Summer 2012 Q Volume 23 No.2 Conservationcoastal League
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Summer 2012 Q Volume 23 No.2 ConservationCoastal League Summer FIELD TRIPSs 3OLAR4AX#REDITs #ONSERVATION"ANK2ESCUEs 4HE3OLUTIONs "ISHOP'ADSDEN'ARDENERSs Our Energy Future Summer 2012 Vol. 23 No. 2 A Civil Discussion on Energy Policy ____________________STAFF Director Dana Beach Assistant Director Megan Desrosiers funny thing happened on the way to the energy ________________REGIONAL OFFICES_____ forum this spring. Politicians forgot to spout partisan ideologies; utilities forgot to threaten SOUTH COAST Office Director Steve Eames job-killing price increases; government officials Project Manager Reed Armstrong forgot to equivocate, and environmentalists NORTH COAST A Office Director Nancy Cave forgot to be unreasonable. (Actually, I don’t think environmentalists have been unreasonable, but COLUMBIA Office Director Patrick Moore for the sake of consistency, let’s stipulate that they may Govt. Relations Coordinator Merrill McGregor Project Manager Ryan Black have, on occasion, over-reached.) _______PROGRAMS_____________ A coalition called Business for Innovative Climate Program Directors Hamilton Davis and Energy Policy hosted a day-long conference at Kate Parks Lisa Turansky the Francis Marion Hotel in Charleston this spring, entitled Managing Risk Sandy Hillyer Project Manager Katie Zimmerman and Realizing Opportunity for South Carolina’s Energy Economy. The GrowFood Carolina Sara Clow Jessica Diaz goal was to explore how to prepare for a future of rising energy costs, rapid technological innovation, political uncertainty and climate change. ____________________DEVELOPMENT It is tiresome to hear how poorly South Carolina ranks on various Director of Development Courtenay Speir Senior Development Officer Catherine McCullough measures of performance, so I’ll get this one over with right away: We spend Events Manager Amanda Cole more money on energy than all but five other states in the country for every ______________ADMINISTRATION______ dollar of GSP (gross state product). This tracks the statistic we’ve cited often, HR and Administration Tonnia Switzer-Smalls Director of Finance Ashley Waters that South Carolina is the fourth least energy efficient state in the nation. Data Manager Nora Kravec Administrative Assistant Louann Yorke Bottom line, we are wasteful, and that’s bad for the economy and Executive Assistant Bea Girndt the environment. Board of Directors It is important to note that high energy prices are not the reason energy Roy Richards, Chair represents such a large proportion of our operating costs. Gas and electric William Cogswell Alex Marsh Andrea Ziff Cooper James R. McNab, Jr. rates in South Carolina are actually below average. But nationwide, many Berry Edwards Richard R. Schmaltz Richard T. Hale Jeffrey Schutz states with low prices, like us, have high bills; while states with high prices Katharine Hastie Harriet Smartt Hank Holliday Stan Stevens have low bills. California, for example, has the 11th highest energy costs in Holly Hook John Thompson W. Jefferson Leath Bill Turner the country, but its bills are the tenth lowest. Patricia W. Lessane Victoria C. Verity Advisors and Committee Members Paul Kimball Hugh Lane Jay Mills Newsletter Editor Virginia Beach Designer Julie Frye P.O. Box 1765 Q Charleston, SC 29402 Phone: (843) 723-8035 Q FAX: (843) 723-8308 Email: [email protected] website: www.CoastalConservationLeague.org P.O. Box 1861 QBeaufort, SC 29901 Phone: (843) 522-1800 1001 Washington Street, Suite 300 Q Columbia, SC 29201 Phone: (803) 771-7102 P.O. Box 603 Q Georgetown, SC 29442 Phone: (843) 545-0403 All contents herein are copyright of the Coastal Conservation League. Reprinting is strictly prohibited without written consent. Cover Photo by Dana Beach Our Energy Future Higher prices are clearly an incentive to conserve, but national data take us one step further. In some circumstances, higher prices stimulate enough conservation to actually reduce total energy expenditures. (To jog your memory of Econ 101, this means that the demand for energy is relatively elastic with respect to price.) So, while higher energy costs are painful in the short term, they may result in savings over time. Now, back to the conference. The primary purpose was not to criticize where we are today, but to help decide where we would like to be in the future, and how we can Not surprisingly, improving energy efficiency is get there. Not surprisingly, improving energy efficiency is the first and most effective step we can take to the first and most effective step we can take to protect us from price shocks and pollution. As Jim Rogers, head of protect us from price shocks and pollution. As Duke Energy, has said, “the most environmentally benign Jim Rogers, head of Duke Energy, has said, “The plant we can build is the one we don’t have to build.” South Carolina also has substantial opportunities in the most environmentally benign plant we can build field of renewable energy production. Boeing has installed is the one we don’t have to build.” the sixth largest solar array in the country on the roof of its new plant in North Charleston, and the Clemson drive train testing facility is one of the nation’s most important Cooperatives and the S.C. Energy Office presented wind power research initiatives. practical perspectives on the best paths toward a clean If you followed the national climate debate in Congress energy future. Former Republican Congressman Bob a few years ago, you might guess what happened at the Inglis gave the luncheon address in which he persuasively South Carolina conference. The participants threw argued that solving our energy problems is a cause that ideological jabs at one another, deployed fear tactics about should be central to the conservative political agenda. the economic impact of energy legislation and completely And the answer, for a dozen reasons, is not “Drill, Baby, ignored the pressing need for policy reforms. Drill.” But they didn’t. Senator Paul Campbell, who has Not one political stunt was pulled. No names were been a leader in the S.C. Senate on energy matters, called, and the sky did not fall. It was just a factual, set the tone for a thoughtful, analytical and respectful thoughtful, constructive discussion. In this instance, discussion. Panelists from Duke Energy, the S.C. Electric Congress could learn a lot from South Carolina. COASTAL CONSERVATION LEAGUE Energy News Solar Tax Credit & Building Codes for SC This spring, the Coastal Conservation Updated Building Codes Signed Into Law League energy staff – Hamilton Davis ince 2010, Conservation League Energy Director Hamilton Davis has served on the Energy Advisory Council of the Public Utility Review and Ryan Black – and the League’s Committee (PURC), which was tasked with making recommendations legislative liaisons – Patrick Moore for a comprehensive energy policy for South Carolina. One focus of the PURC Energy Advisory Council was to update the state’s building codes and Merrill McGregor – teamed S to reflect International Energy Conservation Code (IECC) standards. Up until now, South Carolina has been using 2006 IECC standards for up to work with the PURC Energy the state’s building codes. As a result, South Carolinians are missing out on the latest technologies and building practices that could improve their energy Advisory Council, the Homebuilders efficiency and save them money on their electric bills. So the PURC Energy Advisory Council worked with the Home Builders Association to conduct an Association, members of the solar analysis of the impacts of updating the state’s building codes to the 2009 IECC standards. industry, and legislators to update South Carolina’s building codes and increase the state’s solar tax credit. Such measures will encourage and ENERGY CODE BENEFITS incentivize efficiency and renewables, U When rolled into a mortgage, new homeowners realize a payback and reduce our dependence on on their investment within an average of seven months; U Subsequent net annual savings of $184 per year, and imported, finite commodities like U A five-year profit of $817. coal and uranium. COASTAL CONSERVATION LEAGUE Energy News Increased Solar Tax Credit Last year, Rep. Dwight Loftis Passes House, (R-Greenville) introduced H.3346, the Solar Energy Investment Tax Credit, Stalls in Senate which would allow a 35% state tax credit for the installation of solar eague Project Manager Ryan energy equipment for both residential Black and Government Relations and commercial purposes placed in Coordinator Merrill McGregor service in 2012 and later. After passing have worked with legislators through the House of Representatives and members of the state’s solar in 2011 by a vote of 100 to 10, Lindustry for the last two years H.3346 had been slowly, but steadily, to increase South Carolina’s existing progressing through the Senate in solar tax credit from 25% to 35%. 2012. The proposed increase would make Unfortunately, despite our best this source of renewable energy more efforts to convince Senate leadership attractive to homeowners and private of the urgent need to increase solar developers and would encourage investment, the bill ultimately stalled istockphoto.com investment in solar installations. It there twice, once as a standalone bill would also elevate South Carolina’s tax in the full Senate Finance Committee, The analysis definitively argued credit to be on par with that of North and again as an amendment to S.1409, in favor of adopting 2009 IECC Carolina and Georgia, ensuring that which was not taken up on the Senate standards. A recommendation for the state remains regionally competitive floor prior to the end of the session. adoption was sent to the full Public in the solar market. Utility Review Committee and was unanimously accepted. Introduced by Rep. Bill Sandifer (R-Oconee), H.4639 – International Energy Conservation Code Adoption – passed through the Judiciary Committee and received third SCE&G to Close Six Coal- reading in the Senate by a vote of 30 to 12. On April 2nd, Governor Haley Fired Power Plants by 2018 signed the bill into law, which will go ast month, S.C.