Energy Update Feb 27

IN THE STATES

VA - The Virginia House of Delegates and Senate voted to preserve a tax credit for electric utilities that burn coal mined in the Commonwealth. Governor Terry McAuliffe previously proposed a reduction in the tax credit to help offset a budget shortfall, but neither chamber agreed to the Governor's proposal. The policy reversal creates a 5.2 million shortfall in each chamber's proposed budget, and allows utility companies to claim no more than 7.5 million combined in any year. House, Senate preserve coal tax credit for utilities - "The Richmond Times-Dispatch"

WV - Governor Earl Ray Tomblin vetoed a bill, H.B. 2201, that would have required the state's Public Service Commission to set new guidelines for net metering, a proposal which advocates decried as jeopardizing the future of solar power in the state. Net metering, which differs by state, is a billing mechanism that credits solar energy system owners for the electricity they generate and add to the electric power grid. In his veto message, Governor Tomblin said he disapproved of the bill for technical reasons, but did not further clarify his position on the legislation's intent. "Due to a number of technical issues in the bill, I am unable to sign House Bill 2201 into law," Governor Tomblin said. "I encourage the Legislature to re-examine this piece of legislation and correct the technical issues outlined in my veto message." W.Va. governor vetoes net metering bill - "FierceEnergy" and Tomblin vetoes two technically flawed bills - "MetroNews West Virginia"

REGIONAL

The Governors of Massachusetts, Connecticut, and Rhode Island are forming a regional partnership to expand the use of renewable energy sources and natural gas. Under the Governors' plan, electric utility companies in each state will work together with state agencies "to begin a competitive bidding process to seek proposals from supplies of clean energy resources." The Governors, which discussed the regional partnership during the recent National Governors Association's winter meeting, also released a draft request for proposals with a 30-day comment period. Governor Charlie Baker of Massachusetts said "this regional partnership will allow Massachusetts to acquire cost effective renewable resources for the commonwealths energy supply." Connecticut Governor Dan Malloy stated the joint venture may lead to larger collaborative energy projects. "By working together with neighboring states," Governor Malloy said, "we can make the most efficient use of our resources to attract new clean energy projects at the lowest possible cost for ratepayers while advancing our interests in reducing emissions of greenhouse gases." Governors looking to expand renewable energy, natural gas - "The Boston Herald"

The Outer Continental Shelf Governors Coalition (OCSGC) met during the recent National Governors Association's winter meeting, agreed to lobby Congress for legislation "to set a multi-state strategy for revenue sharing from federal offshore energy development." The OCSGC, which first organized in 2011, has seven members, including Alabama Governor Robert Bentley, Louisiana Governor Bobby Jindal, Maine Governor Paul LePage, Mississippi Governor Phil Bryant, North Carolina Governor and OCSGC Chair Pat McCrory, South Carolina Governor Nikki Haley, and Virginia Governor Terry McAuliffe. The Governors, however, have not yet reached a decision on a model for revenue sharing. "Right now weve got all these different bills on revenue sharing, and we would like to consolidate those into one bill," Governor McCrory said, referring to separate bills in Congress for Virginia, North Carolina and South Carolina. State governments usually control offshore waters as far as three miles, while the federal government controls the outer continental shelf. Seven Governors set legislative strategy for revenue sharing from offshore energy -- "Bloomberg"

NATIONAL AND FEDERAL

The American Energy Innovation Council, which is made up of six corporate executives, is urging Congress and the federal government "to make expanded energy research a strategic national priority." Members of the Council include Microsoft co-founder Bill Gates and General Electric CEO Jeffrey Immelt. The Council contends the United States has fallen behind other governments in energy research, which may hamper efforts to reduce carbon emissions and develop new energy sources. The group recently released a report highlighting their advocacy work and research and recommendations for policymakers. "Growing and consistent appropriations for energy innovation should be a top U.S. priority over the next decade," the business leaders recommended in their report. "The budget numbers over the last five years are a major failure in U.S. energy policy." Bill Gates and other business leaders urge U.S. to increase energy research - "The New York Times"