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r solution of the energy crisis did not lie in central ownership of traditional large power plants, transmitting energy over long distances. He believed the solution to the energy crisis, and the best way to minimize the negative impacts was in a diversified and integrated approach, including a base of central plant generation and distribution, distributed generation using small, clean and efficient plants at the load source. He supported the NRDC's suggested language changes as described by Ms. Hosterman. Commissioner Sullivan noted that because they start quickly and are reliable, most emergency generators are diesel and are limited to a small size and hours of operation per year. He believed that they should not be used as a primary supply of power, and that clean, renewable energy generation was much more desirable. He noted that traditional engines and turbines produce a lot of wasted heat that would escape into the air. Heat recovery techniques would capture that previously wasted energy and redirect it to another heating or cooling system for a significant increase in power efficiency. Those opportunities would be available on a distributed basis at the load source, where they would not be available with a large power plant. In response to an inquiry by Commissioner Arkin, Commissioner Sullivan confirmed that many large building complexes run their air conditioning at night because it is an off-peak use, and they use thermal energy storage to save cost and reduce peak load. r- Commissioner Sullivan noted that aggressive demand-side management was an important component of the energy plan. On the local level, city policy and programs can greatly facilitate these strategies, and he believed there was a tremendous opportunity to accomplish this goal in Pleasanton. He added that there was tremendous interest in the business community in these strategies. Existing, newly-enacted, and proposed state legislation has enabled the city to more easily participate and help their communities in this area. He and Ms. Hosterman had attended a series of meetings with other cities and counties, as well as people from the State, to share energy plarming, ideas, and initiatives. He was impressed by the number of cities that were committed to such programs, and added that some cities were ahead of Pleasanton in their progress. He noted that Woody Clark, one of the Governor's senior energy policy advisors, had attended some of the local area governments meeting and they had several conversations with him. Mr. Clark assured Commissioner Sullivan that the Governor supported these efforts to help with the energy crisis. Commissioner Sullivan noted that the Draft Energy Plan laid out the strategies and steps that would allow the city to achieve the Plan's goals. Major benefits of the plan are: I. Increased local control over energy decisions that can provide price, reliability, and environmental benefits. Focus on energy use reduction. Every dollar spent on demand-side reduction or energy efficiency is as effective as three dollars spent on the supply side to get the same energy benefits. Diversity of ownership, fuel sources and technology reduces the market power (monopoly) of energy providers. Reduces developer and public finance infrastructure costs, primarily in the transmission and distribution areas. 2. 3. 4. - PLANNING COMMISSION MINUTES October 23, 2002 Page 10