National Action Plan for Energy Efficiency

www.epa.gov/ eeactionplan

Realizing the National Action Plan for Energy Efficiency

Larry Mansueti, DOEStacy Angel, EPANARUC Summer Committee MeetingsJuly 18, 2007

• 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

• Over 50 member public-private Leadership Group developed five recommendations and commits to take action

• Additional commitments to energy efficiency – exceeds 90 organizations

National Action Plan for Energy Efficiency

Recommendations

1. Recognize energy efficiency as a high-priority energy resource.

2. Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource.

3. Broadly communicate the benefits of and opportunities for energy efficiency.

4. Provide sufficient, timely and stable program funding to deliver energy efficiency where cost-effective.

5. Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments.

National Action Plan for Energy Efficiency

Current Activities and Next Steps

July 31, 2006 - National Release at NARUC Meeting

(Recommendations, Report, Commitments)

March 29, 2007 – Leadership Group Meeting

June 21, 2007 – Midwest Implementation Meeting

June 27 & 28, 2007 – Sector Collaborative on

Energy Efficiency Meeting

Sept. 28, 2007 – Southeast Implementation Meeting

Sept. 13, 2007 – West Implementation Meetings

April 30, 2007 – Mid-Atlantic Implementation Meeting

April 27, 2007 – New England Implementation Meeting

November 2007 – National Update in conjunction

with NARUC Annual Meeting

Leadership Group Develops Year Two Work Plan; Continues Outreach

Work Groups for Year Two Resources and Activities Formed

Vision Work Group Formed

Year Two Resources Released,

including EM&V Guidebook

EE-DR Integration Effort

Leadership Group to Year Three Activities

Status of Commitments

• Six new commitments since November 2006– Includes Public Service Commission of Wisconsin

– In discussion with several additional Commissions

– Several commitments to be released in coming months

• Action Plan providing framework for several states and utilities looking pursue energy efficiency

• More commitments are necessary to meet the Action Plan Goal– New commitments to be announced in conjunction

NARUC Annual Convention 2007 in Anaheim, CA

– Contact Katrina Pielli (pielli.katrina@epa.gov) or Larry Mansueti (lawrence.mansueti@hq.doe.gov)

Assistance is available to help advance 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

resources and activities– Provide technical assistance to state policy makers, including

• Continue existing assistance to states on various utility efficiency topics • Expand work with states for aligning utility incentives w/ efficiency• EPAct Section 140 solicitation for state, gas and electic utility partnership

to reduce electric consumption (due August 2007)

– Share free resources from the ENERGY STAR, buildings, industrial, and clean energy programs to utilities and states

• Other parties– NARUC– Consortium on Energy Efficiency (CEE) “Ask the Expert”

Key Themes from Year Two Activities

• Regional Implementation Meetings– Meetings held in New England, Mid-Atlantic, and Midwest. September 2007

meetings in West & Southeast.

– Tracking shows states all at different stages of deploying EE policies

– Common findings• States with high EE investment looking to do more

• Diverse views on preferred approaches, even within a region

• Desire for innovative approaches

• Collaboratives valuable to advancing dialogue and building trust

• Political environment within states changing for EE, carbon link

• Need for high-level policy direction to purse EE

– Regional meeting helping shape new commitments, EE filings/collaboratives

• Sector Collaborative on Energy Efficiency– Commercial customers looking to utilities for data consistency and assistance

with benchmarking building energy use

– Utilities / customer collaboration valuable to future EE efforts

SAVE THE DATESeptember 13, 2007

Western Implementation Meeting

Embassy Suites Hotel1000 Woodward Place NEAlbuquerque, New Mexico

Attend this one-day meeting with Western utilities, state utility commissioners, state consumer

advocates, legislators, and other key stakeholders, to delve into the specifics of implementing greater energy efficiency through the National Action Plan

for Energy Efficiency recommendations. This meeting is being held in conjunction with the

Western Public Utility Commissions’ Joint Action Framework on Climate Change.

Leadership Group Planning West and Southeast Implementation Meetings

SAVE THE DATE

SEARUC Fall Summit and Southeast Energy Efficiency Meeting

September 27-29, 2007

Westin Buckhead Hotel3391 Peachtree Road NE

Atlanta, Georgia

Attend the Commissioners-only SEARUC Fall Summit, which includes a one-day meeting on energy efficiency in the Southeast (Friday, Sept. 28 open to all) sponsored by SEARUC, the Southeast Energy

Efficiency Alliance (SEEA) and the National Action Plan for Energy Efficiency.

To learn more contact: Katrina Pielli, US EPA, pielli.katrina@epa.gov

Currently Available Resources for States, Utilities and Stakeholders

• National Action Plan for Energy Efficiency Report www.epa.gov/cleanenergy/actionplan/report.htm

• Energy Efficiency Benefits Calculator www.epa.gov/cleanenergy/actionplan/resources.htm

• Consumer Energy Efficiency Fact Sheet www.epa.gov/cleanenergy/actionplan/outreach.htm

• Regional Implementation Meetings - New England, Midwest and Mid-Atlantic www.epa.gov/cleanenergy/actionplan/regional_mtgs.htm

– Policy tracking tables

– Presentations and meeting summaries

• Sector Collaborative on Energy Efficiency www.epa.gov/cleanenergy/actionplan/sector_meeting.htm:

– Meeting Presentations

– Background Paper on Utility Data Availability

– Energy Consumption Profiles for Offices, Hotels, Supermarkets, & Retail Stores

• Draft Educational Briefings www.epa.gov/cleanenergy/actionplan/mar2907meet.htm

Future Resources for States, Utilities and Stakeholders

• Available by end of July at www.epa.gov/cleanenergy/actionplan/resources.htm:

– Communications Kit

– Building Codes and Energy Efficiency Fact Sheet

• Available late summer at www.epa.gov/eeactionplan:

– Aligning Utility Incentives with Energy Efficiency Investment Paper

– Guide on Energy Resource Planning and Procurement Processes

– Guide on Conducting Potential Studies for Cost-Effective Energy Efficiency

– Guide on Energy Efficiency Evaluation, Measurement and Verification Protocols

– Resource database and sample docket/workshop material

– Final Education Briefings

– Policy tracking tables for West and Southeast

• Available Fall at www.epa.gov/eeactionplan:

– Regional Implementation Meeting Presentations and Summaries for West and Southeast

– Action Plan Vision for 2025

– Demand Response and Energy Efficiency Integration

• Requested by Leadership Group at last meeting• Vision document to:

– Describe a future where all Action Plan recommendations are pursued– Chart a course that can be taken, to be modified as issues evolve, possible areas

for evolution:• Utility role• Consistency in EM&V• Demand response and grid technologies• Regional Coordination

– Highlight interrelationship of state EE polices with regional and federal policies, and complementary issues:

• Carbon emissions• Demand response• Modernization and maintenance of T&D

• Exploring goal to be implementing all cost-effective EE by 2025• To be released with commitment updates Fall 2007 (in conjunction with

NARUC Annual Meeting)

Action Plan Vision for 2025

• Renewable energy• Clean distributed generation• Resource adequacy / reliability

Demand Response and Energy Efficiency Integration

• Leadership Group wants demand response to be addressed, while keeping main focus of Action Plan on efficiency

• Year Two Work Plan:– “…determine how to incorporate EE and DR in

complementary ways such that customers have increased tools at their disposal with which to understand, manage and reduce their electricity use”

• Design of work product TBD – possibly two-part:– High-level view of issues in doing both EE & DR, then,

– More detailed discussion on key issues (i.e. guides)

EM&V Guide - Objectives

• Foster best-practices for documenting the energy savings and peak demand impacts of energy efficiency programs

• Outline best-practice approaches for calculating energy savings and avoided emissions

• Pull together existing documentation and materials into a single concise document

• Be policy neutral – respects states that may have already acted

• Facilitate transparent evaluations and minimize transaction costs

• Work towards establishing: – Common evaluation definitions and terminology– Consensus on basic evaluation approaches and definitions in order to

promote consistent evaluations across jurisdictions

The National Action Plan is developing a Guidebook on Model Energy Efficiency Program

Evaluation that utilities, ISO’s, states, cities, private companies, and others can use as a

framework to define their own “institution-level” or “program-level” evaluation requirements.

• Emerging state/regional policies and markets require consistent program evaluation– Markets for peak load reductions that allow bids from demand resources

including energy efficiency • e.g., New England ISO Forward Capacity Market (FCM)

– Increasing interest in Energy Efficiency Portfolio Standards – New state policies for reducing and measuring greenhouse gas (GHG) and

other emissions

• There are widely recognized protocols M&V of energy savings from single projects but similar widely accepted protocols or guidance documents for measuring energy savings from programs do not exist– M&V project protocols do not address issues unique to program evaluation– Utilities, program administrators, regulatory commissions, and policymakers

calling for consistent guidance on best-practice evaluation approaches

Why is the EM&V Guide Needed?

EM&V Guide Scope: Programs Addressed and Evaluation Focus

• Program types addressed– Primary focus (i.e., will include detailed guidance):

• Resource acquisition, downstream energy efficiency programs

– Secondary focus (i.e., will be addressed, but not with detailed guidance): • Other demand-side programs: Market transformation, codes and standards,

demand response, and upstream efficiency programs will be referenced• Supply-side programs: renewable energy and combined heat and power (CHP)

program

• Evaluation focus – Primary focus:

• Impact evaluation, including: kWh, kW, therm savings and avoided emissions

– Secondary focus:• Process and market evaluations• Potential studies• Cost-effectiveness evaluation

How the EM&V Guide Can Be Used

• Utilities, ISO’s, states, companies, and other entities running programs can use the Model Program Evaluation Guide

• Help to: – Define jurisdiction-specific program evaluation requirements

based on best-practice approaches– Inform key evaluation issues that reflect local requirements and

constraints (e.g., budgets, uncertainty tolerance, net to gross issues, time period of evaluation, etc.)

– Establish consistency in evaluating savings – very important for energy efficiency and emissions reduction programs that cross state or utility borders

• Co-chaired by Commissioner Dian Grueneich, California PUC, and Diane Munns, EEI

• Draft developed by Advisory and Technical Groups

• To be released in late Summer 2007

How the EM&V Guide is Being Developed

Advisory Group – Chris James, Connecticut DEP– Rick Leuthauser, MidAmerican

Energy Company– Jan Schori, Sacramento

Municipal Utility District– Peter Smith, NYSERDA

Technical Group– Steve Schiller, Schiller Consulting

(Principal Author)– Derik Broekhoff, World Resources

Institute– Nick Hall, TecMarket Works– M. Sami Khawaja, Quantec– David Sumi, PA Consulting– Laura Vimmerstedt, National

Renewable Energy Lab

For More Information

www.epa.gov/eeactionplan

Stacy Angel

U.S. Environmental Protection Agency

Angel.Stacy@epa.gov

Larry Mansueti

U.S. Department of Energy

Lawrence.Mansueti@hq.doe.gov