State Clean Energy Funds: The New Partners on the Air Quality Block

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State Clean Energy Funds The New Partners on
the Air Quality Block
   
Creating Clean Air Quality Collaborations in the
Northeast Westbrook, CT October 22, 2002
Lew Milford Clean Energy Group 50 State Street,
3rd Floor Montpelier, VT 05602 (802)
223-2554 Lmilford_at_cleanegroup.org
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Who is Clean Energy Group?

• New U.S. non-profit working on state and
  regional clean energy opportunities
• Joint projects with state renewable funds
• Focus on value niche markets
• Non-profit/business partnerships
• Climate change action at state level
• New states organization Clean Energy States
  Alliance

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We Cant Count on Washington For Climate Change
Solutions
The Economist, June 8, 2002
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Look to States for Climate Change Solutions

All across the US, growing evidence suggests
that a real movement has begun at the
sub-federal level to lower greenhouse gas
emissions

• Major replacement of fossil fuels or reductions
  in energy demand,
• carbon dioxide containment efforts, or
  investment in new technologies
• to bring them about will not occur without
  serious market incentives

State clean energy fundsmay transform renewable
energy from niche to mainstream energy source

• Michael Northrop, Addressing Global Warming A
  Way Forward, Environmental Grantmakers
  Association, Winter 2002
• Thomas C. Schelling, What Makes Greenhouse
  Sense?, Foreign Affairs, May-June 2002.
• Ryan Wiser, Lewis Milford, et al, States
  Emerge As Clean Energy Investors, Electricity
  Journal, November 2001

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States As New Clean Energy Investors

• As a result of electric utility restructuring,
  the states will have over 3 billion to invest in
  clean energy activities over the next decade.
  This is one of the single largest sources of new
  funding for clean energy.
• Figure 1 Aggregate Annual and Cumulative State
  Funding of Renewable Energy Programs

400
4.0
Annual, all states (left scale)
350
3.5
Cumulative (right scale)
300
3.0
250
2.5
Million US
Billion US
200
2.0
150
1.5
100
1.0
50
0.5
0
0.0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

• (Source Wiser, Milford, et al, ibid at 84.)

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State Funds Clean Energy Experiments
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CEFN (www.cleanenergyfunds.org)

• Clean Energy Funds Network (2000-2002)
• State interest (9-14 states by projects)
• Joint markets building

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Clean Energy Funds Network (CEFN) Will Be Clean
Energy States Alliance
Public Education
Solar Niche Markets
Fuel Cell Aggregation
Joint Activities www.cleanenergyfunds.org
Market Reform
Green Tags
Finance Best Practices
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Public Education

• National renewable brand
• Multi-state participation
• Focus groups, message development
• What works after CA, Enron, 9/11, WorldCom?
• Security, independence
• Ad agency experts (former creative director
  Saatchi Saatchi)
• Joint media campaign

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Fuel Cell Aggregation

• Early market failures
• Joint state effort
• Cost reductions
• Market intelligence

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Innovative Renewable Practices Report

• CEG and Berkeley Laboratories
• State funds as test beds for innovation
• 21 program and project innovations
• Need for best practices summaries
• Create learning network across states
• See report at www.cleanenergyfunds.org

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Green Power

• Regional supply and demand problem
• Financial, long term contract, other barriers
• Regulatory gaps (RPS)
• Collaborative regional approach
• States, developers, financial professionals,
  customers

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PV and Multi-state Deployment

• Niche markets
• Targeted market approach
• Joint deployment
• Cost reductions

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States, Finance and Foundations

• Investment Feasibility Study
• Clean Energy Initiative
• Rockefeller Brothers Fund, Surdna and Oak
  Foundation
• Multi state funding and leveraged foundation
  investment
• Structural options (ECo)
• Pooling, leveraging, risk reduction, national
  market
• Clean energy as social investing

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Conclusion

• State funds as new regional partners in
  collaborative enterprises
• They are key actors to bring about climate change
  action at the sub-federal level through clean
  energy commercialization.
• They could make real the elusive but necessary
  equation
• Clean energy economic development