Public Comment Webinar #2

May 11, 2017

1:00 pm – 2:30 pm EST

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2

Agenda

Welcome & Introductions

Overview of NEER Project

Introduction to the Draft Principles and

Operating Rules

How to Submit Comments

Q&A

3

WELCOME & INTRODUCTIONS

4

Today’s Presenters

5

Michelle Zilinskas

Verification Associate

The Climate Registry

(213) 542-0283

mzilinskas@theclimteregistry.org

Pat Stanton

Director of National Policy

E4TheFuture

(508) 740-2836

pstanton@e4thefuture.org

Audrey Bragg

Senior Policy Analyst

E4TheFuture

(774) 777-5121 ext. 106

abragg@e4thefuture.org

Peggy Kellen

Director of Policy

The Climate Registry

(213) 542-0291

pkellen@theclimateregistry.org

Ryan Cassutt

Program Associate, Government Services

The Climate Registry

(213) 891-6931

rcassutt@theclimateregistry.org

Webinar Objectives

Provide an overview of the NEER project and

activities to date

Introduce the Draft NEER Principles and

Operating Rules

Point out key questions for the public

comment period

Describe opportunities for providing

comments

Answer your questions

6

THE NEER PROJECT

7

Are you familiar with the NEER project?

Yes

No

8

Poll Question: #1

Are you familiar with the Renewable Energy

Certificates (RECs) Registries? (i.e., M-RETs,

PJM, MIRECs)

Yes

No

9

Poll Question: #2

The NEER is a web-based platform that will:

Document achievement of energy and environmental

goals,

Disclose compliance activities, and

Drive voluntary investment in energy efficiency and

conservation.

It will accomplish this by:

documenting verification of energy efficiency projects,

facilitating the opportunity for energy efficiency

instrument trading, and,

demonstrating the credibility of energy efficiency as an

eligible resource.

About the NEER

10

NEER = Tool (Not a Policy)

Document

management

Workflow

documentation

Transaction

accounting

Compliance Reporting

11

Principles and operating rules +

roadmap for states

Sector-specific protocol database for states and programs

Software functional requirements

Software launch and administration

NEER

NEER Development Elements

12

NEER Project Team

State project partners:

13

NEER Project Team

Supporting project partners:

Additional project support provided by:

14

Operating Rules and

Roadmap Timeline

Timeframe Task

March – April 2016Formation of Multi-stakeholder Working Group

& Steering/Advisory Committee

April 2016 – February 2017Multi-stakeholder Working Group to draft

NEER Principles and Operating Rules

April – May 2017Public comment period for draft NEER

Principles and Operating Rules

September 2017Final roadmap for state adoption and

implementation

October 2017 Key functional platform requirements

15

Composed of 147 members

Ensures draft Principles and Operating Rules

meet the needs of all stakeholders

Makes recommendations to

Steering/Advisory Committee

Multi-stakeholder Working

Group

16

Issue-specific Sub-Groups

1. NEER Enhanced QA/QC Protocol

2. Data Fields

3. Applications

4. Attestations and Public Notice

5. Accreditation of Independent Verifiers

17

Steering/Advisory Committee

Representatives from ~ 16 organizations

Supports the identification and resolution of

governance and design barriers

Contributes to work products

Provides technical input

Makes recommendations to the Project

Team

18

INTRODUCTION TO THE DRAFT

NEER PRINCIPLES AND

OPERATING RULES

19

Are you familiar with the Common Application

for college?

Yes

No

20

Poll Question: #3

Common platform – win/win for colleges and applicants

Colleges retain decision authority

21

1. Table of Contents

2. Overview

3. Principles

4. Definitions and Abbreviations

5. Accounts

6. Assets

7. Asset Output, Dynamic Data

Reporting, Verification

and Certification

8. Instrument Transactions

9. Reports

10. Data Security

11. Dispute Resolution

12. Appendixes

Organization of Draft Rules

22

1. Table of Contents

2. Overview

3. Principles

4. Definitions and Abbreviations

5. Accounts

6. Assets

7. Asset Output, Dynamic Data

Reporting, Verification

and Certification

8. Instrument Transactions

9. Reports

10. Data Security

11. Dispute Resolution

12. Appendixes

Administrative Sections

23

4.1 Terms of Use

4.2 QRE Guidelines

4.3 NEER Governance Charter

5.1.1.1 Account Application

5.1.2.2 Retirement Designation List

5.3.1 (a) AAR/Alternate-AAR Application

5.3.1 (b) AAR/Alternate-AAR Application Modification

5.3.2 NEER User Guide

5.3.5 Privacy Policy

5.4 NEER Fee Schedule Guidelines

6.1.1.2 (a) Static Data QA/QC Module Guidelines

6.1.1.2 (b) NEER EM&V Minimum Requirements

6.2 Reasons for Asset Termination

6.3 Change of Ownership Application

6.4 Guidance for Aggregation of EE Projects

Administrative Sections

24

6.5.1 Asset Application

6.5.1.2 (a) NEER Attestation of NEER Exclusivity

6.5.1.2 (b) Attestation Disclosure Process

6.5.1.3 NEER Attestation of Ownership

6.5.1.5 SCCP Asset Application Addendum

7.1 NEER Asset Output Log Data Fields

7.2 (a) Asset Output Dynamic Data Application

7.2 (b) Dynamic Data QA/QC Module Guidelines

8.1 NEER Serial Number Formats

8.1.4 Instrument Data Fields

8.6 Compatible Registries

8.6.1 Specific Tracking System Requirements

10 Data Security Measures

11 EM&V Guidance

Administrative Sections

25

The NEER Framework

26

Provider Account

EE ProjectAsset

Output

CertificatesTransaction

TrackingRetirement

NEER Account Structure

Account

Asset

Retired Instruments

Output Log

Active

Instruments

Commoditization

and Trading

Registration

and

reporting

27

Energy Efficiency

Registration & Reporting is

COMPLICATED Inspection of installation

Prove ownership

Prove no double counting

EM&V Plans

EM&V Studies

Technical Reference

Manuals

Third Party Verification

28

NEER Value Added:

a Digital Platform

“Off the Shelf”

standard elements of

EE Project registration

& reporting

Customization to

meet a

Jurisdiction’s

individual needs

29

QA/QC PROTOCOLS

30

What are QA/QC Protocols?

QA/QC Protocols are a set of procedures that

the EE Provider and Project (Asset) must go

through to complete registration of reported

energy savings (Asset Output) or receive

Instruments.

31

Measure to Fit the Task

32

Measuring Energy Efficiency

to Fit the Task

Savings projections based on modeling for use in consumer education

Estimated EE savings for report based on deemed savings for a ratepayer-funded program annual report

Guaranteed savings for a Performance Contract

Third-Party Verified savings for commoditization into tradable certificates

Qualification to bid into and get paid based on a Forward Capacity Auction

Demonstrate compliance with Clean Air Act requirement

33

Full Disclosure of Measurement

Methodology

34

QA/QC Framework

Who is authorized to submit, review and

approve different documents

What documents need to be submitted

Where documents are archived

When have all the steps been completed

and all parties agree the quantity savings

number is acceptable

35

NEER QA/QC Protocol:

Define the field

NEER Enhanced

QA/QC

NEER Basic

QA/QC

VerificationSelf-

Report

Accredited

Independent

Verifier

Elig

ibilit

y &

EM

&V

Sta

nd

ard

EPA

Model

36

Plain Cheese Pizza

NEER BASIC

Self-reported data

No M&V report or

third-party verification

of Dynamic Data

Full disclosure that EE

data is self-reported

No Instruments

created

37

House Special Pizza

NEER Enhanced

Self-reported data

Requires M&V report

Accredited

Independent

Verification of Static

and Dynamic Data

Minimum EM&V

requirements

Instruments created

38

Brand Potential

NEER Enhanced QA/QC

NEER Basic

QA/QC

39

“Build your own pizza”

SCCP Addendum

Allows deference to

regulators to customize

requirements

Provides document

management and

execution of protocols by

having most commonly

used administrative steps

ready for plug and play

40

QA/QC Protocol Options

“Off the Shelf”

NEER Basic: minimum standard

designed to support voluntary disclosure

NEER Enhanced: designed to support

regulatory quality evaluation,

measurement and verification

Customized

Specific Compliance/Certification

Program (SCCP): fully customizable

requirements41

Interoperability

National Renewable Energy Facility (NREF)

supports imports and exports between

registries

Process includes continuous automated

reconciliation – limited operational support

needed

Transferred must be approved by recipient

before it becomes final

Each registry has different rules for what can be

imported and what data has to be transferred

42

Reports: Account Holders

General and Asset-only Accounts

EE Providers

Business Confidential Reports for Client

Jurisdictions

43

Reports: Public

NEER-AH Report

Instruments

Imported Projects

Created Instruments

NEER Projects Report

44

Reports: Customizable

Michigan’s PA342 requires utilities to submit

annual reports

MI Template

Could design reporting template to meet PA 342

requirements

NEER data can be automatically aggregated

annually

45

NEER Governance Structure

Board of Directors

Outreach & Development

Strategic Guidance

Finance &

AuditOperations Accreditation

NEER Exec

Director

46

KEY QUESTIONS FOR PUBLIC

COMMENT

47

Key Questions

1. NEER Enhanced QA/QC for Voluntary

Markets (Sections 6.1.1.2 and 7.2)

Does the NEER Enhanced QA/QC Protocol

represent a useful standard to create

Instruments that will be sufficiently credible for

use in voluntary markets without being cost

prohibitive? If not, what should be adjusted?

2. Reports (Section 9)

What reports generated by NEER would be

beneficial for states, the public and/or private

entities?48

Key Questions

3. Business Confidential Information (Appendix

4.1, Section 14b)

The NEER’s Terms of Use stipulate that the

following information is confidential:

• Asset Output (energy savings);

• Asset street address;

• Number of Instruments in accounts; and

• The amount and timing of Instrument transfers.

Does this sufficiently cover data that should qualify

as business confidential information? If not, what

should be amended?49

Key Questions

4. NEER Governance Advisory Board

(Appendix 4.3)

Should an advisory board be added to the

governance structure either in place of the

current Strategic Guidance Committee or in

addition to it in order to provide a mechanism

for market actors to help identify opportunities

and risks for the organization? If yes, which

approach would be preferable and who should

be able to participate?

50

Key Questions

5. Voluntary Instrument Retirement

(Appendix 5.1.2.2)

When retiring Instruments for compliance or

voluntary purposes, NEER users must select the

Instruments that are to be retired and indicate

the primary reason for the retirement. Which

potential reasons for voluntarily Instrument

retirement should be included on the NEER’s

retirement designation list?

51

Key Questions

6. Avoided Emissions Quantification

Standard(s) (Appendix 6.1.1.2 (a) and

6.5.1)

Currently, due to a lack of a clear consensus

methodology, NEER Basic and NEER Enhanced

do not provide a way to quantify avoided

emissions associated with avoided or saved

energy. What, if any, avoided emissions

quantification standards should be recognized

by NEER Basic and Enhanced?

52

Key Questions

7. EM&V Guidance for Water Conservation

Projects (Appendix 6.1.1.2(b) and 11)

What resources are available for water

conservation EM&V that NEER could reference

to support the NEER Enhanced QA/QC

Protocol’s use for water conservation projects?

53

HOW TO COMMENT

54

How to Comment

Log into the document through Collaborase

Complete the public comment template

and submit to eduff@e4TheFuture.org

Respond to online key question survey

A PDF of the draft can be downloaded here

Comments due on

Wednesday May 31, 201755

Collaborase

Online software tool for review and feedback

To get started:

Submit email at: www.collaborase.com/neer

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56

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57

QUESTIONS AND DISCUSSION

58

Thank you

Acknowledgement: This material is based upon work supported by the Department of Energy, Office of Energy

Efficiency and Renewable Energy (EERE), under Award Number DE-EE0007219, CFDA No. 81.119.59