Making Cap-and-Invest Work With Transportation Electrification. February 28, 2018

Transcription

1 Making Cap-and-Invest Work With Transportation Electrification February 28, 2018

2 Our Panelists Jessica Shipley Jordan Stutt David Farnsworth Rachel Mulroy

3 FEBRUARY 28, 2018 Beneficial Electrification: A Potential Framework for Use of Cap-and-Invest Revenue Webinar with TCI Advocates Jessica Shipley US Associate Regulatory Assistance Project

4 1 Introduction Regulatory Assistance Project (RAP)

5 Electrification: The use of electricity in end uses that would otherwise be powered by fossil fuels (natural gas or petroleum). 5 Regulatory Assistance Project (RAP)

6 Electrification is Already Happening 54% Photo credits: Nest and Dennis Schroder, NREL Regulatory Assistance Project (RAP) 6

7 Electrification is Crucial for Sustainability Roadmap 2050 Increased Electrification is Essential for Decarbonization Regulatory Assistance Project (RAP) 7

8 But Not all electrification is created equal. So, when is electrification beneficial? 8 Regulatory Assistance Project (RAP)

9 1. Saves Customers Money Long-Term Regulatory Assistance Project (RAP) 9 Photo credit: Flickr 401(k) 2012

10 2. Reduces Environmental Impacts Regulatory Assistance Project (RAP) 10

11 3. Enables Better Grid Management Regulatory Assistance Project (RAP) 11

12 2 How Transportation Electrification Fits Regulatory Assistance Project (RAP)

13 Electric Vehicles Internal combustion systems: <25% well-towheels efficiency. Electric vehicles: ~75% battery-to-wheels efficiency. Charging can be controlled into low-cost and low-emission hours Regulatory Assistance Project (RAP) 13

14 Electric Vehicle Energy Impact Source: NW Energy Coalition research paper, Building good load to reduce carbon emissions, 2016 Regulatory Assistance Project (RAP)

15 So, what does that mean for consumers, the environment, and the grid? 1 5 Regulatory Assistance Project (RAP)

16 Assessing BE Customer Costs Gasoline Vehicle: 350 gallons / $2.40 / gallon = $840 / year EV: 3,000 kwh / year x 13 / kwh = $390 / year Fuel savings: $450 / year Plus maintenance cost savings Regulatory Assistance Project (RAP)

17 Assessing BE Environmental Benefit Gasoline vehicle: 350 gallons/ year x 19.6 lbsco 2 / gallon = 6860 pounds CO 2 EV: 3000 kwh charging on 100% coal = 6426 pounds CO 2 100% gas = 2386 pounds CO 2 And cleaner from there Regulatory Assistance Project (RAP)

18 Regulatory Assistance Project (RAP) Source:

19 RGGI States Are Even Further Ahead Source: Acadia Center Regulatory Assistance Project (RAP)

20 As the Grid Gets Cleaner, So Do Electric Devices Regulatory Assistance Project (RAP)

21 Assessing BE Better Grid Management Avoid Home Charging during these hours Workplace Charging Regulatory Assistance Project (RAP)

22 It s Not All About EVs Source: Aber, Judah, Electric Bus Analysis for New York City Transit, Columbia University, May Regulatory Assistance Project (RAP)

23 Other Principles to Consider Equitable access to benefits is critical Each state is different Must distinguish from energy efficiency (EE), which is crucial but different EE goal (still important!): Use fewer kwh to do a task BE goal: Use less overall energy by using more kwh Emissions efficiency matters = Total emissions emitted by a project vs. alternatives Regulatory Assistance Project (RAP)

24 3 Takeaways Customers benefit from lower cost of transportation electrification Environmental improvements are realized Grid management reduces cost and enables more renewable energy Regulatory Assistance Project (RAP) 24

25 About RAP The Regulatory Assistance Project (RAP) is an independent, nonpartisan, non-governmental organization dedicated to accelerating the transition to a clean, reliable, and efficient energy future. Learn more about our work at raponline.org

26 Advancing the Clean Energy Future Webinar on BE and Cap-and-Invest February 28, 2018 Jordan Stutt acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

27 BE and Transportation Carbon Policy Two mechanisms for reducing emissions Cap: Requires regional emissions reductions Imposes a cost on emitters Price signal drives long-term investment decisions Revenue reinvestment: Allowance auctions generate revenue State programs reinvest revenue to achieve various goals Reducing demand for polluting activities Question: How best to pursue emissions reductions in disadvantaged communities? Advancing the Clean Energy Future acadiacenter.org info@acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

28 Revenue Reinvestment Priorities Stakeholders and policy makers have distinct interests Identify opportunities for overlapping benefits CO2 Reductions Transportation Improvements Benefits for Disadvantaged Communities Advancing the Clean Energy Future acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

29 Considering BE Identify lowest cost opportunities for CO2 reductions Reduced demand for highemitting electricity yields benefits for all Grid management, off peak charging Transportation Improvements CO2 Reductions Benefits for Disadvantaged Communities Advancing the Clean Energy Future acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

30 From Proposal to Policy Stakeholder process (2018) Regional listening sessions Broad challenges Policy design Emissions target State-specific sessions Local challenges Reinvestment opportunities 2018 Listening Sessions 2019 Analysis and Rulemaking Implementation Advancing the Clean Energy Future acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

31 Next Steps 4-5 Regional Listening Sessions State Listening Sessions Written Comments Advancing the Clean Energy Future acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

32 Advancing the Clean Energy Future Advancing the Clean Energy Future acadiacenter.org ext. 001 Boston, MA Hartford, CT New York, NY Providence, RI Rockport, ME

33 Key Takeaways Customers benefit from lower cost of transportation electrification Environmental improvements are realized Grid management reduces cost and enables more renewable energy Beneficial electrification requires alignment of policies and investment Regulatory Assistance Project (RAP) 33