Bright Green

Page 1

Stimulus Funding:

The Revolution Will Be Funded

Unlocking g the ARRA's Full Economic, Social, and E i Environmental t l Potential P t ti l for f California Bright g Green Future 2009 10/23/09 San Diego, CA

Panama Bartholomy Advisor to Chairman Douglas California Energy Commission


Where We Are Going Today z

California Energy Context z z z

Electricity Natural Gas Transportation

Policy Solutions z Recovery Act Opportunities z


Electricity (2008) Source Natural Gas Nuclear Large Hydro Coal* Renewable

46.5% 14.9% 9 6% 9.6% 15.5% 13.5%


California’s Power Plants z

Over 980 power plants in CA over .1 1 MW


California’s Greenhouse Gas E i i Emissions in i 2004 Transportation 38%

Residential 6% Commercial 3% Electricity Generation (In-State) 12%

Electricity Generation (Imports) 13%

Industrial 20% Agriculture A i lt 6%


California State Electricity Demand F Forecast t


CA Electricity Demand Forecast 2020 120,000 100,000

GwH

80 000 80,000 Residential Commercial Industrial Mining Agricultural

60,000 40,000 20,000 , 0 2005

2008

2011

2014

2017

2020


Loading Order‌


State Energy gy Policy y

2007 Integrated Energy Policy Report •Require net zero energy by 2020 ffor residences id and d 2030 for commercial buildings. CPUC and CEC Big, Bold Initiatives •Will invest over $15 $ Billion in efficiency by 2030


E i ti Existing Buildings B ildi z

75% of CA’s CA s residential buildings and 5 5.25 25 billion square feet of commercial buildings were built before 1978’s 1978 s energy efficiency standards


EFFECT OF TITLE 24 120 100 kBTU /sf-yr

80 60

Improvement from 1978 to 2005 = 47% Improvement from 1990 to 2005 = 30% Water Heating Space Cooling Space Heating

40 20 0 70s 1978 1984 1988 1992 1998 2001 2005


Existing Buildings Climate I Impact t Buildings are the second largest contributor to California’s greenhouse gas emissions and nations largest • In 2007 AIA poll only y 7% of respondents correctly y identified buildings g as the top emitter

z


CA Building Greenhouse Gas Emissions 2004 Transportation 38%

Residential 6% Commercial 3% Electricity Generation (In-State) 12%

Electricity Generation (Imports) 13%

IIndustrial d ti l 20% Agriculture 6%


California Buildings End Use 2004 GHG Emissions Cooking 7.0 6%

Cold Storage 14.4 13%

State wide GHG State-wide Emissions –13.6% Residential Water –7.5% %Heating C Commercial 19.8 –2.3% 17%Industrial

Ventilation 4.6 4%

Heating 16.6 15%

Lighting 13.3 12%

Misc 28.8 25%

Cooling 8.7 8%


TVs TV z

Energy Commission has proposed energy efficiency standards for televisions for 2011


AB 758: The Day it All Changed z

California Energy Commission to develop and implement a comprehensi comprehensive e program to achieve greater energy savings in existing residential and nonresidential b buildings, ildings including: z z z z z

energy assessments, t cost-effective energy efficiency improvements, financing options, public outreach, and education efforts


R Renewable bl Energy E z

Renewable R bl P Portfolio tf li St Standard d d (RPS) z

z

IInvestor t Owned O d Utilities Utiliti mustt procure 20% of their electricity from renewable resources no later than 2010. Municipal utilities are directed to d develop l a program th thatt achieves hi the same goals

z CEC

and CPUC adopted goal of 33% by 2020


Renewable Portfolio Standard 33% by 2020

20% by 2010

2007 11.8%

2002 11.0% (RPS begins)

1983 1988 1993 1998 2003 2008 2013 2018 Year



SB 1: “Million Solar Roofs� 93000 MW goal, combined POU/IOU effort 9$3 2 Billion in 9$3.2 Rebates

9Solar on 50% of new homes by end of program 9Solar Industry self selfsufficient in 10 years 9F those 9For h developments of 50+ h homes, builders b ild mustt offer PV as option as off 1/1/2011



Natural Gas (2007) Source In State 12 9% 12.9% Canada 22.1% Rockies 24 2% 24.2% Southwest

40.8%


N t Natural l Gas G


$9.00 $8.00

Wholesale Natural Gas Prices in California

$7.00 $6.00 $5 00 $5.00 $4.00 Dollars per Thousand Cubic Cub c Feet eet

$3.00 $2 00 $2.00 $1.00 $0.00 1985

1990

1995

2000

2005


S l H Solar Hott W Water t


Crude Oil (2008) Source In State

38.12%

Alaska

13 41% 13.41%

Foreign

48.46%



California Weekly Retail Gasoline Prices (Cents per Gallon) 500 450 400 350 300 250 200 150 100 50 0

Weekly California Regular Reformulated Retail Gasoline Prices (C (Cents per G Gallon) ll )


Tail Pipe and Fuel Standards AB 1493, Statutes 2002 z

By y 2016 vehicles in CA must be 30% more GHG efficient than those sold in 2002

Low Carbon Fuel Standard z

Reduce GHG impacts in CA’s transportation fuels 10% below 2007 levels by 2020.


VMT and Population in CA 1975-2004 200

40,000,000

180

35,000,000

30,000,000 140 25,000,000

120 100

20,000,000

80

15,000,000

60 10,000,000 40 5,000,000

20 0

0 1975

1978

1981

1984

1987

1990

Year

1993

1996

1999

2002

Pop pulation

Annual V A VMT (Billlions)

160

Annual VMT (billions)

Population


200% 190% 180%

Historical and Projected Vehicle Miles Traveled (VMT) and GHG Growth

VMT

160%

GHG Growth

150% 140%

GHG Growth with AB 1493

130%

GHG Growth with AB 1493 and LCFS

120% 110%

Gap ~ 18%

100% 90%

2030

2028

2026

2024

2022

2020

2018

2016

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

80% 1990

Percent of 199 90 Growth h

170%


200% 190% 180%

Historical and Projected Vehicle Miles Traveled (VMT) and GHG Growth

VMT growth at 1%

160% 150% 140% 130% 120% 110% 100% 90%

2030

2028

2026

2024

2022

2020

2018

2016

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

80% 1990

Percent of 199 90 Growth h

170%

GHG Growth with 1% VMT G Growth , th AB 1493 and LCFS


California State Flower



CEQA GHG Guidelines OPR, by July 1, 2009, to prepare‌ CEQA guidelines for the feasible mitigation of greenhouse gas emissions or the effects of greenhouse gas emissions emissions‌ The Resources Agency is required to certify and adopt those guidelines by January 1, 2010.


O Energy Our E Situation Sit ti z

z

z

z

z

Most of our energy gy supply pp y is out of our control, leads to wild swings in prices Increased competition for supplies will continue to force prices up Increased environmental regulation on industry expected Need to find solutions to gain more control over supply and stabilize price volatility Must do so in an environmentally responsive way


The Real Energy/Climate 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) z

z

$787 Billion in funding appropriations and tax relief Nearly $63 billion for energy activities z z

$42 billion in appropriations $ $21 billion in energy tax incentives

www.energy.ca.gov/recovery


ARRA Goals z

z z

z

z

Preserve and create jobs and promote economic recovery. y Assist those most impacted by the recession. Provide investments needed to increase economic efficiency ffi i b by spurring i ttechnological h l i l advances d iin science and health. Invest in transportation, environmental protection and other infrastructure that will provide long-term economic benefits. S Stabilize S State and local government budgets in order to minimize and avoid reductions in essential services p state and local tax increases. and counterproductive


ARRA Energy gy Appropriations pp p z

Total of $42 billion z

$11 3 billion in formula $11.3 formula-based based funding z z z

z

Efficiency Renewables Green Community Plans

$30.7 $30 7 billi billion iin competitive titi and d di directt grant, t loan and loan guarantee funds z z z z

Transportation Transmission Renewables Research


American Recovery and Reinvestment Act of 2009 Energy Funding Implications for California


ARRA Formula Energy Appropriations z

Total of $11.3 billion in formula-based funding z

z

$3.1 billion State Energy Program • Energy Commission will receive $226 $ million $3 2 billi $3.2 billion E Energy Effi Efficiency i and d Conservation Block Grant Program • California local go governments ernments are e expected pected to receive over $300 of million • Energy Commission is expected receive $49 million


ARRA Formula Energy Appropriations z

Total of $11.3 billion in formula-based funding z

z

$5 billion for Low Income Home Weatherization • Community Services and Development Department will receive $185 million $300 million nationally for Energy Star Appliance pp Rebates • Energy Commission is expected receive $30 Million


State Energy Program (SEP) z

Energy Commission is expected to receive $226 million z

z

Traditional SEP appropriations to CA $1-3 million annually

Types of activities allowed under SEP z

z

z

Implementing building, industrial and t transportation t ti energy efficiency ffi i programs Expanding distributed generation, renewable energy and public education programs Conducting any activity to improve energy efficiency, increase use of renewable energy or i increase energy efficiency ffi i and d economic i development.


Phase I: SEP Proposed All Allocations ti 1.

2.

3.

Department p of General $25 million Services (DGS) Revolving g Loan Program g Clean Energy Workforce $20 million Training Energy Conservation $35 million Assistance Act (ECAA) Revolving Loan Program


Phase II: SEP Proposed All Allocations ti 4 4.

5.

Clean Energy Systems Revolving Loan P Program Energy Efficiency Retrofit Programs z z z

Residential Retrofit Non Residential Retrofit Municipal Financing Districts

Up tto $35 U million Up to $96 million


State Building Revolving Loan F d Fund


Clean Energy Workforce Training Program z z

z

Transportation Energy and Water y Efficiency Renewable Energy

z $90

Milli Million

z $20

million in ARRA funds

www.energy.ca.gov// greenjobs


Energy Conservation Assistance Act (ECAA) Revolving Loan Program z z

z

z

$25 million in low-interest low interest (1%) loans For energy efficiency, combined heat and power, demand reduction, water efficiency and generation projects Eligible g entities include: z Public Schools z Public Hospitals z Public Care Institutions z Units of Local Government Maximum Loan Amount is $3 million


Cl Clean E Energy Systems S t Targeting the private sector with up to $35 million in revolving loans z Focused on the following technologies:

z

z Bioenergy z Clean

Energy Manufacturing


Building Energy Efficiency B i Barriers z z

z

z

z

z

Building owners lack capital for improvements Lack 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 benefits Gaps in knowledge, skills, and experience of workforce limit scale L k off coordination Lack di i b between existing i i programs


Municipal Financing District Program


California Comprehensive Residential Building Retrofit Program


Municipal and Commercial Building Targeted Measure Retrofit Program


Energy Efficiency and Conservation Bl k G Block Grantt z

$3.2 billion nationallyy z

z z z

z

z

68% to local governments (directly to cities > 30,000 and counties > 200 000 population) 200,000 l ti ) 28% to state energy offices 2% to tribes 2% competitive grants

California local governments are expected to receive over $302 million directly Energy Commission is expected to receive $49 million


Energy Efficiency and Conservation Block Grant z

Assist eligible entities in implementing energy efficiency and conservation strategies g z to reduce pollution emissions from fossil fuels created as a result of activities within the jurisdictions of eligible entities; z to reduce total energy use; and z to improve energy efficiency in the transportation, building, and other appropriate sectors.


Energy gy Efficiency y and Conservation Block Grant z

Energy Commission is • Department of Energy expected to receive around released guidelines $49 million $ March 26 z

z

60% of the funds will be distributed to small municipalities i i liti th through h a bl block k grant program 40% will be placed into the State Energy Program and spent at the Energy Commission’s Commission s discretion


EECBG Small City/County Pass Pass-Through Through Funds z z z

z

z

z

Allocation based on a per capita formula Base allocation of $5.00 per person Base allocation increased byy unemployment p y rate z (1 + Unemployment rate) x $5.00 Establishes minimum funding levels: z $25,000 per City z $50,000 per County All Allows ffor energy efficiency ffi i projects j t or di directt equipment i t purchases Allocates 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 Purpose of the DOE WAP is to: - increase the energy efficiency of dwellings owned or occupied by low- income Californians - reduce total energy expenditures - improve health and safety Focus on vulnerable population


Energy Efficient Appliance Rebate Program and Energy Star Recovery Funding z z

Authorized in Energy Policy Act of 2005 $300 million available nationwide z

z

z

Estimated $35 million to California Energy Commission

Provides P id rebates b t tto residential id ti l consumers ffor purchase of Energy Star products to replace used appliances of the same type Rebates shall be used to supplement, not supplant existing funds


ARRA non-Formula Energy A Appropriations i ti z

Total of $30.7 $30 7 billion in competitive and direct grant, loan and loan guarantee funds


ARRA non-Formula E Energy A Appropriations i ti z $11

billi billion ffor Transmission z $4.5

billion for competitive smart grid demonstration projects z $3.25 $3 25 billion for Western Area Power Authority z $3.25 $3 25 billion for Bonneville Power Authority


ARRA non-Formula Energy Appropriations z

$1 billion for Transportation z

z

z

$300 million Clean Cities $300 million Diesel Emissions Reductions $400 million Electric Drive Vehicles


ARRA non-Formula Energy A Appropriations i ti – cont. t z

$6 billion for Renewable Energy z

Renewable Energy Loan Guarantees

Must commence construction prior to Sept. 30, 2011


ARRA non-Formula Energy A Appropriations i ti – cont. t z

$8.4 billion for Research z Clean Fossil Energy Energy, Energy Efficiency and Renewable Energy Research, Advanced B tt Battery Research R h


ARRA Energy Tax Incentives z

Total of $21 billion in tax incentives for energy z

z

z

z

$13 billion in renewable energy tax credits $1.6 billion Clean Renewable Energy B d Bonds $2.4 billion Qualified Energy Conservation Bonds $2 billion p plug-in g electric vehicle

www.energy.ca.gov/recovery


Wh t does What d it mean z

Unprecedented funding


Wh t does What d it mean z

Unprecedented transparency


Summation We lack control of our current energy sources z Lots of regulations stalling development now and more soon z Need deep efficiency and significant amounts of responsible renewables to provide economic security p y and prosperity z Will need extensive p policy y reforms and industry leadership to achieve goals z


Planning


Thank You! Panama Bartholomy (916) 654654-4896 pbarthol@energy.. pbarthol@energy state ca us state.ca.us


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