From Victory to Reality: Implementing SB 221 Jen Miller Conservation Program Manager Ned Ford Energy Consultant
Mar 27, 2015
From Victory to Reality:
Implementing SB 221
Jen Miller
Conservation Program
Manager
Ned Ford
Energy Consultant
Ohio’s Current Electricity Portfolio
Source:Energy Information Administration http://www.eia.doe.gov
THE PROBLEM
Ohio ranks 4th in the country for carbon dioxide emissions
Energy costs are skyrocketing because increased worldwide demand
Over half of the coal we burn is imported from other states, and much of it is obtained through mountain top removal.
Fossil fuels = a finite resource
Other concerns: soot, smog, mercury pollution & mining impacts.
What isEnergy Efficiency?
Technologies and practices that allow us to do the same tasks using less energy
Examples:
Lighting (CFL & LED bulbs)
Space Conditioning (high-efficiency furnaces, insulation, weatherization, improved windows)
Architectural Innovations (natural light, core structure and design)
Industrial technologies (higher-efficiency water-sprays & motors)
Benefits of Energy Efficiency Powers buildings on less energy Saves consumers money Reduces our dependence on imported out-of-state coal and finite fossil fuels
• Saves/creates jobs in manufacturing sector and building and construction trades
Reduces emissions
Reduces need for new power plants
1/3 the cost of a new coal plant &1/5 the cost of a new nuclear plant
Renewable Energy
• Derived from a resource that is naturally replenished as soon as or shortly after it has been consumed.
• Low impact upon water quality, water quantity, and air quality, including C02 and other greenhouse gas emissions. Doesn’t produce toxic waste.
Our New Energy Law (SB 221) Energy Efficiency Requirements
(and potential for incentives for over-compliance) Alternative Energy Requirements Demand Response
Demand Response programs lower the amount of energy needed at the times of the day and year when energy use is at its highest; reducing costs for consumers and the need for peak capacity.
Advanced Energy Requirements
Energy Efficiency Standards
Savings Requirements: Overall, SB 221 requires utilities to achieve a
minimum, cumulative 22% reduction in sales by the year 2025; beginning with 0.3% in 2009 and 0.5% in 2010.
Penalties for failure to comply: Penalties are required if utilities fail to meet their
required annual standards. Penalties are as follows: a max of $10,000 per day, or the value of one REC (renewable energy credit) for each MW (mega-watt) of non-compliance.
Alternative Energy in SB221
Basic Requirement: By the year 2025, 25% of energy sold by investor
owned utilities in the state of Ohio must originate with “advanced” or “renewable” sources. 12.5 % of these sources must be “renewable”; the remainder can be “advanced”.
By the end of 2009, 0.25% must be renewable and 0.004% must be from solar power. 2010 - 0.50% renewable standard & 0.010% from solar.
Renewable vs. Advanced Energy:
Utilities are required to meet annual supply standards for “renewable” sources, but not for “advanced” sources.
Alternative Energy in SB221
Advanced Energy As defined in law:1) Generation efficiency technology 2) Distributed generation with cogeneration and thermal output 3) Clean coal technology, which includes the design capability to capture carbon 4) Coal technology that converts coal to a gas state, and removes pollutants to specified levels 5) Advanced nuclear or significant improvements to existing facilities 6) All fuel cells 7) Advanced waste energy facilities 8) Demand-side management and energy efficiency improvements
Renewable Energy As defined in law: 1) Solar 2) Wind 3) Hydro 4) Geothermal 5) Non-combustion solid waste fueled energy sources 6) Biomass 7) Biologically derived methane 8) Energy from non-treated wood byproducts 9) All fuel cells 10) Energy storage that has renewable application potential 11) Distributed generation from any energy resource
Combined Heat and Power(cogeneration, recycled energy, waste heat recovery)
• 1st waste heat recycling was125 years ago
• DOE - could create 200,000 MW = power for 100 million homes & replace 400 coal plants
• Industrial states in Midwest are prime
• Saves industrials up to 20% on energy costs
• Steam can only travel about 4 miles – saves on line losses & local generation can mean more local jobs
Offshore Wind Energy Potential
Great Lakes Energy Development Task Force Project for 2-10 turbines,
3-5 miles offshore downtown Cleveland
Current Lake Erie estimates: 68,000 MW of wind resource (note: this is more wind potential than Ohio’s onshore wind
resources)
Source: “The Great Lakes as a Regional Renewable Energy Source” by David Bradley, February 2004, www.greengold.org/wind
Solar Energy
Germany (at left – not to scale) is the world’s largest solar market, despite solar resources significantly poorer than the United States. A solar panel in Ohio will produce 20 – 25% more energy than the exact same panel in Germany. (solar maps – National Renewable Energy Laboratory, European Commission)
Rulemaking at the Public Utilities Commission of
Ohio• Legislature & Governor set forth the vision & standards• The PUCO guides implementation through rulemaking and later
through the utility cases• Strong rules are an essential part of ensuring that the standards
of the law are met and that over-compliance is encouraged• We hand delivered nearly 1700 comments to the PUCO with an
additional 2000 from Environment Ohio. Environment Ohio used paid canvassers and we used volunteers!
• We were also successful in obtaining a handful of LTEs throughout the state, which are essential for raising awareness.
• Large coalition of environmental and consumer advocates including OEC, OCC, NRDC, OPAE, Environment Ohio, AARP, etc.
Utility Cases at the PUCO
American Solar Energy Society report “Tackling Climate Change in the U.S. - 2007
Carbon-Free supply curve from McKinsey “How Much At What Cost” study - 2007
Ohio Fuels Data on Single AxisNote: Total Generation and all fuels on Left Axis
0
20
40
60
80
100
120
140
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180
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
MWH (
Millio
ns)
Total Generation
Coal Generation
Nuclear
Natural Gas
Petroleum
Hydroelectric
Other Renewables
This Single Axis version of the Ohio Fuels graph shows the relative value of all fuels.
Ohio Fuels Data - Dual AxisNote: Total Generation, Coal and Nuclear on Left Axis
Natural Gas, Petroleum, Hydro and Other Renewables on Right Axis
0
20
40
60
80
100
120
140
160
180
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
MWH
(Milli
ons)
0
0.5
1
1.5
2
2.5
3
MWH
(Milli
ons)
Total Generation
Coal Generation
Nuclear
Natural Gas
Petroleum
Hydroelectric
Other Renewables
This dual axis version of the Ohio fuels graph shows the small fuels on a larger scale to permit consideration of the variations
Ohio Electricity Generation and Sales
0
20
40
60
80
100
120
140
160
180
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
MWH
(milli
ons)
MWH Generation
MWH Sales
Industrial Sales
Residential Sales
Commercial Sales
Ohio has been a net importer of electricity, but is close to parity in
2006
Help with our Public Education/Media Work
1. LTEs about each utility’s progress (or lack thereof) in papers throughout the state
2. LTEs in support of efficiency investments – any chance to plug efficiency is critical
3. FE customers, sign the FE petition on our website and FORWARD IT TO OTHERS!
4. Assist staff with Editorial Board Meetings5. Incorporate campaign message into local group events6. In the future, the Ohio Chapter is likely to provide
information sheets about incentives offered by each of the utilities
1. How much of Ohio’s electricity originates from coal-fired power plants?
A. 65%B. 83%C. 88%D. 98%
2. Name two benefits of energy efficiency!
3. Which of the following is not a renewable energy source?
A. Wind PowerB. Solar PowerC. Volunteering for the Sierra ClubD. Nuclear Power
4. What is decoupling?
A. Your favorite bedtime reading materialB. That thing that Ned talks a lot about, but you
never quite understoodC. A polite way to talk about divorceD. A rate structure that removes disincentives for
utilities to invest in efficiency
5. Which utility is most likely to get in a wrestling match with the PUCO, because they did not comply to our new energy law?
A. Duke EnergyB. AEPC. FirstEnergyD. Dayton Power and Light
Thank You!
Special thanks to Environment Ohio, Ohio Environmental Council & Recycled Energy Development for contributing to this presentation.