energy efficiency in the clean power plan opportunities for virginia mary shoemaker research...
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Energy Efficiency in the Clean Power Plan
Opportunities for Virginia
Mary ShoemakerResearch AssistantSpring 2015 VAEEC MeetingMay 11, 2015
The American Council for an Energy-Efficient Economy (ACEEE)
• ACEEE is a 501(c)(3) nonprofit that acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, & behaviors
• 50 staff; headquarters in Washington, D.C.• Focus on end-use efficiency in industry, buildings, &
transportation• Other research in economic analysis; behavior; energy
efficiency programs; & national, state, & local policy• Funding:
◦ Foundation Grants (52%)◦ Contract Work & Gov’t. Grants (20%)◦ Conferences & Publications (20%)◦ Contributions & Other (8%)
www.aceee.org/@ACEEEdc
Today we’ll discuss
• Overview of the Clean Power Plan (CPP)
• Role of energy efficiency in the CPP• Energy efficiency in Virginia in context of
CPP
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EPA’s Clean Power Plan
EPA proposing to regulate carbon emissions from existing power plants under section 111(d) of the Clean Air Act.• 17% reduction in GHG emissions by 2030
relative to 2012 levels, or 30% reduction by 2030 relative to 2005 levels
• Individually tailored state targets• Allows for flexible approaches including energy
efficiency!
Timeline of EPA and State Actions
Spring - Summer 2015
EPA releases sample federal model plan for
states
Summer 2015
EPA releases final rule for existing power plants
Summer 2016
Final state plans due to EPA (may request extension until Summer 2017)
Summer 2017
Final multi-state plans due to EPA (may request extension until Summer 2018)
Present - Summer 2016
State air agencies conduct stakeholder engagement
State Compliance Plans
States develop and submit a written document or set of documents detailing all the things the state will do to reach its goal.
Air agencies are most likely responsible for developing the plans, but other agencies will likely be brought in.
States submit plans to regional EPA offices.• Potential for EPA Federal Implementation Plan
(FIP)
State Targets
Source: National Conference of State Legislatures
State Targets
States can opt for an emissions rate limit (lb/MWh) or an emissions cap (tons CO2).
EPA determined that the best way to cost-effectively reduce emissions from existing power plants was through a system that includes 4 “building blocks”:
1. EE improvements at the plant – “supply-side EE”
2. Dispatch more gas and less coal
3. Renewables
4. End-use EE
What Can be in a Compliance Plan?
The kitchen sink! Maybe not quite….
• The 4 building blocks as EPA suggested
• The 4 building blocks in greater or lesser amounts than EPA suggested
• Activities beyond the 4 building blocks if the activity reduces CO2 from existing power plants
The multiple benefits of energy efficiency as a compliance option
• Low-cost and reliable resource
• Saves utility customers money
• Reduces multiple pollutants
• Boosts state economies
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Comparing the costs of some compliance options
Energy Ef-ficiency
Wind Natural Gas
Com-bined Cycle
Coal Nuclear Biomass Solar PV Coal gasi-fication
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Ra
ng
e o
f L
ev
eliz
ed
Co
sts
(c
en
ts p
er
kW
h)
Source: Energy efficiency program portfolio data from Molina 2014; All other data from Lazard 2013.
How Energy Efficiency Creates Jobs
Source: http://aceee.org/files/pdf/fact-sheet/ee-job-creation.pdf
Efficiency Policies and Programs under 111(d)
EPA seems to have a lot of comfort with ratepayer funded EE.• Demand-side EE programs• Energy Efficiency Resource Standards
States can think outside the box!
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ACEEE’s 2014 State Energy Efficiency Scorecard
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Appliance and Equipment Efficiency Standards
(4%)
States have been doing EE for years, so it’s a tried and true method.
Variety of ways states can plan for efficiency
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2014 State Scorecard Results
Virginia in the State Scorecard
35th place 12.5/50 points
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Virginia Tennessee North Carolina
Kentucky West Virginia
Maryland0
10
20
30
40
50
Utilities Transportation Building Codes
CHP State-Led Initiatives Appliance Standards
Virginia in the Clean Power Plan
Virginia rate reduction: 44% by 2030
Opportunity for job growth: between 54,000 and 122,000 jobs added as a result of compliance.
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99% of EPA's goal achieved by selected measures
Virginia: A Policy ScenarioImpact of measures on emissions rate compared to EPA goal (as a percentage)
0%
10%
20%
30%
40%
50%EPA goal emission rate reduction
Annual 1% energy sav-ings target
Building energy codes (high)
Combined heat and power (CHP) (high)
ESCO programs
Impact of Clean Power Plan in Virginia
Stakeholders: anyone who uses electricity
Presents opportunities on many levels, for• Utilities as their business model shifts,
customer awareness of efficiency grows, and efficiency becomes a firm earnings opportunity
• Localities as they weigh in on programs and contribute towards state pollution savings
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What can Virginia do right now?
Identify existing programs and estimate their pollution reduction potential.
Convene a variety of stakeholders to solicit input.
Evaluate current regulatory structures and laws.
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ACEEE ResourcesACEEE 111(d) site
National Association of State Energy Officials (NASEO) and ACEEE 111(d) Resource Hub
Compliance templates• Building codes• CHP• Financing• EERS
State and Utility Pollution Reduction Calculator (SUPR)
Energizing Virginia: Efficiency First
Technical assistance as needed!
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Additional ResourcesE&E’s Power Plan Hub: http://www.eenews.net/interactive/clean_power_plan/
Bipartisan Policy Center CPP Comments Map: http://bipartisanpolicy.org/energy-map/
NCSL - Summary of State Reactions to CPP: http://
www.ncsl.org/research/energy/states-reactions-to-proposed-epa-greenhouse-gas-emissions-standards635333237.aspx
- Energy and Environmental Legislation database: http://www.ncsl.org/research/energy/energy-environment-legislation-tracking-database.aspx
SEEA 111(d) Web Portal: http://www.seealliance.org/policy-initiatives/emerging-initiatives/clean-air/
Questions? Comments?Mary Shoemaker
Research Assistant
202-507-4003
Conclusion
Clean Power Plan
Opportunity for efficiency
Pathways for efficiency in Virginia• ESCOs, CHP, Building Codes, and annual
savings target
Engagement of utilities and municipalities
Action steps!
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Questions? Comments?Mary Shoemaker
Research Assistant
202-507-4003
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