Doubling Energy Productivity by 2030

On September 16, the Department of Energy, the Council on Competitiveness, and the Alliance to Save Energy released Accelerate Energy Productivity 2030. This collaborative report responds to President Obama’s goal of “cut[ting] in half the energy wasted by our homes and businesses over the next 20 years.” While the goal of doubling energy productivity by 2030 is a “significant challenge,” the report concludes that it is an attainable goal and provides a roadmap for doing so.

Is energy productivity the same as energy efficiency? Not quite. Energy productivity increases economic output per unit of energy input, whereas energy efficiency focuses on reducing energy input. Energy productivity is measured as the ratio of economic output (gross domestic product (GDP)) to primary energy use on an annual basis.

Based on a series of stakeholder discussions, the report suggests steps that governments (at all levels), businesses, utilities, higher education institutions, and households can take to reduce energy consumption while supporting economic growth.

For electric utilities, the report focuses on (1) grid infrastructure and (2) rate design.  Grid infrastructure includes using smart grid technology, reducing losses from outages, improving electric generating unit heat rates (noting that the electric sector is the second largest electricity consuming industry in the U.S.), and incorporating demand-side energy efficiency.  On rate design, the report acknowledges that there will not be a one-size-fits-all approach given the variety of business models for the construction, ownership, and operation of grid infrastructure.  However, it projects that advanced rate structures have the potential to increase investment in distributed energy resources and deploy these resources in a way to maximize benefits to the entire system.

The report identifies a variety of ways that local governments can pursue increased energy productivity.  First, local ordinances can be revised to promote distributed generation sources through efforts such as installation targets and tax incentives, as well as to encourage efficiency in new construction and retrofits.  Second, local governments can increase transparency around building energy use by requiring disclosure, a strategy that has been shown to reduce utility expenditures.  Third, local policies can gather stakeholders to focus on attracting new businesses that increase energy productivity.  And last, through community and transportation infrastructure planning, local governments can promote energy productivity through the design of communities.

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Clean Power Plan Expected to be Published in October

Earlier today EPA Administrator Gina McCarthy confirmed statements made in an EPA/DOJ D.C. Circuit filing that the CPP was sent to the Federal Register on September 4, 2015, and that publication should occur in October.  Senator Jim Inhofe (R-Okla.) raised the timing issue during this morning’s Senate Environment and Public Works Committee oversight hearing on the Gold King mine waste-water spill.  The video of the hearing can be found here.

In relevant part, at 54:44 in the video, Senator Inhofe raises the issue:

Sen. Inhofe: While you’re here, the Department of Justice recently told a federal court that EPA would submit the final carbon rules to the Federal Register by September 4th and that publication would occur by late October. Did the EPA submit the rules to the Federal Register by September 4th?
Admin. McCarthy: I’m sorry, sir, I don’t have those numbers in my head. I didn’t expect this question.
Sen. Inhofe: Well I knew that, but it’s very significant though… we need to know. That was the deadline that was given and whether or not you complied with that deadline.
. . .
Sen. Inhofe: Are you aware that a delay in publication until the end of October interferes with the ability of Congress and the public to legally challenge the rules before the big show in Paris?[*]
Admin. McCarthy: Sir, I am aware that both you and I want this to get in the Federal Register as soon as possible.

And later, at 1:30:45, Administrator McCarthy follows up and confirms the dates. 

* The “big show in Paris” refers to the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21/CMP11), which is scheduled to be held in Le Bourget, France (a Paris suburb) from November 30 to December 11, 2015.

 

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DOE’s Quadrennial Technology Review

On September 10, the Department of Energy released its second Quadrennial Technology Review (2015 QTR). A robust 505 pages, the 2015 QTR examines the current status of and current and future challenges facing the nation’s energy system. It also examines research, development, demonstration, and deployment (RDD&D) opportunities across energy technologies that can help address these challenges and create secure, resilient, economically efficient, and environmentally responsible energy systems. The QTR breaks down the analysis of the nation’s energy system into analyses of six individual sectors:
(1) the electric grid; (2) electricity production; (3) residential and commercial buildings; (4) manufacturing; (5) fuels, including fuels for electricity production and for transportation; and (6) transportation.  The first QTR, which was released in 2011, is available here.

On a related note, in April, 2015, DOE released the first installment of the Quadrennial Energy Review (2015 QER).  The 2015 QER examines the issue of modernizing the nation’s energy infrastructure, and is focused on the nation’s energy transmission, storage, and distribution systems. The report includes an analysis of opportunities created by these systems to promote a clean, secure, and economically competitive energy future, and potential vulnerabilities in the systems.  The 2015 QER also proposes policy recommendations and investments to replace, protect, expand, and modernize infrastructure.

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Court Denies Petitions of States and Peabody Energy

On September 9, the D.C. Circuit denied the emergency petitions of West Virginia (and other state petitioners) and Peabody Energy Corporation that asked for a stay of the Clean Power Plan. The court found that the petitioners had not met the stringent standards applicable to such requests.

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NARUC & NACAA Compliance Tools

Many entities prepared analyses or developed compliance guides after the Clean Power Plan was proposed but before the final rule was issued. Two such tools that we want to share are from the Eastern Interconnection States Planning Council (EISPC), a project of the National Association of Regulatory Utility Commissioners (NARUC), and the National Association of Clean Air Agencies (NACAA). These tools, as well as others, may prove useful for those monitoring or engaged in the development of implementation plans in their states or at the federal level via EPA’s proposed federal plan requirements.

EISPC’s Multistate Coordination Resources for Clean Power Plan Compliance was released in June 2015. Recognizing the barriers to coordination between states on Clean Power Plan compliance and the potential economic and program benefits to be gained from such coordination, EISPC strives to lower those barriers. This package includes a multistate planning checklist, a legislative language examples checklist (under development), and sample memorandum of understanding.

NACAA released its tool entitled Implementing EPA’s Clean Power Plan: A Menu of Options to help states develop compliance plans. On the menu are in-depth looks at a variety of approaches to reducing greenhouse gas emissions from power plants, ranging from policy to technology options.

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