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ENERGYnews

Monthly News from the Commerce Energy Division

February 2019

2019 Biennial Energy Report

The 2019 Biennial Energy Re-

port has been published and is

ready for reading. This years re-

port provides analysis in:

Deep decarbonization & elec-

trification

Energy efficiency & renewa-

ble energy

Updated fuel mix disclosure

mechanism

Equity considerations in the

clean energy transition

Energy resilience

Investment

Regional energy issues

Update on Clean En-ergy Fund Programs

The Grid Modernization applica-

tion period closed Dec. 28. We

received 5 applications. After go-

ing through the review period,

awardees will be announced on

February 22.

The Electrification of

Transportation Systems

(ETS) Public Comment Pe-

riod Planned for March.

The Advisory Committee for

the ETS program met in Janu-

ary to discuss the development

of the program and will contin-

ue to meet in February. Once

the program documents are

fully drafted, there will be a

two week public comment peri-

od. The public comment period

is planned for March.

Once the program is finalized

and approved, the application

will be open for a minimum of

a month. Local Government

and Retail Electric Utilities are

eligible to apply.

Website: https://

www.commerce.wa.gov/

growing-the-economy/energy/

clean-energy-fund/

electrification-of-

transportation/

Proviso: Capital Budget: Section

1013

Questions:

CEF@commerce.wa.gov

Energy Efficiency and Solar Program

The Energy Efficiency and Solar

(EE&S) application period

closed on December 31. We re-

ceived 87 applications, over half

were for solar projects. The Gov-

ernor’s budget has a $35 million

request for this program (up

from $10 million this year).

Awardees should be announced

by April 15.

Energy Efficiency Improvements to Minor Works and Stand-Alone

Projects

The Washington State Depart-

ment of Commerce is delaying

the application cycle for the En-

ergy Efficiency Improvements to

(Continued on page 2)

What’s happening in the Energy Division?

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Minor Works and Stand-Alone

Projects for state-owned facilities

until Summer 2019. This re-

scheduling is based on the need

to revise authorizing language

included in the 2018 capital

budget bill. This language and

the reappropriation of the $1.4

million in funding authorized for

2018 have been included in the

Governor’s 2019-21 Capital

Budget. In addition, the pro-

posed Governor’s Capital budget

includes an $15 million in new

funding for these activities. Pro-

gram requirements and applica-

tion procedures will be an-

nounced in Summer 2019.

Legislative Session is underway

We started the first day of ses-

sion with 4 fiscal note requests

and have been doing them stead-

ily since. To date we have had :

HB 1110 SHB 1110 HB 1113 SB

5412 & S-1136.1 on Green-

house Gas

HB 1112 SHB 1112 SB 5426son

Hydrofluorocarbon

HB 1127 & HB 1664 Transporta-

tion Electrification

HB 1211 and HB 1226 on Clean

Energy

HB 1257 & SB 5293 on Energy

Efficiency

HB 1428 Electricity Product At-

tributes

HB 1444 and SB 5115 on Appli-

ance Efficiency

S-0041.1 Net Metering

SB 5116 Clean Energy

SB 5223 & SSB 5223 Net Me-

tering

SB 5629 Modular Reactors

Touring the Skagit Riv-er Hydroelectric Project

The State Energy Office new

Energy Emergency Planner,

Elizabeth King, had a tour of

the Seattle City Light (SCL)

Skagit River Hydroelectric Pro-

ject on January 23, 2019. The

Newhalem Fire Brigade Chief

(Cody Watson) invited a group

to allow us to better understand

the risk they faced during the

2015 fire season. The SCL

Emergency Manager (Brian

Hovde), and SCLs Strategic Ad-

visor for Climate, Environment

and Land, and other members

from WA Emergency Manage-

ment Division spent the morn-

ing touring the Diablo and Ross

Dam Facilities, and the after-

noon discussing the SCLs expe-

rience with the 2015 Goodell

Creek Fire.

This was a great opportunity to

bring together partners to talk

about electric providers and

how they need to be included in

the coordination efforts around

wildland firefighting that im-

pacts generating facilities and

transmission lines. During the

discussion in the afternoon we

began planning a pre-wildland

fire season workshop to bring to-

gether electric utilities, DNR

wildfire management teams, State

Fire Marshalls Office, local emer-

gency management, local fire dis-

tricts, and many other key stake-

holders to share lessons learned

and talk about mitigation projects

that could be implemented across

the state.

Weatherization Plus Health Expands Health

Benefits Documentation

Commerce’s Weatherization Plus

Health and the Washington State

University Energy Program are

bringing on new research part-

ners,Three3, Ellen Tohn and As-

sociates, and the National Center

for Healthy Homes

(NCHH). This team of national

experts will help Commerce and

the WSU Energy Program detail

improved health outcomes to cli-

ents receiving Weatherization

Plus Health services and estimate

health benefit values.

Over the next six months the

team will develop:

Legislative and stakeholder brief-

ing materials to explain Weatheri-

zation Plus Health medical out-

comes and benefits.

Tools that estimate medical/

health benefits from the Weather-

ization Plus Health work data.

Analysis of future options for ser-

vices to low-income households

and hard-to-reach market

rate residential households.

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Renewables

Another dam study? Give us a break—Union-Bulletin

Oregon could effectively ban solar farms, but first a bunch of new ones will be built—Statesman Journal

Tenino Works with Portland-Based Nonprofit to Create Renewable Energy Economy ‘Living Lab’ - The Daily Chronicle

Clallam County PUD community solar project part of microgrid – American Public Power Assn

Water heater innovation could boost NW renewable energy development - BPA.gov

Green New Deal: Is 100% Renewable Energy Even Possible, or Good for the Environment? - Investor’s Busi-ness Daily

PSE funds five solar projects through Green Power program grants—The Suburban Times

Electric Vehicles

Paccar rolls out zero emission electric Kenworth truck with Toyota at CES—Bizjournals

Dutch electric scooter tempts US riders with modular batteries, zippy sprint and lots of storage—New Atlas

Forget light poles, British firm to build chargers from cable boxes—Green Car Reports

Shell acquisition of charging network Greenlots points to juice as the new gas—Green Car Reports

Survey: 1 in 9 Americans would consider buying an EV – Utility Dive

Carbon and Climate

U.S. Carbon Emissions Surged in 2018 Even as Coal Plants Closed - NY Times

Sucking carbon dioxide from air is cheaper than scientists thought - Nature

U.S. energy-related CO2 emissions increased in 2018 but will likely fall in 2019 and 2020—EIA

Sorry, but you’ve got a gas emissions problem – Grist

Washington’s greenhouse gas emissions spiked 6 percent in most recent tally - Seattle Times

Ocean mixing that drives climate found in surprise location—AP News

Science Says: Get used to polar vortex outbreaks—AP News

Energy Efficiency & Health

In the Rush to Join the Smart Home Crowd, Buyers Should Beware —The New York Times

Other

Wyoming lawmakers look to sue Washington state over coal —The Spokesman Review

2019 Fuel Economy Estimates are now available at www.fueleconomy.gov

Washington State Department of Commerce

1011 Plum St SE, Mail Stop: 42525

Olympia WA 98504-2525

To sign up for the newsletter send an email to: energy_policy@commerce.wa.gov

Rather read the highlights on a blog? We’re at http://www.commerce.wa.gov/energy-blog/

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River & Snow Pack Report

Observed Dec. stream flow at The Dalles: 84% of average.

Observed Dec. precipita-tion above The Dalles: 64% of average.

Est. 2018 Final runoff at The Dalles (Jan.—August) January:

93.5 million acre-feet

92% of normal

Estimated regional snow-pack: m id Jan. 93% of nor-mal

Federal hydropower gener-ation in Jan.:

7,578 aMW

5-year average: 9,402 aMW.

Reservoir content (Libby, Hungry Horse, Grand Coulee, Dworshak) in January:

70%

5-year average: 69.7%

Petroleum: After declining

in December, the West Texas In-

termediate (WTI) crude oil spot

price reversed course during Jan-

uary; starting the month at just

over $48 per barrel and ending

at $52 per barrel. During this

time frame, the international

Brent oil price increased from

$57 to $60 per barrel. The in-

crease in spot crude oil price is

being attributed to growing in-

stability in Venezuela. Saudi Ara-

bia has also reduced oil produc-

tion in order to shore up oil pric-

es. The average West Texas In-

termediate price for the month of

January was $51.0 per barrel.

The charts enclosed in the news-

letter illustrate the trend in an-

nual average WTI oil price as

well as Sumas and Henry Hub

natural gas price from 2002

through 2018: expressed in nom-

inal and constant 2005 dollars.

Transportation Fuels: Be-

cause crude oil prices have stayed

within a relatively narrow band

for the last two months, trans-

portation fuel prices at the na-

tional level remained relatively

stable during January. National

gasoline and diesel prices at the

end of January were $2.26 and

$2.97 per gallon respectively.

Diesel fuel continues to sell at a

significant premium to gasoline.

The EIA notes that the transition

to new low sulfur requirements

for marine fuel is globally putting

upward pressure on diesel prices

and that this pressure will persist

for several years. In Washington

State, average gasoline and diesel

prices continued to decrease dur-

ing January. Relative to the last

week of the previous month,

state gasoline and diesel prices

were 15 and 13 cents per gallon

lower: Gasoline $2.91 per gallon,

diesel at $3.17 per gallon.

Natural Gas: The average

Henry Hub natural gas price for

January decreased by 15 percent,

relative to the previous month, to

$3.18 per MMBtu (this was be-

fore the polar vortex event). Spot

natural gas prices at Sumas have

stabilized as the Enbridge pipe-

line is operating at or near full

capacity: January average price

was $3.59, versus $5.73, and

$17.47 per MMBtu in December

and November respectively. Na-

tionally, natural gas storage de-

clined by 173 Bcf to 2,197 Bcf and

are 13% below the 5-year aver-

age. In the Pacific region, Janu-

ary was a mild month and stor-

age draws were modest. Pacific

region storage levels are 26% be-

low the 5-year average.

Electricity: The Mid-Columbia

average spot (peak) market price

for January declined relative to

the December but was still high

relative to year ago prices: $33 vs

$22.1 per MWh. Part of the rea-

son for the higher spot prices is

that federal hydropower genera-

tion was significantly lower in

January 2019 compared to Janu-

ary 2018: See river flows and hy-

dro generation, see tables.

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Do

llars

pe

r M

MB

tu

Sumas/Kingsgate Spot Natural Gas Price: Annual Average, Nominal and Constant 2005$

Sumas/Kingsgate spot gas price

Sumas/Kingsgate spot gas price

const 2005$

2

3

4

5

6

7

8

9

10Ce

nts

per

Kw

h

Washington State Electricity Rates by Sector: Jan. 2005 - Nov. 2018

Residential

Commercial

Industrial

All Sectors

EIA: Electric Power Monthly

6

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Do

llars

pe

r b

arre

l

WTI Spot Price: Annual Averages in Nominal and Constant 2005$WTI spot price

WTI spot price const. 2005$

Energy Price Summary, January 2019 Current Month Ago Year Ago

Monthly Range at Mid-C (Peak: $ per MWh) 26.5-46.0 34-112 15-37

Average Mid C price (Peak hours $ MWh, current month) 32.5 49.0 22.1

Electricity WA Ave. Retail: November (cents/kWh) 8.04 7.95 8.13

Natural gas Suma spot price (weekly ave : $ per million BTU) #DIV/0! 4.02 3.02

Natural gas Sumas futures price (next month $ per million BTU) 3.59 4.05 2.51

Natural gas Sumas monthly average: November ($ per million BTU) 10.75 3.19 2.57

Natural gas H.H. futures (NYMEX next month: $ per million BTU) 3.13 3.95 3.14

E85 (national average: $ per gallon gasoline) 2.59 2.67 2.56

Ethanol (CBT next month contract: $ per gallon) 1.30 1.30 1.42

Corn (CBT next month contract: $ per bushel) 3.77 3.82 3.60

Petroleum, West Texas Intermediate futures ($ per barrel) 51.0 49.0 63.1

Seattle gasoline price ($ per gallon, last week of the month) 3.12 3.34 3.04

U.S. gasoline price ($ per gallon, last week of the month) 2.63 2.64 2.63

Gasoline futures (NYMEX next month: $ per gallon) 1.39 1.39 1.85

State diesel price ($ per gallon, last week of the month) 3.17 3.34 3.17

Heating oil futures (NYMEX next month: $ per gallon) 1.84 1.81 2.08

U.S. residential heating oil price (weekly ave. $ per gallon) 3.35 3.36 2.75

U.S. residential propane price (weekly ave. $ per gallon) 2.43 2.44 2.57

Ethanol E85 ($ per gas gallon equiv.) 3.06 3.81 3.52

Biodiesel B20 ($ per diesel gallon equiv.) 3.12 3.12 3.08

Biodiesel B99-100 ($ per diesel gallon equiv.) 3.91 4.06 3.93

Compressed Natural Gas ($ per gas gallon equiv.) 2.22 2.47 2.48

Propane ($ per gas gallon equiv.) 3.85 4.04 4.21

Clean Cities: Alternative Fuel Price Report, July 2018 Current qtr

US avg

Current qtr

west coast

Last qtr avg

west coast

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U.S. Energy Information Administration

Annual Energy Outlook 2019

Electric Power Monthly

Monthly Biodiesel Production Report

Monthly Crude Oil and Natural Gas Pro-

duction

Monthly Energy Review

Monthly Solar Photovoltaic Module Ship-

ments

Natural Gas Monthly

Petroleum Marketing Monthly

Petroleum Supply Monthly

Short-term Energy Outlook

State Carbon Dioxide Emissions

This Week in Petroleum

WindIQ—online database of wind projects

Regional Power Flow

Intertie Average

power flow

Direction

California (AC+DC) 3,134 mw Export to California

Canada (BC) 233 mw Export to Canada

Total 3,367 mw Total export

River Data

Data for Nov. 7 Outflow

(kcfs)

Ave. outflow for

last 10 years

(kcfs)

(Snake)

Lower Granite 23.3 32.3

(Columbia)

The Dalles 121.3 149.2

Events Coming Soon

Smart Energy Summit: Engaging the Consumer—Austin TX, Feb 18-20

Healthy Home Training for Building Professionals—Bellevue, Feb 21-Apr 11

AWEA Wind Project O&M and Safety Conference—San Diego CA, Feb 27-28

2019 Passive House Northwest (PHnw) Annual Conference—Portland, Feb 28-March 1

2019 National Home Performance Conference & Trade Show—Chicago IL, April 1-4

Efficiency Exchange 2019—Coeur d’Alene ID, May 14-15

North American Smart Energy Week—Salt Lake City, UT, Sept. 23-26

Federal Funding Opportunities

DE-FOA-0001990 Advanced Tech for recovery of

unconventional oil & gas resources—applications

due Feb. 25

DE-FOA-0002058 Notice of Intent—Carbon Cap-

ture Systems on Coal and Natural Gas Power

Plants—Feb. 28

Request for Proposals—Fuel infrastructure—due

Mar 1

DE-FOA-0001993 University Turbine Systems Re-

search—Applications due March 4

DE-FOA-0002051 ARPA-E: Aerodynamic turbines

(ATLANTIS) Concepts due March 18

DE-FOA-0002000 Request for Info: Regional Ini-

tiative to Accelerate Carbon Capture, Utilization

and Storage Deployment—due March 25

DE-FOA-0002041 New Bio-imaging Approaches

for Bioenergy—pre-applications due April 4