1

Energy Efficiency (EE) & Renewable Energy (RE) in SIPs –

EPA’s Roadmap and a Tour of Several States

National Air Quality Conference

Angie Shatas, U.S. EPA

February 12, 2014

2

Goals

EE/RE – the lay of the land EPA’s Roadmap Touring a few states

What is EE/RE?

Energy Efficiency & Renewable Energy policies and programs

Require parties to use or fund EE/RE through regulation, statute or Public Utility Commission (PUC) order

Increase adoption of energy efficient practices End-user education and incentives (e.g., consumer awareness and rebate

programs)

Increase production and use of RE sources (e.g., solar, wind, biomass)

Renewable Portfolio Standards (RPS) and Energy Efficiency Resource Standards (EERS) can be state requirements that include any of the above 3

A current map of state EE/RE policies

5

Energy Efficiency Resource Standards

Mandatory -

Voluntary -

24

6

Last updated 8/22/2013

Mandatory - 24

Voluntary - 6

Renewable Portfolio Standards

Mandatory -

Voluntary -

29

9

Last updated8/8/2013

Mandatory - 29

Voluntary - 9

Elements for Success when incorporating EE/RE in SIPs

State-wide policies produce greater potential emission benefits

Dialogue between air and energy agenciesEnergy agencies provide

prospective view of energy

savings (for SIP submittal) and

retrospective view (verification) Quantification tools to determine if and to

what extent an EE/RE initiative is affecting a particular nonattainment area

6

Past Experiences with EE/RE in SIPs

2004 EE/RE guidance Feedback from states

The expected SIP credit was not worth the analysis effort. Documentation requirements were burdensome. Achievable emissions reductions were not clear. More detailed EPA guidance needed.

7

EPA’s Roadmap

Help states include EE/RE in SIPs Roadmap

Clarifies existing guidance Lays out four pathways for SIP credit Identifies quantification approaches

Resources/Tools Baseline analysis - Projected energy impacts of “on-

the-books” state EE/RE policies AVoided Emissions and geneRation Tool (AVERT) -

emissions quantification (translates EE/RE to emissions)

Frequently Asked Questions

9

4 Pathways

Baseline Control Strategy

Emerging/Voluntary Measures

Weight of Evidence

Emerging Voluntary

Types of Projects For “on the books” policies; Best on a

state-wide or regional basis

For “on the way” policies

For locally-based activities; can be

bundled

For locally-based activities; can be

bundled

Any

SIP Credit Limit None None 6% of total required emission reductions (3% mobile + 6% other)

6% of total required emission reductions(3% mobile + 6% other)

No credit taken but do get emissions

benefits

Enforcement State enforceable ** but not Federally

enforceable

Federally enforceable against

the responsible party*

Enforceable against the source

Not enforceable against the source or implementing

party

None

If SIP reductions do not materialize

Air agency required to make up for

emission shortfall; CAA SIP call

Responsible party required to comply

State responsible for reductions

State responsible for reductions

SIP revision

Level of documentation

Significant analysis: show reductions in place for planning period; quantify

impacts; ensure no double counting

Significant analysis: show reductions are

permanent, enforceable, quantifiable,

surplus

Moderate:show reductions are

permanent, enforceable, quantifiable,

surplus

Moderate:show reductions are

permanent, enforceable, quantifiable,

surplus

Range: depends on level of analysis

* May be the load serving entity required to implement EE/RE.** If a municipality has initiated a measure, then the state may delegate responsibility to the municipality.

Baseline Analysis – EE/RE Policies in AEO 2013

•Federal appliance standards

•State building codes

•Direct federal spending on EE

•Renewable portfolio standards (RPS) – 29 states and DC as of Nov 2012

EE/RE Policies Explicitly

Included in AEO 2013

•Energy Efficiency Resource Standards (EERS) – 25 states

•Other EE program funding (in states without EERS policies) – 5 states 

•Renewable Portfolio Standards (RPS) – 2 states between Dec ’12-Jun ’13

EE/RE Policies NOT

Explicitly Included in AEO 2013

10

Policy Assessment Criteria

Adopted in state legislation or Public Utility Commission (PUC) order (i.e. “on-the-books”)

Goal:

EPA and most states use the AEO 2013 energy policy assumptions in their SIP baseline emission projections.

Quantification –from Basic to Sophisticated

BasiceGRID region non-baseload

emission rates

SophisticatedEnergy Modeling

11

End use demand

Energy Model

User-defined constraints

Technology data Fuel

data

Emission factors

Environmental regulations

Economic parameters

Intermediate

Historical Hourly

Emissions Rates

12

AVERT

EPA-developed quantification tool Addresses a key reason states have not implemented

previous EE/RE SIP guidance Simulates dispatch to predict hourly changes in generation

and emissions (NOx, SO2 and CO2) at electric generating units (EGUs) due to EE/RE Uses actual data reported to EPA’s Clean Air Markets Division

(CAMD) through Acid Rain Program

13

WA

OR

CA

NV

UT

ID

MT

WY

CO

AZNM

TX

OK

KS

NE

SD

NDMN

WI

IA

MO

IL IN

MI

OH

KY

TN

AR

LA

MS AL GA

FL

SC

NC

VA

WV

PA

NY

MENH

VT

MA

RICT

NJ

DE

MD

State with active interest

State with interest

Current Engagement with States

State with Ozone Advance area(s)

14

States on the way - Maryland

Pathway: Weight of Evidence Ozone attainment SIP for moderate area (due July 2015) Participant in NESCAUM pilot project EE/RE policies and programs in place

Maryland Renewable Portfolio Standard EmPower Maryland energy conservation program Regional Greenhouse Gas Initiative (RGGI) Transit and smart growth initiatives Green building initiatives Electric vehicle initiatives

15

States on the way – New York

Pathway: Control SIP and timing: TBD Participant in NESCAUM pilot project EE/RE policies and programs in place

Combined Heat and Power – also for boiler MACT compliance NY-Sun Initiative – public/private partnership to increase solar capacity Build Smart NY – reduce average energy usage in NY public buildings

by 20% Renewable Portfolio Standard Energy Efficiency Resource Standard

16

States on the way - Massachusetts Pathway: Baseline emissions projection SIP and timing: TBD Participant in NESCAUM pilot project EE/RE policies and programs in place

Renewable Portfolio Standard Energy Efficiency Resource Standard

17

Other states on the way – North Carolina, Kentucky, Utah, Louisiana

North Carolina Looking at ozone reductions In place: Renewable Portfolio Standard

Kentucky In place: Voluntary energy efficiency targets through PUC orders

Utah Case study underway Looking at PM2.5 emission reductions In place: Renewable Portfolio Standard

Louisiana Ozone Advance areas In place: local energy efficiency projects

18

For More Information:

Angie Shatas, EPA OAQPS

919-541-5454 | shatas.angie@epa.gov

Robyn DeYoung, EPA OAP

202-343-9080 | deyoung.robyn@epa.gov

http://www.epa.gov/airquality/eere/

- EE/RE Roadmap manual

- Frequently Asked Questions

- AVERT