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Clean and Diversified Energy Initiative: Recommendations for Energy Efficiency and Renewable Energy Implementation

This briefing outlines the goals and recommendations of the Clean and Diversified Energy Advisory Committee in promoting renewable energy, energy efficiency, and clean energy technologies within the Western energy landscape. The initiative aims to increase clean energy capacity, achieve electricity savings, and enhance the resilience of the energy system in response to environmental challenges. Specific recommendations cover energy efficiency, building energy codes, appliance standards, and regional initiatives. The focus is on identifying viable policy mechanisms, promoting incentive-based approaches, and addressing technical and financial aspects for sustainable energy development.

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Clean and Diversified Energy Initiative: Recommendations for Energy Efficiency and Renewable Energy Implementation

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  1. WGA Clean and Diversified Energy Advisory Committee Briefing Brian Horii Energy and Environmental Economics, Inc 415-391-5100

  2. Background • Clean and Diversified Energy Initiative launched in June 2004 • “Identifying ways to increase the contribution of renewable energy, energy efficiency, and clean energy technologies within the context of the overall energy needs of the West.” • Transportation, buildings, electricity, and other needs

  3. Goals • 30,000 more MW of clean energy by 2015 (EE, solar, wind, geothermal, biomass, clean coal, advanced natural gas) • 20% electricity savings by 2020, relative to reference case • Ability to meet transmission needs of the West for the next 25 years. • Better position Western energy system to respond to new environmental challenges

  4. Clean and Diversified Energy Advisory Committee • To identify technically and financially viable policy mechanisms, stressing non-mandatory, incentive-based approaches • Formed task forces for specific options such as energy efficiency • Consider price, reliability, and the mitigation of environmental impacts of all recommendations • Develop energy efficiency recommendations that take into account all types of energy used in buildings, not just electricity • Identified cost-effective energy efficiency that can reduce annual load growth in the West from 2% to 0.5% .

  5. Task Force Recommendations – State Level • Electricity • Require utilities to integrate cost effective DSM into resource planning and procurement • Dedicate at least 2% of revenues to energy efficiency (if cost effective (CE)) • Establish minimum savings targets • Recommend 3-5% of projected sales in 2010 (if CE) • Recommend 10-15% of projected sales in 2020 (if CE) • Decouple • Add incentives for implementing CE DSM programs

  6. Task Force – Gas • Encourage or require utilities to • integrate EE into resource planning and procurement • pursue EE whenever it is the lowest cost resource option • Recommend investing 1.5-2% of revenues on EE • Recommend 0.5-1.0% savings per year (if CE) • Decouple, add incentives for implementing CE DSM programs

  7. Task Force – Building Energy Codes • Adopt the 2004 International Energy Conservation Cost, and consider features of CA Title-24 • Update codes frequently (3-yr cycle suggested) • Implement code training and technical assistance for architects, builders and local code inspectors. • Establish a “reach code” for state-owned buildings to exceed the standards • Establish a regional building code collaborative

  8. Others • Adopt minimum efficiency standards for appliances not covered by federal standards • Establish goals for reducing energy intensity by 2%/yr or greater in state buildings • Consider providing tax incentives • Decouple and adopt inverted block rates for residential electricity and consider for natural gas • Continue and expand education and training • Initiate, continue and expand R&D

  9. Task Force – Regional Initiatives • Create regional market-transformation organizations • Promote energy star, train the building sector, develop targets and standards, promote best practices, and perform R&D. • Building energy code collaborative • Coordinated appliance standards advocacy • Quantify air emission benefits of EE • Inclusion of EE in transmission planning • Develop a working group to help overcome the barriers to implementing EE in commercial and public buildings.

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