Energy Issues in Iowa

Energy use in Iowa

98% imported from outside the state

In the form of coal for power generation and industry; oil, for transportation; natural gas for heating, power generation and industry; and nuclear power plants.

2% is produced from Iowa-based resources

Ethanol
Hydropower
Wind
Methane
Refuse-derived fuels
Biomass

Energy-Economy-Environmental Connection (3E's)

The goals of economic vitality and environmental quality can only be met through the wise use of energy resources.

Example of 3E's in Iowa

Agricultural Energy Management Program
- Farmers reduce their use of chemicals--primarily petroleum and natural gas-based, saving $312 million , without reducing crop yields and helping the environment
Building Energy Management Program
- Saving 15$ million annually for schools, local and state governments, cities, counties, and universities

Impact of Energy on the Economy

Iowa Economy is vulnerable

When the Exon Valdez ran aground in 1989, Iowans were burdened with an extra $11 million in gasoline costs

Gasoline prices compared to other goods.

Historical trends for energy prices and gross state product (GSP).

Building Energy Management Program Impact on the Environment

An investment of $89 million has avoided the emission of:

₂

An investment of the $300 million expected will avoid the emission of:

₂

Utility Demand Side Management Programs Impact on the Environment

An investment of $55 million has avoided the emission of:

₂

Use of Ethanol Impact on the Environment

Ethanol used in Iowa results in the avoidance of 1.8 million tons of CO₂

Energy Investment Compared to Tree Cutting

Trees cut in Iowa state parks result in net CO₂ emissions of one ton

Iowa Energy Goals

To meet all future demand for energy by increasing efficiency rather than supply

To increase the use of alternative energy resources from 2% of Iowa's total energy consumption to 5% by the year 2005 and 10% by the year 2015

Energy Policy

Support and encourage the efficient use of energy

Develop homegrown energy sources

Conduct research to stimulate the economy and protect the environment

Utility Restructuring

The electric utility industry is moving towards increased competition. In the process, it is important to:

Retain Iowa's comparative advantage in low electric rates
Maintain diversity in electric generation mix. Diversity in our electric generation mix includes alternative energy sources such as:
- Wind
- Biomass
- Hydro
- Methane
- Solar

Why is it important to develop renewable Energy?

Fossil fuel resources and supplies will peak around 2030 before declining slowly

It takes time to make large scale transitions from one technology to another

Most nuclear power facilities are slated for decommissioning within 20 years

How is Renewable Energy Profitable?

Chris Fay, Chairman of Shell Oil, projects that by the year 2030, there will be a $900 billion market for alternate and renewable energy.

Benefits of developing renewable energy resources,

Example of Ethanol....Benefits:

Adds 10 cents per bushel to the price of corn
Adds $190 million to the value of Iowa's corn crop
Pumps $1.5 billion annually into Iowa's economy
Creates 12,000 jobs
Avoids 1.8 million tons of C0₂ emissions in Iowa

History of Alternative Energy Production in Iowa

Original Alternative Energy Production Law passed in 1983

In 1990, revisions to the law developed collaboratively to the utilities which require utilities to purchase 105 megawatts of electricity (1% of capacity) generated by alternative sources of energy

As of 1995, only 15 megawatts of the 105 have been contracted

Current Legislative Actions Regarding Alternative Energy Production and Energy Efficiency

$5 million loan fund created to encourage construction of renewal energy projects

Elimination of the requirements that utilities spend at least 2% of their electric revenue and 1.5% of their natural gas revenue on energy-efficiency programs

Chartion Valley Resource Conservation and Development Corporation

Plans to identify a viable biomass market by 1999

Goal is to co-fire switchgrass with coal to achieve 35 megawatts of biomass-based generating capacity by the year 2000

Phase I is designed to confirm feasibility study findings and develop methods to maximize establishment, yield and handling of switchgrass

Expected Results:

Data on actual on-site impacts of co-firing and feasibility confirmation
Detailed design and site plans for boiler modifications and handling facilities
Initial scale-up activities on 4000 acres and commitments for 36,000 more
Data on the potential of gasification of herbaceous energy crops using turbine and/or fuel cell technology
Full financial assessment and funding package proposal

Phase I is expected to last 18 months

Renewable Energy-Wind Projects

Spirit Lake Community School District

The first Wind turbine used by an Iowa school district
$25,000 annual savings
225 tons of coal displaced
75,000 pounds of CO₂ emissions avoided

Schafer Systems, Inc., Adair, Iowa

Wind turbine supplies this plastics assembly plant with 65% of its annual electrical needs, saving it thousands of dollars a year in utility bills.

Sun Prairie and Vista Court Apartments

Uses 20-30% of the normal amount of energy for heat

Guarantees monthly electric bills at: $25 for 1 bedroom; $30 for 2 bedrooms; and $40 for 3 bedrooms

Uses less than half the normal amount of electricity in common areas

Uses over 10,000 trees and shrubs for shading and as wind breaks

Uses wind power to generate part of electrical needs Adapted from class handout by Roya Stanley