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Energy Efficiency in Washington State

Energy Efficiency in Washington State

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Energy Efficiency in Washington State

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  1. Energy Efficiencyin Washington State Speaker Pro Tem Jeff Morris

  2. Examples of Energy Efficiency Policy Improve energy efficiency standards. • One of the first 10 states to adopt energy efficiency laws on 10 appliances for in-state use that could conserve some 90 mWh of electricity by 2020, enough to power over 90,000 homes.

  3. Examples of Energy Efficiency Policy ESHB 1062 2005 - Created minimum efficiency standards and testing procedures for 12 categories of electrical products: • Automatic commercial ice cube machines • Commercial clothes washers • Commercial pre-rinse spray valves • Commercial refrigerators and freezers • Illuminated exit signs • Low-voltage dry-type distribution transformers • Metal halide lamp fixtures • Single-voltage AC to DC power supplies • Incandescent reflector lamps • Torchieres • Traffic signal modules • Commercial space heaters

  4. Examples of Energy Efficiency Policy ESHB 1004 (2009): Created minimum efficiency standards and testing procedures for 6 categories of electrical products: • Wine chillers • Hot water dispensers and mini-tank electric water heaters • Bottle-type water dispensers and point-of-use water dispensers • Pool heaters, pool pump motors, and portable electric spas • Tub spout diverters and showerhead-tub spout diverters • Commercial hot food holding cabinets.

  5. Examples of Energy Efficiency Policy Building Energy Codes • Buildings account for approximately one third of energy use and carbon emissions, making them an important target for state energy efficiency policies. The time of design and construction represents the greatest opportunity to build efficiency into the total building. Builders typically bear the capital cost of energy efficiency improvements, but homeowners and tenants see the benefits through lower energy bills. Because most builders build speculatively, they have no feedback loop from the occupant to tell them to build in efficiency features.

  6. Examples of Energy Efficiency Policy Building Energy Codes • Washington was one of the early adopters nationwide by creating their own state energy code in 1977. Its state energy code emerged from Model Conservation Standards developed in the Northwest region during the 1980s under the Northwest Power Planning Act (Act), which Congress passed in 1980 to require consideration of conservation as the preferred method to accommodate load growth in the Bonneville Power Administration Region. • According to the ACEE 2008 Scorecard, Washington received full marks (8 out of 8) for its State Building Energy Codes, tying in first place with California and Oregon, creating a strong "West Coast" standard for state building energy codes.

  7. Examples of Energy Efficiency Policy Building Energy Codes E2SSB 5854 (2009): • Requires the State Building Code Council to adopt energy codes for new homes and buildings that will gradually move towards the state achieving a 70 percent reduction in energy use for such buildings by 2031. If economic, technical, or process factors may interfere with achieving this reduction target, the Council must report its findings to the Legislature. • Requires CTED to develop a strategic plan for enhancing energy efficiency and reducing greenhouse gases in homes, buildings and neighborhoods. In doing so must identify barriers to achieving net zero energy use and ways to overcome these barriers in future updates to the State Energy Code.

  8. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs • Washington received the highest score possible -- 5/5 -- from the ACEE for its electricity energy efficiency program spending in 2006. As a percent of total utility revenues, Washington ranked second overall (behind Vermont) by spending 2.2 percent of total utility revenues on electricity energy efficiency programs (not including weatherization program funding).

  9. Integrated Resource Planning key to a Region’s Future What is an Integrated resource plan? • Integrated Resource Planning is an assessment of demand-side and supply-side resources, evaluated under consistent assumptions, to produce a cost-effective resource mix that meets expected short-term and long-term demand. The goals of the IRP are to produce a best-cost portfolio of supply side and demand side management alternatives to meet customer requirements of reliability under given constraints, to reduce costs for customers, to help diversify energy supply mix, and to improve modeling of demand, supply, and conservation.

  10. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs • ESHB 1010 (2006) requires all investor-owned and consumer-owned electric utilities (with more than 25,000 customers) to develop detailed integrated resource plans (IRPs) that describe the mix of generating resources and conservation and efficiency resources that will meet current and projected needs of the utility at the lowest reasonable cost. These plans must contain a number of elements, including: (1) demand forecasts for at least the next 10 years; (2) assessments of commercially available conservation and efficiency resources; (3) assessments of commercially available utility scale renewable and nonrenewable generating technologies; (4) comparative evaluation of renewable and nonrenewable generating resources; (5) integration of the demand forecasts and resource evaluations into a long-range assessment describing the mix of supply side generating resources and conservation and efficiency resources; and (6) a short-term plan identifying the specific actions to be taken by the utility consistent with their long-range IRP.

  11. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs • ESHB 1010 (2006) continued. All other utilities in the state, including those utilities that receive essentially all of their power from Bonneville Power Administration (BPA), must file either an IRP or a less detailed "resource plan" (RP). If such a utility elects to file an RP, it must: (1) estimate loads for the next 5 and 10 years; (2) enumerate the resources that will be maintained and/or acquired to serve those loads; and (3) explain, if the resources chosen are not renewable resources or conservation and efficiency resources, why such a decision was made. • http://www.cted.wa.gov/site/1140/default.aspx

  12. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs Some regional IRP examples include:  • Avista: Key energy efficiency highlights (2007 IRP): • The Preferred Resource Strategy (PRS) includes 350 MW of CCCT, 300 MW of wind, 35 MW of other Renewables, and 87 MW of conservation between 2007 and 2017. •  Conservation acquisition is approximately 25 percent higher than in its 2005 IRP. • http://www.avistautilities.com/inside/resources/irp/electric/Documents/2007AvistaIRP.Pdf • http://www.avistautilities.com/inside/resources/irp/electric/Documents/2007AvistaIRPSupplemental.pdf

  13. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs Some regional IRP examples include:  • PSE: Key energy efficiency highlights (2007 IRP): • It is estimated that there is 702 aMW of technically feasible electric energy efficiency potential by the end of the 20-year planning horizon in 2027. • Approximately 434 aMW of these resources are cost-effective with an average levelized per unit cost of five (5) cents per kWh. • Across all sectors, 341 aMW (nearly 80% of the economic potential) are deemed reasonably achievable. •  If fully deployed, the identified achievable potentials amount to nearly 10% of PSE’s forecast load in 2027, and 30% of the projected load growth over the 20-year planning period. • http://www.pse.com/energyEnvironment/energysupply/Pages/energyResourcePlanning.aspx

  14. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs • Washington’s The Department of General Administration (GA) offers energy savings performance contracting to enable capital-strapped state agencies, school districts, and municipalities to tap various outside capital sources for energy upgrades. According to GA, since 1986 over 100 projects have utilized energy savings performance contracting to install energy efficiency measures, adding up to approximately $152,895,053 in total facility improvements to date, with a total avoided cost since 1986 of approximately $66,310,408. • http://www.ga.wa.gov/EAS/epc/espc.htm • http://www.ga.wa.gov/EAS/epc/convinced.htm

  15. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs Recent Legislative Activity: • SHB 1895 (2005):Authorizes aggregated energy audits and conservation measures for municipalities. Municipalities may conduct energy audits and implement cost-effective energy conservation measures among multiple government agencies. • ESSB 5509 (2005): Provides that all major facility projects funded in the state capital budget, or projects financed through a financing contract as defined in RCW 39.94.020, must be designed, constructed and certified to at least meet the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) silver standard. This requirement applies to any entity, including public agencies and public school districts.

  16. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs Recent Legislative Activity Continued: • E2SSB 5854 (2009):Requires qualifying public agencies to create an energy benchmark and report the performance rating for each reporting public facility. GA must establish a state Portfolio Manager Master Account to provide shared reporting for all public facilities. • By July 1, 2011, reporting public facilities with a performance rating score below 50 (average) must conduct a preliminary energy audit. An investment grade audit must be completed by July 1, 2013 if potential cost-effective energy conservation measures are identified. Any identified cost-effective energy conservation measures must be implemented by July 1, 2016.  

  17. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs Recent Legislative Activity Continued: • State agencies may not enter into a new lease or lease renewal for a building with a performance rating score below 75 unless a preliminary audit has been conducted within the last 2 years, and the owner agrees to perform an investment grade audit and implement cost-effective energy conservation measures within the first 2 years of the lease agreement. OFM may waive these requirements if it determines compliance is not cost-effective or feasible. •  GA must review the cost and delivery of agency programs to determine the viability of relocating from buildings leased by the state with an energy performance score below 50. • http://www.cted.wa.gov/site/1140/default.aspx

  18. Examples of Energy Efficiency Policy Electric Energy Efficiency Programs Recent Legislative Activity Continued: • HB 1007 2009 State Energy Efficiency and Renewable Energy Improvement Loans. The Commission must make available secured loans to certified applicants for the purpose of providing financing for all or part of the project costs of any energy efficiency improvement or renewable energy improvement. The period of such loans is 10 years for energy efficiency improvements and 25 years for renewable energy improvements. The Commission must periodically issue Sustainable Energy Trust bonds for the purpose of financing the project costs of energy efficiency improvements and renewable energy improvements

  19. Utilities Assumed Relatively Modest Base-Case Carbon Emission Price Projections Levelized Carbon Emission Price Projections (2010-2030)

  20. Global GHG abatement cost curve beyond business-as-usual– 2030 McKinsey

  21. Firming the Challenge!

  22. WECC RPS Mandates

  23. Renewables….WECC wide: Goals vs. Current

  24. Legislative Issues Going Forward • Changing RPS law in Washington • Standard offer(feed-in tariff) • Risk of market spikes caused by uncoordinated mandates • Transmission critical for immediate mandates • Boutique standards for RPS mandates in Region • What Climate Change Policy? Cap and Trade or Carbon Tax? • Pancaking of climate change taxes • Credit situation not forecasted in projections. • Lack of regional Strategy on new/clean energy

  25. Thank you!