Presentation is loading. Please wait.

Presentation is loading. Please wait.

Washington State Energy Past / Present / Future

Similar presentations

Presentation on theme: "Washington State Energy Past / Present / Future"— Presentation transcript:

1 Washington State Energy Past / Present / Future
Tim Stearns Senior Energy Policy Specialist Washington State Department of Commerce

2 people cost secure sustainable pollution portability reliability

3 Energy Economy Environment
The Three E’s are closely linked - Energy, Environment, and Economy Energy Policy Division – understand, analyze, and provide options to shape/direct those interrelationships for the benefit of Washington Citizens Read our policy goal - Working for an Economically and Environmentally Sound Energy Future

4 “…Americans generally won't acknowledge conflicts and make choices
“…Americans generally won't acknowledge conflicts and make choices. The cry is for low prices, ample supplies, absolute reliability, clean air, no disfiguring construction projects, local autonomy and national accountability. Great. Unfortunately, there are tensions among all these goals.” Paul Samuelson, Washington Post, August 20, 2003




8 Washington State’s Energy Profile


10 Washington’s emerging challenges
State grows 130,000 people per year 1.3 million per decade – double < 50 yr 273 to house, feed, employ, transport, educate… 300 new megawatts per year Can we double system in 50 years? No new dams sites – 15,000 miles lines New subdivision – apartment Car culture – walkable communities?


12 Expenditures on Fossil Fuels Washington State: 1999-2008
Despite being awash in energy, we send billions of dollars out of our state economy each year to acquire energy. This graph shows our state-wide expenditures on fossil fuels over the past decade or so. The top blue line is the dollar amount in constant 2000 dollars, reaching $16B in The lower line shows the expenditures as a percent of gross state product, rising to nearly 5% of our state’s economic output last year. Yes, things have dropped off this year quite a bit, but the question is what will happen as the world economy recovers? And, more to the point, if you were running a business where one of the expense lines on your income statement had risen by over three times in the last nine years, I expect you would be focusing on how to better manage that expense. We need to do no less as collective stewards of our state’s economy. Excludes fuel taxes, refinery and pipeline costs and profits Sources: EIA, BEA and Sightline

13 Today 11 million people Largest hydrosystem Fossil fuel transportation imported Car based Plenty of inefficiency Centralized generation Future 20 + million Integrated system Clean fuel Locally produced Transit and vehicles Zero energy buildings distributed


15 Energy is a Big Part of “Green” Jobs

16 people heat light cooking manufacturing transportation information

17 The Science of Climate Change is Very Strong
“Most of the observed increase in global average temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic GHG concentrations.” Source: Intergovernmental Panel on Climate Change, 2007 Synthesis Report

18 WA Greenhouse Gas Emissions (2005)
Total = 94.8 million metric tons CO2-equivalent

19 State Targets - Reduce Emissions Grow Our Economy
By 2020 reduce GHG emissions to 1990 levels By 2035 reduce emissions to 25% below 1990 levels By 2050 reduce emissions to 50% below 1990 levels By 2020 increase the number of clean energy sector jobs to 25, from the 8,400 jobs in 2004 By 2020 reduce expenditures by 20% on fuel imported into the state

20 Efficiency

21 “Six Americas”—six groups or “publics” beliefs, attitudes, risk perceptions, motivations, values, policy preferences, behaviors and barriers to action 1. Alarmed—16 percent of Americans—are eager to get on with solutions 2. Concerned—29 percent—know climate change is happening, human caused and serious, but they don’t necessarily see the urgency. 3. Cautious—25 percent—happening natural or human-caused. 4. Disengaged—8 percent—have heard of global warming but don’t know 5. Doubtful—13 percent—don’t think it’s happening, or natural. 6. Dismissive—8 percent—convinced not happening, hoax or a plot. Listen - values - motivations common ground.


23 Energy efficiency always should be America’s highest-priority energy resource. Cheap clean reliable secure



26 Conservation is Cost-effective Under Many Different Future Scenarios
In addition, analysis of several alternative assumptions about carbon control policies shows that regardless of the existence or the form of carbon policies aggressive conservation remains cost-effective. This is a powerful finding that place conservation policies at the top of the Council’s priorities. Source: NW Power and Conservation Council - Draft 6th Plan

27 Renewable Energy

28 Washington’s First Renewable “Revolution”
Much of WA Post WWII Economy Tied to Inexpensive Renewable Electricity Aluminum Industry Defense Industry Forest Products, Chemical Rural Electrification

29 * Renewable Portfolio Standards 29 states & DC have an RPS †
State renewable portfolio standard State renewable portfolio goal / October 2009 Solar water heating eligible * Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources WA: 15% by 2020* NV: 25% by 2025* AZ: 15% by 2025 NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) HI: 40% by 2030 Minimum solar or customer-sited requirement TX: 5,880 MW by 2015 UT: 20% by 2025* CO: 20% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)* MT: 15% by 2015 ND: 10% by 2015 SD: 10% by 2015 IA: 105 MW MN: 25% by 2025 (Xcel: 30% by 2020) MO: 15% by 2021 WI: Varies by utility; 10% by 2015 goal MI: 10% + 1,100 MW by 2015* OH: 25% by 2025† ME: 30% by 2000 New RE: 10% by 2017 NH: 23.8% by 2025 MA: 15% by % annual increase (Class I Renewables) RI: 16% by 2020 CT: 23% by 2020 NY: 24% by 2013 NJ: 22.5% by 2021 PA: 18% by 2020† MD: 20% by 2022 DE: 20% by 2019* DC: 20% by 2020 VA: 15% by 2025* NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) VT: (1) RE meets any increase in retail sales by 2012; (2) 20% RE & CHP by 2017 29 states & DC have an RPS 6 states have goals KS: 20% by 2020 OR: 25% by 2025 (large utilities)* 5% - 10% by 2025 (smaller utilities) IL: 25% by 2025 WV: 25% by 2025*† CA: 33% by 2020

30 We’re Number 4! Source : American Wind Energy Assoc. ( )

31 Resource Costs: Long Term
Source: NW Power and Conservation Council – Draft 6th Plan

32 Initiative 937 – Energy Independence Act
Sets the Policy Framework for Utility Development of Renewable Electricity 3% of Total Load by 2009 9% by 2012 15% by 2020 State’s large electric utilities must develop conservation plans to acquire all cost effective conservation First plan must be completed by Jan. 1, 2010 and set targets for biennium

33 Bioenergy Development
Biodiesel Facilities Anaerobic Digesters Research on Alternative Feedstocks Bioenergy Biomass CHP

34 Not in My Backyard ! ! I Gregoire approves wind-power project

35 Lies, Damn Lies & Statistics






41 –General Dwight D. Eisenhower
"In preparing for battle, I have always found that plans are useless, but planning is indispensable." –General Dwight D. Eisenhower

42 A successful state energy strategy
balance goals to: Maintain competitive energy prices Increase competitiveness Meet the state's enivronmental goals Be sustainable

43 Framework for success - alignment
Policy Mandates - create markets Tax incentives regulation Leverage partners Private sector Federal government

44 Clean Energy Leadership Council
Advisory group of clean energy industry leaders Charged – How does the state build its clean energy industry? Four major opportunity areas Smart Grid Energy Efficiency “Green” building and the built environment Sustainable biomass, biofuels, Bioproducts Major study by Navigant Consulting – Fall ‘10

45 Grow and improve jobs in Washington
Align Core Mission Grow and improve jobs in Washington Align Policies and Execution Policy and Innovation Unit within Commerce “Sector Lead” Eight principles will guide our work at Commerce Businesses create most jobs. We must be closely connected to employers to be successful Government action and policy significantly shape the state’s business climate Strong economies require strong communities A vibrant business community benefits all of us Government should focus on broader policy that looks for outcomes rather than betting on specific technologies or approaches Retaining our current employers and promoting their growth is our first priority We will be opportunistic and nimble to respond to a rapidly changing global economy We will focus first on priorities, and then establish an organizational structure to drive progress in those priority areas

46 Major State Energy Programs (ARRA)
Low-Income Weatherization $59 million State Energy Program (SEP) $60 million $38.5 million for Loan and Grant $14. 5 neighborhood Energy Efficiency $5 million credit enhancement for energy efficiency $500k for farm efficiency tools State and Local Energy Efficiency and Conservation Block Grants $56 million Most directly to large local government and tribes $6.4 million to small cities and counties Transportation planning grants Resource Conservation Manager grants

47 Major State Energy Programs (ARRA)
State and Local Block EE Block Grant Competitive $390 million to 8 to 20 district energy efficiency projects 5 to 1 leverage Large cities, counties, tribes, state Residential and commercial sector energy efficiency Also $ 63 million to small cities/counties for energy efficiency Appliance Rebate Program $6.2 million Energy Assurance $810,000 Utility Commission Assistance $900,000

48 What’s on the Horizon? Will natural gas have a new (old) role?
Have high gasoline prices (and the recession) permanently altered demand? When will be have a price on carbon? Can we massively increase investment in efficiency? What are the next big technological breakthroughs? Electric vehicles Next generation biofuels Inexpensive photovoltaics Zero energy buildings

49 Smart Energy $ Savings New services Reliability Security Efficiency
Environment Safety

50 Key Trends/Observations - Energy
Building Energy Efficiency Largely driven by building codes and appliance standards Moving toward more efficient building with generation included Best building practices integrate envelope, hvac, lighting and occupants Efficiency activity driven by utility rebates, programs and public investment Transportation Electrification Washington State is involved in one of the largest demonstration of electric vehicles, charging infrastructure, energy storage (batteries) Key challenge will be integrating with the existing electric system Creating opportunities in Software, Composites, Smart Grid Wind Energy State is working with companies to capture more of the wind value chain – spare parts, operations, maintenance and training East central, Southeast and the Gorge continue to draw development. Diverse partners coming together for the world’s largest wind tradeshow. Manufacturers attempting to apply excess capacity to this new sector 50

51 Smart Grid Region involved in the largest smart grid demonstration project Grid investments will be key to integrating renewable energy Biofuels / bioeconomy Significant aviation biofuel project to fulfill 15% of Seatac’s usage Public fleets expanding use; nearing 20% on-road use in western WA State Energy /Strategy / Clean Energy Leadership Council Analyzing all fuels and sectors Retain hydro power advantage – clean & cost-effective Innovate new technologies and approaches Build on the region’s strength

52 Reinvent fire Produce Transmit Use

53 Contact Tim Stearns Senior Energy Policy Specialist
Washington State Department of Commerce


Download ppt "Washington State Energy Past / Present / Future"

Similar presentations

Ads by Google