Transcript 9-4-13 Meeting - Chester County Citizens for Climate Protection

Christina Simeone
Director, PennFuture Energy Center
September 4, 2013
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PennFuture – non-profit environmental advocacy
organization working on air, land, water and
energy issues impacting Pennsylvania (and
beyond).
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Pillars of PennFuture:
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Energy Center:
◦ Legal
◦ Legislative/Policy
◦ Grassroots
◦ “Champion Pennsylvania’s transition to a clean energy
economy”
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The Pennsylvania Story
What PennFuture is Doing Now on Clean
Energy
Plans for 2014
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Rendell Administration
Act 129 (2008)
Alternative Energy Investment Act (2008)
PA Climate Change Act (2008)
Biofuels Mandate and In-State Production Act
(2008)
◦ Clean Vehicles Law (2006)
◦ Growing Greener II (2005)
◦ Alternative Energy Portfolio Standard (2004)
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Dismantled the PA DEP Energy Office.
Ended the Energy Management Office at PA
DGS that facilitated performance contracts.
Ended PA government’s purchase of
renewable energy.
Opposed efforts to increase PA’s solar
requirements.
Denying the existence of human induced
climate change
ETC…
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2014 Governor’s Election? New Leadership on
Clean Energy?
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Prepare for and leverage market opportunities.
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Defend against efforts to undermine existing
initiatives.
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Work to strengthen existing policy and set the
stage for new policy development.
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Organize, coordinate and publicize.
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Pennsylvania is geographically desirable
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Concentration of Clean Energy Activity
◦ Renewables, efficiency, alternative
transportation fuels
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Leveraging Market Opportunities
◦ Driven in part by existing
policies with accelerating
compliance schedules
◦ Regional energy resources
 solar, wind, shale gas, biomass,
coal, alt fuels…
Biodiesel Production Plants (National
Biodiesel Board, NBB Member Plants)
Biomass Resources of the U.S. by
County (NREL, Sept 2009)
U.S. Shale Gas Plays (U.S. DOE EIA)
Electric Vehicle Charging Stations
(U.S. DOE Alt. Fuels Data Center)
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SREC Market tanked
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Tier I REC Market is low
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Expired ARRA and Reduced State Funding
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Electric Competition and Renewables
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AEPS Attacks
◦ 2013 SRECs $10.00
◦ 2009 SRECs ~ $300.00
◦ 2012 REC $2.00
◦ 2009 REC $19.00
◦ Discouraging long term contracts
By 2026: 133,000 GWh of renewable energy, 13.5% of PJM annual net energy
(41 GW of wind and 11 GW of solar)
Wind and Solar Requirements in PJM (MW)
45,000
12,000
40,000
10,000
35,000
30,000
8,000
25,000
6,000
20,000
15,000
4,000
10,000
2,000
5,000
PJM Wind
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0
2009
0
PJM Solar (DC)
Image Courtesy of PJM
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Defend existing laws and policies
◦ AEPS attacks
◦ PUC proceedings in RMI, etc
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Promote legislation to increase standards
(though unlikely to pass in political climate).
Streamline solar zoning and permitting (DOE
SunShot I)
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Low gas prices +
EPA regulations +
Demand has not recovered =
Many coal plants shutting down +
Previously underutilized gas capacity turning
on +
 Limited new power plant construction.
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If a new plant is needed, what is most
economic?
◦ High efficiency gas, then wind.
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Future uncertainty about the federal PTC
extension impacting wind projects.
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REC/SREC prices are too low and there is no
additional state support.
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Limited new development.
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Philadelphia Benchmarking Law (May 17, 2012)
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In 2014, trying to bring this to Pittsburgh, along
with voluntary disclosure for residential sector.
◦ What: Requires commercial buildings over 50,000 sq ft
of indoor space to report energy and water usage
information to the city, for public disclosure.
◦ When: 2012 data is due Oct 31, 2013, subsequent
annual deadlines will be June 30. Data goes public Oct
2014
◦ How: EPA portfolio manager, automated utility data
reporting
◦ Penalties: $300/for first 30 day period, $100/day
thereafter.
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Act 1 of 2011
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PA is currently operating under 2009 codes and RAC
rejected 2012 update.
◦ Altered PA’s triennial review process for building and energy
codes, effectively giving the UCC Review and Advisory Council
(RAC) veto power over code adoption.
◦ Prior to this, building and energy codes were automatically
adopted by reference.
◦ RAC failed to follow the analysis procedures required by statute.
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Next steps?
◦ Legislative fix?
◦ How will 2015 code update impact PA and building industry if we
are still stuck in 2009?
◦ www.builditsafe.org
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PA’s GESA office was closed in 2011
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School and Municipal budget cutbacks have been
significant in PA
◦ Program has been suspended ever since
◦ Program guidance changes proposed in Dec 2011, nothing
has been publicly finalized, yet.
◦ Program to re-open in pilot phase sometime soon,
incorporating a new business model.
◦ Increased demand for energy and non-energy capital
upgrades?
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Compelling need to promote public-private sector
partnerships that facilitate economic development,
job creation and cost savings.
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PennFuture, Local Development Districts across the state, Energy Savings
Coalition, and interested ESCOs.
Statewide education and outreach program
◦ 3-Step educational curriculum for schools and municipalities.
◦ Streamline: Start-to-finish procurement templates and guidance.
◦ De-mystify the process: consumer education materials, decision-maker
briefing modules, importance of roles and responsibilities, etc.
◦ Focus on consumer protection
◦ Resources: contractor qualification criteria, 3rd party facilitators criteria, and
peer-to-peer mentors.
◦ Small project finance component too!
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www.pennsave.org
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NAESCO & ESC National Support
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Federal Grant Application pending
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Act 129 of 2008
◦ Required electric distribution companies (EDCs) to reduce
consumption load by 3% and peak load by 4.5%, by 2013
◦ Accomplish this by investing in consumer energy efficiency,
conservation and peak demand reduction programs.
◦ PUC can extend the program if proven to be cost-effective.
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Early 2012
◦ PennFuture petitioned PUC to begin extension proceedings
prior to statutory deadline.
◦ PUC was very committed to the program, due to consumer
savings.
◦ PennFuture later withdrew petition.
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August 2012 – PUC adopts final order extending efficiency and
conservation requirements at a statewide average of 2.3% by 2016
◦ Proceeding on extension of peak demand program is forthcoming.
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Several PA EDC’s challenge PUC’s order on various grounds
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Sept 27, 2012 – PUC rejects PECO/FE/PPL petition for reconsideration.
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December 5, 2012 – PUC rejects requests by PECO/FE to lower energy
savings goals.
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Feb 14, 2013 – PUC rejects PPL request to preserve the right to challenge
energy savings goals in the future.
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PennFuture was involved in every step of these proceedings, fighting to
protect, extend and preserve Act 129 requirements.
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PennFuture loves Demand Response!
However, 18% of PJM’s DR market is backup
generation and 93% of that is diesel powered,
and likely have no pollution controls.
Rep. Chris Ross is sponsoring a bill to require
these engines to install pollution controls as a
condition of DR market participation.
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PennFuture intervened in the merger case
between Equitable and Peoples natural gas
distribution companies.
◦ Goal: establish an energy efficiency program for low and
non-low income customers in residential, commercial
and industrial classes.
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Ongoing oversight of Act 129 implementation
◦ Examples: 2014 technical reference manual updates,
demand response program, First Energy settlement.
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Monitor retail markets proceeding
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Alternative Fuels Incentive Grant (AFIG)
Program
◦ $6 million annually for alternative fuels
◦ Avoided proposed elimination in Governor’s budget
◦ Rebates (Jan 26, 2013) – PHEV, EV, NGV, propane,
hydrogen, electric scooter, etc.
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Defend against repeated efforts to undermine
or eliminate this program.
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Very political issue in Pennsylvania
◦ Administration doesn’t acknowledge the existence
of human-caused climate change
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Is gas part of the solution?
◦ PA has not played a leadership role in addressing
the methane leakage question.
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Climate Change Advisory Committee
◦ Resources to support this initiative have been
significantly reduced.
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Impacts report due April 2012, was provided
to CCAC in July 2013. Still hasn’t been
released.
Climate action plan was due October 2012,
DEP is behind schedule.
◦ Effort is understaffed in both man power and
technical expertise.
◦ At what point is DEP going to obviate CCAC input?
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Develop a comprehensive clean energy plan
for PA.
◦ White papers
◦ Clean energy business roundtables
◦ Wind, Solar, Energy Efficiency, Alternative
Transportation
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Outreach to all candidates and the
incumbent.
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Builditsafe.org
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PennSave.org
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Pittsburgh Benchmarking
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Dirty Diesel Demand Response
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Act 129 and AEPS implementation oversight
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Much, much more!!!
◦ Continue to promote solutions to PA broken code adoption
process.
◦ Engage in statewide education efforts on performance contracting,
focusing on school districts and municipalities.