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A New Way to Renewable Energy and Energy Independence

Community Choice

By Tam Hunt, energy program director at the Community Environmental Council (CEC), and Megan Birney, an energy program senior associate.

Thursday, August 2, 2007

By now, we have all heard of global warming (unless we live in a cave). We know the cars we drive and the buildings we live in emit carbon dioxide and other greenhouse gases that contribute to global warming. We know that by reducing the miles we drive and changing a few light bulbs, we can save energy and reduce our carbon emissions. But are these personal choices enough?

Unfortunately, the answer is probably no if our utilities, oil companies, and auto manufacturers continue blithely upholding the status quo. We need to also induce long-term, behavioral, and institutional changes in terms of how we produce energy in our county and in the rest of the country.

Fortunately, we have options. Community Choice Aggregation (AB 117) is a powerful tool that allows area governments to buy or build renewable energy facilities for their residents and obtain as much as 100 percent renewable energy. Community Choice Aggregation was signed into law in 2002, and we are only now seeing communities around the state complete their planning processes and begin to supply power to their residents under this model.

Community Choice Aggregation provides local control over our energy, giving choice to residents about what type of power they receive and allowing area governments to do their part to mitigate climate change by investing strongly in renewable energy like wind, geothermal, biomass, and solar power.

California utilities are required by state law to obtain 20 percent renewable energy by 2010, but this is nowhere near what we need to make a real difference regarding climate change or energy independence. We need to go much further than the stated goals if we’re serious about getting off fossil fuels by 2030 or sooner.

Another attractive feature of Community Choice Aggregation is public money is cheaper than private money because interest rates are lower for local governments, and local governments don’t pay taxes as private utilities do. These cost savings from Community Choice Aggregation can be passed on to consumers. For example, a recent detailed study for Marin County found the county could obtain 50 percent renewable energy by 2017 with Community Choice Aggregation and pay not a cent more than it would under a business-as-usual scenario with only 20 percent renewable energy, due in large part to these financial benefits.

We see Community Choice Aggregation as our county’s next important step toward increased renewable energy, energy independence, and price stability. By investing heavily in renewable energy, volatile energy prices can be tamed because the cost of wind and sunlight will stay stable: They’re free. Once capital costs are determined for any given wind, solar, or geothermal project, the price can be “locked,” with price volatility literally reduced to zero.

Going beyond Community Choice Aggregation, CEC’s consultants from UC Berkeley and Cal Poly, San Luis Obispo recently completed a detailed economic analysis for us, finding that shifting en masse away from fossil fuels and nuclear power would achieve a $600 million net savings each year by 2030 for our county. Each person would save an average of more than $1,200 per year.

CEC recently held a workshop in Santa Barbara with the Local Government Commission, a nonprofit based in Sacramento. We invited elected officials, agency representatives, nonprofit organizations, and community groups together to discuss Community Choice Aggregation. Because Community Choice Aggregation works best when communities join together for economy of scale, representatives from the cities and counties of San Luis Obispo, Santa Barbara, and Ventura attended our forum.

The first step for communities interested in Community Choice Aggregation is completion of a feasibility study. Everyone interested in energy independence, more consumer choice for electricity, and mitigating climate change should contact their local elected officials and urge them to complete a feasibility study for Community Choice Aggregation.

To achieve “fossil freedom,” we need to embrace conservation, energy efficiency, and renewable energy. While there is no “silver bullet” technology, we need to consider our local resources fully and decide as a community what is most desirable for our future.

CEC is currently promoting energy efficiency and conservation for individuals and businesses, helping to build an alternative fuel corridor on Highway 101, and supporting local builders, architects, and contractors building carbon-neutral homes and offices. These are important first steps as we build infrastructure and establish a paradigm shift for the long term. As the next step, we need to find ways to bring massive amounts of renewable energy online to replace our fossil fuel and nuclear sources of power.

The time is right for a regional and national push, not only for energy independence, but for greater utilization of nature’s sustainable forms of energy. This is an exciting field in truly interesting times, so please join us as we push for Community Choice Aggregation as a way to be Fossil Free by ’33!

Recent events have shown we don’t need federal leadership to bring about serious change; local and state governments can lead the way. If you want to make a difference, contact your local elected officials and urge them to complete a feasibility study for Community Choice Aggregation.

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More information on the energy program can be found at fossilfreeby33.org.