- Regulatory strategy and litigation support
- Large energy user services
- Energy markets and financial analysis
- Energy and environmental policy
- Cost of service and rate design
- Distributed energy resources
- Transmission planning and pricing
- Resource planning and procurement
Economic analysis of market-based carbon reduction | Oregon Department of Environmental Quality, 2016–present
E3 is working with the Oregon Department of Environmental Quality to evaluate the economic impacts of adopting a carbon market, per the directive of SB 5701, passed by the state legislature in March 2016. Our approach combines a detailed literature review and a quantitative economic analysis. We are analyzing complementary policies, which drive GHG emissions reductions outside the carbon market (for example, renewable portfolio standards and energy efficiency programs), and carbon market policies, which provide a market-based compliance mechanism. E3 will model the complementary policies in the energy-accounting LEAP model, and use the IMPLAN model to study the macroeconomic impacts of the carbon market.
E3 is supporting the New York State Energy Research and Development Authority (NYSERDA) in developing a detailed GHG analysis to quantify the infrastructure and policy changes necessary to meet state goals. We will evaluate the GHG and cost implications of a variety of scenarios that are consistent with New York’s goal of reducing statewide GHG emissions by 40 percent below 1990 levels by 2030 and 80 percent below 1990 levels by 2050. In this work, E3 is partnering with Evolved Energy Research to downscale E3’s PATHWAYS model for New York State and calibrate it to New York–specific assumptions. E3 will translate the model results into our user-friendly LEAP model for NYSERDA’s continued use.
E3 has been a resource to the Department of Energy’s (DOE’s) Technical Assistance to States program through Lawrence Berkeley National Laboratory since 2008. Our projects help state governments better understand how to implement energy efficiency programs and how to make them cost-effective. E3 has advised utility commissioners and senior policy staff in Pennsylvania, Georgia, South Dakota, Illinois, Arizona, and other states on major aspects of their program designs. We provide accurate information, guidance, and background based on our knowledge of various states’ decisions, and share our expertise in standard industry practice.
E3 worked with the Southern California Gas Company (SoCalGas) to evaluate the potential of decarbonized pipeline gas fuels and the existing pipeline infrastructure to help meet California’s long-term climate goals. “Decarbonized pipeline gas” refers to gaseous fuels—including biogas—with a net-zero or very low GHG impact. E3 used its PATHWAYS model to evaluate two scenarios, one with heavy electrification of buildings and vehicles and one with a mix of electrification and decarbonized pipeline gas. Both were found capable of meeting the state’s 2050 climate goals with comparable total costs within the ranges of uncertainty that we evaluated. The results of the study suggest that the use of decarbonized gas distributed through the state’s existing pipeline network would complement a low-carbon electrification strategy. SoCalGas has used the results of this study to inform its energy and climate policy positions in California.
E3 is helping the California Air Resources Board (CARB) update its scoping plan to meet its requirements under Assembly Bill 32 (Global Warming Solutions Act, 2006). E3’s statewide GHG mitigation analysis evaluates the GHG impacts and cost implications of different 2030 scenarios that are consistent with the California’s goal of reducing statewide GHG emissions 40% below 1990 levels by 2030. For this project, we are adapting prior work using our Pathways model, updated with scenarios and assumptions requested by CARB. The model results are translated into inputs for CARB’s macroeconomic analysis of economic and job impacts. The study results are part of a high-profile stakeholder process, which includes extensive public review and comment.
The California Air Resources Board, California Energy Commission, California Public Utilities Commission, California ISO, and governor’s office engaged E3 to evaluate the feasibility and cost of potential 2030 GHG targets. We focused on emission reduction strategies through 2030, with an eye toward meeting the state’s 2050 GHG reduction goal. Using our PATHWAYS model, we developed several scenarios that varied the mix of low-carbon technologies and the timing of deployment. PATHWAYS is a stock-and-flow model that encompasses the entire state economy with detailed representations of the building, industrial, transportation, and electricity sectors. E3 team members briefed Gov. Jerry Brown and members of the legislature on the results. Our work informed the governor’s Executive Order B-30-15, which calls for a 40 percent reduction in statewide GHG emissions by 2030 relative to 1990 levels. California agencies are using our results in ongoing implementation analysis of the state’s climate goals.