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Iowa Office of Energy Independence and the Iowa Power Fund Roya Stanley - Director

N ational C onference of S tate L egislatures: Environmental Health Issues in the Midwest Marriott Coralville Hotel & Conference Center Coralville, Iowa October 22, 2007. Iowa Office of Energy Independence and the Iowa Power Fund Roya Stanley - Director. Office of Energy Independence.

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Iowa Office of Energy Independence and the Iowa Power Fund Roya Stanley - Director

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  1. National Conference of State Legislatures: Environmental Health Issues in the MidwestMarriott Coralville Hotel & Conference CenterCoralville, IowaOctober 22, 2007 Iowa Office of Energy Independence and the Iowa Power FundRoya Stanley - Director

  2. Office of Energy Independence The Office of Energy Independence (OEI) was established in 2007 to coordinate the state of Iowa’s activities concerning energy independence.

  3. Office of Energy Independence VISION: Leading Iowans to a vibrant future through economically viable and environmentally sound energy choices. MISSION: To achieve a sustainable energy future by: • Providing leadership through education, planning and investment • Developing policies and resources to produce market transformation 3

  4. OEI Structure & Tasks Structure: • Operations staff (located in Lucas Bldg; 515-725-6025) • Iowa Power Fund Board • Due Diligence Committee • Energy Coordinating Council Initial Tasks: • Iowa Power Fund • Energy Independence Plan • Energy Forums & Education • Energy Issues 4

  5. Task: Iowa Power Fund • $100 million over 4 years • Provides financial assistance to entities to increase Iowa’s research, development, & use of sources of renewable energy; improve efficiency and reduce greenhouse gas emissions • Includes $2.5 million – DED community college workforce training & economic development 5

  6. Eligibility Criteria for the Power Fund • Commercialization/product development • Utilization of Iowa crops/products that maximize value of crops used as feed stock in bio-manufacturing products and as co-products • Reduction of GHG, carbon sequestration • Private or federal matching funds 6

  7. Energy and Environmental Challenges Go Hand in Hand

  8. Fossil Fueled Power Plants • Most energy-related emissions come from carbon dioxide (CO2) emissions from the combustion of fossil fuels. • Fugitive emissions and storage leaks from natural gas transmission and distribution systems comprised the second largest category in energy-related emissions. • Emissions of methane (CH4) and nitrous oxide (N2O) from mobile combustion and N2O from stationary combustion sources are much less significant sources of emissions.

  9. Mercury reductions • Governor Blagojevich of came to an agreement with all Illinois coal fired power plants which requires them to install modern pollution control equipment designed to reduce mercury pollution by at least 90 percent.  • The mercury rule – is among the most stringent pollution reduction plans by any state in the nation, and is one of the most far-reaching environmental agreements in the State’s history.  • The companies all agreed to install mercury control equipment by 2009 on at least 94 percent of their Illinois power plants.  The remaining 6 percent of plants will install controls able to meet the standards by 2012, at the latest. 

  10. Illinois and Federal Standards

  11. Fossil Fuel from Transportation • Mobile sources pollute the air through combustion and fuel evaporation. • These emissions include carbon monoxide, hydrocarbons, nitrogen oxides, and particulate matter. • CO2 emissions from a gallon of gasoline = 19.4 pounds/gallon • CO2 emissions from a gallon of diesel = 22.2 pounds/gallon *source Energy Information Administration's Annual Energy Review

  12. Energy and Poverty Access to energy services is a key component of alleviating poverty and an "indispensable element of sustainable human development," according to the International Energy Agency (IEA). "Without access to modern, commercial energy, poor countries can be trapped in a vicious circle of poverty, social instability and underdevelopment.

  13. Energy Use and GDP Affluence Japan United States. France United Kingdom South Korea Mexico Poland El Salvador Russia China Poverty Bangladesh Burkina Faso Low Cost Electricity Leads to Lower Greenhouse Gas Intensity Source: National Coal Council Source: Energy Information Administration, International Energy Annual 2000 Tables E1, B1, B2; Gross Domestic Product per capita is for 2000 in 1995 dollars. Updated May 2002

  14. Keys to Energy Independence • Economic Development Opportunities • Environmental Respect • Energy Security

  15. Technologies • High technology • Mass production Markets Policies • Incentives & mandates • Conventional energy prices • Green markets

  16. Getting There Involves… Technologies Reducing Risk Capital Mobilization Policies Markets

  17. Iowa Renewable Fuels Standard • Iowa Renewable Fuels Standard: Displace 25% of retail gasoline sales with renewable fuels by 2019. • Not a Mandate, Based on Overall sales of E10, E85, and Biodiesel • Program begins in 2009 with a 10% standard • The bill provides a “sliding scale” ethanol promotion tax credit that peaks when a retailer achieves the RFS schedule for a year. The credit is per gallon of ethanol blended. • 6.5 c/g = Meet or exceed the RFS schedule • 4.5 c/g = 0-2% below RFS schedule • 2.5 c/g = 2-4% below RFS schedule • Zero = More than 4% below RFS schedule

  18. Wind Economic Development • At the end of 2006, Iowa had 936 MW of installed nameplate capacity of wind energy. • Iowa ranks third among all states, in wind electricity generation. • On a per capita basis, Iowa has more electric generation from wind than any other state. • Several hundred megawatts of wind capacity are planned or under construction. MidAmerican Energy Company alone has announced plans to add another 540 MW of wind energy to its generation portfolio.

  19. Iowa’s Wind Expansion • Clipper Windpower started wind turbine production in its Cedar Rapids plant in 2006, initial investment in the facility was $22 million, and the plant employs more than 140 people. • Siemens Power Generation invested $17 million in Mt. Pleasant, IA blade production facility. The plant was underway early 2007, and the facility is expected to employ 250 people. • Acciona Windpower’s turbine manufacturing facility in West Branch is the latest facility. The $23 million plant is expected to be operating by the end of 2007 and create more than 100 jobs.

  20. Iowa’s Yearly Wind Production

  21. Corn to Cellulose: Emmetsburg, Iowa • POET and the U.S. Department of Energy announced in September 2007 that they have signed a cooperative agreement for a commercial cellulosic ethanol plant. The facility operation is expected to begin in 2011. • POET's cellulosic project, will convert an existing 50 million gallon per year dry-mill ethanol plant into an integrated corn-to-ethanol and cellulose-to-ethanol biorefinery. • The facility will produce 125 million gallons per year, 25 percent of which will be from corn fiber and corn cobs. • The cellulosic production from an existing grain ethanol plant, POET will be able to produce 11 percent more ethanol from a bushel of corn, 27 percent more from an acre of corn, while almost completely eliminating fossil fuel consumption and decreasing water usage by 24 percent.

  22. Grain Dryers: Clear Lake, Iowa • North Iowa Cooperative Elevator installed a more energy efficient grain dryer would likely save the elevator about $20,000 per year in energy costs. • A fan under the burner draws the air through the dry grain and blows the heated air to the wet grain at the top of the tower. • Using the older dryer, the Co-Op could dry 500-700 bushels per hour. With the new dryer they can dry about 2,000 bushels per hour. *Source “Iowa Farmer Today”

  23. Energy Efficiency Models: Starkville, Mississippi • Energy efficiency improvements to poultry broiler production houses • Additional insulation, replacement of curtains with SIPs, high efficiency heaters and circulation fans • Grant Amount: $32,629 • Yearly Energy Savings: 11,346 gallons of natural gas • Natural gas savings were higher than expected at 37%, with an overall energy savings of 25%. Mississippi Poultry Houses

  24. Energy Efficiency: Osage, Iowa • Every $1 spent in Osage generates $1.90 of economic activity • Petroleum products $1.51 • Utility services $1.66 • Energy efficiency $2.23 • By doing energy efficiency, Osage was able to attract desirable industries due to reduced energy operating costs 24

  25. Methane Economic Development: Fon du Lac, Wisconsin 9006 Anaerobic Digester Project Vir-Clair Farms • Digester on 1,300 cow dairy farm • Awarded $299,580 grant • Produces 2,500,000 kWh annually • Electricity sold to Alliant Energy

  26. Net Zero Homes: Las Vegas, NV • Zero Energy Home is designed to be highly energy efficient and powered by 8 kilowatts of solar electricity and 1.5 kilowatts of solar thermal energy • The home is expected to use 90% – 100% less energy than a home built to code. • The home also features solar collectors that provide hot water for the home.

  27. Consider changing how we do things…

  28. Questions & Comments are Welcomed

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