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Climate Action Team Presentation Peggy Duxbury Seattle City Light September 12, 2007 (206) 615-0538 peggy.duxbury@seattle.gov. Climate Change: Seattle City Light. I. Overall objectives: Seattle City Light’s views II. Leading By Example: Seattle’s voluntary carbon reduction strategy
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Climate Action Team Presentation Peggy Duxbury Seattle City Light September 12, 2007 (206) 615-0538 peggy.duxbury@seattle.gov
Climate Change: Seattle City Light I. Overall objectives: Seattle City Light’s views II. Leading By Example: Seattle’s voluntary carbon reduction strategy III. Fed / Regional Action & NW
I. Views of City Light • Climate change is real & action needed • Mandatory reductions needed • Flexible ways to reach goals: “harness market forces” • Recognize cost to inaction
II. Leadership Through Example City Light’s carbon reduction path Conservation: Almost a silver bullet 667 Mayors in US / 28 in WA Support Mayor Nickels’ Climate Protection agreement
The Path to Carbon Neutrality Step 1: Conservation: 580,000 tons avoided annually Step 2: Divest of Centralia coal plant: 611,000 tons eliminated Step 3: Purchased new renewables (Wind) 230,000 tons avoided annually Step 4: Purchase Offsets: 200,000 tons annually Success!2005 / 2006 Seattle City Carbon Neutral – First and only in US
Benefits of Climate Neutrality Wall Street’s Favor: Moody’s improved recommendation for SCL bonds based upon low carbon emission profile First-mover advantage: Locked in long term wind before west coast mandates = higher costs Cost effective for customers: Conservation = lowers bills / Offsets cost less than $1 per year for residential customers • Catalyst for Change: Biofuels / Port Electrification
Can this work for other utilities? SURE! If all utilities reduced carbon emissions 10% (proxy for City Light’s program) CO2 would be reduced 250 million tons = 46 million cars!
III: Voluntary Not Enough: NW Issues around Cap and trade Characteristics of NW Power • WA Over 70% hydro • Large Role of Public Power & BPA • Conservation achieved 40% load growth • Major investments in new renewables • Diminished reliance on coal
Northwest Efficiency Achievements1978 – 2005 Since 1978 Utility & BPA Programs, Energy Codes & Federal Efficiency Standards Have Produced Over 3100 aMW of Savings. SOURCE: NW Power and Conservation Council, 2007
Energy Efficiency Scorecard Highest ranking states: VT, CT, CA, MA, OR, WA, NY, NJ, RI 6 21 50 9 5 25 48 12 33 49 13 35 27 18 26 41 Maine 15 New Hampshire 18 Vermont 1 Massachusetts 4 Rhode Island 9 Connecticut 1 New York 7 Pennsylvania 14 New Jersey 8 Delaware 30 Maryland 20 Dist. Columbia 22 27 35 15 38 1 46 34 35 30 43 44 45 30 23 24 46 38 49 40 11 41 15 29 Lowest ranking states (number higher due to ties):ND, WY, MS, SD, AL, MO, AR, OK, TN, AK, IN, LA, GA, VA, KY, WV, NE Source: The State Energy Efficiency Scorecard for 2006, ACEEE, June, 2007
2,000 lbs/MWh 1,500 lbs/MWh 1,000 lbs/MWh LOWEST EMISSION RATES IN US (lbs of CO2 per mwh of electricity produced)
Coal Not Key to NW Resource Plans • “Coal generation has diminished in utility IRPs to the point where only one utility has a coal plant in its plan.” - IRP Status Memo, Michael Schilmoeller, Power Division, NW Power and Conservation Council, July 31, 2007 • I 937 & HB 6001 along w/ similar standards in CA & OR, favor renewables, conservation & natural gas over coal
Federal / Regional Priorities • Allocation Matters! Historic Emissions penalize the NW more than any region in US • R&D money must focus equally on non coal technologies to better fit NW planning • Encourage (or don’t penalize) conservation • When CA Sneezes, NW catches cold
Emission-Based Gives Many Allowances to Few Source: “Benchmarking Air Emissions of the 100 Largest Electric Generation Owners -2004” Tons *CO2 allowance allocation based on total electricity output, including fossil, renewable, and incremental nuclear output (relative to 1990).
CO2 Allocation Comparison: Emissions-Based vs. Output-Based* vs. Load-Based Source: EIA 2004 & 2005 data Tons *CO2 allowance allocation based on total electricity output, including fossil, renewable, and incremental nuclear output (relative to 1990).
CONCLUSION • Hydro most vulnerable power system from unchecked climate change • Wall Street beginning to see financial value of utilities w/ low carbon emissions • Time for mandatory action & regulatory certainty