Development, Components and Status of the NC State

Energy Plan

Larry ShirleyDirector

NC State Energy Office

Making the Connection Between Energy and the Environment

Film courtesy of Worldlink Media

News and Observer File Photo

2003 Ozone Alert Days

County Orange Red Purple

Forsyth 38 2 0

Haywood 40 0 0

Mecklenburg

58 8 1

Rowan 65 8 1

Wake 36 8 0

Source: EPA

State Energy Office

Created During Arab Oil Embargo: 1973

Department of Administration Ideal Agency: State Construction,

Motor Fleet, Property, P&C Divisions Lead Agency for Energy Programs

and Services in North Carolina

State Energy Office

Energy Efficiency• Universities, State Agencies• Local Governments, Schools & NPOs• Industrial and Residential

Energy Emergencies Alternative Fuels Renewable Energy

• Solar, Wind, Hydro and Biomass

SO2 47 tons

SO2 636 tons

CO2 69 million

tons

CO2 57 million

tons

NOx 312 tons

NOx 319 tons

Electrical Losses 734 TBtu

Electricity 409 TBtu

Wood, Waste, Biomass 96 TBtu

SolarThermal1 TBtu

Hydro33 TBtu

10TBtu 23

TBtu

ELECTRICPOWER

GENERATION

Nuclear 408 TBtu

Cost of Energy Imports $7 Billion

Petroleum975 TBtu

Natural Gas

236 TBtu

Coal706 TBtu

696 TBtu

969 TBtu226

TBtu

10 TBtu

408 TBtu

6 TBtu

10 TBtu

Energy

Flows

In

North

Carolina

Energy efficiency’s contribution to our national energy supply

0

20

40

60

80

100

120

140

160

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Efficiency’s Contribution

Actual Energy Use

Source: Alliance to Save Energy, 2002.

National Energy Supply (Quadrillion BTUs)

Efficiency’s contribution is 41 quadrillion BTUs, spread across all the sectors. This is equivalent to 836 power plants, each operating at 80% capacity, 35% efficiency and having 700 MW of capacity.

Implementing the NC Energy PlanForecasting Energy and Environmental

Benefits

-

500

1,000

1,500

2,000

2,500

3,000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

Base Case Energy Use

Transportation Savings

Industrial Savings

Commercial Savings

Residential Savings

Energy Efficient Scenario

•Reduces energy use 13%

• Reduces CO2 72 million lbs/year,

• Reduces SOx 346,000 lbs/year

• Reduces NOx 115,000 lbs/year

NC Energy Policy Council

Developers of New State Energy Plan 18-member Council advises Governor

& General Assembly on Energy Policy Legislators (4), NCUC, Cabinet

Agencies (4), Energy Providers and Sector Reps

Staffed by State Energy Office

State Energy Plan

First Energy Plan since 1992 Strong Focus on Energy Efficiency,

Renewable Energy and Alt. Fuels 18 month process (hearings,

experts) 92 Recommendations 15 Top Priorities for 2003-05

Next Steps for the Energy Plan

SEO: Lead Agency for Implementation Guide for Future SEO Programs Oversight by Energy Policy Council Legislative Proposals to Gen. Assembly Presentations to Key Commissions,

Boards and Agencies Review and Revise in 2 Years

Implementing the Recommendations

Annual Progress Report to Governor and General Assembly

Energy Savings to be Tracked and Program Impact Evaluated

Additional Research to be Conducted on Selected Recommendations

The EPC’s Top Fifteen:Energy and Economic Issues

(1) Commerce and SEO support Energy Efficiency and Renewable Energy-related Economic Development

(2) SEO should convey energy research to Commerce for recruitment strategy

Status: SEO has funded ASU Energy Center to develop info on jobs and economic impacts with Commerce guidance.

Energy and the Environment

(3) DENR – Create Greenhouse Gas (GHG) Registry

Status: Policy options developed and emphasize:• Voluntary approach • Point and non-point sources included• Third party verification• Technical Assistance for participants • Goals for absolute reduction of GHG

Alternative Fuels from Biomass

(4A) Develop Alternative Fuel Industry through dedicated funding & matching grants

(4B) All 100 Counties with infrastructure by 2007

(4C) Funding: $1-2 increase in vehicle registration fee

Alternative Fuels: Status

Alt. Fuel Vehicle Demonstration Center dedicated on November 7, 2003

SEO funding pilot Incentive Programs to encourage fueling stations, vehicle purchases and competitive fuel prices

75% AFV federal purchase requirement for state vehicles: Motor Fleet

Alternative Fuels: Status

AEC and SEO developing hybrid buses Clean Cities Programs: Triangle,

Charlotte, & Asheville (new) DOT leading biodiesel user (4 million

gallons since 2000 without incident) EV Challenge and Model Fuel Cell Car

Programs for Grades 6-12

Alternative Fuels from Biomass

(5) Pursue strategies to convert animal waste into environmentally sound energy sources.

Status: Ethanol from Swine Waste Project underway and NC Biomass Conference held October ’03.

Alternative Energy Sources

(6) General Assembly should consider adopting net metering for all utilities.

Status: Related to NC GreenPower program development and a NCUC docket, discussions are underway on net metering and interconnection issues between utilities and renewable energy advocates and generators.

Alternative Energy Sources

(7) GA should evaluate a Renewable Portfolio Standard (RPS) that complements NC GreenPower Program.

Status: SEO has contracted with ASU Energy Center to analyze economic impacts of various RPS scenarios.

Alternative Energy Sources

(8) GA should reexamine Ridge Law as it pertains to wind energy.

Status: • SEO and ASU have developed wind maps

for mountain region and are studying impacts on endangered plants and animals.

• Public opinion survey shows strong support for wind development.

• Similar work in coastal area now starting.

Alternative Energy Sources

(9) SEO should propose incentives, regulatory measures, and administrative measures to develop renewable energy

Status: • SEO strongly supporting and funding NC

GreenPower Program. • SEO funding NC Solar Center to start green

builder program and daylighting consortium. • SEO funding ASU to analyze economic impacts of

solar DHW on new residential construction.

Renewable Generators

• Solar, wind, biomass

$3.25

100 kWh electricity

NC Utilities• Sign up customers

• Billing and collection

$4.00

$4.00

NC GreenPower Participants

How NC GreenPower

Works

NC GreenPower• Contracts with

generators• Marketing

• Administration

per 100 kWh

Disclosure

(10) GA should require utilities to disclose fuel mix and emissions statistics by bill insert and website.

Status: NC GreenPower Program now determining levels of disclosure needed to maintain certification. Briefing paper, with recommendations for GA, to be considered by EPC.

Energy Use in the Public Sector

(11) State agencies and universities should reduce energy consumption by 4% annually, or 20% by 2008.

Status: • SEO’s Utility Savings Initiative working closely

with 17 universities and 25 agencies. • Energy plans in place and $1+ million in

rate/billing savings . • 2004 features roll-out of $50 million

Performance Contracting program.

14 whole building energy efficiency projects (Energy Star Buildings Program) using a 10 year project

20%

Washington Mutual Investors Fund

12.5%

Vanguard 500 Index 11%

S&P 500 Stock Index 11%

Fidelity Growth & Income 10%

Fidelity Magellan 9%

How do energy efficiency investments compare to other investments?

10 year average annual return

Energy Use in the Public Sector

(12) SEO and SCO should evaluate energy savings from new life cycle cost analysis requirements

Status: evaluation of random sample of recently constructed state buildings, using data from State Construction Office, has been initiated.

Energy Use in the Public Sector

(13) Facilitate local governments to finance energy efficiency and renewable energy projects (loans, PC, bundling).

Status: • DPI and SEO will co-sponsor development of

energy plans for K-12 schools systems. • Local governments invited to USI and

Performance Contracting training. • Outreach and technical assistance now

being provided to local governments. • Loan program available to local

governments.

Energy Use in Residential Sector

(14A) NC should support a strong low-income weatherization program. Should review effectiveness of programs and analyze opportunities for improvements.

(14B) SEO should develop other programs to address energy efficient housing in low-income sector.

Energy Use in Residential Sector

Status: • SEO formed Low-Income Program with $1

million from GA• Manufactured Housing Efficiency Program

at Greenville Utilities Commission• Efficient New PHA Construction with AEC• PC Program for PHA’s starting now• RFP to be issued in May, 2004

Funding for Energy Programs

(15) The General Assembly should review options, such as a Public Benefits Fund (PBF) or other means, to enable funding of recommendations in the State Energy Plan.

Status: Survey of other PBFs has been completed. Now preparing analysis of economic and energy impacts for review by Energy Policy Council.

Architect William McDonough

Film courtesy of WorldLink Media

For More Information

State Energy Office1340 Mail Service Center

Raleigh, NC 27699800-662-7131919-733-2230

919-733-2953 (fax)www.energync.net

Larry.Shirley@ncmail.netSharon.Stroud@ncmail.net