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The Vermont Energy Digest The Vermont Energy Digest An Inventory Of Renewable Energy And Efficiency Vermont Council On Rural Development April 2007 Acknowledgements The Vermont Council on Rural Development deeply appreciates the support of each of the sponsors of this report, which is a component of the Vermont Rural Energy Council (VREC): Casella Waste Systems, Windham Foundation, VT Agency of Transportation, VT Agency of Natural Resources, VT Sustainable Futures Fund, Vermont Department of Public Service, High Meadows Fund, VT Agency of Agriculture, USDA Rural Development and Ben & Jerry’s. Printing for this publication was provided by National Life Insurance Group. The VCRD would like to thank the many people who generously shared their time and expertise in the development of this report. Special thanks go to the following people for providing technical information and chapter reviews: Lori Barg, Paula Calabrese, Robert DeGeus, Dave DiDomenico, Robert Foster, Kim Greenwood, Blair Hamilton, Frances Huessy, Dave Lamont, Mike McQueeney, Lawrence Mott, Matt Orio, Andrew Perchlik, Diona Roberg, Leigh Seddon, Scott Sawyer, Daniel Scruton, Richard Smith, Netaka White, John Warshow, and Jeffrey Wolfe. Research on this report began in late 2006. Every effort has been made to present accurate information, but changes are occurring rapidly in this dynamic sector. VCRD encourages readers to use the Resource and Reference Lists in the appendices found online at www. vtrural.org to obtain more detailed and up-to-date information. The author apologizes for any factual errors or outdated information. Vermont Council on Rural Development The Vermont Council on Rural Development is a non-profit organization dedicated to helping Vermonters and Vermont communities develop their capacity to create a prosperous and sustainable future through coordination, collaboration, and the effective use of public and private resources. A dynamic partnership of federal, state, local, non-profit, and private partners, VCRD is uniquely positioned to sponsor and coordinate committees concerned with policy questions of rural import. The Vermont Energy Digest was researched and written by Brenda Hausauer For additional copies of this report, contact: Vermont Council on Rural Development 89 Main St., PO Box 1384 Montpelier, VT 05602 802-828-6022 [email protected] www.vtrural.org Design and Layout: Newcomb Studios An Inventory of Renewable Energy and Efficiency Table of Contents Introduction. 2 An Energy Snapshot. 3 Efficiency and Conservation. 12 Electrical Efficiency and Conservation . 12 Transportation Efficiency and Conservation. 15 Efficiency and Conservation in Other Sectors. 19 Wood Energy. 21 Farm Biogas. 27 Landfill Biogas. 32 Biofuels . 36 Wind Energy . 41 Solar Energy. 47 Hydroelectric Energy. 51 Geothermal Energy. 54 Appendices. 56 The following appendices can be found in the online version of this report, at www.vtrural.org. • Vermont Incentives for Renewables and Efficiency • Recent Vermont Laws and Programs • Resources • Reference List 1 THE VERMONT ENERGY DIGEST Introduction ermonters began the year 2007 with a sharpened Summit at Lyndon State College, drawing more than 350 awareness of a changing climate and a growing participants to share their expertise and ideas about the interest in a complex array of renewable energy state’s energy future. In June 2006 VCRD launched VREC, a options. Governor Douglas and the Legislature 26-member council conducting a comprehensive year-long Vhave stated their commitment to understanding and building study that will conclude with the July 2007 publication of this important sector in Vermont. Community groups have recommendations for federal, state, and private agencies formed, technologies are being developed, and opportunities toward advancing Vermont opportunities for local energy are unfolding that could seed economic growth for Vermont generation, fuel development and expanded efficiencies (the businesses, farmers and entrepreneurs. Renewable energy is a Summit report, VREC membership and Council Charge can rapidly changing and diverse field. Clearly there is a need for be found at www.vtrural.org). Finally, VCRD has commis- a concise source of information about current developments sioned economic modeling research designed to analyze the in renewable energy, Vermont’s potential for growth in each economic risks and opportunities of various energy sectors sector, and barriers to consider in forming wise choices in under diverse scenarios. The results of that project will be renewable energy development, production and use. released in conjunction with VREC’s final report. The Vermont Council on Rural Development (VCRD) The Vermont Energy Digest serves as a companion to the presents this Digest in response to that need. The Digest VREC final report. It brings together information on the is an overview of eight distinct renewable energy sectors: existing state of renewable energy development and efficiency wood, farm biogas, landfill biogas, biofuels, wind, solar, in Vermont through a review of all pertinent available hydroelectric and geothermal, including a survey of interna- sources. Inevitably the Digest contains data and analysis from tional and national practices in each field, Vermont’s current numerous and, in some cases, conflicting sources. The Digest and potential market, and barriers to progress. The Digest is not designed to serve as a final statement or to arbitrate also presents a snapshot of current energy programs and among different views, and it makes no recommendations; incentives, and an examination of efficiency and conserva- rather, it provides a baseline from the best available data for tion practices in electricity, transportation and other specific VREC and all parties interested in the future development of sectors. renewable energy and efficiency in Vermont. VCRD has developed this document as part of the work of Efficiency and renewable energy development and generation the Vermont Rural Energy Council (VREC), which is in the present emerging opportunities to stimulate Vermont’s rural process of evaluating opportunities in renewable energy economy, strengthen communities, and protect the state’s generation, fuel development and efficiency in Vermont. In environmental integrity. VCRD hopes that you will find this a August 2006, VCRD convened the “Local Power” Energy useful resource in understanding this vital sector. 2 An Inventory of Renewable Energy and Efficiency An Energy Snapshot WORLDWIDE AND U.S. ENERGY usE Total energy use has increased steadily in the U.S. in the past several decades; energy use was 72 quadrillion BTU in 1975, he way we use energy rarely has been so much on compared to 100 in 2005 (Oak Ridge National Laboratory, our minds. Federal, state, and local governments 2006). As illustrated by the chart below, about 94% of U.S. around the world are devoting serious attention to energy comes from petroleum, natural gas, coal, and nuclear energy initiatives. Oil prices have risen, and there power. The energy consumed per dollar of Gross Domestic Tare security impacts around the world. Global climate change Product (energy intensity) has steadily dropped in the U.S. is a concern in most nations, and extreme weather events for many decades, indicating that energy use has gotten more appear to be increasing. There is discussion about when efficient (U.S. Energy Information Administration,Annual the world’s oil supply will peak and then start to decline. Energy Review 2005). Meanwhile, population continues to rise; developing countries grow their economies; and the 1.6 billion people who still do Energy consumption in the U.S. is projected to continue to not have electricity strive to have a better life – all requiring increase at an average rate of 1.1% per year through 2030 more energy (International Energy Agency, World Energy (under a reference case scenario) (U.S. Energy Information Outlook 2006). Administration, Annual Energy Outlook 2007). Meanwhile, worldwide energy use is projected to grow at 2% per year on Worldwide energy use doubled between 1970 and 2004 to average through 2030, with high increases in China, India, 443 quadrillion BTU, with the U.S. using the highest amount and other developing countries (U.S. Energy Information per person (U.S. Energy Information Administration, Annual Administration, International Energy Outlook 2006). Energy Review 2005.) The U.S. consumed 343 million BTU per person in 2005, compared with 147 per person in Europe, Petroleum products provide the largest portion of energy and 70 per person worldwide (U.S. Energy Information consumption in the U.S. Transportation accounts for about Administration, International Energy Annual 2004.) The two-thirds of U.S. oil use (but worldwide, about seven-eighths United States was the largest consumer of oil in 2005, using of the world’s people do not yet have cars) (Worldwatch nearly one-fourth of the world’s total (Worldwatch Institute, Institute, Sept. 2006 and Lovins, 2006). Oil prices have risen July 2006). dramatically since 2000. Oil has direct and indirect costs, including climate change, insecurity, geopolitical rivalry, U.S. Energy Consumption, 2005 price volatility, and health costs (Lovins, 2006). There are Total = 99.9 Quadrillion BTU; increasing concerns about the world’s declining oil supply. Total Renewables = 6.1 Quadrillion BTU Many experts predict global oil production will peak within five years, and few anticipate a peak later than 2020 (City of Coal: 23% Portland, 2007). After the peak occurs,
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