Division of Energy Resources

1. Division of Energy Resources GEFA Georgia Environmental Facilities Authority

2. GEFA Overview GEFA was created in the 1980’s as a vehicle to provide low interest financing to cities and counties The Office of Energy Resources was merged into GEFA in the early 1990’s and became the GEFA Division of Energy Resources

3. Energy Funding Through Two Broad Programs Weatherization Assistance Program State Energy Program

4. Weatherization Assistance Program Provides energy conservation measures to low income households throughout Georgia. Income based 2005 Funding: $2,940,956 US Department of Energy $2,677,363 US Department of Health and Human Services $1,100,000 Georgia Power Company

5. State Energy Program Serves as a catalyst for energy efficiency and energy conservation programs statewide 2005 Base Funding $1,018,000 US DOE Competitive Grants: leveraged $486,000 from public and private sources to gain additional $499,000 Oil Overcharge Funds from previous year settlements $1.9 million balance

6. Enabling Legislation The Division shall have the authority and responsibility to do the following: • educate other agencies and the public on energy matters, with emphasis on energy consumption trends and their social, environmental and economic impact; conservation and energy efficiency and alternative energy technologies

7. Enabling Legislation • Collect and analyze data relating to past, present and future consumption levels for all sources of energy and report such findings to the Governor annually. Such reports shall make recommendation on actions which would further the purposes of energy conservation and management.

8. Energy and Environment Energy and Environment Task force initiated in 2000 Representatives from twelve state agencies meet quarterly to discuss issues pertinent to energy and the environment

9. Energy and Environment Program Manager Secured funding through competitive grant with DOE to fund full time position to focus on integration of energy and environment Reinforced work initiated by the task force and expanded GEFA efforts into environmental arena

10. Comprehensive Energy Plan for the State of Georgia The Task Force determined that the State should develop an energy plan and supporting policy that incorporates specific principles and that will generate economic, environmental, and energy security benefits

11. Data for a Comprehensive Energy Plan A lack of Georgia specific data was identified as a key weakness in developing a comprehensive energy plan A Technical Economic Potential Study would provide framework from which to build a plan

12. Technical Economic Potential Study GEFA retained ICF Consulting to evaluate Georgia’s potential for cost effective and achievable energy efficiency in the residential, commercial and industrial sectors. Study had three primary elements: Estimate Achievable Energy Efficiency Potential Estimate Public Benefits of Energy Efficiency Review Policy Options

13. Energy Efficiency Defined Technical Potential: Estimate of the savings that could be realized if energy efficiency measures were applied in all technically feasible instances, regardless of cost Economic Potential: Subset of technical potential that is cost effective Achievable Potential: Energy savings that can realistically be achieved through program and policy interventions

14. Two concepts are important in order to put estimates of achievable potential in the proper context: Naturally Occurring Conservation: Due to improvements in efficiency standards, natural market of adoption of efficiency equipment, and existing program intervention some conservation will occur without additional policy Energy Efficiency Policy Target: Represents achievable potential above and beyond. All estimates of achievable potential expressed as energy efficiency policy targets – achievable less naturally occurring

15. Results – The Cost-effectiveness of Energy Efficiency • In short, capturing this potential would be less expensive than producing the energy.

16. Results – Impact on Power Sector • Capturing energy efficiency potential reduces the need for new generating capacity. • Some of the reductions could come outside of Georgia

17. Results – Impacts on the Economy • Investment in energy efficiency generates a net gain for the economy in terms of employment and personal income • The results are sensitive to assumptions regarding the source of funds for the energy efficiency programs, but jobs increase under all assumptions.

18. Georgia Specific Energy Data Georgia specific data not readily accessible Multiple databases not coordinated

19. Goalsof GEFA Data Collection • Consolidate GA-specific data in a single source • Incorporate energy, economic, and environmental data (inter-agency coordination) • Create database of State facility electric and natural gas accounts • Publish annual energy data summary of consumption, generation, and trends • Respond to specific data requests

20. Inter-agency Cooperation Creation of State facilities database • Square footage, billing/usage information Coordinate collection and modeling efforts • EPD air quality models require generation info • Avoid overlap, share results between DOT, GRTA, GEFA Contact GEFA to address specific requests

21. Rate Analysis Project Overview Recognize State as a single customer Obtain state facility rate and energy usage information from various utilities Create a database to permit state agencies to track expenditures Create a centralized database to access all State information to permit data analysis and rate change implementation

22. Current and Previous Annual Year Electric Costs

23. Projected Savings Utilities savings of $1,965,925 annually have been identified

24. Rate Analysis Project Next Steps Energy efficiency initiative for State facilities Database completion and refinement Rate Analysis Phase II Provide strategic energy management assistance Build database of all state facilities to target future energy efficiency efforts

25. Public Service Commission GEFA / Energy intervened in the Integrated Resource Planning (IRP) hearings in spring and summer of 2004 to try to elevate potential for demand side management (DSM) GEFA /Energy participated in the DSM working group directed by the PSC to develop options for consideration

26. DSM Initiatives Statewide “fuel neutral” Energy Star Home Program is directed at growth areas at it applies to new construction Energy Star Appliance Program uses market forces and market techniques to encourage the purchase of more energy efficient appliances while establishing partnerships across the manufacturing and retail sectors

27. DSM Initiatives The Duct Sealing and Infiltration Control Program is the implementation of the only measures to pass all three screening tests and uses an innovative marketing strategy designed to minimize cost while maximizing effectiveness The Home Inspector Program is an innovative program that seeks to educate home inspectors to the benefits of DSM so that they can convey additional recommendations to potential homebuyers at the time of home purchase

28. EPA Clean Energy-Environment State Partnership Program Georgia is a pilot state in this new effort to encourage states to develop and implement goals and a robust plan for using existing and new energy policies and programs to improve air quality, reduce greenhouse gas emissions and enhance economic development This initiative will build on the foundation developed through the Energy and Environment Task Force

29. Challenges and Opportunities Encourage and guide development of a State Energy Plan and accompanying policies Become THE repository for Georgia Energy Data Continued presence with Public Service Commission Proceedings Secure funding for strategic energy management assistance for State facilities

30. For additional information: Data Project: Rich Ross richard@gefa.ga.gov 404 962 3031 Technical Economic Potential Study and Rate Analysis Project: Kevin Kelly kevin.kelly@gefa.ga.gov 404 962 3053 Elizabeth Sparrow Robertson esr@gefa.ga.gov 404 962 3007