Investment Rating - The report does not explicitly provide an investment rating for the industry or the specific initiatives discussed. Core Insights - The REALIZE-CA program aims to retrofit affordable multifamily housing in California, focusing on mass deployment of zero-carbon-aligned retrofits and leveraging standardized retrofit packages and streamlined financing solutions [11][6]. - The estimated economic value of retrofitting nearly 50,000 affordable multifamily housing units annually is between $1.25 billion and $2.5 billion, highlighting the significant market potential [87]. Overview - The guide summarizes recommended technologies for retrofitting existing multifamily buildings in California, based on pilot demonstrations funded by the California Energy Commission [6]. - The REALIZE-CA retrofit package includes innovative building systems that reduce demand and can be paired with on-site renewable generation [7]. - The program has conducted 300,000 square feet of retrofit demonstration projects and designed a scalable multifamily retrofit program informed by demonstration data [11]. Retrofit Package - The retrofit package encompasses measures such as envelope improvements, HVAC upgrades, domestic hot water systems, lighting, and appliance replacements, with optional renewable energy technologies [9]. - The package is designed to pair buildings with specific characteristics with commercially available and scalable technologies [10]. Existing Conditions - Deterioration issues such as plumbing failures, structural deficiencies, and hazardous materials must be addressed by the owner for eligibility [13]. - Specific conditions that render a building ineligible include major plumbing or structural repairs, mold presence, and inadequate electrical capacity [13]. Eligibility Screening Process - The program includes an initial screening process for building owners to confirm eligibility through a web-based application [15]. - A field audit follows the initial screening to confirm the final retrofit package components [16]. Retrofit Measures - The retrofit package includes new windows, attic sealing, insulation, and optional elastomeric paint for durability [19]. - The window replacement will upgrade existing single-pane windows to double-pane windows meeting Title 24 performance specifications [21]. - Aerobarrier technology is used for attic sealing, achieving a 55% reduction in air leakage compared to manual sealing methods [30][34]. Heating, Cooling, Ventilation, and Hot Water - The retrofit packages will serve buildings with split direct expansion HVAC systems and unitary tank-style water heating systems [48]. - The Villara AquaThermAire system is a multifunction mechanical system providing heating, cooling, and domestic hot water [49]. Financing Opportunities and Tools - The report highlights the need for braiding incentives and financing to stimulate the market and achieve the target of retrofitting 50,000 affordable multifamily housing units annually [87].

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report emphasizes the importance of resource adequacy (RA) in ensuring long-term power supply to meet demand amid increasing uncertainties due to the retirement of fossil fuel plants and rising electricity demand [12][13]. - It identifies four primary drivers of RA risk: load growth uncertainties, extreme weather and climate change, delays in planned resource builds, and slow transmission expansion [14][19]. - The report outlines three key strategies for regulators to mitigate RA uncertainty while transitioning to a low-carbon grid: improving planning practices, broadening the set of technologies and energy solutions, and pursuing utility business model reforms [19][35]. Summary by Sections Executive Summary - Resource adequacy has come under scrutiny as traditional power plants retire and electricity demand is forecasted to grow [12]. - The report aims to assist Western regulators in understanding RA risks and options to navigate these uncertainties [13]. Drivers of Resource Adequacy Uncertainty - **Load Growth Uncertainties**: Utilities project demand increases driven by electrification and large electric loads, but these forecasts are uncertain [16][41]. - **Extreme Weather and Climate Change**: Increased frequency of extreme weather events poses challenges for long-term RA planning [17][49]. - **Delays in Planned Resource Builds**: Over 38 GW of clean power faced project delays in 2023, with significant interconnection backlogs [18][56]. - **Slow Transmission Expansion**: Current utility plans do not meet the growing regional transmission needs, risking RA benefits [19][60]. Regulatory Strategies - **Improve Planning Practices**: Regulators should ensure utilities conduct targeted analyses and incorporate stakeholder input into planning [19][36]. - **Broaden Technologies and Solutions**: Quick-to-deploy demand-side resources and clean repowering should be leveraged to support RA [19][36]. - **Pursue Utility Business Model Reforms**: Transforming utility incentives and exploring new ratemaking structures can enhance RA investments [19][36].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The electricity grid is rapidly evolving due to increasing renewable energy integration, retirements of fossil fuel plants, and impacts of climate change, necessitating updated grid modeling approaches [8][9] - Four essential assumptions in integrated resource planning (IRP) modeling must be reassessed to better reflect the needs of a decentralized, flexible, and variable grid [9][34] Summary by Sections Executive Summary - The report emphasizes the need for grid modeling to adapt to the complexities introduced by renewable energy and climate change, as traditional assumptions are becoming outdated [8][9] Introduction - The electricity sector is transforming with load growth, retirements of fossil assets, and increased renewable energy deployments, making integrated resource planning more complex [16][18] Evolving Grid and Planning Priorities - The grid is becoming more decentralized, flexible, and weather-dependent, requiring sophisticated modeling to accurately assess contributions from variable renewable energy sources [19][24][25] Modeling Tools - Grid planners utilize capacity expansion models (CEMs), production cost models (PCMs), and resource adequacy (RA) models to evaluate resource portfolios and their operational costs [26][28][30] Four Essential Assumptions - The report identifies four key assumptions that need reevaluation: 1. Avoid dependence on time slices for modeling [10][37] 2. Do not limit modeling to an average or single weather year [47][50] 3. Avoid modeling systems in isolation from regional resources [54][56] 4. Do not use a single wind or solar profile in diverse geographies [61][65] Conclusion - The report advocates for incorporating health, affordability, and distributional equity into planning processes alongside traditional modeling updates to ensure equitable outcomes [68][71]

MRMI Mind the Regulatory Gap How to Enhance Local Transmission Oversight Report / November 2024 Authors and Acknowledgments Authors Claire Wayner Kaja Rebane (formerly RMI) Chaz Teplin All authors from RMI unless otherwise noted. Contacts Claire Wayner, cwayner@rmi.org Chaz Teplin, cteplin@rmi.org Copyrights and Citation Claire Wayner, Kaja Rebane, and Chaz Teplin, Mind the Regulatory Gap: How to Enhance Local Transmission Oversight, RMI, 2024, https://rmi.org/insight/mind-the-regulatory-gap. RMI values col ...

Investment Rating - The report indicates a positive outlook for the electric bus initiative in Bermuda, suggesting a strong potential for investment in electric public transit systems, particularly in island nations [8][60]. Core Insights - The Government of Bermuda aims to fully electrify its public bus fleet by 2030, having already deployed 70 electric buses, which has led to nearly 100% electric daily operations and significant economic and environmental benefits [8][9][60]. - The electrification project has resulted in annual savings of over $400,000 in fuel costs, a reduction of 1,200 tons of CO₂ emissions, and the avoidance of 800,000 liters of diesel fuel [9][50]. - The initiative serves as a model for other island nations, demonstrating the feasibility and benefits of transitioning to electric public transportation [12][60]. Summary by Sections Improving Service and Air Quality through Electrification - The initiative began in 2018 to replace an aging diesel fleet, improving reliability and energy efficiency while addressing fluctuating oil prices [14][15]. - The project has led to significant operational improvements and reduced emissions, enhancing public health and air quality [50][51]. Driving an EV Revolution in the North Atlantic - Bermuda's unique geography supports the use of electric vehicles, with shorter driving distances alleviating range concerns [13][15]. - The transition to electric buses is part of a broader strategy to reduce dependence on imported fossil fuels and lower transportation costs [15][16]. Status Check: 70 Buses Charging Ahead - As of September 2024, Bermuda operates 70 electric buses and 40 diesel buses, with a focus on expanding the electric fleet [17][56]. The Road to 100% Electric Operations: Procurement and Charging Strategy - A comprehensive procurement process and long-term infrastructure planning have been critical to the project's success [18][19]. - The selection of appropriate vehicle models was guided by local regulations and operational needs [21][24]. Local Workforce Development - Training programs for technicians and first responders have been implemented to ensure effective maintenance and emergency response for electric vehicles [40][41]. Overcoming Barriers to Meet Electrification Goals - The project faced challenges such as high upfront costs and logistical issues, which were addressed through strategic planning and long-term economic assessments [44][46]. Driving the Environmental and Economic Case for E-Buses - The electric bus fleet has demonstrated significant cost savings and emissions reductions, contributing to improved air quality and public health [47][50]. - The initiative has avoided the consumption of 400,000 liters of diesel in six months, further emphasizing its environmental benefits [54]. Continuing Progress and Next Steps - The Department of Public Transportation (DPT) is committed to expanding its electric fleet and optimizing operations to ensure reliable public transit [55][57]. Maximizing Cost Savings Potential - Opportunities exist to further reduce charging costs through demand-based billing and on-site renewable energy generation [58]. Conclusion: Electric Buses as a Proof Point for Island-Wide Electrification - The success of Bermuda's electric bus initiative serves as a model for other island nations, highlighting the potential for low-emission transportation solutions [60][62].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report emphasizes the urgent need for proactive grid investment to support the rapid growth of electric vehicle (EV) loads, highlighting that current infrastructure deployment is insufficient to meet market expectations [4][16] - It identifies significant uncertainty, existing regulatory paradigms, and utility risk aversion as root causes contributing to the challenges faced by utilities and regulators in planning for EV load growth [5][18] - The report outlines a framework of "building blocks" to guide regulators and utilities in effectively planning for EV load growth, focusing on long-term market expectations and improved load forecasting practices [9][24] Summary by Sections Executive Summary - EV load growth presents challenges for utilities and regulators, with current grid infrastructure deployment being too slow to meet market expectations [4][16] - Root causes include significant uncertainty regarding load characteristics, a reactive regulatory paradigm, and risk aversion among utilities and regulators [5][18] - Recommendations for regulators include leveraging existing tools for forward-looking planning and establishing metrics to track performance [7][25] Understanding the Challenge - The report notes that the number of light-duty and medium-/heavy-duty EVs in the US is expected to rise exponentially, necessitating a rapid buildout of charging infrastructure [10] - By 2035, EV charging is projected to consume about 15% of current electricity production, indicating a substantial increase in electricity demand [11] - The report highlights the distinct characteristics of EV load growth compared to other sectors, emphasizing the need for tailored planning [15][16] Transportation Electrification Building Blocks - The report outlines six building blocks to support effective planning for EV load growth, including setting grid planning guidance, improving load forecasting, and prioritizing efficient use of distribution infrastructure [22][24] - Regulators are encouraged to work with utilities to update planning practices and ensure that best available data on future loads is consistently applied [25] - The framework aims to help answer critical questions regarding infrastructure needs, efficient resource allocation, and necessary changes to meet future demands [9][24] Conclusion - The report concludes that addressing the challenges of EV load growth requires a coordinated approach among regulators, utilities, and stakeholders, focusing on proactive investment and improved planning practices [19][22]

Investment Rating - The report does not explicitly state an investment rating for the industry, but it emphasizes the potential for significant economic growth and job creation through industrial decarbonization efforts in Houston. Core Insights - Houston is positioned to lead in industrial decarbonization, leveraging its existing energy infrastructure and workforce to transition towards a low-carbon future [8][18][20]. - The report identifies four primary levers for decarbonization: energy efficiency, electrification, hydrogen substitution, and point-source carbon capture and sequestration (CCS) [11][40]. - The analysis presents three scenarios for decarbonization pathways: Business-as-Usual (BAU), Selective Investment (SI), and Net-Zero (NZ), each with varying levels of emissions reduction and economic implications [43][56]. Summary by Sections Part 1: Houston's Energy Leadership - Texas accounts for over a quarter of the U.S. energy production and has a significant refining and petrochemical capacity, positioning Houston as a critical player in the energy transition [18]. - The region has a history of reducing emissions through renewable energy integration, with coal and gas in ERCOT's generation profile decreasing from 86% in 2001 to 62% in 2023, while renewables increased from under 1% to 27% [8]. Part 2: Assessment of Houston's Industrial Decarbonization Levers - The report establishes a comprehensive emissions baseline for industrial activities in Houston, identifying major sources of emissions and potential reduction opportunities [35][37]. - The four primary levers for decarbonization are identified as energy efficiency, electrification, hydrogen substitution, and point-source CCS, which are crucial for reducing Scope 1 emissions [11][40]. Part 3: Results by Scenario and Lever - The SI scenario predicts over 76 million tons of Scope 1 emissions reductions by 2050 compared to the BAU scenario, with electrification being the most impactful strategy [14]. - The potential economic impacts of industrial decarbonization are significant, with the SI scenario estimating the creation of over 14,000 jobs annually, while the NZ scenario could see nearly 21,000 jobs added each year [14][16]. Part 4: Economic Outcomes of Decarbonization - The report highlights that industrial decarbonization investments will stem from upgrades to existing assets and new projects to meet global demand for decarbonized products [9][12]. - The analysis quantifies the economic growth and emissions reduction benefits achievable through industrial decarbonization, emphasizing the dual benefits of economic prosperity and environmental sustainability [16][29]. Part 5: Houston's Path Forward for Clean Growth - Recommendations for future considerations include leveraging policy support and international demand to drive industrial decarbonization efforts [9][25]. - The report concludes that Houston can maintain its competitive advantages by embracing decarbonization, which aligns with changing consumer preferences and regulatory landscapes [23][29].

Investment Rating - The report indicates a positive outlook for the green shipping corridor, highlighting the availability of clean methanol dual-fuel bulk carriers by 2025 and the significant reduction in the cost gap due to the IRA [45][46]. Core Insights - The feasibility study emphasizes the potential for decarbonizing dry bulk trade between the US Gulf Coast and Japan through the use of zero or near-zero emission fuels, particularly clean methanol [2][45]. - The report identifies that while clean methanol will remain more expensive than conventional fuels, the gap is expected to narrow with the implementation of additional policy mechanisms and market incentives [46]. Summary by Sections Vessel Delivery - Methanol dual-fuel bulk carriers will be available as soon as 2025, presenting an early opportunity for large-scale production projects in the US and East Asia [5]. Fuel Cost - E-methanol costs are projected to be 3.5 to 4 times higher than heavy fuel oil (HFO) in the study's scenarios, indicating a significant cost gap between conventional and green shipping [6][29]. Regional Supply - The US Gulf Coast is anticipated to become a hub for methanol production and bunkering, although the demand from the corridor represents a small percentage of the total potential green fuel offtake from the US and Japan [6][15]. Operational Changes - Dedicated green corridors with predictable vessel schedules are necessary to secure access to methanol and maximize the utilization of dual-fuel vessels, marking a shift from current operational practices [7]. Policy & Market Mechanisms - Effective policies and incentive mechanisms, such as production incentives for zero-emission fuels, can help narrow the cost gap between conventional and green shipping [8]. Willingness to Pay - Partnerships across the value chain, including first-mover cargo owners aiming to reduce scope 3 emissions, are crucial for the success of green shipping initiatives [9]. Route for Feasibility Analysis - The primary route analyzed is the Panama Canal route, approximately 9,400 nautical miles one way, with alternative routes available during disruptions [10][12]. Key Findings - Dedicating six dual-fuel methanol vessels to the corridor requires approximately 66,000 tons of clean methanol per year, decarbonizing the transport of around 2 million tons of dry bulk cargo [13]. Infrastructure - Significant methanol infrastructure already exists on the Gulf Coast, with over 400,000 tons of storage capacity, facilitating the transition to green methanol [17][19]. Cost of Ownership - The total cost of ownership for dual-fuel KSMX vessels is projected to be 1.8 times that of conventional vessels, primarily driven by fuel costs [30][32]. Emissions Reduction - E-methanol is expected to achieve near-zero well-to-wake emissions, with an abatement cost of approximately $230 per ton of CO2e emissions over the vessel's lifetime [33][34]. Cost Gap Analysis - The cost gap between e-methanol and fossil fuel in the first year is estimated to be between $9 million and $11 million per vessel, with a total gap of approximately $50 million to $70 million for six vessels [36][43]. Next Steps - The report outlines the need for further engagement with cargo owners and the exploration of trade routes that leverage regulatory incentives to enhance the viability of the green corridor [47][48].

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report emphasizes the potential of using mass timber from Colorado wildfire thinnings to create low-carbon buildings, which can benefit local forests, communities, and the global climate [9][10][30]. Summary by Sections Executive Summary - Colorado's forests face challenges due to climate change, overstocking from fire suppression, and increased population in wildland-urban interfaces, leading to severe wildfire risks [9][11]. - Forest thinning can enhance resilience against wildfires and protect water supplies, but it is costly, potentially costing taxpayers billions [9][10]. Colorado Forests' Challenging Future - Historical fire suppression has led to overstocked forests, increasing the likelihood of high-intensity wildfires [11][12]. - Nearly 1 million properties in Colorado are at risk of wildfire damage over the next 30 years, with the wildland-urban interface expected to double by 2040 [12][13]. Managing Forests, Managing Fire - Prescribed burns and mechanical thinning are effective strategies to reduce wildfire risks by lowering fuel loads [20][21]. - Thinning operations can yield marketable timber, but most harvested trees are small and have low market value, making it difficult to offset treatment costs [27][28]. "Eating the Problem" with Wood Products - A lack of robust markets for wood from forest management leads to insufficient management, while strong markets could support ecological sustainability and wildfire mitigation [28][29]. - Mass timber, a high-performance engineered wood product, can utilize small-diameter trees and has a lower embodied carbon footprint compared to traditional materials [29][30]. Jump-Starting Colorado's Resilient Local Forest Economies - Developing local forest economies can provide funding for wildfire mitigation treatments and create sustainable building practices [37][38]. - Public support for forest thinning is mixed, with some opposition that can delay management efforts [40][41]. Call to Action - Various stakeholders, including state officials and the general public, are encouraged to support forest management and local wood products [48][49]. Additional Information - The Colorado Mass Timber Coalition aims to enhance the forest and construction value chain to promote resilient local economies [50].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - Virtual Power Plants (VPPs) could constitute over 20% of US peak capacity by 2030, providing a flexible solution for grid management amidst growing challenges [13][24] - VPPs can reduce net generation costs by 20%, translating to approximately $140 savings per household annually, while also achieving a 7% reduction in emissions [17][54] - The integration of VPPs into grid planning can unlock their full potential, enhancing reliability, affordability, and decarbonization efforts [14][19] Summary by Sections Executive Summary - VPPs present a deployable solution for managing grid needs, addressing challenges such as projected load growth, retiring generation capacity, and extreme weather events [13][24] - The report highlights the potential of VPPs to deliver affordable, reliable, and low-carbon power, focusing on their role in reducing emissions [14][30] Key Findings - VPPs can provide a reliable, lower-cost, and cleaner resource mix compared to portfolios without VPPs, with a 17% reduction in net generation costs and a 47% reduction in carbon emissions when a carbon reduction policy is in place [17] - Nationwide, VPPs could avoid 12 to 28 million tons of carbon dioxide emissions by 2035, representing 2% to 4% of projected US power sector emissions [17] - VPPs can reduce the need for new gas capacity by 75% or 1.5 GW, enabling the integration of 200 MW of additional renewables [17] Background - VPPs are defined as grid-integrated aggregations of distributed energy resources, such as batteries and smart devices, which can provide various grid services [22][30] - The report identifies the growing demand for electricity, interconnection challenges, and extreme weather as key factors driving the need for VPPs [24][26] Analysis of VPPs' Role - The analysis compares two portfolios: a Baseline portfolio without VPPs and a VPP-Enabled portfolio, demonstrating that the latter can achieve significant cost savings and emissions reductions [43][49] - VPPs enhance the value of variable renewable energy and can provide resilience benefits for participants, while also being rapidly deployable [47][50] Results - The VPP-Enabled portfolio meets annual reserve margin requirements using less gas and utility-scale storage capacity, demonstrating improved reliability [52] - VPPs provide cost-effective flexibility, avoiding the need for gas capacity and substituting for energy storage, leading to reduced emissions [58]