Energy
Wind Energy Updates - Iberdrola Renewables has announced that their 150 turbine, wind energy project is on hold because they have not been able to sign a power purchase agreement with an electric utility. The Desert Wind Energy Project around Perquimans and Pasquotank Counties is on hold indefinitely, but the project remains alive. Iberdrola was hoping to have an agreement in place and start construction before the end of the year to take advantage of an expiring federal grant. Invenergy has proposed a 11,000-acre Pantego wind farm, with 49 turbines near the Pocosin Lakes National Wildlife Refuge in Eastern North Carolina. However, the U.S. Fish & Wildlife Service has made a filing to the Utilities Commission concerning the impact the project would have on migrating birds. Invenergy is currently performing a study during the migratory season to assess potential effects on birds. The U.S. Department of Commerce has funded a study through the Governor's Offshore Wind Economic Development Task Force to investigate economic costs-benefits, necessary policy framework, guidelines to assist developers in project siting, and benefits of creating a non-binding goal of 5,000 megawatts of offshore wind by 2030. The U.S. Bureau of Ocean Energy Management has also formed the Bureau of Ocean Energy Management North Carolina State Task Force to work as an intergovernmental entity between state, local and federal stakeholders. It looks at commercial renewable energy leasing and development on the Outer Continental Shelf off the state's coast and reviews proposed renewable energy projects.
Duke-Progress Merger Update - The proceedings related to the Duke Energy and Progress Energy merger will likely continue well into next year. Recently, the Federal Energy Regulatory Commission (FERC) rejected their latest proposal to address concerns about the merger's impact on wholesale electricity prices. The North Carolina Utilities Commission still must approve the merger as well, but will hold off any decision until all federal issues are resolved.
EPA's Fracking Finding - The U.S. Environmental Protection Agency recently announced that hydraulic fracturing, which involves pumping pressurized water, sand and chemicals underground to open fissures and improve the flow of oil or gas to the surface, could be to blame for causing groundwater pollution. Many states, including North Carolina, are currently evaluating how to regulate fracking. Environmentalist statements highlight the EPA report as a significant development, while the oil and gas industry and a U.S. senator question the validity. The EPA report stated chemical compounds associated with those used in fracking were discovered in the groundwater beneath Pavillion, a community in central Wyoming.
Awarding New Energy Saving Technologies - Three grants have been awarded to North Carolina organizations to implement energy saving practices that will conserve the state's valuable natural resources. USDA's Natural Resource Conservation Service awarded three state-level Conservation Innovation Grants for 2011 through the farm bill's Environmental Quality Incentives Program (EQIP). N.C. State University is receiving two grants through CIG. The first is for a project in Duplin County that implements new technology for heating poultry structures with crop residue. The second is for a project in Beaufort County that pioneers technology to automate water control structures for increased water use efficiency on agricultural drained lands. The third grant was awarded to Mountain Valley RC&D Council of Buncombe, Cleveland and Madison Counties for a project to demonstrate and evaluate the use of solar hot water heating systems for Dairy Farms. NRCS awarded a total of $207,974 between the three grants. CIG is a voluntarily program that helps advance new conservation approaches that enrich environmental quality and enhance natural resources on agricultural production. New and innovative technologies funded through CIG will conserve and promote air quality, biological diversity, energy efficiency, renewable energy, soil quality, water quality, water use efficiency and sequestering carbon. To learn more about CIG and EQIP, and NRCS, visit NRCS on the Web at www.nc.nrcs.usd.gov.
Fueling the Armed Forces - At least 800 gallons of biodiesel has been delivered to U.S. Marine Corps' Camp Lejeune as the first batch of fuel to be supplied under the Fuel the Force program, which is promoting local biofuel production for military use. The biodiesel was produced from canola grown by nearby farmers and then processed at North Carolina State University. For the program to reach its full potential, development of a local oil crushing and biodiesel processing facility is needed.
Wind Energy - Progress Energy has announced it is seeking proposals from wind energy projects producing at least five megawatts; this is the company's first such request focused solely on wind projects. The request is part of the company's effort to comply with the requirements of North Carolina's Renewable Energy and Efficiency Portfolio Standard. Progress Energy stated it prefers facilities located in North Carolina, but others outside the state will be considered. Several large wind energy projects have been announced along the east coast of the state, but they are still in the early planning stages. NCFB staff will continue to monitor the development of alternative energy in the state and region.
Biomass Use for Energy Production — A computer model created by Duke University, in partnership with North Carolina State University, provides a detailed visual representation of how woody biomass could be used to meet renewable energy targets in the South. The tool uses a timber forecasting model developed at N.C. State that runs data from the U.S. Forest Service to provide state-specific results for the Carolinas and Georgia. The results not only estimate the ability to meet renewable energy and fuel targets, but they also estimate everything from the effect on forest carbon to forested acres. This computer model was recently presented to the Renewable Energy Committee of the Environmental Management Commission (EMC). The EMC is still reviewing any possible environmental impacts from the use of biomass to meet renewable energy goals. NCFB staff was given a preview of the model and will continue to monitor the issue. http://www.nicholasinstitute.duke.edu/events/Biomass-Model/
Crop Insurance for Renewables — U.S. Agriculture Secretary Tom Vilsack announced recently that the U.S. Department of Agriculture will seek proposals to study the feasibility of providing crop insurance to producers of biofuel feedstocks, including corn stover, straw and woody biomass.
Proposed Wind Farm - Iberdrola Renewables has filed an application with the NC Utilities Commission for permission to move forward with a proposed 300MW wind farm in Pasquotank and Perquimans counties. The project, filed under the name Atlantic Wind, LLC, would include up to 150 wind turbines spaced over 20,000 acres, if approved. The application for a Certificate of Public Convenience and Necessity from the Utilities Commission is the first of many approvals needed to move forward with the project. If fully constructed, the lease payments to land owners where the turbines will be located could total up to $1 million per year. NCFB staff will continue to follow this project and specifically the application with the Utilities Commission. NCFB policy supports the development of wind energy projects.
E-15 Waiver - The Environmental Protection Agency (EPA) has extended the waiver for the use of gasoline blended with up to 15 percent ethanol (E-15) to model years 2001-2006 cars and light trucks. The agency reached its decision after reviewing the results of tests of E-15 on 2001-2006 engines. The tests were conducted by the U.S. Department of Energy. Previously, EPA granted a similar waiver for 2007 and newer vehicles but delayed action on the 2001-2006 models until additional testing was completed. EPA announced that it will not grant a waiver for the use of E-15 in any motorcycles, heavy-duty vehicles, or non-road engines this year because there is no testing data to support such a waiver. EPA is in the process of approving signage to prevent the use of E-15 in vehicles and small engines that have not been approved. A legal challenge to the original E-15 waiver has yet to be settled. NCFB staff will continue to monitor the legal and regulatory issues related to E-15.