Sector Strategies 2013 年 度 報 告 書

Transcription

1 Sector Strategies 2013 年 度 報 告 書 2013 年 5 月 1. 報 告 書 1.1. 気 候 の 変 化 と AB32 実 施 状 況 気 候 変 化 と AB32 の 実 施 委 員 会 は 5 月 16 日 に 公 聴 会 を 行 い 気 候 の 変 化 が 州 にもた らすリスクとその 対 策 の 進 捗 状 況 について 議 論 を 行 った カリフォルニア 州 は 全 米 でも 先 進 的 な 対 策 をとっている 州 であるが その 他 の 州 も 省 エネや RPS の 政 策 を 実 施 し 始 めている また AB32 の 実 施 を 監 督 しているカリフォルニア 州 大 気 資 源 局 の よると 2020 年 の 温 室 効 果 ガス 排 出 削 減 の 期 限 に 向 けて カリフォルニア 州 は 少 しず つ 排 出 削 減 に 成 功 しているとのこと Source: ARB Mandatory Greenhouse Gas Emissions Reporting (MRR) Data for In-State Facilities 1.2. CEC による Alternative and Renewal Fuels and Vehicle Technology Program 最 新 情 報 カリフォルニアエネルギー 委 員 会 は 年 のグリーンな 車 や 代 替 燃 料 の 開 発 と 利 用 の 普 及 を 支 援 するための 投 資 計 画 を 可 決 同 委 員 会 の Alternative and Renewable Fuels and Vehicle Technology(ARFVT)Program に 約 1 億 ドルの 資 金 提 供 を 確 定 した これによりブラウン 知 事 による 2020 年 までにカリフォルニア 州 で 100 万 台 2025 年 までに 150 万 台 のゼロエミッション 車 の 普 及 させることを 目 標 とするゼロエ ミッション 車 アクションプラン 関 連 のプロジェクトにも 資 金 が 提 供 される 2. カリフォルニア 州 政 策 情 報 2.1. 自 動 車 メーカーが EPA の 低 エミッション ゼロエミッション 車 の 販 売 義 務 に 申 立 て 米 国 自 動 車 工 業 会 (Alliance of Automobile Manufacturers) と 米 国 の 国 外 メーカー 団 体 (Association of Global Automakers) は 2013 年 3 月 カリフォルニア 州 による 2025 年 ま でに 140 万 台 の 電 気 自 動 車 プラグインハイブリッド 車 燃 料 電 池 車 を 販 売 するこ

2 との 要 請 に 対 し 環 境 保 護 庁 (U.S. EPA)に 異 議 申 し 立 てを 行 った カリフォルニア 州 はゼネラルモーターズ フォード クライスラー トヨタ 日 産 ホンダ 各 社 は 2014 年 までに 6 万 台 の 電 気 自 動 車 プラグインハイブリッド 車 燃 料 電 池 車 の 販 売 義 務 を 課 せられており 2018 年 までにはこの 義 務 はヒュンダイ キア ダイムラー フォルクスワーゲン BMW とマツダにも 販 売 義 務 が 拡 大 する 見 通 し 2.2. カリフォルニア 州 議 員 が 揚 水 貯 蔵 を Flexible Capacity として 利 用 することを 検 討 California Assembly Utilities and Commerce Committee は 4 月 15 日 に 州 のエネルギー 関 連 機 関 に 対 し 揚 水 貯 蔵 を 再 生 可 能 エネルギーを 導 入 拡 大 のために 活 用 する 可 能 性 について 検 討 することを 可 決 CPUC に 対 し 現 存 する 揚 水 貯 蔵 施 設 が 再 生 可 能 エネ ルギーの 導 入 拡 大 を 受 けて Helms Balsam Meadow Oroville Castaic と San Luis に ある 揚 水 貯 蔵 施 設 を 電 力 網 運 営 のためのリソースとして 利 用 できるかどうかを 検 討 するように 要 請 した 実 現 すれば 新 たに 建 設 が 必 要 になる 発 電 所 の 数 は 減 るものの 揚 水 施 設 の 第 一 の 目 的 は 安 定 して 水 を 供 給 することであるので 各 水 道 局 からは 反 対 意 見 も 出 ている 2.3. カリフォルニア 州 ゼロエミッション 車 規 制 の 影 響 USA Today の 記 事 によると 自 動 車 メーカーがゼロエミッション 車 販 売 のための 動 きについてインタビューをされたところ 各 社 とも 複 雑 な 状 況 であることがわかっ た 全 米 でたった 一 州 (カリフォルニア 州 )において 定 められている 要 請 のために 小 型 電 気 自 動 車 を 生 産 し メディアなどからの 注 目 は 集 まるものの 実 際 のセール スは 伸 びず 売 れた 場 合 にも 販 売 によって 損 失 が 出 るという 状 況 にあるメーカーも 多 いとのこと 2.4. ゼロエミッション 車 市 場 拡 大 における 地 方 自 治 体 の 役 割 California s ZEV Action Plan によると 地 方 自 治 体 は 電 気 自 動 車 の 充 電 ステーションや 水 素 ステーションの 設 置 に 向 けて 努 力 を 続 けており 設 置 許 可 発 行 プロセスの 合 理 化 や 各 コミュニティの 公 共 交 通 機 関 ネットワークとの 兼 ね 合 いを 考 慮 したプランの 作 成 などを 行 っている このような 地 方 自 治 体 による 動 きはゼロエミッション 車 の 販 売 推 進 に 一 役 買 っていると 言 えるだろう 2.5. カリフォルニアエネルギー 委 員 会 改 定 された RPS ガイドラインに 沿 うエネルギー 貯 蔵 EV プロジェクトに 資 金 提 供 カリフォルニアエネルギー 委 員 会 は 4 月 30 日 に 再 生 可 能 エネルギープログラムガイ ドブックの 改 定 を 認 証 RPS に 適 格 かどうかのガイドラインについても 一 部 改 定 し ている バイオメタンガスを 利 用 している 施 設 に 関 してはランドフィルガスか 汚 泥 消 化 ガスである 場 合 には RPS 適 格 とされる また 再 生 可 能 エネルギー 施 設 に 設 置 さ れるエネルギー 貯 蔵 システムに 関 しても エネルギー 貯 蔵 自 体 は 再 生 可 能 とはいえ ないものの 再 生 可 能 エネルギーから 発 電 した 電 力 を 蓄 電 するしていれば RPS 適

3 格 と 成 るのではないかとの 考 え CEC は 軍 事 施 設 に 設 置 されている 150kW の 太 陽 光 発 電 設 備 と 250kW から 300kW 規 模 の 圧 縮 空 気 エネルギー 貯 蔵 プラントの 組 み 合 わ せで 実 証 実 験 を 行 うサンフランシスコのベンチャー 企 業 Foresight Renewable Solutions に 170 万 ドルの 資 金 提 供 を 行 った 2.6. カリフォルニアエネルギー 委 員 会 と PG&E サンノゼ 市 の 蓄 電 池 プロジェクトを 公 開 CEC と PG&E は Yerba Buena Battery Energy Storage System Pilot Project を 公 開 電 力 網 からの 需 要 が 低 いときに 蓄 電 し 需 要 が 高 くなったときにその 電 力 を 電 力 網 に 送 り 出 すというもの 不 安 定 な 再 生 可 能 エネルギー 源 導 入 の 拡 大 への 対 応 や 電 力 の 質 の 向 上 信 頼 性 の 向 上 などに 貢 献 できる 可 能 性 がある このプロジェクトでは 4MW のナトリウム 硫 黄 電 池 を 使 用 している 2.7. カリフォルニア 公 益 事 業 委 員 会 電 力 会 社 のデマンドレスポンスプログラムを 強 化 カリフォルニア 公 益 事 業 委 員 会 (CPUC)はサンオノフレ 原 子 力 発 電 所 の 廃 炉 を 受 け 電 力 会 社 のデマンドレスポンスプログラムを 変 更 することを 認 証 この 発 電 所 の 運 営 は SCE が 行 っており SDG&E にも 若 干 の 影 響 があるとのこと SCE は 2014 年 まで にデマンドレスポンス 容 量 を 58MW まで 拡 大 することを 目 標 とし いくつかの 商 業 施 設 用 プログラムを 一 つにまとめるなど 変 更 を 加 えていく 予 定 2.8. AB32 による 第 3 回 Cap and Trade オークションの 結 果 5 月 のオークションでは 2013 年 の 排 出 枠 が$14.00 で 約 1400 万 枠 2016 年 の 排 出 枠 は$10.71 でやく 750 万 枠 が 販 売 された 3. 米 国 西 部 関 連 情 報 3.1. PacifiCorp と Cal ISO は Energy Imbalance Market で 提 携 カリフォルニア 独 立 系 統 運 用 機 関 (CAISO)は FERC に 対 し 現 存 のリアルタイム 市 場 を 変 更 拡 大 し PacifiCorp に Energy Imbalance Market サービスを 提 供 することを 申 請 CAISO はこの 契 約 は 2013 年 7 月 1 日 から 開 始 となり 地 域 全 体 に 大 きな 経 済 的 効 果 と 信 頼 性 の 向 上 をもたらすとしている 試 算 によると 年 間 2140 万 ドルから 1 億 2800 万 ドルの 経 済 効 果 が 得 られるとのこと 3.2. ネバダ 州 議 会 石 炭 発 電 所 の 停 止 を 進 める ネバダ 州 の Commerce, Labor and Energy Committee は 5 月 17 日 石 炭 発 電 所 の 停 止 を 促 進 する 議 案 を 可 決 同 時 にネバダ 州 公 益 事 業 委 員 会 の 規 制 権 力 を 低 下 させる 方 針 石 炭 発 電 所 停 止 による 発 電 容 量 の 損 失 を 埋 めるため 電 力 会 社 に 対 し 550MW の 天 然 ガス 発 電 所 と 350MW の 再 生 可 能 エネルギーによる 発 電 所 の 建 設 が 要 請 され る 可 能 性 がある 3.3. コロラド 州 プラグイン 電 気 自 動 車 関 連 政 策 で 西 部 6 州 のうち 最 高 評 価 を 受 ける

4 Southwest Energy Efficiency Project は 5 月 15 日 コロラド 州 にプラグイン 電 気 自 動 車 を 支 援 する 政 策 に 関 して 最 高 点 を 与 えた ワイオミング 州 が 採 点 された 6 州 の 中 で 最 低 得 点 を 獲 得 コロラド 州 はプラグイン 電 気 自 動 車 を 推 進 する 政 策 と 最 高 $6,000 の 税 額 控 除 で 総 合 評 価 A-を 獲 得 アリゾナ 州 とユタ 州 が B-で 続 き ネバダ 州 は C ニューメキシコ 州 は C- ワイオミング 州 はプラグイン 電 気 自 動 車 に 対 するインセン ティブがないため F の 評 価 となった 3.4. カリフォルニア 州 の Cap and Trade プログラムがケベック 州 と 連 結 カリフォルニア 大 気 資 源 局 はカリフォルニア 州 とカナダのケベック 州 が Cap and Trade プログラムで 2014 年 1 月 から 提 携 することを 可 能 にするための 規 制 変 更 を 認 証 これによりカリフォルニア 州 とケベック 州 は 排 出 枠 オークションを 共 同 で 行 い 購 入 された 排 出 枠 は 両 州 どちらにおいても 有 効 となる 3.5. ニューメキシコ 州 天 然 ガス 車 ステーションの 展 開 が 難 航 ニューメキシコでガスの 流 通 を 行 う New Mexico Gas は 車 両 向 けの 天 然 ガスステーシ ョンにガスの 輸 送 ラインを 伸 ばすためには まず 規 制 とコストの 問 題 を 解 決 しなけ ればならないとした 同 社 はガソリン 車 と 同 等 の 時 間 の 長 さでガスを 補 充 できるス テーションを 開 発 したい 意 向 をニューメキシコ 公 益 事 業 委 員 会 に 提 出 しているが ガス 補 充 のスピードを 上 げるためには 高 圧 ガスラインを 新 たに 引 く 必 要 があり それを 行 うコストは 非 常 に 高 い また 新 しい 顧 客 は 現 存 の 顧 客 の 経 済 的 負 担 を 増 やしてはならないという 公 益 事 業 委 員 会 からの 規 制 のため ガスライン 建 設 のコス トは 新 しい 顧 客 の 間 で 分 担 されなければならない 結 果 としてガス 補 充 のスピード を 下 げることにならざるを 得 ず それではビジネスとして 確 立 するのが 難 しい と いうことになる 3.6. Sempra US Gas and Power と ConEdison Development が 太 陽 発 電 で 提 携 Sempra と ConEdison は Sempra U.S. Gas and Power の 太 陽 発 電 施 設 であるラスベガス 近 郊 の Copper Mountain Solar 2(150MW)とフェニックス 近 郊 の Mesquite Solar 1 (150MW)において 事 業 提 携 を 行 うことで 合 意 した 両 社 とも 50%ずつ 両 施 設 の 権 利 を 持 つことになる 施 設 の 運 用 は 引 き 続 き Sempra U.S. Gas and Power が 行 う 4. 今 後 の 会 議 ワークショップ

5 NEDO POLICY Report May 2013 INDEX Reports Page 1 California Policy Update Page 5 Western Region Page 13 Conferences, Workshops and Meetings Page Reports a. Select Committee on Climate Change and AB 32 Implementation - Protecting Californians from Climate Risks The Select Committee on Climate Change and AB 32 Implementation hearing on May 16th covered both the mounting risks of climate change in California and the progress toward mitigating them. Secretary of Natural Resources John Laird in testimony explained that while the impacts of global warming are already being felt in California -- with droughts, loss of snowpack and an extended wildfire season-- if we don t prepare and adapt, climaterelated costs will continue to mount. Fortunately, California has the policy measures in place to curb emissions and help lower the costs associated with extreme weather and climate change. Experts also testified on the linkage between greenhouse gas emissions and negative health impacts. Their testimony noted that although carbon dioxide is the largest contributor to climate change, other greenhouse gases like black carbon and methane threaten both the climate as well as the quality of the air we breathe. Poor air quality puts communities at risk for asthma and other respiratory problems, low birth weights, heart attacks, and lung cancer. Many of the greenhouse gas reduction measures in AB 32 that target vehicle, power plant, and other industrial emissions sources simultaneously address both climate and health impacts for the state. A National Perspective To put California s progress in context, the hearing highlighted action beyond our borders. While California has led the rest of the nation on climate policies, other states have been moving forward as well. For example: Half of the nation s states now require utilities to invest in energy efficiency programs that help customers use less energy and lower their utility bills. California has been a leader on energy efficiency for decades.

6 Twenty-nine states have adopted Renewable Portfolio Standards requiring a minimum percentage of power from clean energy like wind and solar. California has the most aggressive standard in the nation, but other states are quickly catching up. In the Midwest, Iowa s largest energy company, MidAmerican Energy, just announced plans to invest $1.9 billion to build an additional 1 gigawatt of wind power by 2015, which will produce electricity to power roughly 250,000 homes. In the Northwest, Washington recently ratcheted down its Emissions Performance Standard (EPS), which limits the amount of pollution from power plants. Washington s EPS is now 12 percent tighter than the current California standard making it the most ambitious in the nation. Carbon Trading Beyond California Cap-and-trade, a policy tool that gradually decreases the number of carbon pollution permits that are available to large emitters, is an important element of achieving AB 32 s goals. California s program launched in January and continues to gain momentum, holding its third auction in May The Senate committee looked at developments in carbon markets beyond California s borders. The nine Northeast and Mid-Atlantic states within the Regional Greenhouse Gas Initiative (RGGI) recently affirmed their commitment to cleaner power by voting to reduce their carbon emissions cap on the power sector by 45%. Across the globe, China is poised to launch seven regional pilot emissions trading programs it plans to link together in 2020 In total, China s programs will surpass California s as the world s second-largest carbon market, after the European Union s Emissions Trading Scheme. Progress on Reducing Emissions Mary Nichols, chairman of the California Air Resources Board (ARB) that oversees implementation of AB 32, closed the hearing by providing a summary of California s progress toward reaching its 2020 emissions reduction goals. As the chart below shows, there has already been a steady decline in emissions between 2008 and 2011 from facilities releasing the highest levels of pollution in the state. 2

7 Source: ARB Mandatory Greenhouse Gas Emissions Reporting (MRR) Data for In-State Facilities The Report concludes that, As we move closer to meeting AB 32 s emissions targets, California is upholding its position as a national leader in climate policies. In fact, the Energy Information Administration (EIA) the federal government s energy statistics agency just this week ranked California in the Top 5 both for lowest emissions per capita and carbon intensity. To stay ahead of the curve, California must continue to move forward and build on its strong foundation of clean energy and climate leadership. The Senate Select Committee Report can be found at: tee% %20background%20memo.pdf b. Energy Commission Approves New Alternative and Renewable Fuels and Vehicle Technology Program Investment Plan Update The California Energy Commission recently unanimously adopted the Investment Plan Update to support the development and use of green vehicles and alternative fuels. The update sets funding priorities for the approximately $100 million in annual state funds under the Commission's Alternative and Renewable Fuels and Vehicle Technology (ARFVT) Program, created by Assembly Bill 118. "This investment plan provides a solid foundation for the continued transformation of California's transportation sector," said Energy Commission Chair Robert B. Weisenmiller. Funding priorities through the ARFVT Program support fuel and vehicle development to help attain the state's climate change policies. In addition, the program funds projects that assist in fulfilling Governor Brown's Zero Emission Vehicles (ZEV) Action Plan, with a target of installing enough infrastructure to support 1 million ZEVs by 2020, and a 2025 target of having 1.5 million ZEVs on the state's roads. Investments made through the program's competitive solicitation process provide a crucial jump-start in funding to overcome market barriers for new fuels and technology, while leveraging additional investment from federal agencies, research institutions, private investors and other stakeholders. The AFRVT program funds projects to encourage the development and use of new technologies and alternative and renewable fuels, including electricity, natural gas, biomethane, hydrogen, and gasoline and diesel substitutes, such as cellulosic ethanol (derived from woody materials, including agricultural waste), and biodiesel from waste grease. Funding sources include small surcharges on vehicle and vessel registrations, and license plate and smog abatement fees. Notably, many of these fees are set to expire in and legislation is pending to extend the expiration dates into the 2020 s. The program is a critical part of California's efforts to reduce greenhouse gas emissions to 80 percent below 1990 levels by 2050, as required by AB 32; decrease petroleum fuel use to 15 percent below 2003 levels by 2020; increase the use of alternative fuels to 26 percent of all fuel consumed by 2022; and reduce emissions of nitrogen oxides to 80 percent of 2010 levels by 2023 to help meet federal ozone standards in areas of California such as the San Joaquin Valley and South Coast air basins. 3

8 Currently, the state's transportation sector accounts for nearly 40 percent of the state's greenhouse gas emissions, and more than 95 percent of all transportation energy consumed in California is petroleum-based. Among the ARFVT Program's achievements to date: Awards have leveraged more than $450 million in additional private and public investment. More than 5,750 Californians have received job training. Approximately 5,400 short- and long-term jobs have been created through funded projects. More than $390 million has been awarded to more than 220 projects. Supporting alternative fuels and vehicle technologies that can displace more than 375 million gallons of petroleum fuel (equivalent to removing 1 million or more cars) and reduce greenhouse gas emissions by at least 2.7 million metric tons by Funding for more than 7,150 electric vehicle charging points, creating the largest charging network of any state. Laying the groundwork for the largest hydrogen fuel cell vehicle fueling network in the country through funding of 17 hydrogen fueling stations. Applications for close to $1.5 billion for nearly 400 projects beyond available funding attest to the need for - and interest in - the program. The investment plan update was developed with the input of the ARFVT Program Advisory Committee, stakeholders and the public. This new update covers the fifth year of this innovative program, which is unique to California. The Plan update allocates $100 million to projects in the following areas: $23 million for biofuels production and supply, with an emphasis on fuels made from waste-based and other low-carbon, sustainable materials. $20 million for hydrogen fueling infrastructure. An estimated 68 stations are needed to support the anticipated rollout of these vehicles in Roughly 24 stations are built or in development. $15 million for medium- and heavy-duty electric truck and hybrid vehicle demonstration projects. $12 million for natural gas vehicle incentives. These incentives help to pay the difference between the cost of alternative-fuel vehicles and conventional vehicles. Buyers must agree to register and operate the vehicles in California at least 90 percent of the time for three years. $7 million for electric vehicle charging infrastructure, coordinated to fulfill the Governor's ZEV Action Plan. Workplace, fleet and multi-unit dwelling projects will be given priority. $5 million for light-duty plug-in electric vehicle rebates to meet high demand for the Clean Vehicle Rebate Program, administered by the California Air Resources Board. $5 million for manufacturing projects, supporting economic development and clean transportation technology. 4

9 $4 million to emerging opportunities. This allocation is not specifically tied to any single fuel or technology type, with a priority for projects that can leverage federal funding. $3.5 million for regional alternative fuel readiness and planning, building on previous projects supporting these efforts. $2 million for centers for alternative fuels and advanced vehicles to support collaborative efforts that promote innovation, demonstrate new technologies, leverage venture capital and federal funds, and provide workforce training. $2 million to workforce training and development. $1.5 million for natural gas fueling infrastructure to support growing use of these alternative fuel vehicles by many entities, including school districts California Policy Update a. CARB Chair Challenges Automakers on EPA Petition. The Alliance of Automobile Manufacturers and the Association of Global Automakers filed a petition with the U.S. Environmental Protection Agency in March 2013 to block California s requirement that 1.4 million electric, plug-in hybrid, and fuel cell vehicles be sold by California, the largest U.S. auto market, is requiring General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp. Nissan Motor Co. and Honda Motor Co. to sell a combined 60,000 plug-in, battery-electric and fuel-cell cars in the state through By 2018, the state s zero-emission vehicle rules will likely extend to Hyundai Motor Co., Kia Motors Corp., Daimler AG, Volkswagen AG, Bayerische Motoren Werke AG and Mazda Motor Corp. However, the Chair of the California Air Resources Board is not accepting the lawsuit quietly. California s ZEV Regulations and the Advanced Clean Cars Initiative are commonly considered Board Chair Mary Nichols highest personal priority. Her commitment as well as The Governor s commitment to ZEV s is very strong. Bloomberg reports that a speech delivered by Chair Nichols in April 2013, accused automakers of undermining the progress they re making in expanding the market for electric cars and other zero-emission vehicles by petitioning against California s mandates. Talk about shooting yourselves in the foot, or maybe I could say, tripping over your own halo, Mary Nichols, chairman of the California Air Resources Board, said at SAE International s World Congress. Rather than rehashing the same, tired legal battles of our past, why not work together to collectively support and develop this market? (As cited in Bloomberg, April 2013) California is requiring automakers to sell more than 1 million of the vehicles that generate little or no greenhouse- gas emissions through standards that are followed by more than a dozen states. The state last year established rising annual targets for zero-emission vehicles toward a goal of reaching 15 percent of its new-car sales by Bloomberg further noted that, Compliance with California s standards depends almost entirely on consumers buying high-technology vehicles in substantial numbers, Annemarie Pender, a spokeswoman for the Association of Global Automakers, wrote in an e- mail to the news agency. 5

10 Automakers hope that consumers will buy zero-emission vehicles in large volumes, but so far, sales have been lower than necessary to meet California s aspirational goals, Gloria Bergquist, a spokeswoman for the Washington-based Alliance of Automobile Manufacturers, wrote in an to Bloomberg It serves no one, not the state economy or consumers or automakers, to have these vehicles sit unsold on dealer lots. According to the Bloomberg article, GM, Ford, Chrysler, Toyota, Volkswagen, BMW, Mazda and Daimler s Mercedes-Benz are all members of the Alliance of Automobile Manufacturers. The Association of Global Automakers, also based in Washington, counts Honda, Nissan, Hyundai and Kia among its members. The text of Chair Nichols speech can be found at: b. CA Lawmakers Consider Legislation to Authorize Pumped Storage for Flexible Capacity The California Assembly Utilities and Commerce Committee on April 15th passed a measure requiring energy agencies to assess the potential of pumped-storage facilities to help integrate renewables. AB 1258 from Assm. Nancy Skinner (D-Oakland) would require the CPUC to determine the potential for existing hydro and pumped-storage facilities in the state to be used to provide additional operational flexibility for integrating renewables. The bill would apply to five pumped-storage facilities in the state Helms, Balsam Meadow, Oroville, Castaic and San Luis. If we had the capacity to utilize stored generation, where water can be moved uphill and stored, then deployed at peak moments, that could potentially lead to less construction of [gas-fired] peaker plants, Skinner said. The CEC s Integrated Energy Policy Report is a good place to look at this issue, said V. John White, legislative director of the Clean Power Campaign, in testimony in support of the bill. But a number of water districts and public utilities oppose the bill, saying it could impact the mission of the State Water Project, which is to ensure safe and reliable water delivery. Some of the facilities the bill specifies supply water through the SWP. The primary purpose of the State Water Project is water delivery, not power generation, said Kathy Cole, executive legislative representative with the Metropolitan Water District of Southern California testifying in opposition. In spite of the opposition, the committee passed the bill c. California s Zero Emission Vehicle Policy Sets a National Standard - Status Report In a recent USA Today article, ZEV manufacturers were interviewed on the status of their efforts to sell or promote ZEV s in the US auto market. According to the article, automakers are in the uncomfortable position of building mostly at a loss a class of small electric cars that garner a lot of attention but few sales just to satisfy rules imposed by one state, California. As a result, they've acquired the name "compliance cars." They include electric versions of such familiar models as the Chevrolet Spark, Honda Fit and Toyota RAV4. The conclusion that ZEV market penetration is primarily accomplished by compliance vehicles is not reflected in the many reports and statements issued by the California Air Resources Board (CARB) on this topic. As noted in the recently released ZEV Action Plan, 6

11 As a result of these collective actions, our state s ZEV market is poised for major new growth. Auto manufacturers now offer a range of attractive light-duty plug-in electric vehicles, including many manufactured by California companies. Two automakers offer light-duty fuel cell electric vehicles for consumer lease and several others have placed FCEVs in fleets. CARB staff would in fact be pleased to accept credit for any advances in the ZEV market. This is reflective of the commitment to ZEV s of not only staff and CARB members but of the Governor as well. While it is true that many ZEV s are being produced primarily or solely to meet California's mandate that large automakers sell a percentage of zero-emission cars in order to sell traditional cars in the state. Under California s rules, hybrids and natural gas cars aren't considered clean enough, and hydrogen fuel-cell cars are still a ways off, so battery cars are the quickest way to comply. Thus, automakers must not just build but also sell the cars to satisfy California's regulations; the automakers are adding discount sales and lease deals to ensure they can move the vehicles. According to the USA Today article, limiting losses on the cars, not making a profit, has become the carmakers' initial goal. Though the automakers have taken different approaches to their electric cars, what the cars have in common is relatively high sticker prices compared to conventional versions, even after most buyers qualify for up to $7,500 in federal tax incentives and often substantial state or local government subsidies. Chrysler Group CEO Sergio Marchionne said his company would limit production of the electric Fiat 500e because it will lose $10,000 on each. "Doing that on a large scale would be masochism to the extreme," he said. The Fiat 500e, at $32,500 before subsidies, is almost twice the price of the base model of a conventional base Fiat 500, but the company has discount-lease and other plans to add to government subsides and cut the final cost. The California rules apply to automakers that sell at least 60,000 vehicles a year in the state, which means the Detroit makers, plus Toyota, Honda and Nissan. Analisa Bevan, sustainable-technology chief for California's Air Resources Board, says 10 other states also will adopt California's zero-emission mandate. Tesla Motors CEO Elon Musk, whose company makes the Model S sedan, says he doesn't feel threatened by the increased electric competition in California. "Those are very tiny sales." Nissan says it s happy with overall Leaf sales as it passes the 25,000 mark since its late 2011 launch. "The adoption curve for EVs is accelerating, and we're seeing tremendous interest not only on the West Coast but in a number of new strongholds," says Erik Gottfried, electric vehicle marketing director. Some automakers are trying to straddle the line. Ford says, for instance, that its $39,200 Focus electric is being sold at select dealers in all states except Wyoming and West Virginia. Even at that, Ford sold 566 through April this year, compared with 84,455 conventional Focuses. 7

12 Toyota only plans to make 2,600 RAV4 EV using an electric powertrain supplied by Tesla. Honda will make only 1,100 Fit EVs over three years and will only lease them. But automakers balk at the term "compliance car," because they say engineers went far beyond what is needed to comply. Major Electric Vehicles for 2013 Ford Focus Electric Sales started in California, but Ford says it can be bought at select dealers in 48 states now. Starting price is $39,200 before delivery charges, or it can be leased in many states at $249 a month. It gets the gas mileage equivalent of 105 miles per gallon. Chevrolet Spark EV When it goes on sale this summer in California and Oregon, Spark EV will have a rated range of 82 miles and efficiency of 119 MPGe. Price hasn't been announced. Fiat 500e Going on sale this summer, the electric version of the subcompact 500 is expected to be rated at 116 MPGe and get 87 miles per charge. It will be sold only in California and priced at $32,500 but has a subsidized lease deal that puts the monthly payment on par with the gas version. Nissan Leaf Leaf stands out as not only the first modern electric car from a major automaker, but also one that was intended to be sold in all states, not only in a few for regulatory reasons. It's priced at $28,800 and gets 115 MPGe. Toyota RAV4 EV The $49,800 SUV is the only one of the bunch, with the powertrain supplied by Tesla. Sold only in California., some 2,600 are being built through It has a range of 103 miles and gets 76 MPGe. Honda Fit EV The Fit EV is sold in California, Oregon and New York. Some 1,100 are being made over three years. It isn't sold but only leased for $389 a month. It gets 118 MPGe. * Source: USA Today d. Local Governments Begin to Play a Key Role in CA ZEV Market Penetration According to the California s ZEV Action Plan, local governments have facilitated plug-in electric vehicle charging and hydrogen stations in their communities, streamlined permitting processes for new infrastructure and planned how ZEVs will operate within their local transportation networks. Now it appears that local governments are also taking a proactive role in subsidizing ZEV sales. For example, Southern California cities and the South Coast Air Quality Management District are proposing to give cash to people who buy electric cars. These two entities are launching 8

13 a $13 million, two-year program to subsidize the lease of up to 60 new all-electric cars. Anyone leasing a Nissan Leaf, for example, would get between $100 and $125 per month rebate, lowering one's monthly car payment to no more than $100 a month. Plus, they will throw in free charging and free parking. "Free parking? And charges for free! It is the best deal. You can't commute for less than that," said Richard Mrlik, president of Intertie, an energy-consulting firm based in San Francisco hired by the city of Industry. The two governmental entities suddenly find themselves in the car business and they are dealing. "The EV lease program is designed to stimulate electric transportation in the L.A. basin," Mrlik, President of Intertie, an energy-consulting firm stated in a recent LA Times article. "The objective of the program is to show commuters they can commute at a lower lifecycle cost using electric transportation, vis a vie internal combustion. " Although applicants will be chosen on a first-come, first-served basis, Mrlik said, those who say they are carpooling will be moved to the front of the priority list. Also, owners can only get the free charge at the Industry Metrolink station, 600 S. Brea Canyon Road, near Walnut. Third, they must leave the car for charging and hop the train to work. In the six-county region of Southern California Association of Governments (SCAG), a 16 percent reduction in greenhouse gases, mostly carbon dioxide and methane, is required by 2035 despite the arrival of 4 million more people. SCAG Director Hasan Ikhrata called the Industry subsidy program "a win-win project that provides models for Southern California's future," and added: "The city of Industry has developed a multipronged approach that benefits drivers, the transit system and alternative energy. " Industry is adding another 32 charging stations to the parking lot, which already is equipped with 8,000 solar panels on 940 carports. Surplus energy is sold to Southern California Edison. A survey attracted more than 28 customers - the initial target of the first phase - but Industry and its partners could accommodate 60 new electric cars, Mrlik said. He said it is a matter of running conduit to double the number of EV charging stations to 64, something that can be done in a week's time. "We could expand it up to 500 vehicles at full deployment," he said. Applicants are being sought through the upcoming website industryev.com. The site is not yet operational but may be up by the end of the May e. CEC Funds Energy Storage, EV Projects, Adopts Revised RPS Guidelines The CEC at an April 30th business meeting adopted revisions to its renewable-energy program guidebook and its renewables portfolio standard eligibility guidebook to clarify RPS eligibility guidelines and to implement new legislation. With the adoption, the commission also lifted a suspension it enacted last March related to out of state biomethane use, to allow time to assess the RPS eligibility of biomethane as a result of the passage of SB 1X 2,the 2011 law raising the RPS to 33 percent. 9

14 RPS eligibility requirements for facilities using biomethane were clarified in last year s AB 2196, and the seventh edition of the CEC s RPS eligibility guidebook implements that law. A facility that uses biomethane is RPS-eligible if the biomethane is derived from landfill gas or digester gas. Facilities that use biomethane produced either on-site or off-site and sent to the facility via a dedicated pipeline are eligible. For facilities that use biomethane delivered via a common-carrier pipeline, AB 2196 requires that the biomethane in the pipeline physically flow within or toward the generating facility that secured the biomethane contract. The seller or purchaser of the biomethane also has to demonstrate that the capture and injection of the biomethane results in at least one of three specified environmental benefits for the state. The CEC has included in the RPS eligibility guidebook additional requirements for biomethane contracts executed before March 29, The revised eligibility guidebook also adds a section on energy storage to clarify eligibility requirements of storage systems at renewable-energy facilities, and expands sections on renewables tracking and verification and renewable- energy credit reporting and retirement requirements, said Kate Zochetti, technical program lead for the RPS program in the CEC s renewable-energy office. The RPS guidebook notes that while energy storage systems are not inherently renewable, they can store energy from renewable-energy systems for use later, and in such cases, the resulting electricity may be eligible to produce renewable-energy credits. Not everyone was happy with the changes. Randy Howard, director of power-system planning and development at the Los Angeles Department of Water & Power, cited language related to procurement contracts prior to 2010 and concerns related to distributed solar. LADWP is unhappy with energy metering requirements now in effect that call for plus or minus 2 percent accuracy in order to be counted toward RPS procurement requirements. The cost of going out and changing those meters on those existing systems many of them have been installed for a number of years is not a good use of ratepayer money nor a good use of utility resources, Howard said. He asked the CEC to reconsider that requirement. All new meters will conform to the new requirements, he said, but LADWP would like to continue to be able to count a number of meters that have the old configuration. Howard also asked the commission to reconsider a requirement that RECs be retired in the year they are generated. LADWP would rather have a system that enables utilities to use RECs on a seasonal basis. The commission also approved almost $4 million in research funding, including a $1.7 million award to Foresight Renewable Solutions, a San Francisco startup. Foresight will demonstrate an aboveground 250 to 300 kw compressed-air storage system paired with a 150 kw solar-photovoltaic array at an existing military facility. Air will be compressed into aboveground tanks packaged in standard shipping containers, and can then be used to generate electricity when needed to help with electrical demand at the facility. The project goal is to demonstrate intermittency management, peak load shaving, load shifting and the ability to operate independently or in connection with the grid, according to CEC background material on the agreement. Ultimately, the demonstration project is expected to allow the facility to achieve greater levels of energy security using renewable energy, according to the CEC. 10

15 The agreement includes $1.2 million in match funding. In addition to batteries and pumped hydro, compressed- air energy storage (CAES) is one of the few currently viable energystorage solutions around. But it has not been broadly deployed, in part because the technology is limited by geography and scale. Enter LightSail Energy, a Berkeley startup backed by Khosla Ventures, Bill Gates, Total Energy Ventures and others. LightSail has developed a modular isothermal CAES technology. Foresight will use the LightSail technology; LightSail is acting as a subcontractor to Foresight under the terms of the CEC agreement. The advanced, patented technology uses tanks and pipes (rather than large underground caverns, as in other CAES applications), meaning that more or less storage can be added depending on need, according to the company. Even with advances the company has made, CAES faces barriers including insufficient field-testing and demonstrations, unproven capital and cost estimates, and lack of customer knowledge about the technology. The LightSail technology will be installed at the Expeditionary Warfare Center s Mobile Utilities Support and Equipment facility at the U.S. Naval base in Ventura County. One of the project s goals is to demonstrate how storage technology can help maximize renewableenergy penetration in the base s microgrid, with a greater goal to create a model community-scalehybrid renewables/storage/microgrid configuration that can be replicated across a broad range of communities while reducing utility costs, and creating a more stable grid, according to the CEC. f. PG&E, Energy Commission Unveil Battery Energy Storage in San Jose Pacific Gas and Electric Company (PG&E) and the California Energy Commission recently unveiled an innovative battery energy storage system pilot project to better balance power needs of the electric grid (according to a PG&E Press Statement). The Yerba Buena Battery Energy Storage System Pilot Project charges batteries when demand is low and then sends reserved power to the grid when demand grows. The system has the potential to provide important services for balancing energy supply and demand, helping to support greater integration of intermittent renewable generation as well as improving power quality and reliability for customers. "Battery storage holds tremendous promise in helping electric utilities like PG&E enhance the overall reliability of an ever-changing energy supply," said Greg Kiraly, PG&E's senior vice president of distribution operations. "This pilot project will provide critical, real-world data on the technical and financial performance of battery energy storage to help us understand how battery storage devices can serve PG&E's customers and the overall electric grid." The project was made possible thanks to a $3.3 million grant from the Energy Commission to PG&E that will help fund the installation and evaluation of the system. This smart grid project is a utility-scale sodium-sulfur battery energy storage project. It has a 4 megawatt capacity, and can store more than six hours of energy. 11

16 PG&E is working in close coordination with the Electric Power Research Institute (EPRI) to study how sodium-sulfur battery energy storage can improve power quality and reliability, support greater integration of intermittent renewable power, and supply energy to California's electricity market, overseen by the California Independent System Operator. EPRI's reports will be made available to the public. g. CPUC Boosts Utility Demand-Response Programs According to a CPUC press release he CPUC this week approved changes to utilities demand-response programs to help mitigate the outage at San Onofre Nuclear Generating Station. The 2,300 MW nuclear plant was taken off line in early 2012 after a steamgenerator tube in one unit leaked reactor coolant and steam-generator tubes in both units showed significant wear. Southern California Edison is the operator and majority owner of the plant; San Diego Gas & Electric owns a minority stake. The CPUC s Energy Division late last year had requested DR program changes before summer SDG&E responded by seeking to change its Demand Bidding Program, which offers incentives to nonresidential customers to reduce energy use and demand during specific DR events, to a day-of, 30-minute trigger product. SDG&E also asked to issue a request for proposals to expand the use of load-control technologies; increase funds for the Community Partners Initiative in order to expand outreach to SONGS-affected areas; and eliminate the Peak Time Rebate program for small commercial customers. Edison sought to increase DR capacity by up to 58 MW by Changes include consolidating some commercial programs of the Summer Discount Plan into a single yearround program with a new economic based trigger, shorter anticipated event durations and fewer cycling options. The Summer Discount Plan involves a day-of air-conditioner cycling program with remote-controlled devices installed on air conditioners for residential and commercial customers. Proposed changes also included increasing Summer Discount Plan enrollment through targeted marketing; increasing incentives in the Auto Demand Response Technology Program; increasing community- based outreach efforts; performing studies of emerging technologies; and expanding the Save Power Day Program to include a day-of reminder and larger incentives. The program gives residential bundled service customers a bill credit to reduce energy use during event-day afternoons. h. AB 32 Third GHG Auction Results The Air Resources Board (ARB) held its third auction of greenhouse gas allowances (GHG) on May 16, The auction included a Current Auction of 2013 vintage allowances and an Advance Auction of 2016 vintage allowances. Prior to the certification of the auction, ARB staff and the Market Monitor carefully evaluated the bids, and determined that the auction process and procedures complied with the requirements of the Cap-and-Trade Regulation. As provided below, the Market Monitor made the following determination: The Market Monitor found that the auction was cleared consistent with the auction clearing rules in the regulation and appropriate economic logic. The Market Monitor confirmed the auction results, based on the data available. The Market Monitor confirmed the clearing price and clearing quantities by participant for the auction for 2013 and for the auction for 2016 vintage allowances. The Auction Administrator reported that the 2013 auction clearing price is $14.00 per allowance, with 14,522,048 total 2013 allowances sold. 12

17 The Auction Administrator reported that the 2016 auction clearing price is $10.71 per allowance with 7,515,000 total 2016 allowances sold. The Market Monitor confirmed that the 2013 auction-clearing price is $14.00 per allowance and that the 2016 auction-clearing price is $10.71 per allowance. The Market Monitor confirmed the cleared quantities assigned to individual participants by the Auction Administrator were consistent with the regulation logic involving tiebreakers and the random allocation of residual allowances in both auctions and therefore that the total volumes cleared are correct. The auction algorithm correctly applied the regulation requirements covering the bid guarantee and the tiebreaker constraints. The Market Monitor did not observe any breaches of security or communication protocols. The Market Monitor recommends that ARB approve the May Auction results In the Current Auction of 2013 allowances, there were no violations of the holding limits, purchase limits or bid guarantee for any Submitted Bids at or above the settlement price. For bids below the settlement price, bids for 12 lots (12,000 allowances) would have been rejected for exceeding the bid guarantee if the auction had settled at the Auction Reserve Price. The bids rejected for violating the bid guarantee were not included in the calculation of the statistics reported for Qualified Bids. All of the rejected bids were below the settlement price, and consequently had no impact on the determination of the settlement price. No bids were rejected in the Advance Auction of 2016 vintage allowances Western Region and Other State Activity a. PacifiCorp, Cal-ISO Sign Energy Imbalance Market Deal According to Cal-ISO, PacifiCorp and Cal-ISO have filed with FERC an implementation agreement explaining how the grid operator will extend and modify its existing real-time energy market to provide energy imbalance market (EIM) service to PacifiCorp. In its April 30 filing, Cal-ISO asked FERC to make the agreement effective July 1, 2013, so PacifiCorp s participation may proceed without delay [ER ]. Such an EIM has the potential to produce signif icant economic and reliability benefits for customers throughout the region, Cal-ISO said in its transmittal letter. The ISO has estimated that annual benefits range between $21.4 million and $128.7 million, depending on how much real-time transfer capacity is available. Meanwhile, the PUC EIM Group, which is composed of Western commissions, has asked the Northwest EIM group to consider the impacts of joining the Pac-ISO tariff. The Cal-ISO- PacifiCorp implementation agreement is structured to enable participation by other entities. The EIM would be an improvement over the energy imbalance service utilities currently offer under their respective open-access transmission tariffs, Cal-ISO said. Replacing these provisions with an automated market in multiple balancing authority areas would allow participants to get imbalance energy from a far greater pool of resources. The implementation agreement sets out five milestones, starting with a detailed project management plan on July 1, 2013 and a full network model expansion on Dec. 6. Trading would begin Oct. 1,

18 Cal-ISO estimates it will cost $18.3 million to configure its system, including five-minute dispatch, to function as an energy imbalance market available to all Western Electricity Coordinating Council balancing authorities. About $10.8 million of the total is for software licenses, with another $2 million for data storage. PacifiCorp will pay a $2.1 million nonrefundable implementation fee through five specific milestone payments for its share of the costs. Cal-ISO and PacifiCorp made the FERC filing even as other efforts to explore regional EIMs in the West proceed. The Western Electricity Coordinating Council launched an effort in 2010, as did the Western Governors Association in 2011 (the PUC EIM Group ). The Northwest Power Pool s 22-member Market Assessment and Coordination Committee (MC), co-chaired by Pacific Power CEO Pat Reiten and Bonneville Power Administrator Bill Drummond, released a market-benefit study of its proposal in early April and are working on a following reserve assistance program that would have a long-term potential to integrate into [an] EIM structure. The footprint analyzed in the market study included PacifiCorp s control areas, but the group is currently working to quantify how much lower the benefits would be without PacifiCorp. When PacifiCorp and Cal-ISO in February announced their memorandum of understanding to work towards the implementation agreement, Reiten stated that PacifiCorp is unlikely to join more than one EIM and that once it signed the agreement, PacifiCorp would be pretty well committed to go down that path. The agreement includes a set of key principles. One states that the EIM will be organized in a manner that is compatible with the Northwest Power Pool reserve sharing program and other existing and emerging market initiatives, including FERC Order 764, which mandates that transmission providers offer intra-hourly scheduling to reduce the risk that variable- resource producers will be subjected to unjust or discriminatory imbalance charges. Nor will the Pac-ISO initiative deter the MC s work. PacifiCorp is at liberty to work with Cal- ISO and I can understand why they would, said Bill Gaines, CEO of Tacoma Public Utilities and co-chair of MC s EIM governance subcommittee. But the rest of us are still working with the NWPP construct, so I don t think people are paying attention to the Cal-ISO, except to the extent that the ISO has made a proposal where it would merely operate an EIM that parties in the Northwest would define and own. The MC is trying to find a governance structure for a Northwest-centric EIM, Gaines said, though his subcommittee has been on hiatus for a few months to allow work on market design and cost/benefit analyses to progress. Market design and governance are interdependent, he noted, so we are just now starting to get governance work started back up. Montana Public Service Commissioner Travis Kavulla, chair of the PUC EIM Group, said there is one camp that would say filing of the agreement has re-ordered the regional discussion, but I don t think that is the case. The MC s modeling results are still going to be worthwhile. But he said the lack of discussion on the crucial matter of governance has been frustrating: So far that hasn t happened. Cal-ISO s lengthy straw proposal devotes only a few pages to governance, Kavulla noted, and the level of participation from Northwest players at Cal-ISO s recent stakeholder meeting in Folsom was anemic. Only three of the 16 comments Cal-ISO received on the design straw proposal were from the Northwest. 14

19 Instead, people have this California gut check whereby the mere mention of the name of the state is enough to send people over the edge. Many people equate it to talking about Social Security benefits to a group of senior citizens. So many people instinctively perceive it to be a third rail. It has yet to be described to me why the governance problem is so intractable, Kavulla said. It seems counterintuitive. The whole point of creating an EIM is to promote inter-utility cooperation and to prevent balkanization. I have a hard time seeing multiple EIMs as the product of the work being done in the West. The Cal-ISO straw proposal includes a market operator model that is not controlled by a board appointed by [California Gov.] Jerry Brown, Kavulla noted, but would allow for oversight by a body independent of the Cal-ISO Board of Governors. Most organized markets, such as the Midwest ISO and PJM, have regional state committees where various government stakeholders advise a regional transmission organization or, as in the case of the Southwest Power Pool, where the regional committee itself has direct authority to file tariffs. The reality is that it would be cheaper to bolt on to the Cal-ISO platform than to create something from scratch, Kavulla said, and that could be a make-or break option. Kavulla signed an April 26 letter on behalf of the PUC EIM Group to Reiten and Drummond asking the MC to continue its work but to consider the impact of joining the Pac-ISO EIM, but Gaines said the MC is unlikely to do so. In its comments on the design straw proposal, the PUC EIM Group asked that technical issues affecting potential EIM participants outside California be clarified in coming revisions to the draft. Cal-ISO has an ongoing stakeholder process to design the EIM and establish market-governance rules. A revised draft of the straw proposal is due May 30th. b. Nevada Legislature Draws Heat on Bill to Cut Coal, Regulation The Nevada Senate Commerce, Labor and Energy Committee late May 17 voted to move a bill that would accelerate the retirement of coal-fired power plants and at the same time strip the Public Utilities Commission of Nevada (PCUN) of some regulatory powers. Some of the state s most powerful interests lined up on opposite sides of the measure, SB 123,which is sponsored by Sen. Kelvin Atkinson (D-North Las Vegas), Assembly Speaker Marilyn Kirkpatrick (D-North Las Vegas) and Assm. David Bobzien (D-Reno). In a joint statement Friday, Gov. Brian Sandoval and U.S. Senate Majority Leader Harry Reid (D-Nev.) called for passage of the bill, which now moves to the full Senate for a vote. Last month NV Energy persuaded lawmakers to amend SB 123, creating deadlines for shutting down the coal-fired, 557 MW Reid Gardner Generating Station and for selling the company s 11.3 percent ownership interest in the coal-fired, 2,250 MW Navajo Generating Station. Under a third amendment to the bill introduced Friday, the utility would be required to build 550 MW of natural gas-fired power and to add 350 MW of renewable energy to offset the capacity loss at Reid Gardner and Navajo. Despite Gov. Sandoval s support for the legislation, the PUCN on May 15 voted 3-0 to oppose it. The commission objected to sections in the bill that would limit its regulatory control over utility rates, utility construction and the acquisition of power plants and renewable-energy facilities. PUCN Chairwoman Alaina Burtenshaw said the inflexible requirements of the bill could create problems for shareholders and customers: It s a huge gamble for the company and the public, she said, 15

20 referring to the utility. But the commission did support the bill s proposed requirement for a comprehensive plan to shut down coal-fired power plants. Nevada Power has obtained only 17 MW of customer-owned renewable distributed generation since The provision would also mandate that NV Energy, a regulated monopoly, compete with small businesses that install solar panels on customer roofs, said Anne-Marie Cuneo, director of regulatory operations. We re creating more of a monopoly with less regulation. That s horrible for ratepayers, Commissioner Rebecca Wagner said before the latest amendment passed. Even the reduced renewables component of the bill would be good news to renewableenergy advocates, who fear NV Energy otherwise will need no more renewable energy to meet the state s renewables portfolio standard. A graph prepared by Western Resource Advocates shows that NV Energy has enough credits to exceed the RPS every year between now and 2025, when the RPS reaches 25 percent of total retail sales. As it stands, powerful state interests and advocacy groups are lining up for and against the bill powerful state interests and advocacy groups are lining up for and against the bill. Timothy Hay, the former Nevada consumer advocate and a former utilities commissioner, on May 16 said he formed the Nevada Consumer Protection Alliance to oppose the bill. Members of the group include former Nevada attorney general Frankie Sue Del Papa, the Retail Association of Nevada and the Nevada Women s Lobby. The bill was outrageous, Hay said. Hay, who ended his term as chief of the Attorney General s Bureau of Consumer Protection in 2005, doubts the Legislature will pass SB 123 in its present form. NV Energy was trying to negotiate terms more acceptable to casinos, said Dan Jacobsen, technical staff manager for the Bureau of Consumer Protection. The bureau is opposed to the bill. Casinos, among the largest power users in Southern Nevada, were also opposed to previous versions of the bill, but several casino operators and the Nevada Resort Association, a trade group, told the energy committee Friday that they supported the bill with the latest amendments.like other businesses, casinos want to minimize power expenses so they can increase profits. SB 123 would mandate that Nevada Power make huge capital expenditures on new generation and transmission, which would likely raise rates. Also in support of the bill is the Sierra Club in Nevada. However, we have had concerns about how [SB 123] interfaces with oversight from the PUCN, Sierra Club lobbyist Joe Johnson told CEM. The club likes the commission s decision to advocate early retirement of coal-fired plants, he said. Longtime Nevada political analyst Jon Ralston likes the chances for the bill s passage. The bill has too much juice not to pass, he told subscribers of his Ralston Reports. c. Colorado Plug-In Car Policies Are Best Among Six Western States The Southwest Energy Efficiency Project on May 15 gave Colorado the top grade for public policies supporting plug-in electric vehicles. Wyoming received the lowest score among the six Western states ranked. Colorado garnered an A- for a dozen policies that promote PEVs, including tax credits of up to $6,

21 Arizona and Utah came next with B- grades. Nevada got a C, and New Mexico a C-. Wyoming scored an F because it has no PEV incentives. Arizona offers eight policies that support PEVs including a $75 tax credit for installation of a car charging outlet in a residence. Also, PEV owners pay lower registration fees and may use high-occupancy vehicle lanes in Arizona. Nevada has six policies that promote PEVs. Electricity is not subject to Nevada s motor fuel tax. Also, state and local governments in high-population areas must use alternative-fuel vehicles, which include PEVs, for 90 percent of new fleet vehicle purchases. New Mexico offers tax credits of up to 5 percent of qualifying expenditures for manufacturers of PEV and hybrid electric vehicles. But the state has no financial incentive promoting purchases of PEVs d. State Links Cap-Trade Program With Quebec s The California Air Resources Board has approved amended regulations that allow the state and the Canadian province of Quebec to link their respective cap and- trade programs beginning in January Under the linkage rules, which the board approved on April 19th, California and Quebec will hold joint quarterly allowance auctions, and carbon allowances and offsets issued by the jurisdictions can be used for compliance purposes in either program. This is an historic step for California as well as for our partners in Quebec, said CARB Chair Mary Nichols. It s a clear recognition that the danger we face in climate change, that is, the danger that we are experiencing even now in a variety of ways, rises above national, state, or provincial boundaries. The linkage has been in the works for almost five years and entailed extensive coordination to ensure the cap-and-trade programs in the two jurisdictions were compatible and provide benefits of a larger program to covered facilities, CARB noted. The board was set to finalize the linkage last June, but had to hold off following the passage of SB 1018, which provided that proposals to link to other jurisdictions on cap and trade must be subject to review by the governor to ensure the programs are equally rigorous. The green light to link with Quebec came by way of an April 8 letter to Nichols from Gov. Jerry Brown, in which he confirmed that the linkage proposal meets the standards put forth by the Legislature. The letter states that the governor s decision to move forward with the linkage was supported by a legal analysis done by Attorney General Kamala Harris. Linking is unlikely to lead to any significant liability because Quebec will follow rules that are as stringent as California s, the governor s letter states. Citing findings by the attorney general, the letter also observes that because of the comparable rigor and structure of the two programs, acceptance of Quebec allowances or offsets will not be the source of a failure associated with linkage. Between now and Jan. 1, when the link will become effective, CARB and the Quebec Ministry of Environment will test and evaluate their auction platforms and trading systems to ensure compatibility and readiness, CARB is to report to the Governor s Office by Nov. 1 on these efforts, and whether any impediments have emerged. As in California, Quebec s cap-and-trade program is also an economy-wide program that covers the largest greenhouse-gas emitters and electricity importers, stated Sean Donovan, an air-pollution specialist at CARB. There are about 80 regulated entities in Quebec s 17

22 program, compared to about 350 in California s. The covered sectors are the same in both programs. The development of a regional target for reducing GHG emissions, and a market-based program to reach the target, was the goal of a 2007 agreement signed by the governors of Arizona, California, New Mexico, Oregon and Washington. The agreement served as the basis for the formation of the Western Climate Initiative. Today, California is the only U.S. state remaining in the WCI, along with British Columbia, Manitoba, Ontario and Quebec, which adopted a cap-and-trade program in December 2011 and, like California, began the compliance phase in January of this year. This is the kind of program that is not meant to be run by and for one state or even one country alone. It needs to be something that will entice and involve others, Nichols said. So it s really tremendously gratifying that we had found at least at this point one very brave and effective jurisdiction that wants to be part of our efforts and, of course, we will be part of theirs as well. e. New Mexico Utility Sees Difficulties With Natural Gas Vehicle Stations New Mexico Gas, a local gas-distribution company, in a regulatory filing April 15 said it must solve regulatory and cost issues before extending gas transmission lines to natural gas fueling stations for vehicles. The company made the comments in response to a decision of the New Mexico Public Regulation Commission in February to review NMG s gas extension policies and their effect on businesses that want to convert gasoline-powered vehicles into natural gas-powered vehicles. NMG said it would like to enable businesses to establish natural gas fuel stations for quick fills of cars and trucks with natural gas within three minutes demand on a natural gas system. A medium-sized compressed natural gas facility sometimes would require the same amount of gas as 30 medium-sized hotels at one location but does so on an unpredictable schedule, NMG said. The natural gas stations can be built next to existing high-pressure lines if those lines have the capacity required, the company said. But the cost of laying a high-pressure line for a vehicle fuel station can make a project uneconomical for NMG even if the customer pays a large portion of the cost, the company said. Furthermore, Rule 16 of the NMPRC states that new customers should not create a burden on existing customers and that new customers must provide additional revenue to support incremental costs, NMG argued. Therefore, the natural gas stations must use slower pumping equipment to minimize changes in the gas distribution system. But slow-fill facilities are less likely to provide effective service for large fleets of natural gas vehicles, the company said. In addition, NMG reported the failure of a predecessor, Gas Company of New Mexico, with a five-year experimental program that the commission approved in The program was designed to encourage conversion of gasoline- and diesel-powered vehicles to natural gas, NMG reported, but the program cost $32 million and the utility lost millions of dollars. A federal requirement to convert federal and state vehicle fleets to natural gas was not enforced, and that dampened demand for natural gas vehicle fuel, the company said. In 2004, the NMPRC permitted the company to sell most of its fueling stations to Clean Energy Fuels, in which T. Boone Pickens owns a 21 percent interest. NMG said 14 natural 18

23 gas stations in New Mexico now sell natural gas for use in vehicles and 10 companies have proposed stations. But 17 natural gas stations have closed. NMG sells gas to natural gas fueling stations for 5 cents/therm, a discount from the 15 cents/therm for other small commercial customers, according to the company. f. Sempra U.S. Gas and Power and Consolidated Edison Development (ConEdison Development) Announce Solar Partnership Sempra and Consolidated Edison reached an agreement to partner in two of Sempra U.S. Gas and Power's solar power facilities, the 150-megawatt (MW) Copper Mountain Solar 2 plant near Las Vegas and the 150-MW Mesquite Solar 1 power plant near Phoenix. Under the sales agreement, each company will own a 50-percent interest in the two solar facilities, which are among the largest photovoltaic plants in the U.S. Sempra U.S. Gas and Power will continue to provide operations and maintenance services to both plants. "This strategic partnership bolsters Sempra U.S. Gas and Power's ongoing plan to improve its financial returns, deconsolidate debt and redeploy the proceeds from the transaction into new renewable growth projects," said Kevin C. Sagara, vice president of renewables and corporate development for Sempra U.S. Gas and Power. "We look forward to partnering with Consolidated Edison Development to continue operating world-class solar facilities that supply clean, emission-free electricity to our customers, and to capitalize on our shared view of near-term growth opportunities." "This transaction provides ConEdison Development with the opportunity to work with an outstanding partner while we expand our presence throughout the United States," said Mark Noyes, vice president of ConEdison Development. "We are partnering in two strategic renewable assets, both with strong project fundamentals, and advancing our commitment to growth in the renewable energy marketplace." Construction on Mesquite Solar 1, located in Arlington, Ariz., began in Power from the facility has been sold to Pacific Gas and Electric under a 20-year contract. Mesquite Solar 1 generates enough clean electricity for about 56,000 homes. The project created 528 local construction jobs at the peak of construction and 10 long-term positions. Phase 1 of Copper Mountain Solar 2 is complete and is currently generating 92 MW of clean solar power. When the second phase is fully constructed, expected in 2015, the project's total operating capacity will be 150 MW. Power from the facility has been sold to Pacific Gas and Electric under a 25-year contract. In September 2011, the U.S. Department of Energy's Loan Program Office awarded Mesquite Solar 1 a $337 million loan guarantee that enabled it to build this innovative photovoltaic plant, one of the largest in the U.S. The agreement is subject to approvals from the U.S. Department of Energy and regulatory agencies. Those approvals are anticipated in the second half of The terms of the sale were not disclosed. 19

24 4. Conferences, Workshops, and Meetings CEC IEPR Workshop on Preliminary Electricity and Natural Gas Demand Forecasts May 30, :00 a.m. CALIFORNIA ENERGY COMMISSION 1516 Ninth Street, Hearing Room A Sacramento, California The California Energy Commission Lead Commissioner on the Integrated Energy Policy Report (IEPR) will conduct a workshop to explore a range of perspectives on the future of end-user energy demand in California over the next 10 years. Staff from the Energy Commission and load-serving entities (LSEs) will present and discuss their respective 10- year forecasts of electricity consumption and peak demand and, where appropriate, end-use natural gas consumption. Energy Commission staff will also present details regarding treatment of potential energy efficiency, self-generation and climate change impacts on demand. CEC Staff Workshop on Challenges to Procuring Biomethane in California March 31, :00 a.m. California Energy Commission 1516 Ninth Street Hearing Room A Sacramento, California California Energy Commission staff will conduct a workshop to assess the challenges to biomethane procurement in California and the potential solutions. This workshop will focus on the requirements of Assembly Bill 1900 (Gatto, Statutes 2012, Chapter 602). Energy Commission staff is seeking input from stakeholders, industry experts, and the public to identify challenges that limit the procurement of biomethane in California. Public input from this workshop will inform the development of the 2013 Progress-to Plan for the Bioenergy Action Plan. Although this is a staff workshop, CEC Staff Workshop on Status of Bioenergy Development in California JUNE 3, :00 AM CALIFORNIA ENERGY COMMISSION 1516 Ninth Street First Floor, Hearing Room A Sacramento, California California Energy Commission staff will conduct a workshop to discuss the status of bioenergy development in California and the challenges in developing bioenergy. Public input from this workshop will inform the development of the 2013 Progress-to-Plan for the Bioenergy Action Plan. The Energy Commission is seeking input from stakeholders, industry experts, and the public on possible recommendations to address challenges to development of bioenergy. Biomethane challenges will not be discussed at this workshop. 20

25 CARB Board Hearing ZEV Regulations - Minor Amendments September 26-27, 2013 Byron Sher Auditorium Sacramento, CA The Air Resources Board (ARB or Board) staff is developing a proposal for minor modifications to the Zero Emission Vehicle (ZEV) Regulation. Minor modifications include clarifying the Section 177 state optional compliance path provision, defining how caps apply to a manufacturer s requirement, and excluding battery swapping as a fast refueling technology. A one-day workshop to discuss staff s proposed modifications was conducted on May 20, 2013, in Sacramento, California. 21

26 Sector Strategies 2013 年 度 報 告 書 2013 年 7 月 1. 報 告 書 1.1. Southern California Edison (SCE)によるプラグイン 電 気 自 動 車 充 電 に 関 するレポート SCE は 電 気 自 動 車 の 充 電 に 関 するレポート Charged Up: Southern California Edison s Key Learnings about Electric Vehicles, Our Customers and Grid Reliability を 発 表 SCE の 顧 客 は 全 体 で 12,000 台 のプラグイン 電 気 自 動 車 ( 電 気 自 動 車 35% プラグインハイブリ ッド 車 65%)を 所 有 2020 年 までには 35 万 台 まで 拡 大 すると 予 測 している SCE は 2009 年 から 電 気 自 動 車 の 普 及 に 向 けて 配 電 回 路 のアップグレードを 行 ってきており 現 在 400 箇 所 以 上 のアップグレードが 完 了 している プラグインハイブリッドに 関 しては 所 有 者 の 50% 程 度 が Level1 での 充 電 を 行 っているため 電 力 網 に 対 するイン パクトは 大 きくない 1.2. 米 国 内 の 太 陽 発 電 施 設 における 土 地 利 用 の 条 件 について 大 規 模 の 太 陽 発 電 施 設 の 展 開 を 受 け どのくらいの 土 地 が 必 要 とされるのかに 関 し ては 詳 しい 研 究 がされてこなかった 国 立 再 生 可 能 エネルギー 研 究 所 はこのテーマ で 研 究 を 行 い 1,000 家 庭 分 の 電 力 を 供 給 するための 太 陽 光 発 電 パネルの 設 置 に 必 要 な 土 地 は 32 エーカーであると 発 表 詳 細 を 見 ると 利 用 される 技 術 により 必 要 な 土 地 の 広 さは 異 なる 1GWh/yr を 発 電 する 太 陽 光 発 電 パネルの 場 合 は 2.8 エーカー こ れがディッシュ 式 太 陽 熱 発 電 となると 5.3 エーカーが 必 要 になる 2008 年 の 研 究 で は 米 国 全 体 の 電 力 需 要 を 100%まかなうのに 必 要 な 土 地 は 国 土 全 体 の 1%にも 満 たな いとされている 1.3. Office of Environmental Health Hazard Assessment (OEHHA) カリフォルニアの 気 候 の 変 化 を 表 す 指 標 についてのレポート OEHHA は 合 計 27 の 気 候 の 変 化 を 表 す 指 標 を 発 表 これらの 指 標 は 州 連 邦 政 府 大 学 や 研 究 所 などによる 研 究 結 果 から 引 き 出 されたもの レポートによるとカリフ ォルニア 州 全 体 で 気 候 の 変 化 が 起 こっていることがわかる 温 暖 化 に 伴 い 水 の 量 が 減 り 海 面 が 上 昇 山 火 事 の 増 加 や 湖 や 海 水 の 温 度 上 昇 などが 指 摘 されている 1.4. 電 力 網 の 修 理 についてホワイトハウスからのレポート 米 国 における 停 電 による 経 済 的 損 失 は 毎 年 180 億 ドルから 330 億 ドルといわれてい る ハリケーンなどの 被 害 によって 今 後 400 億 ドルから 750 億 ドルまで 拡 大 する 可 能 性 がある ECONOMIC BENEFITS OF INCREASING ELECTRIC GRID RESILIENCE TO WEATHER OUTAGES では 電 力 網 をより 柔 軟 なものに 強 化 することで 莫 大 な 経 済 的 効 果 が 得 られるとのこと 電 力 網 のアップグレードを 行 うには 今 後 20 年 間 毎 年 210 億 ドル 程 度 のコストがかかるが 電 力 網 が 強 化 されれば 停 電 回 避 が 可 能 になることで 年 間 790 億 ドルから 940 億 ドルのコスト 回 避 が 可 能 になる

27 2. カリフォルニア 州 政 策 情 報 2.1. カリフォルニア 大 気 資 源 局 AB32 計 画 に 関 する 2013 年 の 最 新 情 報 をまとめる カリフォルニア 大 気 資 源 局 (CARB)は AB32 に 基 づき 2020 年 までの 温 室 効 果 ガス 排 出 削 減 の 目 標 達 成 に 向 け スコーピングプランを 作 成 中 CARB は 2008 年 から 5 年 ご とにロードマップを 改 定 するよう 義 務 付 けられている AB32 には 2020 年 以 降 の 目 標 は 明 記 されていないが シュワルツェネッガー 前 知 事 による 州 知 事 命 令 である S- 3-05(2050 年 までに 温 室 効 果 ガス 排 出 のレベルを 1990 年 時 点 の 80%まで 削 減 する) の 達 成 にむけての 計 画 もこの 計 画 に 盛 り 込 まれる 予 定 2.2. Sacramento Municipal Utility District 電 気 自 動 車 急 速 充 電 器 を 設 置 Sacramento Municipal Utility District (SMUD) は 電 気 自 動 車 を 30 分 程 度 で 充 電 できる 拘 束 充 電 器 を 4-5 台 設 置 する SMUD 本 部 に 1 台 その 他 サクラメント 郡 の 外 周 を 囲 むような 位 置 に 配 置 する 予 定 電 気 自 動 車 が 抱 えるレンジアングザエティ( 充 電 が 切 れることを 懸 念 して 遠 くまで 足 を 延 ばせない 現 象 )の 解 消 を 狙 う 2.3. 温 室 効 果 ガスのオフセットクレジット 承 認 される American Carbon Registry は Environmental Credit Corp に 対 しオフセットクレジットを 発 行 1 クレジットは 1 メートルトンの 二 酸 化 炭 素 が 大 気 中 から 除 去 されたという 計 算 をされている クレジットをカリフォルニア 州 のキャップアンドトレードプロ グラムによる 排 出 削 減 義 務 に 適 用 することはできない プロジェクト 関 係 者 はます CARB に 対 しクレジットの 申 し 込 みを 行 い 承 認 されればそのクレジットをキャップ アンドトレードプログラムの 下 で 削 減 目 標 を 達 成 する 必 要 がある 企 業 などに 販 売 す ることができる 2.4. カリフォルニア 大 気 資 源 局 Low Carbon Fuel Standards 実 行 開 始 も CEQA に 違 反 カリフォルニア 大 気 資 源 局 (CARB)は 承 認 した Low Carbon Fuel Standards について 承 認 した 際 に 踏 むべき 手 順 を 踏 まなかったことが 判 明 し 上 訴 裁 判 所 にて LCFS の 実 行 は 引 き 続 き 行 いつつ CEQA の 環 境 レビュープロセスを 踏 むこととなった 2.5. カリフォルニア 州 恒 久 的 ロードシフトプログラムを 実 行 カリフォルニア 公 益 事 業 委 員 会 (CPUC)は 株 式 上 場 電 力 会 社 3 社 に 対 し 共 通 のプロ グラムデザインルールを 持 った 恒 久 的 なロードシフトプログラムの 提 案 を 義 務 付 け る 決 議 を 行 った このプログラムでは 蓄 熱 やその 他 のエネルギー 貯 蔵 設 備 に 対 しイ ンセンティブを 提 供 する ピークロードを 移 行 することで 追 加 の 発 電 容 量 を 建 設 す る 必 要 性 を 減 らすことができる 2.6. Perez 議 員 により RPS51% 議 案 が 提 出 される

28 ブラウン 知 事 は RPS33%は 最 終 目 標 でなく 最 低 目 標 であると 発 言 しているが その 先 を 実 現 するための 議 案 が 提 出 された Perez 議 員 は 2030 年 までに 全 ての 電 力 会 社 ( 民 間 公 共 を 問 わず)に 対 し RPS51%を 義 務 付 ける 法 案 を 退 出 2014 年 に 議 会 を 通 過 するかどうかが 焦 点 となる 2.7. CAISO デマンドレスポンス 実 施 への 課 題 カリフォルニア 独 立 系 統 運 用 機 関 (CAISO)は 省 エネとデマンドレスポンスがピーク 需 要 を 減 らし 結 果 として 電 力 網 や 新 規 の 発 電 施 設 への 投 資 を 回 避 することを 可 能 に するための 計 画 を 立 てている その 中 でデマンドレスポンス 太 陽 光 発 電 エネル ギー 貯 蔵 マイクログリッドなどの 分 散 電 源 を 活 用 する 必 要 があるとしている 分 散 電 源 の 導 入 により ピーク 需 要 を 減 らし エネルギー 市 場 の 電 力 ロードの 形 を 変 えることや 各 地 域 に 電 力 容 量 を 提 供 するなどの 利 点 が 期 待 される 2.8. エネルギー 委 員 会 が 公 共 電 力 会 社 において 再 生 可 能 エネルギープログラムを 実 行 カリフォルニアエネルギー 委 員 会 (CEC) は 公 共 電 力 会 社 に 対 し 2020 年 までの RPS33% 達 成 を 確 実 にするための 新 しい 規 制 を 承 認 した このルールや 手 続 きを 利 用 し CEC は 州 内 に 45 ある 公 共 電 力 会 社 の 調 達 行 動 が RPS に 適 応 するかどうかの 判 断 を 行 う 今 回 の 新 規 制 では 公 共 電 力 会 社 は CEC に 対 し 調 達 計 画 を 提 出 し CEC が 判 断 を 下 すというプロセスを 義 務 付 けている 2.9. 大 気 資 源 局 電 気 自 動 車 クレジットの 電 池 交 換 に 関 わるのルールを 見 直 し カリフォルニア 大 気 資 源 局 (CARB)は 現 在 の 電 気 自 動 車 メーカーが 取 得 できるゼロエ ミッションクレジットの 規 定 の 変 更 を 検 討 している 現 在 "Fast Fueling と 呼 ばれる ルールがあり 充 電 をする 代 わりに 車 載 電 池 を 取 り 替 えることができる 電 気 自 動 車 に 関 しては 追 加 でクレジットが 与 えられている Tesla Motors はこの 特 別 クレジット も 含 め 大 量 のクレジットを 取 得 し それを 販 売 することで 利 益 損 失 を 補 填 してい るため クレジットが 減 少 することは 同 社 の 経 営 状 況 に 大 きな 影 響 を 与 えることに なる 10 月 に 行 われる 役 員 会 で この 特 別 クレジットについての 判 断 がされる 予 定 Natural Gas Vehicle Coalition 天 然 ガス 車 の 市 場 拡 大 を 予 測 Natural Gas Vehicle Coalition は 2020 年 までに 天 然 ガス 車 両 の 普 及 によって 上 手 くい けば 年 間 ガソリン 15 億 ガロン 相 当 の 消 費 を 削 減 できるとの 予 測 をしている 全 米 で 普 及 している 1,200 台 の 天 然 ガス 車 のうち 400 台 がカリフォルニア 州 に 存 在 する 3. 米 国 西 部 関 連 情 報 3.1. Western Governors Association が 今 後 10 年 のエネルギービジョンを 発 表 Western Governors Association( 米 国 西 部 19 州 と 3 つの 米 国 海 外 領 土 の 代 表 が 集 う 協 会 )は 今 後 10 年 のエネルギービジョンを 発 表 送 電 網 や 石 油 採 掘 及 びパイプライ

29 ンの 強 化 などにおいて 協 力 を 続 けていくことを 強 調 した 同 時 に 温 室 効 果 ガス 排 出 削 減 や 野 生 生 物 の 保 護 水 の 需 要 削 減 などについての 対 策 にも 言 及 した 3.2. アリゾナ 州 において 電 力 会 社 の 規 制 緩 和 Arizona Corporation Commission は 電 力 小 売 市 場 導 入 の 再 検 討 を 決 め 大 規 模 顧 客 Goldwater Institute や Federal Trade Commission から 賞 賛 を 浴 びている 一 方 州 の 電 力 会 社 は 住 宅 顧 客 向 け 電 力 料 金 が 上 がることを 理 由 に 反 対 小 売 市 場 の 導 入 が 決 定 さ れれば 電 力 網 アップデートのための 投 資 計 画 も 停 止 せざるを 得 ないとコメントし ている 4. 連 邦 政 府 関 連 4.1. 環 境 保 護 局 が 製 油 所 に 対 するバイオ 燃 料 の 混 合 義 務 量 を 削 減 環 境 保 護 局 (EPA)は 2014 年 のガソリン 精 製 の 際 に 義 務 付 けられるバイオ 燃 料 混 合 の 義 務 量 を 削 減 すると 発 表 これまで 石 油 業 界 から ガソリンの 需 要 が 年 々 下 がる 中 製 油 所 に 対 して 課 せられるバイオ 燃 料 の 混 入 義 務 量 が 年 々 増 えていくことが 現 実 的 でないというコメントが 出 てきていた 4.2. 環 境 保 護 局 とセルロース 系 バイオ 燃 料 環 境 保 護 局 はついにこれまで 楽 観 的 過 ぎると 指 摘 され 続 けていたセルロース 系 バイ オ 燃 料 の 生 産 予 測 を 変 更 今 年 初 めに 2013 年 全 米 の 製 油 所 に 課 せられるセルロース 系 バイオ 燃 料 混 入 の 義 務 は 1400 万 ガロンといわれていたが 結 局 は 大 幅 に 削 減 され 600 万 ガロンに 決 定 しかしこの 600 万 ガロンも 昨 年 実 際 米 国 内 で 生 産 されたバイ オ 燃 料 の 量 (20,069 ガロン)をはるかに 超 える 値 である を 製 油 所 は 義 務 量 を 混 入 するか 同 等 価 値 のバイオ 燃 料 クレジットを 購 入 する 必 要 がある 5. 今 後 の 会 議 ワークショップ

30 NEDO POLICY Report July 2013 INDEX Reports Southern California Edison Report on PEV Charging Page 2 Land-Use Requirements for Solar Power Plants Page 4 in the United States OEHHA Report - Indicators of Climate Change in California Page 4 White House Report on Grid Repairs page 6 California Policy Update CARB Preparing 2013 Update of AB 32 Scoping Plan Page 7 SMUD PEV Fast Chargers Page 9 GHG Offset Credits Approved Page 9 Air Resources Board Low Carbon Fuel Standards Page 10 Regulations Violate CEQA California Implementing Standardized Permanent Page 12 Load Shifting Program Assembly Member Pérez Introduces 51 Percent RPS Bill Page 13 CAISO - Challenges for Demand Response Page 13 Energy Commission Implements Renewable Program Page 15 for Public Utilities CARB Reviews Battery Swap Rule Page 16 Natural Gas Vehicle Coalition Forecasts Strong Page 17 Market Growth Western Region Western governors unveil 10-year energy 'vision' Page 17 Electric Utility Deregulation in Arizona Page 19 Federal Activity EPA Biofuel Reversal Page 20 EPA and Cellulosic Biofuels Page 21 Conferences, Workshops and Meetings Page 21 1

31 1. Reports a. Southern California Edison Report on PEV Charging Southern California Edison (SCE) released a white paper summarizing lesson learned from its Electric Vehicle (EV) readiness program. The paper, Charged Up: Southern California Edison s Key Learnings about Electric Vehicles, Our Customers and Grid Reliability, shares information based on customer data and utility operations gathered since SCE began to prepare the distribution system and its customers for widespread electric vehicle (EV) adoption in its service territory. Currently, SCE customers lease or own more than 12,000 plug-in electric vehicles (PEVs), both battery electric (BEVs, for about 35%) and plug-in hybrids (PHEVs, for about 65%) about 10% of national EV sales. (SCE estimates that by 2020, there will be about 350,000 PEVs in its service territory.) Because California leads the nation in EV adoption, other utilities and stakeholders in the auto industry may find the information from the white paper useful. SCE began its PEV readiness efforts in 2009, and quantified the anticipated impact of PEVs on the electric grid before consumers began buying and leasing them. Because early adopters tend to cluster in the same neighborhoods and adding a plug-in vehicle is like adding another house to the circuit, in terms of load, SCE developed an operational strategy to upgrade distribution circuits. Over time, circuits need to be resized to match the changing needs of customers. Just as SCE now sizes its transformers to serve plasma TVs, it integrated the expected load from PEVs into standards applicable to its grid modernization efforts. Since 2010, of all the nearly 400 upgrades made to (or identified for) circuits that serve PEV customers, only 1% of that work was required due to additional power demands from PEVs. The rest of the work was required under the regular infrastructure upgrade and maintenance schedule. Current data shows that about 50% of PHEV drivers in the SCE territory charge at Level I (120 volts), resulting in a much lower impact on grid distribution circuits than if more customers charged at Level 2 (240 volts). With 70% of SCE PEV owners commuting 40 miles or less daily, many PEV owners can fully recharge at night at Level 1; SCE encourages PEV customers to charge up every night at home. The paper notes one caveat an increasing market share of BEVs coming with onboard chargers with higher capabilities (from 3.3 kilowatts to 6.6 kilowatts or even higher). This could create new implications for grid reliability, which SCE is monitoring, it said. SCE said it encourages its PEV customers to contact the utility for their charging needs, so it can ensure that local distribution circuits meet the additional energy demands of growing numbers of BEVs. 2

32 The paper also highlights the challenge with provision of a charging infrastructure to multi-family residences e.g., urban dwellers without a garage for a charger. About half of SCE s residential customers live in multi-dwelling units, such as condos and apartments. SCE research finds that despite high interest among condo/townhome owners and renters in purchasing a PEV within five years, fewer than 5% of building owners or condominium associations are even considering installing the necessary infrastructure. SCE summarized its other takeaways from the readiness program as follows: Its approach to managing PEV-grid impact is meeting customers needs. Using the end charge time programming feature (when drivers program their charging to be complete by a specific time) is better for grid reliability and neighborhood circuits. When customers set an end charge time for charging to be complete, they randomize the start time of their charging, which prevents a large number of vehicles from coming online at the same time avoiding powerload spikes that potentially could affect the local distribution system. When 15,000 SCE customers visit the SCE EV website monthly, about 46% make their first stop with the Plug-In Car Rate Assistant Tool, which helps estimate charging costs. Customers also click to find out more about public charging station locations from the link to the US Department of Energy s map, watch videos on EVs and read background materials on environmental benefits and home electric infrastructure requirements. Initial findings show early adopters of battery-electric vehicle (BEV) technology demonstrate consistent and predictable behavior. A sample of Nissan Leaf owners have indicated that any range anxiety had been eliminated after driving their new BEV over time. Most reported their overnight charging at 240 volts was sufficient to support their daily driving patterns. Virtually all of the 180 cities in SCE s service territory are committed to helping their residents plug in by streamlining permitting and inspection processes. According to SCE, charging an electric vehicle can use as much power as the rest of the household uses in a typical day. If homeowners with electric cars opt to install a higher-voltage Level 2 charger, the resulting increase in instantaneous power demand can tax the local grid. But SCE says it's finding that about half of its customers with EVs use Level 1 chargers, which use regular 120-volt house current. "We're seeing a much lower impact on our grid distribution circuits than if more customers charged at the higher Level 2." The utility says that only about 1 percent of the transformer upgrades it's performed in the last few years have stemmed from demand for charging EVs. s.com/166/files/20136/sce-evwhitepaper2013.pdf 3

33 b. Land-Use Requirements for Solar Power Plants in the United States One concern regarding large-scale deployment of solar energy is its potentially significant land use. Efforts have been made to understand solar land use estimates from the literature (Horner and Clark 2013); however, a comprehensive evaluation of solar land use requirements from the research literature has been lacking. The National Renewable Energy Laboratory (NREL) set out to answer this question for large-scale solar energy: How much land would be needed. The answer turns out to be around 32 acres of solar arrays to serve 1,000 families, according to a study by Golden-based NREL. The amount of needed land varied by technology with the necessary total area ranging, based on generating capacity, from 2.8 acres per gigawatt-hour per year for a photovoltaic-panel installation, which follows the sun, to 5.3 acres for a Dish Stirling concentrating-solar unit, which uses mirrors to concentrate the sun's heat. By the third quarter of 2012, the United States had deployed more than 2.1 gigawatts of utility-scale solar-generation capacity, and another 4.6 gigawatts was under construction. Much of that is being constructed in Southwestern and California deserts, and while there have been some land-use issues surrounding endangered species and unique ecosystems, there has also been a larger debate over the comparative land needs for various forms of old and new energy. A 2008 NREL study had estimated that it would take less than 1 percent of the total U.S. land area to meet 100 percent of national electricity demand. That calculation was made through projected analysis, while the current study is based on the land use of constructed solar plants. c. OEHHA Report - Indicators of Climate Change in California The Office of Environmental Health Hazard Assessment (OEHHA), in its capacity as lead agency for the Environmental Protection Indicators for California (EPIC) Project, has prepared a report presenting indicators of climate change in California. A total of 27 climate change indicators are presented. The indicators draw upon data collection, monitoring and studies by state and federal agencies, universities and research institutions; many of the indicators are derived from research studies funded by the California Energy Commission s Public Interest Energy Research (PIER) Program. The indicators highlighted in the report show that climate change is occurring throughout California, from the Pacific Coast to the Central Valley to the Sierra Nevada Mountains. Impacts of a warmer climate include decreasing spring snowmelt runoff, rising sea levels along the California coast, shrinking glaciers, increasing wildfires, warming lakes and ocean waters, and the gradual migration of many plants and animals to higher elevations. 4

34 "Whether you live in California, Texas or Timbuktu, climate change is real, and it s long past time for action," said Governor Edmund G. Brown Jr. The new report complements a consensus statement released in May by Governor Brown and signed by thousands of researchers and scientists identifying climate change as one of five key threats to the environment that require immediate action. "The combined impact described by these indicators is dramatic," said California Environmental Protection Agency (Cal/EPA) Secretary Matthew Rodriquez. "This report underscores the need for California to continue to lead the fight against global warming and protect both our environment and our economy for future generations." Cal/EPA s Office of Environmental Health Hazard Assessment (OEHHA) compiled the 36 indicators of climate change, drawing upon monitoring data from throughout the state and a wide variety of research studies carried out by state and federal agencies, universities and research institutions. One of the report s positive findings is that California s industries are becoming more energy efficient, with emissions of greenhouse gases declining per $1,000 of economic output, a sign that the state s efforts to reduce emissions are having positive effects. Yet, the state s overall emissions of heat-trapping gases increased between 1990 and 2011, and atmospheric concentrations of carbon dioxide and methane continue to rise. Key findings of the report include: Temperatures: The state s high, low and average temperatures are all rising, and extreme heat events also have increased in duration and frequency. The rate of warming has accelerated since the mid-1970s, and nighttime (minimum) temperatures have increased almost twice as fast as maximum (daytime) temperatures. Wildfires: The number of acres burned by wildfires has been increasing since The size, severity, duration and frequency of wildfires are greatly influenced by climate. The three largest fire years on record in California occurred in the last decade, and annual acreage burned since 2000 is almost twice that for the period. Water: Spring snowmelt runoff has decreased, indicating warmer winter temperatures and more precipitation falling as rain rather than snow. Earlier and decreased runoff can reduce water supplies, even when overall rainfall remains the same. This trend could mean less water available for agriculture, the environment and a growing population. 5

35 Coast and Ocean: A number of indicators reflect physical and biological changes in the ocean, impacting a range of marine species, including sea lions, seabirds and salmon. And data for Monterey Bay shows increased carbon dioxide levels in coastal waters, which can harm shell-forming organisms and have impacts throughout the marine food chain. Species Migration: Certain plants and animals have responded to habitat changes influenced by warming. For example, conifer forests in the Sierra Nevada have been moving upslope and certain small mammals in Yosemite National Park have moved to higher elevations compared to the early 1900s. California is one of the first states in the nation to compile its own set of indicators characterizing the multiple facets of climate change. While most reports on climate change present future scenarios or projections, this report provides a retrospective account of impacts from climate change that have already occurred. The report updates and expands on the climate change indicators report released in Most of the indicators in the current report were initially covered in the 2009 report. A related report, produced in 2010, presented indicators of the disproportionate impacts of climate change on disadvantaged California communities. Both reports serve to inform efforts by State agencies to understand and lessen the impacts of climate change in California. d. White House Report on Grid Repairs The cost of weather-related power outages is high and rising as storms grow more severe and the U.S. electric grid gets older, according to an Obama Administration report that calls for increased spending on the nation's electric power system. Power outages cost the economy $18 billion to $33 billion per year, according to the report, a figure that has been rising steadily over the past 20 years. That can rise to $40 billion to $75 billion in years with severe storms such as 2008's Hurricane Ike and last year's Superstorm Sandy. The White House report, ECONOMIC BENEFITS OF INCREASING ELECTRIC GRID RESILIENCE TO WEATHER OUTAGES was released August 5, 2013, said spending to make the grid stronger and more flexible will save the economy billions of dollars. The administration proposes spending on training and preparation, stronger equipment such as concrete poles, and more advanced sensing and diagnostic equipment that can predict failures, prevent them from getting worse and restore power faster after it has gone out. Storms cause most of the nation's power outages. Thunderstorms, hurricanes, blizzards and other extreme weather caused 58 percent of all outages studied since 2002 and 87 percent of outages affecting 50,000 or more customers. 6

36 At the same time, according to the report, the U.S. electric grid is getting old. The average U.S. power plant is 30 years old and 70 percent of the grid's transmission lines and transformers are at least 25 years old, making them weaker and more susceptible to failure in storms. The White House report says increased spending in recent years has still not matched the level of investment between 1960 and It suggests new spending should be focused on a few main areas, including, "hardening" the system by installing stronger equipment, building more transmission wires and energy storage systems to make the grid better able to absorb shocks, and installing more sophisticated technology. The report does not suggest how much new spending was needed, where that spending would come from or how much money preventing some outages and making others less severe would save. Massoud Amin, an electrical engineering professor at the University of Minnesota, Minneapolis, who has long advocated increased spending on better grid technology, says the benefit to improving the grid far outweighs the cost of investment. He estimates that a modern, efficient grid would cost $21 billion per year for 20 years. He calculates savings resulting from a better grid would amount to $79 billion to $94 billion per year. NAL.pdf 2. California Policy Update a. CARB Preparing 2013 Update of AB 32 Scoping Plan The California Air Resources Board is developing a 2013 update to the state s AB 32 scoping plan, one that will lay the groundwork for achieving greenhouse gas emissions reductions in California beyond Under AB 32, CARB is required to update the scoping plan every five years. The first plan, adopted in 2008, provides a road map to reduce GHG emissions in the state to 1990 levels by While there is no post-2020 emissions-reduction mandate in AB 32, CARB said the 2013 scoping plan would address then-gov. Arnold Schwarzenegger s executive order S-3-05, which established a statewide GHG emissions-reduction target of 80 percent below 1990 levels by Executive order B , by Gov. Jerry Brown, created an identical 2050 target for the transportation sector. Before issuing an updated draft plan in September 2013, CARB and other state agencies have been previewing focus areas at recent public workshops throughout the state. California is counting on a suite of measures to achieve the 2020 goal, including the renewable portfolio standard, energy efficiency and conservation, increased combined-heat-and-power generation, the Million Solar Roofs initiative, 7

37 cap and trade and the low-carbon fuel standard. CARB has indicated that several existing programs, including cap and trade, are slated to continue beyond And as is the case with the 2008 scoping plan, the energy sector will continue to play a key role in achieving post-2020 emissions reductions. The energy sector is responsible for roughly 40 percent of statewide GHG emissions, according to CARB. At a recent scoping-plan workshop held in Diamond Bar, Sekita Grant, an adviser to CEC Chair Robert Weisenmiller, noted that future energy-sector initiatives will likely include near-zero-net-energy buildings, an electricity-production system that is nearly decarbonized, sustainable bioenergy systems, localized renewable generation, solar space and water heating and a highly flexible and robust transmission and distribution system. This is really the meat of what we re looking at in the energy sector for the 2013 scoping-plan update, said Grant. The CEC is involved in the development of recommendations for the energy sector, along with CARB, the CEC, the California Environmental Protection Agency, Cal-ISO and the CPUC. The scoping plan will also identify barriers to achieving the massive reductions set forth in the executive orders. In order to obtain these goals and reach the vision we see for 2050, we have to overcome quite a few challenges, Grant stated. Demand response, for example, considered an important tool for achieving load reduction, presents a number of challenges including dispatchability in the Cal-ISO market. Right now, it s operating at the retail level, so we need to find a way to make it visible or dispatchable to the ISO, Grant said. She also added that enabling technologies for automatic control are essential to greater reliance on demand response. Technological advancements for storage, smart grid and demand response will also be needed for renewables integration, Grant observed. We need to shift away from some of the more traditional baseload generation and figure out ways to integrate Renewables without adding GHG emissions into the air, Grant stated. Other areas that will require examination include sustainable feedstock for bioenergy production, interconnection and rate design for distributed generation, and development of carbon capture-and-storage technologies for natural gas systems. The energy industry will also play a role in reducing emissions in other sectors such as transportation, where there will be an increased reliance on electricity as a fuel source. A report by the California Council on Science and Technology concluded that an 80 percent reduction in GHG emissions by 2050 will likely require maximizing efficiency in all economic sectors, electrification of much of the transportation sector and many stationary uses of heat, a doubling of electricity production with nearly zero emissions, and development of low-carbon fuels (see CEM No

38 Even as state agencies work to develop recommendations for achieving emissions reductions en route to the 2050 goal, some stakeholders are charging the target is not ambitious enough. The urgency of the need to slow climate disruption, combined with the demonstrated ability for Californians to achieve assertive reduction goals, call for a 2040 goal of at least 95 percent GHG reduction, and for CARB to make such a recommendation to the noted in comments submitted to CARB this month. ARB is accepting input for the 2013 scoping plan update through August 5, The board is due to consider the plan in November. b. SMUD PEV Fast Chargers The Sacramento Municipal Utility District will be deploying four or five fast electric car chargers that can recharge the most modern electric vehicles in 30 minutes. There will be one installed at SMUD s headquarters and at locations at the edges of the county, such as off Interstate 80 near Citrus Heights, off Interstate 5 in Elk Grove, off Highway 50 in Folsom and up north on Interstate 5. It adds a safety net to the range issue, and it will help knock down a fear of going electric, said Bill Boyce supervisor of electric transportation research with the utility. Regular charging can take four hours or more. These chargers only will work with DC Fast Charge capable cars such as the Chevy Spark EV, Nissan Leaf, Mitsubishi i-miev and new electric cars being introduced by BMW and Volkswagen. The Tesla has its own charging system and will not work with DC Fast Charge, and the Chevy Volt only accepts lower power charging. The Volt plugs into a standard power 110-volt outlet. The DC Fast Charge is a 480 volt system. Portugal-based Group Efacec, which makes the chargers, has been in the electricity and technology business since It founded its U.S. headquarters in Norcross, Ga., which is where the DC fast chargers are manufactured. The chargers cost about $30,000 and cost about $60,000 to install, Boyce said. The funding for the chargers is from carbon allowance options generated by carbon offsets of the Global Warming Solutions Act of 2006, a California law that seeks to reduce greenhouse gasses. c. GHG Offset Credits Approved California is still forging ahead with important changes to the controversial cap-andtrade program. In early August 2013, the American Carbon Registry issued the state s first compliance offset credits to a company called Environmental Credit Corp. Each offset credit counts toward one metric ton of carbon dioxide removed from the atmosphere. 9

39 The registry credits cannot be used directly to meet greenhouse gas emission obligations under the state s cap-and-trade program. Project operators still must apply directly to the California Air Resources Board (CARB), which then grants its own offset credits after a thorough review of the project. At that point, the registry s offset credits are cancelled. The project operator can then sell the CARB offset credits to companies needing to meet cap-and-trade compliance limits under the program. Offset credits are different than allowances, which are auctioned by CARB several times a year. Offsets are created through approved projects, which actively eliminates greenhouse gas emissions. Companies can either buy offsets or allowances to meet their emissions limits under their respective cap. In the move from earlier this week, the registry issued 300,000 offsets to Environmental Credit for a project that destroyed ozone-depleting substances. As mentioned above, CARB still has to verify the credits. The move comes at a busy time for the cap-and-trade system. In July 2013, California signed an agreement with Australia that could allow companies to allow companies to trade with that country s cap-and-trade program. This is another action by CARB indicating that they are not planning any slow down in their efforts to administer AB 32 and the cap-and-trade program. All this activity is occurring in the face of pending litigation. In late August 2013, the state will defend the cap-and-trade system in Sacramento Superior Court. A coalition of companies, including Morning Star Packing Co. and the California Chamber of Commerce has sued the CARB in two different cases over the program s auction. Initial hearings for both suits are set for Aug d. Air Resources Board Low Carbon Fuel Standards Regulations Violate CEQA On July 15, 2013, the State of California Court of Appeal, Fifth Appellate District issued its opinion in POET, LLC v. California Air Resources Board (July 15, 2013) 217 Cal.App.4th 1214, --- Cal.Rptr.3d ----, 2013 WL (Cal.App. 5 Dist.), 2013 Daily Journal D.A.R The Court held that the Low Carbon Fuel Standard (LCFS) would remain in effect and that the Air Resources Board (ARB) can continue to implement and enforce the 2013 regulatory standards while it corrects certain aspects of the procedures by which the LCFS was originally adopted. Accordingly, ARB staff is continuing to implement and enforce the LCFS while addressing the Court s concerns. 10

40 The Court agreed with Plaintiffs contention that ARB approved the LCFS regulations before it completed the CEQA environmental review process. Specifically, the Board s April 2009 passage of a resolution, which provided that the Board approved the LCFS regulations for adoption, constituted commitment to the project as a whole or any particular features, so as to effectively preclude any alternatives or mitigation measures, and approval pursuant to CEQA Guidelines section 15352, subdivision (a). ( It was of no consequence that ARB provided some authority to the Executive Officer of ARB to modify the regulations prior to final adoption, as he could not choose to abandon the regulations entirely. Despite the fact that the final LCFS regulation as modified was not finally adopted until later in 2009, the agency had committed itself to the regulations in April 2009, and therefore approved the project prior to completing environmental review under CEQA. Second, the Court agreed with Plaintiffs that ARB improperly split the project approval from the responsibility for environmental review. ARB argued that it properly delegated responsibility for environmental review to the Executive Officer in finalizing the LCFS regulations. Relying on its conclusion that ARB committed to and therefore approved the regulations prior to completing the environmental review, the Court reasoned that the Executive Officer could not be acting as a decision-making body pursuant to CEQA as that role had already been filled by the Board. Simply, the Executive Officer did not have the authority to approve or disapprove the project, and thus, he should not have been delegated the responsibility to complete the environmental review. Third, the Court found that ARB violated CEQA in deferring its analysis and mitigation of potential increases in Nitrogen Oxide ( NOx ) emissions resulting from impacts of the LCFS regulations. The LCFS regulations would result in increased use of biodiesel fuel, and consequently, NOx emissions. The initial staff report ( ISOR ) provided to the Board for the April 2009 approval, however, provided that ARB staff assumed no increase in NOx emissions, and noted that the staff was currently conducting an extensive testing program and would promulgate new motor vehicle fuel specification for biodiesel at a later date. The Court recognized an exception allowing for deferred formulation of mitigation measures when three conditions are met: (1) practical considerations prevented formulation of mitigation measures at the usual time, (2) the agency actually committed itself to future formulation of the mitigation measures, and (3) the agency adopted specific performance criteria that the mitigation measures were required to satisfy. ARB did not explicitly address whether it adopted specific performance criteria, however, and the Court concluded that no increases in NOx, as provided in the ISOR was not a specific performance criterion as it provided no objective performance criteria for measuring whether the stated goal would be achieved. 11

41 More specifically, it was unclear what tests would be performed and what measurements would be taken to determine that biodiesel use was not increasing NOx emissions. Thus, ARB improperly deferred mitigation related to NOx emissions and did not comply with requirement excepting such deferral. ARB staff had planned to propose amendments to the LCFS regulation in October 2013; instead, they will be proposing for Board s consideration in 2014, a consolidated regulation package that responds to the Court s decision and contains additional amendments that staff considers important for the continued success of the LCFS program. Meanwhile, the 2013 LCFS standards, which represent a 1.0 percent decrease in carbon intensity from the 2010 baseline values for gasoline and diesel, will remain in effect through e. California Implementing Standardized Permanent Load Shifting Program On Mat 13, 2013, the California Public Utilities Commission (CPUC) and involved parties have issued Resolution E Under the resolution, the three investorowned utilities are directed to propose a standardized Permanent Load Shifting (PLS) Program based on a standard offer with common design rules. The program will provide incentives for the implementation of thermal energy storage (TES) and other energy storage technologies. Shifting peak loads can benefit the electricity grid by reducing the need for investments in additional capacity and peaking units, and by reducing the likelihood of shortages during peak periods. The Resolution states the "implementation of the permanent load shifting program shall commence 90 days from the issuance of this resolution." As defined by the Resolution, PLS refers to the shifting of energy usage from one period of time to another on a recurring basis, often by storing energy produced during off-peak hours and using the energy during peak hours to support loads. Examples of PLS technologies include thermal energy storage. The utilization of energy storage will increase the reliability of California's power grid, enable a smarter grid with two-way flow of electricity, create between 5,000 and 10,000 jobs, increase the usefulness of renewable energy, reduce air pollution from greenhouse emissions and smog forming nitrogen oxides and ultimately keep electricity prices lower than the alternative high costs of building new power plants and transmission lines. "Energy storage is critical to creating a more reliable, efficient electrical grid, not only in California but also across the United States," said Mark MacCracken, CEO of the California Measurement Advisory Council (CALMAC). According to CALMAC, the utilization of energy storage will increase the reliability of California's power grid, enable a smarter grid with two-way flow of electricity, create between 5,000 and 10,000 jobs, increase the usefulness of renewable energy, reduce air pollution from greenhouse emissions and smog forming nitrogen oxides and ultimately keep electricity prices lower than the alternative high costs of building new power plants and transmission lines. 12

42 Within the next three months Pacific Gas and Electric Company, San Diego Gas and Electric Company and Southern California Edison Company should be announcing their PLS programs. The programs are open to all qualified residential, commercial, agricultural, Community Choice Aggregation and Direct Access customers. Participants would receive a one-time financial incentive to help offset the cost of initial implementation of PLS technologies. The proposed incentive for moving electric loads from the peak electric rate periods is $875 per kw shifted. Decisions/CPUC/2013/DemandResponse Projects_Final- Dec_CPUC_ _Res-E-4586_ pdf f. Assembly Member Pérez Introduces 51 Percent RPS Bill Gov. Jerry Brown has made it clear that he considers California s 33 percent renewables portfolio standard a floor rather than a ceiling. Now, lawmakers, renewable-energy advocates and other stakeholders will have the chance to debate the next step for the renewables standard. A bill from Assembly Member Manuel Pérez (D-Indio) would mandate a 51 percent renewables standard by 2030 for all electrical corporations and publicly owned utilities. The measure, AB 177, is a two-year bill, meaning the bill will not see final action this year. The two-year nature of the bill gives lawmakers at least half a year to flesh out the bill s mandates and provisions, and then attempt passage in the 2014 legislative session. The bill would also set in statute the state s policy goal of achieving an 80 percent reduction in greenhouse-gas emissions from 1990 levels by And it would require a new coordinated approach to energy planning emphasizing affordability and reliability. Reports from the Little Hoover Commission and the state Legislative Analyst s Office had criticized California s approach to energy planning, stating that despite the numerous energy-related in initiatives in the state there is little coordination among energy agencies and little analysis of what all of the programs and initiatives combined would cost. Currently energy procurement in California is guided by multiple policies that have disconnected goals related to greenhouse gas emission reductions, environmental protections and the economy, Pérez said. The measure would also place in statute a requirement that Cal-ISO, in managing the grid and related energy markets, does so in a manner consistent with achieving the state s 2050 GHG-reduction targets. Cal-ISO would be required to maximize existing electrical resources. g. CAISO - Challenges for Demand Response The California Independent Systems Operator (CAISO) has a vision for how energy efficiency and demand response can lower peak demand and replace investments in wires and power plants. That vision is outlined in the grid operator s draft Demand Response and Energy Efficiency Roadmap, released in June. 13

43 As Cal-ISO describes it, the state must find a way to accommodate the rapid growth of distributed energy resources, which include DR, solar photovoltaics, energy storage, microgrids and efficiency. It is hoped these resources can reshape load in the energy markets by lowering peak demand, even in specific geographic areas as well as provide capacity in local areas. California utilities have more than 2,000 MW of demand response enrolled in various programs, but historically, DR has counted for less than 5 percent of Cal-ISO s peak load. On the capacity side, some types of demand response now count for resource adequacy thus reducing the need to build new gas-fired power plants but Cal- ISO plans to study two or three local areas this fall to consider targeted DR or efficiency. In the energy markets, Cal-ISO has several wholesale products for DR participating load, proxy demand resource, and a non-generator resource model, which offers spinning reserves and energy (non-spinning reserves and energy products will have to wait for FERC s approval of a reliability standard for contingency reserves). A reliability demand-response product is also in the works. Despite such products, comparatively few DR megawatts participate in wholesale markets today. And there s not much of a demand-response market: Only two of the products proxy DR and the yet-to launch reliability DR allow the demand-response provider to be different from the load-serving entity. It is hoped more megawatts of demand response will appear in the markets after the CPUC revises its Rule 24, which governs how retail programs can qualify for wholesale DR, and after Cal-ISO modifies metering and telemetry requirements so DR can more fully participate. Getting more demand response would not only require such market reforms but also higher prices. In July comments to Cal-ISO, EnerNOC, a demand response provider, noted that, of the three products that could provide revenue for demand response energy, capacity and ancillary services there are problems with all three in providing adequate revenue streams for participation. In terms of energy prices, according to Cal-ISO s 2013 first-quarter market report, on-peak average marginal energy prices over the last 12 months were less than $50/MWh. Off-peak prices were less than $40/MWh, EnerNOC noted. At those prices, in many hours of the year, it would not be economic for DR to participate in the CAISO energy market, EnerNOC said. The firm said it would reserve judgment as to whether the recent Joint Reliability Framework a three year- ahead capacity market proposed by Cal-ISO and the CPUC would provide the right kind of capacity incentive. If the auction, as envisioned, operates on a price-taker basis after the year ahead resource-adequacy showing, and there s enough leftover capacity that needs to be procured, perhaps a new capacity auction could help DR become a more robust player. 14

44 For retail DR programs, Cal-ISO also envisions a grid in which average ratepayers can respond to real time prices without instructions from a load-serving entity or the ISO. The approach would require smart grid automation, such as smart thermostats and other controls, as well as retail tariff changes and energy conservation messaging during times of extreme grid stress. In the time frame, Cal-ISO said it plans to conduct pilot programs that will provide insights into these approaches such as reducing load during peak pricing or increasing load under excess generation. However, such reforms to retail rates will require state legislation by , the grid operator said and alignment with new, CPUC-approved rate structures. (Commercial customers will be on default peak pricing and real-time tariffs by 2016.). Even if the law were changed on the retail side, Pacific Gas & Electric stated that customer acceptance could be complex and an opt-in approach might be best. ISODemandResponseandEnergyEfficiencyRoadmap.pdf h. Energy Commission Implements Renewable Program for Public Utilities The California Energy Commission on June 12, 2013 approved new rules for publicly owned utilities (POUs) ensuring California's success to achieve the 33 percent renewable energy target by The new regulations establish the rules and procedures that the Energy Commission will use to assess the actions of the state's 45 POUs and determine whether those actions meet the Renewables Portfolio Standard (RPS) procurement requirements. The proposed regulations require the POUs to submit plans, reports and other information to the Energy Commission so the Energy Commission can verify and determine compliance with the RPS. Legislation enacted in 2011 (Senate Bill X1-2) also established three renewable energy compliance periods that requires the utilities to meet an average of 20 percent of retail sales from eligible renewable resources from January 1, 2011 through December 2013, 25 percent by December 31, 2016, 33 percent by December 31, 2020, and no less than 33 percent in all subsequent years. The Energy Commission recently launched a tool that tracks the progress towards achieving the RPS and highlights the POU renewable procurement forecasts from 2011 through The data is self-reported to the Energy Commission by the POUs and will be verified after the conclusion of each compliance period. The largest POUs in California that have forecasted meeting the first compliance target of 20 percent for includes: Los Angeles Department of Water and Power, Sacramento Municipal Utility District, Imperial Irrigation District, Silicon Valley Power, Modesto Irrigation District, City of Anaheim, Riverside Public Utilities, Turlock Irrigation District, and the City of Roseville Electric Utility. 15

45 The Energy Commission began a process for public and stakeholder feedback in 2011 as it developed the POU enforcement procedures. The Commission considered comments from the POUs, Investor Owned Utilities (IOUs), renewable energy and environmental organizations, and consumer advocates. Collaboration with the California Public Utilities Commission (CPUC) also ensured alignment of the POU regulations with the requirements established by the CPUC for the IOUs and other retail sellers of electricity. The Energy Commission anticipates the enforcement procedures to go into effect for the POUs by October The POUs' first annual report, which will cover the years 2011 and 2012, will be submitted 30 calendar days after the regulations take effect or by September 1, 2013, whichever is later. The POUs' first compliance report will be submitted to the Energy Commission by July 1, 2014, and will outline the utilities' progress from i. CARB Reviews Battery Swap Rule A pending rule change by the California Air Resources Board could limit Tesla Motors' ability to earn money by selling zero-emissions credits -- a key factor in the company's first-quarter profit. The agency is evaluating whether to eliminate the "fast-refueling" rule that allows electric vehicles with quick-swap batteries to gain bonus credits under CARB's regulations. Those zero-emissions credits are worth big money on the open market, bought by other automakers that can't comply with clean-air regulations because of the nature of their vehicle fleets. Tesla's first-quarter profit -- the first in the company's history and key to the automaker's subsequent stock-price run-up -- resulted from being able to sell its ZEV credits. Tesla's $11.2 million profit hinged on $67.9 million in ZEV credits, and "other regulatory credits" totaling $17.1 million. From operations, Tesla lost $73.8 million, compared with a first-quarter 2012 loss of $89.9 million. The company declined to make an executive available to comment. But during the first-quarter earnings call, Tesla CEO Elon Musk said the emissions credits would decline during the year, as more vehicles are sold overseas. He pledged that by the fourth quarter Tesla would be profitable purely on automotive operations. CARB began discussions in May 2013 to eliminate the battery-swap rule. A decision should be made at the board's October meeting, said Analisa Bevan, chief of CARB's sustainable transportation technology branch. Earning the top level of ZEV credits requires an EV to achieve 300 miles of city-only range and refill to 95 percent capacity in 15 minutes. Tesla's 85kW Model S falls short of that requirement with its Supercharger plug-in network, but attains the top 16

46 credit level by changing batteries. "I won't presuppose what the outcomes are going to be," Bevan said in an interview. "We proposed eliminating the definition, but we have talked about a lot of possibilities in the interim." Tesla's emissions credits would not be nullified retroactively, Bevan said. But should Tesla lose its bonus for quick-change batteries, the credits-per-car-sold would be worth substantially less. In its first-quarter earnings statement, Tesla cautioned "any inability to sell additional regulatory credits may negatively impact our ability to maintain profitability in the short term." By 2018, the ruling will be moot, Bevan said, as all ZEV credits then will be based purely on range. j. Natural Gas Vehicle Coalition Forecasts Strong Market Growth Natural Gas Vehicles (NGV) could displace 1.5 gges of petroleum fuel annually in California by 2020 under an aggressive scenario, according to a market forecast the Natural Gas Vehicle Coalition presented at a July 31 CA Energy Commission workshop on the 2013 Integrated Energy Policy Report. NGVs would displace 900 million gges under a conservative scenario, and 1.2 billion gges under a moderate scenario. The Coalition s forecast, based on data from members and independent market studies, cited several factors supporting the case for NGV market growth: California is home to more than 400 of the nation s 1,200-plus natural gas fueling stations; has access to LNG in the state and at the border; has a history of successful natural gas use in transit, in refuse, and at ports; and has higher gasoline and diesel prices than the rest of the U.S Western Region and Other State Activity a. Western governors unveil 10-year energy 'vision' Western governors have unveiled a regional 10-year energy "vision" that stresses cooperation among states in interstate projects such as transmission lines, increased oil production and modernization of pipeline infrastructure. At the same time, the document released by the Western Governors Association calls for reducing greenhouse gas emissions, protecting wildlife and supporting technologies that reduce water demand. The plan also calls for promotion of increased energy efficiency, including building standards that go beyond the minimum. Utah Gov. Gary Herbert, chairman of the association, said the energy plan stems from bipartisan cooperation and represents a first step toward a blueprint for the entire country that promotes economic growth while protecting the environment. But the Sierra Club and Earthjustice criticized a recommendation to shave the review and permitting process for energy and transmission projects to three years. 17

47 "Generally speaking, that is a bad idea," Heidi McIntosh, managing attorney for Earthjustice in Denver, told the Deseret News. "Today more than ever, projects carry with them some time-significant environmental costs to wildlife, water and other resources such as cultural resources. It takes time to look at those impacts carefully, and it requires expertise and oversight." The plan's call for increased energy efficiency drew support from Utah Clean Energy, which has campaigned to get Utah lawmakers to adopt the most stringent international energy codes for new home construction. "By prioritizing energy efficiency as the cornerstone of any energy strategy, the Western Governors Association's 10-year energy vision includes a commonsense approach to meeting our growing energy demand, creating jobs and saving Utahns money, all while reducing our carbon footprint," said Sarah Wright, executive director of Utah Clean Energy. The six goals of the 10-year energy vision detailed in the document are: Put the United States on a path to energy security by increasing North American oil production. This goal also calls for recognition of the continued importance of Western renewable resources such as wind, solar, biomass and geothermal. It does not leave out coal, nuclear, natural gas or hydropower. Ensure energy is clean, affordable and reliable by providing a balanced portfolio that includes renewable, traditional and nontraditional resources. The plan calls for the Department of Energy to restore financing for geothermal exploration, increasing the efficiency of hydropower systems, and encouraging the federal government to identify and approve permanent solutions to the long-term storage of spent nuclear fuel and nuclear waste. Increase energy productivity associated with electricity and natural gas. This goal calls for the support and enhancement of utility energy efficiency programs and the encouragement of the current inventory of homes and commercial buildings in the West to retrofit with state-of-the-art energy efficiency technology. Establish an energy distribution infrastructure for transmission lines and pipelines that includes a siting and permitting process that promotes more development, yet protects the environment. This goal emphasizes cooperation among the states in multi-state projects, while maintaining local autonomy. 18

48 Protect Western wildlife, natural resources and the environment. This goal calls for the continued development of air and water quality improvements in each state and across state lines and achieving balance between responsible development of energy projects and wildlife conservation. Make the West an international leader in energy education and development of new energy technologies. This goal would be accomplished by tapping into the expertise of industry, national laboratories and academic institutions. The objective also includes the establishment of private-public research and development of partnerships and increased support of training in energyrelated fields. b. Electric Utility Deregulation in Arizona Large power users, the conservative Goldwater Institute and the Federal Trade Commission applauded an Arizona Corporation Commission (ACC) decision to reconsider retail competition. The commission in May 2013 started the debate by deciding to analyze the pros and cons of restructuring the state s electric market, more than 10 years after dropping a previous plan for restructuring. The state s largest electric utilities Arizona Public Service (APS), Salt River Project (SRP) and Tucson Electric Power oppose introduction of retail competition to the state s electricity market, according to comments filed with the ACC on July 15, The utilities predicted retail competition would drive residential electric rates higher, undermine grid reliability, replace state regulation with FERC oversight and trigger lawsuits over the restructuring decision. Typically, large commercial and industrial customers benefit from deregulation for a while, because costs are shifted to residential customers, APS and SRP said in written comments. APS said that such cost shifting would boost residential rates by 8 percent before counting the costs of restructuring the market. Citing the U.S. Energy Information Administration, APS said residential customers pay 26 percent higher rates in states with retail competition than in regulated states. In Texas, average electric rates were 6.4 percent below the national average in the 10 years before restructuring in In the 10 years since restructuring, rates have jumped 8.5 percent higher than the national average, according to UNS Energy. If the commission pursues a retail-competition regime, SRP said it will be forced to delay improvements to the grid. SRP said it postponed grid improvements from 1998 when the Legislature enacted an open-access statute to 2002, when Arizona abandoned retail competition. 19

49 Navajo Nation President Ben Shelly and Council Speaker Johnny Naize wrote that retail electric competition would cause devastating economic consequences for the tribe and Arizona ratepayers. Retail competition would cause the closure of the 2,040 MW Four Corners plant and of the 2,250 MW Navajo Generating Station, along with coal mines that serve the plants, the Navajo leaders said. Many of the workers at the power plants and mines are Navajo. In Arizona the hottest state in America reliable electric service is literally a lifeor-death necessity, said Pinnacle West s Brandt. To open the market to competition, Arizona would need to form or join a regional transmission organization, the three utilities said. The RTO would be subject to FERC regulation. Instead of deciding many issues, the ACC could only join the list of intervenors in FERC cases, APS said. In addition, APS said Arizona electric utilities would need to be compensated for about $1 billion in stranded costs, which are investments that cannot be recovered, including undepreciated power plants and long-term contracts. However, the Federal Trade Commission commented that retail competition could reduce rates for all classes of customers, foster innovative services and improves service reliability. The commission said competition would help the power system transition toward more time-of-use rates from flat rates. The FTC said flat rates cause higher average rates because of the need to build power generation to satisfy spikes in peak demand, which can be smoothed out through time-of-use rates. Wal-Mart Stores said retail competition has not affected electric reliability in markets where it operates in the United States and the United Kingdom. In a joint filing, Arizonans for Electric Choice and Competition and Freeport-McMoran Copper & Gold saw no reason for retail competition to lower reliability. AECC and Freeport- McMoran said competition would push power rates lower, but that customer classes that get subsidies from large power users would have less potential for savings. 4. Federal Activity a. EPA Biofuel Reversal EPA plans to shift into reverse with its 2014 biofuels mandates, setting the stage for opponents to redouble their pleas for relief from Congress. The agency made a surprise announcement yesterday that it intends to scale back the volume of renewable fuels that it will require refiners to blend into gasoline next year. In effect, it acquiesced to the oil industry's arguments that it's impractical to require refiners to mix ever-increasing amounts of ethanol into a U.S. gasoline supply that's shrinking because of declining demand. The EPA held firm Tuesday on the biofuel volume it's requiring for this year - even boosting it about 9 percent from But the agency's acknowledgment of impending difficulties in meeting the mandate will 20

50 aid critics' efforts to get lawmakers to ease or eliminate the Renewable Fuel Standard, some experts said. b. EPA and Cellulosic Biofuels EPA is finally scaling back its years of overly optimistic predictions about cellulosic biofuels production - but the agency says it isn't giving up on the industry's potential. EPA's announcement in early August 2013 also brought news that it will require refiners to include 6 million gallons of cellulosic biofuels in the gasoline supply this year, or pay for an equivalent volume of biofuel credits. That requirement is far below the cellulosic mandate of 14 million gallons the agency proposed earlier this year. But, the requirement is also far more than the 20,069 gallons that the U.S. cellulosic biofuel industry actually produced last year Conferences, Workshops, and Meetings California Energy Commission Staff Workshop on the State's Role in Supporting Interoperability of Electric Vehicle Supply Equipment (EVSE) August 15, a.m. - 4:30 p.m. Cal/EPA Headquarters Building Byron Sher Auditorium 1001 I Street Sacramento California Energy Commission staff will conduct a workshop to solicit stakeholder input on the best way for the state to support EVSE interoperability in California, and what interoperability criteria, if any, should be considered in the development of EVSE solicitations. The workshop will be held on: California Energy Commission Staff Workshop on Distributed Generation: Electricity Infrastructure Costs August 22, a.m Ninth Street First Floor, Hearing Room A Sacramento The California Energy Commission staff will conduct a workshop to receive comments on a study of the costs and impacts on the electricity system associated with increased distributed generation (DG) installations in California, and how costs and impacts change based on interconnection location, distribution feeder characteristics, load types, and project size. The Energy Commission has contracted with Navigant Consulting to conduct the analysis, and has partnered with Southern California Edison (SCE) to use their system for the study. 21

51 California Energy Commission Staff Workshop on Distributed Generation: Electricity Infrastructure Costs August 22, a.m Ninth Street First Floor, Hearing Room A Sacramento, The California Energy Commission staff will conduct a workshop to receive comments on a study of the costs and impacts on the electricity system associated with increased distributed generation (DG) installations in California, and how costs and impacts change based on interconnection location, distribution feeder characteristics, load types, and project size. The Energy Commission has contracted with Navigant Consulting to conduct the analysis, and has partnered with Southern California Edison (SCE) to use their system for the study. California Energy Commission Hydrogen Gas for Transportation -- Measurement and Dispensing Workshop August 27, a.m. - 3 p.m Ninth Street First Floor Hearing Room B Sacramento The California Energy Commission staff will host a workshop on hydrogen gas metrology, standards and dispensing. The purpose of this workshop will be to discuss the regulations for the commercial measurement of gaseous hydrogen used as a vehicle fuel in refueling applications. CARB Board Hearing ZEV Regulations - Minor Amendments September 26-27, 2013 Byron Sher Auditorium Sacramento, CA The Air Resources Board (ARB or Board) staff is developing a proposal for minor modifications to the Zero Emission Vehicle (ZEV) Regulation. Minor modifications include clarifying the Section 177 state optional compliance path provision, defining how caps apply to a manufacturer s requirement, and excluding battery swapping as a fast refueling technology. A one-day workshop to discuss staff s proposed modifications was conducted on May 20, 2013, in Sacramento, California. CA Independent System Operators Symposium Bridging the Grid of Today with the Network of Tomorrow October 23-24, 2013 Sacramento Convention Center 22

52 The ISO will host its Stakeholder Symposium 5.0 on October 23 and 24, 2013 at the Sacramento Convention Center. Now in its fifth year, the symposium has become the largest gathering of electric industry executives on the West Coast, with 600 guests expected to attend. The Symposium enables stakeholders, policymakers, and the ISO Board of Governors and leadership team to discuss key topics related to the bulk power grid and markets. The theme of this year's event is Bridging the Grid of Today with the Network of Tomorrow. General and breakout sessions provide a platform for guests to discuss current challenges and emerging opportunities. Noted Keynote Speakers Confirmed The ISO is pleased to welcome two renowned keynote speakers: Joseph P. Kennedy II, Founder, Chairman, and President of Citizens Energy Corporation and former Member of the U.S. House of Representatives Greg Abel, Chairman, President, and CEO of MidAmerican Energy Holdings Company Regulators Roundtable The stakeholder symposium will open with a Regulators' Roundtable, featuring a moderated discussion among the following state policy makers: Robert Foster, Chairman, California ISO Board of Governors Felicia Marcus, Board Chair, State Water Resources Control Board Andrew McAllister, Commissioner, California Energy Commission Mary D. Nichols, Chairman, California Air Resources Board Michael R. Peevey, President, California Public Utilities Commission Michael Picker, Senior Advisor to the Governor for Renewable Energy Facilities, Office of California Governor Edmund Gerald Brown, Jr. 23

53 Sector Strategies 2013 年 度 報 告 書 2013 年 9 月 1. 報 告 書 1.1. 国 立 再 生 可 能 エネルギー 研 究 所 (NREL)による 再 生 可 能 エネルギーとサイクリングに 関 する 報 告 書 NREL は 拡 大 する 風 力 発 電 や 太 陽 発 電 が 化 石 燃 料 による 発 電 を 行 っている 発 電 所 に 与 えうる 影 響 について 分 析 を 行 った 不 安 定 な 再 生 可 能 エネルギーによる 発 電 が 拡 大 することで 化 石 燃 料 を 利 用 している 発 電 所 は 需 要 家 に 安 定 した 電 力 を 提 供 するた めに 今 後 ランプアップ ランプダウン 始 動 停 止 の 繰 り 返 しなど 柔 軟 な 運 転 形 態 を 求 められるようになる このサイクリングと 呼 ばれる 運 転 形 態 を 行 うことで 二 酸 化 炭 素 排 出 量 が 増 加 することがわかった 再 生 可 能 エネルギー 発 電 によって 削 減 さ れた 排 出 量 を 一 定 量 相 殺 する 形 となってしまう 報 告 書 では 再 生 可 能 エネルギー 発 電 の 大 量 導 入 によって 化 石 燃 料 のコストを 年 間 70 億 ドル 削 減 できるが 同 時 にサ イクリングによるコストが 年 間 3500 万 ドルから 1 億 5700 万 ドルかかるであろうと のこと これにより 化 石 燃 料 を 利 用 している 発 電 所 にかかってくるコストは 1MWh あたり$0.47 から$1.28 と 予 測 されている 1.2. カリフォルニア 州 の 政 策 がバイオディーゼルを 支 援 カリフォルニア 州 の Low Carbon Fuel Standard がバイオディーゼルの 需 要 の 上 昇 に 役 立 っていると Environmental Defense Fund と E2 によるレポートの 中 で 賞 賛 されてい る このレポートでは Biodico, North Star Biofuels LC, Yokayo Biofuels, Crimson Renewable Energy LP Imperial Western Products and Propel Fuels の 各 社 をケーススタ ディとして 取 り 上 げ バイオディーゼルのバリューチェーンについて 解 説 している 1.3. 米 国 エネルギー 効 率 経 済 協 議 会 (ACEEE)による The Energy Savings & Industrial Competitiveness Act of 2013 (S. 1392)が 与 えうる 経 済 的 影 響 を 分 析 ACEEE による 報 告 書 によると 現 在 提 案 されている 両 党 連 立 の 省 エネ 法 は 莫 大 な 節 約 効 果 と 雇 用 の 創 出 エネルギーの 無 駄 を 削 減 することを 可 能 にするとのこと 今 回 の 法 案 に 盛 り 込 まれている 条 項 により 政 府 や 企 業 によるエネルギーの 無 駄 を 減 ら し 住 宅 保 有 者 が 省 エネのために 自 宅 に 投 資 をする 場 合 の 資 金 補 助 などが 実 現 する とのこと また 今 回 の 提 案 が 実 現 すれば 2030 年 までに 住 宅 顧 客 や 商 業 顧 客 を 合 わ せて 電 気 料 金 で 合 計 650 億 ドルの 削 減 が 可 能 になると 言 及 している 1.4. 米 国 で 太 陽 発 電 のコストが 2011 年 時 点 よりも 60% 低 下 US Solar Energy Industries Association (SEIA)と GTM Research のレポートの 夜 と 2013 年 代 2 四 半 期 時 点 での 太 陽 光 発 電 パネルのコストは 2011 年 前 半 と 比 べて 60% 低 下 して いるとのこと システム 全 体 では 40%の 低 下 となっており 2010 年 時 点 と 比 べると 半 分 になっている

54 1.5. 分 散 電 源 の 重 要 性 電 力 システムをよりクリーンに 効 率 よく 信 頼 性 を 高 め かつより 安 価 にするた めに 分 散 電 源 は 重 要 な 役 割 を 担 うが 既 存 の 市 場 の 構 成 やビジネスモデル 規 制 な どによって 分 散 電 源 を 既 存 の 電 源 と 同 等 に 扱 うことができない 状 況 になっている 先 日 発 表 された"America's Power Plan では 今 後 どのように 改 革 を 進 めていくべきかに ついて 以 下 の 提 案 をしている 全 体 的 なコストと 利 益 を 評 価 する 方 法 を 確 立 する 集 中 型 電 源 と 分 散 電 源 のポートフォリオを 分 析 する リソース 計 画 に 分 散 電 源 を 組 み 込 む 電 力 会 社 の 新 しいビジネスモデルを 確 立 する 卸 売 市 場 に 分 散 電 源 を 組 み 込 む 方 法 を 作 る マイクログリッドを 導 入 する 建 設 許 可 や 系 統 接 続 許 可 の 発 行 プロセスを 合 理 化 する スマート EV 充 電 を 支 援 する 2. カリフォルニア 州 規 制 情 報 2.1. カリフォルニア 公 益 事 業 委 員 会 (CPUC)が 1.3GW の 蓄 電 導 入 について 決 定 案 の 提 出 カリフォルニア 州 の 三 大 株 式 上 場 電 力 会 社 は 2020 年 までに 1.3GW 以 上 の 蓄 電 設 備 導 入 を 義 務 付 けられる 導 入 は 段 階 的 に 進 められる 予 定 で 第 一 回 目 の 公 募 は 2014 年 1 月 までに 行 うことが 義 務 付 けられた PG&E と Southern California Edison は 2020 年 までに 580MW San Diego Gas and Electric は 165MW の 導 入 目 標 を 課 せられている 2.2. CPUC が 省 エネを 推 奨 するツールを 導 入 CPUC は 既 存 の 省 エネ 推 進 のためのツール Risk Reward Incentive Mechanism(RRIM) に 取 って 代 わる Efficiency Saving and Performance Incentive(ESPI)を 採 用 することを 決 めた RRIM では 予 測 される 省 エネに 対 してインセンティブが 与 えられていたのに 対 し ESPI では 実 際 の 省 エネ 量 に 対 してインセンティブが 与 えられることになった 2.3. CPUC デマンドレスポンスに 関 する 決 定 CPUC はデマンドレスポンスプログラムの 向 上 を 目 指 す 議 案 を 提 出 現 状 の 電 力 会 社 顧 客 から 資 金 を 得 ているモデルから 今 後 どうやって 供 給 サイドと 需 要 サイドに 分 けることができるかが 重 要 な 点 である デマンドレスポンスによって 電 力 会 社 は 不 必 要 な 電 力 を 購 入 することを 避 けられ Resource Adequacy 条 件 も 満 たすことができ るが デマンドレスポンスリソースは 市 場 参 加 をすることができないか 他 の 資 源 と 同 じ 一 定 条 件 を 満 たす 必 要 がある 今 後 長 期 的 に 州 のクリーンエネルギー 目 標 を 達 成 していくためには デマンドレスポンスを 供 給 サイドで 活 用 することが 大 切 で ある

55 2.4. カリフォルニア 最 高 裁 判 事 Cap and Trade オークション 支 持 の 仮 裁 定 AB32 の 元 に 行 われている Cap and Trade オークションに 対 し California Chamber of Commerce と Pacific Legal Foundation はこのオークションを 主 催 している 大 気 汚 染 委 員 会 (ARB)にその 権 利 はなく オークション 自 体 が 違 法 な 課 税 であり 新 たな 税 金 を 導 入 する 際 に 必 要 とされている 州 議 会 からの 3 分 の 2 以 上 の 賛 成 を 得 ていない として 申 し 立 てを 行 っていた 今 回 の 仮 裁 定 では ARB は AB32 によって 温 室 効 果 ガス 排 出 削 減 のためのシステムをデザインする 権 限 を 与 えられているため オー クションを 主 催 することは 可 能 との 判 断 がされた 2.5. 連 邦 判 事 団 カリフォルニア 州 の Low Carbon Fuel Standard(LCFS)を 支 持 連 邦 判 事 団 は 全 米 で 初 となる 燃 料 生 産 者 への 温 室 効 果 ガス 排 出 削 減 義 務 を 課 したカ リフォルニア 州 の LCFS への 支 持 を 表 明 巡 回 控 訴 裁 判 所 で 燃 料 メーカーによるカリ フォルニアの LCFS は 州 外 のメーカーに 対 して 差 別 的 であるとの 訴 えを 棄 却 地 方 裁 判 所 で 原 告 が 受 けた 承 認 を 翻 す 結 果 となった 2.6. カリフォルニア 大 気 資 源 局 (CARB)はキャップアンドトレードプログラムで 利 用 可 能 なクレジットを 発 行 CARB は Cap and Trade プログラムのカーボンオフセットクレジットを 発 行 初 回 は 初 期 のオークションプロジェクトとオフセットクレジットで 合 計 60 万 を 予 定 1 ク レジットが1メトリックトンの 温 室 効 果 ガス 排 出 に 相 当 する オフセットプロジェ クトとしては 森 林 マネジメント 都 市 部 の 森 林 化 プロジェクトなどが 認 定 されてい る 3. カリフォルニア 州 政 策 情 報 3.1. 代 替 燃 料 サミット 開 催 8 月 にクリーン 燃 料 関 連 企 業 や 政 府 州 議 会 関 係 者 を 招 いて 代 替 燃 料 サミットが 行 われた カリフォルニア 州 における 代 替 燃 料 の 普 及 状 況 や 技 術 開 発 規 制 や 政 策 な どについて 議 論 が 行 われた その 中 で Low Carbon Fuel Standard を 遵 守 することが 重 要 であると 強 調 された 議 論 の 中 で LCFS の 長 期 的 展 開 について 疑 問 を 持 つ 声 も 上 が ったが 先 月 州 の 控 訴 裁 判 所 での 判 決 で CARB に 対 し 2013 年 の LCFS 規 制 の 執 行 権 が 与 えられたこともあり LCFS は 長 期 的 に 捉 えられていることを 確 認 する 結 果 となっ た 3.2. ブラウン 知 事 とカリフォルニア 企 業 が 電 気 自 動 車 支 持 を 表 明 ブラウン 知 事 や Google や Coca Cola など 40 以 上 の 企 業 が 参 加 し Drive the Dream と いうイベントが 開 催 された 電 気 自 動 車 の 普 及 を 目 指 し 職 場 で 無 料 の 充 電 ステー ションの 提 供 などのインセンティブを 作 るなどの 企 業 側 の 努 力 が 約 束 された イベ ント 会 場 では Tesla Motors のモデル S や BMW の i3 などが 展 示 されていた ドラッ

56 グストアチェーンの Walgreens は 店 舗 における 充 電 ステーション 設 置 の 拡 大 Coca Cola は 商 品 の 配 達 に 電 動 トラックを 導 入 するなどの 取 り 組 みが 発 表 された 3.3. サンオノフレ 原 子 力 発 電 所 廃 炉 後 の 南 カリフォルニアで 新 しい 初 電 源 の 確 保 州 のエネルギー 関 係 機 関 は 南 カリフォルニアで 安 定 した 電 力 サービスを 行 うための 初 電 源 の 確 保 や 送 電 網 のアップグレードなどについての 原 案 を 発 表 その 中 で 省 エ ネ 再 生 可 能 エネルギー デマンドレスポンス コジェネなど 優 先 的 に 扱 われてい る 発 電 源 を 3,250MW その 他 従 来 型 の 発 電 源 を 3,000MW の 調 達 を 盛 り 込 んでいる この 原 案 は 今 年 6 月 に 南 カリフォルニアエジソンによって 発 表 されたサンオノフレ 原 子 力 発 電 所 (SONGS) 廃 炉 決 定 を 受 けて 作 成 されたもの SONGS は 2,250MW の 容 量 を 持 ち 約 140 万 世 帯 分 の 電 力 を 供 給 していた 3.4. PG&E ハイブリッドトラックを 公 開 カリフォルニア 州 ストックトンにて Electric Vehicles International (EVI)と PF&E CEC の 協 力 体 制 によって 開 発 された Range Extended Electric Vehicle(REEV)トラックが 公 開 された このトラックは 走 行 可 能 距 離 が 45 マイルで ハイブリッドモードで 運 転 されると 燃 費 を 30% 削 減 可 能 PG&E は 既 に 2 台 を 購 入 しており 今 後 網 2 台 を 追 加 する 予 定 年 カリフォルニア 州 議 会 通 過 法 案 4.1. Clean Vehicle Incentive Funding a. AB8 Clean Vehicle Incentive Program AB118(Alternative and Renewable Fuel and Vehicle Technology Program)と 各 地 域 に 大 気 質 改 善 のために 資 金 提 供 を 行 う AB923 の 期 間 延 長 を 行 う AB8 の 議 会 通 過 で 2023 年 まで 資 金 提 供 が 延 長 されることになった b. AB Natural Gas Priority 州 の 政 策 立 案 において 天 然 ガスがその 他 の 代 替 燃 料 と 同 等 の 優 先 順 位 を 持 つも のとする エネルギー 委 員 会 は 天 然 ガスを 輸 送 車 両 燃 料 として 活 用 するための 戦 略 を 確 立 する 津 こと また 発 電 源 として 冷 暖 房 への 活 用 雇 用 創 出 などの 視 点 から 天 然 ガスをどのように 利 用 できるかについても 検 討 すること と 記 されてい る 4.2. 再 生 可 能 エネルギー 法 a. AB327 - Net Metering and Rate Reform ネットメータリングと 電 力 料 金 改 正 についての 法 案 今 回 三 大 株 式 上 場 電 力 会 社 管 轄 地 域 内 で 5,200MW が 設 置 されるまでネットメータリングプログラムは 継 続 されると 決 定 CPUC はネットメータリングに 参 加 できる 容 量 の 上 限 を 取 り 払 う 権 限 を 与 えられた また CPUC は 州 の RPS 目 標 である 33%を 超 える 再 生 可 能 エネ ルギー 導 入 義 務 を 電 力 会 社 に 対 して 与 えることができる 加 えて 各 株 式 上 場 電 力

57 会 社 は 2015 年 7 月 までに 太 陽 発 電 など 分 散 電 源 によるメリットをどうやって 最 大 化 するかについての 計 画 案 を CPUC に 提 出 することを 義 務 付 けられた b. SB43 - Green Tariff Shared Renewables Program 州 内 で 太 陽 発 電 は 拡 大 しているものの 従 来 の 屋 根 上 発 電 においては 一 戸 建 てを 所 有 しない 人 々や 屋 根 のないオフィスビルのテナントなどはまだ 参 加 できない 状 況 である SB32 は 株 式 上 場 電 力 会 社 の 顧 客 が 最 大 100%まで 購 入 する 電 力 を 再 生 可 能 エネルギー 源 からと 指 定 することを 可 能 にする この 法 案 により 今 まで 再 生 可 能 エネルギー 発 電 に 関 わることができなかった 消 費 者 に 対 しても 扉 が 開 か れることになる c. AB217 - Low-Income Solar Programs カリフォルニア 州 の 太 陽 発 電 リベートプログラムである Single-Affordable Solar Homes(SASH)と Multi-Family Affordable Solar Housing(MASH)は 電 力 料 金 の 低 下 や 雇 用 の 創 出 などに 貢 献 していることがわかった これらのプログラムは 2009 年 か ら California Solar Initiative によって 資 金 提 供 を 受 けてきたが 資 金 がほぼ 使 い 尽 くされたため AB217 でプログラムを 2021 年 まで 延 長 することが 決 定 された d. AB792 - Utility User Tax Exemption ソーラー 発 電 を 所 有 している 顧 客 は 自 身 で 発 電 したソーラー 発 電 量 に 関 しては 電 力 会 社 の 顧 客 税 を 免 除 される 4.3. ゼロエミッション 車 インフラストラクチャ a. SB359 - Air Quality and Alternative Fuel Vehicles CARB の Clean Vehicle Rebate Program(CVRP) と Hybrid Voucher Incentive Program (HVIP)に 対 して 資 金 の 枯 渇 を 危 惧 する 声 が 上 がってきている CVRP はゼロエ ミッション 車 を 購 入 するとリベートを 受 けられるプログラムで HVIP は 同 様 の インセンティブが 電 動 あるいは 低 炭 素 排 出 燃 料 を 使 用 したトラックやバスを 購 入 すると 受 けられる SB359 によって 2013 年 に 4800 万 ドルの 資 金 がプログラムに 追 加 された b. AB EV Charging Station Standards カリフォルニアエネルギー 委 員 会 に 対 し 多 世 帯 住 宅 や 住 宅 以 外 の 建 物 の 駐 車 スペ ースに 充 電 ステーションを 設 置 する 際 の 建 築 標 準 設 定 などを 義 務 付 けた c. SB454 - Vehicle Charging Station Fees EV 充 電 ステーションを 利 用 したい 人 々に 対 し 会 員 費 用 を 課 すことを 禁 じる 充 電 にかかる 費 用 を 明 示 すること クレジットカードや 携 帯 電 話 による 支 払 いを 可 能 にすることを 義 務 付 ける

58 4.4. 省 エネ a. AB719 - Energy Efficient Street Lights 公 益 事 業 委 員 会 に 株 式 上 場 電 力 会 社 に 対 し 電 力 料 金 削 減 を 目 指 し 省 エネのため に 街 灯 をアップグレードする 際 に 判 断 材 料 となるような 電 力 料 金 表 を 提 出 するよ う 求 めることを 義 務 付 け 5. 米 国 西 部 関 連 5.1. ニューメキシコ 州 の 団 体 が 二 酸 化 炭 素 排 出 削 減 のための 規 制 を 提 案 Western Resource Advocates New Energy Economy など 32 の 団 体 はニューメキシコ 公 益 事 業 委 員 会 に 対 し 電 力 会 社 に 発 電 施 設 での 二 酸 化 炭 素 排 出 量 を 2035 年 まで 年 間 3%ずつ 削 減 する 義 務 付 けをするよう 申 し 立 てを 行 った 6. 連 邦 政 府 関 連 6.1. 新 設 の 発 電 所 に 対 する 二 酸 化 炭 素 排 出 基 準 環 境 保 護 局 (EPA)は 二 酸 化 炭 素 排 出 削 減 のために 天 然 ガス 及 び 石 炭 を 使 用 する 発 電 所 のための Clean Air Act Standards を 作 成 これは 新 設 の 発 電 所 にのみ 課 せられる 米 国 における 二 酸 化 炭 素 排 出 の 3 分 の 1 は 発 電 所 によるものといわれている 7. 今 後 の 会 議 ワークショップ

59 NEDO POLICY Report September, 2013 INDEX Reports NREL Studies Renewables Cycling Page 2 California Policies Promote Biodiesel Page 3 ACEEE Economic Impacts of Shaheen-Portman Energy Efficiency Bill Page 4 Cost Of Solar Power 60% Lower Than Early 2011 In US Page 4 America s Power Plan: The Crucial Role Of Distributed Resources Page 6 California Regulations Update CPUC Draft Decision Sets 1.3 GW Energy-Storage Target Page 8 CPUC Looks to New Tool to Prompt Energy-Efficiency Gains Page 8 CPUC Rulemaking on Demand Response Page 9 Judge Upholds Cap-and-Trade Auctions in Tentative Ruling Page 10 Federal Panel Upholds Low Carbon Fuel Standard Page 10 CARB Releases First Compliance Offset Credits Page 11 California Policy Update Alternative Fuels Summit Hits High Points Page 13 Governor Brown and California Companies Show of Support for EV s Page 14 New Generation for Southern California- Life After SONGS Page 15 PG&E Unveils Hybrid Electric Bucket Truck Page 16 Priority California Legislation Passed in 2013 Clean Vehicle Incentive Funding Page 18 Renewable Energy Legislation Page 18 ZEV Infrastructure Page 20 Energy Efficiency Page 21 Western Region New Mexico Groups Suggest CO2-Reduction Regulation Page 21 Federal Activity Carbon Pollution Standards For New Power Plants Page 22 Conferences, Workshops and Meetings Page 23 1

60 1. Reports a. NREL Studies Renewables Cycling The Energy Department's National Renewable Energy Laboratory (NREL) recent study quantifies the potential impacts of increasing wind and solar power generation on the operators of fossil-fueled power plants in the West. To accommodate higher amounts of wind and solar power on the electric grid, utilities must ramp down and ramp up or stop and start conventional generators more frequently to provide reliable power for their customers - a practice called cycling. The study finds that the carbon emissions induced by more frequent cycling are negligible (<0.2%) compared with the carbon reductions achieved through the wind and solar power generation evaluated in the study. Sulfur dioxide emissions reductions from wind and solar are 5% less than expected because of cycling of fossil-fueled generators. Emissions of nitrogen oxides are reduced 2% more than expected. The study also finds that high levels of wind and solar power would reduce fossil fuel costs by approximately $7 billion per year across the West, while incurring cycling costs of $35 million to $157 million per year. For the average fossil-fueled plant, this results in an increase in operations and maintenance costs of $0.47 to $1.28 per megawatt-hour (MWh) of generation. Phase 2 of the Western Wind and Solar Integration Study (WWSIS-2) is a follow up to the WWSIS released in May 2010, which examined the viability, benefits and challenges of integrating high levels of wind and solar power into the western electricity grid. WWSIS found it to be technically feasible if certain operational changes could be made, but the first study raised questions about the impact of cycling on wear-and-tear costs and emissions. To calculate wear-and-tear costs and emissions impacts for the new study, NREL designed five hypothetical scenarios to examine generating up to 33% wind and solar energy on the U.S. portion of the Western Interconnection power system for the year This is equivalent to a quarter of the power in the Western Interconnection (including Canada and Mexico) coming from wind and solar energy on an annual basis. The study models cycling impacts representing a range of wind and solar energy levels between none and 33%, and is not an endorsement of any particular level. The study assumes a future average natural gas price of $4.60/MMBtu, significant cooperation between balancing authorities, and optimal usage of transmission capacity (i.e., not reserving transmission for contractual obligations). NREL modeled operations of the entire Western Interconnection for that year in fiveminute intervals to understand potential impacts within every hour. With these assumptions, the study finds that the high wind and solar scenarios reduce CO2 emissions by 29%-34% across the Western Interconnection, with cycling having a negligible impact. Cycling lessens the SO2 benefit by 2%-5%, so that SO2 emissions are reduced by 14%-24% in the high scenarios. 2

61 These impacts are modeled on an overall Western Interconnection level, and changes on a regional basis could vary. Further, the study does not examine cycling impacts on mercury and air toxic control equipment now being retrofitted on coal units to comply with recent EPA regulations. Cycling actually improves the NOx benefit by 1%-2%, so that NOx emissions are reduced by 16%-22% in the high scenarios. This is because the average coal plant in the West has a lower NOx emissions rate at partial output than at full output. Other findings include: Because of sunset and sunrise, solar power creates the biggest ramping needs on the grid in this study. However, because we know the path of the sun through the sky every day of the year, system operators can predict these large ramping needs and plan accordingly. Solar variability due to fast-moving clouds is much less predictable, but it creates relatively smaller ramping needs. Errors in day-ahead wind forecasts can make it challenging for operators to decide which power plants need to be online the next day. However, because forecast accuracy increases four hours ahead compared with 24 hours ahead, a four-hourahead decision on whether to start up those power plants that can be ramped up relatively quickly can help to mitigate these forecast errors. Despite the differences between wind and solar in terms of grid operations, the study finds their impacts on system-wide operational costs are remarkably similar. b. California Policies Promote Biodiesel California is poised to make some big waves in the biodiesel market at least according to a new study from the Environmental Defense Fund and E2. This story from Biodiesel Magazine says the report profiles six companies in California revolutionizing the industry. Once again, California is ahead of the curve when it comes to delivering on fuels that not only protect the environment but also make good business sense to produce, said Emily Reyna, senior manager of partnerships and alliances for EDF. Because of the state s commitment to biodiesel, we ll continue to see biodiesel opportunities grow, an industry that is prime to be a leader in alternative fuels for California. The companies profiled in this case study Biodico, North Star Biofuels LC, Yokayo Biofuels, Crimson Renewable Energy LP, Imperial Western Products and Propel Fuels each demonstrate one of the six steps of the biodiesel value chain. These companies are integrating innovative practices and expanding the commercialization of low-carbon fuels with production capacities up to 20 MMgy. Some of these companies recycle used cooking oil as a feedstock, some are working to supply the Navy and oil refineries with lower carbon fuels, while others are working to assure choosing a biodiesel blend is as easy as picking up a different fuel pump. The case study serves as a great reminder that California is successfully producing biodiesels that are cost-effective, will reduce emissions, and provide quality jobs in the state, said Biodico President Russ Teall. To stay competitive and grow California s economy, it s imperative we continue to support the policies and businesses that are working hard every day to strengthen our biodiesel industry. 3

62 The study goes on to credit California s low carbon fuel standard (LCFS) for driving biodiesel demand and growth. It also credits the federal renewable fuels standard (RFS) combining with the LCFS for helping expand California s and the Nation s biofuels industry. c. ACEEE Study Analyzes Economic Impacts of Shaheen-Portman Energy Efficiency Bill and Key Amendments Proposed bipartisan energy efficiency legislation has the potential to save the nation billions while creating domestic jobs and reducing energy waste, according to a new analysis released today by the American Council for an Energy-Efficient Economy (ACEEE). was introduced by Senators Jeanne Shaheen (D-NH) and Rob Portman (R-OH) and is pending floor consideration when the Senate returns from recess. The ACEEE analysis looked at the impacts of several provisions in the bill as well as a group of related amendments under consideration. These provisions cut government and industrial energy waste and help homeowners finance energy efficiency improvements, among other energy-saving measures. ACEEE found that the proposals being considered could, in combination, save consumers and businesses over $65 billion on their energy bills by These savings also translate into a stronger economy. Consumers who save money on their energy bills can reinvest this money to buy goods and services where they live, stimulating their local economies. The energy efficiency measures proposed by the legislation would also help create new jobs. Altogether, these provisions would support over 152,000 new jobs in 2025, increasing to 174,000 jobs by In addition to providing economic benefits, the provisions would prevent unnecessary electric generation and natural gas consumption. Energy savings from these provisions would reduce greenhouse gas emissions by 676 million metric tons by American businesses have also recognized the importance of the Energy Savings & Industrial Competitiveness Act because cutting down on energy waste improves their bottom line. "The Senate should act quickly to pass this important legislation," said Steven Nadel, ACEEE executive director. "The provisions we analyzed have the power to save consumers money, stimulate the economy, and protect the environment." d. Cost Of Solar Power 60% Lower Than Early 2011 In US The US Solar Energy Industries Association (SEIA) and GTM Research recently released their latest quarterly report regarding the US solar energy market. Solar panel costs were 60% lower in the second quarter (Q2) of 2013 than they were in early Overall, solar PV system prices, on average, were 40% lower, and they were 50% lower than average solar PV system prices in early Aside from the massive cost drop, another point worth noting is that solar power continues 4

63 to grow strongly. Q2 was the second-biggest quarter for solar power growth in US history, only trailing Q (primarily due to a drive at the end of the year to install a lot of solar in time to take advantage of 2012 tax credits the 4th quarter is always the strongest of the year). In total, 832 megawatts (MW) of solar were installed in Q

64 Also, worthy of note is the clear fact that total solar power capacity in the US is set to surpass 10 gigawatts (10,000 MW) this year. Currently, the country is at 9,370 MW. Solar panels installed across the US now have enough power capacity to power up to about 1.5 million average US homes. That s impressive. That s approximately enough to power Philadelphia or Phoenix, the countries 5th- and 6th-largest cities. In 2013 overall, about 4.4 GW of solar PV power capacity are projected to come online, about 30% more than in 2012 because solar panel costs have dropped 60% in the past 2.5 years or so. e. America s Power Plan: The Crucial Role Of Distributed Resources The time is now to make our electricity system cleaner, more efficient, more reliable, and cheaper. Distributed resources are a critical piece of that electricity future, but existing market structures, business models, and regulations do not yet ensure a consistently level playing field for distributed resources to compete with other options. The newly released America s Power Plan a collaboration of more than 100 of the nation s top energy experts, tackles many important questions and lays out a plan for our country to move rapidly towards the brighter energy future that we envision. RMI has contributed a chapter on the role of distributed energy resources to the project. America s power sector has been largely unchanged for many decades, yet faces the potential for drastic transformation in the years to come because of technological innovations and a changing mindset among consumers towards energy consumption. A part of the report focused special attention on the distribution edge the interface of the electricity grid and the consumer because of the potential for transformative changes at this level of the electricity system. This is where technological innovation is most rapidly occurring, and where evolving consumer preferences are most immediately seen. It is also the space that is most free to change and advance even in the face of the many regulatory and legislative constraints that govern our nation s electricity system. Ensuring that distributed resources are adequately developed to support a high-renewables future will require special attention from regulators and policymakers on a number of fronts. The full plan lays out detailed recommendations along eight key parameters: 1. Measure Costs and Benefits Consistent and comprehensive methods for measuring the full range of costs and benefits of different resources will create transparency for all stakeholders and provide a foundation for designing effective incentives, pricing structures, and markets. The hidden value of distributed resources can include avoided line losses, reduced financial risk, deferred or avoided generation and delivery capacity, environmental benefits and economic development. Properly measuring these costs and benefits is a critical step to enabling the efficient and economic deployment of distributed resources. 2. Analyze Centralized Vs. Distributed Resource Portfolios In the past, there has been surprisingly little research available to evaluate the tradeoffs between different portfolios of centralized and distributed renewable resources. New studies at national, regional and local levels can help shed light on how to optimize the mix 6

65 of centralized and distributed renewables. Yet, most of these studies fail to assess the implications of different portfolios for the security and resilience of the grid in the face of natural disasters, physical or cyber attack, solar storms, or other threats. Ensuring that centralized and distributed renewable resources compete on a level playing field will be one of the most important challenges facing policymakers, regulators, and electric utility planners in the decades ahead. 3. Integrate Distributed Resources into Resources Planning Resource planning processes provide a view to the future that can help reveal tradeoffs between centralized and distributed investments and reduce costs on the path to a highrenewable future. Integrating distributed energy resources into resource planning is critical to assessing how best to utilize such resources as demand response and storage, as well as revealing opportunities to reduce transmission and distribution costs. 4. Create New Electric Utility Business Models Today s antiquated electric utility business models will become increasingly obsolete in an 80 percent renewable future. New utility business models can be devised that ensure the stability and health of the grid and incentivize integration of distributed resources. Various alternatives emerging in the U.S. and around the world include new pricing and incentive approaches, opportunities to explore new value creation (such as financing through on-bill repayment), and reducing disincentives and rewarding performance. 5. Wholesale Markets Must Adapt to Integrate Distributed Resources Wholesale markets need to be adapted to allow distributed resources to compete fully and fairly. With evolved market rules, all kinds of distributed resources and aggregations thereof can compete to provide a wide range of energy and ancillary services in competitive markets. Several Regional Transmission Organizations and Independent System Operators have already begun incorporating distributed resources into their markets. The changes to the rules in these markets including allowing smaller resources to compete and enabling aggregation can serve as a blueprint for encouraging more development of distributed resources while staying technology neutral. 6. Improve the Integration of Microgrids with the Microgrid Microgrids and virtual power plants can help us move toward a renewable electricity future by integrating distributed renewable resources locally while providing greater capabilities to manage resources in response to varying grid conditions. Microgrids can also protect customers from outages, and support the security and resilience of the larger system. Yet, regulatory and technical standards are not yet fully adapted to tap the value of microgrids. State regulators can improve integration by creating clear definitions of what qualifies as a microgrid, clarifying interconnection procedures for microgrids and enhancing the opportunities for microgrids to provide energy, capacity, and ancillary services to the grid. 7. Reduce Costs by Streamlining Permitting and Interconnection In Germany, the soft costs of solar PV which include customer acquisition; installation labor; and permitting, inspection, and interconnection are 73 percent lower than in the United States. Regulators and policymakers can help reduce the soft costs in the U.S. by streamlining permitting and interconnection procedures. Current best practices include over-the-counter, same-day permit review; clear WebPages focused on the solar permitting process; simplifying requirements for site plans; self inspection by certified PV installers; and combining all required inspections into one onsite visit. 7

66 8. Encourage Smart EV Charging Smart charging of electric vehicles can help to support the integration of high levels of variable renewable generation into the grid and provide efficiency and environmental benefits in the transportation sector. REPORT_FULL_2013.pdf 2. California Regulations Update a. CPUC Draft Decision Sets 1.3 GW Energy-Storage Target A draft decision at the CPUC would require investor owned utilities to procure more than 1.3 GW of energy storage, formalizing a proposal from earlier the spring. In June, CPUC Commissioner Carla Peterman laid out a structure for utilities to procure the 1.3 GW by 2020, using a reverse auction mechanism. A draft decision released this week calls for utilities to apply by January 2014 with a proposal for their first solicitation [R ]. Community choice aggregators would need to procure storage equal to 1 percent of their annual peak loads by 2020; energy-service providers would need to do the same by The draft decision specifies goals for utilities. For instance, Southern California Edison and Pacific Gas & Electric must each procure 580 MW including 90 MW in 2014, 120 MW in 2016, 160 MW in 2018 and 210 MW in San Diego Gas & Electric must get 20 MW, 30 MW, 45 MW and 70 MW in those respective years for a 165 MW total. The draft decision breaks those goals into categories of transmission-connected, distribution-connected and customer-side storage. The first solicitation would occur in December The decision would let utilities defer up to 80 percent of their procurement target to a later solicitation if they can show that they have not received bids that are economically or operationally viable or have not received enough bids to meet procurement targets. But they must procure a minimum level for each procurement period to ensure storage becomes part of their resource portfolios. Parties can comment on the decision until September 23, b. CPUC Looks to New Tool to Prompt Energy-Efficiency Gains The California Public Utilities Commission adopted a new tool aiming to prompt utilities to invest in energy efficiency and reward them in a sufficient and predictable way. This ruling was initiated because of the controversy and questions that surrounded the previous incentive tool. The commission voted 4-0 at a September 5, 2014 business meeting to approve the tool, laid out in a decision by Administrative Law Judge Thomas Pulsifer [D , R ]. The Efficiency Savings and Performance Incentive (ESPI) replaces the Risk Reward Incentive Mechanism (RRIM). ESPI differs from the prior approach by placing greater emphasis on capturing deeper, more comprehensive, and longer lasting energy savings, the decision stated. 8

67 The new tool stems from a proposal by Commissioner Mark Ferron and seeks to encourage longer lasting and deeper savings that extend beyond the cycle. It calls for offering incentive awards in four categories for: Actual energy-efficiency resource savings; A review process on expected savings; Savings from building codes and standards programs; and Non-resource programs that support savings-based programs but produce no direct energy savings. The new tool caps incentives for resource savings at 9 percent of resource-program spending and caps incentives for the review process on expected savings at 3 percent of resource-program spending, minus funding for administrative and other activities. The tool provides management fees equal to 12 percent of approved codes-and-standards program spending and 3 percent of non-resource program spending, excluding administrative costs. The previous mechanism had sought to maximize net economic benefits, which reduced energy savings and lessened support for longer-term policy objectives. Parties had fought for years over the RRIM, as utilities collected hundreds of millions of dollars in rewards that consumer groups called unearned and CPUC administrative law judges had not always recommended. The RRIM wound up relying on expected savings rather than actual savings, as originally intended, and parties argued over how to calculate savings an evaluation, measurement and verification process that should have provided factual information but became a source of controversy itself. c. CPUC Rulemaking on Demand Response Also, at the meeting, commissioners opened a new rulemaking aimed at trying to prioritize demand response [R ]. The case will consider whether and how to split utilities ratepayer-funded DR programs into supply-side and demand-side resources. The ultimate goal is to enhance the role of demand response programs in meeting the state s long-term clean energy goals while maintaining system and local reliability, the rulemaking stated. The order noted that DR lets utilities avoid procuring generation and that demand response now counts toward resource-adequacy requirements. But DR does not get bid into the Cal- ISO market or have to meet certain requirements that other resources do. California needs demand response to have supply- side operational characteristics and capabilities in order to meet the state s future system and market needs, the order stated. The order noted the closing of San Onofre Nuclear Generating Station and the integration of intermittent renewables to meet state energy targets. DR can provide needed reliability if designed correctly, the order said. The order looks to tie DR to resource-adequacy procurement and help it take part in Cal-ISO wholesale markets. It also looks to create a larger role for third-party aggregators, not just utilities, in procuring supply-side DR. And it lays out a proposal for three DR pilots one for each utility in The programs aim to test participation of DR in the Cal-ISO wholesale energy market and test the effectiveness of strategies to improve customer response to time-of-use and critical-peak pricing rates. 9

68 d. Judge Upholds Cap-and-Trade Auctions in Tentative Ruling A California judge yesterday denied business groups' bid to overturn the state's system of distributing greenhouse gas permits, in a tentative ruling issued one day before this morning's oral arguments. Judge Timothy Frawley of Sacramento Superior Court said California's 2006 global warming law, A.B. 32, gives the state wide discretion to select the method by which it caps greenhouse gas emissions at 1990 levels by The ruling is tentative and only deals with one of three key legal questions raised by the plaintiffs. But for now, CARB is breathing a little easier as it defends its cap-and-trade allowance auctions from two high profile industry challenges. The cases, filed by the California Chamber of Commerce and the Pacific Legal Foundation, and they make both statutory and constitutional arguments against the auction. Plaintiffs argue that ARB exceeded its authority under AB 32 when deciding to distribute allowances, in part, by auctioning them off. Plaintiffs also argue the auction is an illegal tax, enacted with less than the two-thirds majority of the Legislature required by California s constitution for tax increases. The superior court judge hearing the case has issued a tentative ruling in ARB s favor on the first of these sets of issues, regarding statutory authority. Not surprisingly, he concludes that AB 32 gave ARB wide discretion to design a system of emissions reductions that meets the statutory goals, including authority to employ an auction within that design. This isn t surprising since AB 32 delegated almost all decisions about how to meets its reduction goals to ARB, and every case that has challenged ARB s statutory authority under AB 32 has failed court muster. The tentative ruling does not address the constitutional questions concerning whether the auction amounts to a tax. This set of arguments is trickier; the auction has raised more than $300 million for the state so far, largely from businesses regulated under the cap, and much of this revenue will initially be loaned to the General Fund. Nevertheless (and as defendants argue), the auction is missing many of the classic hallmarks of a tax. Here are some aspects of the program that make it seem different from a tax: 1. Purchasers at auction receive a commodity at its market value that they may turn around and sell; 2. The market, not the State, sets the auction prices; 3. The auction was not created for the purpose of raising revenue; and 4. Participation in the auction is not compulsory for any buyer. The Court held a hearing in late August focused largely on the tax questions. Apparently the hearing went relatively well since the Judge gave no sign of veering from his tentative ruling on the statutory questions, and he did not spend any time addressing questions of what remedy would be appropriate should he rule against defendants on the tax issue. e. Federal Panel Upholds Low Carbon Fuel Standard A panel of federal judges on Wednesday upheld California's first-in-the-nation mandate requiring fuel producers to reduce greenhouse gas emissions. A three-judge panel of the 9th U.S. Circuit Court of Appeals on Wednesday rejected arguments from fuel makers that California's "Low Carbon Fuel Standard" discriminated against out-of-state producers. The ruling reverses a U.S. District Court ruling in favor of the plaintiffs, and removes an injunction that at one point halted implementation of the law. 10

69 The California Air Resources Board, the agency in charge of implementing the standard, appealed, and was able to continue implementing the law while the case was being heard. "This is a very good step for Californians and the fight against climate change," Dave Clegern, a spokesman for the board, said in an . "We are pleased, on behalf of the people of California and its environment, that the Court recognized the importance of this program and that the (standard) remains in effect." The low carbon fuel standard is a key piece of California's landmark global warming law, AB 32, and is meant to cut the state's dependence on petroleum by 20 percent and account for one-tenth of the state's goal to cut greenhouse gas emissions to 1990 levels by Charles Drevna, president of the American Fuel & Petrochemical Manufacturers, said in a statement he was disappointed by the ruling and that the group was considering further legal action. "Although the LCFS is a California law," he said, "its broad reach and intended scope means that implementing the LCFS will have adverse consequences throughout the nation's fuel refining facilities and supply chain far beyond California's borders." The industry has argued that the standard will place too high a burden on refiners and fuels makers, which will ultimately affect supply and drive up prices at the pump. The companies say the standard discriminates against imports by relying on a "carbon intensity score" to determine a fuel's greenhouse gas burden. The scores measure pollution from a fuel's entire life cycle - such as the type of electricity used to produce it or the energy used to make it and transport it to California - not just when it is burned in a vehicle. Out-of-state refiners and ethanol companies argued that transportation of the fuels into California alone raised their scores, making them less competitive with in state produced fuels. They argued the law violated the commerce clause of the U.S. Constitution by imposing limits on interstate commerce. U.S. District Court Judge Lawrence O'Neill in Fresno agreed with the fuel companies and halted implementation of the new law. But 9th Circuit Judge Ronald Gould, who wrote the opinion, said the state's standard provided fuel makers with avenues to comply with the requirements and get their fuels to market. He also wrote ethanol made in state does not ensure a lower carbon intensity score than ethanol made elsewhere. "California ethanol produces the most transportation emissions because California grows no corn for ethanol, so its producers import raw corn, which is bulkier and heavier than the refined ethanol shipped by producers in Brazil and the Midwest," Gould wrote. f. CARB Releases First Compliance Offset Credits The California Air Resources Board (CARB) says it will issue the first compliance-offset credits eligible for use in California s cap-and-trade greenhouse gas emissions reduction program by the end of the month. The first batch of 600,000 offsets includes a combination of early action projects and compliance-offset projects. 11

70 Carbon offset credits are issued for GHG reductions that take place in sectors not covered under the state s cap-and-trade program. Each credit represents 1 metric ton of carbon dioxide and only carbon-offset credits issued by CARB are considered compliance-offset credits. CARB Chair Mary D. Nichols says the offsets have undergone the most rigorous verification of any existing program. The evaluation process included third-party verification to ensure that the offset credits achieve real GHG reductions under CARB-approved protocols. Covered facilities may use carbon offsets to cover up to 8 percent of their compliance obligation. Carbon offsets also act as a cost-control measure for covered facilities because offsets generally cost less than allowances, which are issued by the state. The offsets come from projects that provide additional environmental benefits beyond reducing GHGs. These include protecting the ozone layer or supporting improved forest management, which upgrades water quality and habitat. The first compliance offset credits are all for projects developed under the Ozone Depleting Substances Protocol. This protocol requires the destruction of potent GHGs that leak into the atmosphere. Eligible ozone depleting substances have been used as refrigerants and as foam-blowing agents. Their release into the atmosphere damages the earth s ozone layer and contributes to global warming. Early action projects are GHG reductions generated under CARB-approved voluntary carbon registry protocols. These credits for early action recognize that real and verified greenhouse gas reductions were made in good faith before the cap-and-trade program began. CARB compliance offset credits will be issued within the Compliance Instrument Tracking System Service (CITSS), the same system in which state-issued allowances reside. Once the determination to issue credits is made by CARB, it can take up to 30 days for the credits to be placed in the holder s account in CITSS. CARB currently has four approved offset protocols that can generate compliance-grade carbon offset credits: 1. Forestry management projects (in the lower 48 states) 2. Urban forestry projects 3. Dairy digester projects (to capture methane from manure at dairy facilities) 4. Ozone depleting substances (ODS) destruction projects Covered facilities may use carbon offsets to cover up to 8 percent of their compliance obligation. Carbon offsets also act as a cost-control measure for covered facilities because offsets generally cost less than allowances, which are issued by the state. In addition, carbon offsets come from projects that provide significant additional environmental benefits beyond the reduction of greenhouse gases. These include, for example, protection of the ozone layer, or supporting improved forest management, which upgrades water quality and habitat. The Air Resources Board has begun the process of issuing compliance-offset credits for both early action projects and compliance-offset projects. The first compliance offset credits are 12

71 all for projects developed under the Ozone Depleting Substances Protocol. This protocol requires the destruction of potent greenhouse gases that leak into the atmosphere. Eligible ozone depleting substances have been used as refrigerants and as foam-blowing agents. Their release into the atmosphere damages the earth s ozone layer and contributes to global warming. For carbon offset projects to be considered for Air Resources Board offset credits, they must first be registered with an Air Resources Board-approved carbon registry. Each project developer must then provide a complete history of the project. That documentation and the project site itself must be evaluated by independent ARB trained third-party verifiers. Air Resources Board staff then review each project as well. This process provides the most rigorous and stringent verification methodology in the world. Offset credit issuance is a three-step process: 1. Project developer requests that Air Resources Board issue compliance offset credits, and supplies supporting documentation. 2. Once ARB verifies the documentation and makes a determination, credits issued by approved offset registries must then be retired. 3. ARB then issues that number of compliance offset credits for use under the cap-andtrade program. The current batch of 600,000 offsets -- for a combination of early action projects and compliance-offset projects -- are likely to be issued before the end of the September California Policy Update a. Alternative Fuels Summit Hits High Points Participants in the invitation only August 27, 2013 event in Sacramento which brought together clean fuels industry stakeholders and state policy makers discussed the state of alternative fuels in California, through a series of panels discussing the state of the art in clean fuels technology, legislation, and regulation. CALSTART President and CEO John Boesel and Deputy Cabinet Secretary and senior gubernatorial advisor Wade Crowfoot welcomed attendees with an overview of the fuel policy landscape. The first panel, Clean, Low-Carbon Fuels Today, then provided an overview of market penetration for the range of low-carbon fuels currently available, including biofuels, electricity and natural gas. Natural Gas Vehicle Coalition President Tim Carmichael moderated the Summit s second panel, More and Cleaner Choices Tomorrow, which covered development of and investment in the next generation of clean transportation fuels. The panel featured State Sen. Hannah-Beth Jackson (D-Santa Barbara) and Assemblymember Philip Ting (D-San Francisco), both of whom expressed strong support for low-carbon fuels and solicited suggestions about how they could aid adoption. In response, fellow panelists and audience members showed strong support for enforcing the Low Carbon Fuel Standard. 13

72 On this top issue, people asked for stability, predictability and regulatory certainty for the LCFS to make it clear that the LCFS is here to stay. That feedback was especially timely given the California Court of Appeal s July 15 ruling leaving the LCFS in place and permitting CARB to enforce 2013 LCFS regulatory standards. Close behind concerns about LCFS stability were requests for standards-based policies and incentives, technology neutrality, and streamlined permitting for green projects, which has been adopted piecemeal by municipalities rather than comprehensively at the state level. The afternoon s third panel, Regional and Statewide Needs and Perspectives: What Can the State Do? asked how to drive emission reductions, jobs, and innovation in California. The panel featured a mix of legislators, academics and businesspeople, with Assemblymembers Susan Talamantes Eggman (D-Stockton), Al Muratsuchi (D-Torrance) and Henry Perea (D- Fresno) joining State Sen. Ben Hueso (D-San Diego) in soliciting feedback about what they might accomplish in the Legislature. During the question-and-answer session, Chuck White, director of regulatory affairs, West, for Waste Management, raised the idea of a green bank that could help fund the development of clean transportation projects, leading to invitations from some legislators to discuss the idea further. More than 100 people from the alternative fuels industry, the Legislature and state agencies attended the Summit, which was organized by CALSTART, E2 Environmental Entrepreneurs and the Natural Gas Vehicle Coalition. Summit participants embraced the idea that all lowcarbon fuels are better than oil, with each offering distinctive cost and air-pollution benefits b. Governor Brown and California Companies Show of Support for EV s The California Governor joined forces with 40 leading corporations to showcase the state s commitment to electric vehicles. Companies as diverse as Google and Coca-Cola joined the Governor at this event. They all promised to promote EV s with workplace incentives like free charging and car sharing of plug-in vehicles. The event, called "Drive the Dream," was held at the Exploratorium in San Francisco and organized by the California Plug-In Electric Vehicle Collaborative. Several plug-in hybrid and electric cars, from Tesla's Model S sedan to BMW's new i3, were on display outside the Exploratorium. "I remember 35 years ago when solar energy was associated with bean sprouts," said Brown, who spoke while dozens of corporate executives stood behind him. "This is not alternative any more. BMW, Tesla, Honda, GM: This is impressive. Walgreens, Coke: This is mainstream America promoting electric vehicles." Several corporations announced they are expanding charging stations. Walgreens plans to add 13 additional charging stations at locations throughout California. Coca-Cola, which owns Odwalla, is using electric trucks to deliver Odwalla juices in the state. Intuit announced plans to expand electric vehicle chargers at campuses in Mountain View, Menlo Park and elsewhere. Bank of America announced a $3,000 incentive for its American employees to purchase a plug-in electric vehicle, in addition to a workplace-charging program. Google, which already has installed more than 700 charging stations at a dozen campuses, stressed its commitment to convert 5 percent of all existing and future parking spaces to 14

73 electrical charging stations at the company's Mountain View headquarters. The company also has 56 plug-in vehicles from seven manufacturers as part of its "GFleet," a car-sharing program for Google employees. "Plug-in vehicles are game-changers," said Rick Needham, Google's director of energy and sustainability. "Five hundred employees have their own EVs. At Google, we believe that plug-in vehicles are the future, and we are happy to support their adoption." Brown said Monday that he would sign AB 8 and SB 359, a pair of bills that support electric vehicles. AB 8 provides more than $2 billion in funding and extends current rebates for consumers who buy electric vehicles through The funding comes from vehicle license fees; consumers can get up to a $2,500 rebate for purchasing an electric vehicle. SB 359 transfers another $30 million to various state programs aimed at promoting low-emission vehicles. c. New Generation Recommended for Southern California- Life After SONGS State energy agencies on August 30, 2013 released a draft plan for maintaining reliable electric service in Southern California that calls for thousands of megawatts of preferred resources and conventional generation, as well as transmission upgrades and contingency permitting for new resources. The plan calls for developing or procuring about 3,250 MW of preferred resources such as energy efficiency, renewables, demand response, combined heat and power and energy storage, and another 3,000 MW of conventional generation. The CPUC, the CEC and Cal-ISO prepared the plan in the wake of Southern California Edison s June 7 announcement that it would permanently close the 2,250 MW San Onofre Nuclear Generating Station. SONGS supplied power to about 1.4 million homes served by Edison, San Diego Gas & Electric and the City of Riverside. As the agencies noted, SONGS was especially important since it was located on a critical transmission path between Orange County and San Diego, and provided crucial voltage support that was necessary to move power between Los Angeles and the Orange County/San Diego regions. In assessing the need for replacement power, regulators also had to consider expected load growth of about 400 MW a year in the region and regulatory deadlines for phasing out approximately 5,000 MW of once-through-cooling units at aging gas-fired plants. These are large numbers and involve a complex mix of regulatory challenges, the agencies stated in the draft plan. Developed with input from the State Water Resources Control Board, Edison, SDG&E and the South Coast Air Quality Management District, the recommendations are made with a goal of ensuring reliability. They stress the importance of beginning to plan now, as the specific actions called for in the report would be implemented through decisions either in a CPUC proceeding, in the Cal-ISO planning process, or through the CEC s power-plant siting process. The plan looks at near-term needs ( ) and long-term needs (2020 and beyond), and uses previous technical studies done this year and last as the basis for recommendations. Specific recommendations for preferred resources include maintaining the Flex Alert program and extending funding beyond The CPUC will review funding needs once it wraps up an effectiveness study, according to the agencies. The CPUC will also take steps next year to accelerate authorization and procurement of additional preferred resources in the regions affected by the SONGS closure. 15

74 The agencies recommended the CPUC take steps to allow for the development of near-term options to provide larger amounts of preferred resources in the Los Angeles Basin and San Diego. Traditionally preferred resources programs are statewide and geographically neutral, the agencies stated. Therefore the CPUC will need to consider rule changes that can allow resources authorization to better address local reliability needs. Edison plans to seek CPUC approval to adjust its existing energy-efficiency and demandresponse programs to get more competitively priced preferred resources, with a target focus on loads in the West LA Basin and south Orange County, while Cal-ISO is looking into the feasibility of implementing a pilot multi-year auction for efficiency and DR programs in the region. Generation recommendations include maintaining existing peaking generation in San Diego by delaying the retirement of the 188 MW Cabrillo II peaker until 2015; accelerating the procurement of already authorized near-term resources; and authorizing additional conventional generation. Both Edison and SDG&E would like to pre-license sites in their service areas that they would then bid out to developers based on predetermined resource needs. This proposal will require flexibility within the various state rules on licensing and development time frame, but could facilitate the addition of new generation in significantly shorter time frames if and once the need is authorized by the CPUC, the plan states. The option would require a CPUC review of funding needs for development work; CEC cooperation and substantial review of preliminary applications for certification; and potential action by local air boards to ensure emissions offsets are available, the plan added. Looking out to 2020 and beyond, the retirement of as much as 3,800 MW of conventional once-through cooling generation comes into play. Cal-ISO has identified a need of about 4,600 MW post-2020, but an estimated 1,000 MW of distributed generation, an estimated 1,000 MW of energy-efficiency savings (from not-yet-authorized programs) and 200 MW of demand response would reduce that need. The plan says varying combinations of generation and reactive power support could meet this need, as could preferred resources with appropriate capabilities and in the proper locations. A high-voltage transmission line between the LA Basin and San Diego could also reduce overall needs by about 1,000 MW. Additional proceedings, such as Cal-ISO s annual transmission-planning process expected in the first quarter of next year and the CPUC s long-term procurement- planning proceeding, will be used to help refine the plan. d. PG&E Unveils Hybrid Electric Bucket Truck Electric Vehicles International (EVI), joined by Pacific Gas and Electric Company (PG&E), unveiled the utility industry s first electric hybrid drive train Class 5 trucks at an event at the manufacturer s facility in Stockton. The Range Extended Electric Vehicle (REEV) utility trucks, developed by EVI in partnership with PG&E and the California Energy Commission (CEC), were designed, built and tested at EVI s manufacturing plant in Stockton. 16

75 The REEV features an all-electric range of 45 miles and fuel savings of up to 30 percent when the units are operating in hybrid mode. PG&E accepted delivery of the first two REEV units this summer, and purchased two additional units after a successful initial demonstration of the vehicles. California s Alternative and Renewable Fuels and Vehicle Technology program is putting more of the cleanest vehicles into service today, said Janae Scott, member of the California Energy Commission. The investments that the Energy Commission is making covers initial costs of these trucks, gets innovative technologies to market sooner, and furthers California s lead on clean transportation. EVI, formerly headquartered in Toluca, Mexico, moved its operations to Stockton in 2009 to take advantage of various statewide and regional incentives designed to assist alternativefuel truck and bus manufacturers in reducing prices for its customers. Beyond statewide incentives such as the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) offered by the California Air Resources Board, EVI has partnered with the San Joaquin Valley Air Pollution Control District to reduce the costs of clean vehicles even further based on the district s pledge to match other government incentives. Our decision to relocate to Stockton was the best choice we could have made and we are proud to bring new jobs to the San Joaquin Valley and to help reduce air pollution in this highly affected region, said Ricky Hanna, president and CEO of EVI. In addition, being able to work more closely with innovative, forward looking companies like PG&E on developing new green fleet technologies will help us to expand our capabilities and presence to create even more new local jobs. PG&E plans to eventually replace all 942 of its conventional fuel Class 5 vehicles, including bucket trucks, flat beds, and other service trucks, with plug-in electric hybrid models, which would save the utility nearly $3.5 million in fuel costs and reduce GHG emissions by over 9,000 metric tons annually. In addition to the fuel savings and environmental benefits that PG&E anticipates as it deploys these trucks in increasing numbers, the trucks also offer up to 75 kw of exportable power that could be used to provide power to the grid during planned or unplanned outages, and the utility is working closely with EVI to move that number even higher. These cutting-edge trucks not only will help us reduce our fuel costs as well as our carbon footprint, but in the event of an outage, we would be able use their exportable power capacity to supply electricity to homes and businesses, said Dave Meisel, senior director of transportation and aviation services for PG&E. Imagine having a fleet of these to deploy in response to a natural disaster or unplanned outage. For us, as a utility, that is a gamechanger for the future, and we are proud to partner with EVI and the CEC to develop and integrate these vehicles into our green fleet. 17

76 4. Priority California Legislation Passed in 2013 a. Clean Vehicle Incentive Funding AB 8 (Perea) - Clean Vehicle Incentive Programs AB 8 extends for eight years the clean vehicle incentive programs created by AB 118 (the Alternative and Renewable Fuel and Vehicle Technology Program), the Carl Moyer Memorial Air Quality Standards Attainment Program and AB 923 air quality improvement funding for local air districts. State funding for clean transportation has already started to decline, and all the major clean transportation incentive programs are slated to sunset by This legislation extends funding through AB 8 authorizes more than $2 billion in clean vehicle incentives for California. AB 118 funds help underwrite research and production of alternative fuels, engines, infrastructure, fueling stations, and other equipment; retrofit on-road medium- and heavy-duty vehicle fleets; establish training programs for people who work with alternative fuels; and generally decrease the overall carbon footprint of AFVs. The Carl Moyer Program provides incentives through the state s air districts to develop and deploy cleaner-than-required medium- and heavy-duty engines and equipment, while AB 923 expands Carl Moyer funding eligibility to cars and light-duty trucks, with a focus on local programs that reduce diesel emissions. At an electric vehicles event last week in San Francisco, Gov. Jerry Brown indicated that he would sign AB 8. AB 1257 (Bocanegra) - Natural Gas Priority AB 1257 helps give natural gas the same priority in state policy making as other alternative fuels. It requires the CEC, as part of its biennial Integrated Energy Policy Report (IEPR), to identify strategies to maximize the benefits obtained from natural gas, including biomethane... as an energy source. As part of this report, the CEC must identify strategies and options for... making the best use of natural gas as a transportation fuel. AB 1257 also directs the CEC to investigate the uses, benefits and impacts of natural gas in a variety of other areas such as power generation, home heating and cooling, and job creation. This bill also awaits Gov. Brown s action, and he is expected to sign it. b. Renewable Energy Legislation AB 327 (Perea) Net Metering and Rate Reform Following intense negotiations and tens of thousands of s from Californian renewable energy supporters, this much-watched utility rate reform bill passed the Legislature with support from the solar industry, utilities and ratepayer advocates alike. 1. It ensures that California s successful net metering program will stay in place until customers of the three large IOUs have installed over 5,200 MW of net metered generation, instead of being suspended by the CPUC as soon as the end of It gives the CPUC authority to remove caps on participation in the net metering program altogether for the first time in California history. The existing cap is set at a rather arbitrary 5 percent of utility non-coincident peak load, beyond which new California solar customers are no longer guaranteed to receive net metering credit for the valuable clean power they deliver to the grid. Over the years, Vote Solar has 18

77 fought time and again to raise this cap: from 0.5 percent to 2.5 percent to its current level. The prospect of an uncapped program is great news indeed! 3. It allows the CPUC to require the utilities to procure renewables in excess of the state s Renewables Portfolio Standard targets. 33 percent renewables will no longer be a ceiling, but a floor. 4. It requires that by July 2015, IOUs must submit plans to the CPUC on how to maximize the locational benefits of distributed solar and other resources on the grid. This is exciting because there is so much overall grid benefit to be gained from customer investment in distributed solar where it is needed most, and we think that value should be fairly recognized. AB 327 s net-metering provisions were the latest amendments. California s current netmetering program, which allows eligible customer-generators to receive a bill credit for solar generated from rooftop panels, was slated to expire at the end of 2016, and was capped at 5 percent of a utility s aggregate customer peak demand. The CPUC in 2012 changed the methodology for calculating the cap, in essence expanding the program, but the decision was controversial. Under the Perea bill, large electrical corporations, defined as those with more than 100,000 service connections, would be required to provide netenergy metering through July 1, 2017, or until the service provider reaches its NEM program cap. The bill specifies per-utility net-energy metering program limits of 607 MW for SDG&E; 2,240 MW for PG&E; and 2,409 MW for Edison. And the CPUC would be eligible customers that would go into effect beginning July 1, 2017, or before that date if the utility met its program limit. The bill does leave some big unanswered questions that will need to be addressed through implementation at the CPUC: It authorizes the CPUC to approve up to a $10 fixed charge on residential customers of California s biggest utilities. Charges like this create a big disincentive for solar and energy efficiency measures because they are slapped on customers no matter how much energy they buy from the utility. We ll push back against fixed charges at the CPUC, highlighting the need for rate structures that encourage good green behavior. It directs the CPUC to determine the compensation structure for net-metered customers who go solar after the 5 percent program cap has been reached. This decision about the future of net metering must be reached by the end of We ll advocate for an uncapped program with a fair structure that ensures customers who go solar receive the full value of the clean energy they feed back to the grid. It gives the CPUC until March 2014 to determine how net-metered customers who go solar under the 5 percent cap will transition to the rules of the expanded program. We ll argue that solar customers shouldn t have the terms of their investments changed on them mid-stream. Sierra Club opposed the bill. In addition to fixed charges adding up to $120 a year to electric bills, Sierra Club said AB 327 would slow adoption of rooftop solar and energy efficiency h_keywords= 19

78 SB 43 (Wolk) Green Tariff Shared Renewables Program Solar is growing in California, but many residents and businesses in the state still can t go solar today. The traditional panels-on-your-roof approach to solar simply doesn t work for renters, tenants of multi-unit buildings, property owners with shaded roofs and plenty of others. This bill creates an innovative green power program that allows any customer of our state s largest utilities PG&E, SCE, and SDG&E to purchase up to 100% renewable electricity for their home or business. That clean power would come from small to medium-sized solar and other renewables projects. Participants would then receive a credit on their utility bill for the clean energy produced. In doing so, SB 43 opens the door for renters and those with shaded roofs to go solar for the first time. Proponents argue that this bill is no ordinary green tariff. They say SB 43 is better for two key reasons: 1. It will result in up to 600 MW of new clean energy projects built in California, sized 20 megawatts or less and 2. It provides participants with tangible economic benefits in the form of bill savings over time. AB 217 (Bradford) Low-Income Solar Programs California s Single-Family Affordable Solar Homes and Multi-Family Affordable Solar Housing (SASH and MASH) rebate programs have proven hugely successful in delivering utility bill savings and solar job opportunities to disadvantaged communities. The first of their kind in the nation, the programs began in 2009 through the California Solar Initiative, funding for which is nearly exhausted. AB 217 extends the two programs through 2021, ensuring that solar will continue delivering economic benefits to the Californians who need them most. AB 792 (Mullin) Utility User Tax Exemption This bill clarifies that all solar customers are exempt from local utility user s tax on the clean electricity they generate - regardless of the financing model used. In doing so, it creates more tax certainty for Californians who go solar through a third-party PPA financing model, which accounted for more than 70 percent of the state s residential solar market in c. ZEV Infrastructure SB 359 (Corbett) - Air Quality and Alternative Fuel Vehicles Advocates for ARB s two rebate programs are concerned that CVRP and HVIP may run out of money before the end of the fiscal year. They point to how the CVRP and HVIP incentive programs have succeeded in reducing the up-front cost of zero-emission vehicle technologies in the early stages of the market, before economies of scale have been achieved. They also point to experiences in other states where rebate programs were suspended for lack of funds and resulted in pronounced market impacts. This bill provides $48 million in additional funding for the current fiscal year to the Air Resources Board (ARB) to support rebates for alternatively fueled vehicle purchases, vehicle retirements and heavy-duty vehicle upgrades. AB 1092 (Levine) - EV Charging Station Standards This bill would require the CEC to include, in its next triennial edition of the California Building Standards Code, standards for the installation of electric vehicle charging infrastructure for parking spaces in multifamily buildings and nonresidential development. 20

79 Specifically, this bill: 1) Requires CBSC to adopt, approve, codify and publish mandatory building standards for the installation of future infrastructure for electric vehicle charging in multifamily and nonresidential development in the next triennial edition of the building standards code adopted after January 1, ) Requires the Department of Housing and Community Development (HCD) to propose and submit the mandatory standards for multifamily dwellings to CBSC for consideration. 3) Requires HCD and CBSC to consider specified voluntary provisions of the existing California Green Building Standard (CALGreen) for electric vehicle charging infrastructure in developing the mandatory standards. SB 454 (Corbett) - Vehicle Charging Station Fees This bill would prohibit the imposition of subscription fees or club membership for anyone who wants to use an EV charging station. Corbett s bill would require actual total charges for charging to be disclosed when the vehicle is charged, including any network roaming charges; and requires that an EV charging station accept payment by credit card or mobile technology, or both. The bill would also require charging- station owners to disclose to the National Renewable Energy Laboratory a charging-fee schedule. d. Energy Efficiency AB 719 (Hernandez) - Energy Efficient Street Lights Requires the PUC, on or before March 1, 2014, to order investor-owned utilities (IOUs) to submit a tariff that a local government may use to fund energy efficiency improvements in street light poles owned by the utility in order to reduce energy bills, but with no cost shifts to nonparticipating ratepayers. 5. Western Region and Other State Activity a. New Mexico Groups Suggest CO2-Reduction Regulation The Western Resource Advocates, New Energy Economy and 32 other organizations have petitioned the New Mexico Public Regulation Commission to require electric utilities to reduce carbon-dioxide emissions from power plants by 3 percent yearly until The proposed Carbon Risk Reduction Rule would replace the Optional Clean Energy Standard organizations proposed in August Although that proposal didn t go anywhere, the new petition stated that comments from a workshop on the initial proposal were helpful. The revised proposal also follows the same methodology that the U.S. Interior Department approved as part of a July 2013 settlement offer to the U.S. Environmental Protection Agency for reducing emissions from the coal-fired Navajo Generating Station in Arizona, said Steve Michel, chief counsel for Western Resource Advocates energy program. Interior agreed to implement a plan to reduce CO2 emissions for the 350 MW it generates at Navajo. That power enables the Central Arizona Project to pump water around Arizona. 21

80 The proposed rule would allow utilities to decide how they reduce CO2 emissions. A utility, for example, could satisfy the rule by improving a coal-fired plant s emissions controls, replacing coal power with gas-fired generation, or replacing coal- or gas-fired generation with renewables. In addition, the petitioners suggested that electric utilities later might be able to buy, sell and trade carbon credits or allowances created in other states. The rule would require New Mexico s electric utilities to establish a base year between 2005 and 2012 for CO2 emissions. Then, on July 1 each year, the utilities would file a verified statement of CO2 reductions during the prior year. Utilities could exit the CO2 regime after In fact, the proposed retirement of two units at the coal-fired San Juan Generating Station would satisfy PNM s compliance obligation through 2023, according to the filing with the New Mexico Public Regulation Commission. The rule would continue until 2035 except for any electric utilities that exit early 6. Federal Activity a. Carbon Pollution Standards For New Power Plants The U.S. Environmental Protection Agency (EPA) has proposed new Clean Air Act standards for natural gas and coal-fired power plants in an effort to curb carbon pollution. This proposal applies only to new plants. According to the EPA, power plants are the largest concentrated source of emissions in the U.S., accounting for roughly one-third of all domestic greenhouse gas emissions. The agency says the proposal achieves the first milestone outlined in President Obama's June 25 memorandum to the EPA on "Power Sector Carbon Pollution Standards," a major part of the president's Climate Action Plan. Under the proposal, new large natural gas-fired turbines would need to meet a limit of 1,000 pounds of CO2 per megawatt-hour, while new small natural gas-fired turbines would need to meet a limit of 1,100 pounds of CO2 per megawatt-hour. New coal-fired units would need to meet a limit of 1,100 pounds of CO2 per megawatt-hour and would have the option to meet a somewhat tighter limit if they choose to average emissions over multiple years, giving those units additional operational flexibility. The EPA says these proposed standards will ensure that new power plants are built with available clean technology to limit carbon pollution, a requirement that is in line with investments in clean energy technologies that are already being made in the power industry. Additionally, the EPA notes that these standards provide flexibility by allowing sources to phase in the use of some of these technologies, and they ensure that the power plants of the future use cleaner energy technologies, such as efficient natural gas, advanced coal technology, nuclear power, and renewable energy like wind and solar. Reactions to the EPA proposal have been mixed among the utility industry. The Edison Electric Institute (EEI), which represents investor-owned electric companies, notes that the proposal is consistent with the recommendations it made to the EPA last year. 22

81 "EEI continues to support an explicit exemption for combustion turbines, which are not efficient or economic to operate, except when needed," comments EEI President Tom Kuhn. "We will closely evaluate the proposal, its potential impact and the steps that EPA has taken to ensure natural gas combined-cycle plants can comply." However, Kuhn also voices some concern. "The new proposal sets a separate standard for coal-based units and requires the use of carbon capture and storage (CCS) technology, which is neither adequately demonstrated nor economically feasible," adds Kuhn. "As proposed, this rule would hinder efforts to develop cost-effective CCS - a critical technology for mitigating greenhouse gas emissions going forward - because it effectively prevents the building of new clean coal plants. We cannot afford to take generation sources out of the mix, as fuel diversity guards against potential supply disruptions and is key to affordable and reliable electricity." Kuhn also states that the EEI will continue working with the EPA. He concludes that carbon pollution standards should "contain achievable compliance limits, minimize costs to customers and are consistent with the electric power industry's investment and transition to a cleaner generation fleet and enhanced electric grid over the next decade." Meanwhile, the National Rural Electric Cooperative Association (NRECA) - representing the nation's private, not-for-profit, consumer-owned electric cooperatives - is explicit in its displeasure with the proposal. "NRECA and its member co-ops are disappointed to learn that the administration has abandoned its 'all of the above' energy strategy and embraced an 'all but one' approach that restricts the future use of coal to generate affordable electricity," says Jo Ann Emerson, CEO of the NRECA. "NRECA urges the administration to reconsider this proposal and focus on working with coops as we continue to reduce power plant emissions, increase efficiency and develop affordable new technologies," Emerson adds. The EPA says it is seeking comment and information on the proposal, including holding a public hearing, and will take that input fully into account as it completes the rulemaking process. The comment period will be open for 60 days following publication in the Federal Register. Separately, in accordance with the June 25, 2013 presidential memorandum, the EPA is working on a separate proposal for the more difficult issue of what to do about the existing fleet of power plants, which are the largest U.S. source of carbon dioxide emissions. She said the agency plans to unveil a proposal for comment in June 2014, after working with states, local government, industry, environmental groups and labor on how to shape a plan. EPA intends to take into account regional differences and to build flexibility into its approach. 7. Conferences, Workshops, and Meetings California Energy Commission Staff Workshop on the State's Role in Supporting Interoperability of Electric Vehicle Supply Equipment (EVSE) 23

82 August 15, a.m. - 4:30 p.m. Cal/EPA Headquarters Building Byron Sher Auditorium 1001 I Street Sacramento, CA California Energy Commission staff will conduct a workshop to solicit stakeholder input on the best way for the state to support EVSE interoperability in California, and what interoperability criteria, if any, should be considered in the development of EVSE solicitations. The workshop will be held on: California Energy Commission Staff Workshop on Distributed Generation: Electricity Infrastructure Costs August 22, a.m Ninth Street First Floor, Hearing Room A, Sacramento, CA The California Energy Commission staff will conduct a workshop to receive comments on a study of the costs and impacts on the electricity system associated with increased distributed generation (DG) installations in California, and how costs and impacts change based on interconnection location, distribution feeder characteristics, load types, and project size. The Energy Commission has contracted with Navigant Consulting to conduct the analysis, and has partnered with Southern California Edison (SCE) to use their system for the study. CARB Board Hearing Update to the Board on the Air Quality Improvement Program September 26, 2013 Byron Sher Auditorium, Sacramento, CA Staff will update the Board on the funding status of the Air Quality Improvement Program (AQIP) and make recommendations for amendments to the approved Fiscal Year AQIP Funding Plan. The amendments include a proposal to transfer funding from demonstration projects and AQIP reserves to the AQIP truck loan program to better support consumer demand in that program. CARB Board Hearing ZEV Regulations - Minor Amendments Scoping Plan Update Briefing October 24-25, 2013 Byron Sher Auditorium, Sacramento, CA The Air Resources Board (ARB or Board) staff is developing a proposal for minor modifications to the Zero Emission Vehicle (ZEV) Regulation. Minor modifications include clarifying the Section 177 state optional compliance path provision, defining how caps apply to a manufacturer s requirement, and excluding battery swapping as a fast refueling technology. A one-day workshop to discuss staff s proposed modifications was conducted on May 20, 2013, in Sacramento, California. California Energy Commission Integrated Energy Policy Report (IEPR) Workshop October 1, 2013, 10 a.m Ninth Street First Floor, Hearing Room A, Sacramento, California 24

83 The California Energy Commission Lead Commissioner Andrew McAllister will conduct a workshop on the Integrated Energy Policy Report (IEPR) to explore a range of perspectives on the future of end-user energy demand in California over the next 10 years. Staff from the Energy Commission will present and discuss their 10-year baseline forecasts of electricity consumption, peak demand and end-use natural gas consumption. Energy Commission staff will also present and discuss a set of plausible energy efficiency scenarios developed to be incremental to the baseline forecasts. Staffs from load-serving entities and other agencies are invited to share their own perspectives on California's future energy needs. CA Independent System Operators Symposium Bridging the Grid of Today with the Network of Tomorrow October 23-24, 2013 Sacramento Convention Center The ISO will host its Stakeholder Symposium 5.0 on October 23 and 24, 2013 at the Sacramento Convention Center. Now in its fifth year, the symposium has become the largest gathering of electric industry executives on the West Coast, with 600 guests expected to attend. The Symposium enables stakeholders, policymakers and the ISO Board of Governors and leadership team to discuss key topics related to the bulk power grid and markets. The theme of this year's event is Bridging the Grid of Today with the Network of Tomorrow. General and breakout sessions provide a platform for guests to discuss current challenges and emerging opportunities. Noted Keynote Speakers Confirmed The ISO is pleased to welcome two renowned keynote speakers: Joseph P. Kennedy II, Founder, Chairman, and President of Citizens Energy Corporation and former Member of the U.S. House of Representatives Greg Abel, Chairman, President, and CEO of MidAmerican Energy Holdings Company Regulators Roundtable The stakeholder symposium will open with a Regulators' Roundtable, featuring a moderated discussion among the following state policy makers: Robert Foster, Chairman, California ISO Board of Governors Felicia Marcus, Board Chair, State Water Resources Control Board Andrew McAllister, Commissioner, California Energy Commission Mary D. Nichols, Chairman, California Air Resources Board Michael R. Peevey, President, California Public Utilities Commission Michael Picker, Senior Advisor to the Governor for Renewable Energy Facilities, Office of California Governor Edmund Gerald Brown, Jr. 25

84 Sector Strategies 2013 年 度 報 告 書 2013 年 12 月 1. スマートグリッド 1.1. 米 国 中 央 電 力 研 究 所 (EPRI)によるスマートグリッドレポート EPRI は Smart Grid Demonstration Initiative の 5 年 目 の 経 過 報 告 を 発 表 このイニシア チブは 分 散 電 源 の 導 入 を 拡 大 しバーチャルパワープラントの 実 用 化 を 目 指 し 実 証 実 験 を 行 っていくというもの 今 回 の 経 過 報 告 では FirstEnergy による 点 在 する 分 散 電 源 の 発 電 状 況 などを 電 力 網 全 体 の 運 営 に 活 用 するための Integrated Control Platform Visualization project やニューメキシコ 州 における 蓄 電 を 電 圧 調 整 とピークシフトの 両 方 に 利 用 するプロジェクトなどについて 言 及 している 1.2. Vehicle to Grid 導 入 について カリフォルニア 公 益 事 業 委 員 会 (CPUC)は V2G に 関 する 文 書 を 発 表 その 中 で Vehicle Grid Integration によって 電 気 自 動 車 は 電 力 源 となり 電 力 網 の 運 営 コストや 電 力 会 社 が 行 う 配 電 網 メンテナンスの 費 用 卸 売 市 場 での 電 力 価 格 などを 低 下 させ ることができるとしている 1.3. カリフォルニア 独 立 系 統 運 用 機 関 (CAISO)の 新 3 カ 年 計 画 CAISO からの 新 3 カ 年 計 画 を 見 ると CAISO の 短 期 的 目 標 を 読 み 取 ることができる 2010 年 には 17%であった 州 の 電 力 ロードに 再 生 可 能 エネルギーが 占 める 割 合 は 2015 年 までに 25%までになると 予 測 している 屋 根 上 ソーラー 燃 料 電 池 電 気 自 動 車 などの 分 散 電 源 の 拡 大 により 電 力 網 に 革 新 的 な 変 化 が 起 ころうとしている これ までの 一 方 通 行 であった 配 電 システムを 分 散 させ 双 方 向 に 変 えていく 原 動 力 になる だろうと 述 べている 2. エネルギー 貯 蔵 2.1. カリフォルニア 州 エネルギー 貯 蔵 導 入 拡 大 AB2514 ではカリフォルニア 州 の 三 大 株 式 上 場 電 力 会 社 に 対 し 2020 年 までに 蓄 電 と 蓄 熱 をあわせて 合 計 1,325MW のエネルギー 貯 蔵 容 量 を 調 達 することを 義 務 付 けてい る 不 安 定 な 再 生 可 能 エネルギー 源 からの 発 電 が 増 加 しているカリフォルニア 州 に とってエネルギー 貯 蔵 は 重 要 な 課 題 である 現 在 33%となっている RPS 目 標 も 今 後 50%に 引 き 上 げるという 話 し 合 いが 続 いており CAISO はこのまま 行 けば 2015 年 に は 電 力 網 の 運 営 に 支 障 が 出 る 可 能 性 があると 述 べている 2.2. Discovery Science Center によるエネルギー 貯 蔵 プロジェクト GE は 非 営 利 教 育 団 体 である Discovery Science Center でロードシフトプロジェクトに 参 加 すると 発 表 500kwh の GE storage と Princeton Power Systems のインバーター 制 御 システムを 使 い 同 センターの 電 力 ロードの 10-20%をピーク 時 間 帯 からオフピ

85 ークへをシフトする このシステムは 非 常 用 のバックアップ 電 源 としても 利 用 可 能 3. 新 たな 課 題 3.1. 水 素 ステーションと 充 電 ステーション カリフォルニア 州 政 府 の Go-Biz プログラムはトヨタ メルセデスベンツ ホンダ ヒュンダイなどの 自 動 車 メーカーと 協 力 し 2015 年 にゼロエミッション 車 の 燃 料 ス テーションの 許 可 システムを 合 理 化 するイニシアチブを 発 表 水 素 自 動 車 及 び 電 気 自 動 車 の 大 幅 な 普 及 拡 大 を 狙 う 各 自 動 車 メーカーは 2015 年 から 2017 年 にかけて 水 素 自 動 車 の 販 売 を 開 始 予 定 カリフォルニアエネルギー 委 員 会 は 水 素 ステーショ ンや 充 電 ステーションのインフラ 整 備 促 進 のため Go-Biz に 対 し 今 後 2 年 間 の 間 30 万 ドルの 資 金 提 供 を 行 うことを 決 定 した 3.2. Charge Ahead California カリフォルニア 州 各 地 域 の 公 衆 衛 生 科 学 環 境 保 全 などの 団 体 が 協 力 し Charge Ahead California というキャンペーンを 立 ち 上 げることを 発 表 この 提 携 プロジェク トでは 10 年 以 内 に 100 万 台 の 電 気 自 動 車 トラック 及 びバスを 普 及 させるための 基 礎 を 築 くことを 目 標 をする カリフォルニア 州 ではガソリンやディーゼルのために 年 間 700 億 ドルを 費 やしており その 内 400 億 ドルは 石 油 会 社 などに 支 払 われ 州 外 に 支 出 される 電 気 自 動 車 の 普 及 によって これらの 資 金 が 州 内 にとどまることを 可 能 にし その 結 果 経 済 発 展 が 見 込 め 2030 年 までに 10 万 人 以 上 の 雇 用 を 創 出 で きる 見 込 み 3.3. 大 気 資 源 局 (CARB)AB32 の Scoping Plan 発 表 に 遅 れ CARB は AB32 のスコーピングプランの 最 新 版 提 出 が 遅 れると 発 表 2014 年 春 にプラ ンと 同 時 に 環 境 アセスメントの 結 果 も 提 出 する 予 定 であるとのこと もともとの 提 出 期 限 から 数 ヶ 月 の 遅 れとなり CARB の 2014 年 の 公 聴 スケジュール 全 体 に 影 響 が 出 る 見 通 し 3.4. 電 気 自 動 車 支 援 のために 8 つの 州 が 協 定 全 米 の 自 動 車 市 場 4 分 の 1 を 占 める 8 つの 州 は 消 費 者 が 電 気 自 動 車 の 購 入 をしやす くなるように 建 築 コードを 改 定 する 充 電 ステーションを 増 やすなどの 活 動 を 強 化 していくことを 表 明 充 電 ステーションの 設 置 プロセスを 合 理 化 し 支 払 いシステ ムを 標 準 化 し オフィスや 多 世 帯 住 宅 などで 充 電 ステーションの 設 置 を 義 務 付 ける など 行 う 予 定 この 協 定 にはカリフォルニア 州 コネチカット 州 メリーランド 州 マサチューセッツ 州 ニューヨーク 州 オレゴン 州 ロードアイランド 州 とバーモ ント 州 が 参 加 している 年 以 降 の 温 室 効 果 ガス 排 出 削 減 のための 法 律

86 これまで 温 室 効 果 ガス 削 減 のための 法 案 提 出 を 行 ってきている Pavley 議 員 は 議 会 に 対 し 次 の 会 期 中 に 提 案 する 予 定 の 法 案 へのサポートを 要 請 した この 法 案 には 2020 年 以 降 の 温 室 効 果 ガス 削 減 のための 計 画 気 候 の 変 化 の 問 題 を 解 決 するための 政 策 ツールの 評 価 CARB に 対 し 2020 年 以 降 の 環 境 改 善 や 技 術 革 新 のためのロード マップの 提 出 を 義 務 付 け などの 項 目 が 含 まれる 3.6. 米 国 大 企 業 が 長 期 計 画 にカーボン 税 を 考 慮 石 油 会 社 を 含 む 米 国 の 大 企 業 24 社 以 上 が 今 後 の 事 業 計 画 を 考 える 上 で カーボン 税 が 課 せられる 可 能 性 を 考 慮 していることがわかった 環 境 データを 扱 う CDP North America からのデータによると 少 なくとも 29 の 企 業 が 政 府 からのカーボン 税 を 長 期 事 業 計 画 の 中 に 含 めているとのこと 3.7. ローレンスバークレー 国 立 研 究 所 (LBNL)カリフォルニア 州 が 温 室 効 果 ガス 排 出 削 減 目 標 達 成 に 順 調 に 向 かっているとの 調 査 結 果 LBNL はカリフォルニア 州 が 現 行 の 政 策 や 規 制 によって 2026 年 までの 州 の 温 室 効 果 ガス 排 出 削 減 目 標 (1990 年 時 点 と 同 等 レベル)を 達 成 できるであろうと 調 査 結 果 を 発 表 した また 既 存 の 政 策 を 拡 大 していくことで 2050 年 までの 目 標 (1990 年 時 点 より 80% 削 減 したレベル)も 達 成 できるであろうとしている LBNL は 既 存 の 政 策 を 軸 にいくつかのシナリオを 作 成 し 評 価 している このシナリオに 含 まれたのは Pavley Vehicle Standards, Low Carbon Fuel Standard(LCFS),Statewide emissions performance standard, 33% RPS, Smart growth program, Once-through cooling phase out, Zero emission vehicle program の 7 つ

87 S E C T O R S T R A T E G I E S G o v e r n m e n t A f f a i r s, R e s e a r c h, a n d A d v o c a c y Date: December, 2013 Memorandum To: CC: From: Subject: Go Takizawa, Chief Representative NEDO Silicon Valley Office Sean Kagiyama Aya Iwasuji Mariko Autry Chuck Helget, Sector Strategies Quarterly Briefing #2 - December Smart Grid, Energy Storage and Emerging Issues This report reflects a summary and analysis of current smart grid, energy storage and emerging issues that have arisen over the past several months. The information provided is in brief summary form. If you need information that is more detailed on any issues presented in this briefing or if you have any questions regarding the content in this report, please contact me. Index Smart Grid EPRI Smart Grid Report Page 2 Vehicle to Grid Integration Page 2 CAISO s New 3-Year Strategy Page 3 Energy Storage CA Expands Energy Storage Page 4 Discovery Science Center Energy Storage System Page 7 Emerging Issues Hydrogen Fueling Stations Page 8 Charge Ahead California Page 9 CARB SPU Delays Page 9 8 States Forge Agreement to Support Electric Cars Page 9 Legislation for GHG Reductions Beyond 2020 Page 10 Companies Include Carbon Tax in Long-term Planning Page 11 Study Shows CA On Track To Achieve GHG Goals Page 11

88 I. SMART GRID A. EPRI Report Shows Smart Grid Progress EPRI has published a five-year update report for its Smart Grid Demonstration Initiative, a sevenyear collaborative research effort focused on design, implementation, and assessment of field demonstrations to address prevalent challenges with integrating distributed energy resources in grid and market operations to create a Virtual Power Plant. As part of the update, FirstEnergy has launched an Integrated Control Platform Visualization project, which provides an integrated view of data and information from various distribution assets to assist operations. Data from four devices is displayed via the system: direct load control devices, distribution line sensors, substation meters, and ice storage for permanent peak load shifting. Southern California Edison has nine sub-projects comprising the Irvine Smart Grid Demonstration Project (ISGD) and is in the process of completing installation and testing as part of ISGD's Energy Smart Customer Solutions Measurement and Verification activities. For example, electrical work has been completed on demonstration homes that include photovoltaic solar panels, energy storage units, appliances, and energy monitoring devices; the customer equipment has begun transmitting data, which is being tested and validated. Public Service of New Mexico is using storage for simultaneous voltage smoothing and peak shifting. At scale, or combined with other storage resources within the system, energy storage has been able to use intermittent renewable generation and create a firm, dispatchable resource. Salt River Project has launched a Field Area Network (FAN) Pilot -- a wireless broadband network that can be integrated with multiple devices and applications across a utility -- to serve as the unifying infrastructure of its field area network. Sacramento Municipal Utility District (SMUD) is using smart grid data to help detect power theft by integrating and analyzing data to identify potential customer theft, and developing algorithms to assess information from a number of sources, including customer records, meter records, service orders, meter values, and more. The utility expects to significantly reduce its loss of 1 percent of revenue from power theft. Also, as part of SMUD's Residential Summer Solutions program, participants opting for a time of use, critical peak pricing rate dropped 70 percent more load during peak events than those on direct load control. pdate.pdf B. Vehicle to Grid Integration Vehicle to grid integration has recently been the subject of a workshop at the CA Independent System Operator (CAISO) and CA Energy Commission (CEC) and is the topic of a rule making at the CA Public Utilities Commission (CPUC). The CAISO has been working on their Vehicle to Grid Stakeholder process and the CEC has been working with them. The CPUC has produced a useful White Paper that states that, greater use of PEVs requires that grid operators prepare for the influx of these potentially sizeable and mobile loads on the electric distribution infrastructure. 2

89 The Paper concludes that Vehicle-Grid Integration (VGI) can harness the usage characteristics of and technologies within PEVs to allow them to serve as a grid asset, reducing operating costs for facility and vehicle owners, the utilities distribution maintenance requirements, and energy prices in the wholesale market. In this paper, the Energy Division of the California Public Utilities Commission (CPUC) proposes a framework to characterize VGI and help understand the regulatory barriers to the use of electrified transportation as grid resources. This framework examines VGI on three characteristics: The capability of the resource to provide power to the grid in addition to managing its power draw; The alignment of the objectives of the various actors (a vehicle owner, an electric charging station operator, and the facility at which they are located) involved with provision of power to or from the resource; and The provision of grid services from an individual or an aggregation of resources. C. CAISO Unveils Three-Year Strategy The new three-year strategic plan from California s grid operator provides some detailed insight into CAISO s short-term priorities. In 2012, Over 670 megawatts of new solar generation were connected to the ISO grid, according to the plan. By 2015, renewables will go from 2010 s 17 percent of the state's load to 25 percent. Reliably delivering electricity and supporting the state s ambitious 33 percent renewables by 2020 goal were the aims of the California Independent System Operator Corporation (ISO) fiveyear plan that was released just eighteen months ago, according to CEO Stephen Berberich. But the state s grid is experiencing a historic transformation, the ISO s newly released Building A Sustainable Energy Future: Strategic Plan notes. In combination, distributed generation resources such as rooftop solar, fuel cells, electric vehicles and advances in energy storage have the potential to revolutionize the power grid. These key drivers are fundamentally changing the grid from a centralized, one-way distribution system, to a two-way decentralized network. The new strategic plan contains few hard numbers, It is a way for the ISO to expand its consideration of new grid management opportunities like vehicle to grid (V2G) technology, demand response (DR), and energy imbalance markets that have emerged as realities in the last eighteen months, according to CAISO staff. One example is that since the last strategic plan, we have engaged in vehicle-to-grid pilot projects with developers, Greenlee said. Department of Defense plans call for a $20 million investment in V2G vehicles and infrastructure at Los Angeles Air Force Base and the Naval Air Weapons Station in China Lake, according to the document. From telemetry data exchanges between the pilot projects and the ISO, CAISO staff explained, We see what they do, we see what happens on the grid, we get feedback and give them our feedback. The ISO s so-called duck chart (See Page 5) shows how California s grid will evolve as renewables are added. 3

90 The ISO has identified the need for very specific operational capabilities needed in real time to allow electric supply to keep up with demand and also reduce production during oversupply conditions, the plan notes, but there is no effective mechanism looking out two to three years to procure these flexible capabilities. A big source of increased flexibility in the new plan is establishing an Energy Imbalance Market (EIM), which leverages resources across a wider region. The ISO has developed new regional cooperative agreements with PacifiCorp, which operates in Oregon, Washington, California, Utah, Wyoming and Idaho, along with Nevada s Valley Electric Association and with the Merced Irrigation District in Central California, according to the plan. The new ISO plan also notes the implementation of FERC Order 764. Moving to 15-minute scheduling increases the operational flexibility of the grid and reduces the cost of integrating. To meet the state s loading order, which requires the ISO to use efficiency measures and renewables first whenever possible, the plan calls for: Compliance with the state s mandate to eliminate once-through cooling plants Cooperation with the California Public Utilities Commission to develop marketbased solutions to meet resource adequacy mandates Attributing capacity value for reliability Advocating for policies that support the loading order, such as time-of-use rates Streamlining transmission and distribution interconnections Doing whatever is needed to protect the grid II. ENERGY STORAGE A. California Legislation Provides Pressure to Expand Electricity Storage Capacity AB 2514, which passed unanimously in October 2013, instructs California s investor-owned utilities (Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E)) to expand their electricity storage capacity and procure 1,325 MW of electricity and thermal storage by Such energy storage is one important strategy that can help to manage and balance the inherent variability of renewable electricity generation. California has a very high renewable portfolio standard (RPS), currently set at 33 percent, with active policy discussions ongoing about moving to 50 percent As higher and higher penetrations of renewables are added to the grid, the California Independent System Operator (CAISO) has predicted the potential for disruptions to grid operations as soon as While at this point it is not clear what level of disruption can be expected. Certainly, discussions around what s known as the duck curve (See Chart below) have shown that CAISO is deeply concerned about rapid ramp rates that could come with significantly higher solar penetration and how it can be mitigated. 4

91 The Duck Curve s Significance The belly of the duck sinks deeply during the middle of the day and into early afternoon, when solar output is at its peak, minimizing demand for the grid s central thermal power plants. That creates a potential over-generation problem. Why? Because our grid is built upon the idea of baseload generation, a baseline level of electricity generation that s always there, supplied by power plants that are built to more or less run 24/7 at full tilt. Utilities then add other, more flexible generation sources on top of that baseload as demand dictates. But if solar s output reduces net utility load too much as it does in the duck chart s predictions for years 2015 and beyond then net load could fall below baseload generation, resulting in a potential excess of electricity production during certain hours that must be addressed. Meanwhile, solar s output falls off in mid-afternoon, just as California s electricity demand peaks, with high demand lasting into evening. It s a double whammy effect. The result is a rapid spike in utility electricity demand (the steep slope of the duck s neck). Power plants, especially those fueled by coal and nuclear, weren t built to ramp up or down that quickly. They re not the equivalent of an easy-to-operate dimmer switch for the lights in your kitchen. They re more of an on or off type of operation, and it s difficult, expensive, and time consuming to adjust their level of output. Not exactly compatible with what the duck chart says is coming. Yet, a recent study released by regional transmission organization PJM and General Electric suggests that impacts can be mitigated. The multi-year study found that if PJM added 100,000 MW of wind and solar across its service area (13 states and Washington, D.C.) only around 4,000 MW of additional non-dispatchable generation resources would be needed for regulation to manage the variability of the renewables. However, CAISO doesn t have the same market structure nor power flow dynamics as PJM, and installing storage at the transmission level will at least somewhat improve utilities and CAISO s ability to manage changing system conditions brought on by renewables variability and reduce the need for reserve services. 5