The Energy Connection State Budget and Control Board Winter 2009 Energy offi ce receives $500,000 wind energy grant The South Carolina Energy Offi ce to understand how coastal clean tidal energy potential in several key (SCEO) was awarded nearly $500,000 energy can be effectively transmitted areas along the South Carolina coast in funding in October from the U.S. to users, obtain data for a pilot offshore as early as January 2009. Resource Department of Energy (DOE) to wind project in state waters and form data collection is expected to be study coastal clean energy potential the South Carolina Coastal Clean completed by December 2009. The in South Carolina over the transmission study next several years. will be completed in The SCEO will work December 2010 and alongside Santee Cooper, the regulatory study Clemson University, in October 2011. Coastal Carolina University, These studies Savannah River National will contribute vital Lab, EcoEnergy LLC, and information that will North Carolina State impact the state’s University to overcome fi rst offshore wind existing barriers for coastal energy pilot project. clean energy development If the pilot project is for wind, wave and tidal successful, the state energy projects. could produce more “We’re tremendously than 3,000 MW of excited about this offshore wind power opportunity to study and The grant will be used to study the feasibility of placing wind turbines up to 10 miles off the that would represent South Carolina coast. plan ahead for a potentially over 10 percent of signifi cant renewable energy resource Energy Task Force to recommend a the anticipated electrical needs of for the state,” said SCEO Director regulatory environment conducive to South Carolina by 2030. Coastal clean John Clark. “We’re honored to work coastal clean energy development. energy is potentially South Carolina’s with these outstanding stakeholders Coastal Carolina and NCSU expect largest and most sustainable resource, to support efforts already underway.” to collect data using an observation and this grant represents one step The three-year grant will be used network that will measure wave and towards a green energy future. In this issue... • State looking to natural gas - Page 3 • Residential tax credits to take effect in January - Page 3 • Hydrogen bus and fueling station on the way - Page 5 • Gov. Sanford signs Pickens pledge - Page 9 Solar installations around the state were the focus of a solar tour held in October. See PAGE 7 for more. Winter 2009 Page 1 New biomass facility Old energy policy was to be fi rst source remarkably far-sighted of commercial renewable energy John F. Clark Director, South Carolina Energy Offi ce Santee Cooper, South Carolina’s state-owned public Volatile energy prices, energy security (f) ensure that energy vulnerability to power agency, has agreed concerns, global warming and other envi- international events is minimized; to purchase 50 megawatts ronmental considerations, and the drain on (g) ensure that energy-related decisions of energy from wood waste our economy resulting from huge expendi- promote the economic and environmental biomass beginning in 2011 tures for external energy purchases have well-being of the State and maximize the from Rollcast Energy, Inc., all combined to cause many observers to ability of South Carolina to attract retirees, which is partnering with the advocate a fresh look at state energy policy tourists, and industrial and service-related South Carolina Department of and where South Carolina needs to go in jobs; Commerce, Newberry County the future. A fresh look is an excellent idea, (h) ensure that short-term energy deci- and the Central South Carolina but we are fortunate to have a sound foun- sions do not confl ict with long-range energy dation upon which to build. needs; Alliance to build a new biomass In 1991, when energy was far from the (i) ensure that internal governmental facility in Newberry County. front-burner issue that it is today, a far-sight- energy use patterns are consistent with the The $170 million investment ed legislator from Beaufort, Representative State’s long-range interests; will be the fi rst biomass facility Harriet Keyserling, decided that the state (j) ensure that state government is or- in South Carolina generating needed a long-range vision of where we ganized appropriately to handle energy mat- commercial renewable power need to go, and she decided to do some- ters in the best public interest; and is expected to generate 27 thing to achieve that vision. As Chair of the (k) ensure that governmental energy- new permanent jobs, with up to Joint Legislative Committee on Energy, she related tax, expenditure, and regulatory 200 additional jobs that could be appointed a high-powered, bi-partisan South policies are appropriate, and, wherever pos- created as a result of contractor Carolina Energy Policy Panel to examine sible, maximize the long-range benefi ts of services and construction. needs and make recommendations. Chaired competition. Biomass is the oldest by Bill Verity, a Palmetto State resident who Specifi c results of the 1992 legislation form of renewable energy and had served as Secretary of Commerce included the fi rst statewide residential en- under President Reagan, the panel and its ergy building code; creation of a profes- provides a cost-competitive working committees met 65 times over a sional, non-political state energy offi ce; alternative to fossil fuel-fi red fi ve-month period and issued a report that mandatory energy use and cost reporting plants. Other benefi ts include has stood the test of time surprisingly well. by state agencies, colleges and universities reduced emissions, retention Most recommendations were enacted into and public school districts; used oil recy- of fuel expenditures within the law through the South Carolina Energy cling; tax incentives for energy effi cient state (South Carolina produces Conservation and Effi ciency Act of 1992. manufactured housing; integrated resource no fossil fuels), increased energy Consider, if you will, the vision of the planning by power generating utilities; de- security and reduced waste, State Energy Policy enacted in 1992: mand-side management reporting by elec- as biomass currently buried (a) ensure access to energy supplies at tricity distribution utilities; energy effi ciency in landfi lls can be recycled to the lowest practical environmental and eco- performance contracting by public entities; generate electricity. nomic cost; and much more. Since then, new statutes The 50 megawatts of biomass (b) ensure long-term access to ade- consistent with the State Energy Policy have energy, generated from area quate, reliable energy supplies; widened and improved the initial legislative (c) ensure that demand-side options results. logging residues and urban wood are pursued wherever economically and en- Now that we are 16 years down the debris, will be enough to power vironmentally practical; road, a holistic update of the State Energy 25,000 homes. Construction is (d) encourage the development and use Policy and related legislation is certainly due, scheduled to begin in June 2009, of indigenous, renewable energy resources; but I am pleased at how well the broad poli- and the plant is scheduled for (e) ensure that basic energy needs of all cies developed through the wisdom, leader- energy production by 2011. citizens, including low income citizens, are ship and vision of Keyserling and Verity have met; stood the test of time. The Energy Connection Page 2 Residential tax credits on the way thanks to South Carolina new federal legislation considers natural gas When Congress passed the “Emergency Economic Stabilization Act of 2008” exploration in October, the bill didn’t just provide relief to the troubled fi nancial markets; it also extended tax credits for energy effi cient home improvements including A State-commissioned group windows, doors, roofs, insulation, HVAC and non-solar water heaters. Tax credits instructed to study natural gas for these residential products, which had expired at the end of 2007, will now be exploration off the coast of South available for improvements made during 2009. Improvements made during 2008 Carolina continues to make steady are not eligible for a tax credit. progress. South Carolina Energy Offi ce Program Manager Ralph Jenkins said that the tax The lease of federally-owned credits will be benefi cial in several ways. offshore land was made more feasible “Given that one quarter of our nation’s energy is expended in the residential at the end of September, making sector, the extension of these credits should have an impact on energy independence the deliberations of the group more as well as reducing operational costs for the life of the home,” he noted. important than ever. Accordingly, The tax credit breakdown is as follows: representatives of the U.S. Department • Effi cient windows and doors – 10 percent of cost, subject to of Interior Minerals Management Service either a $200 or $500 maximum depending on the level of energy (MMS), the leasing authority for offshore effi ciency mineral resources, explained to the • Effi cient roofi ng – 10 percent of cost, up to $500 committee the many layers of planning • Insulation – 10 percent of cost, up to $500 and assessment required before a lease • Heating and cooling systems – $50-$300 can be granted. MMS representatives • Water heaters – $300 also reported that there may be as The maximum credit allowed is $500 (for all improvements combined) ,and all many as 14 million barrels of oil and tax credits are available for home improvements “placed in service” from January 3.86 trillion cubic feet of natural gas off 1, 2009 through December 31, 2009. the South Carolina coast. Furthermore, For further details on these tax credits and eligibility requirements for energy- they reminded committee members that effi ciency home improvements, please visit the ENERGY STAR® Web site at www.