Energy Efficiency Trends in the Southeast
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1 Energy Efficiency Trends in the Southeast Jenah Zweig, Policy Manager EE Opportunities Best Practices in the South Georgia Tech Clean Energy Series March 27, 2013
2 SEEA The Southeast Energy Efficiency Alliance champions energy efficiency market transformation in the region through collaborative public policy, thought leadership, programs, services and technical advisory activities. Nonpartisan nonprofit, serving a 11- state region and approximately 71 million residents Board includes utilities, energy service providers, state energy office officials and university experts 2
3 The Benefits of EE 3
4 The Opportunity at Hand 4
5 The Southeast lags behind the rest of the country, but incremental improvement continues In especially laggard SE states, EE continues to emerge as a priority issue from both sides of the aisle.
6 Leading EE Policy Mechanisms Utility-Focused Public Service Commission EE Dockets Energy Efficiency Resource Standard (EERS) Performance Incentives Lost Revenue Recovery Mechanisms (LRRM) Decoupling Public Benefits Funds Rate Design Building-Focused Building Energy Codes Tax Credits Loan Programs Appliance Standards Appraisal Standards Building Labeling State Building EE Targets Property Assessed Clean Energy (PACE) 6
7 2012 Policy Successes Duke-Progress merger complete Energy code adoption in AL, SC, KY, AR, progress in MS Launch of 1st Energy Plan in Mississippi LA PSC adopted statewide new energy efficiency rules Alabama initiated statewide new energy planning process 7
8 SEEA BBP Southeast Consortium 8
9 2012 ACEEE State Energy Efficiency Scorecard Most Improved States Source: 2012 ACEEE State Energy Efficiency scorecard, ACEEE, 9
10 Goal: Drive Market Transformation Remove barriers that inhibit EE initiatives Introduce new laws that promote comprehensive EE policies on the state and local level Expand awareness and stakeholder support to champion EE initiatives Increase incentives to encourage consumer adoption of EE programs Provide education resources and technical assistance to stakeholders Support distribution channels and specifically market manufacturers to provide adequate EE infrastructure 10
11 2013 Southeast Energy Efficiency Snapshot 11
12 TENNESSEE TVA s out of the gate with the goal of being the Southeast s leader in increased energy efficiency IRP Process Reopening in Fall 2013 Major focus to support and enable distributors to adopt needed efforts to achieve TVA goals Continue aggressive adoption of leading EE policies and programs Interest in energy code and beyond code programs, potential leader for Southeast TVA Territory impacts 7 of 11 SEEA states 12
13 NORTH CAROLINA It is the year for defense in North Carolina due to major swing in state-level elected leadership NC continues to be clear leader but the political tides are turning away from the REPS and clean energy tax credits. Most of the Utilities Commission may be replaced due to sudden legislative action Outcomes of Duke Progress merger continue to develop Local government leadership: Asheville, Raleigh, Charlotte; working on PACE projects, eco-districts and other local-level, cutting edge solutions, making the most of the research triangle Energy code weakening prevention
14 SOUTH CAROLINA 5th most improved state on ACEEE scorecards Help My House- Cooperatives powerful and innovative, success w/on-bill financing IECC effective January 1, Strong partnership between HBA of SC, SC Energy Office, England Enterprises, and SEEA. Updated net metering and interconnection laws. Pushing forward with trying to do third PPAs and commercial PACE. 14
15 VIRGINIA Hot PSC EE Opportunities in Virginia. Dominion VA s new Demand Side Management (DSM) programs and rate adjustment clauses under review. Local communities are leaders in the SE in innovation and deployment of residential retrofit programs IECC adoption in process.
16 KENTUCKY 2009 IECC went into effect on October 1, KY gearing up to release energy plan. Awarded over $700k DOE funding to improve ESPCs. EE legislation underway: HB 370, HJR 41, HR69. $11.2M awarded to 13 orgs for EE economic development as a part of TVA 2011 settlement with EPA. Preliminary discussions with utilities regarding energy code DSM programs taking place. KY as model for zero net schools. First net zero school in US. 16
17 ARKANSAS PSC EE Rules going strong and are the model for rest of Southeast. Sustained strong PSC leadership. Offering the needed positive influence for other states. Governor s Energy Plan being released. Multiple clean energy legislative initiatives including a PACE financing bill IECC adoption in summer State energy office, utilities and HBA gearing up to create resources for implementation. Proposed clean energy standard. 17
18 Mississippi Mississippi Scrapping to Rise from Bottom of the Pile New Governor s focus and priority. Multiple pieces of EE legislation pending in legislature. Awarded DOE funding for university benchmarking in partnership with TVA. Governor focused on introducing new programs and policies to support the vision in his 2012 energy plan. Open EE docket before PSC; Economic Impact Study complete.
19 LOUISIANA LA PSC Districts Major recent LA PSC flip flop. Statewide EE docket adopted in Dec Change in PSC leadership in Jan EE Rule vacated Feb 2013 and process starting over. Unanimous adoption of Integrated Resource Planning rules for Entergy New Orleans. Codified ASHRAE in law this session. Will pursue legislative 2009 IECC adoption in 2013, building stakeholder base to support adoption. 19
20 FLORIDA Continued long term commitment by utilities for energy efficiency programs. Undergoing 2012 IECC adoption process. FL energy codes performance-based thus difficult to implement and enforce. Florida is clear leader on creative financing solutions. Jacksonville Metro strong model for credit unions. Multiple PACE programs under development. 20
21 ALABAMA State Energy Plan underway, primary statelevel initiative. AL Power IRP process still closed with no stakeholder engagement process. Adopted First, Statewide Energy Code in Implementation resources for 2009 IECC equivalent code underway. AL HBA leader of energy code implementation. Gearing up for DET requirements that go into effect 7/1. Active legislative committee on EE, bright spot of AL. More attention being paid to fact that AL residents have second-highest utility bills in nation but some of lowest rates, still uncertain if this will create needed groundswell. 21
22 GEORGIA POWER Georgia Power will release an expanded portfolio of EE programs as part of its 2013 IRP First Company-wide EE Goals set in 2010 were met. Currently revising and expanding programs. Will serve as a model for Southern Company s other operating companies.
23 GEORGIA ESCO program for state government facilities continues to falter and under perform. Decreased resources for program at GEFA rollback prevention of GA Amendments to 2009 IECC. Focusing on strength of GA Amendments to 2009 IECC. Partnering with GA Power and HBAG to provide Success with 2009 IECC for Georgia energy code implementation materials throughout the state. 23
24 A Few Takeaways 24
25 Creative financing is the new game for State Energy Offices ESCOS! State Energy Offices experienced significant reorganization and reductions in force in the 2012 as the ARRA money came to a close. 25
26 Strong and Growing interest and discussion around new revenue recovery mechanisms for utilities Performance Incentives Incentive Pending Lost Revenue Recovery Mechanisms Decoupling, Public Benefits Funds, and Smart Rate Design do not appear to be a source of near-term opportunity in the Southeast.
27 More and more credit unions finding success through financing mechanisms, but credit union rules are not as supportive of EE rules as they need to be National banks showing renewed interest in the EE game. FHA EE rates at all-time high, close to 8-10% as opposed to 3-4%. 27
28 Growing discussion on providing more usable customer information for existing buildings Building Labeling Appraisal Standards Appliance Standards 28
29 Momentum of Multiple Policy Mechanisms Released October 4, 2012 Governor s Energy Plan Lead by Example State and University Facilities EE benchmarking Pending PSC Dockets & Legislation Energy Efficiency Net Metering Energy codes Revolving loan funds EE Advancement Increasing Leadership from Utilities New TVA System Wide Targets Expanding programs from other utilities 29
30 Regional Code Trends Rollback prevention 6 year adoption cycle threat HBA desire to skip 2012 and go to 2015 Window replacement push-back Gearing up for new duct blaster and blower door requirements, need for trainings DET and HERS testing Less 2012 IRC adoption due to residential sprinkler requirement Utilities incorporating DSM energy code compliance programs and claiming savings 30
31 Major Shifts in the Energy World Natural gas prices at historic lows, significant domestic supply and can be seen as on par w/ee in terms of price PV industry: oversupply of panels and companies offering panels Will likely see increase in bankruptcy and consolidation of PV companies Fuels fire of those opposed to alternative sources of energy LED costs trending down, becoming more mainstream in the last year Nothing coming out of latest trend of climate talks To watch: if Obama pushes clean energy policy in second term No new coal plants except for SC, many 40+ year coal plants being retired Convo heating up: how are you going to fill the demand? Market does not seem confident that EE is the answer Wind and solar transmission and storage continue to be a confounding variable for renewables 31
32 How can you change the rules? 32
33 Contact Jenah Zweig Policy Manager Southeast Energy Efficiency Alliance Office: Thank you! 33
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