California HVAC Strategic Plan

1
California HVAC Strategic Plan

• Presentation of Draft Strategic Plan to Reduce
  PeakEnergy Usage from Residential Air
  Conditioners
• December 17, 2007
• Sacramento, CA

CEC, CPUC, SCE, PGE, SCG, SDGE, Industry
Stakeholders
2
Todays Agenda

• 1000 -1015 Background and Purpose of the
  Report
• 1015 -1045 PowerPoint Presentation of the Draft
  Report
• 1045 -1200 Public Comment on Draft Report
• Lunch
• 100 - 130 Power Point Presentation of
  Responsible Parties, Strategies, and Proposed
  Timing
• 130 - 300 Public Comment on Proposed Schedule
• 300 Adjourn

3
HVAC Report Background

• Develop strategies to reduce the energy and peak
  use associated with the design, selection,
  installation, and maintenance of HVAC systems
• CEC AB 2021
• IOUs CPUC Decision 07-10-032

4
HVAC Report Background

• CEC/CPUC worked with over 40 industry
  stakeholders to develop these draft strategies
• CEC report to the Legislature Jan 2008
• Report will provide the CPUC and its utilities
  guidance for their 2009-2020 draft strategic
  plan Feb 2007

5
An HVAC Market Vision
Smart End Users understand the value of comfort,
reliability, life cycle costs, and energy
efficiency, and require Smart Contractors to
quality install and maintain high efficiency and
load reducing HVAC solutions continuously
innovated by Smart Manufacturers.
6
The HVAC Market
Contractors
Manufacturers Distributors
Customers
7
Customers

• Customers do not yet value energy efficiency,
  load reduction, and lifecycle costs

• HVAC systems are purchased on low first cost
• HVAC systems are often not properly sized
• Customers assume that their unit is being
  installed properly, but installation quality is
  often poor

8
Contractors

• Contractors do not sell energy efficiency,
  quality installation, load reduction, and
  lifecycle costs

• Competitive business model driven by low first
  cost
• Lack of trained technicians and contractors
• Installation quality is often poor for new or
  replacement systems
• Over 90 of HVAC installations are not permitted
  nor have been inspected

9
Manufacturers Distributors

• Manufacturers are not developing high efficiency
  equipment and not requiring quality installation
• HVAC parameters are not optimized for
  Southwestern climates
• National standards set to 82F mild and humid
  climates
• Efficiency performance degrades as ambient
  temperatures increase
• Development of next generation High Efficiency
  HVAC systems is slow

10
The Solution
Public and Private Utilities
HVAC Contractors
Manufacturers Distributors
State, and Federal Regulators and Agencies
Academia and RD
End Users
Trade Associations and Labor
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The Solution

• Success requires close collaboration among
  stakeholders in developing and implementing sound
  strategies
• Progress requires a commitment of long-term
  funding
• Reaching the vision requires leadership at the
  highest levels within California and the region

12
High Level Goals for the HVAC Market

• Goal 1 Increase Quality Installation and
  Maintenance
• Increase quality of installation and maintenance
  of Central A/C Systems to achieve additional
  energy and peak savings.
• Goal 2 - Accelerate Market Penetration of New
  Equipment Technologies
• Accelerate market penetration of new equipment
  technologies that are more energy and peak
  efficient than existing equipment, and perform
  better in hot/dry SW climates.

13
High Level Goals for the HVAC Market

• Goal 1 Increase Quality Installation and
  Maintenance
• Increase quality of installation and maintenance
  of Central A/C Systems to achieve additional
  energy and peak savings.
• Goal 2 - Accelerate Market Penetration of New
  Equipment Technologies
• Accelerate market penetration of new equipment
  technologies that are more energy and peak
  efficient than existing equipment, and perform
  better in hot/dry SW climates.

14
Increase Quality Installation and Maintenance

• Proposed Strategy
• Stimulate customer demand for quality
  installation and maintenance
• Proposed Actions
• Create or leverage a statewide education/marketing
  organization
• Launch a statewide customer education campaign
• Establish a quality/comfort brand and attach to
  all HVAC installations certified by a third-party
  as Quality Installed

15
Increase Quality Installation and Maintenance

• Proposed Strategy
• Increase Title 24 compliance
• Proposed Actions
• California Executive-level task force to address
  HVAC licensing, compliance, and market equity
  issues
• Educating customers, contractors and inspectors
  on the importance of complying with Title 24
• Streamlining the planning, permit, and inspection
  process
• Addressing CSLB licensing and enforcement
• Require verification of QI installation upon sale
  of new or existing homes

16
Increase Quality Installation and Maintenance

• Proposed Strategy
• Increase Title 24 compliance (cont.)
• Proposed Actions
• Create a California HVAC Industry Collaborative
  to address HVAC recruitment, education, and
  career issues
• Create a rating system to identify quality
  contractors
• Establish a progressive green collar
  career/certification path for HVAC technicians
• Enhance industry and vocational school curriculum
  by integrating QI methods/practices into course
  offerings
• Develop a technician recognition program for
  verified quality work

17
Increase Quality Installation and Maintenance

• Proposed Strategy
• Require contractors to install systems per
  ACCA/ANSI QI specifications
• Proposed Actions
• California adopts ACCA/ANSI HVAC QI Specification
  as a standard
• Incorporate QI in technician training
• CSLB testing and recertification

18
Increase Quality Installation and Maintenance

• Proposed Strategy
• Provide customers and contractors with system
  performance and fault detection feedback
• Proposed Actions
• California HVAC Industry Collaborative to address
  HVAC open diagnostics and interconnection
  protocol standards
• Establish an open-protocol system allowing
  contractors to download systems diagnostics and
  servicing information
• Provide interconnection point for utility load
  reduction and demand response

19
Increase Quality Installation and Maintenance

• Proposed Strategy
• Provide customers and contractors with system
  performance and fault detection feedback (cont.)
• Proposed Actions
• Stimulate RD in on-board diagnostics
• Stimulate market development of thermostat
  display providing customers with real time
  performance and maintenance information

20
High Level Goals for the HVAC Market

• Goal 1 Increase Quality Installation and
  Maintenance
• Increase quality of installation and maintenance
  of Central A/C Systems to achieve additional
  energy and peak savings.
• Goal 2 - Accelerate Market Penetration of New
  Equipment Technologies
• Accelerate market penetration of new equipment
  technologies that are more energy and peak
  efficient than existing equipment, and perform
  better in hot/dry SW climates.

21
Accelerate Market Penetration of New Equipment
Technologies

• Proposed Strategy
• New Efficiency Metrics
• Proposed Actions
• Executive-level task force establishes a new
  efficiency metric for residential and
  non-residential air conditioning systems that
  appropriately rates performance in hot and dry
  climate zones

22
Accelerate Market Penetration of New Equipment
Technologies

• Proposed Strategy
• Expedite Research and Development
• Encourage Whole-house Design
• Air Conditioning Solar Integration
• Address Current Load-related Design Flaws
• Proposed Actions
• Executive-level Task force to coordinate, fund,
  and fast track cooling research, incubation, and
  development

23
Accelerate Market Penetration of New Equipment
Technologies

• Proposed Strategy
• Adopt innovative regulatory policy changes to
  encourage larger-scale market outcomes
• Proposed Actions
• Create a California Executive-level task force to
  identify and implement regulatory changes
  encouraging larger-scale market outcomes

24
Plan Input and Comment

• Are the draft strategies and actions consistent
  with your understanding of the issues and
  priorities?
• Are the proposed strategies complete?
• Are there additional actions recommended?

25
Summary of Potential Energy and Peak Savings
25
26
Proposed Integration of Strategies and Schedules
27
Proposed Integration of Strategies and Schedules
28
Schedule Input and Comment

• Is the proposed timing of the proposed actions
  consistent with your understanding of the issues
  and priorities?
• Where might improvements to the schedule be made?

29
Next Steps

• Comments incorporated into CEC strategic plan
  December 21
• CEC committee approval December 28
• Strategic plan submitted to Legislature January
  16
• Strategic plan submitted to CPUC February 1

30
Thank You

• General Information at www.californiaenergyeffici
  ency.com
• Mike Messenger, CEC mmesseng_at_energy.state.ca.us
  
• Anne Premo, CPUC awp_at_cpuc.ca.gov