ACEEE Market Transformation March 31, 2009 Washington, DC

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1 ACEEE Market Transformation March 31, 2009 Washington, DC QuickTime and a TIFF (LZW) decompressor are needed to see this picture. Communityfocused Energy Efficiency Robust growth & future planning

2 Community Energy Efficiency Experiences of Local Governments & program planning Creating Best Practices

3 Symposium topics newest strategies developed by local governments to push for deeper energy savings--- strategies may have regulatory structures, innovative financing elements, and or local/network social marketing strategies

4 Market Transformation and Local Govt Programs/need for hard data How much as a result of?-- Mainstreaming of New Products via LG Green Building Requirements Serving as an Incubator for R&,D,D in partnership with PIER, DOE, EPA Jumpstarting on new Standards Local Products/Job Creation for Green Workforce Serving as Pilots

5 Local Government Capacity & Commitment What abilities or attributes do local governments need to have to ensure they can implement successful programs with long-term savings and replication potential? For example: Ability to provide cost-effective energy savings? An in-house energy champion? History of energy savings achievement? Involvement across departments?

6 Local Government Capacity & Commitment Which policies or activities should local governments/state agencies be pursuing on their own in order to be eligible for PGC funding? Long-term sustainability strategy for the agency or community Long-term energy savings and greenhouse gas reduction plans for government buildings and community-wide Commitments to future energy savings Smart growth policies that encourage or overlap with EE increased density, narrower streets, street trees, transitoriented development, etc.

7 Cumulative effect of local governments "The cumulative effect of local governments working to address the critical implications of global warming cannot be overstated. Salisbury is a city that is strongly committed to environmental sustainability. We believe our role as a community, albeit relatively small, is integral to the complex and transcendent effort to mitigate the serious consequences of climate change." Mayor Susan Kluttz Salisbury, NC QuickTime and a TIFF (LZW) decompressor are needed to see this picture.

8 - Urge the U.S. Congress to pass the bipartisan greenhouse gas reduction legislation, which would establish a national emission trading system Cities That Have Signed On 935 as of 3/20/2009 The foregoing list includes the names of 935 mayors from the 50 states, the District of Columbia and Puerto Rico, representing a total population of over 83,504,990 citizens.

9 T h e U n i t e d S t n i t e d S t a t e s C o n f e r e n c e o f M a y o r s s C o n f e r e n c e o f M a y o r s QuickTime and a TIFF (LZW) decompressor are needed to see this picture.

10 Examples Nationally Portland Chicago Denver San Francisco Gainesville Montgomery County Austin Seattle

11 QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. The BEST Business Center is a "one-stop shop" for businesses in Portland that want to become greener and more profitable. We provide a free evaluation of your operations in the areas of energy, water, waste You'll receive: * free customized assistance from resource conservation experts; * sustainability reports; * access to financial incentives; * recognition; and, * networking opportunities.

12 Denver QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. The Webb Mun icipal Building hou ses most Denver city off ices. It is both ergy En Star and LEED-EB Gold ce rtified, and is 25 percent more en ergy eff icient tha n a conventionally-bui lt building.

13 The Green Bungalow Initiative, sponsored by Chicago, green building principles applied affordably to existing homes. QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

14 The Green Bungalow Initiative Features included double-paned windows, energy-efficient furnaces and water heaters, and extra insulation, including insulation made of recycled newspapers and phonebooks. Renovation of the homes was completed in June 2002, and all homes were sold and occupied by November of that year. A subsequent comparison of energy bills for a "control" bungalow on the same block with the rehabbed bungalows demonstrated that energy savings in the Green Bungalows ranged from 15 percent to 49 percent.

15 San Francisco Testing Energy-Effi cient LED Streetlights in San Francisco Published: 06/24/2008 Updated: 07/02/2008 Published By: Power Enterprise The San Francisco Public Utilities Commission and Pacific Gas and Electric have partnered to test the next generation of str etlights--energy-efficient, light emitting diode (LED) streetlights. These lights are 40 percent more efficient than traditional high pressure sodium vapor lights, and produce a whiter, brighterlight,aiding public safety.your input is valuable to this process: we want to know what you think of these lights and whether you like them more than the traditional streetlights.

16 EPA Energy Star Challenge The U.S. Conference of Mayors has teamed with Environmental Protection Agency s Energy Star Program to provide solutions to help mayors meet cities climate protection goals, goals of The U.S. Conference of Mayors Climate Protection Agreement, and goals of 2030 Building Challenge.

17 SACRAMENTO The League of California Cities announced that it is recognizing Assembly Member John Laird (D-Santa Cruz) AB 2466 This law is important to local government because it generates additional public investment in renewable power by authorizing a public agency to receive full credit against its electric bill for any surplus power produced by an eligible renewable generating facility and is a legacy for cities and the environment. "As a former mayor and councilmember, I came to Sacramento with the knowledge that local government is closest to the people and must have as much support as possible from the state. Assembly Member John Laird (D- Santa Cruz)

18 Climate Action Plans & AB32-- Mitigating environmental impacts considering global warming Cities placed on alert by Attorney General Jerry Brown LGP programs use data supplied by the IOUS to adopt goals and quantify benefits from energy efficiency improvements

19 Chicago Climate Exchange and City of Berkeley As a member of the Chicago Climate Exchange (CCX), the City of Berkeley is obligated to reduce greenhouse gas emissions associated with municipal operations, including consumption of natural gas, electricity and motor fuels. If the City of Berkeley does not achieve the required reductions, it must purchase carbon credits from other members that have exceeded their targets. The CCX has independently verified that the City of Berkeley reduced its emissions by 7-10% in 2003, 2004 and 2005 and that emissions rose only slightly in Berkeley has chosen not to trade the excess credits it has accumulated since 2003 thereby ensuring that the reduction in greenhouse gasses is enjoyed by all Berkeley residents.

20 Discussion Questions: What do we know about the success of new community-based strategies in encouraging broader participation and/or deeper savings? How can community-based efforts leverage DSM programs and vice versa? What are the elements of successful community strategies? What roles can utilities play in supporting community actions?

21 As seen thru the lens of CPUC A All IOUs see LGPs as a comprehensive delivery channel ---- Proposed for : Many, many partnerships (from 1. Those getting started, 2. motivated, to 3. Highly committed ) plus: PG&E- Innovator Pilot-- SCE - Demonstrations SDGE/SoCalGas - Sustainable Communities

22 Key adopted CEESP Local Govt Goals Local governments lead by example with their own facilities & energy usage practices Local governments showcase innovative EE and other DSM relevant to achieving ZNE buildings. Local governments implement local policies for LEED new construction and existing buildings. Local governments complete benchmarking and policy implementation.

23 the CEESP framework --that local governments can 1) fix their own facilities, 2) use their leadership, 3) use their planning carrot and stick (regulatory) abilities manifested in ordinances, code enforcement, fee waiver, climate action inventories and plans,

24 CPUC:City/IOU Partnership programs for Government Buildings data to be collected 1. Benchmarking by square footage - Energy Star LEED 2. Integrated DR/EE audit and on-site generation enabling towards ZNE 4. Monitoring-based Retro-Commissioning (by cluster of buildings) 5. Goals for energy use reduction by local government facility portfolio 6. Statewide energy use data on LG facilities as a sector 7. Buildings leased by local governments 8. Lighting and task lighting 9. Joint contracting 10. On-bill financing 11. Peer to peer training 12. New Construction

25 CPUC: City Partnership programs for Commercial/ Residential sector -data to be collected 1. Marketing to core/iou programs 2. Marketing to IOU selected third party programs 3. Marketing to City programs which implement upgrades 4. Neighborhood sweeps 5. Outreach and Education 6. CDBG 7. Just above LIEE 8. Demand response coalitions 9. Peer to peer training

26 CPUC: City/IOU Partnerships on Policies 1. New Codes (Green Building,LEED, Reach, RECO/CECO, etc.) 2. Climate Action Plans/General Plans 3. Financing Districts 4. Code enforcement 5. Expedited plan check/waive fees 6. Peer to peer training 7. Recognition for engagement in Civic Leadership

27 Benchmarking-from a LG perspective Key Stakeholders--Mayor & City Manager, - prepares budget and staff assignments Over time, LG as the consumer itself can save $ by improving its own practices Benchmarking as a means to demonstrate performance and creating buy-in and communication

28 CPUC screen for IOU/LGP programs Adoption of Improvement Goals Municipal Bldg Benchmarking -- using Energy Star Building Commissioning Demand Response Integrated Audits ---Towards ZNE buildings Financing On Bill, Assessment Districts, Leadership in Energy Building Codes Climate Change Plans Community Outreach/Delivery

29 CPUC screen of IOU/LGP programs (2) Peer-to-Peer Assistance LG Municipal, Residential, Commercial Programs Revolving Energy Efficiency Re-investment Fund Creating LG Capabilities Innovation & Resource Integration Regional Cooperation Continuous Improvement

30 Examples - Calif LG energy programs Leaders Berkeley San Jose Oakland /East Bay Energy Coalition Chula Vista Palm Desert Many others Just Getting Started Many cities and partnerships new to working together on saving energy in govt buildings and in their communities

31 Berkeley FIRST (Financing Intiative for Renewable and Solar Technologies) * September 23, 2008 Approv al of Bond Purchase and Administration Agreements * September 16, 2008 Pub lic Hearing to Establish Financing District * July 22, 2008 In tent to Establish Financing District and Amend Local Goals and Policies * April 22, 2008 Amendment to Berkeley Municipal Code to Establish Special Tax Financing Law * April 22, 2008 Intent to Establish Revenue and Contracts for Solar Financing District * November 5, 2007 App roval of Concept for Financing District

32 Berkeley FIRST is a solar financing program operating in the City of Berkeley. It provides property owners an opportunity to borrow money from the City s Sustainable Energy Financing District to install energy efficiency and solar photovoltaic electric systems and allow the cost to be repaid over 20 years through an annual special tax on their property tax bill. The tax will only be paid by Berkeley property owners who voluntarily participate in the Berkeley FIRST program.

33 Advantages- Berkeley FIRST program : * There is relatively little up-front cost to the property owner. * The cost for the solar system is paid for through a special tax on the property, and is spread over 20 years. * The financing costs are comparable to a traditional equity line or mortgage. * if the property is transferred or sold, the new owners will pay the remaining tax obligation.

34 Palm Desert Energy Partnership The Palm Desert Energy Partnership is a groundbreaking project seeking to achieve efficiency and peak demand energy savings of 30% in the City of Palm Desert by The project partners are Southern California Edison, Southern California Gas Company, the City of Palm Desert and The Energy Coalition. The project s goals are above and beyond any city-wide energy goals previously attempted in the State of California.

35 City of San Jose Amending internal budget practices so that money saved through EE does not go into the General Fund but is re-invested into either more EE, or into paying off the low-interest loans that were used to get the work done.

36 City of Chula Vista Using LG Policies to Leverage EE Savings, Private Investment and the Workforce An assessment district for residential retrofits. tiered with EE before solar Requires of use local labor and local supplies so the investment homeowners make on their property tax bills not only upgrades their house and saves them money, but trickles through the community and local workforce for years

37 Huntington Beach The City of Huntington Beach recently adopted an Energy- Efficient Permit Fee Waiver Program for equipment that either produces energy or is significantly more efficient than required under California or federal standards. Ross Cranmer, the city s building and safety director, says the fee waiver program applies to plumbing, mechanical, electrical and solar permits. Examples include, but are not limited to, photovoltaic systems, solar water heating systems, tankless water heaters, high-efficiency furnaces and high-efficiency air conditioners. The Huntington Beach Energy-Efficient Permit Fee Waiver Program begins on November 5, 2007.

38 Some IOU/Local Govt Issues Attribution identification Local requirements and availabity of incentives Resource or non-resource programs Non-resource--new opportunities for EM&V CO2 emission reduction credits Ring fencing

39 Leverage, leverage Local leadership, networks, channels State & IOU authorization, strategic planning, standards Private sector market/product energy efficiency branding Federal Energy Star plus & infusion of funds Planning and milestones towards goals

40 National Plan for Creating Economies of Scale for Market Transformation thru LGs

41 Working together Rita Norton-- is a consultant to the CPUC in reviewing the Government Partnerships; She was a Third Party Program Implementer to the CPUC in ; From , Ms. Norton was lead energy staff for the City of San Jose, including adoption of the first Sustainable City Policy.

42 Where we go from here Future actions-- Comments on the IOU submittals to CPUC Changes to Policy CPUC adoption of Programs Milestones Evaluations