“The updated definition of ‘green energy’ will apply to all programs in the state that fund any ‘green energy’ or ‘clean energy’ initiatives.”
The Affordable, Reliable and Clean Energy Security Act of the American Legislative Exchange Council has just been released. ALEC model legislation, considered conservative (Republican vs. Progressive), is important for state legislatures as they debate various issues.
The short (365 word) model act follows:
Energy Security is paramount to economic growth. Energy Security that is Affordable, Reliable, and Clean leads to prosperity for our families and communities. Therefore, the following Energy Security-ARC is proposed as a common sense energy agenda for the future.
Section 1. Energy Security
Domestic Production: The fuel source must be primarily produced domestically within the United States.
Infrastructure Security: The infrastructure necessary to deliver energy to the customer should minimize reliance on foreign nations for critical materials or manufacturing.
Section 2. Affordability
“Affordable Energy Source” shall be defined as an energy resource that:
(a) Has a stable and predictable cost.
(b) Provides a cost-effective means of heating, cooling, and generating electricity.
(c) Delivers substantial savings to homes and businesses compared to other resources based on the average cost per unit of energy output for the past five years.
(d) Is readily available 24/7.
(e) Includes energy generated by reliable hydrocarbon as a resource.
Section 3. Reliability
“Reliable Energy Source” shall be defined as an energy resource that meets the following criteria:
(a) Fuel Availability and Reliability: The resource must be readily available to meet energy demands 24/7 with minimal interruptions during high usage periods.
(b) Includes energy generated by hydrocarbons as a resource.
(c) Power Generation Reliability: When used for power generation, the resource must demonstrate:
(i) Capacity Factor: A minimum capacity factor of fifty per cent.
(ii) Grid Stability:
i. Electricity output is dispatchable 24/7.
ii. The capability to ramp up or down electricity generation within one hour stabilizing the electrical grid.
(iii) Renewable Integration: The ability to complement and provide backup to renewable energy sources during periods of low availability.
Section 4. Clean
“Green energy” will be redefined as meaning any energy generated by using an energy resource in which the emissions are equivalent to the standard set by pipeline quality natural gas, (e.g. those emitted by residential gas stoves):
(a) Releases reduced air pollutants
(b) Includes energy generated by nuclear reactors.
(c) Includes energy generated by using natural gas as a resource.
The updated definition of “green energy” will apply to all programs in the state that fund any “green energy” or “clean energy” initiatives.
Comment and Evaluation
The new definition of “green” energy eligible for government subsidies is an incremental step in favor of consumers and taxpayers. Wind and solar generation for the grid fail the reliability test. If batteries are added to allow wind/solar to meet the reliability thresholds, the cost test is violated.
There remains subjectivity and tradeoffs between the goals of cost, clean, and reliable. Nuclear, for example, meets the ‘clean’ and ‘reliable’ standards but fails the “cost-effective means” standard.
Ideally, all government subsidies for any energy/energy technology would end. Short of this, the ALEC’s Affordable, Reliable and Clean Energy Security Act is a step toward the best energies seeing the light of day in the marketplace to address current industry problems.