NASEO 2016 Energy Policy Outlook Conference Weatherization & Intergovernmental Programs Office. AnnaMaria Garcia Program Director

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1 NASEO 2016 Energy Policy Outlook Conference Weatherization & Intergovernmental Programs Office AnnaMaria Garcia Program Director

2 Today s Agenda Where We Are Where We Are Going WIP Activities/Looking Ahead 2

3 Tremendous Progress in the EE Portfolio Buildings Technology Office Two-thirds to President s 3 billion CO2 for 2030 from appliance standards AMO Manufacturing Institutes: WBG, advanced composites, smart manufacturing, Number 4, Number 5 FEMP New Federal EO on Federal energy and GHG leadership with new goals for 2025; $4 billion federal Presidential performance contracting challenge WIP State and local engagement in best practice policies and programs Low income weatherization; more than 1 million households weatherized! 3

4 EERE Vision, Mission, and Principles Vision A strong and prosperous America, powered by clean, affordable, and secure energy Mission To create and sustain American leadership in the transition to a global clean energy economy 4 Organizational Principles Economic Prosperity Affordability Reduced Environmental Impact Energy Security Consumer Choice

5 EERE Strategic Plan Structure EE Related Goals Goal 1: Accelerate the development and adoption of sustainable transportation technologies Goal 2: Increase the generation of electric power from renewable sources Goal 3: Improve the energy efficiency of our homes, buildings, and industries Goal 4: Stimulate the growth of a thriving domestic clean energy manufacturing industry Goal 5: Enable the integration of clean electricity into a reliable, resilient, and efficient electricity grid Goal 6: Lead efforts to improve federal sustainability and implementation of clean energy solutions Goal 7: Enable a high-performing, resultsdriven culture through effective management approaches and practices 5

6 Improve energy efficiency of our homes, buildings, and industries Goal 3 6

7 Improve energy efficiency of our homes, buildings, and industries Goal 3 Develop New Materials, Technologies, and Approaches for American Homes and Buildings Develop New Materials, Technologies, and Processes for U.S. Industries Validate Energy Savings Technologies and Systems at Sufficient Scale to Enable Wide-Scale Adoption Demonstrate Next-Generation Efficient Homes and Buildings are Affordable, Healthy, and Durable Enable Demonstrations of Energy-Saving Approaches for Buildings and Industrial Facilities 7

8 Reducing Market Barriers Goal 3 Implement Minimum Appliance and Equipment Energy Performance Standards Support Increased Energy Savings from Commercial and Residential Building Energy Codes Provide Technical Assistance across Market Sectors to Improve Adoption of Energy Efficiency Practices Improve and Standardize Methods for Assessing the Energy Efficiency and Potential Energy Savings Assist State and Local Governments in Developing and Adopting Energy Efficiency Best Practice Programs and Policies Support Home Weatherization, Including Improved Technical Tools and Work Quality Provide Easy Access to Information on Leading Energy Efficiency Best Practices Improve the Quality and Consistency of Training Programs 8

9 Stimulate Growth of Thriving Domestic Clean Energy Manufacturing Industry Goal 4 Cost Reduction and Performance Improvement Reduce Cost and Improve Performance of Specific Clean Energy Technologies by Developing Manufacturing and Materials Technologies and Processes Increase Industrial Energy Productivity by Developing Foundational Advanced Manufacturing and Materials Technologies and Processes that Benefit Multiple Clean Energy Technologies Reduce Risk to Clean Energy Manufacturing Competitiveness from Potential Supply Chain Disruptions by Developing Critical Materials Technologies Technology Validation and Risk Reduction Reduce Technology Scale-Up Risk by Supporting Manufacturing Demonstration/ User Facilities Reducing Market Barriers Inform Manufacturing Efforts Through Detailed Analysis of American Clean Energy Manufacturing Competitiveness in a Global Context Work With Key Stakeholders for State and Regional Clean Energy Manufacturing Economic Development Recognize, Demonstrate, and Share Energy-Savings Approaches for U.S. Facilities Maximize Impact of EERE Manufacturing RD&D Investments through Export Promotion and U.S. Manufacturing Commitments 9

10 Clean Energy Manufacturing Success Indicators Goal 4 Growing numbers of companies that produce clean energy technologies choose to locate manufacturing facilities in the United States Growing numbers of U S manufacturers choose to implement energy efficiency measures EERE-supported technologies mature to be substantially manufactured in the United States By 2025, reduce the life-cycle energy consumption of EERE- targeted manufactured goods by 50% 10

11 Energy Efficiency Success Indicators From appliance standards enacted from 2009 through 2016, realize energy savings to avoid at least 3 billion metric tons of carbon emissions cumulatively by 2030 By 2020 develop cost effective technologies capable of reducing a building s energy use per square foot by 30%, compared to a 2010 baseline By 2020, demonstrate at scale market-based industrial programs and practices providing energy savings of 25% or more By 2025, demonstrate approaches with market leaders in the commercial sector achieving 30% energy savings per square foot for existing buildings and 50% energy savings in new buildings relative to typical commercial buildings in 2010 By 2025, reduce the energy used for space conditioning and water heating in single-family homes by 40% from 2010 levels By 2025, introduce new industrial technologies and/or advanced materials that lower facility-level energy costs 50% or more, and/or provide 50% savings over targeted product lifecycles, compared to a 2010 baseline By 2030, reduce energy use per square foot in all U S buildings by 30%, compared to a 2010 baseline 11

12 WIP Mission & Strategic Objective: How We Fit Into the EERE Plan WIP is part of EERE s balanced research, development, demonstration, and deployment (RDD&D) approach to accelerate America s transition to a clean energy economy. WIP s mission is to catalyze the deployment of energy efficiency and renewable energy technologies and practices by a wide range of government, community, and business stakeholders, in partnership with State and local organizations. WIP supports DOE s strategic objective to deploy the clean energy technologies we have. These typically near-term activities produce almost immediate results in the form of greater energy efficiency, lower energy use, expanded renewable energy capacity, and economic development. 12

13 Weatherization & Intergovernmental Programs (WIP) Office WIP activities are focused in three primary areas: State Energy Program (SEP): State-led energy projects serve as an important foundation for reducing energy use and costs, developing environmentally conscious state economies, and increasing renewable energy generation. Weatherization Assistance Program (WAP): State/local agencies carry out residential energy retrofits in low income residences that reduce energy consumption while concurrently reducing energy costs for these families. Policy & Technical Assistance (P&TA) Team: Assists in developing tools and solutions to barriers facing state and local government expansion of energy efficiency policies and programs and replicating successful efforts demonstrated by public sector leaders. 13

14 WIP Budget Summary Breakdown FY 2015 Enacted FY 2016 Enacted FY 2017 Request Weatherization Assistance Program Grants (formula and competitive grants) $190M $212M $225M Training and Technical Assistance $3M $3M $5M Total, Weatherization Assistance Program $193M $215M $230M State Energy Program $50M $50M $70M Cities, Counties & Communities Energy Program - - $26M Total, Weatherization and Intergovernmental $243M $265M $326M 14

15 State Energy Program Update FY 2016 Formula Grants Preparing FY16 Grant Guidance and Administrative Legal Requirements Document Allocations table will be based on $39M Planned release: end of February 2016 FY 2016 Competitive Awards FOA issued on January 19, 2016; expected date of selections is July 2016 or earlier Informational webinar occurred January 27, Slides available on the SEP website under Competitive Financial Assistance SEP conducted a workshop to assist states in writing applications responsive to the competitive FOA on February 4, Other Program Updates FY 2015 Competitive Awards Overview 15

16 Improved Process Since 2014 Formula ALRD Replaced formal FOA with ALRD Competitive FOA FOA issued in January instead of April Negotiation calls with states early in process FOA reduced by 41 pages! Detailed guidance on budget justifications Technical Merit Review Criteria reorganized and consolidated Changed project period from 5 years to 3 years. New AOI in FY16: Up to 750K for TA for states without a prior year competitive award 100% of Formula Grants ON TIME and WITHOUT CONDITIONS for the past two years! Consistent timeline for application period and selections! 16

17 Recent SEP Formula Outcomes Comprehensive State Energy Plans & Roadmaps. Electric vehicle rebate programs; EV charging stations along major U.S. routes. Pipeline to transport CNG from wastewater facilities ( gallons daily for city fleets). Appliance efficiency standards expected to save 2.4 billion gallons of water in first year and 38 billion gallons in 10 years. Energy efficiency retrofits in schools that are significantly decreasing heating fuel consumption and electricity usage. LED street light TA, including opportunity assessments and workshops for municipal officials on working with utilities for lighting replacements. 17 Energy efficiency finance programs to make EE/RE upgrades easy and affordable for all types of energy consumers.

18 SEP FY16 Competitive FOA Summary FOA issued January 19, Applications deadline is March 31, Area of Interest FOA Funding Range ($) Number of Projects Award Duration 1: State Energy Planning $200,000-$300,000 single state; up to $500,000 multi-state (up to 3); $800,000 multi-state (4+) Up to 5 Up to 2 years 2: Opportunities for Innovative EE & RE $200,000-$300,000 single state; approx. $500,000 multi-state (up to 3); approx. $800,000 multistate (4+) Up to 12 Up to 3 years NEW 3. Technical Assistance to Advance SEP Formula Activities Up to $750,000; Approximately $50,000 - $75,000 per award. Up to 10 Up to 2 years Totals Up to $5.75 million Up to DOE will announce the selections in early Summer The FY15 Competitive Award kickoff event was held at this conference earlier this week

19 SEP FY15 Competitive Awards Overview State Energy Planning Bolster state/regional energy planning through stakeholder and interagency discussions concerning direction of the energy sector in the region/state. Emphasis on electric power sector and natural gas supply and transport. EE and/or RE to Achieve Regional or State Goals - ME, NY, VA EE Registry - TN* Opportunities for Innovative Energy Efficiency and Renewable Energy Practices Assist states in advancing residential, commercial and/or industrial markets for energy efficiency and renewable energy through a set of policy and regulatory actions within a topical portfolio of transformative categories. Working with Local Governments - AK, MN Evaluation, Measurement & Verification - MO Wastewater - NE, NH, NM, TN* SEP FY15 Competitive Awards Area No. of Awards Funding 1 4 $1.97 million 2 8 $2.99 million Total 12 $4.96 million Residential Benchmarking & Disclosure - VT 19 *TN won two awards in FY15

20 FY14/15 Competitive Awards - Some Examples of Current Projects State Energy Planning Benchmarking & Disclosure (B&D) + Residential Distributed Energy Resources (DER) Evaluation, Measurement & Verification (EM&V) Working with Local Governments State and Regional roadmaps Utility tariff structure to align business models with energy goals Collaborate with local governments to measure, track, and report energy savings Advancing B&D programs across major cities Standardized B&D legislation along western states B&D programs estimated savings: 144+ TBtus/year by homes labeled; 450 whole-home retrofits within 2 years Advancing interconnection and deployment of DER Reduced interconnection cost and lead-time Best practices in DER for other states and utilities Statewide Technical Reference Manual to stimulate participation rate in efficiency offerings. Statewide EM&V frameworks and efficiency-to-carbon translation methodology Consensus approach regarding EM&V energy savings to CO2 conversions to help states integrate ESPC programs into state plans. Regional plans to decrease energy use in municipal wastewater facilities by 2-5 million kwh/year through ESPCs Benchmarking and auditing ~200 wastewater facilities; estimated 35.5M megawatt hours/year and GHG reduction of 150 million metric tons of CO2 20

21 FY13 Competitive Awards - What s Coming Up Advancing Industrial Energy Efficiency and Combined Heat & Power Clean Energy and Economic Opportunity Roadmaps Stimulating EE Action Driving Demand in Public Buildings RealCost model - aligns incentives, provides financial assessments of proposed projects Streamlined air permitting process Resource Guide for CHP projects Action plan to reduce CHP barriers for states and stakeholders Regional asset inventory for roadmaps for improving energy efficiency practices Clean Energy Manufacturing Roadmap focused on Power Electronics; Energy storage (Li-Ion and Lead Acid Batteries); Solid State Lighting; Solar Industry 21 Quick Start utility programs for statewide savings Statewide energy efficiency financing mechanism to serve all energy customers in the states Targets for utilities for at least 1% energy savings 19 City Energy Advisory Teams to set energy goals for participating municipalities Statewide ESPC manual ESPC project data included in Project Builder in 13 state agencies and ~8 local governments 21

22 2012 Competitive Successes Lead By Example: Submitted 2,296 building entries in Portfolio Manager Submitted 538 building records in Asset Scoring Tool Launched 13 Showcase Projects across multiple sectors Developed models of sustainable data collection and innovative program design: At least 6 Implementation Models At least 1 Lessons Learned Sustainable Retrofit Financing: Developed ESPC education and outreach products for potential clients 72 ESPCs facilitated. 4 training guides on developing capacity to implement and monitor ESPC projects 2 guides on developing rigorous measurement & verification procedures Developed models for developing and funding ESPC support program At least 2 Implementation Models At least 2 Success Stories At least 1 Lessons Learned 22

23 Weatherization Assistance Program (WAP) Update FY 2016 Formula Grants Formula Allocations package released December April 1 st Grantee applications are due February 29. July 1 st Grantee applications are due May 1. October 1 st Grantee applications are due August 1. DOE Policy Review Process WAP will soon pilot an online tool to allow individuals to provide thoughts and comments on WPNs and Memos (similar to SWS comment tool) The revised Health and Safety guidance and the National Evaluation policy points will be the first to be run through the new format. WAP Quality Work Plan Nearly all Grantees have submitted and been approved to use the SWS aligned field guides Quality Control Inspector certifications are continuing; to date, more than 1,500 staff received professional certifications. 23

24 State & Local Solution Center - New and Improved! The State and Local Solution Center provides resources to advance successful, high-impact clean energy policies, programs, and projects for states and local governments across the country. DOE s State and Local Solution Center has been updated to: Help users more easily navigate the portal s resources and learn about clean energy. Help users search based on four key action areas or by topic or resource type. 24

25 State & Local Solution Center - New and Improved! Users Can Search Resources Through Four New Action Areas: Develop a Clean Energy Strategy Design and Implement Clean Energy Programs Pay for Clean Energy Access and Use Energy Data 25

26 State & Local Solution Center - New and Improved! Curated EERE initiatives and resources in the areas of: Energy Saving Homes, Buildings, and Manufacturing Renewable Power Sustainable Transportation Four topics of interest: Energy Savings Performance Contracts Benchmarking Outdoor Lighting, and Energy Efficiency Savings Opportunities and Benefits 26

27 State & Local Solution Center - New and Improved! Multi-faceted search functionality 27

28 State and Local Resources for a Clean Energy Future What you will find: Targeted opportunities for impact in your jurisdiction Key resources from each of the four action areas Information on initiatives and resources in renewable power, sustainable transportation, and energy-saving homes, buildings, and manufacturing from across EERE 28

29 State and Local Spotlight State and Local Spotlight: Clean Energy News and Events for State and Local Leaders A monthly update from WIP for state, local, and K-12 officials featuring resources to advance successful, high-impact, and longlasting clean energy policies, programs, and projects. To subscribe: wip.energy.gov/solutioncenter or us: stateandlocal@ee.doe.gov 29

30 Partnership with Regional Energy Efficiency Organizations (REEOs) Energy Data Collection and Tracking for Strategic Energy Management The REEOs collectively partnered with 13 public sector entities to enhance energy consumption and management tracking. MEEA provides technical assistance for adoption and implementation of internal energy data collection processes. Energy Efficient Street and Outdoor Lighting The REEOs support DOE s Outdoor Lighting Accelerator by helping state and local governments and regional councils to identify, assess, and navigate the technical, financial, and regulatory challenges of deploying high performance outdoor lighting system upgrades. REEOS will report on lessons learned, best practices, procurement strategies, and utility tariff options for city-scale street light conversions. Increased Investment in Clean Energy The REEOs continue to support states and create regional dialogues on key issues in energy efficiency financing. SWEEP, SEEA and SPEER are addressing barriers on Commercial PACE, On-bill financing and are engaging with some states as they explore Green Bank options. 30

31 Better Buildings Challenge: Accomplishments Goals: Commercial, industrial buildings & multifamily housing 20%+ more efficient over 10 years Save $80B+ annually for U.S. organizations after 10 years Outcomes to date: More than 235 partner organizations - 63 state and local - representing >3.5B square feet across the public and private sector 2.5% Annual Energy Savings ($840M) across sectors Leadership in Action in States (select examples) Maryland: Fosters agency engagement for benchmarking through the launch of the 16- Agency Energy Competition, targeting the highest energy consumers and rewarding the most efficient winners at the Maryland Energy CUP event. Massachusetts: Innovative financing strategy allows state to act as its own ESCO, reducing the costs of financing. Ranked 1 st on ACEEE State Energy Efficiency Scorecard for fourth year in a row. Minnesota: Established the Guaranteed Energy Savings Program to enable state agencies and local governments to use ESPCs effectively, with more than 25 planned projects. 31 States with greatest energy savings to date: Delaware (17%) and Maryland (21%)!

32 Better Buildings Accelerators ESPC Accelerator Outdoor Lighting Accelerator Expanding use of ESPCs by state and local governments and K-12 schools, by catalyzing public-sector energy efficiency investments of $2 billion through best-practice approaches to enhance ESPC programs. 21 Accelerator partners have committed $767 million to new contracts 12 states, 2 commonwealths, 1 U.S. Territory, 5 cities, and 1 school district. Tools and a framework to enable broad deployment of energy efficient street and outdoor lighting systems; commitments to replace at least 1.5 million poles in next two years. Partners: 3 states, 12 cities, 4 Regional Energy Networks 700,000+ lights committed to high performance upgrades! 32

33 Better Buildings Summit: May 9-11, 2016 Exchange of best practices and demonstrated market solutions. A showcase of solutions to cut energy intensity in buildings by 20% over the next ten years Summit focused on 14 sectors, including data-driven results, financing and partnerships, highimpact technologies, portfolio-wide strategies, and much more sneak peak (a few sessions): Benchmarking to Bricks: Turning Data into Action Building the ESPC Infrastructure State Government Meet-Up: Getting the Conversation Started 33

34 Phase 1 Phase 2 Phase 3 Remote Alaskan Communities Energy Efficiency Competition Goal: Significantly accelerate efforts in Alaskan communities and native Alaskan villages to develop effective tools to advance the use of reliable, affordable, and energy efficient solutions that are replicable throughout Alaska and other Arctic regions. DOE released a Notice of Technical Assistance in December for the new $4M Remote Alaskan Communities Energy Efficiency Competition (RACEE). February 2016 Spring 2016 Fall 2016 Pledges: 60+ remote Alaskan communities and native Alaskan villages pledged to reduce energy use by at least 15% (per capita) by 2020 Technical Assistance: DOE intends to provide up to 20 successful applicants for TA engagements to gather baseline energy data and develop plans for energy efficiency projects. Implementation: Funding Opportunity Announcement for successful applicants to implement energy efficiency plans. 34