Energy-Air Quality Integrationin Texas

2018 NASEO Energy Policy Outlook Conference February 7, 2018

Dub Taylor, Director

Texas State Energy Conservation Office (SECO)

Energy in Texas – Quick Facts

• Leading oil-producing state, producing more than one-third of the nation's crude oil

• 29 petroleum refineries in Texas able to process more than 5.6 million barrels of crude oil per day - 30% of total U.S. refining capacity

• 25% of U.S. marketed natural gas production in 2016 - leading natural gas producer among the states

• Leads the nation in wind-powered generation capacity with more than 21,450 megawatts – wind now produces more electricity than the state's two nuclear power plants

• Nation's largest producer of lignite coal - 40% of the coal-fired power plants in Texas burn lignite for electricity generation

Air Quality Challenges in Texas – Ozone, CO, PM10

The year 2000...

Most Polluted Cities

We’re #1, but its golf not football…

Legislative Response – SB5 (2001)

Texas Emissions Reduction Plan (TERP)

• Mobile source reduction incentives

• Reduced electricity consumption• Texas Building Energy Performance

Standards (codes)• Energy-Efficient Building Program

(2003)• Emissions credit for renewables

(2005)• Building energy code update process

(2007)

• TERP extension to 2019 (2009)

• Additional emissions crediting (2011)

• TERP extension until attainment reached (2017)

53%

47%

66%

Electric System Losses = EE Multiplier

(44-68%)Thermal / Conversion

(8%)T&D

30-50%Total Efficiency

ERCOT – An Electric Grid Island

9

10

Texans Want Renewable Energy

Preference?

Renewables 49%

Efficiency 31%

Fossil 14%

Buy & Transport 5%

Will you pay more?

Renewables +$5

Efficiency +$2

Fossil +$0

IRP Deliberative PollsTM (’95-’98)

(8 largest IOUs, 67% of Texas customers)

11

Texas Renewable Energy Portfolio Standard (RPS)

• 1999 - part of retail competition legislation SB7 (Bush)• 2,000 new MW by 2009 (880 MW existing)

• 2005 – RPS expanded (Perry)• 5,000 new MW by 2015

• 10,000 MW by 2025 (stretch goal)

• Authorized “speculative” transmission - CREZ

• 2017 - status• > 22,000 MW installed

• 18% of annual generation (40% peak)

RPS Net Economic Benefit

• Infrastructure

• Generating Facilities

• Operations, O&M

© 2005 by The Perryman Group

CREZ Scenarios

Wind Zone MW

Panhandle A 3,191

Panhandle B 2,393

McCamey 1,859

Central 3,047

Central West 1,063

Total* 18,456

* Assumes 6,903 MW of

existing wind capacity

1,705 miles of new 345-kV double circuits

453 miles of new 345-kV single circuit

371 miles of 345-kV rebuild & upgrade

Est. $4.9 billion ($7 billion actual)

5

September 10, 2008 14

Kimberly-Clark to Power North American Mills with Renewable Wind Energy - Sep 14, 2017

Jeff Bezos christens Amazon's new Texas 253 MW wind farm - Oct 19, 2017

https://www.youtube.com/watch?v=CAQ2wWVlOuc

Integrated NOx Emissions Reduction Process Flow Diagram of the NOx Emissions Reduction Calculations

ESL-Single

Family

(MWh/County)

ESL-Multifamily

(MWh/County)

ESL-Commercial

Buildings

(MWh/County)

PUC-SB7

(MWh/CM)

Wind-ERCOT

(MWh/CM)

SECO

(MWh/CM)

2010 25% Annual NOx eGRID

(Projection Emissions Reduction till 2020)

NOx Emissions

Reduction

by Program

NOx Emissions

Reduction

by County

NOx Emissions

Reduction

by SIP Area

Combined Energy and NOx Savings Summary

(All Programs for the 194 ERCOT Counties)

Base year, Projected year and Adjustment factors

NOx Emissions Reduction

For ERCOT Counties excluding

Houston/Galveston Area

NOx Emissions Reduction for

Dallas/Fort Worth and Surrounding

Area within a 200 km Radius

SEER13-Single

Family

(MWh/County)

SEER13-

Multifamily

(MWh/County)

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Impacts – Emissions

Most Polluted Cities

By Ozone By Year Round Particle Pollution By Short-Term Particle Pollution

#1: Los Angeles-Long Beach, CA

#2: Bakersfield, CA

#3: Fresno-Madera, CA

#4: Visalia-Porterville-Hanford, CA

#5: Phoenix-Mesa-Scottsdale, AZ

#6: Modesto-Merced, CA

#7: San Diego-Carlsbad, CA

#8: Sacramento-Roseville, CA

#9: New York-Newark, NY-NJ-CT-PA

#10: Las Vegas-Henderson, NV-AZ

#11: Denver-Aurora, CO

#12: Houston-The Woodlands, TX

#13: Dallas-Fort Worth, TX-OK

#14: El Centro, CA

#15: Fort Collins, CO

#16: El Paso-Las Cruces, TX-NM

#17: Redding-Red Bluff, CA

#18: San Jose-San Francisco-

Oakland, CA

#19: San Antonio-New Braunfels, TX

#20: Salt Lake City-Provo-Orem, UT

#1: Visalia-Porterville-Hanford, CA

#2: Bakersfield, CA

#3: Fresno-Madera, CA

#4: San Jose-San Francisco-Oakland, CA

#5: Los Angeles-Long Beach, CA

#6: Modesto-Merced, CA

#7: El Centro, CA

#8: Pittsburgh-New Castle-Weirton, PA-

OH-WV

#9: Cleveland-Akron-Canton, OH

#10: San Luis Obispo-Paso Robles-Arroyo

Grande, CA

#11: Medford-Grants Pass, OR

#11: Philadelphia-Reading-Camden, PA-

NJ-DE-MD

#13: Louisville-Jefferson County-

Elizabethtown-Madison, KY-IN

#13: Indianapolis-Carmel-Muncie, IN

#13: Johnstown-Somerset, PA

#16: Houston-The Woodlands, TX

#17: Fairbanks, AK

#18: Detroit-Warren-Ann Arbor, MI

#18: Altoona, PA

#20: Cincinnati-Wilmington-Maysville, OH-

KY-IN

#20: Lancaster, PA

#1: Bakersfield, CA

#2: Fresno-Madera, CA

#2: Visalia-Porterville-Hanford, CA

#4: Modesto-Merced, CA

#5: Fairbanks, AK

#6: San Jose-San Francisco-Oakland,

CA

#7: Salt Lake City-Provo-Orem, UT

#8: Logan, UT-ID

#9: Los Angeles-Long Beach, CA

#10: Reno-Carson City-Fernley, NV

#11: El Centro, CA

#12: Lancaster, PA

#13: Missoula, MT

#14: Sacramento-Roseville, CA

#14: Anchorage, AK

#16: Yakima, WA

#17: Seattle-Tacoma, WA

#17: Pittsburgh-New Castle-Weirton,

PA-OH-WV

#19: Medford-Grants Pass, OR

#20: Philadelphia-Reading-Camden,

PA-NJ-DE-MD

Dub Taylor, DirectorTexas State Energy Conservation Office

512.463.8352dub.taylor@cpa.texas.gov

https://comptroller.texas.gov/programs/seco

Questions / Contact Information