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Community Choice Energy as a Community Development Strategy for Oakland

This presentation discusses the benefits of implementing a Community Choice Energy program in Oakland, including cost-effective renewable energy, job creation, greenhouse gas reduction, and sustainable economic development. It also explores the potential for local generation and demand reduction, as well as the financial advantages and structuring of such a program.

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Community Choice Energy as a Community Development Strategy for Oakland

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  1. Community Choice Energyas aCommunity Development Strategyfor Oakland March 30, 2010

  2. The Problem: One Size Doesn’t Fit All • The Opportunity: Electricity as a Community Development strategy • Local and Regional Renewables are Cost Effective with Important Co-benefits • Results of Jobs Analysis • Administering & Structuring an East Bay program Today's Presentation

  3. Some of the highest rates in the country  • 10 planned rate increases totaling 30% increase in the next 3 years • Only14% renewable power, mostly from large remote plants.   • Estimated $9 million per year in energy efficiency funds from Oakland ratepayers • Comes from utility bills every month • How much is spent in Oakland? The Problem: One Size Doesn’t Fit All

  4. Community control over power mix and energy efficiency funds • Can be tailored to meet community goals • Local sustainable economic development • Green job development • Greenhouse gas reduction • Public power has been a great success • 24% of state is public power • 25% lower rates • Greener electricity • Example: PG&E is 27% more expensive than Sacramento (SMUD) which has 20% renewable energy now The Alternative:Community Choice Energy

  5. Complement Oakland's existing initiatives to address economic and social issues • The electricity sector can be part of the solution • Local GHG gas reductions • Sustainable economic development • Clean energy jobs • Leading way to achieve ECAP goals The Opportunity: Electricity as a Community Development Strategy • Healthier communities • Link low income resident to workforce development opportunities • Improve low income assistance programs • No new fossil fuel power plants or environmental degradation • Focus on local generation and demand reduction

  6. Local generation is now cost-effective • Sierra Club finds solar on rooftops 39% more cost effective than wind farms, 50% more than remote solar • State agency consultants found great potential for solar on large commercial properties Local Generation of Power andElectrical Demand Reduction • Demand reduction is top state priority and least expensive way to meet electrical needs • Labor intensive Local clean energy jobs

  7. Oakland Rooftops Could Power 51MW (~50,000 homes) Courtesy of Black & Veatch

  8. Ability to tap into low rate municipal bonds • With nonprofit model, $14 million would stay in Oakland (PG&E shareholders received $1/2 billion in 2009 dividends) • No exorbitant executive compensation: PG&E CEO took $9.4 million in 2009 Financial Advantages of Community Choice Energy • Reduced rates to local consumers • Revenues could fund local initiatives; Los Angeles' public utility sends $220 million to the general fund

  9. Assumes 50% renewable energy by 2020, 75% of which is produced locally • Aggressive EE programs • Reduce GHG emissions 300,000 tons CO2-equivalent in Year 10  • Used solar job intensity estimates from UCB's Renewable Alternative Energy Lab for distributed generation  • Within 10 years, will create 1,400 living wage jobs, 450 of which would be installing solar, EE or clean energy technologies  Community Choice:Oakland GHG and Jobs Analysis

  10. JPA governs and tailors program to meet community needs • Contracts with local and remote electricity provider(s) • Managed by an Electric Service Provider  • Large company like Shell (Marin Energy Authority) • Public utility like East Bay MUD • Public power company or association Administering an East Bay Community Choice Program

  11. Foster accountability and inclusion • Key stakeholders have seat at the table • Community • Labor • Green Business Structuring an East Bay Community Choice Program • Precedent: ECAP • Stakeholder committee with clout • Identifies community needs and programs • Evaluates project performance and contracts • Vets proposals

  12. Support the resolution  Prop 16 on 4/20 • Determine the effects of Community Choice on organized labor  • When Marin or SF begins delivering electricity, Oakland should form a Task force • Monitor Community Choice Energy progress • Monitor cost competitiveness of local renewables  • Identify Community Development needs and opportunities The Next Steps… • Lobby state utilities agency to allow cities more control over EE funds and require utilities to share a lot more data (to aid in strategic program resource planning)

  13. Dave RoomLocal Clean Energy AllianceBay Localizedave@baylocalize.org (510) 285 7075 March 30, 2010

  14. Image Credits irps.ucsd.edu/ greenaction.org racewire.org emcity.org  lcv.org watthead.org thewere42.wordpress.com/2009/10/15/communityhopefinancial.com edab.org Robert Her

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