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Clean Energy, A Strong Economy, and a Healthy Environment

Clean Energy, A Strong Economy, and a Healthy Environment. European Insulation Manufacturers General Meeting. William J. Keese Western Governors’ Association June 1, 2007. Western Governors’ Association. Represents governors of 19 States and 3 U.S. Flag Pacific Islands

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Clean Energy, A Strong Economy, and a Healthy Environment

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  1. Clean Energy, A Strong Economy, and a Healthy Environment European Insulation Manufacturers General Meeting William J. Keese Western Governors’ AssociationJune 1, 2007

  2. Western Governors’ Association • Represents governors of 19 States and 3 U.S. Flag Pacific Islands • Address – Policy and governance issues in the Western U.S. • Focus - natural resources, the environment, human services, economic development, international relations and state governance.

  3. Energy Policy - Clean and DiversifiedDriven by the Environment Reduce Greenhouse Gas Emissions Decrease reliance on fossil-fired generation through the use of energy efficiency and renewable resources Balance new and traditional technologies to strengthen economic growth, stabilize energy prices, maximize reliability, and mitigate environmental impacts

  4. Clean and Diversified Policies The CDEAC Report • Bring 30,000 MW of new clean energy online by 2015 • Increase energy efficiency 20% by 2020 • Meet transmission needs over the next 25 years Western Governors sought technically and financially viable incentive-based recommendations to:

  5. 5,000 – 54,000 MW 48,000 MW Potential Generation Capabilities in the Western U.S. - 2015 Biomass 10,000 MW Solar 8,000 MW Geothermal 5,600 MW Advanced Coal 5,000 MW

  6. Clean and Diversified Energy -Energy Efficiency is First • Easiest, cheapest and least controversial strategy • No need to wait for “untested” and expensive technologies • Successful implementation of energy efficiency requires some governmental intervention • National and regional energy efficiency standards and building standards • Tax credits for energy efficiency investments

  7. Clean and Diversified Energy -Renewable Energy is Next • Renewable energy sources can compete with other energy sources • Short-term financial support needed • Need to extend production and investment tax credits • Increase cap on residential investment tax credit • Clean Renewable Energy Bonds for public power and cooperatives • Development of adequate transmission is a must

  8. United States Geothermal Resources

  9. Clean and Diversified Energy -Fossil Fuels Are Still Important • Natural gas is a “clean” energy option but other fossil alternatives must be pursued • Coal must be a part of a clean energy future • WGA supports development of zero-emission technologies • R&D critical to realizing clean energy goals

  10. Moving into Implementation - CDEi • Governors called for implementation of the CDEAC’s recommendations • Formation of a D.C. strategy group to push for adoption of federal recommendations • Creation of partnerships and formal coalitions • Western Renewable Energy Generation Information System (WREGIS) development

  11. States are Leading the Way • 23 states and the District of Columbia have Renewable Portfolio Standards • Arizona: 15% by 2015 • California: 20% by 2010, with 3000 MW Solar goal • New Mexico: Targeting 15% by 2015, 20% by 2020 • Washington: 15% by 2020 • National standard being debated in Congress

  12. States are Leading the Way • West Coast Governors Global Warming Initiative • 15% savings: Residential buildings by 2015 • California Green Building Initiative • 20% savings: Non-residential standards by 2015 • Seven Western States • State buildings built to LEED Silver standards

  13. Energy Action PlanCalifornia’s Loading Order First resource of choice: all cost-effective energy efficiency and demand response. Enacted in 2003 After all energy efficiency and demand response is deployed, utilize renewables and distributed generation If energy efficiency, demand response, renewables, and distributed generation cannot satisfy increasing needs, California can turn to clean and efficient fossil-fired generation. The Loading Order is integrated into all major CPUC decisions governing energy policy and procurement.

  14. 45,000 ~15% of California Annual Energy Use: 2003 40,000 35,000 30,000 25,000 Utility Efficiency Programs at cost of ~1% of electric bill GWh/year 20,000 15,000 Building Standards 10,000 Appliance Standards 5,000 0 2000 1995 1975 1980 1985 1990 Energy Savings from California Efficiency Programs and Standards

  15. Forecast Crisis Performance Incentives Profits decoupled from sales IRP Market Restructuring 2% of 2004 IOU Electric Revenues Public Goods Charge California IOU’s Investment in Energy Efficiency

  16. Additional Information To learn more about the WGA and these Initiatives, please visit www.westgov.org

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