Federal Policy Impacts on California Energy Policy California Conference of Public Utility Commission Attorneys Monterey, California October 5, 2009 Commissioner Julia Levin California Energy Commission California Conference of Public Utility Commission Attorneys Monterey, California October 5, 2009 Commissioner Julia Levin California Energy Commission

Today’s Discussion Energy Efficiency Standards Renewable Portfolio Standard Transportation and Liquid Fuels Climate Policy Federal Stimulus (ARRA) Energy Efficiency Standards Renewable Portfolio Standard Transportation and Liquid Fuels Climate Policy Federal Stimulus (ARRA)

Energy Efficiency – California Building Standards – Title 24 Appliance Standards – Title 20 ~ 23 different appliances since 1977 Zero Net Energy Buildings Cool / White Roofs CPUC’s Energy Efficiency Strategic Plan - $3.1 billion over 3 years - $175 million for Zero Net Energy Buildings Building Standards – Title 24 Appliance Standards – Title 20 ~ 23 different appliances since 1977 Zero Net Energy Buildings Cool / White Roofs CPUC’s Energy Efficiency Strategic Plan - $3.1 billion over 3 years - $175 million for Zero Net Energy Buildings

Energy Efficiency – Federal 2007 Energy Bill - Reauthorized weatherization assistance - Established High-performance Green Building and Zero Net Energy Building initiatives at DOE - Increased standards for ~12 appliances - Requires 25-30% greater lighting efficiency by 2012 to 2014 Waxman-Markey  Building Standards: - 30% more efficient in % more efficient in 2016  Increases appliance efficiency standards for lighting, commercial furnaces, other appliances 2007 Energy Bill - Reauthorized weatherization assistance - Established High-performance Green Building and Zero Net Energy Building initiatives at DOE - Increased standards for ~12 appliances - Requires 25-30% greater lighting efficiency by 2012 to 2014 Waxman-Markey  Building Standards: - 30% more efficient in % more efficient in 2016  Increases appliance efficiency standards for lighting, commercial furnaces, other appliances

Renewable Portfolio Standard - California SB 1078 and SB 107 require 20% by 2010 Current statutes apply to IOUs, ESPs and Aggregators, not POUs WREGIS provides tracking system for WECC Governor’s Executive Order requires 33% by 2020 and includes POUs Implementation at CARB with final rule adopted by July 2010 SB 1078 and SB 107 require 20% by 2010 Current statutes apply to IOUs, ESPs and Aggregators, not POUs WREGIS provides tracking system for WECC Governor’s Executive Order requires 33% by 2020 and includes POUs Implementation at CARB with final rule adopted by July 2010

RPS - Federal  26 States have RPS’s, but currently no federal requirement  Waxman-Markey would require 20% by would allow portion to be met through energy efficiency - similar definitions of eligible resources - no federal preemption  ITC and PTC renewed  Renewable Tx bill ???

Vehicle Emissions / Clean Fuels - California Federal preemption on fuel economy (CAFÉ) Pavley Bill (AB 1493) passed in 2002, requires 30% reduction in GhGs from passenger vehicles by 2020; 12 states want to follow Auto companies sued to stop AB 1493 First ever Clean Air Act Waiver denied by US EPA under Bush Administration AB 118 Clean Fuels and Technology ~ $100 million/year to invest in clean vehicle fuels/technologies Federal preemption on fuel economy (CAFÉ) Pavley Bill (AB 1493) passed in 2002, requires 30% reduction in GhGs from passenger vehicles by 2020; 12 states want to follow Auto companies sued to stop AB 1493 First ever Clean Air Act Waiver denied by US EPA under Bush Administration AB 118 Clean Fuels and Technology ~ $100 million/year to invest in clean vehicle fuels/technologies

Vehicle Emissions / Clean Fuels - Federal  2007 Energy Bill raised fuel economy standards to 35 MPG by 2020  Requires 4x increase in biofuels  In May, 2009, President reached compromise with CA and Detroit to require 30% reduction in GhGs and 35.5 MPG by 2016

Climate Policy - California  Climate Solutions Act (AB 32) enacted in 2006  Return to 1990 levels by 2020 (approx. 30% reduction from Business as Usual)  Reduce emissions from electricity sector by ~ 50 MMT (out of 174 MMT)  Governor ‘s Executive Order calls for 80% reduction by 2050

Climate Policy - Federal  EPA proposed rule to regulate GhGs under Clean Air Act - would apply to largest emitters only  ACES (Waxman-Markey) requires economy-wide emissions reductions of: - 17% by % by % by Electricity generation covered in Natural gas distribution covered in Cost containment from trading, offsets, efficiency - Preempts state and regional trading programs from , but does not prevent states from enacting caps or other reduction measures

ARRA – Federal Stimulus Funding for California  $226 million for State Energy Program  $351 million for Energy Efficiency Block Grants  $35 million for Energy Star Rebates  $90 million for low-income energy assistance (LIHEAP)  $185 million for Weatherization  Competitive Grants and Tax Credits  Smart Grid and Transmission  Transportation Electrification