Press Release - The WINDPOWER Experience

FOR IMMEDIATE RELEASE

Contact:Caprock Plains Wind Energy Association
Kelly Ayers, Executive Director
(806) 983-2793
Kelly.j.ayers@gmail.com

Texas Panhandle Well Represented at Recent Wind Power Conference

FLOYDADA, Texas, June 2, 2010 – “We like wind; go get smart on it,” is what former President George W. Bush told the Texas Public Utility Commission Chairman, Pat Wood, back when he was the governor of Texas.

At the recent American Wind Energy Association (AWEA) annual WINDPOWER Conference in Dallas the 43rd President of the United States reflected back on key decisions he made that helped make Texas a leader in wind energy development. Bush also noted that if Texas were an independent nation it would be the sixth largest wind producing country.

Texas’s success in wind energy made it the ideal location to hold this year’s annual meeting of approximately 20,000 attendees and 1,400 exhibitors interested in wind energy, and the Texas Panhandle didn’t go unrepresented. Along with Caprock Plains Wind Energy Association, a non-profit group representing those supportive of wind energy throughout Hale, Floyd, Motley and surrounding counties in Texas, several others from the region attended the conference with the hopes of spreading the word that wind energy development is welcome in the region.

Justin Jaworski, Executive Director of the Floydada Economic Development Corporation attended the event in association with The High Ground of Texas. The High Ground is a regional economic development coalition of the 66 counties stretching from the Panhandle through the South Plains and to the upper Permian Basin.

“The level of representation for this region was incredible considering the size of this event. It was a great opportunity to talk up the region to some of the top developers in the nation,” Jaworski said. “We were able to make contact with several companies and remind them of the great wind resources we have and how business friendly we are as well.”

This year was David Foster’s first time to attend the annual event. Foster, a local landowner, said developers seem to be hesitant to move forward because of current transmission constraints in the region and are looking for areas that have collected meteorological (met) data. Foster said he developed contacts within the industry that could be instrumental in bringing more wind energy development to the South Plains.

“From all the developers I talked to it seemed like collecting met data was the best thing we could do to entice them to our area,” Foster said. “With the magnitude of investment that these companies are putting into wind, it really looks like the up and coming thing.”

During one of the breakout sessions during the conference, panel speakers recognized the lack of transmission as a major issue for renewable energy development. One speaker noted that the Competitive Renewable Energy Zone (CREZ) transmission build out in Texas is working to put the chicken first, essentially helping to solve the chicken versus the egg scenario with transmission and wind development in the Texas Panhandle.

Another session featured Ray Perryman of The Perryman Group, an economic and financial analysis firm that recently released a study outlining the impact of CREZ on electricity cost savings and economic development. The Perryman Group found that many areas throughout the state stand to benefit greatly from the CREZ build out, saving the typical Texas residential consumer between $160 and $355 annually on electric bills, creating $30 billion in economic gains, employing thousands and bringing in several billion dollars in state and local taxes. You can find the full report at http://www.perrymangroup.com.

Many experts at the conference expressed that extensive wind development is a national challenge that needs top down solutions. AWEA’s CEO Denise Bode stated that our nation is essentially competing with one hand tied behind its back until we get a solid national commitment to renewable development. Noted in a session on public acceptance, 89 percent of American voters believe that wind energy is a good idea.

CPWEA is a non-profit association working to connect landowners and local businesses with the wind industry. Our goal is to recruit wind development to the region and help revitalize rural communities. Go to http://www.caprockplainswind.com to find out more about our association and how you can help support our cause.

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Photos courtesy of the American Wind Energy Association. Find more photos from the event at www.flickr.com/awea.






Until next time...

Texas Renewables

It's no secret that Texas has become a leader in the renewable energy industry. Texas has the most MWs of installed wind capacity in the nation and industry leaders are working to make Texas a leader in solar development as well. The Texas Renewable Energy Industries Association (TREIA) recently celebrated the state's success at their 25th annual renewables conference, but they did more than celebrate 25 years of statewide progress with renewable energies. Industry professionals gathered to look toward the future for renewables in Texas and discuss how we get there.

There were three topics that stuck out to me at the conference and I just thought this would be the best venue for discussing them. I encourage anyone with comments or any insight into any of these topics to leave comments, please!!

Topic #1: Governor Perry's Keynote

This was my first time to ever hear Governor Perry speak in person and I was intrigued; apparently so much so that I didn't realize the local news station's camera crew that was obviously there. Check out this video posted on KXAN.com; and no you won't see me in the video, I checked!



You can find out more about Gov. Perry's luncheon address here.

Governor Perry was clear in stating that he thought the rest of the nation should look at what Texas has done with renewables as an example. He also noted that should a cap and trade bill make it through congress it would negate the progress that Texas has had, saying that an energy tax would cause all products that use energy to become more expensive. Perry voiced his concern that this new regulation would place our country at an unfair advantage. His suggestion was for the federal government to study the success that Texas has had and encourage entrepreneurs to be innovative.

Check out this article for more information:
Texas Gov. Perry tells renewable energy industry that cap-and-trade would hurt state

Topic #2: Looking at Solar

Now I am sure it is apparent from our association's name, but just in case you didn't notice our association focuses on promoting our area for WIND energy development. Over the past week I believe that I, as well as our board, may have seen the light (excuse the pun) when it comes to solar development and the potential it offers our area.

We all know that the wind resources in the Panhandle of Texas are good, but turns out the solar resources are pretty good as well! Who knew?! The TREIA renewable conference helped me to understand that an integration of both renewable sources is really the ideal situation because (to put it very straight forward) the sun shines when the wind tends not to blow.

I could talk more about the benefits of solar, but I think I will leave it up to the experts as its a fairly new topic to me and I feel like I should do some more research before I try to talk about it intelligently. I recommend this article in Solar Today Magazine ~ Texas: The Next Solar Superpower?


Topic #3: PUCT Docket # 37567

This topic probably wasn't one that got a lot of attention from many attendees at the conference and really there was only a brief mention of it during one of the breakout sessions, but it was directly related to wind development in the Panhandle of Texas so, of course, it got my full blown attention. A representative from the PUCT brought up the recent CREZ proceedings and the new petition that has been filed by the commission which is meant to determine whether or not there is sufficient financial commitment by developers in Panhandle A and Panhandle B CREZs to justify the PUCT's granting of CCN's to transmission service providers. In English, before the new transmission lines in the panhandle area are going to be built the PUCT wants to make sure that developers in the area are serious about going forward with wind developments that merit the build out of transmission to the Panhandle.

After doing a little research on the topic when I got back to the office last week I found that as of the PUCT's latest schedule developers must submit an intent to file collateral by December 4th and then there will be a hearing at the commission on January 21st.

You can find all filings relevant to this particular PUCT proceeding by going to PUC Interchange, clicking on login and entering 37567 as the control number.

Of course they were many more topics discussed at the conference and many great industry contacts available to network with; if you attended the conference and have anything to add about what you learned at the conference please feel free to post your thoughts in a comment.

Until next time...

Hot Topics

There were several articles in North American Windpower's recent publication that I felt were worth noting. If you don't already have a subscription you can sign up for one on their Web site. While you can find updates and headlines on the site their print edition offers more in-depth, comprehension stories concerning a wide range of issues in the wind industry.

If you have been following news from the wind industry you probably know about the topics that have been getting a lot of attention, but in NA Windpower's recent publication they give a good overview of what's been going on. I wanted to pass along some of the points they made concerning the CREZ process and a National RES.

CREZ

Mark Del Franco noted in his article, "As CREZ Work Begins, Developers Head East" that some developers are looking at places other than West Texas and the Texas Panhandle while they are waiting for transmission to be built. And what does that mean for us here in the panhandle? To me it means that we just have to be patient. The wind is good here, we have wide open spaces and developers have a lot less to worry about when planning and developing a wind farm. As Del Franco points out in the article, areas where developers have recently starting focusing (the Texas coast for example) are more populated and have more environmental issues to consider.

The CREZ plans will add something around 3000 miles of transmission lines and bump up transmission capacity to 18,456 MW. A direct quote in the article from Paul Sadler, executive director of the Wind Coalition, made it quite clear that the CREZ process will have quite an impact on wind development in Texas basically saying that wind will be able to contribute double what it does today. According to Del Franco's article, wind currently represents 8% of electric capacity in the state.

Another topic discussed in the article wasn't directly related to CREZ, but has the potential to affect whether developers choose to develop in Texas over other wind rich states. The article highlighted the importance of the extension of the Texas Economic Development Act (AKA Chapter 313 of the state tax code) which allows tax abatements to be used to bring in economic development projects like wind farms. This helps bring developers to Texas.

These are just a couple of the items discussed in the article. In my opinion, it looks like while we have recently seen a slow down of development in our area we should be looking at a very different situation in the near future. The biggest issues right now is making sure that developers remain aware of the fact that we want wind in our area. It's a lot easier to deal with landowners who welcome wind development than to try to plan a project amidst opposition. The CREZ is the first step in bringing wind development where it makes the most sense for it to be.

RES

Another recent hot topic is the National renewable electricity standard (RES). Most of those directly involved in the wind industry would like to see legislation put in place that would require 25% of the nation's energy come from renewables by 2025. That original number has been cut down as the legislative process have moved along.

Greg Williams wrote an all encompassing piece in the recent NA Windpower print publication. He points out two main reasons why a national RES is favored: one being the three things that come as a result of renewable energy development (clean energy, jobs, and energy independence) and second that a national RES helps secure the future of renewable energy use in our nation. This security will help the renewables industry to continue to grow.

In his article Williams also notes two reasons why RES legislation is opposed. One, because some believe that the same results will be achieved with carbon reduction policies and two, because the legislation is unfair to those areas that have do not have abundant renewable resources.

In my opinion, the watering down of the national RES only seems to be a delay of the inevitable. I think that most would agree that as a nation we need to be relying on energy that is one, generated right here on our own soil and two that helps minimize negative effects on our environment. A strong national RES would kick things into gear and as far as I can see the sooner we do this the better.

You can check out what's going on with the RES legislation and take action at www.powerofwind.com

Helpful Links - Financing for Renewable Energy

The Rural Alliance for Renewable Energy (RARE) sponsored a free workshop on Finding Financing for Renewable Energy Projects in Rural Texas in Austin on Monday.

Check out these useful Websites provided at the workshop:

Department of Energy (DOE) - American Recovery and Reinvestment Act of 2009 (Recovery Act)

DOE Energy Efficiency and Renewable Energy

American Recovery and Reinvestment Act of 2009 - A Texas Eye on the Dollars

25X25 America's Energy Future

Texas Renewable Energy Resource Assessment

USDA Rural Development

Rural Energy for America Program

Rural Energy for American Program - Grants

Database of State Incentives for Renewable Energy (DSIRE)

Infinite Power - Campaign to Educate Texans about Renewable Energy

Environmental Law & Policy Center, Clean Energy and Rural Economic Development

The following are links Web sites of all those who spoke at the workshop:

State Energy Conservation Office (SECO)

Rural Alliance for Renewable Energy (RARE)

Office of Rural Community Affairs (ORCA)

Texas Renewable Energy Industries Association (TREIA)

Texas Department of Agriculture

Westar Trade Resources

Matney-Frantz Engineering

WINDPOWER, Part 3

The Wind and Public Perspectives:

It was good to hear Susan Williams Sloan, Outreach Manager for Wind Energy Works!, present the findings to a recent AWEA poll. The poll found that wind energy is still popular. 75% of those surveyed favored a national Renewable Electricity Standard (RES). So, that's good news, but we still have some work to do to keep wind in a positive light. It's easy to find negative opinions concerning wind energy, but beware of recycled myths that are floating around out there about wind. Sloan gave the example of a USA Today story which said that renewable energy was responsible for higher electric costs. Sloan was quick to point out that there are many studies that have been done that show that this just isn't true.

What can we do to make sure that wind energy continues to grow? Well much of the answer lies in energy policy. Sloan pointed out that energy is a policy driven industry. Given that fact, its obvious that we must stay on top of whats going in the legislature and contact our representatives, asking them to support things like a national RES.

The first step in keeping wind energy is to keep the public educated. Marion Trieste, GEOS Global, LLC, offered several basic topics that should be considered when promoting wind development. Those included that wind is emissions free, fuel free, not subject to outside factors and therefore offers a predictable price, and an economic development tool (bringing much needed activity to rural economies that are struggling). One of Trieste's main points was the landowners are the key. Without landowner support wind energy development won't be able to progress. Grassroots groups can help landowners get together to have a louder voice when it comes to supporting wind development.

The last point I want to make for this post concerns the power that landowner associations can have in these type of situations. Johnna Bruhn with the Coalition of Renewable Energy Landowner Associations said that developing a landowner association can help combat the overall lack of trust that many landowners tend to have when dealing with developers. A landowner association provides landowners with strength in numbers, collective bargaining power, the opportunity to stay informed and the ability to avoid dividing communities.

It all boils down to staying informed and prepared for what might come your way.

WINDPOWER, Part 2

Seth Dunn of GE Energy related his presentation on US Wind Policy at WINDPOWER last week to America's favorite pastime. This presentation was one of my favorites; making it easy to put policy into perspective.

Dunn presented the "field of dreams" for wind policy in America. Breaking it down into four categories, the things we need to help support the wind industry are:

1. A Financing Fix - the basic premise is that we need to restore the flow of financing so that projects can get off the ground. Factors that may help restore the flow are: A PTC 3 year extension, treasury grants, loan guarantee programs and a green energy bank.
   
   
2. A National RES - In order to provide some type of security in the industry it is imperative to provide a long term signal regarding renewable energy and its future in our country. In order for a National RES to accomplish what it needs to several things need to be included in legislation: aggressive long term requirements, meaningful milestones throughout, a bankable REC market, and penalties for non-compliance.
   
   
3. Transmission - We need to connect resource-rich areas to those areas that need the power. Interconnection-wide planning, cost allocation and federal siting authority will help facilitate the process.
   
   
4. Climate Policy - both long terms goals and requirements for the near future on emission reductions will help to spur the growth of renewable energy, not to mention the benefits it will pose environmentally speaking. Other things mentioned in Dunn's presentation that we need to see come out of climate policy is appropriate cost containment provisions and allowance value for renewable incentives.
   

Of course there will be challenges that come along with each base we round, but if financing programs get back up and running and legislation passes then the wind industry stands to see some substantial benefits.

What Happened At WINDPOWER?! Part 1

The answer to that question isn't a simple one, simply because a lot happened at AWEA's annual wind conference and exhibition in Chicago last week. So, to avoid posting one large post which would require much scrolling on your part, I have decided I will break it down for you over the course of this week. Just make sure you check back for more...

Today's Topic: What Did Boone Pickens Have to Say?

In an interview with Bill Kurtis, television journalist, during the second general session of the conference T. Boone Pickens presented a pretty straight forward message: The United States needs to get off our dependency on foreign oil. He said that while renewables is part of the solution what we must do is go all American when it comes to energy.

Pickens urged people to ask their representatives what their energy plan is, because he said if they don't have an answer to your question then their plan is to rely on foreign oil. Pickens pointed out why this poses a security problem for our nation by saying that a great deal of our oil imported is from countries who are not friendly with the United States.

So does T. Boone Pickens think its possible to get 25% renewable energy by 2025? Yes, he thinks it can be done because he says the American people want it. He pointed out that the results of a recent poll shows that 70% of those polled knew what the Pickens Plan was and 78% of them were in favor of the plan. (You can find out more about the Pickens Plan at www.pickensplan.com).

Pointed out during the interview was the fact that some people just don't want wind energy development on or around their land. To that Pickens responded by saying that if you don't want wind energy development then don't do it; plenty of people elsewhere do want it (in the Great Plains for example).

As far as transmission is concerned, Pickens felt like it would work best if FERC was given the power to site the power grid just like they do with natural gas pipelines. He said that this would help with problems that might arise between states otherwise. Being a landowner himself he said that it wouldn't bother him to have a transmission line running through his property because what is good for this country is good for him. He felt like many landowners would share this same sentiment.

Pickens encouraged people to support his plan for energy Independence saying, "If I've got millions of people with me than I am a hell of a lot more important than just a rich guy from Texas."

AWEA WINDPOWER 2009

The American Wind Energy Association's WINDPOWER Conference started off with a bang. AWEA CEO Denise Bode kicked off the opening ceremonies, pumping up the crowd about the progresses wind energy has made and the possibilities it has to look forward to. Bode stressed one fact much more so than anything else; she explained the impact a National Renewable Electricity Standard would have on the wind industry and urged the crowd to contact their representatives today!

You can find out more about how a National RES will help the wind industry and what you can do to support it at www.powerofwind.com.

The day was filled to the rim with information about the wind industry and included speakers such as Ken Salazar, Secretary, U.S. Department of the Interior; Jon Wellinghoff, Chairman of the Federal Energy Regulatory Commission (FERC); and many more.

I will leave you with this for tonight, but check back for more detailed information on the various speeches given throughout the week.

Don't forget to contact your Members of Congress about passing a National RES!!

Upcoming Webinar

Biofuels Journal is featuring in their Webinar series a presentation entitled "Four Primary Ways the Stimulus Bill will Impact the U.S. Wind & Biofuels Industries" on Tuesday, April 14, 2009 at 2p.m. Central Time.

Click here to find out more informaiton and register. Space is limited.

A National RES

Many states have had success in renewable energy development because of requirements set forth in their own renewable energy standards (RES) sometimes called renewable portfolio standards (RPS). Texas for example set a standard that they have had to go back and increase because of the overwhelming development seen recently. Texas' original RES called for 5880 MW of renewable energy to be produced by 2015; currently Texas has over 8000MW of renewable capacity.

This afternoon AWEA presented a Webinar looking at the benefits of a National RES, which would help to reach the nation's goal of 25% renewable electricity by 2025. You can find their recent publication Wind Energy for a New Era at www.newwindagenda.org. The document provides recommendations for political leaders concerning legislative priorities developed by the wind industry.

Some of those priorities have already been accomplished. Identified as an immediate impact priority, restructuring of the Production Tax Credit (PTC) can be checked off the do to list. Another priority that can be checked off is one the wind industry identified as a short term impact; legislation has been passed allowing a multi year PTC extension. Those priorities which have yet to be "checked off the list" are separated into two categories: mid-term and long-term impacts. A National RES and transmission legislation are listed under the mid-term impacts and effective carbon regulation is listed under long term.

So why is a National RES so important? Some of the benefits that were outlined in the Webinar included that it would: save consumers money and protect against fuel price spikes, spur economic development, and reduce carbon emissions. Looking more closely at each of these benefits, a National RES would save American consumers up to $100 billion in lower energy bills. In relation to economic development, 20% renewable energy by 2020 would support 500,000 direct and indirect jobs in the wind industry. And, CO2 emissions would be cut down by 12% by 2020 if the 25% by 2025 were met.

A National RES would also help to provide assurance to those looking to invest in renewables as this type of legislation would send a strong signal that as a nation we are committed to this endeavor. There is currently legislation in both the Senate and House that address renewables and their contribution to the future of energy production.

The general idea presented is that a National RES would keep our nation on track with meeting our current renewable energy goals.