Martha Krebs, Ph.D. Deputy Director for R&D California Energy Commission

1. California’sPublic Interest Energy ResearchProgram 2nd International Conference on Integration of Renewable and Distributed Energy Resources Napa, CADecember 4-8, 2006 Martha Krebs, Ph.D. Deputy Director for R&D California Energy Commission

2. CEC Public Interest Energy Research Program • IOU Ratepayer-funded program launched in 1997 • Addresses electricity, natural gas, and transportation • $80M annual budget; nearly $400M in projects • A leader in no/low-carbon technology and global climate change research programs • Efficiency and Demand Response • Renewables • Clean Fossil Fuel Generation – Distributed Generation, Combined Heat & Power • Transportation • Energy Systems Research – Transmission and Distribution, Grid Interconnection • Environmental Impacts – Air, Water, Climate, Communities 􀂃

3. 2006 Legislation Provides New Goals and New Urgency for California Energy Sectors • AB 32 – Aggressive Reduction of Greenhouse Gases by 2020 • SB 1368 – GHG Emissions standards for POUs • AB 2021 – Energy Efficiency for POUs • AB 2160 – Green Building Acquisition Financing for State Facilities • SB107 – Accelerated RPS Goals • SB1 – Renewables Goals for New and Existing Residential and Commercial Structures • AB 2778 – Self-Generation Incentive Program for Fuel Cells and Wind • SB 1250 – PIER and Renewables Incentive Programs Reauthorized

4. SB 1250 Goals for PIER Are Solution- Focused General Goal • “Develop and help bring to market, energy technologies that provide increased environmental benefits, greater system reliability, and lower system costs” Specific Goals • Develop and help bring to market • “Advanced transportation technologies that reduce air pollution and greenhouse gas emissions beyond applicable standards, and that benefit electricity and natural gas ratepayers. • “Increased energy efficiency in buildings, appliances, lighting, and other applications beyond applicable standards, and that benefit electric utility customers. • “Advanced electricity generation technologies that exceed applicable standards to increase reductions in greenhouse gas emissions from electricity generation, and that benefit electric utility customers. • “Advanced electricity technologies that reduce or eliminate consumption of water or other finite resources, increase use of renewable energy resources, or improve transmission or distribution of electricity generated from renewable energy resources.”

5. Integrated PIER process for Technology/Knowledge Transfer Technology/Knowledge Transfer Researchers Develop technology or create new knowledge (e.g. labs, universities) Implementers* Act on research results Technology Knowledge End-users Ultimate beneficiaries of PIER developed technology and knowledge (e.g. customers, California citizens, associations) Impact Economic Energy Environmental Transfer Transfer Transfer PIER * Technology Implementers– Embed research results or exploit knowledge gained through research to provide new products, services, or processes (e.g. utilities, equipment suppliers, ESCOs). Knowledge Implementers – Use the research to inform policy decisions including legislation, rules, regulations, standards, incentives, business practices or institutional barriers to technology adoption (e.g., regulators, legislators, NGOs, or other stakeholders impacted by policy decisions)

6. Accomplishment-Renewable Distributed Generation Valley Fig Growers Food Processing Wastewater Biogas To Electricity (PIR-02-005) • Problems • The California food industry pays high cost for the wastewater discharged. • VFG pays 17¢/lb Biological Oxygen Demand (BOD) and 19¢/lb Suspended Solids (SS) discharged to the Fresno city. • Project Goal • Create an economically feasible solution to energy and environmental issues facing the food processors. • Results Achieved • Installed a covered lagoon that reduces BOD and SS by over 90% and generates 25 to 65 kW of electricity for use on-site. • Save an annual cost of $100,000 that VFG currently pays to the Fresno city • Reduce greenhouse gas (methane) emission at 148 tons per year. • Awards Received • A Certificate from the City of Fresno in recognition of the merits of biogas digester installed. • An Honor Award in CELSOC’s (Consulting Engineers and Land Surveyors of California) 2007 Engineering Excellence Award Competition. Covered Lagoon Ingersoll Rand MicroTurbine

7. Accomplishment – New Integrated T&D Methodology for DER Municipal Utility Pilot- Integrating transmission and distribution in a single dataset is practical and adds new insights for utility planners Research identified the following: • Ideal location, size, and dispatch of beneficial DER projects for a given network can be determined. • Network performance (real losses, reactive consumption, voltage profile stability and load-serving capability ) can be improved through recontrols and targeted deployment of DER • Local measures have network-wide impacts. • Nonwire solutions can yield significant gains in efficiency and further enhance the performance of a power delivery system Next Steps: In partnership with Southern California Edison, the methodology will be extended to a system 100x bigger and more constrained. The model will be further validated by field measurement.

8. Modular Combined Cooling Heating & Power (CCHP) System • The Promise of CCHP • Increased efficiency of industrial processes and commercial facilities. • Conservation of energy resources. • Reduced emissions of pollutants and CO2. • The Problem • Most CCHP systems are unique and site-built, resulting in • High engineering, construction, and maintenance costs. • Mismatched components. • Less than optimal efficiency. • PIER’s Solution • An engineered, factory-packaged, CCHP system optimized for performance, reliability, and easy maintenance. • Clean 260 kW reciprocating engine-generator, absorption chiller, and balance of system in one module. • Compliant with CARB 2007 emissions standards. • Absorption chiller design optimized for engine waste heat. • Lower capital, operation, and maintenance costs. • Estimated 35% cost reduction from site-built systems.

9. Value of Partnerships PIER actively engages others in the definition, development, funding, evaluation and market adoption of technology research. We welcome your comments and participation. For more information about working with PIER: Martha Krebs at mkrebs@energy.state.ca.us PIER Program at www.energy.ca.gov Referenced Documents available on CEC Website: • Public Interest Energy Research Program 2007-2011 Electricity Research Investment Plan • Integrated Energy Policy Report 2005 • Energy Action Plan II