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WGA Clean and WGA Clean and Diversified Energy Diversified Energy

Advisory Advisory Committee BriefingCommittee Briefing

Brian HoriiBrian Horii

Energy and Environmental Energy and Environmental Economics, IncEconomics, Inc

415-391-5100415-391-5100

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BackgroundBackground

Clean and Diversified Energy Clean and Diversified Energy Initiative launched in June 2004Initiative launched in June 2004

““Identifying ways to increase the Identifying ways to increase the contribution of renewable energy, contribution of renewable energy, energy efficiency, and clean energy energy efficiency, and clean energy technologies within the context of the technologies within the context of the overall energy needs of the West.”overall energy needs of the West.”

Transportation, buildings, electricity, Transportation, buildings, electricity, and other needsand other needs

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GoalsGoals

30,000 more MW of clean energy by 2015 30,000 more MW of clean energy by 2015 (EE, solar, wind, geothermal, biomass, (EE, solar, wind, geothermal, biomass, clean coal, advanced natural gas)clean coal, advanced natural gas)

20% electricity savings by 2020, relative 20% electricity savings by 2020, relative to reference caseto reference case

Ability to meet transmission needs of the Ability to meet transmission needs of the West for the next 25 years.West for the next 25 years.

Better position Western energy system to Better position Western energy system to respond to new environmental challengesrespond to new environmental challenges

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Clean and Diversified Clean and Diversified Energy Advisory CommitteeEnergy Advisory Committee

To identify technically and financially To identify technically and financially viable policy mechanisms, stressing non-viable policy mechanisms, stressing non-mandatory, incentive-based approachesmandatory, incentive-based approaches

Formed task forces for specific options Formed task forces for specific options such as energy efficiencysuch as energy efficiency Consider price, reliability, and the mitigation Consider price, reliability, and the mitigation

of environmental impacts of all of environmental impacts of all recommendationsrecommendations

Develop energy efficiency recommendations Develop energy efficiency recommendations that take into account all types of energy used that take into account all types of energy used in buildings, not just electricityin buildings, not just electricity

Identified cost-effective energy efficiency Identified cost-effective energy efficiency that can reduce annual load growth in the that can reduce annual load growth in the West from 2% to 0.5% .West from 2% to 0.5% .

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Task Force Task Force Recommendations – State Recommendations – State

LevelLevel ElectricityElectricity

Require utilities to integrate cost effective Require utilities to integrate cost effective DSM into resource planning and procurementDSM into resource planning and procurement

Dedicate at least 2% of revenues to energy Dedicate at least 2% of revenues to energy efficiency (if cost effective (CE))efficiency (if cost effective (CE))

Establish minimum savings targetsEstablish minimum savings targets Recommend 3-5% of projected sales in 2010 (if CE)Recommend 3-5% of projected sales in 2010 (if CE) Recommend 10-15% of projected sales in 2020 (if Recommend 10-15% of projected sales in 2020 (if

CE)CE) DecoupleDecouple Add incentives for implementing CE DSM programsAdd incentives for implementing CE DSM programs

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Task Force – GasTask Force – Gas

Encourage or require utilities to Encourage or require utilities to integrate EE into resource planning and integrate EE into resource planning and

procurementprocurement pursue EE whenever it is the lowest cost resource pursue EE whenever it is the lowest cost resource

optionoption Recommend investing 1.5-2% of revenues on Recommend investing 1.5-2% of revenues on

EEEE Recommend 0.5-1.0% savings per year (if CE)Recommend 0.5-1.0% savings per year (if CE)

Decouple, add incentives for implementing CE DSM Decouple, add incentives for implementing CE DSM programsprograms

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Task Force – Building Task Force – Building Energy CodesEnergy Codes

Adopt the 2004 International Energy Adopt the 2004 International Energy Conservation Cost, and consider features of CA Conservation Cost, and consider features of CA Title-24Title-24

Update codes frequently (3-yr cycle suggested)Update codes frequently (3-yr cycle suggested) Implement code training and technical Implement code training and technical

assistance for architects, builders and local assistance for architects, builders and local code inspectors.code inspectors.

Establish a “reach code” for state-owned Establish a “reach code” for state-owned buildings to exceed the standardsbuildings to exceed the standards

Establish a regional building code collaborativeEstablish a regional building code collaborative

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OthersOthers Adopt minimum efficiency standards for Adopt minimum efficiency standards for

appliances not covered by federal standardsappliances not covered by federal standards Establish goals for reducing energy Establish goals for reducing energy

intensity by 2%/yr or greater in state intensity by 2%/yr or greater in state buildingsbuildings

Consider providing tax incentivesConsider providing tax incentives Decouple and adopt inverted block rates for Decouple and adopt inverted block rates for

residential electricity and consider for residential electricity and consider for natural gasnatural gas

Continue and expand education and trainingContinue and expand education and training Initiate, continue and expand R&DInitiate, continue and expand R&D

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Task Force – Regional Task Force – Regional InitiativesInitiatives

Create regional market-transformation Create regional market-transformation organizationsorganizations Promote energy star, train the building sector, Promote energy star, train the building sector,

develop targets and standards, promote best develop targets and standards, promote best practices, and perform R&D.practices, and perform R&D.

Building energy code collaborativeBuilding energy code collaborative Coordinated appliance standards advocacyCoordinated appliance standards advocacy Quantify air emission benefits of EEQuantify air emission benefits of EE Inclusion of EE in transmission planningInclusion of EE in transmission planning Develop a working group to help overcome the Develop a working group to help overcome the

barriers to implementing EE in commercial barriers to implementing EE in commercial and public buildings.and public buildings.