1. DRAFT Regional Energy Efficiency Strategy Public Workshop September 2, 2009 Lisa Van de Water Air Quality Specialist

2. 2 Regional Energy Efficiency Strategy – the basics Long-range strategy to programmatically encourage & incentivize non-regulatory emissions reductions through energy efficiency Regional, coordinated approach to EE Partnership with & leveraging of existing EE programs (utilities, regional partners) to maximize efficiency & emissions reductions

3. 3 Overview 2007 Ozone Plan – Dual-path Strategy Electricity Production & Consumption REES Components ARRA “kick-start” Review Schedule Questions & Comments

4. 4 2007 Ozone Plan Attainment of 8-hour federal ozone standard Significant Challenges –Topography –Meteorology “Dual-path” strategy –Regulatory Measures –“Black-Box” – Fast Track Strategy

5. 5 2007 Fast Track Emission Reduction Measures Green Contracting Green Fleets Truck Replacement/Retrofit/Repower Short Sea Shipping High-Speed Rail Alternative Energy Energy Conservation – Efficiency Heat Island Mitigation Episodic/Regional Controls Inland Ports

6. 6 “Green” Clean Air Opportunity Need for non-regulatory emissions reductions AB 32 greenhouse gas reductions American Recovery & Reinvestment Act –Significant energy efficiency & renewable energy dollars –Economic stimulus

7. 7 Complexity of Electricity Production –What resource: fossil fuel or renewables –Where: local or imported –How clean: what are the byproducts –Cost: base load versus peak load Consumption –Who: sectors –When: off-peak or peak –For what: critical systems or household appliances

8. 8 Complexity of Electricity Production –What resource: fossil fuel or renewables –Where: local or imported –How clean: what are the byproducts –Cost: base load versus peak load Consumption –Who: sectors –When: off-peak or peak –For what: critical systems or household appliances

9. 9

10. 10 Complexity of Electricity Production –What resource: fossil fuel or renewables –Where: local or imported –How clean: what are the byproducts –Cost: base load versus peak load Consumption –Who: sectors –For what: critical systems or household appliances –When: off-peak or peak

11. 11 Electricity Use & Air Quality NO x SO x Source: eGRID2007 Version 1.0, Year 2005 Summary Tables (created in 2008) CAMX * CO 2 712 lb/MWh CH 4 30 lb/GWh N2ON2O8 lb/GWh NO X 0.6 lb/MWh SO X 0.5 lb/MWh TX 1,324 18 15 0.8 3.2

12. 12 Electricity Generation Resource Mix Source: eGRID2007 Version 1.0, Year 2005 Summary Tables (created in 2008) CAMX = 0.24% US = 0.01% All Fossil Fuels CAMX – 56% US – 72% back

13. 13 California Major Utilities' Resource Mix 2.0%1.0%3.0%2.0%3.0%1.8%Wind 1.0%<1% 0.0%1.0%0.2%Solar 3.0%4.0%<1%4.0%1.0%2.1%Small Hydro 3.0%<1%2.0% 9.0%4.7%Geothermal 3.0%1.0%3.0%5.0%2.0%2.1%Biomass 12.0%6.0%8.0%13.0%16.0%10.9%Renewables 0.0%10.0%15.0%23.0%17.0%12.9%Nuclear 41.0%30.0%50.0%42.0%54.0%41.5%Natural Gas 47.0%6.0%10.0%19.0%5.0%19.0%Large Hydro 0.0%48.0%18.0%3.0%8.0%15.7%Coal SMUDLADWPSDG&EPG&ESCEStatewide Resource Type SOURCE: CEC Website Data - 2006 http://energyalmanac.ca.gov/electricity/electricity_resource_mix_pie_charts/index.html

14. 14 Complexity of Electricity Production –What resource: fossil fuel or renewables –Where: local or imported –How clean: what are the byproducts –Cost: base load versus peak load Consumption –Who: sectors –For what: critical systems or household appliances –When: off-peak or peak

15. 15 Base Load & Peak Load Base Intermediate Peak Winter Power Demand Time of Day Base Intermediate Peak Summer Power Demand Time of Day

16. 16 Complexity of Electricity Production –What resource: fossil fuel or renewables –Where: local or imported –How clean: what are the byproducts –Cost: base load versus peak load Consumption –Who: sectors –For what: critical systems or household appliances –When: off-peak or peak

17. 17 CA Electricity Usage per Capita

18. 18 CA Electricity Demand

19. 19 Complexity of Electricity Production –What resource: fossil fuel or renewables –Where: local or imported –How clean: what are the byproducts –Cost: base load versus peak load Consumption –Who: sectors –For what: critical systems or household appliances –When: off-peak or peak

20. 20 Source: CA Energy Commission, Energy Consumption Data Management System; 2007 All Utility Entities California Electricity Consumption

21. 21 Source: CA Energy Commission, California End- Use Survey, 2006 Commercial Electricity Use by Building Type All Office 24.5%

22. 22 Source: CA Energy Commission, California End- Use Survey, 2006 Commercial Electricity Usage by End Use Total Lighting 35% Lighting Cooling Refrigeration Ventilation 75%

23. 23 Source: End-Use Consumption of Electricity 2001, Energy Information Administration, U.S. Department of Energy Residential End-Use Electricity Usage

24. 24 Regional Energy Efficiency Strategy Outreach, Information & Education Tools & Programs –Residential, Commercial/Industrial, Local Government –Programs for successful energy efficiency & green fleets programs Grants Program –Expand existing opportunities –New grant opportunities

25. 25 Outreach, Education & Information Healthy Air Living Targeted Outreach –Local Government –Minority Small Business –Neighborhood Groups –Industrial Regulated Sources –Ag Regulated Sources

26. 26 Outreach, Education & Information Comprehensive Energy Website Energy Efficiency Opportunities Analysis –Model after studies by McKinsey & Company Look at economics of Energy Efficiency & GHG abatement Focus on the regional scale –Enlist help from Valley Colleges & Universities Regional energy efficiency experts

27. 27 McKinsey & Company, December 2009 U.S. Energy Efficiency Supply Curve - 2020 Dollars per million BTU’s saved over lifetime of measure. 80% of opportunity requires deploying 58% of upfront investment.

28. 28 Tools & Programs Residential Programs –Categories of homes –Packaged retrofits –Efficient efficiency Commercial Programs –Energy audit –Retrofits –Simple work practices –Long-range strategies for sustainable efficiencies & renewables

29. 29 More Tools & Programs Industrial Programs –Processes & operations –Office efficiencies Municipal Programs –Energy policies –Implementation assistance Fleets –Fuel efficiency, fleet minimization –Alternative fuels CNG/LNG Electric with solar recharge

30. 30 Grants & Incentives Expand ERIP to include energy efficiency Broad spectrum of assistance EE projects that improve air quality –Technical assistance for grant applications –Letters of support from AQ perspective –Grant administration with partners

31. 31 Partnerships Coordination is key –Message –Programs Next two years –SJVCEO –ARRA funds & projects –EE Opportunities Analysis Utility Partners – best way to reach multiple markets/customers so that efforts are not duplicated

32. 32 “Kick Start” with ARRA EECBG Program for small jurisdictions –Regional application –Maximize dollars brought in & energy savings SEP funding through CEC –Municipal financing opportunities –Comprehensive Retrofit Program Residential Commercial Other grant opportunities – $7.1 million, so far –Alternative fuels & vehicles –Renewable Energy

33. 33 Implementation End of 2009 – submit ARRA applications to CEC & initiate programs February 2010 – EE & RE website End of 2010 – Energy Efficiency Opportunities Analysis Ongoing – Outreach & Education; monitor EE savings; monitor emissions reductions 2011 & beyond – Expand programs & grants opportunities

34. 34 Review Schedule Fast Track Task Force – June 16 Public Workshop – September 2 nd –Present draft –Comment period ends September 16 th –Revised draft Governing Board – November 5 th

35. 35 Comment Deadline 5:00 p.m. September 16, 2009 Contact: Lisa Van de Water Mail:San Joaquin Valley APCD 1990 E Gettysburg Ave Fresno CA 93726 Phone:(559) 230-6100 Fax:(559) 230-6064 Email:lisa.vandewater@valleyair.org

36. Thank You