The Clean Power Plan, Extreme Weather, Energy Efficiency and your Colorado Small Businesses Tim Gaudette Colorado Outreach Manager December 17, 2015 Small Business Majority
About Small Business Majority • Small business advocacy organization – founded and run by small business owners • National – offices in Colorado, Washington, D.C., California, Illinois, Missouri, New Jersey, New York, Ohio, Oregon, Virginia and Washington State • Research and advocacy on issues of top importance to small businesses (<100 employees) and the self- employed, including healthcare, access to credit, immigration, workplace and clean energy • Very focused on outreach to and education of small business owners across the country
Overview • The EPA’s proposed Clean Power Plan and its impact on small business • Extreme weather & stronger energy standards – the connection • What small business owners think • What small biz owners can do • Resources • Questions/Answers
What is the Clean Power Plan? • EPA proposed the Clean Power Plan to help curb carbon pollution from existing power plants for the first time • EPA projects the rule will achieve 32% reduction in carbon emissions from power plants by 2030 and 25% by 2020 • Clean Power Plan is an essential step toward spurring innovation and investment in low and no- carbon technologies
Clean Power Plan The Clean Power Plan is designed to allow states to pursue carbon reduction and mitigation policies that: • Continue to rely on a diverse set of energy resources • Ensure electric system reliability • Provide affordable electricity • Recognize investments that states and power companies are already making • Can be tailored to meet the specific energy, environmental and economic needs and goals of each state
Clean Power Plan will bolster small businesses and job growth Small Business Majority’s assessment of the Clean Power Plan found it will help address the threat of a changed climate while bolstering small businesses and creating new economic opportunities. EPA’s proposal will help small businesses looking for market opportunities in the clean energy economy through demand- and supply-side job opportunities in construction, manufacturing, strategic consulting, energy efficiency and green marketing, just to name a few.
Flexibility for state-based implementation • Clean Power Plan has two main parts for states: • State-specific goals to lower carbon emissions from power plants • Guidelines to help states develop their plans for meeting the goals • Clean Power Plan allows states to build upon their progress in addressing carbon pollution • States can act alone or collaborate with other states on regional multi-state plans
Setting emission rate standards for states • EPA first identifies the existing power plants in the state that are subject to the standards • Building blocks are then applied to 2012 baseline emission rate levels for those plants • Each state has its own standard, based on its own unique power system • Each state has an interim and a final standard – Interim Standard – average emission rate over the period 2020-2029 – Final Standard – the emission rate that must be achieved by 2030
Is CO prepared to implement new clean energy standards? Colorado’s government and utility officials have indicated the state is well-positioned to meet these standards : • In 2004, voters passed a measure requiring renewable sources of energy to generate a portion of electricity used in the state • In 2010, Colorado lawmakers passed a law that requires investor-owned utilities to convert coal-fired power plants in a way that reduces emissions • 2010 energy target: 30% of electricity used in the state by 2020 must be generated from renewable sources.
Next steps Step 1: State chooses a compliance approach and develop plan for EPA If the state pursues a credit-based emission limit approach: Step 2: State Environmental Regulator – Establishes enforceable permit limits for EGUs – Implements the rate-based credit trading program Step 3: Utilities/power plant owners develop emission reduction plans for how they will comply with the standard Step 4: Public Utilities Commission/Cooperative Boards/City Councils review and approve or modify utility emission reduction plans to assure compliance is prudent and cost-effective Step 5: State Environmental Regulator ensures power plant owners maintain positive credit balances and are in compliance
Where we are, Where we’re headed [ Optional, Summer 2017/2018 ]: Summer 2020 : September June 2014 : 2015 : Final States may 2016 : States 2013 : New Existing New and receive 1–2 States must submit Source Source Existing year begin compliance Proposal Proposal Source extensions complying plans Standards for specific reasons States hold stakeholde r process to shape complianc e plans
Small businesses support stronger standards According to our polling, more than half (52%) of small • business owners support the EPA’s authority to set standards 64% and regulate carbon emissions from existing power plants. Favor Oppose 73% 52% Do you favor or oppose the EPA regulating carbon emissions and setting standards for existing power plants? 48% 74% 0% 10% 20% 30% 40% 50% 60%
Small businesses support stronger standards • 76% of small business owners are in favor of requiring 64% new power plants to reduce carbon emissions 73% 74%
Small businesses support stronger standards • A vast majority of small business owners support EPA 64% rules to reduce mercury and other toxic emissions from new and existing power plants 73% 74%
Why is this an important issue for small businesses? • Most small employers realize carbon pollution is linked to a changed climate and extreme weather . • More and more, extreme weather has been hitting them where it hurts most . • Small Business Majority polled a random sample of small businesses and found a changed climate and extreme weather events are causing financial hardships for small employers and some have even had to lay off employees after being impacted.
The big picture • 2011-2012 were 2 most extreme years on record for destructive weather • Research shows small biz are especially at risk • Estimated 25% of small businesses do not reopen following a major disaster
The impact 64% • 2011-2012: Record 25 extreme weather events, costing hundreds of billions in damages • Superstorm Sandy, combined 73% with yearlong drought, accounted for 2/3 of all insurance losses worldwide in 2012 74%
Opinion polling: Impact of extreme weather on small businesses • 1 in 5 small business owners in Michigan, Virginia and North Carolina have laid off employees as a result of extreme weather events
Opinion polling: Impact of extreme weather on small businesses • The vast majority of small business owners in Michigan, Virginia and North Carolina have been forced to close or suspend operations after a natural disaster • Small business owners say they have seen a significant financial impact to their business as a result of extreme weather: A staggering majority of small business owners impacted by extreme weather say the financial impact to their business was “significant,” and four in 10 report damages between $5,000 to $25,000.
Why are small businesses vulnerable? • Small businesses uniquely 64% threatened by extreme weather and are heavily impacted by: • Power outages • Absence of employees 73% • Supply chain interruptions • Rising insurance costs 74%
Why are small businesses vulnerable? • 57% of small businesses have no disaster recovery plan • Those that do, 90% spend less than 1 day/month 64% preparing and maintaining them 73% 74%
Extreme weather and strong energy standards—the connection • Stronger clean energy standards will curb effects of a changed climate and extreme weather 64% • Majority of small biz owners support renewable energy policies because it saves money and is good for the 73% environment • Many have implemented measures to reduce energy waste and improve 74% their bottom lines
Why stronger standards are important • Economic benefits • Competitive edge • Excellence in innovation • Brand differentiation
Lightly Treading’s History • We’ve been in business since 1997 • We’ve worked on more than 20,000 buildings. • Our Sustainability/ Energy Efficiency Advisory services are available to 90% of commercial building owners … • … we succeed when you succeed in achieving your performance goals .
What we do: Lightly Treading improves building owner’s bottom line by: Providing expert energy management services, Building improvement consulting and, Implementing the solutions to maximize building performance and return on investment.
Improving Performance: How we do it Assessment - Benchmarking/Monitoring & Real Time Energy Management BPA – Building Performance Assessment Improvement Management Ongoing Monitoring and Verification
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