It’s the Infrastructure, Stupid

Governor Schwarzenegger Says CA Will Be First to Clean Energy Independence

While touting the potential of renewable power but remaining silent with regard to --the “hydrogen highway”--(I still believe someone talked him into touting this early in his governorship) Governor Schwarzenegger said California will be the first state in the nation to reach energy independence while fighting global warming.

In a speech last week on May 13 at a meeting sponsored by the University of California, Irvine, and the Milken Institute, he called on business leaders and scientists to protect the state’s economic and environmental future.

He urged energy and other industry leaders to think about the long-term benefits of investing in renewable resources. The Governor touted AB 32, the Million Solar Roofs initiative, his executive order to create a low carbon fuels standard, and the state’s green building initiative.

Sounds great... But message to the Governor and his staff: PLEASE, take a moment to reach out to your own Administration -- particularly your appointees at the various energy agencies and environmental agencies. The only way that the energy industry will realize all the goals established to date, is if the industry is afforded a market with market signals and rules that will allow all of that to happen. Hate to say, this, but so far, so bad...

From regressive policy initiatives at the SWRCB to protracted permitting at the CEC and CPUC... in some cases, the process has turned from stumbling blocks to snares. Trust me, if these were to see improvements, the industry would respond and the infrastructure to deliver that green independent future would be closer to reality. And sooner than we all might otherwise expect. To do nothing, will mean that we will get nothing. Markets and industry need meaningful signals -- we don't have them today. We need tose market signals so that the infrastructure can secure the financing to get this stuff built.

Arizona Critical of SCE Devers Transmission Line in Letter to FERC

The Arizona Corporation Commission (ACC) has responded to the Federal Energy Regulatory Commission (FERC) concerning Southern California Edison’s (SCE) appeal on the proposed Devers-Palo Verde No. 2 transmission line.

The ACC defended its June 2007 decision to deny an application for the 230-mile, 500 kV line that would run from the Palo Verde hub area in Arizona to the Devers substation in Southern California.

In their letter to FERC, the ACC complained about higher levels of nitrogen oxide pollution from Arizona power plants and loss of water used in generating power that will be sold to SCE. The project also “raised concern about its negative impact on the environment, particularly in and around the Kofa National Wildlife Refuge.” The ACC went on to say that SCE has other options to satisfy its needs, which include building new power plants and using renewable energy.

SCE has appealed the Arizona denial to FERC because the DPV2 line falls within the U.S. Department of Energy’s Southwest Area National Interest Electric Corridor, as authorized under the Energy Policy Act of 2005. This is a very interesting test to the Federal Corridors portion of the act – and will prove interesting as the Sunrise Powerlink continues its path to construction.