Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy...
Transcript of Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy...
![Page 1: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/1.jpg)
Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia
June 13, 2017
Embassy Suites Charleston, West Virginia
1
![Page 2: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/2.jpg)
How does WV compare to other states?
![Page 3: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/3.jpg)
How does WV compare to other states?
![Page 4: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/4.jpg)
How does WV compare to other states?
![Page 5: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/5.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. CHP IV. State-‐led iniBaBves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
5
How does WV compare to other states?
![Page 6: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/6.jpg)
Policy building blocks to an energy-‐efficient economy: I. U$li$es II. Building codes III. CHP IV. State-‐led iniBaBves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
6
How does WV compare to other states?
![Page 7: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/7.jpg)
Top ten: 1.18% to 2.91% (RI, MA, VT, CA, ME, HI, CT, WA, AZ, MI)
Savings as a % of 2015 retail sales
![Page 8: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/8.jpg)
Top ten: 1.27% to 3.51% (RI, MA, VT, CA, AZ, HI, MI, CT, MD, OR) West Virginia: Overall, 0.19%
Savings as a % of 2015 retail sales
![Page 9: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/9.jpg)
WV UBlity Efficiency Programs
FirstEnergy AEP
Energy Assessments low-‐income residenBal in-‐home and online above low-‐income threshold
In-‐home assessments for all residenBal
LighBng rebates commercial only Retail/residenBal and commercial
Other rebates Programs HVAC, recycling fridges, custom C&I, C&I equipment rebates
ResidenBal Peak ReducBon none $40/year for a/c
![Page 10: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/10.jpg)
Offered by FirstEnergy and/or AEP in other states: • Private contractor home energy assessments (Appalachian Power in VA)
• Home Performance with Energy Star (Potomac Edison in MD)
• ResidenBal new construcBon (AEP I&M, Potomac Edison in MD)
• “Community Energy Savers” – local government partnerships for government, businesses, and residents to become more energy efficient (AEP OH)
• EducaBon program for kids (AEP OH)
• Agricultural program (AEP OH)
• “Retrocommissioning lite” (AEP IN & MI Power)
• Public efficient street lights (AEP I&M)
• C&I Demand Management (“Work Energy Management”) (AEP I&M) 10
Other States’ UBlity Efficiency Programs
![Page 11: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/11.jpg)
Integrated Resource Plans (IRPs)
11
![Page 12: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/12.jpg)
• Helps uBlity customers by requiring uBliBes to plan ahead for meeBng its needs.
• Puts efficiency and other demand resources on equal fooBng with generaBon.
• If efficiency (or any resource) is more cost-‐effecBve, IRPs allow the uBlity to uBlize the best opBon.
Integrated Resource Plans
12
![Page 13: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/13.jpg)
• Passed in 2014 • Required the PSC issue an order describing what should be
in the uBliBes’ IRPs and that the uBliBes issue their IRPs by the end of 2015. – Did not require the PSC to approve the plans.
• Both major uBliBes issued their IRPs. – AEP-‐ ongoing support for energy efficiency programs. – FirstEnergy
• Did no analysis on the cost-‐effecBveness of EE programs. • Plan to disconBnue their meager EE programs ager 2018. • Tipped its hand about a potenBal rate increase for WV customers to bail out a plant that an Ohio subsidiary owns.
• The PSC essenBally had to accept the plans as submiied.
Integrated Resource Plans
13
![Page 14: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/14.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. CHP IV. State-‐led iniBaBves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
14
How does WV compare to other states?
![Page 15: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/15.jpg)
How do WV building codes stack up?
![Page 16: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/16.jpg)
WV rank: 25th (Bed with PA) Other states: MD = 8th, KY = 19th, PA = 25th, VA = 27th, OH = 37th ResidenBal: InternaBonal Energy ConservaBon Code (IECC) 2009 Commercial: ASHRAE 90.1-‐2007 Residen$al 2015 IECC : MD 2012 IECC : VA (with weakened amendments) 2009 IECC : KY, WV, OH, PA Commercial 2015 IECC : MD 2012 IECC/ASHRAE 90.1-‐2010: KY, VA, OH 2009 IECC/AHSRAE 90.1-‐2007: PA, WV
16
How do WV building codes stack up?
![Page 17: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/17.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. State-‐led ini$a$ves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
17
How does WV compare to other states?
![Page 18: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/18.jpg)
How do WV state iniBaBves stack up?
![Page 19: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/19.jpg)
State iniBaBves
![Page 20: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/20.jpg)
State iniBaBves
9th
11th
![Page 21: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/21.jpg)
State iniBaBves
DEAD LAST
9th
11th
![Page 22: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/22.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. State-‐led ini$a$ves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
22
State financial incenBves
![Page 23: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/23.jpg)
• Kentucky -‐ Personal and corporate energy efficiency tax credits; green bank loan for state agencies; sales tax exempBon for energy-‐efficient products; three grants; commercial PACE financing
• Maryland -‐ Different loans and grant programs for agricultural residenBal, mulBfamily, commercial, and industrial sectors; Smart Energy CommuniBes Program; loans for state agencies; commercial PACE financing
• Pennsylvania -‐ AlternaBve Energy Investment Fund; Pennsylvania Sustainable Energy Finance Program; several grant and loan programs
• Virginia -‐ Energy Leasing Program for state-‐owned faciliBes; Clean Energy Manufacturing Grant Program; one loan program; personal and property tax incenBves; commercial PACE financing; Clean Energy Development and Services (CEDS) program
• Ohio -‐ Two loans and one grant program; property tax exempBon for energy-‐efficient projects; commercial PACE financing
• West Virginia -‐ None 23
State financial incenBves
![Page 24: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/24.jpg)
Local Energy and Efficiency Partnerships (LEEP)
(a/k/a “property-‐assessed clean energy” / “PACE”)
24
![Page 25: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/25.jpg)
The Local Energy Efficiency Partnership Act (“LEEP Act”)
30 states, + Washington DC, authorize LEEP (29 states have passed legislation and HI
permits it based on existing law). 25
![Page 26: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/26.jpg)
• Funding mechanism for businesses to make energy efficiency upgrades using private capital
• Loan value ≤ savings from upgrades • Payback period ≤ 20 years • Payments are made on the property tax Bcket – If the business sells the building, the loan stays with the building, not the former owner.
– The loans are “senior” to other liens on the property, unless the mortgagee says “no.”
LEEP: Local Energy & Efficiency Partnerships – what are they??
26
![Page 27: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/27.jpg)
• State legislaBon needed to authorize municipaliBes
• Opt-‐in program for municipaliBes • ApplicaBon for businesses within municipaliBes that opt in
• MunicipaliBes should/can reject applicaBons that do not meet certain criteria, including: – Financial security of the borrower – Investment-‐grade energy audit – RaBo of the cost of upgrades to building value
LEEP: Local Energy & Efficiency Partnerships – Key components
27
![Page 28: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/28.jpg)
• 2015 & 16 bills cosponsored by Rs and Ds: – Republican cosponsors: Dels. Hanshaw, Ambler, Ashley, Canterbury, Cooper, D. Evans, and Walters; Sens. Walters and Blair
– DemocraBc cosponsors: Dels. Fleischauer, Guthrie, Manchin, and Skinner; Sens. Miller, Snyder, and Woelfel
LEEP: Local Energy & Efficiency Partnerships – Where we are in WV
28
![Page 29: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/29.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. State-‐led ini$a$ves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
29
Benchmarking and transparency
![Page 30: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/30.jpg)
Standards or disclosure for private buildings’ energy efficiency
Currently, only 10 states have such programs
Benchmarking for commercial buildings: DC, CA, WA
Disclosure for residenBal: AK, HI, KS, SD, ME, NY, SD
30
Benchmarking and transparency
![Page 31: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/31.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. State-‐led ini$a$ves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
31
Leading by example
![Page 32: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/32.jpg)
• New and exisBng state building standards higher than the state code – currently must meet state code
• Benchmarking for public buildings -‐ none • Energy Service Performance ContracBng programs – exisBng program for ESPCs, but no requirements
32
Leading by example
![Page 33: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/33.jpg)
Kentucky’s Performance ContracBng
From the ACEEE Scorecard: • With more than $750 million in ESPC investments since enabling legislaBon in 1996, Kentucky has one of the largest performance contrac$ng industries in the na$on.
• Through the Local Government Energy Retrofit Program, the state facilitates energy efficiency in smaller municipaliBes through ESPC.
• All state-‐supported community and technical colleges have ESPCs.
• The state also tracks real-‐Bme energy savings in state buildings and makes these data publicly available.
![Page 34: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/34.jpg)
Thank God for Mississippi?
Mississippi’s leadership in benchmarking
• All state agencies must report energy consumpBon or face penalBes.
• State agencies work with the Mississippi Development Authority Energy and Natural Resources Division to develop energy management plans.
• The state also set a goal of achieving 20% energy savings in public university faciliBes by 2020.
• To reach its energy savings goals, the state significantly upgraded its energy codes for both public and private buildings.
![Page 35: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/35.jpg)
• Things we don’t know about the government’s energy use: – What opportuniBes exist for saving taxpayer money through cuung energy costs
– How much energy the state government uses – How much money the state pays in uBlity bills – How big the state government’s buildings are – What buildings the state government owns
Assessing Government Energy Use
35
![Page 36: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/36.jpg)
Policy building blocks to an energy-‐efficient economy: I. UBliBes II. Building codes III. State-‐led ini$a$ves
A. Financial incentives B. Benchmarking & Transparency C. “Lead by example” D. R&D
36
Leading by example
![Page 37: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/37.jpg)
WVU Industrial Assessment Center WVU Energy InsBtute
WVU College of Law Center for Energy & Sustainable Development
37
Research and Development
![Page 38: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/38.jpg)
• Released in May of 2017 • Joint project of :
o The American Jobs Project and o WVU Center for Energy and Sustainable
Development
West Virginia is well posi8oned to benefit from rising global demand for industrial energy efficiency products given: • its large industrial manufacturing base with chemical and
energy efficiency manufacturers, • collec8on of energy-‐focused research ins8tu8ons
conduc8ng cuBng-‐edge research on fuel and energy efficiency,
• readily available workforce, and • incen8ves for businesses located in the state. 38
Example Report: The WV Jobs Project: A Guide to CreaBng Jobs in Energy Efficiency
![Page 39: Economic Development through Energy Efficiency: Energy ... · Economic Development through Energy Efficiency: Energy Efficiency Policy in West Virginia June 13, 2017 Embassy Suites](https://reader035.fdocuments.in/reader035/viewer/2022070903/5f6864e787ca7119e208ac84/html5/thumbnails/39.jpg)
Strategically Expanding West Virginia’s Industrial EE Sector & Supply Chain Companies • Partner with Industry Ass’ns to Create an Energy Efficiency Industry Working Group • Strengthen and Expand West Virginia’s Foreign Direct Invest-‐ment Strategy • Create an Anchor Company Tax Credit
Fostering a Strong Innova$on Ecosystem
• Leverage Philanthropic Funding Via a FoundaBon Liaison • Co-‐Sponsor a Hackathon to Ignite West Virginia’s Entrepreneurial Culture • Encourage CommercializaBon of Cuung-‐Edge Research
Leveraging Local Assets to Increase Access to Capital for Growing Companies
• Develop RelaBonships with FoundaBons Engaging in Program-‐ Related Investment • Create Tax IncenBves for Investment in Startups • Coach Businesses on How to Solicit Capital • Establish a State Fund of Funds to SBmulate the Investment Environment
Aligning Training Programs to Meet the Needs of Industry and Serve Students
• Support Career-‐Connected Learning • Encourage High School Partnerships with Community and Technical Colleges • Align Community College Efforts with Private Sector Needs
39
Example Report: The WV Jobs Project: A Guide to CreaBng Jobs in Energy Efficiency