Pennsylvania s Energy Landscape

Transcription

1 Pennsylvania s Energy Landscape PA Strategic Energy Management Showcase April 7, 2015 Hayley Book, Deputy Policy Director

2 Keystone State Energy Portfolio 2 nd largest energy field in the world 4 th largest energy producer in U.S. 2 nd largest electric generator in U.S. 2 nd largest nuclear generator in U.S. 4 th largest coal producer in U.S. 2 nd in natural gas production in U.S. 9 th in total solar capacity installed 15 th in total wind capacity installed

3 Pennsylvania Natural Gas Prices

4 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Reduced Energy Costs Historical & Future Prices for PJM Electricity PJM $/MWh Price

5 Proposed Shell Petrochemical Facility In March 2012, Shell Chemicals selected a site in Beaver County to evaluate for a proposed multibillion dollar petrochemical facility including an Ethane Cracker Potential benefits: $4 billion + capital investment 10,000 peak construction jobs (24 months) 400 direct jobs 10,000 new jobs in chemical and supply chain industries Source: Shalenavigator.com Plastics & petrochemical feedstock supply for northeast U.S. Continued demand for regional Marcellus/Utica ethane (80,000 90,000 b/d) No final investment decision announced yet

6 Resource Manufacturing Tax Credit Commences January 2017 (Act 85 of 2012) Up to 5 /gallon ($2.10/barrel) of ethane purchased and used in PA to produce ethylene Eligibility criteria: $1 billion capital investment 2,500 full-time jobs created Can meet up to 20% of a taxpayer s liability Tax credits can be sold or assigned

7 A Changing Energy Landscape PA Electricity Generation by Fuel Type

8 Energy Consumption

9 EPA s Clean Power Plan Rule Establishes CO2 emissions performance standards for existing power plants under Clean Air Act section 111(d) National requirement of a 30% reduction below 2005 levels by 2030 EPA has proposed the following goals for PA: Interim goal - 1,178 lb/mwh in 2020 Final goal - of 1,052 lb/mwh in 2030

10 EPA s Clean Power Plan Rule EPA is proposing to allow states to use 4 building blocks to achieve reductions. Heat rate improvements of 6% in coal-fired electricity generation Replacing coal-fired generation with natural gas combined cycle facilities Replacing coal-fired generation with nuclear and renewable energy Demand-side energy efficiency improvements

11 Regulatory Landscape RACT Requirements for Major Sources Final regulation- Environmental Quality Board (EQB) 2015 Automotive & Light Duty Trucks Proposed regulation to EQB April 21 st 2015 Fiberglass Boat Manufacturing Materials Final Regulation to EQB Spring 2015 Miscellaneous Metal Parts Proposed regulation to be published 2015

12 Advancing Clean Energy Governor Wolf s Proposed Budget Includes historic investments in energy and energy efficiency. $50M Solar- PA Sunshine Program $30M Pennsylvania Energy Development Authority $50M Energy Efficiency $30M Combined Heat & Power (CHP Funding) $20M EE and Clean Energy for Agriculture $20M Wind $25M Last Mile Funding providing access to natural gas to manufacturing sector

13 Grant Opportunities Pennsylvania Energy Development Authority Grants for clean, advanced energy projects Anticipate 2015 grant round Alternative Fuels Incentive Grant (AFIG) Vehicle purchase/retrofits and innovative technology Anticipate 2015 grant round Natural Gas Energy Development Program Incremental purchase/retrofit for heavy duty vehicles All funds currently awarded

14 Grant Opportunities (cont.) Water Restoration & Protection Grants (DCED) OPEN Currently Small Business Advantage Grant Rolling application period $1 million, 50% match up to $9,500 Environmental Education Grants Opens October 2015 $3,000 max grant

15 Grant Opportunities (cont.) Green Energy Loan Fund (GELF)- OPEN Energy efficiency building retrofit projects Small Business Pollution Prevention - OPEN Project to reduce waste, pollution or energy usage $100,00 max- fund up to 75% of total eligible project costs Small businesses w/ 100 or fewer employees qualify Alternative and Clean Energy Program (ACE) Grants/loans alternative and clean energy

16 Training Opportunities Building Operator Certification (BOC) Nationally recognized for energy management. Building Re-tuning Training (BRT) Teaches no-to-low cost energy saving measures IECC and ASHRAE ISO Superior Energy Performance Energy Efficiency Assessments

17 Permit Decision Guarantee Increased Predictability Currently 92% of permits are meeting the guarantee Reducing the Permit Backlog Backlog of 9,982 permits has been reduced by 99% Creation of Electronic Tools Permit Application Consultation Tool efacts on the Web

18 Hayley L. Book (717)