VIRGINIA ENERGY PLAN 2007

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1 VIRGINIA ENERGY PLAN 2007 Workshop on Linking Climate Change and Air Quality Planning Monday 25, 2008

2 VIRGINIA ENERGY PLAN 2006 Virginia Legislation Governor s ExecutiveOrder48 10 Year Plan Updated every 5 Years Issued September 12, 2007

3 ENERGY PLAN Contents Introduction & Executive Summary Virginia Energy Resources & Consumption Energy Efficiency & Conservation Energy Infrastructure t Energy & Environment Energy Research & Development Recommendations

4 ENERGY PLAN Purpose Reliable energy supplies at reasonable costs Establish sufficient infrastructure Accent on efficiency & conservation Develop low-cost & less polluting resources Ensure economic viability Foster research & development

5 ENERGY PLAN Goals Reduce energy growth rate by 40% Increase in-state supply by 20% Reduce GHG emissions by 30% Expand consumer energy education Capitalize on economic development opportunities

6 ENERGY PLAN assessment Virginia is net energy importer All sources other than coal & gas are imported End uses energy consumption: - Transportation 43% - Residential & commercial 32% - Industrial 25%

7 Net Import of Energy into Virginia

8 Energy Use in Virginia

9 Virginia Energy Use - Growth over Time

10 Virginia s Supply & Consumption Gap

11 Impact of Energy Efficiency in U.S.

12 Least Cost Options Energy Efficiency Conservation

13 Energy Conservation 5% reduction in transportation fuel will Save: 260 million gallons gasoline every year (Use of 300, cars every year)

14 2007 Virginia Legislation Reduce 2022 Electric Use by 10% of 2006 Retail Consumption Effectively defer or postpone roughly 3,900 MW new Generation (4 5 large Power Stations)

15 Electric Energy Efficiency Costs & Savings

16 Projected Plan Impact Projected Plan Impact (Narrows Import gap)

17 Governor s Executive Order 48 20% conventional energy cost reduction by 2010 Publish state energy use & GHG emission reductions Certified Agency Energy Managers LEED/Energy STAR new construction & major renovations, green roofs/solar photovoltaic Lease preference LEED/Energy STAR, transit, pedestrian oriented Purchase/lease high MPG, low-emission vehicles Maximize use of biofuels Purchase Energy STAR equipment, recycled paper

18 Energy Efficiency & Conservation Investments to Support Cost of Incentives Consumer Education Administration of Programs Calls for - $100 - $120 million/year from Utilities and $180 - $200 million /year from Utility Customers

19 Infrastructure Building New Electric Generation & Transmission in Northern Virginia & Hampton Roads Additional pipe line & supply capacity for Natural Gas in Hampton roads Offshore Gas Exploration beyond 50 miles from coastline Expansion of State refinery Capacity & alternate energy supplies ethanol, bio-diesel fuels

20 Environment Protection to meet Air Quality Challenges Bring back Carbon Emissions to 2000 levels by 2025 (30% reduction) Create a Commission on Climate Change Mandatory reporting of greenhouse gas emissions using The Climate Registry Protocol (Bills introduced this year passage not a given)

21 Support to Businesses Target Business Development Action: Develop 2 to 3 Energy Technology Business Parks Provide Workforce Services & Support

22 State, Local & Federal Policy Actions Expand Energy Star Sales Tax Holiday Build Stronger energy Codes Increase Federal CAFÉ & Appliance Standards Involve Individuals & Business as Partners

23 Energy R & D Program Increase Investment by $10 million/year Establish Virginia Energy Research & Development Organization (VERDO) Host Energy Research Showcases

24 VA Greenhouse Gas Emissions Agriculture 3% Waste 3% A ll others 3% Total Emissions: 181 Million Metric Tons (MMtCO 2 e) Other Fuel Use 22% Electricity 36% Industrial P rocess 2% Transportation 31%

25 Governor s Commission on Climate Change Established by Executive Order members chaired by the Secretary of Natural Resources Goal reduce GHG emissions 30% by 2025 Charge to the group: Develop greenhouse gas inventories Evaluate climate change impacts Identify adaptation strategies Develop reduction strategies t & action plan Identify approaches and actions by others Nine meetings planned (one public hearing) Commission i has one year to complete work and issue report