The Future Energy Jobs Act - Ameren · 2017-06-09 · United States US Levelized Cost of Saved...

The Future Energy Jobs Act

Will Baker| Midwest Energy Efficiency Alliance

Energy Savings Made Easy | 2017 Business Symposium

MEEA

The Trusted Source on Energy Efficiency

We are a nonprofit membership organization with 160+ members,

including:

»Utilities

»Research institutions and manufacturers

»State and local governments

»Energy efficiency-related businesses

As the key resource and champion for energy

efficiency in the Midwest, MEEA helps a diverse

Range of stakeholders understand and implement

cost-effective energy efficiency strategies that provide

economic and environmental benefits.


Agenda

» Why do energy efficiency?

» What are the main drivers behind energy efficiency?

» Who are the players?

» What is this new law?


The Flavors of Energy Efficiency

Voluntary Residential • Insulation

• LED lighting

•Appliances rebates

•Air sealing

Voluntary Commercial & Industrial • Like Residential, plus

•Building operations and Strategic Energy Management (SEM)

•Process efficiency

•Green building certification

Federal Initiatives •Appliances/equipment standards

•ENERGY STAR labeling

State or Local Initiatives •Building energy codes

•Building data collection (benchmarking)

Regulated Utility Programs •Mandated and voluntary programs for utility

customers


ACEEE State Energy Efficiency Scorecard

The ACEEE Scorecard covers six of the primary policy

areas in which states have historically pursued energy

efficiency:

Utility and public benefit programs

and policies

Transportation policies

Building energy codes

Combined heat and power (CHP)

State government–led initiatives

Appliance and equipment efficiency standards


Midwest State Rankings on 2016 Scorecard

10 22

32

51

42

49

48

15

13

11

42 29

30

Decrease/Increase in score compared with

2015 Scorecard Not necessarily due to reductions in EE; can be due to gains in other states changing relative rankings

4 states in Top 20

5 states in Bottom 10


Long-Term Cost of Electricity Resources

50 77 78

150

218

300

0 32

52 65

165 184

En

erg

y

Effic

ien

cy

Win

d

G

as

Co

mb

ine

d C

yc

le

Co

al

G

as

Pe

ak

ing

So

lar

PV

- R

oo

fto

p

Re

sid

en

tia

l

Midwest

average: 14

Nationwide levelized cost $ per Megawatt-hour, 2015

Source: LBNL 2013; Lazard 2016


Electricity Prices Compared with Cost of EE

10.83

10.33

0

2

4

6

8

10

122

00

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Average retail electric price, Cents per kWh

Illinois

United

States

US Levelized Cost of Saved Energy

(LCSE) Range

Midwest Average

LCSE: 1.4 ¢/kWh

Source: EIA, 2017; LBNL 2013; Lazard 2016


Clean Energy Trust- Midwest Clean Jobs Report


Energy Efficiency Resource Standard (EERS)

» What is an Energy Efficiency Resource Standard?

• Specific, long-term energy savings targets for utilities to meet

through customer energy efficiency

• Usually stated in terms of annual percentage reduction in

customer retail sales

• The strongest EERS requirements exist in MA, RI, and VT - almost

2.5% annual savings*

• Can apply to electric, gas utilities, or both

• Muni/coop applicability varies depending on legislation &

regulatory structures

• As of January 2017, twenty-six states have policies that establish

specific energy savings targets, including Illinois, Iowa, Michigan,

Minnesota, and Ohio*

• Federal EERS have been proposed but have not passed

11

*Source: American Council for an Energy Efficiency Economy (ACEEE): State EERS Policy Brief


Statewide Energy Efficiency Budget - Electricity

$0

.0

$0

.4

$2

.3

$1

3.0

$5

6.2

$6

3.0

$6

4.7

$1

02

.0

$1

37

.9

$1

68

.8

$2

05

.3

$2

44

.6

$4

05

.7

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

KS

ND

SD

NE

KY

WI

MO IN

MN IA MI

OH IL

Millio

ns

2017 Estimate Planned Budgets

*

*Includes interim period as program year

shifts to calendar year starting 2018


Statewide Energy Efficiency Budget – Natural Gas

$0

.0

$0

.0

$0

.0

$1

.1

$1

.3

$7

.4

$1

3.0

$2

7.0

$3

2.3

$4

4.4

$6

1.5

$7

9.5

$1

24

.9

$-

$20

$40

$60

$80

$100

$120

$140

NE

ND KS

KY

SD

MO IN W

I

OH

MN IA MI IL

Millio

ns

2017 Estimate Planned Budget

*

*Includes interim period as program year

shifts to calendar year starting 2018


Who does energy efficiency?

» Commercial, Industrial and Residential End Users

» Utilities

» Federal, state, and local governments

» Public institutions

» Regulators, the Illinois Commerce Commission

» Implementation Contractors

» Evaluators

» Trade Allies

» Advocates

» Retailers and Manufacturers


Terminology

Classes

Sectors

Total Portfolio

All Programs

Residential

Single Family Multifamily

Commercial &

Industrial

Commercial Buildings

Low Income MF

Residential (Units)

MF C&I (Common

Areas)


Typical EE Programs

Residential Programs

Commercial & Industrial Programs

Home Performance with Energy Star

Residential lighting Home energy audit Appliance recycling Multifamily housing HVAC Low income weatherization Educational

Prescriptive incentives for common technologies such as T-8 or T-5 lighting

High efficiency motors and pumps

HVAC equipment Agricultural Commercial refrigeration Programs aimed at specific

market segments (restaurants, big box stores, etc.)


HVAC SAVE

» Quality Installation and

Quality Maintenance

Program for Furnaces and

Central Air Conditioners

» Trained over 2,000k in Iowa

» Illinois pilot


Building Operator Certification Program

» Rebates available

» Focus on Operations &

Maintenance

» Low cost and no-cost measures

» Average savings of $16,000 per

year, per trained operator

» 74 hours of training

» Breakfast and lunch provided

» On-site coordinator to help with

questions

» 5 application projects

» Boccentral.org/


Public Act 0099-0906 aka the Future Energy Jobs Act

» Passed in House and Senate with bipartisan support

» Signed by Governor Rauner on December 7, 2016

» Effective June 1, 2017


What is in the Future Energy Jobs Act?

» New energy efficiency (EE) targets and changes to DSM programs

• MORE MONEY AVAILABLE STATEWIDE FOR INCENTIVES!!!!!

• New savings targets

• Change in plan cycles

• Change in public sector and low-income programs

» Zero emission credit program

» RPS fix

» Illinois Solar For All program


Transitioning DCEO Programs to Utilities

» Utilities responsible for all EE

• EEPS Programs (Section 8-103/8-104)

• Taking over DCEO Programs (income qualified, public buildings, and

market transformation)

− Bridge Period

− Public buildings are minimum of 7% of total budget

− Public housing spending must be equal to the share of public building energy consumption

• IPA Procurement (Section 16-111.5B)


Other Statutory Provisions/Changes

» 4 year DSM Planning Cycles • 2018-2021

• 2022-2025

• 2026-2030

• Used to be 3 year cycles

» Evaluation, measurement, and verification (EM&V) • 3% budget cap on EM&V

• Language supporting use of M&V 2.0 technology:

• “incorporate advanced metering infrastructure data into the planning, implementation and evaluation of energy efficiency measures and programs...”

» EE Installer Certification through the Illinois Commerce Commission

» Bill Impact Cap • ZEC, renewables, and EE programs cannot result in a combined impact of

more than 25 cents/month for residential customers

• If forecasted, utilities must adjust programs


How does this impact your organization?

» Increased funding for Incentives

» More technologies and equipment eligible for incentives

» Program year synced with calendar year

• Aligns with more organizations’ fiscal years

• Ability to coordinate energy efficiency project planning with other capital

projects

• Straightforward dates and deadlines

» Additional resources to assist with projects

» Increase in dedicated staff available for assistance with projects and

project development

Questions?

The Future Energy Jobs Act - Ameren · 2017-06-09 · United States US Levelized Cost of Saved...

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