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Energy Efficiency (EE) & Renewable Energy (RE) in SIPs –
EPA’s Roadmap and a Tour of Several States
National Air Quality Conference
Angie Shatas, U.S. EPAFebruary 12, 2014
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Goals EE/RE – the lay of the land EPA’s Roadmap Touring a few states
What is EE/RE?
Energy Efficiency & Renewable Energy policies and programs
Require parties to use or fund EE/RE through regulation, statute or Public Utility Commission (PUC) order
Increase adoption of energy efficient practices End-user education and incentives (e.g., consumer awareness and rebate
programs) Increase production and use of RE sources (e.g., solar, wind,
biomass)
Renewable Portfolio Standards (RPS) and Energy Efficiency Resource Standards (EERS) can be state requirements that include any of the above 3
A current map of state EE/RE policies
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Energy Efficiency Resource Standards
Mandatory -
Voluntary -
24
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Last updated 8/22/2013
Mandatory - 24Voluntary - 6
Renewable Portfolio Standards
Mandatory -
Voluntary -
29
9
Last updated8/8/2013
Mandatory - 29Voluntary - 9
Elements for Success when incorporating EE/RE in SIPs
State-wide policies produce greater potential emission benefits
Dialogue between air and energy agenciesEnergy agencies provide prospective view of energy savings (for SIP submittal) and retrospective view (verification)
Quantification tools to determine if and to what extent an EE/RE initiative is affecting a particular nonattainment area
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Past Experiences with EE/RE in SIPs
2004 EE/RE guidance Feedback from states
The expected SIP credit was not worth the analysis effort. Documentation requirements were burdensome. Achievable emissions reductions were not clear. More detailed EPA guidance needed.
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EPA’s Roadmap Help states include EE/RE in SIPs Roadmap
Clarifies existing guidance Lays out four pathways for SIP credit Identifies quantification approaches
Resources/Tools Baseline analysis - Projected energy impacts of “on-
the-books” state EE/RE policies AVoided Emissions and geneRation Tool (AVERT) -
emissions quantification (translates EE/RE to emissions)
Frequently Asked Questions
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4 PathwaysBaseline Control
StrategyEmerging/
Voluntary MeasuresWeight of Evidence
Emerging Voluntary
Types of Projects For “on the books” policies; Best on a
state-wide or regional basis
For “on the way” policies
For locally-based activities; can be
bundled
For locally-based activities; can be
bundled
Any
SIP Credit Limit None None 6% of total required emission reductions (3% mobile + 6% other)
6% of total required emission reductions(3% mobile + 6% other)
No credit taken but do get emissions
benefits
Enforcement State enforceable ** but not Federally
enforceable
Federally enforceable against
the responsible party*
Enforceable against the source
Not enforceable against the source or implementing
party
None
If SIP reductions do not materialize
Air agency required to make up for
emission shortfall; CAA SIP call
Responsible party required to comply
State responsible for reductions
State responsible for reductions
SIP revision
Level of documentation
Significant analysis: show reductions in place for planning period; quantify
impacts; ensure no double counting
Significant analysis: show reductions are
permanent, enforceable, quantifiable,
surplus
Moderate:show reductions are
permanent, enforceable, quantifiable,
surplus
Moderate:show reductions are
permanent, enforceable, quantifiable,
surplus
Range: depends on level of analysis
* May be the load serving entity required to implement EE/RE.** If a municipality has initiated a measure, then the state may delegate responsibility to the municipality.
Baseline Analysis – EE/RE Policies in AEO 2013
•Federal appliance standards•State building codes•Direct federal spending on EE•Renewable portfolio standards
(RPS) – 29 states and DC as of Nov 2012EE/RE
Policies Explicitly
Included in AEO 2013
•Energy Efficiency Resource Standards (EERS) – 25 states
•Other EE program funding (in states without EERS policies) – 5 states
•Renewable Portfolio Standards (RPS) – 2 states between Dec ’12-Jun ’13 EE/RE
Policies NOT
Explicitly Included in AEO 2013
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Policy Assessment Criteria
Adopted in state legislation or Public Utility Commission (PUC) order (i.e. “on-the-books”)
Goal:
EPA and most states use the AEO 2013 energy policy assumptions in their SIP baseline emission projections.
Quantification –from Basic to Sophisticated
BasiceGRID region non-baseload
emission rates
SophisticatedEnergy Modeling
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End use demand
Energy Model
User-defined constraints
Technology data Fuel
data
Emission factors
Environmental regulations
Economic parameters
Intermediate
Historical Hourly
Emissions Rates
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AVERT EPA-developed quantification tool Addresses a key reason states have not implemented
previous EE/RE SIP guidance Simulates dispatch to predict hourly changes in generation
and emissions (NOx, SO2 and CO2) at electric generating units (EGUs) due to EE/RE Uses actual data reported to EPA’s Clean Air Markets Division
(CAMD) through Acid Rain Program
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WA
OR
CA
NV
UT
ID
MT
WY
CO
AZNM
TX
OK
KS
NE
SD
NDMN
WI
IA
MO
IL IN
MI
OH
KY
TN
AR
LA
MS AL GA
FL
SC
NC
VA
WV
PA
NY
MENH
VT
MA
RICT
NJ
DE
MD
State with active interest
State with interest
Current Engagement with States
State with Ozone Advance area(s)
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States on the way - Maryland Pathway: Weight of Evidence Ozone attainment SIP for moderate area (due July 2015) Participant in NESCAUM pilot project EE/RE policies and programs in place
Maryland Renewable Portfolio Standard EmPower Maryland energy conservation program Regional Greenhouse Gas Initiative (RGGI) Transit and smart growth initiatives Green building initiatives Electric vehicle initiatives
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States on the way – New York Pathway: Control SIP and timing: TBD Participant in NESCAUM pilot project EE/RE policies and programs in place
Combined Heat and Power – also for boiler MACT compliance NY-Sun Initiative – public/private partnership to increase solar capacity Build Smart NY – reduce average energy usage in NY public buildings
by 20% Renewable Portfolio Standard Energy Efficiency Resource Standard
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States on the way - Massachusetts Pathway: Baseline emissions projection SIP and timing: TBD Participant in NESCAUM pilot project EE/RE policies and programs in place
Renewable Portfolio Standard Energy Efficiency Resource Standard
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Other states on the way – North Carolina, Kentucky, Utah, Louisiana
North Carolina Looking at ozone reductions In place: Renewable Portfolio Standard
Kentucky In place: Voluntary energy efficiency targets through PUC orders
Utah Case study underway Looking at PM2.5 emission reductions In place: Renewable Portfolio Standard
Louisiana Ozone Advance areas In place: local energy efficiency projects
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For More Information:
Angie Shatas, EPA OAQPS919-541-5454 | [email protected]
Robyn DeYoung, EPA OAP202-343-9080 | [email protected]
http://www.epa.gov/airquality/eere/- EE/RE Roadmap manual- Frequently Asked Questions- AVERT