Energy Efficiency Program Performance

Dian M. Grueneich, CommissionerCalifornia Public Utilities Commission

NARUC Winter Meeting - February 16, 2008 Washington DC

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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 60 member public-private Leadership Group developed five recommendations and commits to take action

Additional commitments to energy efficiency – exceeds 120 organizations

Facilitated by US DOE and EPA

www.epa.gov/eeactionplan

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

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Model Energy Efficiency Program Impact Evaluation Guide

• Guide was developed because a need was identified for documents that foster best practices and promote consistent evaluations of programs

• Provides a structure and several model approaches for: – Calculating energy and demand savings– Calculating avoided emissions

• Published in November 2007 after a year long national committee process

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Objectives

• To provide: – A model impact evaluation process that can be used by individual

jurisdictions (states, utilities, etc.) with their own specific evaluation requirements

– Basic descriptions and guidance, in a policy neutral manner, of evaluation options and issues

– List of reference documents and resources

• Readers should be able to:– Define the basic objectives, structure and evaluation approaches that

will be used for their own program-specific, impact evaluation – Using the Guide and other documents referenced in Guide, prepare a

complete program impact evaluation plan.

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The Participants Advisory Group

Commissioner Dian Grueneich, California PUC (co-chair)Diane Munns, EEI (co-chair)Chris James, formerly of Connecticut DEPRick Leuthauser, MidAmerican Energy CompanyJan Schori, Sacramento Municipal Utility DistrictPeter Smith, formerly of NYSERDA

Technical GroupSteve Schiller, Schiller Consulting (Principal Author)Derik Broekhoff, World Resources InstituteNick Hall, TecMarket WorksM. Sami Khawaja, QuantecDavid Sumi, PA ConsultingLaura Vimmerstedt, National Renewable Energy LabEd Vine, Lawrence Berkeley National Lab

ReviewersDraft sent to “hundreds”Comments received from about 25 organizations

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What is EE in CA…

Energy Efficiency is California’s highest priority resource to:

Meet energy needs Save money Reduce GHG emissions

EE is # 1 in loading order

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What EE Can Generate …..

Source: California Green Innovation Index, 2008 Inaugural Issue – Next 10, page 21.

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CA’s Approach to EM&V - Protocols

• California’s Protocols establish a uniform approach for:

– Conducting robust and cost-efficient energy efficiency evaluation studies;

– Documenting ex-post evaluation-confirmed (i.e. realized) energy efficiency program and portfolio effects;

– Supporting the performance bases for judging energy efficiency program and portfolio achievements;

– Providing data to support energy efficiency program and portfolio cost-effectiveness assessments;

• EM&V budgets about 8% of program costs; and,

• EM&V overseen by CPUC, independent of IOUs.

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What it takes ….. Integration, Innovation, Collaboration…

The “Next Generation” of California EE• Long-term (through 2020), statewide utility

strategic plan www.californiaenergyefficiency.com

• Integration across customer demand resources

• Real time/interactive Energy Efficiency Web Portal

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• All new commercial construction in California will be zero net energy by 2030.

Commercial New

Construction

• All new residential construction in California will be zero net energy by 2020.

Residential New Construction

• Heating, Ventilation, and Air Conditioning (HVAC) industry will be reshaped

Residential / Small Commercial HVAC

Big Bold

Energy Efficiency Strategies

Low-Income Energy Efficiency • All eligible

homes energy-efficient by 2020.