Oregon Environmental Council
||Energy Consultant |
|Iberdrola Renewables, Inc.|
|Design Team Staff:|
Department of Administrative Services (DAS)
Department of Administrative Services (DAS)
In the campaign energy plan, Governor Kitzhaber wrote:
I will also create the authority to integrate all state policies and programs, such as transportation, energy, agriculture, land use planning and others, that have relevance to climate change and energy issues. This body will have a clear directive to oversee implementation of the state Energy and Climate Strategic Plan and the climate change communications and outreach strategies and the staff support to do so. Unlike prior attempts to coordinate agencies for consistent energy and climate change policies, this will be a cabinet-level effort with executive authority.
Recommend a structure for the State that would help meet this goal, taking into account the following principles:
- Bring climate and energy discussions together under one umbrella because they are integral to one another and achieving GhG reductions must be a central part of the state’s energy policy;
- Streamline these processes to have a more integrated, economy-wide approach to develop a cross-sector ‘least-cost’ GhG emissions reduction plan with clear benchmarks, strategy and responsibilities delineated for key agencies;
- Integrate climate change mitigation and adaptation (where appropriate) into agency missions, giving them full authority to act upon climate change in their decision-making.
- Lessen the demand on agency and Governor staff by reducing the number of advisory bodies, while providing a longer-term basis for energy and climate choices that is accountable to both the Governor and the Legislature;
- Increase effectiveness of advisory process by linking their work directly to Agencies, the Executive Office and the Legislature where implementation occurs; and
- Recognize that an equally important discussion needs to happen around adaptation and preparedness for climate change, but this often involves different stakeholders than the energy and emission reduction conversation and deserves its own process.
While the state is building from programs that are performing well, there may be new and innovative methods to promote efficiency that deserve consideration. To the extent that a financing tool for private capital, regulatory support, consumer education, removal of barriers and market mechanisms can be developed that can accelerate energy efficiency retrofits, the Plan’s goal should not be seen as a limitation. As the team explores the possible deployment of private capital, it should consider creating investment opportunities on the demand side that parallel those on the energy supply side.
The team, along with the other Design Teams, should also consider how energy-related policies will impact the economy, with particular focus on accelerating job growth in Oregon.
Remembering that a significant amount of work has been done by the Global Warming Commission, the Northwest Energy Efficiency Alliance and others on these subjects, please address the issues below.
Targets for Sectors
In order to meet or exceed the Plan’s goals, different sectors of energy use (residential, commercial, industrial) will require different tools. Please identify the relevant differences in the sectors.
What incentives will be needed, perhaps even by sector, to meet the Power Plan’s goals and, if possible, to go beyond those goals? How much of the cost of energy efficiency and demand management retrofits and upgrades should be borne by taxpayers and ratepayers (e.g., how much benefit of such activities runs to those groups as opposed to private capital)? Recognizing fiscal limitations, what market incentives could be provided beyond what already exists? Are new financing mechanisms needed to pay for efficiency improvements? What mechanisms are most likely to succeed in the different sectors?
The Governor has called for significant changes in our regulatory structure in order to reach a point where a kWh (or equivalent) saved is treated the same as a kWh (or equivalent) generated. For both investor and consumer owned utilities, what changes must be made to make this a reality?
Given the incentives and regulatory changes identified above, what legislative fixes may be necessary? Are there additional legislative frameworks that must be changed?
Improved demand-side management has real benefits for energy use and the transmission system generally. What is the role of smart grid in meeting the Plan’s energy efficiency targets? Please identify achievable advances in Smart Grid technology over the next ten years. What are the necessary steps to making those advances?
Accelerating an Industry in Oregon
Oregon already has a substantial industry in advanced services and materials for the built environment. How can the state ensure that advances identified above help it accelerate this industry, leading to more traded sector opportunities, clean energy jobs and job retention?