Home Search Newsletter Archive SDREO Energy Connection - September 2005

SDREO Energy Connection - September 2005


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September 2005
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SDREO extends our condolences to victims of the Hurricane Katrina disaster and their friends and family. For ways to provide assistance, please visit the USA Freedom Corps web site.

Upcoming Events

Acceptance Testing Requirements in Title 24: A Training Course for Building Designers
Date: 9/15/2005
Time: 9:00am to 12:00pm


9/25
Family Solar Energy Day
12:00pm to 4:00pm

9/27 Optimizing PV Power to Direct-Drive Motors Workshop
9:00am to 10:00am

9/27 Interconnection & Net Metering Workshop
1:00pm to 2:00pm

9/28 Commercial Solar Tour
Tour One 8:00am to 12:00pm
Tour Two 1:00pm to 5:00pm

9/29 Solar Energy Conference
8:00am to 5:00pm

9/30 Power Purchase Agreements
10:00am to 11:30am

10/1 Solar Homes Tour 2005
10:00am to 3:00pm

View a complete calendar of upcoming events.

News Bits

Why Hybrids? Here in California, driving a hybrid electric vehicle means more than saving at the pump and receiving tax credits, it also means driving solo in carpool lanes. Soon after Pres. Bush signed the federal energy bill, the Schwarzenegger administration implemented a California law passed nearly a year ago. The law allows single-occupant hybrid vehicle drivers in carpool lanes. Only hybrids getting at least 45 miles to the gallon are eligible, limiting the current list to the Toyota Prius and Honda's Insight and Civic Hybrids. Visit the DMV site for more information and the window sticker application.

What San Diegans Want. When presented with a list of 15 possible projects and services to receive tax dollars, San Diego area residents viewed "increasing the use of renewable energy sources, such as solar and wind-generated electricity" the highest priority, followed by "protecting the environment from pollution," "improving freeways in the region," and " improving local streets and roads." This according to the San Diego Region Public Opinion Survey conducted by the San Diego Association of Governments (SANDAG). Only 29% agreed with the statement, “I would be willing to pay higher energy rates if it would prevent blackouts or price swings in the future”. View the full survey here (1.35MB PDF).

In the Far East. SDREO will have a presence at Tokyo's 2005 World Sustainable Building Conference this Sept. 27-29. SDREO Program Manager Dave Gordon will be making a presentation on the cross-organizational collaboration and tools needed to establish community-wide partnerships. He will detail experiences with the 2003 San Diego area wildfires and the resulting Rebuild A Greener San Diego Program, a partnership between SDREO, the City of San Diego, the County of San Diego and SDG&E. View the accepted abstract here.

2000-2001 Energy Crisis Settlement. Following last month's $1.5 billion Enron Corp. settlement, FERC Chairman Joseph T. Kelliher announced a $460 million settlement reached with Reliant Energy. The settlement, expected to be filed in September, must be approved by the Commission. This brings the total amount of settlements to $6.3 billion. Information on FERC's action on the 2000-2001 energy crisis is available here.

Tech Tip

Recessed Can Lights. When investigating compact flourescent lamp (CFL) recessed can lights, specify the pin-based lamp/ballast type. In some circumstances, occupants and facility staff would replace CFLs that have a screw base with incandescent lamp with the same base -- thereby shortcircuiting the long-term benefits of CFLs. They should use electronic ballasts instead of magnetic (i.e. 4 pin instead of 2 pin style), should be Airtight and Insulation Contact rated. Click here (PDF) for the latest (residential) lighting requirements, effective Oct. 1 for new construction.

 

Quotables

“The best engineering solution must address the client's financial needs. HVAC designers routinely balance comfort and energy efficiency. We discuss and analyze the merits of systems, equipment efficiencies, building design features and codes. We strive to provide better buildings. We promote high-performance buildings and sustainable design with energy efficiency and indoor environmental quality. Unfortunately, technical issues often overwhelm the owners' fundamental question, does it make economic sense? . . . The lowest life-cycle cost alternative may not be the lowest in energy costs or the most expensive in first cost. The alternative with the lowest life-cycle cost is the one that requires the least amount of money to own, operate and maintain over the time frame under consideration. In accounting terms, the lowest LCC option will have the lowest net operating expense."

-- Mattew E. Mullen, P.E., EMCOR Services New England Mechanical

 

Speak Out

Energy Connection is a monthly publication of the San Diego Regional Energy Office.

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Solar Energy's Role Today and Tomorrow

Learn more during Solar Energy Week 2005

From Governor Schwarzenegger's Million Solar Roofs Initiative (SB1) to the recently signed Federal Energy Bill (see following article), interest in solar power as an alternative energy source has never been higher, especially here in the San Diego, where the sun shines all-year round.

read more>>

Tax Incentives in the Federal Energy Bill

What's in it for me?

On Aug. 8, President George Bush signed into law the Energy Policy Act of 2005 (EPAct 2005). SDREO is producing a white paper that focuses on the bill’s tax credits, deductions or other incentives, such as grants. Below is a brief list of some of the incentives available in the EPAct 2005.

Credit for Construction of New Energy Efficient Homes (Sect. 1332)
Eligible contractors may receive a credit of between $1,000 and $2,000 for constructing and selling a new energy-efficient home that meets certain requirements. The credit expires for homes acquired after Dec. 31, 2007.

read more>>

Building Green in San Diego

The buzz on green building continues to get louder, and its benefits range from reduced operating costs to improved worker productivity and health. To educate and inform the public on the many benefits and processes of green building is the significantly expanded conference Build Green San Diego '05, held at UCSD's Price Center on Sept. 13-14. Presented by the U.S. Green Building Council - San Diego Chapter and SDG&E, the conference focuses on "smart building and smart development" strategies.

read more>>

 

Inside the San Diego Energy Resource Center

Featured Display

Name: H-Tec DT Fan Fuel Cell
Description: A 10 milliwatt proton exchange membrane fuel cell operated with a 3% methanol in distilled water solution
System Addressed: Electric
Illustrates: How a fuel cell works

Featured Instrument

Name: High-Accuracy and Wide-Range Temperature Sensors
Description: Measure temperature
Examples of Use: Both sensors measure and log temperature in HVAC systems (ducts) and are also used in conjunction with the HOBO external loggers.
Availability: Loaned free of charge for up to 10 business days. Remember: safety first!

Featured Book

The Refrigerant Manual: Managing the Phase-Out of CFCs is published by the Building Owners and Managers Association (BOMA) and was written to provide guidance and updates for the difficult task of phasing out CFCs. The book covers legislation, regulations, and the choices owners/operators have that do not include CFCs.

Featured Periodical

Engineered Systems is published monthly by bnp Media and provides practical, application-oriented information to assist facilities engineers, consulting engineers and mechanical contractors who design, specify, install, maintain, and purchase non-residential HVACR equipment and components.

Featured Video

 

Name: Greenhouse Crisis
Description: Produced by the Union of Concerned Scientists, the video illustrates the relationship between energy consumption, the greenhouse effect, and global warming. The program details the potential consequences of global warming, and stresses the need for energy efficiency and renewable forms of energy.
Length: 11 minutes

NOTE: Books, periodicals and videos can also be checked out free of charge. Please call toll-free: 1-866-SDENERGY for more information.

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Energy Policies, Regulations & Legislative Updates

CPUC REGULATORY ACTIVITY INCLUDES:

Rehearing of Otay Mesa Power Purchase Agreement (R.01-10-024): In an Aug. 16 Scoping Memo and Ruling, the CPUC approved a limited rehearing of decision D.04-06-011, regarding the Otay Mesa Power Purchase Agreement ( PPA). The CPUC ruled that the purpose of the rehearing was to determine the benefits to ratepayers and the benefits of the PPA. Some parties argued that the rehearing should be broadened to include a comparison of alternatives to the Otay Mesa Power Plant PPA. The Scoping Memo set forth the following procedural schedule for the rehearing:

  • Sept. 8 - SDG&E Testimony
  • Sept. 30 - Intervenor Testimony
  • Oct. 7 - SDG&E Reply
  • October 17-21 - Evidentiary Hearings

Energy Efficiency Programs 2006-2008 (A.05-06-016 / R.01-08-028): On Aug. 17, the CPUC released a draft decision approving energy efficiency program filed by the investor-owned utilities of California. Comments were due Sept. 6 and reply comments 5 days after. SDG&E released a Request for Information (RFI) on Sept. 1 that invites third parties to submit program ideas that address energy efficiency needs in the region. Abstracts will be due to SDG&E Sept. 20.

Critical Peak Pricing (A.05-01-017): On Aug. 1, SDG&E and PG&E filed default CPP rates for 2006 as part of the Rate Design Window proceeding at the CPUC. The CPUC is requiring the utilities to implement a default CPP rate for all bundled customers with demands >=200kW, effective May 1, 2006. A CPUC pre-hearing conference was held Aug. 24. SDG&E held a public forum on Aug. 25 to inform local stakeholders of their proposal that includes a CPP period lasting from 11:00am to 6:00pm and no minimum or maximum number of CPP events that can be called. The CPUC has stated it favors statewide consistency, so SDG&E’s rate proposal is subject to change and may be substantially different from what it proposed.

Confidentiality Rulemaking (R.05-06-040): The CPUC recently initiated a rulemaking to examine CPUC practices regarding confidential information to ensure public participation in proceedings and open decision making. The rulemaking was required by SB 1488 (Bowen), which was passed in 2004. No Scoping Memo has been issued for this rulemaking.

SDG&E General Rate Case (A.05-05-012): SDG&E filed its general rate case in May. In recent activity in this proceeding, the Office of Ratepayer Advocates and other intervenors filed testimony on Aug. 8. Rebuttal testimony was filed Aug. 24. In its filing, SDG&E seeks to increase its rate of return from 8.18% to 9.12%, and increase its return on equity from 10.38% to 12%. According to a June 22 Scoping Memo, the procedural schedule for this proceeding is as follows:

  • Sept. 7 - Evidentiary Hearing Starts, Commission Courtroom, State Office Building, 505 Van Ness Avenue, San Francisco, California
  • Sept. 8–9 - Evidentiary Hearing Continues, as Needed
  • Sept. 20 - Late-Filed Exhibit Update Costs of Debt/Stock
  • Sept. 28 - Opening Briefs and Deadline to File a Request for Final Oral Argument
  • Oct. 6 - Reply Briefs and Proposed Submission Date
  • Nov. 15 - Proposed Decision Filed
  • Dec. 15 - Final Decision Issued

LEGISLATIVE UPDATE:

The 2005 state legislative session is coming to a close. Sept. 2 was the last day for a bill to be amended and the session is scheduled to end Sept. 9. The Governor’s reorganization plan to create a Department of Energy was vetoed by the Senate, so the Governor introduced the plan into legislation by amending an existing bill (AB 1165) of Representative Bogh. AB 1165 will likely be heard in the 2006 legislative session.

State Bills that Passed:

SB 816 (Kehoe): On July 21, the Governor signed into law this bill that raises the Net Metering cap for the SDG&E territory from approximately 19MW to 50MW of aggregate customer peak demand. Net Metering allows customers to connect eligible solar and wind systems directly to the utility’s distribution system and to receive full retail value for the electricity they produce. San Diego was the only part of the state nearing capacity under the old cap.

SB 1732 (La Malfa): Gas Consumption Surcharge Fund. This bill stipulates that funds received from the gasoline consumption surcharge fund for public-interest research and development in the gas industry would be administered by the CEC, similarly to how it oversees the Public Interest Energy Research (PIER) program. On July 21, the Governor signed this bill into law.

SB 76: Specifies that the CEC can use some of the $65 million of public -goods charge funds earmarked for the PIER program for transportation projects, such as hydrogen fuel research.

Active State Bills:

AB 32 (Pavley): California Climate Act of 2006. Requires the California EPA to institute a cap on greenhouse gas ( GHG) emissions from the electrical power, industrial, and commercial sectors of the economy; institute a schedule of emissions reductions for specified entities; develop an enforcement mechanism for reducing GHG emissions to the target level; and establish a program to track and report GHG emissions and to monitor and enforce compliance with the GHG emissions cap. Last amended Aug. 15. Likely to be heard in the 2006 legislative session.

AB 380 (Nunez): Resource Adequacy. Requires the PUC to establish, implement and enforce resource adequacy requirements (RAR) on all electrical load serving entities (LSEs) to ensure that adequate physical generating capacity, dedicated to serving all load requirements, is available to meet peak demand plus requisite planning and operating reserves. Last amended Sept. 2.

AB 1362 (Levine): RPS Goal Acceleration. Advances the RPS goals for renewable energy procurement to 20% by 2010 and adopt rules that authorize the use of renewable energy credits to satisfy annual procurement targets. Provides that the bill becomes operative only if SB 107 (Simitian) is enacted by Jan. 1, 2006. Moved to inactive file Aug. 29. Read a second time Aug. 17 and last amended July 12.

AB 1576 (Nunez): Repowering Power Plants. Requires the CEC to consider the approval of any cost effective generation facilities that meet specific criteria for a repower facility, including a requirement that they must replace an older, less efficient facility, must be located on an optimal site close to customers, and can use the existing infrastructure. Amended and passed Senate Committee on Appropriations Sept. 2.

AB 1585 (Blakeslee): RPS Goal Acceleration Study. Requires the CEC to review the feasibility of increasing the renewable portfolio standard ( RPS) target to 33% by 2020 and to include the results of this review in the Integrated Energy Policy Report to be adopted by the Legislature and the Governor by Nov. 1, 2007. Passed Assembly (8/29) and Senate (8/23), enrolled and sent to Governor Sept. 2.

AB 1723 (La Malfa): Integrated Energy Policy Report. Requires each IOU and municipality to provide the CEC with its load forecast, as part of each integrated energy policy report. Passed Assembly (9/1) and Senate (8/30), enrolled and sent to Governor Sept. 2.

SB 1 (Murray): Million Solar Roofs Initiative. Establishes the Million Solar Roofs Initiative with the goals of placing 1,000,000 solar energy systems on new and existing residential and commercial customer sites (or 3,000 megawatts equivalent) establishing a self-sufficient solar industry in 10 years, and placing solar energy systems on 50% of new home developments in 13 years. Last amended Sept. 2 in Assembly.

SB 107 (Simitian): Renewable Portfolio Standard. Increases the amount of electricity generated per year from eligible renewable energy resources to an amount that equals at least 20% of the total electricity sold to retail customers in California per year by Dec. 31, 2010. Last amended in Assembly Aug. 30.

SB 426 (Simitian): LNG Impacts. Requires the commission to make a liquefied natural gas ( LNG) needs assessment study. Last amended in Assembly Aug. 31.

SB 441 (Soto): Advanced Metering. Prohibits the commission from requiring the installation of advanced metering infrastructure for any building constructed prior to Jan. 1, 2006, and occupied by a customer with average annual electricity usage of less than 1,000 kilowatt hours per month. Last amended in Assembly Aug. 22 and placed on inactive file Sept. 1.

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Solar Energy (cont.)

So why the interest in solar? Solar is clean, renewable and, unlike wind or geothermal, can readily be installed on residential homes and commercial buildings, allowing electricity to be delivered without the need for transmission lines. Solar energy systems also require little maintenance and produce the most power when the cost of electricity is highest, protecting against future energy price volatility.

In addition, a recent study shows enormous potential for solar energy in the San Diego region -- an estimated 40,000 megawatts with 35,000 coming from solar thermal and 5,000 from photovoltaics. (California's peak demand is about 55,000 megawatts.)

Do you want to find out more about solar? Get all the solar information you need at San Diego's first Solar Energy Week on Sept. 25 to Oct. 1. The week includes the following events:

  • Solar Energy Conference, Sept. 29, QUALCOMM Incorporated. Features top industry and government speakers, such as Bonneville Environmental Foundation's Tom Starrs, author of "The Solar Fraud" Dr. Howard C. Hayden and Argonne National Lab's George Crabtree. Topics include current federal and solar legislation and policy issues, solar applications and technologies, and solar economics.
  • Solar Homes Tour, Oct. 1, throughout San Diego County. Showcases real-world, residential solar installations. Over 25 homes throughout the County will open their doors to the public on Oct. 1 from 10:00 a.m. to 3:00 p.m. The homeowner and solar installer will be on hand to answer questions about the solar energy system, the process and benefits.
  • Family Solar Energy Day, Sept. 25, Reuben H. Fleet Science Center. Adults and children can enjoy interactive activities. Winners and prizes for the "Solar Energy in My Community" drawing contest will also be announced. The contest is open to children grades 5-8 and entries must be postmarked by Friday, Sept. 9.
  • Commercial Solar Tour, Sept. 28, various locations. Showcases four local commercial solar installations with differing technologies and applications.
  • Solar Workshops, Sept. 27 and Sept. 30, SDREO. Various solar-related educational workshops.

Learn how solar can be a major part of our energy future by taking part in Solar Energy Week. More details may be found at solarweek.sdenergy.org.

Major sponsors for Solar Energy Week include SDG&E, Kyocera Solar, Independent Energy Solutions, San Diego Electrical Training Center, BP Solar, Pardee Homes, Powerlight Corporation and Renewable Technologies.

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Federal Energy Bill (cont.)

Energy-Efficient Commercial Buildings Deduction (Sect. 1331)
Provides a deduction of $0.60 to $1.80 per square foot, depending on the energy performance of the building, for energy-efficient commercial building property placed in service during the taxable year.

Credit for Certain Non-Business Energy Efficiency Property (Sect. 1333)
Provides a tax credit for the purchase of qualified residential energy efficiency improvements, including insulation, exterior windows, exterior doors, highly reflective metal roofs, electric heat pumps, high efficiency geothermal heat pumps, high efficiency central air conditioning, efficient water heaters, and efficient furnace fans.

Business Energy Tax Credit (Sect. 1336, Sect. 1337)
Provides a credit of 10% to 30% for purchase of photovoltaics, solar water heating (not pool heating), solar hybrid lighting, geothermal, fuel cell, and microturbine equipment during taxable years 2006 and 2007.

Residential Solar Energy and Fuel Cell Tax Credit (Sect. 1335)
Establishes a 30% tax credit for the purchase and installation of qualified photovoltaics, solar water heating (not pool heating), and fuel cell equipment and systems on residential properties. The credit is 30% of the installed cost of qualified equipment with a $2,000 cap for photovoltaics and solar water heating, and a cap of $500 per 0.5 kilowatt for fuel cells.

Extension and Modification of Renewable Electricity Production Credit (Sect. 1301)
Extends the Renewable Electricity Production Credit (REPC), a per Kilowatt-hour tax credit for electricity generated by qualified energy resources. The bill modified the credit and has extended the date taxpayers can begin taking the credit through Dec. 31, 2007. The credit lasts ten years. Eligible technologies include: wind, closed-loop biomass, open-loop biomass (poultry-waste energy resources), geothermal, solar, small irrigation power (150 kW - 5 MW), municipal solid waste combustion, landfill gas, refined coal, hydropower, and Indian coal. The credit is between 1.5 and 1.9 cents/ kWh, depending on the resource.

Alternative Motor Vehicle Credit (Sect. 1341)
Establishes a tax credit for fuel cell, lean-burn technology, hybrids, alternative fuel, and mixed fuel motor vehicles. Credits are determined on a sliding scale based on efficiency.

The forthcoming SDREO white paper on tax credits, deductions and other incentives will contain more details on eligibility, incentive amount, and expiration dates. For the full text of EPAct 2005 (also known as HR 6), see thomas.loc.gov.

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Building Green (cont.)

SDREO is cosponsoring the event and according to SDREO Program Manager Stephen Kapp, who also serves as conference director: "Green building practitioners, as well as public agencies and others in the A/E/C realm, are readily adopting integrated green design and construction principles. However, considerable gaps in knowledge and best practices to embrace this wide-sweeping industry effort still exist. Build Green San Diego '05 was organized to meet those needs."

Talking about the link between our environment and decision-making is the conference Keynote Speaker Dr. Charles Kennel, director of Scripps Institution of Oceanography and vice chancellor of Marine Sciences at UCSD. Other speakers include Rick Fedrizzi, president, CEO & founding chairman of U.S. Green Building Council; renowned educator and speaker Dr. Donald Aitken, LEED accredited professional and principal of his own consulting firm; and Megan Susman, an environmental policy specialist in the U.S. EPA’s Development, Community and Environment Division.

With multiple tracks and break-out sessions, conference topics include legislative and regulatory policies affecting green building, financing, effective energy efficiency designs, new human ergonomic technologies, and a LEED-NC training workshop. The conference also features a local green building tour of five sites, a scholarship awards luncheon, and vendor exhibits of green technologies.

"In line with this years' conference goals, we are highlighting the theme of 'Collaboration - Integration - Celebration,'" added Kapp. For more information and to register, visit the conference web site at www.BuildGreenSD.org. You can receive a discount of up to $60 for early registration, which ends midnight Sept. 7.

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Copyright 2004-2005, San Diego Regional Energy Office

 

CCSE Calendar

Green Workshops & Events
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Notable & Quotable

“I have no doubt that we will be successful in harnessing the sun's energy... If sunbeams were weapons of war, we would have had solar energy centuries ago.”

-Sir George Porter