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Development, Components and Status of the NC State Energy Plan Larry Shirley Director NC State Energy Office.

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Presentation on theme: "Development, Components and Status of the NC State Energy Plan Larry Shirley Director NC State Energy Office."— Presentation transcript:

1 Development, Components and Status of the NC State Energy Plan Larry Shirley Director NC State Energy Office

2 Making the Connection Between Energy and the Environment Film courtesy of Worldlink Media


4 News and Observer File Photo


6 2003 Ozone Alert Days CountyOrangeRedPurple Forsyth3820 Haywood4000 Mecklenburg5881 Rowan6581 Wake3680 Source: EPA

7 State Energy Office Created During Arab Oil Embargo: 1973 Department of Administration Ideal Agency: State Construction, Motor Fleet, Property, P&C Divisions Lead Agency for Energy Programs and Services in North Carolina

8 State Energy Office Energy Efficiency Universities, State Agencies Local Governments, Schools & NPOs Industrial and Residential Energy Emergencies Alternative Fuels Renewable Energy Solar, Wind, Hydro and Biomass

9 SO 2 47 tons SO tons CO 2 69 million tons CO 2 57 million tons NO x 312 tons NO x 319 tons Electrical Losses 734 TBtu Electricity 409 TBtu Wood, Waste, Biomass 96 TBtu Solar Thermal 1 TBtu Hydro 33 TBtu 10 TBtu 23 TBtu ELECTRIC POWER GENERATION Nuclear 408 TBtu Cost of Energy Imports $7 Billion Petroleum 975 TBtu Natural Gas 236 TBtu Coal 706 TBtu 696 TBtu 969 TBtu 226 TBtu 10 TBtu 408 TBtu 6 TBtu 10 TBtu Energy Flows In North Carolina

10 Energy efficiencys contribution to our national energy supply Efficiencys Contribution Actual Energy Use Source: Alliance to Save Energy, National Energy Supply (Quadrillion BTUs) Efficiencys contribution is 41 quadrillion BTUs, spread across all the sectors. This is equivalent to 836 power plants, each operating at 80% capacity, 35% efficiency and having 700 MW of capacity.

11 Implementing the NC Energy Plan Forecasting Energy and Environmental Benefits Base Case Energy Use Transportation Savings Industrial Savings Commercial Savings Residential Savings Energy Efficient Scenario Reduces energy use 13% Reduces CO 2 72 million lbs/year, Reduces SOx 346,000 lbs/year Reduces NOx 115,000 lbs/year

12 NC Energy Policy Council Developers of New State Energy Plan 18-member Council advises Governor & General Assembly on Energy Policy Legislators (4), NCUC, Cabinet Agencies (4), Energy Providers and Sector Reps Staffed by State Energy Office

13 State Energy Plan First Energy Plan since 1992 Strong Focus on Energy Efficiency, Renewable Energy and Alt. Fuels 18 month process (hearings, experts) 92 Recommendations 15 Top Priorities for

14 Next Steps for the Energy Plan SEO: Lead Agency for Implementation Guide for Future SEO Programs Oversight by Energy Policy Council Legislative Proposals to Gen. Assembly Presentations to Key Commissions, Boards and Agencies Review and Revise in 2 Years

15 Implementing the Recommendations Annual Progress Report to Governor and General Assembly Energy Savings to be Tracked and Program Impact Evaluated Additional Research to be Conducted on Selected Recommendations

16 The EPCs Top Fifteen: Energy and Economic Issues (1) Commerce and SEO support Energy Efficiency and Renewable Energy-related Economic Development (2)SEO should convey energy research to Commerce for recruitment strategy Status: SEO has funded ASU Energy Center to develop info on jobs and economic impacts with Commerce guidance.

17 Energy and the Environment (3)DENR – Create Greenhouse Gas (GHG) Registry Status: Policy options developed and emphasize: Voluntary approach Point and non-point sources included Third party verification Technical Assistance for participants Goals for absolute reduction of GHG

18 Alternative Fuels from Biomass (4A) Develop Alternative Fuel Industry through dedicated funding & matching grants (4B) All 100 Counties with infrastructure by 2007 (4C) Funding: $1-2 increase in vehicle registration fee

19 Alternative Fuels: Status Alt. Fuel Vehicle Demonstration Center dedicated on November 7, 2003 SEO funding pilot Incentive Programs to encourage fueling stations, vehicle purchases and competitive fuel prices 75% AFV federal purchase requirement for state vehicles: Motor Fleet

20 Alternative Fuels: Status AEC and SEO developing hybrid buses Clean Cities Programs: Triangle, Charlotte, & Asheville (new) DOT leading biodiesel user (4 million gallons since 2000 without incident) EV Challenge and Model Fuel Cell Car Programs for Grades 6-12

21 Alternative Fuels from Biomass (5) Pursue strategies to convert animal waste into environmentally sound energy sources. Status: Ethanol from Swine Waste Project underway and NC Biomass Conference held October 03.

22 Alternative Energy Sources (6) General Assembly should consider adopting net metering for all utilities. Status: Related to NC GreenPower program development and a NCUC docket, discussions are underway on net metering and interconnection issues between utilities and renewable energy advocates and generators.

23 Alternative Energy Sources (7) GA should evaluate a Renewable Portfolio Standard (RPS) that complements NC GreenPower Program. Status: SEO has contracted with ASU Energy Center to analyze economic impacts of various RPS scenarios.

24 Alternative Energy Sources (8) GA should reexamine Ridge Law as it pertains to wind energy. Status: SEO and ASU have developed wind maps for mountain region and are studying impacts on endangered plants and animals. Public opinion survey shows strong support for wind development. Similar work in coastal area now starting.

25 Alternative Energy Sources (9) SEO should propose incentives, regulatory measures, and administrative measures to develop renewable energy Status: SEO strongly supporting and funding NC GreenPower Program. SEO funding NC Solar Center to start green builder program and daylighting consortium. SEO funding ASU to analyze economic impacts of solar DHW on new residential construction.

26 Renewable Generators Solar, wind, biomass $ kWh electricity NC Utilities Sign up customers Billing and collection $4.00 NC GreenPower Participants How NC GreenPower Works NC GreenPower Contracts with generators Marketing Administration per 100 kWh

27 Disclosure (10) GA should require utilities to disclose fuel mix and emissions statistics by bill insert and website. Status: NC GreenPower Program now determining levels of disclosure needed to maintain certification. Briefing paper, with recommendations for GA, to be considered by EPC.

28 Energy Use in the Public Sector (11) State agencies and universities should reduce energy consumption by 4% annually, or 20% by Status: SEOs Utility Savings Initiative working closely with 17 universities and 25 agencies. Energy plans in place and $1+ million in rate/billing savings features roll-out of $50 million Performance Contracting program.

29 14 whole building energy efficiency projects (Energy Star Buildings Program) using a 10 year project 20% Washington Mutual Investors Fund12.5% Vanguard 500 Index11% S&P 500 Stock Index11% Fidelity Growth & Income10% Fidelity Magellan9% How do energy efficiency investments compare to other investments? 10 year average annual return

30 Energy Use in the Public Sector (12) SEO and SCO should evaluate energy savings from new life cycle cost analysis requirements Status: evaluation of random sample of recently constructed state buildings, using data from State Construction Office, has been initiated.

31 Energy Use in the Public Sector (13) Facilitate local governments to finance energy efficiency and renewable energy projects (loans, PC, bundling). Status: DPI and SEO will co-sponsor development of energy plans for K-12 schools systems. Local governments invited to USI and Performance Contracting training. Outreach and technical assistance now being provided to local governments. Loan program available to local governments.

32 Energy Use in Residential Sector (14A) NC should support a strong low- income weatherization program. Should review effectiveness of programs and analyze opportunities for improvements. (14B) SEO should develop other programs to address energy efficient housing in low- income sector.

33 Energy Use in Residential Sector Status: SEO formed Low-Income Program with $1 million from GA Manufactured Housing Efficiency Program at Greenville Utilities Commission Efficient New PHA Construction with AEC PC Program for PHAs starting now RFP to be issued in May, 2004

34 Funding for Energy Programs (15) The General Assembly should review options, such as a Public Benefits Fund (PBF) or other means, to enable funding of recommendations in the State Energy Plan. Status: Survey of other PBFs has been completed. Now preparing analysis of economic and energy impacts for review by Energy Policy Council.

35 Architect William McDonough Film courtesy of WorldLink Media

36 For More Information State Energy Office 1340 Mail Service Center Raleigh, NC (fax)

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