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California State RD&D Restructuring: Policy Impact Assessment and Future Directions

This assessment evaluates the impact of restructuring State RD&D policies on energy and environmental goals in California, outlining key principles and proposed options for the next decade. It emphasizes funding prioritization, program responsiveness, transparency, and utility involvement to support State climate and energy policies. With a focus on integrating new technologies and advancing the electric system, the analysis highlights the need for significant RD&D efforts within a limited timeframe. The conclusion suggests that implementing LAO-proposed options aligned with the guiding principles could effectively reshuffle State energy RD&D for the next ten years.

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California State RD&D Restructuring: Policy Impact Assessment and Future Directions

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  1. SCE Assessment of State RD&D Restructuring California Senate Hearing on PIER March 1, 2011

  2. Policy and Grid Advances – Drivers* GHG: 1990 levels Once Through Cooling GHG: 80% Below 1990 levels 500 MW of PV Most aggressive policies in the United States 33% RPS 20% RPS *This list is not comprehensive. Other energy policies or other drivers, e.g. R.A.M.F.I.T. or DG proposals, will also impact utility planning and operations 1

  3. Significant and complex RD&D is needed. Time is short *Representative Only

  4. SCE’s Guiding Principles for State RD&D for 2011-2020 • State RD&D funding awards should prioritize projects that directly help to meet or support State climate and energy policies and enhance electric system integration of new technologies and other advances • Program planning and administration must be knowledgeable, quick, effective, flexible and responsive to new information, policies, and technologies. • Decision-making should be transparent and inclusive of utilities • Funding for State RD&D should come from all California customers connected to the grid In SCE’s view, State energy RD&D restructuring efforts must incorporate these principles

  5. Assessment of LAO-Proposed Options Using SCE’s Principles LEGEND ? - Uncertain outcome - Principle met ?-TBD ?-TBD ?-TBD ?-TBD ?-TBD ?-TBD 4

  6. Conclusion If properly structured and executed, any of the LAO options could sufficiently restructure State energy RD&D for next ten years Key Provisions 1 2 3 4 Ensure funding for projects that support energy and environmental policy goals Revamp administrative structures and practices to ensure program responsiveness and timeliness Promote transparency and utility-involvement in program direction and project selection Ensure funding for State energy RD&D comes from all energy customers

  7. Appendix

  8. PIER Disbursements by Recipient, 2007-20091,2 3 1. Sources: CEC Annual PIER reports, 2007 – 2009. Records are for disbursements only, not “awards”! 2. $248 million total for three years. Includes electric funding of $192 million, and natural gas funding of $56 million. 3. Out of State awards likely range between 6 – 21% based on CEC reports from previous years and analysis of project lists. Some “out of State” awards likely go to projects conducted in CA.

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