California state lawmaker aiming to boost distributed generation

San Francisco (Platts)--7Dec2006

California Assemblyman Sam Blakeslee is drafting legislation aiming to
bolster distributed generation in the state, his chief of staff said late
Wednesday.

Blakeslee's effort comes after California Energy Commission member John
Geesman in October warned that cogeneration could disappear and be replaced
with less efficient generation unless policymakers follow through on their
stated support for cogeneration projects.

Cogeneration plants at end-user sites produce electricity and thermal
energy from the same source. The bill being drafted aims to reduce wasteful
consumption of natural gas used for space and water heating through more
efficient use of waste heat, said Delette Olberg, Blakeslee's chief of staff.

Blakeslee's bill also would likely codify provisions of California
Governor Arnold Schwarzenegger's 2004 Green Buildings Executive order, said
Olberg. The order directs state agencies to cut energy use at state-owned
facilities 20% by 2015, through energy efficiency, renewables and distributed
generation.

According to the CEC's 2005 Integrated Energy Policy Report, cogeneration
accounts for about 17% of the state's electricity supplies.

With California's surging demand for power, it is important to squeeze
all efficiencies from existing technologies, said Olberg.

A range of ways to increase distributed generation are being evaluated,
including possible incentives for utilities to invest and own units. Blakeslee
hopes to introduce the bill this month, Olberg said.

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