Federal grants to aid energy efficiency in Alabama
Nearly $370,000 in federal money is going to help improve energy efficiency at nearly 20 locations around Alabama. The grants announced Friday by Gov. Kay Ivey’s office are from the Energy Department. The aim is cut expenses for local governments, public schools and nonprofits. Schools in Cherokee and Colbert counties and the city of Huntsville are getting money for lighting upgrades, and Cleburne County will receive grant money for its courthouse and jail. The south Alabama town of Luverne will use grant money for lighting along streets and improvements at a wastewater treatment plant. Two churches in Mobile and Perry County will receive grants for lighting improvements. In all, $367,050 was awarded in 18 grants. Republished with the permission of the Associated Press.
Alabama ranks 2018’s 4th most energy-expensive state
Energy is expensive. In fact, it’s one of the biggest household expenses for American consumers — costing between 5 and 22 percent of families’ total after-tax income. While energy prices are typically lower in the south, that doesn’t always equate to lower costs. Consumption is a key determinant in the total amount of an energy bill and in Alabamians usually don’t think twice before cranking up the A/C when they’re hot. With July typically being America’s most energy-expensive month, personal finance site WalletHub took a look at the total monthly energy bills in each of the 50 states and the District of Columbia to glean a better understanding of Americans’ energy costs relative to their location and consumption habits. WalletHub analysts used a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil. Energy consumption and costs in Alabama (1= most expensive; 25= avg.): Avg. monthly energy bill: $341 26th: Price of electricity 2nd: Electricity consumption per consumer 7th: Price of natural gas 8th: Motor-fuel consumption per driver Alabama is in good company with its neighbor-states. Georgia ranks the 3rd most energy-expensive state and Mississippi the 5th worst. Here’s how Alabama compares to the rest of the country: Source: WalletHub
Trump administration considers plan to bail out struggling coal, nuclear plants
The Trump administration is considering a plan to order operators of the nation’s power grid to buy electricity from struggling coal and nuclear plants to keep them open. The action by the Energy Department would represent an unprecedented intervention into U.S. energy markets. A draft memo urges federal action to “stop the further premature retirements of fuel-secure generation” from coal and nuclear plants that have struggled to compete with natural gas and renewable energy sources such as wind and solar power. The Associated Press obtained a copy of the memo. The plan would direct grid operators to buy power from coal and nuclear plants for two years to ensure grid reliability, “promote the national defense and maximize domestic energy supplies.” The memo was first reported by Bloomberg News. Republished with the permission of the Associated Press.
Bradley Byrne: Energy in Alabama
In Alabama, we have a lot to be proud of. From our best-in-the-nation Pre-K programs to our championship caliber football teams to our booming economy, there is no shortage of things for our residents to take pride in. One thing we often forget is our outstanding natural resources. From our forests to our waters, Alabama is blessed with an abundance of natural resources that provide a diverse base from which we can produce energy. It is very easy to take for granted our easy access to and the reliability of energy in Alabama. The energy industry not only provides sufficient, reliable power for Alabama, but also employs thousands of our state’s residents, helps grow our economy, and generates revenue for our communities. According to the Energy Institute of Alabama, the energy sector has created more than 124,000 jobs across our state. Moreover, the economic impact of electricity production, construction, and maintenance is an astounding $9.37 billion, putting the overall economic impact of Alabama’s energy sector at $13.22 billion. By stimulating this growth, we have created an environment for the energy sector and others to expand, thus providing even more quality opportunities for job seekers. Bringing more jobs to Alabama has always been a priority of mine, and it is undoubtedly an exciting time to be in Alabama, with major companies recognizing our immense potential for growth and bringing more jobs to the region. A state that provides clean, affordable, reliable energy is a crucial factor in the decisions of companies considering whether to locate in Alabama or expand their existing operations in our state. Thanks to the impressive work of our responsibly utilities, companies can feel good about choosing Alabama. Throughout my time in Congress, I have supported an “all-of-the-above” energy strategy that allows the United States to become energy independent. We should not have to depend on foreign nations for our energy sources, especially when you consider the vast amount of resources available right here in the United States. Affordable energy is a key component to turning our economy around and putting people back to work. If we are to accomplish a true “all-of-the-above” approach to energy production, then we must stop the senseless regulations and costly red tape. Many times, these regulations add to government bureaucracy, but do nothing to actually help protect our natural resources. Even worse, the cost of regulations is often passed on to the consumer in the form of higher energy costs. Cutting back on costly regulations is, and should remain, a primary focus of Congress. To be clear, it is imperative that we produce energy the right way. As a coastal community, we know all too well the risks of harvesting our resources, and therefore place the utmost importance on protecting the American people and our environment. I will always be an advocate for safe policies that do not unnecessarily endanger those we aim to serve. It is vital that we ensure future generations can enjoy the same parts of our environmental that we have been privileged to enjoy over the years. It’s comforting to know that our local energy companies also share these values and take care of what they use. So, as I think about energy and what it means to us as Alabamians, I feel blessed to have a home state where I can flip a switch and know that the power I need to operate my air conditioner or heat my water is there. Alabama is a wonderful place for many reasons. I hope you are as proud of it as I am. • • • Bradley Byrne is a member of U.S. Congress representing Alabama’s 1st Congressional District.
Alabama ranks 3rd least energy-efficient state
For the second year in a row, the Yellowhammer State ranks as America’s third least energy-efficient state. The average American household spends at least $2,000 per year on utilities and another $1,900 on motor fuel and oil, which makes WalletHub’s findings bad news for for Alabamians who are spending more than the average American consumer on energy consumption. In the new, in-depth analysis of 2017’s Most & Least Energy-Efficient States, the personal-finance website endeavored to bring awareness to the impact of energy on American wallets and encourage citizen to conserve more, as October is National Energy Awareness Month. Energy efficiency in Alabama (1=most energy-efficient; 24=avg.) 46th: Home energy efficiency 4th: Vehicle-fuel efficiency 47th: Transportation efficiency WalletHub’s analysts compared the auto- and home-energy efficiency in 48 U.S. states across two key dimensions, “Home Energy Efficiency” and “Auto Energy Efficiency.” They obtained the former by calculating the ratio of total residential energy consumption to annual degree days. For the latter, they divided the annual vehicle miles driven by gallons of gasoline consumed to determine vehicle-fuel efficiency and measured annual vehicle miles driven per capita to determine transportation efficiency. Neighbor-state Mississippi ranked 4th least energy-efficient, meanwhile Tennessee ranked 5th. South Carolina ranked the least energy-efficient of all states. Here’s a look at how Alabama compares to the rest of the country: Source: WalletHub Source: WalletHub
State Sen. Cam Ward elected chair of national energy research group
Alabaster-Republican, state Sen. Cam Ward has been elected the new chairman for the Center for Legislative Energy and Environmental Research (CLEER) for 2017-2018. Ward was installed at the group’s annual meeting Little Rock, Ark. on Sunday. CLEER is an affiliate of the multi-state Energy Council — consisting of twelve energy producing states and two Canadian provinces with the purpose of monitoring and influencing energy policy. CLEER meetings are held quarterly in conjunction with the Energy Council meetings “I am honored to be selected chairman of such a distinguished research group. Along with my CLEER colleagues from across the country, I will continue to promote an energy and environmental policy that strengthens the United States’ position as the world’s leader in the delivery of electricity, natural gas, and energy resources,” said Ward in a statement. “I want to thank New Mexico State Sen. Carroll Leavell for the tremendous job he’s done as the past chairman of CLEER.”
Robert Bentley fast-tracks $37.2M to assist low-income families with energy costs
Governor Robert Bentley on Friday announced he will fast-track $37.2 million in grants to help low-income families cover home energy bills. The Governor has moved the grants forward for immediate distribution due to the recent storms across the state. The grants will enable 22 community action agencies throughout the Yellowhammer State to provide temporary emergency assistance with electric and gas bills and priority assistance will be given to the elderly, people with disabilities and families with young children. “High home heating bills during the winter can be very challenging for low-income families or elderly residents living on very limited budgets,” Bentley said. “These grants will continue to provide needed assistance to residents with the greatest need.” The community action agencies, counties served and grant amounts are listed below: Community Action Partnership of Huntsville/Madison and Limestone Counties Inc. (Madison and Limestone) – $2,313,683 Community Service Programs of West Alabama Inc. (Bibb, Choctaw, Fayette, Greene, Lamar, Tuscaloosa and Sumter) – $3,331,190 Walker County Community Action Agency Inc. (Walker) – $629,320 Pickens County Community Action Committee and Community Development Corp. Inc. (Pickens) – $287,068 Organized Community Action Program Inc. (Bullock, Butler, Covington, Crenshaw, Dale, Lowndes and Pike) – $2,331,889 Community Action Agency of Northwest Alabama Inc. (Colbert, Franklin and Lauderdale) – $1,100,014 Community Action Agency of Northeast Alabama Inc. (Blount, Cherokee, DeKalb, Jackson, Marshall and St. Clair) – $3,048,685 Community Action Partnership of North Alabama Inc. (Cullman, Lawrence and Morgan) – $1,799,536 Montgomery Community Action Agency (Montgomery) – $2,019,137 Mobile Community Action Inc. (Mobile and Washington) – $3,836,929 Marion-Winston Counties Community Action Committee Inc. (Marion and Winston) – $588,062 Macon-Russell Community Action Agency Inc. (Macon and Russell) – $858,631 Jefferson County Committee for Economic Opportunity (Jefferson) – $3,337,594 Southeast Alabama Community Action Partnership, Inc. (Barbour, Coffee, Geneva, Henry and Houston) – $1,900,283 Hale Empowerment and Revitalization Organization Inc. (Hale) – $361,343 Community Action of Etowah County Inc. (Etowah) – $864,701 Community Action Agency of Central Alabama (Autauga, Dallas, Elmore and Perry) – $1,713,112 Eleventh Area of Alabama Opportunity Action Committee Inc. (Chilton and Shelby) – $950,616 Community Action Committee Inc. of Chambers-Tallapoosa-Coosa (Chambers, Coosa and Tallapoosa) – $862,929 Community Action Agency of South Alabama (Baldwin, Clarke, Conecuh, Escambia, Marengo, Monroe and Wilcox) – $2,416,195 Alabama Council on Human Relations Inc. (Lee) – $1,137,444 Community Action Agency of Talladega, Clay, Randolph, Calhoun, and Cleburne Counties (Calhoun, Clay, Cleburne, Randolph and Talladega) – $1,499,982 Interested families should apply through their local action agency, who will have more information on who is eligible for this assistance. Eligibility is based on income, family size and available resources. If applications are approved, payments are made directly to the utility companies on behalf of residents.
Alabama business roundup: Headlines from across the state
Here’s a roundup of some of the top business headlines from across the state this week: AL.com: Brewers, winemakers voice concerns to state alcohol commission at meeting in Mobile A panel of roving lawmakers and other state officials tasked with revamping some of Alabama’s alcohol laws met in Mobile Thursday. Brewers, farmers who make wine and those that want to take the opportunity to bend their ears. The Alabama Alcohol and Beverage Study Commission is expected to visit Colorado and North Carolina later this year to learn about their alcohol laws once it swings through the state for meetings in Mobile, Hoover and Huntsville. An act of the legislature created the body after several measures that would have allowed breweries to sell beer directly to a consumer to go. Beer makers in the state argue that the three-tier system, which provides individual licenses for brewers, distributors and retailers needs to broaden in order for their businesses to grow. Off-premise sales is “our No. 1 goal,” said Brian Kane, owner of Fairhope Brewing Co., said to the commission. Tourists from out-of-state regularly expect to be able to come in taste beer and take some home, Kane said. “It seems the logical place to look, go to the brewery itself,” Kane said, noting that several states already permit those kinds of sales. “We’d like to have that person who comes in from Louisiana on their way to Gulf Shores come in and pick up a six-pack or a growler on the way pick up a six-pack or a growler from our place to go.” Under current law breweries and brewpubs are limited to selling beer in their tap rooms or restaurants, often in small amounts. The Alabama Brewers Guild released a report recently calling for the creation of a single craft brewer license. The advocacy organization’s proposal would allow brewery owners to sell beer directly to consumers in kegs and 32-ounce or 64-ounce jugs called growlers. Dan Roberts, executive director of the Brewers Guild, said though it may be “more controversial,” they’re also asking breweries receive permission to self-distribute and for brewpubs to sell their beer to go with the single license. “We’re open to alternatives,” Roberts said. Rebecca Maisel, a lawyer for Gulf Distributing Co. of Mobile, said in a prepared statement that a proposal from the beverage distribution industry is forthcoming after the commission finishes their research. Maisel defended the current laws at the meeting, saying the “three-tier system — as it is now — is working” in the state. “There are no barriers to entry to getting into a brewery and they already have the ability to have people come in and taste their beer in their taproom,” Maisel said. “So if someone wants to purchase their beer, they can go across to street where a distributor has brought it and they can buy it from that store.” Winemakers and distillers also impressed upon the commission needs for their industries. Cindy Monroe, a farmer in Chambers County, said she has “4 acres of grapes in the ground” with plans to more than double that by 2016 when she expects to open a winery. “But this industry today, the way the regulations are, they do not support Alabama farmers and Alabama growers,” Monroe said. Monroe, 55, sought to made her point with “show and tell” presentation, a basket filled with cane syrup, grits and wine — all made from products grown on the farm she has with her husband. Wineries are subject to regulations similar to the beer industry, she said they are limited to selling their product at the winery for visitors to drink and through a distributor. Under that practice, Monroe said it becomes more difficult for smaller establishments to gain a foothold in the industry. “We can make all of those things and I can go into any store in this state and sell it,” Monroe said. “But if I make wine, you can’t do that. Think about it from that perspective.” AL.com: APM Terminals secures first-round tax abatements for $47.5 million Mobile expansion APM Terminals‘ secured Wednesday the first of three requested tax abatements for its planned second-phase, $47.5 million container terminal expansion on Choctaw Point. The request, which came before the city of Mobile’s Industrial Development Board, represents the first local request approved invoking recently passed “Made in Alabama” jobs incentives legislation. The project, which will also expand the company’s container yard by 20 acres, represents a continued partnership between APM and the Alabama State Port Authority that has already seen the investment of nearly $50 million. The legislation, known as the Alabama Reinvestment and Abatements Act, extends the maximum duration of allowable non-educational ad valorem tax abatements from the traditional 10-year cap to 20 years, but it also introduces additional red tape to gain approval. The city of Mobile’s Industrial Development Board is authorized to approve requested municipal, county and state abatements through the initial 10-year period but can only grant approval for the city’s portion of the second 10-year period. All told, the city of Mobile’s board approved unanimously total non-educational ad valorem abatements totaling about $2.2 million for the first year and nearly $7.9 million for the full 20-year abatement. APM Terminals must now seek separate abatement approval from both Mobile County and the state of Alabama for the additional 10-year period. In recommending the project’s approval, Troy Wayman, the Mobile Area Chamber of Commerce’s vice president of economic development, told the board the project is expected to create 97 jobs with average annual salaries of $53,000, boosting both the city’s and the Port of Mobile’s “logistical advantage.” “The importance of this expansion to our local economy is quite significant…Any infrastructure improvements we can foster for our port…represent significant benefit to us in economic development,” Wayman said. Per the chamber’s benefit-cost analysis, the project is also expected to generate $11.2 million and $1.1 million for local and state education coffers respectively during the total abatements’ duration. Specifically, the project consists of two parts: A capital investment
Alabama Power seeking up to 500 megawatts of renewable generation, including solar
Alabama Power aims to boost its renewable power options in a move that could allow the company to offer more solar power than it has ever offered before. The company said, in response to growing customer interest, it is seeking approval for up to 500 megawatts of generation from renewable resources, including solar. In June, Alabama Power filed a petition with the Alabama Public Service Commission (PSC) to allow the company to pursue a variety of projects up to 80 megawatts each, totaling up to 500 megawatts over a six-year period. The company has identified solar as one of the areas for potential growth in renewables. “This proposal provides a common-sense path for expanding renewables in Alabama,” said Nick Sellers, Alabama Power vice president of regulatory and corporate affairs. “The Public Service Commission has been clear that they do not want renewables to be subsidized by all of our customers. This filing achieves that policy directive while also allowing for solar and new renewable energy projects that are expected to provide economic benefit for all of our customers.” If approved, the plan would allow Alabama Power to build its own renewable projects or purchase power from other renewable-generated sources. Sellers said 500 megawatts is between four percent and five percent of the company’s capacity. The company said it is prepared to move forward working with interested customers on projects upon receipt of PSC approval. “This program was driven by conversations with customers looking to meet renewable mandates pushed down from their headquarters,” said Tony Smoke, Alabama Power vice president of marketing. “Our field representatives have worked hard to identify customers who could be impacted and if this is approved, we will go directly to work with them to explore options.” As an example, 500 megawatts of solar power is enough renewable energy to serve about 100,000 homes during an hour of peak sun intensity on cloudless days. Alabama Power already has 1,600 megawatts of hydro resources across Alabama, and 404 megawatts of wind generation from projects in Kansas and Oklahoma. Alabama Power has the ability to resell this energy, or the associated renewable energy credits, to third parties to help keep rates low for customers. As more customers wanted solar within the mix of renewable options, Alabama Power has been exploring the best ways to meet that demand without adversely impacting existing customers. “The renewable generation program would provide broad options for us to work with customers willing to pay for renewable costs, while allowing us to protect other customers from bearing additional costs,” Smoke said. “As a service provider, our focus is to make sure we are providing customers access to choices they want,” Smoke added. “Through this plan, we are creating new customer options to sustain and grow industry in our state.” Sellers said the demand for the renewable mix and the costs of providing it are at a point now where Alabama Power can do so without impacting what other customers pay for electricity. “We’ve got customer interest in renewables, and particularly in solar right now. We want to make sure we have that offering available to those customers who are interested at looking at more renewables in the state,” he said. “We’ve seen a growing trend for more renewables and particularly for solar from some of our customers. It’s usually those customers that are under some sort of a mandate, either a government mandate or a corporate mandate.” The company is no stranger to renewable energy. “Our company was founded on renewable energy – hydroelectricity,” Sellers said. “As you know, we’ve got a significant amount of wind generation in our portfolio and now this gives us an opportunity to add solar to that renewable generation mix as well.” Solar energy could grow along with other forms of renewable energy as long as they don’t unfairly burden customers, Sellers said. Republished with permission of Alabama Newscenter Michael Tomberlin is the Editor of Alabama Newscenter, a senior communications specialist with Alabama Power, and an artillery officer in the Alabama National Guard.
Luther Strange, Katherine G. Robertson call federal energy plan “overreach”
In the torrent of overreaching directives coming from Washington to the states, Alabamians may not be aware of the ongoing effort by the Environmental Protection Agency to sidestep Congress and stage a takeover of American energy. Not only are their regulations likely unconstitutional, but they would have a particularly negative effect on Alabama’s economy and our most vulnerable residents. Late last year, the Obama Administration announced a sweeping new regulatory scheme, the Clean Power Plan, aimed at reducing carbon emissions. The plan would force electricity suppliers to: Spend money on so-called efficiency projects that produce less energy at higher costs; Invest in unproven renewable energy projects that produce less energy than less-expensive, conventional methods; Artificially limit the amount of electricity customers can use; Operate gas-fired power plants even if other, less expensive energy sources are available, and; Unjustifiably deny consumers access to existing, lower-cost coal-fired plants that were paid for through current low rates. If a state does not comply, a “federal plan” will be imposed. As Attorney General Luther Strange recently testified before the U.S. Senate, the plan ignores well-established limits of its executive authority under the Clean Air Act and aims to fundamentally alter the way America produces and uses energy. The latest executive overreach, it will lead to enormous uncertainty about the way many states, including Alabama, produce and use energy and will give rise to harmful economic effects. Not only will the cost of energy go up, unduly harming those on fixed incomes, but it will directly increase the cost of many goods and services. There are even concerns of threats to energy grids during peak months. Nevertheless, the Obama Administration has largely ignored those likely consequences and has gone to great lengths to disguise the negative economic, social, and reliability effects that its new regulations will have. For Alabama, the EPA ruling requires the state’s power plants to cut carbon emissions by 27 percent by 2030. To put that in perspective, consider this: More than half of all the electricity Alabama Power generates in the state comes from coal-fired plants and more than 16,000 Alabama jobs are dependent upon the coal industry, which has an estimated $1.3 billion economic benefit to the state. The story gets worse for the individual family. A November 2014 study by Energy Venture Analysis indicates the EPA’s proposed rule would increase the average annual Alabama household energy bills by more than $800 (or 36 percent) in 2020. In Alabama, EPA’s plan would increase the total annual cost of energy to almost $15 billion in 2020. That’s a $5.2 billion annual cost increase for energy in Alabama. Such costs will deal an especially heavy blow to households earning less than $10,000 per year. Nationally, those families already spend an astounding 60-80 percent of their income on energy. Even households earning between $10,000 and $30,000 per year still spend more than 20 percent of their income on energy. In short, the EPA is attempting to make fundamental and irreversible changes to American energy production that will jeopardize Alabama families’ economic well-being by making states do what the EPA cannot. Although environmental stewardship is vital, ceding more power to the federal government rarely produces the desired results. Economic growth, environmental stability, and energy reform are best achieved through open markets and innovation. Attorney General Strange joined 11 other state attorneys general in August to sue the EPA to block implementation of its costly and controversial carbon emission rule that will force Alabamians to live in the dark in order to satisfy the Obama Administration’s political agenda. As was noted in The Wall Street Journal this week, “the more states that refuse to give in to the EPA’s demands, the more likely it is that the agency will be forced to hold back the most burdensome elements of its Clean Power Plan.” The Alabama Attorney General’s Office and the Alabama Policy Institute are united in the fight against this most recent, brazen attempt by the federal government to coerce state action while dismissing the very real threats that these regulations pose to our economy and citizens. Luther Strange is Alabama’s attorney general. Katherine Robertson is vice president of the Alabama Policy Institute, an conservative nonprofit research and education organization dedicated to the preservation of free markets, limited government and strong families. If you would like to speak with the authors, please email communications@alabamapolicy.org or call (205) 870-9900.
