Green Engineering: A Legislative Perspective IEEE-USA 2008 Annual Meeting April 2008 Indianapolis

1. Green Engineering: A Legislative Perspective IEEE-USA 2008 Annual MeetingApril 2008 Indianapolis Bill Williams Senior Legislative Representative IEEE-USA

2. Green Engineering • Discussion Outline: • About IEEE-USA • Overview of Energy Policy Committee • Background and History of Renewable Energy Development • Energy Legislation in the 110th Congress • Barriers to Alternative Energy • EPC Action • Policy Resources

3. About IEEE-USA • IEEE-USA - Representing the unique interests of IEEE members in the United States • Staff of 23. Office in Washington, DC. • Over 750 active volunteers. • Five program areas include Career/Member Services, Professional Activities, Government Relations, Communications, Public Awareness

4. Who is IEEE-USA • Government Relations Department • 4 GR Representatives • Grassroots • Press Relations • Support Staff

5. About IEEE-USA • Government Relations Committees • Career and Workforce Policy Committee • Committee on Communications Policy • Committee on Transportation and Aerospace Policy • Critical Infrastructure Protection Committee • Government Fellows Committee • Intellectual Property Committee • Medical Technology Policy Committee • Research and Development Policy Committee • Energy Policy Committee

6. Energy Policy Committee • Made of Representatives from: • Utility Companies • Academics • Entrepreneurs • Consultants • NERC • Department of Energy • Federal Energy Regulatory Commission

7. Energy Policy Committee • My Background: • Navy Nuclear Power • Congressional Staff – worked on member’s personal staff for House Energy and Commerce Committee • IEEE-USA since 2000 • Issues: • Energy Policy • Transportation and Aerospace • Research and Development

8. Renewable Energy • One definition: Energy derived from resources that are generally not depleted by human use, such as: • Sun • Wind • Water Movement Source: Congressional Research Service

9. History and Background • Energy crisis of the 70’s spurred the federal government to enact renewable energy policies: • Energy Tax Act of 1978 – 4 cents/gallon excise tax exemption for ethanol blended into gasoline • Public Utility Regulatory Policies Act (PURPA) of 1978 – required electric utilities to purchase electricity produced from renewable resources Source: Congressional Research Service

10. History and Background • PURPA Goals: • To reduce oil use by encouraging the use of renewable energy for power production • Encourage the use of renewable energy • Spur competition to help keep prices down Source: Congressional Research Service

11. History and Background • This was largely successful; especially in California: • In the Early 1980’s, influenced by PURPA and state and federal incentives, California launched commercial deployment of wind and solar energy • Early large scale wind farms in particular were the results of these state and federal policies Source: Congressional Research Service

12. History and Background • Today California has three major wind farms: • Altamont Pass • Tehachapi (near Bakersfield) • San Gorgonio (near Palm Springs) • Over 13,000 wind turbines • In 2004, wind energy in California produce 4.3 million kilowatt-hours of electricity • In 1995, this was 30 percent of the entire world’s wind energy production Source: American Wind Energy Association

13. History and Background • Key factors for California wind boom: • High winds near coastal cities which correlate fairly well with peak a/c demands in the summer • 15% federal energy credit • 15% investment credit • 50% state energy credit • State mandates Source: Congressional Research Service

14. San Gorgonio Pass Source: Wikipedia

15. History and Background • Texas wind energy boom driven largely by • Plentiful land • Plentiful wind • Favorable business and permitting climate • Texas “Senate Bill 7”, passed in 1999, mandating a Renewable Portfolio Standard of 2,000 MW of additional renewable energy by 2009 • That was met by 2005! • Since SB 7 was passed, wind energy development in Texas has quadrupled Source: State Energy Conservation Office

16. History and Background • Texas now has is the leader in wind power production: • Texas has 4,356 MW of installed capacity • California has 2,439 MW of installed capacity • 16,800 MW Nationwide • 48 billion kwh • Enough to serve 4.5 million households • 1 percent of U.S. electricity supply Source: American Wind Energy Association

17. History and Background • Wind energy by states in installed MW: Source: American Wind Energy Association

18. History and Background Global wind power capacity has escalated to over 90,000 Megawatts in 2007. The growth in wind power capacity was nearly four times the growth in nuclear power capacity. Source: GWEC; Worldwatch

19. History and Background • Early 1990’s the Persian Gulf War and emerging concern about global warming re-ignited interest in renewable energy policy: • In 1992 the US signed the UN Framework Convention on Climate Change. • Signed into law the Energy Policy Act of 1992 • Made Permanent the 10 % business investment tax credit for solar and geothermal equipment • Created a new renewable electricity tax credit of 1.5 cents per Kilowatt-hour Source: CRS

20. Barriers to Renewable Energy • Significant barriers still exist to widespread penetration of renewable energy resources • Wind • Pros • Free (if available) • Reasonable cost. • Well suited to rural areas.

21. Barriers to Renewable Energy • Wind • Cons: • Limited to windy areas. • Limited to small generator size; need many towers. • Need expensive energy storage (e.g. batteries) • Can affect endangered birds. • NIMBY! (Not in My Back Yard)

22. Barriers to Renewable Energy • Solar • Pros: • Sunlight is free when available

23. Barriers to Renewable Energy • Solar • Cons: • Limited to southern areas of U.S. and other sunny areas throughout the world (demand can be highest when least available, e.g winter solar heating) • Does require special materials for mirrors/panels that can affect environment • Current technology requires large amounts of land for small amounts of energy generation

24. Barriers to Renewable Energy • Consumers NOT willing to pay more • European Commission estimated that it would cost $220 per month per house on average to significantly cut greenhouse gases. When asked how many in the United States would be willing to pay this amount: • Completely likely – 2% • Very likely – 4% • Fairly likely – 8% • Somewhat likely – 16% • Not likely at all – 71% Source: Harris Interactive

25. Renewable Energy in the 110th Congress • Conditions converging to “push” renewable energy legislation again: • Global warming • War in the Middle East • Record high oil and gas prices • Approaching $120/Barrel • Gas over $3.50 average in US Source: CRS

26. Renewable Energy in the 110th Congress • Renewable Energy is Still a Hot Topic on the Hill • More than 280 bills on energy efficiency and renewable energy have been introduced in the 110th Congress • About 1/3 focus on renewable fuels • About 1/3 provide incentives for investment, energy production, fuel use, or fuel reduction • DOE’s FY2009 budget request seeks $1,025 million for DOE’s Energy Efficiency and Renewable Energy (EERE) programs

27. Renewable Energy in the 110th Congress • Last year Congress passed and the President signed into law the Energy Independence and Security Act of 2007: • Increased Corporate Average Fuel Economy (CAFE) Standards to 35mpg by 2020 • Increased bio-fuel production • Improved efficiency standards for appliance and lighting • Included incentives for Plug-In Hybrid Electric Vehicles • Included provisions for Smart Grid Implementation • Did NOT enact a Renewable Portfolio Standard • Did NOT contain extension of renewable tax credits

28. Renewable Energy in the 110th Congress • Renewable Energy is Still a Hot Topic on the Hill • Congress still trying to find a way to pass legislation extending the renewable energy tax credits • Problem is PAYGO (Pay-as-you-go) rules requiring offsets for any new spending • Congress wants to rescind oil company tax credits to pay • President has promised a veto, saying that would raise gas prices and hurt consumers

29. Renewable Energy Outlook • Reality: Nothing (major) likely to get done this year • Lame duck President • Contentious election year • Divided Congress • Ideological divisions even within the parties • Not enough time • Congress will punt on most major issues, including funding bills until the next Congress

30. Energy Policy Committee • Priority Issues and Activities: • Energy Independence • Plug-in Hybrid Electric • Vehicles • Fuel Diversity • Clean Fuels • Smart Grid

31. Energy Policy Committee • Plug-In Hybrid Electric Vehicles • Standard hybrid vehicle with a rechargeable battery • A plug-in vehicle could get up to 100 miles per gallon of gasoline. • The cost of an “electric” gallon of gas is estimated to be less than $1.00 per gallon. • Batteries available now offer from 20 to 200+ mile ranges • Every additional 10 miles of vehicle range in electric mode adds about $1,000 to the cost. • Source: Plug-In America

32. Energy Policy Committee • Smart Grid • Definition: Using the power of broadband communications and advanced computing to upgrade the electric power grid so that it can operate more efficiently, reliably and safely. • Uses two-way, broadband communications, advanced sensors and computers to improve the efficiency, reliability and safety of power delivery and use. • Mandated by the Energy Independence and Security Act of 2007 (EISA) • Source: Smart Grid Alliance

33. How IEEE-USA is Making a Difference • Helped pass legislation recognizing one single standard for interconnection of distributed generation (IEEE 1547), making it easier for DG owners to connect to the electric grid • Worked with a coalition to pass legislation creating a North American Electric Reliability Council (NERC) with the authority to set reliability standards and enforce them • Working with other stakeholders to implement Smart Grid Provisions of Energy Independence and Security Act

34. How IEEE-USA is Making a Difference • Co-sponsored the “Plug-In Hybrids: Accelerating Progress 2007” symposium in September attended by 140 including U.S. Senator Maria Cantwell of Washington State, former CIA Director R. James Woolsey, and FERC Commissioner Jon Wellinghoff • Co-sponsoring GridWeek 2008 in September with other stakeholders to develop and promote the Smart Grid agenda and to educate on strategies and deployment of Smart Grid

35. How Can You Help Shape Our Positions? • Communicate Government Relations Activities to Your Section/Chapter/Branch • Give Us Feedback and Let Us Know About Other Issues of Particular Concern • Join a GR Committee as a Resource/ Corresponding Member (www.ieeeusa.org/committees)

36. Energy Policy Committee Resources For more information on EPC Activities, go to WWW.IEEEUSA.ORG For More information on the Electric Grid go to www.electripedia.info

37. Energy Policy Committee Resources Position Statements The following energy policy-related positions have been adopted by IEEE-USA: Plug-in Hybrid Electric Vehicles Advanced Nuclear Power Research and Development Benefits of Increased Electrification Electric Power Reliability Organization Energy Efficiency Existing Nuclear Power Plants Fusion Energy Research & Development Hybrid Electric Vehicles and Electric Transportation Photovoltaic Technology Development Principles for a Restructured Electric Industry Standards for Interconnection of Distributed Energy Resources Solar and Other Renewable Energy Technologies

38. Keeping Tabs on IEEE-USA • IEEE-USA 2007 Annual Report www.ieeeusa.org/about/annual_report/2007.pdf • IEEE-USA 2007 Program Handbookwww.ieeeusa.org/communications/ebooks/ • IEEE-USA Year In Review (2007 YTD)www.ieeeusa.org/about/yearinreview.asp • IEEE-USA News Releaseswww.ieeeusa.org/communications/releases/ • IEEE-USA Today’s Engineer E-mail Update www.ieeeusa.org/communications/emailupdates/

39. Bill Williams(Aerospace, Energy, R&D, Transportation Policy Issues)202-530-8331 or bill.williams@ieee.org Deborah Rudolph(Communications, Medical Technology Policy, Critical Infrastructure)202-530-8332 or d.rudolph@ieee.org Vin O’Neill(Career/Workforce issues, Licensure and Registration, PreCollege Education)202-530-8327 or vin.oneill@ieee.org Russ Harrison(Grassroots)202-530-8326 or r.t.harrison@ieee.org Erica Wissolik(Intellectual Property, Government Fellowships, WISE Interns)202-530-8347 or e.wissolik@ieee.org Contacts For More Information