Options for OilPropane, N.Gas

1
Options for Oil/Propane, N.Gas

• Background factors
• Progress so far
• Options discussed, prior phases
• Dedicated funding options
• Next steps

2
Relevant Background Factors

• IEA World Energy Outlook 2004 59
  increase in primary energy use 2004 till 2030.
• 85 of increase from carbon-emitting fossil
  fuels coal, oil, gas.
• Two-thirds of new demand from developing world,
  but demand growing here too.

3
Background Factors, contd.

• Gas oil dominate residential heating, also
  important in nonresidential markets in RI
• Increasing gas and oil prices
• Efficient and advanced gas technologies
• Efficient and advanced oil technologies
• Weatherization opportunities remain
• Gas DSM in MA but not RI
• NORA now promotes oilheat RD, training, PR

4
Some Progress

• Energy Office stepped up to plate with 2 new
  programs
• Small CI Program
• ESCo/performance contracting program
• Gas utility agreed to extend GasNet programs to
  RI
• PPL got biodiesel program grant

5
Options Discussed Prior Phases -- Grant Approach

• Federal grant
• DOE state energy program -- renew?
• EPA small grant -- renew?
• NORA grant -- try?

6
Options Discussed (contd.)

• Increase gas DSM funding
• Requires PUC action or legislation
• Establish funding for oil gas EE
• Requires legislation

7
Dedicated Funding for Oil or Oil/Gas EE -- Options

• Electric utility collects, passes to State for
  programs
• Like RCS in past, renewables now
• Levy on usage or sales or oil or oil/gas
• All building sector usage (see draft legislation)
• Just residential (partial lift of residential
  heating fuel sales tax exemption)

8
Rough Draft Legislation

• Illustrative, preliminary concept from last phase
• Surcharge on fossil fuel usage
• Dedicated fund for oil/gas energy efficiency and
  renewables (like biodiesel)
• Suggested funding level
• Natural gas -- 0.0089/therm
• Propane -- 0.0076/gallon
• Fuel oil-distillate (heating oil) --
  0.0124/gallon
• Fuel oil-residual -- 0.0133/gallon

9
NEXT STEPS

• Expand discussion
• CLFNE, other potential intervenors/participants/ap
  plicants
• OHIRI
• Key oilheat dealers
• State economic development people
• Foundation avenues -- Pew?
• OTHER??