United States
        Environmental Protection
        Agency
                                 430S06002
Clean Energy-Environment Guide to Action
          »* *
Action Steps for States

 xecutive Summary

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Clean Energy-Environment Guide to Action

         Policies, Best Practices,
        and Action Steps for States

            Executive Summary
  April 2006

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Overview
Across the country, states are using clean energy
policies to help meet their expanding energy demand
in a clean, low-cost, reliable manner. In addition, a
growing number of states are interested in learning
about successful clean energy strategies and their
economic and environmental benefits.

The U.S. Environmental Protection Agency's (EPA's)
Clean Energy-Environment Guide to Action is
designed to share the experiences and lessons
learned from successful state clean energy policies
and help states evaluate these options, programs,
and policies to determine what is most appropriate
for them. The Guide to Action describes 16 clean
energy policies, details the best practices and attrib-
utes of effective state programs, and provides
resources for more  information. The policies were
selected from among a larger universe of clean
energy strategies because of their proven effective-
ness and their successful implementation.

States that are developing new clean energy programs or
enhancing existing ones can use the Guide to Action to:

• Develop clean energy programs and policies appro-
  priate to their state.
• Identify the roles and responsibilities of key deci-
  sionmakers-such as environmental regulators,
  state legislatures, public utility commissioners, and
  state energy offices.
• Access and apply technical assistance resources,
  models, and tools available for state-specific
  analyses and program implementation.
• Learn from each  other as they develop their own
  clean energy programs and policies.
                                                                                    Clean EnergyEnvironment
                                                                                    STATE PARTNERSHIP
Executive  Summary
 EPA's Clean Energy-Environment State
 Partnership Program

 The Clean Energy-Environment State Partnership
 Program is a voluntary program designed to help
 states analyze and implement available policies  and
 programs that effectively integrate clean energy into a
 low-cost, clean, reliable energy system for the state.
 States participating in the Clean Energy-Environment
 State Partnership Program will use the Guide to Action
 to develop a Clean Energy-Environment State Action
 Plan for implementing existing and new energy policies
 and programs to increase their use of clean energy.
 The EPA Clean Energy-Environment Guide to Action
 identifies and describes 16 clean energy policies and
 strategies that are delivering economic and environmen-
 tal results for states. These policies focus on clean ener-
 gy opportunities for public entities, industry, electricity
 generators  and suppliers, homes, and businesses. There
 are also opportunities for states to promote clean ener-
 gy in the transportation sector. These policies and pro-
 grams are beyond the scope of the current Guide to
 Action but may be addressed in future editions.
jro-
'
Why Clean Energy?
Clean energy offers a cost-effective way to meet our
nation's growing demand for electricity and natural
gas while reducing emissions of air pollutants and
greenhouse gases, lowering energy costs, and
improving the reliability and security of the energy
system.

States and the U.S. energy industry face multiple
energy and  environmental challenges in  providing
affordable, clean, and reliable energy in today's com-
plex energy markets. In terms of energy challenges,
total U.S. energy demand is expected to  increase by
more than one-third by 2025, with electricity
    Executive Summary

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                 EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
         demand rising by almost 40% (EIA 2005a). This
         growth stresses current systems, reduces reliability,
         and requires substantial new investment in  system
         expansions. In addition, higher natural gas prices
         increase energy costs for households and businesses
         and raise the financial risk associated with the
         development of new generation based on gas tech-
         nologies. Environmental challenges stem from fossil
         fuel-based electricity generation, which is a major
         source of air  pollutants that form  ground-level ozone
         and fine particulate matter, as well as greenhouse
         gases. Although emission levels are declining, high
         pollution levels persist in many parts of the United
         States-nearly half of the U.S. population  lives in
         counties where air quality sometimes exceeds the
         federal 8-hour standard for ozone (EPA 2005a)J

         Clean energy includes demand- and supply-side
         resources that deliver clean, reliable, and low-cost
         ways to meet energy  demand  and  reduce  peak elec-
         tricity system loads. Energy efficiency measures
         reduce demand for energy generation, which reduces
          What Is Clean Energy?

          Clean energy includes energy efficiency and clean
          energy supply, which refers to clean distributed gener-
          ation and renewable energy.
          Energy efficiency (EE) reduces demand for energy and
          peak electricity system loads. Common energy effi-
          ciency measures include hundreds of technologies
          and processes for practically all end uses across  all
          sectors of the economy.
          Renewable energy (RE) is partially or entirely generat-
          ed from non-fossil energy sources. Renewable energy
          definitions vary by state, but usually include wind,
          solar, and geothermal energy; some states might also
          include low-impact or small hydro, biomass, biogas,
          and waste-to-energy.
          Combined heat and power (CHP), also known as cogen-
          eration, is a clean, efficient approach to generating
          electric and thermal energy from a single fuel source.
          Clean distributed generation (DG) refers to non-
          centralized—usually small-scale—renewable energy
          and CHP.
the amount of fuel needed to power our daily lives.
Renewable energy sources avoid the use of fossil
fuels, and combined heat and power (CHP) can pro-
vide much greater energy output for the amount of
fuel used.

States are finding clean energy to be cost-competitive
with traditional sources of generation. Figure ES.1
illustrates the comparative cost of electricity from a
range of sources, including energy efficiency and
wind. More specifically, states' experiences with clean
energy programs and policies have shown that:

•  Well-Designed Energy Efficiency Programs Cost
   Less Than Supplying New Generation from Power
   Plants. Energy efficiency programs are saving
   energy at an average life cycle cost of about $0.03

Figure ES.1: Clean Energy Is Competitive with
Fossil Fuel and Nuclear Generation Technologies
       10.0
  | Capital Costs  | O&M Costs Q Fuel Costs Q Transmission Costs

Note: The costs for nuclear, coal, wind, and gas combined cycle are
projections for the cost of producing energy from new plants in 2010.
The cost for energy efficiency is a median figure based on recent
reports of the cost of energy saved over a portfolio of programs in lead-
ing states.

Sources: ACEEE 2004, EIA 2004.
         1  In April 2005,134 million people were living in 470 counties where the air quality sometimes exceeds the federal 8-hour standard for ozone.
           Seventy-five million people were living in more than 200 counties that do not meet the PM2.5 standard (EPA 2005a).
                                                                                                   Executive Summary

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                                                       EPA Clean Energy-Environment Guide to Action
                                                                                                 Clean EnergyEnriranmant
                                                                                                 STATE PARTNERSHIP
Energy Savings Potential from State Clean
Energy Actions
'
ih
The potential energy savings achievable through
state actions is significant. EPA estimates that if each
state were to implement cost-effective clean energy-
environment policies, the expected growth in demand
for electricity could be cut in half by 2025, and more
demand could be met through cleaner energy supply.
This would mean annual savings of more than 900 bil-
lion kilowatt-hours (kWh) and $70 billion in energy
costs by 2025, while preventing the need for more
than 300 power plants and reducing greenhouse gas
emissions by an amount equivalent to emissions from
80 million of today's vehicles.3

a This estimate is based on EPA analysis of independent evaluations
 of the potential for cost-effective energy efficiency investments to
 help meet the nation's growing demand for energy and electricity.
 Evaluations include a 2004 meta-analysis that examined the results
 of 11 different studies that estimated the potential for energy effi-
 ciency in various states and regions in the country and for the
 United States as a whole (Nadel et al. 2004).
 per kilowatt-hour (kWh) saved, which is 50% to
 75% of the typical cost of new power sources and
 less than one-half of the average retail price of
 electricity (ACEEE 2004a, EIA 2005b).
 There Is Significant Potential for Additional Cost-
 Effective Investment in Energy Efficiency. State and
 regional energy efficiency potential studies have
 found that adoption of economically feasible and
 technically achievable, but as yet untapped, energy
 efficiency could yield a 24% savings in total elec-
 tricity demand nationwide by 2025, which is
 equivalent to a 50% or greater reduction in elec-
 tricity growth (SWEEP 2002, Nadel et al. 2004,
 NEEP 2005, NWPCC 2005). Many states could
 capture a greater portion of achievable energy
 potential and lower energy costs for consumers
 and businesses by increasing spending on cost-
 effective energy efficiency.
 Renewable Energy Technologies Are Increasingly
 Competitive with Conventional Generation.
 Renewable energy continues to grow rapidly, in
 part because  state policies are helping increase its
 cost competitiveness.  For example, depending on
 geographic location, wind energy technology can
   produce power at about $0.04 to $0.06/kWh,
   which is competitive with conventional natural
   gas combined cycle generation (Navigant 2003). In
   2004, approximately 18 gigawatts (GW)  of non-
   hydro renewable capacity was operational in the
   United States, representing about 2% of total U.S.
   electricity generation capacity (EIA 2005c).
•  CHP Systems Are Substantially More Efficient Than
   Traditional Electricity Generation Purchased from
   the Grid and for Meeting Thermal Needs with a
   Boiler or Process Heater Alone. CHP systems
   achieve fuel  use efficiencies that typically range
   between 60% and 75%, a significant improvement
   over the average efficiency of separately generat-
   ed heat and power. In 2004, approximately 80 GW
   of CHP were operational in the United States (EPA
   2004a).

States are also  using clean energy to promote  eco-
nomic development by reducing  energy costs, creat-
ing jobs, and attracting business investments in
clean energy technologies and services. For example,
investment in energy efficiency leads to energy bill
savings, with those savings being reinvested in  the
economy and supporting more jobs than  if the  ener-
gy were purchased (SWEEP 2002). Clean energy proj-
ects create short-term construction and installation
jobs and provide numerous long-term opportunities
associated with new clean energy  businesses.

Clean energy addresses environmental  challenges by
helping  improve air quality. Energy efficiency, renew-
able resources,  and clean energy technologies such
as CHP systems can reduce air pollution and green-
house gas emissions. States are implementing a
range of innovative approaches that are achieving
quantifiable reductions in air pollutants through
clean energy programs, policies,  and measures.
  Executive Summary

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                EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
        Opportunities for State Action
        State governments are increasingly developing poli-
        cies and programs that address their energy chal-
        lenges and spur greater investment in energy effi-
        ciency, renewable energy, and clean distributed
        resources. For example, states are:

        •  Leading by example by establishing programs that
           achieve substantial energy cost savings within
           their own state facilities, fleets, and operations
           and encouraging the broader adoption of clean
           energy by the  public and private  sectors. State
           governments across the country are collaborating
           with state agencies, local governments, and
           schools to identify and capture energy savings
           within their facilities and operations, purchase or
           generate renewable energy, and use clean DG/CHP
           in their facilities.
        •  Establishing ratepayer-funded  energy efficiency
           programs (e.g., public benefits  funds) to help over-
           come a variety of first-cost, informational, split-
           incentive, and  other market barriers that limit
           greater reliance on energy efficiency. Seventeen
           states and Washington, D.C. have adopted public
           benefits funds (PBFs) for energy efficiency, and 16
           states have developed PBFs for clean energy sup-
           ply (ACEEE 2004b, ACEEE 2004c, UCS 2004, DSIRE
           2005, Navigant 2005).
Adopting state minimum appliance efficiency stan-
dards for products not covered by the federal gov-
ernment that yield net cost savings to businesses
and consumers. Ten states have adopted appliance
standards covering 36 types of appliances (Delaski
2005, Nadel et al. 2005).
Establishing renewable portfolio standards (RPS)
that direct electric utilities and other retail electric
providers to supply a specified  minimum percent-
age (or absolute amount) of customer load with
eligible sources of renewable electricity. Twenty-
one states and Washington, D.C. have adopted RPS
requirements, which are expected  to generate
more than 26,000 MW of new renewable energy
capacity by 2015  (Navigant 2005).
Reviewing utility incentives and planning processes
and designing policies that accurately value ener-
gy efficiency, renewables, and distributed
resources in a way that "levels the playing field"
so public utility commissions and consumers can
make  fair, economically based comparisons
between clean energy and other resources. More
than 12 states have developed approaches that
remove disincentives for utilities to invest in
demand-side resources.
                                                                                             Executive Summary

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                                                        EPA Clean Energy-Environment Guide to Action
                                                                                                  Clean EnergyEnriranmant
                                                                                                  STATE PARTNERSHIP
The Guide  to Action
The Guide to Action presents a menu of 16 clean
energy strategies that states can review and choose
from when developing their clean energy policies or
Clean Energy-Environment Action Plans (see What
States Can Do, page ES-21, for additional informa-
tion about Clean Energy-Environment Action Plans).
States have found that a combination of clean
energy policies, developed as a coordinated package,
is the most effective approach. Typically, states have
chosen policies to address each of the clean energy
areas: energy efficiency (EE), renewable energy (RE),
and clean DG.

Table  ES.1 provides an overview of the policies
addressed in the Guide to Action and the type(s) of
clean  energy targeted by each policy. These policies
were selected for inclusion  in the  Guide to Action
because of their proven effectiveness, their ability to
help overcome the barriers  states face as they pro-
mote clean energy, and their successful implementa-
tion by a number of states. The information present-
ed about each policy is based on proven models,
state experiences, and lessons learned.

Table  ES.2 presents additional detail about each of
the 16 policies, including information on specific
approaches states can use to implement each policy,
key design  issues and resources, and  states that can
serve as examples of each  policy. (Note that many
other states have also implemented  these policies;
for more information, see the policy sections in  the
Guide to Action.) A brief description  of each of the
16 policies, including highlights of state experiences
with each policy, follows Table ES.2.
Table ES.1: Summary of Clean Energy Policies by
Type of Clean Energy
                                Type of Clean Energy
                       Guide to               Clean
                        Action                DG/
    Clean Energy Policy    Section     EE    RE    CHP
         State Planning and Incentive Structures
Lead by Example
State and Regional Energy
Planning
Determining the Air Quality
Benefits of Clean Energy
Funding and Incentives
3.1
3.2
3.3
3.4
•
•
•
•
•
•
•
•
•
•
•
•
Energy Efficiency Actions
Energy Efficiency Portfolio
Standards (EEPS)
Public Benefits Funds (PBFs)
for Energy Efficiency
Building Codes for Energy
Efficiency
State Appliance Efficiency
Standards
4.1
4.2
4.3
4.4
•
•
•
•








Energy Supply Actions (Renewable Energy
and Combined Heat and Power)
Renewable Portfolio
Standards (RPS)
Public Benefits
Funds (PBF) for State Clean
Energy Supply Programs
Output-Based Environmental
Regulations to Support Clean
Energy Supply
Interconnection Standards
Fostering Green Power
Markets
5.1
5.2
5.3
5.4
5.5





•
•
•
•
•
•
•
•
•
•
Utility Planning and Incentive Structures
Portfolio Management
Strategies
Utility Incentives for Demand-
Side Resources
Emerging Approaches:
Removing Unintended Utility
Rate Barriers to Distributed
Generation
6.1
6.2
6.3
•
•

•
•
•
•
•
•
    Executive Summary

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                   EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
Table ES.2: Summary of Clean Energy Policies
    Policy Description
 States lead by example
 by establishing pro-
 grams that achieve sub-
 stantial energy cost sav-
 ings within their own
 operations, buildings,
 and fleets and demon-
 strate the feasibility and
 benefits of clean energy
 to Hie larger market
 Energy planning at a
 state or regional level
 can be an effective
 means for ensuring that
 clean energy is consid-
 ered and used as an
 energy resource to help
 states address their
 multiple energy, eco-
 nomic, and environmen-
 tal goals.
 States estimate the
 emission reductions
 from their clean energy
 programs, incorporate
 those reductions into air
 quality programs, and
 evaluate and report the
 emission reduction ben-
 efits of their clean ener-
 gy programs and poli-
 cies.
     Specific Approaches
         Design Issues
                                                 State Planning and Incentive Structures
                                                           Section 3.1 Lead by Example
Energy savings targets for
public buildings.
Renewable and energy efficiency
purchase commitments for state
facilities.
State loan and incentive programs
for public buildings.
Energy performance contracting.
Technical support and training.
State clean energy planning.
Understand state's own energy use
and then set aggressive goals.
Collaborate across public agencies,
local governments, schools, private
sector, and nonprofit organizations.
Identify funding sources and develop
funding mechanisms.
Measure, verify, and communicate
energy savings.
CA, CO, IA, NH, NJ,
NY, OR,TX
                                                  Section 3.2 State and Regional Energy Planning
Clean energy plan.
Clean energy included within a
comprehensive state energy plan.
Planning conducted by energy
providers.
Analyze a full range of impacts for a
variety of policy scenarios.
Establish specific quantitative and
other goals; monitor and report
progress regularly.
Linkthe plan to action by developing
specific steps for plan adoption and
implementation, and making these
actions enforceable where  appropri-
ate.
CA, CT, NM, NY, OR,
Northwest Power
Planning and
Conservation
Council, New
England Governors'
Conference,
Western Governors'
Association,
Western Interstate
Energy Board
                                          Section 3.3 Determining the Air Quality Benefits of Clean Energy
Incorporating clean energy into air
quality plans and long-term utility
planning requirements.
Developing set-asides for energy
efficiency and renewable energy
projects.
Tracking and reporting  emission
reductions.
Choose the most appropriate method-
ology for the given purpose, geo-
graphic scope, time scale, magnitude
of energy savings, available
resources, and available data.
Make all assumptions and inputs
transparent; identify how to address
electricity dispatch, imports and
exports, line losses, and transmission
constraints.
Understand and account for how the
results will interact with other pro-
grams.
LA (local), MD
(local), TX,WI,
Western Regional
Air Partnership
Details about state-
specific "lead by
example" program
design.
Evaluation guidelines
and information
resources.
Examples of legislation
and executive orders
passed by states relat-
ed to lead  by example
actions.
Design information.
Benefits of energy
plans.
Program implementa-
tion and evaluation.
Links to existing state
and regional energy
plans.
References to articles
on energy planning.
Information about EPA
guidance and analy-
ses.
General and specific
information about
quantification methods
and tools.
Articles about quantify-
ing emission reduc-
tions.
State examples.
                                                                                                                      (continued on next page)
                                                                                                                  Executive Summary

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                                                                             EPA Clean Energy-Environment Guide to Action
                                                                                                                                Clean EnergyEnriranmant
                                                                                                                                STATE  PARTNERSHIP
Table ES.2: Summary of Clean Energy Policies (continued)
Policy Description         Specific Approaches
                                                                      Design Issues
                                          State Planning and Incentive Structures (continued)
                                                       Section 3.4 Funding and Incentives
 States implement a range of
 targeted funding and incen-
 tives strategies that encour-
 age governments, business-
 es, and consumers to save
 energy through cost-effective
 clean energy investments.
 Between 20 and 30 states
 have revolving loan funds for
 energy efficiency, tax incen-
 tives for renewable energy,
 grants for renewable energy,
 or rebates for renewable
 energy.
                           Revolving loan funds.
                           Energy performance con-
                           tracting.
                           Tax incentives.
                           Grants, rebates, and gener-
                           ation incentives.
                           NOX set-asides for energy
                           efficiency and renewable
                           energy projects.
                           Supplemental Environmental
                           Projects (SEPs).
Develop specific target markets and
technologies based on technical and
economic analysis.
Use financing and incentives as part of
a broader package of services designed
to encourage investments.
Establish specific technical and
financial criteria for clean energy
investments.
Track program participation, costs, and
energy savings to enable evaluation
and improvement.
CA, CO, I A, MT, NY,
OR,TX,WA
Program design infor-
mation, including fund-
ing sources, levels, and
duration.
Implementation and
evaluation information.
Information about fed-
eral incentives and
existing state pro-
grams.
Examples of legislation.
                                                         Energy Efficiency Actions
                                             Section 4.1 Energy Efficiency Portfolio Standards (EEPS)
 Similar to Renewable
 Portfolio Standards (see
 Section 5.1), EEPS direct
 energy providers to meet a
 specific portion of their elec-
 tricity demand through ener-
 gy efficiency. Seven states
 have direct or indirect EEPS
 requirements.
 PBFs for energy efficiency
 are pools of resources used
 by states to invest in energy
 efficiency programs and
 projects and are typically
 created by levying a small
 charge on customers' elec-
 tricity bills. Seventeen states
 and Washington, D.C.  have
 established PBFs for energy
 efficiency.
                           Energy efficiency targets for
                           energy providers as a per-
                           centage of load growth,
                           base year sales, or fixed
                           energy savings (e.g., kWh).
Use economic potential studies and       CA, IL, NJ, NV, PA,
other analyses to help establish the       TX
energy savings target.
State the target clearly (e.g., as a per-
centage of base year energy sales) and
establish a robust measurement and
verification process.
Ensure workable funding mechanisms
are available to meet the goal.
                                           Section 4.2 Public Benefits Funds (PBFs) for Energy Efficiency
                           Funds for efficiency pro-
                           grams based on a system-
                           wide charge (mills per kWh).
                           Grants, rebates, and loans.
                           Technical assistance, edu-
                           cation, and training support
                           for energy efficiency invest-
                           ments.
Establish funding via a universal, non-
bypassable charge at a rate that cap-
tures economic energy efficiency
potential, but is not a cap on invest-
ments.
Set the duration for an extended period
of time (e.g., five to 10 years) to provide
continuity and certainty for investors.
Select the most appropriate administer-
ing organization forthe given conditions
(e.g., utilities, state agencies, independ-
ent organizations).
Regularly evaluate the program's quanti-
tative impacts (e.g., energy saved, emis-
sions avoided, dollars saved, jobs creat-
ed) and the effectiveness of program
operations and delivery.
CA, NY, OR, Wl
                       Information about state
                       experiences.
                       Information about
                       measurement and veri-
                       fication.
                       Examples of legislation
                       and PUC rulemakings.
Descriptions of cost-
effectiveness tests and
information on energy
and cost savings.
Information about PBF
program designs, fund-
ing levels, and evalua-
tion methods.
Examples of legislation
and PUC rulemakings.
                                                                                                                      (continued on next page)
              Executive Summary

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                   EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
Table ES.2: Summary of Clean Energy Policies (continued)
     Policy Description
    Specific
  Approaches
                Design Issues
                                                   Energy Efficiency Actions (continued)
                                                  Section 4.3 Building Codes for Energy Efficiency
 Building energy codes estab-
 lish energy standards for resi-
 dential and commercial build-
 ings, thereby setting a mini-
 mum level of energy efficiency
 and locking in future energy
 savings at the time of new con-
 struction or renovation. More
 than 40 states have implement-
 ed some level of building codes
 for residential buildings and/or
 commercial buildings.
 State appliance efficiency
 standards set minimum ener-
 gy efficiency standards for
 equipment and appliances
 that are not covered by fed-
 eral efficiency standards. Ten
 states have adopted appli-
 ance standards.
Minimum energy effi-
ciency requirements
for residential and
commercial build-
ings.
Periodic review and
updates to existing
codes.
Code implementation,
evaluation, and com-
pliance assistance.
Develop effective program implementation, evaluation,
and enforcement approaches.
Work collaboratively with builders, developers, and
building owners to ensure compliance.
Establish requirements and process for periodically
reviewing and updating codes to reflect changes in
building technology and design.
Promote "beyond code" building programs to achieve
additional cost-effective energy efficiency.
  State
Examples
AZ, CA,
OR,TX,
WA
  Key Resources in
 the Guide to Action
Information about
individual state codes.
Compliance and analytic
tools.
Examples of code
language.
                                                  Section 4.4 State Appliance Efficiency Standards
Minimum energy effi-
ciency levels for con-
sumer products and
commercial equip-
ment.
Periodic evaluation
and review of stan-
dards, markets, and
product applications.
Identify the products covered by federal law and care-
fully define the set of appliances to be covered by the
state standard.
Use established test methods, as developed by federal
agencies, other states, or industry associations, to set
efficiency levels for the state appliance standards.
Consider implementation issues, including
product certification, labeling requirements, and
enforcement.
CA, CT,
NJ, NY
General and state-specific
information about standards.
Definitions of products cov-
ered by federal and state
standards.
Examples of enabling legis-
lation, state rulemakings,
and requests for preemp-
tion waivers.
                                                            Energy Supply Actions
                                                  Section 5.1 Renewable Portfolio Standards (RPS)
 RPS establish requirements
 for electric utilities and other
 retail electric providers to
 serve a specified percentage
 or amount of customer load
 with eligible resources.
 Twenty-one states and
 Washington, D.C. have adopt-
 ed RPS.
Promoting specified
technologies through
"technology tiers"
and "credit multipli-
ers."
Alternative compli-
ance payments.
Renewable Energy
Certificates (RECs)
trading.
Develop broad support for an RPS, including top-level
support of the governor and/or legislature by performing
studies that analyze job creation, economic develop-
ment, and customer bill impacts.
Specify which renewable energy technologies and
resources will be eligible, based on clearly articulated
goals and objectives.
Consider using energy generation (not installed capac-
ity) as a target, make compliance mandatory for all
retail sellers, allow utility cost recovery, establish cost
caps, and considerflexible compliance mechanisms.
AZ, CA,
MA, TX,
Wl
                                   Section 5.2 Public Benefits Funds (PBFs) for State Clean Energy Supply Programs
 PBFs are a pool of resources
 used by states to invest in
 clean energy supply projects
 and are typically created by
 levying a small charge on
 customers' electricity bills.
 Sixteen states have estab-
 lished PBFs for clean energy
 supply.
Funds for emerging
and commercially
competitive technolo-
gies and clean energy
market development
programs based on a
system-wide charge
(mills per kWh).
Grants, rebates, and
generation incentives.
Protect funding from being diverted for other uses.
Considerthe importance of technology stages.
Ensure that PBFs support the state's energy and envi-
ronmental goals and work in concert with other state
renewable energy initiatives (e.g., RPS and tax credits).
CA, CT,
MA, NJ,
NY, OH
Information on state RPS
requirements and eligible
technologies.
Information on selected
state RPS program
designs.
Description of renewable
energy credits and power
markets.
Information on federal
resources.
General and specific infor-
mation on state approach-
es and models.
Information on funding levels
and technologies supported
by PBFs.
State examples.
                                                                                                                       (continued on next page)
                                                                                                                  Executive Summary

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                                                                            EPA Clean Energy-Environment Guide to Action
                                                                                                                               Clean EnergyEnriranmant
                                                                                                                               STATE  PARTNERSHIP
Table ES.2: Summary of Clean Energy Policies (continued)
     Policy Description
 Output-based environmen-
 tal regulations establish
 emissions limits per unit of
 productive energy output
 of a process (i.e., electrici-
 ty, thermal energy, or shaft
 power), with Ihe goal of
 encouraging fuel conver-
 sion efficiency and renew-
 able energy as air pollution
 control measures. Twelve
 states have established
 output-based environmen-
 tal regulations.
 Standard interconnection
 rules establish processes
 and technical require-
 ments that apply to utilities
 within the state and
 reduce uncertainty and
 delays that clean DG sys-
 tems can encounter when
 obtaining electric grid con-
 nection. Fourteen states
 have standard intercon-
 nection rules, and 39
 states offer net metering.
 States play a key role in
 fostering the development
 of voluntary green power
 markets that deliver cost-
 competitive, environmen-
 tally beneficial renewable
 energy resources by giving
 customers the opportunity
 to purchase clean energy.
 Green power is available
 in more than 40 states.
    Specific Approaches
            Design Issues
  State
 Examples
                                                    Energy Supply Actions (continued)
                                Section 5.3 Output Based Environmental Regulations to Support Clean Energy Supply
Conventional emission limits
using an output formula.
Special regulations for small dis-
tributed generators that are out-
put based.
Output-based allowance alloca-
tion methods in a cap and trade
program.
Output-based allowance alloca-
tion set-asides for energy effi-
ciency and renewable energy.
Multi-pollutant emission
regulations using an output-based
format.
Determine the types of DG and CHP tech-
nologies and applications that may be
affected and if the regulation needs to
address any specific technology issues.
Gather/review available output-based emis-
sions data for regulated sources.
Alternatively, convert available data to out-
put-based format.
Evaluate alternative approaches to account
for multiple outputs of CHP units.
                                                      Section 5.4 Interconnection Standards
Standard interconnection rules
for DG systems through defined
application processes and techni-
cal requirements.
Net metering, which defines
application processes and techni-
cal requirements, typically for
smaller projects.
Develop standards that cover the scope of
the desired DG technologies, generator
types, sizes, and distribution system types.
Address all components of the interconnec-
tion process, including  issues related to the
application process and technical require-
ments.
Create a streamlined process for generators
that are  certified compliant with technical
standards such as IEEE Standard 1547 and
UL Standard 1741.
Consider adopting portions of national mod-
els and successful programs in other states.
                                                   Section 5.5 Fostering Green Power Markets
Customer access to green power
markets.
Green pricing tariffs.
Green "check-off" programs.
Establishing quantitative goals
and objectives for green power
markets.
Encourage new resources to ensure that
renewable benefits are realized.
Create real value for green power cus-
tomers (e.g., by exempting them from utility
fuel adjustment charges or developing
recognition  programs for commercial cus-
tomers).
Create programs with sufficiently long time
horizons to encourage long-term power
contracts.
Determine the appropriate relationship
between green power purchases and  com-
pliance with RPS.
CT, IN, MA,
TX
MA, NJ,
NY,TX
CT, MA,
NJ, NM,
WA
   Key Resources in
  the Guide to Action
Information on federal and
other resources.
Articles on output-based
regulation.
Examples of federal and
state legislation and pro-
gram proposals.
State-by-state assess-
ment and references.
Information on federal and
other resources.
National standards organ-
izations.
Examples of standard
interconnection rules.
Information about state
programs.
Examples of state
legislation and regula-
tions.
Information on federal and
other resources.
                                                                                                                     (continued on next page)
              Executive Summary

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                   EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
Table ES.2: Summary of Clean Energy Policies (continued)
     Policy Description
    Specific
  Approaches
                                         Design Issues
                                                  Utility Planning and Incentive Structures
    State       Key Resources in
  Examples    the Guide to Action
 Portfolio management strate-
 gies include energy resource
 planning approaches that
 place a broad array of sup-
 ply and demand options on a
 level playing field when com-
 paring and evaluating them
 in terms of their ability to
 meet projected energy
 demand and manage uncer-
 tainty.
                                                    Section 6.1 Portfolio Management Strategies
Energy resource       •  Identify state policy goals for portfolio management, such
planning and pro-        as cost, environmental impacts, resource diversity, and
curement.              risk management.
                       Identify the entities that procure and plan for energy sup-
                       ply, transmission, and distribution.
                       Determine the appropriate process for acquiring and com-
                       paring  alternative resource options.
                       Establish  clear roles for utility and regulatory authorities in
                       selecting  evaluation criteria, reviewing proposals, and
                       choosing  final resources.
                       Require that all demand and supply resources be consid-
                       ered in meeting identified needs.
Integrated resource
planning (IRP).
Retail choice portfo-
lio management.
CA, CT, IA, MT,
NV, OR, PA,
VT, Idaho
Power,
Northwest
Power and
Conservation
Council,
PacifiCorp,
PugetSound
Energy
                                              Section 6.2 Utility Incentives for Demand Side Resources
 A number of approaches—
 including decoupling and per-
 formance incentives—remove
 disincentives for utilities to
 consider energy efficiency
 and clean distributed genera-
 tion equally with traditional
 electricity generation invest-
 ments when making electricity
 market resource planning
 decisions.
Decoupling utility
profits from sales
volume.
Program cost recov-
ery.
Shareholder
performance
incentives.
                       Understand state utility ratemaking and revenue require-
                       ments.
                       Determine if utility rates create financial disincentives for
                       energy efficiency and clean distributed generation.
                       Gather information and stakeholder input on utility incen-
                       tive options.
                       Devise an implementation plan to remove disincentives.
AZ, CA, CT, ID,
MA, MD, ME,
MN, NM, NV,
NY, OR,WA
                         Section 6.3 Emerging Approaches: Removing Unintended Utility Rate Barriers to Distributed Generation
 Electric and natural gas
 rates, set by Public Utility
 Commissions, can be
 designed to support clean
 DG projects and avoid unin-
 tended barriers, while also
 providing appropriate cost
 recovery for utility services
 on which consumers
 depend.
Utility ratemaking
and revenue require-
ments.
Revised standby rate
structures.
Exit fee exemptions.
Natural gas rates for
DG and/or CHR
In regulated markets,
help generators and
utilities establish
appropriate buyback
rates.
                       Ensure that state PUC commissioners and staff have cur-
                       rent and accurate information on rate issues for CHP and
                       renewables and their potential benefits for the generation
                       system.
                       Open a generic PUC docket, if needed, to explore the actu-
                       al costs and system benefits of onsite clean energy supply
                       and rate reasonableness.
                       Engage energy users to accurately examine the costs and
                       system benefits of existing and planned onsite clean DG.
Exit Fees:
CA, IL, MA
Standby
Rates:
CA, NY
Gas Rates:
NY
Design guidance.
Information on pro-
gram implementa-
tion and evaluation.
State and regional
examples and links
to key references.
Design guidance.
References to state
incentive regulation
efforts.
References to arti-
cles and Web sites
on utility incentives.
Examples of state
legislation and
rules.
Information on fed-
eral resources.
Articles about
ratemaking.
                                                                                                                 Executive Summary

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                                                         EPA Clean Energy-Environment Guide to Action
                                                                                                    Clean EnergyEnriranmant
                                                                                                    STATE PARTNERSHIP
State Planning and Incentive
Structures
States are substantially reducing energy costs and
emissions and are supporting in-state economic
development through clean energy policies. The
Guide to Action provides resources on the following
policies that states have successfully implemented to
promote clean energy within their own  operations,
through state and regional energy and air quality
planning efforts, and funding and incentive pro-
grams.

Lead by Example
State and local governments are implementing a
range of "lead by example" programs and policies
that advance the use of clean energy within their
own facilities, fleets, and operations, substantially
reducing their energy bills. These bills are sizable-
states are responsible for more than 16 billion  square
feet of building space and  spend more than $11 bil-
lion  annually on building energy costs, which can
account for as much as 10% of a typical govern-
ment's annual operating budget (DOE 2005a). In
addition to achieving energy savings within state
 States Are Leading by Example
    New York's "Green and Clean" State Buildings and
    Vehicles, administered by the New York State Energy
    Research and Development Authority (NYSERDA),
    sets aggressive targets for reducing energy use in
    state buildings and vehicles, green power purchas-
    ing, and purchasing energy efficient products.
    Iowa's Executive Order Number 41 directs state agen-
    cies to obtain at least 10% of their electricity from
    renewable energy sources by 2010. To satisfy this
    requirement, agencies may generate their own renew-
    able energy or may participate in their utility's green
    power programs (Iowa 2005).
    New Hampshire's Executive Order 2005-4 requires
    state agencies to  reduce energy use by 10% and
    purchase ENERGY STAR equipment. Executive Order
    2004-7 requires state staff to conduct an inventory of
    annual energy use by all state facilities, using EPA's
    Energy Performance Rating System to assess ener-
    gy efficiency, and to conduct audits to identify ener-
    gy efficiency opportunities in state facilities.
facilities, lead by example initiatives promote the
adoption of clean energy technologies by the public
and private  sectors.

States have initiated lead by example initiatives
through executive orders, legislation, and agency
rulemakings. Typically, these  initiatives are coordinat-
ed by the state energy office, and  involve multiple
agencies and programs across state and  local gov-
ernment and other public agencies.

State and Regional Energy Planning
Energy planning at a state or regional  level is an
effective means for ensuring that clean energy is
considered  and used as an energy  resource to help
states address their multiple energy and  nonenergy


 States and Regions Are Developing Energy Plans

 •  California's Integrated Energy Policy Report (IEPR)
    is an extensive assessment prepared biennially at
    the direction of the state legislature. It includes pol-
    icy recommendations for addressing multiple goals,
    including conserving resources; protecting the
    environment; ensuring reliable, secure, and diverse
    energy resources; enhancing the state's economy;
    and protecting public health and  safety. The IEPR is
    complimented by a brief "blueprint" for energy-
    related actions, the California "Energy Action Plan"
    (CEC2005a).
 •  The Connecticut Energy Advisory Board develops
    an Annual Energy Plan that includes specific strate-
    gies to support energy efficiency and renewable
    resources based on a detailed assessment of sup-
    ply and demand options and related policy opportu-
    nities and challenges. The  Plan describes how pro-
    grams and policies across  the state help advance
    Connecticut's energy and other goals and includes
    a  progress report on the Connecticut Climate
    Change Action Plan, as a significant energy-related
    initiative (CEAB 2005).
 •  The Western Governors'Association's Clean and
    Diversified Energy Advisory Committee (CDEAC),
    created by the governors of 18 western states,
    recently undertook an extensive analysis to explore
    how to meet a regional goal of developing 30,000
    MW of clean energy by 2015 and increasing energy
    efficiency 20% by 2020 (WGA 2005).
    Executive Summary

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                EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
        challenges. Energy planning helps support a cost-
        effective response to projected  load growth (possibly
        avoiding the  need for new  power plants and infra-
        structure); improves system reliability, supply diversi-
        ty, and security; reduces energy prices and  price
        volatility; and reduces the environmental impact of
        energy generation. Energy plans are usually devel-
        oped by one or more state  agencies. Typically, the
        state energy office leads the planning effort, and a
        variety of public and private sector stakeholders play
        a role in developing the plan or providing input.

        Energy planning takes place in  several contexts-it
        can be part of a broad,  multi-faceted strategy (e.g.,
        the New York State Energy Plan),  or a more targeted
        effort that specifically addresses one or more clean
        energy goals  (e.g., the Illinois Sustainable Energy
        Plan). At the  regional level,  planning typically occurs
        in two separate but related  forums. In one  approach,
        government or quasi-government entities (e.g., gov-
        ernors' associations) focus on developing broad
        regional  policy approaches. Alternatively, power sys-
        tem operators engage in rigorous power system
        planning (with  input from states) that focuses on
        providing reliable and adequate power supplies with-
        in their region. Both forums offer opportunities to
        consider clean energy as a  way of meeting  future
        energy demand.

        Determining the Air  Quality Benefits  of Clean
        Energy
        Meeting energy demand through clean energy
        sources can reduce  emissions from fossil-fueled gen-
        erators and provide many emissions benefits. States
        are employing a number of methods to quantify the
        emission reductions from their  clean energy pro-
        grams and policies and  incorporate those reductions
        into documentation for  air quality planning efforts,
        energy planning, and clean energy program results.

        Quantifying emission reductions from clean energy
        options provides states with additional information
        to use when selecting among alternative clean ener-
        gy solutions,  determining the best way to design
        clean energy  programs to comply with  existing and
        prospective regulations, and determining the best
        investment opportunities for a  specific clean  energy
 States Are Identifying the Air Quality Benefits
 of Clean Energy
 • The Texas Legislature passed the Texas Emissions
   Reduction Plan in 2001, requiring counties to imple-
   ment energy efficiency measures and reduce elec-
   tricity consumption 5% a year for five years to help
   the state comply with federal emissions limits and
   standards. The Texas Commission on Environmental
   Quality worked with EPA and several Texas organi-
   zations to develop a methodology for quantifying the
   nitrogen oxide (NOX)  emission reductions associat-
   ed with energy savings from individual clean energy
   projects.
 • The Western Regional Air Partnership (WRAP) was
   established in 1997 to help  incorporate 10% renew-
   able energy into its resource mix by 2010 and 20%
   by 2015 in an effort to reduce regional haze. A
   WRAP study of the air emission reductions from
   state clean energy programs estimated that NOX
   emissions would be reduced by about 14,000 tons
   and carbon dioxide (C02) emissions by about 56 mil-
   lion metric tons by 2018 (WRAP 2003).


program. Some states are working with EPA to
include clean energy as an emission reduction  meas-
ure in air quality plans. EPA provides guidance  and
can help states identify ways to use emission reduc-
tion data and appropriate quantification methods
and documentation requirements (EPA 2004b).

Funding and Incentives
States are using well-designed, targeted funding and
incentives for a broad range of clean energy tech-
nologies and services. State funding and incentive
programs, some of which are self-sustaining (e.g.,
revolving loan funds), deliver energy and cost savings
for governments, businesses, and consumers. These
programs help overcome barriers, stimulate markets
and build infrastructure, and  leverage public and pri-
vate sector investment. States have made additional
investments and achieved subsequent savings by
coordinating financial incentives with federal incen-
tives (e.g., the production tax credit for renewable
energy generation), other state programs, and utility-
based clean energy programs.
                                                                                              Executive Summary

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                                                        EPA Clean Energy-Environment Guide to Action
                                                                                                   Clean EnergyEnriranmant
                                                                                                   STATE PARTNERSHIP
 States Are Providing Funding and Incentives
 for Clean Energy
    The Texas LoanSTAR program is a self-sustaining
    program that provides low-interest loans to finance
    energy conservation retrofits in state public facili-
    ties. Loans are repaid in four years or less using
    cost savings from verified energy reductions. Public
    agencies in Texas have reduced their energy costs
    by more than $150 million through the LoanSTAR
    program (DOE 2005c, Texas SECO 2005).
    Oregon offers the Business Energy Tax Credit
    (BETC) and Residential Energy Tax Credit (RETC) to
    businesses and residents. Through 2004, more than
    12,000 energy tax credits worth $243 million have
    been awarded. Altogether, these investments save
    or generate energy worth about $215 million a year
    (Oregon DOE 2005).
''
Energy Efficiency Actions
States have implemented a variety of policies and
programs that encourage investment in and adoption
of energy efficiency. Cost-effective energy efficiency
programs can be structured to help remove the key
market, regulatory, and institutional barriers that
might otherwise hinder investment in energy effi-
ciency measures by consumers, businesses, utilities,
and public agencies. The Guide to Action describes
four energy efficiency policies that a number of
states have successfully implemented to support
greater investment  in and adoption of energy effi-
ciency.

Energy Efficiency Portfolio Standards (EEPS)
EEPS require energy providers to meet a specific por-
tion of their electricity demand through energy effi-
ciency. A relatively recent  policy tool, EEPS have been
developed primarily in states with restructured  utility
markets, typically as a partial replacement for their
Integrated Resource Planning (IRP) requirements.
EEPS offer several policy advantages, including  sim-
plicity, specificity, and economies of scale.
To date, seven states have adopted EEPS either
directly or indirectly (with energy efficiency as a
component of a larger clean energy target or goal).
Overall, these  EEPS targets range from the equivalent
of a  10% to 50% reduction in energy demand
growth  (EPA 2005b). Specific EEPS designs vary by
state. Some states, such as California, have estab-
lished specific energy savings goals defined in terms
of the amount of savings (e.g., expressed as MW,
megawatt-hours [MWh], and/or therm savings)
required over a specified time frame. Other states
(e.g., Connecticut,  Texas, and  Illinois) require  utilities
to use energy  efficiency to meet a specified percent-
age of total energy sales or forecast load growth
over a certain  time period. EEPS targets have been
established by state legislatures and are administered
by the state public utility commission (or other regu-
latory body), with  input from utilities, public  interest
organizations, and the general public.
                                                    States Are Adopting Energy Efficiency
                                                    Portfolio Standards

                                                    •  The California EEPS sets ambitious annual energy
                                                       savings goals for the period 2004 to 2013 for the
                                                       state's four largest investor-owned utilities (lOUs).
                                                       The cumulative effect of these goals is estimated to
                                                       result in annual savings in 2013 of 23,183 GWh, 4,885
                                                       MW of peak demand, and  444 million therms of nat-
                                                       ural gas and to meet more than half of the lOUs'
                                                       electricity sales growth and nearly half of natural
                                                       gas sales  growth (CPUC 2004, CEC and CPUC 2005).
                                                    •  Texas was the first state to implement an EEPS. The
                                                       Texas PUC calculated that it has exceeded its target
                                                       of a 10% reduction in load growth by 2004 and has
                                                       saved more than 400 million kWh of electricity at a
                                                       cost of $82 million, for a net benefit of $76 million to
                                                       date (Gross 2005).

    Executive Summary

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                EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
         Public Benefits Funds (PBFs) for Energy
         Efficiency
         Many states have found that PBFs, also known as
         system  benefits charges (SBCs) or clean energy
         funds, are an effective mechanism for securing
         investment  in cost-effective energy efficiency, result-
         ing in lower-cost, cleaner energy.  PBFs are typically
         created by levying a small charge  on every cus-
         tomer's electricity bill, thus providing an annual rev-
         enue stream to fund energy efficiency programs.
         States with  restructured as well as traditional elec-
         tricity markets are using PBFs as a component of
         their clean energy policy portfolios.

         To date, 17  states and Washington, D.C. have estab-
         lished PBFs  to support energy efficiency at various
         levels of funding (ACEEE 2004b, ACEEE 2004c). For
         the more comprehensive  programs, funding levels
         range from  about 1% to 3% of total utility revenues.
         PBF charges range from 0.03 to 3  mills2  per kWh and
         are equivalent  to about $0.27 to $2.50 on a residen-
         tial customer's monthly energy bill (ACEEE 2004b).

         PBFs have supported programs that reduce  energy
         demand and related emissions at a lower cost than
         new supply. For example, for just 12 of the  states
         with  energy efficiency PBFs, total  annual  investments
         of about $870  million  in 2002/2003 yielded nearly
         2.8 million kWh of electricity savings.  Emission
         reductions from nine of these states included a total
         of 1.8 million tons of C02. The median program cost
         was $0.03 per  kWh saved, which is 50% to 75% of
         the typical cost of new power sources and less than
         half of the average retail price of electricity (ACEEE
         2004a,  EIA 2005b).
States Are Establishing Public Benefits Funds
for Energy Efficiency



•  In New York, NYSERDA administers the PBF pro-
   gram with the goals of improving system-wide relia-
   bility, reducing peak load, improving  energy efficien-
   cy and access to energy options for  underserved
   customers, reducing environmental impacts, and
   facilitating competition in the electricity markets.
   NYSERDA has  invested more than $350 million in
   energy efficiency programs and brought about an
   estimated additional investment of $850 million, for a
   total of $1.2 billion in public and private sector ener-
   gy- and efficiency-related investments in the state.
   The program is expected to result in a  total of $2.8
   billion in new public and  private investment in New
   York (NYSERDA 2004).
•  California established the first PBF for  energy effi-
   ciency in 1996. The California Public  Utility
   Commission (CPUC) provides policy oversight of the
   state PBF (known in the state as the  "Public Goods
   Charge"), approves plans for efficiency programs in
   each of the utility service areas, and coordinates
   statewide activities. The  PBF provides  $289 million
   annually for energy efficiency programs, at a cost of
   less than 3 cents per kWh saved. The CPUC has
   adopted aggressive energy efficiency savings goals
   for regulated electric and natural gas utilities, which
   will capture additional  cost-effective energy sav-
   ings, with $2 billion authorized for energy efficiency
   programs in 2006-2008. This investment will achieve
   $2.7 billion in net savings to consumers and meet
   more than half of future electricity load growth over
   the next decade—avoiding the need for three large
   (500 MW) power plants (CPUC 2005).
•  The Wisconsin PBF, Focus on Energy, is a public-
   private partnership with the goals of encouraging
   energy efficiency and renewable energy, enhancing
   the environment, and ensuring  a future supply of
   energy. This program realized a total lifetime energy
   savings of $214.5 million during FY 2004 for a pro-
   gram benefit-cost ratio of 5.4 to 1 (Wl DOA 2004).

        2  A mill is equivalent to one-tenth of a cent.
                                                                                                Executive Summary

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                                                        EPA Clean Energy-Environment Guide to Action
                                                                                                   Clean EnergyEnriranmant
                                                                                                   STATE PARTNERSHIP
Building Codes for Energy Efficiency
Building energy codes establish standards that set a
minimum  level of energy efficiency for residential
and commercial  buildings, thereby locking in the
energy savings at the time of new construction or
renovation. Well-designed, implemented, and
enforced codes can help eliminate inefficient con-
struction practices and technologies with little or no
increase in total  project costs.

Codes typically specify requirements for "thermal
resistance" in the building shell and windows, mini-
mum air leakage, and minimum heating and cooling
equipment efficiencies. These measures can reduce
energy use by 30% or more, resulting  in cost savings
for businesses and consumers (DOE 2005b). Building
energy codes also reduce peak energy demand, air
pollution,  and greenhouse gas emissions. Recognizing
these benefits, a majority of states have adopted
building energy codes in some form for residential
and commercial  construction.

State Appliance Efficiency Standards
State appliance efficiency standards establish mini-
mum energy efficiency levels for appliances and
other energy-consuming products that are not
already covered by federal efficiency standards.
Federal laws such as the recent Energy Policy Act of
2005 (EPAct 2005)  have established appliance effi-
ciency standards for more than 40 products. States
are preempted from setting their  own standards for
the products covered by federal standards but can
enact standards for products that are  not yet covered
by federal law (which in many cases emerged from
state standard-setting activities) or may petition for
a waiver under particular circumstances. Ten states
have adopted standards covering  a total of 36 types
of appliances and at least two additional states are
considering adopting standards (Delaski 2005, Nadel
et al. 2005).
States Are Implementing Building Energy
Codes for Energy Efficiency


   California's Title 24 standards for residential and
   commercial buildings are stringent and well
   enforced. They include a combination of perform-
   ance-based and mandatory provisions that are
   expected to yield $43 billion in electricity and natu-
   ral gas savings by 2011. The standards are expected
   to reduce annual energy demand by 180 MW, equiv-
   alent to the electricity requirements of 180,000 aver-
   age-sized California  homes (CEC 2003).
   Oregon and Washington take a simple and prescrip-
   tive approach to building energy codes. The result
   is a high level of code compliance; a recent con-
   struction practice survey found that 94% of homes
   surveyed in Washington and 100% in Oregon met or
   exceeded code requirements for the building enve-
   lope (Ecotope 2001).
States Are Implementing Appliance Efficiency
Standards


•  California was the first state to initiate an appliance
   efficiency standards program (in 1977) and main-
   tains the most active and well-funded standards
   program of any state. California law now covers 30
   products; new or upgraded standards are under
   consideration for three products. Operated by the
   California Energy Commission (CEC), the appliance
   standard program is currently reducing peak elec-
   tric demand by about 2,000 MW or about 5% of peak
   load. These savings account for about 20% of
   California's total peak demand reductions from all
   efficiency programs over the past 20 years (CEC
   2005a, CEC  2005b).
•  New York's Appliance and Equipment Energy
   Efficiency Standards Act of 2005 established state
   energy efficiency standards for 14 household appli-
   ances and electronic equipment not covered by fed-
   eral standards. The law also requires efficiency stan-
   dards for electronic products that use standby power
   when they are turned  off but remain plugged in (e.g.,
   DVD players and recorders) to reduce "phantom"
   energy consumption. These standards are expected
   to save 2,096 GWh of electricity annually, enough to
   power 350,000 homes. This equates to annual savings
   of $284 million per year (State of New York 2005).
   Executive Summary

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                EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
         Energy Supply Actions
         States can achieve a number of environmental and eco-
         nomic benefits by encouraging the development of clean
         energy supply (i.e., renewable energy and CHP) as  part of
         a balanced energy portfolio. The Guide to Action describes
         five policies that states have successfully used to support
         and encourage continued growth of clean energy  supply
         in their state.

         Renewable Portfolio Standards (RPS)
         RPS provide states with a tool to increase the amount of
         renewable energy using a cost-effective, market-based
         approach. RPS, which can be used  in both regulated and
         restructured electricity markets, require electric utilities
         and other retail electric providers to supply a specified
         minimum percentage or amount of customer load with
         eligible sources of renewable electricity. As of September
         2005, RPS requirements have been established  in 21
         states and Washington, D.C. More than 2,300 MW of
         new renewable energy capacity (through 2003) is attrib-
         utable to RPS programs. RPS is cited as the driving force
         behind the installation of approximately 47% of new
         wind capacity additions in the United States between
         2001  and 2004 (Bird and Swezey 2004).

         PBFs for State Clean Energy Supply Programs
         PBFs for clean energy supply accelerate the develop-
         ment of renewable  energy and CHP within a state.
         They are typically created  by levying a small fee or
         surcharge on customers' electricity rates (e.g., for
         renewable energy, this fee ranges from approximately
         0.01 to  0.1 mills/kWh). While PBFs have traditionally
         been  used to fund energy efficiency and low-income
         programs, states have recently begun to implement
         PBFs to support clean energy supply. PBFs were initial-
         ly established by states undergoing electricity market
         restructuring but are  now used by both restructured
         states and states with traditional electricity markets.

         As of 2005, 16 states had  established  renewable
         energy  programs that are expected to provide  more
         than $300 million annually in support of clean ener-
         gy supply. PBFs will provide much of this funding;
         according to one estimate, clean energy funding will
         total  $4 billion  by 2017 (UCS 2004, DSIRE 2005,
         Navigant 2005).
States Are Implementing Renewable Portfolio
Standards

•  Texas was among the first states to establish a RPS
   requirement and is considered by many policymak-
   ers and advocates to be among the most success-
   ful. Between 1999, when the RPS was initiated, and
   February 2005,1,187 MW of renewable energy
   capacity was installed in Texas. The Texas RPS
   includes long-term contracts, penalties for non-
   compliance, and RECs trading.
•  California's RPS—enacted by the state legislature in
   September 2002—is among  the most aggressive in
   the country. The RPS requires retail sellers of elec-
   tricity to purchase 20% renewable electricity by 2017.
   At a minimum, retailers must increase their use of
   renewable electricity by 1% each year. California is
   considering increasing the RPS requirement to 33%
   by2020(CEC2005a). "
States Are Establishing Public Benefits Funds
for State Clean Energy Supply Programs

•  New Jersey's clean energy initiative, administered by
   the New Jersey Board of Public Utilities, provides
   information and financial incentives and creates
   enabling regulations designed to help New Jersey
   residents, businesses, and communities reduce their
   energy use, lower costs, and protect the environment.
   New Jersey's Clean Energy Program has three com-
   ponents: residential programs, commercial and indus-
   trial programs, and renewable energy programs. CHP
   is funded as an efficiency measure through the com-
   mercial  and industrial programs.
•  In New York, the New York State Energy Research
   and Development Authority (NYSERDA) administers
   the New York Energy Smart program, which is
   designed to support certain public benefits programs
   during the transition to a more competitive electricity
   market  About 2,700 projects in 40 programs are fund-
   ed  by a  charge on the electricity transmitted and
   distributed by the state's investor-owned utilities.

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Output-Based Environmental Regulations to
Support Clean Energy
Designing environmental regulations that account
for the emission reduction benefits of energy effi-
ciency, renewable energy, and CHP increases the
attractiveness for facilities to install clean energy
technologies and increase efficiency. Output-based
environmental  regulations, which  relate emissions to
the productive  output of a process, accomplish this
by encouraging the use of fuel conversion efficiency
and renewable  energy as air pollution  control meas-
ures. For electric generation, this unit  of measure is
the amount of  emissions per MWh (Ib/MWh). In con-
trast, most environmental regulations  for power gen-
erators and  boilers have historically established
emission limits based on heat input or exhaust con-
centration (Ib/MMBtu or parts per million  [ppm]).
These traditional input-based limits do not account
for the pollution prevention benefits of process effi-
ciency in ways  that encourage the application of
more efficient generation approaches.

Interconnection Standards
Standard interconnection rules encourage the con-
nection of clean distributed generation (DG) systems
(i.e., renewable and CHP) to the electric grid by
establishing uniform  processes and technical  require-
ments that apply to  utilities within a state. These
rules reduce the uncertainty and prevent long delays
and costs that  clean DG systems may encounter
when obtaining approval for grid connection. In
addition, some  states use net metering rules to
        Are Establishing Interconnection Standards
    In New Jersey, the New Jersey Board of Public
    Utilities developed net metering and interconnection
    standards for Class I  renewable energy systems.
    These rules, which became effective on  October 4,
    2004, are separated into three levels based on system
    size and technical certification. Each level has specif-
    ic interconnection review procedures and timelines
    for each step in the review process. The New Jersey
    interconnection standard is designed to support sys-
    tems up to 2 MW.
    In Texas, the Texas Public Utility Commission adopted
    substantive rules in November 1999 that apply to gener-
 States Are Developing Output-Based
 Regulations

 •  Connecticut has adopted an output-based regula-
    Ition for NOX, particulate matter, carbon monoxide
    (CO), and C02 from small distributed generators
    (< 15 MW capacity), including CHP. The regulation
    values the efficiency of CHP based on the emis-
    sions that are avoided by not having separate elec-
    tric and thermal generation. Connecticut also allo-
    cates allowances based on energy output in its
    NOXtrading program.
 •  Massachusetts has incorporated the output-based
    approach in several important regulations. The
    Massachusetts NOX cap and trade program allo-
    cates emission  allowances to affected sources
    (generators > 25 MW) on an output basis, including
    the thermal output of CHP. This approach provides a
    significant economic incentive for CHP within the
    emissions cap.  Massachusetts also has a multi-pol-
    lutant emission  regulation (NOX, sulfur dioxide [S02],
    mercury [Hg], C02) for existing power plants, which
    uses an output-based format for conventional emis-
    sion limits. In addition, Massachusetts allocates 5%
    of its NOX state  trading program budget to a public
    benefits set-aside account to provide for allocations
    for energy efficiency and renewable energy.

govern interconnection of smaller DG systems. Net
metering, which can be considered a subset of inter-
connection standards for small-scale projects, allows
smaller DG owners to offset power that they obtain
from the grid with excess power that they can supply

 ation facilities of 10 MW or less that connect to distri-
 bution-level voltages at the point of common coupling.
 These rules are intended to streamline the interconnec-
 tion process for applicants, particularly those with
 smaller devices and those that are likely to have mini-
 mal impact on the electric utility grid. This ruling applies
 to both radial and secondary network systems3 and
 requires Texas utilities to evaluate applications based
 on pre-specified screening criteria, including equip-
 ment size and the relative size of the  DG system to
 feeder load.

 A radial distribution system is the most common electric power sys-
 tem. In this system, power flows in one direction from the utility
 source to the customer load.
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                EPA Clean Energy-Environment Guide to Action
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STATE PARTNERSHIP
        through their grid connection. As of November 2005,
        14 states  had adopted standard interconnection
        requirements for distributed generators and seven
        additional states were in the process of developing
        similar standards. As of early 2005, 39 states and
        Washington, D.C. had rules or provisions for net
        metering (Navigant 2005).

        Fostering Green Power Markets
        Green power is a small but growing market that
        provides electricity customers the opportunity to
        make environmental choices about their electricity
        consumption by purchasing electricity generated by
        renewable resources. Green power programs  in more
        than 40 states currently serve approximately
        540,000 customers, representing  nearly 4 billion
        kWh annually. These green power markets have
        resulted in the construction of more than 2,200 MW
        of new renewable capacity over the past  10 years. A
        recent study estimates this could reach 8,000 MW
        by 2015 by giving customers the  choice to support
        cleaner electricity generation options in both verti-
        cally integrated  and competitive  retail markets
        (Wiser etal. 2001).

        Because participation in green power  programs is
        voluntary, the role for states  may be more limited
        than with other  clean energy policy options, but it is
        still important. In vertically integrated  markets (i.e.,
        states where regulated utilities perform generation,
        transmission, and distribution functions), several
        states require utilities to offer a green  pricing tariff.
        This policy ensures that all  customers have the
        option available  to them. In restructured  markets,
        green power products are available from a range of
        competitive suppliers. Customers  are also  increasing-
        ly able to  add renewable energy to their default serv-
        ice  with "green check-off" programs, which enable
        customers to select green power while maintaining
        service with the  default provider.

        Utility Planning and Incentive
        Structures
        Long-term utility planning  policies and incentive
        structures play an important  role  in determining the
        attractiveness of investments in energy efficiency
 States Are Encouraging Green Power Markets

 • New Jerseyis the first state with restructured elec-
   tricity markets to institute a statewide voluntary
   green power program. The New Jersey Clean
   Energy Council established a goal to double the
   amount of green electricity purchased by electric
   customers and increase the load served by qualified
   renewable resources by 50% over the Class I  RPS.
   The state's Green Power Choice Program supports
   this goal by implementing a statewide green check-
   off program that requires utilities to offer retail elec-
   tricity customers the option of selecting an energy
   product with a higher level of renewable energy
   than required by the state RPS.
 • New Mexico provides a state-mandated utility
   green pricing program that was created by regula-
   tory authority. In 2002, the New Mexico  Public
   Regulation Commission (PRC) adopted regulations
   requiring all investor-owned utilities and electric
   cooperatives in the  state to offer their customers a
   voluntary renewable energy tariff. These tariffs
   allow consumers the option of purchasing more
   renewable energy than is required by the RPS,
   range from 1.8 cents/kWh to 3.2 cents/kWh, and
   combine varying mixes of wind, solar, and biomass.
   Utilities are also required to develop educational
   programs for their customers on the benefits and
   availability of the voluntary renewable energy pro-
   gram (DOE 2005d).

and clean DG. In many states, utility profits are
reduced if they experience decreased energy sales as
a result of aggressive investments in energy efficien-
cy or customer-sited DG. The Guide to Action
describes specific approaches state PUCs can use to
address these disincentives to creating low-cost,
clean energy markets by allowing for a fair, economi-
cally based comparison  between supply- and
demand-side resource alternatives.

Portfolio Management Strategies
Portfolio management refers to the  electric utility's
energy resource planning and procurement strate-
gies, covering both supply- and demand-side
resources. State PUCs are requiring electric utilities
to conduct portfolio  management as a way to  pro-
vide least-cost  and stable electric and natural  gas
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                                                                                                     STATE PARTNERSHIP
 States Are Requiring Utilities to Manage Their
 Portfolios
    The Northwest Power and Conservation Council's
    Fifth Northwest Electric Power and Conservation
    Plan includes policies to enable the region to man-
    age uncertainties that affect the power system and
    mitigate risks associated with these uncertainties.
    Clean energy options promoted in the plan include
    energy conservation and efficiency (targeted at 700
    MW between 2005 and 2009), demand response (tar-
    geted at 500 MW between 2005 and 2009), and wind
    power (targeted  at 1,100 MW between 2005 and 2014
    from system benefits charges and utility integrated
    resource plans) (Northwest Power and Conservation
    Council 2005).
    In California, the CPUC  requires each utility to sub-
    mit a 10-year procurement plan biennially. Each
    plan must demonstrate  that the utility has adequate,
    reliable supplies and complies with CPUC goals for
    efficiency and renewable energy. Utilities must pri-
    oritize their resource procurements by following the
    "loading order" established in the state's Energy
    Action Plan (EAP), as follows: (1)  energy efficiency
    and demand response,  (2) renewable energy
    (including renewable DG), and (3) clean fossil-
    fueled DG and clean fossil-fueled central-station
    generation. CPUC authorized $2 billion in procure-
    ment funding for energy efficiency programs from
    2006 to 2008. These measures are expected to
    achieve $2.7 billion in net savings to consumers and
    avoid the need for three large (500 MW) power
    plants (CPUC 2005).
'•
service to customers over the long term. Portfolio
management can also increase energy efficiency,
renewable generation, and clean DG in order to
address reliability, safety, and environmental issues.

Portfolio management strategies are implemented
through individual utilities' integrated resource plans
in states served by regulated, vertically integrated
utilities. These  plans consider a  broad array of supply
and demand options using predefined  criteria for
evaluating options to meet projected needs. They
compare a utility's current and projected future gen-
eration needs to all of its available generation
demand-  and supply-side options. "Retail Choice"
portfolio management strategies refer to portfolio
management by deregulated utilities. These strate-
gies strive to protect consumers from high electricity
prices by requiring competitive procurement policies.
In either case, an ideal portfolio is diversified and
involves choosing among a variety of electricity
products and contracts,  including  energy efficiency,
renewables, and clean DG, to enable the utility to
adapt to shifting market conditions.

Utility Incentives  for Demand-Side Resources
States are reworking traditional electric and gas utility
rate structures to incorporate incentives for demand-
side resources (e.g., energy efficiency and clean DG).
Traditional ratemaking structures link a utility's finan-
cial health to the volume of electricity or gas it sells,
thus providing a disincentive to investing in cost-
effective demand-side resources that reduce sales.
Aligning utilities' investment incentives with state
interests of providing efficient, affordable, and reliable
energy can "level the playing field" to allow for a  fair,


  States Are Creating Incentives for Utilities to
  Invest in Demand-Side Resources

  •  In 2005, California re-adopted a revenue balancing
    mechanism that applies between rate cases and
    removes the throughput disincentive  by allowing for
    rate adjustment based on actual electricity sales.
    The California public utilities are also returning to
    larger-scale promotion of energy efficiency through
    their demand-side management programs.
    Simultaneously, the CPUC is revising its policies to
    establish a common approach for evaluating the
    performance of energy efficiency programs that
    defer more costly supply-side investments (CEC  and
    CPUC 2005).
  •  In September 2002, the Oregon PUC adopted a par-
    tial decoupling mechanism for one of its gas utili-
    ties, Northwest Natural Gas, that uses a price elas-
    ticity adjustment and a revenue deferral account
    (Oregon PUC 2002). An evaluation found that the
    mechanism reduced, but did not completely
    remove, the link between sales and profits and that
    it "is an effective  means of reducing NW
    [Northwest] Natural's  disincentive  to promote ener-
    gy efficiency" (Hansen and Braithwait2005).

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STATE PARTNERSHIP
         economically based comparison between supply- and
         demand-side resource alternatives.

         States with incentive policies for demand-side
         resources have implemented policies that: (1) remove
         disincentives by "decoupling" profits from sales vol-
         umes, (2) ensure that utilities recover their costs for
         effective, economic energy efficiency and clean DG
         programs, and  (3) create incentives for utility man-
         agers and shareholders to  actively  invest in well-run
         and high-performing energy efficiency and clean DG
         programs.

         Emerging Approaches:  Removing Unintended
         Utility Rate Barriers to Distributed Generation
         The unique operating profile  of clean energy supply
         projects  (i.e., renewable energy and CHP)  may require
         different types of rates  and different rate structures.
         However, if not properly designed, these rates and
         charges can create unnecessary barriers to the use  of
         renewables and CHP. Appropriate rate design is criti-
         cal to allowing utility cost  recovery while also provid-
         ing appropriate price signals  for clean energy supply.

         Customer-sited clean energy supply projects are
         usually interconnected  to  the power grid and may
purchase electricity from or sell to the grid. Electric
utilities typically charge these customers special
rates for electricity and for services associated with
this  interconnection. These rates include exit fees,
standby rates, and buyback rates. A key state PUC
objective is to ensure that consumers receive reli-
able power at the lowest cost. In  approving these
rates, the PUC can support renewable and CHP proj-
ects and avoid  unanticipated  barriers while also pro-
viding  appropriate cost recovery for the utility serv-
ices  on which consumers depend.

As of early 2005, several states had evaluated or
begun  to evaluate utility rate  structures and had
made changes to promote CHP and  renewables as
part of their larger efforts to support cost-effective
clean energy supply as an  alternative to expansion of
the electric grid. This type of work is typically con-
ducted by the state PUC through a formal  process
(i.e.,  docket or rulemaking) that elicits input from all
stakeholders.
          States Are Developing Utility Rates to Support
          Clean Energy Supplies

          •  In California, several types of exit and transition fees
            exist that are handled  differently depending on the util-
            ity. Fee exemptions exist for various classes of renew-
            able and  CHP systems, including: systems smaller than
            1 MW that are net-metered or are eligible for CPUC or
            CEC incentives for being clean and super-clean; ultra-
            clean and low-emission systems that are 1 MW or
            greater and comply with California Air Resources
            Board (CARB) 2007 air emission standards; and zero-
            emitting or highly efficient (> 42.5% efficiency) systems
            built after May 1,2001.
          •  In New York, the New York State Public Service
            Commission (NYPSC) voted in July 2003 to approve new
 standby rates for utilities' standby electric delivery
 service to DG customers and standby service to inde-
 pendent wholesale electric generating plants that
 import electricity as "station power" to support their
 operations. A key consideration was for the rates to
 result in onsite  generation running when it is less
 expensive than purchasing power from the grid. The
 NYPSC has also directed  electric utilities to consider
 DG as an alternative to traditional electric distribution
 system improvement projects. It required natural gas
 companies to create a natural gas rate class specifical-
 ly for DG  users  that provides predictable gas rates for
 the emerging DG industry (ceilings are frozen until at
 least the  end of 2007).
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                                                        EPA Clean Energy-Environment Guide to Action
                                                                                                  Clean EnergyEnriranmant
                                                                                                  STATE PARTNERSHIP
What States Can  Do
As described previously in this Executive Summary,
states are supporting clean energy through a diverse
range of programs and policies. Each policy descrip-
tion  in the Guide to Action includes specific action
steps and best practices drawn from state experi-
ences for designing, implementing, and evaluating
clean energy programs. When developing a compre-
hensive approach to clean energy, states can use this
information to:

• Develop a Clean Energy-Environment Action Plan
  that establishes clean energy goals to increase  the
  use of cost-effective clean energy in their state
  and  identifies programs and policies to achieve
  these goals.
• Implement a coordinated package of policies, pro-
  grams, and strategies defined in the  Clean Energy-
  Environment Action Plan.
• Draw on federal, state, and other resources to help
  achieve clean energy goals.

Develop a  Clean Energy-Environment
Action Plan
A Clean Energy-Environment Action Plan describes a
clear strategy for delivering clean,  low-cost, reliable,
and stable-priced energy to state  residents through  a
portfolio of energy efficiency, renewable energy, and
clean DG policies and programs. Chapter 2 of the
Guide to Action details the key steps involved in
developing this clean energy strategy. These steps
typically include:

1. Create a Collaborative. States have found it  partic-
  ularly useful to reach out to the parties in their
  states that are interested in and/or may be affect-
  ed by changes in energy use within  the  state. Key
  players in the collaborative can include  represen-
  tatives from the governor's office, state legislature,
  state agencies, and universities.  Stakeholders
  include utilities; independent system operators  and
  regional transmission organizations;  independent
  power producers, independent transmission system
 Using the Guide to Action
 The Guide to Action provides a menu of clean energy
 policies and programs that states have successfully
 implemented. When using the Guide to Action:
 •  Select from the menu of policies by reviewing Table
   ES.2 and the chapter introductions to identify poli-
   cies that are most likely to meet state goals. Cross-
   references are provided within each section to help
   efficiently navigate the  document.
 •  Keep in mind that some of the policies  described in
   the Guide to Action represent different paths to the
   same goal or can be used in combination to achieve
   a goal.
 •  Consider  designing clean  energy programs by build-
   ing upon the established models, examples, and
   action items described  for each policy.


  owners, and energy suppliers; environmental and
  consumer organizations;  other private sector inter-
  ests; and the public.
2. Establish a Quantitative Goal Based on Future
  Energy Use Expectations and the Potential for
  Clean Energy in the State. A quantitative clean
  energy goal defines a specific level of cost-
  effective clean energy the state can strive to
  acquire during a particular period of time. To
  define their goals, states  can:
  •  Develop or refine a baseline inventory of their
     energy  use and emissions and make projections
     about the future.
  •  Conduct energy  efficiency and/or renewable
     energy  potential analyses to determine areas of
     greatest opportunity for energy savings. These
     findings help states  identify opportunities and
     determine the feasibility of different goals
     based on technologies  or resource  availability.
     Understanding and quantifying the potential for
     clean energy within  the state also  helps states
     ensure that they are providing adequate funding
     to make cost-effective investments in clean
     energy.
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                EPA Clean Energy-Environment Guide to Action
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STATE PARTNERSHIP
           •  Quantify the full range of savings to maximize
             the benefits of clean energy. By assessing and
             quantifying the full range of short- and long-
             term energy, environmental, and economic  ben-
             efits  from energy efficiency and renewable
             energy, states can ensure that their policy deci-
             sions are based  on a complete accounting of
             the benefits of clean energy.
        3. Identify Both Existing and New Clean Energy
           Policies and Programs. As states develop their
           Clean Energy-Environment Action Plans, they  iden-
           tify policies that could  help achieve their goal by
           conducting an inventory  of existing policies, iden-
           tifying  new clean energy policies that build on les-
           sons  learned from their own experience and other
           states' experiences, and establishing criteria to
           evaluate the policies. When selecting policies  to
           include in their plan, states also can identify the
           market, regulatory, and/or institutional barriers to
           implementing  the  clean energy programs and
           develop approaches to  mitigate or remove these
           barriers. Finally, states can also target support for
           investment in  new clean  energy technologies  as
           they emerge in the marketplace.
        4. Design  Policies and Evaluate Their Impacts. States
           compare the impacts of different  clean energy
           policies to ensure that  they work  well together.
           They  also find it advantageous to identify the type
           of action, key  players required, and time frame for
           implementation when designing a policy. Once
           policies are initially designed, states use analytic
           tools to evaluate the options based on  the criteria
           they  have developed. The tools enable states to
           quantify the impacts of the various policies and
           rank them according to the agreed-upon criteria.
           This usually includes an assessment of the energy,
           economic, and/or environmental and  public health
           impacts of the options.
        5. Develop a Measurement,  Evaluation, and Reporting
           Plan. As states design and evaluate clean energy
           policy options, they often find it beneficial to con-
           sider in advance the ways they will measure the
           success of the implemented policies. This measure-
           ment, evaluation, and reporting plan enables
           states to regularly check  their progress against
           their goals and adjust their course as needed.
6. Recommend Specific Actions for State Decision-
   Makers. Once policy options have been assessed
   and ranked according  to the desired criteria, the
   collaborative typically reviews the findings. Based
   on the rankings and discussion among the stake-
   holders, recommendations for action are presented
   in the Clean Energy-Environment Action Plan.

Implement the  Clean Energy-
Environment Action Plan
The actions required to design and  implement the
clean energy programs articulated in a  Clean Energy-
Environment Action Plan vary according to type of
program. Nevertheless, the following key themes
have emerged  that apply to all clean energy pro-
grams and that states can follow to help ensure the
success  of their programs:

•  Involve Stakeholders in Clean Energy Program
   Development and Deployment. Clean energy policy
   objectives require broad public and political sup-
   port to be successful.  Successful states have
   implemented clean  energy policies with the sup-
   port of their governor, legislature, and state agen-
   cies. If support is lacking, states can consider
   implementing  education programs on the environ-
   mental and  economic benefits of clean energy.
   When support for clean energy activities is estab-
   lished, it is important  to involve multiple stake-
   holders during discussions and negotiations about
   clean  energy objectives.
•  Incorporate Clean Energy As a Resource in Other
   State and Utility-Level Resource Planning
   Decisions. States can look for opportunities to
   incorporate  clean energy policies as part of other
   state  and utility-level  planning decisions.
•  Evaluate the Effectiveness of Clean Energy Programs.
   Evaluation is important to sustaining the success of
   state  clean energy programs. By measuring  program
   success against stated objectives on a regular basis
   and in a transparent way, states can  identify prob-
   lems,  develop approaches for addressing these
   issues, and ensure continued  support from stake-
   holders. Evaluating energy efficiency programs can
   also entail using special techniques to measure and
   verify the energy savings from these  programs.
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                                                      EPA Clean Energy-Environment Guide to Action
• Communicate Program Results. States communi-
  cate the findings from their program evaluation to
  key players and stakeholders on a regular basis. By
  reporting on the progress and lessons learned for
  each clean energy policy and for the overall pro-
  gram and  soliciting feedback on these findings,
  states can ensure a transparent implementation
  process and continued support for their program.
  States can also help ensure continued support for
  clean energy  policies by communicating the ener-
  gy, economic, and environmental benefits accrued
  from these programs to stakeholders.

Each of the policy description sections in the Guide
to Action describes how states consider these and
other themes as they develop and implement clean
energy programs and policies.

Leverage Federal, State, and Other
Resources
As states pursue policies and programs for promoting
clean energy, they can  work with  a variety of federal,
state, and nonprofit organizations to help enhance
their clean energy programs. Table ES.3 provides
examples of how these  federal, state, and other
resources can be used when developing each of the
16 clean energy policies and programs covered in the
Guide to Action. The following section, Information
Resources, provides a list of the key federal voluntary
program resources available to states  (a more
detailed description is provided in Appendix A,
Federal Clean Energy Programs) and  a  summary of
the Web sites for each of the resources described in
Table ES.3.
                                                                                               Clean EnergyEnriranmant
                                                                                               STATE PARTNERSHIP
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                   EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE  PARTNERSHIP
   Table ES.3: Federal, State, and Nonprofit Resources for Enhancing State Clean Energy Programs
        Policy Name
        (Section No.)
                                     Examples of State Actions3
    Lead by Example (3.1)
                                          Chapter 3. State Planning and Incentive Structures
Establish energy savings and renewable energy goals for state and local government facilities (including leased
space), schools, colleges, and universities. Use ENERGY STAR tools, guidelines, and partnerships and join the ENERGY
STAR Challenge to improve building energy efficiency by 10% or more.
Procure ENERGY STAR-qualified products using ENERGY STAR product procurement information and online training
resources.
Require ENERGY STAR certification as part of green building/energy efficiency standards in new state and local gov-
ernment buildings, K-12 schools, and colleges and universities.
Purchase renewable energy for state facilities under EPA's Green Power Partnership Program.
Use CHP in public facilities with help from EPA's CHP Partnership.
Leverage ENERGY STAR consumer education activities, such as National Campaigns.
    State and Regional
    Energy Planning (3.2)
Develop and implement a Clean Energy-Environment Action P/anwith guidance and support from EPA's Clean Energy-
Environment State Partnership Program.
Leverage DOE State Energy Program funding (to state energy offices) and grants authorized by EPAct 2005 (Section
140) to support state energy planning and deploy clean energy technologies.
    Determining the Air
    Quality Benefits of
    Clean Energy (3.3)
Use the software tools, analyses, and EPA guidance described in Section 3.3 of the Guide toActionlo evaluate the air
quality benefits of clean energy policies and programs.
Incorporate emission reductions from clean energy into air quality planning using EPA's Guidance: Incorporating
Emerging and Voluntary Measures in a State Implementation Plan (2004).
    Funding and
    Incentives (3.4)
    Energy Efficiency
    Portfolio Standards
    (EEPS)(4.1)
Use ENERGY STAR financing information and training sessions for public and private sector organizations.
Learn about federal and state funding opportunities using EPA's Funding Opportunities Directory and CHP and bio-
mass/biogas funding opportunities database.
Use EPA's Supplemental Environmental  Projects Toolkit to convert environmental enforcement settlements into envi-
ronmentally beneficial projects.
Include provisions for energy savings performance contracting using the information resources in Section 3.4. Identify
energy service companies in your state using ENERGY STAR'S online directory of service and product providers.
Leverage federal tax incentives authorized by EPAct 2005 for energy efficiency and renewable energy.
                                                  Chapter 4. Energy Efficiency Actions
Assess energy efficiency potential, evaluate past successes, and then design, develop, implement, and evaluate a cus-
tomized EEPS program for your state. Contact EPA's Clean Energy-Environment State Partnership Program for more
information and technical assistance to support the design of an EEPS for your state.
    Public Benefits Funds
    (PBFs) for Energy
    Efficiency (4.2)
Enhance PBF programs by leveraging ENERGY STAR'S portfolio of energy efficiency program and service delivery
models, building performance and product specifications, network of partners, and consumer education and aware-
ness campaigns.
    Building Codes for
    Energy Efficiency (4.3)
Regularly update, implement, evaluate, and enforce building codes using compliance tools, technical assistance, and
other code information and support available from DOE and the Building Codes Assistance Project.
Encourage construction of beyond-code ENERGY STAR-qualified new homes using ENERGY STAR education and train-
ing resources.
    State Appliance
    Efficiency Standards
    (4.4)
Use DOE's information resources to identify products that are covered by federal standards and obtain information
about state appliance standards.
Identify potential products for which standards could be established, and estimate the overall benefits and costs of
upgrading current standards or setting new standards using the information resources provided by the California
Energy Commission and the Appliance Standards Awareness Project.
      See Federal, State, and Nongovernmental Clean Energy Resources on page ES-27 for the URLs for the underlined
      resources listed in this table.
                                                                               (continued on next page)
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                                                                  EPA Clean Energy-Environment Guide to Action
                                                                                                                     Clean EnergyEnriranmant
                                                                                                                     STATE PARTNERSHIP
Table ES.3: Federal, State, and Nonprofit Resources for Enhancing State Clean Energy Programs (continued)
     Policy Name
     (Section No.)
                                     Examples of State Actions3
 Renewable Portfolio
 Standards (RPS) (5.1)
                                                Chapter 5. Energy Supply Actions
Determine the renewable energy and CHP potential in your state and develop an RPS foryour state with assistance
from the National Renewable Energy Lab (NREL) and  EPA's CHP Partnership.
Leverage the federal production tax credit and other federal incentives to advance renewable energy resource devel-
opment and achieve standards.
 Public Benefits Funds
 (PBF) for State Clean
 Energy Supply
 Programs (5.2)
Use lessons learned from other state PBF programs described in Section 5.2 of the Guide to Action to establish or
enhance your state programs.
Leverage other funding sources without activating "double-dipping" clauses. For example, incentives for wind projects
allow developers to take advantage of federal incentives such as the production tax credit (PTC) and accelerated
depreciation.
Contact EPA's CHP Partnership for assistance in designing a CHP incentive program.
 Output-Based
 Environmental
 Regulations to
 Support Clean Energy
 Supply (5.3)
Review federal programs that have adopted output-based regulations with recognition of CHP, including the proposed
New Source Performance Standards (NSPS) for NOX from electric utility boilers and combustion turbines, and the new
EPA cap and trade programs (Clean Air Interstate Rule and the Clean Air Mercury Rule). For more information, visit the
CHP Partnership State Resources Web site.
Use EPA's CHP Partnership resources, including Output-Based Regulations: A Handbook for Air Regulators to evaluate
opportunities to adopt output-based regulations.
 Interconnection
 Standards (5.4)
Review existing model rules, such as those developed by FERC, NARUC, and IREC, as well as other state rules
described in Section 5.4.
Develop an  interconnection standard for clean DG/CHP projects with assistance from EPA's CHP Partnership.
 Fostering Green
 Power Markets (5.5)
Use EPA's Green Power Partnership resources and partners to enhance green power markets programs.
Learn about other state Green Power programs and policy approaches using the information resources available in
Section 5.5 of the Guide to Action and from the DOE Green Power Network.
Take advantage of federal renewable energy incentives to complement state efforts to foster green power markets.
                                       Chapter 6. Utility Planning and Incentive Structures
 Portfolio
 Management
 Strategies (6.1)
Link portfolio management policies to other state policies described in Section 6.1, such as RPS, energy efficiency poli-
cies, and energy planning policies.
Incorporate lessons learned from other states and regions as described in Section 6.1 of the Guide to Action.
Contact the EPA-State Energy Efficiency and Renewable Energy Projects staff and/or EPA/DOE Energy Efficiency
Action Plan staff for further assistance.
 Utility Incentives for
 Demand-Side
 Resources (6.2)
Incorporate lessons learned from states to remove financial disincentives and create incentives for utilities to invest in
demand-side resources as described in Section 6.2 of the Guide to Action.
Contact the EPA-State Energy Efficiency and Renewable Energy Projects staff and/or EPA/DOE Energy Efficiency
Action Plan staff for further assistance.
 Emerging
 Approaches:
 Removing Unintended
 Utility Rate Barriers to
 Distributed
 Generation (6.3)
Contact EPA's CHP Partnership for assistance in evaluating current utility rate structures for DG, such as standby rates,
and developing rate structures that avoid unwarranted barriers, while also providing appropriate cost recovery for utili-
ty services.
Review the Regulatory Assistance Project's report. Accommodating Distributed Resources in the Wholesale Market.
   See Federal, State, and Nongovernmental Clean Energy Resources on page ES-27 for the URLs for the underlined resources listed in this table.
    Executive Summary

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                  EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
          Information  Resources

          Key Federal Program Resources

          A list of key EPA and DOE voluntary program resources available to states is provided below.
            Federal Clean Energy Programs

            EPA and DOE administer a number of
            voluntary programs that promote the
            production and use of clean energy and
            complement the Clean Energy-
            Environment State  Partnership
            Program. These programs include:

            ENERGY STAR
            ENERGY STAR is a voluntary, public-
            private partnership designed to reduce
            energy use and related greenhouse gas
            emissions. The program, administered
            jointly by EPA and DOE, has an exten-
            sive network of partners including
            equipment manufacturers, retailers,
            builders, energy service companies, pri-
            vate businesses, and public  sector
            organizations.  EPA and DOE invest in a
            portfolio of energy  efficiency efforts that
            state and utility energy efficiency pro-
            grams can leverage to further their
            energy efficiency programs, including:
            •  Establishing performance specifica-
              tions and performing outreach  on
              efficient products.
            •  Establishing energy efficiency deliv-
              ery models to existing homes.
            •  Establishing performance specifica-
              tions and performing outreach  for
              new homes.
            •  Improving the performance of new
              and existing commercial  buildings.
            •  Conducting education and aware-
              ness building.
            More information about ENERGY STAR
            can be found at:
            http://www.energystar.gov.

            EPA-State Energy Efficiency and
            Renewable Energy Projects
            This program is a joint initiative between
            EPA, the National Association of
            Regulatory Utility Commissioners
            (NARUC), and individual state utility com-
            missions. It explores utility regulatory and
            market-based approaches that deliver
            significant energy cost savings and other
benefits through greater use of energy
efficiency, renewable energy, and clean
distributed generation. More information
can be found at:
http://www.epa.gov/cleanenergy/
utilitypolicy/.

Energy Efficiency Action Plan
This joint effort between DOE and EPA
engages energy market leaders—
including electric and gas utilities, state
utility regulators and energy agencies,
energy consumers, energy service
providers, and environmental/energy
efficiency advocates—in the develop-
ment of an Energy Efficiency Action
Plan. Action Plan participants will identi-
fy key barriers limiting greater U.S.
investment in energy efficiency and
develop and document sound business
practices for removing these barriers.
More information is available at:
http://epa.gov/cleanenergy/
eeactionplan.htm.

The  Combined Heat and Power
(CHP) Partnership
This EPA partnership seeks to reduce the
environmental impact of power genera-
tion by fostering the use of CHP. The CHP
Partnership  works closely with energy
users, the CHP industry, state and local
governments, and other stakeholders to
support the development of new policies,
programs, and projects and promotes
their energy, environmental, and eco-
nomic benefits. More information is
available at: http://www.epa.gov/chp.

The  Green Power Partnership
EPA's Green Power Partnership is a vol-
untary partnership between EPA and
organizations that are interested in buy-
ing green power. Through this program,
EPA supports organizations that are
buying, or planning to  buy, green power.
As a  Green  Power Partner, an organiza-
tion pledges to replace a  portion of its
electricity consumption with green
power within one year of joining the
partnership. See http://www.epa.gov/
greenpower.

State Activities and Partnerships
DOE's Office of Energy Efficiency and
Renewable Energy (EERE) provides
technical assistance to state and local
jurisdictions that enables them to adopt
renewable energy and energy efficien-
cy technologies. The program offers
training, technical assistance, and
information on state activities. More
information can be found at:
http://www.eere.energy.gov/states/.

The State Energy Program
DOE provides grants to states and
directs funding to state energy offices
from technology programs in EERE.
States use grants to address their ener-
gy priorities and program funding to
deploy emerging renewable energy and
energy efficiency technologies. More
information is available at:
http://www.eere.energy.gov/
state_energy_program/.
•e
Technical Assistance Program (TAP)
TAP provides state and local officials
quick, short-term access to experts at
DOE national laboratories for assistance
with crosscutting renewable energy and
energy efficiency policies and programs.
TAP helps states in crosscutting areas
not currently covered by an existing DOE
program. More information is available
at: http://www.eere.energy.gov/
wip/informationsources/Tap.html.
ib
DOE
>le
  For more information on EPA, DOE,
  and other federal agency clean
  energy efforts, see Appendix A,
  Federal Clean Energy Programs.
                                                                                                           Executive Summary

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                                                                EPA Clean Energy-Environment Guide to Action
                                                                                                                 Clean EnergyEnriranmant
                                                                                                                 STATE PARTNERSHIP
Federal, State, and Nongovernmental Clean Energy Resources
The following Web sites provide links to the federal, state, and nonprofit information resources and technical assis-
tance opportunities that are described  in Table  ES.3.
  Organization
 EPA and DOE
          Resource
                 ENERGY STAR
                 Energy Efficiency Action Plan
                 ENERGY STAR Financing Strategies
                 ENERGY STAR for Government
                 ENERGY STAR National Campaigns
                 ENERGY STAR Online Training
                 Sessions
                 ENERGY STAR Purchasings
                 Procurement
                 ENERGY STAR Qualified New Homes
                 ENERGY STAR Qualified Products
                 ENERGY STAR Residential
                 Marketing and Sales Materials
                 ENERGY STAR Service and Product
                 Provider Directory
                 Federal Tax Credits for Residential
                 Energy Efficiency
                                                     Federal Resources
                                http://www.energystar.gov/index.cfm?c=hom.index
                                http://www.epa.gov/cleanenergy/eeactionplan.htm
                                http://www.ene rgystar.gov/index. cfm?c=business.bus_internet_presentations#money
                                http://www.ene rgystar.gov/index. cfm?c=government.bus_government
                                http://www.energystar.gov/index.cfm?c=promotions.pt_national_promotions
                                http://www.energystar.gov/index.cfm?c=business.bus_internet_presentations#procure
                                http://www.ene rgystar.gov/index. cfm?c=bulk_purchasing.bus_purchasing
                                http://www.energystar.gov/index.cfm?c=new_homes.hm_index
                                http://www.ene rgystar.gov/index. cfm?fuseaction=find_a_product
                                http://www.ene rgystar.gov/index. cfm?c=bldrs_lenders_raters.pt_ResMktgSalesM ate rials
                                http://www.ene rgystar.gov/index. cfm?fuseaction=SPP_D I RECTORY
                                http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
 EPA
Clean Energy-Environment State
Partnership Program
                                                  http://www.epa.gov/cleanenergy/stateandlocal/ourpartners.htm
                 Combined Heat and Power
                 Partnership
                 •  CHP Partner Resources, Funding
                    Opportunities
                 •  CHP Partnership State Resources
                 •  CHP Partnership State Resources:
                    Output-Based Regulations
                 •  CHP Partnership State
                    Resources: Utility Rates
                                http://www.epa.gov/chp/

                                http://www.epa.goV/chp/f unding_opps.htm

                                http://www.epa.gov/chp/state_resources.htm
                                http://www.epa.gov/chp/state_resources/output_based_reg.htm

                                http://www.epa.gov/chp/state_resources/utility.htm
                 EPA Guidance Documents:
                 Incorporating Emerging and
                 Voluntary Measures in a State
                 Implementation Plan
                                http://www.epa.gov/ttn/oarpg/t1/memoranda/evm_ievm_g.pdf
                                (http://www.epa.gov/cleanenergy/stateandlocal/guidance.htm)
                 EPA-State Energy Efficiency
                 Renewable Energy Projects
                                http://www.epa.gov/cleanenergy/utilitypolicy/
                 Funding Opportunities: A Directory
                 of Energy Efficiency, Renewable
                 Energy and Environmental
                 Protection Assistance Programs
                                http://www.epa.gov/cleanenergy/pdf/eerejun.pdf
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                   EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
            Organization
           EPA
           Resource
Green Power Partnership
                                                          Federal Resources (continued)
http://www.epa.gov/greenpower/
                           Supplemental Environmental
                           Projects Toolkit
                                 http://www.epa.gov/cleanenergy/pdf/se p_toolkit.pdf
           DOE
Appliances and Commercial
Equipment Standards
                                                            http://www.eere.energy.gov/buildings/appliance_standards/
                           Building Energy Codes Program
                                 http://www.energycodes.gov/
                           Energy Policy Act of 2005: Tax
                           Credits for Renewable Energy
                                 http://www.energy.gov/taxbreaks.htm
                           The Green Power Network
                                 http://www.eere.energy.gov/greenpower/
                           National Renewable Energy
                           Laboratory
                                 http://www.nrel.gov/
          Appliance
          Standards
          Awareness
          Project
                           State Energy Program
Appliance Standards Awareness
Project Web site
                                 http://www.ee re.energy.gov/state_energy_prog ram/a bout, cfm
                                                          State and Nonprofit Resources
http://www.standardsasap.org
           Building Codes
           Assistance
           Project
Building codes implementation and
technical assistance
http://www.bcap-energy.org
           California
           Energy
           Commission
Appliance efficiency regulations
and products database
http://www.energy.ca.gov/appliances/
           DSIRE
Information on federal incentives
for renewable energy and energy
efficiency
http://www.dsireusa.org/library/includes/genericfederal.cfm7CurrentPage I D=1&state=us
          The Regulatory
          Assistance
          Project (RAP)
RAP report: Accommodating
Distributed Resources in the
Wholesale Market
http://www.raponline.org/showpdf.asp?PDF_URL=%22Pubs/DRSeries/DRWhllMkt.pdf%22
           U.S. Green
           Building Council
LEED certification requirements
http://www.usgbc.org
                                                                                                              Executive Summary

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                                                   EPA Clean Energy-Environment Guide to Action
                                                                                           Clean EnergyEnriranmant
                                                                                           STATE PARTNERSHIP
EPA Clean Energy-Environment State Partnership Program Contact Information

To download the Clean Energy-Environment Guide to Action, visit EPA's Clean Energy Web site at:
http://www.epa.gov/cleanenergy/stateandlocal/.

To order a print copy of the Guide to Action, contact the National Service Center for Environmental Publications
(NSCEP) at:  http://www.epa.gov/ncepihom/ordering.htm. Or call NSCEP at: 1-800-490-9198.
Request EPA Publication No. 430-R-06-001.

For more information about the Guide to Action, please contact the EPA Clean Energy-Environment State
Partnership  Program staff:

EPA Clean Energy-Environment State Partnership Program Contacts:
Julie Rosenberg, Branch Chief
Phone:202-343-9154
E-mail: rosenberg.julie@epa.gov

Steve Dunn, Policy Analyst
Phone: 202-343-9341
E-mail: dunn.stevev@epa.gov

Mailing Address:
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW
6202J
Washington, DC 20460
   Executive Summary

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               EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
        References
Title/Description URL Address
ACEEE. 2004a. A Federal System Benefits Fund: Assisting States to Establish Energy
Efficiency and Other System Benefit Programs. American Council for an Energy-
Efficient Economy, Washington, DC.
ACEEE. 2004b. Five Years In: An Examination of the First Half-Decade of Public
Benefits Energy Efficiency Policies. Report# U041. American Council for an Energy-
Efficient Economy, Washington, DC. April.
ACEEE. 2004c. Summary Table of Public Benefit Programs and Electric Utility
Restructuring. American Council for an Energy-Efficient Economy, Washington, DC.
Bird, L. and B. Swezey. 2004. Green Power Marketing in the United States: A Status
Report. Seventh Edition. NREL/TP-620-36823. National Renewable Energy Laboratory,
Golden, CO. September.
CEC. 2003. Initial Study/Proposed Negative Declaration for the 2005 Building Energy
Efficiency Standards for Residential and Nonresidential Buildings. P400-03-018.
September. California Energy Commission.
CEC. 2005a. California Energy Commission. Integrated Energy Policy Report. Adopted
November 21, 2005. Docket #04-IEP-1 et. al.
CEC. 2005b. California Appliance Efficiency Regulations. CEC-400-2005-012. April.
CEC and CPUC. 2005. California Energy Commission and California Public Utilities
Commission. Energy Action Plan II, Implementation Roadmap for Energy Policies.
October.
CEAB. 2005. Energy Plan for Connecticut. Prepared by the Connecticut Energy
Advisory Board forthe Connecticut General Assembly. January.
CPUC. 2004. Order Instituting Rulemaking to Examine the Commission's Future
Energy Efficiency Projects, Administration and Programs, September 23, 2004,
Decision 04-09-060, Rulemaking 01-08-028 "Interim Opinion: Energy Savings Goals for
Program Year 2006 and Beyond." California Public Utilities Commission.
CPUC. 2005. Press Release: Comments at September 22, 2005 PUC Meeting by
Commissioner Susan P. Kennedy. "PUC Launches Groundbreaking Energy Efficiency
Effort." September 22, 2005.
Delaski. 2005. Personal memo from Andrew Delaski, Appliance Standards
Awareness Project. August 1.
DOE. 2005a. State Energy Program: Projects by Topic — What Are State and Local
Government Facility Projects in the States?
DOE. 2005b. State Energy Alternatives: Energy Codes and Standards. Energy Efficiency
and Renewable Energy Web Site. U.S. Department of Energy, Washington, DC.
DOE. 2005c. Texas Revolving LoanSTAR Conservation Update Feature Story. U.S.
Department of Energy, Energy Efficiency and Renewable Energy, State Energy
Program Web site. January/February.
DOE. 2005d. Green Power Markets: Green Pricing Utility Programs by State. Energy
Efficiency and Renewable Energy, DOE Web site. December 9.
DSIRE. 2005. Database of State Incentives for Renewable Energy Web site.
http://www.aceee.org/energy/pbf.htm
http://www.aceee.org/pubs/u041.htm
http://www.aceee.org/briefs/mktabl.htm
http://www.eere.energy.gov/greenpower/pdfs/36823.pdf
http://www.energy.ca.gov/reports/
2003-09-12_400-03-018.PDF
http://www.energy.ca.gov/energypolicy/index.html
http://www.energy.ca.gov/appliances/2005regulations/
index.html
http://www.cpuc.ca.gov/PUBLISHED/REPORT/51604.htm
http://www.ee rc.com/pdfs/ceabe nergyplan_final05.pdf
http://www.cpuc.ca.gov/PUBLISHED/FINAL DECISION/
40212.htm
http://www.cpuc.ca.gov/PUBLISHED/NEWS RELEASE/
49757.htm
N.A.
http://www.eere. energy.gov/state_energy_program/
topic_definition_detail.cfm/topic=115
http://www.eere.energy.gov/states/alternatives/
codes_standards.cfm
http://www.eere. energy.gov/state_energy_program/
feature_detail_info.cfm
http://www.eere.energy.gov/greenpower/markets/
pricing. shtml?page=1
http://www.dsi reusa.org/index.cfm?&CurrentPagelD=2
                                                                                         Executive Summary

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                                                 EPA Clean Energy-Environment Guide to Action
                                                                                      Clean EnergyEnriranmant
                                                                                      STATE PARTNERSHIP
References (continued)
Title/Description URL Address
Ecotope. 2001. Baseline Characteristics of the Residential Sector: Idaho, Montana,
Oregon, and Washington. Northwest Energy Efficiency Alliance, Portland, OR.
December.
EIA. 2005a. Annual Energy Outlook 2005. DOE/EIA-0383(2005). U.S. Energy Information
Administration, Washington, DC. January.
EIA. 2005b. Electric Power Monthly, December 2005. Table 5.6.A. Average Retail Price
of Electricity to Ultimate Customers by End-Use Sector, by State, September 2005 and
2004. U.S. Energy Information Administration, Washington, DC.
EIA. 2005c. U.S. Electric Net Summer Capacity, data for 2004. Coal, Nuclear, Electric
and Alternate Fuels, August 2005. U.S. Energy Information Administration,
Washington. DC.
EPA. 2004a. Output-Based Regulations: A Handbook for Air Regulators.
Environmental Protection Agency. April 22.
EPA. 2004b. Incorporating Emerging and Voluntary Measures in a State
Implementation Plan. U.S. Environmental Protection Agency, Office of Air Quality
Planning and Standards. September.
EPA. 2005a. Air Data Web site. 2005 data. Environmental Protection Agency.
Accessed November 2005.
EPA. 2005b. EPA Research. Complied by EPA from various state legislation and regu-
lations.
Gross, T. 2005. Texas PUC personal communication with Theresa Gross.
Hansen, D.G. and S.D. Braithwait. 2005. Christensen Associates. A Review of
Distribution Margin Normalization as Approved by the Oregon Public Utility
Commission for Northwest Natural. March.
Iowa. 2005. Governor Vilsack Directs State Agencies to Improve Their Energy
Efficiency. April 22.
Nadel, S., A. Shipley, and R.N. Elliott. 2004. The Technical, Economic and Achievable
Potential for Energy Efficiency in the U.S. — A Meta-Analysis of Recent Studies.
American Council for an Energy-Efficient Economy, Washington, DC. From the pro-
ceedings of the 2004 ACEEE Summer Study on Energy Efficiency in Buildings.
Nadel, S., A. deLaski, J. Kleisch, and T. Kubo. 2005. Leading the Way: Continued
Opportunities for New State Appliance and Equipment Efficiency Standards. Report
Number ASAP-5/ACEEE-A051. American Council for an Energy Efficiency Economy,
Washington, DC, and Appliance Standards Awareness Project, Boston, MA. January.
Navigant. 2003. The Changing Face of Renewable Energy. October.
http://www.nwalliance.com/resources/reports/95.pdf
http://www.eia.doe.gov/oiaf/archive/aeo05/index.html
http://tonto.eia.doe.gov/ftproo1/electricity/epm/02260512.pdf
http://www.eia.doe.gov/cneaf/solar.renewables/page/
trendsAable12.html
http://www.epa.gov/chp/pdf/output_rpt.pdf
http://www.epa.gov/ttn/caaa/t1/meta/m8507.html
http://www.epa.gov/air/data/index.html and
http://www.epa.gov/air/data/nonat.html?
us~usa~United%20States
N.A.
N.A.
Contact:
Christensen Associates Energy Consulting, LLC
4610 University Avenue, Suite 700
Madison, Wisconsin 53705-2164
Phone 608-231-2266 Fax 608-231 -2108
http://www.governor.state.ia.us/news/2005/april/
april2205_1.html
http://www.aceee.org/conf/04ss/rnemeta.pdf
http://www.standardsasap.org/a051.pdf
URL not available.
   Executive Summary

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              EPA Clean Energy-Environment Guide to Action
Clean EnargyEnriranmant
STATE PARTNERSHIP
  References  (continued)
Title/Description URL Address
Navigant. 2005. Company intelligence. Navigant Consulting Inc. Also see: Katofsky, R.
and L. Frantzis. 2005. Financing renewables in competitive electricity markets. Power
Engineering. March 1.
INFER 2005. Economically Achievable Energy Efficiency Potential in New England.
Northeast Energy Efficiency Partnerships by Optimal Energy. Updated May 2005.
Northwest Power and Conservation Council. 2005. The 5th Northwest Electric Power
and Conservation Plan. Northwest Power and Conservation Council. May 2005.
NYSERDA. 2004. New York Energy SmartSM Program Evaluation and Status Report.
Report to the System Benefits Charge Advisory Group. Final Report. New York State
Energy Research and Development Authority, Albany. May.
Oregon DOE. 2005. Oregon Business Energy Tax Credit (BETC) and Residential Energy
Tax Credit (RETC). Oregon Department of Energy Conservation Division, Salem.
Oregon PUC. 2002. Order No. 02-634, Application for Public Purposes Funding and
Distribution Margin Normalization. Oregon Public Utility Commission. September 12.
SWEEP. 2002. The New Mother Lode: The Potential for More Efficient Electricity Use
in the Southwest. Report for the Hewlett Foundation Energy Series. Southwest
Energy Efficiency Project. November.
State of New York. 2005. Governor Pataki's press release for the Appliance and
Equipment Energy Efficiency Standards Act of 2005.
Texas SECO. 2005. Texas State Energy Conservation Office. LoanSTAR Revolving
Loan Program Web site.
UCS. 2004. Table of State Renewable Energy Funds. Union of Concerned Scientists.
WGA. 2005. The Potential for More Efficient Electricity Use in the Western U.S.:
Energy Efficiency Task Force Draft Report to the Clean and Diversified Energy
Advisory Committee of the Western Governors' Association, Draft Report for Peer
Review and Public Comment. Western Governors' Association. September 15, 2005.
Wl DOA. 2004. Wisconsin Public Benefits Programs Annual Report. July 1, 2003 to
June 30, 2004. Department of Administration, Division of Energy, Madison, Wl.
Wiser, R., M. Bolinger, E. Holt, and B. Swezey. 2001. Forecasting the Growth of Green
Power Markets in the United States. NREL/TP-620-30101, Golden, CO. National
Renewable Energy Laboratory, October.
WRAP. 2003. Renewable Energy and Energy Efficiency as Pollution Prevention
Strategies for Regional Haze. Prepared by the Air Pollution Prevention Forum for the
Western Regional Air Partnership. April.
http://www.navigantconsulting.com/A559B1/navigantnew.
nsf/vGNCNTByDocKey/PPA91045514813/$FILE/Financing
%20Renewables%20in%20Competitve%20Electricity%
20Markets_Power%20Engineering_March%202005.pdf
http://www.neep.org/files/Updated Achievable Potential
2005.pdf
http://www.nwppc.org/energy/powerplan/default.htm
http://www.nyserda.org/EnergyJnformation/04sbcreport.asp
http://egov.oregon.gov/Energy/CONS/BUS/BETC.shtml
http://egov.oregon.gov/Energy/CONS/RES/RETC.shtml
http://apps.puc.state.or.us/
Click on Orders, View Orders 2000 to Current, List Orders for
2002, Order No. 02-634.
http://www.swenergy.org/nml
http://www.state.ny. us/governor/press/05/a pril20_2_05.htm
http://www.seco.cpa.state.tx.us/ls.htm
http://www.ucsusa.org/clean_energy/
clean_energy_policies/
clean-energy-policies-and-proposals.html
Click on PDF Link: State Renewable Energy Funds
http://www.westgov.org/wga/initiatives/cdeac/
Energyefficiencydraft9-15.pdf
http://www.cleanenergystates.org/library/wi/
2004FocusAnnualReport.pdf
http://www.eere.energy.gov/greenpower/resources/
pdfs/301 01.pdf
http://www.wrapair.org/forums/ap2/docs.html
                                                                                   Executive Summary

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