In the Sunshine State, a Power Struggle Over Solar Plays Out; Indiana Needs 3rd party PPAs

Posted by Laura Arnold  /   February 21, 2015  /   Posted in solar, Uncategorized  /   No Comments

WSJ: In the Sunshine State, a Power Struggle Over Solar Plays Out

Liberal environmentalists and tea-party conservatives, among others, unite to press state to open window for more renewable energy

A broad political coalition, from liberal environmentalists to tea-party conservatives, has banded together in Florida to press for something that ironically is in short supply in the Sunshine State: solar power.

The group, which also includes business owners, libertarians and Christian conservatives, launched a campaign in January to place an initiative on the state’s 2016 ballot that would eliminate restrictions it says are suppressing the solar industry and protecting utilities from competition.

Though Florida is the third-most-populous state in the country—after California and Texas—and has plenty of sunshine, it ranks 13th in installed solar capacity, with 229 megawatts, compared with 8,544 megawatts in top-ranked California, according to the Solar Energy Industries Association. Pennsylvania, ranked 12th, has 240 megawatts of capacity.

“Florida is the best solar market in the eastern United States, and it’s clearly underperforming,” said Stephen Smith, executive director of the Southern Alliance for Clean Energy, which promotes renewable energy and is a member of the coalition, Floridians for Solar Choice.

Florida is one of only five states that prohibit so-called third-party sales from non-utility companies to install solar panels on residents’ or businesses’ rooftops and sell them power. Under such arrangements, consumers can avoid the upfront costs of installing solar arrays and lock in potentially cheaper electricity rates, while providers can earn back their investment and a profit over the long haul.

Currently, Florida consumers can buy electricity only from utilities. The coalition’s initiative, which requires more than 680,000 signatures to qualify for the ballot, would remove that restriction and authorize third-party sales.

It is the latest standoff between the amalgam of renewable-energy advocates across the country and utilities at a time of rapid growth for the solar industry. In the first three quarters of 2014, 50% more solar power came online than in the same period in 2013, according to the Solar Energy Industries Association.

Florida alliance members say they resorted to a ballot effort because elected officials in Florida have failed to develop a comprehensive clean-energy policy and utilities have used their monopoly position and lobbying muscle to stifle competition from the solar industry.

Utilities have long argued that customers should go through them for solar energy because they should help pay for the cost of maintaining the grid, which they still rely on for at least part of the day.

Sterling Ivey, a spokesman for Duke Energy Florida, which provides electricity in the central and northern part of the state, said the company was committed to working with lawmakers “to achieve energy policies, incorporating solar, that are fair and beneficial to all of our customers.”

ENLARGE

Cynthia Muir, a spokeswoman for the Florida Public Service Commission, which regulates the state’s utilities, said the commission was “working with all stakeholders to develop a strategy to promote solar effectively at a reasonable cost.” She pointed to recent announcements by utilities such as Florida Power & Light Co., a unit of NextEra Energy Inc., to build more solar farms.

The political dynamics unfolding in Florida have played out in other states. In Georgia, tea-party groups joined forces with the Sierra Club to help persuade the state’s utility regulators in 2013 to require Georgia Power to boost rooftop solar.

One of the activists— Debbie Dooley, who co-founded the Atlanta Tea Party—launched a group called Conservatives for Energy Freedom last year that is part of the Florida coalition. The organization is pursuing similar alliances to battle utilities in states including Indiana and South Carolina.

In Arizona, another group—Tell Utilities Solar won’t be Killed, or TUSK— focuses on promoting solar power to conservatives and was among a diverse array of groups that beat back a proposal in 2013 to charge the state’s solar customers steep fees. TUSK is now active in nine other states, including Colorado and Utah.

While liberals tend to emphasize solar as a renewable-energy source that can reduce the country’s reliance on fossil fuels, conservatives often cast it in terms of freedom of choice.

“What’s happening now in Florida is really blocking the free market,” said Tory Perfetti, state director of Conservatives for Energy Freedom.

Meanwhile, Republican state Sen. Jeff Brandes has drafted legislation that would reduce taxes on businesses seeking to install solar panels on rooftops and allow them to sell energy to adjacent establishments.

Mr. Brandes said Florida is slowly coming around. “We have these regulated monopolies that have worked very hard over the years to keep solar out,” he said. “And now you’re seeing Floridians rise up and demand that they address solar.”

Write to Arian Campo-Flores at arian.campo-flores@wsj.com

Solar Energy’s New Best Friend is the Christian Coalition; Indiana Fight Over Net Metering

Posted by Laura Arnold  /   February 21, 2015  /   Posted in Uncategorized  /   No Comments

http://www.washingtonpost.com/news/energy-environment/wp/2015/02/20/solar-energys-new-best-friend-is-the-christian-coalition/

February 20 at 2:18 PM

The politics of solar power keep getting more and more interesting.

In the state of Indiana, a fight over net metering — basically, whether people with rooftop solar can return their excess power to the grid, and thereby lower their utility bills — has drawn out groups ranging from the state chapter of the NAACP to the conservative TUSK (“Tell Utilities Solar won’t be Killed”) in favor the practice.

Arrayed on the other side of the issue, meanwhile, are the Indiana Energy Association, a group of utilities, and Republican Rep. Eric Koch, sponsor of a bill that would potentially change how net metering works in the state. The legislation, in its current form, would let utility companies ask the Indiana Utility Regulatory Commission to include various “tariffs, rates and charges, and credits” for those customers generating their own energy at home.

Net metering advocates charge that this would reduce how much money rooftop solar installers save on their electricity bills. But the bill’s supporters say it will “level the playing field to ensure that all of those who use the electric grid — whether consuming or generating power — are paying for its upkeep,” in the words of the Indiana Energy Association.

Forty-three states and the District of Columbia currently allow net metering — among them, Indiana. The fight is important because the solar industry in the state, and the number of people installing rooftop solar, is expected to grow in coming years — that is, so long as solar remains a good deal financially.

What’s particularly fascinating is how this debate has mobilized the religious community. Solar panels are going up on church rooftops in Indiana, and on Wednesday, the head of the Christian Coalition of America wrote a blog post favoring solar and referring specifically to the Indiana fight (although without getting into the technical details of net metering).

Roberta Combs, president of the group, entitled her post “For God and Country, Indiana and America Need Better Energy Policies,” writing:

Indiana’s utilities are interested in keeping us reliant on traditional fuel sources that hurt our national security and weaken our economy. We must allow homes, businesses, public organizations, and churches to create local, American power by installing solar.

As conservatives, we stand up for our country’s national security and the health of our economy. And, as Christians, we recognize the biblical mandate to care for God’s creation and protect our children’s future.

This is not the first time that Combs has come out for an initiative that might be described as “green.” She previously supported efforts by Secretary of State John Kerry, former senator Joe Lieberman, and Sen. Lindsey Graham (R-S.C.) to battle global warming. Her daughter, Michele Combs, is the founder of a group called Young Conservatives for Energy Reform, which stands for “weaning our nation from foreign oil, boosting efficiency, and developing homegrown alternatives from natural gas to biofuels to wind and solar.”

“This whole concept of conservative support for solar has certainly gotten a lot of attention, but this is the most remarkable chapter in the story,” says Bryan Miller, who co-chairs the Alliance for Solar Choice, which advocates in favor of net metering across the country. “We’ve seen a lot of grassroots activism for sure, but we haven’t seen a major national group, associated with the far right of American politics, coming out on a renewable energy issue.”

The reason this has happened in Indiana, suggests Miller, is that “we’ve had houses of worship who have gone solar, speaking out about this for weeks.” The Christian Coalition did not immediately return requests for comment.

Energy in the U.S. is changing so fast, it seems, that politics barely knows how to adapt to it. .

Chrisitian Coalition: For God and Country, Indiana and America Need Better Energy Policies

Posted by Laura Arnold  /   February 21, 2015  /   Posted in solar, Uncategorized  /   1 Comments

Home

Christian Coalition of America

February 18, 2015 - 12:42pm — Roberta Combs

At the Christian Coalition, we believe that America needs to develop its own energy resources, for the sake of national security and economic health. Right now, the United States sends about a billion dollars a day to other countries to pay for what former President George W. Bush called our “addiction to oil.” Much of that money goes to countries that do not share our values. Some of the money goes to regimes that we would consider our enemies. There is evidence some of it ends up in the pockets of terrorists, and even funding our troops’ opponents on the battlefield.

Now is the time to break our dependence on foreign oil. But more domestic supply alone cannot solve the problem. The United States uses about a quarter of the world’s oil, but only controls 2 to 3 percent of the Earth’s known petroleum reserves, and we cannot drill enough at home to bridge that gap.

If we want to build a stronger economy and a stronger nation, we need a comprehensive, “made in America” approach. That means everything from domestic oil and natural gas, to nuclear power, bio-fuels, wind, geothermal, and solar. We need to support home grown energy that will not run out, and that puts Americans to work while returning dollars to our own economy. We can make a change today, here in Indiana as well as at the state level around the country.

Nowhere is this issue more front-and-center right now than in Indiana. We support efficiency and homegrown energy sources that would keep Hoosiers’ dollars here in Indiana. Indiana’s utilities are interested in keeping us reliant on traditional fuel sources that hurt our national security and weaken our economy. We must allow homes, businesses, public organizations, and churches to create local, American power by installing solar.

As conservatives, we stand up for our country’s national security and the health of our economy. And, as Christians, we recognize the biblical mandate to care for God’s creation and protect our children’s future.

We join a multitude of American and Hoosier voices raised in support of efficiency and next-generation energy sources including solar energy. Veterans and national security groups, business organizations, public health groups, and churches—all understand the importance of what is at stake.

Rep. Eric Koch Announces House Utilities to Meet on 2/18/15 at 1:30 pm to hear HB 1320

Posted by Laura Arnold  /   February 16, 2015  /   Posted in 2015 Indiana General Assembly, solar, wind  /   No Comments

Rep. Eric Koch (R-Bedford) just announced from the microphone shortly before 7:00 pm this evening after all the other Committee announcements were made that

 

House Utilities Committee will meet

Wed., February 18 at 1:30 pm

in Room 156-B of the State House

to hear HB 1320 distributed generation

and net metering!

No other information was provided.

Game on, people!

Visit this link to send a message to House Utilities Committee Members:

http://action.dontkillsolar.com/page/speakout/hoosiers-don-t-let-monopoly-utilities-kill-your-right-to-choose-solar-?js=false

HB 1142 Eliminating solar attic fan and home insulation tax deduction passes House; Why?

Posted by Laura Arnold  /   February 16, 2015  /   Posted in 2015 Indiana General Assembly, solar  /   No Comments

Today (2/16/15) the Indiana House of Representatives voted by a vote of 94 to 2 on Third Reading and Final Passage in the House on HB 1142 which eliminates the Indiana insulation tax deduction and the solar attic fan tax deduction.

The two state legislators who voted "NO" are:

Rep. Ryan Dvorak (D-South Bend)

Rep. Matt Pierce (D-Bloomington)

IndianaDG send a BIG "Thank you"

to Rep. Dvorak and Pierce

for voting "NO" on HB 1142.

The Fiscal Impact Statement Summaraizes HB 1142 as follows:

Summary of Legislation: Tax Incentive Review: The bill specifies that the Legislative Services Agency (LSA) (rather than the Commission on State Tax and Financing Policy or its successor committee, under current law) shall before October 1 of each year conduct the review, analysis, and evaluation of all tax incentives under House Enrolled Act 1020-2014, according to a schedule developed by the LSA. It requires the LSA to submit the results of the review, analysis, and evaluation to the Legislative Council and the Interim Study Committee on Fiscal Policy. The bill requires the Interim Study Committee on Fiscal Policy to hold an annual public hearing after September 30 and before November 1 of each year at which: (1) the LSA presents its review, analysis, and evaluation of tax incentives; and (2) the interim study committee receives information concerning tax incentives. It requires the InterimStudy Committee on Fiscal Policy to submit to the Legislative Council any recommendations made by the interim study committee that are related to the LSA’s review, analysis, and evaluation of tax incentives prepared under this section. The bill requires the LSA to provide information to be used by the General Assembly to make certain determinations regarding tax incentives. (Current law requires the LSA to make these determinations.)

Tax Expenditure Report: The bill requires the LSA to prepare and publish a tax expenditure report before November 1 of each even-numbered year. It specifies the required elements of the tax expenditure report. Repeal of Deductions: The bill repeals the home insulation deduction and the solar-powered roof vent and fan deduction.

Effective Date: Upon passage; January 1, 2016.

Explanation of State Expenditures: Summary- The changes made by the bill to the tax incentive review program and the tax expenditure reporting requirement established in the bill can be implemented by LSA within current resources. The Department of State Revenue will incur additional expenses to revise tax forms, instructions, and computer programs to reflect the repeal of the home insulation deduction and the solar-powered roof vent/fan installation deduction. The DOR's current level of resources should be sufficient to implement these changes.

Explanation of State Revenues: Summary- The bill repeals the home insulation deduction and the solar powered roof vent/fan installation deduction effective beginning in tax year 2016. The revenue gain from the repeal of the deductions would begin in FY 2017. Both deductions may be claimed under the individual adjusted gross income (AGI) tax which is distributed to the state General Fund. The estimated revenue gain is specified in the table below.

The revenue gain could potentially grow by 1%-2% annually thereafter.

Provision FY 2017

Home Insulation Deduction: $1.1 M

Solar-Powered Roof Vent/Fan Installation Deduction: $6,000

Total: $1.1 M

Additional Information- The home insulation deduction may be claimed against an individual taxpayer’s AGI. The maximum deduction is equal to $1,000 for the material and professional installation costs of insulation and insulating products installed in the taxpayer’s principal place of residence. The solar-powered roof vent/fan installation deductionmay be claimed against an individual taxpayer’s AGI. The deduction is equal to 50% of the total installation cost, both materials and labor, up to $1,000 for the installation of a solar-powered roof fan/vent on a building the taxpayer owns or leases.

Explanation of Local Expenditures: Explanation of Local Revenues: Because the repeal of the deductions will increase state taxable income of individuals, counties imposing a local option income tax (LOIT) could experience an increase in LOIT collections. Based on the median LOIT rate of 1.45%, collections on a statewide basis could increase by an estimated $500,000 annually in 2018.

State Agencies Affected:

General Assembly; Legislative Services Agency; Department of State Revenue.

Local Agencies Affected: Information Sources:

Legislative Services Agency, Indiana Tax Incentive Review, November 2014.

Fiscal Analyst: Jim Landers, 317-232-9869.

Here is the link to Roll Call #135 on HB 1142>

 http://iga.in.gov/static-documents/d/a/b/b/dabb5e17/HB1142.135.pdf

To read a copy of HB 1142 see >

http://iga.in.gov/static-documents/8/9/b/5/89b50ae7/HB1142.02.COMH.pdf

The Senate sponsor of HB 1142 is Sen. Brandt Hershman.

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