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Federal Policy Impacts on California Energy Policy

Federal Policy Impacts on California Energy Policy. California Conference of Public Utility Commission Attorneys Monterey, California October 5, 2009 Commissioner Julia Levin California Energy Commission www.energy.ca.gov 916-654-4001. Today’s Discussion. Energy Efficiency Standards

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Federal Policy Impacts on California Energy Policy

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  1. Federal Policy Impacts on California Energy Policy California Conference of Public Utility Commission AttorneysMonterey, California October 5, 2009 Commissioner Julia Levin California Energy Commission www.energy.ca.gov 916-654-4001

  2. Today’s Discussion • Energy Efficiency Standards • Renewable Portfolio Standard • Transportation and Liquid Fuels • Climate Policy • Federal Stimulus (ARRA)

  3. Energy Efficiency – California • Building Standards – Title 24 • Appliance Standards – Title 20 • ~ 23 different appliances since 1977 • Zero Net Energy Buildings • Cool / White Roofs • CPUC’s Energy Efficiency Strategic Plan • - $3.1 billion over 3 years • - $175 million for Zero Net Energy Buildings

  4. Energy Efficiency – Federal • 2007 Energy Bill • - Reauthorized weatherization assistance • - Established High-performance Green Building and Zero Net Energy Building initiatives at DOE • - Increased standards for ~12 appliances • - Requires 25-30% greater lighting efficiency by 2012 to 2014 • Waxman-Markey • Building Standards: - 30% more efficient in 2012 - 50% more efficient in 2016 • Increases appliance efficiency standards for lighting, commercial furnaces, other appliances

  5. Renewable Portfolio Standard - California • SB 1078 and SB 107 require 20% by 2010 • Current statutes apply to IOUs, ESPs and Aggregators, not POUs • WREGIS provides tracking system for WECC • Governor’s Executive Order requires 33% by 2020 and includes POUs • Implementation at CARB with final rule adopted by July 2010

  6. RPS - Federal 26 States have RPS’s, but currently no federal requirement Waxman-Markey would require 20% by 2021 - would allow portion to be met through energy efficiency - similar definitions of eligible resources - no federal preemption ITC and PTC renewed Renewable Tx bill ???

  7. Vehicle Emissions / Clean Fuels -California • Federal preemption on fuel economy (CAFÉ) • Pavley Bill (AB 1493) passed in 2002, requires 30% reduction in GhGs from passenger vehicles by 2020; 12 states want to follow • Auto companies sued to stop AB 1493 • First ever Clean Air Act Waiver denied by US EPA under Bush Administration • AB 118 Clean Fuels and Technology ~ $100 million/year to invest in clean vehicle fuels/technologies

  8. Vehicle Emissions / Clean Fuels - Federal • 2007 Energy Bill raised • fuel economy standards to • 35 MPG by 2020 • Requires 4x increase in biofuels • In May, 2009, President • reached compromise with • CA and Detroit to require • 30% reduction in GhGs • and 35.5 MPG by 2016

  9. Climate Policy - California Climate Solutions Act (AB 32) enacted in 2006 Return to 1990 levels by 2020 (approx. 30% reduction from Business as Usual) Reduce emissions from electricity sector by ~ 50 MMT (out of 174 MMT) Governor ‘s Executive Order calls for 80% reduction by 2050

  10. Climate Policy - Federal EPA proposed rule to regulate GhGs under Clean Air Act - would apply to largest emitters only ACES (Waxman-Markey) requires economy-wide emissions reductions of: - 17% by 2020 - 42% by 2030 - 83% by 2050 - Electricity generation covered in 2012 - Natural gas distribution covered in 2016 - Cost containment from trading, offsets, efficiency - Preempts state and regional trading programs from 2012 - 2017, but does not prevent states from enacting caps or other reduction measures

  11. ARRA – Federal StimulusFunding for California $226 million for State Energy Program $351 million for Energy Efficiency Block Grants $35 million for Energy Star Rebates $90 million for low-income energy assistance (LIHEAP) $185 million for Weatherization Competitive Grants and Tax Credits Smart Grid and Transmission Transportation Electrification

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