[SUMMARY REPORT]{.underline}

**[Energy Analysis Forum]{.underline}**

**"Analysis Related to the Role of Renewable Energy Technologies in
Air-Quality Improvement"**

**\
**Golden, Colorado (May 29-30, 2002)

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# TABLE OF CONTENTS

### Executive Summary 1

**Preface 3**

**Forum Introduction and Overview Session 3**

**Keynote Speakers 4**

"Air-Quality Challenges and the Role of Energy," Jack Edwardson, EPA 4

"Role of Renewable Energy in Mitigating Air Pollutions and Greenhouse
Gas Emissions," Abe Haspel, DOE 5

**State and Local Air-Quality Issues/Challenges for Renewables\
(panel discussion) 6**

**Current Approaches and Additional Needs for Analysis of the Potential
Role of Renewable Energy Technologies in Meeting Air-Quality Goals 8**

Session 1: Renewable Energy Technologies 8

Session 2: Analytic Tools for Integration of Air-Quality and Energy
Management 10

**Regional and State Experiences Regarding Use of Renewable Energy to
Achieve Air-Quality Goals 12**

Panel Discussion: Regional Ozone 12

Panel Discussion: Regional Haze 13

**Breakout Sessions 14**

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# Executive Summary

The 2002 Energy Analysis Forum focused on analysis related to the role
of renewables in improving air quality. The forum (sponsored by the
National Renewable Energy Laboratory, the U.S. Department of Energy, and
the U.S. Environmental Protection Agency) attracted nearly 100 people to
Colorado, including representatives from state and local energy and
environmental offices, the energy industry, and energy analysts.

Two "key questions" were used as catalysts for the event:

-   What are the information or analysis barriers to increasing the use
    of renewable energy in air-quality policies, programs, and plans?

-   What analyses, tools, and technical assistance should be conducted
    or developed in the short and long term to begin to address these
    barriers?

The forum was organized into sessions highlighting:

-   Overviews on the potential role of renewables in improving air
    quality

-   Current approaches and additional needs for analysis of the
    potential role of renewable energy technologies in meeting
    air-quality goals

-   Panel discussions on regional and state experiences regarding use of
    renewable energy to achieve air-quality goals, and

-   Working Group sessions to identify and discuss "key issues" related
    to renewables and air-quality goals

## Analytic Needs Assessment and Recommendations

Through individual presentations, panel discussions, and smaller
breakout groups, forum participants brought up myriad issues, as well as
recommendations on how to address some of them.

Overall, the group agreed on three general areas needing attention:

-   Integrating air-quality and energy planning, as well as encouraging
    collaborations

-   Providing decision makers with customized and credible information
    to influence policy

-   Communicating information to government agencies, private
    industries, and the public.

NREL and DOE are using this information as they plan and develop their
future analytic agenda. With the areas listed above as a starting point,
the forum leaders have identified the following actions for priority
consideration:

1.  Provide strong support for the Renewable Energy Modeling Summit
    Series, which EPA is planning. These meetings will focus on improved
    representation of renewable energy technologies in models that
    estimate environmental effects of energy systems.

2.  Lead development of a framework for conducting local and regional
    case studies of renewable energy benefits. Seek inputs and
    collaboration from forum participants in this endeavor.

3.  Support EPA's plans to provide technical assistance to states
    through the State and Local Climate Change Program.

4.  Encourage DOE support for states to develop and implement integrated
    energy-environment plans

NREL's forum leaders also identified other possible actions for
additional follow-up:

1.  In cooperation with state officials, develop and provide training
    courses on renewable energy analysis for state air quality and
    energy analysts.

2.  Expand existing information resources (through web-based
    communications and other media) to provide analytic information
    tailored to state audiences

NREL is taking initial steps in pursuit of these actions. For further
information on these follow-up actions, please contact Laura Vimmerstedt
at 303-384-7346 or <laura_vimmerstedt@nrel.gov>. For questions regarding
the full Forum Report (which follows), please contact Michelle Kubik at
303-275-3658 or <michelle_kubik@nrel.gov>.

# Preface 

The 2002 Energy Analysis Forum focused on analysis related to the role
of renewables in improving air quality. The forum (sponsored by the
National Renewable Energy Laboratory, the U.S. Department of Energy, and
the U.S. Environmental Protection Agency) attracted nearly 100 people to
Colorado, including representatives from state and local energy and
environmental offices, the energy industry, and energy analysts.

This was the second in a series of energy analysis forums initiated by
NREL to address analysis related to the role of renewables and energy
efficiency in current and future energy systems. The forum was organized
into sessions addressing:

-   Overviews on the potential role of renewables in improving air
    quality

-   Current approaches and additional needs for analysis of the
    potential role of renewable energy technologies in meeting
    air-quality goals

-   Panel discussions on regional and state experiences regarding use of
    renewable energy to achieve air-quality goals, and

-   Working Group sessions to identify and discuss "key issues" related
    to renewables and air-quality goals

The cross-disciplinary interactions of these diverse stakeholder groups
helped us share knowledge on issues and approaches to improving air
quality, on the potential roles of renewables in these efforts, and on
analyses designed to help understand alternate approaches and their
costs and benefits. The fact that we had representation from a diverse
group of states -- as well as various levels of government, business,
and private interests -- will make the gleaned information even more
beneficial to our work.

This report provides a brief overview of the forum, including outlines
from the presentations and panel discussions, a summary of analytic
needs developed during the smaller breakout sessions, and other key
conclusions.

# Forum Introduction and Overview Session 

In an effort to provide a central focus for the entire forum, we posed
two "key questions" at the beginning of the event:

-   What are the information or analysis barriers to increasing the use
    of renewable energy in air-quality policies, programs, and plans?

-   What analyses, tools, and technical assistance should be conducted
    or developed in the short and long term to begin to address these
    barriers?

We asked presenters and panelists to keep these questions in mind during
their discussions, and we asked that the working groups use these
questions as a starting point in their breakout-session discussions.

As cosponsors of the forum, both the Department of Energy (DOE) and the
Environmental Protection Agency (EPA) kicked off the first day with
keynote speeches providing their overviews of the role of renewables in
improving air quality and related analytic issues.

## "Air-Quality Challenges and the Role of Energy" -- Jack Edwardson, EPA

Jack Edwardson, the associate director of the Air Quality Strategies and
Standards Division Office of Air Quality Planning and Standards at the
EPA, outlined the agency's main areas of interest on this topic.
According to Edwardson, they include:

-   The importance of the PM2.5 standard [^1] and the effects of
    attaining it.

-   The implementation of the revised National Ambient Air Quality
    Standards (NAAQS)

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-   The Clear Skies Initiative

-   Renewables and energy efficiency for the long term

Key points made by Mr. Edwardson include:

-   EPA research shows that the health effects of ozone, including
    respiratory system irritation, chronic lung diseases, etc., are
    extensive. The agency's studies of the effects of fine particles
    indicate that they may be even more serious and can lead to
    emergency room visits and premature death.

-   Analysis also has shown that transport is a major issue, and PM2.5
    nonattainment occurs primarily in densely populated areas.

-   We also know that sulfate is the biggest component in the East and
    that electric power generation is a major source of emissions of PM
    precursors sulfur dioxide and nitrogen oxides.

So, what do we do to reduce emissions? We need national, regional, and
local strategies to combat these pollutants.

-   On the national level, the Clear Skies Initiative is a major
    priority. This market-based program for power plants, proposed by
    the Bush Administration in February 2002, sets mandatory caps on
    SO2, NOx, and mercury.

-   The EPA is currently developing the technical basis for a possible
    Interstate Transport Rule. With a plan to propose the rule in
    2005/2006, the agency is looking at modeling approaches, updating
    inventories, and determining the appropriate technical analyses.

-   The EPA is also encouraging more approaches that involve energy
    efficiency and renewable energy, such as a state implementation plan
    (SIP) credit for energy efficiency (currently under discussion in
    Texas) and an "Innovative Measures Policy" that establishes a
    mechanism to provide credit for new approaches.

-   The EPA is ready to implement the PM2.5 and eight-hour ozone
    standards, but it needs a mix of national, regional, and local
    measures to support its efforts. Additional analysis is needed to
    establish and document the severity of the health effects of PM2.5
    nonattainment. Additional analysis also can clarify the role of
    policies like the Clear Skies Initiative in reducing power plant
    emissions.

**"Role of Renewable Energy in Mitigating Air Pollution and Greenhouse
Gas Emissions" -- Abe Haspel, DOE**

Abe Haspel, deputy assistant secretary for Planning, Budget, and
Management of the Office of Energy Efficiency and Renewable Energy
(EERE), outlined the DOE's view on how renewable energy can help
mitigate air pollution and greenhouse gas emissions.

Haspel emphasized that renewable energy is central to meeting goals for
pollution reduction, but that analysis is key to successful
identification of air-energy synergies.

Key points made by Mr. Haspel include:

-   Powerful, persuasive analyses are needed to demonstrate to
    government officials the dangers of uncheck carbon emissions. He
    pointed out that stabilizing concentrations of CO2 in the atmosphere
    require reducing emissions to essentially zero. He emphasized that
    our analysis efforts need to focus on measuring and monitoring the
    effects of the main sources of greenhouse gas emissions -- energy
    use in the transportation, buildings, and industrial sectors -- and
    how they can be reduced to net-zero levels.

-   Where does renewable energy come in? Renewable energy sources
    currently contribute 8 percent of U.S. energy, consisting primarily
    of hydroelectric, biomass, geothermal, wind, and solar. The good
    news is that the research that's being done on renewables is
    reducing the cost.

-   Decisions about the use of renewable energy are made in the context
    of broader societal decisions about interlinked energy choices,
    environmental goals (including those for air quality and climate
    change), economic development objectives, and other goals such as
    security. The challenge for analysis is to develop an understanding
    of the integrated effects -- and cost and benefits -- of these
    various factors and the programs and policies adopted to address
    them.

-   Haspel pointed out that for every five molecules of carbon dioxide
    that go into the air, one stays permanently. To achieve a goal of
    stabilization, global carbon dioxide emissions eventually must
    approach zero. Analysis of alternative visions of future carbon
    emissions must focus on the main goal of stabilizing the
    concentration of carbon dioxide, which is dynamic, long-term, and a
    global problem.

-   Haspel emphasized that most climate change analysis assumes an
    idealized world -- all countries participate, we have perfect
    markets and perfect knowledge, and there are no barriers to
    technology transfer. However, in the real world, there is no limit
    to how inefficient the implementation of policies can be, and costs
    could be much higher than estimated.

-   The DOE is working toward a strategic analytic agenda, and sees the
    forum as a way to help establish future analytic activities and
    develop related tools and technical assistance.

-   Collaborations are key, strengthening relationships between the DOE,
    state and local governments, the EPA, and others to promote use of
    renewable energy to reduce air pollution.

**[State and Local Air-Quality Issues/Challenges for
Renewables]{.underline}**

A panel of state energy and environmental officials focused on the
air-quality issues and challenges for renewable energy. They focused on
topics such as nonattainment areas and barriers to achieving air-quality
goals, and they shared information on their individual appproaches to
policies and programs for improving air quality. Participants included:

-   **Michal Moore (chair)**, NREL

-   **Mike Nazemi**, South Coast Air Quality Management District

-   **Brian Henderson**, New York State Energy Research and Development
    Authority

-   **Dan Eden**, Texas Natural Resource Conservation Commission

-   **Steve Pratt**, EPA

**Key points from the panel:**

***Barriers***

-   Key barriers to the use of renewables to improve air quality include
    renewables prices, lack of infrastructure, inadequate understanding
    of their value, and education.

-   New power plants continue to use more traditional sources, making
    the transition toward renewable sources down the line more
    difficult.

-   There are repeated failures to meet federal ozone standards in some
    urban areas (e.g. Houston, Dallas, Port Arthur), which will require
    long-term legislative action to combat the problem.

-   Some of Texas' challenges include how best to implement the state's
    goals for using energy efficiency and renewable energy in the state
    implementation plan (SIP) for attainment of air-quality standards.

***What's being done***

-   In an ongoing effort to improve air quality, the EPA has required
    states to maintain compliance with the National Ambient Air Quality
    Standards (NAAQS) for six criteria pollutants: ground-level ozone
    (smog), particulate matter (PM), lead, nitrogen dioxide (NO2),
    sulfur dioxide (SO2), and carbon monoxide (CO).

-   New York has worked hard to clarify roles within state agencies
    regarding energy issues. For instance, an administrator is
    responsible for designing and implementing a system benefits charge,
    and the facilitator ensures it translates into customer-sited
    renewables.

-   New York already has several programs in place, including "Green and
    Clean," which provides guidelines for state buildings and vehicles.

-   In Texas, state agencies are developing methodology, based on power
    plant data, to determine emissions reductions that may be attributed
    to energy efficiency and renewable energy projects for use in
    SIP-credit accounting.

-   In Texas, the TNRCC and EPA Region 6 are looking at ways to reduce
    NOx by increasing energy efficiency. Legislation has been key in
    these efforts. For instance, under the Texas Emissions Reduction
    Plan (TERP), grants are given to pay the incremental costs of
    "clean" projects.

-   The state also initiated the Texas Council on Environmental
    Technology (TCET), which was organized to assist in developing new
    technologies to address energy efficiency, air, water, and waste
    concerns.

-   Texas groups are major supporters of the Energy Star Program --
    Frisco, Texas, was the first U.S. city to adopt Energy Star as a
    building standard.

-   Texas established the Texas Fuel Cell Initiative, which supports
    projects that use fuel cells to provide power to docked ships and to
    charge ground-support vehicles at the airport.

-   A cooperative partnership among the EPA, Texas state/local agencies,
    corporations, and nonprofit organizations is replacing older diesel
    buses with alternative-fuel models.

***What's still needed***

-   Support from DOE and EPA to cofund collaborative projects would
    provide incentives for state agencies to form partnerships relating
    to renewable energy and air-quality issues.

-   Although some economic incentives for renewable energy already are
    provided based on their environmental benefits, analysis is still
    needed to make the case for greater incentives because renewable
    energy is the optimal pollution control approach.

-   Explore the feasibility of expanding a trading program for energy
    efficiency and renewable energy, and encourage private investment in
    the same.

Overall, the panel emphasized that making the deployment of renewable
energy technology more market-oriented and private-sector-focused will
help gain more attention. Panel members also believe that the acceptance
of renewable energy does not necessarily require legislative incentives
and can happen through markets. All agreed that one of the key factors
in advancing renewables is to make their benefits more visible to the
public. Panel members cited the importance of renewable energy cost
reductions to achieve increased deployment of the technologies.

Current Approaches and Additional Needs for Analysis of the Potential
Role of Renewable Energy Technologies in Meeting Air-Quality Goals

*Session 1: Renewable Energy Technologies*

This group of presenters focused principally on the status of renewable
energy technologies, on their environmental characteristics and
potential role in air-quality programs, and on renewables-related
databases and models. Topics and presenters included:

**Art Diem, EPA** -- "Role of Renewable Energy Analysis in Air-Quality
Policy Development and Regulatory Oversight"

**Maggie Mann, NREL** -- "A Comparison of the Environmental Consequences
of Power from Biomass, Coal, and Natural Gas"

### Dave Renne, NREL -- "Renewable Energy Databases, Information, and GIS Tools"

### Walter Short, NREL -- "Renewable Energy Technologies: Products, Markets, and Industries"

### Scott Sitzer, Energy Information Administration (EIA) -- "The Role of Renewable Energy in EIA's Annual Energy Outlook and Multiple Emission Studies"

The key points made by these presenters are listed in categories, as
follows.

[Motivations for air-quality planners to consider renewable energy and
energy efficiency]{.underline}:

-   Abundance of renewable resources and technology options (wind,
    solar, biomass, hydroelectric, geothermal)

-   Increasing energy demand throughout the United States

-   Increasing air-quality constraints

-   Increasing focus on greenhouse gas emissions

-   Renewable energy-technology improvements

[Renewables and energy efficiency-related policies and programs already
in place:]{.underline}

-   Environmental provisions associated with electricity restructuring
    legislation (renewable portfolio standards, emission portfolio
    standards, public benefit funds or system benefits charges, and
    "green power" purchasing requirements).

-   Tax incentives

-   Green-pricing programs

[Existing environmental policies needing additional analytic
support:]{.underline}

-   EERE set-asides within cap and trade programs

-   Energy codes

-   Equipment standards

-   Multipollutant programs

-   Voluntary and market transformation programs (such as Energy Star)

-   Green-power marketing

-   RPS

[Specific questions or issues needing analysis:]{.underline}

-   How much will renewable energy and energy efficiency contribute in
    the future?

-   How will the policies affect their use?

-   What are the full life-cycle emissions from renewable energy systems
    (especially important for various biomass applications)?

-   What sources of energy are being supplanted by increases in energy
    efficiency or renewable energy?

-   What are the associated emission reductions?

-   Where are these emission reductions occurring?

[Current analytic tools, databases, and analytic studies:]{.underline}

-   Economic modeling (National Energy Modeling System - NEMS,
    Integrated Planning Model - IPM)

-   Electricity Dispatch Modeling

-   Energy/Emissions Databases (Energy Information Administration --
    EIA; EPA data such as E-GRID -- Emission and Generations Resource
    Integrated Database)

-   Life-cycle assessment (Maggie Mann) -- analyzes emissions of
    alternative energy systems over their full life cycles, including
    plant construction, operation, and shut-down/demolition, as well as
    emissions related to fuels production, delivery and storage, and
    waste removal and disposal. Compares new technologies to the status
    quo, pinpoints areas that deserve special attention, reveals
    unexpected environmental impacts

-   Geographic Information Systems -- GIS (Dave Renne) -- useful for
    analyzing geospatial characteristics of air-quality issues and
    related energy policies.

-   DOE/NREL Renewable Electric Plant Information System -- REPiS
    (Walter Short)

-   Energy Information Administration (EIA) resources (Scott Sitzer),
    including Annual Energy Outlook 2002 Reference Case, AEO2002 High
    Renewables Case, Multiple Pollutant Policy Emission Cases, and
    Renewable Portfolio Standard Cases.

-   Studies by technology trade associations, such as American Wind
    Energy Association (AWEA).

[Specific challenges for additional/improved analysis:]{.underline}

-   Updating characterizations of renewable energy technologies within
    various energy models

-   Improving "displaced emission rate" factors for various efficiency
    and renewable technologies

-   Determining the location of displaced emissions

-   Full participation of EERE technologies in cap and trade programs

-   Obtaining actual data, rather than modeled data

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-   Analysis to establish the role of renewables in reducing power plant
    emissions, specifically including natural gas-fired generation,
    which is likely to be the primary competition for new renewables
    capacity.

In summary, energy and environmental analysts and others should
emphasize collaboration to develop quantitative information on the
effects of energy on the air, and to develop complementary energy and
environmental policies for air-quality improvement. Innovative
complementary policies, plus solid supporting analysis, will result in
better planning for air quality and greenhouse gas emissions. This group
of speakers emphasized that the reasons renewables gain support often
are based on values broader than just economics. Supporters will need to
develop a stronger analytic basis for the full range of benefits of
renewables, including such things as enhancing energy security and
mitigating power faults, as well as environmental benefits.

***Session 2: Analytic Tools for Integration of Air-Quality and Energy
Management***

The second group of presenters in this session focused on analytic tools
that are being applied in air-quality improvement programs, and on
integrated approaches to addressing environmental and energy issues, and
also added to the forum's discussion of policy approaches and analytic
needs. Topics and presenters included:

### Sasha Mackler, EPA (Clean Air Markets Division) -- "Power-Sector Analysis for Regulatory Compliance"

### Tom Kerr, EPA (Energy Supply and Industry Branch) -- "A New Method for Calculating the Environmental Benefits of Clean Energy Technologies" 

### Deborah Adler, EPA (Office of Transportation and Air Quality) -- "Mobile Sources: A Proposal for Modeling the Benefits of Renewable Fuels" 

### Art Williams, Association of Local Air Pollution Control Officials -- "Application of Integrated Air/Energy Measures in Local Air Pollution Control"

### Jim DeMocker, EPA (Office of Air and Radiation) -- "Evaluating the Air-Quality Implications of Alternative Energy Futures Using EPA's 812 Benefit-Cost Methodology" 

The key points made by these presenters are listed in categories, as
follows.

[Examples of air-quality policies and programs discussed:]{.underline}

-   The Clear Skies Initiative -- the Bush administration's air-quality
    program for the electric-power sector.

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-   Tax credits

-   Systems Benefit Charges (SBC)

-   Air-permitting exemptions

-   Green-pricing programs

-   Renewable Portfolio Standards (RPS)

-   Environmental disclosure requirements

-   Output-based emission standards

[Analytic databases and tools currently being used:]{.underline}

-   The Integrated Planning Model (IPM) -- finds the least-cost solution
    to meeting electricity demand subject to environmental,
    transmission, fuel, reserve margin, and other system operating
    constraints

-   The National Energy Modeling System (NEMS) -- currently used by the
    EIA for multipollutant studies

-   EPA Base Case 2000 for Clear Skies Initiative

-   Under development by EPA with ICF (Tom Kerr, Juanita Haydel), IPM is
    being used to calculate Average Displaced Emission Rates (ADER)
    through modeling, which accounts for generation and capacity
    changes; considers power market issues; considers emission
    characteristics of many types of generating units; provides
    estimates specific to hour block, year, and geographic region; uses
    a robust methodology; and is based on simulations of impact of
    energy efficiency (EE) and clean energy technology (CET)

-   MOBILE (Deborah Adler) -- a tool for estimating air-quality impacts
    (HC, CO2, and NOx) from highway vehicles, which covers gasoline and
    diesel, as well as all emission standards.

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-   Multiscale mOtor Vehicles and Equipment Emission System - MOVES (D.
    Adler) -- a new-generation model that includes PM, toxics, and CO2,
    but is more flexible to accommodate new technologies and fuels.

-   The EPA/Office of Transportation and Air Quality - OTAQ (D. Adler)
    has a draft model for renewable fuels, "Fuel-CO2," which focuses on
    the fuel producer and can be used to model any fuel.

-   The Harmonized Strategies approach (analyzing four geographic areas)
    demonstrated that tremendous opportunities exist for cocontrolling
    GHGs and other air pollutants. This strategy is available in every
    sector of the economy and can be tailored based on the
    needs/circumstances of individual areas.

[Analytic challenges for air-quality improvement:]{.underline}

-   Understanding the potential for cocontrol benefits to achieve GHG
    and air pollution benefits with economic efficiency.

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-   Cost/benefit analysis of alternative approaches to air-quality
    improvement, taking into account emission profiles for criteria
    pollutants, physical effects, and their economic valuation, as well
    as direct costs.

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-   Life-cycle modeling of the implications of alternative fuels (air
    quality, efficiency, etc.) in the transportation sector. This is
    especially important for ethanol fuel blends because of the
    prominence of policies encouraging expanding ethanol use.
    Examination of the electricity demand, natural gas price, and
    "market share algorithm" assumptions as used in NEMS to understand
    why it projects relatively low levels of renewables contributions in
    the future.

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-   Development of an "Alternative Base Case" using more advanced
    technology characterizations and considering Renewable Portfolio
    Standards (RPS).

[Quantification of the benefits of clean energy technologies and of
energy efficiency technologies:]{.underline}

-   Analysis to support the clean energy technology (CET) and energy
    efficiency (EE) industries in the marketing of their technologies.

-   Analysis to develop impact estimates for EPA voluntary partnerships.

-   Improvements on displaced emissions methodologies. These include the
    need for an integrated approach, interdependence of capacity and
    dispatch decisions, and the geographic location of CET/EE impacts
    and the simultaneity and magnitude of their impacts across the
    region.

Overall, the panel emphasized improving awareness through partnerships
and collaborative efforts. State/local air agencies can promote
renewables in air-quality efforts by supporting RE capacity-building, by
establishing relationships with other agencies, and increasing
stakeholder support.

**[Regional and State Experiences Regarding Use of Renewable Energy to
Achieve Air-Quality Goals]{.underline}**

### Panel Discussion -- Regional Ozone

This panel agreed that efforts to improve ozone levels are not just
about attainment in the near term, but also about changing the direction
of future development of our energy systems to ensure continued
attainment in the longer term. There is a critical need for better
information to establish this as a priority for policy makers and the
general public.

Participants included:

-   **Anna Garcia (chair)**, Center for Energy and Climate Solutions

-   **Chris James**, Connecticut Department of Environmental Protection

-   **Mike Winka**, New Jersey Department of Environmental Protection

-   **Rob Sliwinski,** New York State Department of Environmental
    Conservation

-   **Phil Powlick,** Indiana Department of Commerce

**Key points from the panel**

***Barriers***

-   When working on projects to assess the use of renewable energy
    sources, policy makers often find that the information is a couple
    of years behind.

-   There is strong sensitivity to price in some regions (Indiana, for
    example), which has made the economic issue a political one as well
    (Phil Powlick). It's important to analyze, quantify, and articulate
    the other benefits of renewables, and emphasize that their use is
    not just about money.

***What's being done***

-   New Jersey (Mike Winka) applies Systems Benefits Charges to support
    utilities' EE and RE programs.

-   N.J. provides financial incentives for sustainability projects in
    schools and commercial buildings.

-   N.J. constructs high-performance buildings by applying standards
    developed by the Leadership in Energy and Environmental Design
    (LEED) program.

-   Connecticut (Chris James) has taken actions to collaborate with the
    utility commission to target renewable investments.

-   Connecticut promotes value vs. cost and also focuses on energy
    security, transmission, interconnection, power quality, and grid
    stability.

-   Connecticut projects include PV at truck stops to reduce idling and
    diesel emissions, use of PV to cool transformers, and use of
    renewables in demand-response programs.

-   New York (Rob Sliwinski) supports Renewable Portfolio Standards
    (RPS), biofuels, and incentives for alternative-fuel vehicles.

***What's still needed***

-   More up-to-date information. Credible, nonbiased analysis on the
    full suite of benefits of using renewable energy resources and
    systems to broaden the focus beyond just direct energy system costs.

### Panel Discussion -- Regional Haze

This panel focused on the efforts of the Western Regional Air
Partnership (WRAP) to address regional haze in the West.

Participants included:

-   **Doug Larson (chair)**, Western Interstate Energy Board

-   **Juanita Haydel**, ICF Consulting

-   **Doug Latimer**, EPA

-   **Rita Trujillo,** New Mexico Air Quality Bureau

-   **Chris Wentz,** New Mexico Energy Conservation and Management
    Division

**Key points from the panel**

***Barriers***

-   Power source preferences in some states (N.M.) still tend toward
    coal (Chris Wentz). However, there is some growing support for wind
    and solar. While N.M. officials would like to increase the market
    for renewables -- especially in areas where households are not
    connected to the grid -- they lack the information to support their
    use.

-   Some groups (Doug Latimer) find that they don't have the appropriate
    models to document how the WRAP might meet the 10/20 goal[^2] or why
    it may not be feasible.

-   States have difficulties in applying rules, such as the renewable
    energy goal, that are only a goal and not a mandate. While officials
    can use Regional Haze State Implementation Plans (SIPs) to recommend
    incentives for renewable energy, these provisions are not recognized
    as law -- perhaps the EPA can establish more stringent requirements.

***What's being done***

-   The visual quality at 156 designated areas is protected by the
    Regional Haze Rule, which implements the visibility protection
    measures of the 1990 Clean Air Act. The act also directed EPA to
    conduct research and modeling on the issue.

-   ICF is conducting an economic assessment of energy efficiency and
    renewable energy goals for the Western Regional Air Partnership.
    Using the Integrated Planning Model (IPM), E2 demand-side analysis,
    and the REMI model, analysts can add energy efficiency to the mix
    and create new assumptions.

-   Legislation mandates that the EPA and states address regional haze.
    The 10/20 goal for renewable energy (listed above and in footnote)
    is one compliance alternative for certain states as part of the EPA
    regulation in response to that Clean Air Act legislation.

***What's still needed***

-   Analysis is needed to determine the rate of progress necessary to
    attain natural haze conditions by the year 2064 -- essentially, the
    WRAP must determine the emission reductions needed to achieve this
    goal.

-   Regional haze modeling is structured where emissions and meteorology
    are applied to a Regional Air Quality Simulation Model, which
    determines the output of SOx, NOx, PM2.5, and other pollutants.
    However, other models are needed. With a more detailed regional
    analysis, the results could be incorporated through a supply curve
    in a more aggregated regional model.

-   Reliable analysis, which is backed by credible peer reviews

Overall, the panel emphasized the need to educate policy makers and the
public about the full range of benefits from broader use of renewables,
reiterating the point that policy makers and the public are still not
aware of the benefits bestowed by renewables. Although there is a
significant push toward legislative incentives for renewable energy, the
panels also noted that there could be successes even without mandates --
for example, recycling started out as a voluntary effort and has grown
into a mainstream program.

**[Breakout sessions]{.underline}**

In order to enable participants to more actively and intensively engage
in forum deliberations, participants were divided into five smaller
groups to discuss the "key questions" presented at the outset of the
forum. The key questions, which were the same for each of the five
groups, asked:

-   What are the information or analysis barriers to increasing the use
    of renewable energy in air-quality policies, programs, and plans?

-   What analyses, tools, and technical assistance should be conducted
    or developed in the short and long term to begin to address these
    barriers?

Organizers asked each group to select a focus, which could include
specific sectors, pollutants, air-quality issues, decision-maker groups,
or other topics. For each focus area, participants were asked to develop
a statement on the analytic status and the most critical
information/analytic needs. In addition, they were asked to make
prioritized recommendations for meeting those needs.

**Overall, the groups agreed on three general areas needing attention:**

-   Integrating air-quality and energy planning, as well as encouraging
    collaborations

-   Providing decision makers with customized and credible information
    to influence policy

-   Communicating information to government agencies, private
    industries, and the public

***The following is a list of recommendations to address these areas:***

## Integrating air-quality and energy planning, as well as encouraging collaborations

## Develop a new "Living Value Model" -- integrates many value elements into a single framework, monetary values for factors such as health, national security, etc.

-   Increase development and distribution of technology
    characterizations and roadmaps

-   Develop spreadsheets and databases on the full suite of RE benefits
    (health, economics, power quality, energy security, etc.)

-   Provide financial and technical assistance for development of
    integrated renewable energy and air-quality plans

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-   Develop cash flow and payback analysis tools, targeting individual
    consumers, businesses, and utilities. For instance, establish a tool
    that would help both the buyer and the builder of a house determine
    the benefits of using renewable energy.

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-   Verify emissions savings from RE in SIP programs

-   Standardize methodologies and models for energy and air-quality
    planning

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-   Ensure better representation of renewables in environmental-impact
    models, including land use, water, etc.

Providing decision makers with customized and credible information to
influence policy

-   Use existing models to provide yardsticks for decision makers

-   Improve coordination with transportation industry on renewable fuels
    technology

-   Develop state-specific models (or better disaggregation of models)

-   Emphasize regional analysis and planning

-   Develop a matrix of potential roles/impacts of RE measures at local,
    state, regional, and national levels

-   Provide state and regional GIS baseline data (including renewable
    resources, grid and other energy system information, air quality,
    etc.)

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-   Structure a financial instrument that determines cash flow vs.
    payback (some software/spreadsheets are out there, but we need to
    determine reliability)

-   Establish where the grid is constrained and confirm the reliability
    of utility information

-   Promote the development of standards and peer review processes for
    analyses to enhance their credibility

**Communicating information to government agencies, private industries,
and the public**

-   More effectively communicating what information is already
    available, not just at NREL but also within other groups' databases

-   Organize regional forums that would enhance communication among
    agencies within the same area

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-   Develop a comprehensive Web site on renewable energy cost and
    performance information, policy information, and general resource
    information (targeting policy makers)

-   Establish a national resource center on renewable energy, which
    offers data, technical assistance, etc.

-   Establish an internship program and training for state/local air
    officials

-   Develop "train the trainer" programs for communications and
    education staff

-   Communicate analysis results to energy and environmental policy
    makers in Congress and in the states, as well as industry and other
    appropriate associations

[^1]: In 1997, EPA changed the National Ambient Air Quality Standards
    for particulate matter. EPA added new standards for fine particulate
    matter with an aerodynamic diameter less than or equal to 2.5
    micrometers (PM 2.5). These standards are 15 micrograms per cubic
    meter, based on the three-year average of spatially averaged annual
    arithmetic mean concentrations; and 65 micrograms per cubic meter,
    based on the 98th percentile of 24-hour concentrations at
    population-oriented monitors. EPA changed the 24-hour standard for
    particulate matter with an aerodynamic diameter less than or equal
    to 10 microns (PM 10). The old standard was violated when there was
    more than one expected exceedance of the 150 microgram per cubic
    meter standard per year, based on 24-hour average concentrations.
    Instead, the new 24-hour PM 10 standard will be based on the
    three-year average of 99th percentile of 24-hour concentrations,
    which may not exceed the 150 microgram per cubic meter. The annual
    PM 10 standard remains unchanged at 50 micrograms per cubic meter,
    based on the expected annual arithmetic mean, which is over three
    years of concentrations at each monitor in an area.

[^2]: In the 10/20 goal, EPA\'s Final Regional Haze Regulations for
    Protection of Visibility in National Parks and Wilderness Areas,
    Section 309, establishes State Implementation Plan requirements that
    provide a compliance alternative for nine Grand Canyon Visibility
    Transport Region States -- Arizona, California, Colorado, Idaho,
    Nevada, New Mexico, Oregon, Utah, and Wyoming -- this compliance
    alternative targets obtainment of 10 percent of regional power from
    renewable energy by 2005 and 20 percent by 2015.