Chapter 1 Chapter 5 Table of 1.0 Introduction ..................................1 5.0 Energy and the Environment ....102 Contents 1.1 Executive Summary ........................2 5.1 Impacts of Energy Use on Air Recommendations..........................9 Quality ........................................102 1.2 Conclusions..................................29 5.2 Impacts of Energy Use on Water Quality and Water Supplies........104 Chapter 2 5.3 Land Use and Energy Consumption..............................105 2.0 Virginia Energy Resources 5.4 Impacts of Energy Use on and Consumption ........................30 Climate Change ..........................107 2.1 Energy Production........................30 5.5 Environmental Case for 2.2 Energy Imports and Exports ........37 Energy Efficiency and 2.3 Energy Consumption ..................43 Renewable Energy ......................109 2.4 Energy Production and 5.6 Incentives for Renewable Consumption Forecasts................47 Energy ........................................110 2.5 Impact of Utility Regulation 5.7 Carbon Capture and Storage ....111 and Restructuring ........................49 5.8 Environmental Programs 2.6 Role of New Technologies............49 Affecting Energy Use ..................112 2.7 Opportunities and Challenges ....56 Chapter 6 Chapter 3 6.0 Energy Research and 3.0 Energy Efficiency and Development ..............................116 Conservation ................................58 6.1 Energy R&D at Virginia Colleges 3.1 Improving Energy Efficiency and Universities..........................117 and Conservation in Virginia ......58 6.2 Energy R&D at Federal 3.2 History of Energy Efficiency Laboratories in Virginia ..............130 Savings and Spending - Electric 6.3 Energy R&D at Virginia Utilities ........................................60 Industry ......................................131 3.3 Opportunities and Challenges 6.4 State Best Practices for with Energy Efficiency and Facilitating Energy R&D ............135 Conservation ................................60 6.5 Opportunities for Improving 3.4 The Case for Energy Efficiency Virginia Coordination of and Conservation ........................61 Energy R&D................................137 3.5 Energy Efficiency and Conservation Potential in Virginia......................63 Chapter 7 3.6 Emerging Energy Efficiency Technologies and Practices ..........76 7.0 Recommendations......................142 7.1 Energy Efficiency and Chapter 4 Conservation ..............................144 7.2 Virginia's Energy Infrastructure 4.0 Energy Infrastructure ..................78 and Supplies ..............................160 4.1 Electrical System Infrastructure ..80 7.3 Energy, the Environment, and 4.2 Natural Gas Infrastructure ..........88 Climate Change ..........................166 4.3 Petroleum Infrastructure..............91 7.4 Energy Research and 4.4 Coal Mining Infrastructure ..........93 Development ..............................167 4.5 Propane Infrastructure ................95 7.5 Energy Economic 4.6 Biomass/Waste Infrastructure ......95 Development ..............................168 4.7 Renewable Energy 7.6 Implementing Infrastructure - Wind Power ........97 Recommendations......................170 4.8 Alternative Fuels Production........98 4.9 Uranium/Nuclear Energy............100 Appendix A ........................................172 Appendix B ........................................174 The Virginia Energy Plan TOC 1 1.0 Introduction • Facilitate development of energy Chapter 1 sources that are less polluting of the The purpose of the Virginia Energy Plan is Commonwealth's air and water, and The Virginia to chart a path forward that will provide electric generation technologies that for reliable energy supplies at reasonable Energy Plan do not contribute to greenhouse gases rates and increase the use of conservation and global warming. and efficiency measures in Virginia. The Executive • Ensure the economic viability of Plan has been developed in accordance Virginia's producers of low-cost Summary with 2006 legislation (Title 67 of the Code energy resources. of Virginia; see Appendix B) that set out energy policy statements and objectives • Foster research and development of and directed the Department of Mines, alternative energy sources that are Minerals and Energy to develop a ten-year competitive at market prices. state energy plan. The Plan is to be • Develop energy resources and updated every five years. facilities that do not impose a disproportionately adverse impact on This Plan was developed using information The purpose of the economically disadvantaged or gathered from the Virginia Energy Plan Virginia Energy Plan minority communities. is to chart a path Advisory Group (see Appendix A for a list of members), which met five times to • Increase Virginia's reliance on forward that will address the Plan's major components. The agricultural-based ethanol and provide for reliable Plan is also the product of input received biodiesel from crops grown in the energy supplies at at five public workshops held around the Commonwealth. reasonable rates and state and from public comments submitted • Ensure that energy generation and increase the use of via the Internet. The plan has been delivery systems are located in places that minimize impacts to pristine conservation and reviewed by the Department of Environmental Quality and other state natural areas and other significant efficiency measures agencies, State Corporation Commission onshore natural resources, and that in Virginia. staff, and the Virginia Center for Coal and are as near as possible to compatible Energy Research. The research and development. development recommendations are derived from a study by the Center for Innovative Technology. The Virginia General Assembly set out energy policy statements and objectives in the Code of Virginia at sections 67-101 and 67-102. These call for Virginia to take a broad range of energy actions, including: • Ensure the availability of reliable energy at costs that are reasonable and that advance the health, welfare, and safety of Commonwealth residents. • Establish sufficient energy supply and delivery infrastructure, including that needed to support the availability of natural gas, in the Commonwealth. • Use energy resources efficiently and facilitate conservation. • Facilitate development of low-cost energy resources located both within and outside the Commonwealth, including development of clean coal resources. The Virginia Energy Plan Page 1 1.1 Executive Summary actions, provide for a diverse portfolio of Chapter 1 energy supplies including traditional and Virginia must overcome market, consumer- alternate energy sources, provide the Executive education, historical energy-cost, public needed infrastructure to deliver policy, and institutional barriers in order Summary conservation services and energy supplies, to meet these energy policies and and provide for focused research, objectives. Overcoming these barriers will continued development, and deployment of new require a mix of public and private energy technologies. investments. Through these efforts, Virginia will increase the role of energy efficiency and conservation, support existing businesses Virginia Energy Plan with reliable low-cost energy supplies, 2017 Goals support new job growth, increase energy- education activities, increase energy • Increase energy independence, assistance to low-income Virginians, and Meeting the goals with an emphasis on conservation increase energy research and develop- of this Plan and and clean fuel technologies, by: ment at our universities and businesses. implementing the • Reducing the rate of growth of Virginians will see lower energy costs in energy policy and energy use by 40 percent. This the short term through energy-efficiency objectives set out in will reverse the projected growth and conservation actions, and have a more secure energy future because of the 2006 energy in per capita energy use and result in a nearly level per capita investments in new energy infrastructure, policy legislation energy use per year. energy research and development, and will require actions • Increasing Virginia's indigenous new energy businesses. by individuals, energy production by 20 percent. The Commonwealth should ensure that businesses, and • Expand consumer energy education these activities are effective in meeting government to overcome barriers to Virginia's energy goals. The Governor's institutions. implementing energy-efficiency Energy Policy Advisory Council, with and conservation actions. assistance from the Department of Mines, Minerals and Energy and other state • Reduce greenhouse gas emissions agencies and institutions, should evaluate by 30 percent by 2025, bringing the energy saved, new supplies of energy emissions back to 2000 levels. generated, and value of investments in • Capitalize on economic develop- energy research and development and ment opportunities through new business development. The results of business expansion and increased the evaluation should be reported to the research and development in Governor and the General Assembly to areas of strength, including ensure accountability of the proposed alternate transportation fuels, energy activities. nuclear technology, coastal energy production, and carbon capture 1.1.1 Supply and Consumption of and storage. Energy in Virginia Virginia's energy needs are met by a combination of in-state production and Meeting the goals of this Plan and imports. Sources