GOVERNOR’S ENERGY - Delaware



GOVERNOR’S ENERGY ADVISORY COUNCIL

MEETING MINUTES OF MAY 24, 2007

PRESENT:

Bacher, David NRG

Buttner, Sarah Public Service Commission

Cherry, Phil DNREC/Office of the Secretary

Hodas, David R., Chair Widener University School of Law

Padmore, Arthur DOS, Public Advocate

Ross, Seth Delaware Nature Society

Scoglietti, Robert Office of Management & Budget

Schlichting, Kimberly DEMEC

Sebastian, Suzanne E. DNREC/Delaware Energy Office

Smisson, Jr., Charlie T. DNREC/Delaware Energy Office

Stone, Jeff DEDO (DE Econ. Develop. Office)

I. CALL TO ORDER AND WELCOME - Chair David R. Hodas:

The Governor’s Energy Advisory Council Meeting was brought to order at 9:37 a.m. by Chair David R. Hodas on May 24, 2007, in Conference Room No. 133 of the Haslet Armory, Legislative Avenue, in Dover, Delaware. Chair Hodas welcomed everyone, introductions were made, and handouts were made available including copies of the April 26, 2007 G.E.A.C. Meeting Minutes.

II. OPENING COMMENTS - Chair David R. Hodas:

The minutes of the April 26, 2007 meeting were approved, accepted, and adopted by the Council.

Charlie Smisson stated that Jan Anderson will be retiring effective 8/1/07. Chair Hodas said “oh no…what are we going to do”. Phil Cherry said “wish her well”.

This Secretary appreciates all of the Council Members’ well wishes. After 48 years in the Secretarial field and 24 years with the State of Delaware, I am joining my husband in retirement. We hope to do whatever it takes to “enjoy life” together – as this October 22nd, we will be happily married 41 years.

III. REVIEW OF LAST MEETING ACCOMPLISHMENTS – Chair David R. Hodas, Charlie T. Smisson, Jr.:

Chair Hodas stated that he thought we had a pretty useful meeting last month when Senator Harris B. McDowell, III spent a fair amount of time going over his Legislative package that is laid out in the April 26, 2007 minutes which were very well prepared.

Governors Energy Advisory Council

Meeting Minutes of May 24, 2007

Page 2

IV. LEGISLATIVE UPDATE – Charlie T. Smisson, Jr.:

Chair Hodas asked Charlie Smisson to update the Council on Senator McDowell’s Delaware Sustainable Energy Utility Plan. Charlie stated that Senate Bill 18 (Delaware Sustainable Utility Bill) did pass the Delaware Senate by a vote of 19-1. It was revamped at the request of certain Senators into a substitute so it is actually Senate Substitute 1 for Senate Bill 18 now. It does create the Sustainable Energy Utility. It was required to be a 75% vote in order to pass because of the Bond issues in the bill, and it did get that majority in the Senate of 19-1. It will go into House Committee on June 12, and thence forward in the House. Charlie also said that none of the other legislation has been brought forward for a vote yet. The RPS Bill was on the Senate Agenda. Senator McDowell did not work it for some reason. It has been pulled from the Agenda. I do not know when he expects to try to get it through the Senate.

Charlie stated that the Bill that would update the Net Metering Standards still has to go through Committee (Senator Simpson’s Bill) – probably during the first week that the Legislature comes back into session in June.

Charlie also said the other Bill to introduce the Green Energy Fund is in limbo – it has not been introduced yet.

Phil Cherry stated this week that three State of Delaware agencies – OMB, Controller General’s Office, and DNREC in some respects affirmed the previous action of the PSC on May 8 when the Commission voted to authorize Delmarva to negotiate with Blue Water Wind for an offshore wind facility of some size contemplated within the 200 to 300 range. Another point that was critical in the discussion was PSC staff’s proposal that there be some “backup generation” for times when the wind was not blowing. The agencies there again affirmed the Commissions initial thoughts that both NRG and Conectiv should be given the opportunity to bid on that “backup generation” in the spirit of competition. The staff report suggested that it be “gas-fired” backup.

V. DELAWARE ENERGY PLAN 5-YEAR REVISION, David R. Hodas:

Chair Hodas started out by saying he wanted to – just for a moment - bring in a “macro view” of things that are going on. He said it looks like from an “International” level, we cannot rely upon negotiations or anything else to really solve the problem. The problem of energy and climate change is going to come down to what “we do”. There was just a recent meeting of the 15th session of the Commission on Sustainable Development at the United Nations where principles for energy and principle policies were discussed. No one could come up with a joint statement for anything. No one could agree on anything. The only thing agreed upon was to meet next year. We cannot look to leadership at the international level until January 21, 2009 when the United States has a new administration. Whatever deal the United States, Europe, and China agree to, is going to

Governors Energy Advisory Council

Meeting Minutes of May 24, 2007

Page 3

be “the” deal for climate change.

Chair Hodas said that starting in 2009, we need to look more closely at energy efficiency, and renewables, and in particular where we are going to go. He said a couple recent reports came out. One in Science Magazine last week – that showed the oceans have risen almost 75% - 80% faster than the models predicted – and the ocean is becoming more acidic.

Regarding the “Energy Plan”, Chair Hodas stated that his view is that someone needs to update all the data, i.e., what energy we are using. Focus on identifying the recommendations from the Task Force that have been met as well as the ones that have not been met; the ones that have not been addressed; and I think the Energy Plan should look at the various ways of addressing the unmet needs not addressed in the last Task Force report, i.e. transportation, efficiency. Chair Hodas said it would be nice if we could figure out some way of finding out what the results have been from the recommendations that have been implemented.

Chair Hodas also said there are a lot of issues that still need to be addressed – certainly the “Energy” issue relating to Urban Sprawl, and Climate Change.

Chair Hodas stated he would like some other input since Charlie Smisson needs to put out an RFP request for proposal to get some Consultants for the new Energy Plan; and I told him that after this meeting, he can go ahead and do it. Previously, it has been requested of this Council to make any input known through emails or personal contact – today is your last chance to say what you think should be in the Energy Plan as we design how it should be put together. Resources are limited, and we cannot look at everything.

Sarah Buttner said she thought we need to tie this into one big picture – how much energy does the state need, and where are we going to get it. Chair Hodas said regarding the Energy Plan, public participation is critical. The public creates the demand.

Chair Hodas said a report, using baseline data, with consensus by the Council on what data to use, should be completed and recommendations made by this Council. Suggestions were made to outline broad objectives, identify specific strategies, policies, and targets based on what is happening in other states.

Charlie Smisson stated that for the last Energy Plan, we had six different committees – the Conservation and Efficiency Working Group, the Conservation and Efficiency Transmission and Distribution Group, Diversity of Fuels, Transportation of Fuels, Economic Development, and State Procurement. There were anywhere from 10-25 people on each committee. Chair Hodas asked how that worked procedurally since he was not involved in it. Charlie said procedurally, we had a Consultant at that time who

Governors Energy Advisory Council

Meeting Minutes of May 24, 2007

Page 4

was Ralph Nigro from Applied Energy Group. Each of the working groups had a Chair; and each had a series of meetings for a period of about a year. They actually put together the recommendations that went into the report Bright Ideas for Delaware’s Energy Future. The Governor’s Office played a major part – Andrea Kreiner was the Governor’s Energy Advisor at that time; and between Andrea and Ralph – they basically came up with a list of To Do’s for the various working groups to accomplish. Then each of the Chairs of the working groups drove the process within the working group. Then the working groups had their recommendations, and formed a smaller group. They then took about 6 months to take the whole package and intertwine it to see what made sense for the Task Force.

For clarification, Sarah Buttner asked what is the Council expecting this report to do – should it be on driving policy on how much energy the state is expected to use, etc..

Chair Hodas stated that by statute, the Council is supposed to report and make recommendations to the Governor; and we MUST present a new Energy Plan. The question was asked “when does the new Energy Plan have to be completed? Charlie Smisson said September 30, 2008 is five years since the original Energy Plan was created. Chair Hodas said the Council should shoot to have it completed if not by September then by the Fall of 2008 so that our input can be part of the Legislative process. Charlie Smisson stated that at that time, there will also be a new Governor elected. Chair Hodas said that Governor Minner has not asked this Council for any input on the current RFP. Chair Hodas suggested that the end of October 2008 should be our deadline so that we would have a little more time to work on it. He said an RFP should be put out soon so that at the end of the summer when the Council reconvenes in September, at that meeting we will be talking about meeting with a Consultant. Charlie Smisson said that the time frame should work out if we come up with a draft of an RFP and present it to the Council at the June meeting. Normally, the Council does not meet in July and August. By the time our September meeting, we should have gone through the RFP process and have a Consultant hired. Chair Hodas asked that Charlie prepare an RFP so that the Council can take a look at it at the June meeting. If we get the go-ahead, we can have it advertised and run through the process, so that within two months, we can have someone hired. It was suggested by a Council member that the RFP be reviewed before the next meeting so that it can be voted on at the June meeting. Chair Hodas asked if Charlie Smisson can get out a draft in 2 weeks so that people can comment on it by email, etc. Phil Cherry stated that possibly an evaluation team be appointed to review, rank and score the RFP before the next meeting so that Charlie Smisson can have some comments and/or revisions to the RFP as input to bring to the meeting.

VI. MISCELLANEOUS COMMENTS:

Charlie Smisson said he wanted to make a couple of announcements with the Chair’s permission – recapping that he said at the beginning of the meeting that Jan Anderson is

Governors Energy Advisory Council

Meeting Minutes of May 24, 2007

Page 5

retiring as of August 1, 2007. He also said that Sandra Burton, our Energy Efficiency Coordinator, has taken a job with Sun Edison. She was running the Delaware Energy

Answers Program. Her last day was May 18. She had developed a good framework. The Energy Answers Program will continue with the existing Delaware Energy Office staff. Someone asked who the contact person will be. Charlie said for the Delaware

Business Program, it will be Kevin Yingling; for the Appliance Grant Program it will be from our office. Chair Hodas asked if people will be hired to replace Jan and Sandra. Phil Cherry stated that at the present time, Sandra will not be replaced until the outcome of the SEU vote is known. Charlie Smisson said he will be replacing Jan.

Charlie also stated that the Delaware Energy Office is moving on May 29 to a new location at 1203 College Park Drive, Suite 101, Dover, DE 19904 – which is off of College Road in North Dover. The new location is larger and will give us all more room. We will also have a much larger conference room. Our new telephone number will be 302-735-3480 effective May 30, 2007.

Also, Charlie said it is Phil Cherry’s birthday today…he said he is “39” today.

Phil Cherry distributed a chart handout entitled Greenhouse Gas Cap-And-Trade Proposals in the 110th Congress which is just fresh off the press. Phil said that “Economy-Wide (Multi-Sector) Legislation” is on one side and “Electricity Sector Legislation” is on the flip side of the chart.

Chair Hodas said for those who are interested in following what is going on in Congress, there is a service called Energy Environment News (). You have to subscribe to it. It reports every day that Congress is in session. It reports everything that is going on in Congress on energy and environment – every bill, every hearing, and they have background reports and report on hearings and also report interviews on the web ().

Sarah Buttner suggested that a short message be emailed to the Council after today’s meeting about the RFP coming out, and their comments need to be communicated soon thereafter before the June 28 meeting.

VII. OLD BUSINESS: There was no old business discussed.

VIII. NEW BUSINESS: There was no new business other than what was discussed at today’s meeting.

Governors Energy Advisory Council

Meeting Minutes of May 24, 2007

Page 6

IX. NEXT MEETING:

The next meeting will be held as noted below.

June 28, 2007 – 9:30 a.m. to 11:30 a.m.

Conference Room No. 133 – HASLET ARMORY,

122 William Penn Street,

Dover, Delaware

X. ADJOURNMENT: Today’s meeting was adjourned at 11:30 a.m.

____________________________________________

Jan Anderson, DEO, Recorder/Transcriber

(f:\Energy\Gov’s Energy Advis. Council\5-24-07 Meeting Minutes

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download