Ener gy Efficiency M ak es Business Sense
Kathleen H ogan Deputy Assistant Secretary for EE Office of Energy Efficiency and Renewable Energy
June 14, 2012 1 | Energy Efficiency and Renewable Energy
eere.energy.gov
I mpor tance of Ener gy Efficiency Part of “ all-the-above” strategy Achieves key objectives: •Local job creation / retention •Homeowner and Business/ Industrial savings •
Lower bills
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Avoided infrastructure over longer-term
•Environment / public health benefits •Industrial competitiveness
First fuel M cKinsey, 2009 2 | Energy Efficiency and Renewable Energy
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Pr ogr ess • Recover y Act – $12 B in energy efficiency investments (low income, public buildings) – 700 K low income homes weatherized -- ahead of target – $550 M in loan funds across 35 states – 2,300 local governments engaged in projects
• Appliance/equipment pr ogr ams – Standards for 30+ products since 2009 -- savings of almost $400 B thru 2030 – New certification procedures; new public database; compliance program – ENERGY STAR
• Building codes – Almost 60% of states have adopted or made significant steps to adopt latest building codes from 16 in 2009
• State ener gy savings tar gets – About 50%of states have targets; and more than half of those of 1%or more / yr
• Ratepayer funded investment – Grown to $6.6 B / yr in 2010, more than double a few years ago
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D OE Pr ior ities • Technologies • Materials • Processes
• • • •
• Appliance standards • Building codes: adoption, implementation • Federal standards
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Building performance information Quality workforce Financing solutions Energy savings calculation methods State/ local/ Federal leadership
High efficiency new homes Deep retrofits Industrial improvements / CHP Advanced materials / processes
Robust U pgr ade I ndustr ies eere.energy.gov
Wor k ing T ogether
Stat e and L oc al Region al
F eder a l
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Br oa d (not compr ehensi ve) i l l ustr a ti on
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D OE Effor ts to Addr ess EE Challenges U si ng conveni ng power , r ecogni ti on for excel l ence, techni ca l exper ti se, techni ca l a ssi sta nce to devel op consi stent a ppr oa ches, best pr a cti ces, objecti ve i nfor ma ti on
Replicable M odels (for U pgr ades) •Consumer •Financial Firms •Program Administrators •Contractors
Better I nfor mation / T ools •To engage consumers
Better Buildings Challenge Better Buildings Neighborhoods Superior Energy Performance Finance Best practices (ESPCs, RLFs) Building MPGRatings / Upgrade Tools Sector-specific new technologies / approaches Industrial CHP Outreach Workforce guidelines, training, credentials
•Skilled/ trained workforce Uniform Methods Project •Credible evaluation methods Green Button………….. •Access to energy data
State/L ocal Policies 6 | Energy Efficiency and Renewable Energy
SEE Action facilitation State Energy Program Grants
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Better Buildings Challenge Goals: • 20%savings in commercial / industrial buildings by 2020 • Replicable, demonstrated models across different organization types / ownership types / building types
L eader ship oppor tunity: • Challenge par tner s commit to: • Set public energy savings goals
Pr ogr am launched D ec 2: •60+ Partners and Allies to date
• Announce innovative strategies
Commitments:
• Shar e implementation str ategies and r esults
•1.6 Billion sq ft commercial space •$2 Billion in financing through allies •300 manufacturing facilities •Federal facility goal: $2 Billion in energy investment
• F inancial allies commit to provide financing • Pr ogr am administr ator s commit energy use data and multimeasure programs
D OE suppor ts and r ecognizes 7| par tner s
Full list of partners and allies at http:/ / www4.eere.energy.gov/ challenge/ 7
eere.energy.gov
Better Buildings Challenge: Public Sector •
Leverage ARRA
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Challenge partners announced at the program launch:
– Cities: Atlanta, Denver, DC, Houston, Los Angeles, Sacramento, Seattle – States: Minnesota, Iowa
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Adding new partners to provide broad solution set
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National Summit for States and Local communities
– June 26-27 in Denver – Highlight innovative strategies and implementation models – Profile efforts of BBCpartners – Recognize ~ 30 new partners (Cities and States)
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eere.energy.gov
R eplicable Business M odels: R esidential Upgr ades
Over view • 32 States; 41 3-year grants of $1.4 to $40 million each and $450 million in total • D evelop sustainable ener gy efficiency upgr ade pr ogr ams • Achieve 15-30% energy savings from energy efficiency upgrades • Upgrade >100,000 buildings • Leverage $1-3 B in additional resources • Engage 10-30k contractors in upgrade work • Save consumers approximately $65 million per year
U pdate • Transition to DOE • Pr oposal for pr ogr am impr ovements out for comment – mor e scalable futur e • Prescriptive and performance path • Second comment period – Fall 2012 • Pilots Fall/ Winter • New program requirements – Summer 2013
N ext Steps • Business model guide • July 9-11, 2012: Residential EE Solutions Conference – Arlington, VA 9|
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Access to F inancing: Range of M odels Goals • Leverage ARRA Funding ($550 in RLF across 35+ states) • Increase access, lower cost of capital for efficiency customers D OE pr oviding T echnical Assistance to: •Transition RLFs to investment authorities •Design public private partnerships •Attract institutional investors •Standardize financing products and develop secondary markets Examples of Options / M odels •On-Bill F inance (utility bill/ utility capital): Utility lends capital, originates and services all loans. •On-Bill I nvoice: (private capital, bonding) Utility invoices, provides no capital and may not originate loan •3r d Par ty Bill (utility, private capital): Third party originates and services loans. •I nvestment Author ity/State Agency (bonding, QECB, ARRA, state, rate payer capital): Originates and services loans directly or through 3rd Party Bill Cr can be applied to any of the above examples (rate payer, ARRA, state, eere.energy.gov QECB) 10edit | Energyenhancements Efficiency and Renewable Energy
Better I nfor mation: Building Per for mance
2nd Phase of I mplementation 11 | Energy Efficiency and Renewable Energy
I nitial T esting (dr aft) eere.energy.gov
Acceler ating Technology: CBEA R ooftop Unit Air Conditioner (RT U ) Challenge Jan 2011: RTU Challenge spec released: performance + features •18 IEER: up to 50%energy reduction relative to ASHRAE 90.1 •$1 billion annual energy savings if all 10-20 ton units in U.S. were replaced
M ay 2012: Deadline to Enter the RTU Challenge •5 companies have entered with candidate products •1 company has met requirements: Daiken-McQuay
Apr 2013: Deadline to M eet the RTU Challenge CBEA members supporting spec
12 | Energy Efficiency and Renewable Energy
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I ndustr ial Efficiency / Combined H eat and Pow er Benefits of CH P •High efficiency; up to (75-80%efficient vs. 45%for separate) •Cost savings to user •Emissions reductions •Improved grid reliability; distributed in location
Policy I ssues State policy barriers require cooperation between: regulators, utilities, environmental stakeholders, and end-users
40 gigawatts of new, costeffective CHP by 2020 yields: •1 quad savings •150 mmt CO2 savings •75%of McKinsey CHP economic potential •$10 billion/ yr savings for energy users relative to typical use of energy
F eder al Resour ces •9 Regional Clean Energy Application Centers • Help evaluate state policies and impact on CHP • Share best practices • Identify manufacturing facilities with CHP potential
•EPAs pending Boiler MACT rule compliance: • DOE Technical Assistance for 14,000 major source boilers
•SEE Action Industrial Energy Efficiency and CHP WG • Upcoming regional workshops in coordination with DOE • June 21: MW. Fall: NE/ Mid-Atl, SE, West • Attendees include State regulators, utilities, industry 13 | Energy Efficiency andwill Renewable Energy
eere.energy.gov
Quality Wor k for ce Goal: High-quality workforce to support upgrade industry / energy management
14 | Energy Efficiency and Renewable Energy
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Better M easur ement U nifor m EM & V M ethods Pr oject Vision: U nifor mity and T r anspar ency for Ener gy Savings Calculations for EE Pr ojects and Pr ogr ams • Different calculation methods cause confusion • 17 different guidance documents (i.e. Technical Reference Manuals) to estimate savings cover 21 states • Estimates vary by factor of two to more than 10
• Uniform methods will: • Strengthen credibility of savings calculations (for administrators, regulators, investors) • Simplify comparison of savings across similar programs and jurisdictions • Reduce EM&V development costs
Goal:
U nifor m methods for calculating pr ogr am-level savings for up to 20 measur es. Seven under w ay:
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Better M easur ement U nifor m EM & V M ethods Pr oject Par ticipants State Officials • Miles Keogh, National Association of Regulatory Utility Commissioners (NARUC)
Non-Profit Organizations • Tom Eckman, Regional Technical Forum (RTF) •
Steve Kromer, Efficiency Valuation Organization (EVO)/ SKEE
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Marty Kushler, American Council for an Energy-Efficient Economy (ACEEE)
Nancy Seidman, Commonwealth of Massachusetts
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Julie Michals, Northeast Energy Efficiency Partnerships (NEEP)
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Dub Taylor, State of Texas
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Diana Lin, Association of State Energy Officials (NASEO)
Steve Schiller, on behalf of Lawrence Berkeley National Laboratory
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Malcolm Woolf, State of Maryland
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Amy Royden-Bloom, National Association of Clean Air Agencies (NACAA)
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Kevin Gunn, Missouri Public Service Commission
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Utilities • Mike Brandt, Commonwealth Edison
Observers • Linda Ecker, AEP Ohio •
Carla Frisch, Department of Energy
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Michael Li, Department of Energy
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Phyllis Reha, Minnesota, Public Utility Commission
Gene Rodrigues, Southern California Edison (SCE )
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Emmett Romine, Detroit Edison (or Bill Newbold Jr.)
Steve Rosenstock, Edison Electric Institute
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Lisa Wood, Institute for Electric Efficiency
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Mary Ann Ralls, National Rural Electric Cooperative Association (NRECA)
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Chuck Rea, MidAmerican Energy Company
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U pdate • Technical reviews of the first set of protocols occurred in spring 2012. • Stakeholder review process begins June 25, 2012 • First set of 7 protocols will be published late in 2012 • Second set of 10 protocols to be published in 2013
Efficiency Service Providers/ESCO • Donald Gilligan, National Association of Energy Service Companies (NAESCO)
16 | Energy Efficiency and Renewable Energy
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Better Information on Utility Bills • Gr een Button •
Standardized data access
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Commitments from ~ 20 utilities representing ~30 million households
• D ata applications challenge • D ata Access Best Pr actices •
Available April 2012
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20%utilities responding
• D ata I nitiative to engage entr epr eneur s
17 | Energy Efficiency and Renewable Energy
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State and L ocal Policies – SEE Action • N etw or k of 200+, led by state and local policymak er s, br inging EE to scale • Pr ovides best pr actices and r ecommended appr oaches on k ey EE policy ar eas based on state/local exper ience • Resour ces include: – Analyzing and Managing Bill Impacts of Energy Efficiency Programs – Benchmarking/ Disclosure and Auditing/ Retro-Commissioning Model Policies for Commercial and Public Buildings – Industrial Energy Efficiency and Combined Heat and Power (CHP) Model Policies and Programs Guide – EM&V for Behavior-Based Efficiency Programs – Regulators’ Guide to Addressing Issues Arising from 3rd Party Data Access for EE
• D OE T echnical Assistance – Access to assistance from National labs, Regional Efficiency Organizations, technical experts F or mor e infor mation: w w w .seeaction.ener gy.gov
18 | Energy Efficiency and Renewable Energy
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SEP Competitive Gr ants F Y12: $14 million, announced end of June
F Y11 Gr ants in N or theast
Three Areas of Interest:
M assachusetts: $900k to test aspects of asset rating system, informing national effort N ew H ampshir e: $380k to develop a statewide plan for achieving energy efficiency investment goals
19 | Energy Efficiency and Renewable Energy
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L ook ing for war d Energy efficiency is top priority energy resource Savings, jobs, competiveness, economy, environment
• Leverage ARRA • Address Barriers • Grow Partnerships
Gr ow ing ener gy efficiency industr y
– State/ Local, Regional, National
20 | Energy Efficiency and Renewable Energy
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