-» t.^" Montana S 33J.79 Environmental El2eps Quality Council 1993 HJK 31 enerey pol icy s tudy t Montana energy data HJR 31 ENERGY POLICY STUDY MONTANA ENERGY DATA STATE DSCUMKiTS COLLECT;::! -- ;:.-•; MONTANA STATE LIHrMRY 1515 E. 6th AVE. HELENA, MONTANA 59320 Final Report to the 53rd Legislature of the State of Montana -n January 1993 Prepared by the Montana Environmental Quality Council and the Montana Department of Natural Resources and Conservation MONTANASTATELIBRARY S333.79El2eps1993C.I HJR31energypolicystudy.Montanaener 3 0864 00083103 5 House Joint Resolution 31 ENERGY POLICY STUDY MONTANA ENERGY DATA December 1992 ENVIRONMENTAL QUALITY COUNCIL HOUSE MEMBERS SENATE MEMBERS Jerry Driscoll, Chair Jerry Noble, Vice Chair Ed Grady Steve Doherty David Hoffman Dave Rye Bob Raney Bill Yellowtail PUBLIC MEMBERS GOVERNOR'S REPRESENTATIVE Doug Crandall Art Wittich John Fitzpatrick Mona Jamison Helen Waller EQC STAFF Deborah B. Schmidt, Executive Director Todd Everts, Resource Policy Analyst/Attorney Michael 8. Kakuk, Staff Attorney Paul Sihier, Resource Scientist Ellen Engstedt, Administrative Officer Maureen Theisen, Research Assistant ACKNOWLEDGEMENTS The Environmental Quality Council would like to acknowledge: Mr. Gerald Mueller, Energy Consultant, for his contribution to the . . . preparation of this report. In particular, the EQC commends Mr. Mueller for his successful facilitation of the Residential Energy Efficiency Working Group. Ms. Gail Kuntz, former EQC Resource Specialist, for completion of the . . . early phases of the HJR 31 Energy Policy Study. ... the Department of Natural Resources and Conservation, for their excellent cooperation in providing information for this report, especially for their compilation and production of Appendix H, "Montana Energy Data". the law firm of Murphy, Robinson, Heckathorn & Phillips, P.C, of . . . Kalispell, for their completion of the Montana Energy Law Survey. Table of Contents Summary of Council Recommendations 1 Introduction 5 SECTION Energy Policy Goal Statement 7 I. SECTION Energy Policy Development Process 9 II. SECTION III. Energy Policy Analysis Methodology 13 SECTION IV. Montana Energy Law Survey 15 SECTION V. Residential Energy Efficiency Collaborative 19 SECTION VI. Montana Energy Data 25 Appendices APPENDIX A HJR 31 27 APPENDIX B Draft Implementing Legislation Draft Bill #1 31 Draft Bill #2 36 APPENDIX C HJR 31 Energy Policy Study Design Working Group 45 APPENDIX D Energy Policy Analysis Methodology Working Group 47 APPENDIX E Energy Policy Analysis Methodology 49 APPENDIX F Residential Energy Efficiency Working Group 69 APPENDIX G Montana Energy Law Survey 71 Introduction The Project 71 Environmental Considerations - MEPA 71 Organization of the Survey 72 Using the Survey 73 Chapter Nonrenewable Resources 1 - Part 1 - Coal 1.1.1 Exploration 74 1.1.2 Production, Development and Environmental Regulation 74 1.1.3 Taxation and Fiscal Programs 77 Part 2 - Oil and Natural Gas 1.2.1 Exploration 81 1.2.2 Production, Development and Environmental Regulation 82 1.2.3 Taxation and Fiscal Programs 86 Part 3 - Uranium 1.3.1 Exploration 92 1 .3.2 Production, Development and Environmental Regulation 92 1 .3.3 Taxation and Fiscal Programs 95 Chapter 2 - Renewable Resources Part 1 - Hydroelectric 2.1 .1 Production, Development and Environmental Regulation 97 2.1 .2 Taxation and Fiscal Programs 99 Part 2 - Solar 2.2.1 Production, Development and Environmental Regulation 101 2.2.2 Taxation and Fiscal Programs 101 Part 3 - Wind 2.3.1 Production, Development and Environmental Regulation 104 2.3.2 Taxation and Fiscal Programs 105 Part 4 - Geothermal 2.4.1 Production, Development and Environmental Regulation 107 2.4.2 Taxation and Fiscal Programs 108 Part 5 - Biomass 2.5.1 Production, Development and Environmental Regulation 110 2.5.2 Taxation and Fiscal Programs 110 Part 6 - Cogeneration 2.6.1 Production, Development and Environmental Regulation 113 2.6.2 Taxation and Fiscal Programs 113 Chapter 3 - Electric Energy Part 1 - Transmission 3.1.1 Location, Development and Environmental Regulation 114 3.1.2 Taxation and Fiscal Programs 115 3678 Chapter 4 - Conservation Part 1 - Private Sector 4.1.1 Taxation, Incentives and Fiscal Programs 116 Part 2 - Public Sector 4.2.1 Taxation, Incentives and Fiscal Programs 121 Chapter 5 - Public Service Commission Regulation Part 1 - Statutes and Rules 123 Part 2 - Non-statutory Regulatory Concepts 129 APPENDIX H Montana Energy Data Notes Regarding the Data H-1 Abbreviations and Acronyms H-3 Glossary H-5 Chapter 1: Energy Production and Consumption H-11 1.1 Production of Energy by Type of Fuel (physical units), 1960-91 H-1 1.2 Production of Energy by Type of Fuel (trillion Btu), 1960-91 H-14 1.3 Consumption of Energy by Type of Fuel (physical units), 1960-90 H-1 1.4 Consumption of Energy by Type of Fuel (trillion Btu), 1960-90 H-1 1.5 Consumption of Energy by Sector (trillion Btu), 1960-90 ... H-1 1.6 Residential Energy Consumption Estimates, 1960-90 H-20 1.7 Commercial Energy Consumption Estimates, 1960-90 H-21 1.8 Industrial Energy Consumption Estimates, 1960-90 H-22 1.9 Transportation Energy Consumption Estimates, 1960-90 ... H-23 Chapter 2: Electricity H-25 2.1 Electric Power Generating Capacity by Company and Plant as of December 31, 1991 H-27 2.2 Net Electric Generation and Fuel Consumption by Company and Plant, 1991 H-28 2.3 Annual Consumption of Fuels for Electric Generation, 1960-91 H-29 2.4 Net Electric Generation by Type of Fuel Unit, 1960-91 H-30 2.5 Annual Sales of Electricity H-32 2.6 Average Annual Prices for Electricity Sold, 1960-90 H-34 2.7 Summary of Consumers, Revenue, Retail Sales, and Average Price per Kilowatt-hour, 1990 H-36 Chapter 3: Coal H-37 3.1 Demonstrated Reserve Base of Coal by State and Rank as of January 1, 1992 H-39 3.2 U.S. Coal Production by State and Rank, 1991 H-40 3.3 Coal Production and Average Mine Price by Rank of Coal, 1950-91 H-41 3.4 Coal Production by Company, 1978-91 H-43 3.5 Distribution of Coal for Use in Montana, 1974-91 H-44 3.6 Receipts of Montana Coal at Electric Utility Plants, 1973-91 H-45 3.7 Destination of Montana Coal Delivered to Steam-Electric Plants H-46 Chapter 4: Natural Gas H-49 4.1 Year-end Proved Reserves of Natural Gas, 1950-79 H-51 4.2 Year-end Proved Reserves of Natural Gas and Natural Gas Liquids, 1976-91 H-52 4.3 Natural Gas Production and Average Wellhead Price, 1950-91 H-53 4.4 Number of Producing Gas and Gas Condensate Wells, and Number of Gas Wells Drilled, 1966-1991 H-55 4.5 Natural Gas Consumption by Customer Class, 1950-91 .... H-56 4.6 Average Natural Gas Prices by Customer Class, 1950-91 H-58 . . . 4.7 Average Natural Gas Consumption and Annual Cost per Consumer, 1980-91 H-59 4.8 Sales of Natural Gas by Gas Utilities, 1950-91 H-60 Chapter 5: Crude Oil and Petroleum Products H-63 5.1 Year-end Proved Reserves of Crude Oil, 1950-91 H-65 5.2 Estimates of Crude Oil Proved Reserves by Region, 1955-91 H-66 5.3 Number of Producing Oil Wells by Region and Number of Oil and Gas Wells Drilled by Type, 1955-91 .... H-68 5.4 Average Daily Oil Production per Well and Annual Production by Region, 1955-91 H-70 5.5 Crude Oil Production and Average Wellhead Prices, 1950-91 H-72 5.6 Total Refinery Receipts by Source of Crude Oil, 1953-91 H-74 . . . 5.7 Petroleum Product Consumption Estimates, 1960-90 H-76 5.8 Residential Petroleum Product Consumption Estimates, 1960-90 H-77 5.9 Commercial Petroleum Product Consumption Estimates .... H-78 5.10 Industrial Petroleum Product Consumption Estimates, 1960-90 H-79 5.11 Transportation Petroleum Product Consumption Estimates, 1960-90 H-80 Chapter 6: Renewable Energy H-81 6.1 Average Wind Speed at Selected High Potential Sites H-83 6.2 Average Daily Solar Radiation, 1961-90 H-84 6.3 Ethanol Production and Alcohol Consumption, 1980-91 .... H-85 Chapter 7: Transportation H-87 7.1 Motor Fuel Use, 1950-90 H-89 7.2 Estimated Price of Motor Fuel and Motor Fuel Taxes, 1970-90 H-91 7.3 Highway Use of Gasoline by Month, 1986-90 H-94 7.4 Gasoline Prices by Month, 1986-90 H-94 7.5 State Motor Vehicle Registrations, 1950-90 H-95 7.6 Vehicle Registrations by Type of Vehicle and Year of Make (1991 registrations) H-96 7.7 Vehicle Miles Travelled (VMT) by Functional 7.7 Vehicle Miles Travelled (VMT) by Functional Class of Highway, 1980-90 H-97 7.8 Vehicle Miles Travelled (VMT) by Federal-Aid Systems, 1970-90 H-97 7.9 Transportation to Work by Mode, 1990 H-98 Chapter 8: Background Data H-101 8.1 Montana Energy Tax Collections, Fiscal Years 1981-92 H-103 . . . 8.2 Heating Degree Days for Selected Locations, 1961-90 Average H-105 8.3 Residential Fuel Choice and Type of Heating Equipment, 1960-90 H-106 8.4 Economic Indices H-107