Pennsylvania’s Energy Landscape

PA Strategic Energy Management Showcase

April 7, 2015

Hayley Book, Deputy Policy Director

Keystone State Energy Portfolio

2nd largest energy field in the world

4th largest energy producer in U.S.

2nd largest electric generator in U.S.

2nd largest nuclear generator in U.S.

4th largest coal producer in U.S.

2nd in natural gas production in U.S.

9th in total solar capacity installed

15th in total wind capacity installed

Pennsylvania Natural Gas Prices

Reduced Energy Costs

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Historical & Future Prices for PJM Electricity 2008-2013

PJM $/MWhPrice

Proposed Shell Petrochemical Facility

In March 2012, Shell Chemicals selected a site in Beaver County to evaluate for a proposed multibillion dollar petrochemical facility including an Ethane Cracker

Potential benefits:

$4 billion + capital investment

10,000 peak construction jobs (24 months)

400 direct jobs

10,000 new jobs in chemical and supply chain industries

Source: Shalenavigator.com

Plastics & petrochemical feedstock supply for northeast U.S.

Continued demand for regional Marcellus/Utica ethane (80,000 – 90,000 b/d)

No final investment decision announced yet

Resource Manufacturing Tax Credit

Commences January 2017 (Act 85 of 2012)

Up to 5₵/gallon ($2.10/barrel) of ethane purchased and used in PA to produce ethylene

Eligibility criteria:

$1 billion capital investment

2,500 full-time jobs created

Can meet up to 20% of a taxpayer’s liability

Tax credits can be sold or assigned

A Changing Energy Landscape

2000 2010 2017

PA Electricity Generation by Fuel Type

Energy Consumption

• Establishes CO2 emissions performance standards for existing power plants under Clean Air Act section 111(d)

• National requirement of a 30% reduction below 2005 levels by 2030

• EPA has proposed the following goals for PA: – Interim goal - 1,178 lb/MWh in 2020 – Final goal - of 1,052 lb/MWh in 2030

EPA’s Clean Power Plan Rule

EPA is proposing to allow states to use 4 building blocks to achieve reductions.

– Heat rate improvements of 6% in coal-fired electricity generation

– Replacing coal-fired generation with natural gas combined cycle facilities

– Replacing coal-fired generation with nuclear and renewable energy

– Demand-side energy efficiency improvements

EPA’s Clean Power Plan Rule

• RACT Requirements for Major Sources • Final regulation- Environmental Quality Board (EQB) 2015

• Automotive & Light Duty Trucks • Proposed regulation to EQB April 21st 2015

• Fiberglass Boat Manufacturing Materials • Final Regulation to EQB Spring 2015

• Miscellaneous Metal Parts • Proposed regulation to be published 2015

Regulatory Landscape

Governor Wolf’s 2015-16 Proposed Budget Includes historic investments in energy and energy efficiency.

• $50M Solar- PA Sunshine Program

• $30M Pennsylvania Energy Development Authority

• $50M Energy Efficiency

• $30M Combined Heat & Power (CHP Funding)

• $20M EE and Clean Energy for Agriculture

• $20M Wind • $25M Last Mile Funding – providing access to

natural gas to manufacturing sector

Advancing Clean Energy

• Pennsylvania Energy Development Authority

– Grants for clean, advanced energy projects

– Anticipate 2015 grant round

• Alternative Fuels Incentive Grant (AFIG)

– Vehicle purchase/retrofits and innovative technology

– Anticipate 2015 grant round

• Natural Gas Energy Development Program

– Incremental purchase/retrofit for heavy duty vehicles

– All funds currently awarded

Grant Opportunities

• Water Restoration & Protection Grants (DCED)

– OPEN Currently

• Small Business Advantage Grant

– Rolling application period

• $1 million, 50% match up to $9,500

• Environmental Education Grants

– Opens October 2015

• $3,000 max grant

Grant Opportunities (cont.)

• Green Energy Loan Fund (GELF)- OPEN

– Energy efficiency building retrofit projects

• Small Business Pollution Prevention - OPEN

– Project to reduce waste, pollution or energy usage

• $100,00 max- fund up to 75% of total eligible project costs

• Small businesses w/ 100 or fewer employees qualify

• Alternative and Clean Energy Program (ACE)

– Grants/loans alternative and clean energy

Grant Opportunities (cont.)

• Building Operator Certification (BOC)

• Nationally recognized for energy management.

• Building Re-tuning Training (BRT)

• Teaches no-to-low cost energy saving measures.

• 2009 IECC and ASHRAE 90.1 – 2007

• ISO 50001

• Superior Energy Performance

• Energy Efficiency Assessments

Training Opportunities

• Increased Predictability

– Currently 92% of permits are meeting the guarantee

• Reducing the Permit Backlog

– Backlog of 9,982 permits has been reduced by 99%

• Creation of Electronic Tools

– Permit Application Consultation Tool

• www.ahs.dep.pa.gov/PACT/

– eFACTS on the Web

• http://www.ahs.dep.pa.gov/eFACTSWeb/default.aspx

Permit Decision Guarantee

Hayley L. Book

(717) 772-3612

hbook@pa.gov

www.dep.state.pa.us