Kansas' Energy Future
Remarks by Lt. Governor Mark Parkinson
8th Annual Kansas Renewable Energy & Energy Efficiency Conference
Introduction
When it comes to energy, where many see challenges – Kansans see opportunity.
This past January, in her State of the State Address, Governor Kathleen Sebelius set the goal of Kansas receiving ten percent of our electricity from renewable sources by 2010, and twenty percent by 2020.
Our unique location makes Kansas ideal for the production of ethanol and wind-generated electricity.
Recent developments in both fields indicate that Kansas will soon take its place as a leader in renewable sources of energy.
Ethanol
In the past, ethanol production has been predominantly led by Iowa, Nebraska and South Dakota because of their natural resources; specifically, abundant water and corn.
Unfortunately, Kansas production up to this point has been minimal.
That's why the Governor has worked to cut taxes on ethanol fuels, attract federal grants for ethanol research, expand the network of E-85 stations and removed needless hurdles for the industry - resulting in a 600 percent increase in ethanol use from when she first took office.
These efforts, coupled with growth in the agricultural sector and an increase in the number of facilities across in the state has moved the industry forward.
Five years ago when the governor was first sworn in, Kansas had five ethanol plants producing only 90 million gallons of ethanol each year. Today, Kansas boasts ten plants with an annual capacity of more than 300 million gallons.
Additionally, six new plants have been approved and are under construction. These plants will produce an estimated 427 million gallons each year. Beyond that, four plants have received permits and are gearing up to break ground; and five more plants are permit-pending.
Builders are carefully deciding locations for plants making sure facilities are built with good road access for easier transportation.
With these new opportunities on the horizon, Kansas will soon produce more than 1.6 billion gallons of ethanol annually. In six years we will have gone from virtually no ethanol product into a leader in the U.S. and the world.
Wind
Similar to ethanol production, Kansas has a phenomenal opportunity to take advantage of another abundant natural resource - wind.
And like ethanol, it wasn’t until recently that we’ve fully realized our potential in this burgeoning industry.
The best wind in country follows a path the width of Kansas that extends from the mid-Texas all the way north. Wind resource estimates for areas with high wind power cover virtually all of Kansas.
Right now, we’re only producing about 364 megawatts of energy from wind – which is a little over 3 percent of our entire electrical generation.
Clearly, Kansas has not tapped into this natural resource.
In our first year together, Governor Sebelius and I have spent a great deal of time working towards changing this trend.
Together we met with the individual utilities, building relationships and working toward a shared vision of a clean energy future.
Our approach to form consensus among the utilities, not through mandates, but through meeting face to face, has worked.
Recent announcements from our six leading utilities, including Westar’s historic RFP for 500 megawatts, indicate that Kansas will soon take its place as a leader in the field of wind energy.
It’s clear from the progress we’ve made just this year that we will meet – and likely exceed – the governor’s goal. We expect new wind farm projects to produce more than 1500 megawatts of wind energy by 2012. It is unlikely that any other state will enjoy this level of growth over the next five years.
But what will it take to make wind energy cheaper – and thus more utilized – than coal?
The easiest answer is time. As the cost of constructing coal fired plants increases, and technology for wind turbines lowers their cost – Eventually, new wind will become cheaper than new coal.
Another possibility is that changes at the federal level will force others to turn to wind. Were this to happen, Kansas would be poised to not only be a leader in producing wind energy, but an exporter of its power.
Recently, the United States House of Representatives passed a bill that would require every state in the country to use 15% of their state’s energy from renewables and provide tax incentives to develop renewable energy sources.
If this bill became law, it would force many states that do not have wind potential to buy Kansas wind from Kansas farmers. A national renewable energy requirement would be an enormous benefit to Western Kansas.
Conclusion
Other states already benefit from proactively investing in ethanol and wind. It is time that Kansas take advantage of this abundant natural resources.
The fuel for our future is found in the fields of Kansas. If we rise to the occasion, and look ahead to what is best for our children and grandchildren, it becomes clear that securing a clean energy future is one of our highest priorities.
As a state we will be a leader in renewable energy.
As a nation, we will be cleaner, safer and brighter as we move forward.
*View Powerpoint Presentation: Blowin' in the Wind