# Presentation: 512606

## Technical Committee Meeting

- November 13, 2007
- NREL Project Team Update
- DC/Golden/Webcast

## Agenda

- 1) Introductions, Agenda Overview
- 2) Project update, web update timing - 15 mins (Liz)
- 3) Policy Priorities - Ordering the policies that we'll study-30 mins (Liz)
- 4) Metric and Data Availability Discussion – Presentation of proposed metrics and data sources, discussion (45 minutes)
- 		EERS - Energy Efficiency Resource/Portfolio Standards – 		Matthew Brown
- 		RPS- Renewable Portfolio Standards – David Hurlbut
- 		RFS - Renewable Fuels Standards – Gail Mosey
- 5) Wrap up

## Objectives for State Policy Best Practices and Innovation Initiative

- Identify and quantify impacts of current state EE/RE policies that are:
- most effective policy types (e.g. RFS, Incentives, decoupling, etc) for achieving particular public policy goals (e.g. local economic growth)
- most effective variables within policy types (e.g. EERS, RPS, Sales tax exemption, etc.)
- Promote understanding of current best policies to foster broader use by more states
- Engage leading state officials and EE/RE market experts to identify and characterize next generation of innovative policies

## Project  Approach

- Develop detailed work plan, project team, and technical committee (Sept, 07)
- Conduct analysis to quantify and characterize policy impacts by type and drivers (Sept 2007-2008)
- Conduct sessions at regional workshops and national conferences to identify and share policy best practices and innovations and plan further work (Spring or Summer, 08?)
- Further develop next-generation innovations and complete policy best practices analysis and documentation
- Disseminate information on state policy best practices and innovations
- Provide technical assistance (including peer-exchange) to support policy best practice and innovation application

## Project Update

- State Best Practices -->State Clean Energy Policies (SCEP)
- Website Update - in review - public within 2 weeks
- Policy Priorities Timeline
- Conferences/Avenues for dissemination

## Policy Priorities

| Policy | Status |
| --- | --- |
| Renewable Portfolio Standards | Oct 07-Jan 08
 |
| Renewable Fuels Standards |  |
| Energy Efficiency Resource Standards |  |
| Decoupling/Lost Revenues/Incentives |  |
| Renewable Project Contracting and Financing | Nov 07-Feb 08
 |
| RE Tax Incentives: Personal DG/Net Metering,property tax exemptions, easements, sales tax exemptions.  |  |
| RE/Alt Fuels Tax Incentives: Personal Auto |  |
| White Certificates |  |
| EE Tax Incentives |  |
| EE Tax Incentives: Personal |  |
| EE Tax Incentives: Corporate |  |
| EE Tax Incentives: Sales |  |
| EE Tax Incentives: Property |  |

## Policy Priorities - 2008

| Tax Incentives: Corporate Auto alt fuels | Feb 08-April 08
 |
| --- | --- |
| Renewable Products Grants |  |
| Renewable Products Rebates |  |
| Feed in tariffs |  |
| EE Rebates |  |
| EE Grants  |  |
| EE Loans |  |
| Energy Efficiency Mortgages  |  |
| EE Pay As You Save |  |
| EE QAP Allocations for Efficiency  |  |
| EE Bonds |  |
| Administration of Energy Eff Programs | April 08-June 08

 |
| Demand Response Programs |  |
| Non-Traditional Rate Structures: TOU (EE and RE) |  |
| Non-Traditional Rate Structures: Inverted Block (EE and RE) |  |
| Non-Traditional Rate Structures:Others  (EE and RE) |  |
| EE Public Benefit Funds  |  |
| PBF Renewable Related Policies |  |

## Policy Priorities - Beyond

| Consumer Information/Education  | July 08-Sept 08 |
| --- | --- |
| Bulding Codes | July 08-Sept 08 |
| Appliance Standards | July 08-Sept 08 |
| Performance Contracting | July 08-Sept 08 |
| Standards for Public Buildings  | July 08-Sept 08 |
| Green Building Incentives | FY09 |
| Transmission Policies | FY09 |
| Industry Recruitment incentives | FY09 |
| Loans | FY09 |
| Standardized Permitting for Renewables | FY09 |

## Outreach

| Conference/Meeting | Start Date | Location |
| --- | --- | --- |
| NCSL Fall Forum | 11/27/07 | Phoenix, AZ |
| DOE State Meeting West | 12/07 |  |
| NARUC-Institute of Public Utilities Annual Policy Conference 2007 | 3-Dec-07 | Charleston, SC |
| NGA Gov's Biofuels Summit | 12/13/07 | Tampa, FL |
| NASEO 2008 Winter Conference | 2/3/08 | Washington, DC |
| DOE State Meeting East | 3/08 |  |
| NCSL Spring Forum | 4/22/08 | Washington, DC |
| MACRUC 2008 Convention | 1-Jun-08 | Williamsburg, VA |
| NCSL 2008 Legislative Summit | 7/22/08 | New Orleans, LA |
| ACEEE Summer Study in Buildings | 8/17/08 | Monterey, CA |
| ACEEE Energy Efficiency in Agriculture Forum | 2/8/08 | Des Moines, IA |
| CESA Spring Meeting | 5/11/08 | New Haven, CT |

## Metric Discussion Structure

- Metric Lead:
- Overview of proposed metrics
- Strengths and Weaknesses of Proposed metrics
- Proposed Data Sources for Metrics

- Open Discussion:
- Comments on proposed metrics/ methods
- Additional Data Sources?
- Additional metrics?

## EERS Overview

- Requires that power providers meet a certain, quantified energy efficiency goal
- A market-based mechanism to encourage more efficient generation, transmission and use of electricity and natural gas.
- Energy efficiency goal may be expressed in terms of a total demand or electricity savings goal or as a portion of expected load growth

## EERS Environmental Metric

*Environmental Metric:*
-  Air Quality improvements and emissions reductions in both greenhouse gases and in criteria pollutants.  (on a percentage reduction basis).
*Data Source:*  State agency data and information sources.
*Economic Metric:*
- To the extent possible, we will gather data on the economic impact of the EERS in terms of reduction in electricity prices as a result of deferred transmission or generation construction.
*Data Sources:*  Data sources will be state agency reports, and are expected to be limited, since few states have had extensive experience with the EERS at this point.
*ES/FD Metric*: Energy Efficiency as a Percentage of Total Load Growth
- To the extent that energy efficiency measures reduce the need for other generating resources and play a part in meeting load growth, they enhance both energy security and fuel diversity.
*Data Limitations*:  As with other metrics, it may be difficult to attribute specific energy efficiency achievements directly to the EERS, however the fact that the EERS is a quantified, mandatory goal will make measurement easier.

## RPS metric overview

- Policy design affects policy drivers
- Import eligibility 
- economic development
- consumer costs
- Green power 
- air quality
- REC trading 
- economic development
- consumer costs

## RPS metric overview

- Metrics for policy drivers
- Environmental
- MWh from zero-emission renewables (% of fuel mix)
- Economic development
- % changes in assessed valuation
- Jobs added
- % change in GSP
- Energy security
- decreased use of price-volatile fuels (% of fuel mix)

## RPS metric overview

- Descriptive results
- Progress toward goal
- RPS-eligible generation as % of state consumption
- Installed capacity (as % of resource mix)
- Current status (% above or below statutory goal)
- Capacity factor of RPS technologies

## RPS metric overview

- Barriers
- Transmission
- Lack of natural resource endowment
- Institutions for regional cooperation

## RFS Overview

- aka Renewable Fuels Mandate
- Require that certain % of transportation fuels be replaced with renewable fuels in a given geographic area
- Typically based on volume or total fuel sales
- Targeting gasoline and/or diesel fuels, specific grades of gasoline
- Variety of supply chain applications – refiners, blenders, importers, distributors and/or retail sellers

## RFS Data Availability and State Experience

- 8 states with RFS (all light-duty vehicles)
- HI, IA, LA, MN, MO MT, NM and WA
- Goals vary among states
- Many are in early stages (most beginning in 2006)
- Stated drivers are
- Improve rural economy
- Gain fuel independence and security
- Environmental - improve health and air quality

## RFS Proposed Economic Metrics

- Drivers: value of industry, jobs creation, GSP
- Change in number of alternative fuel plants
- Method: Develop an index of number of plants/amount of resource within that state.  Identify states with policies and compare their ratio to states without
- Data sources: the Renewable Fuels Association and the National Biodiesel Board for fuel sales.  NREL has GIS location of plants
- Sales of alternative fuels
- % change in GSP
- Impact on Jobs
- Other metrics?
- Challenge: Most RFS have been enacted so recently (most in 2006) that data showing before and after may not yet be available

## RFS Proposed Environmental Metrics

- Drivers: local air quality and GHG emissions
- Lifecycle impacts of fuels chosen in policies
- Method: examine biofuel life cycle assessment analysis
- Data sources: NREL LCA analysis
- % particulate matter changes in urban areas resulting from increased alternative fuel use
- Method: Use data from existing states and identify previous and current
- Data sources: state level data
- Others metrics?
- Challenge: environmental benefits of alternative fuels are not fully understood and data is somewhat limited

## RFS Proposed Fuel Diversity/Energy Security Metrics

- Drivers: fuel diversity and import offset
- Imported fuel reductions
- Method: Reduce the imports by the value of the alternative fuel mandate and use a percentage to normalize between states
- Data sources:  DOE-EIA for current and projected state fuel imports
- Other metrics?

## RFS Policy Variations May Impact Effectiveness

- Market boundaries and applicability
- How, what and to whom the policy is applied
- Flexibility in fuel type
- Least cost fuel may not be developed if a particular fuel(s) is mandated
- Binding targets and compliance
- How to handle non-compliance?
- Cost caps
- Policy may be negated if it becomes burdensome to the consumer

## Wrap Up

- Additional Feedback: _[elizabeth_brown@nrel.gov](mailto:elizabeth_brown@nrel.gov)_
- 	(303) 384-7489
- Next Steps
- Next Meeting

## Additional

## Expected Results for Policy Comparison

|  | Economic |  |  |  | Environmental |  |  |  | ES/FD |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Policy | Value of Industry | Net Job | GSP | Purch-ase Power | Local Air Quality | Global Air Quality | Water Quality | Land Use | Imports Offset | Fuel Diversity |
| EERS | Med |  |  | Med | Unk | Unk | Unk | Unk | High | Unk |
| RFS | High |  |  | Med | Unk | Unk | Unk | Unk | High | High |
| RPS | High (if imp exc)

Med (w/ imports) |  |  | Med (if imp exc) | High (with Green Power)
Medium (w/o) |  | Med | Med | Low  | High |