California Air Resources Board

Statewide LG EE Best Practices: Weekly Update

Here are your wEEkly Updates:
1. The Energy Efficiency Coordinating Committee has confirmed that March 16th, 2016 is the date for public sector business plan review. Meeting location is in Northern California, TBD, and can also be attended by WebEx. The meeting will be an unprecedented opportunity for interested parties to review the plans that Investor Owned Utilities (IOUs) and other Program Administrators are developing for their public sector energy efficiency programming. For more background information, search “coordinating committee” on the http://eecoordinator.info website. If you would like to receive email updates on this directly, contact Lara Ettenson at lettenson@nrdc.org.
2. This year’s California Adaptation Forum will be held in Long Beach, CA Sept. 7th-8th, and the Call for Session Proposals is now open! The CAF is a place to connect with 1,000+ local government, business and community leaders and explore the diverse adaptation needs and solutions found across California. To submit a proposal or for more information, visit www.californiaadaptationforum.org.
3. Save the Date! A BayREN Forum, “Bridging the Gap: From Efficient Policies to Successful, On-the-Ground Implementation” will take place in Oakland, and by WebEx, on March 29th. For more information, click here.
4. Office hours for support in your use of the ClearPath suite of online tools are available twice monthly: this month’s will be March 10th and March 24th at 11am PST. New to ClearPath? Learn more here.
5. The Air Resources Board will be holding a public workshop on April 4th on the FY 2016-17 Funding Plan for Low Carbon Transportation and Fuels Investments and the Air Quality Improvement Program (AQIP). For more information, click here. The workshop will also be web-broadcast at http://www.calepa.ca.gov/broadcast/.
6. For those of you watching the cutting edge of new technologies, an article in Greentech Media covers the U.S. Department of Energy’s research program ARPA-E,’s public investment and the private investment, in technologies on the ARPA-E list. A direct list of the technologies reveals investments to integrate renewables in demand management, ferment methane into natural gas, develop miniature building heat pumps, and look at new energy storage solutions – including iron flow, all-electron, lithium sulfur, and alkaline batteries, high-power zinc-air and compressed air storage.
7. More news on innovations: of the nine teams vying for the U.S. Department of Energy’s $2.25 million Wave Energy Prize, three are from California! Follow the link to learn more about the innovative work in Sacramento, Berkeley, and Redwood City to capture energy from waves.
8. The CEC’s Blueprint Newsletter for March and April is out! The Newsletter covers everything from demand responsive controls and commissioning to small duct high-velocity HVAC systems, to upcoming free trainings. This is a great resource for building department leads and energy efficiency government leads, as well as contractors and other building professionals.  Have a question? Contact the CEC’s Energy Standards Hotline.
9. Using data for building retrofits: an article from Energy Manager covers the value of data analytics in targeting the most cost-effective and beneficial energy-saving improvements.
10. Employee engagement and workplace strategies for EE success: an article in Environmental Leader interviews sustainability leadership at General Motors, and uncovers some great tips for generating support for sustainability initiatives in the workplace – support that has allowed GM to make 130 of their sites waste-free, and generate $1 billion from recycling. I have seen all of the major points made work for energy efficiency programming – definitely worth a read for those working on generating support throughout their government, or working with business or other community programs.
11. Continuing with stakeholder engagement: a reminder that a webinar covering best practices in community engagement via social media for environmental and energy program outreach is on 3/9. More information here.
12. Job announcement: The City of Pleasanton is looking for a Permit Center Manager! Visit the City’s jobs webpage and search “permit” for more information.
As always, you can keep track of relevant events by connecting to the EE Events Calendar, and find more resources on the EECoordinator website. 

That’s all for today!

Statewide LG EE Best Practices: Weekly Update

Here are your wEEkly updates:
  1. ARB Request for Participation in Public Work Groups
    ARB is developing the Fiscal Year 2016-17 Funding Plan for the Low Carbon Transportation Investments and the Air Quality Investment Program. 18 public work groups will be used to discuss topics such as funding allocations, project and technology types, emission reduction targets, and overall goals for the category. If you would
  2. CEC Request for Information Due February 10th
    The purpose of this Request for Information is to determine areas of readiness and planning activities for potential funding. Responses received, as well as staff research and public comments from the Alternative and Renewable Fuel and Vehicle Technology Program Investment Plan Advisory Committee workshops, will guide the development of the next solicitation that will utilize the Regional Alternative Fuel Readiness and Planning funding allocation.
  3. New Podcast: Infinite Earth Radio
    Skeo, in association with LGC, launched a new weekly podcast committed to spreading ideas that lift up and revitalize marginalized neighborhoods and build great 21st century communities. Each week, Infinite Earth Radio features interviews with visionary civic leaders who are transforming the future so that you can hear about the latest sustainability initiatives and tools to bring these ideas to your community.
  4. FHA Reduces Multifamily Housing Insurance Rates to Support Energy Efficiency
    The Federal Housing Administration announced a new plan to reduce multifamily insurance rates in order to encourage capital financing of affordable and energy-efficient apartments. The rate reduction will take effect on April 1, 2016, and will directly impact FHA's Multifamily Housing Programs and properties housing low- and moderate-income families and/or developments installing energy-efficient systems or buildings within federal energy guidelines.
  5. Maintaining EV Charging Stations Uses Relatively Little Energy
    Today, there is roughly one public charger for every 10 EVs. In order to accelerate EV adoption, we need to reduce "range anxiety" by installing more charging stations. The good news is that the cost of EV charging has been found to be so nominal that it's insignificant when looking at commercial buildings' peak grid times.
  6. New SEEC Website
    Today, a new and improved website will be launched for the Statewide Energy Efficiency Collaborative! The new site will continue to be your portal to the myriad of resources produced or collected by SEEC partners with a streamlined interface to keep you better informed of relevant news, events, and new resources.
  7. Calendar of Energy-Related Events
    Please forward events to statewideenergycoordinator@lgc.org.

And that is all for this week! 

Emission Benchmarks for Industrial Processes



California Air Resources Board (CARB) has been working hard to achieve California’s goal of reducing emissions of greenhouse gases to 1990 levels by 2020. This is equivalent to a 30% reduction in projected emissions--a lofty goal to accomplish within the next 7 years. Ultimately, the intent is to reduce emissions by 80% by 2050. If you factor in situations such as population growth and thus increased demand, it becomes a very ambitious goal. 

 Can we make it? 

 It has become apparent to me that when the cost of compliance becomes more cost effective than the cost of pollution, pollution be able to be controlled.

The University of California, Berkeley and Northwestern University are working with the CARB to establish output-based benchmarks for industrial processes. Such benchmarks will be used for the distribution of free emission allowances facilities covered by the California Cap-and-Trade Program, which is one of the newest policy instruments the state has adopted to reduce emissions cost-effectively. 

One of the main results of the project will be output-based benchmarks for selected sectors, for which benchmarks do not currently exist (mainly food processing, important for the Central Valley). Another major part of the project focuses on the benchmarking approach for refineries in the period after 2015. 

What is biomass electricity, and what waste to energy & biomass in California means for you and me.

What is biomass electricity? 
Biomass electricity is drawn from combusting or decomposing organic matter.

There are about 132 waste-to-energy plants in California, with a total capacity of almost 1,000 megawatts. These plants power our homes and businesses with electricity from waste matter that would have been released into the atmosphere, added fuel to forest fires, and burdened our landfills.


Why is biomass electricity important?
Using biomass to produce electricity reduces our reliance on fossil fuels, the nation's primary energy sources for electricity, and the largest contributors to air pollution and greenhouse gases. We will eventually run out of fossil fuels. Biomass electricity offers alternatives with many benefits:
  • Our supply of biomass is renewable, meaning it will not run out.
  • Electricity produced by biomass reduces the threat of global climate change.
  • Using biomass waste eliminates the need to place it in landfills.
  • Clearing biomass from wooded areas helps prevent forest fires.
  • Using by-product methane gases to produce electricity eliminates odor and reduces air pollution in surrounding areas.
Waste to Energy & Biomass in California...
Californians create nearly than 2,900 pounds of household garbage and industrial waste each and every second; a total of 85.2 million tons of waste in 2005 (according to the California Integrated Waste Management Board)! Of that, 43.2 million tons is recovered and recycled or used to make energy, but 42 million tons has to be disposed in landfills. Thanks to advances in technology, waste known as biomass, is put to valuable use producing electricity.

In 2007, 6,236 gigawatt hours of electricity in homes and businesses was produced from biomass: burning forestry, agricultural, and urban biomass; converting methane-rich landfill gas to energy (LFGTE); and processing wastewater and dairy biogas into useful energy. Biomass power plants produced 2.1 percent of the total electricity in California in 2007, or about one-fifth of all the renewable energy.

Bioenergy is renewable energy derived from biological sources, to be used for heat, electricity, or vehicle fuel. Biofuel derived from plant materials is among the most rapidly growing renewable energy technologies.


State Policy on Biomass and Biofuels
The Governor directed several state agencies - including the Energy Commission - to take major steps toward the widespread use of biomass to produce clean, renewable transportation fuels or electricity. This directive helped to reinvigorate the Bioenergy Interagency Working Group through the help of the California Biomass Collaborative.

The Bioenergy Interagency Working Group -- lead by Commissioner Jim Boyd of the California Energy Commission, and includes the Air Resources Board (ARB), California Environmental Protection Agency (CalEPA), California Public Utilities Commission, California Resources Agency, Department of Food and Agriculture, Department of Forestry and Fire Protection, Department of General Services, Integrated Waste Management Board, and the State Water Resources Control Board -- made a recommendation to the Governor in March 2006 on biomass and biofuels.

That report, Recommendations for a Bioenergy Action Plan for California , can be downloaded from their website. (PDF file, 56 pages, 4.5 MB).

The Governor issued an Executive Order S-06-06 (PDF file), signed on April 25, 2006, dealing with biomass and biofuels. Two important points stated that:
  • By 2010, 20 percent of its biofuels need to be produced within California; increasing to 40 percent by 2020 and 75 percent by 2050.
  • By 2010, 20 percent of the renewable electricity should be generated from biomass resources within the state; maintaining this level through 2020.
The Governor then in July 2006, released California's Bioenergy Action Plan (PDf file, 11 pages, 2.1 MB). The plan's objectives included:
  • Establish California as a market leader in technology innovation, sustainable biomass development, and market development for bio-based products.
  • Coordinate research, development, demonstration, and commercialization efforts across federal and state agencies. ----Develop biomass roadmap.
  • Align existing regulatory requirements to encourage production and use of California's biomass resources.
  • Facilitate market entry for new applications of bioenergy including electricity, biogas, and biofuels.
  • Maximize the contributions of bioenergy toward achieving the state's petroleum reduction, climate change, renewable energy, and environmental goals.( http://www.energy.ca.gov/biomass/ )
Photo Credit: http://www.flickr.com/photos/riducareflui/5142516275/

Mystery unveiled, California and how it trades its caps.

"Let the Hunger Compliance Games begin!"

What is California’s Cap and Trade and what makes California believe it can achieve something the nation could not?  For starters, you may be asking, what is all the hoopla about cap and trade? Well, the basics of cap and trade are simple; it uses the power of the marketplace to reduce pollution, in theory doing so at the lowest possible cost. In the Golden State system, government regulators set an annual limit (cap) on the GHG emissions produced by the state’s factories, power plants and oil refineries. The cap will decline about a percentage point for the first two years and three percent each year after that.

The basic premise of cap-and-trade is that government doesn't tell polluters how to clean up their act. Instead, it simply imposes a cap on emissions. Each company starts the year with a certain number of tons allowed—a so-called right to pollute. The company decides how to use its allowance; it might restrict output, or switch to a cleaner fuel, or buy a scrubber to cut emissions. If it doesn't use up its allowance, it might then sell what it no longer needs. Then again, it might have to buy extra allowances on the open market. Each year, the cap ratchets down, and the shrinking pool of allowances gets costlier. As in a game of musical chairs, polluters must scramble to match allowances to emissions.
Companies will buy and sell allowances to emit carbon dioxide and other heat-trapping gases (GHG). Now, each allowance represents one ton of Carbon Dioxide (CO2). The minimum price starts at $10 per allowance (ton of Co2) and will slowly increase over time. The number of allowances that a company must hold is determined based on the standard emission from their type of business or facility. Companies that cut their emissions quickly will have spare allowances they can sell to other businesses that are having a hard time making reductions. This is easy to see if we look at emissions through an industry specific looking glass, as it would be difficult to conceive of a cap and trade program working without allowances being industry specific.

In the beginning were the electric utilities. The utility companies will be getting all the allowances they need for free (for a while anyhow).  The utilities will be required to sell allowances at state-organized auctions that occur four times each year. The money the utilities make must be used to benefit their ratepayers, possibly through a credit on customers’ bills or maintenance on equipment and transmission lines that would offset rate hikes much like the one the CPUC just approved. Most manufacturers will receive 90 percent of their allowances for free in the first two years, dropping to 75 percent in 2015.

http://www.sfgate.com/green/article/Cap-and-trade-how-it-works-4027020.php#ixzz2GreCRT1s

The first auction happened last November and had 23,126,110 tons of 2013 vintage Co2 allowances up for sale on an electronic trading platform. Companies and traders who registered in advance submitted sealed bids specifying how many allowances they wanted to buy, and at what price. The bids were ranked from highest price to lowest until all the allowances have been allocated. The lowest price at which allowances were allocated became the price that all participants paid, regardless of their original bids. In November’s auction, the allowances sold for $10.09 with the reserve price set at $10 and the maximum price submitted was at $91.13 mean price was $15.60 and the Median price was $12.95. Where is Effie Trinket when you need her? Now, as far as the secondary market, companies and traders can continue trading outside the auctions, but each allowance has a serial number, and all transactions must be recorded in a central tracking system.

There was also an advance auction of 2015 vintage allowances that sold 5,576,000 of 39,450,000 available allowances for sale at the price of $10.00 with a maximum bid of $17.25 and the mean of $11.07 and Median price being $10.59, the maximum price submitted was $17.25 and the minimum was $10.00 and therefore all 2015 vintage allowances were sold at $10.00. The drawback of buying vintage 2015 allowances is that your funding source is tied up two years in advance; the benefit is that you pay a much cheaper price for allowances purchased today that will be used in 2015, when the number of allowances will be dropping to 75 percent. In layman’s terms, if you know your company will need allowances in 2015 and it has the capital to purchase allowances today, the price will be rock bottom today ( hence the $10 price tag) vs. purchasing them in 2015 when every industry will need them and the price is much higher. How about this for a business venture, buy up all the 2015 allowances you can and sell them when 2015 comes around for three to four times the price they were originally purchased for.  Sounds like a great way to make it rich to me.


See the air resource board for a complete list of qualified bidders and a more detailed account of the November 2012 auction. Below is a sampling of what you can expect to find:

Offsets
Companies can also buy offsets, credits generated by forestry projects and other endeavors that either remove greenhouse gases from the atmosphere or reduce emissions. But the offsets must be generated in the United States and can account for no more than 8 percent of all the allowances that a company needs. To me, offsets should be limited to the state of California (for this specific situation) as other states and federal entities are not participating and thus, should not be allowed to participate in an offset program?

Market manipulation?
The Air Resources Board has set limits on the percentage of available allowances that any individual company or trader can hold, to prevent anyone from cornering the market. Consultants will also monitor the auctions, looking for unusual trading behavior. We can all see this one happening or at least someone trying to make this happen.

Where does the money go?
Amazingly enough, this hasn't been decided; by law, money the state raises by selling allowances must be used to help reduce greenhouse gas emissions and cannot simply be dumped into California's general fund as if it were tax revenue. But the Legislature has not yet hammered out the details.

Important information
Hirschman-Herfindahl index (HHI):  The HHI is a measure of the concentration of allowances purchased by winning bidders relative to the total sale of current vintage allowances in the auction.  The percentage of allowances purchased by each winning bidder is squared and then summed across all winning bidders.  The HHI can range up to 10,000, representing 100% of the current vintage allowances purchased by a single bidder (i.e., 100x100=10,000).


Read more: 
http://www.smithsonianmag.com/science-nature/Presence-of-Mind-Blue-Sky-Thinking.html#ixzz2Gwvq7VDO
Photo Credit: Jacobsen, Nina and Kilik, Jon (Producers) & Ross, Gary (Director). 2012. The Hunger Games [Motion picture]/ United Sates. Lionsgate, Color Force. 

 Photo Credit:  http://www.flickr.com/photos/cecmtl/5594631871/