Intelligent Energy Choices for Kentucky

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Intelligent Energy Choices for Kentuckys Future

• Kentuckys 7-Point Strategy for Energy
  Independence

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Energy Independence Strengthens National Security
Kentucky can be a national leader in energy
technology and production. We can help the
country move toward greater energy self-reliance.
I intend to put us on such a path. Governor
Steven L. Beshear, March 6, 2008
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Kentuckys 21st Century Challenge

• Meet Kentuckys needs for 40 more energy by 2025
• Develop clean, reliable, affordable energy
  sources
• Improve our energy security
• Diversify our energy portfolio
• Reduce carbon dioxide emissions
• Provide economic prosperity

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Building Upon a Solid Foundation

• HB 299 (2006), Kentucky Energy Independence
  National Leadership Act
• HB 1 (2007), Incentives for Energy Independence
  Act
• SB 196 (2007), Permitting of Energy Facilities
• SB 83 (2008), Expanded Net Metering
• HB 2 (2008), Incentives for Renewable Energy and
  Efficiency

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We Must Act Now

• We must address climate change.
• The U.S. alone controls neither energy prices nor
  supply and demand.
• Our electricity infrastructure requires major
  rebuilding.
• National security is tied directly to energy
  independence.

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Kentucky Envisions the Future

• Significantly reduce carbon dioxide emissions
• Eliminate need for imported oil
• Ensure reasonable energy costs
• Create jobs and grow the economy

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Bold Efficiency Renewable Energy Initiatives

• Renewable and Efficiency Portfolio Standard
  (REPS)
• By 2025, twenty five percent of Kentuckys energy
  needs will be met by efficiency gains, and
  renewable resources such as solar, wind, hydro,
  and biofuels.
• REPS will help us to diversify our energy
  portfolio, help consumers save on energy costs,
  and provide green collar jobs.
• REPS Strategies 1, 2 3

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Bold Efficiency Renewable Energy Initiatives

• By achieving this goal, we will significantly
  reduce our carbon dioxide emissions.
• Kentucky will be positioned to address imminent
  federal greenhouse gas emissions regulations.

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Kentucky Fuels Our Own Transportation Needs

• Alternative Transportation Fuel Standard (ATFS)
• By 2025, sixty percent of transportation fuels
  used in Kentucky will be derived from biofuels,
  coal-based liquids, electricity via hybrid engine
  technologies, and compressed natural gas.
• ATFS Strategies 1, 3, and 4

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Domestic Resources Fuel Our Transportation Needs

• By achieving the ATFS, we will supplant foreign
  petroleum with domestic sources of transportation
  fuels.
• Meeting this standard will help us achieve our
  greenhouse gas emissions goals.

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Strategy 1

• Improve the energy efficiency of Kentuckys
  homes, buildings, industries, and transportation
  fleet.

• Goal Energy efficiency will offset at least 18
  percent of Kentuckys projected 2025 energy
  demand.

Energy efficiency is the fastest, cleanest,
most-cost effective way to reduce our growing
demand for energy and to address climate change
issues.
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Strategy 2

• Increase Kentuckys Use of Renewable Energy

Goal By 2025, Kentucky's renewable energy
generation will triple to provide the equivalent
of 1,000 megawatts of clean energy while
continuing to produce safe, abundant, and
affordable food, feed and fiber.
With less than 3 of our electricity generated
from renewable sources today, Kentucky should
aggressively pursue renewable energy to reduce
GHG emissions and to diversify our energy
portfolio.
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Strategy 3

• Sustainably Grow Kentuckys Production of
  Biofuels

Goal By 2025, Kentucky will derive from biofuels
12 percent of its motor fuels demand (775 million
gallons/year, which represents approximately 20
percent of Kentuckys current transportation
fuels demand), while continuing to produce safe,
abundant, and affordable food, feed and fiber.
Today, Kentucky uses less than 10 of its
potential resources for production of biofuels.
We can significantly grow our agricultural and
forestry resources in a sustainable way to
provide biofuels for transportation.
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Strategy 4

• Develop a Coal-to-Liquids Industry in Kentucky to
  Replace Petroleum-Based Liquids

Goal Kentucky will develop a CTL industry that
will use 50 million tons of coal per year to
produce 4 billion gallons of liquid fuel per year
by 2025.
Key to achieving energy security is use of our
domestic resources. Building on recent
legislative support for CTL facilities, Kentucky
will develop a vibrant CTL industry that will
provide jobs and economic opportunities.
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Strategy 5

• Implement a Major and Comprehensive Effort to
  Increase Gas Supplies, Including Coal-to-Gas

Goal Kentucky will produce the equivalent of 100
percent of our annual natural gas requirement by
2025 by augmenting in-state natural gas
production with synthetic natural gas (SNG) from
coal-to-gas (CTG) processing.
Kentuckians have become increasingly vulnerable
to natural gas supply uncertainties and price
increases in recent years. A strong CTG industry
will provide energy security and economic
development opportunities.
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Strategy 6

• Initiate Aggressive Carbon Capture/Sequestration
  Projects for Coal-Generated Electricity in
  Kentucky

Goal By 2025, Kentucky will have evaluated and
deployed technologies for carbon management, with
use in 50 percent of our coal-based energy
applications.
Kentuckys energy future depends on the success
of carbon capture and storage projects at
coal-based facilities.
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Strategy 7

• Examine the Use of Nuclear Power for Electricity
  Generation in Kentucky

Goal Nuclear power will be an important and
growing component of the nations energy mix, and
Kentucky must decide whether nuclear power will
become a significant part of meeting the states
energy needs by 2025.
With major increases in energy efficiency,
renewables, and cleaner coal technologies, we
still will not be able to achieve GHG reduction
goals and meet projected energy demands.
Kentuckians must decide whether nuclear power
will be an option in our energy future.
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What we are accomplishing

• Reducing carbon emissions
• Using energy more efficiently
• Integrating our agricultural energy sectors
• Using coal cleaner and more efficiently
• Achieving energy independence
• Diversifying electricity generation

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What we are accomplishing

• Reducing carbon dioxide emissions

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What we are accomplishing

• Using energy more efficiently

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What we are accomplishing

• Integrating Energy Agriculture Economies
• We strengthen our energy security while we expand
  opportunities for Kentuckys farmers.
• We will advance Kentuckys biofuel production by
  developing non-food biomass such as algae and
  switchgrass.

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What we are accomplishing

• Using Coal Cleaner and More Efficiently
• Kentuckys coal industry employs more than 17,000
  miners, paying more than 1 billion in direct
  wages in 2006.
• Cleaner coal-conversion technologies ensure a
  stable market for coal in a carbon-constrained
  world.

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What we are accomplishing

• Achieving Energy Security
• Reduce reliance on imported oil and natural gas
• Diversify markets for coal
• Assure Kentucky coal industry does not depend on
  out-of-state exports for viability
• Biomass and renewable resources provide
  sustainable economic development for the state

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What we are accomplishing

• Diversifying Electricity Portfolio

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In Summary

• With this action plan, by 2025 Kentucky will
• Maintain current per capita energy use despite
  major energy growth demands.
• Fully utilize our renewable energy resources.
• Maintain coal production in Kentucky at current
  levels.
• Produce approximately 4 billion gallons of liquid
  fuels from coal.
• Produce annually 135 billion cubic feet of SNG to
  augment Kentuckys natural gas supply.

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In Summary

• With this action plan, by 2025 Kentucky will
• Provide 40,000 new Kentucky jobs by diversifying
  our energy sector.
• Achieve energy independence for Kentucky from
  imported oil.
• Reduce the net carbon emissions by 50 percent.
• Assure the viability of Kentuckys coal industry
  in a carbon-constrained world.  

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Intelligent Energy Choices for Kentuckys Future

• Kentuckys 7-Point Strategy for Energy
  Independence