DRAFTRegional Energy Efficiency Strategy

Public Workshop

September 2, 2009

Lisa Van de WaterAir Quality Specialist

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Regional Energy Efficiency Strategy – the basics

• Long-range strategy to programmatically encourage & incentivize non-regulatory emissions reductions through energy efficiency

• Regional, coordinated approach to EE• Partnership with & leveraging of existing EE

programs (utilities, regional partners) to maximize efficiency & emissions reductions

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Overview

• 2007 Ozone Plan – Dual-path Strategy

• Electricity Production & Consumption

• REES Components

• ARRA “kick-start”

• Review Schedule

• Questions & Comments

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2007 Ozone Plan

• Attainment of 8-hour federal ozone standard

• Significant Challenges– Topography– Meteorology

• “Dual-path” strategy– Regulatory Measures– “Black-Box” – Fast Track Strategy

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2007 Fast TrackEmission Reduction Measures

• Green Contracting• Green Fleets• Truck Replacement/Retrofit/Repower• Short Sea Shipping• High-Speed Rail• Alternative Energy• Energy Conservation – Efficiency• Heat Island Mitigation• Episodic/Regional Controls• Inland Ports

6

“Green” Clean Air Opportunity

• Need for non-regulatory emissions reductions

• AB 32 greenhouse gas reductions

• American Recovery & Reinvestment Act– Significant energy efficiency & renewable

energy dollars– Economic stimulus

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Complexity of Electricity

• Production– What resource: fossil fuel or renewables– Where: local or imported– How clean: what are the byproducts– Cost: base load versus peak load

• Consumption– Who: sectors– When: off-peak or peak– For what: critical systems or household appliances

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Complexity of Electricity

• Production– What resource: fossil fuel or renewables– Where: local or imported– How clean: what are the byproducts– Cost: base load versus peak load

• Consumption– Who: sectors– When: off-peak or peak– For what: critical systems or household appliances

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Complexity of Electricity

• Production– What resource: fossil fuel or renewables– Where: local or imported– How clean: what are the byproducts– Cost: base load versus peak load

• Consumption– Who: sectors– For what: critical systems or household appliances– When: off-peak or peak

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Electricity Use & Air Quality

NO x

SOx

Source: eGRID2007 Version 1.0, Year 2005 Summary Tables (created in 2008)

CAMX

*

CO2 712 lb/MWh

CH4 30 lb/GWh

N2O 8 lb/GWh

NOX 0.6 lb/MWh

SOX 0.5 lb/MWh

TX

1,324

18

15

0.8

3.2

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Electricity Generation Resource Mix

Source: eGRID2007 Version 1.0, Year 2005 Summary Tables (created in 2008)

CAMX = 0.24%US = 0.01%

All Fossil FuelsCAMX – 56%

US – 72%

back

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California Major Utilities' Resource Mix

2.0%1.0%3.0%2.0%3.0%1.8%Wind

1.0%<1%<1%0.0%1.0%0.2%Solar

3.0%4.0%<1%4.0%1.0%2.1%Small Hydro

3.0%<1%2.0%2.0%9.0%4.7%Geothermal

3.0%1.0%3.0%5.0%2.0%2.1%Biomass

12.0%6.0%8.0%13.0%16.0%10.9%Renewables

0.0%10.0%15.0%23.0%17.0%12.9%Nuclear

41.0%30.0%50.0%42.0%54.0%41.5%Natural Gas

47.0%6.0%10.0%19.0%5.0%19.0%Large Hydro

0.0%48.0%18.0%3.0%8.0%15.7%Coal

SMUDLADWPSDG&EPG&ESCEStatewideResource Type

SOURCE: CEC Website Data - 2006 http://energyalmanac.ca.gov/electricity/electricity_resource_mix_pie_charts/index.html

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Complexity of Electricity

• Production– What resource: fossil fuel or renewables– Where: local or imported– How clean: what are the byproducts– Cost: base load versus peak load

• Consumption– Who: sectors– For what: critical systems or household appliances– When: off-peak or peak

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Base Load & Peak Load

Base

Intermediate

Peak

WinterPower Demand

Time of Day

Base

Intermediate

Peak

SummerPower Demand

Time of Day

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Complexity of Electricity

• Production– What resource: fossil fuel or renewables– Where: local or imported– How clean: what are the byproducts– Cost: base load versus peak load

• Consumption– Who: sectors– For what: critical systems or household appliances– When: off-peak or peak

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CA Electricity Usage per Capita

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CA Electricity Demand

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Complexity of Electricity

• Production– What resource: fossil fuel or renewables– Where: local or imported– How clean: what are the byproducts– Cost: base load versus peak load

• Consumption– Who: sectors– For what: critical systems or household appliances– When: off-peak or peak

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Streetlight1%

Residential32%

Mining Construction

2%

Industry15%

Commercial Building

37%

Commercial Other

5%Ag Water Pump

8%

Source: CA Energy Commission, Energy Consumption Data Management System; 2007 All Utility Entities

California Electricity Consumption

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Lodging4.9%

Misc.16.1%

Health6.8%

Retail14.7%

Refrigerated Warehouse

2.9%

Food Store8.8%

Unrefrigerated Warehouse

3.7%

School5.0%

College3.8%

Small Office7.1%

Large Office17.4%

Restaurant8.9%

Source: CA Energy Commission, California End-Use Survey, 2006

Commercial Electricity Use by Building Type

All Office 24.5%

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Motors4.2%Air Compressors

0.3%

Process1.0%

Miscellaneous5.8%

Refrigeration13.4%

Cooking4.2%

Water Heating0.9%

Interior Lighting28.7%

Exterior Lighting5.8%

Office Equipment7.1%

Heating1.6%

Cooling14.9%

Ventilation11.9%

Source: CA Energy Commission, California End-Use Survey, 2006

Commercial Electricity Usage by End Use

Total Lighting

35%

Lighting Cooling

Refrigeration Ventilation

75%

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Lighting8.8%

Laundry Appliances

6.7%

Home Electronics7.2%

Other Equipment2.5%

Other End Uses7.7%

Heating, Ventilation,

Cooling31.2%

Kitchen Appliances

26.7%

Water Heating9.1%

Source: End-Use Consumption of Electricity 2001, Energy Information Administration, U.S. Department of Energy

Residential End-Use Electricity Usage

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Regional Energy Efficiency Strategy

• Outreach, Information & Education• Tools & Programs

– Residential, Commercial/Industrial, Local Government

– Programs for successful energy efficiency & green fleets programs

• Grants Program– Expand existing opportunities– New grant opportunities

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Outreach, Education & Information

• Healthy Air Living

• Targeted Outreach– Local Government– Minority Small Business– Neighborhood Groups– Industrial Regulated Sources– Ag Regulated Sources

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Outreach, Education & Information

• Comprehensive Energy Website

• Energy Efficiency Opportunities Analysis– Model after studies by McKinsey & Company

• Look at economics of Energy Efficiency & GHG abatement

• Focus on the regional scale

– Enlist help from • Valley Colleges & Universities• Regional energy efficiency experts

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McKinsey & Company, December 2009

U.S. Energy Efficiency Supply Curve - 2020

Dollars per million BTU’s saved over

lifetime of measure.

80% of opportunity requires deploying

58% of upfront investment.

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Tools & Programs

• Residential Programs– Categories of homes– Packaged retrofits– Efficient efficiency

• Commercial Programs– Energy audit– Retrofits– Simple work practices– Long-range strategies for sustainable efficiencies &

renewables

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More Tools & Programs

• Industrial Programs– Processes & operations– Office efficiencies

• Municipal Programs– Energy policies– Implementation assistance

• Fleets– Fuel efficiency, fleet minimization– Alternative fuels

• CNG/LNG• Electric with solar recharge

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Grants & Incentives

• Expand ERIP to include energy efficiency

• Broad spectrum of assistance• EE projects that improve air quality

– Technical assistance for grant applications

– Letters of support from AQ perspective

– Grant administration with partners

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Partnerships

• Coordination is key– Message– Programs

• Next two years– SJVCEO– ARRA funds & projects– EE Opportunities Analysis

• Utility Partners – best way to reach multiple markets/customers so that efforts are not duplicated

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“Kick Start” with ARRA

• EECBG Program for small jurisdictions– Regional application– Maximize dollars brought in & energy savings

• SEP funding through CEC– Municipal financing opportunities– Comprehensive Retrofit Program

• Residential• Commercial

• Other grant opportunities – $7.1 million, so far– Alternative fuels & vehicles– Renewable Energy

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Implementation

• End of 2009 – submit ARRA applications to CEC & initiate programs

• February 2010 – EE & RE website• End of 2010 – Energy Efficiency

Opportunities Analysis• Ongoing – Outreach & Education; monitor

EE savings; monitor emissions reductions• 2011 & beyond – Expand programs &

grants opportunities

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Review Schedule

• Fast Track Task Force – June 16

• Public Workshop – September 2nd

– Present draft– Comment period ends September 16th

– Revised draft

• Governing Board – November 5th

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Comment Deadline

• 5:00 p.m. September 16, 2009• Contact: Lisa Van de Water• Mail: San Joaquin Valley APCD

1990 E Gettysburg AveFresno CA 93726

• Phone: (559) 230-6100• Fax: (559) 230-6064• Email:

lisa.vandewater@valleyair.org

Thank You