From Victory to Reality: Implementing SB 221

1. From Victory to Reality:Implementing SB 221 Jen Miller Conservation Program Manager Ned Ford Energy Consultant

2. Ohio’s Current Electricity Portfolio Source: Energy Information Administration http://www.eia.doe.gov

3. THE PROBLEM • Ohio ranks 4th in the country for carbon dioxide emissions • Energy costs are skyrocketing because increased worldwide demand • Over half of the coal we burn is imported from other states, and much of it is obtained through mountain top removal. • Fossil fuels = a finite resource • Other concerns: soot, smog, mercury pollution & mining impacts.

4. What isEnergy Efficiency?Technologies and practices that allow us to do the same tasks using less energy • Examples: • Lighting (CFL & LED bulbs) • Space Conditioning (high-efficiency furnaces, insulation, weatherization, improved windows) • Architectural Innovations (natural light, core structure and design) • Industrial technologies (higher-efficiency water-sprays & motors)

5. Benefits of Energy Efficiency • Powers buildings on less energy • Saves consumers money • Reduces our dependence on imported out-of-state coal and finite fossil fuels • Saves/creates jobs in manufacturing sector and building and construction trades • Reduces emissions • Reduces need for new power plants • 1/3 the cost of a new coal plant &1/5 the cost of a new nuclear plant

6. Renewable Energy • Derived from a resource that is naturally replenished as soon as or shortly after it has been consumed. • Low impact upon water quality, water quantity, and air quality, including C02 and other greenhouse gas emissions. Doesn’t produce toxic waste.

7. Our New Energy Law (SB 221) • Energy Efficiency Requirements • (and potential for incentives for over-compliance) • Alternative Energy Requirements • Demand Response Demand Response programs lower the amount of energy needed at the times of the day and year when energy use is at its highest; reducing costs for consumers and the need for peak capacity. • Advanced Energy Requirements

8. Energy Efficiency Standards • Savings Requirements: Overall, SB 221 requires utilities to achieve a minimum, cumulative 22% reduction in sales by the year 2025; beginning with 0.3% in 2009 and 0.5% in 2010. • Penalties for failure to comply: Penalties are required if utilities fail to meet their required annual standards. Penalties are as follows: a max of $10,000 per day, or the value of one REC (renewable energy credit) for each MW (mega-watt) of non-compliance.

9. Alternative Energy in SB221 • Basic Requirement: • By the year 2025, 25% of energy sold by investor owned utilities in the state of Ohio must originate with “advanced” or “renewable” sources. 12.5 % of these sources must be “renewable”; the remainder can be “advanced”. • By the end of 2009, 0.25% must be renewable and 0.004% must be from solar power. 2010 - 0.50% renewable standard & 0.010% from solar. • Renewable vs. Advanced Energy: • Utilities are required to meet annual supply standards for “renewable” sources, but not for “advanced” sources.

10. Alternative Energy in SB221 Advanced Energy As defined in law: 1) Generation efficiency technology 2) Distributed generation with cogeneration and thermal output 3) Clean coal technology, which includes the design capability to capture carbon 4) Coal technology that converts coal to a gas state, and removes pollutants to specified levels 5) Advanced nuclear or significant improvements to existing facilities 6) All fuel cells 7) Advanced waste energy facilities 8) Demand-side management and energy efficiency improvements Renewable Energy As defined in law: 1) Solar 2) Wind 3) Hydro 4) Geothermal 5) Non-combustion solid waste fueled energy sources 6) Biomass 7) Biologically derived methane 8) Energy from non-treated wood byproducts 9) All fuel cells 10) Energy storage that has renewable application potential 11) Distributed generation from any energy resource

11. Combined Heat and Power(cogeneration, recycled energy, waste heat recovery) • 1st waste heat recycling was125 years ago • DOE - could create 200,000 MW = power for 100 million homes & replace 400 coal plants • Industrial states in Midwest are prime • Saves industrials up to 20% on energy costs • Steam can only travel about 4 miles – saves on line losses & local generation can mean more local jobs

13. Offshore Wind Energy Potential Great Lakes Energy Development Task Force Project for 2-10 turbines, 3-5 miles offshore downtown Cleveland Current Lake Erie estimates: 68,000 MW of wind resource (note: this is more wind potential than Ohio’s onshore wind resources) Source: “The Great Lakes as a Regional Renewable Energy Source” by David Bradley, February 2004, www.greengold.org/wind

14. Solar Energy Germany (at left – not to scale) is the world’s largest solar market, despite solar resources significantly poorer than the United States. A solar panel in Ohio will produce 20 – 25% more energy than the exact same panel in Germany. (solar maps – National Renewable Energy Laboratory, European Commission)

15. Rulemaking at the Public Utilities Commission of Ohio • Legislature & Governor set forth the vision & standards • The PUCO guides implementation through rulemaking and later through the utility cases • Strong rules are an essential part of ensuring that the standards of the law are met and that over-compliance is encouraged • We hand delivered nearly 1700 comments to the PUCO with an additional 2000 from Environment Ohio. Environment Ohio used paid canvassers and we used volunteers! • We were also successful in obtaining a handful of LTEs throughout the state, which are essential for raising awareness. • Large coalition of environmental and consumer advocates including OEC, OCC, NRDC, OPAE, Environment Ohio, AARP, etc.

16. Utility Cases at the PUCO

17. American Solar Energy Society report “Tackling Climate Change in the U.S. - 2007

18. Carbon-Free supply curve from McKinsey “How Much At What Cost” study - 2007

22. Help with our Public Education/Media Work • LTEs about each utility’s progress (or lack thereof) in papers throughout the state • LTEs in support of efficiency investments – any chance to plug efficiency is critical • FE customers, sign the FE petition on our website and FORWARD IT TO OTHERS! • Assist staff with Editorial Board Meetings • Incorporate campaign message into local group events • In the future, the Ohio Chapter is likely to provide information sheets about incentives offered by each of the utilities

23. 1. How much of Ohio’s electricity originates from coal-fired power plants? 65% 83% 88% 98%

24. 2. Name two benefits of energy efficiency!

25. 3. Which of the following is not a renewable energy source? • Wind Power • Solar Power • Volunteering for the Sierra Club • Nuclear Power

26. 4. What is decoupling? • A. Your favorite bedtime reading material • B. That thing that Ned talks a lot about, but you never quite understood • C. A polite way to talk about divorce • D. A rate structure that removes disincentives for utilities to invest in efficiency

27. 5. Which utility is most likely to get in a wrestling match with the PUCO, because they did not comply to our new energy law? • A. Duke Energy • B. AEP • C. FirstEnergy • D. Dayton Power and Light

28. Thank You! Special thanks to Environment Ohio, Ohio Environmental Council & Recycled Energy Development for contributing to this presentation.