California has a long and extensive history of pursuing energy efficiency and alternative energy development. This act also declared that rapid growth of electricity demand could have negative environmental impacts. In , the state adopted its first Energy Action Plan which described how the state should meet new energy demand.
In order to help meet this goal and facilitate the development and adoption of energy efficiency and alternative energy, the state created additional incentive programs.
As we discuss below, these energy—related incentive programs generally have multiple goals. Such a program would require subsidizing these types of vehicles in order to make them cost competitive with traditional vehicles.
While these programs are supported from different funding sources, the vast majority of total spending is funded from utility ratepayers. In addition, as we discuss, some of these programs have been evaluated in terms of their cost—effectiveness at reducing energy demand. Figure 1 summarizes the different programs, which we describe in more detail below. New Renewable Resources. As previously discussed, energy efficiency typically refers to the installation of energy efficient technologies or measures to reduce energy usage and eliminate energy losses.
Currently, the state has three major incentive programs related to energy efficiency. Public Utilities Code Section In this plan, the commission established goals for achieving all cost—effective energy savings across all major sectors in California, as well as to compel sustained market transformation. Specifically, CPUC has overseen the development and implementation of programs in three—year cycles, such as rebate and incentive programs for residential, commercial, industrial, and agricultural energy users in order to encourage the purchase of energy—efficient appliances and equipment.
These types of programs are intended to achieve both short— and long—term goals. For example, some of the programs seek to implement cost—effective energy efficiency measures that will have an immediate benefit. In comparison, some of the programs seek to achieve long—term market transformation.
A zero net energy building produces as much renewable energy on—site as it uses when measured over a given year. The long—term goal of the program is to transform how new buildings are designed and built, thus creating the potential for substantial energy savings in the long run. As previously discussed, the majority of these funds have been provided over three—year funding cycles. Funding for these programs comes from electricity and natural gas rates that are collected from ratepayer utility bills, as well as a public goods charge that we discuss in detail below.
The Energy Efficiency Financing Program, which is administered by CEC, is a low—interest loan program for public entities such as cities, counties, public schools, special districts, and hospitals to finance energy efficiency and energy generation projects. Specifically, the program provides a fixed interest rate of 1 percent for the term of the loan, which must be repaid within 15 years. In other words, there must be demonstrable net savings associated with the project.
Approved projects have included lighting systems; light—emitting diode LED streetlights and traffic signals; energy management systems and equipment controls; building insulation; and heating, ventilation, and air conditioning equipment. The remaining ARRA funds have been spent on relatively smaller programs. As previously indicated, renewable or alternative energy refers to the use of renewable resources such as wind and solar to produce electricity.
Currently, the state administers four major incentive programs related to renewable energy. The Electric Utility Industry Restructuring Act Chapter , Statutes of [AB , Brulte] , widely referred to as AB , authorized, among other things, the Public Interest Renewable Energy Program to support the operation of existing renewable facilities as well as the development of new and emerging renewable technologies.
Since its inception, the program, which is administered by CEC, has supported the following categories of renewable energy activities:. We note that the public goods charge was not reauthorized by the Legislature and, thus, funding for the program expired at the end of In , the state established a program known as Go Solar California. The goal of the program is to develop 3, megawatts MW of solar generating capacity by Specifically, the program consists of the following two components.
The Go Solar California program is funded through utility rates. Qualifying technologies include wind turbines, waste heat to power technologies, internal combustion engines, gas turbines, fuel cells, and advanced energy storage systems.
Currently, the program also focuses on greenhouse gas GHG reductions. The SGIP is currently funded from utility rates. The CPUC has authorized this particular funding level through By participating in the program, financial institutions receive an initial 15 percent reserve contribution for each qualified loan enrolled in the program.
The goal of the program is to increase access to retrofit financing. The state also administers programs that are intended to expand the use of advanced transportation and low—carbon fuels. Advanced transportation refers to technologies, such as electric vehicles and ultralow emission vehicles, that reduce the use of energy.
Popular Links. Program Information. Appliance Efficiency Program: Outreach and Education. Fact sheets, frequently asked questions, and training tools about the appliance efficiency requirements Title Bright Schools Program. A wide range of technical assistance for California K public school districts. Building Electrification and Storage Program. Building Energy Benchmarking Program. Reporting building characteristics and energy use data, known as benchmarking, is required for certain types of commercial and multifamily buildings.
Building Energy Efficiency Standards - Title Transforming California's buildings through standards for newly constructed buildings and alterations and additions to existing buildings. Providing more than a billion dollars to California's K schools for efficiency and renewable energy projects. Energy Efficiency in Existing Buildings. Achieving greater efficiency in existing buildings will require an array of creative, systemic solutions. The strategic plan will guide these efforts. California is moving to a renewable energy future and new tools and solutions are helping guide that transition.
Enforcement Case Settlements. The Office of Compliance Assistance and Enforcement enforces energy and water efficiency standards for appliances and new building construction. Environmental and Engineering Services. Expert environmental and engineering analyses are essential to creating a safe, reliable, and resilient renewable energy system.
Food Production Investment Program. The Food Production Investment Program supports research to help food producers save energy, save money, and reduce greenhouse gas emissions. Geothermal Grant and Loan Program. The program addresses construction defects and poor equipment installation, including HVAC systems and insulation, by evaluating homes. Local Government Challenge. A state and local government partnership to develop innovative solutions that will improve energy performance in communities.
Low Carbon Fuel Production Program. Funds renewable, low-carbon, commercial-scale fuel production projects. Natural Gas Program. Funds projects to increase the efficiency of and reduces air pollution and greenhouse gas emissions from natural gas transportation fuels and engines.
Power Source Disclosure. Power Source Disclosure provides a power content label for every utility in California that is distributed to all CA ratepayers. Learn how the California Energy Commission is working to reduce impacts to birds and bats from the development or repowering of wind energy projects. Renewable Energy for Agriculture Program. Replacement Tire Efficiency Program. Replacement Tire Efficiency Program for replacement tires for passenger cars and light-duty trucks.
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