WGA Clean and Diversified Energy Advisory Committee Briefing

1
WGA Clean and Diversified Energy Advisory
Committee Briefing

• Brian Horii
• Energy and Environmental Economics, Inc
• 415-391-5100

2
Background

• Clean and Diversified Energy Initiative launched
  in June 2004
• Identifying ways to increase the contribution of
  renewable energy, energy efficiency, and clean
  energy technologies within the context of the
  overall energy needs of the West.
• Transportation, buildings, electricity, and other
  needs

3
Goals

• 30,000 more MW of clean energy by 2015 (EE,
  solar, wind, geothermal, biomass, clean coal,
  advanced natural gas)
• 20 electricity savings by 2020, relative to
  reference case
• Ability to meet transmission needs of the West
  for the next 25 years.
• Better position Western energy system to respond
  to new environmental challenges

4
Clean and Diversified Energy Advisory Committee

• To identify technically and financially viable
  policy mechanisms, stressing non-mandatory,
  incentive-based approaches
• Formed task forces for specific options such as
  energy efficiency
• Consider price, reliability, and the mitigation
  of environmental impacts of all recommendations
• Develop energy efficiency recommendations that
  take into account all types of energy used in
  buildings, not just electricity
• Identified cost-effective energy efficiency that
  can reduce annual load growth in the West from 2
  to 0.5 .

5
Task Force Recommendations State Level

• Electricity
• Require utilities to integrate cost effective DSM
  into resource planning and procurement
• Dedicate at least 2 of revenues to energy
  efficiency (if cost effective (CE))
• Establish minimum savings targets
• Recommend 3-5 of projected sales in 2010 (if CE)
• Recommend 10-15 of projected sales in 2020 (if
  CE)
• Decouple
• Add incentives for implementing CE DSM programs

6
Task Force Gas

• Encourage or require utilities to
• integrate EE into resource planning and
  procurement
• pursue EE whenever it is the lowest cost resource
  option
• Recommend investing 1.5-2 of revenues on EE
• Recommend 0.5-1.0 savings per year (if CE)
• Decouple, add incentives for implementing CE DSM
  programs

7
Task Force Building Energy Codes

• Adopt the 2004 International Energy Conservation
  Cost, and consider features of CA Title-24
• Update codes frequently (3-yr cycle suggested)
• Implement code training and technical assistance
  for architects, builders and local code
  inspectors.
• Establish a reach code for state-owned
  buildings to exceed the standards
• Establish a regional building code collaborative

8
Others

• Adopt minimum efficiency standards for appliances
  not covered by federal standards
• Establish goals for reducing energy intensity by
  2/yr or greater in state buildings
• Consider providing tax incentives
• Decouple and adopt inverted block rates for
  residential electricity and consider for natural
  gas
• Continue and expand education and training
• Initiate, continue and expand RD

9
Task Force Regional Initiatives

• Create regional market-transformation
  organizations
• Promote energy star, train the building sector,
  develop targets and standards, promote best
  practices, and perform RD.
• Building energy code collaborative
• Coordinated appliance standards advocacy
• Quantify air emission benefits of EE
• Inclusion of EE in transmission planning
• Develop a working group to help overcome the
  barriers to implementing EE in commercial and
  public buildings.