Energy Policy Challenges and Transportation Opportunities

1. Energy Policy Challenges and Transportation Opportunities Annual Meeting of the Independent Energy Producers Association September 26, 2013 Janea Scott, Commissioner California Energy Commission Janea.Scott@energy.ca.gov (916) 654-4930

2. California Energy CommissionCommissioners Five Commission seats, appointed for five year, staggered terms. • Chair Robert Weisenmiller • Commissioner Janea Scott • Commissioner Andrew McAllister • Commissioner David Hochschild • Commissioner Karen Douglas • Scientist / Engineer • Public Member • Economist • Environmental • Attorney

3. California Energy Commission Diverse Responsibilities • Energy Analysis develop key energy metrics and archive historic data • Permitting: review and permit thermal power plants >= 50 megawatts (MW) • R&D: research and development program administration (e.g. PIER and EPIC) • Energy Efficiency: promulgate appliance and building energy efficiency regulations (Title 20 & 24) • Transportation: support deployment of alternative vehicles and renewable fueling infrastructure • Renewable Energy: administer renewable incentive programs, provide certification, and verification of renewable generation, and promulgate POU RPS regulations • Contingency Planning: State energy emergency planning and oversight • IEPR: publication of the “Integrated Energy Policy Report,” the State’s official source of energy policy guidance

4. California’s Energy PolicyKey Policies & Goals

5. California Energy Commission2013 Integrated Energy Policy Report Scope • Demand response – Demand Response action plan • Efficiency – Definition of and pathway to zero net energy, efficiency in existing buildings • Renewables – Status of bioenergy development, barriers to biomethane • Electricity – Demand forecast, reliability given SONGS outage, strategic transmission plan • Nuclear – Utility progress on 2011 IEPR recs on seismic safety, spent fuel storage, and station blackouts • Natural gas – Demand forecast, market trends and outlook • Transportation – Supply/demand forecast, evaluation of projects funded under AB 118 • Climate change – Impacts on energy supply and demand

6. Immediate Challenges Southern California reliability • San Onofre closure • Once-through cooling retirements • Governor's Office and Energy Agencies coordinating New resources will be needed • September 9, 2013 IEPR Workshop – Joint Staff Preliminary Reliability Plan

7. California Energy CommissionDesert Renewable Energy Conservation Plan (DRECP) A collaborative process to guide renewable development in the California desert that protects environmental, cultural and military interests. • Mandated by Executive Order # S-14-08 • Created to help meet RPS goals • Initiated in late 2010, draft expected in 2013 • PARTICIPANTS: Energy Commission, CPUC, CAISO, CA Department of Fish & Game, BLM, U.S. Fish & Wildlife Service, National Parks Service, U.S. EPA, Department of Defense

8. Transportation Sector • Key to meeting both GHG and air quality goals • Mobile sources are largest source of both GHG and air pollutant emissions • 40% of state GHG emissions • Over 80% of NOx emissions • Fundamental transformation needed • Fuels • Vehicles • Infrastructure

9. California Energy CommissionTransportation • Alternative and Renewable Fuel and Vehicle Technology Program • $100 million annual Investment • Supports climate change, low-carbon fuel, and air pollution policy • Promotes economic development • Invests in fueling and vehicles

10. Alternative and Renewable Fuel and Vehicle Technology Program (AB118) The Purpose “…develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies.” (Health and Safety Code Section 44272(a)) The Investment Plan • Advisory panel provides guidance from broad cross section of California stakeholder groups • Allow members of the public to participate in funding allocation process • Direct program activities to assist in achieving state policy goals

11. ARFVTP (AB 118) Funding and Objectives • Invest in a portfolio of alternative low-carbon and renewable fuels and advanced vehicle technologies in California to help meet our energy, environmental, and economic goals. • Alternative fuel production, distribution and dispensing • Alternative technology vehicle development and manufacturing for trucks and light duty vehicles • (EVs, CNG/LNG, Fuel Cell, Flex Fuel) • Workforce training • Environmental, market and technology assessments • Leveraging private sector investments

12. Existing ARFVTP Agreements (2009-13): $410 million

13. 2013-14 Investment Plan

14. Alternative Vehicles in California

15. Thank You Commissioner Janea Scott California Energy Commission Janea.Scott@energy.ca.gov (916) 654-4930 September 26, 2013