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An Equity-Focused Transition to Clean Energy in L.A.

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Media coverage of UCLA’s LA100 Equity Strategies report, which will help the Los Angeles Department of Water and Power meet its goal of prioritizing equity as it transitions to renewable energy sources, featured several members of the UCLA Luskin community. Gregory Pierce, co-executive director of the UCLA Luskin Center for Innovation, which produced the report’s chapter on energy affordability, addressed the DWP’s goal of transitioning to 100% carbon-neutral power by 2035 on KCRW’s Greater L.A. “I’m fairly optimistic that the city will get there, but it needs to move really quickly,” Pierce said. The report, which featured research from across the UCLA campus, was also highlighted in the Los Angeles Times and New York Times. Their stories cited Stephanie Pincetl UP PhD ’85, a professor at the UCLA Institute of the Environment and Sustainability, and Cynthia McClain-Hill, president of the Los Angeles Board of Water and Power Commissioners and a member of the UCLA Luskin Board of Advisors.

Listen to the KCRW report
Read the L.A. Times story
Read the New York Times story

 

L.A. Asks How to Equitably Achieve 100% Clean Energy by 2035 — and UCLA Answers Luskin School research centers join cross-campus effort to guide LADWP strategies centered on equity and justice

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By Mara Elana Burstein

In 2021, after the LA100 analysis laid out pathways for the city of Los Angeles to produce 100% renewable electricity, the City Council and Los Angeles Department of Water and Power committed to pursuing the most ambitious — and expensive — scenario: achieving the goal by 2035 at a cost of nearly $40 billion.

But cost is far from the only challenge. Facing a legacy of inequity within the city’s energy system, the LADWP turned to UCLA researchers to develop strategies for pursuing clean energy without perpetuating social, racial and economic injustices.

Five teams convened by the Sustainable LA Grand Challenge answered the call, bringing together more than 20 UCLA faculty and researchers with expertise in engineering, environmental science, law, labor studies, public health and urban policy. Working with researchers from the U.S. Department of Energy’s National Renewable Energy Laboratory, which offered computing power and technical capacity, these scholars provided a deep local context, as well as behavioral, social and political expertise, to help Los Angeles ensure a more just transition.

The release of their two-year study, the LA100 Equity Strategies report, was announced today at a press conference at LADWP headquarters downtown, where Mayor Karen Bass’ “Powered by Equity” initiative, based on the report’s findings, was also unveiled.

“We have an opportunity to be innovative and bold,” Bass said in a press release. “We have an opportunity to shape our clean energy future in a manner that delivers benefits to community residents and our LADWP customers in the neighborhoods where they live. We’re making a conscious decision to take intentional clean energy actions that are ‘Powered by Equity,’ as recommended by the newly released LA100 Equity Strategies research study.”

Stephanie Pincetl, a co-author of the report and director of the UCLA California Center for Sustainable Communities, welcomed the initiative, which will kick off with a LADWP project to build, operate and maintain a network of electric vehicle charging stations in underserved communities.

“No other utility in the United States has made a commitment to not only 100% renewable but making sure it’s implemented equitably,” said Pincetl, who earned a PhD in urban planning from UCLA in 1985. “This is the power of a municipal utility, a utility owned by and for its customers.”

The UCLA authors of LA100 Equity Strategies found that significant changes will be necessary to prevent the energy system’s injustices from increasing both during and after the transition, particularly for underserved communities of color, which currently bear the brunt of bad air quality, extreme heat and electrical outages. Without mitigation, these communities are projected to pay more for energy and experience fewer benefits over time.

To that end, UCLA’s approach has been justice-centered, providing community-informed, evidence-driven strategies and recommendations on affordability and policy solutions, air quality and public health, green jobs and workforce development, and housing and buildings.

The cost of electricity will rise with the transition to clean energy, with average electricity bills predicted to increase by nearly 80% for households overall and by more than 130% for low-income households by 2035. Addressing those rate hikes has been a key goal for UCLA researchers.

The work of the UCLA Luskin Center for Innovation, supported by the UCLA Institute of the Environment and Sustainability, provides specific recommendations for robust, long-term structural solutions to improve LADWP customers’ ability to pay their energy bills. These include addressing regulations that constrain rate affordability and continuing to explore and scale up innovative approaches to support affordability for ratepayers.

“Affordability is a key equity concern for all LADWP stakeholders, and protections for lower-income customers must be expanded,” said Gregory Pierce, a report co-author and research director of the Luskin Center for Innovation. “And as exposure to extreme heat increases, universal access to residential cooling is essential.”

The UCLA Center for Neighborhood Knowledge and the UCLA Latino Policy and Politics Institute analyzed aspects of energy affordability for small ethnic-owned businesses. They recommended that the LADWP partner with community-based organizations to better engage with these businesses.

Other projects, led by teams from the UCLA Fielding School of Public Health, UCLA Institute for Research on Labor and Employment and UCLA California Center for Sustainable Cities, focused on improving air quality, promoting green jobs abd equitable workforce development, and proving energy upgrades to housing and other buildings, many of them in disadvantaged neighborhoods.

Achieving the city’s carbon-neutral goal equitably requires intentional, community-informed, bold decisions adapted over time, and UCLA will continue to work with the LADWP and local communities on these efforts.

Importantly, the researchers say, UCLA’s methods, tools, insights and strategies not only support the LADWP’s efforts but can be used other cities seeking a just energy transition.

In addition to Pincetl and Pierce, the UCLA teams were led by Paul Ong, director of the UCLA Center for Neighborhood Knowledge; Yifang Zhu, professor of environmental health sciences at the UCLA Fielding School of Public Health; Raúl Hinojosa-Ojeda, director of North America Integration and Development Center at UCLA; and Abel Valenzuela Jr., interim dean of social sciences and professor at the UCLA Institute for Research on Labor and Employment.

Read the full story.

Learn more about the Luskin Center for Innovation’s recommendations for how to expand protections for low-income customers.

California Entering Decade of Disruption, as Power System Shifts Dramatically

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Communities across California have formed Community Choice Aggregators (CCAs) at a rapid rate since 2010, with over half of them starting within the last two years. County and city governments administer CCAs as local alternatives to investor-owned utilities. “The Growth of Community Choice Aggregation: Impacts to California’s Grid,” a new report produced by Next 10 and written by JR DeShazo, Julien Gattaciecca and Kelly Trumbull MPP ’17 of UCLA’s Luskin Center for Innovation, finds that if current growth trends continue, CCAs may serve a majority of California’s power consumers within the next 10 years, transforming California’s retail electricity sector. According to the report, the rise of CCAs has both direct and indirect positive effects on overall renewable energy consumed in California, helping contribute to the state meeting its 2030 RPS targets approximately 10 years in advance. Even with such an important impact on the penetration of renewable energies, CCAs’ effects on the grid have been negligible so far. This is in part because when a CCA starts, it handles the needs of existing electric customers, and often gets power from existing power plants. In the long term, though, CCAs’ impact on the grid depends on their energy procurement strategies and their local investments. “The public and local nature of CCAs positions them to implement local energy programs that will help to reduce or shift energy consumption, benefiting the grid as well as their customers,” DeShazo said.

 

Photo by iStock / oveguli

 

Unlocking Millions of Dollars in State Incentives for Solar Power New research by GRID Alternatives and UCLA Luskin Center for Innovation quantifies the opportunities and potential benefits of solar power on affordable housing units in L.A. County

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By Colleen Callahan MA UP ’10

Karina Guzman is both property manager and resident of a low-income housing complex for working families in Southern California. Even with the job and relatively affordable rent, Guzman worries about paying her electricity bills. But relief is coming from what she found to be a surprising source: solar panels recently installed on 17 of the 27 buildings in her complex.

The solar panel system will offset the cost of powering lights and other needs in common areas as well as help residents lower their electricity bills. “I can’t wait for the solar panel to help me pay a credit card bill, and maybe even save for a vacation,” Guzman said.

Low-income households typically spend higher percentages of their incomes on energy costs and thus stand to benefit most from utility bill savings due to solar power generated on their homes. Yet, while Los Angeles County is a national leader in the adoption of residential solar, the homes of low-income households account for less than 1 percent of residential solar capacity across the county, according to new research by the UCLA Luskin Center for Innovation and the nonprofit organization GRID Alternatives. This may change.

The study found that cities in Los Angeles County could soon unlock millions of dollars annually in state incentives for residential solar on affordable housing.

Starting in 2018, California will offer a solar rebate program targeted at putting solar panels on the roofs of affordable housing developments. With an annual budget of up to $100 million, the Solar on Multifamily Affordable Housing program “could make a big difference toward reversing the current inequity in the distribution of residential solar systems,” said Michael Kadish, executive director of GRID Alternatives Los Angeles, which makes renewable energy technology and job training accessible to underserved communities.

The program, along with smaller existing state solar rebate programs such as the Low-Income Weatherization Program available for large multifamily residences located in disadvantaged communities across the state, will encourage the installation of solar systems that help affordable housing residents’ reduce their utility bills.

But there is a catch.

Residents of affordable housing and other multifamily dwellings can only take advantage of state solar incentive programs if their utility offers a virtual net metering policy allowing residents to receive credits from the system. Virtual net metering is a common billing mechanism that allows multiple parties to share the financial benefits of a single solar power system.

Southern California Edison offers virtual net metering, but that’s not the case with municipally owned utilities in cities such as Los Angeles, Burbank, Glendale and others in the county. Without virtual net metering, there is no real mechanism for residents of multifamily dwellings, including affordable housing, to access the financial benefits of solar.

“Now is a good time for the City of Los Angeles ― which we identified as having the largest share of rooftop solar potential (62 megawatts) and rebate-eligible rooftop solar potential in the region ― to consider removing the policy barrier that is currently preventing myriad residents of multifamily dwellings from realizing the benefits of residential solar,” said J.R. DeShazo, director of the UCLA Luskin Center for Innovation and chair of UCLA Public Policy.

Researchers calculated the potential of 115 MW of rooftop solar power throughout Los Angeles County on the more than 1,100 affordable housing properties that would qualify for a solar rebate. Researchers quantified the potential benefits if this physical capacity for solar on affordable housing was realized in Los Angeles County:

  • $11.6 million annually in utility bill savings for affordable housing residents
  • $4.9 million annually in savings for affordable housing property owners
  • $220.6 million in funding from state programs to spur local economic development
  • 1,800 job years (one year of full-time work or the equivalent) created
  • More than 3,800 job training opportunities and nearly 31,000 job training hours that can be strategically targeted to encourage an equitable clean energy workforce

The report includes recommendations for designing a virtual net metering tariff in Los Angeles to help maximize these types of benefits. Findings also highlight the opportunity to target solar workforce development benefits to residents of affordable housing who are more likely to live in communities with higher unemployment rates than the county at large.

The report can be found online.

 

Community Choice Is Transforming the California Energy Industry Report by UCLA Luskin Center for Innovation researchers finds that Community Choice Aggregators provide a competitive alternative for electricity consumers

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By George Foulsham

J.R. DeShazo

After decades of dominance by electricity monopolies, California is experiencing the emergence of community choice aggregators, a new type of utility that provides cities and counties the opportunity to choose what kinds of energy to purchase for their needs.

Community choice aggregation allows cities and counties in California (and other states that have enacted it) to group individual customers’ purchasing power within a defined jurisdiction to buy energy. In California, community choice aggregators are legally defined by state law as electric service providers.

These aggregators, or CCAs, have introduced competition into historically protected, investor-owned utility territories. In doing so, they have given eligible California customers a choice of retail energy providers. Since 2010, California communities have established eight CCAs. More than a dozen additional communities are making strides toward switching to CCAs.

“California is headed toward transformation with this rapid development of community choice aggregation programs,” said J.R. DeShazo, principal investigator for a new report by the UCLA Luskin Center for Innovation, part of the UCLA Luskin School of Public Affairs. “Our report highlights the benefits of CCAs while identifying unresolved policy questions that must be addressed by state regulators.”

According to the report, CCAs in California generally offer a larger share of renewable energy — up to 25 percent more — compared to the investor-owned utility in the same area. “We estimate that these efforts resulted in a total reduction of approximately 600,000 metric tons of carbon dioxide in 2016 — the equivalent of $7.5 million in reductions at the 2016 carbon price of $12.73 per metric ton on the statewide carbon market,” DeShazo said.

CCAs offer greener energy at a competitive price, according to Julien Gattaciecca, Luskin Center researcher and lead author of the study.

“CCAs have recently entered the energy market, allowing them to benefit from a long decline of falling wholesale renewable energy costs,” Gattaciecca said. “Some CCAs also offer larger incentives than their local investor-owned utility to households and businesses that self-generate energy through rooftop solar programs, and some have made the commitment to source energy from local renewable facilities, and directly own local solar facilities.”

DeShazo, who is a professor of public policy at the Luskin School, added: “Community choice aggregation is currently the best policy tool available to cities and counties who want to tailor energy procurement to their community’s preferences. The stakes are high. Regulators are grappling with important policy decisions that could affect the future of the energy market as well as the pocketbooks of Californians.”

With investor-owned utilities facing increasing competition, the study concludes that more choices can only benefit consumers, with the right regulations in place.

“Currently, an important part of the load in California is looking at CCAs,” Gattaciecca said. “The three major investor-owned utilities could see between 50 and 80 percent of their load departing for CCAs or direct access providers by 2025 or 2030.”

The eight operational California CCAs are Marin Clean Energy, Sonoma Clean Power, Lancaster Choice Energy, CleanPower San Francisco, Peninsula Clean Energy in San Mateo County, Apple Valley Choice Energy, Silicon Valley Clean Energy and Redwood Coast Energy Authority. Other CCAs expected to launch this year are East Bay Community Energy in Alameda County, Los Angeles Community Choice Energy and Valley Clean Energy Alliance in Yolo County and Davis.

Luskin Center sets out to make L.A. a greener place to live, work The Luskin Center for Innovation has set a goal to produce research that will help Los Angeles become more environmentally sustainable

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By Cynthia Lee

Green power. Solar energy incentives. Renewable energy. Smart water systems. Planning for climate change. Clean tech in L.A. For the next three years, the UCLA Luskin Center for Innovation has set an ambitious goal to produce research that will help Los Angeles and state and federal agencies reach the Holy Grail of environmental sustainability.

Five Luskin scholars are working on initiatives that could change how residents, businesses, industries and government meet the challenge of living more sustainably. The Luskin center is carrying out a mission that was broadly outlined by Chancellor Gene Block in his inaugural address on May 13, 2008: to marshal the university’s intellectual resources campuswide and work toward intense civic engagement to solve vexing local and regional problems. “I believe that UCLA can have its greatest impact by focusing its expertise from across the campus to comprehensively address problems that plague Los Angeles,” the chancellor told an audience in Royce Hall.

With an agenda packed with six hefty research initiatives, the center is diving into that task under the leadership of its new director, J.R. DeShazo, an environmental economist and associate professor of public policy who also heads the Lewis Center for Regional Policy Studies. DeShazo took the reins in October when the center moved from the Chancellor’s Office to the School of Public Affairs, a move that took advantage of the school’s outward orientation. “It’s focused on policy solutions, so this is a natural place for us to grow,” DeShazo said. “But even though the center is located here, we’re very cross-disciplinary. We have researchers from chemistry, public health, engineering, the Anderson management school, the Institute of the Environment (IoE) and public policy.”

The five scholars working on the six initiatives are DeShazo; Yoram Cohen, an engineering professor and director of the Water Technology Research Center; Magali Delmas, professor of management and the IoE; Hilary Godwin, professor of environmental health sciences; and Matt Kahn, professor of economics in the departments of Economics and Public Policy and IoE. “We started off by identifying problems that our community is facing and that it can’t solve,” DeShazo said. Then, they asked two questions: “Does UCLA have the research capacity to address this deficit? And can we find a civic partner who can make use of this new knowledge?” Proposals were prioritized by a 16-member advisory board with a broad representation of business and nonprofit executives, elected officials and a media expert. Among the high-profile board members are State Senators Carol Liu and Fran Pavley; Mary Nichols, chairman of the California Air Resources Board; Los Angeles Council President Eric Garcetti and Controller Wendy Greuel; Assemblymember Mike Feuer; John Mack, chairman of the Police Commission; and William Ouchi, professor of the Anderson School and chairman of the Riordan Programs.

“We take our research ideas and develop real-world solutions that can be passed on to a civic partner with whom we can engage and support,” DeShazo said. “We let them carry through with the politics of policy reform as well as the implementation. We don’t get involved in advocacy.” An array of local green research DeShazo recently completed Luskin’s first initiative with his research on designing a solar energy program for L.A. that would minimize costs to ratepayers. His research – the basis of Mayor Antonio Villaraigosa’s new energy policy – proposes a solar feed-in tariff that would help everyone from homeowners and nonprofits to commercial property owners buy solar panels and be able to sell their solar energy to utility companies for a small profit.

Other Luskin research initiatives involve creating smart water systems for Southern California with water reclamation, treatment and reuse (UCLA researcher Cohen will work in partnership with the Metropolitan Water District); helping local governments plan for climate change (DeShazo with the California Air Resources Board and the Southern California Association of Governments); and reducing toxic exposures to nanomaterials in California (Godwin with the National Institute of Occupational Safety and Health.) In another initiative in partnership with the Mayor’s Office and the California Air Resources Board, researchers are compiling a database of jobs created by clean tech activities in L.A. County and will document best practices that other cities have used to attract and support clean tech development. Luskin’s Kahn is working with the Sacramento Municipal Utility District to pinpoint what determines how much electricity is used by residential and commercial consumers and how the district can market its major green energy programs to increase participation.

Finally, Delmas is looking into whether the Green Business Certification Program approved recently by the City Council will reduce the overall carbon footprint of small businesses. The program offers incentives and assistance to small business owners in L.A. to become more efficient and less wasteful in their everyday practices. Those businesses that meet certain “green” criteria will be certified as being environmentally friendly. Her partner in this venture is the Los Angeles Department of Water and Power.