David HochschildCommissioner

California Energy Commission

SUNRISE FROM THE WEST:DRIVING CALIFORNIA INTO THE

CLEAN ENERGY ERA

2

3

4

Largest Manufacturing Plant in CA Produces Electric Vehicles

Tesla employs 38,000 people

Tesla FactoryFremont, CA

580,000 ELECTRIC VEHICLES

IN CALIFORNIATODAY

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1900. Where is the first car?

1913. Where is the last horse?

9

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gen

erat

ion

(TW

h)

Year

US Solar PV Generation

AEO 2012

Actual

Source: EIA Annual Energy Outlook 2004-2017, EIA Electric Power Monthly July 25, 2017

Most of the New Generation Added to the Grid is Renewable Energy

Renewables = 65% of New US Electric Generation Capacity in 2015

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RenewablesFossil Fuels

11,298 MW

5,974 MW

Source: FERC Energy Infrastructure Update, January-December 2015

Most of the Retirements are Fossil Energy Fossil fuels = 92% of Retired US Electric Generation Capacity in 2016*

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Fossil-7,382MW,

92%

Nuclear, Hydro-

588MW, 8%

Renewable-28MW, 0%

Source: EIA Electric Power Monthly, November 29, 2016. MW represent summer capacity.

*Data represents January 1, 2016 to

November 29, 2016

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1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Federal Energy Subsidies

PRODUCTION TAX

CREDIT (PTC)

INVESTMENT TAX

CREDIT (ITC)

OIL DEPLETION

ALLOWANCE (ODA)

1926: OIL DEPLETION ALLOWANCE ENACTED

2006: INVESTMENT TAX CREDIT ENACTED

ONGOING

1992: PRODUCTION TAX CREDIT ENACTED

SET TO EXPIRE 2022

SET TO EXPIRE 2020

*PTC Expired 6 times and Extended 7 times

California Moves to 100% Clean Energy by 2045

TODAY

34%2030

60%2045

100%

100% Mandates Passed in DC, HI, NM, WA, CO, CA12 Other States Now Proposing 100%

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Source: Graphics based on data from the American Council On Renewable Energy (ACORE)Renewable Energy in the 50 States (2013/2014 Editions)http://www.acore.org/publications/50states/ 16

(MW capacity)

California Leads the US in Renewables Installed. What lessons have been learned?

http://www.acore.org/publications/50states/

California’s GDP is growing faster than the Nation’s

17Source: U.S. Bureau of Economic Analysis, California Department of Finance, Real GDP by state (millions of chained 2009 dollars)

-5%

5%

15%

25%

35%

45%

2000 2002 2004 2006 2008 2010 2012 2014 2016

CA46% Increase

Rest of U.S.35% Increase

Perc

ent C

hang

e Si

nce

2000

0%

5%

10%

15%

20%

25%

30%

35%

2001 2002 2006 2008 2011 2014 2015 2016 2017 2018

SMALL HYDRO

GEOTHERMAL

BIOMASS

WINDSOLAR

California Making Rapid Progress on Renewable Energy

18Source: California Energy Commission, Tracking Progress Report

“The people who say it can’t be done should get out of the way of the people

who are doing it”- Chinese proverb

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The World’s Largest Thin Film Solar PV Project

Desert Sunlight Solar Project550 MWRiverside County, CA

The World’s Largest Solar Thermal Power Plant (Tower)

Ivanpah Solar Thermal Project393 MWSan Bernardino County, CA

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The World’s Largest Solar Thermal Power Plant (Trough)

Solar Energy Generating System (SEGS)354 MWSan Bernardino County, CA

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Geysers Geothermal Power Plant955 MWLake County, CA

The World’s Largest Geothermal Power Plant

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The World’s Largest Wind Project

Alta Wind Energy Center 1550 MWKern County, CA

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World’s Largest Solar RooftopApple HQCupertino, CA17MW

World’s 2nd Largest Lithium-Ion Battery Storage Project

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Escondido Storage Project120 MWhSan Diego, CA

California Leads the Nation in Biomass Energy Generation

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Honey Lake Biomass Plant Lassen County, CA

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Offshore Wind: CA’s New Renewable Resource?

Rhode Island’s 30MW Deepwater Wind Project is the first offshore wind project completed in the US.

More Californians Work in the Solar Industry Than for All Utilities Combined

Sources:Solar Foundation, 2017 Solar Jobs Census U.S. Securities and Exchange Commission, Form 10-K, 2014

http://www.sec.gov/edgar/searchedgar/companysearch.html

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10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Solar Jobs IOU/POU Jobs

SDG&E PG&E SCE POU

56,800

86,400

The Future of Energy Storage: 1.3 GW by 2020

30$5 B Tesla Battery Factory under construction

California Requires Solar for all New Homes by Jan 1, 2020

Zero Energy CommunityRocklin, CA

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The Electrification of Almost Everything

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Stanford University Converts Space and Water Heating from

Natural Gas to Electricity

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Reduces water use and GHG emissions by 2/3and annual energy bills by 1/3

Now Selling: The All-Electric Home

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CityVentures all-electric homesBellflower, CA

High Speed Rail is Coming to California and it will be 100% Powered by

Renewables…

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FOSSIL FUEL DECLINE: ONLY ONE OIL COMPANY REMAINS IN THE TOP TEN LIST COMPANIES….

Source: Forbes Fortune 500 list, top ten companies by revenue

World’s 5 Largest Companies Have Committed to 100% Renewable Energy

37

Smoking in the US

38

0

10

20

30

40

50

60

70

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020Source: Centers for Disease Control and Prevention (CDC), 2014

http://www.cdc.gov/tobacco/data_statistics/tables/trends/cig_smoking/index.htm

1965: Health warnings required on packaging

1983: Cigarette tax doubles

1988: U.S. Bans Smoking on Airplanes

Smoking Rate Falls to

15%

1970: Advertisements banned from TV

1998: CA Bans Smoking in Bars

2014: CVS Stops cigarette sales at 7,600

retail pharmacies

1992: U.S. Bans Sale to Minors

% of Americans Who Smoke

http://www.cdc.gov/tobacco/data_statistics/tables/trends/cig_smoking/index.htm

David HochschildCalifornia Energy Commission

David.hochschild@energy.ca.gov

Thank you

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Largest Manufacturing Plant in CA �Produces Electric VehiclesSlide Number 6Slide Number 7Slide Number 8Slide Number 9Most of the New Generation Added to the Grid �is Renewable Energy �Renewables = 65% of New US Electric Generation Capacity in 2015Most of the Retirements are Fossil Energy �Fossil fuels = 92% of Retired US Electric Generation Capacity in 2016*Slide Number 12Slide Number 13California Moves to 100% Clean Energy by 2045100% Mandates Passed in DC, HI, NM, WA, CO, CA�12 Other States Now Proposing 100%Slide Number 16 California’s GDP is growing faster than the Nation’sSlide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23The World’s Largest Wind ProjectSlide Number 25World’s 2nd Largest Lithium-Ion Battery Storage Project California Leads the Nation in Biomass Energy GenerationSlide Number 28More Californians Work in the Solar Industry Than for All Utilities CombinedThe Future of Energy Storage: �1.3 GW by 2020Slide Number 31The Electrification of Almost EverythingStanford University Converts Space and Water Heating from Natural Gas to ElectricityNow Selling: The All-Electric HomeHigh Speed Rail is Coming to California �and it will be 100% Powered by Renewables…FOSSIL FUEL DECLINE: ONLY ONE OIL COMPANY REMAINS IN THE TOP TEN LIST COMPANIES…. World’s 5 Largest Companies Have Committed to 100% Renewable Energy Smoking in the US% of Americans Who SmokeSlide Number 40