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MAPI reports expectations for annual orders, investment, and R&D spending in the coming calendar year, were all at high levels. Click to continue
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ReRAM would replace chips currently found in mobile devices and offer increased speed, capacity and reliability. Click to continue
ASSOCIATION ENDORSES CONSTITUTION AMENDMENT A, INVITES CANDIDATES TO DO THE SAME
UMA joined with the Utah Taxpayers Association and a host of other associations at a news conference at the Capitol this week endorsing “Amendment A- Save Our Secret Ballot.” The associations invited all candidates to pledge their support for Amendment A. Amendment A protects Utah’s right to vote by secret ballot in all elections.UMA members throughout the State have received an email request to post a one page explanation of Amendment A for their employees to both inform employees and to urge them to vote FOR Amendment A on the November 2 ballot.
FINAL TALLY: 111TH CONGRESS ENACTS $352 BILLION IN TAX HIKES
Utah Taxpayers Association – Taxing Times
The 111th Congress has enacted over $352 billion in net tax hikes according to Americans For Tax Reform. Stimulus spending, healthcare reform and taxes to small business will result in seven dollars worth of permanent tax increases for every dollar of permanent tax cuts. Americans For Tax Reform: Obama and 111th Democrat Congress Enacted $352 Billion in Net Tax Hikes
IMPROVING GLOBAL ECONOMY HELPS UTAH SMALL BUSINESSES
Global Utah WeeklyAlthough it might seem far away for business owners and unemployed workers, the strengthening global economy will assist Utah's small businesses, according to the Small Business Index for September issued Tuesday by Zions Bank.
The Small Business Index was 113.6 last month, which is higher than the 110.6 seen in August.
There also are more people out of work in the state, with an unemployment rate of 7.4 percent for September compared to 7.2 percent for August and higher than the 6.8 percent the same month one year ago.
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Today in Manufacturing.net
U.S. trade deficit widened sharply in August, reflecting a surge in imports of consumer products as businesses restocked their shelves in hopes of a pickup in consumer demand ... continue
PRESIDENT CALLS FOR MORE INFRASTRUCTURE INVESTMENTS
NAM Capital BriefingCiting a 20-percent unemployment rate among construction workers, President Obama this week reiterated his Labor Day call to renew and expand America's infrastructure following a meeting with Cabinet officials, two former transportation secretaries and state and local leaders at the White House. Specifically, the President is seeking bipartisan support for a $50 billion upfront infrastructure investment that is tied to a six-year surface reauthorization and the creation of a National Infrastructure Bank. The Department of Treasury with the Council of Economic Advisers released a report on Monday that analyzes the economic impacts of transportation investments and concludes now is an "optimal time to increase the nation's investment in transportation infrastructure."
EPA EXTENDS SPCC DEADLINE YET AGAIN
Marty Banks- Stoel RivesOn October 8, 2010, EPA signed a rule that will extend the deadline for complying with the 2002 Spill Prevention, Control and Countermeasure (SPCC) rule amendments for most sources to November 10, 2011. In 2002 EPA issued significant changes to the SPCC program rules. These rules apply to sources that have the above-ground capacity to store more than 1,320 gallons of oil or that have completely buried storage capacity of more than 42,000 gallons and where a release could make its way to navigable waters. These rules were initially supposed to require SPCC Plan revisions by February 17, 2003. EPA has steadily postponed that deadline and has now done so yet again.
Most, but not all, sources covered by the SPCC requirements are within the scope of the latest extension. Drilling, production or workover facilities that have an offshore component are still subject to the previous compliance date as are facilities required to have a Facility Response Plan. If you are involved in the oil or gas exploration industry or you store more than 1 million gallons of oil then you may still be subject to the November 10, 2010 SPCC deadline. However, the vast majority of onshore facilities will benefit from the extension and will not need to revise their SPCC plans to comply with the 2002 regulations until next fall.
As a related part of this rule, EPA has delayed for one year the applicability of the SPCC rules to facilities storing milk and/or milk products where the containers, piping and appurtenances are constructed according to current 3-A Sanitary Standards and are subject to current Grade A PMO or equivalent state standards.
This rule has been signed but not yet published in the Federal Register. Look for publication in the next couple of weeks. While the rule technically is not in effect until published, this is really just a technicality in light of the rule being signed.
Note that this rule does not relieve the obligation to maintain your SPCC Plan under the pre-2002 rules. It just delays the deadline by which you must revise your plan to comply with the 2002 rule changes as well as the subsequent changes that were contingent upon the 2002 changes.
Utah Talk
Today we are pleased to announce that the State of Utah has climbed to the top spot in Forbes Magazine's annual ranking of "Best State's for Businesses and Careers".
Utah ranks No. 1 in the report, released Wednesday, bumping Virginia from its four-year reign in the top spot. Among the factors that placed the Beehive State at the top are:
• Annual economic expansion of 3.5% over the past five years
• Annual total employment increase of 1.5%
• Annual increase in household income of 5%
• Decrease of corporate tax rate from 7% to 5%
• Energy costs that are 35% below the national average
“While magazine rankings do not tell the whole story, they certainly create a narrative that shows Utah has all the elements that make us a successful place to start or expand a business and a desirable location to live and raise a family,” Governor Herbert said. “Several years ago, we made a conscious decision to make economic development a priority. We have since consistently climbed in the rankings and, in the past year, our leadership pushed Utah to the top of the list.”
Forbes’ “Best States” ranking measures six categories for business: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life.
Utah’s rankings in those categories are:
• Business Costs: 8
• Labor Supply: 5
• Regulatory Environment: 6
• Economic Climate: 1
• Growth Prospects: 20
• Quality of Life: 18
In announcing this year’s results, Forbes noted that while states across the nation have suffered as a result of the national economic downturn, some states, like Utah, have weathered the downturn better than others. The magazine notes: “But some areas are doing better than others, and for many of them, it isn't an accident. Who's doing the best job when it comes to fostering growth? Utah.”
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ARIZ. UTILITY REGULATOR SAYS STATE WILL 'NEVER AGAIN' BUILD A COAL-FIRED POWER PLANT
UAE Energy Weekly Energy Brief - By Lynn DoanArizona Corporation Commission Chairman Kristin Mayes vowed Oct. 13 that the state will "never again" allow another coal-fired power plant to be built within its borders.
Speaking at a news conference on energy efficiency in Washington, D.C., Mayes said Arizona can find better ways to address its energy needs without the development of new coal-fired generation. The state's energy efficiency efforts alone, she said, are expected to push off the need for new baseload generation until at least 2030, she said.
"We're not building any coal plants in Arizona. Let me be clear about that. Period," she said. "I wouldn't approve one. And I don't know why we would."
If Arizona is looking for more power when 2030 rolls around, she said, the state could entertain the idea of a new nuclear power plant. "But I don't see coal in our future," she said, "especially in light of what the EPA is doing."
Coal-fired generation supplies almost two-fifths of the state's demand for electricity, according to the U.S. Energy Information Administration. Natural gas-fired plants and nuclear power supply most of the remainder.
In September, the EPA determined that current air pollution standards for SOx, the sum of SO2 and sulfate, and NOx are failing to protect the environment. The finding signaled the coming of more stringent rules.
revise the Clean Air Interstate Rule would curb SO2 and NOx power plant emissions in 31 states and the District of Columbia at an estimated annual cost of $2.8 billion.
In May, the ACC established new rules that require the state's electric utilities to file integrated resource plans every two years detailing the sources of the energy they will use and how they will comply with state requirements for demand response, energy efficiency and renewable energy.
State officials acknowledged at the time that Arizona still relies heavily on fossil fuel resources but stressed the need to vary its supply.
Arizona Public Service Co.'s coal-fired Cholla power plant, meanwhile, was one of the 22 sites earmarked by the U.S. Department of Energy for funding to accelerate carbon capture and storage technology.
As part of the Cholla project, Membrane Technology and Research Inc. and partners are expected to demonstrate a membrane process to separate CO2 from industrial-scale and utility-scale processes, including boilers, cement manufacturing, steel and aluminum production, and chemical refining.
But on Oct. 13, Mayes described carbon capture and storage technology in general as "unproven, expensive and not commercialized."
By the time Arizona needs more generation, she said, so many technological advances will have been made in energy storage, renewable energy and energy efficiency that the state will have "better ways of meeting its needs."
CALIF. PUC APPROVES SOCALED'S EXPENDITURES OF $179M FOR COAL-FIRED PLANT
UAE Energy Weekly Energy Brief -By Jeff StanfieldDespite one commissioner's objection that the decision violates a California greenhouse gas law, state utility regulators on Oct. 14 authorized Southern California Edison Co. to recover from ratepayers nearly $178.6 million in capital expenditures for the Four Corners Generating Station, a coal-fired plant on the Navajo Reservation in northwestern New Mexico.
Further, the California Public Utilities Commission ordered SoCalEd to submit a study considering estimates of costs of future investments in Four Corners if the utility were to maintain its interest in the plant, including cost estimates to bring the plant into compliance with California's greenhouse gas emissions standard for power plants.
While SoCalEd stressed that the expenditures are needed to maintain reliability, it conceded that some capital expenditures may ensure that Four Corners retains some residual value should the utility subsequently divest its interest.
The Edison International subsidiary's 50-year contractual interest in Four Corners expires in 2016, but the utility said that if it does not pay its share of expenditures, it will not receive power from the plant but will remain liable for unpaid costs. SoCalEd holds a 48% interest in units 4 and 5 of the plant but previously contended that as a minority owner, it did not have much choice concerning its financial obligation. Five other utilities have smaller interests.
Four Corners supplies SoCalEd with 720 MW and a loss of that capacity and energy would cost ratepayers about $200 million per year, the utility said.
The commission decided to allow capital expenditures incurred before Jan. 1, 2012, subject to approval prior to any recovery in rates. That is the date the state's A.B. 32 greenhouse gas rules take effect.
However, Commissioner John Bohn dissented, saying state law S.B. 1368, establishing greenhouse gas emissions performance standards for generation facilities, strictly prohibits new investments in coal-fired power generation. The law has no provision for grandfathering in existing coal-fired plants, he said.
SoCalEd made discretionary investments in Four Corners but was not required to do so under terms of the co-ownership agreement, despite the utility's misrepresentations to the contrary, Bohn said.
"This proposed decision constitutes noncompliance with the law prohibiting these investments," he said. "The legislature could have exempted them. It did not," he said.
Even if compliance is costly and disruptive, the law cannot be pushed aside, he continued.
While Commissioner Dian Grueneich subsequently voted with the 4-1 majority, she objected that the decision did not punish SoCalEd for violating a commission rule against utilities making misrepresentations to the commission.
SoCalEd failed to submit the plant operating agreement to the commission and falsely told the commission that it had little discretion in the plant expenditures, Grueneich said. The agreement showed otherwise, but the commission's decision declined to open an investigation because SoCalEd apologized. "This is not even a slap on the wrist for the company," she said.
SoCalEd originally asked the commission to establish a wholesale exemption of its expenditures at Four Corners so the utility could collect from ratepayers expenditures from 2012 until 2016, when its co-tenancy at the plant expires.
The commission declined to do so, saying the law prohibits investment in existing generation that is intended to extend the life of existing baseload capacity for five years or more or results in a new increase in that capacity.
President Michael Peevey said expenditures will be limited to those necessary for avoiding safety and environmental hazards and for basic operation of the plant. He said the decision "strikes an appropriate balance, recognizing co-tenancy and protecting ratepayers from expenditures for future greenhouse gas controls."
Commissioner Nancy Ryan remained silent, but Commissioner Timothy Simon said, prior to remarks by Grueneich and Bohn, that the decision "offers a limited exemption to S.B. 1368 as we taper off long-term financial commitments for coal-fired generation."
Grueneich delays decision on tradable RECs
Although Bohn released his further-review hold on Peevey's proposed decision to authorize the use of tradable renewable energy credits for compliance with the state's renewable portfolio standard, Grueneich asked that the decision be held anyway but did not say why.
The controversial proposed decision has prompted numerous comments as parties argue over whether credit trading will help or hinder development of renewable energy.
Peevey said that "in all likelihood … and the creek don't rise," the decision will be considered again Oct. 28.
In other action, the commissioners agreed to hire consultants to assist in determining whether pressure in Pacific Gas and Electric Co.'s main natural gas supply line to San Francisco may be safely increased to normal operating pressures this winter or whether other measures should be taken to ensure a sufficient supply of gas to PG&E's customers on the San Francisco Peninsula.
The commission ordered a 20% reduction of pressure on PG&E's Pipeline 132 following the deadly San Bruno explosion of Sept. 9 but is now worried whether sufficient gas supplies would be available during a winter cold snap. Also, PUC Executive Director Paul Clanon said the supply to Mirant Corp.'s Potrero power plant is of concern and that the California ISO is participating in contingency planning.
The commissioners agreed that Peevey, with advice from experts, could order a pressure increase if an emergency need arises between PUC meetings. Federal authorities concluded in preliminary findings that the explosion was due to a malfunction that increased pressure beyond the 30-inch pipeline's capacity.
The commission also announced the names of the experts of an independent review panel that will conduct a study and investigation and recommend changes to design, construction, operation, maintenance and management practices at the PG&E Corp. subsidiary. Also, the panel might propose infrastructure improvements and regulatory changes, the commission said.
Finally, the commission authorized Sempra Energy subsidiary San Diego Gas & Electric Co. to recover $25.4 million in costs related to seven 2007 Southern California fires. This is a 21% reduction from SDG&E's original request and results from the commission's adoption of a settlement with the PUC's Division of Ratepayer Advocates to exclude $6.8 million in operation and maintenance costs and $43 million in capital costs, resulting in a cumulative revenue requirement of $32.2 million.
ANALYSIS: REPUBLICAN GAINS COULD ESCALATE CLASHES WITH OBAMA OVER EPA RULES
UAE Energy Weekly Energy Brief - By Kathleen HartA gain of Republican seats in the U.S. Senate and House in the midterm congressional elections, as is widely anticipated, will likely result in increased protection of conventional fuel sources and a greater clash between Congress and the Obama administration over new coal and drilling regulations, according to an energy analysis firm.
"Although the window for major energy reform in Congress is now closed, pending rules from the Department of Interior and the Environmental Protection Agency could materially alter the sector," Height Analytics said in an Oct. 8 analysis of the effect of the upcoming midterm elections on the energy sector. However, while the EPA is likely "to continue to target coal mining by withholding permits," the analysis concluded that Congress and the Obama administration "will increasingly clash over new agency regulations, which could result in Congressional attempts to limit agency power."
It is unlikely that the newly elected Congress will pass major energy policy legislation next year, Height predicted. However, the EPA and U.S. Interior Department are set "to issue and enforce a slew of new regulations that target conventional fuel sources."
Looking ahead to 2011, Republican gains in the midterm election "virtually end any possibility for comprehensive energy reform," the analysis said. However, it added that pending EPA regulations "threaten virtually every stage of the coal lifecycle from mining through generation."
Republican candidates, in their 2010 Pledge to America, vowed to "fight to increase access to domestic energy sources and oppose attempts to impose a national 'cap and trade' energy tax." In addition to increasing access to U.S. sources of oil, natural gas and coal, Republicans pledged to fight what they contend is the "constant threat of new taxes and new regulations" imposed by Democrats.
Legislation in the Senate aimed at delaying EPA regulation of carbon dioxide emissions from coal-fired plants and other stationary sources, which was introduced by Sen. Jay Rockefeller, D-W.Va., has considerable bipartisan support. However, Obama would likely veto the legislation were it to pass both chambers of Congress. The Height analysis also noted that although Republicans in the new Congress are likely to attempt to pass legislation to pre-empt EPA regulations, a veto from Obama would be likely.
The uncertainty about possible cap-and-trade legislation and the future potential regulation of CO2 and other greenhouse gases has favored increased use of natural gas for electric generation. Height predicted that after the election, EPA regulations will accelerate the pace of gas plant construction. In addition, natural gas vehicle incentives are "possible again" in a new Congress.
Prior to the election, concern has been growing about the environmental impact of natural gas drilling and hydraulic fracturing at both the federal and state levels, the analysis said. Republican gains in the election make any action on fracking "unlikely until the EPA completes its study in late 2012," the analysis added.
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