The 2004 Annual Review of the PIER Program spans eight volumes. Volume 1 is a review of PIER's commercial successes and benefits. Volumes 2 thru 8 contain reviews of more than 800 projects, half active and half completed, by program area as follows:
PIER Program
Pursuant to AB 1890 (Brulte), Chapter 854, Statutes of 1996, the collection of a surcharge was authorized on retail electricity sales of not less than $62.5 million annually for four years to ensure a continuation of public interest energy research, development, and demonstration projects. The PIER program was established at the Energy Commission to implement this provision and was funded at approximately $62 million annually from January 1, 1998 to December 31, 2001. Currently, the Program conducts promising public interest research concerning electricity by partnering with research, development, and demonstration organizations, including individuals, businesses, utilities, and public or private research institutions.
Pursuant to SB 1038 (Sher), Chapter 515, Statutes of 2002, the PIER Program was reauthorized with new provisions consistent with the Energy Commission's Five-Year Investment Plan adopted in March 2001. The new provisions enabled the PIER Program to respond to emerging issues in the state's electricity system.
Program History
Each year, Californians consume $30 to 35 billion worth of electricity, and $12 to 15 billion worth of natural gas, well over $100 million on a hot summer day. Yet California continues to face significant challenges in meeting its electricity needs in a way that improves and maintains system reliability, promotes economic growth, and protects the environment and public health. To help address these issues, the Legislature established the Public Interest Energy Research (PIER) program at the California Energy Commission, funding the program with payments from ratepayers. PIER is working to develop information and technologies that address critical public interest needs and can help avoid the next energy crisis. Based on a review of the program from 1998 to 2003, ratepayer benefits are projected to be between $1.60 and $4.10 for every dollar contributed.
The Energy Commission's PIER program is working to develop information and technologies that address critical public interest needs and can help avoid the next energy crisis. The program brings together parties with differing aims, creates better pathways to market for emerging technologies, and informs public decision makers as they debate energy issues. Through its efforts, the PIER program helps resolve issues and facilitates the development and deployment of technologies with broad public benefit, focusing on public interest concerns not addressed in the private or academic sectors.
Additionally, California's energy policies emphasize energy efficiency, demand response, and renewable energy in contrast with the federal government's focus on coal and nuclear research. Consequently, California can rely neither on the federal government nor on private interests to meet its energy policy objectives.
California needs to continue an effective public interest energy research and development program if it is to meet its broad policy goals of affordable, reliable, and environmentally sensitive electricity supplies, as well as the state's need to protect public health and safety.