Energy use and climate change are inextricably linked. The majority of U.S. greenhouse gas (GHG) emissions - 84 percent - are in the form of carbon dioxide (CO2), resulting almost entirely from the combustion of fossil fuels. Choices made today in the current national energy policy debate will directly impact U.S. greenhouse gas emissions far into the future. Decision-makers face the challenge of crafting policies that allow the United States to meet its energy needs while acting responsibly to reduce GHG emissions. There is a substantial convergence between the goals of energy policy and climate policy, and many feasible and beneficial policies from supply and security perspectives can also reduce future U.S. greenhouse gas emissions. This presentation considers near-term energy policies that can be adopted in the context of the energy policy debate to best position the local governments to reduce GHG emissions and to implement future climate change policies. In summary, the audience will learn the following: • Link between energy and climate • Energy policy context • Economics of energy • Example energy reduction/efficiency policies contained in Climate Action Plans.

1. Chandra K. Krout, AICP, LEED AP (BD+C/O&M), CGBP, GPR
Krout & Associates
chandrakrout@kroutandassociates.com
July 19, 2011

2.  Majority of U.S. GHG emissions (84%) are in the form
of CO2
 Resulting from combustion of fossil fuels
 Decision-makers face the challenge of crafting policies
that allow the US to meet its energy needs while acting
responsibly to reduce GHG emissions
 There is a substantial convergence between the goals
of energy policy and climate policy
 Many feasible & beneficial policies from supply &
security perspectives can reduce future U.S. GHG
emissions

3.  Consider near-term energy policies that can be
adopted to best position local governments to
reduce GHG emissions & to implement future
climate change policies
 Link between energy & climate
 National energy policy context
 Economics of energy
 Energy reduction/efficiency policies

4.  Fossil fuel use can be reduced by:
 Deploying technologies that increase energy
efficiency (e.g., more efficient power plants,
cars, and appliances)
 Employing non-fossil fueled energy sources
 solar, wind, geothermal, biomass, hydroelectric,
nuclear energy, or renewables-based hydrogen
 CO2 emissions also can be reduced by shifting
from high-carbon to lower-carbon fuels
 (e.g., shifting from coal to natural gas in the electricity
production sector)

5.  Climate-friendly energy policies fall into one of 3
general categories:
 Reduce GHG emissions now
 Promote technology advancement or
infrastructure development that will reduce the
costs of achieving GHG emissions reductions in
the future
 Minimize the amount of new capital investment
in assets that would be substantially devalue (or
“stranded”) if a GHG program were implemented

6.  A discrete and unified U.S. energy policy
does not exist
 Historically, most major shifts in U.S. energy
policy have been triggered by interruptions,
and subsequent price increases, in crude oil
supply.
 1973 (Arab oil embargo)
 1979–80 (triggered by the Iranian
revolution)
 1990 (associated with the Persian Gulf
War)

7.  Todayʼs energy policy debate confronts a
mixture of old and new issues
 U.S. energy policy is much more market
oriented,
 Less focused on cost-based price
regulation,
 More focused on environmental
regulation than it was in the 1970s

8. Where Energy and Climate Change Meet

9.  Baseline Inventory (municipal & community-wide)
 Business-as-usual forecasts (2020 & built out)
 Reduction Target (i.e. 15%)
 Quantified Reduction Strategies
 Energy, Water, Transportation, Solid Water
 Economic Analysis of Ratios
 Monitoring & Reporting Mechanisms

10.  Value in monetizing the direct energy cost
savings to residents and businesses over time
 Energy cost savings ratio comparing direct
program implementation costs to projected
cost savings for residents and consumers
 Bang for your buck for GHG reduction
 Municipal strategies inform CIP budget
 Identification of programs that are the most
cost-effective
 Grouping of financing mechanisms for
community-wide reduction strategies

11.  A considerable portion of the building stock (84%
of residential units) in Monterey Park was built
prior to the implementation of California’s Title-24
energy standards
 Improving the energy efficiency of the City’s
existing building stock will reduce GHG emissions,
while also decreasing property owners’ and
tenants’ energy bills

12.  Promote incentive programs through outreach
 Work to extend and improve on utility and other federal
and State incentive efficiency programs, through, for
example, participation in the Los Angeles County’s
Energy Upgrade California
 Eligible California homeowners can access up to
$25,000 for energy-saving projects like insulation,
heating and cooling systems, and solar panels
 https://energyupgradeca.org/overview

13.  Adopt incentive-based approach that would
become mandatory only if necessary retrofit
levels are not achieved through the voluntary
programs
 The City would adopt an ordinance that establishes a
desired level of energy efficiency retrofits in the
community
 The retrofit program would be voluntary unless the
desired level retrofit in the community is not achieved.
In that case a mandatory energy conservation ordinance
would be imposed

14.  New construction offers an opportunity for achieving
high levels of energy efficiency through advanced
materials and design
 The California Energy Commission strengthens these
standards every 3–5 years to increase efficiency in new
buildings
 The City may establish more efficiency requirements
above Title-24 if needed to achieve an environmental,
safety, or public health goal

15.  Promote utility incentive programs
 The programs can offer building owners and their design
teams a wide range of services, such as design assistance
and incentives
 Provide incentives for new development that
voluntarily exceeds State energy standards
 The reduced permitting time can generate significant
savings for developers that are paying interest on
construction loans

16.  Require new construction to exceed Title-24 energy
efficiency standards by 15%, a level comparable to
GreenPoint minimum requirements, Energy Star
Rated Homes, and achieving the California Green
Building Code Tier I performance criteria.
 Require new construction to exceed Title-24 energy
efficiency standards by 30%, achieving the California
Green Building Code Tier II performance criteria.
 Require new construction to exceed Title-24 energy
efficiency standards by a custom %

17.  Work with SCE, other jurisdictions, and
organizations to accelerate "Smart Grid"
integration in the community
 Smart grid technology will allow customers to become
active participants in the energy supply chain by
enabling them to manage their own energy
consumption and their own role in reducing carbon
emissions
 Access to allowing meter upgrades and understanding
how to properly use the meters once installed will help
integration

18.  Demand response programs that shave peak loads,
reducing the need for expensive (and polluting)
peaking power plants
 Intelligent in-home interfaces to help residents (and
businesses) monitor and manage their energy use
 Electronics and control software that monitor power
flows in real time, to run existing lines much closer to
capacity without compromising reliability

19.  Encourage planting of building shade trees in
existing and new development
 The City would develop a shade tree assistance program
and provide subsidized shade trees to residential and
commercial property owners
 Require planting of building shade trees in new
development
 This would include setting minimum canopy
coverage/age requirements of trees to be planted

20.  Create Solar Power Districts in commercial and
industrial areas with optimal solar orientation and
building structure conditions
 Within Solar Power Districts, the City could explore
opportunities to remove physical and Code barriers to
support installation of solar panels & solar water heating
 A streamlined permitting process could be developed to
further promote and expedite the installation of PV
systems and solar water heating systems

21.  Facilitate power purchase agreements (PPAs) within
Solar Power Districts to promote installation of solar
PV systems
 A solar PPA is a financial arrangement in which a third-party
developer owns, operates, and maintains the solar PV system,
and a host customer agrees to site the system on its roof or
elsewhere on its property and purchases the system’s electric
output from the solar services provider for a predetermined
period
 Promote the California Solar Initiative’s solar
water heating incentive program to subsidize the
purchase of solar water heaters and replace/ recycle
old water heaters in homes and commercial buildings

22.  Public realm lighting includes streetlights, pedestrian
pathway lights, area lighting for parks and parking
lots, and outdoor lighting around public buildings.
Lighting design and technology can considerably
influence the amount of electricity used to light these
areas

23.  Promote conversion of existing parking lot
lighting to higher efficiency lamp technologies
 The City would target outreach to land owners or
tenants with high levels of public realm lighting energy
demand
 Adopt high efficiency public realm lighting
ordinance
 The City would adopt an ordinance that requires new
commercial and industrial development to utilize high
efficiency lamp technologies (e.g., light-emitting diodes
lamps) to light parking lots and other public realm areas

24.  Balboa Park Cultural Partnership – Energy Efficiency
Retrofits
 Lighting
 HVAC
 Server Consolidation
 Energy Star Portfolio Manager
 City of San Diego Climate Mitigation and Adaptation
Plan (CMAP)
 County of San Diego Climate Action Plan
 Energy Upgrade California San Diego
 Contact jesse.fulton@energycenter.org