hampton Roads region, where many Dominion customers live.

Dominion claims that ethics is one of its four core values. Top executives at an ethical company would feel compelled to respond promptly, forcefully, and publicly to a published letter from a company vice president suggesting that we ought not to reduce greenhouse-gas emissions because people can simply adapt to climate change.

Dominion’s board should require the company to conduct training for executives and board members on climate-change ethics, and for that matter on climate science too.

Seth Heald is chair of the Sierra Club Virginia Chapter. He is a student in the Master of Science in Energy Policy and Climate program at Johns Hopkins University.


For curious readers, reprinted below is Mr. Shuford’s letter, as published in the Times-Dispatch. That is followed by an annotated version that provides Seth Heald’s responses to Mr. Shuford’s points (in italics), with citations to sources with accurate information.

Actually, scientists disagree about climate

Editor, Times-Dispatch:

Can we please stop the nonsense about science-supported climate change believers and science-denying climate change skeptics?

We are constantly told that “the science” is settled, that 97 percent of scientists agree on “the science,” and that the benighted few who disagree must be shunned or even prosecuted. In truth, the debate is far more real — even in the scientific community — than these armchair experts apparently realize.

There has never been 97 percent scientific agreement on the questions that matter with climate change. Simply repeating it doesn’t make it true. No one disagrees with the fact that the climate is changing. And most everyone agrees with the so-called greenhouse theory — that carbon dioxide causes the atmosphere to warm and that man has contributed to its concentration in the atmosphere.

The real debate in and outside the scientific community is over questions that flow from that theory, including the following:

(1) How much of global warming is due to mankind and how much is natural?

(2) Are there forces that counteract the greenhouse effect that aren’t being considered in the climate alarmists’ computer models (which might explain how their computer models have proven so inaccurate)?

(3) Does the absence of warming over the past 15 years disprove the alarmists’ theories about catastrophic global warming and, if not, why not?

(4) Will warming in the next century really be catastrophic, or could it actually be beneficial in ways the alarmists won’t concede?

(5) Given that the celebrated Paris Climate Agreement will have negligible effect on global temperatures even if every country complied, would our limited dollars be better spent on adapting to a warmer climate than on trying to prevent it?

So enough with the trope about the 97 percent versus “deniers.” There simply is no scientific consensus on the questions that will drive public policy on this issue.

David Shuford.

Richmond.

Mr. Shuford’s letter, with annotated response 

Editor, Times-Dispatch: Can we please stop the nonsense about science-supported climate change believers and science-denying climate change skeptics?

We are constantly told that “the science” is settled, that 97 percent of scientists agree on “the science,” and that the benighted few who disagree must be shunned or even prosecuted. In truth, the debate is far more real — even in the scientific community — than these armchair experts apparently realize.

There has never been 97 percent scientific agreement on the questions that matter with climate change. Simply repeating it doesn’t make it true.

See this 2016 paper confirming that there is a high degree of consensus about human-caused climate change among climate-science experts. See also this 2004 paper by (now) Harvard Professor Naomi Oreskes, published in Science, the journal of the American Association for the Advancement of Science. Also well worth reading is Merchants of Doubt, by Oreskes and Erik Conway, which details efforts by corporations to mislead and create confusion about the science concerning cigarette smoking and climate change.

No one disagrees with the fact that the climate is changing.

In fact a large number of people have attempted to argue that climate change is a hoax, and many still do, including a number of the candidates in the recent Republican presidential primary contest, such as Ted Cruz and Donald Trump, to name just a couple. But it is true that some of the fossil-fuel funded groups that formerly argued that there is no global warming have reacted to criticism by changing their argument to “the climate is always changing,” as if that somehow disproves the scientific consensus that human greenhouse-gas emissions are causing dangerous warming. A good example of the changing arguments of fossil-fuel-supported climate misinformers is ALEC—the American Legislative Exchange Council, which Dominion Resources belongs to and supports financially.

And most everyone agrees with the so-called greenhouse theory — that carbon dioxide causes the atmosphere to warm and that man has contributed to its concentration in the atmosphere.

Not true. Those, like Donald Trump, who say global warming is a hoax certainly don’t agree with this. Nor does Ted Cruz, who last year agreed that his climate position is “full out denial.” Some climate change deniers make statements like “carbon dioxide is harmless, you’re breathing it now,” as if that somehow disproved the disturbing warming effects that scientists have found. And of course Senator James Inhofe famously brought a snowball into the senate in winter in an effort to show that global warming is a hoax.

The real debate in and outside the scientific community is over questions that flow from that theory, including the following:

  • How much of global warming is due to mankind and how much is natural?

False. There is no real debate in the peer-reviewed scientific literature over the fact that the unusual, accelerating global warming seen since the 19th Century is attributable to the increase of greenhouse gases, primarily carbon dioxide, in the atmosphere due to burning fossil fuels. An excellent book to read on this is The History of Global Warming, by Spencer Weart (2d ed. Harvard Univ. Press 2008). It’s a scholarly book that is clear and approachable for lay readers. See also the links below to reports by several prestigious scientific bodies.

  • Are there forces that counteract the greenhouse effect that aren’t being considered in the climate alarmists’ computer models (which might explain how their computer models have proven so inaccurate)?

What are these unnamed “forces”? Shuford doesn’t say. What is Shuford’s evidence that climate models have “proven so inaccurate”? In fact climate models have proven to be generally accurate in predicting the warming that has occurred. The fact that they are not perfect is hardly surprising. Moreover, our knowledge of global warming is informed not only by models, but studies of the Earth’s warming and cooling over millions of years, which have shown a direct link between high atmospheric concentrations of carbon dioxide and higher global temperatures.

  • Does the absence of warming over the past 15 years disprove the alarmists’ theories about catastrophic global warming and, if not, why not?

There hasn’t been an absence of global warming in the past 15 years. In fact 2014 and 2015 set new records for average global temperatures. Shuford’s claim, which is promoted by a number of fossil-fuel supported interests is demonstrably false. Scientific American published a good summary of the issue earlier this year.

  • Will warming in the next century really be catastrophic, or could it actually be beneficial in ways the alarmists won’t concede?

This claim is not only absurd, but unethical and cruel in its disregard for the world’s poorest people who are threatened in this century and next by sea-level rise, storm surges, disappearing glaciers, flooding, drought, and mass species extinctions. There may well be a small number of people who will benefit during their lifetimes from warmer temperatures and a changed climate, but that is dwarfed by the number of people who will suffer by losing their property, their livelihoods, their health, and their lives due to climate change. Our species evolved to live in the stable climate we’ve had for thousands of years, and people settled in places suitable for the climate we have. The Hampton Roads area, which is served by Dominion Virginia Power, is particularly susceptible to future inundation, which will affect rich and poor Virginians, with the poor harmed disproportionately and least able to recover quickly from their losses.

  • Given that the celebrated Paris Climate Agreement will have negligible effect on global temperatures even if every country complied,

Shuford’s boss at Dominion, Thomas Farrell, II, has refused to talk publicly about the Paris Climate Agreement, which will dramatically affect his and Shuford’s company. Perhaps this sort of silence at the corporate top leads to Shuford feeling comfortable to mock (and attempt to minimize the effect of) the Paris Agreement in Dominion’s hometown daily newspaper. Virtually every nation in the world worked to negotiate the Paris Agreement. What does Shuford mean by “have neglible effect”? In fact the Paris accord will help a great deal. Yes, the world still needs to do more, but that means we should be calling for faster and sharper greenhouse-gas reductions.

would our limited dollars be better spent on adapting to a warmer climate than on trying to prevent it?

This again is cruel, particularly to the world’s poor, who have done so little to cause global warming, and who are and will be suffering disproportionately from it. It is unlikely that Shuford is calling for our “limited dollars” to go to helping people in Bangladesh adapt to sea level rise, or people in Nepal, Pakistan or Bolivia adapt to a word where glaciers that they depend on for subsistence agriculture have disappeared. The type of adaptation Shuford is perhaps unwittingly calling for would involve mass migrations by tens of millions of poor people around the globe. Shuford also appears to be unaware of or ignores the strong economic arguments for reducing carbon emissions now, rather than later. These are set forth in detail in two recent books The Climate Casino (2013 Yale Univ. Press), by Yale economist William Nordberg, and Why Are We Waiting? (2015 MIT Press) by Nicholas Stern, a professor of economics and government at the London School of Economics. Both are scholarly books rather than page-turners, but they’re sufficiently clear and approachable to be readable by non-specialists. Do any executives or board members at Dominion read books like these, which provide key insights on the future of Dominion’s business? Perhaps if they did they’d be more likely to talk about climate change at work and in their public speeches.

So enough with the trope about the 97 percent versus “deniers.” There simply is no scientific consensus on the questions that will drive public policy on this issue.

Wrong again. Good explanations can be found in this publication from the American Academy for the Advancement of Science, and this one published jointly by the U.S. National Academy of Sciences and the British Royal Society. Also, Inside Climate News recently described a new study published in Science about how fossil-fuel funded climate-science deniers disingenuously shift their arguments and use normal scientific uncertainties to deflect attention from the overwhelming scientific consensus on climate change and argue for no action to reduce greenhouse-gas emissions. That’s what we see in Shuford’s letter. That’s not to say necessarily that Shuford personally is disingenuous. Perhaps he really doesn’t know better (although a man in his position certainly ought to know better), and has just repeated what he saw on a fossil-fuel funded denial group’s website, or heard at an ALEC conference.

 

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Yay, Dominion is building solar! Just not for you.

solar installation public domainThis week’s news of an 18 megawatt solar facility to be installed at Naval Station Oceana in Newport News marks the latest in a string of announcements of new solar projects to be built in Virginia. The Commonwealth had only about 22 megawatts of solar installed as of the end of 2015, but by the end of this year, we should be comfortably into the triple digits. That’s still trivial compared to neighboring North Carolina, which added over 1,000 megawatts last year alone, but it’s grounds for celebration here in the “dark state.”

How is this happening? Customer demand, coupled with falling costs, finally wrought a change of attitude at Dominion Virginia Power. The state’s largest utility dragged its feet on solar for years until announcing, in early 2015, plans to spend $700 million on 400 megawatts of solar power in Virginia by 2020.

The welcome change comes with a caveat: while these new projects will supply solar to important and influential customers like Microsoft, Amazon, and even the state government itself, Dominion offers no programs to supply solar to ordinary Virginians. And indeed, even where ratepayers are footing the bill for projects, our regulators insist that the renewable energy certificates—the right to say it’s solar power—should be sold to someone else.

Dominion’s early adventures in solar were not altogether encouraging. In 2012 the General Assembly authorized the utility to “study” solar by building up to 30 megawatts of distributed (mostly rooftop) projects. The SCC approved $80 million for the “Solar Partnership Program” the following year, with the stipulation that Dominion should sell the renewable energy certificates to reduce the cost to ratepayers. A steep learning curve made for slow and expensive going, and while a number of schools, universities and commercial businesses signed up to host projects, they weren’t permitted to purchase the solar energy being produced right on their property.

In 2013, Dominion created a special tariff “Schedule RG” especially to allow commercial customers to buy renewable energy. Cumbersome, limited and expensive, it never attracted any takers. Dominion spokesman David Botkins suggested to reporters last May the problem was Dominion’s low rates. As in, who wants renewable energy when dirty power is so cheap?

That was one month before Amazon Web Services announced it had contracted for the output of an 80 megawatt solar farm to be built in Accomack County. The project sidestepped Dominion’s limitations by feeding power directly into the Delmarva Power grid in Maryland. Dominion promptly bought the project.

Schedule RG was clearly a failure, but just as clearly, there was money to be made on solar. Dominion just needed to figure out how.

The utility was already trying. In January of 2015 Dominion proposed to build a 20 megawatt solar farm near Remington, Virginia. The State Corporation Commission (SCC) originally rejected Dominion’s proposal, saying the company had not considered third-party alternatives that might be cheaper for ratepayers. (They were proved right when it turned out the Amazon project was slated to deliver power at a cost that was 25% less.)

Dominion didn’t give up on Remington, nor was it willing to turn the project over to a private developer. Instead, it got to work rejiggering the deal into what, this spring, became a public-private partnership. Governor McAuliffe arranged to have the state government, rather than ratepayers, buy the power output from Dominion, while Microsoft agreed to buy the renewable energy certificates (RECs) to meet its corporate commitment to buying renewable energy. (In every solar deal, watch what happens to the RECs.*)

Although I wondered at the time if the state might be taking a financial hit to make the deal work, more recent information suggests the opposite. According to Dominion’s website, “the construction and deployment of this solar asset will lower the cost of the energy purchased by the Commonwealth. The Commonwealth is projected to save $500,000 to $1M in energy costs over the lifetime of the project.”

This tells us two things: one, obviously, we should sell more solar to Microsoft. And two, either the website omits key details about the financing, or the cost of energy produced by solar panels is now pretty darn competitive.

The projects have started coming in more quickly in recent months. In February of this year, Dominion announced it would buy the output of a 20 megawatt solar farm in Chesapeake through a power purchase agreement (PPA) with a North Carolina developer. Other PPAs are said to be under consideration.

Then, on June 30, the SCC gave Dominion approval to move forward on building three new projects totaling 56 megawatts in Powhatan, Louisa, and Isle of Wight counties. The 800 local jobs associated with the projects sparked news stories across the state.

That brings us to this week’s announcement of the deal with the Commonwealth and the Department of the Navy at Oceana. According to Dominion’s press release, Dominion Virginia Power will own and operate the facility, and the Commonwealth will buy the electricity, with Dominion retiring the RECs on the Commonwealth’s behalf.

Deputy Secretary of Commerce Hayes Framme confirmed to me this deal is the first step toward satisfying Governor McAuliffe’s commitment to having the state government get 8% of its power from solar by the time he leaves office, an amount equal to roughly 110 megawatts. That should mean there will be more announcements to come.

The Navy’s role here is especially interesting. Although some news outlets reported the Navy would buy the electricity, this appears to be a misreading of the Navy’s press release. Naval Station Oceana will instead receive “in-kind consideration in the form of electrical infrastructure upgrades” for hosting the project on its land. But the press release dwells mainly on the benefit to the regional grid that serves the naval station:

“Renewable energy projects, like the one at NAS Oceana and others throughout the Mid-Atlantic Region, are win-win-win collaborations. They’re good for the utility companies, good for our installations and good for the communities surrounding our installations,” said Rear Adm. Jack Scorby, Jr., commander, Navy Region Mid-Atlantic. “These projects increase the energy security, energy diversity and energy resiliency of our bases. Energy security, or having assured access to reliable supplies of energy and the ability to protect and deliver sufficient energy to meet mission-essential requirements, is critical to our installations’ roles to support the Fleet.”

The reference to “energy security, energy diversity and energy resiliency” is key here. The Navy will benefit from having a large renewable generation source onsite, one that can be protected from attack and that is not susceptible to fuel supply disruptions.

Come to think of it, “energy security, energy diversity and energy resiliency” are three of the prime reasons we need more solar projects all across the state, and why the benefits shouldn’t be limited to large, influential customers. So yay, Dominion, for getting rolling on all these solar projects! Now please stop blocking the way for the rest of us.


*RECs were invented as a way to identify units of electricity generated by wind, solar and other sources, since the electrons themselves can’t be dyed green. But RECs don’t have to just follow electrons around; they can also be bought and sold separately from the underlying electricity. When the RECs associated with a solar project are sold separately (in the case of the Remington solar project, to Microsoft), the electricity loses its green quality, and the buyer (in this case, the Commonwealth) can’t claim to be buying solar energy. For a fuller explanation of RECs, see this earlier post on the subject.

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Northern Virginia activists are ready for 100% renewable energy future

 

Ready for 100 Community Outreach Coordinator Taylor Bennett, Mount Vernon Group of the Sierra Club Chair Dean Amel, and Virginia Chapter Sierra Club Chair Seth Heald.

Ready for 100 Community Outreach Coordinator Taylor Bennett, Mount Vernon Group of the Sierra Club Chair Dean Amel, and Virginia Chapter Sierra Club Chair Seth Heald at Alexandria’s Earth Day celebration in April.

Clean energy advocates in Virginia know we are engaged in a steep uphill climb, and are still so far from the top that we have only a general idea of what it will look like. But activists in Arlington and Alexandria believe it’s time for bold leadership. They are calling on their communities to set a goal of 100% clean and renewable electricity by 2035.

The Ready for 100 Campaign launched today as part of a push by the Sierra Club to show that a future without fossil fuels is achievable. Sierra Club volunteers are working with community groups and other leaders to promote the benefits of clean energy locally. According to Seth Heald, Chair of the Virginia Chapter of the Sierra Club, fifteen U.S. cities, including San Diego, CA, Georgetown, TX, and Columbia, MD, have already committed to 100% clean energy.

Arlington County already has a reputation for its leadership in the energy sector, with a commitment to reduce its greenhouse gas emissions by 80% by 2050 and a number of innovative programs to reduce energy consumption. Now, says Heald, it is time for Arlington to take the next step to “eliminate the fossil-fuel generated pollution that comes from electricity production and is damaging our health and undermining our quality of life.”

Arlingtonians for a Clean Environment (ACE) has signed on as a partner in the effort. “Arlington County has already set a high bar for Virginia, but we can do even better,” said Executive Director Elenor Hodges. “I think this is an effort many residents will get behind.”

Copy of Copy of 1168 ReadyFor100_Logo_Color“Our current dependence on fossil fuels means that my generation will be dealing with the impact of climate change for our entire lives,” said Helene Turvene a junior at Washington-Lee High School. “A commitment now to 100% renewable energy not only will help to begin reversing those impacts, but it will position our community for a more sustainable future. Students want to know that local leaders are acting with us, and future generations, in mind.”

Alexandria residents are also behind the effort. Samantha Adhoot is an Alexandria-based pediatrician who has often sounded the alarm about the effects of climate change and fossil fuel pollution on children’s health. “By transitioning to 100% clean energy, our city could prevent thousands of asthma attacks and dozens of premature deaths every year,” she said. “This would be a big step in the right direction toward allowing our kids to breathe easier.”

Although the 2035 goal is long-term, the campaign’s benefits could be immediate. The solar industry now employs over 200,000 people nationwide, and with fewer than 1% of them in Virginia, we have tremendous room for growth. And of course, investments in energy efficiency mean savings on utility bills that keep adding up. Stanford scientists say the transition to 100% renewable energy will save the average American family $260 dollars per year in energy costs, and another $1,500 per year in health care costs.

Taylor Bennett, Community Outreach Coordinator for the Ready for 100 Campaign, is hoping to hear from others who want to join the effort. She can be reached at Taylor.Bennett@SierraClub.org.

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Does McAuliffe deserve that bad grade on climate and energy?

Protesters at an anti-pipeline rally aim their message at Governor McAuliffe

Protesters at an anti-pipeline rally aim their message at Governor McAuliffe

Clean energy advocates who scrutinize Virginia Governor Terry McAuliffe’s record see different things. Chesapeake Climate Action Network (CCAN), the Virginia Student Environmental Coalition (VSEC) and other groups recently released a mid-season “report card” that gave McAuliffe a D-plus on climate and energy. The bad grades primarily stem from his support of massive fracked-gas pipelines and offshore oil drilling, as well as Department of Environmental Quality’s (DEQ’s) approval of Dominion Virginia Power’s plans to “close” coal ash ponds by leaving toxic waste in unlined pits next to rivers.

Meanwhile, though, other environmental leaders are praising the governor for speaking out about the reality of climate change and promising to forge ahead with implementation of the EPA’s Clean Power Plan in spite of the current judicial stay. They also say McAuliffe should get more credit for his vetoes of bills attacking the Clean Power Plan and extending subsidies to coal companies.

It is possible to agree with both the criticism and the defense. McAuliffe’s enthusiastic support for Dominion’s Atlantic Coast Pipeline has been an enduring irritant to climate activists as well as to landowners along the planned routes of the ACP and other natural gas pipelines. A Sierra Club analysis concluded that the pipelines would increase the Commonwealth’s greenhouse gas footprint by more than twice the total emissions of all power plant generation in the state.

He is also rightly criticized for supporting off-shore drilling, which would increase climate pollution and sea level rise and threaten the Navy’s and tourism’s contributions to Hampton Roads’ economy—a potential double whammy for residents and businesses.

And the Virginia DEQ has begun to look a lot like its North Carolina counterpart, a captured agency incapable of defending our air and water from the corporate polluters it is supposed to regulate. Sure, the problem has festered through several administrations, but McAuliffe’s failure to intervene is impossible to reconcile with his pro-environment rhetoric.

The problem goes beyond DEQ. In response to a detailed petition to the Governor for an interagency review to modernize the state’s fracking regulations, McAuliffe’s Secretary of Commerce and Labor announced a plan to limit the issues and refer them to an industry-dominated organization funded by the American Petroleum Institute for decision. This is hardly a sign of a Governor committed to protecting the environment, safety and health.

Yet messaging matters, and McAuliffe is a vocal messenger on the topic of climate change. The governor points to the flooding that routinely shuts down streets in Norfolk as proof that human-caused sea level rise is already a problem right here in Virginia. And as a team player for the Democrats, he supports Obama’s Clean Power Plan even as he brags (superfluously and probably incorrectly) that he persuaded EPA to soften its Virginia targets to reduce our burden of compliance.

Besides which, if he’s no Jerry Brown or Jay Inslee leading his state towards a fossil-free future, McAuliffe is also not Ken Cuccinelli, hounding climate scientists out of state. Given a Republican majority in Virginia’s General Assembly that is dedicated to propping up the coal industry and blocking anything EPA does, it could have been so much worse.

So perhaps CCAN is letting the perfect be the enemy of the good—or in this case, letting the good be the enemy of the “meh.”

Regardless of how they feel about McAuliffe’s record, both the glass-half-full folks and the glass-half-empty folks agree there’s an “incomplete” on his report card that could make an enormous difference to his legacy. The ultimate test of the Governor’s climate credentials, they say, is whether he pushes DEQ to write a Clean Power Plan that puts a firm cap on total carbon emissions from the electric sector in Virginia. Though the General Assembly found a way to stop DEQ from completing work on the state implementation plan temporarily, nothing stops McAuliffe from taking a public stand on this most critical point.

That sounds like a no-brainer for a Democrat who is serious about reining in CO2. Unfortunately, it doesn’t meet with the approval of Tom Farrell, CEO of Dominion Resources, or Bob Blue, President of Dominion’s electric utility subsidiary, Dominion Virginia Power. They want DEQ to write a plan that leaves out new sources of emissions. That would let them continue building lots of big, new natural gas generating plants that, Blue assures us, will be capable of spewing carbon for at least another half century. All that burning of fracked gas would be lousy for the climate, but it would guarantee profits for Dominion’s utility and pipeline affiliate.

So on the one hand, the Governor can choose to be a climate hero, fighting sea level rise and deadly heat waves, creating tens of thousands of clean energy jobs and attracting forward-looking companies to the state, building his national reputation, doing what’s right for all our children and grandchildren, —

Or he can make Dominion happy.

It will be very interesting to see what becomes of that “incomplete” on his report card.

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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.

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Virginia legislators named to review clean energy bills

Workers install solar panels at the University of Richmond.

Workers install solar panels at the University of Richmond.

Virginia’s 2016 legislative session began with a host of worthy bills promoting energy efficiency, wind and solar, but ended with almost none of the legislation even having been considered in committee. The Republican chairmen of the Senate and House Commerce and Labor committees instead “carried over” the bulk of the bills, announcing plans for a new subcommittee to study them and make recommendations for 2017.

Members of the subcommittee have now been named. Senator Frank Wagner has tapped Senators Black, Cosgrove, Stuart and Dance to serve. This information is now on the General Assembly website. Delegate Terry Kilgore has named Delegates Ware, Hugo, Ransome, Miller and Keam.

No meeting schedule has been announced, but lobbyists for the utilities and the solar industry trade association, MDV-SEIA, have begun meeting in private to discuss potential compromises. This can’t be called a stakeholder process; the meetings are not open to the public, and they have not invited participation by environmentalists or, with one exception, anyone on the consumer side representing the interests of local government, colleges and universities, churches, eco-friendly businesses or residential customers.

(The exception is a lobbyist for Loudoun County landowner Karen Schaufeld, a newcomer to energy issues who formed a group called Powered by Facts and hired lobbyists to advocate for expanded agricultural net metering and other pro-solar reforms.)

Anything that emerges from these meetings will likely have a significant impact on the subcommittee. Yet, given the importance of this issue to the commonwealth, the subcommittee should ensure it hears from all solar stakeholders. More importantly, committee members should explicitly adopt as their measure of progress a simple test: whether the language of a bill will lead to greater private investment in solar in Virginia. Wagner and Kilgore have said they want to see the growth of solar here, and all of the legislators publicly subscribe to the values of free market competition and consumer choice. But without a guidepost, we are likely to see the utilities bully the solar industry into a “compromise” that shifts the ground a bit but continues to strangle the private market–and leaves us further than ever behind other states.

Who’s who on the committee

All of the legislators named to the study committee are Commerce and Labor committee members, but beyond that, many of these appointments are surprising, as they don’t necessarily reflect demonstrated interest in the subject. It is also disturbing that only one Democrat was named from each side. (Dance is the Senate Democrat, Keam the House Democrat. They are also the only minorities represented.) There is no reason energy efficiency and renewable energy should be partisan issues, but in the past, party affiliation has been the single most powerful predictor of votes on clean energy.

To gage how these legislators approach the issues, I took a look at the Sierra Club’s Climate and Energy Scorecard for 2014 and 2015. Scores for 2016 are not yet available. It is important to note that in the House, most renewable energy legislation has been killed by unrecorded voice votes in the Commerce and Labor subcommittee, preventing the votes from being scored. So the scorecard is only a starting point.

The Senators

Frank Wagner himself earned a D in 2015, with a voting percentage of 60%. This was up from an F in 2014. The Virginia Beach Republican is the only member on this subcommittee to have exhibited a serious interest in energy issues, having shaped many of Virginia’s current policies. Unfortunately, he is closely allied with Dominion Power, voted for tax subsidies for the coal industry, tends to doubt the reality of climate change, and has been sharply critical of the EPA Clean Power Plan. On the plus side, he believes renewable energy should play an important role and was instrumental in launching the state’s bid for offshore wind. He also genuinely welcomes input from the public at meetings he runs.

That makes his committee choices all the more peculiar. Dick Black is better known as a social crusader who lines up with the far right wing of his party, most notably in opposition to abortion, gay rights and gun limits. Most recently, he made headlines by meeting with Syrian president Bashar Assad and urging the U.S. to lift economics sanctions against the Assad regime.

Black is a climate denier of the delusional variety, insisting at an event last August that global temperatures have not risen in 17 years and that no major hurricanes have hit the American mainland in 9 years. (2014 was the hottest year on record until 2015 seized the trophy. Superstorm Sandy, the largest Atlantic hurricane on record, struck in 2012.)

The forum was an “American for Prosperity grassroots event” (sic). The “crowd of about 18 people” included former Senator Ken Cuccinelli, no slouch himself in the climate denial department. Black compared EPA employees to “Bolshevik communists.” He and Cuccinelli used the event to criticize the Clean Power Plan as “part of a government scheme to send billions in taxpayer funds to ‘wind and solar scams’ and ‘billionaire liberals.’”

He received a grade of F from the Sierra Club in both 2014 and 2015. With a voting percentage of just 14% last year, he had the worst record in the Senate on climate and energy bills. In sum, the appointment of Dick Black to this committee can’t be called an effort to seek out thoughtful voices on the issues.

John Cosgrove is a solid conservative on name-brand issues like guns and abortion, though decidedly lacking Black’s flair for headlines. With a 67% score, he received a grade of D from the Sierra Club in 2015, up from an F in 2014. A review of the bills he has introduced in the last two years showed none related to climate or energy, again raising the question of why he was chosen for this particular subcommittee.

Richard Stuart’s voting record of 50% earned him an F in 2015, down from a C in 2014. However, he earned an award from the Sierra Club in 2014 for introducing a bill to regulate fracking; the bill did not pass. Senator Stuart also received “extra credit” on the 2015 scorecard for introducing the bill that established the Virginia Solar Energy Development Authority. In 2016, he also introduced one of the more ambitious renewable energy bills, working with Schaufeld’s Powered by Facts.

Roslyn Dance is the lone Democrat and only woman selected from the Senate. She has consistently voted on the side of clean energy, and was the patron of 2015 legislation raising the size limit on net-metered projects from 500 kW to 1 megawatt. This work earned her an award from the Sierra Club that year.

Dance scored 100% on both the 2014 scorecard (when she was a delegate) and the 2015 scorecard, for a grade of A+ each year. However, she came in for intense criticism in the 2016 session for abstaining on Senator Surovell’s coal ash bill, knowing it would fail in committee without her vote. The bill would have required Dominion Virginia Power to move stored coal ash out of unlined ponds along rivers for disposal in lined facilities away from water sources. Dance’s abstention was widely thought to be a favor to Dominion Power, saving the company from what might have been a nasty fight on the Senate floor.

The Delegates

Terry Kilgore, Chairman of House Commerce and Labor, represents part of rural southwest Virginia, and has close ties to Appalachian Power Company and the coal industry, both of which contribute generously to his campaigns. Bills opposed by utilities have little chance in his committee. In 2015, he earned an F on the energy and climate scorecard, with a 50% score, down from a D (63%) in 2014.

Lee Ware represents a suburban and rural area west of Richmond, stretching from the western side of Chesterfield County. He earned a C (75%) in 2014 and an F (50%) in 2015. In spite of these scores, he has shown an independent, thoughtful approach to energy legislation, and has demonstrated a serious interest in promoting energy efficiency. His bill to change how the State Corporation Commission evaluates utility efficiency programs is one of the pieces of legislation to be considered this summer.

Tim Hugo represents a suburban Northern Virginia district. He earned a D (67%) in 2014, with extra credit for introducing a bill that reclassified solar equipment as “pollution control equipment,” earning it a critical exemption from a local business property tax known as a “machinery and tools” tax. In 2015 his score dropped to an F (56%), in spite of an extra credit bump from introducing the House version of the Solar Development Authority bill.

As Majority Caucus Chair, Hugo’s poor scores reflect the leadership’s pro-coal, anti-regulation platform. He is nonetheless keenly interested in promoting solar energy, at least where he can do so without running into utility opposition. His close ties to Dominion have often meant he led the opposition to pro-solar net metering reforms, keeping them from moving out of the committee.

Margaret Ransone is the only woman named to the House subcommittee. She received an F (57%) in 2015, down from a C (71%) in 2014. She represents counties along the Northern Neck, near Richmond. She is not on the Commerce and Labor energy subcommittee, and has shown no particular interest in the subject. Her website suggests a mix of the ideological (pro-gun, anti-abortion) and the practical (high speed internet for rural areas).

Jackson Miller received an F (44%) in 2015, down from a D (63%) in 2014. His district is close to Hugo’s, covering the City of Manassas and part of Prince William County in the outer suburbs of Northern Virginia. Miller is Majority Whip for the House. He has consistently voted against expanding net metering options.

Mark Keam is the only Democrat on the House subcommittee as well as the only ethnic minority (he is Korean). He received an A+ (100%) in 2015, up from an A (88%) in 2014. He has generally supported expanded opportunities for renewable energy.

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Battles over climate and coal go unresolved, but Virginians still paying more

Students rally for climate action in Alexandria, Virginia. Photo courtesy of Sierra Club.

Students rally for climate action in Alexandria, Virginia. Photo courtesy of Sierra Club.

Virginia’s 2016 legislative session ended last week with a one-day veto session, an ideological battleground where both sides fought lustily but nobody won.

Republicans could not muster the votes to overcome McAuliffe’s veto of legislation extending taxpayer handouts for coal mining companies. Nor could they overcome vetoes of HB 2 and SB 21, bills requiring that any state plan implementing the EPA’s Clean Power Plan be submitted to the General Assembly for approval.

They did, however, succeed in defending a budget item prohibiting the Department of Environmental Quality (DEQ) from developing a state implementation plan while a federal stay of the Clean Power Plan remains in effect. (For that they needed only a majority; overriding a veto requires a two-thirds super-majority.)

These votes won’t end the skirmishing. The tax credit for companies that mine Virginia coal doesn’t expire until the end of 2016, and Terry Kilgore, Chairman of the House Commerce and Labor Committee and a reliable ally of the coal lobby, has already promised another effort next session to extend the handouts.

As for the Clean Power Plan, the budget maneuver will cause headaches, as intended, but it’s merely a stall tactic. Virginia may end up submitting a clumsier plan than it otherwise would, if it has to scramble to meet the deadline once the stay is lifted. Even that isn’t certain. DEQ has already completed much of the fact-gathering portion of its work, including issuance of a report from the stakeholder group it convened to consider options. And the new fiscal year, when the prohibition kicks in, doesn’t begin until July 1. A lot of work could get done in two months.

Moreover, Republicans seem to have a losing hand here, even if they block DEQ from completing its work. If the Clean Power Plan survives attack in the courts and Virginia doesn’t submit a plan, EPA will write one for us. On the other hand, if the Clean Power Plan fails judicial scrutiny, EPA will have to rewrite it in a way that might be even worse for coal.[1]

But the Republican attacks on the Clean Power Plan have never been about protecting our ability to plan our own energy future—or for that matter, about protecting ratepayers. Recall that a year ago the General Assembly passed Dominion Power’s SB 1349, with its so-called “rate freeze,” on the theory that the Clean Power Plan will cost so much money that electric rates needed to be frozen between now and the time the plan actually kicks in, and regulators forbidden from scrutinizing utilities’ books in the meantime.

I know: that makes no sense. But don’t ask me for a better explanation; the rationale never stood up to scrutiny. And Republicans weren’t the only ones supporting this peculiar legislation. Once the original anti-Clean Power Plan elements were stripped out, plenty of Democrats got on board to prove their fealty to Dominion.

We have since learned two things about SB 1349 and one thing about the Clean Power Plan:

  • According to one State Corporation Commission judge, SB 1349 will cost Virginia ratepayers a billion dollars in overpayments to Dominion.
  • Dominion Power customers are about to see their rates go up regardless of the “freeze,” as a result of Dominion getting approval to build a new gas-fired power plant;
  • The final Clean Power Plan requires almost nothing from Virginia, and compliance might even save us money.

Now that we know all this, wouldn’t you expect to hear legislators clamoring for the repeal of the faux rate freeze?

Cock an ear. What do you hear?

Crickets.

To be sure, many Republicans who pushed for SB 1349 were more interested in the threat the Clean Power Plan posed to the coal industry. Their support for the coal tax subsidies shows Republicans have no qualms about charging taxpayers tens of millions of dollars annually to help coal companies. Perhaps when you’re in the business of giving away other people’s money, another billion dollars doesn’t seem like a stretch.

Still, if concern for the people of coal country were really at work, we might have expected success for McAuliffe’s budget amendment that put one million dollars into funding for solar projects, with priority for those in Southwest Virginia. Compared to the coal subsidies, admittedly, this isn’t much. In NoVa, a million dollars is one high-end home, green features extra. Spread around the coalfields, though, it could have powered up to a hundred homes with solar. Maybe the symbolism was too hard to take. In any case, Republicans scuttled the funding.

Rhetoric triumphed over substance in other ways this session, too. The General Assembly voted to establish a Shoreline Resiliency Fund, but failed to fund it. Clean energy bills from both sides of the aisle fizzled; with few exceptions, those that weren’t killed outright were sent to a newly-announced subcommittee conceived as a dumping ground for solar bills. No meeting schedule has yet been announced for this subcommittee.

Given the urgency of the climate crisis and the pressing need to develop our clean energy sector, this year’s stalemate feels particularly frustrating. We should all ask for our money back.


[1] Sure, there’s a third possibility: the EPA plan could be withdrawn under a President Trump. But if that’s our future, then defending the Clean Power Plan could be the least of our worries. Hoo-boy. Best not to think about it.

 

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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.”