Industrial, Agriculture and Water Research Policy Context

California's main energy policy document is the biennial Integrated Energy Policy Report (IEPR), which evaluates overall supply and demand trends for electricity, natural gas, and transportation fuels as well as issues associated with energy infrastructure, efficiency, renewable energy, reliability, and cost. Other policy drivers include Assembly Bill 32 (Núñez, Chapter 488, Statutes of 2006), the Renewable Portfolio Standard, Executive Order S-21-09 - reaffirm the Energy Commission's mandate to promote the "increased development of renewable electricity sources, energy efficiency and demand response [...] to meet the greenhouse gas reduction goal of 1990 levels by 2020 and 80 percent below 1990 emissions levels by 2050." (Executive Order S-21-09).

Governor Brown created a Clean Energy Jobs Plan to build 12,000 MW of localized electricity generation, develop more combined heat and power projects, reduce peak energy demand and develop energy storage, and increase water supplies by expanding water efficiency and recycling. The California Energy Efficiency Strategic Plan emphasizes conducting research and development for new technologies and practices for agricultural efficiency and supporting industry adoption of energy efficiency.

As stated in the 2009 IEPR, the state's building efficiency standards do not apply to industrial plants or their manufacturing processes. Consequently, no regulatory mechanism is in place to ensure energy efficiency implementation in the industrial sector. However, with approximately 50,000 industrial plants and related businesses, California's industrial sector consumes 15 percent of the state's total electricity and 50 percent of its natural gas (excluding power generation), making it essential to address energy use in this sector (2009 IEPR, page 69).