Maine State Library Maine State Documents Governor's Energy Office Documents Governor 1-15-2009 State of Maine Comprehensive Energy Plan 2008-2009 Maine Governor's Office of Energy Independence and Security Follow this and additional works at:http://statedocs.maine.gov/energy_docs Recommended Citation Maine Governor's Office of Energy Independence and Security, "State of Maine Comprehensive Energy Plan 2008-2009" (2009). Governor's Energy Office Documents.Paper 3. http://statedocs.maine.gov/energy_docs/3 This Document is brought to you for free and open access by the Governor at Maine State Documents. It has been accepted for inclusion in Governor's Energy Office Documents by an authorized administrator of Maine State Documents. For more information, please [email protected]. Energy Economic Environment Development S M C E P 2008-2009 TATE OF AINE OMPREHENSIVE NERGY LAN GOVERNOR’S OFFICE OF ENERGY INDEPENDENCE AND SECURITY FACILITATING PUBLIC AND PRIVATE PARTNERSHIPS John E. Baldacci John M. Kerry Governor Director State of Maine Governor’s Office of Energy Independence and Security January 15, 2009 STATE OF MAINE OFFICE OF THE GOVERNOR 22 STATE HOUSE STATION AUGUSTA, MAINE 04333-0001 JOHN ELIAS BALDACCI JOHN M. KERRY GOVERNOR DIRECTOR OFFICE OF ENERGY INDEPENDENCE AND SECURITY STATE OF MAINE COMPREHENSIVE ENERGY PLAN Letter of transmittal to the Maine Legislative Joint Standing Committee on Energy and Utilities January 15, 2009 Dear Senator Hobbins and Representative Hinck: Our nation, region and state have become dangerously dependent on unreliable, insecure and expensive foreign oil and natural gas. Combustion of these fossil fuels causes climate change, damages the environment, threatens public health, undermines our economic vitality, erodes national security and diminishes our quality of life. As we saw from the rapid rise in energy prices to historic levels in 2008 and as benchmark crude oil traded at a high $147 a barrel on the New York Mercantile Exchange, these stark energy, environmental and economic realities have dramatically increased the vulnerability of Maine citizens. As you know, as a result of Maine’s continuing dependence on expensive, volatile and unreliable foreign fossil fuels for heating our homes, powering our businesses and fueling our cars, trucks, trains and boats, Maine exports billions of dollars out of the state each year. Accordingly, the citizens of Maine are increasingly becoming more vulnerable to rapid price escalations, fossil fuel supply curtailments and infrastructure disruptions. As you have noted, the State of Maine must reduce its inordinate dependence on foreign fossil fuels such as oil and natural gas, while providing the vision and the leadership in the development of public/private partnerships that will enhance the State of Maine’s goals of achieving economic prosperity, environmental integrity and energy security with clean, reliable, affordable, sustainable, and indigenous renewable resources. While the enclosed State of Maine Comprehensive Energy Action Plan identifies the principles, the timeframes, the organizational framework and the concrete steps necessary to advance your vision for an energy independent and secure state, it is imperative that the Legislature, utility regulators, energy industries and all other citizens, businesses and industries in the state unite to create a clean, affordable, sustainable and secure energy future. Accordingly, the Governor’s Office of Energy Independence and Security, in accordance with Public Law 656 of 2008, is pleased to transmit to you the 2008-2009 State of Maine Comprehensive Energy Plan. Respectfully submitted, John M. Kerry John M. Kerry, Director, Governor’s Office of Energy Independence and Security PHONE: (207) 287-3292 TABLE OF CONTENTS STATE OF MAINE COMPREHENSIVE ENERGY PLAN 2008-2009 EXECUTIVE SUMMARY_______________________________________1 A. Creating a Clean and Sustainable Energy Culture B. Global Context C. Regional Context D. State Context ENERGY ACTION PLAN 2008-2009________________________21 I. STRENGTHENING ENERGY EFFICIENCY, CONSERVATION AND WEATHERIZATION ACHIEVE ALL COST-EFFECTIVE ENERGY EFFICIENCY IN THE STATE OF MAINE._________________________22 A. Aggressively provide opportunities for State government, local governments, Maine families, businesses, and industry to invest in energy efficiency, conservation and weatherization through Federal and state programs, grants, loans and other public and private funding mechanisms. B. Support and implement energy audits for businesses and state facilities. C. Develop an interdisciplinary energy SWAT team to assist large industries and manufacturers in addressing their critical energy needs. D. Work with State Government to adopt an overall energy reduction goal at State facilities. E. Work with State Government to adopt an overall goal of new, renewable power generation at State facilities. F. Continue to promote increased efficiency standards for all new construction. G. Increase the number and availability of energy efficient heating systems and appliances in the State of Maine. H. Target weatherizing 100% of all Maine residences and 50% of all Maine businesses in the next twenty years. I. Continue to promote and enhance training opportunities for certified energy auditors and weatherization technicians. J. Reduce peak-load energy consumption in all sectors. II. FOSTERING RENEWABLE ENERGY (WIND, SOLAR, TIDAL AND GEOTHERMAL. COGENERATION/TRIGENERATION)_________________29 A. Encourage Maine’s businesses and residences to invest in distributed renewable generation of energy. B. Work with State agencies, the Governor’s Ocean Energy Task Force, Maine Maritime Academy (MMA) and private developers to promote tidal power in Maine. C. Support research at the University of Maine to create cellulosic ethanol from paper making waste. D. Assist in the development of “bio-fuel” and “bio-mass” energy plants using Maine renewable resources. E. Increase use of bio-fuels and alternative energy in state-occupied buildings F. Assist public schools with converting from fossil fuels to bio-fuels. G. Encourage the development of ethanol-blend fueling stations. H. Increase the development and use of cogeneration and tri- generation in the State of Maine. I. Encourage the strategic location and development of industrial and district heating energy generation clusters. J. Assist the University of Maine and other colleges with the use of bio-mass/bio-fuel cogeneration and tri-generation energy systems. K. Increase the generation of renewable power into the State of Maine’s electricity portfolio. III. IMPROVING TRANSPORTATION AND FUEL EFFICIENCIES____________44 A. Support and enhance state and private sector efforts for education and awareness of alternative transportation options and promotion of a low-carbon fuel standard and fuel efficient vehicles. B. Support state transportation investments and encourage private investment for enhanced passenger and freight transportation systems. C. Encourage greater coordination of land use and transportation policy to reduce vehicle miles traveled and decrease greenhouse gas emissions. D. Support public-private partnerships to develop “explorer” transit systems for tourist destinations. IV. UPGRADING ELECTRICITY AND NATURAL GAS SERVICES, TRANSMISSION SYSTEMS AND INFRASTRUCTURES__________________50 A. Support the development of electrical transmission projects in Maine for increased reliability and to accommodate new Maine- based wind power from both on-shore and off-shore projects. B. Support the development of electrical transmission projects in Maine to accommodate economically and environmentally sustainable renewable energy from Northern Maine and Canada. C. Promote natural gas as a “transitional fuel” by expanding the natural gas infrastructure to all sectors in Maine. V. STATE OF MAINE LEADING BY EXAMPLE _______________________52 A. Continue “lead by example” initiatives in Maine by implementing progressive energy policies applicable to State, County and local governments. B. Continue to plan for Maine’s long term energy independence and security by using a 50-year planning horizon. VI. EMERGENCY PREPAREDNESS AND RESPONSE____________________53 A. Continue to plan for an Energy Emergency. MAINE ENERGY PROFILE_______________________________55 A. Global Context B. National Context C. Regional Context D. Maine Profile ACKNOWLEDGEMENTS I would like to thank Jennifer Puser, Deputy Director of Research and Legislation, Ian Burnes, Deputy Director of Policy and Planning, and Paul Aubrey, Senior Technical Advisor from Technical Support Inc. for their critical role in researching, drafting and compiling the Comprehensive Energy Plan. In addition, I would like to thank Jane Lincoln, the Governor’s Chief of Staff, Karin Tilberg, the Governor’s Senior Policy Advisor, and the members of the Energy Resources Council for their review and comments. And, finally, I would like to thank David Cole, Commissioner, Department of Transportation, and Gregory Nadeau, Deputy Commissioner, DOT, for arranging for the printing of the plan. John M. Kerry, Director Governor’s Office of Energy Independence and Security Governor's Office of Energy Independence and Security 22 State House Station Augusta, ME 04330 Tel: (207) 287 8927 http://www.maine.gov/oeis/index.html S M TATE OF AINE C OMPREHENSIVE E P NERGY LAN 2008-2009 Governor John E. Baldacci EXECUTIVE SUMMARY: Our nation, region and state have become dangerously dependent on unreliable, insecure and expensive foreign fossil fuel products. The wasteful and increasing consumption of foreign fossil fuel products contributes to environmental pollution and climate change, undermines our economic vitality, erodes our public health and diminishes the quality of life for all Maine citizens. This comprehensive energy plan charts a course to guide Maine to a secure energy future with affordable, reliable and clean energy supplies that are environmentally responsible and economically beneficial to Maine energy consumers and utility rate payers. The Governor’s Office of Energy Independence and Security (OEIS), pursuant to the vision of the Governor and the provisions of the recently enacted Public Law 656, 2008 which directs the OEIS to develop a Comprehensive Energy Action Plan (Plan) for the State of Maine, is committed to advancing the principles, the programs and the integrated plans necessary to secure a safe, clean and affordable energy future for the citizens of Maine. This inaugural state energy plan is based on the following energy, economic development and environmental principles: PRINCIPLES FRAMING MAINE’S COMPREHENSIVE ENERGY POLICY: 1. Competitively priced energy is vital to the state’s economy and the well- being of our citizens. Maine should strive to provide energy to all its citizens at the lowest possible cost to promote economic development and to retain jobs; 2. Maine should increase its energy independence, security, service quality and reliability through greater reliance on cost-effective energy efficiency, conservation, demand management and distributed resources in all energy- using sectors; 3. Maine’s energy policy ultimately relies on the health of competitive markets; Prepared by the Governor’s Office of Energy Independence and Security 1 January 15, 2009 4. When barriers prevent the effective operation of energy markets or when these markets do not take the long-term societal and environmental impacts of energy decisions into account, the State should look to other tools to achieve its goals, including: regulation, education, taxation policies, subsidies and leadership by example; 5. An adequate and reliable energy delivery infrastructure is critical to economic growth and to continued expansion of competitive energy markets; 6. Maine should continue to support indigenous renewable energy resources in all energy using sectors to ensure that Maine participates in an effective manner in national and international efforts to promote energy security, independence, diversity and long-term sustainability; 7. State policies should seek to minimize the unnecessary environmental and public health impacts of energy production, distribution and use; 8. State Government should lead by example and action in its energy procurement, infrastructure and usage practices and policies; 9. Maine people should have access to adequate information on the costs, environmental and other impacts of their own energy choices to ensure that they can make more informed decisions; and 10. Active interagency coordination on state, regional and federal energy policies offers many opportunities to make more economically efficient, environmentally responsible and energy secure decisions regarding the use of State energy resources. To realize the long-term goals contemplated by the these principles, it is essential that we enhance the common good of our communities and state by entering into a public-private partnership with energy consumers as well as the individuals and companies that produce, transmit and distribute energy in the state of Maine. It is imperative that all Maine citizens, especially legislators, energy consumer advocates, public utilities, state policy-makers, administrators and regulators work together to develop a unified vision, mission and comprehensive plan to achieve energy independence and security for our families, businesses and industries, as soon as possible. Building a secure and independent energy future will require not only long-term planning and foresight, but immediate investments that will help reduce our energy costs in the short-term. These strategic investments will create jobs, expand clean energy businesses and firmly establish the green energy industry as an economic development building block for our State’s nearly $40 billion economy. In addition to developing a 21st Century energy transmission infrastructure, strengthening the State of Maine’s economy and enhancing our environment, implementing this innovative, integrated and comprehensive energy plan will place Maine at the forefront of the global and national movements to address the high costs of energy and the deleterious impacts of climate change. The Plan, if properly implemented and sustainably funded by public and private financial resources, will not only reduce the pace and percentage Prepared by the Governor’s Office of Energy Independence and Security 2 January 15, 2009 growth of energy costs to Maine energy consumers, it should mitigate the impact of the volatile energy markets in our state and region. VISION: To provide leadership in the development of public and private partnerships that aspire to achieve the State of Maine’s goals of energy independence and security with clean, reliable, affordable, sustainable, indigenous and renewable resources. MISSION: In conjunction with other departments of state government, the legislature, private industries and nonprofit institutions, provide an open, transparent and collaborative decision-making environment to create effective public/private partnerships that advance the achievement of energy independence, while optimizing Maine’s energy security, economic vitality and environmental integrity. PURPOSE: The purpose of the Plan is to chart the course to a more secure, affordable and sustainable energy future for all Maine citizens, families and businesses and builds upon existing successes. It provides the governor, the legislature, the local governments, the public utilities, the private energy industry and energy consumers with a clear understanding of the state’s plans, processes, priorities, programs and timeframes to address the critical energy issues of the first fifty years of the 21st Century. In addition to providing the vision, mission, and data on the energy resources and energy infrastructure in the state, the plan identifies the need for public and private entities to be engaged in the energy industry at the international, national, regional, state and local levels. CREATING A CLEAN AND SUSTAINABLE ENERGY CULTURE: The OEIS recognizes that building a sustainable, affordable, clean and secure energy culture is a process and not an event. Accordingly, the OEIS is advancing those values, principles, and policies that promote the integration of sound economic, energy and Prepared by the Governor’s Office of Energy Independence and Security 3 January 15, 2009 environmental programs in a long-term, sustainable energy culture. To realize these ambitious and challenging goals, state policy-makers, department heads and state regulators must clearly and boldly enshrine in statute and institutionalize in practice, energy norms and standards that promote the long-term energy security of the state. In essence, the Plan for the State of Maine promotes a public private partnership to create a new energy ethic, which will transform an energy inefficient and consumption-driven culture into a more efficient and sustainable energy culture. Accordingly, the state must establish policies and implement programs that assist private businesses and industries to evolve from a fossil fuel dominated culture, to a sustainable energy culture based on energy efficiency, conservation and renewable resources. While the Plan envisions a twenty-five to fifty-year planning horizon, it recommends that both the public and private sectors assert strong leadership and take immediate action to create the energy investment environment for private enterprise to invest billions of dollars in developing Maine’s energy service centers and energy transmission corridors. This goal can be realized by creating “energy clusters”, modernizing old energy plants, and expanding and upgrading aging transmission lines and infrastructure. The development of strategic “energy clusters” and the modernization of the electricity and natural gas transmission systems will not only create jobs and infuse billions of dollars into Maine’s economy, these initiatives will enhance the state’s long-term energy security and reliability. While promoting policies to enhance economic development, energy efficiency and controlling energy costs for rate-payers and energy consumers, the plan strongly promotes private investments and technological initiatives to modernize our state inter- modal transportation, electrical, petroleum and natural gas transmission systems. This will not only assist in harnessing remote renewable resources to meet the Regional Greenhouse Gas Initiative’s (RGGI) carbon reduction goals, it will provide for affordable, safe and secure energy as we transition from a fossil fuel culture to a clean, renewable and sustainable energy culture. GLOBAL CONTEXT: According to the Energy Information Administration (EIA) world energy consumption is projected to increase by nearly 60% by 2030. Total world energy use is projected to rise from 350 quadrillion BTUs in 2005 to 460 quadrillion BTUs in 2015, to 700 quadrillion BTUs in 2030. Global energy demand is projected to rise despite the volatility in world oil and natural gas prices. Prepared by the Governor’s Office of Energy Independence and Security 4 January 15, 2009