Resource roundup – national governors association

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  • 1. Tennessee Industrial Energy Efficiency Summit July 17-18, 2013 Nashville, Tennessee Greg Dierkers Policy Academy on Industrial Energy Efficiency
  • 2. Outline • About NGA • What is a Policy Academy • Why NGA did a Policy Academy on Industrial Energy Efficiency (EE) • Examples of EE in the South • Early results and future efforts • Next steps 2
  • 3. Office of Federal Relations – Collective voice of governors in DC – Builds consensus on Federal issues – National policy focus Center for Best Practices – Comparative policy shop for state level efforts – Provides governors and staff technical assistance Office of Mgt Consulting & Training – Internal management consultants – Training and advice for governors, chiefs of staff, schedulers, spouses, et al About NGA
  • 4. What is a Policy Academy? • NGA Center model for providing intensive, targeted technical assistance (TA) to states – NGA staff and grant support • Provides a forum advance state policy • Over 30 Academies in the past decade in multiple areas (health, education, energy, workforce, etc.) 4
  • 5. Benefits of a Policy Academy • Brings focus to a policy topic • Builds state expertise – Engage stakeholders from different sectors – Connect with other states – Define outcomes and priorities • Culminates in a State Action Plan – Roadmap for future work 5
  • 6. Why EE in the Industrial Sector? • Low cost resource available to all states – From 1993 to 2010, annual utility EE spending increased from $1.3 billion to $4.6 billion – States and utilities invested over $811 million on direct IEE programs in 2010 • Despite low cost power, states acting on IEE – Linked to economic development – Utility programs increasingly sophisticated – Multiple benefits from industrial EE 6
  • 7. Energy Efficiency in the South • High sector use, low power cost – South is 36% of US population – 51% of US industrial energy use • Growing momentum – TVA, Georgia Power, Duke Energy exceeded EE goals in 2012 – AL, AR, MS = showed improvement on ACEEE Scorecard in 2012 • 36 EE bills in 10 states in 2013… 7
  • 8. Louisiana • State EE Roadmap for 2013 – EE potential = $3B in economic output, $663M in business income, $114M in tax revenue • PSC ‘quick start’ rules on IEE in 2013 – Voluntary EE goals for electric and gas IOUs – Caps utility costs per customer – Retroactive incentives for existing measures 8
  • 9. Mississippi • Gov. Bryant’s 2012 State of the State address called for greater industrial EE to increase competitiveness • HB 1296 reorganizes the state energy office to promote EE w/in state, private sector • Last week PSC adopted statewide EE rules – Requires utility EE programs – Based on AR rules 9
  • 10. Texas • HB 2049 allows utilities to sell excess heat and electricity from CHP to multiple customers • HB 1864 requires state energy office to develop CHP compliance guidelines for critical facilities – Supports emergency response and disaster mitigation efforts 10
  • 11. NGA Policy Academy - outcomes to date and lessons learned 11
  • 12. Policy Academy has Southern Flavor • Tennessee one of 3 southern states selected (AR, AL, IL, IA) • Excellent application – goals tied to job creation from increased attention to IEE and CHP – state team! – opportunity to leverage efforts in the south and work w/ AR and AL 12
  • 13. Alabama’s Outcomes • Website to communicate w/ industry on IEE resources • Develop working group on streamlining local permitting for CHP • Internship of engineering students • Governor’s Awards on IEE • Support events for companies to share best practices • Facilitate education opportunities for industry on compliance with EPA regulations including Boiler MACT • Policy Summit on IEE 13
  • 14. Arkansas's Outcomes • Enhance industrial EE opportunities through PSC and state actions • Improve industry awareness of IEE and CHP through a ‘one-stop shop’ • Development of E3 program • Emphasize low-cost financing + state TA support to engage industrials • Hosted EE Financing Summit for Industrials 14
  • 15. Lessons Learned There is no ‘one-size fits all’ strategy! • Industrials need a business case – Financing approaches must meet ROI needs – Explore targeted incentives and TA • Look for IEE and CHP efforts w/ multiple benefits (e.g., air pollution, resilience) • Team-driven education and outreach – Collaborate w/ state, utility, regulators, academia and private sector 15
  • 16. Next Steps 16 • Policy Academy ongoing – State best practices webinar (July 30) – Webinar on air quality and EE (Aug. date TBC) – Panel at NGA Policy Institute (Sept) – Paper on state best practices on IEE (Fall 2013) • Let me know if you’d like more information on any of these…
  • 17. Thanks! Greg Dierkers Program Director – Energy NGA Center for Best Practices 202/624-7789 17