Title ABC

1
Building Energy Efficiency Program Portfolio
Development Presented to NJ Energy Master Plan
Energy Efficiency Stakeholders By Susan
Coakley, Executive Director Northeast Energy
Efficiency Partnerships (NEEP) December 13,
2007
2
Overview

• About NEEP
• A Historical Perspective of Efficiency in the
  Northeast
• Emerging Trends and Issues
• Strategies to Procure All Cost-Effective
  Efficiency
• NJ Program Portfolio Development Process
• Opportunities for Stakeholder Input

3
Northeast Energy Efficiency Partnerships

• Facilitating partnerships to advance the
  efficient use of energy in homes, buildings and
  industry.
• Regional non-profit organization since 1996.
• Serving New England, New York and Mid-Atlantic
  states
• Our mission To promote the efficient use of
  energy in homes, buildings and industry in the
  Northeast U.S. through regionally coordinated
  programs and policies that increase the use of
  products, services and practices that achieve a
  cleaner, more reliable and affordable energy
  system.

4
A Brief Northeast History of Efficiency

• The Past Energy efficiency based on resource
  acquisition 1985-1995
• The Present Efficiency as a public benefit
  program 1995 2007 in most states
• Since 2006 Renewed interest in efficiency as a
  resource potential to double-triple savings to
• Reduce carbon emissions
• Meet capacity needs
• Reduce energy costs

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Annual Ratepayer Efficiency Funding

• Historical High
• 900 million plus 1994
• New England New Jersey New York
• Post Industry Restructuring
• 450 million 1997
• 623 million plus 2007
• New England New Jersey New York
• Future
• On track to exceed 1.5 billion/year!

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Efficiency Impact 1995 Present Lowered energy
growth kept at 1.5 per year
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Emerging Trends and Issues

• Policy Efficiency as the most cost-effective,
  readily available resource to meet multiple
  policy objectives
• Power System Reliability
• ISO New England Forward Capacity Market ? DSM
  resources
• FERC order to PJM to integrate energy efficiency
  into the RPM
• Increased Short-term demand response programs
  RTOs
• Geographically targeted efficiency ? TD
  constraints - VT, CT, NY
• PSEG procurement of energy efficient TD
  equipment
• Environmental
• RGGI 100 consumer allocation of allowance
  revenues
• State Climate Change Policies efficiency as top
  priority
• NJ Master Plan Goal 20 savings by 2020
• NY 15 Challenge 15 savings by 2015
• New England Governors/Eastern Canadian Premiers -
  
• Energy Affordability
• Procure all cost-effective energy efficiency
  CT, RI, ME, MA, VT
• More gas efficiency programs
• State appliance efficiency standards

8
Emerging Trends and Issues

• Program/Technology Increasing savings
• Program Ramp-up to Increase Resource Acquisition
• Increasing Discretionary Retrofit as budgets
  increase
• Infrastructure development to increase capacities
• Statewide programs with Regional Coordination
• Consistent programs, requirements, joint
  marketing, co-branding
• Co-promotions with manufacturers, distributors
  and retailers
• Community-Based Program Strategies VT, MA, NY
• Increased focus on Whole Building Solutions
• Home Energy Performance
• Northeast Collaborative for High Performance
  Schools
• LEED, Advanced Buildings, ASHRAE 189
• NetZero Energy Homes and Buildings
• New Technologies/Big Opportunities
• ENERGY STAR electronics (telephony, TVs, VCRs,
  external power supplies)
• Ductless mini-split air conditioning
• Solid State Lighting (still emerging)

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Procure All Cost-Effective Efficiency

• The Policy Framework
• Statewide planning
• Goals Procure all cost-effective efficiency
• Statewide multi-year goals to address multiple
  objectives
• Continually assess efficiency potential and
  cost-effectiveness
• Address all fuels and coordinate with building
  integrated renewables
• Strategies to achieve aggressive efficiency
  goals
• RD to identify new opportunities
• Voluntary programs state procurement to build
  market adoption
• Market mechanisms to value energy and demand
  savings
• Regulation to lock in market gains (codes and
  standards)
• Stable funding ? cost recovery, decoupling,
  incentives, multi-year budgets
• Coordinated programs policies statewide,
  regionally and nationally
• Evaluation, tracking and reporting
• Address multiple policy objectives (energy,
  environment, economic)
• Consistent protocols to participate in regional
  markets

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Procure All Cost-Effective Efficiency

• The Program Framework
• Statewide programs designed to
• Maximize net benefits
• Minimize lost opportunities
• Address all market sectors
• Overcome market barriers by market sector
  targeted information, technical assistance and
  incentives
• Achieve long-term impacts market transformation
• Leverage resources and engage market
  participation
• Coordinate with related public policies
  building codes, standards, tax incentives, state
  procurement policies
• Flexible program implementation ? respond to
  developments
• Evaluation and data collection ? embedded in
  program implementation

11
Program Design Evolution to Increase Cost
Effectiveness

• First Generation
• Information and loans, e.g., Audit programs
• Cheap but not cost-effective low savings!
• Second Generation
• Rebates and performance contracting
• Focus on retrofit ? pay full avoided cost
• Cost-effective savings but not cheap!
• Third Generation
• Strategic market interventions overcome market
  barriers incentives, tech assistance, target
  marketing
• Priority to new construction and equipment
  replacement
• Discretionary retrofit
• Near-term savings and long-term market
  transformation
• Tie to regulations building energy codes and
  standard
• Cost-effective, cheap, long lasting!

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Next Generation Energy Efficiency

• Ramp-up to Meet Aggressive Efficiency Goals
• Wider and deeper building energy efficiency
• More participants
• More savings per building and transaction
• More and new technologies
• New programs all market sectors
• New strategies and partners
• New market mechanisms resource acquistion

13

Next Generation Energy Efficiency

• Elements
• New Construction target net zero energy
  buildings
• Equipment purchase and replacement
  comprehensive high efficiency, right sized,
  controls to maintain high performance
• Retrofit comprehensive, customized services ?
  customer focused
• Integrated strategies
• Whole house/whole building all end uses
• All fuels
• All technologies - demand response, distributed
  generation, building integrated renewables
• Performance based results oriented

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Next Generation Energy Efficiency

• Elements
• Move Upstream
• Engage retailers, manufacturers, distributors as
  partners
• Engage franchise, multiple property owners and
  managers
• Complementary Public Policies
• Regular updates to building energy codes,
  appliance strategies
• Building labeling requirements
• Tax incentives state and federal to leverage
  big shifts
• Integration with state and local procurement and
  construction requirements

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Market Transformation for High Efficiency Clothes
Washers In New England
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Next Generation Energy Efficiency

• Elements
• Increase customer awareness and participation
• More and better controls
• Instantaneous energy use information
• Increased energy labeling buildings and
  products
• Community Partnerships
• Engage community leadership to motivate the
  public
• Community energy planning all facilities
• Community challenges and special promotions
• Build Infrastructure
• Ready access to high efficiency products and
  services
• Professional development
• Workforce training and certification

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Procure All Cost-Effective Efficiency

• The Evaluation Framework
• Research and Evaluation Plan set requirements
  up-front to address multiple policy and program
  objectives
• Track impacts energy, carbon, capacity, dollars
  
• Award performance incentives
• Data methods and schedules identified upfront
• Program baselines established (cooperative,
  regional studies)
• Consistent protocols and inputs state
  regional coordination
• Process evaluation to guide program effectiveness
  identify mid-course corrections
• Impact evaluation - to verify savings estimates
• Tracking and reporting - Consistent statewide
  protocols, integrated processes

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Procure All Cost-Effective Efficiency

• Program Administration and Oversight
• Many models
• One statewide efficiency administrator VT, ME,
  RI, NJ
• Coordinated/collaborative administration MA,
  CT, NH
• Issues/Needs
• Arms length regulatory oversight
• Focus on performance, results vs. program detail
• Performance metrics that address near-term and
  long-term goals
• Access to customer data ?marketing, tracking
• Addressing multiple fuels electric, gas, oil
  to provide integrated service and solutions
• Coordination with renewable energy programs
• Coordination with other state agency programs

19

NJ Energy Master Plan Efficiency Program
Portfolio Project
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NJ Master Plan Efficiency Program Portfolio
Project

• Purpose
• Achieve the 2020 Master Plan energy savings goal
  cost-effectively and expeditiously
• Develop a best in class program portfolio to
  overcome market barriers to cost-effective energy
  efficiency
• Address all customer sectors
• Build on experience of successful programs in New
  Jersey as well as other states and regions

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NJ Master Plan Efficiency Program Portfolio
Project

• Approach
• NEEP lead team of national experts to develop a
  best in class program portfolio to overcome
  market barriers to cost-effective energy
  efficiency
• Address all customer sectors, all fuels, all
  demand-side resources
• Build on experience of successful programs in New
  Jersey as well as other states and regions
• Stakeholders input to guide development - provide
  data and perspective
• Build stakeholder support for the recommended
  program portfolio throughout process

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NJ Master Plan Efficiency Program Portfolio
Project

• Portfolio Elements
• Residential Strategies
• Commercial Building Strategies
• Institutional Strategies
• Industrial Facility Strategies
• Municipal Strategies
• Strategies for Plug-in Electronics
• Community Partnerships

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NJ Master Plan Efficiency Program Portfolio
Project

• Development Process (preliminary)
• Phase I Program Development
• Characterize customer sectors to be served
• Establish program development criteria
• Develop cost-effectiveness assessment methods and
  inputs
• Review current NJ programs, identify gaps
• Identify successful models NJ and elsewhere to
  address gaps
• Establish program development priorities
• Develop statewide comprehensive portfolio of NJ
  program strategies with four-year goals and
  budgets for all customer sectors
• Project overall program impacts savings,
  participants and cost-effectiveness
• Establish research, evaluation, tracking and
  reporting and implementation recommendations
• Phase II Infrastructure Development
• Assess job impacts recommend workforce
  development priorities

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NJ Master Plan Efficiency Program Portfolio
Project

• Deliverables and Schedule (preliminary)
• Interim Reports
• Interim Report 1 Market Characterization,
  Development Criteria, Cost-Effectiveness
  January?
• Interim Report 2 Gap Analysis and
  Program/Strategy Development Priorities
  February?
• Interim Report 3 - Program Portfolio
  Recommendations with Impacts and Research,
  Evaluation, Tracking, Reporting Recommendations
  April?
• Final Report
• Executive Summary of Findings and Recommendations
  with appendices May?

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NJ Master Plan Efficiency Program Portfolio
Project

• Stakeholder Input
• Use meetings of the NJ Energy Master Plan Energy
  Efficiency Committee to solicit input from
  stakeholders on particular topics
• Review notes and materials from previous NJ BPU
  efficiency forums to inform program development
• Conduct targeted outreach to stakeholders to get
  input and guide development
• Circulate draft materials for comment and input

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NJ Master Plan Efficiency Program Portfolio
Project

• Project Team
• Susan Coakley Project Manager
• Philippe Dunsky Portfolio Manager
• Chris Neme - Residential
• Doug Baston Commercial, Industrial, Municipal
• Carter Wall - Institutional
• Jonathan Livingston Plug-in Electronics
• Bob Obeiter, Michael Ambrosio Research,
  Evaluation
• Blair Hamilton Community Partnerships
• Others to be confirmed

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Stakeholder Questions Today

• Criteria to Guide Program and Portfolio
  Development
• Information Resources
• Project Development Comments and Suggestions
• Policy Framework to Implement Program Portfolio
  Questions and Issues to Address

28
Thank You

•  

Susan Coakley Executive Director 781-860-9177,
ext. 12 scoakley_at_neep.org www.neep.org