NW Regional -- Washington

1. NW Regional -- Washington • Washington’s residents, businesses and industries spend $10 billion on their energy costs each year. • Washington’s long-term economic and environmental health depends on sound investments in, and efficient usage of, energy resources. • The misuse of energy resources can have economic consequences and threaten the health and safety of Washington’s people.

2. Primary Energy Consumed in Washington by Source, 1997

3. Electric Use of Energy, 1997 • Sixty-four utilities provide electricity to the state of Washington. • Hydroelectric power is by far the most highly used electricity source.

4. Hydropower • Washington and the Northwest are home to the largest hydroelectric system in the country, with over a third of the hydroelectric capacity located in the Snake and Columbia River Basins. • Over 80% of generating capability in Washington is hydroelectric, including Grand Coulee Dam, the largest electric power plant in the United States. • The dam supplies electricity to the Northwest with 24 generators providing up to 6,500 MWe of power6.

5. Cost of Electricity • Because of the federally owned dams of the Bureau of Reclamation and the U.S. Army Corps of Engineers, Washington enjoys low priced electricity. • In 1996 the average revenue per kilowatt-hour was 4.19 cents across all sectors, which was the third least expensive nationally. • The residential average revenue per kilowatt-hour was the least expensive nationally at 5.03 cents, and the commercial and industrial average revenue per kilowatt-hour were the second least expensive at 4.88 and 2.85 cents.

6. Climate Change • Washington’s emissions of CO2 grew by 3.4% per year between 1985 and 1995, resulting in emissions that are 15% above targets set during the 1997 Kyoto negotiations. • Based on predictions by the Intergovernmental Panel on Climate Change, Washington’s temperatures could increase by 5ºF in winter and summer and 4ºF in spring and fall, with a 10% increase in precipitation as a result of unsustainable energy practices.

7. Sustainable Future • Greenhouse gases are growing at an alarming rate, and the use of efficient and renewable energy is the most effective strategy to minimize human induced impacts. • The investment in hydropower, a non-depletable, non-carbon electric power source, gives Washington a competitive advantage. • However, Washington still remains in a good position to pursue an even more sustainable energy future.

8. Renewable Energy • In Washington, the energy efficiency and renewable energy industries generate yearly sales of $1 billion and employ 4,000 people. • Approximately 134 firms involved in various sectors of renewable energy (not including hydropower) are located in Washington state.

9. Renewable Resources • The western portion of the state could pursue solar concentrator technologies. • Washington has high-temperature geothermal resources that are suitable for electricity generation. • About 2% of the state has good winds that are available for development. The actual portion of the land that would be covered is about 0.2%. If this potential were developed, 45% of the state’s electricity consumption, could be produced annually.

10. Renewable Portfolio Standard • A renewables portfolio standard (RPS) requires that a minimum percentage of each electricity generator’s or supplier’s resource portfolio be comprised of renewable energy. • Companies can meet the minimum standard for renewables by earning renewable energy credits (RECs)—tradable credits awarded for each unit of renewable energy produced.

11. Guidelines for Washington • Renewable technologies eligible for credit under Washington's RPS will include: solar thermal electricity, photovoltaics, wind, biomass, alternative fuels, fuel cells, landfill gas and geothermal. • The RPS will use market forces to create competition among renewable developers, which will lead to the lowest possible cost for compliance. • Washington will increase its percentage of renewables used for electricity by 0.5% per year for 10 years, resulting in 5% of electricity sales coming from renewable sources by 2010.

12. Guidelines for Washington • Washington will adopt public benefit trust funding for renewable energy of 0.3 cents per kWh. • Washington will require disclosure labels that are uniform, simple and easy to understand. • Because Washington imports some of its electricity from neighboring states, it is recommended that RECs can be earned for any renewable generation sold to customers in the state, whether generated in state or not.

13. Guidelines for Washington • No more than 60% of the credits can be earned from wind power, and no more than 25% can be earned from solar. Therefore, no more than 85% of the credits required can come from any two technologies. The remaining 15% of the credits will be generated by other technologies such as landfill gas, fuel cells, biomass and geothermal.

14. In conclusion, it is proposed that Washington develop an RPS to ensure the orderly development of renewable energy technologies.