Energy Efficiency in the
Clean Power Plan
Opportunities for Virginia
Mary Shoemaker
Research Assistant
Spring 2015 VAEEC Meeting
May 11, 2015
The American Council for an EnergyEfficient Economy (ACEEE)
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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:
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Foundation Grants (52%)
Contract Work & Gov’t. Grants (20%)
Conferences & Publications (20%)
Contributions & Other (8%)
www.aceee.org/@ACEEEdc
Today we’ll discuss
• Overview of the Clean Power Plan
(CPP)
• Role of energy efficiency in the CPP
• Energy efficiency in Virginia in context
of CPP
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EPA’s Clean Power Plan
EPA proposing to regulate carbon emissions from
existing power plants under section 111(d) of the
Clean Air Act.
• 17% reduction in GHG emissions by 2030
relative to 2012 levels, or 30% reduction by
2030 relative to 2005 levels
• Individually tailored state targets
• Allows for flexible approaches including energy
efficiency!
Timeline of EPA and State Actions
Spring - Summer 2015
EPA releases sample
federal model plan for
states
Summer 2015
EPA releases final rule for
existing power plants
Present - Summer 2016
State air agencies conduct
stakeholder engagement
Summer 2016
Final state plans due to EPA
(may request extension until
Summer 2017)
Summer 2017
Final multi-state plans due to
EPA (may request extension
until Summer 2018)
State Compliance Plans
States develop and submit a written document or set
of documents detailing all the things the state will do
to reach its goal.
Air agencies are most likely responsible for
developing the plans, but other agencies will likely
be brought in.
States submit plans to regional EPA offices.
• Potential for EPA Federal Implementation Plan
(FIP)
State Targets
Source: National Conference of State Legislatures
State Targets
States can opt for an emissions rate limit (lb/MWh) or an emissions
cap (tons CO2).
EPA determined that the best way to cost-effectively reduce
emissions from existing power plants was through a system that
includes 4 “building blocks”:
1.
2.
3.
4.
EE improvements at the plant – “supply-side EE”
Dispatch more gas and less coal
Renewables
End-use EE
What Can be in a Compliance
Plan?
The kitchen sink!
Maybe not quite….
• The 4 building blocks as EPA
suggested
• The 4 building blocks in greater
or lesser amounts than EPA
suggested
• Activities beyond the 4 building
blocks if the activity reduces CO2
from existing power plants
The multiple benefits of energy
efficiency as a compliance option
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Low-cost and reliable resource
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Saves utility customers money
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Reduces multiple pollutants
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Boosts state economies
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Range of Levelized Costs (cents per kWh)
Comparing the costs of some compliance
options
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Energy
Efficiency
Wind
Natural Gas
Combined
Cycle
Coal
Nuclear
Biomass
Solar PV
Coal
gasification
Source: Energy efficiency program portfolio data from Molina
2014; All other data from Lazard 2013.
How Energy Efficiency Creates Jobs
Source: http://aceee.org/files/pdf/fact-sheet/ee-job-creation.pdf
Efficiency Policies and Programs
under 111(d)
EPA seems to have a lot of comfort with
ratepayer funded EE.
• Demand-side EE programs
• Energy Efficiency Resource Standards
States can think outside the box!
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ACEEE’s 2014 State Energy
Efficiency Scorecard
Appliance and
Equipment Efficiency
Standards
(4%)
States have been doing
EE for years, so it’s a
tried and true method.
Variety of ways states
can plan for efficiency
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2014 State Scorecard Results
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Virginia in the State Scorecard
35th place
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12.5/50 points
Utilities
Building Codes
State-Led Initiatives
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Transportation
CHP
Appliance Standards
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10
0
Virginia
Tennessee
North
Carolina
Kentucky West Virginia Maryland
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Virginia in the Clean Power Plan
Virginia rate reduction: 44% by 2030
Opportunity for job growth: between
54,000 and 122,000 jobs added as a
result of compliance.
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Virginia: A Policy Scenario
Impact of measures on emissions rate compared to
EPA goal (as a percentage)
50%
EPA goal emission rate
reduction
40%
Annual 1% energy
savings target
30%
20%
Building energy codes
(high)
10%
Combined heat and
power (CHP) (high)
0%
EPA's emission rate
reduction goal
Potential rate reduced
from selected measures
ESCO programs
99% of EPA's goal achieved by
selected measures
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Impact of Clean Power Plan in
Virginia
Stakeholders: anyone who uses electricity
Presents opportunities on many levels, for
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Utilities as their business model shifts,
customer awareness of efficiency grows, and
efficiency becomes a firm earnings opportunity
Localities as they weigh in on programs and
contribute towards state pollution savings
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What can Virginia do right now?
Identify existing programs and estimate their
pollution reduction potential.
Convene a variety of stakeholders to solicit input.
Evaluate current regulatory structures and laws.
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ACEEE Resources
ACEEE 111(d) site
National Association of State Energy Officials (NASEO) and ACEEE
111(d) Resource Hub
Compliance templates
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Building codes
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CHP
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Financing
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EERS
State and Utility Pollution Reduction Calculator (SUPR)
Energizing Virginia: Efficiency First
Technical assistance as needed!
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Additional Resources
E&E’s Power Plan Hub: http://www.eenews.net/interactive/clean_power_plan/
Bipartisan Policy Center CPP Comments Map: http://bipartisanpolicy.org/energymap/
NCSL
- Summary of State Reactions to CPP: http://www.ncsl.org/research/energy/statesreactions-to-proposed-epa-greenhouse-gas-emissions-standards635333237.aspx
- Energy and Environmental Legislation database:
http://www.ncsl.org/research/energy/energy-environment-legislation-trackingdatabase.aspx
SEEA 111(d) Web Portal: http://www.seealliance.org/policy-initiatives/emerginginitiatives/clean-air/
Questions? Comments?
Mary Shoemaker
Research Assistant
mshoemaker@aceee.org
202-507-4003
Conclusion
Clean Power Plan
Opportunity for efficiency
Pathways for efficiency in Virginia
• ESCOs, CHP, Building Codes, and annual
savings target
Engagement of utilities and municipalities
Action steps!
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Questions? Comments?
Mary Shoemaker
Research Assistant
mshoemaker@aceee.org
202-507-4003
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