StimulusStimulus Funding:Funding:Stimulus Stimulus Funding: Funding: Unlocking Unlocking the ARRA's Full the ARRA's Full The RevolutionThe Revolutiongg

Economic, Social, and Economic, Social, and E i t l P t ti l fE i t l P t ti l f

The Revolution The Revolution Will Be FundedWill Be FundedEnvironmental Potential for Environmental Potential for

CaliforniaCaliforniaWill Be FundedWill Be Funded

CaliforniaCaliforniaPanama BartholomyPanama Bartholomy

Advisor to Chairman DouglasCalifornia Energy CommissionBright Green Future 2009g

10/23/09San Diego, CA

Where We Are Going TodayCalifornia Energy ContextContext

ElectricityNatural GasTransportationTransportation

Policy SolutionsRecovery Act Opportunities

Electricity (2008)Source

Natural Gas 46.5%Nuclear 14.9%Large Hydro 9 6%Large Hydro 9.6%Coal* 15.5%Renewable 13.5%

California’s Power Plants

Over 980 powerOver 980 power plants in CA over 1 MW.1 MW

California’s Greenhouse Gas E i i i 2004Emissions in 2004

Transportation

Residential 6%

Transportation38%

Commercial3%

ElectricityElectricity Generation (In-State)

12%

A i lt

Industrial20%Electricity

GenerationAgriculture

6%(Imports)

13%

California State Electricity Demand F tForecast

CA Electricity Demand Forecast

120,0002020

80 000

100,000

60,000

80,000

Gw

H ResidentialCommercialIndustrial

20,000

40,000 MiningAgricultural

0

,

2005 2008 2011 2014 2017 2020

Loading Order…

State Energy Policygy y2007 Integrated Energy Policy

ReportReport•Require net zero energy by 2020 f id d 20302020 for residences and 2030 for commercial buildings.

CPUC and CEC Big, Bold Initiatives$•Will invest over $15 Billion in

efficiency by 2030

E i ti B ildiExisting Buildings75% of CA’s residential buildings and 5 2575% of CA s residential buildings and 5.25 billion square feet of commercial buildings were built before 1978’s energy efficiencywere built before 1978 s energy efficiency standards

EFFECT OF TITLE 24TITLE 24

120 Improvement from 1978 to 2005 = 47%100

Improvement from 1978 to 2005 = 47%

Improvement from 1990 to 2005 = 30%

60

80

/sf-y

r

Water HeatingSpace CoolingSpace Heating

40

60

kBTU

Space Heating

20

070s 1978 1984 1988 1992 1998 2001 2005

Existing Buildings Climate I tImpactBuildings are the second largest contributor to California’s greenhouse gas emissions and nations largest

• In 2007 AIA poll only 7% of yrespondents correctly yidentified buildings as the gtop emitter

CA Building Greenhouse Gas Emissions 2004

Transportation38%

Emissions 2004

Commercial

Residential 6%

38%

Commercial3%

Electricity GenerationGeneration (In-State)

12%

I d t i l

Agriculture

Industrial20%Electricity

Generation(Imports)

6%(Imports)

13%

California Buildings End Use 2004 GHG Emissions

State-wide GHGCooking

7.06%

Cold Storage14.413%

Lighting13.312%State wide GHG

Emissions–13.6% Residential

% CWater–7.5% Commercial–2.3% Industrial

Water Heating

19.817%

Misc28.825%

VentilationVentilation4.64% Heating

16.615%

Cooling8.78%

TVTVsEnergy Commission has proposed energyEnergy Commission has proposed energy efficiency standards for televisions for 2011

AB 758: The Day it All ChangedCalifornia Energy Commission to develop and implement a comprehensi e program toand implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential b ildingsresidential and nonresidential buildings, including:

tenergy assessments, cost-effective energy efficiency improvements, financing options, public outreach, and education efforts

R bl ERenewable Energy

R bl P tf li St d dRenewable Portfolio Standard (RPS)

I t O d Utiliti tInvestor Owned Utilities must procure 20% of their electricity from renewable resources no later than 2010.Municipal utilities are directed to d l th t hidevelop a program that achieves the same goalsCEC and CPUC adoptedCEC and CPUC adopted goal of 33% by 2020

Renewable Portfolio Standard

33% by 2020

20% by 2010

2007 11.8%

1983 1988 1993 1998 2003 2008 2013 2018

2002 11.0% (RPS begins)

1983 1988 1993 1998 2003 2008 2013 2018Year

SB 1: “Million Solar Roofs”3000 MW goal, combined

Solar on 50% of new homes by end ofcombined

POU/IOU effort$3 2 Billion in

homes by end of program

Solar Industry self$3.2 Billion in Rebates

Solar Industry self-sufficient in 10 years

F hFor those developments of 50+ h b ild thomes, builders must offer PV as option as

f 1/1/2011of 1/1/2011

Natural Gas (2007)SourceIn State 12 9%In State 12.9%Canada 22.1%Rockies 24 2%Rockies 24.2%

Southwest 40.8%

N t l GNatural Gas

$9.00 Wholesale Natural Gas Prices in California

$7.00

$8.00

$5 00

$6.00

$4.00

$5.00

$2 00

$3.00 Dollars per Thousand Cubic Feet

$1.00

$2.00 Cub c eet

$0.001985 1990 1995 2000 2005

S l H t W tSolar Hot Water

Crude Oil (2008)Source

In State 38.12%

Alaska 13 41%Alaska 13.41%

Foreign 48.46%

California Weekly Retail Gasoline Prices

500

Prices (Cents per Gallon)

400450500

250300350

Weekly California Regular

100150200250 Regular

Reformulated Retail Gasoline Prices (C G ll )

050

100 (Cents per Gallon)

Tail Pipe andTail Pipe and Fuel StandardsAB 1493, Statutes 2002

By 2016 vehicles in CA must ybe 30% more GHG efficient than those sold in 2002

Low Carbon Fuel StandardReduce GHG impacts inReduce GHG impacts in CA’s transportation fuels 10% below 2007 levels by 2020.

VMT and Population in CA 1975-2004

180

200

35,000,000

40,000,000

140

160

lions

)

30,000,000

100

120

VMT

(Bill

20,000,000

25,000,000

pula

tion

Annual VMT (billions)

60

80

Ann

ual V

10,000,000

15,000,000 Pop

Population

20

40

A

5,000,000

10,000,000

01975 1978 1981 1984 1987 1990 1993 1996 1999 2002

Year

0

190%

200%

Historical and Projected Vehicle Miles Traveled (VMT) and GHG VMT

170%

180%

h

Miles Traveled (VMT) and GHG Growth

150%

160%

90 G

row

th

GHG Growth 

130%

140%

t of

19

9

GHG Growth with AB 1493

110%

120%

Perc

en GHG Growthwith AB 1493 and LCFS

90%

100% Gap 

~ 18%80%

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

190%

200%

Historical and Projected Vehicle Miles Traveled (VMT) and GHG

170%

180%

h

Miles Traveled (VMT) and GHG Growth VMT growth  

at 1%

150%

160%

90 G

row

th

130%

140%

t of

19

9

110%

120%

Perc

en

90%

100%GHG Growth with 1% VMT G th

80%

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Growth , AB 1493and LCFS

California State Flower

CEQA GHG GuidelinesCEQA GHG GuidelinesOPR, by July 1, 2009, to prepare…

CEQA guidelines for the feasible mitigation of greenhouse gasmitigation of greenhouse gas emissions or the effects of greenhouse gas emissionsgreenhouse gas emissions…

The Resources Agency is required to certify and adopt those guidelines bycertify and adopt those guidelines by January 1, 2010.

O E Sit tiOur Energy SituationMost of our energy supplygy pp yis out of our control, leads towild swings in priceswild swings in prices

Increased competition for supplies will continue to force prices upto force prices upIncreased environmental regulation on industry expectedexpectedNeed to find solutions to gain more control over supply and stabilize price volatilitysupply and stabilize price volatilityMust do so in an environmentally responsive way

The Real The Real Energy/Climate Energy/Climate Challenge?Challenge?

In 2010, three people will leave the workforce for every one that joins

In 2012, it will be four

In 2016, it will be six

American Recovery and Reinvestment Act (ARRA)Reinvestment Act (ARRA)

$787 Billion in funding appropriations and tax relieftax reliefNearly $63 billion for energy activities

$$42 billion in appropriations$21 billion in energy tax incentives

www.energy.ca.gov/recovery

ARRA GoalsPreserve and create jobs and promote economic recovery.yAssist those most impacted by the recession.Provide investments needed to increase economic ffi i b i t h l i l d iefficiency by spurring technological advances in

science and health.Invest in transportation, environmental protection andInvest in transportation, environmental protection and other infrastructure that will provide long-term economic benefits.S SStabilize State and local government budgets in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.p

ARRA Energy Appropriationsgy pp pTotal of $42 billion

$11 3 billion in formula based funding$11.3 billion in formula-based fundingEfficiencyRenewablesRenewablesGreen Community Plans

$30 7 billi i titi d di t t$30.7 billion in competitive and direct grant, loan and loan guarantee funds

TransportationTransportationTransmissionRenewablesRenewablesResearch

American Recovery and Reinvestment Act

of 2009 Energy Funding Implications forImplications for

California

ARRA Formula Energy Appropriations

Total of $11.3 billion in formula-based fundingfunding

$3.1 billion State Energy Program$• Energy Commission will receive $226

million$3 2 billi E Effi i d$3.2 billion Energy Efficiency and Conservation Block Grant Program

California local go ernments are e pected• California local governments are expected to receive over $300 of millionEnergy Commission is expected receive• Energy Commission is expected receive $49 million

ARRA Formula Energy Appropriations

Total of $11.3 billion in formula-based fundingfunding

$5 billion for Low Income Home WeatherizationWeatherization• Community Services and Development

Department will receive $185 millionDepartment will receive $185 million$300 million nationally for Energy Star Appliance Rebates pp• Energy Commission is expected receive

$30 Million

State Energy Program (SEP)Energy Commission is expected to receive $226 million

Traditional SEP appropriations to CA $1-3 million annually

Types of activities allowed under SEPImplementing building, industrial and t t ti ffi itransportation energy efficiency programsExpanding distributed generation, renewable energy and public education programsenergy and public education programsConducting any activity to improve energy efficiency, increase use of renewable energy or i ffi i d iincrease energy efficiency and economic development.

Phase I: SEP Proposed All tiAllocations1. Department of General $25 millionp

Services (DGS) Revolving Loan Program

$25 million

g g2. Clean Energy Workforce

Training $20 millionTraining3. Energy Conservation

Assistance Act (ECAA) $35 millionAssistance Act (ECAA)Revolving Loan Program

$35 million

Phase II: SEP Proposed All tiAllocations

4 Clean Energy Systems U t $354. Clean Energy Systems Revolving Loan P

Up to $35 million

Program5. Energy Efficiency Up to $965. Energy Efficiency

Retrofit Programs Residential Retrofit

Up to $96 million

Residential RetrofitNon Residential RetrofitMunicipal Financing Districts

State Building Revolving Loan F dFund

Clean Energy Workforce Training ProgramProgramTransportationEnergy and Water EfficiencyyRenewable Energy

$90 Milli$90 Million$20 million in$20 million in ARRA funds

/www.energy.ca.gov/greenjobs

Energy Conservation Assistance Act (ECAA)(ECAA)Revolving Loan Program

$25 million in low-interest (1%) loans$25 million in low interest (1%) loansFor energy efficiency, combined heat and power, demand reduction, water efficiency and generationdemand reduction, water efficiency and generation projectsEligible entities include:g

Public SchoolsPublic HospitalsPublic HospitalsPublic Care InstitutionsUnits of Local GovernmentUnits of Local Government

Maximum Loan Amount is $3 million

Cl E S tClean Energy Systems

Targeting the private sector with up toTargeting the private sector with up to $35 million in revolving loansFocused on the following technologies:technologies:

BioenergyClean EnergyClean Energy Manufacturing

Building Energy Efficiency B iBarriers

Building owners lack capital for improvementsLack of market-tested standardized building rating system (residential less so)Fragmented existing building stock requires complex solutions and is difficult to scale Widespread lack of awareness of costs and benefitsGaps in knowledge, skills, and experience of workforce limit scaleL k f di i b i iLack of coordination between existing programs

Municipal Financing District ProgramMunicipal Financing District Program

California Comprehensive Residential Building RetrofitResidential Building Retrofit Program

Municipal and Commercial Building Targeted Measure Retrofit ProgramTargeted Measure Retrofit Program

Energy Efficiency and Conservation Bl k G tBlock Grant

$3.2 billion nationallyy68% to local governments (directly to cities > 30,000 and counties > 200 000 l ti )200,000 population)28% to state energy offices2% to tribes2% to tribes2% competitive grants

California local governmentsCalifornia local governments are expected to receive over $302 million directlyEnergy Commission is expected to receive $49 million

Energy Efficiency and Conservation Block Grant

Assist eligible entities in implementingAssist eligible entities in implementing energy efficiency and conservation strategiesg

to reduce pollution emissions from fossil fuels created as a result of activities within the jurisdictions of eligible entities;to reduce total energy use; andto improve energy efficiency in the transportation, building, and other appropriate sectors.

Energy Efficiency and Conservation gy yBlock Grant Energy Commission is • Department of EnergyEnergy Commission is expected to receive around $49 million

• Department of Energy released guidelines March 26$

60% of the funds will be distributed to small

i i liti th h bl kmunicipalities through a block grant program40% will be placed into the40% will be placed into the State Energy Program and spent at the Energy Commission’s discretionCommission s discretion

EECBG Small City/County Pass-ThroughSmall City/County Pass Through Funds

Allocation based on a per capita formulaAllocation based on a per capita formula Base allocation of $5.00 per personBase allocation increased by unemployment ratey p y

(1 + Unemployment rate) x $5.00Establishes minimum funding levels:

$25,000 per City$50,000 per County

All f ffi i j t di t i tAllows for energy efficiency projects or direct equipment purchasesAllocates approximately 70% of EECBG (ARRA requires aAllocates approximately 70% of EECBG (ARRA requires a minimum of 60%)

DOE Weatherization Assistance Program ($5 Billion Nationally, $185 million for CA)

Administered by Community Services and Development Department for over 30 years

($5 Billion Nationally, $185 million for CA)

Development Department for over 30 years

Purpose of the DOE WAP is to:- increase the energy efficiency of dwellings

owned or occupied by low- income Californians- reduce total energy

expendituresimprove health and safety- improve health and safety

Focus on vulnerableFocus on vulnerable population

Energy Efficient Appliance Rebate Program and Energy Star RecoveryProgram and Energy Star Recovery Funding

Authorized in Energy Policy Act of 2005$300 million available nationwide

Estimated $35 million to California Energy Commission

P id b t t id ti l fProvides rebates to residential consumers for purchase of Energy Star products to replace used appliances of the same typeused appliances of the same typeRebates shall be used to supplement, not supplant existing fundssupplant existing funds

ARRA non-Formula Energy A i tiAppropriations

Total of $30 7 billion in competitive andTotal of $30.7 billion in competitive and direct grant, loan and loan guarantee fundsfunds

ARRA non-Formula E A i tiEnergy Appropriations

$11 billi f$11 billion for Transmission

$4.5 billion for competitive smart grid demonstrationsmart grid demonstration projects$3 25 billion for Western$3.25 billion for Western Area Power Authority$3 25 billion for Bonneville$3.25 billion for Bonneville Power Authority

ARRA non-Formula EnergyEnergy Appropriations

$1 billion for TransportationTransportation

$300 million Clean CitiesCities $300 million Diesel Emissions ReductionsEmissions Reductions $400 million Electric Drive VehiclesDrive Vehicles

ARRA non-Formula Energy A i ti tAppropriations – cont.

$6 billion for Renewable EnergyRenewable Energy Loan Guarantees

Must commence construction prior to Sept. 30, 2011

ARRA non-Formula Energy A i ti tAppropriations – cont.

$8.4 billion for ResearchClean Fossil EnergyClean Fossil Energy, Energy Efficiency and Renewable EnergyRenewable Energy Research, Advanced B tt R hBattery Research

ARRA Energy Tax IncentivesTotal of $21 billion in tax incentives for energyfor energy

$13 billion in renewable energy tax creditscredits$1.6 billion Clean Renewable Energy B dBonds$2.4 billion Qualified Energy Conservation Bonds$2 billion plug-in electric vehiclep g

www.energy.ca.gov/recovery

Wh t d itWhat does it mean

UnprecedentedUnprecedented funding

Wh t d itWhat does it mean

UnprecedentedUnprecedented transparency

SummationSummationWe lack control of our current energy sourcescurrent energy sourcesLots of regulations stalling development now and moredevelopment now and more soonNeed deep efficiency and significantNeed deep efficiency and significant amounts of responsible renewables to provide economic security and p yprosperityWill need extensive policy reforms and p yindustry leadership to achieve goals

Planning

Thank You!Thank You!

Panama Panama BartholomyBartholomy(916) 654(916) 654--48964896(916) 654(916) 654 48964896pbarthol@energypbarthol@energy..state ca usstate ca usstate.ca.usstate.ca.us