Category Archives: California

PACE Financing for Clean Energy, Part 2: Lowering the Funding Costs

rp_Brad-Copithorne-Photo2-200x300.jpgYesterday, my colleague Scott Hofmeister described an insurance pool that California has introduced to help communities integrate Property Assessed Clean Energy (“PACE”), a unique program that allows homeowners to finance money-saving clean energy retrofits through their property tax bill. These programs are popular in Sonoma, Orange, San Diego, Riverside, San Bernardino, Kern, and Fresno Counties, and we expect them to spread rapidly throughout the state.

Home Energy Renovation Opportunity (HERO), a residential PACE program run by Renovate America that has partnered with the Western Riverside Council of Governments, has funded over $180 million of clean energy retrofit projects in a little more than two years of operation. These investments are expected to save homeowners more than 2 billion kilowatt-hours, reduce consumers’ utility bills by almost $500 million and avoid more than 1.4 million metric tons of CO2 emissions, or the equivalent of removing almost 300,000 passenger vehicles from the road for a full year. And notably, the HERO program is entirely funded by private investors. Read More »

Also posted in Clean Energy, Energy Efficiency, Energy Financing| 3 Responses, comments now closed

PACE Financing for California’s Clean Energy Future, Part 1: Expanding the Residential Market

Scott_Hofmeister-287x377-228x300When it comes to protecting the environment and fighting climate change, California has always been a first mover.

Now the state is boldly acting to unleash a new market that saves energy, cuts pollution, and drastically increases clean energy investment for California’s residents.

Last week, California approved a $10 million reserve that will revive the Property Assessed Clean Energy (PACE) program for residential customers.

PACE allows customers to take advantage of energy saving upgrades to their home with no money down. Customers simply use a portion of their savings to pay off the investment over time through their property tax bill. Financing can be entirely provided by private lenders at no cost to taxpayers. Read More »

Also posted in Clean Energy, Energy Efficiency, Energy Financing, On-bill repayment, Renewable Energy| Tagged | 2 Responses, comments now closed

CPUC Singing the Right Tune on SONGS, But Southern California Still Needs to Harmonize to Achieve a Clean Energy Future

rp_Navarro_Lauren-228x300.jpgLast week, the California Public Utility Commission (CPUC) finalized an important decision for Southern California’s energy supply following the closure of the San Onofre Nuclear Generating Station (SONGS). The plan emphasizes increased reliance on clean energy in this part of the state – an important step towards a fully realized low-carbon future.

The decision authorized San Diego Gas and Electric and Southern California Edison to procure at least 550 megawatts (MW) of ‘preferred resources,’ which include renewable energy, demand response (a tool that’s used by utilities to reward people who use less electricity during times of “critical,” peak electricity demand), energy efficiency, at least 50 MW of energy storage, and up to 1,000 MW of these resources altogether.

That’s a major step forward, as utilities across the country traditionally rely on large fossil fuel plants to meet regional demand. Read More »

Also posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Smart Grid| 6 Responses, comments now closed

Science and Economics Agree: The Time is Right for California to Get Serious About Methane Pollution

Larissa-Koehler-200x300Recent numbers from the Intergovernmental Panel on Climate Change (IPCC) show that methane (CH4) is about 80 times more potent than carbon dioxide (CO2) in contributing to climate change over the first 20 years after it is released. Short-lived climate pollutants, like methane, are a large factor in determining how fast our climate will change over the next few decades.

These figures are particularly relevant in California where natural gas (which is about 99.9% methane) is used throughout the economy. For example, natural gas generates much of the state’s electricity through gas-fired power plants, is extensively used for home heating and cooking, and is increasingly being deployed as an alternative fuel for the state’s cars and trucks.

Yet, while California continues to operate and further build out a natural gas backbone in its energy economy, venting and leakage of uncombusted natural gas from pipes and machines can have an environmental impact. In fact, research shows that keeping methane leakage down to a minimum level is the only way to guarantee that the use of natural gas will provide immediate climate benefits, when switching from petroleum products. Read More »

Also posted in Colorado, Methane, Natural Gas, Wyoming| Comments closed

Funding the Future with a California Green Bank

rp_Brad_Copithorne-199x300.jpgTwo weeks ago, State Senator Kevin de León introduced a bill to establish the first “Green Bank” in California, a bold proposal that would unleash low-cost financing opportunities for clean energy projects throughout the Golden State.

I recently had the opportunity to testify at a hearing on the bill to discuss the best practices for green banks across the country and how the program would work in California.

First, a bit more on Green Banks:

At its core, the program is a clean energy finance bank set up by the state, designed to enable increased investment in clean energy projects and companies by working closely with the private sector to remove financial or structural barriers.   The goal is simple: increase the amount of clean energy at a low-cost and encourage private investment by reducing the overall risk of clean energy projects. Read More »

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Is SONGS Haunting Energy's Past, Present and Future?

This commentary originally appeared on our EDF Voices blog.

Source: Peter Lee/Flickr

Source: Peter Lee/Flickr

Earlier this year, Southern California Edison (SCE) permanently retired the San Onofre Nuclear Generating Station (SONGS) after forty years of operation in San Diego County, appearing to put the large-scale power plant firmly in the past. However, much like Ebenezer Scrooge, California is grappling with the specter of SONGS’ past – which may haunt our present and future.

The story of SONGS is not unique to California. As of the end of 2012, 28 nuclear power plants were shut down in the United States – and many more will face the same fate in the near future, as they reach the end of their design life. Thus, a transition to renewables and incentivizing reduced demand– and a refusal to be tied to fossil fuels – is an issue of national importance.

The closure of SONGS has left California at an important crossroads: Continue to lean on fossil fuel energy and build additional combustion power plants– like Marley’s ghost chained to the past – or start shaping the future by using the clean solutions that are available today. Read More »

Also posted in Climate, Demand Response, Energy Efficiency, Renewable Energy| Tagged | Comments closed

LASER: Turning the climate threat into a story of opportunity for Los Angeles

This commentary originally appeared on our EDF Voices Blog.

I’m an L.A. guy, so I like to think about things in epic story lines. And with today's launch of EDF and UCLA’s Luskin Center for Innovation new “LASER” maps (Los Angeles Solar & Efficiency Report), I think we’ve got a real blockbuster on our hands.

The LASER story opens with a team of top scientists warning us of an imminent threat – climate change – that will cause widespread disruption and human suffering if left unmitigated.

Utilizing the groundbreaking work of Dr. Alex Hall and the UCLA Institute for the Environment and Sustainability, the LASER maps illustrate what climate change is going to look like in the Los Angeles region in just a few decades.

By mid-century, the region will experience a tripling in the number of extreme heat days in the downtown and urban core, and a quadrupling in the number of extreme heat days in the valleys and at high elevations.

The plot thickens as we get a clearer sense of the communities that are most at risk – those already dealing with bad air quality, lack of adequate green space and tree canopy, poor access to public transit, and other challenges like high unemployment levels, poverty and public health hazards.

This is the part of the story where we could give up in the face of seemingly impossible odds…but that’s not how we roll in Los Angeles.

The LASER maps also introduce a powerful narrative about how we can fight back by  mitigating the carbon pollution driving climate change, building community resiliency through investments in energy efficiency and renewable energy, and seizing opportunities for economic growth that reduce vulnerability.

Utilizing sophisticated GIS mapping tools and other data, LASER shows the tremendous environmental and economic potential for rooftop solar in Los Angeles County:

  • Nearly 29,000 local jobs in solar panel installation could be created if merely 5% of the rooftop solar energy generating potential in LA County was realized.
  • If LA rooftops were able to capture that 5% of solar capacity they would reduce carbon dioxide emissions by 1.25 million tons, equivalent to taking 250,000 cars off the road annually.
Another LASER plot line involves energy efficiency, one of the cheapest ways to reduce carbon pollution and lower utility bills at the same time. The LASER maps show that:
  • Nearly 1.5 million buildings in LA County were built before energy efficiency codes went into effect, which means…
  • 80% of all buildings in LA County have elevated potential for cost-saving, energy efficiency investments.

If this were actually a Hollywood blockbuster, we would probably cut to a final, climactic showdown and a dramatic rescue from impending doom. But unlike Hollywood, there is no pre-written ending to the climate crisis.

To mitigate the worst effects of climate change, and prepare vulnerable communities for the climate impacts already on their way, we need serious investment and deployment of clean energy and low-carbon infrastructure – particularly in those communities that will be hit the hardest.

LASER provides tools that can help elected officials and advocates pinpoint the communities that are most vulnerable to climate change, identify the region’s clean energy investment potential, and then develop policies and funding mechanism to unleash it. EDF is here to help in that effort, and look forward to supporting our friends and allies in Los Angeles who are working to make the clean energy potential profiled in LASER a real-life success story.

In the end, LASER tells a tale of threat and opportunity in Los Angeles. Now it’s time to get to work to make sure this epic has a positive ending.

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At a Key Moment for Energy, California Should Seize Demand Response

This commentary originally appeared on EDF's California Dream 2.0 blog. 

Traditionally, if an area’s population grows — or it loses a power plant — it needs more energy. But California and some other states can approach it differently and reduce the use of fossil fuels.

Instead of asking, How can we add more energy?” the real question becomes “How can we reduce demand?”

Two words: Demand Response (DR).

DR is an incentive that has been proven to work on the East Coast and elsewhere, encouraging energy users who voluntarily participate to reduce their electricity usage temporarily when demand could outpace supply.

Recently, the California Energy Commission’s Integrated Energy Policy Report (IEPR) Draft recognized DR as a technology with a high potential to maximize energy efficiency. This report comes at an important time for the state, when greenhouse gas emissions from large facilities have increased in California after decreasing the previous years, in large part due to the closing of the San Onofre Nuclear Generating Station (SONGS) power plant.

In our recently submitted comments, EDF commended the Commission on thinking big on demand response, a cutting edge load management technology that can lower wholesale energy prices when they are highest, dramatically minimize system costs, and reduce air pollution and greenhouse gas emissions.

In their report the Commission also acknowledged that while DR is a great tool if used well, there still “has been little progress towards increasing the amount of DR used in the state.”  The Commission included several recommendations to bolster DR going forward, which EDF supports and will advocate for.

We also made suggestions for how the Commission could maximize the use of DR in California, including:

Time of Use (TOU) tariffs allow customers to pay prices for energy that depend on both when and how much they use. By giving customers the option to save money for reducing their energy use at peak times, older, less efficient peaker plants aren’t used as much and the overall system costs go down dramatically. If half of Southern California Edison’s ratepayers adopted its voluntary TOU program, this would replace the need for two thirds of the San Onofre generating capacity.

  • Set clear and ambitious goals for demand response in the state

The Commission should set ambitious benchmarks in regard to demand response capacity.

  • Foster consumer adoption of innovative demand response technology

Modern technology allows for automated thermostats, ‘set it and forget it’, and other options for easy to use systems that allow interested electricity customers to quickly and consistently respond and reduce energy use when demand is high and the grid is stressed. The Commission should plan to increase consumer uptake of these technologies.

  • Support new technologies and quick scaling up of pilot projects

Demand response opportunities exist on a broad scale in California.  Innovative ideas like charging electric cars when solar power is abundant to help maximize the benefits from renewables are still being developed. The Commission should encourage and support these new technologies, and look for successful pilots that are both cost-effective and fully scalable.

  • Establish effective enforcement mechanisms

By putting in place proper monitoring and enforcement mechanisms, the Commission will help ensure expected environmental benefits.

The Commission’s IEPR is a great step forward, and comes at a key moment for managing California’s energy system. We urge the Commission to continue its work with other stakeholders to increase this momentum, and to utilize its authority – such as appliance and buildings standards and electricity forecasting – to help implement the state’s vision for demand response.

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Energy And Water Utilities’ Unique Perspectives Uncover Joint Cost-Saving Solutions

In the past, I’ve written a lot about the inherent connection between energy and water use and the need for co-management of energy-water planning. Most of the energy we use requires copious amounts of water to produce, and most of the water we use requires a considerable amount of energy to treat and transport. Despite this inherent connection, it’s actually uncommon to see energy and water utilities collaborating to identify best practices to save energy and water and even lower costs. Think of it this way: If energy and water utilities worked together, their unique perspectives could uncover joint cost-saving solutions, customers would save more money and utilities could share data to better understand their holistic energy-water footprint.

Identifying why there is a lack of collaboration and how to overcome these barriers was the motivation behind the American Council for an Energy-Efficient Economy’s (ACEEE’s) recent report.  The report goes beyond citing discrepancies, though, and provides solutions for energy and water utilities to create better, more resource-efficient programs for themselves and their customers.

The report highlights a number of ways U.S. energy and water utilities have collaborated to identify mutually-beneficial energy and water savings. It lists successful energy and water utility programs from a variety of different sectors, including residential, commercial, industrial, agricultural and municipal. Read More »

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Historic Agreement Demonstrates Broad Commitment To Build Clean Energy Economy

 This commentary originally appeared on EDF's California Dream 2.0 blog.

With the stroke of a pen, North American efforts to combat climate change and promote clean energy reached a new level today.

I was lucky enough to witness the historic event, as Governor Jerry Brown joined the leaders of Oregon, Washington State and the Canadian province of British Columbia, to sign an agreement that formally aligns climate and clean energy policies in the four jurisdictions.

This signing by these “Fab Four” of the Pacific Coast Collaborative makes sense given all they have in common: they’re geographically connected, share infrastructure, and their combined regional economy accounts for a $2.8 trillion GDP, making it the world’s fifth largest economy.

Read More »

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