Press Mention The Atlanta Journal-Constitution June 21, 2004
SACE Quoted
Energy efficiency pushed
In this mention
Environmentalists and the Southern Alliance for Clean Energy propose that Georgia require electric utilities to pay for pollutants they emit, generating an estimated $7.5 million annually for solar, wind, and energy efficiency projects. The proposal would set aside 7.5 percent of nitrogen oxide allowances to be auctioned, with revenues funding renewable energy and energy efficiency initiatives. Georgia Power opposes the measure, characterizing it as a tax, while state regulators express interest in the concept.
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Energy efficiency pushed
Proposal would create funding for programs
By STACY SHELTON
sshelton@ajc.com
Environmentalists want the state to raise money for solar and wind energy, as well as projects that promote energy efficiency, by requiring electric utilities to pay for some of the pollutants they emit.
State officials and environmentalists estimate $7.5 million annually could be generated to pay for projects that capture and use the energies of the sun and wind, and reduce energy use with more efficient lighting, heating and refrigeration.
Georgia Power, the state's largest electric utility, is opposed. "In essence, this is a tax," said Steve Ewald, who works on regulatory issues for the utility.
The <u>Southern Alliance for Clean Energy</u>, or <u>SACE</u>, and the Sierra Club presented the proposal Monday in Atlanta to state regulators, industry leaders and environmentalists.
It could be included next month in the state's plan for meeting a federal clean air rule that aims to reduce the amount of smog-forming pollution blowing into neighboring states.
Ron Methier, chief of the state Environmental Protection Division's air protection branch, called the proposal "intriguing. . . . It's something we've been encouraging. The question is how you really make it happen."
Here's how it would work:
The U.S. Environmental Protection Agency set a cap on the amount of nitrogen oxides, an ingredient in smog, that can be emitted by the state's large electric generators.
The state would set aside 7.5 percent of that, which would be auctioned off to the highest bidder. Companies that need the additional allowances would have to buy them from the state. The revenues would fund projects that use renewable energy or reduce energy consumption.
Russel Gillespie, representing a coalition of independent power producers, including Cornerstone Power and Duke Energy North America, said his group supports a 5 percent set-aside to reduce pollution.
Currently, the state does not provide any funding to develop renewable energy sources or energy efficiency.
About $2 million annually in federal money is funneled through the Georgia Environmental Facilities Authority, some of which is distributed through competitive grants.
Rita Kilpatrick, Georgia policy director for SACE, said reducing energy demand and using renewable energy can save money, create jobs and clean the air. "It reduces demand for the higher polluting resources that are a threat to public health," she said.
Ewald said Georgia Power already has reduced the amount of nitrogen oxide it emits and is in compliance with the federal rule.
He said the Georgia Public Service Commission, which regulates utilities, is the proper forum for the debate over renewable energy and reducing energy demand.
The PSC instituted a green energy program last year, and will decide early next month whether to require energy efficiency as part of Georgia Power's long-term plans for meeting the state's energy needs.