Governor-Elect Jerry Brown’s Cleantech Agenda

Excerpts from the governor-elect’s website : California has tremendous potential in the areas of renewable energy and efficiency. Peak electricity demand in California today is 65,000 megawatts (MW), and California has the ability to produce at least 1.3 million MW of renewable energy—concentrating solar, wind, solar photovoltaic (PV), small hydro, geothermal, and biomass—roughly twenty-two times our current electricity capacity. My goal is that by 2020, California should produce 20,000 new megawatts (MW) of renewable electricity, and also accelerate the development of energy storage capacity. California can do this by aggressively developing renewables at all levels: small, onsite residential and business systems; intermediate-sized energy systems close to existing consumer loads and transmission lines; and large scale wind, solar and geothermal energy systems. At the same time, California should take bold steps to increase energy efficiency. Below is my plan to get us there. It will produce a half a million new jobs in research, development, manufacturing, construction, installation, and maintenance over the next decade. 1. Build 12,000 MWs of Localized Electricity Generation • California should develop 12,000 megawatts of localized energy by 2020. Localized energy is onsite or small energy systems located close to where energy is consumed that can be constructed quickly (without new transmission lines) and typically without any environmental impact. • Solar systems of up to 2 megawatts should be installed on the roofs of warehouses, parking lot structures, schools, and other commercial buildings throughout the state. • Solar energy projects up to 20 megawatts in size should be built on public and private property throughout the state. For example, we should create the California Solar Highway by placing solar panels alongside our state highways. • The California Public Utilities Commission (CPUC) or Legislature should implement a system of carefully calibrated renewable power payments (commonly called feed in tariffs) for distributed generation projects up to 20 megawatts in size. Holding down overall rates must be part of the design. 2. Build 8,000 MWs of Large Scale Renewables & Necessary Transmission Lines • The Legislature should codify a requirement that 33% of the state’s electricity be derived from renewable sources. This will create market certainty and drive investment in renewable technologies. • The California Energy Commission (CEC) should prepare a renewable energy plan by July 1, 2011, that will expedite permitting of the highest priority generation and transmission projects. • Federal and state agencies should carry out one integrated environmental review. • The CEC should “fast-track‟ projects based on their anticipated ability to deliver clean energy to market. The permitting time for these projects—which now can take 6 to 8 years—should be dramatically reduced, and in no case be longer than three years. • Work with regulators and utilities to develop and introduce Smart Grid technology to provide greater transmission efficiency, renewable energy and system reliability. • Renewable energy is being delayed because of overlapping review between the CEC and the Independent System Operator. Delays are also caused as various departments, such as Fish and Game and water quality agencies, weigh in on projects. As Governor, I will ensure that all agencies work together—with a sense of urgency—to permit projects and transmission lines without delay. 3. Reduce Peak Energy Demands and Develop Energy Storage • The reliability of our energy system depends on the ability to meet peak power demand (usually summer afternoons when air conditioning use is highest). California funds many “peaker” natural gas plants that run for just a few hours a year, usually on hot summer afternoons. These plants pollute more and are less efficient than other power plants. We also import out of state coal and pay very high prices on the spot market to satisfy peak demand. Energy storage will help reduce the need for peaker plants and imports of out of state coal. • Renewable power is often intermittent. Neither wind nor solar energy is available 24 hours a day. As a result, renewable energy is more challenging to integrate into the base load of the overall energy delivery system. Energy storage helps smooth out this variability and makes it less costly to integrate renewables into the grid. • The California Public Utilities Commission and the state’s municipal utilities should adopt policies and incentives that promote the development of energy storage. • As Attorney General, I have sponsored legislation that would direct the PUC to establish policies that will encourage the building of energy storage systems. If utilities procure storage equivalent to 5% of their peak load demand, approximately 8,500 permanent new jobs would be created. 4. Increase Efficiency of Buildings and Appliances • New Buildings: A typical home uses much more energy than it needs to operate economically. New buildings can be designed today to use 1/3 to 1/2 less energy than they use today, with little or no cost increase. - We should establish a plan and a timeline to make new homes and commercial buildings in California “zero net energy”—highly efficient structures that use onsite renewable energy for all their electricity and natural gas needs. • Existing Buildings: Half of all California homes were built before current building standards were adopted. Energy consumption in these homes can be reduced by 40% if the CPUC and municipal utilities provide incentives for retrofits and efficiency upgrades. - Probably the most significant reason people do not make their homes or businesses more efficient is the high up-front costs of major efficiency upgrades, even though they save money in the long run. To overcome this barrier, the State, local governments, and utilities should make available programs whereby businesses and homeowners could take out loans and pay back the costs of efficiency upgrades (and renewable energy projects) through savings on their property tax or utility bills. It is also imperative to continue the nationwide effort to force Fannie Mae and Freddie Mac to accept “PACE” (property-assessed clean energy financing). - Another reason that people do not invest in efficiency upgrades is that they lack information about the energy use and energy costs of their homes and businesses. Disclosing information about energy performance can be a powerful motivator to improve efficiency. State law requires that, starting in 2011, commercial owners have to disclose energy use to potential buyers. This same program should be extended so that homebuyers receive information about a home’s energy use before purchasing it. • Appliances: The CEC should adopt stronger appliance standards for lighting, consumer electronics and other products. Federal law should be changed to make it easier for California to adopt standards more stringent than federal standards, as we have authority to do for automobile emission standards. For example, a proposed CEC efficiency rule for clothes washers would save enough water for all of San Diego for a year. • We should increase public education and enforcement efforts so that the gains promised by our efficiency standards are in fact realized. • We should also work with the Public Utility Commission to ensure that its $1 billion annual energy efficiency program prioritizes job creation in the programs it selects. 5. Develop More Combined Heat & Power (CHP) Projects • Combined heat and power projects (also known as cogeneration) use the excess heat or electricity generated by power plants or industrial facilities. They are much more efficient than traditional power plants and many industrial plants. California currently produces 9,249 MW of combined heat and power. With the right incentives, we can increase this by 6,500 MW over the next 20 years. 6. Appoint a Clean Energy Jobs Czar • I will designate one person, directly accountable to the governor, who will be responsible for ensuring that all energy jobs goals and deadlines are met. _____________________ As Governor, I will: Invest in Infrastructure and Create Construction Jobs Prioritize use of existing state funds and bond authority to maximize job creation in areas such as transportation, construction of education facilities, water infrastructure and clean energy. ...3. Cut Regulations Excessive regulations can get in the way of job creation and retention. We need to make government more efficient and effective, providing services quickly and with less hassle and duplication. I will: • Speed up regulatory processes and eliminate duplicative functions. For example: - Renewable energy projects are being delayed because of overlapping review between the California Energy Commission (CEC) and the Independent System Operator (ISO). I will make these two agencies work in tandem so that current delays are ended. I would also look at the practicality of merging certain functions now shared among these agencies and the Public Utilities Commission (PUC). Many parts of state government weigh in on power plant site approvals, such as the Department of Fish and Game and water quality agencies. I will get these agencies all on the same page and speed up permit approvals. Develop CEQA guidelines that accelerate permitting for renewable energy and smart growth/transportation projects and consider other reforms. 4. Increase Manufacturing Jobs California and the United States have been losing manufacturing jobs for decades as companies take advantage of the global economy. While national policies and comparative advantages in other places are key factors in these losses, California must take every reasonable step to preserve and enhance its manufacturing base. As Governor, I will: • Carefully review a range of incentives to encourage manufacturing jobs; examples include accelerated depreciation and sales tax reduction/elimination for manufacturing equipment. • Also review incentives for clean tech manufacturing in California, including state and local purchasing preferences. • Remove regulatory hurdles for retrofits of existing buildings to increase energy and water efficiency, install cool roofing materials and improve indoor air quality.

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Governor-Elect Jerry Brown’s Cleantech Agenda

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