Looking across the country, state governments have begun to buckle down and support clean energy and energy efficiency. They realize the threat of pollution on public health, the seriousness of climate change, and the danger represented by our reliance on foreign energy imports. There are plenty of policies a state government can adopt to encourage clean energy and reduce our reliance on fossil fuels. From subsidizing costs of green buildings, to minimum standards for clean energy production, to tax credits and incentives for clean energy and alternative fuels, to sales and property tax exemptions for clean energy and energy conservation projects as well as state-funded clean energy research programs.
The number of states that have taken these steps continues to grow each and every year. But for some reason, Virginia has failed to follow the trend.
For example:
15 states and Washington D.C. have a public benefits or system benefits fund/charge that collects utility sales and uses them to fund alternative energy projects.
Not Virginia.
23 states and Washington D.C. have a Renewable Portfolio Standard (RPS) that requires its utilities to provide a minimum percentage of their retail power sales through clean renewable resources*.
Not Virginia.
23 states have a statewide property tax exemption for renewable energy and/or energy efficiency projects.
Not Virginia**.
25 states have some type of corporate or production tax incentive that applies to clean energy technologies and/or energy efficiency.
Not Virginia.
The Virginia Division of Energy at the Department of Mines, Minerals, and Energy is the lead agency for clean energy and energy conservation issues in the Commonwealth of Virginia. However, their role has been providing mostly guidance and information on clean energy technologies, including how to apply for federal grants. The only state money offered of any significance is a lease financing program for energy efficiency projects in state facilities, which is a loan that requires repayments over a maximum 7-year time period. The Virginia government does not offer any incentives for clean energy or energy efficiency development or production, except for the Solar Manufacturing Incentive Grant (SMIG). However, the SMIG is only designed to encourage companies to manufacture solar panels in-state. These companies receive no incentive for installing them in-state, and are more likely to export them to somewhere where there is demand, like Western Europe. In fact, two foreign companies took advantage of this incentive since its enactment in 1995, one of which has closed down.
Renewable Energy/Energy Efficiency
Speaking as a clean energy policy expert, it is clear that when investors look at the lack of incentives offered in Virginia they are more likely to look elsewhere and instead invest in its neighbors.
They may invest in Washington D.C. where energy conservation has become a policy priority. While Washington D.C. is not able to build large renewable energy plants within its borders, they offer plenty of tax credits and rebates for energy conservation technology. In fact, the new baseball stadium is planned to be one of the most energy-efficient stadiums in the United States.
They may invest in Maryland where the state government has a clean energy production tax credit that supports up to $25 million annually for clean energy projects. Maryland also offers a generous tax credit for businesses and residencies for energy efficiency as well as a variety of rebates for solar technologies and energy-efficient installations.
They may invest in North Carolina where a renewable energy project can receive a corporate tax credit of up to $2.5 million and residential solar projects can receive up to $10,500. Developers of solar projects can receive a 100% property tax exemption and renewable energy power plants can receive a generous production subsidy for the energy the plant produces. If they want a loan for energy efficiency projects, up to $500 thousand is available through the Energy Improvement Loan Program (EILP) for North Carolina businesses, local governments, public schools and nonprofit organizations.
They may even invest in coal-friendly West Virginia which offers some generous incentives for developers to take advantage of its wind resources. While Virginia has no commercial wind farms, West Virginia has 66 megawatts (MW) of wind energy online and 300 MW proposed (enough energy to provide electricity for 100 thousand households). West Virginia also provides a grant program to improve lighting systems in state buildings, schools, and hospitals.
Alternative fuels and fuel efficiency
As for alternative fuels, Virginia offers a few incentives including a small bio-fuels grant, and a small job creation tax credit worth $700 per full-time employee. There are also some acquisition requirements for state fleets, and some support to local governments and schools for using alternative fuels.
However, Virginia still lags behind most of its neighbors in these policies. Virginian hybrid owners do not have as many perks as hybrid owners in Washington D.C. and Maryland. Washington D.C., Maryland, and North Carolina all have greater requirements for the acquisition of alternative-fuel vehicles by state fleets, with additional emphasis on fuel efficiency in North Carolina. North Carolina has a plethora of tax credits for alternative fuel production, and for re-fueling infrastructure. They also provide grants, tax exemptions, and dealer credits and they have an established state fund to support alternative fuel technologies. For alternative fuel production incentives, Virginia is behind not only North Carolina, but even Maryland, which has far less an agricultural base for alternative fuel development. Virginia is only slightly ahead of West Virginia is its package of incentives for alternative fuels.
This is a non-partisan issue that benefits everyone
People forget that it was two Republican Presidents that responded to the energy crisis of the 1970s: Richard Nixon and Gerald Ford. Democrat Jimmy Carter followed them with prescient policies designed to reduce our reliance on fossil fuels and support clean energy. During this time, government investment in clean energy technologies was at all time highs. Thousands of megawatts of renewable energy plants were constructed while appliance standards greatly increased energy efficiency. As for oil dependence, we cut oil use 17% from 1977 to 1985 while our Gross Domestic Product (GDP) grew 27%. In these eight years, oil imports fell by 50%, and oil imports from the Persian Gulf fell by 87%. Achieving this was done through making committed changes in our technology and fuel efficiency.
Unfortunately, as fossil-fuel prices declined, we got lazy. Today, the United States represents 5% of the earthGÇÖs population but uses 25% of it oil, and emits 25% of its greenhouse gases. Every state that acts to counter this energy glut is making a good investment. Virginia is clearly not doing enough. Virginia utilities generate less than 1% of their electric power from non-hydro-electric renewable energy sources (all biomass and wood-waste). Virginia is an energy glut. Ranked 12th in U.S. population, we are ranked 11th in energy consumption.
Sure we can talk to the GovernorGÇÖs office, but Governor Kaine already supports clean energy incentives. He just canGÇÖt implement them alone. He needs the House of Delegates and the Senate. However, the Republican leadership in these legislative bodies has refused to support these incentives. If we really want a comprehensive energy policy in Virginia, we will have to throw them out in November 2007 and replace them with someone who takes clean air, climate change, and energy independence seriously. Raising Kaine will keep you posted on how to do just that!
Sources
Alternative fuels state policies
Database of State Incentives for Renewables & Efficiency
Virginia Energy Programs
Energy Information Agency GÇô U.S. Department of Energy sources
Virginia energy statistics
Virginia renewable energy statistics
*This does not include large hydroelectric dams.
**Virginia gives local communities an option to offer a property tax exemption, but does not require them.
Oh hell, forget who's more "south" - this issue is way beyond geography. Plain and simple, Virginia's got more flat earthers than it should have. I was particularly dismayed to find one of them embedded in the Fairfax government. Arlington is moving forward with clean buildings but Fairfax still needs more studies! We're turning blue in NOVA, but sadly we've got a way to go...
You have given us all something to work with.
Don't know if you saw the diary re the OPED that I had in the Post (Fairfax) re the Dominion Virgina Power line (http://www.raisingka...). Will likely be of interest if not.
Now, to a certain extent, we can go a long way without necessarily the "incentives" (as much as I want them).
* Virginia could institute a bond program for energy efficiency and renewable energy (see www.votesolar.org)
* The Commonwealth could mandate building codes along the lines of LEED standards for offices/commercial and drive upwards energy related standards for homes
* Mandate, a la Brooklyn (parts of), that every new structure be able to generate X% (perhaps 5-10 percent) of its own power requirements (perhaps 5 percent if solar/wind and 10% if CHP and 15-20% if generator)
* Require all new roofing on government (then private) be white reflective roofing
And, so on ... we can go a long way without the tax (and other) incentives, even though I would like them to exist. For example, tax deductibility on Federal/State levels for additional costs for buying green power would be a nice thing along with additional incentives for buying solar power (water or electricity) would be great.
Now, by the way, you shouldn't forget, there are incentives in VA -- VA jurisdictions have the power to exempt solar installations from property taxes. ... !!! (My response: "So, if I get a gas water heater, that would raise my property taxes as opposed to a solar hot water heater???)
Very nice article ! Lots of great information and good political analysis, too.
Texas, for example, is a leader in renewable energy projects, particularly on wind energy. TEXAS, FOR HEAVEN'S SAKE!
To paraphrase Sinatra, if they can make it there, they can make it anywhere. What are we waiting for?
There are 2 classes of Bio Solids, Class A and Class B. Other states allow Class B to be spread, but will not allow Class B to be spread on there farm lands. So what do they do, they hire a private firm to ship it to VA for FREE. We all know nothing is free. There is always a price to pay.
Recently the Spinach E-Coli out break was traced to human waste in an irrigation system. It will be years before we the public can find out what that source was. Was it the speading of Bio Solids?
The courts have ruled that states cannot stop the spreading of Bio Solids, but we can enact laws for our own testing and grades for spreading.
So far I have written letters to the Governor, Sen. Deeds and Del. Abbitt about a temporary starage facility in Nelson County, which is in a Flood Plain along the James River. Should there be a flood of the James River, every county along the James to the Bay will be affected with Bio Solid Class B, which hardly anyone knows much about.
Had Virginia and the US been in gear, we might have gotten rebates for doing so. The law providing small tax credits was to go into effect shortly thereafter. But not in time for us.
But the way it looked at the time it was a crap-shoot. If a further crunch ensued, prices for systems and installation would rise, backorders and backlogs would occur, and prices could skyrocket. We went ahead before the tax credit went into effect. As it turns out, the shortage was not nearly as bad as predicted. We still did the right thing. And we are saving energy. We even have saved a little money on bills, despite higher per unit gas and electric costs. The question is, though, why didn't the government predict possible outages and foster conservation in the first place?
Enlightened places such as Oregon have really good rebates, even for high efficiency appliances. So, for example, those really expensive front-loaders (washers and dryers), which save water, energy, and clothing life (and thus save all-round in the long run) are more affordable up-front. Not in Virginia.
Back in the 1970s we knew better than to squander energy. Now, most Americans want a plasma TV, which I consider close to an environmental outrage due to the high electric consumption. (But with a more efficient version, maybe an LCD, I could really be tempted--some day). The operational costs of thee devices has to be made more apparent to users. It's like those (wonderfully cozy) gas log systems. Many people (me included want one). But fortunately, I saw first- hand what friends and family members had to pay for frequently using those systems. Used often, they can really jack up the gas bill.
Over the years, we've gotten new windows, insulated (more than the builder put in), turned down the thermostat, and more. But there is more I can do. I could put a few more fluorescent bulbs. If I layered, I could turn the thermostat down maybe another degree. We can all do something. Our next car will be a hybrid (or something yet to be marketed, which saves energy).
The thing I loved (well, one of the things I loved) about the Al Gore movie was it showed how little actions done by many means a lot.