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Energy Policy Introduction By 2020, clean energy will be one of the world’s biggest industries, totaling as much as $2.3 trillion. Other countries made huge investments to seize the economic opportunity provided by the evolving transition from fossil- based energy to renewable, low-waste electricity and fuel. These investments were a result of intentional public policies, which in turn provided a strong stimulus for new public and private investment in new clean-energy markets, infrastructure, and human resources. Potential still exists, for bipartisan cooperation between President Obama and the new Congress on reducing oil use, investing in clean energy technologies and jobs, and preventing future oil disaster.

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Page 1: Energy Policy: Global, National, Local

Energy Policy

Introduction By 2020, clean energy will be one of the world’s biggest industries,

totaling as much as $2.3 trillion.

Other countries made huge investments to seize the economic opportunity provided by the evolving transition from fossil-based energy to renewable, low-waste electricity and fuel.

These investments were a result of intentional public policies, which in turn provided a strong stimulus for new public and private investment in new clean-energy markets, infrastructure, and human resources.

Potential still exists, for bipartisan cooperation betweenPresident Obama and the new Congress on reducing oil use, investing in clean energy technologies and jobs, and preventing future oil disaster.

Page 2: Energy Policy: Global, National, Local

Energy Policy

Topics

Potential Bipartisan National Energy Policy

North Carolina Energy Policy - NC’s Reps (Session Law 2007-397)

North Carolina Sustainable Energy Association (NCSEA), 2010 Renewable Energy & Energy Efficiency Industry Census

Page 3: Energy Policy: Global, National, Local

Energy Policy

Objectives

Summarize the key issues in the Bipartisan National Energy Policy, NC’s REPS (Session Law 2007-397) and NCSEA 2010 Renewable Energy & Efficiency Census

Analyze the above policies’ and the census findings for their implications for and potential impact on renewable energy investments, technologies, and jobs in North Carolina.

Identify gaps, disconnects, connections, synergies in the policies and research presented

Generate your own policy and business solutions and ideas

Generate additional topics for review and discussion.

Page 4: Energy Policy: Global, National, Local

Energy Policy

House and Senate Bills - PendingU.S. House of Representatives - ACES

U.S. Senate - ACELA Senators John Kerry and Joe Lieberman - APA

The American Clean Energy and Security Act of 2009 (H.R. 2454 or ACES) passed the House on June 26, 2009 by a vote of 219 to 212. ACES combines standards and incentives to promote clean energy and energy efficiency technologies with a firm cap on greenhouse gas emissions.

The American Council for an Energy Efficient Economy (ACEEE) estimates that, in 2030 alone, the energy efficiency provisions in ACES couldreduce energy consumption by about 8.8 quadrillion BTU, avoid about 539 million metric tons (MMT) of carbon emissions, and save about $62 billion in net consumer savings, or $486 per household.

The American Clean Energy Leadership Act (S.1462 or ACELA) passed the Senate Energy and Natural Resources Committee on June 17, 2009. ACELA is an energy bill that contains many energy policies similar to ACES, but does not include a greenhouse gas pollution reduction program.

ACEEE estimates that, in 2030, the energy efficiency provisions in ACELA could reduce energy consumption by about 4.3 quads, avoid about 65 MMT of carbon emissions, and save about $36 billion in net consumer savings, or about $240 per household.

The American Power Act (APA) was introduced by Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) to the Senate on May 12, 2010. The long-awaited climate bill would establish a greenhouse gas pollution reduction program and encourage development of nuclear power, offshore oil and gas drilling, coal, clean transportation, and, to a lesser extent, energy efficiency and renewable energy.

Page 5: Energy Policy: Global, National, Local

Bipartisan National Energy Policy Reduce oil consumption Invest in renewable and efficient energy

solutions that create jobs Building Efficiency Incentives Investments in Renewable Electricity & Jobs Green Bank Transmission Clean Energy Exports Renewable Electricity Standard & State Clean

Energy Programs

New protections to prevent future BP oil disasters

Page 6: Energy Policy: Global, National, Local

Bipartisan National Energy PolicyREDUCE OIL CONSUMPTION & IMPROVE ENERGY SECURITY

Natural gas trucks: create more than 100,000 direct manufacturing and labor jobs & more than 450,000 indirect jobs…National Gas Industry estimate.

Electric cars: speed the transition to electric vehicles by creating a $400 million pilot program to create electric car recharging infrastructure for plug-in hybrid and all electric vehicles, such as the Chevrolet Volt and Nissan Leaf

Page 7: Energy Policy: Global, National, Local

Bipartisan National Energy PolicyBuilding Efficiency Incentives & Jobs

Incentives for homeowners and building owners to invest inenergy savings measures to lower electricity bills & create jobs inenergy efficiency technology, sales, and installation. Two proposedprograms include:

HOME STAR (Cash for Caulkers): 168,000 jobs over two years primarily in construction and manufacturing. The program would help 3 million families save $9 billion on their electricity bills over a decade, and it would reduce global warming pollution equivalent to taking 615,000 cars off the road

BUILDING STAR: cover 30 percent of the cost of installing energy efficiency technologies in commercial and apartment buildings, Reduce energy bills by over $3 billion annually. Create 150,000 to 200,000 jobs over the next two years

Page 8: Energy Policy: Global, National, Local

Bipartisan National Energy PolicyINVESTMENTS IN RENEWABLE ELECTRICITY & JOBS

Spain and Germany & China, have invested significant resources and adopted policies that would boost their domestic clean energy industries.

Markets: Expanding markets and driving demand for new clean and efficient energy products and services

Financing: Investing across the full value chain of clean-energy solutions: research, development, commercialization, production, and deployment—needed to meet demand

Infrastructure: Revitalizing and reinvesting in the physical and human capital infrastructure upon which the clean-energy transformation— like all major industrial transformations in the past—will ultimately be built

New policies to continue to grow the clean energy sector are needed as The American Recovery and Reinvestment Act renewable energy programs funds are spent.

Page 9: Energy Policy: Global, National, Local

Bipartisan National Energy PolicyGREEN BANK

An independent Clean Energy Deployment Administration (CEDA) or “green bank” would provide loans, guarantees, and credit enhancements to help companies successfully traverse the so-called “valley of death” to take new technologies from successful R&D to deployment.

CEDA has bipartisan support in the House and Senate. It was included in ACES and ACELA in slightly different forms

CEDA funds would provide this capital and leverage $10 in private capital for every $1 of public investment.

Page 10: Energy Policy: Global, National, Local

Bipartisan National Energy PolicyTRANSMISSION

Electricity congestion currently costs the eastern United States $16.5 billion each year.

Transmission lines must be enhanced and expanded to transfer clean electricity from wind turbines in North Dakota to factories in Illinois.

Building transmission lines can also create thousands of jobs. Example - building the 20,000 miles of new transmission we need could create 280,000 new jobs.

Page 11: Energy Policy: Global, National, Local

Bipartisan National Energy Policy

CLEAN ENERGY EXPORTS

America’s global competitiveness will partly depend on development and deployment of renewable and efficient energy technologies that we can export to other countries.

Clean Energy Exports would provide $85.6 billion over five years for research, development, and deployment of new technologies across a range of industries, including clean energy.

Page 12: Energy Policy: Global, National, Local

Bipartisan National Energy PolicyRENEWABLE ELECTRICITY STANDARD & STATE CLEAN ENERGY PROGRAMS

RES - Renewable electricity or portfolio standard. RES requires electric utilities to generate a specific amount of power from renewable sources such as wind, solar, geothermal, biomass and other emerging Technologies.

A national RES would increase demand for these clean electricity sources and help speed their commercialization at scale

Feed-in-Tariffs - Congress should allow states to set long-term rates at which renewable electricity generators can sell their power to utilities. Creates the transparency, longevity, and certainty in policy that makes financing renewable energy possible.

Page 13: Energy Policy: Global, National, Local

North Carolina Energy Policy NC’s REPS (Session Law 2007-397)

North Carolina became the 25th state in the nation – and the first in the Southeast – to enact a mandatory renewable energy and energyefficiency portfolio standard or REPS.

The REPS requires North Carolina’s three investor-owned utilities – Duke Energy Carolinas, Progress Energy Carolinas and Dominion North Carolina Power – to generate at least 12.5% of their electricity from renewable energy and energy saved through efficiency by 2021. Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement.

A utility may meet the REPS requirements by generating its own renewable energy, by purchasing electric power from another renewable energy facility, or by purchasing renewable energy certificates (RECs) generated from renewable energy resources

An investor-owned utility may also meet the REPS requirement by reducing energy consumption through energy efficiency measures. In the early years of the standard – years 2012 through 2018 – electric utilities have the option to meet up to 25% percent of the REPS requirement through measurable energy efficiency programs

.

Page 14: Energy Policy: Global, National, Local

North Carolina Energy Policy NC’s REPS (Session Law 2007-397)

Renewable Energy

Solar electric (known as “photovoltaic” or “PV”). Solar thermal hot water,Wind, Geothermal, Tidal energy and biomass resources

NC has a technical potential for 13,000 megawatts (MW) of new renewable energy generation with a practical potential of at least 3,400 MW (this number does not include solar power, which would more than double this amount).

Energy Efficiency Insulation, sealing leaks, High R value Building Envelope, Energy

Efficient Appliances, Programmable Thermostats, siting, shading

NC’s electricity needs could be reduced by 14% by 2017 using energy efficiency measures.

Page 15: Energy Policy: Global, National, Local

North Carolina Energy Policy NC’s REPS (Session Law 2007-397)

Connecting to the Electricity Grid

The REPS law required the North Carolina Utilities Commission (NCUC) to establish an interconnection standard for renewable Energy facilities up to 10 MW in size.

Interconnection standards and net metering are important to theDevelopment of renewable energy resources.

An interconnection standard is the technical rules for customers to connect their renewable energy system to the electric grid.

Net metering is a billing arrangement that allows the owner of a renewable energy system to offset their electricity consumption and sell or contribute the excess electricity to the electric grid for the utility to sell to other customers.

Page 16: Energy Policy: Global, National, Local

North Carolina Energy Policy NC’s REPS (Session Law 2007-397)

NC GreenPower vs. NC’s REPS NC GreenPower is a non-profit organization that

accepts voluntary contributions through utility bills to develop renewable energy resources in the state.

Carolina’s REPS is a mandatory requirement and NC GreenPower is a voluntary program.

Citizens interested in supporting renewable energy above and beyond the REPS law can contribute to the voluntary NC GreenPower program or directly purchase RECs when they become available.

Page 17: Energy Policy: Global, National, Local

North Carolina Energy Policy NC’s REPS (Session Law 2007-397)

NC’s REPS: Renewable Energy Resources, Investments & Jobs

The retention and creation of thousands of green jobs across NorthCarolina is one of the largest benefits of the REPS. As a result, North Carolina:

Is a leader in solar energy and currently ranks 7th among US states in the amount of required solar energy generation

Will have roughly 300 megawatts of new solar power installations by 2018

Will realize more than $2.5 billion in new renewable energy investments by 2018 and $350 million in energy efficiency investments by 2021

Employ more than 4,000 North Carolinians at good wages due to sufficient in-

state renewable resources and unutilized energy efficiency potential

Page 18: Energy Policy: Global, National, Local

North Carolina Energy Policy NC’s REPS (Session Law 2007-397)

NC’s Future Energy Needs: Costs & Policy

Policymakers must go beyond Session Law 2007- 397 to evaluate NC’s futureEnergy portfolio and set policy that will result in the lowest cost and reliable mix of energy resources for North Carolina and that also deliver the greatest job creation investment, economic development and environmental benefitspossible.

What you Can do

The public can participate in the rulemaking process by writing letters to theNC Utilities Commission at 4325 Mail Service Center, Raleigh, NC 27699-4325.

The three most important issues to stress in personal correspondence to the NCUC are: Transparency Energy Efficiency Ensuring Compliance

Page 19: Energy Policy: Global, National, Local

North Carolina Sustainable Energy Association (NCSEA)2010 Renewable Energy & Energy Efficiency Industry

Census

The North Carolina Sustainable EnergyAssociation’s (NCSEA) 2010Renewable Energy & Energy Efficiency Industry Census surveyed firmsoperating in the first two categories – renewable energy and energy efficiency industries.

The purpose of the census is to document ongoing Employment trends and industry dynamics within these markets.

What is a Green Business, Green Job?

Energy from renewable sources

Energy efficiency

Pollution reduction and removal

Greenhouse gas reductionRecycling and reuse

Natural resource conservation and environmental compliance

Education and training, and publicawareness

Page 20: Energy Policy: Global, National, Local

North Carolina Sustainable Energy Association (NCSEA)2010 Renewable Energy & Energy Efficiency Industry

Census

According to the 2010 Renewable Energy & Energy Efficiency Industry Census, released by NCSEA: The renewable energy and energy efficiency industries in

North Carolina consist of over 1,100 firms

Renewable energy and energy efficiency firms conservatively generate more than $3.5 billion in annual revenue from North Carolina business activities

The majority of firms and employment occur at firms focused on energy efficiency and building sciences.

Renewable energy and energy efficiency firms maintain a presence in all 100 NC counties

Page 21: Energy Policy: Global, National, Local

North Carolina Sustainable Energy Association (NCSEA)2010 Renewable Energy & Energy Efficiency Industry Census

EmploymentPrimary Business

TypeEstimated

JobsPrimary

Business FocusEstimated

JobsResearch and development

2,963 Solar 1351

Manufacturing 3,959 Wind 1195High performance building or retrofitting

1,622 Biomass 644

Renewable energy systems retailer or distributor

269 Hydroelectric 273

Renewable energy systems installer, de signer, or developer

1,395 Geothermal 215

Power generation owner or operator

1,420 Smart Grid 927

Education, services and consulting

866 Energy Efficiency or Building Sciences

7362

Energy Storage including fuel cells

563

Page 22: Energy Policy: Global, National, Local

North Carolina Sustainable Energy Association (NCSEA)2010 Renewable Energy & Energy Efficiency Industry

Census

Highlights of 2010 Industry Census

The renewable energy and energy efficiency industries currently support 12,500 full-time equivalent employees (FTEs) in North Carolina, a 22% increase from 2009

Manufacturing accounts for nearly one-third of the renewable energy and energy efficiency jobs (est. 3959) in North Carolina and remains the largest source of employment for the third consecutive year

Within manufacturing, the largest number of firms focus on energy efficiency or building sciences followed by solar energy.

Firms conducting R&D account for the second largest portion of employment with nearly 2963 of all estimated jobs

Within R&D, energy efficiency or building sciences and solar energy were the two primary focus areas of with smart grid and biomass tied for third

Page 23: Energy Policy: Global, National, Local

Going Forward

North Carolina’s renewable energy and energy efficiency industries have potential for strong employment growth and regional leadership

Long-term success will depend on an integrated approach to public policy and market development, greater certainty in policy and continued advancements in workforce and consumereducation

North Carolina Sustainable Energy Association (NCSEA)2010 Renewable Energy & Energy Efficiency Industry Census

Page 24: Energy Policy: Global, National, Local

2012 Energy Efficiency Building Code which would improve efficiency standardsBy 30%. Mark your calendar: Nov. 17 & Dec. 13-14 meetings Building CodeCouncil,elected officials and other interested groups. Beginning at 9am at the Dept.Of Insurance (322 Chapanoke Rd. downstairs classroom, Room 100) in Raleigh

NC Capital Access Program: Gov. Bev Perdue recently announced a new small business lending Initiatives. All businesses located in NC with 500 or feweremployees are eligible for loans under The program. The maximum loan amount is$5 million. Bev. Perdue highlighted our state's successful green energy businesses as a perfect candidate for these funds.

Progress Energy Carolinas will begin offering incentives to North Carolina residential customers who install and own solar photovoltaic (PV) systems at theirhomes in January 2011. The SunSenseSM Solar PV program will provide upfrontrebates of $1,000 per kilowatt of capacity and monthly bill credits of $4.50 perkilowatt for PV systems installed after the launch date (forsystems sized from 2 to10 kilowatts).

Federal and North Carolina renewable energy tax credits also exist to make your renewable energy system purchase more affordable. Find information on available federal andstate tax credits on NCSEA’s website atwww.energync.org/resources/taxcredits

Opportunities, FYIs

Page 25: Energy Policy: Global, National, Local

Links and ResourcesNorth CarolinaNorth Carolina Sustainable Energy Association (NCSEA) www.ncsea.org

2010 Renewable Energy & Energy Efficiency Industry Censushttp://energync.org/assets/files/2010%20Industry%20Census.pdf

Citizens Guide to the NC REPS http://energync.org/resources/publications/ncsea-publications/

North Carolina Utilities Commission: www.ncuc.net REPS Rulemaking: Docket No. E-100, Sub113Interconnection Standards: Docket No. E-100, Sub 101Net Metering: Docket No. E-100, Sub 83RECs Tracking System: Docket No. E-100, Sub 121

NC State Solar Center, Database of State Incentives for Renewable and Efficiency (DSIRE):www.dsireusa.org

NC State Solar Center, DSIRE Solar http://www.dsireusa.org/solar/index.cfm?ee=1&RE=1&spf=1&st=1

NC Green Power: www.ncgreenpower.org

Duke Energy Interconnection Process, Checklist and Forms:http://www.duke-energy.com/customerOwned generation/nc-interconnection-information.asp

Progress Energy Interconnection Process and Forms:http://www.progress-energy.com/environment/ras/interconnectionprocedures.asp

Page 26: Energy Policy: Global, National, Local

Links and Resources

NationalCenter for American Progress http://www.americanprogress.org/lCooperation or Confrontationhttp://www.americanprogress.org/issues/2010/11/cooperation_or_confrontation.html

Out of the Runninghttp://www.americanprogress.org/issues/2010/03/out_of_running.html

Investing in Clean Energyhttp://www.americanprogress.org/issues/2010/11/investing_clean_energy.html

Alliance to Save Energy, http://ase.org/resources/comparison-aces-acela-and-apa

California’s Global Warming Law AB 32 http://gov.ca.gov/index.php?/fact-sheet/4445/http://www.ucsusa.org/assets/documents/global_warming/economic-impacts-of-ab-32.pdf

The American Council for an Energy Efficiency Economy - The American Power Act andEnhanced Energy Efficiency Provisions: Impacts on the U.S. Economyhttp://www.aceee.org/research-report/e103

The Skeptical environmentalist http and Cool it - http://www.amazon.com/BjørnLomborg/e/B001H6WWF2/ref=ntt_athr_dp_pel_1