Utah EnergyUtah Energy ENERGYENERGY ADVISORADVISOR’’S ANNUAL REPORT 2009S ANNUAL REPORT 2009

Presented to thePresented to the

UTAH STATE LEGISLATUREUTAH STATE LEGISLATURE

NATURAL RESOURCES, AGRICULTURE & ENVIRONMENT NATURAL RESOURCES, AGRICULTURE & ENVIRONMENT INTERIM COMMITTEE, 10/21/09INTERIM COMMITTEE, 10/21/09

and theand thePUBLIC UTILITIES AND TECHNOLOGY PUBLIC UTILITIES AND TECHNOLOGY

INTERIM COMMITTEE, 11/18/09INTERIM COMMITTEE, 11/18/09

Dianne R. Nielson, Ph.D.Governor’s Energy Advisorhttp://www.energy.utah.gov

ENERGY ADVISOR’S ANNUAL REPORT 2009

OBJECTIVES OF REPORT• Review Utah’s energy resources

production and consumption• Identify actions and challenges to

energy development, extraction, production, refining, and transportation in 2009

• Consider the long-term issues and trends in Utah Energy

UTAH ENERGY GOALS•

AFFORDABLE ENERGY

•

SUSTAINABLE ECONOMY

•

STRENGTHEN ENERGY SECURITY AND INDEPENDENCE

•

REDUCE EMISSIONS

www.geology.utah.gov

www.geology.utah.gov

www.geology.utah.gov

UTILITY-SCALE ELECTRICITY PRODUCTION IN UTAH

2008 Preliminary

Coal Crude OilNatural GasNuclearHydroelectricGeothermalBiomass Wind Solar

Electricity Production 2007Electricity Production 2008Fossil FuelsNatural GasRenewables

www.geology.utah.gov

38,130,000 mWhr29,000 mWhr

7,259,000 mWhr

278 mWhr43 mWhr

7 mWhr19 mWhr

45,373 GWhr46,466 GWhr

82%16%

2%

Coal 82%

Natural Gas 16%

Renewables incl. Hydropower 2%

Utah Electricity Production in 2008 by Fuel Type

Based on data fromwww.geology.utah.gov

Rocky Mountain Power - Pacificorp Electricity Generation Capacity by Fuel Type

March 2006 September 2009

Net megawatts owned, in operation or under construction.

NOAA, 2009

Energy Strategy•• Diversify Energy Portfolio of Renewables and Diversify Energy Portfolio of Renewables and

NonrenewablesNonrenewables•• Improve Energy EfficiencyImprove Energy Efficiency•• Improve Environmental Quality and Reduce Improve Environmental Quality and Reduce

EmissionsEmissions•• Develop Transmission and TransportationDevelop Transmission and Transportation•• Encourage Energy Security and Encourage Energy Security and

IndependenceIndependence•• Promote Economic DevelopmentPromote Economic Development•• Maintain Quality of LifeMaintain Quality of Life

Continue Meeting Energy Production Needs in Utah

• Support Oil Shale Leasing, and joint lead the Unconventional Fuels Task Force with DOE & Other States

• Work to resolve gas development environmental issues in Nine Mile Canyon/West Tavaputs

• Participant on Uintah Basin Oil and Gas partnership (UBOGCG)

• Support transmission and pipeline planning and review in Utah

20% of Utah’s Electricity Generated from Renewable Energy by 2025

• UREZ Phase I & II• Co-chaired WREZ I for WGA• Commissioned study on clean energy green

jobs• Work with SEP & UCE on model ordinances

for renewable energy• Work with EDCUtah and GOED to bring

additional energy development to Utah

Spanish Fork Wind Power Plant

• Spanish Fork City, Utah County. August 2008• 9 Turbines produce: 18.9 mW capacity• School district receives $1.267 million in first 20 years of the

project. $112,000 property tax payments.• 12 long term jobs, additional jobs during construction• Construction Cost: $4.78 million• Annual emission offsets: 115,000 lbs. CO2; 88,000 lbs. SO2;

241,000 lbs. NOx; • Estimated power for 6,100 average homes• Wind farm site still used for culinary water source and gravel mining• Utah Senate District 27, Utah House District 66

Photo courtesy Rocky Mountain Power

Milford Wind Corridor

• Beaver and Millard Counties. Construction Phase 2009• 203 mW plant, with up to 4 phases possible• Estimated $2.5 million property tax payments annually for 20 years• 10-15 ongoing jobs; 225 on-site jobs during construction• Estimated $23 million subcontracts for UT companies • Annual emission offsets: 220,000 tons CO2; 389 tons NOX; 303

tons SO2• Milford Wind estimated power: 44,000 homes with 1st phase • Wind farms require almost no water, and emit no mercury• Located in an identified Utah Renewable Energy Zone (UREZ)• Utah Senator District 28, Utah House Districts 68 & 73

Photo courtesy of Rob Adams

Blundell Geothermal Plant

• Milford, Beaver County. July 1984• 34 mW Capacity• Rocky Mountain Power clean energy plant• 22 permanent jobs• Annual emission offsets: 204,000 T CO2• Serves electricity needs of more than 25,000 average residential

customers• First geothermal power plant in the U.S. outside of CA• Utah Senate District 28, Utah House District 73

Photo courtesy Rocky Mountain Power

Orrin G. Hatch Thermo Springs

• Beaver County. November 2008, built in 6 months.• 10 mW capacity in 2008; up to 235 mW future development• Used local contractors, engineering, and labor. • 6 ongoing jobs; 70 construction jobs• Construction and development costs: $58 million• Annual emission offsets: 60,000 tons CO2• Raser estimated power at full development: 267,000 homes• Raser’s technology enables production at lower temperatures and

shallow sites• Utah Senate District 28, Utah House District 73

Photo courtesy of Raser Technologies

2009 Blue Sky Funded Community-based Projects

• Three Peaks Elementary School, Iron County

• 7.3 kW Wind Project• UT Senate District 28, UT

House District 72

• Ecker Hill Middle School, Summit County

• 1.7 kW Solar Project• UT Senate District 26, UT

House District 25

Blue Sky Funded Community-based Projects

•East High School, Salt Lake County

•1.7 kW Solar project

•UT Senate District 7, UT House District 25

•Hogle Zoo, Salt Lake County

•10.8 kW Solar Project

•UT Senate District 7, UT House District 28

•Clark Planetarium, Salt Lake County

•25 kW Solar Project, Educational Module Shown

•UT Senate District 2, UT House District 24

20% Improvement in Energy Efficiency by 2015

• Established Public/Private Partnership UBEES (Utah Building Energy Efficiency Strategies)

• Energy Efficiency in the State Vehicle Fleet• Co-developed, with DAS, Think!Energy Utah,

state employee energy efficiency• Awarded NGA Policy Academy Energy

Efficiency for developing energy strategies for buildings

• Promote and fund Energy Code Training for building inspectors

State of Utah Fleet

• Individual agencies right-sized 116 vehicles over the past 2 years.

• State vehicles traveled over 2.8 million miles less in fiscal year 2009 than in fiscal year 2007. This is reduction of nearly 3.5%.

• The “Think! Energy Utah” program is a self awareness challenge to all state employees to make an impact in our energy efficiency in the following areas:– Our workplaces– Our transportation– Our homes

Meet PM2.5 and Ozone Standards and Reduce Greenhouse Gases Emissions to

2005 Level by 2020

• Reduce emissions from transportation• Implement CNG I-15 Corridor Plan and work

with EPA on CNG conversions• Work with USTAR on Carbon Capture and

Sequestration• Encourage Landfill Gas Utilization

Legend:

I-15 CNG Corridor

Gal

lons

of C

NG

Months (Jan 2007-August 2009)

Gallons of CNG dispensed at Utah’s public fueling stations

Graph provided by: Questar Gas

• Funding goes towards–10 new CNG stations with various owners,

including the state of Utah–6 CNG Upgrades (State of Utah)–3 Biodiesel–3 L/CNG (CH4 Energy and UPS (2))–Questar Gas 18 CNG station upgrades–Questar Gas 6 new CNG stations–Incremental cost reduction for alternative

fueled vehicles

Utah’s DOE FY 09 Clean Cities Grant

• The state fuel network has increased the amount of alternative fuels available to our fleet.

• Use of biodiesel alone is up nearly tenfold from 2007.

• Alternative fuels along with reductions in miles and fuel have resulted in a CO2 reduction of 3,700 metric tons, equal to 672 vehicles off the road.

State of Utah Fleet

Idle Free Awareness Week

• Governor Herbert, Mayor Becker, Mayor Coroon, Mayor Billings, and Mayor Godfrey all signed the Idle Free Awareness Week joint declaration on September 21, 2009 at Mountain View Elementary School.

Image from: http://www.idlefree.utah.gov/

Idle Free Awareness Week

• Every citizen can similarly improve our state’s air quality if they turn off their vehicles whenever they are going to idle more than 10 seconds.

School Bus Drivers Achievements

• In the 2008 school year 3,000 school bus drivers in Utah reduced their combined idling time by 21 minutes per day per bus.

• This produced an air quality benefit of preventing 5,000 lbs. of particulate matter emissions and improved our state’s air quality.

Clear the Air Challenge

19,412 Total Trips Eliminated =

1,085,286 Miles Saved =

$629,466 Saved =

1,860,495 Pounds of Emissions Reduced

cleartheairchallenge.org cleartheairchallenge.org

Other Accomplishments

• Quarterly Energy Forums on traditional and renewable energy

• Fund and Coordinate with the Energy Emergency Planner

• Work on regional transmission boards• Serve on various advisory boards such as:

Envision Utah, Industrial Advisory Board, and Institute for Clean and Secure Energy.

• Work on energy with rural development representatives

Utah Energy

UTAH ENERGY CHALLENGES

•

AFFORDABLE ENERGY

•

SUSTAINABLE ECONOMY

•

STRENGTHEN ENERGY SECURITY AND INDEPENDENCE

•

REDUCE EMISSIONS

Additional Information

The following information provides more details on energyresources and energy issues in Utah.

Utah Energy PolicyUtah will: • Have adequate, reliable, affordable, sustainable, and

clean energy resources;• Promote development of nonrenewable resources;• Promote development of renewable resources;• Promote study of nuclear power;• Promote development of resources and infrastructure

reducing dependence on international energy sources;• Pursue energy conservation, energy efficiency and

environmental quality;• Streamline regulatory processes;• Encourage expedited federal action; and• Provide an environment for stable consumer prices.

UTAH ENERGY POLICY UCA 63M-4-301

Energy Advisor’s DutiesThe Governor's Energy Advisor shall:• Advise the governor on energy-related matters;• Review and propose updates to the state's energy policy;• Promote as necessary:

(i) Development of cost-effective energy resources both renewable and nonrenewable; and (ii) Educational programs, including programs supporting conservation and energy efficiency measures;

• Coordinate across state agencies to assure consistency with state energy policy, including: (i) State Energy Program’s federal assistance for energy-related projects for state agencies and members of the public; (ii) Division of Homeland Security’s energy emergency powers; (iii) Energy emergency plan annual review and the maintenance; (iv) Low-income consumers' access to energy services;

• Coordinate with the Division of Homeland Security to test energy emergency plan and share information among state agencies, political subdivisions, public utilities and other energy suppliers, and other relevant public sector persons;

Energy Advisor’s Duties (cont.)The Governor's Energy Advisor shall:• Coordinate with requisite state agencies to study:

(i) Creation of a centralized state repository for energy-related information; (ii) Methods for streamlining state review and approval processes for energy-related projects; and (iii) Development of multistate energy transmission and transportation infrastructure;

• Coordinate energy-related regulatory processes within the state;• Compile and make available information about federal, state, and

local approval requirements for energy-related projects;• Act as the state's advocate before federal and local authorities for

energy-related infrastructure projects or coordinate with the appropriate state agency; and

• Help promote the Division of Facilities Construction and Management's energy efficiency improvements in state buildings.

COAL PRODUCTION IN UTAHProduction – mines in Carbon, Emery, and Sevier Counties*

2007 24,288 tsT (10 mines)2008 24,275 tsT (9 mines)

Price 2008 $26.39

Coal Use• Electric Utility• Industrial• Residential/Commercial

Key Issues• Impacts of carbon reduction and diversified electricity generation• Operational carbon capture and sequestration with electricity generation

(Greenhouse Gas reduction)• Other Coal to Energy technologies (eg., coal-to-liquids)• Mine safety

*Utah Geological Survey http://geology.utah.gov

CRUDE OIL CRUDE OIL PRODUCTION IN UTAHIN UTAHProduction

2007 19.7 million barrels2008 22.0 million barrels

Drilling PermitsOil and Gas 2007 permits 1552

2008 1359

Crude Oil UseTransportation FuelIndustrial

Key Issues• Price• Exploration/Production Air Pollution • Reduction of Greenhouse Gases• Energy security• New pipeline

2008 Economic Report to the GovernorUtah Geological Survey www.geology.utah.gov

OIL SHALE OIL SHALE AND TAR SANDS IN TAR SANDS IN UTAHResource – Oil Shale Potential Economic Resource*

77 billion barrels

UtilizationTransportation FuelIndustrial

Key Issues• Moratorium on BLM review• Leasing • Baseline Air Quality Study• Reduction in Air Pollutants• Reduction of Greenhouse Gases• Energy Security• Unconventional Fuels Reports – completed• Production/Refining Technology

* Utah Geological Survey www.geology.utah.gov

NATURAL GAS PRODUCTION IN UTAH

ProductionNatural Gas 396.8 billion cubic feet (bcf)Coalbed Methane 76.7 bcf

Natural Gas UtilizationElectric UtilityTransportationIndustrialResidental/Commercial Heating

Key Issues• Price• Reduction in Air Pollutants• Reduction of Greenhouse Gases• Energy security• Pipeline Right-of-Ways

2008 Economic Report to the GovernorUtah Geological Survey www.geology.utah.gov

RENEWABLE ENERGY RESOURCE PRODUCTION IN UTAH

Production2008 2% of electricity generation

Renewables UseElectric UtilityDistributed Energy UseGround Source Heating and Cooling

Key Issues• Price• Identifying resources and concentrations of renewables

to meet electricity demand in Utah and exported power• Transmission • Energy security 2008 Economic Report to the Governor

Utah Geological Survey www.geology.utah.gov

About 87 percent of U.S. greenhouse gas emissions come from energy production and use, as shown in the left pie chart. The right pie chart breaks down these emissions by greenhouse gas. (NOAA, 2009)

GREENHOUSE GAS EMISSIONS

UTAH GREENHOUSE GAS EMISSIONS

Nicholas Institute, 2009

Current Actions – the following are not dependent on Electricity Sector GHG C/T or Regulation; all supported with state and federal funds and programs

Energy Efficiency Energy ConservationRenewables Clean Fossil & NuclearClean, Efficient Vehicles Alternative Vehicle FuelsEnergy Building Codes New InfrastructureTrained Workforce Efficient PermittingIncentives and Tax Credits Loan GuaranteesRenewable Portfolio Standard Public ParticipationCO2 Sequester/Commercialize Private Sector InitiativesNew Transmission and Access State InitiativesMaintain Air Quality Standards Maintain Water StandardsAdaptation EnvisioningLeadership Collaboration

Legend:

I-15 CNG Corridor

• Partners’ contributions– Cost share from partnership

• Approximately 28.5% of funding coming from federal funds ($14.9 million) and 71.5% Utah’s partners match

• Total match from UT partners: $37,458,715– 365 new and retained jobs – Purchase of 678 new alternative fueled vehicles

Utah’s DOE FY 09 Clean Cities Grant

• Benefits to Utah–Displacement of approximately 3.9 million

gallons of petroleum annually–Emission reduction of 7,036,836 pounds of

CO2 equivalent, based upon DOE calculation–A pro-active second Clean Cities Coalition

office based in Washington County

Utah’s DOE FY 09 Clean Cities Grant