Energy
Efficiency
in Washington
State
Speaker Pro Tem Jeff Morris
Examples of Energy
Efficiency Policy
Improve energy efficiency standards.
 One of the first 10 states to adopt energy efficiency laws
on 10 appliances for in-state use that could conserve
some 90 mWh of electricity by 2020, enough to power
over 90,000 homes.
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Examples of Energy
Efficiency Policy
ESHB 1062 2005 - Created minimum efficiency standards and
testing procedures for 12 categories of electrical products:
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Automatic commercial ice cube machines
Commercial clothes washers
Commercial pre-rinse spray valves
Commercial refrigerators and freezers
Illuminated exit signs
Low-voltage dry-type distribution transformers
Metal halide lamp fixtures
Single-voltage AC to DC power supplies
Incandescent reflector lamps
Torchieres
Traffic signal modules
Commercial space heaters
Examples of Energy
Efficiency Policy
ESHB 1004 (2009):
Created minimum efficiency standards and testing
procedures for 6 categories of electrical products:
 Wine chillers
 Hot water dispensers and mini-tank electric water heaters
 Bottle-type water dispensers and point-of-use water
dispensers
 Pool heaters, pool pump motors, and portable electric spas
 Tub spout diverters and showerhead-tub spout diverters
 Commercial hot food holding cabinets.
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Examples of Energy
Efficiency Policy
Building Energy Codes
 Buildings account for approximately one third of energy
use and carbon emissions, making them an important
target for state energy efficiency policies. The time of
design and construction represents the greatest
opportunity to build efficiency into the total building.
Builders typically bear the capital cost of energy efficiency
improvements, but homeowners and tenants see the
benefits through lower energy bills. Because most
builders build speculatively, they have no feedback loop
from the occupant to tell them to build in efficiency
features.
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Examples of Energy
Efficiency Policy
Building Energy Codes
 Washington was one of the early adopters nationwide by
creating their own state energy code in 1977. Its state
energy code emerged from Model Conservation Standards
developed in the Northwest region during the 1980s under
the Northwest Power Planning Act (Act), which Congress
passed in 1980 to require consideration of conservation as
the preferred method to accommodate load growth in the
Bonneville Power Administration Region.
 According to the ACEE 2008 Scorecard, Washington
received full marks (8 out of 8) for its State Building Energy
Codes, tying in first place with California and Oregon,
creating a strong "West Coast" standard for state building
energy codes.
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Examples of Energy
Efficiency Policy
Building Energy Codes
E2SSB 5854 (2009):
 Requires the State Building Code Council to adopt energy
codes for new homes and buildings that will gradually
move towards the state achieving a 70 percent reduction in
energy use for such buildings by 2031. If economic,
technical, or process factors may interfere with achieving
this reduction target, the Council must report its findings to
the Legislature.
 Requires CTED to develop a strategic plan for enhancing
energy efficiency and reducing greenhouse gases in
homes, buildings and neighborhoods. In doing so must
identify barriers to achieving net zero energy use and ways
to overcome these barriers in future updates to the State
7 Energy Code.
Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
 Washington received the highest score possible -5/5 -- from the ACEE for its electricity energy
efficiency program spending in 2006. As a percent of
total utility revenues, Washington ranked second
overall (behind Vermont) by spending 2.2 percent of
total utility revenues on electricity energy efficiency
programs (not including weatherization program
funding).
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Integrated Resource Planning
key to a Region’s Future
What is an Integrated resource plan?
 Integrated Resource Planning is an assessment of
demand-side and supply-side resources, evaluated
under consistent assumptions, to produce a costeffective resource mix that meets expected shortterm and long-term demand. The goals of the IRP are
to produce a best-cost portfolio of supply side and
demand side management alternatives to meet
customer requirements of reliability under given
constraints, to reduce costs for customers, to help
diversify energy supply mix, and to improve
modeling of demand, supply, and conservation.
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
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ESHB 1010 (2006) requires all investor-owned and consumerowned electric utilities (with more than 25,000 customers) to
develop detailed integrated resource plans (IRPs) that describe the
mix of generating resources and conservation and efficiency
resources that will meet current and projected needs of the utility at
the lowest reasonable cost. These plans must contain a number of
elements, including: (1) demand forecasts for at least the next 10
years; (2) assessments of commercially available conservation and
efficiency resources; (3) assessments of commercially available
utility scale renewable and nonrenewable generating technologies;
(4) comparative evaluation of renewable and nonrenewable
generating resources; (5) integration of the demand forecasts and
resource evaluations into a long-range assessment describing the
mix of supply side generating resources and conservation and
efficiency resources; and (6) a short-term plan identifying the
specific actions to be taken by the utility consistent with their longrange IRP.
Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
 ESHB 1010 (2006) continued. All other utilities in the state,
including those utilities that receive essentially all of their
power from Bonneville Power Administration (BPA), must
file either an IRP or a less detailed "resource plan" (RP). If
such a utility elects to file an RP, it must: (1) estimate
loads for the next 5 and 10 years; (2) enumerate the
resources that will be maintained and/or acquired to serve
those loads; and (3) explain, if the resources chosen are
not renewable resources or conservation and efficiency
resources, why such a decision was made.
 http://www.cted.wa.gov/site/1140/default.aspx
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
Some regional IRP examples include:
 Avista: Key energy efficiency highlights (2007 IRP):
 The Preferred Resource Strategy (PRS) includes 350 MW of
CCCT, 300 MW of wind, 35 MW of other Renewables, and 87
MW of conservation between 2007 and 2017.
 Conservation acquisition is approximately 25 percent higher
than in its 2005 IRP.
 http://www.avistautilities.com/inside/resources/irp/electric/Doc
uments/2007AvistaIRP.Pdf
 http://www.avistautilities.com/inside/resources/irp/electric/Doc
uments/2007AvistaIRPSupplemental.pdf
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
Some regional IRP examples include:
 PSE: Key energy efficiency highlights (2007 IRP):
 It is estimated that there is 702 aMW of technically feasible
electric energy efficiency potential by the end of the 20-year
planning horizon in 2027.
 Approximately 434 aMW of these resources are cost-effective
with an average levelized per unit cost of five (5) cents per
kWh.
 Across all sectors, 341 aMW (nearly 80% of the economic
potential) are deemed reasonably achievable.
 If fully deployed, the identified achievable potentials amount
to nearly 10% of PSE’s forecast load in 2027, and 30% of the
projected load growth over the 20-year planning period.
 http://www.pse.com/energyEnvironment/energysupply/Pages/
energyResourcePlanning.aspx
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
 Washington’s The Department of General Administration
(GA) offers energy savings performance contracting to
enable capital-strapped state agencies, school districts,
and municipalities to tap various outside capital sources
for energy upgrades. According to GA, since 1986 over
100 projects have utilized energy savings performance
contracting to install energy efficiency measures, adding
up to approximately $152,895,053 in total facility
improvements to date, with a total avoided cost since 1986
of approximately $66,310,408.
 http://www.ga.wa.gov/EAS/epc/espc.htm
 http://www.ga.wa.gov/EAS/epc/convinced.htm
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
Recent Legislative Activity:
 SHB 1895 (2005):Authorizes aggregated energy audits and
conservation measures for municipalities. Municipalities
may conduct energy audits and implement cost-effective
energy conservation measures among multiple
government agencies.
 ESSB 5509 (2005): Provides that all major facility projects
funded in the state capital budget, or projects financed
through a financing contract as defined in RCW 39.94.020,
must be designed, constructed and certified to at least
meet the U.S. Green Building Council Leadership in Energy
and Environmental Design (LEED) silver standard. This
requirement applies to any entity, including public
15 agencies and public school districts.
Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
Recent Legislative Activity Continued:
 E2SSB 5854 (2009):Requires qualifying public agencies to
create an energy benchmark and report the performance
rating for each reporting public facility. GA must establish
a state Portfolio Manager Master Account to provide
shared reporting for all public facilities.
 By July 1, 2011, reporting public facilities with a
performance rating score below 50 (average) must conduct
a preliminary energy audit. An investment grade audit
must be completed by July 1, 2013 if potential costeffective energy conservation measures are identified. Any
identified cost-effective energy conservation measures
must be implemented by July 1, 2016.
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
Recent Legislative Activity Continued:
 State agencies may not enter into a new lease or lease
renewal for a building with a performance rating score
below 75 unless a preliminary audit has been conducted
within the last 2 years, and the owner agrees to perform an
investment grade audit and implement cost-effective
energy conservation measures within the first 2 years of
the lease agreement. OFM may waive these requirements if
it determines compliance is not cost-effective or feasible.
 GA must review the cost and delivery of agency programs
to determine the viability of relocating from buildings
leased by the state with an energy performance score
below 50.
 http://www.cted.wa.gov/site/1140/default.aspx
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Examples of Energy
Efficiency Policy
Electric Energy Efficiency Programs
Recent Legislative Activity Continued:
 HB 1007 2009 State Energy Efficiency and Renewable
Energy Improvement Loans. The Commission must make
available secured loans to certified applicants for the
purpose of providing financing for all or part of the project
costs of any energy efficiency improvement or renewable
energy improvement. The period of such loans is 10 years
for energy efficiency improvements and 25 years for
renewable energy improvements. The Commission must
periodically issue Sustainable Energy Trust bonds for the
purpose of financing the project costs of energy efficiency
improvements and renewable energy improvements
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Utilities Assumed Relatively Modest BaseCase Carbon Emission Price Projections
Lieberman-Warner 2007
(EIA "Ltd. Alternatives &
No Intn'l Offsets")
$60
Range of Scenarios (Min & Max)
Base-Case Assumption
$50
$40
$30
Lieberman-Warner 2007
(EIA "Core")
McCain-Lieberman 2007
(EIA "Core")
Bingaman-Specter 2007
(EIA "Core")
$20
$10
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2010-2030 levelized price
(2007$/short ton CO 2)
Levelized Carbon Emission Price Projections (2010-2030)
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Global GHG abatement cost curve beyond
business-as-usual– 2030 McKinsey
Abatement cost
€ per tCO 2e
Cars plug-in hybrid
60
50
40
30
20
10
Degraded forest reforestation
Residential electronics
Nuclear
Residential appliances
Pastureland afforestation
Retrofit residential HVAC
Degraded land restoration
Tillage and residue management nd
2 generation biofuels
Insulation retrofit (residential)
Building efficiency new build
Cars full hybrid
Waste recycling
Gas plant CCS retrofit
Coal CCS retrofit
Iron and steel CCS new build
Coal CCS new build
Low penetration wind
Solar CSP
Solar PV
0
-10
-20
-30
-40
-50
-60
-70
-80
-90
5
10
20 soil restoration 25
Organic
Geothermal
Grassland management
Reduced pastureland conversion
Reduced slash and burn agriculture conversion
Small hydro
1st generation biofuels
Rice management
Efficiency improvements other industry
Electricity from landfill gas
Clinker substitution by fly ash
Cropland nutrient management
Motor systems efficiency
Insulation retrofit (commercial)
Lighting - switch incandescent to LED (residential)
-100
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15
30
All levers need to be leveraged
to address the issue
35
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Abatement
potential
GtCO2e
per year
Power plant
biomass co-firing
Reduced intensive
agriculture conversion
High penetration wind
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Firming the Challenge!
WECC RPS Mandates
State
BC
Alberta
Washington
Montana
Oregon
Idaho
Wyoming
California
Nevada
Utah
Colorado
Arizona
New Mexico
2020
2015
2010
N/A
N/A
N/A
N/A
N/A
N/A
15%
3%
0
15%
15%
10%
20%
15%
0
0
0
0
0
0
0
33%
26%
20%
Must atleast +1% per Year
20%
20%
12%
0
0
0
20%
15%
5%
10%
5%
2.50%
15%
15%
0
Renewables….WECC wide: Goals
vs. Current
US Area of WECC
200,000
Target Renewable
180,000
Expected 2008 Renewable
160,000
140,000
GWh
120,000
100,000
80,000
60,000
40,000
20,000
2010
2015
Year
2020
Legislative Issues Going Forward
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•
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•
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Changing RPS law in Washington
Standard offer(feed-in tariff)
Risk of market spikes caused by uncoordinated
mandates
Transmission critical for immediate mandates
Boutique standards for RPS mandates in Region
What Climate Change Policy? Cap and Trade or
Carbon Tax?
Pancaking of climate change taxes
Credit situation not forecasted in projections.
Lack of regional Strategy on new/clean energy
Thank you!
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