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Power of Partnerships to Accelerate Clean Energy Impacts

Wednesday, May 17 2:00pm

Panelists

Paul Miller, Louisiana Department of Natural Resources

Rodney Sobin, NASEO

Danielle Sass Byrnett, Department of Energy

Amy Kidd, Department of Energy

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Paul Miller Louisiana Department of Natural Resources

Paul D. Miller, PE Director, Louisiana Department of Natural Resources

Technology Assessment Division

Power of Partnerships to Accelerate Clean Energy Impacts 2017 Better Buildings Summit

Promotes Energy Efficiency in Louisiana Homes, Schools, Industry, Businesses, and Governmental Facilities Promotes the Responsible Development of All Forms of Energy including Renewables such as Solar, Wind, and Biomass Works with Partners such as the US Department of Energy, La Public Service Commission, La Dept. of Environmental Quality, La Dept. of Revenue, Clean Cities Coalitions, and various Local Governments Promotes the use of cleaner alternative motor vehicle fuels such as Natural Gas, Propane, and Electricity

Clean Air Act Clean Water Act Resources Conservation and Recovery Act (RCRA) Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

• National Ambient Air Quality Standards (NAAQS)

• National Emission Standards for Hazardous Air Pollutants

• New Source Performance Standards

• Acid Rain Program

• Title V Permit Program

Air Quality Standards have been established for 7 Criteria Pollutants

When an Area fails to meet the Standard a SIP is Required

• State Implementation Plan

Who, What, When, & How Standard will be met

• Non-attainment New Source Review

• Emission Offsets

Energy Efficiency/Alternative Fuel Use can be a part of the Plan & Actions Required for Attainment

• 1998: DNR established new energy efficiency programs

• Initially focused on individual homes

• Home Energy Rebate Option (HERO)

• Expanded to include low interest Revolving Loan Program focused on schools (>$30 Million to date)

• Expanded under ARRA in 2009 • State Buildings (Lead By Example) • Energy Star® Appliance Rebate Program • Energy Efficiency and Conservation Block Grant Program (EECBG) • Renewable Energy Program

Example of Environmental Benefits of an Energy Efficiency Program Louisiana’s HERO Program

Number Rebates Issued = 21,651 Amount of Rebate Money Awarded = $34,500,145.09 Emission Reductions Based on Average Annual Energy Savings per Existing Home Participant:

43.3 MMbtu 33.6 pounds SOX 7.2 Tons CO2 21.6 Pounds NOX

Based on Average Annual Energy Savings per New Home Participant: 21.9 MMbtu 17 pounds SOX 3.9 Tons CO2 10.9 Pounds NOX

Based on Average Annual Energy Savings per Small Retrofit Commercial Participant:

111.2 MMbtu 86.2 pounds SOX 19.6 Tons CO2 55.4 Pounds NOX

Environmental Benefit Emissions Avoided Annually Tons CO2 117,000 Tons Tons SO2 266 Tons Tons NOx 171 Tons

State Air Quality Planning

EPA sets National Ambient Air Quality Standards (NAAQS)

States in nonattainment have to prepare State Implementation Plans (SIPs), to show how they’ll meet each standard

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State air regulators looking for new ways to lower emissions, improve air quality

Meanwhile, PUCs and SEOs advancing proven EE/RE policies and programs

Opportunity for state air regulators to capture the emissions benefits

• EPA has developed resources, calculation methods and tools to help

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Source: ACEEE, 2012 “2012 State EE Scorecard”

Energy Efficiency Resource Standards

Source: CE2S

Electrification of Cargo Handling Equipment Use of Alternative Fuels (Ships, Trucks, Equipment) ◦ Compressed Natural Gas ◦ Ultra-low Sulfur Diesel ◦ Propane ◦ Electricity

Use of Add-on Emission Controls ◦ Diesel Particulate Filter ◦ Diesel Oxidation Catalyst ◦ Selective Catalytic Reduction (SCR)

Management Controls ◦ Idle Reduction by Rail & Truck Equipment ◦ Automatic Identification System

School Buses ◦ Compressed Natural Gas ◦ Propane

Ferry Boat Engines ◦ Clean Diesel Technology ◦ Liquefied Natural Gas

Rail Yard Idle Reduction Programs Truck Stop Electrification

Presentation to

EPA Region 6 by

June 18, 2015

New Innovative Strategy to Reduce Ozone and Fine Particulate Pollution and to Mitigate Constraints to

Economic Development in the Baton Rouge Nonattainment Area

BRCAC 5

BRCAC is a coalition of local governments, state environmental agencies, businesses, industries, academic institutions, and civic organizations committed to improving air quality in the greater Baton Rouge area through voluntary actions and reasonable, effective regulatory actions. Members of our Coalition include: Capital Region Planning Commission Baton Rouge Area Chamber of Commerce Metro Baton Rouge area local governments Louisiana Department of Environmental Quality Louisiana Department of Natural Resources Louisiana State University LSU Center for Energy Studies Louisiana Association of Business and Industry Louisiana Mid-Continent Oil and Gas Association Louisiana Chemical Association Greater Baton Rouge Clean Cities Coalition ExxonMobil Dow Chemical Company Trinity Consultants Harris, DeVille & Associates Providence Engineering and Environmental Group Louisiana Ammonia Producers

Baton Rouge Air Quality Challenges

Baton Rouge area ozone levels are on a downward trend, and the area has achieved attainment with the old 1-hr ozone standard, the 1997 8-hr ozone standard, and the current 2008 8-hr ozone standard. The area’s 2014 ozone design value was 72 ppb. The current ozone design value for 2015 is 70 ppb. However, the area faces some daunting challenges:

It is expected that, in October, EPA will announce a new ozone standard ranging from 65 to 70 ppb. This will undoubtedly result in the Baton Rouge area falling back into nonattainment status for the ozone standard.

Only point sources are currently eligible for generation, banking and/or trading of emission reduction credits (ERCs) under current LDEQ rules. After several decades of aggressively reducing emissions of NOx and VOCs to mitigate ozone levels, Baton Rouge industries have practically exhausted opportunities for voluntary emission reduction projects and ERCs. Banked ERCs have been depleted and, for all practical purposes, are unavailable for new industries or expansions that would require them to meet offset requirements for air permits. The industrial renaissance that the Baton Rouge area was beginning to enjoy has come to a grinding halt.

BRCAC 18JUN15

PROPOSED ERC STRATEGY TO MITIGATE

OZONE AND FINE PARTICULATE POLLUTION

ERC generation and banking for point sources remain unchanged.

Mobile sources (i.e. heavy duty diesel vehicles/equipment) that operate in the 5-parish Baton Rouge nonattainment area become eligible for ERC banking projects.

Projects that reduce emissions from area sources (e.g. truck stop electrification) may be deemed eligible for ERC banking on a case-by-case basis.

BRCAC 18JUN15

THE PROPOSED ERC STRATEGY IS NOT UNPRECEDENTED

On July 2, 1999 EPA approved in the state’s SIP LAC 33:III Chapter 6, para. 607B. Eligible sources that may create and bank emission reductions include, but are not limited to, the following permitted and unpermitted source types regardless of the size of the source or the level of emissions:

1. stationary sources, including point sources, fugitive emission sources, and off-shore sources;

2. mobile sources, including on-road and off-road sources and marine vessels; and 3. Area and indirect sources, including non-point sources and agricultural sources.

EPA has a well-establish program for diesel emission reduction projects that generate emission reduction credits for use in SIPs and conformity determinations.*

EPA’s National Clean Diesel Campaign (NCDC) promotes clean air strategies by working with manufacturers, fleet operators, air quality professionals, environmental and community organizations, and state and local officials to reduce diesel emissions.

There are numerous other examples of mobile emission reduction credits being used in SIPs, conformity determinations, and banking for offsets.

*EPA. 2014. Diesel Retrofits: Quantifying and Using Their Emission Benefits in SIPs and Conformity EPA-420-B-14-007, February 2014

BRCAC 18JUN15

The Proposed ERC Strategy is a Win-Win-Win…..

ERC PROJECTS CAN START REDUCING EMISSIONS AND IMPROVING AIR QUALITY IN A RELATIVELY SHORT PERIOD OF TIME.

WILL REDUCE EMISSIONS FROM IMPORTANT OZONE PRECURSOR SOURCES NOT EASILY REGULATED BY LDEQ (E.G. MOBILE AND AREA SOURCES).

ALLOW FOR CONTINUED ECONOMIC AND TRANSPORTATION DEVELOPMENT (INCREASED AVAILABILITY AND LOWER COSTS FOR ERCs).

FACILITATE OVERALL EMISSIONS REDUCTIONS IN PURSUIT OF ATTAINMENT AND MAINTENANCE OF OZONE AND PM2.5 NAAQS.

ALLOW SOME MUCH-NEEDED MARGIN FOR CONFORMITY DETERMINATION UNDER AN EXPECTED NEW MORE STRINGENT OZONE STANDARD.

BRCAC 18JUN15

Partnerships can bring New Ideas Provide a Mechanism for Sharing on-going

Actions & Benefits Identify Cost Effective Options for Meeting

Environmental Requirements

Paul D. Miller, PE Director, Technology Assessment Division Louisiana Department of Natural Resources

225-342-1275 paul.miller@la.gov

Rodney Sobin NASEO

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NASEO Energy Efficiency Pathway

Templates: Tool for Energy-Air Quality Integration

Rodney Sobin Senior Program Director National Association of State Energy Officials Better Building Summit 2017 Power of Partnerships to Accelerate Clean Energy Impacts Washington, DC May 17, 2017

+ About NASEO

Formed by the states 1986

Membership includes the 56 Governor-designated State Energy Directors and Offices from each state and territory, as well as private sector affiliates

Advocates on behalf of the State Energy Offices with Congress, the Administration, federal agencies, and private-sector organizations

Serves as a resource for and about innovative state energy policies in order to support State Energy Offices in advising and informing their governors and legislatures

Facilitates peer-to-peer policy learning and adoption across states, with a particular focus on clean energy and economic development

Works through NASEO’s committee and regional structures to facilitate peer learning across states and to enable engagement of the states with private sector advocates, experts, and investors

Committees and Programs: Government Affairs; Buildings; Transportation; Fuels and Grid; Energy Security and Resilience; Financing; State Energy Policy Planning; Energy-Environment

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+ About the 56 State and Territory Energy Offices

Advise governors and legislatures and lead statewide energy policy planning on behalf of the governors in most states

Inform state electricity and environmental regulators and intervene in regulatory electricity proceedings on behalf of governors

Advance practical energy efficiency and renewable energy policies and support energy technology research, demonstration, and deployment to transform markets

Oversee billions of dollars in state-based clean energy funding and catalyze billions more in private sector clean energy investment

Partner with the private sector to accelerate clean energy-related economic development and enhance environmental quality

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+ NASEO’s Affiliates A robust and engaged network of +70 private-sector partners, including representatives from business, trade associations, nonprofit organizations, educational institutions, laboratories, and government.

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+ Energy Efficiency and Air Quality Energy efficiency (EE) reduces emissions Avoided power generation and onsite fuel use Criteria pollutants: nitrogen oxides (NOx), sulfur dioxide (SO2), particulate

matter (PM)… Greenhouse gases: mainly carbon dioxide (CO2) Examples: Minnesota: Xcel Energy EE avoided 2.5GW plant need since 1992, avoided

>11,000 tons NOx Maryland: EE/RE providing 0.6 ppb ambient ozone concentration reduction Texas: Building energy codes, local government and utility EE in National

Ambient Air Quality Standards (NAAQS) State Implementation Plan (SIP) Louisiana: ESPC EE in Shreveport Early Action Compact NOx budget trading: EE/RE “set-aside” allowances

Other EE benefits: cost savings, resilience, reliability… Energy office-air quality regulator (and others)

collaboration can bring mutual benefit

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+ Energy Efficiency and Air Quality But EE inclusion in air quality management still modest and

infrequent Air quality regulators often unfamiliar with EE Concerns about quantification and reliability of EE

Renewed interest Diminishing returns from pollution controls New and ongoing requirements: ozone NAAQS, Cross-State Air Pollution

Rule, Regional Haze Program, … State and local greenhouse gas policies and objectives EE and RE multipollutant benefits and co-benefits ($, reliability,

resilience, water savings…) New and revised resources:

EPA EE/RE in SIPs “roadmap manual,” quantification tools (eGRID, AVERT), …

DOE technical assistance, analysis NASEO Energy Efficiency Pathway Templates

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+ 2015 Ozone NAAQS

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+ Cross-State Air Pollution Rule

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+ Visibility-Regional Haze Program

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+ NASEO Energy Efficiency Pathway Templates http://www.naseo.org/ee-pathways

SEO completes

Shares w/AQ

Starts dialogue

• State energy office (SEO) documents key facts about EE program or policy • Estimates of energy savings

& emissions reductions • Quantification approaches • Costs and certainty

• Highlights critical info that air quality (AQ) office needs

• Identifies EE efforts that support air quality planning and management.

• Identify, address needs and gaps.

• Builds support for EE across state government

Building Energy Codes

Energy Savings Performance Contracting

Lead by Example

City-Led EE Initiatives (in development)

Generic Template

Template & state-specific samples available:

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+ NASEO Energy Efficiency Pathway Templates

Facilitate energy office-environmental regulator discussion for considering EE for air quality management How can the EE program or policy support multiple objectives, including air

quality? Distinguish range of air quality considerations Broad planning/projections formal “credit” (SIP, NOx allowances)

How does the program or policy work? Who performs the EE? Responsibilities and authorities? Voluntary or mandatory? Incentivized? Are there targets? Consequences for underperforming? Are or can energy savings be projected? Estimated? Measured and verified? How are or can energy savings or impacts be translated into avoided air

emissions? Are there other information needs, gaps? Can they be addressed?

http://asq.naseo.org/ee-pathways

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+ NASEO Energy Efficiency Pathway Templates http://asq.naseo.org/ee-pathways

Samples: Illinois Building Energy Codes Minnesota state lead-by-example

(Sustainable Buildings 2030 standard)

Virginia ESPC City-led (pending)

“Blanks” of above to fill-in Generic template—adapt to

other pathways/program types

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+ NASEO Energy Efficiency Pathway Templates http://asq.naseo.org/ee-pathways Introduction (common to all templates) EE benefits Air quality linkages Compliance aspects Quantification aspects Template purpose and use Fill-in portion EE pathway summary Pathway description Five sections addressing 1. Feasibility and approach 2. Impact 3. Reliability 4. Responsibility 5. Costs/funding Next Steps Resources

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+ NASEO Energy Efficiency Pathway Templates

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Front end: Discusses EE-air interactions, Clean Air Act aspects, quantification, translating EE into avoided emissions…

+ NASEO Energy Efficiency Pathway Templates

State lead-by-example:

Minnesota Sustainable Buildings 2030 Energy Standard

Section 1: Description

(Feasibility & Approach) What is the standard? EE targets? Versus what baseline? Do

targets change over time? To which buildings/facilities does it

apply? Are there related or complementary

requirements? (e.g. benchmarking) Exemptions/limitations to program? Information gaps and critical questions

remaining?

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+ NASEO Energy Efficiency Pathway Templates

Section 2: Energy Savings &

Emissions Reductions (Impact) Energy savings goals? Consequences of not meeting targets? Are there historic energy savings data? Are there projections of future energy

savings or emissions avoidance? Are other environmental impacts

estimated? Other non-energy benefits? Information gaps and critical questions

remaining?

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+ NASEO Energy Efficiency Pathway Templates

Section 3: Approach to Energy

Savings and Emission Reduction Documentation (Reliability) Are energy savings regularly measured

or estimated? Electricity and onsite fuel

Is there EM&V to confirm energy savings?

Are additional efforts needed to verify energy savings?

To what extent can energy and emission estimates be relied on for planning and decision making? General estimates Verified and attributed

Information gaps and critical questions remaining?

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+ NASEO Energy Efficiency Pathway Templates

Section 4: Policy Implementation

(Responsibility) What legal authority governs this

pathway? Who is responsible for achieving

energy savings? What happens if not achieved?

Who monitors and verifies? What more is needed to monitor and

verify savings? Information gaps and critical questions

remaining?

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+ NASEO Energy Efficiency Pathway Templates

Section 5: Costs and funding

mechanisms How are implementation costs

funded? Installation/construction Program administration, EM&V Technical assistance, support Consider funding mechanism (e.g.,

ESPCs) How have costs/funding varied over

time? How certain is future funding?

verifies? What funding would be needed to

fully implement pathway and document energy savings?

Information gaps and critical questions remaining?

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+ NASEO Energy Efficiency Pathway Templates

Next steps Better quantification,

tracking? Distinguishing electricity,

natural gas savings? Alter reporting metrics or

units? Btu, kWh, therms, Btu/ft2…

Policy compliance Projections/scenarios? Offsetting emissions? (e.g.,

electrification)

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+

Thank You

Rodney Sobin

rsobin@naseo.org

2107 Wilson Blvd Suite 850 Arlington, VA 22201 Phone: 703.299.8800 www.naseo.org

+ NASEO Energy Efficiency Pathway Templates

Exercise: Six groups will consider how to fill in a template section based on your own in-state EE programs

1. Building energy codes – Section 3: Approach to Energy Savings and Emissions Reduction Documentation

2. Energy savings performance contracting (ESPC) – Section 5: Cost and Funding Mechanisms

3. Lead-by-example (building performance for public facilities) – Section 4: Policy Implementation

4. Electrification (e.g., ports, transportation) – Section 2: Energy Savings and Emissions Reductions

5. City- / locally-led EE policy or program — Section 3: Approach to Energy Savings and Emissions Reduction Documentation

6. Other — Section 1: Description and/or Section 2: Energy Savings and Emissions Reductions

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+ NASEO Energy Efficiency Pathway Templates

Exercise: Process (30 mins) Introductions (2-3’) Facilitator will lead a brief walk-through of section to be filled in (3-4’) Discuss and address section questions (15’) Who has or might have information requested? How might information be obtained? How might information be developed if not currently available? Would the program need to be modified to get the information? What other information may be useful? What requested info is not useful?

Next steps and choose a reporter (3-4’) Share summary of discussion with the room (5-6’)

1. Group’s sense of ability to complete the template today (e.g., 50% need to begin collecting new data, 75% have needed info) 2. Examples of next steps from group 3. An ‘aha’ moment

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Thank You

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