Chicago Climate Action Plan. Clean and Renewable Energy Policy and Program Recommendations

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1 Clean and Renewable Energy Policy and Program Recommendations Waste Heat Recovery for Power & Heat Workshop September 30,

2 About ELPC ELPC is the Midwest s leading public interest environmental legal advocacy and eco-innovation organization, working to promote environmental progress and economic development together across the Midwest. Program Areas: Clean Energy, Clean Water, Clean Air, Transportation Alternatives, Natural Resource Protection HQ in Chicago; Regional offices in Des Moines, Sioux Falls, Jamestown, Minneapolis, Madison, Columbus and Washington, D.C. 2

3 CCAP GHG Emission Reduction Targets: -25% by 2020 (reduce by 15.1 MMTCO2e) -80% by

4 Five Strategies 23% 4

5 Clean and Renewable Energy Working Group Working Group Members Chairs: Suzanne Malec-McKenna, Howard Learner Said Al-Hallaj, SunPhocus Travis Bradford, Prometheus Daniel Cheifetz, Indie John Conley, SunPower Andy Cukurs, Suzlon John Cuttica, UIC ERC Peter Duprey, ACCIONA Declan Flanagan, Lincoln Renewable Energy Dick Munson, Recycled Energy Development Demetria Giannis, CMC Robert Graham, Jenner & Block Val Jensen, ComEd Shelley Keller, Exelon Stefan Noe, Midwest Wind Energy Andrew Pearlman, GreatPoint Energy Michael Polsky, Invenergy Anne Pramaggiore, ComEd Lois Scott, Scott Balice Chuck Shanabruch, Clean Energy Resource Group Dan Swinney, Center for Labor Steering Committee Suzanne Malec-McKenna, DOE Howard Learner, ELPC Michael Collins, Bain & Company Dennis Vicchiarelli, WBC Project Team Environmental Law & Policy Center Chicago Department of Environment Bain & Company Center for Neighborhood Technology 5

6 Revised 2020 Emission Reduction Target = 4.0 MMTCO2e Distributed Generation in Chicago Full Implementation of the IL RES 6

7 Policy and Program Recommendations - Framework State Policy Advocacy Greening the Grid through Full Implementation of the Illinois RES Improve Net Metering Rules Enhanced Market Structures and Regulatory Framework Local Programs and Policies Catalyze Pathbreaking Marquee Projects Target High Impact Sectors Lay the Groundwork for Mainstream Penetration 7

8 State Policy Advocacy Greening the Grid - Full Implementation of the Illinois Renewable Energy Standard (RES) Structure IPA auction to keep compliance costs low and maximize RECs procured from IL-based projects. Extend the in-state preference Emphasize long-term contracts Support a graduated solar ramp-up schedule to ensure the solar component of the RES (6% in 2015) is achieved at reasonable cost PA DONE! Support efforts to ID and ease possible in-state transmission constraints that may potentially limit bringing Illinois wind power to Illinois markets. 8

9 State Policy Advocacy Improve Net Metering Rules Expand the size of eligible facilities from 40 KW to 2 MW, enabling participation of commercial and industrial entities. Eliminate customer participation limits, or expand cap to at least 5% of peak demand. Enable meter aggregation or community net metering. Enhance Market Structures and Regulations Allow solar hot water, CHP and geothermal energy to qualify under IL s natural gas efficiency program. Advocate for clean energy-friendly tariff options and eliminate tariffs that create barriers. Advocate for a program to monetize REC value for distributed generation through rebates, PBIs or standard-offer contracts. Participate in collaborative efforts to develop smart grid infrastructure that favors clean and renewable energy. 9

10 Local Programs and Policies Focus on Distributed Generation Catalyze pathbreaking Marquee projects to create success stories and replicable implementation blueprints. Convene stakeholders and identify innovative projects. Provide technical resources. Close financial gaps. Eliminate logistical barriers. Create training and outreach opportunities. Develop and disseminate model project blueprints to high impact sectors. Exelon/SunPower 10MW solar PV plant in the West Pullman Industrial Redevelopment Area on Chicago s South Side 10

11 Local Programs and Policies Focus on Distributed Generation Target high-impact sectors to produce greater greenhouse gas reductions at lower cost. Apply implementation blueprints from Marquee Projects Initiative. Integrate clean and renewable energy requirements into existing city programs. Build awareness among key decision-makers. Convene CHP Partnership to identify and address interconnection challenges within Chicago s network grid. 11

12 Local Programs and Policies Focus on Distributed Generation Lay the groundwork for mainstream penetration. Adopt an innovative clean energy financing system (e.g. PACE). Make clean and renewable energy the new building standard. Streamline the permitting process. Protect investments e.g. solar access rights. Reduce information gaps. 12

13 Chicago Distributed Generation High Penetration Scenario Existing Buildings 13

14 Chicago Distributed Generation High Penetration Scenario New Construction If by 2020, Building Codes Call For: 50% more efficient buildings 35% of energy consumption from zero carbon DG 90% penetration rate for new construction 14

15 Chicago Distributed Generation Cumulative Emissions Reductions 15

16 Revised 2020 Emission Reduction Target = 4.0 MMTCO2e Distributed Generation in Chicago Full Implementation of the IL RES 16

17 Next Steps 1) Release Report October ) Implementation Create a Renewable Energy Manager Position Develop detailed work plan Standardize tracking process for clean and renewable energy installations Ongoing Working Group involvement in implementation Establish communication, decision-making, accountability structure Cross-cutting activities 17

18 Thank You! Madeleine Weil Environmental Law & Policy Center 135 East Wacker Drive, Suite 1600 Chicago, IL (312)