The U.S. installed more wind power last year — 9,900 megawatts, or enough to power 2.4 million homes — than in any other year.

The growth in wind farm installations in the U.S. was a product of federal stimulus spending. Nonetheless, wind equipment manufacturers cut as many as 2,000 jobs last year. According to the American Wind Energy Association, a trade group, the drop in U.S. jobs is due, in part, to the lack of a long-term national policy that would require a certain percentage of American electricity to come from renewable sources.

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The ARRA included $13 billion to extend tax credits for renewable energy production until 2014. Since many renewable energy investors were unable to take advantage of tax credits at the time, the federal government shifted its contribution to those projects into cash grants. That program, which expires in December, would be extended through January 1, 2013 if the act, also known as HR 4599, is approved.

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Two years ago, on January 28, 2008, Governor Linda Lingle announced the unprecedented HCEI partnership between the State of Hawai‘i and the U.S. Department of Energy with the bold vision to transform Hawai‘i from the most foreign oil-dependent state in the nation to a secure and thriving economy based on tapping our state’s abundant local energy resources.

At its two-year mark, HCEI is on target to meet its ambitious goal of 70 percent clean energy by 2030.

“The scope, breadth and depth of activity surrounding the Hawai‘i Clean Energy Initiative has truly been remarkable,” said Governor Lingle.  “I am very optimistic and confident that we are on the right path toward a clean and secure energy future for our state and today I re-commit our State to achieving the HCEI objectives.  The breadth of partnership and collaboration across so many participants has been and will be critical to making this a success.”

To achieve HCEI goals, the Lingle-Aiona administration recognizes that government’s role is to establish the policy and regulatory framework that allows the markets to function and to invest in and develop clean energy resources.  From 2006 through the 2009 legislative session 19 landmark clean energy bills have been enacted into law, including a Renewable Energy Portfolio Standard (RPS) and an Energy Efficiency Portfolio Standard (EEPS), both the most progressive in the nation.

The Lingle-Aiona administration further recognized the importance of transforming the state’s regulatory environment to facilitate clean energy development.  To date 34 dockets related to clean energy development are active before the Public Utilities Commission (PUC), including historic and “game-changing” dockets establishing feed-in tariffs and decoupling for the Hawaiian Electric Companies.

Fundamentally transforming Hawai‘i’s energy system also required collaboration with the state’s utility companies to increase renewable energy generation and integrating renewable energy into utility grids.  The Lingle-Aiona administration and the Hawaiian Electric Company (HECO) entered into a historic Energy Agreement on October 20, 2008, pursuant to which HECO committed to integrating 1,122 megawatts (MW) of utility-scale renewables by 2030, along with approximately 660 MW of customer-sited photovoltaics and other distributed generation into its power grid.

Renewable energy development has surged since HCEI’s inception. Hawai‘i now leads the nation in solar water heating, which accounted for more than a third of all systems installed in 2008.  With the ramping-up of photovoltaic installations on public and private facilities, Hawai‘i now ranks third in the nation in per-capita photovoltaic generation.

Hawai‘i residents are also becoming more energy efficient. In 2008, Hawai‘i residents used 8 percent less energy per-capita in 2008 than 2007, marking the sharpest decline in recent years.  As per-capita energy use drops steadily, Hawai‘i is spending less on energy per dollar of gross state product (GSP), leaving more to be invested by its residents and businesses.

State agencies are leading by example.  As a result of the Lingle-Aiona administration’s Lead by Example initiative, electricity consumption in the executive branch of state government decreased by nearly 6 percent from 2008 to 2009, saving an estimated $10 million a year in general funds.  The State’s Department of Accounting & General Services (DAGS) has entered into energy savings performance contracts for 10 downtown state office buildings, including the State Capitol, with more buildings to follow.

In the liquid fuels sector, which is important as one-third of Hawai‘i’s energy consumption is in transportation, the state’s 2009 Bioenergy Master Plan created a roadmap for bioenergy development in Hawai‘i. In December the U.S. Department of Energy released $48 million in Recovery Act funding for biorefinery technology advancements and production facilities in Hawai‘i. Further in transportation, the state has established partnerships with several private sector entities to deploy and test electric vehicles. The state’s first public EV charging station opened on January 23, 2010, and new legislation encourages electric vehicles by requiring designated parking stalls and charging stations in parking lots with at least 100 public stalls.

Dozens of energy companies are pursuing clean energy projects statewide in wind, solar, geothermal, wave and ocean energy and biomass.  Wind-generated electricity is one of the fastest-growing renewable energy industries in Hawai‘i. A landmark agreement between HECO, Castle & Cooke, and First Wind in March 2009 initiated wind energy projects on the islands of Lāna‘i and Moloka‘i, where wind resources are the most abundant, each with potential to supply between 200 and 400 MW of power.

Ancillary to the development of the renewable generation facilities is the development of an undersea cable between Maui County and O‘ahu that would transport renewable energy from where it is more abundant to where it’s needed most.  The state is progressing with a number of studies, including seafloor surveys that have confirmed the physical feasibility of the project and identified possible cable routes.  The state has also issued a request for proposals for an environmental impact statement (EIS) and will look to the findings of that EIS to help it make decisions that work for everyone. The state hopes to commence construction of the cable within three years.

Approximately $133.9M of federal ARRA funds have been obtained for Hawai‘i energy projects in areas including biomass, geothermal, water, smart grid, state electricity regulators assistance, energy efficiency and conservation, and workforce development.

“The importance of HCEI’s goals to Hawai‘i’s future cannot be overstated,” said DBEDT Director and State Energy Resources Coordinator Theodore Liu. “In addition to being a catalyst for energy independence and greater energy security across the state, HCEI is paving the way for economic recovery and growth, providing incentives for investment in clean energy development, generating exciting new business opportunities and higher-paying, green-collar jobs that come with a new, clean energy economy.”

Moving Forward – Clean Energy Legislative Initiatives

To continue building on the foundation of the Hawai‘i Clean Energy Initiative, Governor Lingle unveiled in her State of the State Address on Monday a comprehensive package of legislative initiatives that will serve as effective incentives for investments in clean energy.

The measures include:

A ban on the construction of new power plants that burn fossil fuels.
A general excise tax exemption on renewable energy projects of at least 2 megawatts that are placed in service between January 1, 2011 and January 1, 2015.
A general excise tax rebate on electric and plug-in hybrid vehicles as well as charging
stations.
The Hawai‘i Clean Energy Investment (HCEI) Bonds Program to assist residential and commercial property owners with upfront costs of installing clean energy systems or efficiency upgrades by allowing them to borrow money from the State and then repay the loans over a period of years via an annual assessment on their real property tax bill.

Hawai‘i Clean Energy Initiative Milestones

Several important milestones in a number of key areas have been achieved that form the foundation on which HCEI’s ambitious goals will be achieved, including:

The Lingle-Aiona Administration, together with the State Legislature, have put into place the policy and regulatory framework to facilitate the development and growth of Hawai‘i’s clean energy economy.

As the result of this framework, the private sector has responded with proposing over 100 renewable energy projects involving billions of dollars of private investment.

Significant opportunities have been put into place and will continue to be developed for Hawai‘i’s residents and businesses to conserve energy and to reduce their energy bills.
State government is “leading by example” with energy conservation retrofits and deploying their assets, including state lands, to support clean energy generation.
Cutting-edge clean energy technologies and processes are being developed or tested and deployed in Hawai‘i funded in large part by off-shore private or federal sources of investment.

Analysis, planning and pilot projects are underway to upgrade and modernize how Hawai‘i transmits and distributes electricity and to lay the foundation of development and adoption of “smart grids.”

Significant progress has been made on planning and developing liquid fuel alternatives to transition transportation away from foreign oil while supporting local food production and security.

Substantive and lasting partnerships have been launched, including with our local utilities and refineries, the visitor industry and the U.S. Department of Defense military installations, to capture the benefits of a clean energy economy.
Over $125 million in federal investment have been obtained to fund the initial work on Hawai‘i’s energy system transformation.

Significant attention has been drawn to Hawai‘i as a model that other states in the United States and countries in the region can follow.

Additional information on the Lingle-Aiona Administration’s legislative initiatives is available on the Governor’s website (www.hawaii.gov/gov).

That is definitely a smart strategy and if you are planning to upgrade your appliances already then you really should consider the tax credit for energy efficient appliances because it really can be significant. The smart way to take advantage of this is by getting a better end model that will last you longer, no matter what the appliance is, and then use the money you saved to pay down the cost of the appliance itself. This can make a big difference for those who buy the higher end models of washers, dryers and ovens, among other appliance possibilities.

It is a definite step in the right direction which will pay off hugely and the fact is, once you begin going in this direction you find even more ways to save money each month so it never hurts to give it a shot.

Andy Jensen, vice president/general manager of Cardinal ST, explains that the process of earning the tax credit began when the company completed and submitted a formal 48C tax credit application in October 2009. The tax credit is part of the Recovery Act, which is focused on building a robust domestic manufacturing capacity to supply clean and renewable energy projects with American made parts and equipment.

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While that is still a small share, it is up from virtually nothing a few years ago. Continued growth at such a fast pace could help the nation lower its emissions of the gases that cause global warming, The New York Times’s Jad Mouawad writes.

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Homeowners can get a maximum amount of credit for all combined home improvements and this can be as much as $500 for the tax credit’s two-year period. This tax credit is applicable to home improvements made from the 1st of January 2006 through the 31st of December 2007. Because of this, it is a good idea to purchase energy tax credit water heater; you don’t only help the environment, you can also save money from the purchase. 

To qualify for tax credit, the energy tax credit water heater should of course have a 0.8 energy factor. This is 33% more efficient compared to the current federal standard. However for this, only a few tankless water heaters are currently qualified. The water heater must also have an accompanying certification statement in order to become eligible. Homeowners who qualified for the tax credit may enjoy a $300 tax credit for energy efficient water heater. However, the $300 tax credit is still subjected to the maximum allowable tax credit for each household which is limited to only $500. 

For electric heaters to qualify, the energy factor must be 2.0. This twice efficient compared to the current federal standard. In order to qualify, there should be an accompanying certification statement from the manufacturer. Homeowners who qualified for the tax credit may enjoy a $300 tax credit for energy efficient electrical water heater. However, the $300 tax credit is still subjected to the maximum allowable tax credit for each household which is up to as much as $500. 

For solar water heaters to qualify, there should be at least 50% of the energy generated by the property must come from the sunlight. Homeowners can only claim their expenses on the heating system property and not the whole system for the whole household. The water heater must also be Solar Rating and Certification Corporation (SRCC) certified. Homeowners who qualified for the tax credit may enjoy a 30% of the cost of up to as much as $2000 for energy efficient electrical water heater.

In the fall, Ritter proposed suspending or eliminating 13 tax exemptions and credits starting in July to raise $132 million to help balance next year’s budget. In December, lawmakers learned that tax revenues were forecast to drop even more, requiring them to cut another $48 million from the current year’s budget for a total of about $600 million in cuts.

Ritter is proposing that seven of the sales tax exemptions be lifted starting in March instead of July.

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“Energy touches every aspect of our lives from the cost of heating our homes to sustaining our resources for future generations,” said Governor O’Malley. “In these last three years, we have made the choices that have transformed Maryland into one of the leading clean energy states in the nation.  Each element of our energy agenda is structured to provide resources and incentives for our families and workforce, create jobs, and fuel innovation as we continue to strive for a Maryland that is truly Smart, Green and Growing.”

Key legislation include an acceleration of the State’s solar Renewable Portfolio Standard to put more clean energy on the grid faster, as well as off-shore wind legislation to create an effective regulatory framework for off-shore wind energy development. Additional proposed legislation calls for extending renewable energy tax credits for businesses interested in going green, as well as tax credits for families to purchase plug-in electric vehicles as they become commercially available later over the coming year.

“Builds on the recommendations in the Maryland Energy Outlook, this legislative package will keep Maryland at the forefront of progressive clean energy policies,” said Maryland Energy Administration Director Malcolm Woolf. “Together with Governor O’Malley, we are focused on helping empower families and businesses take charge of their energy use, while moving towards a more green energy economy; this means creating legislation to support renewable energy programs, create green jobs, and promote the expansion of new technologies such as plug-in vehicles and the development of off-shore wind.”

The O’Malley-Brown Administration introduced bills that will specifically:

Incentivize the Purchase of Plug-in Electric Vehicles

•Create a credit against the State vehicle excise tax for the purchase of plug-in electric vehicles (new generation of electric vehicles are expected to come on the market beginning in the fall of 2010, including the Chevy Volt, and electric vehicles by Chrysler, Nissan, Ford and Toyota.)

•The tax credit would be for 3 years and would be capped at $2,000 per vehicle.  Exemptions would be limited to one per individual and 10 per business entity.  Fiscal cost estimated to be $279,000 in FY 2011.  Loss of revenue to Transportation Trust Fund will be offset with funds raised under the Regional Greenhouse Gas Initiative.

•Electric vehicles will provide enormous and far-reaching environmental, economic, national security and health benefits to our citizens. 

•Electric vehicles will reduce petroleum use and reduce greenhouse gas emissions, lower fuel costs, improve air quality, and increase the State’s and country’s energy independence. 

Accelerate the Solar Renewable Portfolio Standard (RPS)

•This legislation will accelerate Maryland’s solar RPS requirements in the early years (2011 – 2017), resulting in more residential and commercial solar installation and greater job creation.

•It will make the phase-in of the Solar RPS more evenly distributed over the next decade and provide more long-term support for Maryland‘s growing solar industry.  This change will put the State’s solar goals more in line with New Jersey and Delaware. 

•Additional solar energy in Maryland will decrease peak load electricity prices in the summertime, reduce greenhouse gas emissions by displacing fossil-fueled powered generation, create new green jobs, and help Maryland meet its renewable energy goals.

Reauthorize Renewable Energy Production Tax Credit

•Reauthorize tax credit that currently expires at the end of 2010; existing program cap of $25 million would remain.

•Offers Marylanders a state income tax credit limited to $2.5 million to any eligible taxpayer for electricity generated by qualified resources of 0.85 cents per kilo-watt hour, and 0.50 cents per kilo-watt hour for electricity generated from co-firing a qualified resource with coal.
Advance Off-Shore Wind Energy

•Supporting our efforts to lead in this new clean energy sector, create an effective regulatory framework for offshore wind energy development by addressing gaps in existing regulatory authority.  The proposal makes the necessary statutory changes in advance of formal offshore wind energy proposals and applications.

•The legislation clarifies the Public Service Commission’s jurisdiction over transmission lines from offshore wind facilities and allows the construction of a submerged or buried renewable energy transmission line in the beach erosion control district under certain conditions. 

http://www.gov.state.md.us/pressreleases/100115b.asp