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Alternative and Renewable Portfolio

Recently there has been a lot of discussion about the “alternative and renewable portfolio” bill that was passed by the West Virginia Legislature in 2009.  Many people refer to it as HB 103.  HB 103 was initially passed in the June, 2009 Special Legislative Session, but it was subsequently amended and passed as HB 408 in the November, 2009 Special Legislative Session.  HB 408 is actually the bill that establishes the standards.
The purposes of the bills were to “push and encourage” the development and implementation of new, innovative ways to use coal and West Virginia’s other indigenous natural resources to make electricity for our citizens and others on the grid.  These bills were efforts to insure that West Virginia remained at the forefront of America’s quest for energy independence by continuing to lead the country with the development and implementation of modern coal-burning technologies.  When fully implemented, West Virginia will validate its status as an energy state, showing the world that energy can be made in a variety of new, innovative ways with our native fossil fuels, while sustaining our traditional methods of electric generation.   
 
The bill provides that a percentage of the power “made in West Virginia” that is “sold in-state” be produced by “alternative or renewable” sources.  Using today’s statistics, “in-state retail sales” amounts to 4,700MW of electricity.  Today, West Virginia has 14,000 MW of coal-based electric generation capacity.  One-third of that capacity is consumed “in the state”, with the remainder being exported to energy-dependent states.  West Virginia is the 2nd largest “net producer” of electricity on the grid (PA is 1st), while being adjacent to three of the most dependent states on the grid (VA, MD, OH).
 
The bill provides that 10% of those “in-state” megawatts (470MW) must be made by “alternative or renewable” energy resources by 2015, 15% (940MW) by 2020 and 25% (1,200MW) by 2025.  The bill nurtures and encourages innovative, advancing technologies that will preserve the use of West Virginia coal, in conjunction with other natural resources native to the State.
 
The key is the broad definition of “alternative energy resources” that incorporates the most advanced clean coal technologies known today.  Of the 29 states that have portfolio laws, only four (WV, OH, PA, and MI) provide for “clean coal technologies.”  West Virginia has the “broadest and most progressive” definition of “alternative energy resources” of any of the states.    
 
“Alternative energy resources” in the bill includes:

Advanced Coal Technology, which includes:

Supercritical power plants (10% of total allowed)
Advanced Supercritical power plants
Ultra-supercritical technology
Pressurized fluidized bed technology
Carbon capture and sequestration technologies

Coal Bed Methane
Coal gasification
Coal to liquids
Integrated gasification combined cycle technologies (IGCC)
Waste Coal
 
At the time the bills were passed, it was pointed out that West Virginia would be in compliance with the first threshold (10%) with the progressive “alternative energy resource” projects already in place.  Further, with the additional “alternative energy resource” projects that are underway and nearing completion, the State would be in compliance with the ultimate standard of 25% well before 2025. The use of these advanced technologies are expected to result in additional coal-burn as these projects come on line.  These existing and underway “alternative energy resource” projects include:  
 
Supercritical power plants – multiple locations (max 10% of total)  120 MW (10% of the 1,200MW):
                Supercritical boilers are currently being used at each of the state’s baseload generating plants
Waste Coal  Plants (North Branch , Grant Town, Morgantown Energy Associates)   245 MW
                These plants have been operating for years in West Virginia
Carbon Sequestration -  Mountaineer Plant in Mason County – 200 MW
                When project is in full operation.
Advanced Supercritical technology -   Longview Plant - Morgantown - 695 MW
               Plant will come on-line in 2011 using 2.5 million tons of coal annually
Coal to Liquids – Transgas Plant - Mingo County – 125 MW
Electricity will be used internally for plant consumption, but will qualify for “alternative” credits
                                   
Those projects total 1385MW and will be on-line and operating well before 2025.  Based on current levels of generation, the 2025 requirement of 25% is 1,200MW.  
 
The underlying objectives of HB 103 and 408 to establish West Virginia as the progressive Energy Center for America through the development and implementation of advanced technologies that will sustain the use of West Virginia coal and other native, natural resources seems to be in place and working, four years before the first deadline (2015) takes effect.