Energy Policy Challenges and Transportation Opportunities Annual Meeting of the Independent Energy Producers Association September 26, 2013 Janea Scott, Commissioner California Energy Commission Janea.Scott@energy.ca.gov (916) 654-4930 California Energy Commission Commissioners Five Commission seats, appointed for five year, staggered terms. Chair Robert Weisenmiller Scientist / Engineer Commissioner Janea Scott Public Member Commissioner Andrew McAllister Economist Commissioner David Hochschild Environmental Commissioner Karen Douglas Attorney 2 California Energy Commission Diverse Responsibilities • Energy Analysis develop key energy metrics and archive historic data • Renewable Energy: administer renewable incentive programs, provide certification, and • Permitting: review and permit thermal verification of renewable generation, and power plants >= 50 megawatts (MW) • promulgate POU RPS regulations R&D: research and development program administration (e.g. PIER and EPIC) • Energy Efficiency: promulgate appliance • emergency planning and oversight and building energy efficiency regulations (Title 20 & 24) • Transportation: support deployment of alternative vehicles and renewable fueling infrastructure Contingency Planning: State energy • IEPR: publication of the “Integrated Energy Policy Report,” the State’s official source of energy policy guidance 3 California’s Energy Policy Key Policies & Goals Assembly Bill 32 2006 legislation reducing GHG emissions to or below 1990 levels by 2020. Executive Order S-3-05 GHG Emissions Issued by Gov. Schwarzenegger, establishes goal to reduce GHG emissions to 80% below 1990 levels by 2050. Energy Action Plan’s Preferred Loading Order Issued in 2003 and 2008, prioritizes cost effective investments in: 1st) EE and DR; 2nd) renewables and DG; and 3rd) clean fossil fuel sources and infrastructure improvements . Clean Energy Jobs Plan Senate Bill X1-2 Established in 2010 by Gov. Brown, directs production of 20 gigawatts (GW) of new renewables by 2020, 12 GW of distributed energy, and 6.5 GW of CHP. 2011 legislation requiring all electricity retailers to meet 33% of retail sales with renewable energy resources by 2020. CPUC Energy Efficiency Strategic Plan Sets efficiency goals, including zero net energy (ZNE) goals for new homes by 2020, and for new commercial buildings by 2030 Executive Order B-18-2012 Green State Buildings Issued by Gov. Brown, directs efficiency improvements in new or renovated state buildings larger than 10,000 square feet; sets ZNE and GHG reduction goals. Executive Order B-16-2012 Zero Emission Vehicles Issued by Gov. Brown, sets long-term target of reaching 1.5 million zeroemission vehicles (ZEV) by 2025; establishes goal to reduce GHG emissions from transportation sector to 80% below 1990 levels by 2050. Low Carbon Fuel Standard Adopted in 2009, the regulation requires a 10 percent reduction in the carbon intensity of California’s transportation fuels by 2020. California Energy Commission 2013 Integrated Energy Policy Report Scope • Demand response – Demand Response action plan • Efficiency – Definition of and pathway to zero net energy, efficiency in existing buildings • Renewables – Status of bioenergy development, barriers to biomethane • Electricity – Demand forecast, reliability given SONGS outage, strategic transmission plan • Nuclear – Utility progress on 2011 IEPR recs on seismic safety, spent fuel storage, and station blackouts • Natural gas – Demand forecast, market trends and outlook • Transportation – Supply/demand forecast, evaluation of projects funded under AB 118 • Climate change – Impacts on energy supply and demand 5 Immediate Challenges Southern California reliability • San Onofre closure • Once-through cooling retirements • Governor's Office and Energy Agencies coordinating New resources will be needed • September 9, 2013 IEPR Workshop – Joint Staff Preliminary Reliability Plan 6 California Energy Commission Desert Renewable Energy Conservation Plan (DRECP) A collaborative process to guide renewable development in the California desert that protects environmental, cultural and military interests. • Mandated by Executive Order # S-14-08 • Created to help meet RPS goals • Initiated in late 2010, draft expected in 2013 • PARTICIPANTS: Energy Commission, CPUC, CAISO, CA Department of Fish & Game, BLM, U.S. Fish & Wildlife Service, National Parks Service, U.S. EPA, Department of Defense 7 Transportation Sector Key to meeting both GHG and air quality goals Mobile sources are largest source of both GHG and air pollutant emissions • 40% of state GHG emissions • Over 80% of NOx emissions Fundamental transformation needed • Fuels • Vehicles • Infrastructure California Energy Commission Transportation Alternative and Renewable Fuel and Vehicle Technology Program • $100 million annual Investment • Supports climate change, low-carbon fuel, and air pollution policy • Promotes economic development • Invests in fueling and vehicles 9 Alternative and Renewable Fuel and Vehicle Technology Program (AB118) The Purpose “…develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies.” (Health and Safety Code Section 44272(a)) The Investment Plan • Advisory panel provides guidance from broad cross section of California stakeholder groups • Allow members of the public to participate in funding allocation process • Direct program activities to assist in achieving state policy goals 10 ARFVTP (AB 118) Funding and Objectives • Invest in a portfolio of alternative low-carbon and renewable fuels and advanced vehicle technologies in California to help meet our energy, environmental, and economic goals. • Alternative fuel production, distribution and dispensing • Alternative technology vehicle development and manufacturing for trucks and light duty vehicles – (EVs, CNG/LNG, Fuel Cell, Flex Fuel) • Workforce training • Environmental, market and technology assessments • Leveraging private sector investments 11 Existing ARFVTP Agreements (2009-13): $410 million 12 2013-14 Investment Plan Approved Funding FY 2013-2014 (Millions) Project/Activity Alternative Fuel Production Biofuel Production and Supply Alternative Fuel Infrastructure Alternative Fuel and Advanced Technology Vehicles Emerging Opportunities Manufacturing Workforce Development and Training Market and Program Development $23 Electric Charging Infrastructure $7 Hydrogen Fueling Infrastructure $20 Natural Gas Fueling Infrastructure $1.5 Natural Gas Vehicle Incentives $12 Light-Duty PEV Incentives $5 Medium- and Heavy-Duty Advanced Vehicle Technology Demonstration $15 Emerging Opportunities $4 Manufacturing Facilities, Equipment and Working Capital $5 Workforce Development and Training Agreements $2 Regional Alternative Fuel Readiness and Planning $3.5 Centers for Alternative Fuels and Advanced Vehicles Total Available $2 $100 Alternative Vehicles in California 14 Thank You Commissioner Janea Scott California Energy Commission Janea.Scott@energy.ca.gov (916) 654-4930 September 26, 2013