GEO RPS Testimony in 2007 Ohio General Assembly

William A. Spratley, Executive Director, Green Energy Ohio
Testimony on S.B. 221
Before the Ohio Senate Energy & Public Utilities Committee
October 11, 2007
[Testimony 6-page .pdf] [Attachment A 4-page .pdf]
[ASES MISI Bezdek Jobs Study Summary 40-page .pdf]

See Related GEO Testimony February 27, 2008

Mr. Chairman, Members of the Committee, I am Bill Spratley, Executive Director of Green Energy Ohio (GEO). As a 7 year-old, statewide non-profit organization, we are dedicated to promoting economically and environmentally sustainable energy policies and practices in Ohio. GEO is leading efforts to transform a grassroots movement[1] into a new green energy industry addressing Ohio's need for cleaner energy and new "green collar" jobs.[2]

Greening Ohio's Energy. In support of S.B. 221 renewable energy provisions, I would like to briefly share with you just a few of the lessons learned by GEO from our work across Ohio as an educational force for developing renewable energy and energy efficiency. I also will highlight the major national and Ohio jobs study initially released this July [3]. GEO's main policy recommendations to grow green collar jobs is set forth in S.B. 221 as a Renewable Portfolio Standard (RPS) as part of the Advanced Energy Portfolio Standard (AEPS) [4] proposed by Governor Ted Strickland.[5]

As Ohio's chapter of the American Solar Energy Society (ASES), GEO's signature event each October is the Ohio Solar Tour of homes, businesses and public places. We were pleased to host several Ohio legislators on our 29 guided tours[6] where 5,000 site visits were made to solar, wind, biomass and green building installations on our 5^th statewide tour event this past weekend.

LESSONS LEARNED: The number of clean energy sites are growing across Ohio using limited state and federal financial incentives [7] Clean energy installations are getting larger [8]. More serious interest by Ohioans is evidenced by an increasing clean energy market demand.[9].

Ohio Solar Energy. Green Energy Ohio is working on public outreach with the new Wright Center for Photovoltaics Innovation and Commercialization (PVIC) to advance the use of solar power in collaboration with University of Toledo, Bowling Green State University and Ohio State University. This state economic development initiative builds on the research, development and commercial success of the First Solar plant at Perrysburg. Selling nearly all of its output to Germany, First Solar's Perrysburg plant increased manufacturing capacity fourfold - from 6 Megawatts (MW) in 2004 to 25MW in 2005. In 2006 First Solar easily had the largest production of PV modules in the U.S. with 60 MW. Uni-Solar in Michigan was third with 28 MW. Together, both accounted for 45% of U.S. PV production.[10] Lowering the cost of solar electricity is a key goal for First Solar and other start-up PV firms using thin-film technology developed in Northwest Ohio. [11]

LESSONS LEARNED: Ohio is already a center for photovoltaic manufacturing with the most productive plant (First Solar) of the 31 plants in the U.S. in 2006. Ohio's solar electric industry is poised to expand and compete with traditional electric power producers. Cost reductions will spur an Ohio (and domestic U.S. market).

Ohio Wind Energy. Green Energy Ohio, working with the Ohio Office of Energy Efficiency (OEE) and variety of local partners, has helped focus the wind energy industry on the Buckeye State.

In 2001 the wind resource test tower installed at Bowling Green by GEO volunteers assisted the municipal utility in developing the first commercial, utility-scale wind turbines - two in 2003 and two more in 2004.[12] Today an enlarged wind farm is now proposed for Bowling Green.[13]
During 2007 GEO has taken wind test data from 8 other towers across the state in order to verify and improve the Ohio Wind Resource Map introduced in 2004. Stakeholders involved in this wind testing include municipal utilities at Bryan, Wapakoneta and Cuyahoga Falls, industrial plants owned by Honda and Iten Industries.[14] NASA Glenn Research Center, and Kenston High School.
Deploying the highest elevation wind test in any of Great Lakes on the Cleveland Water Crib, 3.5 miles off the downtown lakeshore in August 2005[15]. GEO's pioneering effort was followed by a County, City and Business Community effort to explore the feasibility of America's first Great Lakes wind farm.[16]
Ohio's first and second wind power conferences ever were organized by GEO for the OEE in 2002 and 2004 - bringing the wind energy industry to Ohio[17].
The Ohio Wind Working Group (OWWG) was organized by GEO for OEE in September 2003 and GEO led the first 15 meetings into 2006.[18] Key OWWG meetings discussed the leading wind manufacturing potential of Ohio[19] and potential for off-shore wind development in Lake Erie[20].
A review of the "queues" for proposed power plants seeking access to the two power grids serving Ohio shows 2,400 MegaWatts of wind power planned for siting in Ohio today.[21]
A 2007 study by the National Renewable Energy Laboratory shows that Ohio could harness wind power to provide at least 10% of its total electric consumption.[22]

LESSONS LEARNED: Ohio wind power is poised to expand on land. In addition to the benefits to landowners, Ohio has the manufacturing base to attract more production of wind industry component parts. As exploration of the state's wind resource continues, utility-scale wind development is beginning and could blossom, depending on new incentives, like an RPS which has led wind development in most other states.

Green Collar Jobs for Ohio. I was privileged to serve as chair of the national organizing committee for SOLAR 2007, the 36^th National Solar Conference held in Cleveland on July 7-12, 2007, attracting 160 trade show exhibitors and 5,000 public day and conference participants. Under the theme: Sustainable Energy Puts America to Work, attachment A is my recent SOLAR TODAY article "Green Jobs U.S.A." summarizing the conference speakers from business, labor, education, government and non-profits focusing on job creation from clean energy. This major national conference helps to put Ohio on the map for market growth.

Economic and Jobs Impacts of the Renewable and Energy Efficiency Industries: U.S. and Ohio. A first-ever study defining America's and Ohio's energy efficiency and renewable energy industries was released at the concluding SOLAR 2007 plenary session. A copy of economist Roger Bezdek's summary of the jobs report from July 12 is provided to the Committee - See http://www.ases.org/jobs_report.pdf. The fully narrated version of the report will be issued in early November by the American Solar Energy Association.

LESSONS LEARNED: These new study findings showing the job creation potential from Ohio investment in clean energy illustrates why you must act now to enact an RPS, such as the 12.5% renewable power share by 2025 as proposed in SB 221.

Conclusion. The beneficial economics on an Ohio RPS are supported by the recent Bezdek jobs study. This jobs study can also be coupled to the economic analysis of how an RPS would impact Ohio utility rates. A recent study commissioned by The Cleveland Foundation shows a de minimus wholesale rate impact from an Ohio RPS.[23]

Green Energy Ohio supports a robust renewable portfolio standard in SB 221. Implementing an effective RPS will mean a cleaner environment, new jobs and industry for a more sustainable energy economy to improve the quality of life for all Ohioans.
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[Testimony 6-page .pdf] [Attachment A 4-page .pdf]
[ASES MISI Bezdek Jobs Study Summary 40-page .pdf]
Other Parties' Testimony on Oct. 11 for an Ohio RPS: Consumers' Counsel Environment Ohio
Ohio Environmental Council
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FOOTNOTES

[1] "Green Energy Ohio - Growing Clean Energy Opportunities from the Grassroots Up," by Christina Panoska and William Spratley, July 14, 2004 American Solar Energy Society Technical Session on "PV Market NGO Programs," SOLAR 2004, Portland, Oregon. www.greenenergyohio.org/page.cfm?pageId=463

[2] "Project Green: The Power of the Sun," Newsweek, October 8. 2007. "Lately Toledo has established a growing national reputation as a hot spot for firms developing solar panels. Why Toledo? Glass is a key component in solar technology, and the University of Toledo has been doing hard-core solar-cell research for two decades. Local economic-development officials recently launched a $22 million venture fund to help launch more start-ups. The payoff from this combination of forces: according to the local Regional Growth Partnership, the Toledo area already has nearly 6,000 people employed in the solar industry." www.msnbc.msn.com/id/21047656/site/newsweek/

Also, in this week's news, see related industry story: "Solar's Day In The Sun: The big hurdle has been finding a technology that can match the low cost of fossil fuel. John O'Donnell thinks he has that licked," Business Week, October 15, 2007. www.businessweek.com/magazine/content/07_42/b4054053.htm?campaign_id=rss_daily

[3] CNBC Reports on "Green Collar" Jobs, October 4, 2007.
www.cnbc/id/15840232?video=544132178

[4] Green Energy Ohio Policy Recommendations, adopted by GEO Board of Directors, August 23, 2006, include under Electric Power Generation: "We recommend both national and state energy policies be adopted to stimulate development of renewable energy sources such as wind, solar, fuel cell, biomass, hydro and other clean technologies. This initiative should stimulate the development of a renewable portfolio standard (RPS) and/or alternative energy portfolio standard (AEPS), providing some of Ohio's energy needs with renewable resources of energy." www.greenenergyohio.org/page.cfm?pageID=956

[5] Governor Strickland Proposes Energy, Jobs and Progress Plan, August 29, 2007. http://governor.ohio.gov/News/August2007/tabid/338/Default.aspx

[6] Green Energy Ohio & American Solar Energy Society 2007 Ohio Solar Tour. Encompassing sustainable features beyond solar energy, the statewide event featured self-guided, guided or open house tours in all corners of the state and highlights a growing list of over 200 sites with solar, wind, biomass, green design and energy-saving technologies and more. GEO produces an Ohio Renewable Energy Resource Magazine featuring case studies on renewable energy applications, a primer on the Ohio Solar Tour, and a directory of professionals & incentives to make clean energy work for you. See local tour guidebooks at: www.greenenergyohio.org/page.cfm?pageID=989

[7] New Ohio clean energy installations have received financial incentives from Ohio Advanced Energy/Energy Loan Fund grants and loans, Ohio Air Quality Development Authority financing, Net Metering/Simplified Interconnection, Conversion Facilities Tax Exemption, Wind Energy Production Credit along with Federal Solar Tax Credit and Farm Bill for Renewable Energy Systems and Energy Efficiency Improvements Grants and Guaranteed Loans. See www.greenenergyohio.org/page.cfm?pageID=300

[8] "Solar Heats Up in Ohio," Cleveland Plain Dealer, July 8, 2007. "From college campuses to professional baseball stadiums, solar panels are popping up on buildings around Ohio." www.greenenergyohio.org/page.cfm?pageID=1377 Also, see: "7.8 Million Federal Program: Wind, Solar to Help Fuel 2 National Guard Bases," July 24, 2007 Toledo Blade. A 1-MegaWatt solar array was announced for the Ohio Air National Guard's 180th Fighter Wing, based at Toledo Express Airport, by Congresswoman Marcy Kaptur - a solar array as large as all grid-connected photovoltaic in Ohio combined. www.greenenergyohio.org/page.cfm?pageID=1405

[9] "Stops in NW Ohio on State Tour Show Local 'Green' Spots: Innovations Draw Attention to Region," Toledo Blade, October 7, 2007. http://toledoblade.com/apps/pbcs.dll/article?AID=/20071007/NEWS06/710070369

Also, see: "Region Not Warmed Up To Solar: Experts Think We're About To See A Surge," Cincinnati Enquirer, October 7, 2007. See 7 other related stories in this Sunday edition, following Saturday Solar Tour. http://news.enquirer.com/apps/pbcs.dll/article?AID=/20071007/NEWS01/710070380

Also, see: "Third Sun's Revenue Line Is Rising With Interest In Renewable Energy," Business First of Columbus, September 7, 2007. Third Sun has already passed the $1 million revenue mark this year, a first for the seven-year-old company, Michelle Greenfield said. She expects year-end revenue to be up more than 125 percent from last year. By combining tax credits, grants and accelerated depreciation allowances on equipment, businesses can recover their initial investments in solar power installations in six to 10 years with the savings from generating their power, she said. Solar and wind power can also help businesses reduce their exposure to electric rate increases, she said. That is timely in Ohio because rate stabilization plans that have helped prevent major price spikes from investor-owned power companies are due to expire at the end of 2008. www.bizjournals.com/columbus/stories/2007/09/10/story9.html?ana=from_rss

[10] "Solar Electricity: Working in Ohio," Professor Alvin Compaan, University of Toledo, GEO NW Ohio Workshop: Sustainable Energy for Today's Business, March 22, 2007, Maumee, Ohio. Prof. Compaan, leading solar research scientist and owner of a solar home that also charges his electric truck, concludes his in-depth analysis that PV in the Big Picture shows:

Steadily improving PV efficiencies

Production Increasing 40% per year

Price reductions follow 80% learning curve

Grid-connected applications now dominate

Market incentives have stimulated growth (Japan, Germany, some U.S. states)

PV can become a major source of U.S. power

NW Ohio/SE Michigan is poised to be the world leader in PV production!

PV can become a major job-creator in Ohio!

www.greenenergyohio.org/page.cfm?pageID=1176

[11] "Alternatives for Electricity: Analysts Give First Solar Edge in Race for Cost Efficiency," Toledo Blade, July 15, 2007. First Solar prices to consumers are projected to be competitive with traditional electric providers within 5 years: "The company hopes to sell panels at prices that will allow users to offer retail energy buyers power prices of 8 to 11 cents a kilowatt hour in three years, Michael Ahearn, chief executive, said in an interview at a recent industry conference. That would make solar competitive with traditional power, he said. Utilities can buy power now from low-cost coal-fired plants for about 4 cents per kilowatt hour, and sell it to customers for about 12 cents."

[12] Ohio Utility-Scale Wind. GEO web page: www.greenenergyohio.org/page.cfm?pageId=103

[13] More Wind Turbines Near BG Planned, Bowling Green Sentinel-Tribune, May 11, 2007. Wind generating capacity nearly seven times that in place at the Wood County Landfill could be a reality near Bowling Green by the end of 2009

[14] Wind Power For Green Factories in Ohio, GEO News Release, December 27, 2006. Honda of America, Mfg. (Honda) and Iten Industries partnered with Green Energy Ohio (GEO) in December 2006 to begin wind studies to evaluate the potential of installing wind turbines for power generation at manufacturing plants located in Logan and Ashtabula counties.

[15] Cleveland Crib Wind Monitoring, GEO web page: www.greenenergyohio.org/page.cfm?pageID=700

In July and August 2005, Green Energy Ohio and its project partners and contractors installed real-time wind assessment and weather data collection equipment on Lake Erie through installation of a two section, 125-foot, 6,000 pound tower on the 50-foot tall Cleveland water intake crib.

[16] Great Lakes Wind Energy Center: Building the U.S. Offshore Wind Industry. EarthWatch Ohio article by Richard Stuebi - Offshore wind - the installation of wind turbines in a body of water to capture consistently higher winds - is not a new phenomenon. In Europe, at least 16 offshore wind farms are in operation, employing over 300 turbines with aggregate rated capacity of nearly 600 megawatts. Cuyahoga County civic leaders are promoting a Great Lakes Wind Energy Center (GLWEC) in Lake Erie, entailing up to ten turbines a few miles from downtown Cleveland. www.greenenergyohio.org/page.cfm?pageID=1505

[17] Ohio Wind Power Conferences, GEO web page: www.greenenergyohio.org/page.cfm?pageId=97

Attended by over 300 participants, the November 18-19, 2002 First Ohio Wind Power Conference focused on small-scale wind, including dedication of a small wind turbine at Glacier Ridge Metro Park near Dublin, Ohio and issuance of GEO?s extensive Ohio Wind Power Toolkit. The November 9-10, 2004 Second Ohio Wind Power Conference featured 30, mostly utility-scale wind industry speakers, and 17 exhibitors in downtown Cleveland.

[18] The GEO-led Ohio Wind Working Group received the U.S. Dept. of Energy Wind Powering America's National Recognition Award, 4th Annual State Wind Summit on May 19, 2005 at Evergreen, Colorado. See Wind Powering Ohio by Bill Spratley, Cleveland OWWG Meeting, June 24, 2007. www.greenenergyohio.org/page.cfm?pageID=689 Also, see OWWG web site: www.OhioWind.org

[19] Renewable Energy Policy Project (REPP) Report that: Ohio's opportunity for wind industry manufacturing jobs is second only to California. Up to 12,000 new jobs could be created in Ohio, one of the states hardest hit by manufacturing job losses. www.repp.org

[20] Ohio's Offshore Wind Energy Development Potential: A Preliminary Feasibility Study, by Bruce Bailey, AWS Truewind, OWWG Meeting, June 24, 2005, commissioned by The Cleveland Foundation.

www.greenenergyohio.org/page.cfm?pageId=709

[21] Midwest System Operator (MISO) listed 1,469 MW of proposed Ohio wind plants. http://www.midwestmarket.org/publish/Document/2a74f7_108e84afbec_-74050a48324a/Queue_Active&Done.htm?action=download&_property=AttachmentPennsylvania-Jersey-Maryland (PJM) listed 931 MW of proposed Ohio wind plants.
https://www.pjm.com/planning/project-queues/queue-gen-active.jsp