From Victory to Reality:

Implementing SB 221

Jen Miller

Conservation Program

Manager

Ned Ford

Energy Consultant

Ohio’s Current Electricity Portfolio

Source:Energy Information Administration http://www.eia.doe.gov

THE PROBLEM

Ohio ranks 4th in the country for carbon dioxide emissions

Energy costs are skyrocketing because increased worldwide demand

Over half of the coal we burn is imported from other states, and much of it is obtained through mountain top removal.

Fossil fuels = a finite resource

Other concerns: soot, smog, mercury pollution & mining impacts.

What isEnergy Efficiency?

Technologies and practices that allow us to do the same tasks using less energy

Examples:

Lighting (CFL & LED bulbs)

Space Conditioning (high-efficiency furnaces, insulation, weatherization, improved windows)

Architectural Innovations (natural light, core structure and design)

Industrial technologies (higher-efficiency water-sprays & motors)

Benefits of Energy Efficiency Powers buildings on less energy Saves consumers money Reduces our dependence on imported out-of-state coal and finite fossil fuels

• Saves/creates jobs in manufacturing sector and building and construction trades

Reduces emissions

Reduces need for new power plants

1/3 the cost of a new coal plant &1/5 the cost of a new nuclear plant

Renewable Energy

• Derived from a resource that is naturally replenished as soon as or shortly after it has been consumed.

• Low impact upon water quality, water quantity, and air quality, including C02 and other greenhouse gas emissions. Doesn’t produce toxic waste.

Our New Energy Law (SB 221) Energy Efficiency Requirements

(and potential for incentives for over-compliance) Alternative Energy Requirements Demand Response

Demand Response programs lower the amount of energy needed at the times of the day and year when energy use is at its highest; reducing costs for consumers and the need for peak capacity.

Advanced Energy Requirements

Energy Efficiency Standards

Savings Requirements: Overall, SB 221 requires utilities to achieve a

minimum, cumulative 22% reduction in sales by the year 2025; beginning with 0.3% in 2009 and 0.5% in 2010.

Penalties for failure to comply: Penalties are required if utilities fail to meet their

required annual standards. Penalties are as follows: a max of $10,000 per day, or the value of one REC (renewable energy credit) for each MW (mega-watt) of non-compliance.

Alternative Energy in SB221

Basic Requirement: By the year 2025, 25% of energy sold by investor

owned utilities in the state of Ohio must originate with “advanced” or “renewable” sources. 12.5 % of these sources must be “renewable”; the remainder can be “advanced”.

By the end of 2009, 0.25% must be renewable and 0.004% must be from solar power. 2010 - 0.50% renewable standard & 0.010% from solar.

Renewable vs. Advanced Energy:

Utilities are required to meet annual supply standards for “renewable” sources, but not for “advanced” sources. 

Alternative Energy in SB221

Advanced Energy As defined in law:1) Generation efficiency technology 2) Distributed generation with cogeneration and thermal output 3) Clean coal technology, which includes the design capability to capture carbon 4) Coal technology that converts coal to a gas state, and removes pollutants to specified levels 5) Advanced nuclear or significant improvements to existing facilities 6) All fuel cells 7) Advanced waste energy facilities 8) Demand-side management and energy efficiency improvements

Renewable Energy As defined in law: 1) Solar 2) Wind 3) Hydro 4) Geothermal 5) Non-combustion solid waste fueled energy sources 6) Biomass 7) Biologically derived methane 8) Energy from non-treated wood byproducts 9) All fuel cells 10) Energy storage that has renewable application potential 11) Distributed generation from any energy resource

Combined Heat and Power(cogeneration, recycled energy, waste heat recovery)

• 1st waste heat recycling was125 years ago

• DOE - could create 200,000 MW = power for 100 million homes & replace 400 coal plants

• Industrial states in Midwest are prime

• Saves industrials up to 20% on energy costs

• Steam can only travel about 4 miles – saves on line losses & local generation can mean more local jobs

Offshore Wind Energy Potential

Great Lakes Energy Development Task Force Project for 2-10 turbines,

3-5 miles offshore downtown Cleveland

Current Lake Erie estimates: 68,000 MW of wind resource (note: this is more wind potential than Ohio’s onshore wind

resources)

Source: “The Great Lakes as a Regional Renewable Energy Source” by David Bradley, February 2004, www.greengold.org/wind

Solar Energy

Germany (at left – not to scale) is the world’s largest solar market, despite solar resources significantly poorer than the United States. A solar panel in Ohio will produce 20 – 25% more energy than the exact same panel in Germany. (solar maps – National Renewable Energy Laboratory, European Commission)

Rulemaking at the Public Utilities Commission of

Ohio• Legislature & Governor set forth the vision & standards• The PUCO guides implementation through rulemaking and later

through the utility cases• Strong rules are an essential part of ensuring that the standards

of the law are met and that over-compliance is encouraged• We hand delivered nearly 1700 comments to the PUCO with an

additional 2000 from Environment Ohio. Environment Ohio used paid canvassers and we used volunteers!

• We were also successful in obtaining a handful of LTEs throughout the state, which are essential for raising awareness.

• Large coalition of environmental and consumer advocates including OEC, OCC, NRDC, OPAE, Environment Ohio, AARP, etc.

Utility Cases at the PUCO

American Solar Energy Society report “Tackling Climate Change in the U.S. - 2007

Carbon-Free supply curve from McKinsey “How Much At What Cost” study - 2007

Ohio Fuels Data on Single AxisNote: Total Generation and all fuels on Left Axis

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

MWH (

Millio

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Total Generation

Coal Generation

Nuclear

Natural Gas

Petroleum

Hydroelectric

Other Renewables

This Single Axis version of the Ohio Fuels graph shows the relative value of all fuels.

Ohio Fuels Data - Dual AxisNote: Total Generation, Coal and Nuclear on Left Axis

Natural Gas, Petroleum, Hydro and Other Renewables on Right Axis

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

MWH

(Milli

ons)

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1

1.5

2

2.5

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MWH

(Milli

ons)

Total Generation

Coal Generation

Nuclear

Natural Gas

Petroleum

Hydroelectric

Other Renewables

This dual axis version of the Ohio fuels graph shows the small fuels on a larger scale to permit consideration of the variations

Ohio Electricity Generation and Sales

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

MWH

(milli

ons)

MWH Generation

MWH Sales

Industrial Sales

Residential Sales

Commercial Sales

Ohio has been a net importer of electricity, but is close to parity in

2006

Help with our Public Education/Media Work

1. LTEs about each utility’s progress (or lack thereof) in papers throughout the state

2. LTEs in support of efficiency investments – any chance to plug efficiency is critical

3. FE customers, sign the FE petition on our website and FORWARD IT TO OTHERS!

4. Assist staff with Editorial Board Meetings5. Incorporate campaign message into local group events6. In the future, the Ohio Chapter is likely to provide

information sheets about incentives offered by each of the utilities

1. How much of Ohio’s electricity originates from coal-fired power plants?

A. 65%B. 83%C. 88%D. 98%

2. Name two benefits of energy efficiency!

3. Which of the following is not a renewable energy source?

A. Wind PowerB. Solar PowerC. Volunteering for the Sierra ClubD. Nuclear Power

4. What is decoupling?

A. Your favorite bedtime reading materialB. That thing that Ned talks a lot about, but you

never quite understoodC. A polite way to talk about divorceD. A rate structure that removes disincentives for

utilities to invest in efficiency

5. Which utility is most likely to get in a wrestling match with the PUCO, because they did not comply to our new energy law?

A. Duke EnergyB. AEPC. FirstEnergyD. Dayton Power and Light

Thank You!

Special thanks to Environment Ohio, Ohio Environmental Council & Recycled Energy Development for contributing to this presentation.