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
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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
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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
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Traditional SEP appropriations to CA $1-3 million annually
Types of activities allowed under SEP z
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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
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$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
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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
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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
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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
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$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
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$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