UNITED STATES
DEPARTMENT OF ENERGY
PUBLIC HEARINGS
NATIONAL ENERGY POLICY REVIEW OF DEPARTMENT OF ENERGY’S
OFFICE OF ENERGY EFFICIENCY
AND RENEWABLE ENERGY PROGRAMS
JUNE 21, 2001
SHERATON RITTENHOUSE SQUARE HOTEL
18TH AND LOCUST STREETS (227 SOUTH 18TH STREET)
PHILADELPHIA, PENNSYLVANIA 19103
COMMENTS BY BLOSSOM A. PERETZ, ESQ.
RATEPAYER ADVOCATE
On behalf of Blossom Peretz, Ratepayer Advocate for the State of New Jersey, I wish to thank you for the opportunity to provide comments on this very important topic of DOE funding and performance of energy efficiency and renewable programs.
At the outset let me state that the New Jersey Division of the Ratepayer Advocate is impressed by the breadth and extent of the National Energy Policy report, which encompasses numerous recommendations, including a review of current energy efficiency and renewable programs. The NEP Report touches many bases, and tries to provide a comprehensive policy to deal with our current energy problems. It is our belief that the current energy crisis can only be solved in a comprehensive fashion, and that the input of many concurrent strategies is the only way to resolve the current energy crisis on a permanent and sustainable basis. That comprehensive solution requires significant consideration of not only supply side technologies, such as building more generation plants and increasing their efficiency, but also requires equal consideration of demand side technologies that are under review here.
First and foremost, that requires adequate funding levels. The DOE to its credit has funded a wide variety of energy efficiency and renewable technologies. Much good work has been done, and many advances have been made, but much more needs to be done for these technologies to become economically viable. For that purpose, funding needs to be increased exponentially to build on and accellerate the progress made to date. We need to drastically increase funding for solar energy or photovoltaics. That holds the promise of near term success and has the potential of solving the energy problems of California, which is blessed with much sun, especially at peak times. California’s peak problems could improve if solar energy became widely used.
In New Jersey, we just enacted a comprehensive resource program to fund numerous energy efficiency and renewable programs. We are funding these new programs for both electric and gas consumers, at a minimum of $115 million for the next eight years, with increases in that funding level over time. The funding will go towards a wide variety of programs, with provisions to measure their energy savings and cost effectiveness. New Jersey has chosen this course as part of its restructuring process, because energy policy requires consideration of both sides of the energy equation, supply and demand. We hope that the results of New Jersey’s efforts will become part of the national energy picture, just as we hope that the results of the national effort will aid the states individually.
In planning and implementing clean energy programs in New Jersey, we understand the importance of national standards to facilitate these programs. We therefore urge the federal government to propound as soon as reasonably possible national interconnection standards based on accepted technical principles. Much work has already been done in that area, but mandating nationally accepted interconnection standards would provide an enormous boost to clean energy programs. Similarly, an increase in national energy efficiency standards for appliances would also aid the demand side of the equation.
Additionally, as part of our restructuring legislation we have instituted Renewable Portfolio Standards for electric suppliers. By providing room in the total energy picture for renewables, we are ensuring a market and a foothold for these programs, with the hope that this leverage will eventually enable them to become economically sustainable. We recommend that the federal government consider the use of such a renewable Portfolio Standard.
We also propose that consumers be encouraged to use renewable technologies. Pursuant to the requirements of our restructuring Act, New Jersey just promulgated net metering standards. Net metering provides cost benefits to consumers who install renewable technologies. We suggest that the DOE fund research into electronic metering, such that system benefits from these technologies can be properly measured, especially at peak times, and reward consumers who provide energy to the grid at those times.
The National Energy Policy recogizes the benefits of distributed energy. We concur that distributed energy or distributed generation has the potential of providing significant benefits to the power grid, and should be encouraged wherever possible. Distributed generation should work in tandem with the power grid to provide greater reliability to customers, especially for computer applications which demand high quality power as a basic necessity. Distributed generation also provides power at greater efficiency, since it is closer to the source of use than central power plants. Also, since Distributed generation is closer to the source, it does not require expensive and difficult- to- site transmission lines. Additionally, it does not suffer the disadvantage of the significant losses experienced over grid transmission lines. The DOE should look into increased funding for Distributed generation to increase grid efficiency and reliability.
We commend the Administration’s efforts to recognize the positive effects of clean energy programs as part of our national energy plan. In that respect, we applaud the administration’s proposed tax credits for such programs as well as the executive order requiring federal agencies to require "energy impact statements" in proposed regulations. If the states and the federal government work together towards a comprehensive energy plan which includes both the demand and supply side of the energy picture, it will provide the silver lining for the California energy crisis.
Thank you for allowing me to present these comments.