The Role of Energy Efficiency: National Status and Implications for Maine

Transcription

1 The Role of Energy Efficiency: National Status and Implications for Maine Suzanne Watson, Policy Director American Council for an Energy-Efficient Economy January 8, 2016

2 The American Council for an Energy-Efficient Economy (ACEEE) ACEEE is a 501(c)(3) nonprofit that acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, & behaviors 50+ staff; headquarters in Washington, D.C. Focus on end-use efficiency in industry, buildings, & transportation Other research in economic analysis; behavior; energy efficiency programs; & national, state, & local policy Funding: Foundation Grants (52%) Contract Work & Gov t. Grants (20%) Conferences & Publications (20%) Contributions & Other (8%)

3 Agenda I. Role of Energy Efficiency Nationally and Locally II. RGGI and EPA s Clean Power Plan: State-based Opportunities III. Efficiency Maine

4 4

5 5

6 6

7 Range of Levelized Costs (cents per kwh) Levelized Electricity Resource Costs Energy Efficiency* Wind Natural Gas Combined Cycle Utility-Scale Solar PV Coal Biomass Coal IGCC Nuclear *Notes: Energy efficiency program portfolio data from Molina 2014; All other data from Lazard High-end range of coal includes 90% carbon capture and compression. 7

8 Energy Efficiency Resource Standards

9 National Building Codes - Residential

10 National Building Codes - Commercial

11 11

12 12

13 Regional Greenhouse Gas Initiative or RGGI A first-of-its-kind, market-driven, cap-and-trade program (9 NE and Mid- Atlantic states) created to reduce regional greenhouse gas emissions. Successfully operating for over six years pumping nearly $2 billion into state economies mostly to support energy efficiency measures. 85% of the RGGI dollars ($62 million since March, 2015) coming to ME are used for efficiency programs. Efficiency Maine s 3 rd Triennial Plan ( ) proposes between $17 million and $20 million each year from RGGI dollars. This investment is a proven boon in terms of local economic development, jobs, healthier environment, lower energy costs, more reliable power, and more competitive state-based businesses. Many more environmental regulations are in the forecast in the years to come and RGGI is one very good reason Maine is ahead of many other states in terms of its ability to comply.

14 Authority given to EPA under Section 111(d) of the Clean Air Act Regulates carbon dioxide emissions (the primary greenhouse gas pollutant) from existing coal and natural gas power plants that have already been built. Final rule The Clean Power Plan Sets emission targets for states Draft federal plan, and draft EM&V guidance Proposes what a state plan might look like and how States autonomy to do things differently from what EPA sets out in final rules Failure to submit state compliance plan federal plan from EPA

15 Opportunities for Energy Efficiency Utility and non-utility EE programs Residential, commercial and industrial measures Appliance replacement and recycling programs Behavioral programs Energy savings performance contracts (ESPC) Building energy codes Energy benchmarking State appliance and equipment standards Combined heat and power (CHP) Water and wastewater programs

16 State Reactions What States Generally Like Compliance timeline Sets more equitable state goals Reliability considerations Trading-ready plan options Flexibility state specific and Don t Like Compliance timeline Increases stringency of some state goals Remains complex and requires analysis Costs concerns Source: National Association of Clean Air Agencies

17 State Planning Authorities Governor - State Energy Office State Legislature Public Utilities Commission Maine DEP Efficiency Maine State Advocates Office Obligated parties/stakeholders Utilities, local governments, industry, businesses, etc. Source: EPA

18 Decisions states are weighing now Request an extension? Rate vs. mass? Trade with other states? How to engage low-income? Participate in Clean Energy Incentive Program? Comment on federal plan, model rule, EM&V Guidance, or Clean Energy Incentive Program?

19 What Does the CPP Mean for Maine? Maine is currently in a good position but could do more to insure that it s long term efficiency goals are met. Realizing lower energy costs to consumers and greater societal goals using efficiency is critical for multiple economic gains **An Opportunity?** If partnering with other states Maine could trade/sell credits EPA has made it evident that they consider RGGI a valid compliance approach but more work needs to be done to insure this approach is viable in the end. So much not nailed down. RGGI states are considering how RGGI and CPP interact

20 When to do what? Source: EPA

21 The process we can expect to see in states over the next year Behind-closed door meetings Formation of plan development groups/assigning of responsibility Stakeholder processes Comments to EPA Meetings/discussions with other states 2016 submissions and requests for extensions

22 Efficiency Maine s programs: are successful and getting stronger every year are leveraging significant private investment, creating local jobs and more competitive businesses = a stronger state economy are aiding both consumers and the economy for every $1 spent, the programs are generating $3 in energy savings and $4 in Gross State Product are good for the environment and climate change in the region by annually reducing carbon emissions by approximately 300,000 tons, the equal of removing 52,000 cars from the road = healthier communities are setting the stage for Maine to be one of the leading states in the nation for innovative energy policy

23 Resources for states Best practices for energy efficiency program development (stakeholder process guidance, multifamily and low-income programs, state and local lead by example) Compliance templates (building codes, EE financing, combined heat and power) State Energy and Pollution Reduction (SUPR) Calculator Technical assistance ACEEE s Role Answers to State Questions (ASQ) Partnership with National Association of State Energy Officials and Regulatory Assistance Project

24 Resources EPA State-Specific Fact Sheets: ACEEE Section 111(d) Page NASEO/ACEEE 111(d) Resource Hub ACEEE State and Local Policy Database E&E Clean Power Plan Hub

25 The End Questions? Comments? Suzanne Watson Policy Director