Options for Oil/Propane, N.Gas
• • • • • Background factors Progress so far Options discussed, prior phases Dedicated funding options Next steps
Relevant Background Factors
• IEA World Energy Outlook 2004: 59% increase in primary energy use 2004 till 2030. • 85% of increase from carbon-emitting fossil fuels: coal, oil, gas. • Two-thirds of new demand from developing world, but demand growing here too.
Background Factors, cont’d.
• Gas & oil dominate residential heating, also important in nonresidential markets in RI • Increasing gas and oil prices • Efficient and advanced gas technologies • Efficient and advanced oil technologies • Weatherization opportunities remain • Gas DSM in MA but not RI • NORA now promotes oilheat R&D, training, PR
Some Progress
• Energy Office stepped up to plate with 2 new programs – Small C&I Program – ESCo/performance contracting program • Gas utility agreed to extend GasNet programs to RI • PP&L got biodiesel program grant
Options Discussed Prior Phases -- Grant Approach
• Federal grant –DOE state energy program -renew? –EPA small grant -- renew? • NORA grant -- try?
Options Discussed (cont’d.)
• Increase gas DSM funding –Requires PUC action or legislation • Establish funding for oil & gas EE –Requires legislation
Dedicated Funding for Oil or Oil/Gas EE -- Options
• Electric utility collects, passes to State for programs – Like RCS in past, renewables now • Levy on usage or sales or oil or oil/gas – All building sector usage (see draft legislation) – Just residential (partial lift of residential heating fuel sales tax exemption)
Rough Draft Legislation
• Illustrative, preliminary concept from last phase • Surcharge on fossil fuel usage • Dedicated fund for oil/gas energy efficiency and renewables (like biodiesel) • Suggested funding level – Natural gas -- $0.0089/therm – Propane -- $0.0076/gallon – Fuel oil-distillate (heating oil) -- $0.0124/gallon – Fuel oil-residual -- $0.0133/gallon
NEXT STEPS
• Expand discussion • CLFNE, other potential intervenors/participants/applicants • OHIRI • Key oilheat dealers • State economic development people • Foundation avenues -- Pew? • OTHER??