California's Public Interest Energy Research (PIER) program has made significant strides in the past three years, according to a preliminary Independent Review Panel (IRP) report released by CCST in March 2004.
California's PIER program supports projects focusing on renewable energy technologies, distributed energy resources, end-use energy efficient technologies, and related environmental studies. It awards up to $62 million annually to conduct the most promising public interest energy research by partnering with R&D organizations such as public and private research institutions, as well as individuals and businesses. The program was created by the Legislature in 1996 when California's energy industry was restructured. Currently, PIER is scheduled to run through 2011.
"We are pleased with the progress that PIER has made, and are confident that the coming year will see further improvements. The principal problems are organizational limitations: PIER needs the independence and authority appropriate for a top-notch R&D program."
-Carl Weinberg
Principal, Weinberg Associates
Chair, PIER Independent Review Panel |
This is the second time CCST has led an independent review of the PIER program. The first, conducted from 1999-2001, delivered its final report in March 2001. As a follow-up to the first review, Senate Bill 1038 required that the California Energy Commission (CEC) convene a new panel to further review the PIER program and determine the extent to which it has successfully implemented the recommendations of the first IRP. The new 15-member review panel convened by CCST includes several members from the first IRP, with additional new members from academia, industry, and government agencies who represent the range of economic, technical, and policy skills needed to effectively assess the program.
The March 2004 report notes that the PIER program has implemented many of the recommendations made in the 2001 report. The new IRP found that each of the 13 expectations of the previous IRP was addressed, and in most cases, real progress was made. At present, PIER program areas are better defined, with competent team leaders in place; well-conceived research strategies are in development; and contracting procedures have been streamlined since the previous evaluation.
According to the new report, the principal problems facing PIER at present are organizational limitations. The IRP concluded that PIER needs greater independence and that its management structure and relationship with the CEC needs to be reconsidered if the program is to achieve its maximum potential.
The panel will continue to meet through the end of 2004 to assess the extent to which the CEC and the PIER program are following the recommendations of the preliminary report. The IRP will present its final report on the PIER program in January 2005.
On a related topic, in January 2004, at the request of the CEC, CCST released its Retrospective Report on California's Electricity Crisis which describes the impact of restructuring on California's energy system, and the shortfalls of doing so without clearly assigning responsibility for planning and managing resource portfolios.
Recommendations:
- Fill the existing knowledge gap.
- CEC needs to give the PIER director authority to fill vacancies to counteract the unintended consequence of staff resource cuts, which have burdened the remaining staff and threaten the program's effectiveness.
- Streamline the advisory committee process.
- The number of program-area advisory committees can be reduced and linked with the PIER Policy Advisory Council.
- Give the PIER director funding authority.
- This will help PIER better integrate with R&D programs at the state and national level, and open up more opportunities to pursue collaboration.
- Develop a strategic operational and implementation plan to solve PIER's structural problems.
- Two parallel plans should be developed, one within the CEC and one external to the CEC. These should be completed by August 2004 so the IRP can discuss them in its final January 2005 report.
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