Download - Bright Green
StimulusStimulus Funding:Funding:Stimulus Stimulus Funding: Funding: Unlocking Unlocking the ARRA's Full the ARRA's Full The RevolutionThe Revolutiongg
Economic, Social, and Economic, Social, and E i t l P t ti l fE i t l P t ti l f
The Revolution The Revolution Will Be FundedWill Be FundedEnvironmental Potential for Environmental Potential for
CaliforniaCaliforniaWill Be FundedWill Be Funded
CaliforniaCaliforniaPanama BartholomyPanama Bartholomy
Advisor to Chairman DouglasCalifornia Energy CommissionBright Green Future 2009g
10/23/09San Diego, CA
Where We Are Going TodayCalifornia Energy ContextContext
ElectricityNatural GasTransportationTransportation
Policy SolutionsRecovery Act Opportunities
Electricity (2008)Source
Natural Gas 46.5%Nuclear 14.9%Large Hydro 9 6%Large Hydro 9.6%Coal* 15.5%Renewable 13.5%
California’s Power Plants
Over 980 powerOver 980 power plants in CA over 1 MW.1 MW
California’s Greenhouse Gas E i i i 2004Emissions in 2004
Transportation
Residential 6%
Transportation38%
Commercial3%
ElectricityElectricity Generation (In-State)
12%
A i lt
Industrial20%Electricity
GenerationAgriculture
6%(Imports)
13%
California State Electricity Demand F tForecast
CA Electricity Demand Forecast
120,0002020
80 000
100,000
60,000
80,000
Gw
H ResidentialCommercialIndustrial
20,000
40,000 MiningAgricultural
0
,
2005 2008 2011 2014 2017 2020
Loading Order…
State Energy Policygy y2007 Integrated Energy Policy
ReportReport•Require net zero energy by 2020 f id d 20302020 for residences and 2030 for commercial buildings.
CPUC and CEC Big, Bold Initiatives$•Will invest over $15 Billion in
efficiency by 2030
E i ti B ildiExisting Buildings75% of CA’s residential buildings and 5 2575% of CA s residential buildings and 5.25 billion square feet of commercial buildings were built before 1978’s energy efficiencywere built before 1978 s energy efficiency standards
EFFECT OF TITLE 24TITLE 24
120 Improvement from 1978 to 2005 = 47%100
Improvement from 1978 to 2005 = 47%
Improvement from 1990 to 2005 = 30%
60
80
/sf-y
r
Water HeatingSpace CoolingSpace Heating
40
60
kBTU
Space Heating
20
070s 1978 1984 1988 1992 1998 2001 2005
Existing Buildings Climate I tImpactBuildings are the second largest contributor to California’s greenhouse gas emissions and nations largest
• In 2007 AIA poll only 7% of yrespondents correctly yidentified buildings as the gtop emitter
CA Building Greenhouse Gas Emissions 2004
Transportation38%
Emissions 2004
Commercial
Residential 6%
38%
Commercial3%
Electricity GenerationGeneration (In-State)
12%
I d t i l
Agriculture
Industrial20%Electricity
Generation(Imports)
6%(Imports)
13%
California Buildings End Use 2004 GHG Emissions
State-wide GHGCooking
7.06%
Cold Storage14.413%
Lighting13.312%State wide GHG
Emissions–13.6% Residential
% CWater–7.5% Commercial–2.3% Industrial
Water Heating
19.817%
Misc28.825%
VentilationVentilation4.64% Heating
16.615%
Cooling8.78%
TVTVsEnergy Commission has proposed energyEnergy Commission has proposed energy efficiency standards for televisions for 2011
AB 758: The Day it All ChangedCalifornia Energy Commission to develop and implement a comprehensi e program toand implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential b ildingsresidential and nonresidential buildings, including:
tenergy assessments, cost-effective energy efficiency improvements, financing options, public outreach, and education efforts
R bl ERenewable Energy
R bl P tf li St d dRenewable Portfolio Standard (RPS)
I t O d Utiliti tInvestor Owned Utilities must procure 20% of their electricity from renewable resources no later than 2010.Municipal utilities are directed to d l th t hidevelop a program that achieves the same goalsCEC and CPUC adoptedCEC and CPUC adopted goal of 33% by 2020
Renewable Portfolio Standard
33% by 2020
20% by 2010
2007 11.8%
1983 1988 1993 1998 2003 2008 2013 2018
2002 11.0% (RPS begins)
1983 1988 1993 1998 2003 2008 2013 2018Year
SB 1: “Million Solar Roofs”3000 MW goal, combined
Solar on 50% of new homes by end ofcombined
POU/IOU effort$3 2 Billion in
homes by end of program
Solar Industry self$3.2 Billion in Rebates
Solar Industry self-sufficient in 10 years
F hFor those developments of 50+ h b ild thomes, builders must offer PV as option as
f 1/1/2011of 1/1/2011
Natural Gas (2007)SourceIn State 12 9%In State 12.9%Canada 22.1%Rockies 24 2%Rockies 24.2%
Southwest 40.8%
N t l GNatural Gas
$9.00 Wholesale Natural Gas Prices in California
$7.00
$8.00
$5 00
$6.00
$4.00
$5.00
$2 00
$3.00 Dollars per Thousand Cubic Feet
$1.00
$2.00 Cub c eet
$0.001985 1990 1995 2000 2005
S l H t W tSolar Hot Water
Crude Oil (2008)Source
In State 38.12%
Alaska 13 41%Alaska 13.41%
Foreign 48.46%
California Weekly Retail Gasoline Prices
500
Prices (Cents per Gallon)
400450500
250300350
Weekly California Regular
100150200250 Regular
Reformulated Retail Gasoline Prices (C G ll )
050
100 (Cents per Gallon)
Tail Pipe andTail Pipe and Fuel StandardsAB 1493, Statutes 2002
By 2016 vehicles in CA must ybe 30% more GHG efficient than those sold in 2002
Low Carbon Fuel StandardReduce GHG impacts inReduce GHG impacts in CA’s transportation fuels 10% below 2007 levels by 2020.
VMT and Population in CA 1975-2004
180
200
35,000,000
40,000,000
140
160
lions
)
30,000,000
100
120
VMT
(Bill
20,000,000
25,000,000
pula
tion
Annual VMT (billions)
60
80
Ann
ual V
10,000,000
15,000,000 Pop
Population
20
40
A
5,000,000
10,000,000
01975 1978 1981 1984 1987 1990 1993 1996 1999 2002
Year
0
190%
200%
Historical and Projected Vehicle Miles Traveled (VMT) and GHG VMT
170%
180%
h
Miles Traveled (VMT) and GHG Growth
150%
160%
90 G
row
th
GHG Growth
130%
140%
t of
19
9
GHG Growth with AB 1493
110%
120%
Perc
en GHG Growthwith AB 1493 and LCFS
90%
100% Gap
~ 18%80%
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
190%
200%
Historical and Projected Vehicle Miles Traveled (VMT) and GHG
170%
180%
h
Miles Traveled (VMT) and GHG Growth VMT growth
at 1%
150%
160%
90 G
row
th
130%
140%
t of
19
9
110%
120%
Perc
en
90%
100%GHG Growth with 1% VMT G th
80%
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
Growth , AB 1493and LCFS
California State Flower
CEQA GHG GuidelinesCEQA GHG GuidelinesOPR, by July 1, 2009, to prepare…
CEQA guidelines for the feasible mitigation of greenhouse gasmitigation of greenhouse gas emissions or the effects of greenhouse gas emissionsgreenhouse gas emissions…
The Resources Agency is required to certify and adopt those guidelines bycertify and adopt those guidelines by January 1, 2010.
O E Sit tiOur Energy SituationMost of our energy supplygy pp yis out of our control, leads towild swings in priceswild swings in prices
Increased competition for supplies will continue to force prices upto force prices upIncreased environmental regulation on industry expectedexpectedNeed to find solutions to gain more control over supply and stabilize price volatilitysupply and stabilize price volatilityMust do so in an environmentally responsive way
The Real The Real Energy/Climate Energy/Climate Challenge?Challenge?
In 2010, three people will leave the workforce for every one that joins
In 2012, it will be four
In 2016, it will be six
American Recovery and Reinvestment Act (ARRA)Reinvestment Act (ARRA)
$787 Billion in funding appropriations and tax relieftax reliefNearly $63 billion for energy activities
$$42 billion in appropriations$21 billion in energy tax incentives
www.energy.ca.gov/recovery
ARRA GoalsPreserve and create jobs and promote economic recovery.yAssist those most impacted by the recession.Provide investments needed to increase economic ffi i b i t h l i l d iefficiency by spurring technological advances in
science and health.Invest in transportation, environmental protection andInvest in transportation, environmental protection and other infrastructure that will provide long-term economic benefits.S SStabilize State and local government budgets in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.p
ARRA Energy Appropriationsgy pp pTotal of $42 billion
$11 3 billion in formula based funding$11.3 billion in formula-based fundingEfficiencyRenewablesRenewablesGreen Community Plans
$30 7 billi i titi d di t t$30.7 billion in competitive and direct grant, loan and loan guarantee funds
TransportationTransportationTransmissionRenewablesRenewablesResearch
American Recovery and Reinvestment Act
of 2009 Energy Funding Implications forImplications for
California
ARRA Formula Energy Appropriations
Total of $11.3 billion in formula-based fundingfunding
$3.1 billion State Energy Program$• Energy Commission will receive $226
million$3 2 billi E Effi i d$3.2 billion Energy Efficiency and Conservation Block Grant Program
California local go ernments are e pected• California local governments are expected to receive over $300 of millionEnergy Commission is expected receive• Energy Commission is expected receive $49 million
ARRA Formula Energy Appropriations
Total of $11.3 billion in formula-based fundingfunding
$5 billion for Low Income Home WeatherizationWeatherization• Community Services and Development
Department will receive $185 millionDepartment will receive $185 million$300 million nationally for Energy Star Appliance Rebates pp• Energy Commission is expected receive
$30 Million
State Energy Program (SEP)Energy Commission is expected to receive $226 million
Traditional SEP appropriations to CA $1-3 million annually
Types of activities allowed under SEPImplementing building, industrial and t t ti ffi itransportation energy efficiency programsExpanding distributed generation, renewable energy and public education programsenergy and public education programsConducting any activity to improve energy efficiency, increase use of renewable energy or i ffi i d iincrease energy efficiency and economic development.
Phase I: SEP Proposed All tiAllocations1. Department of General $25 millionp
Services (DGS) Revolving Loan Program
$25 million
g g2. Clean Energy Workforce
Training $20 millionTraining3. Energy Conservation
Assistance Act (ECAA) $35 millionAssistance Act (ECAA)Revolving Loan Program
$35 million
Phase II: SEP Proposed All tiAllocations
4 Clean Energy Systems U t $354. Clean Energy Systems Revolving Loan P
Up to $35 million
Program5. Energy Efficiency Up to $965. Energy Efficiency
Retrofit Programs Residential Retrofit
Up to $96 million
Residential RetrofitNon Residential RetrofitMunicipal Financing Districts
State Building Revolving Loan F dFund
Clean Energy Workforce Training ProgramProgramTransportationEnergy and Water EfficiencyyRenewable Energy
$90 Milli$90 Million$20 million in$20 million in ARRA funds
/www.energy.ca.gov/greenjobs
Energy Conservation Assistance Act (ECAA)(ECAA)Revolving Loan Program
$25 million in low-interest (1%) loans$25 million in low interest (1%) loansFor energy efficiency, combined heat and power, demand reduction, water efficiency and generationdemand reduction, water efficiency and generation projectsEligible entities include:g
Public SchoolsPublic HospitalsPublic HospitalsPublic Care InstitutionsUnits of Local GovernmentUnits of Local Government
Maximum Loan Amount is $3 million
Cl E S tClean Energy Systems
Targeting the private sector with up toTargeting the private sector with up to $35 million in revolving loansFocused on the following technologies:technologies:
BioenergyClean EnergyClean Energy Manufacturing
Building Energy Efficiency B iBarriers
Building owners lack capital for improvementsLack of market-tested standardized building rating system (residential less so)Fragmented existing building stock requires complex solutions and is difficult to scale Widespread lack of awareness of costs and benefitsGaps in knowledge, skills, and experience of workforce limit scaleL k f di i b i iLack of coordination between existing programs
Municipal Financing District ProgramMunicipal Financing District Program
California Comprehensive Residential Building RetrofitResidential Building Retrofit Program
Municipal and Commercial Building Targeted Measure Retrofit ProgramTargeted Measure Retrofit Program
Energy Efficiency and Conservation Bl k G tBlock Grant
$3.2 billion nationallyy68% to local governments (directly to cities > 30,000 and counties > 200 000 l ti )200,000 population)28% to state energy offices2% to tribes2% to tribes2% competitive grants
California local governmentsCalifornia local governments are expected to receive over $302 million directlyEnergy Commission is expected to receive $49 million
Energy Efficiency and Conservation Block Grant
Assist eligible entities in implementingAssist eligible entities in implementing energy efficiency and conservation strategiesg
to reduce pollution emissions from fossil fuels created as a result of activities within the jurisdictions of eligible entities;to reduce total energy use; andto improve energy efficiency in the transportation, building, and other appropriate sectors.
Energy Efficiency and Conservation gy yBlock Grant Energy Commission is • Department of EnergyEnergy Commission is expected to receive around $49 million
• Department of Energy released guidelines March 26$
60% of the funds will be distributed to small
i i liti th h bl kmunicipalities through a block grant program40% will be placed into the40% will be placed into the State Energy Program and spent at the Energy Commission’s discretionCommission s discretion
EECBG Small City/County Pass-ThroughSmall City/County Pass Through Funds
Allocation based on a per capita formulaAllocation based on a per capita formula Base allocation of $5.00 per personBase allocation increased by unemployment ratey p y
(1 + Unemployment rate) x $5.00Establishes minimum funding levels:
$25,000 per City$50,000 per County
All f ffi i j t di t i tAllows for energy efficiency projects or direct equipment purchasesAllocates approximately 70% of EECBG (ARRA requires aAllocates approximately 70% of EECBG (ARRA requires a minimum of 60%)
DOE Weatherization Assistance Program ($5 Billion Nationally, $185 million for CA)
Administered by Community Services and Development Department for over 30 years
($5 Billion Nationally, $185 million for CA)
Development Department for over 30 years
Purpose of the DOE WAP is to:- increase the energy efficiency of dwellings
owned or occupied by low- income Californians- reduce total energy
expendituresimprove health and safety- improve health and safety
Focus on vulnerableFocus on vulnerable population
Energy Efficient Appliance Rebate Program and Energy Star RecoveryProgram and Energy Star Recovery Funding
Authorized in Energy Policy Act of 2005$300 million available nationwide
Estimated $35 million to California Energy Commission
P id b t t id ti l fProvides rebates to residential consumers for purchase of Energy Star products to replace used appliances of the same typeused appliances of the same typeRebates shall be used to supplement, not supplant existing fundssupplant existing funds
ARRA non-Formula Energy A i tiAppropriations
Total of $30 7 billion in competitive andTotal of $30.7 billion in competitive and direct grant, loan and loan guarantee fundsfunds
ARRA non-Formula E A i tiEnergy Appropriations
$11 billi f$11 billion for Transmission
$4.5 billion for competitive smart grid demonstrationsmart grid demonstration projects$3 25 billion for Western$3.25 billion for Western Area Power Authority$3 25 billion for Bonneville$3.25 billion for Bonneville Power Authority
ARRA non-Formula EnergyEnergy Appropriations
$1 billion for TransportationTransportation
$300 million Clean CitiesCities $300 million Diesel Emissions ReductionsEmissions Reductions $400 million Electric Drive VehiclesDrive Vehicles
ARRA non-Formula Energy A i ti tAppropriations – cont.
$6 billion for Renewable EnergyRenewable Energy Loan Guarantees
Must commence construction prior to Sept. 30, 2011
ARRA non-Formula Energy A i ti tAppropriations – cont.
$8.4 billion for ResearchClean Fossil EnergyClean Fossil Energy, Energy Efficiency and Renewable EnergyRenewable Energy Research, Advanced B tt R hBattery Research
ARRA Energy Tax IncentivesTotal of $21 billion in tax incentives for energyfor energy
$13 billion in renewable energy tax creditscredits$1.6 billion Clean Renewable Energy B dBonds$2.4 billion Qualified Energy Conservation Bonds$2 billion plug-in electric vehiclep g
www.energy.ca.gov/recovery
Wh t d itWhat does it mean
UnprecedentedUnprecedented funding
Wh t d itWhat does it mean
UnprecedentedUnprecedented transparency
SummationSummationWe lack control of our current energy sourcescurrent energy sourcesLots of regulations stalling development now and moredevelopment now and more soonNeed deep efficiency and significantNeed deep efficiency and significant amounts of responsible renewables to provide economic security and p yprosperityWill need extensive policy reforms and p yindustry leadership to achieve goals
Planning
Thank You!Thank You!
Panama Panama BartholomyBartholomy(916) 654(916) 654--48964896(916) 654(916) 654 48964896pbarthol@[email protected] ca usstate ca usstate.ca.usstate.ca.us