Appendix B THE PLANNING ENVIRONMENT

City Light’s resource decisions are made within Since I-937 requirements are largely The most recent federal legislation, the a policy context that includes state and federal independent of how much energy a utility Energy Policy Act of 2005, includes a range laws, internal policies established by the mayor, actually needs, the regulatory requirement of provisions pertaining to energy efficiency, city council and the utility, and the policies and can drive resource acquisitions that would not generating resources and fuel supply, energy guidelines of regional power planning agencies otherwise be made. I-937 can also affect the research and development, transmission, and and organizations. Over the years, the utility timing of resource acquisitions. Over time, climate change. industry has become increasingly regulated. City Light borders between being driven by The Western Governors Association is working Climate change is the most transformational renewable resource requirements and by to encourage development of renewable challenge that faces the energy industry today, resource adequacy requirements. resources and new electric transmission lines. and though not yet enacted, Federal legislation The requirements and timing of targets of I-937 to reduce and cap carbon emissions could The Pacific Northwest region is developing put many utilities into the renewable energy be the biggest policy challenge that faces the resource and transmission adequacy resource market at the same time, driving energy sector, penetrating every aspect of the standards and engaging the Bonneville Power demand for renewable resources in Washington industry. Washington state has partnered with Administration (BPA) in a dialogue about long- and the Pacific Northwest. Similarly, renewables other states and Canadian provinces to develop term delivery of power from the federal Columbia portfolio standards in other states (Oregon, a greenhouse gas trading framework called the River power system. California) will cause out-of-state utilities Western Climate Initiative (WCI). State legislation includes Initiative 937, to compete with City Light for the supply of described above. A recent Washington state In 2006, carbon constraint took center stage in available renewable resources. law requires large utilities to perform integrated Washington state with the passage of Initiative With so many organizations’ laws and policies resource plans. Another state law designates 937. The initiative requires electric utilities to affecting the planning environment, there is the Washington State Energy Facility Site have 15% of their energy provided by new, considerable uncertainty about the rules and Evaluation Council as the state authority behind renewable resources by 2020. Ninety percent environment in which City Light plans to meet siting transmission facilities under federal energy of City Light resources comes from existing the electricity demand of its customers. Those legislation. SB 6001 establishes a greenhouse hydropower, which does not count toward that have the most impact on resource planning gas performance standard of 1,100 pounds per I-937’s renewable resource requirements, are described in this appendix. megawatt-hour for all new, long-term baseload effectively limiting City Light’s resource choices power generation. to conservation and renewable resources for the integrated planning process.

Seattle City Light 2010 Integrated Resource Plan Appendix B 1 City of Seattle and City Light’s long-standing policies encourage energy conservation, the use of renewable resources, prudent financial policies and the utility’s basic mission of providing reliable service. The City has launched Climate Action Now, an initiative to reduce greenhouse gas emissions. This initiative and City Light’s greenhouse gas neutrality goal form a key element in meeting Seattle’s community reduction goal. The accompanying table summarizes the types of resource planning issues that various policies impact.

Policies Affecting Resource Planning

Policy/Issue Energy Renewable Planning Trans- Resource Power Tax CO2 Climate Efficiency Resources Methods mission Adequacy Supplies Credits Offsets Change Resolution 30144 n n n n Resolution 30359 n n Resolution 31183 n Resolution 30976 n Ordinance 122610 n Initiative 937 n n n ESHB 1010 n HB 1020 n RCW 80.60 n SSB 5101 n n BPA Regional Dialogue n NPCC Policies n n n WGA Resolution 06-10 n n n n EPACT 2005 n n n n n n ESSB 6001 n n

Seattle City Light 2010 Integrated Resource Plan Appendix B 2 The City of Seattle City of Seattle and City Light’s policies guide the Conservation and Renewable Greenhouse Gases and Climate utility’s planning and operations as they relate Resources Change to the environment and to greenhouse gas In 2000, the Seattle City Council passed Resolution 30144 also directs City Light to emissions. City Light has also developed policies Resolution 30144, which states that City Light mitigate greenhouse gas emissions from any to manage the risks of being short or long on should “use cost-effective energy efficiency and fossil fuel use and to set a long-term goal of resources and strategies to deal with energy renewable resources to meet as much load net zero annual greenhouse gas emissions. surpluses and deficits. growth as possible,” as part of a goal to meet City Light achieved net zero in 2005 and has Seattle’s electrical power needs with net zero continued each year since. The Greenhouse greenhouse gas emissions. Gas Mitigation Strategy Resolution 30359 was Environmental Policy passed in 2001. It sets standards for calculating City Light has continued its long-term practice greenhouse gas emissions and mitigation City of Seattle and City Light’s environmental of acquiring conservation through its programs projects. Climate change policy does not policies help guide the resource planning and at an annual rate of approximately 7-10 aMW, prevent City Light from acquiring electricity from acquisition process in order to protect natural and it has contracted for the purchase of resources that produce greenhouse gases, but resources and to minimize environmental approximately 45 aMW of wind power (175 MW it does require that the utility fully offset those impacts while serving Seattle’s electricity needs. of capacity) from the Stateline Wind project. emissions. City Light’s Environmental Policy Statement The city council monitors utility compliance with calls for City Light to avoid, minimize or mitigate Resolution 30144 as part of the annual reporting In February 2005, the Mayor proposed that impacts to the ecosystems that it engages with of Council Metrics. the City achieve reductions in greenhouse gas and to consider environmental costs, risks and emissions based on the Kyoto Protocol goal City Light’s conservation plans are consistent impacts when making decisions. for the United States – a 7 percent reduction in with the City of Seattle’s 2006 Climate Action greenhouse gas emissions compared to 1990 City Light’s Vision, Mission, Values Statement Plan, the Northwest Power and Conservation levels – to be achieved by the year 2012. More reaffirms that minimizing environmental impacts Council’s Fifth Power Plan (2005) and Sixth recently, Resolution 30976 and Ordinance and enhancing, protecting and preserving the Power Plan (2010), and the Kyoto Protocols. 122610 updated Seattle’s Comprehensive Plan environment are key parts of the utility’s goals. These plans are expected to meet and/or to accelerate the reduction of greenhouse gas Minimizing environmental impacts is one of the exceed I-937 requirements. four criteria used to evaluate the Integrated emissions in Seattle by 30% from year 1990 Resource Plan candidate portfolios. levels by 2024, and by 80% from 1990 levels by 2050.

Seattle City Light 2010 Integrated Resource Plan Appendix B 3 In 2007, the Mayor’s Climate Action Now was In the IRP analysis, the amount of greenhouse Four City Light resources are eligible for launched to promote reduction in greenhouse gas emissions of various resources and meeting the target: the Stateline Wind project, gas emissions on a community-wide basis. The alternative portfolios has been calculated. at approximately 3 percent of current load; the program requires City Light to meet load growth The cost of offsetting those emissions will be Burlington Biomass facility; the Columbia Ridge with conservation and renewable resources calculated based on CO2 allowance prices under Landfill Gas facility; and efficiency upgrades and to offset greenhouse gas emissions. potential federal legislation. completed after March 31, 1999 (such as Gorge This program features City Light’s Net Zero Tunnel 2) that result in additional power output at Greenhouse Gas emissions by taking actions City Light hydropower plants. that avoid, reduce or sequester greenhouse In meeting the conservation-related intent of gases as a key component of meeting the City- State of Washington I-937, Resolution 31183 was passed on wide goal and of helping the community meet January 25, 2010, establishing the 2010-2011 its goal. The plan also identifies other actions, Washington’s Energy Independence Act (I-937) energy conservation target at 19.68 aMW and a including the coordination of efficiency services ten-year potential of 93.67 aMW. This target and between the gas and electric utilities that serve The Energy Independence Act requires utilities potential were established using the Northwest Seattle. in Washington with more than 25,000 customers to acquire all cost-effective conservation at a Power and Conservation Council’s calculator In order to meet the requirement to offset prescribed pace and to acquire “qualifying” tool based upon the Fifth Power Plan. greenhouse gas emissions, City Light purchases renewable resources at a rate of a) 3% of retail offsets based on estimates of its emissions load by 2012; b) 9% of retail load by 2016; and each year. At present no federal or state laws c) 15% of retail load by 2020. Integrated Resource Planning determine how offsets are defined, created, and HB 1010 (Chapter 195, Laws of 2006) passed sold. City Light, however, has tracked guidelines Qualifying renewable energy must either be by the legislation in 2006, requires certain developed by non-profit and state government sourced from within the Pacific Northwest, or Washington utilities, including City Light, to organizations. With the assistance of external be purchased outside the Pacific Northwest but regularly prepare Integrated Resource Plans. stakeholders, the utility has established its own delivered into Washington on a firm transmission Under statute, IRPs must describe the mix of guidelines for counting emissions and selecting path, real-time, without integration services. energy supply resources and conservation offsets. Some states, including California Hydroelectric power is not qualifying renewable needed to meet current and future needs at and several in the East, plan to put a cap on energy, unless it is the direct result of qualifying the lowest reasonable cost to the utility and its greenhouse gas emissions from power plants hydro efficiency improvements made after ratepayers, using available technologies. Utilities and other sources, and are planning for a March 31, 1999. The requirement for qualifying must also consider and include in their planning market-based trading system for greenhouse renewables can be met with renewable cost-effective conservation and a wide range of gas offsets. City Light’s sales to California energy credits (RECs), which represent the commercially available generation technologies, utilities could be affected by these regulations. environmental attributes of qualifying renewable resources at the rate of one REC per megawatt- including renewable technologies. hour.

Seattle City Light 2010 Integrated Resource Plan Appendix B 4 Facilities Siting Incentives for Renewables Power Plant Greenhouse Gas HB 1020 (Chapter 196, Laws of 2006) SSB 5101, passed in 2005 by the Legislature, Performance Standard designates the Energy Facility Site Evaluation is an investment cost recovery incentive to In 2007, the Washington state legislature Council (EFSEC) as the State’s authority for support certain renewable energy projects. passed ESSB 6001. This bill entered the siting transmission facilities under the federal Customers who generate electricity from a Governor’s Executive Order 07-02 into law. It Energy Policy Act of 2005. The law extends renewable energy system may seek annual also established a greenhouse gas emissions EFSEC jurisdiction to electrical transmission incentive payment from their participating electric limit, called the performance standard, for facilities that operate in excess of 115 kilovolts utility up to $2,000 annually. Utility participation new power plants. The limit is 1,100 pounds within national interest transmission corridors is voluntary. Participating utilities, such as of CO2 per MWh of power, roughly equivalent and also to electrical transmission lines in City Light, are allowed a credit against their to an existing natural gas plant emission excess of 115 kilovolts that connect a power public utility tax equal to the incentives paid to rate. Greenhouse gases that are captured plant to the grid. customers. and sequestered are not counted toward the emissions limit. The technologies for achieving capture and sequestration, however, are Net Metering Governor’s Executive Order in early development stages. The law also prohibits electric utilities in Washington state Net metering measures the difference between on Climate Change from renewing or entering into new contracts the electricity supplied by a utility and electricity In February 2007, Governor Christine Gregoire longer than five years for power plants that emit generated by a customer. If the customer issued Executive Order 07-02, the Washington above the limit. This law has already impacted generates more than needed, the excess power Climate Change Challenge. The greenhouse gas new power plant development in Washington is sold to the utility’s system. Under RCW 80.60, reduction goals in order include: state. Two proposals for new power plants were Washington state requires utilities to provide • By 2020, reduce overall emissions of withdrawn over questions about their ability to net metering service to encourage development greenhouse gases in the state to 1990 levels; meet the new requirement. of renewable and distributed resources. The • By 2035, reduce overall emissions of maximum allowable generating capacity for net greenhouse gases in the state to twenty-five metering systems is 100 kilowatts. The list of percent below 1990 levels; and qualified generating sources for net metering Legislation includes solar, wind, water, fuel cells, and biogas • By 2050, the state will reduce overall In 2008, a bill passed related to greenhouse from animal waste. In 2014 the cap on the total emissions to fifty percent below 1990 levels. gases and climate change that may have long- amount of net metering generation allowed in term impacts for utilities and power generation. a utility’s system will grow to 0.5 percent of its ESSHB 2815 directed the state to design an peak demand in 1996. City Light’s 1996 peak inventory process to track progress toward load was 1950 MW, so it will be allowed 9750 meeting reduction goals, described goals for kilowatts of net metered load on its system in participation in regional or multi-state registry 2014. processes, and directed the state to work with the Western Climate Initiative. Of specific

Seattle City Light 2010 Integrated Resource Plan Appendix B 5 Regional interest to electrical utilities, the bill required Regional policies and guidelines relevant contracts that will fairly apportion its least 1) a report to the legislature on how electrical to utility resource planning are summarized expensive base system generation among its infrastructure can be provided in urban and rural below, including those of the Bonneville customers. All other BPA power will be available areas to promote plug-in hybrid vehicles and Power Administration, Northwest Power as variously designed products. Investor owned how electricity or alternative fuel from landfill gas Planning Council, and the Western Governors’ utilities should get a financial settlement of their or anaerobic digesters could be used in a market Association. residential exchange rights. BPA proposes that system for greenhouse gas reductions, and 2) contracts be signed for service that begins in reports from energy generators of greenhouse October 2011 and terminates in September gas emissions to the Energy Facility Site Bonneville Power Administration 2028. Evaluation Council. Bonneville Power Administration (BPA) is the power-marketing agency for electricity generated from projects owned and operated by the Northwest Power and Conservation Washington State Climate Action Army Corps of Engineers and the Bureau of Council Team Reclamation. City Light purchases approximately The Northwest Power and Conservation Council In 2007, the Washington State Climate Action 40 percent of its power supply from BPA, and (NPCC) is a public agency created by the Team (CAT) was formed to evaluate ways to decisions affecting the marketing of this power Pacific Northwest Electric Power Planning and meet Governor Gregoire’s climate change at the federal level can significantly impact City Conservation Act of 1980. The agency’s three reduction goals and to make recommendations. Light’s resource portfolio cost, risk, and reliability. major functions are to: The report, “Leading the Way, A Comprehensive City Light also relies heavily on purchases of • Develop 20-year electric power planning for Approach to Reducing Greenhouse Gases in significant amounts of transmission from BPA the Northwest that guarantees adequate and Washington State,” was released in February to transfer power from City Light’s remote reliable energy at the lowest economic and 2008. The electricity industry was one of the generating resources to its service area. environmental cost. focus industries. BPA customers, including City Light, have joined • Develop programming to protect and rebuild to promote long-term, cost-based contracts to fish and wildlife populations affected by restore and protect low-cost regional power hydropower development in the Columbia Washington State Energy Strategy in the face of periodic attempts to divert the River Basin. In 2010, the Washington state legislature passed benefits of BPA from the Pacific Northwest. E2SHB 2658, which directed that the state’s • Educate and involve the public in the comprehensive energy plan be revised. The In December 2008, City Light signed the contract Council’s decision-making processes. legislation provided three goals and nine guiding with BPA to continue City Light’s access to principles for the strategy. A panel of technical the power resources the BPA market through experts and an advisory committee have been September 2028. BPA is involved in structuring established. Full revision of the strategy is due in December 2011. Seattle City Light 2010 Integrated Resource Plan Appendix B 6 Power Planning peaking loads (compared to summer-peaking In June 2007, the Western Governors adopted loads across most of the West) and its heavy Resolution 07-17, making recommendations for The NPCC’s Sixth Power Plan (February 2010) dependence on hydroelectric generation. renewable portfolio standards that were largely was developed over the last few years with The Pacific Northwest energy aim is to satisfied in Washington state by I-937. the Pacific Northwest power system facing have resources equal the expected annual significant uncertainties about the direction and Resolution 07-17 supports: load. The capacity aim is to have a planning form of climate change policy, future fuel prices, reserve margin that provides a 5% loss of load • Hydropower research and emerging salmon recovery actions, economic growth, probability (LOLP). hydrokinetic/ocean technologies. and integration of rapidly growing amounts of variable wind generation. However, in the short • Long-term reauthorization of renewable term the NPCC’s plan is clear in laying out plans production tax credits. for meeting the region’s load growth over the Western Governors Association • Achieving energy efficiency savings from new next twenty years. The Council’s Action Plan In June 2004, Western Governors adopted and existing residential and commercial/public calls for cost-effective conservation to meet 85% a resolution 1) to examine the feasibility of buildings. of load growth. Energy conservation offers the developing 30,000 MW of clean and diverse • Transmission to accommodate the integration region a resource that has the least cost, the energy by 2015, 2) to increase energy efficiency of large amounts of renewable generation in least risk, and the least environmental impact. 20 percent by 2020, and 3) to provide adequate the Western power system. The Council plan for meeting loads also relies transmission to meet the region’s needs through on renewable resources, some natural gas 2030. • Effective utilization of existing hydropower generation, and an eventual solution to the issue facilities and more effectively using small In 2005, they created the Clean and Diversified of wind integration hydro potential. Energy Advisory Committee (CDEAC) to oversee the work of seven task forces that • Implementation of national renewable portfolio examined the feasibility of reaching those standards. Regional Resource Adequacy goals. The task forces prepared reports with Standard In 2008, the Western Governors launched the recommendations in the following areas: energy Western Renewable Energy Zone (WREZ) In 2008, the NPCC adopted a new regional efficiency, advanced coal, geothermal, wind, initiative, which provided tools, information standard intended to ensure an adequate biomass, solar, and transmission. and analysis to encourage utilities to work supply of electricity for the Pacific Northwest. cooperatively to develop renewable generation The regional standard is also expected to be In 2006, the Western Governors adopted in the West. included for the Northwest region within the Resolution 06-10, agreeing to 1) provide broader West-wide efforts on resource adequacy production tax credits for all renewable energy In 2009, the Regional Transmission Expansion by the Western Electricity Coordinating Council technologies and energy efficiency investments, Project was begun. Funded by a grant from (WECC). 2) raise the cap on the residential investment the U.S. Department of Energy, the project tax credit to $10,000 for renewable energy or will analyze transmission requirements under NPCC’s regional adequacy standard is intended distributed generation systems, and 3) support a variety of possible futures and develop to address the unique characteristics of the improvements in national appliance efficiency long-term, interconnection-wide transmission Pacific Northwest, including the region’s winter- standards. expansion plans. Seattle City Light 2010 Integrated Resource Plan Appendix B 7 Federal Western Climate Initiative Currently WCI has drafted recommendations The primary federal statutes relevant to energy The Western Climate Initiative (WCI) was on principles to guide the development of the resource planning are the Clean Air Act, Clean launched in February 2007 by the governors of design covering the following areas: allocation Water Act and Energy Policy Act of 2005. the states of Washington, California, Oregon, of greenhouse gas emission allowances, the Arizona, and New Mexico. Its goal was to use of greenhouse gas offsets to meet the develop regional strategies to address climate goal, and reporting requirements. The reporting Environmental Regulations requirements will likely follow those being change. Subsequently, the governors of the At the federal level, recent EPA regulations developed by The Climate Registry (see below). states of Utah and Montana, and the Premiers (the Clean Air Interstate Rule and the Clean of British Columbia, Manitoba, and Quebec have States and provinces will report electricity Air Mercury Rule) have set tighter limits for joined. Other western states and provinces are emissions based upon the sources used to emissions of common air pollutants from participating as observers, including Alaska, supply end-use load inside their borders, even power plants: oxides of sulfur and nitrogen, Idaho, Nevada, Colorado, Wyoming, Kansas, if the power is generated outside their borders. and mercury. Other regulations will further Ontario, Saskatchewan, and six Mexican states. This will pose a challenge to electric utilities to limit emissions of particulate matter. These regulations may become more restrictive during In August of 2007, WCI announced a regional determine the sources of imported and short- the planning period of the IRP, and states may goal of reducing greenhouse gas emissions to term market electricity purchases. set their own more restrictive standards as 15% below 2005 levels by the year 2020.This well. Meeting these limits can be a significant goal is consistent with goals set by the partner technical challenge, as well as a significant states. The Climate Registry additional cost, for power plants that burn fossil Building on the work done by the California WCI is to design the market mechanism-based fuel. system partners will use to meet the goal. Climate Action Registry, a multi-state Federal Clean Water Act regulations have also Reports of greenhouse gas emissions will be greenhouse gas emissions registry called The become more stringent. Power plants that use done at the state or province level, every two Climate Registry (TCR) was formed in 2007. water for cooling could be affected by these years, and will be submitted to WCI. All six of the Its development has moved quickly, and as of changing regulations, as restrictions increase on greenhouse gases covered in the Kyoto Protocol fall 2010, membership includes 428 corporate, removing water from, and discharging cooling will be included in the reports. non-profit, and government entities. The Registry has been discussed as the platform water into, surface and groundwater sources. for federal legislation for reporting and reducing These restrictions are often related to protecting greenhouse gas emissions. The City of Seattle is habitat for fish and wildlife, as well as protection a founding member of TCR. of human health.

Seattle City Light 2010 Integrated Resource Plan Appendix B 8 The Endangered Species Act (ESA) can affect and cooling systems, home electronics, rights of states to review LNG terminals under the potential to site new power plants and lighting, and windows, doors and skylights. the Coastal Zone Management Act, Clean Water transmission facilities. Currently, hydropower The legislation establishes financial grants for Act and Clean Air Act. operations are significantly regulated because state-run programs to achieve at least 30- Coal The Act authorized $200 million per year of their potential impacts on ESA-listed fish percent efficiency improvements in new and from 2006 to 2014 for a federal government species. As new species are listed, and as new renovated public buildings. The formula used in cost-share program to conduct demonstrations information about the effects of hydropower the Energy Policy Act of 2005 was again used of commercial-scale advanced clean coal operation on those species becomes available, in the American Recovery and Reinvestment technologies. It also authorized $3 billion in the operational rules may change. Consequently, Act of 2009. Another $300 million was funded the form of loans, cost-sharing, or cooperative this could possibly change both the amount by the US Department of Energy for consumer agreements 1) to encourage new sources of and the timing of hydropower output. This issue purchases of new Energy Star qualified home advanced coal-based power generation and is extremely important to City Light, given its appliances. 2) to upgrade existing sources of coal-based reliance on both its own hydropower facilities generation to improve air quality to meet current and on the Bonneville Power Administration’s and future obligations of coal-fired generation supply. Generation Resources and Fuel Supply units regulated under the Clean Air Act. The Act Hydroelectricity The 2005 Act authorized $100 authorized a total of $1.095 billion over three million for hydroelectric efficiency improvements years in funding for the Department of Energy Energy Policy Act of 2005 at existing dams and modernized the (DOE) clean coal research and development In 2005, the first federal energy legislation in hydropower laws to allow increased production. program, and $75 million over three years for 13 years addressed a wide range of issues It created a 10-year tax credit that applied to a DOE program to develop carbon capture including energy efficiency, generating resources “qualified hydropower production” placed in technologies that can be applied to the existing and fuel supply, transmission, and climate service prior to January 1, 2008. Relicensing fleet of coal units. change. provisions were amended to allow applicants or other parties to propose alternatives to Innovative Technologies The Act established conditions set by the agencies. a loan guarantee program to provide incentives Energy Efficiency for “innovative energy technologies” that Natural Gas The 2005 Act confirmed that FERC avoid, reduce, or sequester air pollutants Several provisions related to energy efficiency has exclusive authority over siting, construction, or greenhouse gases and use technologies may influence the acquisition of conservation expansion and operation of liquefied natural improved in comparison to those in commercial resources within City Light’s service area. gas (LNG) import terminals located onshore use. Eligible projects include renewable The Energy Policy Act of 2005 authorized $50 or in state waters. In addition, it confirms systems, advanced fossil energy technologies million in funding annually between 2006 and FERC’s role as the lead agency for National (including coal gasification), hydrogen fuel cell 2010 for state-administered energy efficient Environmental Policy Act compliance and for technology, advanced nuclear energy facilities rebate programs for residential Energy Star purposes of coordinating all applicable Federal and others. There is no cap on the amount of products. These include appliances, heating authorizations. The Act also confirms existing funds used for this program.

Seattle City Light 2010 Integrated Resource Plan Appendix B 9 Nuclear Energy The Price-Anderson Act the development of new electric transmission utilities to consider five new standards based was re-authorized for commercial nuclear facilities. Congress gave FERC “backstop” on the purposes of PURPA: net metering, fuel power plants and DOE contractors for 20 authority to grant permits for the construction sources, fossil fuel generation efficiency, smart years; it increased the indemnification for or modification of electric transmission facilities metering, and interconnection. Washington DOE contractors to $500 million. In addition, within these corridors in certain situations, state’s IRP law and City Light’s IRP process it authorized construction of a nuclear reactor including the withholding of approval by a state meet the consideration and determination at the DOE Idaho National Laboratory that will siting authority. (In Washington state, HB 1020 requirements required under PURPA. City Light generate both electricity and hydrogen, and designates the State EFSEC to prevent a FERC does not anticipate the need for substantial it created a federal loan guarantee program backstop.) discussion on the fuel sources and fossil fuel to encourage the design and deployment of generation efficiency standards, since they are innovative technologies including advanced covered by existing state law. nuclear power plants. Climate Change Climate change actions directed by the 2005 Act included forming a Climate Change Technology American Recovery and Transmission Advisory Committee charged with integrating Reinvestment Act of 2009 To promote investment in electric transmission existing federal climate change reports and A number of provisions embedded in the infrastructure, FERC was directed to undertake activities. The Committee is to submit a American Recovery and Reinvestment Act of an incentive rate rulemaking and to provide national strategy to promote the deployment 2009 (ARRA), or the Stimulus, added funding for participant funding. In addition, it provided and commercialization of greenhouse gas opportunities for energy efficiency, smart grid, for expedited siting processes on both federal intensity reductions and to identify barriers to and renewable development. By formula, the and private lands and for the use of advanced these technologies and ways to remove those City of Seattle secured $6.1 million in Energy transmission technologies. The Act established barriers. Best Management Practices are also Efficiency and Conservation Block Grant an Electric Reliability Organization to develop to be developed for calculating, monitoring and (EECBG) dollars that were spread across and enforce reliability standards for the bulk analyzing greenhouse gas intensity. ten efforts that are intended to reduce energy transmission system. The Act also requires (electricity, natural gas, diesel) consumption FERC to identify the steps needed to make within the city. An additional $20 million was available real-time information on the functional Amendments to the Public Utility secured through a competative process for the status of all transmission lines within each of the Regulatory Policy Act (PURPA) Weatherize Every Building project. This effort transmission interconnections and to implement The Act amended PURPA to repeal the is being operated and managed by the City’s such a transmission information system. requirement for mandatory purchase from Office of Sustainability. To the extent that electric The DOE was directed to study electric qualifying facilities by electric utilities if a energy savings are identified, City Light will be transmission congestion and possible competitive market exists, and established new involved to provide appropriate incentives and designation of “national interest electric criteria for qualifying cogeneration facilities. to claim the energy savings towards its I-937 targets. transmission corridors.” The designation of such The Act amended PURPA to require state corridors would have a significant impact on regulators and certain non-regulated electric

Seattle City Light 2010 Integrated Resource Plan Appendix B 10