Introduction to the ERG Team Outreach Services for the ENERGY STAR Buildings Program Kickoff Meeting

1
The National Action Plan and Addressing Financial
Barriers to Energy Efficiency
Katrina Pielli Clean Energy Program Manager US
Environmental Protection Agency NASUCA Mid-Year
Meeting June 23, 2008
2
Action Plan MotivationEfficiency Helps Meet
Todays Challenges

• Utility System Benefits
• Near-term tool with persistent, long-term
  benefits
• Improved security of systems
• Lower baseload and peak demand
• Reduce need for hard to site GT assets
• Targeted, modular, manageable
• Risk Management
• Diversifies utility resource portfolios
• Zero carbon emissions

• Environmental
• Lower carbon emissions and criteria pollutants
• Lower water use
• Economic
• Savings to customers
• Lower cost (about half) compared to new GT
• Downward pressure on natural gas prices and
  volatility
• Improved local economy, using local labor
• Benefits lowincome, seniors

Quick, cheap, and clean resource
3
Action Plan MotivationPersistent Barriers Hinder
EE InvestmentsUtilities Play a Critical Role

• Market barriers
• Split incentives
• Transaction costs
• Customer barriers
• Lack of information
• Competing vendor claims
• Lack of funding
• Public policy and utility regulatory barriers
• Lack of good documentation on energy efficiency
  policy options
• Misperception that energy efficiency is not a
  guaranteed, reliable cost effective resource
• Ratemaking policies may financially discourage
  utilities from investing in efficiency
• Resources planning processes may not consider
  energy efficiency resources
• Program barriers
• Lack of good documentation and education on
  demand-side programs
• Lack of knowledge about the most effective and
  cost-effective program portfolios

4
National Action Plan for Energy Efficiency
Addresses Policy Barriers

• Released on July 31, 2006 at the National
  Association of Regulatory Utility Commissioners
  meeting
• Goal To create a sustainable, aggressive
  national commitment to energy efficiency through
  gas and electric utilities, utility regulators,
  and partner organizations
• 60 member public-private Leadership Group
  developed five recommendations and commits to
  take action
• Commitments to energy efficiency by over 120
  organizations
• Releases key resources to help parties meet
  commitments, including its Vision for 2025
• DOE EPA facilitate

• National Action Plan for Energy Efficiency
• Recommendations
• Recognize energy efficiency as a high-priority
  energy resource.
• Make a strong, long-term commitment to implement
  cost-effective energy efficiency as a resource.
• Broadly communicate the benefits of and
  opportunities for energy efficiency.
• Provide sufficient, timely and stable program
  funding to deliver energy efficiency where
  cost-effective.
• Modify policies to align utility incentives with
  the delivery of cost-effective energy efficiency
  and modify ratemaking practices to promote energy
  efficiency investments.

5
Leadership Group Members

• Includes 30 electric/gas utilities, 18 state
  agencies, and 13 other organizations

• PJM Interconnection
• PNM Resources
• Public Advocate State of Maine
• Puget Sound
• Sacramento Municipal Utility District
• Santee Cooper
• Seattle City Light
• Servidyne Systems
• Southern California Edison
• Southern Company
• Tennessee Valley Authority
• Texas State Energy Conservation Office
• The Dow Chemical Company
• Tristate GTA, Inc.
• USAA Realty Company
• Vectren Corporation
• Vermont Energy Investment Corporation
• Wal-Mart Stores, Inc.
• Washington UTC

• Entergy Corporation
• Environmental Defense
• Exelon
• Food Lion
• Great River Energy
• Idaho PUC
• ISO New England Inc.
• Johnson Controls
• Long Island Power Authority
• MidAmerican Energy Company
• Minnesota Public Utilities Commission
• National Grid
• Natural Resources Defense Council
• New Jersey BPU
• New Jersey Natural Gas
• New York Power Authority
• New York State PSC
• North Carolina Air Office
• North Carolina Energy Office

• Alliance to Save Energy
• American Council for an Energy-Efficient Economy
• Ameren
• American Electric Power
• Arkansas Electric Cooperative Corporation
• Arkansas PSC
• Austin Energy
• Baltimore Gas and Electric
• Bonneville Power Administration
• California Energy Commission
• California Public Utilities Commission
• Servidyne Systems
• Connecticut Consumer Counsel
• Connecticut Department of Environmental
  Protection
• Connecticut Department of Public Utility Control
• Delaware General Assembly
• District of Columbia Public Service Commission
• Duke Energy

6
Observers to the Action Plan

• National Association of Regulatory Utility
  Commissioners
• National Association of State Energy Officials
• National Conference of State Legislatures
• National Council on Electricity Policy
• National Electrical Manufacturers Association
• National Rural Electric Cooperative Association
• North American Insulation Manufacturers
  Association
• Steel Manufacturers Association

• American Gas Association
• American Public Power Association
• Association of Energy Engineers
• Business Council for Sustainable Energy
• Consortium for Energy Efficiency
• Council of Energy Resource Tribes
• Demand Response Coordinating Committee
• Edison Electric Institute
• Electric Power Research Institute
• Energy Programs Consortium
• Gas Appliance Manufacturers
• Gas Technology Institute
• National Association of Energy Service Companies

7
Commitments to Energy Efficiency

• Commitments from 122 organizations
• 15 utility commissions
• 27 other state/local agencies
• 35 utilities
• 7 large-end-users
• Over 38 others

8
Organizations That Endorsed the Five Action Plan
Recommendations and/or Made Commitments to Energy
Efficiency

• Advantage IQ
• Alliance to Save Energy
• Ameren
• American Council for an Energy-Efficient Economy
• American Electric Power
• American Gas Association
• American Public Power Assoc.
• Arkansas Public Service Com.
• Arlington County, Virginia
• City of Aurora, Colorado
• Austin Energy
• Bonneville Power Administration
• Building Owners and Managers Association
  International
• Connecticut Departments of Public Utility
  Control, Environmental Protection, and Office of
  Consumer Counsel
• Costco Wholesale
• Delaware PSC
• City of Denver, Colorado
• Dominion Virginia Power
• Dow Chemical Company

• EnerNOC, Inc.
• Entergy Corporation
• Exelon
• Florida Public Service Commission
• Food Lion
• Great River Energy
• Hawaii Department of Business, Economic
  Development Tourism
• Hawaii PUC
• HTS Enterprise EERE Institute
• Idaho Governor, Public Utilities Commission,
  Energy Division, Depart. of Environmental Quality
  
• Indianapolis Power Light
• City of Indianapolis, Indiana
• Iowa Governor, Utilities Board
• ISO New England
• Iowa Utility Association
• Johnson Controls
• Kankakee County Housing Authority, Illinois

• California MOU Signatories California Governor,
  Public Utilities Commission, Energy Commission,
  Anaheim Public Utilities, Burbank Water Power,
  Gridley Municipal Utilities, LA Department of
  Water Power, Natural Resources Defense Council,
  Northern California Power Agency, Pacific Gas
  Electric Company, City of Palo Alto Utilities,
  Pasadena Water Power, Sacramento Municipal
  Utility District, San Diego Gas Electric
  Company, Southern California Edison Company,
  Southern California Gas Co., Silicon Valley
  Power, City of Shasta Lake Electric Utility
• Duke Energy
• Eastman Kodak
• Edison Electric Institute
• Efficiency Texas
• Electric Power Research Institute
• Energetics Incorporated
• EnergySolve Companies

9
Organizations That Endorsed the Five Action Plan
Recommendations and/or Made a Commitment to
Energy Efficiency

• New England Conference of PUCs
• New Jersey Board of Public Utilities
• New Jersey Natural Gas
• New York State PSC
• North American Insulation Manufacturers
  Association
• Northeast Energy Efficiency Partnerships
• Ohio Consumers Counsel Office
• Oregon Governor, Public Utility Commission,
  Department of Energy, Energy Trust of Oregon
• Orion Energy Systems
• Pepco Holdings, Inc.
• PNM Resources
• Public Service Electric and Gas Co.
• San Miguel County, Colorado
• Santee Cooper
• Seattle City Light
• City of Somerville, Massachusetts
• Southeastern Association of Regulatory Utility
  Commissioners

• Kansas Corporation Commission
• King County, Washington
• Large Public Power Council
• Louisville Metro Govt, KY
• Maryland Governor, Maryland Energy Administration
  
• City of Medford, MA
• Mid-America Regulatory Conference
• MidAmerican Energy Company
• Midwest Energy Efficiency Alliance
• Midwest Independent Transmission System Operator
• Minnesota PUC, Department of Commerce
• Town of Mountain Village, CO
• National Association of Energy Service Companies
• National Rural Electric Cooperative Association
• National Association of State Energy Officials
• Natural Resources Defense Council

• Southern Company
• Stop Shop/Giant Foods
• Tennessee Valley Authority
• Tri-State Generation and Transmission Association
• United Cooperative Services
• United Technologies Corp.
• USAA Realty
• Utah Governor
• Vectren Corporation
• Vermont Energy Investment Corporation
• Vermont PSB
• Wal-Mart Stores, Inc.
• Washington UTC
• Waverly Light and Power
• Western Conference of PSCs
• Whole Foods Market
• Wisconsin PSC
• Xcel Energy
• Xerox Corporation

10
Progress in Meeting CommitmentsRegional Success
Stories

• Commitment progress updates were released on
  November 12, 2007
• Full text and press releases from various
  organizations available on Action Plan website
  (www.epa.gov/eeactionplan) under Commitments
• Action Plan Commitment Success examples include
• Oregon Governor, PUC, Dept of Energy, Energy
  Trust of Oregon Coordinating EE Interagency
  Team new legislation expands tax credits to High
  Performance Homes 3 public purpose funding
  extended through 2025
• Food Lion Achieved ENERGY STAR designation for
  its 600th store in 2006, and reached its goal of
  certifying 100 stores by the end of 2007.
• California MOU (Governor, Utilities, State
  Government) EE institutionalized as first
  priority resource for IOUs and POUs CPUC adopted
  new performance-base EE risk/reward mechanism
  new Big Bold EE Strategies extends goals through
  2020 continued support for best practices
  database
• Eastman Kodak Achieved a 23 estimated reduction
  in total GHG emissions (both direct and indirect)
  from 2002 baseline year.
• NJ Board of Public Utilities With other state
  agencies, set goal to reduce projected energy use
  by 20 by 2020
• NY PSC Energy Efficiency Portfolio Standard
  (EPS) for a 15 reduction in electricity usage
  below the 2015 forecasted level to establish
  goal for gas

11
Vision for 2025

• Released November 12, 2007
• Long-term Aspirational Goal To achieve all
  cost-effective energy efficiency by the year 2025
• Framework for implementing Action Plan
  recommendations
• Puts the 5 recommendations into Action
• Is a living document open to new ideas will be
  refined
• Is a plan need to know where you want to go in
  order to get there
• A challenge for new thinking
• 10 Implementation Goals
• Action needed over next 10-15 years to help lay
  policy foundation by 2025
• Highlights need for new technology
• Offers initial approach to measure progress
• Currently being refined by Leadership Group
• Not a mandate respects state processes not one
  size fits all

12
Key Tools Resources to Meet the Visions 10
Implementation Goals
13
Key Tools Resources to Meet the Visions 10
Goals (contd)
14
Measuring Progress towards the Vision for 2025

• Measure progress through national metrics
• Energy to be saved through goals (kWh, KW,
  therms)
• Energy saved (kWh, KW, therms)
• Carbon reductions
• Dollars invested
• Cost-effectiveness of delivered programs
• Measure progress through measurable outcomes
  relative to 10 implementation goals
• Achieve consistently across the states,
  recognizing that states can have important
  differences
• Leadership Group refining process in Spring 2008

15
Assistance Available to Support Action Plan
Commitments

• Leadership Group and other organizations will
• Conduct peer-to-peer information sharing and
  support
• Provide education and outreach per their
  commitments
• DOE/EPA will
• Continue to facilitate the Action Plan process,
  including support for new resources and
  activities
• Provide technical assistance to state policy
  makers and utilities (expanding existing efforts)
• Share free resources from the ENERGY STAR,
  buildings, and clean energy programs to utilities
  and states

16
Action Plan Resources Help Parties Meet
Commitments and Implement Vision

• Papers
• National Action Plan for Energy Efficiency Report
  -- 2006
• Vision for 2025 Developing a Framework for
  Change
• Aligning Utility Incentives with Energy
  Efficiency
• How-To Guides
• Model Energy Efficiency Program Impact Evaluation
  
• Resource Planning with Energy Efficiency
• Conducting Energy Efficiency Potential Studies
• Regional Implementation Meeting Materials

• Education and Outreach
• Online EE Resource database
• Energy Efficiency Benefits Calculator
• Communications Kit
• Building Codes and Energy Efficiency Fact Sheet
• Consumer Energy Efficiency Fact Sheet
• Sample Educational Presentations
• Sector Collaborative on Energy Efficiency
  Materials
• Background Paper on Utility Data Availability
• Commercial Customer Energy Consumption Profiles

17
Provisions of Energy Independence and Security
Act of 2007

• National Action Plan resources can help states
  address required shall consider provisions
  (gas/electric)
• Integrated Resource Planning
• Rate Design Modifications
• Aligning utility incentives with EE
• Promote EE investments

18
Action Plan Next Steps

• Outreach, Training and Recognition
• Broad outreach including periodic newsletter to
  share information / recognize successes
• Increased outreach to key stakeholder groups,
  including NASUCA
• Additional commitments to energy efficiency
• Refinement of Measuring Progress toward the 2025
  Vision
• Proposed New Resources for 2008

19
National Action Plan Proposed New Resources
(DOE/EPA sponsored)

• Recommendations on standardized customer energy
  bill information / access
• Coordination issues/opportunities between EE and
  DR
• Guide for state and local government
  lead-by-example EE efforts
• Guidance on defining cost-effectiveness of
  programs
• EE as low-cost resource for reducing GHG
  emissions
• EE workforce planning issues (outside Action
  Plan) commercial sector
• Options for EE programs to improve energy savings
  from codes
• Best practices in EE program design and
  implementation, and customer incentives

Fall 2008 Fall/Winter 2008
Work Group
20
You are Key to Advancing Energy Efficiency

• Across the country, key state stakeholders
  (Governors, PUCs, consumer advocates, energy
  offices and air offices) are working together to
  advance EE
• Look into EE in your state. Key questions
  include
• Do customers have access to cost-effective EE
  resources?
• Are best practice EE programs being offered in
  your state?
• How to get involved in the Action Plan
• Help spread the word on the benefits and
  opportunities of EE
• Make a commitment to advance EE under the Action
  Plan
• Join the Leadership Group
• Join a Work Group for a Year 3 document
• Multiple federal programs/tools are available to
  help advance the Action Plan recommendations.

21
For More Information
www.epa.gov/eeactionplan

• Katrina Pielli
• Pielli.Katrina_at_epa.gov
• [phone]
• Stacy Angel
• Angel.Stacy_at_epa.gov
• [phone]
• Larry Mansueti
• Lawrence.Mansueti_at_hq.doe.gov
• [phone]