Clean Energy & Climate Changes Initiatives in Pennsylvania

Christina SimeoneDirector, PennFuture Energy Center

September 4, 2013

PennFuture – non-profit environmental advocacy organization working on air, land, water and energy issues impacting Pennsylvania (and beyond).

Pillars of PennFuture:◦ Legal◦ Legislative/Policy◦ Grassroots

Energy Center: ◦ “Champion Pennsylvania’s transition to a clean energy

economy”

About Us

The Pennsylvania Story

What PennFuture is Doing Now on Clean Energy

Plans for 2014

Overview of Presentation

Rendell Administration◦ Act 129 (2008)◦ Alternative Energy Investment Act (2008)◦ PA Climate Change Act (2008)◦ Biofuels Mandate and In-State Production Act

(2008)◦ Clean Vehicles Law (2006)◦ Growing Greener II (2005)◦ Alternative Energy Portfolio Standard (2004)

The PA Story: The Good Years

Dismantled the PA DEP Energy Office. Ended the Energy Management Office at PA

DGS that facilitated performance contracts. Ended PA government’s purchase of

renewable energy. Opposed efforts to increase PA’s solar

requirements. Denying the existence of human induced

climate change ETC…

The Current Administration

2014 Governor’s Election? New Leadership on Clean Energy?

Prepare for and leverage market opportunities.

Defend against efforts to undermine existing initiatives.

Work to strengthen existing policy and set the stage for new policy development.

Organize, coordinate and publicize.

What Next?

East Coast Clean Energy Hub Pennsylvania is geographically desirable

Concentration of Clean Energy Activity◦ Renewables, efficiency, alternative transportation

fuels

Leveraging Market Opportunities◦ Driven in part by existing

policies with accelerating compliance schedules

◦ Regional energy resources solar, wind, shale gas, biomass,

coal, alt fuels…

Biodiesel Production Plants (National Biodiesel Board, NBB Member Plants)

U.S. Shale Gas Plays (U.S. DOE EIA)Electric Vehicle Charging Stations (U.S. DOE Alt. Fuels Data Center)

Biomass Resources of the U.S. by County (NREL, Sept 2009)

SREC Market tanked◦ 2013 SRECs $10.00◦ 2009 SRECs ~ $300.00

Tier I REC Market is low◦ 2012 REC $2.00◦ 2009 REC $19.00

Expired ARRA and Reduced State Funding

Electric Competition and Renewables◦ Discouraging long term contracts

AEPS Attacks

Renewables (PA AEPS 18% by 2021)

Projected Renewable Energy Requirements in PJMBy 2026: 133,000 GWh of renewable energy, 13.5% of PJM annual net energy

(41 GW of wind and 11 GW of solar)20

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Wind and Solar Requirements in PJM (MW)

PJM Wind PJM Solar (DC)

Image Courtesy of PJM

Defend existing laws and policies◦ AEPS attacks◦ PUC proceedings in RMI, etc

Promote legislation to increase standards (though unlikely to pass in political climate).

Streamline solar zoning and permitting (DOE SunShot I)

Some PennFuture Renewable Energy Activities in 2013

Low gas prices + EPA regulations + Demand has not recovered =

Many coal plants shutting down + Previously underutilized gas capacity

turning on + Limited new power plant construction.

What is Happening in the Power Markets?

If a new plant is needed, what is most economic?◦ High efficiency gas, then wind.

Future uncertainty about the federal PTC extension impacting wind projects.

REC/SREC prices are too low and there is no additional state support.

Limited new development.

How Does this Impact Renewables?

Energy Efficiency

Philadelphia Benchmarking Law (May 17, 2012)◦ What: Requires commercial buildings over 50,000 sq ft of

indoor space to report energy and water usage information to the city, for public disclosure.

◦ When: 2012 data is due Oct 31, 2013, subsequent annual deadlines will be June 30. Data goes public Oct 2014

◦ How: EPA portfolio manager, automated utility data reporting

◦ Penalties: $300/for first 30 day period, $100/day thereafter.

In 2014, trying to bring this to Pittsburgh, along with voluntary disclosure for residential sector.

Data Disclosure (Benchmarking)

Act 1 of 2011◦ Altered PA’s triennial review process for building and energy codes,

effectively giving the UCC Review and Advisory Council (RAC) veto power over code adoption.

◦ Prior to this, building and energy codes were automatically adopted by reference.

PA is currently operating under 2009 codes and RAC rejected 2012 update.◦ RAC failed to follow the analysis procedures required by statute.

Next steps?◦ Legislative fix?◦ How will 2015 code update impact PA and building industry if we are still

stuck in 2009?◦ www.builditsafe.org

Energy Codes: Will PA Keep Up?

PA’s GESA office was closed in 2011 ◦ Program has been suspended ever since◦ Program guidance changes proposed in Dec 2011, nothing has

been publicly finalized, yet. ◦ Program to re-open in pilot phase sometime soon, incorporating

a new business model.

School and Municipal budget cutbacks have been significant in PA◦ Increased demand for energy and non-energy capital upgrades?

Compelling need to promote public-private sector partnerships that facilitate economic development, job creation and cost savings.

Energy Savings Performance Contracting (ESPC)

PennFuture, Local Development Districts across the state, Energy Savings Coalition, and interested ESCOs.

Statewide education and outreach program◦ 3-Step educational curriculum for schools and municipalities.◦ Streamline: Start-to-finish procurement templates and guidance.◦ De-mystify the process: consumer education materials, decision-maker

briefing modules, importance of roles and responsibilities, etc.◦ Focus on consumer protection◦ Resources: contractor qualification criteria, 3rd party facilitators criteria, and

peer-to-peer mentors.◦ Small project finance component too!

www.pennsave.org

NAESCO & ESC National Support

Federal Grant Application pending

PennSave Initiative

Act 129 of 2008◦ Required electric distribution companies (EDCs) to reduce

consumption load by 3% and peak load by 4.5%, by 2013◦ Accomplish this by investing in consumer energy efficiency,

conservation and peak demand reduction programs.◦ PUC can extend the program if proven to be cost-effective.

Early 2012◦ PennFuture petitioned PUC to begin extension proceedings

prior to statutory deadline.◦ PUC was very committed to the program, due to

consumer savings.◦ PennFuture later withdrew petition.

Energy Efficiency Requirements for Electric Utilities

August 2012 – PUC adopts final order extending efficiency and conservation requirements at a statewide average of 2.3% by 2016◦ Proceeding on extension of peak demand program is forthcoming.

Several PA EDC’s challenge PUC’s order on various grounds

Sept 27, 2012 – PUC rejects PECO/FE/PPL petition for reconsideration.

December 5, 2012 – PUC rejects requests by PECO/FE to lower energy savings goals.

Feb 14, 2013 – PUC rejects PPL request to preserve the right to challenge energy savings goals in the future.

PennFuture was involved in every step of these proceedings, fighting to protect, extend and preserve Act 129 requirements.

Act 129 Extension

PennFuture loves Demand Response!

However, 18% of PJM’s DR market is backup generation and 93% of that is diesel powered, and likely have no pollution controls.

Rep. Chris Ross is sponsoring a bill to require these engines to install pollution controls as a condition of DR market participation.

Demand Response and Dirty Diesel

PennFuture intervened in the merger case between Equitable and Peoples natural gas distribution companies.◦ Goal: establish an energy efficiency program for low

and non-low income customers in residential, commercial and industrial classes.

Ongoing oversight of Act 129 implementation◦ Examples: 2014 technical reference manual updates,

demand response program, First Energy settlement.

Monitor retail markets proceeding

Ongoing Activities with the PUC

Alternative Fuels Incentive Grant (AFIG) Program◦ $6 million annually for alternative fuels◦ Avoided proposed elimination in Governor’s

budget◦ Rebates (Jan 26, 2013) – PHEV, EV, NGV, propane,

hydrogen, electric scooter, etc.

Defend against repeated efforts to undermine or eliminate this program.

Alternative Fuels

Very political issue in Pennsylvania◦ Administration doesn’t acknowledge the existence

of human-caused climate change

Is gas part of the solution?◦ PA has not played a leadership role in addressing

the methane leakage question.

Climate Change Advisory Committee◦ Resources to support this initiative have been

significantly reduced.

Climate Change

Impacts report due April 2012, was provided to CCAC in July 2013. Still hasn’t been released.

Climate action plan was due October 2012, DEP is behind schedule.◦ Effort is understaffed in both man power and

technical expertise.◦ At what point is DEP going to obviate CCAC input?

CCAC

Develop a comprehensive clean energy plan for PA.◦ White papers◦ Clean energy business roundtables◦ Wind, Solar, Energy Efficiency, Alternative

Transportation

Outreach to all candidates and the incumbent.

What is the Plan for 2014

Builditsafe.org◦ Continue to promote solutions to PA broken code adoption process.

PennSave.org◦ Engage in statewide education efforts on performance contracting,

focusing on school districts and municipalities.

Pittsburgh Benchmarking

Dirty Diesel Demand Response

Act 129 and AEPS implementation oversight

Much, much more!!!

Additional Initiatives

Questions?