Presentation on theme: "Energy Action Plan “Report Card” and the AB32 “Umbrella” CFEE ROUNDTABLE CONFERENCE ON ENERGY Julie Fitch California Public Utilities Commission Director."— Presentation transcript:
Energy Action Plan “Report Card” and the AB32 “Umbrella” CFEE ROUNDTABLE CONFERENCE ON ENERGY Julie Fitch California Public Utilities Commission Director of Strategic Planning October 9, 2007
3 Energy Action Plan genesis First EAP, May 2003, important because: –Brought key energy agencies together to work on common energy policy goals –Defined concept of “loading order” Second EAP, October 2005, important because: –Added sections for climate change, transportation, and research and developments –Continued EAP tradition of joint policymaking
4 Energy Action Plan 2007 Report Card Action AreaGrade Energy EfficiencyA Demand ResponseD RenewablesB Electricity Adequacy, Reliability, and InfrastructureC Electricity Market StructureD Natural Gas Supply, Demand and InfrastructureC Transportation Fuels Supply, Demand, and Infrastruct.C Research, Development, and DemonstrationIncomplete Climate ChangeIncomplete Overall Report CardC
5 Energy Efficiency Successes Building codes and appliance standards Strong investor-owned utility programs (projected to save about one large power plant annually) Decoupling Evaluation framework Opportunity for shareholder rewards (for investor- owned utilities) Ongoing work Strategic planning framework Inclusion of publicly-owned utilities Comprehensive demand-side strategies Building code enforcement
6 Demand Response Successes Advanced metering infrastructure –PG&E: installing ~250,000 new meters this year (out of 10 million total); –SDG&E begins next year; –SCE application under review at CPUC 2500 MW of voluntary program enrollment for summer Ongoing work Dynamic pricing tariffs (tariffs that vary by time of day or cost of procuring energy). –Examples: Time of Use, Critical Peak, Real-time Pricing
7 Renewables: Successes Solar Initiative applications: 160 MW in first 8 mos. of 2007; current installed capacity in state: ~200 MW
8 Renewables: Ongoing work Renewables Portfolio Standard Tradeable renewable energy certificates Relationship to climate change/AB32 Desirability/necessity of 33% mandate Inclusion of publicly-owned utilities Solar Initiative Energy efficiency requirements as condition for solar rebate Solar water heating?
9 Electricity Adequacy, Reliability, and Infrastructure Successes Resource adequacy requirements in place and working for investor-owned utilities – reserve margin of 15-17% New generation coming online New transmission being built (1600 MW operational, 2100 MW approved, up to 15,000 MW in planning) Ongoing work Capacity market design Resource adequacy requirements for publicly-owned utilities Combined heat and power/distributed generation Clean/advanced coal?
10 Electricity Market Structure Successes Investor-owned utility procurement role restored New utility-owned generation Ongoing work CAISO Market Redesign and Technology Update (slated for March 2008) Independent generation (hybrid wholesale market)? Retail competition (direct access, retail choice, core/non-core electricity structure)?
11 Natural Gas Supply, Demand, and Infrastructure Successes Natural gas efficiency levels increased Natural gas quality rules established Ongoing work Solar water heating New gas storage capacity New pipeline capacity
12 Transportation Fuels Supply, Demand, and Infrastructure Successes Increasing focus on alternative fuels Ongoing work Continued focus on implementing AB1493 (Pavley) motor vehicle standards Low Carbon Fuel Standard Infrastructure for electric or natural gas-fueled vehicles
13 Research, Development, and Demonstration Successes Utility efficiency programs focus on emerging technologies Ongoing work Dry-cooling; once-thru cooling for electricity generation Clean/advanced coal, including carbon capture and storage Biogas
14 Climate Change Successes Implementing existing energy efficiency and renewables strategies Incorporating greenhouse gas impacts into environmental review (CEQA) of projects Encouraging participation in Climate Action Registry Ongoing work See next few slides…
15 And along came AB32… Umbrella over many existing activities in Energy Action Plan framework Added impetus to ongoing energy work
16 AB32 Energy Activities Joint proceeding (CPUC and Energy Commission) to make recommendations to Air Resources Board for energy sectors (electricity and natural gas) –Agencies will adopt decisions jointly produced Comprehensive in scope –Statewide examination –Includes all retail providers: investor-owned utilities, publicly-owned utilities, electric service providers and community choice aggregators Utility sectors will be integrated into ARB overall “scoping plan” structure for California
17 Major Outcomes Expected Consideration of regulatory and market options Ongoing role of regulatory measures and programs to reach AB32 cap Whether and how to design a cap and trade system for California Which entities should be regulated? (utilities, generators, consumers, etc.) Level of potential reductions How much mitigation can energy sectors deliver toward 2020 goal?
18 Major Theme: Everything Relates to Climate Change Crossing sectoral boundaries Energy use for water supply and treatment Electrification of transportation (cars, truck stops, ports) Landfill gas capture for electricity production Crossing traditional regulatory boundaries Common set of rules to apply to anyone who supplies electricity and natural gas to retail customers in California
19 California’s Electricity-Related Greenhouse Gas Emissions Source: CA Energy Commission Emissions Inventory