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Development, Components and Status of the NC State Energy Plan

Development, Components and Status of the NC State Energy Plan. Larry Shirley Director NC State Energy Office. News and Observer File Photo. 2003 Ozone Alert Days. Source: EPA. State Energy Office. Created During Arab Oil Embargo: 1973 Department of Administration

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Development, Components and Status of the NC State Energy Plan

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  1. Development, Components and Status of the NC State Energy Plan Larry Shirley Director NC State Energy Office

  2. News and Observer File Photo

  3. 2003 Ozone Alert Days Source: EPA

  4. State Energy Office • Created During Arab Oil Embargo: 1973 • Department of Administration • Ideal Agency: State Construction, Motor Fleet, Property, P&C Divisions • Lead Agency for Energy Programs and Services in North Carolina

  5. State Energy Office • Energy Efficiency • Universities, State Agencies • Local Governments, Schools & NPOs • Industrial and Residential • Energy Emergencies • Alternative Fuels • Renewable Energy • Solar, Wind, Hydro and Biomass

  6. Cost of Energy Imports $7 Billion Petroleum975 TBtu Natural Gas236 TBtu Coal706 TBtu Nuclear 408 TBtu 10 TBtu 10 TBtu 408 TBtu 6 TBtu 696 TBtu 969 TBtu 226TBtu ELECTRIC POWER GENERATION Electricity 409 TBtu 10TBtu 23 TBtu SolarThermal1 TBtu Hydro33 TBtu Wood, Waste, Biomass 96 TBtu Electrical Losses 734 TBtu SO247 tons NOx312 tons CO257 million tons CO269 million tons NOx319 tons SO2 636 tons Energy Flows In North Carolina

  7. Efficiency’s Contribution Actual Energy Use Source: Alliance to Save Energy, 2002. Energy efficiency’s contribution to our national energy supply National Energy Supply (Quadrillion BTUs) Efficiency’s contribution is 41 quadrillion BTUs, spread across all the sectors. This is equivalent to 836 power plants, each operating at 80% capacity, 35% efficiency and having 700 MW of capacity.

  8. Implementing the NC Energy PlanForecasting Energy and Environmental Benefits • Base Case Energy Use m Transportation Savings m Industrial Savings m Commercial Savings m Residential Savings • Energy Efficient Scenario • Reduces energy use 13% • Reduces CO2 72 million lbs/year, • Reduces SOx346,000 lbs/year • Reduces NOx 115,000 lbs/year

  9. NC Energy Policy Council • Developers of New State Energy Plan • 18-member Council advises Governor & General Assembly on Energy Policy • Legislators (4), NCUC, Cabinet Agencies (4), Energy Providers and Sector Reps • Staffed by State Energy Office

  10. State Energy Plan • First Energy Plan since 1992 • Strong Focus on Energy Efficiency, Renewable Energy and Alt. Fuels • 18 month process (hearings, experts) • 92 Recommendations • 15 Top Priorities for 2003-05

  11. Next Steps for the Energy Plan • SEO: Lead Agency for Implementation • Guide for Future SEO Programs • Oversight by Energy Policy Council • Legislative Proposals to Gen. Assembly • Presentations to Key Commissions, Boards and Agencies • Review and Revise in 2 Years

  12. Implementing the Recommendations • Annual Progress Report to Governor and General Assembly • Energy Savings to be Tracked and Program Impact Evaluated • Additional Research to be Conducted on Selected Recommendations

  13. The EPC’s Top Fifteen:Energy and Economic Issues • (1) Commerce and SEO support Energy Efficiency and Renewable Energy-related Economic Development • (2) SEO should convey energy research to Commerce for recruitment strategy • Status: SEO has funded ASU Energy Center to develop info on jobs and economic impacts with Commerce guidance.

  14. Energy and the Environment • (3) DENR – Create Greenhouse Gas (GHG) Registry • Status: Policy options developed and emphasize: • Voluntary approach • Point and non-point sources included • Third party verification • Technical Assistance for participants • Goals for absolute reduction of GHG

  15. Alternative Fuels from Biomass • (4A) Develop Alternative Fuel Industry through dedicated funding & matching grants • (4B) All 100 Counties with infrastructure by 2007 • (4C) Funding: $1-2 increase in vehicle registration fee

  16. Alternative Fuels: Status • Alt. Fuel Vehicle Demonstration Center dedicated on November 7, 2003 • SEO funding pilot Incentive Programs to encourage fueling stations, vehicle purchases and competitive fuel prices • 75% AFV federal purchase requirement for state vehicles: Motor Fleet

  17. Alternative Fuels: Status • AEC and SEO developing hybrid buses • Clean Cities Programs: Triangle, Charlotte, & Asheville (new) • DOT leading biodiesel user (4 million gallons since 2000 without incident) • EV Challenge and Model Fuel Cell Car Programs for Grades 6-12

  18. Alternative Fuels from Biomass • (5) Pursue strategies to convert animal waste into environmentally sound energy sources. • Status: Ethanol from Swine Waste Project underway and NC Biomass Conference held October ’03.

  19. Alternative Energy Sources • (6) General Assembly should consider adopting net metering for all utilities. • Status: Related to NC GreenPower program development and a NCUC docket, discussions are underway on net metering and interconnection issues between utilities and renewable energy advocates and generators.

  20. Alternative Energy Sources • (7) GA should evaluate a Renewable Portfolio Standard (RPS) that complements NC GreenPower Program. • Status: SEO has contracted with ASU Energy Center to analyze economic impacts of various RPS scenarios.

  21. Alternative Energy Sources • (8) GA should reexamine Ridge Law as it pertains to wind energy. • Status: • SEO and ASU have developed wind maps for mountain region and are studying impacts on endangered plants and animals. • Public opinion survey shows strong support for wind development. • Similar work in coastal area now starting.

  22. Alternative Energy Sources • (9) SEO should propose incentives, regulatory measures, and administrative measures to develop renewable energy • Status: • SEO strongly supporting and funding NC GreenPower Program. • SEO funding NC Solar Center to start green builder program and daylighting consortium. • SEO funding ASU to analyze economic impacts of solar DHW on new residential construction.

  23. NC GreenPower Participants $4.00 100 kWh electricity per 100 kWh • Renewable Generators • Solar, wind, biomass How NC GreenPower Works • NC Utilities • Sign up customers • Billing and collection • NC GreenPower • Contracts with • generators • Marketing • Administration $3.25 $4.00

  24. Disclosure • (10) GA should require utilities to disclose fuel mix and emissions statistics by bill insert and website. • Status: NC GreenPower Program now determining levels of disclosure needed to maintain certification. Briefing paper, with recommendations for GA, to be considered by EPC.

  25. Energy Use in the Public Sector • (11) State agencies and universities should reduce energy consumption by 4% annually, or 20% by 2008. • Status: • SEO’s Utility Savings Initiative working closely with 17 universities and 25 agencies. • Energy plans in place and $1+ million in rate/billing savings . • 2004 features roll-out of $50 million Performance Contracting program.

  26. How do energy efficiency investments compare to other investments? 10 year average annual return

  27. Energy Use in the Public Sector • (12) SEO and SCO should evaluate energy savings from new life cycle cost analysis requirements • Status: evaluation of random sample of recently constructed state buildings, using data from State Construction Office, has been initiated.

  28. Energy Use in the Public Sector • (13) Facilitate local governments to finance energy efficiency and renewable energy projects (loans, PC, bundling). • Status: • DPI and SEO will co-sponsor development of energy plans for K-12 schools systems. • Local governments invited to USI and Performance Contracting training. • Outreach and technical assistance now being provided to local governments. • Loan program available to local governments.

  29. Energy Use in Residential Sector • (14A) NC should support a strong low-income weatherization program. Should review effectiveness of programs and analyze opportunities for improvements. • (14B) SEO should develop other programs to address energy efficient housing in low-income sector.

  30. Energy Use in Residential Sector • Status: • SEO formed Low-Income Program with $1 million from GA • Manufactured Housing Efficiency Program at Greenville Utilities Commission • Efficient New PHA Construction with AEC • PC Program for PHA’s starting now • RFP to be issued in May, 2004

  31. Funding for Energy Programs • (15) The General Assembly should review options, such as a Public Benefits Fund (PBF) or other means, to enable funding of recommendations in the State Energy Plan. • Status: Survey of other PBFs has been completed. Now preparing analysis of economic and energy impacts for review by Energy Policy Council.

  32. For More Information State Energy Office 1340 Mail Service Center Raleigh, NC 27699 800-662-7131 919-733-2230 919-733-2953 (fax) www.energync.net Larry.Shirley@ncmail.net Sharon.Stroud@ncmail.net

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