The Wall Street Journal featured a story recently on a study by Bentek Energy which looked at the carbon-reducing potential of wind power.  Bentek based their study on power plant records in Colorado and Texas.  Due to the intermittent nature of wind, electric utilities must either keep conventional (i.e., coal or natural gas) plants running at all times, or must start and restart to meet demand.  The stopping and restarting of plants causes more carbon to be emitted during the "firing up" stage. Because of these emission options, the use of wind energy was found to have neglible effect on carbon emissions in the two states that were studied.

While wind energy will continue to play a part in the nation's electricity generation portfolio, it is not a solution for all areas, nor does it solve for CO2 emissions.  As Arkansas and the US move forward, a combination of nuclear, coal, natural gas, biofuels, hydro, solar and wind will all work together.

Earlier this year, Plains & Eastern Clean Line LLC filed with the Arkansas Public Service Commission (APSC) to be a utility in Arkansas, for the purpose of constructing transmission lines across the state to provide electricity generated in by utility-scale wind farms in western Oklahoma to purchasers in Tennessee.  This is just the latest example of the growing importance of transmission lines and systems.  As more energy providers seek to generate electricity through renewable sources such as wind, solar, and hydro, the importance of transmission continues to increase exponentially.  Adding to the import is the growth of electricty usage.  Many electricty providers have seen a marked increase in usage over the past decades.  When seeking additional resources for electricity, a strong transmission system is key.

A recent article in Intelligent Utility argues that transmission is as important as generation in our increasingly technology-dependent society.  The article also points out some of the challenges in transmission.  The environmental community can be torn because they advocate for "green" energy, but the siting of transmission lines can mar natural landscapes.  Additionally -- and this problem has existed since the first transmission line was run -- the "not in my back yard" philosophy reigns when it comes to transmission lines.  Another challenge is the cost allocation of construction for transmission.  For more on the article, click here.

North Carolina State University has established DSIRE, the Database on State Incentives for Renewables & Efficiency.  Found at http://www.dsireusa.org/, this website is a database of Federal programs as well as a state by state analysis of renewable and efficiency programs.  With the Arkansas Public Service Commission's Energy Efficiency docket (08-144-U) as well as the work being done by the Arkansas Alternative Energy Commission and the state's Legislative Task Force on Sustainable Building Design and Practices, an examination of best practices is important.  While this website does not give an analysis of the success or effectiveness of these incentives, it does provide a central location of information, from which more study can take place.

Congress is currently considering rescinding the dividend tax rate reduction.  There is a myth that this would only help a small portion of the population.  The reality is that the dividend tax rate reduction benefits millions of Americans from all walks of life.  This reduced tax rate helps with economic development, because investors have more money to put into creating new jobs. Removal of this rate reduction will jeopardize investment in clean energy research -- this means not only fewer jobs today, but jeopardizes the possibility of many more new jobs in the future.  In January 2010, Ernst & Young prepared a study of the economic benefits of the dividend tax rate reduction. 

For more information on this, visit the Defend My Dividend website.

Leadership Arkansas is a program designed to take a statewide view of the economic and political challenges that face our great state. Leadership Arkansas offers leadership opportunities that expand the impact of community leaders across the state. Created by the Arkansas State Chamber of Commerce and Associated Industries of Arkansas, Inc., Leadership Arkansas builds a sense of statewide community by identifying and training individuals with the passion and commitment to become personally engaged in issues, programs and activities aimed at building a better Arkansas.

Leadership Arkansas sessions include:

• annual educational, issues-oriented, nine-month class program
• seven day-and-a-half sessions held in various communities throughout the state
• Arkansas leaders who represent a wide geographic base and who have diverse backgrounds and vocations
• exposure to the many social and environmental complexities of the state
• on-site demonstrations and tours
• diverse geographical and cultural experiences
• insight into the people, places and history which influence public policies
• fun and casual settings which foster new relationships and camaraderie

Applications for Leadership Arkansas Class V are now being accepted until August 13. For an application, click here.

For additional information on the Leadership Arkansas program, contact Susie Marks at 501-210-4206 or smarks@arkansasstatechamber.com.

Summer 2010 Event: Matching the Needs of Business and Industry with the Skills of the Arkansas Workforce

August 18, 2010, beginning at 7:00 AM and adjourning no later than 9:15 AM.

Technological and economic forces are transforming the workplace of the 21st century, with highly technical skills and a strong academic background in math and science increasingly in demand. Are young Arkansans acquiring the skills they will need to be employed in tomorrow's good jobs? Will our workforce be competitive in the global economy? How can community and business leaders be part of the solutions? At the next Arkansas Economic Issues Breakfast, we will address these questions and begin the search for strategies and actions to improve the quality of the Arkansas labor force.

The Issues Breakfast, to be held on August 18, 2010, will be conducted in partnership with Accelerate Arkansas, a statewide volunteer group dedicated to raising per capita income of Arkansas. One of Accelerate Arkansas's five Core Strategies is to "increase the education level of Arkansans in science, technology, engineering and math." These capabilities are crucial in the workplace of the future—and the present—as we move toward an increasingly knowledge-based economy.

For more information, click here.

Media reports indicate that Sen. John Kerry (D-MA) is in conversations with electric utilities about accepting a utility-only carbon-cap limit.  The Obama administration has set the goal of a carbon pricing mechanism by the end of 2010. Sen. Kerry, who has sponsored a comprehensive energy bill which seems stalled in the Senate, is trying to craft a smaller bill which would help the President achieve that aim.  Senate Majority Leader, Sen. Harry Reid (D-NV) has said he will bring this to the Senate floor the week of July 26. 

According to The New York Times, Sen. Lamar Alexander (R-TN) is still pushing his own bill, which is co-sponsored by Sen. Tom Carper (D-DE) to reduce pollution at power plants.  Several other electric industry bills are still in varying stages of discussion. Among the topics are nuclear energy, electric cars and renewable energy research.

To read recent articles in The New York Times on this developing story click here and here.

According to Power Magazine, the Department of Energy (DOE) announced it would fund ten projects focused on developing advanced technologies for capturing carbon dioxide (CO₂) from coal combustion. The projects, valued at up to $67 million over three years, focus on reducing the energy and efficiency penalties associated with applying currently available carbon capture and storage (CCS) technologies to existing and new power plants.

The DOE press release states:

The selections announced today will focus on improving efficiency and reducing the added costs to electricity at power plants with carbon capture systems to less than 30 percent for a new pulverized coal plant and 10 percent for a new advanced gasification plant. The Obama Administration has made a goal of developing cost-effective deployment of CCS technologies within 10 years, with an objective of bringing 5 to 10 commercial demonstration projects online by 2016.

"Charting a path toward clean coal is essential to achieving our goals of providing clean energy, creating American jobs, and reducing greenhouse gas emissions. It will also help position the United States as a leader in the global clean energy race," said Secretary Steven Chu.

For more information, visit the DOE website at  http://www.energy.gov/news/9194.htm

On July 1, 2010, the Grand Gulf nuclear power generating plant in Mississippi marked its 25th anniversary of operation.  Roby Brock of Talk Business has a lengthy feature on the history behind Grand Gulf, including why it was not viewed as an asset to Arkansans at the time. 

Below is the opening paragraph for Brock's story:

Grand Gulf.

Those two words are infamous in Arkansas' political lexicon.

They remind regulators, ratepayers, politicians and business leaders of an unprecedented era when one of the most high-profile energy rate cases in Arkansas history dominated news headlines, political agendas, corporate board rooms and court dockets.

As a matter of fact, for three years in a row in the early 1980's, the notorious energy case was voted the top Arkansas news story by the Associated Press.  That's how dominant it was. Editorial writers lampooned the controversy as "Grand Goof" or "Grand Gulp."

Grand Gulf refers to the nuclear power plant built on a 2,100-acre site near Port Gibson, Mississippi. Ultimately, federal regulators and subsequent legal actions forced Arkansans to pick up a major share of the costs to construct the $3.5 billion power generator at a time when it made little economic sense for the state's residents.

But on the 25th anniversary of Grand Gulf's opening, is it possible that it turned out to be one of the wisest energy investments Arkansas ever made?

For the complete story, including an assessment of how Grand Gulf is an asset to Arkansas' energy portfolio and the efforts to control greenhouse gas emissions, click here. 

Forty-one Arkansas cities and counties will receive a combined $6.2 million dollars in grants to implement energy efficiency and renewable energy projects through the U.S. Department of Energy’s Energy Efficiency Conservation Block Grant (EECBG) program. The Arkansas Energy Office (AEO), a division of the Arkansas Economic Development Commission, will distribute the funds, which are provided through the American Recovery and Reinvestment Act.

“Our communities often see their resources stretched thin while trying to provide essential services to their citizens,” Governor Mike Beebe said.  “These grants will help our local governments operate at lower costs through energy efficiency, a benefit that will continue long after these funds are spent.”

More than 80 percent of the funds are being used for building retrofits projects, including energy efficient heating and cooling equipment, efficient lighting, and insulation. Other awarded projects include renewable energy projects such as the installation of solar hot water, geothermal and wind turbines.

Each application was reviewed, scored and ranked by three independent reviewers from outside Arkansas. The funds were awarded based on the judge’s score, rank and geographic considerations.