The Western Governors' Association drew on the expertise of more than 250 energy industry stakeholders to produce Clean Energy, a Strong Economy and a Healthy Environment, a roadmap for meeting the growing energy needs of the West. (Artwork by Western Governors' Association)

On the opening day of the Western Governors' Association Annual Meeting, the governors endorsed a broad-based set of proposals to secure "Clean Energy, a Strong Economy and a Healthy Environment" for the West.

Ambitious goals call for cooperation

The report concluded that the technology and resources exist to meet or exceed the goals first laid out by WGA's Clean and Diversified Energy Initiative in 2004.  The goals include developing an additional 30,000 megawatts of clean energy by 2015; increasing energy efficiency 20 percent by 2020; and ensuring secure, reliable transmission for the next 25 years.

"When we work together, these ambitious goals are 100-percent attainable," California Gov. Arnold Schwarzenegger said at the meeting. "They're too important for us to do anything but work together."

More than 250 energy industry stakeholders worked for 18 months on task forces that contributed to the final report. Representatives from Western customers Basin Electric Power Cooperative, Kit Carson Electric Cooperative, Nebraska Public Power District and Tri-State Generation and Transmission Association served on the Clean and Diversified Energy Advisory Committee. Alan Edwards, who has since retired from Basin Electric, represented the challenge facing CDEAC—Basin is a coal-based utility with significant wind generation. "There is no one technology or resource that is the answer," he said. "Our job was to determine the mix that allows each resource the maximum market penetration."

Individual task forces studied energy efficiency, transmission, solar, wind, geothermal, biomass, clean coal technologies and advanced natural gas technologies, and submitted reports to the CDEAC. Western's Power Marketing Advisor Bob Fullerton was a member of the wind task force. "This report demonstrates the regional governors' commitment to diverse generation sources," he said.

"It shows the importance of clean energy and energy efficiency to the West's future energy supply. The recommendations also promise to build on the momentum of existing customer efforts to advance the role of renewable resources and energy efficiency," Fullerton added.

Recommendations cover broad spectrum

The WGA resolution stressed the need for cooperation across government and industry lines. The governors identified Federal policies and legislation that would advance CDEAC's goals, such as a long-term extension of the production tax credit. "In terms of renewable energy development, that is the most important recommendation," said Western Energy Services Manager Ron Horstman. "The PTC is critical to stimulating investment."

Raising the residential tax credit cap for renewable energy or distributed generation systems, as the governors advise, would help stimulate development in that sector, too.

Another recommendation supported tax credits for energy efficiency investments. The resolution also supported improvements in national appliance efficiency standards and encouraged funding for clean energy research and development. The governors called for strong collaboration between state and Federal agencies on facility siting and infrastructure planning, as well.

Integrated Gasification Combined Cycle facilities received particular attention. WGA recommended extending the Federal tax credit for IGCC powerplants for five years and providing a tax credit program for carbon capture and sequestration for at least five years. The governors also supported increased Federal funding and incentives for IGCC demonstration projects at high altitude using western coal.

Transmission a critical issue

A number of recommendations addressed transmission, always an issue in the West, said Edwards. "Whatever the resource, you have to be able to get it to market," he observed. "I think the report did a good job of showing that transmission is a common sticking point to all types of development."

The governors urged smart transmission planning to make more efficient use of the existing electric transmission grid. The resolution advised incorporating energy efficiency, combined heat and power and other demand-side resources into state transmission planning.

Expanding the grid to deliver remote generation will require strong cooperation among Federal and state agencies. "Last year's Energy Policy Act paved the way for greater collaboration," said Horstman. "A more stable business environment will help to encourage investment."

States need to work with utilities to establish policies that will implement the CDEAC recommendations, added Doug Larson, executive director of the Western Interstate Energy Board. WIEB is the energy arm of WGA. "When load-serving entities adopt energy efficiency measures, they lose sales," he said. "Incentives need to be restructured to reward utilities for adopting the recommendations."

Stakeholders eager to move forward

"Clean Energy, a Strong Economy and a Healthy Environment" confirms what the renewable energy industry has been saying about the West for years. It is not surprising that industry groups are eager to see its recommendations implemented. "The next steps are still evolving, but it will involve collaborations with organizations that share WGA's goals," Larson commented.

The National Wind Coordinating Council made its membership in that group clear by following up WGA's June meeting with a leadership forum in July. WGA co-sponsored "Implementing Transmission Recommendations in the West," which focused specifically on proposals made in the CDEAC transmission and wind task force reports. Western Administrator Michael Hacskaylo was a panelist and Wyoming Governor Dave Freudenthal key noted the two-day forum.

"Recent studies show significant economic, hard dollar benefits to both supplier and buyer states from diversifying electric generation resources and increasing efficiency in the West," Freudenthal said. "This means we could lower costs for consumer states and increase revenues for producer states across the region."

The first day of the conference brought participants together to discuss the CDEAC recommendations for wind and transmission. Action teams and meeting attendees discussed the priorities set in the report, the strategies and barriers to implementation and who would be responsible for implementing action plans.

"The NWCC can play an important role in facilitating agreements among the necessary actors," said Larson. "There's a strong feeling among the stakeholders and WGA that we want action to implement the CDEAC recommendations," he added.