Energy Efficiency: Savings, Jobs, and CompetitivenessEfficiency as an Emission Reduction Approach

Danielle Sass Byrnett

November 10, 2015

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Outline

Energy Efficiency as an Emission Reduction Approach:

• State-by-state annual efficiency potential and achievements

• Energy efficiency savings opportunities, by sector

• Details for industrial and city-led pathways (examples)

• DOE technical assistance

• Appendix – DOE Technical Assistance & Resources Available, by Sector

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State by State Potential Studies & Achieved Electricity Savings

Key:

• Color: Projected Economic/Achievable Annual Savings

• Text: 2014 Achieved Net Incremental Electricity Savings

Potential study publication years: 2007 (FL) – 2015 (OK)

Projection years: 2016 - 2034

Sources: 2014 Achieved Annual Savings – ACEE 2015 State Scorecard

Economic/Achievable Potential – Compiled from several sources

Energy Efficiency Potential

0% < 1%

1% < 2%

2% < 3%

3% < 4%

4% < 5%

5% <

Potential Percent Annual Savings

Potential

Percent

Annual

Savings0.06%

1.57%0.53%

1.58%

0.88%

MA: 2.50%RI: 3.51%CT: 1.32%NJ: 0.68%DE: 0.04%DC: 0.54%MD: 1.29%

0.15%

0.23%HI: 1.53%AK: 0.03%

0.81%

1.08%

0.74%

1.17%

0.01%

0.37%

0.02%

1.21%

1.35%

1.22%

0.15%

0.52%

0.66%

0.23%

0.57%

NH: 0.56%VT: 1.85%

0.54%

1.02%

0.64%

0.02%

1.05%

0.30%

1.27%

0.59%

0.53%

0.21%

0.30%

0.19%

0.71%

0.02%

1.02%

0.23%

0.76%

0.17%

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Many Substantial, Well Documented Energy Savings Opportunities

TypicalLead

Savings Pathways

Estimate of National

Electricity Savings Potential in 2030

Pri

vate

Sec

tor

S/L

Go

v’t

Uti

lity

Industrial Efficiency 162 million MWh

Combined Heat and Power 130 million MWh

Building Energy Codes 120 million MWh

Energy Savings Performance Contracting 105 million MWh

City-Led Energy Efficiency Policies & Programs 54.5 million MWh

Utility Ratepayer-Funded Efficiency Programs 41.6 million MWh

Residential Energy Efficiency (e.g., PACE, low-income) 17.6 million MWh

S/L Gov’t = state or local government

PACE = property assessed clean energy

DOE calculations of ballpark achievable potential based on sector-specific assumptions

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EE Savings Pathways Can be Incorporated into Mass & Rate Plans

TypicalLead

Savings Pathways

Helps reach goal

Pri

vate

Sec

tor

S/L

Go

v’t

Uti

lity

MASS: Reduces

smokestack emissions

RATE: Eligible for ERCs

Industrial Efficiency

Combined Heat and Power

Building Energy Codes

Energy Savings Performance Contracting

City-Led Energy Efficiency Policies & Programs

Utility / Ratepayer-Funded Efficiency Programs

Residential Energy Efficiency (e.g., PACE, low-income)

S/L Gov’t = state or local government

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Industrial Energy Efficiency as an Emission Reduction Approach

Activities EM&V

Energy Savings Approaches

• SEOs, program administrators, industrial end users, ESCOs generate energy savings from: – Training– Energy management– Metering– Technical assistance– Capital improvements

• Third-party verification of savings occurs thru Superior Energy Performance

• Accepted practices for operational and behavioral savings

• Forthcoming resources:

- Uniform Methods Project Protocols for Strategic Energy Management/Superior Energy Performance (Summer 2016)

- Uniform Methods Project Protocols for CHP (Summer 2016)

State Policy Options

• Could include: - Energy efficiency resource

standard (EERS)- Adoption of requirements or

favorable status for ISO50001 certification

Low Income Opportunities

• Possible if facility located in a low income community

Possible Leads

• State Energy Offices (SEOs)

• Utilities / Program Administrators

• Industrial End-Users

• ESCOs

E-Savings

• Metered electricity savings after installing measures or making operational and behavioral changes compared to project start

Variation

Potential Program Components

• Strategic Energy Management (SEM)

• ISO50001

• Superior Energy Performance (SEP)

Potential Energy Savings162 million MWh in 2030

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City-Led Efficiency as an Emission Reduction Approach

Activities EM&V

Energy Savings Approaches

• City offices, utility, or community-based organizations generate energy savings from: – Training, outreach, enforcement

of building efficiency policies– Outreach and technical assistance

for voluntary programs– Incentives to install energy

upgrades to municipal buildings, water / wastewater treatment facilities, streetlights

• Recent resources provide guidance,including:

- DOE Benchmarking & Transparency Policy and Program Impact Evaluation Handbook

- Assessment of Automated Measurement and Verification (M&V) Methods

- Federal Energy Management Program M&V Guidelines Version 4

State Policy Options

• Could include: - Enable cities to implement PACE- Require utilities to provide energy

data access for benchmarking- Create state-led city programming

(e.g., MA Green Communities)

Low Income Opportunities

• Building energy efficiency programs in low income neighborhoods

Possible Leads

• City energy or sustainability office

• City general services office

• Municipal utility

• Community-based organizations

E-Savings

• Aggregate city-wide (municipal, industrial, commercial, residential) electricity savings compared to starting year consumption

Notes

Potential Program Components

• Building performance policies

• Voluntary challenges

• Commercial PACE

• Municipal building efficiency

• Water /Wastewater Treatment Facilities

• Streetlight upgrades

Potential Energy Savings54.5 million MWh in 2030

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DOE Provides Support for Clean Energy Planning & Implementation

Based on inquiry and resources available, technical assistance can include…

8

Existing Resources Launching New Projects

Partnerships / Initiatives

Share opportunities

to join or leverage work from existing

facilitated efforts

Published Resources

Provide resources or links

to toolkits, guides, webinars, data, and other

technical materials

Expand Efforts Underway

Add new info, cases, or

partners to existing

projects to address a request

DOE Expert ConsultationsProvide access

to DOE and Lab staff for consultation

and/or analytical assistance

Direct FundingProvide funding

through DOE funding

announcem’ts(e.g., SEP

competitive, SunShot)

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Wide Range of DOE Existing Resources & Partnerships Available

TypicalLead

Savings PathwaysExample Best

Practice Programs, Policies, EM&V

Pri

vate

Se

cto

r

S/L

Go

v’t

Uti

lity

Industrial EfficiencySuperior Energy

Performance

Combined Heat and PowerCHP Technical Assistance

Partnerships

Building Energy CodesBuilding Energy Codes

Analyses of Savings

Energy Savings Performance ContractingBetter Buildings ESPC

Accelerator

City-Led Energy Efficiency Policies & Programs Better Buildings Challenge

Utility Savings Targets / Ratepayer-Funded EfficiencyPrograms

State and Local Energy Efficiency Action Network

Residential Energy Efficiency (e.g., PACE, low-income)Home Performance with

ENERGY STAR

S/L Gov’t = state or local government

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Easy Way to Access Technical Assistance

10

ENERGY.GOV/TA

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Appendix:

DOE Technical Assistance & Resources Available

By Sector

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Industrial Sector Resources

TypicalLeads

Savings Pathways Direct Technical Assistance

• Private Sector

• State / Local

• Utilities

Industrial Efficiency• Superior Energy Performance• Better Buildings Better Plants• Industrial Assessment Centers

Combined Heat and Power• CHP Technical Assistance

Partnerships

Best Practice Programs, Policies, EM&V • Industrial Energy Efficiency: Designing Effective State Programs for the Industrial Sector• Superior Energy Performance (SEP) Guide for the Development of Energy Efficiency Program

Plans (NEW)• SEP Cost Effectiveness Screening Tool (NEW)• SEP Program Planning Template (NEW) Forthcoming• SEP Program Transition Tables (Fall 2015) Uniform Methods Project Protocols for Strategic Energy Management/Super Energy

Performance (Summer 2016) Uniform Methods Project Protocols for CHP (Summer 2016)

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Commercial / MUSH / Government Sector Resources

TypicalLeads

Savings Pathways Direct Technical Assistance

• State / Local

• Utilities

Building Energy Codes • Building Energy Codes Program

Energy Savings Performance Contracting • Better Buildings ESPC Accelerator

City-Led Building Efficiency Policies / Programs • Better Buildings Challenge

Utility Savings Targets and Ratepayer-Funded Efficiency Programs

• Better Buildings Alliances• State Energy Program

Combined Heat and Power• CHP Technical Assistance

Partnerships

Documentation of Best Practice Programs, Policies, EM&V • State and Local Solution Center • Benchmarking and Disclosure: State and Local Policy Design Guide and Sample Policy

Language• New York City Benchmarking and Transparency Policy Impact Evaluation Report DOE Benchmarking & Transparency Policy and Program Impact Evaluation Handbook Assessment of Automated Measurement and Verification (M&V) Methods FEMP M&V Guidelines Version 4

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Residential Sector Resources

TypicalLeads

Savings Pathways Direct Technical Assistance

• State / Local

• Utilities

Building Energy Codes • Building Energy Codes Program

Residential Energy Efficiency (e.g., PACE, low-income)

• Zero Energy Ready Homes• Better Buildings Residential Network • Home Performance with ENERGY

STAR • Home Energy Score• Weatherization Assistance Program

Utility Savings Targets and Ratepayer-Funded Efficiency Programs

Documentation of Best Practice Programs, Policies, EM&V

• Building America Solution Center, Better Buildings Residential Program Solution Center

• SEE Action Policy Makers’ Guide to Home Energy Upgrades (NEW)

Achieving Energy Savings and Emission Reductions from Building Energy Codes: A Primer for State Planning

Savings and Cost Analysis for Zero Energy Ready Homes

EM&V of Residential Behavior-Based EE Programs Guide

Home Energy Upgrade Program Cost-Effectiveness Screening Tool

Forthcoming

Cost/Benefit Report on Home Upgrade Program Models (Spring 2016)

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Cross-Cutting Resources

TypicalLeads

Topics Direct Technical Assistance

• State / Local

• Utilities

State Energy Planning• State Energy Program (formula &

competitive, next slide) • EERE Technical Assistance Program

Evaluation, Measurement & Verification

Financing (on bill, PACE)

Documentation of Best Practice Programs, Policies, EM&V

• State and Local Solution Center

Uniform Methods Project

Energy Efficiency Program Impact Evaluation Guide

Energy Efficiency Under Alternative Carbon Policies: Incentives, Measurement, and Interregional Effects

Forthcoming

• SEE Action Guide: Energy Efficiency as a Least-Cost Strategy to Reduce Greenhouse Gas Emissions and Meet Energy Needs in the Power Sector (November 2015)

• 2015 Energy Efficiency Financing Snapshot: A Market Review and Guide for State and Local Governments (December 2015)

• Evaluator Certification (2016)

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Relevant State Energy Program Competitive Awards

FY15 – EM&V Related Projects Tennessee (GA, MI, MN, OR, PA)

– Roadmap with pathways for voluntary

national energy efficiency registry

Missouri– Develop a statewide Technical Reference

Manual and a vision for EM&V 2.0

FY14 – EM&V Related Projects Virginia (KY and GA)

– Develop a methodology to calculate and

track carbon emissions reductions from

non-ratepayer funded ESPCs

Kentucky – Create an EM&V framework for tracking

and verifying carbon emissions reductions achieved through EE

South Carolina (NC)– Coordinated model for measuring,

tracking and verifying EE and RE energy savings

FY15 – Clean Energy Planning• Maine

– Energy Planning Roadmap project to meet the

2015 GEO Comprehensive Energy Plan

• Virginia– Collaboration on energy efficiency to meet the

Governor’s energy savings goal of 10% by 2020

• Minnesota– Twin Cities Regional Climate Collaborative

Project

FY14 – Clean Energy Planning• Idaho (CA, CO, MT, NV, OR, UT, WA)

– Framework for comprehensive planning across Western Interconnection

• Illinois– Identify EE and RE potential as compared to

expected coal plant retirements in Midwest

• Minnesota– Achieve 80-100% clean energy by 2030 and 2050

• Michigan– Utility business model focus