MIDWESTERN ENERGY

INFRASTRUCTURE

ACCORD

2009
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We commit to developing a robust

energy infrastructure to position the Midwest as

America’s leader in fostering energy security, reducing greenhouse gas emissions, and

spurring jobs and investment in low-carbon energy development and technology

manufacturing, and we have the following priority areas for infrastructure

development:

• Expansion of electric transmission capacity in support of renewable energy

development and distributed generation; 

• Adoption of smart grid technologies and capabilities; 

• Commercial build-out of carbon capture and storage (CCS); and 

• Deployment of refueling systems for biofuels and other advanced low-carbon

transportation fuels.

MIDWESTERN

ENERGY 

INFRASTRUCTURE 

ACCORD
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Electric Transmission 

Capacity Expansion

WHEREAS, electric transmission expansion is essential for the Midwest to meet the Midwestern Governors

Association (MGA) regional renewable electricity targets of 10 percent by 2015, 20 percent by

2020 and 30 percent by 2030; and

WHEREAS, the Regional Generator Outlet Study (RGOS) Phase I and II are currently being undertaken by

the Midwest Independent System Operator ( Midwest ISO) in collaboration with the MGA, the

Southwest Power Pool (SPP) and other stakeholders to show what upgrades and expansions of

the region’s transmission system are necessary to meet those MGA targets; and the Eastern

Interconnection Planning Collaborative Transmission Study is being done in conjunction with

PJM Interconnection, the Midwest ISO and other eastern regional transmission operators to

outline transmission needed for the eastern planning region; and 

WHEREAS, the RGOS Phase I and II work groups, in collaboration with MGA states, are identifying highcapacity Renewable Energy Zones (REZ) in each MGA state for renewable energy

development; and 

WHEREAS, the five-state Upper Midwest Transmission Development Initiative, the Organization of

Midwest ISO States’ Cost Allocation and Regional Planning (CARP) work group and the

Midwest ISO’s Regional Expansion Criteria and Benefits (RECB) III cost-allocation task force

are working with the MGA to develop a broadly supported proposal for equitable

apportionment of the costs of regional transmission improvements, and recommendations

from these three groups are forthcoming; 

NOW, THEREFORE, BE IT:

RESOLVED, that we appreciate the ongoing cooperation between the MGA, Midwest ISO and SPP in

undertaking regional transmission analyses, and the Eastern Interconnection Transmission

Planning Collaborative done in conjunction with PJM, Midwest ISO, and others. We support the

current Phase I and Phase II of the Midwest ISO’s RGOS study that will outline transmission

investments needed to meet the MGA goal of obtaining 10 percent of electricity consumed in

the region from renewable sources by 2015, as well as providing indicative results for

transmission expansion needed to meet the MGA’s renewable electricity targets of 20 percent by

2020 and 30 percent by 2030; and be it further

RESOLVED, that we recognize that the designation of high-capacity Renewable Energy Zones in each state

through the Midwest ISO’s RGOS Phase I and II studies will help reach the above renewable

electricity goals; and be it further
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RESOLVED, that we support ongoing efforts by the MGA, Midwest ISO, SPP, utility regulators, utilities,

transmission owners and operators, and other stakeholders to develop a cost-allocation formula

that fairly apportions the costs of new transmission investments among generators, transmission

owners and operators, and utility customers throughout our region; and be it further

RESOLVED, that we urge the above-mentioned parties to propose a cost-allocation formula by December

2009 for Midwest ISO RECB III task force consideration and that, upon Midwest ISO review,

and in consultation with the SPP, the MGA can see a final decision by January 2011.

Adoption of Smart Grid

Technologies and Capabilities

WHEREAS, “smart grid” technologies have the potential to enhance reliability, customer service, and grid

integration of renewable energy; reduce peak load and consumers’ energy costs; and enable

efficient use of existing transmission and distribution through improved distributed energy

storage and adoption of plug-in hybrid electric vehicle technologies; and

WHEREAS, greater understanding is needed of the effects that smart grid technologies will have on reducing

consumers’ energy use and on rates for lower-income consumers; and

WHEREAS, the federal government has announced smart grid initiatives and funding opportunities, smart

grid pilot programs are ongoing in several Midwestern states, and the region can benefit by

accelerating adoption of effective smart grid technologies by investor-owned, municipal and

cooperative utilities; 

NOW, THEREFORE, BE IT:

RESOLVED, that we will establish by December 2009 a regional collaborative through the MGA involving

relevant state officials, utility, and other stakeholders to:

• Develop a standard, Midwest-wide understanding of a smart grid;

• Determine, based on studies and the results of new and existing Midwestern pilot projects,

the effect of smart grid technologies on emissions reductions and consumers’ energy

consumption;

• Recommend effective means to prepare for the integration of electric vehicle technologies

into the smart grid, including appropriate rate designs and the means to enable customerowned electric vehicles to tore and supply power to the grid;

• Recommend options to address the specific needs of lower-income consumers;
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• Define regional protocols for measurement and verification of smart grid pilot projects;

• Recommend how to maximize energy efficiency and emissions reductions from smart grid

programs; and

• Convene a Midwestern smart grid event that would present results of the above studies and

final recommendations from the collaborative; and be it further

RESOLVED, that the smart grid collaborative will report to the MGA with final recommendations by

December 2010.

Commercial Build-Out of 

Carbon Capture and Storage

WHEREAS, carbon capture and storage (CCS) represents a key component of the broader portfolio of

options for reducing greenhouse gas emissions, and the Midwest has extensive oil and gas and

deep saline formations with significant potential for geologic storage of CO2; and

WHEREAS, some U.S. states have existing authorities and a track record of successfully managing the

transport, injection and underground storage of CO2 and other gases, and further state and

provincial leadership will help inform the development of an effective CCS regulatory

framework at the federal level; and

WHEREAS, the MGA has established regional goals for commercial deployment of key advanced coal

technologies with CCS between 2012 and 2015 and for incorporation of CCS into all new coalbased energy facilities by 2020; and

WHEREAS, enhanced oil recovery (EOR) using CO2 captured from coal gasification, natural-gas processing,

and ethanol and fertilizer plants has been proven to be a fully commercial, safe and effective

process in the Midwest and around the world for extending the production of oil and gas fields

and for enabling long-term geologic storage of CO2; and

WHEREAS, commercial-scale storage of CO2 in deep saline formations has been demonstrated successfully

in the North Sea, and promising smaller-scale storage tests are underway in the Midwest; and

WHEREAS, analysis undertaken for the MGA suggests the potential to use 530 million metric tons of

captured CO2 to produce 2.2 billion barrels of otherwise unrecoverable domestic oil in the

Midwest, while achieving a significant net CO2 reduction over imported oil; and

WHEREAS, CO2 EOR can provide a near-term revenue stream for CO2 capture and transport, thus helping

finance the build-out of a pipeline infrastructure needed for future long-term storage of CO2 in

higher-capacity deep saline formations; 
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NOW, THEREFORE, BE IT:

RESOLVED, that we will strive to secure the siting and permitting of at least one multi-jurisdictional CO2

pipeline by 2012, commercial scale CO2 capture at key demonstration projects between 2012

and 2015, and incorporation of CCS into all new coal-based energy facilities by 2020; and be it

further

RESOLVED, that we applaud the important progress made by several MGA jurisdictions toward meeting the

critical near-term MGA goal of achieving by 2010 a consistent state/provincial statutory and

regulatory framework across the Midwest for CO2 transport, injection, storage, liability and

long-term site stewardship; and be it further

RESOLVED, that we recognize the need for a phased commercial CCS-deployment strategy:

• Through 2020, focused primarily on CO2 EOR and assessment of potential future CO2

storage in saline formations, and including:

o A CO2 trunk pipeline from the Midwest to the Gulf Coast serving a cluster of

commercial capture projects in Illinois, Indiana and Ohio; and

o Individual commercial capture projects and associated pipeline infrastructure in Kansas,

Michigan, Missouri and North Dakota;

• After 2020, expanding to storage in deep saline formations and linking all MGA

jurisdictions into a common CO2 pipeline network that provides commercial facilities in

Iowa, Minnesota and Wisconsin access to storage opportunities not available within their

state boundaries; and be it further

RESOLVED, that we will appoint through the MGA, by December 2009, a regional CCS task force consisting

of officials from relevant agencies, with participation and input from stakeholders, and tasked

with the following responsibilities:

• Review emerging CCS legislation in MGA jurisdictions and the MGA “Legal and Regulatory

Inventory for Carbon Capture and Storage & Analogues” and the MGA “Toolkit for

Carbon Capture and Storage: Statutory and Regulatory Issues” and implement immediate

steps needed to accomplish the development and harmonization of state/provincial CCS

statutory and regulatory policies by 2010;

• Review and inform the development of legislation and regulations emerging from the

federal level, ensuring that federal programs do not preempt states that choose to develop

comprehensive CCS regulatory programs;

• Review and implement, as appropriate, recommended actions from the MGA Renewable

Electricity, Advanced Coal and CCS Advisory Group, including:
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o State incentives for CCS deployment to complement existing and proposed federal

incentives;

o Establishment of publicly regulated state and/or geologic basin-wide CO2 sequestration

utilities to provide commercial energy and other facilities with a comprehensive and

predictable CO2 storage solution; and

o Preliminary siting of Gulf Coast and other CO2 trunk lines to plan the build-out of a

regional pipeline network; and be it further

RESOLVED, that the task force present final recommendations to the MGA by June 2010, with legislative

recommendations regarding establishment of a CCS regulatory framework to be finalized

sooner as necessary.

Deployment of Refueling Systems for

Biofuels and Other Advanced LowCarbon Transportation Fuels

WHEREAS, the Midwest has the greatest potential of any region in America for both the production of

biofuels and the production of renewable and low-carbon electricity and hydrogen to power the

future fleet of plug-in hybrid and fuel-cell electric vehicles; and

WHEREAS, the MGA has established regional goals that biofuel blends and other low-carbon advanced

transportation fuels be available at 15 percent of retail fueling stations by 2015, 20 percent by

2020 and 33 percent by 2025, and that at least 50 percent of transportation energy consumed in

the region will be supplied by regionally produced biofuels and other low-carbon advanced

transportation fuels by 2025; and

WHEREAS, widespread availability of the retail and fleet refueling infrastructure provides a necessary

complement to federal and state incentives for the production of biofuels and other advanced

low-carbon transportation fuels; 

NOW, THEREFORE, BE IT:

RESOLVED, that we will jointly launch a regional initiative to accelerate the development of a refueling

infrastructure for E85, biodiesel, other advanced biofuels, blender pumps, hydrogen refueling,

and electric vehicle recharging; and be it further
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RESOLVED, that the MGA will convene an inter-agency working group consisting of officials from relevant

agencies, together with participation and input from stakeholders, including refiners, distributors

and marketers of fuels, to consider and implement, as appropriate, recommended actions from

the MGA Bioeconomy and Transportation Advisory Group, including:

• Creation of a “clean-fuel retailers program” that includes mechanisms to expand retail

distribution of biofuels and advanced low-carbon fuels throughout the region, such as:

o Financial incentives for infrastructure development and deployment;

o Public recognition and incentive payments for retail and wholesale outlets for attainment

of fuel sales benchmarks; and

o Public education efforts that include providing clear definitions of what constitutes

qualifying fuels and vehicles, mapping of qualifying refueling stations in the Midwest, and

publicly sponsored branding with a “Clean Fuel” logo for qualifying retailers and

vehicles; and

• Incentives and other policies to increase the quantity of biofuels and other advanced lowcarbon transportation fuels used in state/provincial fleet vehicles; and be it further

RESOLVED, that the working group be convened by January 2010 and report back to the MGA with final

recommendations by December 2010.

Coordination and Implementation

WHEREAS, successful longer-term implementation of the above-mentioned initiatives and related MGA

policy recommendations will require sustained attention from, and coordination among, relevant

state and provincial officials with ongoing responsibility for overall policy and program

implementation; 

NOW, THEREFORE, BE IT:

RESOLVED, that we invite regional associations representing utility regulatory commissions, energy offices,

departments of agriculture, environmental regulatory agencies, other executive branch agencies

as appropriate, and legislative assemblies to work with the MGA to organize a regional meeting

of state and provincial officials and leaders in 2010 to identify ways to encourage interjurisdictional and inter-agency cooperation and help coordinate the implementation of the above

recommendations and initiatives, together with recommendations in the MGA’s Platform for

Creating and Retaining Midwestern Jobs in the New Energy Economy and the MGA’s Energy Security and

Climate Stewardship Roadmap: Advisory Group Recommendations.

DONE, this 7th day of October, 2009, in Detroit, Michigan.