Nicholas Institute for Environmental Policy Solutions ...
Sector Breakout Summary – 10/26/18 EE WorkshopResidential (Single Family/Multifamily/Low-Income/New Construction)Goal 1: Align Interests to create an EE-conducive climateBenefit AnalysisAlign home builder concerns/wants on ensuring affordability through EE codes with our vision/wants of consumer affordability and benefitsDefine priorities and interests of State Energy Office so that industry can support and participate in their workDefine a shared vision / work plan for how EE and clean energy interests/industries align and work togetherAccount for non-energy benefits and capture $ for these benefits to help low-income EE programsSome benefits are $; some are not. Are we willing to have taxpayers or ratepayers pay for non $ benefits?What “energy” are we talking about? We seem to focus on electricity, but is BTU/person (or some other metric) what we should focus on?Design so ratepayers don’t pay in advance for EE initiatives, and cost growth is zero or minimal relative to incomeWho are the participants and what do they do In or with EE?Identify costs and benefits of parties. How do we address imbalances or where costs > benefits?Regulatory ReformModernize EE cost effectiveness testing to level playing field and define how aligned interests work with utilities and their programsPerformance-based ratemaking for IOUsPublic regulation of co-ops / muni rate structuresImplement rate structures supportive of energy efficiencyDecoupling utility profits from sales of kWh, reward utility for EEDesign EE into future purchases – housing, appliancesRate structure should be based on consumption, not service chargesPrice carbon emissions and use revenue to fund EE low-income housing and upgradesRate design that is fair and equitable and allows for more EEDevelop 3rd party independent EE – utility has conflict of interest and may collect funding with a bill charge but it is unrealistic to expect they will be alignedIndependent EE provider (other than utilities)Education/OutreachPublic access to energy data to aid in outreach, education, implementing equityAlign/connect utility business model with EE programs – educate and work with utilitiesEstablish EE workforce resources that align with schools/colleges/universities and workforce programs to educate and create/fill jobsLead EE advocates, education, data, recognition org. Think LEED, EnergyStar, Housing coalition for modelsMore EE outreach programs across income levels – Residential EE daysOutreach to realtors/homebuilders about value of EE and benefits to market to consumersEducate so everyone sees everyone’s contributions – that EE is a shared initiative for allShow customers how they benefit in short and long term.Build trustFinancing ModelsStatewide, inclusive on-bill financing programTax policy initiativesNeed loan loss reserve and lender/CDFI to develop products for underserved parts of EE marketDo we have state funds that can flow into green bank?Public/private green bank partnershipTariff on-bill tied to utility business model, commercial development, etc.On-bill financing tariffs more widespreadInclusive financing for EE investments, aligns interests of distribution utility, customer and contractorsAllow competition for EE as service (or deploy pay for performance)Sustainable funding for loan loss reserveCan we finance outside of utility programs?Grid IntegrationStakeholder meetings to create a shared grid mod visionDefine EE’s role in supporting increase in EVsImplement a strong EE resource standard with a low-income/rural carve out.Smart gridNet meteringTest the “metered energy efficiency transaction system” model for EE PDAsFocus smart grid investments in areas that will reduce system costs and better integrate low-cost renewablesRequire EE to be valued as a generating resource in utility IRPsFinal mile broadband – alignment with community utility, health, EE opportunity, education, etc.EquityImplement a “percentage of income payment program” combined with EE supportEnergy equity mapping analysis create for utilities and decision makersConvene rural utilities with rural community to align on common economic development goalsUse AMI data to target low-income EE investments (leverage WAP, etc).Goal 2: Increase access for hard to reach sectorsBenefit AnalysisAdd energy intensity criteria to weatherization point system rankingSet/measure energy intensity and energy burden standardsAccount for non-energy benefits and use that data to fund EE in low-income householdsMeasure utility performance in EE to include kWh/# of persons (intensity/burden)Regulatory ReformRate reform – no more fixed chargesRate reform – new rate classes for special / unique groupsRental housing minimum housing LI reinstatementRequire a minimum EE performance for landlords/property managers for subsidized rentalMinimum standard for energy burden or intensity – landlordsPrivate solar rentalSection 8 rental standard reformRequire munis and co-ops to offer (?) EE programsCreate mandatory and voluntary energy and performance benchmarking and disclosure programsThird party data accessCRA-like incentivization for targeting hard to serve populationsPercentage of income payment option (tied to EE) for low-incomeUtility and government subsidies to incentivize EE (or net zero) for new low-income housing (LIHTC, etc.)Create developer affordable housing incentives for EE – currently on E* 2.0 and no incentives plus outdated minimum standardsEE programs to areas with bill payment strugglesEducation/OutreachDevelop education campaign aligned with trusted community groups – faith, schools, 4-H, etc.About 20-25% of adults 50+ are not on internet, so some may be unaware of EE programs value. Instead, via snail mailDevelop statewide referral network of service providers, social organizations, utilities, businesses, etc. to streamline outreach and resource distributionDesign simple formats for programs for less interested / less income-able folksFocus education / outreach in hard-to-reach communitiesEducate policy makers – create a campaign!Work with schools in all communities to implement EE/conservation programsHold outreach/awareness day events in these areas instead of most populated areas (town-hall format)Leverage HUD housing counseling networkNeed lead (and $) education and advocacy organization with skills specific to low income’s hard to serve populationAlways offer food and door prizesBilingual materialsFinancing ModelsLEAD mission-driven CDFI for EEInclusive OBF – accessible to everyone – in/through all utilitiesImplement “percent of income payment” program with energy efficiency requirements/fundingTariffed on-bill financing for all NC utilitiesTariffed on-bill for residential and small businessInclusive finance (like tariffed on-bill financing) – small business, residential, low-income, renters)Restart tax incentives for low income or distressed communities to become energy efficientTake advantage of programs (i.e. USDA/federal) for these hard to reach areasOn-bill financing w/loan lossAffordable multifamily EE program loan/financingAffordability program – % of income for bill payment and EE eligibilityMultifamily apartment building incentives – EE funding with rent control (as a contractual requirement)Incentives for EE manufactured housingCatalytic funding to leverage private investment/fundingReplacement housing system for again manufactured housingGrid IntegrationBroadband support – tied to EE, utility business model, community developmentLook at broadband as a resiliency strategy (co-ops)EquityInclude social/environmental justice, low-income and other underrepresented stakeholders in planning and implementationPrioritized targeting of EE investments in rural, low-income, minority, elderly homes and communitiesConsider EE initiatives to be explained by social workers, health insurers, faith organizations and non-traditional but trusted communication channels.Any EE initiatives that gives cost relief to low-income users should NOT be distributed by the government (“no government handouts”).Partner with socio-economic groups outside of energy/environment siloWork with community economic development organizations for collaborative approachVision for equity energy economyBlue Horizons example in low income or POC areaLook at Entergy Arkansas manufactured housing EE program as modelGoal 3: Form a uniform standard for tracking/benchmarking EE costs and benefitsBenefit AnalysisPublish energy burden/intensity rates for rental propertiesStandardize MLS - mandate HERS or energy burdenBuild standards so cost to operate is modeled to cost/ft2 according to an indexRegulatory ReformLegislate building code process that improves EE opportunitiesSolidify minimum company EE certifications / creds in utility programs – lots of variability nowRequire ERI/HERS ratings for all new homes and eventually all home salesUpdate code to include increased focus on renewables and storage-ready (however, after EE is addressed)Update NC code to improve opportunities for data access and benchmarking (smart meters, etc).Adoption / implementation of national uniform M&V protocolPrioritize / implement consumer-focused cost-effectiveness testing when evaluating EE programsImplement statewide EE savings for homes and include in value of assessmentsMove NC ECC to require net-zero construction (passive homes)Education/OutreachEE hub for information gathering and disseminationCreate an energy campaign to compare cost-to-operate – scorecard ratings of houses and apartmentsFinancing ModelsMake Pay as You Save the required standard for OBFAllow NCHFA to give incentivized loans that build homes/apts with lower cost-to-operate ratingsGrid IntegrationGreen button connect integration to standardize AMI data sharing/collectionAdvanced metering infrastructureEquityInclude co-ops and munis in energy efficiency resource standard (at same % as IOUs)Not everyone can meet standards – need to be equitable.Business (Small Business/Commercial/Industrial/Agriculture)Goal 1: Align Interests to create an EE-conducive climateBenefit AnalysisStandardize cost/benefit analysis for regulators (akin to avoided cost)Cost/benefit analysis with data to extract valueTimeframe of changes needs to allow for innovation and accelerating technology changesCarbon tax would align interests on GHG savingsRegulatory ReformIncentivize projects that create greatest impact (>kWh or >kW)Utilities give C&I customers easy access to our interval data; make it easy for. Me to give access to a 3rd party vendor of energy servicesLeast cost regulatory paradigmUniform state energy code for new constructionRate structure favoring EEExpanded LGS-RTP useEducation/OutreachAccess to transformative EE cap – peak shift and deep EECentral location and validation for business customers to learn about programs and available rebatesStandardize data requirements and reporting metricsDetermine whether generating resources (i.e. solar, wind) will be counted as EE if behind the meterIdentify all costs/benefits to be counted towards EE and those that aren’t to be countedRate structures that incentivize peak demand savingsID measures with good paybacks (benefit analysis)Financing ModelsIncrease subsidy for EE that has co-benefits (reduced peak, pollution reductions)Create robust financial backstop for loans to energy services contracts for small buildings (not MUSH market)Grid IntegrationRelaxed interconnection standardsAlign interests in DSMPay for performance programEquityGoal 2: Increase access for hard to reach sectorsBenefit AnalysisModel to layer benefits beyond $ savings to decrease payback timeRegulatory ReformEducation/OutreachMake small business customers a primary new focus for EE opportunitiesHelp understand paybacks and cost beneficial measuresCentralized resources / consultation (energy management)Share best practicesSmall business resource integrationFinancing ModelsExpand HVAC offerings of the utility “direct install” program to make HVAC EE easier to access for small businessMake projects easy and turnkeyEquipment leasing program incentivesPACE funding (property accessed clean energy)Grid IntegrationHigh speed, affordable broadbandIncrease data access. Provide load profiles and details of “red flags”EquityCreate and support rural EE workforce coalition to increase rural EE, create/fill jobs, and incubate new, small or struggling companiesGoal 3: Form a uniform standard for tracking/benchmarking EE costs and benefitsBenefit AnalysisAdd fuel use to benefit (not just CO2)Technical resource manual (TRM) beyond just electricity for NCSimple, anonymous, voluntary, standardized reporting (online)Kwh and kW reductionsRegulatory ReformEducation/OutreachAlignment on savings $. Need clear average estimates of $ savings per EE measureFinancing ModelsBroader administration of EE/DSM programs (economies of scale) across utilitiesGrid IntegrationEquityEquity included as a criteria for cost/benefit analysisConsider the effects of cross-subsidization on equityInstitutional (Municipal/Schools/Military)Goal 1: Align Interests to create an EE-conducive climateBenefit AnalysisCount health, education, etc. as EE benefitsLet $ follow benefits across sectors – if school upgrades improve health outcomes, can Medicaid dollars go to schools?Benefit analysis – cost/savings ratios, savigs/investmentCount BTU equivalent savings vs. kWh savingsNeed clear benchmark to measure success: reduction goals vs. $ savings goals vs. climate change goalsMake business case for EE manager positionsCulture change that lower O&M budgets do not necessarily mean better run buildings – need other KPP to incentive facility groupsExpansion of ($$) waste reduction partners program for institutional customersRegulatory ReformChange federal (and maybe state, if applicable) budget rules to enable amortization of efficiency investments over lifetime of projectReturn savings to schoolsPrioritize utility EE savingsSpecific EE targets for institutionsRevisit HB1292 – tool in place, but budget $ are often shiftedGive Federal institution incentives for more EEEliminate opt-out eligibility for institutional customersAdopt more aggressive EE goals (mandatory and voluntary)New or revised legislation or executive ordersGive IOU more incentive to do EE – pay for performanceBTU/kWh calculator / conversionAged facilities performance standards / goals / policyLowest bid vs. best ROIEducation/OutreachEnable audits and $$ follows for bondsTeach kids about EEExisting building benchmarks – share by building type – drive competitionUse students to do “audits” to final opportunitiesLead by example – exhibition/showcaseMake policy makers understand EE holisticallyMilitary – Rank advance based in one small part on energy savings at your baseUniversity list serv – set up for K-12 schoolsSemi-custom outreach education piecesProgram to train and retain control techs for commissioning – Wake TechEducation and outreach to industry, DEQ, coalition, webinars, websitesEducate owners/management on cost/benefit of EE to generate funds for more EEEmpower DPI to do more support for O&M plan reviews – K-12Use students / building occupants for competitionsWorkforce development – STEM education, apprenticeships, certificationsFinancing ModelsRevolving loan fund for EE (green bank?)Competition for highest savings – tangible rewards ($) proportionedReinvest EE savings (HB1292 for Universities) – allow agenciesGreen BankAirport carbon offset programs (opt-in) for travelers to RDUPerformance contractAppropriations – keep savings modelFull cost accounting – what’s in, what’s outBank finance, energy service contracts, green fund, rebatesHigher tech initial investments after require expanded O&M budgets – more computer savvy techs / more sensors to monitor and replaceEnd users $ segregated from utility bill leads to lack of incentive for behavior changeLots of focus on construction phase with minimum focus on O&M. EE systems often defeated to avoid required maintenance costGrid IntegrationMore renewable generation on siteIOUs and co-ops map where on system the institutional DR would be most usefulLoad profile analysis with smart grid dataMunicipal electric fleets – tap for peak load reductionUse EV bus fleet as batteryDiscuss EE in broader terms of customer-owned assets providing utility system valueCampus energy providers have rates based on recovery of P&I for prior investment – not always supportive of reducing energy $Micro grids, demand reduction, renewable energyEquityReturn EE savings to public schoolsSmall/limited capacity local governments – retrofit $, TA, policy support, educationHelp all schools in NC get EE benefitsSchools in highest income help schools in poverty areas to save energyGoal 2: Increase access for hard to reach sectorsBenefit AnalysisExpand benefits to health, safety, etc.Get input from “hard to reach” groupsEducate the health benefits of energy savings – less medical / taxes vs. higher cost on efficiencyRegulatory ReformTreat multifamily as residential EERegs build in deliberate access “trickle over” to HTRGReconsider ban on treating different customer classes differently?Create performance model for utilities to provide sustainability savingsEducation/OutreachHelp business leaders know EEMake business aware of rebates, incentives, etc.Small municipal utility training and customer support (technical assistance)Online training for free or reduced costUtilize community colleges strategicallyCommunication – EE website for successes, tools, etc.Big box education on rebates for $ illiterate and unaware customersFinancing ModelsPay to Save on-bill tariffGreen bank could offer no-interest loans to smaller, poorer institutionsEliminate co-funding barriers (DOE and Utility)Evaluate rebate opportunities vs. low rate loan arrangements (stressed budgets might not benefit as much from rebate)Federal bondsHave local and/or state government match utility investmentsGrid IntegrationUse behind the meter technology for DSMLow wealth/rural systems support through tech transfer of lost gen techIncentives for last-mile assistance.EquityHelp small business moreRural / urban partnershipsPrioritize institutions that serve poorer or more rural communities (bus stations vs. airports)Tie affordable housing incentives to energy burdenReward O&M champions (maintenance) – educate top managementGoal 3: Form a uniform standard for tracking/benchmarking EE costs and benefitsBenefit AnalysisInclude health, education, etc.EBB – existing building benchmark: per sqft, kWh, therms, BTU plus costs (uniform tool / spreadsheet)PUC – stakeholder work group to identify what to measure for EE c/bInclude building type and # of occupants/students, etc.Workshop to analyze conflicting data (job creation vs. job loss)Establish common goals – achievable and stretch – for environment, health, CO2, workforce, $, etc.Having goals even voluntarily can help with competitiveness and focus on meeting an actual target.Customize EE benefits KPI for target groups – use in educationEUI allows broad comparison of EE reduction but $ reduction may also be critical since energy sources have different $Include value of non-energy benefitsRegulatory ReformDefine all that counts for EERequire benchmarking / energy reporting for all public buildingsMake BTU / kWh conversionAllow local jurisdictions to require energy rating at point of saleNCGA enact EE requirements for this sector – independent of IOU/EMCs/MunisNCUC/public staff create EE business modelRevise S668 to 40% reduction from 2003 baselineEducation/OutreachInclude carbon / climate M&I?Evaluate models for data tracking / analytics – path to implementation“EE makes Cents!” outreachRecognize achievements and successesFinancing Models“PPP” to support development of common standards (skin in the game)Require energy benchmarks for all state funded projectsGive for-profit loans if participate in uniform EEGovernment finance all EE measuresPay to SaveGrid IntegrationMake technologies uniform and integratedShould benefit to grid (peak shaving, for instance) be a factor for utility compensation (reg reform needed).Define “grid integration” scope and reachEquityMake EE equally accessible to low-incomeMake energy burden equal to % of income limit ................
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