Appendix Putting H.R. 2454 in Context

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Appendix Putting H.R. 2454 in Context
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President Obamas Energy / Environmental Views
Renewable Portfolio Standards
Climate Change
25 by 2025
80 reduction by 2050
H.R. 2454 20 by 2020
H.R. 2454 83 reduction by 2050
Smart Grid
Energy Efficiency
Increased Government Support
Overhaul of Federal Efficiency Codes
In H.R. 2454 and stimulus package
In H.R. 2454
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Benefits of Allocations

• Reduces customer cost impact significantly
• Customers pay for costs of carbon reductions, but
  not for cost of allowed emissions
• Benefits all electricity users, including
  business and commercial customers
• Can target low-income customers
• Accommodates regional differences in cost and
  electricity use

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Auctioning Allowances Would Sharply Increase
Costs to Customers
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Financial Impacts of Climate Change

• EPA
• Household spending would drop by about 140 /
  year by 2020 gas prices would increase 33 cents
  / gallon by 2030
• CRAI (for National Black Chamber of Commerce)
• By 2015 730 / year less in household purchasing
  power, electric rates would increase 7.3 by
  2015 gas prices by 12 cents / gallon
• Heritage Foundation
• By 2035 electricity rates would increase by 90,
  gas prices by 74, household energy bills by
  1500
• Its ALL About the Assumptions!

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Percentage Black Population-Electricity Costs By
State
Retail Cost Per kWh
ME 0.6
WA 3.3
ND 0.6
MT 0.3
MN 4.1

OR 1.7
WI 5.7
ID 0.3
SD 0.8
MI 14.
WY 0.8
PA 10.
IA 2.2
NE 3.6
OH 11.7
IN 8.1
NV 6.9
IL 14.7
5.0
UT 0.8
CA 6.2
VA 19.3
CO 4.0
KS 5.1
MO 11.2
KY 6.8
NC 21
TN 16.3
NH 0.8 VT 0.5 MA 6.0 RI 5.5
CT 9.3 NY 15.8 NJ 13.1 DE
19.8 MD 28.5 DC 57.8
SC 28.9
OK 7.1
AR 15.
AZ 3.0
NM 2.3
average retail price per kilowatt hour
through CY 2006
GA 28.7
AL 26.0
MS 37
LA 32.5
TX 11.0
FL 15.1
lt 6.5 gt 6.5 - lt 8.0 gt
8.0 - lt 9.5 gt 9.5 - lt
11.0 gt 11.0 Hydro
20.7
12.9
Source Energy Information Administration March
2007
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Important Issues Needing Attention

• Targets timetables
• Timing of transition to full auction
• Price collar / safety valve
• Offsets
• Combined efficiency and renewable energy standard

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Planned capacity additions reflect state RPS
requirements
Planned Capacity Additions to 2020 (352 GW)
US Generation Capacity in 2008 (1,061 GW in
Service)
Source Ventyx Global Energy and Bernstein
Analysis

• Non-hydro renewables make up 4 of US capacity
  today but 34 of planned capacity additions
  through 2020.

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Wind dominates proposed renewable capacity
additions
Planned Renewable Capacity Additions to 2020
Source Ventyx Global Energy and Bernstein
Analysis

• Wind accounts for 78 of planned renewable
  capacity additions. Solar thermal accounts for 8
  and solar photovoltaic for another 2.
• The tendency of wind to blow during off-peak
  hours limits its usefulness on power grids,
  motivating utilities to explore ways of
  increasing the use of solar resources available
  during hours of peak demand.

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U.S. Renewable Resources
Source National Renewable Energy Laboratory
Source National Renewable Energy Laboratory
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Transmission Congestion Dramatically Increasing
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Energy Efficiency Can Lower BillsHelp Address
Climate Change

• Average US household owns 24 consumer electronic
  products
• 2 DVRs use as much energy in 1 year as a
  refrigerator
• Play Station and X-Box use more electricity than
  a PC
• PCs and TVs now account for 10 of a homes
  electricity usage
• 99 of these products must be plugged in or
  recharged
• 42 Plasma TV uses more than twice as much as a
  standard 27 TV
• More efficient use of energy could significantly
  reduce energy bills
• Need to educate all consumers about how to save
  energy and use it more efficiently

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Intensified National Commitment To Energy
Efficiency Is Needed

• Aggressive campaign for technologies
• Smart buildings
• Smart appliances
• Smart electric meters and grid
• Smart rates
• Commercializing plug-in hybrid electric vehicles

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Total U.S. utility spending on energy efficiency
programs 2.5 billion in 2007
Source The Edison Foundation Institute of
Electric Efficiency
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Carbon Capture and Storage Challenges

• Capture
• Develop cost-effective means of capturing CO2
  from combustion
• Transport
• Ability to access current gas and CO2 pipeline
  structure
• Regulatory framework
• Liability concerns
• Storage
• Permitting and siting
• Liability concerns
• Full-scale demonstration projects
• Public education and acceptance

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Smart Grid Sensing and Measurement
Advanced Sensors
Remote Monitoring of Expensive Equipment(e.g.
Transformers)
Smart Meters
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Smart Grid Integrated Communications
Examples PowerlineBroadband over Powerline
(BPL) CellularRadio Frequency (RF) Satellite
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Smart Grid Advanced Control
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What is the Smart Grid?

• An advanced, telecommunication / electric grid
  with sensors and smart devices linking all
  aspects of the grid, from generator to consumer,
  and delivering enhanced operational capabilities
  that
• Provide CONSUMERS with the information and tools
  necessary  to be responsive to electricity grid
  conditions (including price and reliability)
  through the use of electric devices and new
  services (from smart thermostats to PHEV)
• Ensure EFFICENT use of the electric grid
  (optimizing current assets while integrating
  emerging technologies such as renewables and
  storage devices)
• Enhance RELIABILITY (protecting the grid from
  cyber and natural attacks, increasing power
  quality and promoting early detection and self
  correcting grid self-healing)

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Opportunities - Green Jobs

• Energy Independence and Security Act of 2007
• 125 million / year to create a worker training
  program, special focus on opportunities for low
  income people
• American Reinvestment and Recovery Act (Stimulus
  Bill)
• Significant funding for a broad range of programs
  including energy efficiency, renewables,
  climate change, smart grid
• Workforce training
• Renewables - Roof-top solar heating, water,
  energy
• Meeting the increasing state, federal and
  consumer requirements
• Energy Efficiency
• Energy audits, retrofits, new technologies, green
  building standards
• Efficiency management data mining

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Opportunities - Green Jobs

• Smart meters / smart grid
• Replacing legacy systems with new technologies
• Demand response
• Provide consumers and utilities with new tools to
  manage demand
• Plug-in Hybrid Electric Vehicles
• Need programs to develop and attract new talent