Chandra K. Krout, AICP, LEED AP (BD+C/O&M), CGBP, GPRKrout & Associates

chandrakrout@kroutandassociates.com July 19, 2011

Majority of U.S. GHG emissions (84%) are in the form of CO2 Resulting from combustion of fossil fuels

Decision-makers face the challenge of crafting policies that allow the US to meet its energy needs while acting responsibly to reduce GHG emissions

There is a substantial convergence between the goals of energy policy and climate policy Many feasible & beneficial policies from supply &

security perspectives can reduce future U.S. GHG emissions

Consider near-term energy policies that can be adopted to best position local governments to reduce GHG emissions & to implement future climate change policies Link between energy & climate National energy policy context Economics of energy Energy reduction/efficiency policies

Fossil fuel use can be reduced by: Deploying technologies that increase energy

efficiency (e.g., more efficient power plants, cars, and appliances)

Employing non-fossil fueled energy sources solar, wind, geothermal, biomass, hydroelectric,

nuclear energy, or renewables-based hydrogen CO2 emissions also can be reduced by shifting

from high-carbon to lower-carbon fuels (e.g., shifting from coal to natural gas in the electricity

production sector)

Climate-friendly energy policies fall into one of 3 general categories: Reduce GHG emissions now Promote technology advancement or

infrastructure development that will reduce the costs of achieving GHG emissions reductions in the future

Minimize the amount of new capital investment in assets that would be substantially devalue (or “stranded”) if a GHG program were implemented

A discrete and unified U.S. energy policy does not exist

Historically, most major shifts in U.S. energy policy have been triggered by interruptions, and subsequent price increases, in crude oil supply. 1973 (Arab oil embargo) 1979–80 (triggered by the Iranian

revolution) 1990 (associated with the Persian Gulf

War)

Todayʼs energy policy debate confronts a mixture of old and new issuesU.S. energy policy is much more market

oriented, Less focused on cost-based price

regulation, More focused on environmental

regulation than it was in the 1970s

Where Energy and Climate Change Meet

Baseline Inventory (municipal & community-wide)

Business-as-usual forecasts (2020 & built out)

Reduction Target (i.e. 15%)

Quantified Reduction Strategies Energy, Water, Transportation, Solid Water

Economic Analysis of Ratios

Monitoring & Reporting Mechanisms

Value in monetizing the direct energy cost savings to residents and businesses over time

Energy cost savings ratio comparing direct program implementation costs to projected cost savings for residents and consumers Bang for your buck for GHG reduction Municipal strategies inform CIP budget

Identification of programs that are the most cost-effective

Grouping of financing mechanisms for community-wide reduction strategies

A considerable portion of the building stock (84% of residential units) in Monterey Park was built prior to the implementation of California’s Title-24 energy standards

Improving the energy efficiency of the City’s existing building stock will reduce GHG emissions, while also decreasing property owners’ and tenants’ energy bills

Promote incentive programs through outreach Work to extend and improve on utility and other federal

and State incentive efficiency programs, through, for example, participation in the Los Angeles County’s Energy Upgrade California

Eligible California homeowners can access up to $25,000 for energy-saving projects like insulation, heating and cooling systems, and solar panels https://energyupgradeca.org/overview

Adopt incentive-based approach that would become mandatory only if necessary retrofit levels are not achieved through the voluntary programs The City would adopt an ordinance that establishes a

desired level of energy efficiency retrofits in the community

The retrofit program would be voluntary unless the desired level retrofit in the community is not achieved. In that case a mandatory energy conservation ordinance would be imposed

New construction offers an opportunity for achieving high levels of energy efficiency through advanced materials and design

The California Energy Commission strengthens these standards every 3–5 years to increase efficiency in new buildings

The City may establish more efficiency requirements above Title-24 if needed to achieve an environmental, safety, or public health goal

Promote utility incentive programs The programs can offer building owners and their design

teams a wide range of services, such as design assistance and incentives

Provide incentives for new development that voluntarily exceeds State energy standards The reduced permitting time can generate significant

savings for developers that are paying interest on construction loans

Require new construction to exceed Title-24 energy efficiency standards by 15%, a level comparable to GreenPoint minimum requirements, Energy Star Rated Homes, and achieving the California Green Building Code Tier I performance criteria.

Require new construction to exceed Title-24 energy efficiency standards by 30%, achieving the California Green Building Code Tier II performance criteria.

Require new construction to exceed Title-24 energy efficiency standards by a custom %

Work with SCE, other jurisdictions, and organizations to accelerate "Smart Grid" integration in the community Smart grid technology will allow customers to become

active participants in the energy supply chain by enabling them to manage their own energy consumption and their own role in reducing carbon emissions

Access to allowing meter upgrades and understanding how to properly use the meters once installed will help integration

Demand response programs that shave peak loads, reducing the need for expensive (and polluting) peaking power plants

Intelligent in-home interfaces to help residents (and businesses) monitor and manage their energy use

Electronics and control software that monitor power flows in real time, to run existing lines much closer to capacity without compromising reliability

Encourage planting of building shade trees in existing and new development The City would develop a shade tree assistance program

and provide subsidized shade trees to residential and commercial property owners

Require planting of building shade trees in new development This would include setting minimum canopy

coverage/age requirements of trees to be planted

Create Solar Power Districts in commercial and industrial areas with optimal solar orientation and building structure conditions Within Solar Power Districts, the City could explore

opportunities to remove physical and Code barriers to support installation of solar panels & solar water heating

A streamlined permitting process could be developed to further promote and expedite the installation of PV systems and solar water heating systems

Facilitate power purchase agreements (PPAs) within Solar Power Districts to promote installation of solar PV systems A solar PPA is a financial arrangement in which a third-party

developer owns, operates, and maintains the solar PV system, and a host customer agrees to site the system on its roof or elsewhere on its property and purchases the system’s electric output from the solar services provider for a predetermined period

Promote the California Solar Initiative’s solar water heating incentive program to subsidize the purchase of solar water heaters and replace/ recycle old water heaters in homes and commercial buildings

Public realm lighting includes streetlights, pedestrian pathway lights, area lighting for parks and parking lots, and outdoor lighting around public buildings. Lighting design and technology can considerably influence the amount of electricity used to light these areas

Promote conversion of existing parking lot lighting to higher efficiency lamp technologies The City would target outreach to land owners or

tenants with high levels of public realm lighting energy demand

Adopt high efficiency public realm lighting ordinance The City would adopt an ordinance that requires new

commercial and industrial development to utilize high efficiency lamp technologies (e.g., light-emitting diodes lamps) to light parking lots and other public realm areas

Balboa Park Cultural Partnership – Energy Efficiency Retrofits Lighting HVAC Server Consolidation Energy Star Portfolio Manager

City of San Diego Climate Mitigation and Adaptation Plan (CMAP)

County of San Diego Climate Action Plan Energy Upgrade California San Diego

Contact jesse.fulton@energycenter.org