I've reviewed the Subtitle A of Waxman-Markey and put my comments below. My comments are highlighted. I've included my comments on "Central Procurement State" from my previous post in this post.
SEC. 3. INTERNATIONAL PARTICIPATION. (Page 11)
China and India have adopted greenhouse gas emissions standards at least as strict as those standards required under this Act.
I notice they use the word adopted and not enforcing. It looks like China and India are covered as long as they have a law on the books.
TITLE I—CLEAN ENERGY Subtitle A—Combined Efficiency and Renewable Electricity Standard (page 12)
Distributed Renewable Generation Facility (page 15)
It looks later like you get triple renewable credits if you put the windmills or whatever close to the customer. See comments aboutpage 34 below.
SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD. (Page 16)
(7) CENTRAL PROCUREMENT STATE.—The term ‘central procurement State’ means a State that, as of January 1, 2009, had adopted and implemented a legally enforceable mandate that, in lieu of requiring utilities to submit credits or certificates issued based on generation of electricity from (or to purchase or generate electricity from) resources defined by the State as renewable, requires retail electric suppliers to collect payments from electricity ratepayers within the State that are used for central procurement, by a State agency or a public benefit corporation established pursuant to State law, of credits or certificates issued based on generation of electricity from resources defined by the State as renewable.
I found this rather opaque and naturally tried to Google "Central Procurement State" and found that no one had figured out what this sentence meant and were somewhat dismayed. I took this as a challenge and set down and proceeded to attack this sentence with all the wit at my command.
After several readings, I finally got the concept that utility companies, instead of managing their own renewable energy programs, would collect surcharges from their customers and give that money to the State. The State in turn would use this money to create renewable energy programs. I read the various references to "Central Procurement State" in Waxman-Markey and they seemed to be consistent with that interpretation.
The next question that came to mind is what is the purpose of this sentence? On closer reading I decided that the "January 1, 2009" implied that there was already a state that met this definition, but Rep. Waxman didn't want other states becoming "Central Procurement States". There is a convention in legislation, that when you are creating a bill that will only benefit a single entity, that you can't actually say that it is only for California or Boeing or Henry A. Waxman of Los Angles, CA. You have to craft a definition so that only that one entity meets it. Since Representative Waxman is from California, I naturally suspected that California would meet this definition. After a little web searching, I discovered that California has a renewable energy program that is financed by rate surcharges charged by the utility companies on their customers!
RENEWABLE BIOMASS.— (page 23)
It looks like you can chop down trees and call them renewable biomass.
(17) RENEWABLE ENERGY RESOURCE. (page 24)
Nuclear really get it in the shorts here. You can generate a Gigawatt of carbon free energy and it is worth less than a one windmill.
(4) STATE PETITION. (page 28)
It looks to me that utility companies need to stay on the good side of the Governor , since he can give them a get out of jail free card.
REQUIRED ANNUAL PERCENTAGE. (page 31)
Starts at 6% in 2012 and ramps up to 20% by 2021. This seems kind of unfair to utilities that were already generating most of the power from nuclear or hydroelectric and weren’t generating greenhouse gases in the first place.
Frankly I’m not too clear how this works, since this seems to work on a state by state basis and electricity does cross state lines.
(4) CREDIT MULTIPLIER FOR DISTRIBUTED RENEWABLE GENERATION. (page 34)
Like I said above 3 for 1. It could be very advantageous to put windmills or solar power plants on or near the customer.
(9) TRADING.
You can sell renewable energy credits.
(5) STATE ADMINISTRATION. (page 42)
The state can take over monitoring the renewable energy program.
(g) ALTERNATIVE COMPLIANCE PAYMENTS. (page 44)
(1) IN GENERAL.—A retail electric supplier, or a central procurement State that, pursuant to sub section (g), has assumed responsibility for compliance with the requirements of subsection (b), may satisfy the requirements of subsection (b) in whole or in part by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to $25, adjusted for inflation on January 1 of each year following calendar year 2009, in accordance with such regulations as the Commission may promulgate.
You can buy a credit for $25 per MWH. If I’m reading this right you can buy the credits for 2½ cents a KwH Even with the distributed renewable 3 for 1 you would have to generate electricity for 7½ per KwH to break even. It sounds cheaper to buy the credits than generating them. Maybe I don’t understand this.
(h) INFORMATION COLLECTION, (page 49)
The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading information under this subsection shall be a violation of this section.
This is pretty sweeping language. The Commission can require anybody to tell them anything they want to know. This needs some clarification about what kinds of information are appropriate.
(k) SAVINGS PROVISIONS. (Page 51)
States can have more stringent renewable requirements if they want to.
SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES. (page 54)
The federal government will use renewable energy except when the President decides they can’t.
Links are available below
Text of Waxman-Market as passed by House
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h2454eh.txt.pdf
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