SWANNA Conference

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SWANNA Conference
The New Energy Reality A Time To Act

• April 16, 2009
• Larry Shirley
• State Energy Office
• NC Department of Administration

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State Energy Office

• Created in 1973 by the Arab Oil Embargo
• Department of Administration
• Lead State Agency for Energy with a focus on
• Energy Policy
• Energy Efficiency
• Renewable Energy
• Alternative Fuels
• Energy Emergency Response
• Funding State Appropriations, PVE and DOE Funds

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State Energy Office

• Utility Savings Initiative for Public Buildings
• State Fleet Efficiency and Fuels
• Energy Loan Fund
• Industrial Efficiency
• Solar Wind

• Alternative Fuels
• Biomass Energy
• Manufactured Housing
• State Energy Conference
• Energy Audits TA
• Consumer Outreach

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Energy Trends
North Carolina Energy Outlook, 2003
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Projected Energy Use in North Carolina (Billion
Btu)
28 total increase from 2005 to 2020 1.7 per
year
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New Oil . . . ?
Source Campbell, C.J. Oil Depletion The Heart
of the Matter. Association for the Study of
Peak Oil and Gas, October 2003.
(http//www.hubbertpeak.com/campbell/TheHeartOfThe
Matter.pdf)
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World Oil In Perspective
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Where The Oil Is
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US Petroleum Production vs. Imports
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Ike, Gustav, Katrina and Rita

• 29 of Refinery Capacity Brought Down
• 66-100 of Gulf oil production shut-in
• 54-95 of Gulf natural gas production out
• 15-20 Natural Gas processing plants down
• Impacts spill over to economy
• NC vulnerable reliant on two pipelines with
  little storage

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Ozone Nonattainment Areas
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Air Pollutions Impact on HealthFocus North
Carolina

• EPA studies show
• 1/3 to 1/2 asthma in NC due to air pollution.
• Every summer in NC, air pollution causes an extra
  240,000 asthma attacks, 6,300 emergency room
  visits, and 1,900 hospital admissions.

• (Source Clay Ballentine, M.D., Asheville, NC)

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SAMI
Shining Rock - Mt. Pisgah Vista Class 1
Wilderness
Shining Rock - Cold Mtn. Vista Class 1
Wilderness
Linville Gorge Class 1 Wilderness
Joyce Kilmer Slickrock Class 1 Wilderness
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Acid Rain DevastationGrandfather Mountain, NC
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Global Warming
USEPA, USDOE
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Green House Gas Emissionsin North Carolina
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Effect of Suite of CAPAG Mitigation Options
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Sea Level Rise andClimate Change
Ben Poulter, Duke University Sam Pearsall, The
Nature Conservancy
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North Carolina

• Can cut energy use by 14 by 2018
• Can get 12.5 of its energy from renewable energy
  sources by 2021
• Can move 10 of its transportation needs to
  alternative fuels (e.g. ethanol, biodiesel,) by
  2017
• Must displace 20 of petroleum in state fleets

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Nuclear 408 TBtu
Cost of Energy Imports 17 Billion
Petroleum975 TBtu
Natural Gas236 TBtu
Coal706 TBtu
10 TBtu
10 TBtu
408 TBtu
696 TBtu
6 TBtu
969 TBtu
226TBtu
17 billion per year leaves our economy for
energy imports
ELECTRIC POWER GENERATION
Electricity 409 TBtu
10TBtu
23 TBtu
SolarThermal1 TBtu
Hydro33 TBtu
Wood, Waste, Biomass 96 TBtu
Electrical Losses 734 TBtu
SO2 47 tons
NOx 312 tons
CO2 57 million tons
CO2 69 million tons
NOx 319 tons
SO2 636 tons
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Energy efficiencys contribution to our energy
supply
National Energy Supply (TBtus)
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Americas Greatest Energy Resource
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Why Energy Efficiency? The 1st Fuel
Average Cost of New Electric Resources
Source Lazard 2008 except (a) ACEEE 2007
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A New Direction?

• Energy efficiency is the 5th Fuelthe lowest
  cost alternative and emissions-free. It should
  be our first choice in meeting our growing demand
  for electricity, as well as in solving the
  climate challenge.
• Jim Rogers
• CEO, Duke Energy

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Energy Use in the Public Sector

• SB 668 All State agencies and universities must
  reduce energy consumption by 20 by 2010 and 30
  by 2015.
• Status
• SEOs Utility Savings Initiative working closely
  with 16 universities and 25 agencies, K-12,
  community colleges, and local governments.
• 158 million costs avoided to date (state only).
• 100 million PC program.
• 3,000 employees trained.

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Utility Savings Initiative

• Rate Reviews/Utility Accounting
• Strategic Energy Plans
• Operations and Maintenance
• low/no cost measures
• HVAC controls, Boiler tune-ups
• Training
• Energy Management Diploma
• Strategic Energy Planning Workshops
• Technology Workshops

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• Performance Contracting
• Large Capital projects, inadequate RR funds
• State pre-qualified Energy Service Companies
• Energy Savings pay for the project guaranteed
• 42 million in approved projects 57 million
  in pending contracts
• Status
• N.C. Museum of Art
• 61 savings
• Downtown Govern-
• ment Complex (20M)
• UNC-G (5M)
• Dept. of Correction

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State Building Reported Data Trends

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State Building Reported Data Trends

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Upgrade and Save Program for Manufactured Housing

• Upgrade from electric furnace to high efficiency
  heat pump or Energy Star
• 17-county region in Eastern NC
• Expanded to 48 counties
• Managed by ECU, NC AT, and ASU
• Energy Costs can be 400/month/winter
• Savings of 632/winter
• Cost of 500/home
• Payback is 1-2 years

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Energy Improvement Loan Progam

• Up to 500,000 for energy conservation and/or
  renewable energy technologies
• 3 loan rate for energy conservation, 1 rate for
  renewable energy projects
• Commercial, industrial, and nonprofit
  organizations as well as local government
  entities
• Managed by State Energy Office

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By 2050 Renewable Power Will Equal Total Power
Today
Source International Energy Agency
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Solar Energy PV Cost Efficiency
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PV On Community Center

• Hargraves Community Center, Chapel Hill
• 3.2 kWac Grid Connected PV System

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PV Standing Seam Metal Roofing

• 3 kW Grid Tied PV System on NCSU AFV Facility in
  Raleigh
• Uni-Solar PVL modules

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North Carolina Solar Center

• Demonstration, Training Technical Assistance
• NCSU Solar House
• passive solar, solar water heating, PV,
  geothermal heat pump
• 70 Winter/heating

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Selling PV Energy to NC GreenPower

• 2 kW PV Array
• Grid Interconnected
• Selling Energy to NC GreenPower for 15 per kWh
• Solar DHW
• Apex, NC

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NC GreenPower
Supplementing electric generation with green
energy solar, wind, biomass, and hydro

• Pays a premium above avoided cost for green
  power
• Residential rates
• 4 per 100 kWh
• Corporate rates 2.50 per 100 kWh

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Wind Power at 50 meters
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Cost of Wind Energy Trend
1979 40 cents/kWh
2000 4 - 6 cents/kWh

• Increased Turbine Size
• RD Advances
• Manufacturing Improvements

Lake Benton, Minnesota wind farm 4 cents/kWh
2004 3 4.5 cents/kWh
Slide courtesy of NREL
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Wind Power Benefits

• 5 million kWh/yr
• 500 homes
• 500,000/yr green power, keeps in NC
• Saves 7.5 million lbs CO2
• 2nd crop for farmers
• Quiet, no water use, small footprint, no
  emissions
• 2,450-12,000 MW Potential in North Carolina

1.5 mW turbine
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Wind Power
NREL
Buffalo Mountain, Tennessee
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Buncombe County Landfill Gas Map
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Community TIES A Project of ASU Energy Center
Landfill Gas for Economic Development in North
Carolina
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• In North Carolina About 50 of LFG
  utilization is for electricity, 50 is direct
  thermal, like in these boilers.

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North Carolina Landfills

• 132 landfills in NC
• 22 operating landfill gas projects
• 10 generating electricity 18.3 MW
• 12 operating for direct thermal use
• 18 collection systems in or pending
• These 40 projects could replace use of 660
  million gallons of oil per year or generate over
  70 MW

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North Carolina is noted for novel uses of
LFG such as the Catawba Eco-Complex,
EnergyXchange Renewable Energy Center, and
Jackson County Green Energy Park
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Landfill Methane
Energy Xchange, Burnsville, NC
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Buildings, greenhouses, glassblowing and ceramics
kiln heated by landfill methane gas.
Regional Conservation District, Cultural
Resources, EPA, USDA, Foundations, Community
College
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2008 - Testing Done for LFG Quantity Quality
Robeson, Scotland, Columbus, Rockingham,
Edgecombe, McDowell, Cleveland, others,
County Hired Landfill Gas Project Managers in
McDowell, Columbus, Scotland, Rockingham
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Some Investigated Uses For LFG

• Robeson Ethanol Plant
• Cleveland Feed Mill, Replace 60,000/mo/NG
• Montgomery LNG/CNG for trucks
• Bertie - Perdue Plant replace 12,000 gal/day/oil
• Edgecombe Sweet potato dehydration plant
• Columbus Electricity, greenhouses, algae to
  biodiesel
• Rockingham Electricity, greenhouses,
  energy/industrial park
• Scotland Feed mill, glass plant
• Wilkes Greenhouses, fire training, electricity
• Watauga Combined heat and electricity
• Rutherford Greenhouses, cold storage

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Key State Legislation

• Tax Credits
• SB3 Renewable Energy and Energy Efficiency
  Portfolio Standard
• SB668 Energy Efficiency in State Buildings
• Climate Change Commission on Global Warming
  CAPAG

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Global Warming Commission

• Legislative Commission
• Will consider targets and policies for GHG
  reductions
• Using recommendations from Climate Action Plan
  Advisory Group diverse group of stakeholders

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NC Tax Credits

• 35 for Renewable Energy Applications
• Up to 2.5 million/application for industrial and
  commercial
• Up to 10,500 for consumers
• Can be stacked on federal credits (30)
• Pass through for Nonprofits and Government
  Entities

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Renewable Energy and Energy Efficiency Portfolio
Standard

• First REPS in Southeast
• Build upon NCUC sponsored study by LaCapra and
  Associates
• Creates an REPS with final requirements of 12.5
  by 2021
• 5 of the 12.5 can be Energy Efficiency (i.e.
  renewable floor of 7.5)
• 10 for Coops and Munis

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State Energy ProgramARRA

• 3.1 billion provided for State Energy Program
  (SEP)
• SEP received 50 million in federal year 2008-09
• Funds provided to State Energy Offices
• State Energy Office to receive 75.9 million

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Potential Focus AreasState Energy Program

• North Carolina has identified five focus areas
  for utilizing ARRA funds through our State Energy
  Program
• Supporting Small Businesses and Industry through
  Energy Savings
• Growing North Carolinas Green Workforce
• Improving Government Energy Efficiency
• Promoting Residential Energy Efficiency and
  Renewable Energy
• Fostering Renewable Energy Technology and
  Resource Innovation

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Stimulus Bill Energy Efficiency and
Conservation Block Grants

• 3.2 Billion
• 400 Million Competitive
• 2.8 Billion
• 68 to Larger Cities and Counties
• 16 to Smaller Cities and Counties
• 12 to State Energy Program
• 2 to Indian Tribes
• Renewable Energy and Energy Efficiency

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EECBG Direct Funding for NC 58,050,300
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EECBG Funding for NC

• Funding for Smaller Cities and Counties
  12,555,180
• Funding Likely to be Competitive
• Funding for State Energy Program 8,370,120

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EECBG Timeline

• State Energy Office application is due May 26,
  2009
• Directly funded Cities and Counties
  applications are due June 25, 2009
• The Secretary of DOE has up to 120 days to review
  and comment on applications
• The SEO shall provide subgrants no later than 180
  days after the date on which the Secretary
  approves the application.
• Funds are required to be obligated within 18
  months
• The period of performance is 36 months.

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NC Arboretum 1st State High Performance Building

• Daylighting, green roof, solar hot water,
  rainwater catchment, geothermal heat pump, and
  natural ventilation
• 10,400 ft2 building interior space
• 236/month energy bill

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The Key Benefits of Sustainable Energy

• Saves Money with Energy and Water
• Reduces Dependence on Fossil Fuels
• Lessens Impact on Environment and Public Health
• Reduces Greenhouse Gas Emissions
• Helps Build NCs Green Economy

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Contact Information

• State Energy OfficeN.C. Department of
  Administration1830 A Tillery PlaceRaleigh, NC
  27604-1376
• Mailing Address
• 1340 Mail Service Center
• Raleigh, NC 27699-1340
• 919-733-2230-telephone
• 919-733-2953-fax
• Larry.Shirley_at_doa.nc.gov