1. Anna Garcia Air Innovations Conference August 2004
Energy Efficiency, Renewable Energy and Distributed Generation: Clean & Profitable Ways to Reduce Emissions
Anna Garcia
Air Innovations Conference
August 2004

2. Overview
Energy efficiency is fastest, most cost effective remedy to satisfy both power needs and environmental quality concerns
Renewable energy and clean distributed generation provide cleaner energy that reduce stresses on the electricity grid.
States, cities and businesses are using these technologies to save money and improve the environment and their local economies through innovative partnerships and strategies

3. Why EE and RE Makes Sense
Improves the Environment
Reduces multiple emissions (NOx, SO2, CO2, Pb, Hg) by up to 100% for displaced generation at lower cost
Boosts the Local Economy
Saves money, lowers compliance costs, creates jobs and raises productivity
Efficiency $ turns over an average 7X in local economy
Enhances Electricity Reliability
Lowers electricity demand and relieves transmission load in constrained markets

4. EE Offers Critical Environmental Benefits
Energy Innovations, 1997: “Innovations Path” reduces energy consumption by over 40%, and by 2010 reduces the following pollutants:
NOx to 24% below 1990 levels
SO2 to 64% below 1990 levels
CO2 to 10% below 1990 levels
Clean Energy Futures, 2000: Efficiency programs reduce demand growth by 20 to 47%
avoid need for ~ big 300 MW power plants and their associated emissions

5. EE Reduces Emissions Cost-Effectively
Source: Analyzing Electric Power Generation Under the Clean Air Act, US EPA, March 1998

6. Source: STAPPA/ALAPCO, 1999.

7. Source: The Center for Applied Research, 1997.

8. GHG Emissions Increasing 60 Percent by 2025
Projected U.S. carbon emissions by sector and fuel, (million metric tons)
Energy Information Administration, Annual Energy Outlook 2004 with Projections to 2025, January 2004

9. Energy Efficiency Helps Economic Development
Conventional power supply = cents/kWh
Energy Efficiency = < cents/kWh
Energy efficiency can reduce base loads and peak demands, enhancing system security
Energy efficiency increases reliability and supply
If we help our businesses reduce the cost of operation, our products can be more competitive, and we can create more jobs
If we install energy improvements and renewable energy applications we create good new jobs 14

10. Economic Benefits of EE
Savings for facility owners, consumers
One NJ program: $200M to ratepayers over 5 years
Increased local employment
Construction, engineering and maintenance
Full-time, long-lasting jobs
Avoided cost of additional T&D, upgrades
Avoided cost of power or generation, and elimination of line losses

11. Reliability Benefits of EE
Deliver new resources faster than generation, transmission, pipelines, wells
Support weak points on grid
Capacity
Energy
CA re-targeting EE programs to reduce peak
14 % of peak is residential use
another 14% is commercial use

12. Electricity reliability & transmission
Electricity Generation by Fuel, (billion kwh)
Energy Information Administration, Annual Energy Outlook 2004 with Projections to 2025, January 2004

13. By 2011, generating capacity anticipated to increase 30%...
…compared to a 5% increase in transmission

14. Aspects of air quality planning processes that are disincentives to energy efficiency:
Input-based limits and budgets rather than output-based
Focus on end-of-pipe, single pollutant fixes
No economic value attributed to prevention of multiple pollutant emissions achieved through efficiency

15. Why It Makes Sense Improves the Economy Improves Air Quality
Reduces air pollution more effectively than many end-of-pipe controls
Prevents emissions of NOx, SO2, PM, CO2, and Hg
Accelerated adoption of EE/RE technologies can improve a state/local area’s air quality
Emissions reductions are cost-effective
Improves the Economy
Saves money by reducing energy use and bills, and lowering compliance costs
Creates jobs and increases productivity, resulting in higher Gross State Product
Greater economic growth & more $ in state’s budget
Increases comfort & productivity

16. What’s going on in the states?$ R $ R $
Regional GHG Initiative (RGGI) – not including MD and
Regional GHG Registry (RGGR) $ $ $ R $ $ R $ $ $ R $ $ R $ $ $ $ $ $ R $
Climate Action Plans $
Net Metering $ $
Public Benefit Funds
Renewable Energy Mandates
West Coast Governors Initiative
Completed GHG inventory
Mandatory Reporting or Voluntary Registries for GHG R
GHG inventory in progress
Note: Data from Pew Center,