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Southern Idaho Energy Development

According to Idaho Power:


On an average day, 1 megawatt is enough to power 650 homes.


On a peak summer day the same
650 homes would use up to 4
megawatts.


Idaho Power is in the process of upgrading the major power lines from the coal powered plants in Wyoming and Montana. Link to Idaho Power Plans


Wind Energy

Sierra Pacific Resources and Renewable Energy To Develop Large Wind-Energy Project
Sierra Pacific Resources and Renewable Energy Systems Americas Inc. are working on an agreement to jointly develop and operate a large wind-energy project in northeastern Nevada and southern Idaho. Located on a mix of federal, state and private lands, the proposed China Mountain project could generate more than 200 megawatts of electricity. The project would use state-of-the-art, large-scale wind turbines to produce electricity going into Sierra Pacific Resources' power grid.
The agreement between Nevada-based Sierra Pacific and RES Americas, part of the Britain-based Sir Roger McAlpine Group, would be subject to approval by the state Public Utilities Commission. The project must go through an environmental review process, in line with federal law. A notice for preparation of an environmental impact statement is expected in early 2008.


Geothermal Energy

Potential Development

Geothermal Energy in Idaho
Electric
Resource Potential
366-1195 MWe
Installed Capacity
10 MWe (planned)
Geothermal Electric Generation
None to Date
Thermal
Resource Potential
2758 MWt
Installed Capacity
98 MWt
Energy Generation
333,000 MWht

In addition to the Raft River project site, two other locations in southeastern Idaho are being investigated for potential electricity generation. The high temperature geothermal resource of the China Cap site in Caribou County has an estimated capacity up 100 megawatts, and power development proposed near Willow Springs has the potential to deliver another 100 megawatts to the Idaho grid. The potential for power production in Idaho has been estimated between 366 and 1,195 MWe (megawatts electric), depending on different development scenarios.
Using the Idaho Power formula above, this would indicate 237,900 to 776,750 homes on a normal day and 59,475 to 194,187 homes on a peak summer day.


Direct-use applications are also being replicated throughout Idaho, with proposed projects including the installation of additional geothermal greenhouse acreage, the expansion of district heating systems, and the promotion of geothermal heat pumps. The thermal potential for direct use in Idaho has been estimated by the United States Geological Survey at 2,758 MWt (megawatts thermal).

Economic Benefits
Greenhouses and aquaculture facilities in Idaho are able to increase their competitive edge by taking advantage of energy cost savings possible through the use of geothermal energy, and the state's geothermal greenhouses and aquatic hatcheries provide hundreds of jobs, typically in rural areas. A significant cost savings is realized through Idaho's use of geothermal district heating systems. Natural gas costs would total approximately $2 million annually to provide energy for space heating equivalent to the amount supplied by Boise's four district heating systems. Idaho's tourism industry is also enhanced by geothermal springs that draw many visitors annually to towns such as Lava Hot Springs, where the local economic base relies in large part on tourist spending.


Technical Capabilities

The Idaho National Laboratory houses national expertise in the research and development of geothermal energy resources. The laboratory maintains databases of geological characteristics to aid in the characterization and development of geothermal reservoirs nationwide. Additionally, the Energy Division of the Idaho Department of Water Resources provides technical support for geothermal projects in the state and conducts educational outreach activities to promote further geothermal development.


State Incentives
With passage of the Energy Policy Act of 2005, the national Production Tax Credit (PTC) was extended to include geothermal facilities in operation by January 1, 2008. The PTC is an incentive of 1.5¢ per kWh for electricity produced from renewable sources during the first ten years of a new facility's operation.

The Bonneville Environmental Foundation (BEF) provides financial support to the Pacific Northwest states of Oregon, Washington, Idaho, and Montana for projects that develop renewable sources for the generation of electricity or thermal energy. Geothermal development projects are eligible for support upon acceptance of proposals from private developers, local governments, or tribal organizations. More information on the BEF grant process can be found at http://www.b-e-f.org/grants/.

Idaho provides individuals with income tax deductions for alternative energy devices installed in their homes. Qualifying devices include renewable energy systems using geothermal resources such as geothermal heat pumps and water source heat pumps. The entire cost (100%) of the residential geothermal energy system can be deducted from the taxable income up to a maximum of $20,000. However, the deduction cannot exceed $5,000 in any one year. Forty percent of the total cost to construct and install the system can be deducted in the year the device was put into service, and 20% for the next three years. Contact http://www.tax.idaho.gov for details.

Passed by the Idaho legislature and signed by the Governor in 2005, HB110 provides sales and use tax rebates for the sale or use of machinery and equipment used in alternative methods of generating electricity. Qualifying facilities include geothermal power generation and must be at least 25 kilowatts in capacity. To qualify for the rebate, the taxpayer and his contractors must pay the sales and use tax on the purchase of machinery and equipment. Visit http://www.legislature.idaho.gov for details.

The Idaho Energy Division administers a low-interest loan program to finance the development of energy conservation or energy generation projects that utilize renewable energy resources, including geothermal systems. These may include geothermal heat pumps and water source heat pumps for residential space heating, geothermal heating systems in greenhouses, or geothermal space heating in commercial buildings. The loans are offered at four percent interest rate and must be repaid in five years. The program provides residential loans from $1,000 to $15,000, and $1,000 to $100,000 for commercial loans. In other sectors, there is no minimum and loans may go up to a maximum of $100,000. Contact http://www.energy.idaho.gov for details
.

Ethanol Production = Opportunity for Rural Idaho

Using agriculture products as feedstock, four new ethanol plants have the potential to create 1,900 permanent new jobs, $58 million in household income and $11.3 million in new tax revenues for the state's economy, according to the Idaho Energy Division.

Another 3,800 direct and indirect jobs could be created from the four plants that could produce 98 million gallons of ethanol annually. That amount of ethanol would consume 25 percent of the wheat, barley and corn produced in each Idaho county.

(Clearly, ethanol production has the potential to add significant value to local crops currently exported out of the state, said John Crockett of the Idaho Energy Division.

The assessment, produced by BBI International of Colorado, looks at the potential economic benefits to the state and the return on investment of any existing or proposed state ethanol incentives.

The study does not look at whether ethanol production is feasible in Idaho, but rather what the economic impacts would be if the four plants were built.

BBI International's assessment ranked the counties with the highest potential for ethanol production based on the availability of feedstocks for the plants. The top ten counties were: Bingham, Cassia, Power, Latah, Lewis, Canyon, Bonneville, Nez Perce, Jefferson and Twin Falls.

(Ethanol is far more than just a renewable fuel," said Crockett. "It cuts down on our need for imported oil. It helps air quality. But more importantly, it has enormous potential for creating new markets for Idaho crops and adding jobs, income and tax revenues to our state's economy."

Canola yield light, but growers pleased with first crop
By Blair Koch
Diversified Fuels of Buhl harvested their first canola crop last week. Photo by Blair Koch
Ag Weekly correspondent

BUHL, Idaho - The whirl of the combine came and went as it traveled back and forth, harvesting 15 acres of canola. The hoops and hollars of joy and laughter remained constant as officials with Diversified Fuels and the crop’s growers watched.

Last week’s harvest was a momentous occasion for the company, which will break ground on its state-of-the-art, seed-processing facility in Buhl later this month.

"The crop was a little light on yield but we are pleased with the results, especially since this was our first-ever attempt at growing canola," said Diversified Fuels Project Manager Matt Smith.

University trials for the seed type, Monsanto DKL 52-10RR, were 2,201 pounds per acre. The 15 acre field grown in front of Diversified headquarters yielded 1787 lbs./acre and another 9-acre field, east of Buhl on Poleline Road yielded 1,082 lbs./acre. In total, the company harvested 36,540 lbs. of canola seed between the two fields.

"We’re really still flying by the seat of our pants here," said John O’Connor, farm manager and Diversified Fuels consultant. "But I think this could really mark the beginning of a new era."
Growers will be looking at planting winter canola later this year, said Buhl farmer Joe Hulse, who farmed the 15-acre canola field.

"It was a lot like raising a crop of barley. It wasn’t a bit of trouble," Hulse said. "We’ll be planting winter canola this fall, and we’re told it will yield more - but it’s all about seeing if we can make some money on it."

O’Connor explained that contract details for growing canola locally are still being worked out.

Diversified Fuels expects to create a market for 250,000 acres worth of locally grown canola by the time their proposed seed processing/biodiesel facility is running at capacity, producing 40 million gallons of biodiesel in Buhl alone.

The facility will be designed by DISCO Associates located in Salt Lake City with a total project cost estimated at $125 million.

Smith explained the company will focus on winter canola, which field trials range between 3,500 and 4,000 lbs./acre.

"Our design criteria for the plant is 1,500 pounds per acre for spring canola and 3500 pounds per acre for winter canola," he said.

As for the 18 tons just harvested, the company has arranged for it to be sold as feedstock to a local dairy, said Diversified President Stace Campbell.

"We even got the combine from down the street from Buhl Implement, we’re bringing everybody local in that we can," Campbell said.

Idaho Legislation for Renewable Resources

3.5.2. Developing in state renewable resources
Idaho currently imports more than 80 percent of its energy needs. While developing in state resources would create jobs and result in economic benefits to Idaho, the state lacks conventional resources such as coal, oil and natural gas. The resources that can be developed in Idaho in the near future are renewable resources such as wind, geothermal, small hydro and biomass (for either electric generation or the production of biofuels such as ethanol or biodiesel). Developing in state renewable resources will contribute to a secure, reliable energy system by reducing dependence on remote resources that must be transported over long distances (although care must be taken to ensure that intermittent resources such as wind energy can be integrated reliably). In addition, renewable resources provide fuel diversity, reducing Idaho’s exposure to high and fluctuating natural gas, oil and coal prices. In-state renewables also typically have superior environmental attributes because of substantially reduced air and water emissions, including carbon dioxide. Finally, in state renewable resources contribute to economic growth by creating jobs and tax revenues in Idaho, frequently in rural areas that are most in need of new economic stimulus. Cost is the principal barrier to increased investment in local renewable resources. Renewable resources can be more expensive than conventional resources, and the Committee wishes to avoid burdening Idahoans’ energy bills with needless investment in high-cost resources. While the Committee endorses renewable resources in general because of the many benefits they provide, it declines to adopt specific targets or standards out of concern that setting arbitrary targets could conflict with the goals of maintaining Idaho’s low-cost energy supply and ensuring access to affordable energy for all Idahoans. The Committee is also concerned that adopting firm targets may not provide sufficient flexibility for Idaho energy providers given the rapid development of new energy technologies. At the same time, the Committee recognizes that new technology has reduced the cost of renewable resources in recent years just as the cost of fossil fuels has increased. This has made some renewable resources cost-competitive today, particularly when considering their human health and environmental benefits and the fact that re-newables are not subject to fuel price volatility. This Energy Plan contains a number of recommendations that would further reduce the cost of renewable resources in Idaho and help make them more competitive with conventional resources.

3.5.3. Environmental impacts and carbon regulation
Large energy facilities can have significant and complex environmental impacts. Generating plants fired by fossil fuels consume large volumes of water and emit carbon dioxide and mercury as well as regulated pollutants such as carbon monoxide, sulfur dioxide, particulates, and oxides of nitrogen. Nuclear power plants pose a safety risk to surrounding communities and create radioactive waste that must be safely stored for thousands of years. Even renewable resources can have large environmental impacts: large hydroelectric facilities can alter stream flows and degrade riparian habitat; wind energy farms have visual impacts and can cause avian mortality; and geothermal energy projects can emit sulfur dioxide gas and are sometimes located in culturally or environmentally sensitive areas.
Link to Idaho Energy Plan


Will MidAmerican build a nuke plant in Payette County?

A subsidiary of PacifiCorp's owner hasn't bought the land but is conducting tests to make sure it's stable. Idaho Statesman 11/4.2007

A newly formed nuclear energy company controlled by billionaire Warren Buffett's Berkshire Hathaway is considering building a nuclear power plant in northern Payette County.
MidAmerican Nuclear Energy Co., a subsidiary of the Des Moines, Iowa-based MidAmerican Energy Holdings Co., has been doing geologic testing on about 3,300 acres of private land south of Paddock Valley Reservoir.

This is the second proposal for a nuclear power plant in Idaho in less than a year. The first has been proposed on farmland in Owyhee County near Bruneau by a small startup company founded by a former nuclear industry executive.


MidAmerican owns and operates major utilities, including PacifiCorp, Oregon's largest utility, and Rocky Mountain Power, which serves eastern Idaho.

"We're in a very preliminary due diligence process to look at a potential energy project in Payette County," Bill Fehrman, president and chief nuclear officer for MidAmerican Nuclear Energy Co., told the Idaho Statesman on Monday.

MidAmerican joins more than a dozen companies hoping to take advantage of a resurgence in the nuclear power industry. With memories of the Three Mile Island disaster fading, U.S. business and political leaders see nuclear power as a key to meeting energy needs without contributing to greenhouse gases that cause global warming.

The company hasn't yet purchased the land. Fehrman said the landowner does not want to be identified. Fehrman declined to release the exact location. Residents have reported seeing company trucks along Little Willow Road.

Fehrman said the land is being tested for seismic activity to make sure it's stable. The company also has to make sure there is ample water for the project and adequate transmission lines to carry the power.

A decision to buy the land and go forward with the plant probably won't be made until mid to late 2008, he said. If the company decides to build a plant, Fehrman said it could be 10 to 12 years before the plant would operate.


"This is a lengthy and detailed process and we understand that there might be questions from people who live in the area, and we will do the best we can within the process to keep Payette County residents informed," he said. "As soon as a formal announcement is made on what direction we are taking, we will be communicating and having meetings with residents."
The size of the plant hasn't been determined, but Fehrman said most new plants being planned are in the range of 1,100 to 1,600 megawatts. A plant at the upper range could potentially provide more power than all three of Idaho Power's Hells Canyon hydropower dams.


Fehrman said MidAmerican had looked at other sites in the region, but the Payette site appealed to the company because MidAmerican would be able to provide power for its subsidiaries, including PacifiCorp and Rocky Mountain Power, as well as other Idaho utilities like Idaho Power.

He said Payette was also attractive because of its quality of life and its ability to provide a work force. Fehrman said the company also considered Gov. Butch Otter's support of nuclear power.


Ron Wrest, economic development coordinator for Payette County, said the plant would be a big boost to the county's economy.

"We have had a lot of tire kickers talk about big projects, but they don't pan out," said Wrest, who was unaware of MidAmerican's interest until contacted by a reporter Monday. "If they're interested in us, we're interested in them."

Don Gillispie, CEO and president of Alternate Energy Holdings, said he doesn't expect a MidAmerican plant to hurt the 1,600-megawatt plant he's proposing in Owyhee County.

The Payette County plant would be MidAmerican's first nuclear plant. The company has experience building fossil fuel plants and renewable-energy projects like wind power.

Ken Miller, an energy specialist with the Snake River Alliance, says it makes sense for MidAmerican and other power companies to seek out nuclear power. "They need to reduce their carbon footprint, and nuclear has no emissions," Miller said.

But Miller, whose organization calls itself Idaho's nuclear watchdog, said nuclear power still generates radioactive waste that must be disposed of and strains water supplies.


"We take a position that we should be developing renewable energies and getting serious about energy conservation before going down that road," Miller said.

Miller's organization opposes the plant in Owyhee County but hasn't developed a position yet on MidAmerican's interest.

Paul Kjellander, administrator of Otter's Office of Energy Resources, said the state is aware of the project.

"I'm glad to see there is an interest in Idaho," Kjellander said. "If you look at our energy future, nuclear has the potential to play a significant role. The governor supports the concept of nuclear energy, and that may make Idaho a little more attractive."

Kjellander cautioned that nuclear power isn't a full answer to the state's energy needs.

"We can't ignore energy efficiency, demand-side management or renewable resources," he said. "These have to all remain on the table. The reality is that nuclear power is 10 to 15 years away from a reality, and we still have a lot of work ahead of us."

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