While Idahoans have greatly benefited from low-cost coal and hydroelectric power generation, the state's reliance on those sources may leave it vulnerable in the future.
That is one of the preliminary conclusions in a draft energy plan, prepared by the Idaho Legislative Council Interim Committee on Energy, Environment and Technology with the assistance of San Francisco-based Energy and Environmental Economics, Inc.
The 2007 Idaho Energy Plan came about during the last legislative session. San Diego-based Sempra Generation proposed a 600-megawatt coal-fired power plant for Jerome County, kicking off a major public debate on the merits and dangers of such facilities. The debate turned into legislation, in the form of a two-year moratorium on traditional coal-fired plants, and funding for the Interim Committee on Energy, Environment and Technology to develop an integrated state energy plan.
"It serves as an umbrella for us to bring legislation forward," said Rep. Wendy Jaquet, D-Ketchum. Lawmakers will be able to point to the public policy document, which is set for debate and possible endorsement this session by the Legislature.
"We can say, 'This is why the legislation is before you,'" Jaquet said.
Although this legislative session may be short, Jaquet said she and other lawmakers are combing through the report, making lists of aspects that should be turned into bills.
She said the report has some high points that may prove a springboard for legislation. These include the emphasis on conservation and renewables, suggestions for incentives, additional funding for the Energy Department, and having the department and the Idaho Public Utilities Commission come before the Legislature every two years to discuss the plan's accomplishments.
Preparing for the possible
The report states that Idaho's reliance on coal-fired power produced out of state leaves it vulnerable to the economic effects of federal regulation of carbon dioxide and mercury emissions. Its hydroelectric capacity could be affected by federal relicensing of dams, a process that can result in substantial cost increases due to more extensive fish and wildlife mitigation measures.
Idaho's reliance on out-of-state energy means that it derives little economic benefit from the $3 billion dollars that Idahoans spend each year on energy, including gasoline. If Idaho didn't import so much of its energy, the report says, job creation and tax revenue from in-state generation sources could benefit the state.
On top of all that, the state is growing and must find ways to deal with surging demand.
The energy plan draft proposes numerous ways to deal with Idaho's changing energy picture. It pushes Idaho to find ways to secure a reliable, low-cost energy supply, protect the environment, and promote economic growth.
The plan recommends increasing investments in energy conservation and in-state renewable resources. Idaho's resources are largely renewables such as geothermal, wind, hydro and biomass. Non-hydro renewables account for only 1 percent of the state's electricity.
Conservation and renewables diversify the state's resource base, the report notes, reducing its dependence on imported fossil fuels and providing insurance against increasing fuel prices.
Conservation and in-state renewables also contribute to Idaho's economic development by creating local jobs and tax revenues.
According to the Northwest Power and Conservation Council, Idaho has trailed surrounding states in acquisition of energy conservation and efficiency.
Committee members also state in the report that energy suppliers should have access to conventional energy resources, such as coal, to keep Idaho's energy costs as low as possible. The plan does not recommend major structural changes to Idaho's energy industry.
Highlights of the report's recommendations include:
· When acquiring resources, Idaho and Idaho utilities should give priority first to conservation, energy efficiency and demand response, then to renewable resources. Those alone may not fulfill Idaho's growing energy requirements, however.
· Idaho and Idaho utilities should encourage technologies that minimize emissions of harmful pollutants and consumptive use of water.
· Idaho and Idaho utilities should prepare for the possibility of federal regulation of greenhouse gas emissions.
· Idaho should offer an income tax incentive for investments in energy efficient technologies by Idaho businesses and households.
· Idaho should provide incentives for the purchase of efficient, flex-fuel and alternative fuel vehicles.
· Idaho should permit local authorization of transit option taxes to support the use and expansion of public transportation.
· Idaho should encourage regional land use planning and policies that minimize vehicle miles traveled.
The issue of siting power plants cropped up frequently last session, but during summer meetings of the interim committee, lawmakers tended less toward mandating a statewide siting advisory team and more toward suggesting its use.
Currently, county commissioners have sole authority to approve a power plant once Idaho Department of Environmental Quality permits are issued, and a transfer of water rights is secured.
The draft report states that Idaho state agencies should play a role in providing technical information to support local energy facility siting decisions but local jurisdictions should not be required to get their input. The report does recommend, however, that when permitting large electric generating facilities, local jurisdictions should be required to make a "reasonable effort" to hear testimony about the impact of the facilities from citizens and businesses in neighboring jurisdictions.
"We object to that," Jaquet said. "We don't think it works very well. The big reason we did the plan was because people were so concerned about the siting process. Looking at this plan, the Legislature is not addressing that issue."
Jaquet also was disappointed that the plan doesn't include a section addressing affordability.
"(The committee) voted it out," she said. The report will include a minority opinion stating Democrat committee members' desire to help low-income residents in light of rising energy prices. The numbers tell you there needs to be a two-tiered system."
The report also calls for an expansion of the Idaho Department of Water Resources with increased funding. The department could become the Department of Water and Energy Resources, and it should engage in public outreach and education "to promote a reliable, diverse, cost-effective and environmentally-sound energy system for the benefit of Idaho citizens and businesses."
The plan recommends that the Energy Division of the Department of Water Resources and the IPUC report to the Legislature every two years on the progress of Idaho state agencies, energy providers and energy consumers in implementing the goals of the plan.
The committee also recommended that the Legislature revisit the plan and develop new recommendations every five years.
Idaho's last energy plan was drafted in 1982. Although it was the product of an 18-month effort by the Energy Resource Policy Board and provided an outline of how the state could assist energy providers in supplying adequate energy for Idaho's future, many people criticized it for its lack of implementation.
"The committee recognizes that true success in achieving the energy policy objectives set out in this Energy Plan will occur only when all Idaho citizens and businesses take some initiative toward wise energy use on their own, rather than waiting for incentives or mandates from state government," the 2007 report says.
Graphic courtesy Idaho Power
This pie chart shows Idaho?s electricity fuel mix in 2005, according to the state?s 2007 draft energy plan, which is being reviewed by the Legislature this session.
