Box 3.6 Public Agencies with Signifi cant Infl uence on Electricity Production, Distribution, and Use, California

policies, legislation, and regulations infl uence the transparency, consistency, and predictability of modern energy supply systems in individual cities and address common social and environmental issues. National and regional governments also establish general provisions that incentivize cities to adopt sustainable energy practices. These provisions include, for example, renewable energy feed-in tariff s that mandate electricity utilities to purchase wind- or solar-generated electricity at set prices and energy performance standards that set minimum energy effi ciency levels for new appliances and new buildings. In contrast, national and regional regulations may also hinder the sustainable energy measures of cities. For example, in most countries, the prevailing regulations on electricity utilities discourage utility demand-side management and the installation of distributed generation facilities, including renewable technologies.

The role of city government in setting broad energy sector policies and regulations is limited and is likely to remain so because of the nature of modern energy systems. However, this does not prevent cities from planning and deciding what, where, and how urban energy infrastructure should be built. Cities may take steps to infl uence national policies, while seeking to infl uence local behavior through voluntary programs and initiatives. Because city governments are intimately involved with every aspect of urban development and management and wield power and infl uence over urban energy demand, they are uniquely able to tie urban energy supply and demand together. This means that cities are one of the most eff ective actors in pursuing sustainable energy. Nonetheless, most

BOX 3.6

Public Agencies with Signifi cant Infl uence on Electricity Production, Distribution, and Use, California

Federal

• Federal Energy Regulatory Commission: wholesale rates, interstate and international transmissions, and hydropower licensing • U.S. Environmental Protection Agency: compliance with the

Clean Air Act and the Clean Water Act, overseeing enforcement and regulatory actions delegated to the states • U.S. Department of Energy: technology research, development, and promotion; energy effi ciency programs; national standards for appliances and end use

State

• California Energy Commission: licensing for thermal generators of 50 megawatts or greater; end use effi ciency standards; systems analysis, planning, and forecasting; planning of intrastate electricity transmission infrastructure; energy research, development, and demonstration in the public interest • California Public Utilities Commission: rates on investor-owned utility services for retail customers; systems analysis, planning, and forecasting; monitoring of electricity market; public and private sector effi ciency and education programs; representation of the state before the Federal Energy Regulatory Commission; transmission delivery infrastructure • California Independent System Operator: monitoring and planning for system reliability; systems analysis, planning, and forecasting; planning of electricity transmission infrastructure • California Air Resources Board: emission standards for distributed generation resources and diesel backup generators

Regional

• Regional water quality control boards: issuance and enforcement of permits under the Clean Water Act and California regulations for power generator discharges into and use of regulated bodies of water • Regional air quality management districts: issuance and enforcement of permits under the Clean Water Act and California regulations for air emissions from power generators

Local

• Cities and counties: long-term land use planning, enforcement of energy effi ciency standards for buildings, approval of site plans and urban designs in private development, permits and site authorizations for all power plants under 50 megawatts

Source: Lantsberg (2005).